IB 
Union Calendar No. 140
108TH CONGRESS 
1ST SESSION H. R. 1837
[Report No. 108–117, Parts I and II] 
To improve the Federal acquisition workforce and the process for the 
acquisition of services by the Federal Government, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 29, 2003
Mr. TOM DAVIS of Virginia (for himself and Mr. HUNTER) introduced the fol-
lowing bill; which was referred to the Committee on Government Reform, 
and in addition to the Committee on Armed Services, 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 con-
cerned 
MAY 19, 2003
Reported from the Committee on Government Reform with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
MAY 19, 2003
Referred to the Committee on the Judiciary for a period ending not later than 
May 20, 2003 for consideration of such provisions of the bill and amend-
ment as fall within the jurisdiction of that committee pursuant to clause 
1(k), rule X 
MAY 19, 2003
Referral to the Committee on Armed Services extended for a period ending 
not later than May 20, 2003
MAY 20, 2003
Referral to the Committee on Armed Services and the Judiciary extended for 
a period ending not later than July 25, 2003
JULY 25, 2003
The Committee on Armed Services discharged
JULY 25, 2003
Referral to the Committee on the Judiciary extended for a period ending not 
later than September 3, 2003
SEPTEMBER 3, 2003
Reported from the Committee on the Judiciary with an amendment; com-
mitted to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on April 29, 2003] 
A BILL 
To improve the Federal acquisition workforce and the process 
for the acquisition of services by the Federal Govern-
ment, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Services Acquisition Reform Act of 2003’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; table of contents. 
Sec. 2. Executive agency defined. 
TITLE I—ACQUISITION WORKFORCE AND TRAINING 
Sec. 101. Definition of acquisition. 
Sec. 102. Acquisition workforce training fund. 
Sec. 103. Government-industry exchange program. 
Sec. 104. Acquisition workforce recruitment program. 
Sec. 105. Architectural and engineering acquisition workforce.
TITLE II—ADAPTATION OF BUSINESS ACQUISITION 
PRACTICES 
Subtitle A—Adaptation of Business Management Practices 
Sec. 201. Chief Acquisition Officers. 
Sec. 202. Chief Acquisition Officers Council. 
Sec. 203. Statutory and regulatory review. 
Subtitle B—Other Acquisition Improvements 
Sec. 211. Extension of authority to carry out franchise fund programs. 
Sec. 212. Agency acquisition protests. 
Sec. 213. Improvements in contracting for architectural and engineering services. 
Sec. 214. Authorization of telecommuting for Federal contractors. 
Sec. 215. Procedural requirements for civilian agencies relating to products of 
Federal Prison Industries. 
TITLE III—CONTRACT INCENTIVES 
Sec. 301. Share-in-savings initiatives. 
Sec. 302. Incentives for contract efficiency. 
TITLE IV—ACQUISITIONS OF COMMERCIAL ITEMS 
Sec. 401. Preference for performance-based contracting. 
Sec. 402. Authorization of additional commercial contract types. 
Sec. 403. Clarification of commercial services definition. 
Sec. 404. Designation of commercial business entities. 
TITLE V—OTHER MATTERS 
Sec. 501. Authority to enter into certain procurement-related transactions and to 
carry out certain prototype projects. 
Sec. 502. Amendments relating to Federal emergency procurement flexibility. 
Sec. 503. Authority to make inflation adjustments to simplified acquisition 
threshold. 
Sec. 504. Technical corrections related to duplicative amendments. 
Sec. 505. Exemption from limitations on procurement of foreign information 
technology that is a commercial item. 
Sec. 506. Prohibition on use of quotas. 
Sec. 507. Public disclosure of noncompetitive contracting for the reconstruction of 
infrastructure in Iraq. 
Sec. 508. Applicability of certain provisions to sole source contracts for goods and 
services treated as commercial items.
SEC. 2. EXECUTIVE AGENCY DEFINED. 
In this Act, the term ‘‘executive agency’’ has the mean-
ing given that term in section 4(1) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(1)), unless specifi-
cally stated otherwise.
TITLE I—ACQUISITION 
WORKFORCE AND TRAINING 
SEC. 101. DEFINITION OF ACQUISITION. 
Section 4 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403) is amended by adding at the end the 
following: 
‘‘(16) The term ‘acquisition’—
‘‘(A) means the process of acquiring, with 
appropriated funds, by contract for purchase or 
lease, property or services (including construc-
tion) that support the missions and goals of an 
executive agency, from the point at which the re-
quirements of the executive agency are estab-
lished in consultation with the chief acquisition 
officer of the executive agency; and 
‘‘(B) includes—
‘‘(i) the process of acquiring property 
or services that are already in existence, or 
that must be created, developed, dem-
onstrated, and evaluated; 
‘‘(ii) the description of requirements to 
satisfy agency needs; 
‘‘(iii) solicitation and selection of 
sources; 
‘‘(iv) award of contracts;
‘‘(v) contract performance; 
‘‘(vi) contract financing: 
‘‘(vii) management and measurement 
of contract performance through final deliv-
ery and payment; and 
‘‘(viii) 
technical 
and 
management 
functions directly related to the process of 
fulfilling agency requirements by contract.’’. 
SEC. 102. ACQUISITION WORKFORCE TRAINING FUND. 
(a) PURPOSES.—The purposes of this section are to en-
sure that the Federal acquisition workforce—
(1) adapts to fundamental changes in the nature 
of Federal Government acquisition of property and 
services associated with the changing roles of the Fed-
eral Government; and 
(2) acquires new skills and a new perspective to 
enable it to contribute effectively in the changing en-
vironment of the 21st century. 
(b) ESTABLISHMENT OF FUND.—Section 37 of the Of-
fice of Federal Procurement Policy Act (41 U.S.C. 433) is 
amended by adding at the end of subsection (h) the fol-
lowing new paragraph: 
‘‘(3) 
ACQUISITION
WORKFORCE
TRAINING 
FUND.—(A) The Administrator of General Services 
shall establish an acquisition workforce training fund.
The Administrator shall manage the fund through the 
Federal Acquisition Institute to support the training 
of the acquisition workforce of the executive agencies 
other than the Department of Defense. The Adminis-
trator shall consult with the Administrator for Fed-
eral Procurement Policy in managing the fund. 
‘‘(B) There shall be credited to the acquisition 
workforce training fund 5 percent of the fees collected 
by executive agencies under the following contracts: 
‘‘(i) Governmentwide task and delivery-
order contracts entered into under sections 2304a 
and 2304b of title 10, United States Code, or sec-
tions 303H and 303I of the Federal Property 
and Administrative Services Act of 1949 (41 
U.S.C. 253h and 253i). 
‘‘(ii) Governmentwide contracts for the ac-
quisition of information technology as defined in 
section 11101 of title 40, United States Code, 
and multiagency acquisition contracts for such 
technology authorized by section 11314 of such 
title. 
‘‘(iii) Multiple-award schedule contracts en-
tered into by the Administrator of General Serv-
ices.
‘‘(C) The head of an executive agency that ad-
ministers a contract described in subparagraph (B) 
shall remit to the General Services Administration 
the amount required to be credited to the fund with 
respect to such contract at the end of each quarter of 
the fiscal year. 
‘‘(D) The Administrator of General Services, 
through the Office of Federal Acquisition Policy, shall 
ensure that funds collected for training under this sec-
tion are not used for any purpose other than the pur-
pose specified in subparagraph (A). 
‘‘(E) Amounts credited to the fund shall be in 
addition to funds requested and appropriated for edu-
cation and training referred to in paragraph (1). 
‘‘(F) Amounts credited to the fund shall remain 
available until expended.’’. 
SEC. 103. GOVERNMENT-INDUSTRY EXCHANGE PROGRAM. 
(a) IN GENERAL.—Subpart B of part III of title 5, 
United States Code, is amended by adding at the end the 
following: 
‘‘CHAPTER 38—ACQUISITION 
PROFESSIONAL EXCHANGE PROGRAM
‘‘Sec. 
‘‘3801. Definitions. 
‘‘3802. General provisions. 
‘‘3803. Assignment of employees to private sector organizations. 
‘‘3804. Assignment of employees from private sector organizations. 
‘‘3805. Reporting requirement. 
‘‘3806. Regulations.
‘‘§ 3801. Definitions 
‘‘For purposes of this chapter—
‘‘(1) the term ‘agency’—
‘‘(A) subject to subparagraph (B), means an 
executive agency; and 
‘‘(B) does not include—
‘‘(i) the General Accounting Office; 
‘‘(ii) an Office of Inspector General of 
an establishment or a designated Federal 
entity established under the Inspector Gen-
eral Act of 1978; and 
‘‘(iii) the Defense Contract Audit 
Agency referred to in section 2313(b) of title 
10; and 
‘‘(2) the term ‘detail’ means—
‘‘(A) the assignment or loan of an employee 
of an agency to a private sector organization 
without a change of position from the agency 
that employs the individual, or 
‘‘(B) the assignment or loan of an employee 
of a private sector organization to an agency 
without a change of position from the private 
sector organization that employs the individual, 
whichever is appropriate in the context in which such 
term is used.
‘‘§ 3802. General provisions 
‘‘(a) ASSIGNMENT AUTHORITY.—On request from or 
with the agreement of a private sector organization, and 
with the consent of the employee concerned, the head of an 
agency may arrange for the assignment of an employee of 
the agency to a private sector organization or an employee 
of a private sector organization to the agency. An eligible 
employee is an individual who—
‘‘(1) works in the field of Federal acquisition or 
acquisition management; 
‘‘(2) is considered an exceptional performer by 
the individual’s current employer; and 
‘‘(3) is expected to assume increased acquisition 
management responsibilities in the future. 
An employee of an agency shall be eligible to participate 
in this program only if the employee is employed at the 
GS–11 level or above (or equivalent) and is serving under 
a career or career-conditional appointment or an appoint-
ment of equivalent tenure in the excepted service. 
‘‘(b) AGREEMENTS.—Each agency that exercises its 
authority under this chapter shall provide for a written 
agreement between the agency and the employee concerned 
regarding the terms and conditions of the employee’s assign-
ment. In the case of an employee of the agency, the agree-
ment shall—
‘‘(1) require the employee to serve in the civil 
service, upon completion of the assignment, for a pe-
riod equal to the length of the assignment; and 
‘‘(2) provide that, in the event the employee fails 
to carry out the agreement (except for good and suffi-
cient reason, as determined by the head of the agency 
from which assigned) the employee shall be liable to 
the United States for payment of all expenses of the 
assignment. 
An amount under paragraph (2) shall be treated as a debt 
due the United States. 
‘‘(c) TERMINATION.—Assignments may be terminated 
by the agency or private sector organization concerned for 
any reason at any time. 
‘‘(d) DURATION.—Assignments under this chapter 
shall be for a period of between 6 months and 1 year, and 
may be extended in 3-month increments for a total of not 
more than 1 additional year, except that no assignment 
under this chapter may commence after the end of the 5-
year period beginning on the date of the enactment of this 
chapter. 
‘‘(e) ASSISTANCE.—The Administrator for Federal 
Procurement Policy, by agreement with the Office of Per-
sonnel Management, may assist in the administration of 
this chapter, including by maintaining lists of potential
candidates for assignment under this chapter, establishing 
mentoring relationships for the benefit of individuals who 
are given assignments under this chapter, and publicizing 
the program. 
‘‘(f) CONSIDERATIONS.—In exercising any authority 
under this chapter, an agency shall take into consider-
ation—
‘‘(1) the need to ensure that small business con-
cerns are appropriately represented with respect to 
the assignments described in sections 3803 and 3804, 
respectively; and 
‘‘(2) how assignments described in section 3803 
might best be used to help meet the needs of the agen-
cy for the training of employees in acquisition man-
agement. 
‘‘§ 3803. Assignment of employees to private sector or-
ganizations 
‘‘(a) IN GENERAL.—An employee of an agency as-
signed to a private sector organization under this chapter 
is deemed, during the period of the assignment, to be on 
detail to a regular work assignment in his agency. 
‘‘(b) COORDINATION WITH CHAPTER 81.—Notwith-
standing any other provision of law, an employee of an 
agency assigned to a private sector organization under this 
chapter is entitled to retain coverage, rights, and benefits
under subchapter I of chapter 81, and employment during 
the assignment is deemed employment by the United States, 
except that, if the employee or the employee’s dependents 
receive from the private sector organization any payment 
under an insurance policy for which the premium is wholly 
paid by the private sector organization, or other benefit of 
any kind on account of the same injury or death, then, the 
amount of such payment or benefit shall be credited against 
any compensation otherwise payable under subchapter I of 
chapter 81. 
‘‘(c) REIMBURSEMENTS.—The assignment of an em-
ployee to a private sector organization under this chapter 
may be made with or without reimbursement by the private 
sector organization for the travel and transportation ex-
penses to or from the place of assignment, subject to the 
same terms and conditions as apply with respect to an em-
ployee of a Federal agency or a State or local government 
under section 3375, and for the pay, or a part thereof, of 
the employee during assignment. Any reimbursements shall 
be credited to the appropriation of the agency used for pay-
ing the travel and transportation expenses or pay. 
‘‘(d) TORT LIABILITY; SUPERVISION.—The Federal 
Tort Claims Act and any other Federal tort liability statute 
apply to an employee of an agency assigned to a private 
sector organization under this chapter. The supervision of
the duties of an employee of an agency so assigned to a 
private sector organization may be governed by an agree-
ment between the agency and the organization. 
‘‘(e) SMALL BUSINESS CONCERNS.—
‘‘(1) IN
GENERAL.—The head of each agency 
shall take such actions as may be necessary to ensure 
that, of the assignments made under this chapter from 
such agency to private sector organizations in each 
year, at least 20 percent are to small business con-
cerns. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) the term ‘small business concern’ 
means a business concern that satisfies the defi-
nitions and standards specified by the Adminis-
trator of the Small Business Administration 
under section 3(a)(2) of the Small Business Act 
(as from time to time amended by the Adminis-
trator); 
‘‘(B) the term ‘year’ refers to the 12-month 
period beginning on the date of the enactment of 
this chapter, and each succeeding 12-month pe-
riod in which any assignments under this chap-
ter may be made; and
‘‘(C) the assignments ‘made’ in a year are 
those commencing in such year. 
‘‘(3) REPORTING
REQUIREMENT.—An agency 
which fails to comply with paragraph (1) in a year 
shall, within 90 days after the end of such year, sub-
mit a report to the Committees on Government Re-
form and Small Business of the House of Representa-
tives and the Committees on Governmental Affairs 
and Small Business of the Senate. The report shall 
include—
‘‘(A) the total number of assignments made 
under this chapter from such agency to private 
sector organizations in the year; 
‘‘(B) of that total number, the number (and 
percentage) made to small business concerns; and 
‘‘(C) the reasons for the agency’s noncompli-
ance with paragraph (1). 
‘‘(4) EXCLUSION.—This subsection shall not 
apply to an agency in any year in which it makes 
fewer than 5 assignments under this chapter to pri-
vate sector organizations. 
‘‘§ 3804. Assignment of employees from private sector 
organizations 
‘‘(a) IN GENERAL.—An employee of a private sector 
organization assigned to an agency under this chapter is
deemed, during the period of the assignment, to be on detail 
to such agency. 
‘‘(b) TERMS AND CONDITIONS.—An employee of a pri-
vate sector organization assigned to an agency under this 
chapter—
‘‘(1) may continue to receive pay and benefits 
from the private sector organization from which he is 
assigned; 
‘‘(2) is deemed, notwithstanding subsection (a), 
to be an employee of the agency for the purposes of—
‘‘(A) chapter 73; 
‘‘(B) sections 201, 203, 205, 207, 208, 209, 
603, 606, 607, 643, 654, 1905, and 1913 of title 
18; 
‘‘(C) sections 1343, 1344, and 1349(b) of 
title 31; 
‘‘(D) the Federal Tort Claims Act and any 
other Federal tort liability statute; 
‘‘(E) the Ethics in Government Act of 1978; 
‘‘(F) section 1043 of the Internal Revenue 
Code of 1986; and 
‘‘(G) section 27 of the Office of Federal Pro-
curement Policy Act; 
‘‘(3) may not have access to any trade secrets or 
to any other nonpublic information which is of com-
mercial value to the private sector organization from 
which he is assigned; and 
‘‘(4) is subject to such regulations as the Presi-
dent may prescribe. 
The supervision of an employee of a private sector organiza-
tion assigned to an agency under this chapter may be gov-
erned by agreement between the agency and the private sec-
tor organization concerned. Such an assignment may be 
made with or without reimbursement by the agency for the 
pay, or a part thereof, of the employee during the period 
of assignment, or for any contribution of the private sector 
organization to employee benefit systems. 
‘‘(c) COORDINATION WITH CHAPTER 81.—An em-
ployee of a private sector organization assigned to an agen-
cy under this chapter who suffers disability or dies as a 
result of personal injury sustained while performing duties 
during the assignment shall be treated, for the purpose of 
subchapter I of chapter 81, as an employee as defined by 
section 8101 who had sustained the injury in the perform-
ance of duty, except that, if the employee or the employee’s 
dependents receive from the private sector organization any 
payment under an insurance policy for which the premium 
is wholly paid by the private sector organization, or other 
benefit of any kind on account of the same injury or death, 
then, the amount of such payment or benefit shall be cred-
ited against any compensation otherwise payable under 
subchapter I of chapter 81. 
‘‘(d) PROHIBITION
AGAINST
CHARGING
CERTAIN 
COSTS TO THE FEDERAL GOVERNMENT.—A private sector 
organization may not charge the Federal Government, as 
direct or indirect costs under a Federal contract, the costs 
of pay or benefits paid by the organization to an employee 
assigned to an agency under this chapter for the period of 
the assignment. 
‘‘§ 3805. Reporting requirement 
‘‘(a) IN GENERAL.—The Office of Personnel Manage-
ment shall, not later than April 30 and October 31 of each 
year, prepare and submit to the Committee on Government 
Reform of the House of Representatives and the Committee 
on Governmental Affairs of the Senate a semiannual report 
summarizing the operation of this chapter during the im-
mediately preceding 6-month period ending on March 31 
and September 30, respectively. 
‘‘(b) CONTENT.—Each report shall include, with re-
spect to the 6-month period to which such report relates—
‘‘(1) the total number of individuals assigned to, 
and the total number of individuals assigned from, 
each agency during such period; 
‘‘(2) a brief description of each assignment in-
cluded under paragraph (1), including—
‘‘(A) the name of the assigned individual, as 
well as the private sector organization and the 
agency (including the specific bureau or other 
agency component) to or from which such indi-
vidual was assigned; 
‘‘(B) the respective positions to and from 
which the individual was assigned, including the 
duties and responsibilities and the pay grade or 
level associated with each; and 
‘‘(C) the duration and objectives of the indi-
vidual’s assignment; and 
‘‘(3) such other information as the Office con-
siders appropriate. 
‘‘(c) PUBLICATION.—A copy of each report submitted 
under subsection (a)—
‘‘(1) shall be published in the Federal Register; 
and 
‘‘(2) shall be made publicly available on the 
Internet. 
‘‘(d) AGENCY COOPERATION.—On request of the Office, 
agencies shall furnish such information and reports as the 
Office may require in order to carry out this section.
‘‘§ 3806. Regulations 
‘‘The Director of the Office of Personnel Management 
shall prescribe regulations for the administration of this 
chapter.’’. 
(b) REPORT.—Not later than 4 years after the date 
of the enactment of this Act, the General Accounting Office 
shall prepare and submit to the Committee on Government 
Reform of the House of Representatives and the Committee 
on Governmental Affairs of the Senate a report on the oper-
ation of chapter 38 of title 5, United States Code (as added 
by this section). Such report shall include—
(1) an evaluation of the effectiveness of the pro-
gram established by such chapter; and 
(2) a recommendation as to whether such pro-
gram should be continued (with or without modifica-
tion) or allowed to lapse. 
(c) CLERICAL AMENDMENT.—The table of chapters at 
the beginning of part III of title 5, United States Code, 
is amended by inserting after the item relating to chapter 
37 the following:
‘‘38. Acquisition Professional Exchange Program ........................................
3801’’.
(d) COORDINATION WITH ACQUISITION WORKFORCE 
PROVISIONS OF OFFICE OF FEDERAL PROCUREMENT POL-
ICY ACT.—Section 37 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 433) is amended by adding at the 
end the following new subsection:
‘‘(i) AUTHORITY TO DETAIL EMPLOYEES TO NON-
FEDERAL EMPLOYERS.—(1) In carrying out the provisions 
of this section, the Administrator, by agreement with the 
Director of the Office of Personnel Management, may pro-
vide for a program under which a Federal employee may 
be detailed to a non-Federal employer. The Administrator, 
by agreement with the Director of the Office of Personnel 
Management, shall prescribe regulations for such program, 
including the conditions for service and duties as the Ad-
ministrator considers necessary. 
‘‘(2) An assignment described in section 3803 of title 
5, United States Code, may not be made unless a program 
under paragraph (1) is established, and the assignment is 
made in accordance with the requirements of such pro-
gram.’’. 
(e) ETHICS PROVISIONS.—
(1) ONE-YEAR RESTRICTION ON CERTAIN COMMU-
NICATIONS.—Section 207(c)(2)(A)(v) of title 18, 
United States Code, is amended by inserting ‘‘or 38’’ 
after ‘‘chapter 37’’. 
(2) DISCLOSURE
OF
CONFIDENTIAL
INFORMA-
TION.—Section 1905 of title 18, United States Code, 
is amended by inserting ‘‘or 38’’ after ‘‘chapter 37’’. 
(3) CONTRACT ADVICE.—Section 207(l) of title 
18, United States Code, is amended—
(A) in the subsection heading, by striking 
‘‘DETAILS.—’’ and inserting ‘‘DETAILEES.—’’; 
and 
(B) by inserting ‘‘or 38’’ after ‘‘chapter 37’’. 
(4) RESTRICTION ON DISCLOSURE OF PROCURE-
MENT INFORMATION.—Section 27 of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 423) is 
amended in the last sentence of subsection (a)(1) by 
inserting ‘‘or 38’’ after ‘‘chapter 37’’. 
(f) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) AMENDMENTS TO TITLE 5, UNITED STATES 
CODE.—Title 5, United States Code, is amended—
(A) in section 3111(d), by inserting ‘‘or 38’’ 
after ‘‘chapter 37’’; 
(B) in section 7353(b)(4), by inserting ‘‘or 
38’’ after ‘‘chapter 37’’. 
(2) AMENDMENT TO TITLE 18, UNITED STATES 
CODE.—Section 209(g) of title 18, United States 
Code, is amended—
(A) in paragraph (1), by inserting ‘‘or 38’’ 
after ‘‘chapter 37’’; and 
(B) by amending paragraph (2) to read as 
follows: 
‘‘(2) For purposes of this subsection, the term ‘agen-
cy’—
‘‘(A) with respect to assignments under chapter 
37 of title 5, means an agency (as defined in section 
3701 of title 5) and the Office of the Chief Technology 
Officer of the District of Columbia; and 
‘‘(B) with respect to assignments under chapter 
38 of title 5, means an agency (as defined by section 
3801 of title 5).’’. 
(3) ELIGIBILITY FOR THRIFT SAVINGS PLAN.—
Section 125(c)(1)(D) of Public Law 100–238 (101 
Stat. 1757; 5 U.S.C. 8432 note) is amended by insert-
ing ‘‘or 38’’ after ‘‘chapter 37’’. 
SEC. 104. ACQUISITION WORKFORCE RECRUITMENT PRO-
GRAM. 
(a) AUTHORITY TO CARRY OUT PROGRAM.—For pur-
poses of sections 3304, 5333, and 5753 of title 5, United 
States Code, the head of a department or agency of the 
United States (including the Secretary of Defense) may de-
termine that certain Federal acquisition positions are 
‘‘shortage category’’ positions in order to recruit and ap-
point directly to positions of employment in the department 
or agency highly qualified persons, such as any person 
who—
(1) holds a bachelor’s degree from an accredited 
institution of higher education;
(2) holds, from an accredited law school or an 
accredited institution of higher education—
(A) a law degree; or 
(B) a masters or equivalent degree in busi-
ness administration, public administration, or 
systems engineering; or 
(3) has significant experience with commercial 
acquisition practices, terms, and conditions. 
(b) REQUIREMENTS.—The exercise of authority to take 
a personnel action under this section shall be subject to poli-
cies prescribed by the Office of Personnel Management that 
govern direct recruitment, including policies requiring ap-
pointment of a preference eligible who satisfies the quali-
fication requirements. 
(c) TERMINATION OF AUTHORITY.—The head of a de-
partment or agency may not appoint a person to a position 
of employment under this section after September 30, 2007. 
(d) REPORT.—Not later than March 31, 2007, the Ad-
ministrator for Federal Procurement Policy shall submit to 
Congress a report on the implementation of this section. The 
report shall include—
(1) the Administrator’s assessment of the efficacy 
of the exercise of the authority provided in this sec-
tion in attracting employees with unusually high 
qualifications to the acquisition workforce; and
(2) any recommendations considered appropriate 
by the Administrator on whether the authority to 
carry out the program should be extended. 
SEC. 105. ARCHITECTURAL AND ENGINEERING ACQUISI-
TION WORKFORCE. 
The Administrator for Federal Procurement Policy, in 
consultation with the Secretary of Defense, the Adminis-
trator of General Services, and the Director of the Office 
of Personnel Management, shall develop and implement a 
plan to ensure that the Federal Government maintains the 
necessary capability with respect to the acquisition of archi-
tectural and engineering services to—
(1) ensure that Federal Government employees 
have the expertise to determine agency requirements 
for such services; 
(2) establish priorities and programs (including 
acquisition plans); 
(3) establish professional standards; 
(4) develop scopes of work; and 
(5) award and administer contracts for such 
services.
TITLE II—ADAPTATION OF BUSI-
NESS 
ACQUISITION 
PRAC-
TICES 
Subtitle A—Adaptation of Business 
Management Practices 
SEC. 201. CHIEF ACQUISITION OFFICERS. 
(a) APPOINTMENT
OF CHIEF ACQUISITION OFFI-
CERS.—(1) Section 16 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 414) is amended to read as follows:
‘‘SEC. 16. CHIEF ACQUISITION OFFICERS. 
‘‘(a) ESTABLISHMENT OF AGENCY CHIEF ACQUISITION 
OFFICERS.—The head of each executive agency (other than 
the Department of Defense) shall appoint or designate a 
non-career employee as Chief Acquisition Officer for the 
agency, who shall—
‘‘(1) have acquisition management as that offi-
cial’s primary duty; and 
‘‘(2) advise and assist the head of the executive 
agency and other agency officials to ensure that the 
mission of the executive agency is achieved through 
the management of the agency’s acquisition activities. 
‘‘(b) AUTHORITY AND FUNCTIONS OF AGENCY CHIEF 
ACQUISITION OFFICERS.—The functions of each Chief Ac-
quisition Officer shall include—
‘‘(1) monitoring the performance of acquisition 
activities and acquisition programs of the executive 
agency, evaluating the performance of those programs 
on the basis of applicable performance measurements, 
and advising the head of the executive agency regard-
ing the appropriate business strategy to achieve the 
mission of the executive agency; 
‘‘(2) increasing the use of full and open competi-
tion in the acquisition of property and services by the 
executive agency by establishing policies, procedures, 
and practices that ensure that the executive agency re-
ceives a sufficient number of sealed bids or competi-
tive proposals from responsible sources to fulfill the 
Government’s requirements (including performance 
and delivery schedules) at the best value considering 
the nature of the property or service procured; 
‘‘(3) making acquisition decisions consistent 
with all applicable laws and establishing clear lines 
of authority, accountability, and responsibility for ac-
quisition decisionmaking within the executive agency; 
‘‘(4) managing the direction of acquisition policy 
for the executive agency, including implementation of 
the unique acquisition policies, regulations, and 
standards of the executive agency;
‘‘(5) developing and maintaining an acquisition 
career management program in the executive agency 
to ensure that there is an adequate professional work-
force; and 
‘‘(6) as part of the strategic planning and per-
formance evaluation process required under section 
306 of title 5, United States Code, and sections 
1105(a)(28), 1115, 1116, and 9703 of title 31, United 
States Code—
‘‘(A) assessing the requirements established 
for agency personnel regarding knowledge and 
skill in acquisition resources management and 
the adequacy of such requirements for facili-
tating the achievement of the performance goals 
established for acquisition management; 
‘‘(B) in order to rectify any deficiency in 
meeting such requirements, developing strategies 
and specific plans for hiring, training, and pro-
fessional development; and 
‘‘(C) reporting to the head of the executive 
agency on the progress made in improving ac-
quisition management capability.’’. 
(2) The item relating to section 16 in the table of con-
tents in section 1(b) of such Act is amended to read as fol-
lows:
‘‘Sec. 16. Chief Acquisition Officers.’’.
(b) REFERENCES TO SENIOR PROCUREMENT EXECU-
TIVE.—
(1) AMENDMENT TO THE OFFICE OF FEDERAL 
POLICY ACT.—
(A) Subsections (a)(2)(A) and (b) of section 
20 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 418(a)(2)(A), (b)) are amended 
by striking ‘‘senior procurement executive’’ each 
place it appears and inserting ‘‘Chief Acquisi-
tion Officer’’. 
(B) Subsection (c)(2)(A)(ii) of section 29 of 
the Office of Federal Procurement Policy Act (41 
U.S.C. 425(c)(2)(A)(ii)) is amended by striking 
‘‘senior procurement executive’’ and inserting 
‘‘Chief Acquisition Officer’’. 
(C) Subsection (c) of section 37 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 
433(c)) is amended—
(i) by striking ‘‘SENIOR PROCURE-
MENT EXECUTIVE’’ in the heading and in-
serting ‘‘CHIEF
ACQUISITION
OFFICER’’; 
and 
(ii) by striking ‘‘senior procurement 
executive’’ each place it appears and insert-
ing ‘‘Chief Acquisition Officer’’.
(2) AMENDMENT TO TITLE III OF THE FEDERAL 
PROPERTY
AND
ADMINISTRATIVE
SERVICES
ACT
OF 
1949.—Sections 302C(b) and 303(f)(1)(B)(iii) of the 
Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 252c, 253) are amended by striking 
‘‘senior procurement executive’’ each place it appears 
and inserting ‘‘Chief Acquisition Officer’’. 
(3) AMENDMENT TO TITLE 10, UNITED STATES 
CODE.—The following sections of title 10, United 
States Code are amended by striking ‘‘senior procure-
ment executive’’ each place it appears and inserting 
‘‘Chief Acquisition Officer’’: 
(A) Section 133(c)(1). 
(B) Subsections (d)(2)(B) and (f)(1) of sec-
tion 2225. 
(C) Section 2302c(b). 
(D) Section 2304(f)(1)(B)(iii). 
(E) Section 2359a(i). 
(4) REFERENCES.—Any reference to a senior 
procurement executive of a department or agency of 
the United States in any other provision of law or 
regulation, document, or record of the United States 
shall be deemed to be a reference to the Chief Acquisi-
tion Officer of the department or agency.
(c) TECHNICAL CORRECTION.—Section 1115(a) of title 
31, United States Code, is amended by striking ‘‘section 
1105(a)(29)’’ and inserting ‘‘section 1105(a)(28)’’. 
SEC. 202. CHIEF ACQUISITION OFFICERS COUNCIL. 
(a) ESTABLISHMENT OF COUNCIL.—The Office of Fed-
eral Procurement Policy Act (41 U.S.C. 403 et seq.) is 
amended by inserting after section 16 the following new sec-
tion: 
‘‘SEC. 16A. CHIEF ACQUISITION OFFICERS COUNCIL. 
‘‘(a) ESTABLISHMENT.—There is established in the ex-
ecutive branch a Chief Acquisition Officers Council. 
‘‘(b) MEMBERSHIP.—The members of the Council shall 
be as follows: 
‘‘(1) The Deputy Director for Management of the 
Office of Management and Budget, who shall act as 
Chairman of the Council. 
‘‘(2) The Administrator for Federal Procurement 
Policy. 
‘‘(3) The chief acquisition officer of each execu-
tive agency. 
‘‘(4) The Under Secretary of Defense for Acquisi-
tion, Technology, and Logistics. 
‘‘(5) Any other officer or employee of the United 
States designated by the Chairman.
‘‘(c) LEADERSHIP; SUPPORT.—(1) The Administrator 
for Federal Procurement Policy shall lead the activities of 
the Council on behalf of the Deputy Director for Manage-
ment. 
‘‘(2)(A) The Vice Chairman of the Council shall be se-
lected by the Council from among its members. 
‘‘(B) The Vice Chairman shall serve a 1-year term, and 
may serve multiple terms. 
‘‘(3) The Administrator of General Services shall pro-
vide administrative and other support for the Council. 
‘‘(d) PRINCIPAL FORUM.—The Council is designated 
the principal interagency forum for monitoring and im-
proving the Federal acquisition system. 
‘‘(e) FUNCTIONS.—The Council shall perform functions 
that include the following: 
‘‘(1) Develop recommendations for the Director of 
the Office of Management and Budget on Federal ac-
quisition policies and requirements. 
‘‘(2) Share experiences, ideas, best practices, and 
innovative approaches related to Federal acquisition. 
‘‘(3) Assist the Administrator in the identifica-
tion, development, and coordination of multiagency 
projects and other innovative initiatives to improve 
Federal acquisition.
‘‘(4) Promote effective business practices that en-
sure the timely delivery of best value products to the 
Federal Government and achieve appropriate public 
policy objectives. 
‘‘(5) Further integrity, fairness, competition, 
openness, and efficiency in the Federal acquisition 
system. 
‘‘(6) Work with the Office of Personnel Manage-
ment to assess and address the hiring, training, and 
professional development needs of the Federal Govern-
ment related to acquisition. 
‘‘(7) Work with the Administrator and the Fed-
eral Acquisition Regulatory Council to promote the 
business practices referred to in paragraph (4) and 
other results of the functions carried out under this 
subsection.’’. 
(b) CLERICAL AMENDMENT.—The table of contents in 
section 1(b) of such Act is amended by inserting after the 
item relating to section 16 the following new item:
‘‘Sec. 16A. Chief Acquisition Officers Council.’’.
SEC. 203. STATUTORY AND REGULATORY REVIEW. 
(a) ESTABLISHMENT.—Not later than 90 days after 
the date of the enactment of this Act, the Administrator for 
Federal Procurement Policy shall establish an advisory 
panel to review laws and regulations regarding the use of 
commercial practices, performance-based contracting, the
performance of acquisition functions across agency lines of 
responsibility, and the use of Governmentwide contracts. 
(b) MEMBERSHIP.—The panel shall be composed of at 
least nine individuals who are recognized experts in acqui-
sition law and Government acquisition policy. In making 
appointments to the panel, the Administrator shall—
(1) consult with the Secretary of Defense, the Ad-
ministrator of General Services, the Committees on 
Armed Services and Government Reform of the House 
of Representatives, and the Committees on Armed 
Services and Governmental Affairs of the Senate, and 
(2) ensure that the members of the panel reflect 
the diverse experiences in the public and private sec-
tors. 
(c) DUTIES.—The panel shall—
(1) review all Federal acquisition laws and regu-
lations with a view toward ensuring effective and ap-
propriate use of commercial practices and perform-
ance-based contracting; and 
(2) make any recommendations for the repeal or 
amendment of such laws or regulations that are con-
sidered necessary as a result of such review—
(A) to eliminate any provisions in such 
laws or regulations that are unnecessary for the 
effective, efficient, and fair award and adminis-
tration of contracts for the acquisition by the 
Federal Government of goods and services; 
(B) to ensure the continuing financial and 
ethical integrity of acquisitions by the Federal 
Government; and 
(C) to protect the best interests of the Fed-
eral Government. 
(d) REPORT.—Not later than one year after the estab-
lishment of the panel, the panel shall submit to the Admin-
istrator and to the Committees on Armed Services and Gov-
ernment Reform of the House of Representatives and the 
Committees on Armed Services and Governmental Affairs 
of the Senate a report containing a detailed statement of 
the findings, conclusions, and recommendations of the 
panel. 
Subtitle B—Other Acquisition 
Improvements 
SEC. 211. EXTENSION OF AUTHORITY TO CARRY OUT FRAN-
CHISE FUND PROGRAMS. 
Section 403(f) of the Federal Financial Management 
Act of 1994 (Public Law 103–356; 31 U.S.C. 501 note) is 
amended by striking ‘‘October 1, 2003’’ and inserting ‘‘Oc-
tober 1, 2006’’.
SEC. 212. AGENCY ACQUISITION PROTESTS. 
(a) DEFENSE CONTRACTS.—(1) Chapter 137 of title 
10, United States Code, is amended by inserting after sec-
tion 2305a the following new section:
‘‘§ 2305b. Protests
‘‘(a) IN GENERAL.—An interested party may protest 
an acquisition of supplies or services by an agency based 
on an alleged violation of an acquisition law or regulation, 
and a decision regarding such alleged violation shall be 
made by the agency in accordance with this section. 
‘‘(b) RESTRICTION ON CONTRACT AWARD PENDING 
DECISION.—(1) Except as provided in paragraph (2), a 
contract may not be awarded by an agency after a protest 
concerning the acquisition has been submitted under this 
section and while the protest is pending. 
‘‘(2) The head of the acquisition activity responsible 
for the award of the contract may authorize the award of 
a contract, notwithstanding pending protest under this sec-
tion, upon making a written finding that urgent and com-
pelling circumstances do not allow for waiting for a deci-
sion on the protest. 
‘‘(c) RESTRICTION
ON
CONTRACT
PERFORMANCE 
PENDING DECISION.—(1) Except as provided in paragraph 
(2), performance of a contract may not be authorized (and 
performance of the contract shall cease if performance has 
already begun) in any case in which a protest of the con-
tract award is submitted under this section before the later 
of—
‘‘(A) the date that is 10 days after the date of 
contract award; or 
‘‘(B) the date that is five days after an agency 
debriefing date offered to an unsuccessful offeror for 
any debriefing that is requested and, when requested, 
is required, under section 2305(b)(5) of this title. 
‘‘(2) The head of the acquisition activity responsible 
for the award of a contract may authorize performance of 
the contract notwithstanding a pending protest under this 
section upon making a written finding that urgent and 
compelling circumstances do not allow for waiting for a de-
cision on the protest. 
‘‘(d) DEADLINE FOR DECISION.—The head of an agen-
cy shall issue a decision on a protest under this section not 
later than the date that is 20 working days after the date 
on which the protest is submitted to such head of an agency. 
‘‘(e) CONSTRUCTION.—Nothing in this section shall af-
fect the right of an interested party to file a protest with 
the Comptroller General under subchapter V of chapter 35 
of title 31 or in the United States Court of Federal Claims. 
‘‘(f) DEFINITIONS.—In this section, the terms ‘protest’ 
and ‘interested party’ have the meanings given such terms 
in section 3551 of title 31.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section 
2305a the following new item:
‘‘2305b. Protests.’’.
(b) OTHER AGENCIES.—Title III of the Federal Prop-
erty and Administrative Services Act of 1949 is amended 
by inserting after section 303M (41 U.S.C. 253m) the fol-
lowing new section: 
‘‘SEC. 303N. PROTESTS.
‘‘(a) IN GENERAL.—An interested party may protest 
an acquisition of supplies or services by an executive agency 
based on an alleged violation of an acquisition law or regu-
lation, and a decision regarding such alleged violation shall 
be made by the agency in accordance with this section. 
‘‘(b) RESTRICTION ON CONTRACT AWARD PENDING 
DECISION.—(1) Except as provided in paragraph (2), a 
contract may not be awarded by an agency after a protest 
concerning the acquisition has been submitted under this 
section and while the protest is pending. 
‘‘(2) The head of the acquisition activity responsible 
for the award of a contract may authorize the award of 
the contract, notwithstanding a pending protest under this 
section, upon making a written finding that urgent and 
compelling circumstances do not allow for waiting for a de-
cision on the protest.
‘‘(c) RESTRICTION
ON
CONTRACT
PERFORMANCE 
PENDING DECISION.—(1) Except as provided in paragraph 
(2), performance of a contract may not be authorized (and 
performance of the contract shall cease if performance has 
already begun) in any case in which a protest of the con-
tract award is submitted under this section before the later 
of—
‘‘(A) the date that is 10 days after the date of 
contract award; or 
‘‘(B) the date that is five days after an agency 
debriefing date offered to an unsuccessful offeror for 
any debriefing that is requested and, when requested, 
is required, under section 303B(e) of this title. 
‘‘(2) The head of the acquisition activity responsible 
for the award of a contract may authorize performance of 
the contract notwithstanding a pending protest under this 
section upon making a written finding that urgent and 
compelling circumstances do not allow for waiting for a de-
cision on the protest. 
‘‘(d) DEADLINE FOR DECISION.—The head of an execu-
tive agency shall issue a decision on a protest under this 
section not later than the date that is 20 working days after 
the date on which the protest is submitted to the executive 
agency.
‘‘(e) CONSTRUCTION.—Nothing in this section shall af-
fect the right of an interested party to file a protest with 
the Comptroller General under subchapter V of chapter 35 
of title 31, United States Code, or in the United States 
Court of Federal Claims. 
‘‘(f) DEFINITIONS.—In this section, the terms ‘protest’ 
and ‘interested party’ have the meanings given such terms 
in section 3551 of title 31, United States Code.’’.
(c) CONFORMING AMENDMENT.—Section 3553(d)(4) of 
title 31, United States Code, is amended—
(1) in subparagraph (A), by striking ‘‘or’’ at the 
end; 
(2) by striking the period at the end of subpara-
graph (B) and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(C) in the case of a protest of the same matter 
regarding such contract that is submitted under sec-
tion 2305b of title 10 or section 303N of the Federal 
Property and Administrative Services Act of 1949, 
the date that is 5 days after the date on which a deci-
sion on that protest is issued.’’.
SEC. 213. IMPROVEMENTS IN CONTRACTING FOR ARCHI-
TECTURAL AND ENGINEERING SERVICES. 
(a) CLARIFICATION
OF DEFINITION
OF SURVEYING 
AND MAPPING.—(1) Section 1102 of title 40, United States 
Code, is amended by adding at the end the following new 
paragraph: 
‘‘(4) SURVEYING AND MAPPING.—The term ‘sur-
veying and mapping’ means services performed by 
professionals such as surveyors, photogrammetrists, 
hydrographers, geodesists, or cartographers in the col-
lection, storage, retrieval, or dissemination of graph-
ical or digital data to depict natural or manmade 
physical features, phenomena, or boundaries of the 
earth and any information related to such data, in-
cluding any such data that comprises a survey, map, 
chart, geographic information system, remotely sensed 
image or data, or an aerial photograph.’’. 
(2) The Federal Acquisition Regulation shall be revised 
to include the definition added by subsection (a) of this sec-
tion. 
(b) TITLE 10.—Section 2855(b) of title 10, United 
States Code, is amended—
(1) in paragraph (2), by striking ‘‘$85,000’’ and 
inserting ‘‘$300,000’’; and 
(2) by adding at the end the following new para-
graph:
‘‘(4) The selection and competition requirements de-
scribed in subsection (a) shall apply to any contract for 
architectural and engineering services (including surveying 
and mapping services) that is entered into by the head of 
an agency (as such term is defined in section 2302 of this 
title).’’. 
(c) ARCHITECTURAL AND ENGINEERING SERVICES.—
Architectural and engineering services (as defined in section 
1102 of title 40, United States Code) shall not be offered 
under multiple-award schedule contracts entered into by the 
Administrator of General Services or under Government-
wide task and delivery-order contracts entered into under 
sections 2304a and 2304b of title 10, United States Code, 
or sections 303H and 303I of the Federal Property and Ad-
ministrative Services Act of 1949 (41 U.S.C. 253h and 
253i) unless such services—
(1) are performed under the direct supervision of 
a professional engineer licensed in a State; and 
(2) are awarded in accordance with the selection 
procedures set forth in chapter 11 of title 40, United 
States Code. 
SEC. 214. AUTHORIZATION OF TELECOMMUTING FOR FED-
ERAL CONTRACTORS. 
(a) AMENDMENT TO THE FEDERAL ACQUISITION REG-
ULATION.—Not later than 180 days after the date of the
enactment of this Act, the Federal Acquisition Regulatory 
Council shall amend the Federal Acquisition Regulation 
issued in accordance with sections 6 and 25 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 405 and 421) 
to permit telecommuting by employees of Federal Govern-
ment contractors in the performance of contracts entered 
into with executive agencies. 
(b) CONTENT OF AMENDMENT.—The regulation issued 
pursuant to subsection (a) shall, at a minimum, provide 
that solicitations for the acquisition of property or services 
may not set forth any requirement or evaluation criteria 
that would—
(1) render an offeror ineligible to enter into a 
contract on the basis of the inclusion of a plan of the 
offeror to permit the offeror’s employees to telecom-
mute; or 
(2) reduce the scoring of an offer on the basis of 
the inclusion in the offer of a plan of the offeror to 
permit the offeror’s employees to telecommute, unless 
the contracting officer concerned first—
(A) determines that the requirements of the 
agency, including the security requirements of 
the agency, cannot be met if the telecommuting 
is permitted; and
(B) documents in writing the basis for that 
determination. 
(c) GAO REPORT.—Not later than one year after the 
date on which the regulation required by subsection (a) is 
published in the Federal Register, the Comptroller General 
shall submit to Congress—
(1) an evaluation of—
(A) the conformance of the regulations with 
law; and 
(B) the compliance by executive agencies 
with the regulations; and 
(2) any recommendations that the Comptroller 
General considers appropriate. 
(d) DEFINITION.—In this section, the term ‘‘executive 
agency’’ has the meaning given that term in section 4 of 
the Office of Federal Procurement Policy Act (41 U.S.C. 
403).
SEC. 215. PROCEDURAL REQUIREMENTS FOR CIVILIAN 
AGENCIES RELATING TO PRODUCTS OF FED-
ERAL PRISON INDUSTRIES. 
Title III of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 251 et seq.) is amended 
by adding at the end the following new section:
‘‘SEC. 318. PRODUCTS OF FEDERAL PRISON INDUSTRIES: 
PROCEDURAL REQUIREMENTS. 
‘‘(a) MARKET RESEARCH.—Before purchasing a prod-
uct listed in the latest edition of the Federal Prison Indus-
tries catalog under section 4124(d) of title 18, United States 
Code, the head of an executive agency shall conduct market 
research to determine whether the Federal Prison Industries 
product is comparable to products available from the pri-
vate sector that best meet the executive agency’s needs in 
terms of price, quality, and time of delivery. 
‘‘(b) COMPETITION REQUIREMENT.—If the head of the 
executive agency determines that a Federal Prison Indus-
tries product is not comparable in price, quality, or time 
of delivery to products available from the private sector that 
best meet the executive agency’s needs in terms of price, 
quality, and time of delivery, the agency head shall use 
competitive procedures for the procurement of the product 
or shall make an individual purchase under a multiple 
award contract. In conducting such a competition or mak-
ing such a purchase, the agency head shall consider a timely 
offer from Federal Prison Industries. 
‘‘(c) IMPLEMENTATION BY HEAD OF EXECUTIVE AGEN-
CY.—The head of an executive agency shall ensure that—
‘‘(1) the executive agency does not purchase a 
Federal Prison Industries product or service unless a 
contracting officer of the agency determines that the
product or service is comparable to products or serv-
ices available from the private sector that best meet 
the agency’s needs in terms of price, quality, and time 
of delivery; and 
‘‘(2) Federal Prison Industries performs its con-
tractual obligations to the same extent as any other 
contractor for the executive agency. 
‘‘(d) MARKET RESEARCH DETERMINATION NOT SUB-
JECT TO REVIEW.—A determination by a contracting offi-
cer regarding whether a product or service offered by Fed-
eral Prison Industries is comparable to products or services 
available from the private sector that best meet an executive 
agency’s needs in terms of price, quality, and time of deliv-
ery shall not be subject to review pursuant to section 
4124(b) of title 18. 
‘‘(e) PERFORMANCE AS A SUBCONTRACTOR.—(1) A 
contractor or potential contractor of an executive agency 
may not be required to use Federal Prison Industries as 
a subcontractor or supplier of products or provider of serv-
ices for the performance of a contract of the executive agency 
by any means, including means such as—
‘‘(A) a contract solicitation provision requiring 
a contractor to offer to make use of products or serv-
ices of Federal Prison Industries in the performance 
of the contract;
‘‘(B) a contract specification requiring the con-
tractor to use specific products or services (or classes 
of products or services) offered by Federal Prison In-
dustries in the performance of the contract; or 
‘‘(C) any contract modification directing the use 
of products or services of Federal Prison Industries in 
the performance of the contract. 
‘‘(2) In this subsection, the term ‘contractor’, with re-
spect to a contract, includes a subcontractor at any tier 
under the contract. 
‘‘(f) PROTECTION OF CLASSIFIED AND SENSITIVE IN-
FORMATION.—The head of an executive agency may not 
enter into any contract with Federal Prison Industries 
under which an inmate worker would have access to—
‘‘(1) any data that is classified; 
‘‘(2) any geographic data regarding the location 
of—
‘‘(A) surface and subsurface infrastructure 
providing communications or water or electrical 
power distribution; 
‘‘(B) pipelines for the distribution of nat-
ural gas, bulk petroleum products, or other com-
modities; or 
‘‘(C) other utilities; or
‘‘(3) any personal or financial information 
about any individual private citizen, including infor-
mation relating to such person’s real property how-
ever described, without the prior consent of the indi-
vidual. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) The term ‘competitive procedures’ has the 
meaning given such term in section 4(5) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 
403(5)). 
‘‘(2) The term ‘market research’ means obtaining 
specific information about the price, quality, and 
time of delivery of products available in the private 
sector through a variety of means, which may in-
clude—
‘‘(A) contacting knowledgeable individuals 
in government and industry; 
‘‘(B) interactive communication among in-
dustry, acquisition personnel, and customers; 
and 
‘‘(C) interchange meetings or pre-solicita-
tion conferences with potential offerors.’’.
TITLE III—CONTRACT 
INCENTIVES
SEC. 301. SHARE-IN-SAVINGS INITIATIVES. 
(a) DEFENSE CONTRACTS.—Section 2332 of title 10, 
United States Code, is amended to read as follows: 
‘‘§ 2332. Share-in-savings contracts 
‘‘(a) AUTHORITY TO ENTER INTO SHARE-IN-SAVINGS 
CONTRACTS.—(1) The head of an agency may enter into 
a share-in-savings contract in which the Government 
awards a contract to improve mission-related or adminis-
trative processes or to accelerate the achievement of its mis-
sion and share with the contractor in savings achieved 
through contract performance. 
‘‘(2)(A) Except as provided in subparagraph (B), a 
share-in-savings contract shall be awarded for a period of 
not more than five years. 
‘‘(B) A share-in-savings contract may be awarded for 
a period greater than five years, but not more than 10 
years, if the head of the agency determines in writing prior 
to award of the contract that—
‘‘(i) the level of risk to be assumed and the in-
vestment to be undertaken by the contractor is likely 
to inhibit the government from obtaining the needed 
performance competitively at a fair and reasonable
price if the contract is limited in duration to a pe-
riod of five years or less; and 
‘‘(ii) the performance to be acquired is likely to 
continue for a period of time sufficient to generate 
reasonable benefit for the government. 
‘‘(3) Contracts awarded pursuant to the authority of 
this section shall, to the maximum extent practicable, be 
performance-based contracts that identify objective out-
comes and contain performance standards that will be used 
to measure achievement and milestones that must be met 
before payment is made. 
‘‘(4) Contracts awarded pursuant to the authority of 
this section shall include a provision containing a quantifi-
able baseline that is to be the basis upon which a savings 
share ratio is established that governs the amount of pay-
ment a contractor is to receive under the contract. Before 
commencement of performance of such a contract, the chief 
acquisition officer of the agency shall determine in writing 
that the terms of the provision are quantifiable and will 
likely yield value to the Government. 
‘‘(5)(A) The head of the agency may retain savings re-
alized through the use of a share-in-savings contract under 
this section that are in excess of the total amount of savings 
paid to the contractor under the contract. Except as pro-
vided in subparagraph (B), savings shall be credited to the
appropriation or fund against which charges were made to 
carry out the contract. 
‘‘(B) Amounts retained by the agency under this sub-
section shall—
‘‘(i) without further appropriation, remain 
available until expended; and 
‘‘(ii) be applied first to fund any contingent li-
abilities associated with share-in-savings procure-
ments that are not fully funded. 
‘‘(b) CANCELLATION AND TERMINATION.—(1) If funds 
are not made available for the continuation of a share-in-
savings contract entered into under this section in a subse-
quent fiscal year, the contract shall be canceled or termi-
nated. The costs of cancellation or termination may be paid 
out of—
‘‘(A) appropriations available for the perform-
ance of the contract; 
‘‘(B) appropriations available for acquisition of 
the type of property or services procured under the 
contract, and not otherwise obligated; or 
‘‘(C) funds subsequently appropriated for pay-
ments of costs of cancellation or termination, subject 
to the limitations in paragraph (3). 
‘‘(2) The amount payable in the event of cancellation 
or termination of a share-in-savings contract shall be nego-
tiated with the contractor at the time the contract is entered 
into. 
‘‘(3) The head of an agency may enter into share-in-
savings contracts under this section in any given fiscal year 
even if funds are not made specifically available for the full 
costs of cancellation or termination of the contract if funds 
are available and sufficient to make payments with respect 
to the first fiscal year of the contract and the following con-
ditions are met regarding the funding of cancellation and 
termination liability: 
‘‘(A) The amount of unfunded contingent liabil-
ity for the contract does not exceed the lesser of—
‘‘(i) 50 percent of the estimated costs of a 
cancellation or termination; or 
‘‘(ii) $10,000,000. 
‘‘(B) Unfunded contingent liability in excess of 
$5,000,000 has been approved by the Director of the 
Office of Management and Budget or the Director’s 
designee. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘contractor’ means a private enti-
ty that enters into a contract with an agency. 
‘‘(2) The term ‘savings’ means—
‘‘(A) monetary savings to an agency; or
‘‘(B) savings in time or other benefits real-
ized by the agency, including enhanced revenues. 
‘‘(3) The term ‘share-in-savings contract’ means 
a contract under which—
‘‘(A) a contractor provides solutions for—
‘‘(i) improving the agency’s mission-re-
lated or administrative processes; or 
‘‘(ii) accelerating the achievement of 
agency missions; and 
‘‘(B) the head of the agency pays the con-
tractor an amount equal to a portion of the sav-
ings derived by the agency from—
‘‘(i) any improvements in mission-re-
lated or administrative processes that result 
from implementation of the solution; or 
‘‘(ii) acceleration of achievement of 
agency missions.’’. 
(b) OTHER CONTRACTS.—Section 317 of the Federal 
Property and Administrative Services Act of 1949 is 
amended to read as follows: 
‘‘SEC. 317. SHARE-IN-SAVINGS CONTRACTS. 
‘‘(a) AUTHORITY TO ENTER INTO SHARE-IN-SAVINGS 
CONTRACTS.—(1) The head of an executive agency may 
enter into a share-in-savings contract in which the Govern-
ment awards a contract to improve mission-related or ad-
ministrative processes or to accelerate the achievement of 
its mission and share with the contractor in savings 
achieved through contract performance. 
‘‘(2)(A) Except as provided in subparagraph (B), a 
share-in-savings contract shall be awarded for a period of 
not more than five years. 
‘‘(B) A share-in-savings contract may be awarded for 
a period greater than five years, but not more than 10 
years, if the head of the agency determines in writing prior 
to award of the contract that—
‘‘(i) the level of risk to be assumed and the in-
vestment to be undertaken by the contractor is likely 
to inhibit the government from obtaining the needed 
performance competitively at a fair and reasonable 
price if the contract is limited in duration to a pe-
riod of five years or less; and 
‘‘(ii) the performance to be acquired is likely to 
continue for a period of time sufficient to generate 
reasonable benefit for the government. 
‘‘(3) Contracts awarded pursuant to the authority of 
this section shall, to the maximum extent practicable, be 
performance-based contracts that identify objective out-
comes and contain performance standards that will be used 
to measure achievement and milestones that must be met 
before payment is made.
‘‘(4) Contracts awarded pursuant to the authority of 
this section shall include a provision containing a quantifi-
able baseline that is to be the basis upon which a savings 
share ratio is established that governs the amount of pay-
ment a contractor is to receive under the contract. Before 
commencement of performance of such a contract, the chief 
acquisition officer of the agency shall determine in writing 
that the terms of the provision are quantifiable and will 
likely yield value to the Government. 
‘‘(5)(A) The head of the agency may retain savings re-
alized through the use of a share-in-savings contract under 
this section that are in excess of the total amount of savings 
paid to the contractor under the contract. Except as pro-
vided in subparagraph (B), savings shall be credited to the
appropriation or fund against which charges were made to 
carry out the contract. 
‘‘(B) Amounts retained by the agency under this sub-
section shall—
‘‘(i) without further appropriation, remain 
available until expended; and 
‘‘(ii) be applied first to fund any contingent li-
abilities associated with share-in-savings procure-
ments that are not fully funded. 
‘‘(b) CANCELLATION AND TERMINATION.—(1) If funds 
are not made available for the continuation of a share-in-
savings contract entered into under this section in a subse-
quent fiscal year, the contract shall be canceled or termi-
nated. The costs of cancellation or termination may be paid 
out of—
‘‘(A) appropriations available for the perform-
ance of the contract; 
‘‘(B) appropriations available for acquisition of 
the type of property or services procured under the 
contract, and not otherwise obligated; or 
‘‘(C) funds subsequently appropriated for pay-
ments of costs of cancellation or termination, subject 
to the limitations in paragraph (3). 
‘‘(2) The amount payable in the event of cancellation 
or termination of a share-in-savings contract shall be nego-
tiated with the contractor at the time the contract is entered 
into. 
‘‘(3) The head of an executive agency may enter into 
share-in-savings contracts under this section in any given 
fiscal year even if funds are not made specifically available 
for the full costs of cancellation or termination of the con-
tract if funds are available and sufficient to make payments 
with respect to the first fiscal year of the contract and the 
following conditions are met regarding the funding of can-
cellation and termination liability:
‘‘(A) The amount of unfunded contingent liabil-
ity for the contract does not exceed the lesser of—
‘‘(i) 50 percent of the estimated costs of a 
cancellation or termination; or 
‘‘(ii) $10,000,000. 
‘‘(B) Unfunded contingent liability in excess of 
$5,000,000 has been approved by the Director of the 
Office of Management and Budget or the Director’s 
designee. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘contractor’ means a private enti-
ty that enters into a contract with an agency. 
‘‘(2) The term ‘savings’ means—
‘‘(A) monetary savings to an agency; or 
‘‘(B) savings in time or other benefits real-
ized by the agency, including enhanced revenues. 
‘‘(3) The term ‘share-in-savings contract’ means 
a contract under which—
‘‘(A) a contractor provides solutions for—
‘‘(i) improving the agency’s mission-re-
lated or administrative processes; or 
‘‘(ii) accelerating the achievement of 
agency missions; and
‘‘(B) the head of the agency pays the con-
tractor an amount equal to a portion of the sav-
ings derived by the agency from—
‘‘(i) any improvements in mission-re-
lated or administrative processes that result 
from implementation of the solution; or 
‘‘(ii) acceleration of achievement of 
agency missions.’’.
(c) DEVELOPMENT OF INCENTIVES.—The Director of 
the Office of Management and Budget shall—
(1) identify potential opportunities for the use of 
share-in-savings contracts; 
(2) provide guidance to executive agencies for de-
termining mutually beneficial savings share ratios 
and baselines from which savings may be measured; 
and 
(3) in consultation with the Committee on Gov-
ernmental Affairs of the Senate, the Committee on 
Government Reform of the House of Representatives, 
and executive agencies, develop techniques to permit 
an executive agency to retain a portion of the savings 
(after payment of the contractor’s share of the sav-
ings) derived from share-in-savings contracts as funds 
are appropriated to the agency in future fiscal years.
(d) REGULATIONS.—Not later than 180 days after the 
date of the enactment of this Act, the Federal Acquisition 
Regulation shall be revised to implement the provisions en-
acted by this section. Such revisions shall—
(1) provide for the use of competitive procedures 
in the selection and award of share-in-savings con-
tracts to—
(A) ensure the contractor’s share of savings 
reflects the risk involved and market conditions; 
and 
(B) otherwise yield best value to the govern-
ment; and 
(2) allow appropriate regulatory flexibility to fa-
cilitate the use of share-in-savings contracts by execu-
tive agencies, including the use of innovative provi-
sions for technology refreshment and nonstandard 
Federal Acquisition Regulation contract clauses. 
(e) OMB REPORT
TO CONGRESS.—In consultation 
with executive agencies, the Director of the Office of Man-
agement and Budget shall, not later than 2 years after the 
completion of the revisions to the Federal Acquisition Regu-
lation under subsection (d), submit to Congress a report 
containing—
(1) a description of the number of share-in-sav-
ings contracts entered into by each executive agency
under by this section and the amendments made by 
this section, and, for each contract identified—
(A) the performance acquired; 
(B) the total amount of payments made to 
the contractor; and 
(C) the total amount of savings or other 
measurable benefits realized; 
(2) a description of the ability of agencies to de-
termine the baseline costs of a project against which 
savings can be measured; and 
(3) any recommendations, as the Director deems 
appropriate, regarding additional changes in law 
that may be necessary to ensure effective use of share-
in-savings contracts by executive agencies. 
(f) DEFINITIONS.—In this section, the terms ‘‘con-
tractor’’, ‘‘savings’’, and ‘‘share-in-savings contract’’ have 
the meanings given those terms in section 2332 of title 10, 
United States Code, and section 317 of the Federal Property 
and Administrative Services Act of 1949 (as amended by 
subsections (a) and (b)). 
(g) REPEAL
OF SUPERSEDED PROVISIONS.—Sub-
sections (c), (d), (e), (f), (g), and (i) of section 210 of the 
E-Government Act of 2002 (Public Law 107–317; 116 Stat. 
2936) are repealed.
SEC. 302. INCENTIVES FOR CONTRACT EFFICIENCY. 
(a) INCENTIVES FOR CONTRACT EFFICIENCY.—The Of-
fice of Federal Procurement Policy Act (41 U.S.C. 403 et 
seq.) is amended by adding at the end the following new 
section: 
‘‘SEC. 41. INCENTIVES FOR EFFICIENT PERFORMANCE OF 
SERVICES CONTRACTS. 
‘‘(a) OPTIONS FOR SERVICES CONTRACTS.—An option 
included in a contract for services to extend the contract 
by one or more periods may provide that it be exercised 
on the basis of exceptional performance by the contractor. 
A contract that contains such an option provision shall in-
clude performance standards for measuring performance 
under the contract, and to the maximum extent practicable 
be performance-based. Such option provision shall only be 
exercised in accordance with applicable provisions of law 
or regulation that set forth restrictions on the duration of 
the contract containing the option. 
‘‘(b) DEFINITION OF PERFORMANCE-BASED.—In this 
section, the term ‘performance-based’, with respect to a con-
tract, task order, or contracting, means that the contract, 
task order, or contracting, respectively, includes the use of 
performance work statements that set forth contract require-
ments in clear, specific, and objective terms with measur-
able outcomes.’’.
(b) CLERICAL
AND TECHNICAL AMENDMENTS.—(1) 
The table of contents in section 1(b) of such Act is amended 
by striking the last item and inserting the following:
‘‘Sec. 40. Protection of constitutional rights of contractors. 
‘‘Sec. 41. Incentives for efficient performance of services contracts.’’.
(2) The section before section 41 of such Act (as added 
by subsection (a)) is redesignated as section 40. 
TITLE IV—ACQUISITIONS OF 
COMMERCIAL ITEMS 
SEC. 401. ADDITIONAL INCENTIVE FOR USE OF PERFORM-
ANCE-BASED CONTRACTING FOR SERVICES.
(a) OTHER CONTRACTS.—Section 41 of the Office of 
Federal Procurement Policy Act, as added by section 302, 
is amended—
(1) by redesignating subsection (b) as subsection 
(c); and 
(2) by inserting after subsection (a) the following 
new subsection: 
‘‘(b) INCENTIVE FOR USE OF PERFORMANCE-BASED 
SERVICES CONTRACTS.—(1) A performance-based contract 
for the procurement of services entered into by an executive 
agency or a performance-based task order for services issued 
by an executive agency may be treated as a contract for 
the procurement of commercial items if—
‘‘(A) the contract or task order sets forth specifi-
cally each task to be performed and, for each task—
‘‘(i) defines the task in measurable, mission-
related terms; and 
‘‘(ii) identifies the specific end products or 
output to be achieved; and 
‘‘(B) the source of the services provides similar 
services to the general public under terms and condi-
tions similar to those offered to the Federal Govern-
ment. 
‘‘(2) The regulations implementing this subsection 
shall require agencies to collect and maintain reliable data 
sufficient to identify the contracts or task orders treated as 
contracts for commercial items using the authority of this 
subsection. The data may be collected using the Federal Pro-
curement Data System or other reporting mechanism.
‘‘(3) Not later than two years after the date of the en-
actment of this subsection, the Director of the Office of Man-
agement and Budget shall prepare and submit to the Com-
mittees on Governmental Affairs and on Armed Services of 
the Senate and the Committees on Government Reform and 
on Armed Services of the House of Representatives a report 
on the contracts or task orders treated as contracts for com-
mercial items using the authority of this subsection. The 
report shall include data on the use of such authority both 
government-wide and for each department and agency.
‘‘(4) The authority under this subsection shall expire 
10 years after the date of the enactment of this subsection.’’. 
(b) CENTER
OF
EXCELLENCE
IN
SERVICE
CON-
TRACTING.—Not later than 180 days after the date of the 
enactment of this Act, the Administrator for Federal Pro-
curement Policy shall establish a center of excellence in con-
tracting for services. The center of excellence shall assist the 
acquisition community by identifying, and serving as a 
clearinghouse for, best practices in contracting for services 
in the public and private sectors. 
(c) REPEAL OF SUPERSEDED PROVISION.—Subsection 
(b) of section 821 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law 
by Public Law 106–398; 114 Stat. 1654A–218) is repealed. 
SEC. 402. AUTHORIZATION OF ADDITIONAL COMMERCIAL 
CONTRACT TYPES. 
Section 8002(d) of the Federal Acquisition Stream-
lining Act of 1994 (Public Law 103–355; 108 Stat. 3387; 
41 U.S.C. 264 note) is amended—
(1) in paragraph (1), by striking ‘‘and’’; 
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new para-
graph:
‘‘(3) authority for use of a time and materials 
contract or a labor-hour contract for the procurement 
of commercial services that are commonly sold to the 
general public through such contracts.’’
SEC. 403. CLARIFICATION OF COMMERCIAL SERVICES DEFI-
NITION. 
Subparagraph (F) of section 4(12) of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 403(12)(F)) is 
amended—
(1) by striking ‘‘catalog or’’; and 
(2) by inserting ‘‘or specific outcomes to be 
achieved’’ after ‘‘performed’’.
SEC. 404. DESIGNATION OF COMMERCIAL BUSINESS ENTI-
TIES. 
(a) IN GENERAL.—Section 4 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403), as amended by 
section 101, is further amended—
(1) by adding at the end of paragraph (12) the 
following new subparagraph: 
‘‘(I) Items or services produced or provided 
by a commercial entity.’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(17) The term ‘commercial entity’ means any 
enterprise whose primary customers are other than
the Federal Government. In order to qualify as a 
commercial entity, at least 90 percent (in dollars) of 
the sales of the enterprise over the past three business 
years must have been made to private sector enti-
ties.’’. 
(b) COLLECTION
OF
DATA.—Regulations imple-
menting the amendments made by subsection (a) shall re-
quire agencies to collect and maintain reliable data suffi-
cient to identify the contracts entered into or task orders 
awarded for items or services produced or provided by a 
commercial entity. The data may be collected using the Fed-
eral Procurement Data System or other reporting mecha-
nism. 
(c) OMB REPORT.—Not later than two years after the 
date of the enactment of this subsection, the Director of the 
Office of Management and Budget shall prepare and submit 
to the Committees on Governmental Affairs and on Armed 
Services of the Senate and the Committees on Government 
Reform and on Armed Services of the House of Representa-
tives a report on the contracts entered into or task orders 
awarded for items or services produced or provided by a 
commercial entity. The report shall include data on the use 
of such authority both government-wide and for each de-
partment and agency.
(d) COMPTROLLER GENERAL REVIEW.—The Comp-
troller General shall review the implementation of the 
amendments made by subsection (a) to evaluate the effec-
tiveness of such implementation in increasing the avail-
ability of items and services to the Federal Government at 
fair and reasonable prices.
TITLE V—OTHER MATTERS 
SEC. 501. AUTHORITY TO ENTER INTO CERTAIN PROCURE-
MENT-RELATED 
TRANSACTIONS 
AND 
TO 
CARRY OUT CERTAIN PROTOTYPE PROJECTS. 
Title III of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 251 et seq.) as amended 
by section 215, is further amended by adding at the end 
the following new section: 
‘‘SEC. 319. AUTHORITY TO ENTER INTO CERTAIN TRANS-
ACTIONS FOR DEFENSE AGAINST OR RECOV-
ERY FROM TERRORISM OR NUCLEAR, BIO-
LOGICAL, CHEMICAL, OR RADIOLOGICAL AT-
TACK. 
‘‘(a) AUTHORITY.—
‘‘(1) IN
GENERAL.—The head of an executive 
agency who engages in basic research, applied re-
search, advanced research, and development projects 
that—
‘‘(A) are necessary to the responsibilities of 
such official’s executive agency in the field of re-
search and development, and 
‘‘(B) have the potential to facilitate defense 
against or recovery from terrorism or nuclear, 
biological, chemical, or radiological attack, 
may exercise the same authority (subject to the same 
restrictions and conditions) with respect to such re-
search and projects as the Secretary of Defense may 
exercise under section 2371 of title 10, United States 
Code, except for subsections (b) and (f) of such section 
2371. 
‘‘(2) PROTOTYPE PROJECTS.—The head of an ex-
ecutive agency may, under the authority of paragraph 
(1), carry out prototype projects that meet the re-
quirements of subparagraphs (A) and (B) of para-
graph (1) in accordance with the requirements and 
conditions provided for carrying out prototype 
projects under section 845 of the National Defense Au-
thorization Act for Fiscal Year 1994 (Public Law 
103–160; 10 U.S.C. 2371 note). In applying the re-
quirements and conditions of that section 845—
‘‘(A) subsection (c) of that section shall 
apply with respect to prototype projects carried 
out under this paragraph; and
‘‘(B) the Director of the Office of Manage-
ment and Budget shall perform the functions of 
the Secretary of Defense under subsection (d) of 
that section. 
‘‘(3) APPLICABILITY
TO
SELECTED
EXECUTIVE 
AGENCIES.—
‘‘(A) OMB AUTHORIZATION
REQUIRED.—
The head of an executive agency may exercise 
authority under this subsection only if author-
ized by the Director of the Office of Management 
and Budget to do so. 
‘‘(B) RELATIONSHIP TO AUTHORITY OF DE-
PARTMENT OF HOMELAND SECURITY.—The au-
thority under this subsection shall not apply to 
the Secretary of Homeland Security while sec-
tion 831 of the Homeland Security Act of 2002 
(Public Law 107–296; 116 Stat. 2224) is in ef-
fect. 
‘‘(b) ANNUAL REPORT.—The annual report of the head 
of an executive agency that is required under subsection (h) 
of section 2371 of title 10, United States Code, as applied 
to the head of the executive agency by subsection (a), shall 
be submitted to the Committee on Governmental Affairs of 
the Senate and the Committee on Government Reform of 
the House of Representatives.
‘‘(c) REGULATIONS.—The Director of the Office of 
Management and Budget shall prescribe regulations to 
carry out this section.’’. 
SEC. 502. AMENDMENTS RELATING TO FEDERAL EMER-
GENCY PROCUREMENT FLEXIBILITY. 
(a) REPEAL OF SUNSET FOR AUTHORITIES APPLICA-
BLE TO PROCUREMENTS FOR DEFENSE AGAINST OR RE-
COVERY FROM TERRORISM
OR NUCLEAR, BIOLOGICAL, 
CHEMICAL, OR RADIOLOGICAL ATTACK.—Section 852 of the 
Homeland Security Act of 2002 (Public Law 107–296; 116 
Stat. 2235) is amended by striking ‘‘, but only if a solicita-
tion of offers for the procurement is issued during the 1-
year period beginning on the date of the enactment of this 
Act’’. 
(b) APPLICABILITY OF INCREASED SIMPLIFIED ACQUI-
SITION THRESHOLD.—(1) The matter preceding paragraph 
(1) of section 853(a) of the Homeland Security Act of 2002 
(Public Law 107–296; 116 Stat. 2235) is amended to read 
as follows: 
‘‘(a) THRESHOLD AMOUNTS.—For a procurement re-
ferred to in section 852, the simplified acquisition threshold 
referred to in section 4(11) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 403(11)) is deemed to be—’’. 
(2) Subsections (b) and (c) of section 853 of such Act 
are repealed.
(3) The heading of section 853 of such Act is amended 
to read as follows: 
‘‘SEC. 853. INCREASED SIMPLIFIED ACQUISITION THRESH-
OLD FOR CERTAIN PROCUREMENTS.’’. 
(4) The table of contents in section 1(b) of such Act 
is amended by striking the item relating to section 853 and 
inserting the following:
‘‘Sec. 853. Increased simplified acquisition threshold for certain procurements.’’.
(5) Section 18(c)(1) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 416(c)(1)) is amended—
(A) by striking ‘‘or’’ at the end of subparagraph 
(G); 
(B) by striking the period at the end of subpara-
graph (H) and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(I) the procurement is by the head of an execu-
tive agency pursuant to the special procedures pro-
vided in section 853 of the Homeland Security Act of 
2002 (Public Law 107–296).’’. 
(c) APPLICABILITY OF CERTAIN COMMERCIAL ITEMS 
AUTHORITIES.—(1) Subsection (a) of section 855 of the 
Homeland Security Act of 2002 (Public Law 107–296; 116 
Stat. 2236) is amended to read as follows: 
‘‘(a) AUTHORITY.—With respect to a procurement re-
ferred to in section 852, the head of an executive agency
may deem any item or service to be a commercial item for 
the purpose of Federal procurement laws.’’. 
(2) Subsection (b)(1) of section 855 of such Act is 
amended by striking ‘‘to which any of the provisions of law 
referred to in subsection (a) are applied’’. 
(d) EXTENSION OF DEADLINE FOR REVIEW AND RE-
PORT.—Section 857(a) of the Homeland Security Act of 
2002 (Public Law 107–296; 116 Stat. 2237) is amended 
by striking ‘‘2004’’ and inserting ‘‘2006’’. 
SEC. 503. AUTHORITY TO MAKE INFLATION ADJUSTMENTS 
TO SIMPLIFIED ACQUISITION THRESHOLD. 
Section 4(11) of the Office of Federal Procurement Pol-
icy Act (41 U.S.C. 403(11)) is amended by inserting before 
the period at the end the following: ‘‘, except that such 
amount may be adjusted by the Administrator every five 
years to the amount equal to $100,000 in constant fiscal 
year 2003 dollars (rounded to the nearest $10,000)’’. 
SEC. 504. TECHNICAL CORRECTIONS RELATED TO DUPLICA-
TIVE AMENDMENTS. 
(a) REPEAL OF SUPERSEDED SUBCHAPTER AND RE-
LATED CONFORMING AMENDMENTS.—(1) Subchapter II of 
chapter 35 of title 44, United States Code, is repealed. 
(2) Subchapter III of such chapter is redesignated as 
subchapter II.
(3) Section 3549 of title 44, United States Code, is 
amended by striking the sentence beginning with ‘‘While 
this subchapter’’. 
(4) The table of sections at the beginning of chapter 
35 of title 44, United States Code, is amended—
(A) by striking the items relating to sections 
3531 through 3538; and 
(B) by striking the heading ‘‘SUBCHAPTER 
III—INFORMATION SECURITY’’. 
(5) Section 2224a of title 10, United States Code, is 
repealed, and the table of sections at the beginning of chap-
ter 131 of such title is amended by striking the item relating 
to such section. 
(b) CONFORMING AMENDMENTS RELATED TO REPEALS 
OF
SHARE-IN-SAVINGS
AND
SOLUTIONS-BASED
CON-
TRACTING PILOT PROGRAMS.—(1) Chapter 115 of title 40, 
United States Code, is repealed. 
(2) The table of chapters at the beginning of subtitle 
III of such title is amended by striking the item relating 
to chapter 115. 
(c) AMENDMENTS MADE
BY E-GOVERNMENT ACT 
MADE APPLICABLE.—The following provisions of law shall 
read as if the amendments made by title X of the Homeland 
Security Act of 2002 (Public Law 107–296) to such provi-
sions did not take effect:
(1) Section 2224 of title 10, United States Code. 
(2) Sections 20 and 21 of the National Institute 
of Standards and Technology Act (15 U.S.C. 278g–3 
and 278g–4). 
(3) Sections 11331 and 11332 of title 40, United 
States Code. 
(4) Subtitle G of title X of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 
2001 (Public Law 106–398; 44 U.S.C. 3531 note). 
(5) Sections 3504(g), 3505, and 3506(g) of title 
44, United States Code. 
(d) CORRECTION
OF CROSS REFERENCE.—Section 
2224(c) of title 10, United States Code, as amended by sec-
tion 301(c)(1)(B)(iii) of the E-Government Act of 2002 
(Public Law 107–347; 116 Stat. 2955), is amended by strik-
ing ‘‘subchapter III’’ and inserting ‘‘subchapter II’’. 
SEC. 505. EXEMPTION FROM LIMITATIONS ON PROCURE-
MENT 
OF 
FOREIGN 
INFORMATION 
TECH-
NOLOGY THAT IS A COMMERCIAL ITEM. 
(a) EXEMPTION.—Notwithstanding any other provi-
sion of law, in order to promote Government access to com-
mercial information technology, the restriction on pur-
chasing nondomestic articles, materials, and supplies set 
forth in the Buy American Act (41 U.S.C. 10a et seq.), and 
the prohibition on acquiring foreign products under section
302(a)(1) of the Trade Agreements Act of 1979 (Public Law 
96–39; 19 U.S.C. 2512(a)(1)), shall not apply to the acqui-
sition by the Federal Government of information technology 
(as defined in section 11101 of title 40, United States Code, 
that is a commercial item (as defined in section 4(12) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 
403(12)).
(b) DEFINITION.—Section 11101(6) of title 40, United 
States Code, is amended—
(1) in subparagraph (A), by inserting after 
‘‘storage,’’ the following: ‘‘analysis, evaluation,’’; and 
(2) in subparagraph (B), by striking ‘‘ancillary 
equipment,’’ and inserting ‘‘ancillary equipment (in-
cluding imaging peripherals, input, output, and stor-
age devices necessary for security and surveillance), 
peripheral equipment designed to be controlled by the 
central processing unit of a computer,’’.
SEC. 506. PROHIBITION ON USE OF QUOTAS. 
(a) IN GENERAL.—After the date of enactment of this 
Act, the Office of Management and Budget may not estab-
lish, apply, or enforce any numerical goal, target, or quota 
for subjecting the employees of a department or agency of 
the Government to public-private competitions or con-
verting such employees or the work performed by such em-
ployees to contractor performance under Office of Manage-
ment and Budget Circular A-76 or any other administra-
tive regulation, directive, or policy unless the goal, target, 
or quota is based on considered research and sound analysis 
of past activities and is consistent with the stated mission 
of the department or agency. 
(b) LIMITATIONS.—Subsection (a) shall not—
(1) otherwise affect the implementation or en-
forcement of the Government Performance and Results 
Act of 1993 (107 Stat. 285); or 
(2) prevent any agency of the Executive branch 
from subjecting work performed by Federal employees 
or private contractors to public-private competition 
or conversions.
SEC. 507. PUBLIC DISCLOSURE OF NONCOMPETITIVE CON-
TRACTING FOR THE RECONSTRUCTION OF IN-
FRASTRUCTURE IN IRAQ. 
(a) DISCLOSURE REQUIRED.—
(1) PUBLICATION AND PUBLIC AVAILABILITY.—
The head of an executive agency of the United States 
that enters into a contract for the repair, mainte-
nance, or construction of infrastructure in Iraq with-
out full and open competition shall publish in the 
Federal Register or Commerce Business Daily and 
otherwise make available to the public, not later than
30 days after the date on which the contract is en-
tered into, the following information: 
(A) The amount of the contract. 
(B) A brief description of the scope of the 
contract. 
(C) A discussion of how the executive agen-
cy identified, and solicited offers from, potential 
contractors to perform the contract, together with 
a list of the potential contractors that were 
issued solicitations for the offers. 
(D) The justification and approval docu-
ments on which was based the determination to 
use procedures other than procedures that pro-
vide for full and open competition. 
(2) INAPPLICABILITY TO CONTRACTS AFTER FIS-
CAL YEAR 2013.—Paragraph (1) does not apply to a 
contract entered into after September 30, 2013. 
(b) CLASSIFIED INFORMATION.—
(1) AUTHORITY TO WITHHOLD.—The head of an 
executive agency may—
(A) withhold from publication and disclo-
sure under subsection (a) any document that is 
classified for restricted access in accordance with 
an Executive order in the interest of national de-
fense or foreign policy; and
(B) redact any part so classified that is in 
a document not so classified before publication 
and disclosure of the document under subsection 
(a). 
(2) AVAILABILITY TO CONGRESS.—In any case 
in which the head of an executive agency withholds 
information under paragraph (1), the head of such 
executive agency shall make available an unredacted 
version of the document containing that information 
to the chairman and ranking member of each of the 
following committees of Congress: 
(A) The Committee on Governmental Af-
fairs of the Senate and the Committee on Gov-
ernment Reform of the House of Representatives. 
(B) The Committees on Appropriations of 
the Senate and House of Representatives. 
(C) Each committee that the head of the ex-
ecutive agency determines has legislative juris-
diction for the operations of such department or 
agency to which the information relates. 
(c) FISCAL YEAR 2003 CONTRACTS.—This section shall 
apply to contracts entered into on or after October 1, 2002, 
except that, in the case of a contract entered into before 
the date of the enactment of this Act, subsection (a) shall
be applied as if the contract had been entered into on the 
date of the enactment of this Act. 
(d) RELATIONSHIP TO OTHER DISCLOSURE LAWS.—
Nothing in this section shall be construed as affecting obli-
gations to disclose United States Government information 
under any other provision of law. 
(e) DEFINITIONS.—In this section, the terms ‘‘executive 
agency’’ and ‘‘full and open competition’’ have the mean-
ings given such terms in section 4 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403).
SEC. 508. APPLICABILITY OF CERTAIN PROVISIONS TO SOLE 
SOURCE CONTRACTS FOR ITEMS AND SERV-
ICES TREATED AS COMMERCIAL ITEMS. 
(a) IN GENERAL.—No contract awarded on a sole 
source basis for the procurement of items or services that 
are treated as or deemed to be commercial items pursuant 
to the amendments made by section 401, 404, or 502 of this 
Act shall be exempt from—
(1) cost accounting standards promulgated pur-
suant to section 26 of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 422); and 
(2) cost or pricing data requirements (commonly 
referred to as truth in negotiating) under section 
2306a of title 10, United States Code, and section
304A of title III of the Federal Property and Admin-
istrative Services Act of 1949 (41 U.S.C. 254b). 
(b) LIMITATION.—This section shall not apply to any 
contract in an amount less than $15,000,000.
Union Calendar No. 140
108TH CONGRESS 
1ST SESSION 
H. R. 1837
[Report No. 108–117, Parts I and II] 
A BILL 
To improve the Federal acquisition workforce and 
the process for the acquisition of services by the 
Federal Government, and for other purposes. 
SEPTEMBER 3, 2003
Reported from the Committee on the Judiciary with an 
amendment; committed to the Committee of the Whole 
House on the State of the Union and ordered to be 
printed