400 
•HR 1585 EH1S 
Board shall include the findings of subsequent an-
nual reviews in subsequent reports submitted under 
such section. 
(c) DEFINITIONS.—In this section: 
(1) STRATEGIC
MATERIAL.—The term ‘‘stra-
tegic material’’ means— 
(A) a material designated as critical to na-
tional security by the Strategic Materials Pro-
tection Board in accordance with the section 
187 of title 10, United States Code; 
(B) a specialty metal as defined by section 
2533b of title 10, United States Code; or 
(C) steel. 
(2) MAJOR SYSTEM.—The term ‘‘major system’’ 
has the meaning provided in section 2302 of title 10, 
United States Code. 
SEC. 809. CLARIFICATION OF THE PROTECTION OF STRA-
TEGIC MATERIALS CRITICAL TO NATIONAL 
SECURITY. 
(a) DEFINITION OF REQUIRED FORM.—Subsection 
(b) of section 2533b of title 10, United States Code, is 
amended by striking the period at the end and inserting 
the following: ‘‘and the term ‘required form’ means mill 
products, such as slab, plate and sheet, in the required
401 
•HR 1585 EH1S 
form necessary. The term ‘required form’ shall not apply 
to end items or to their components at any tier.’’. 
(b) APPLICABILITY TO PROCUREMENTS OF COMMER-
CIAL ITEMS.—Subsection (h) of section 2533b of title 10, 
United States Code, is amended by inserting ‘‘or 35’’ after 
‘‘This section applies to procurements of commercial items 
notwithstanding section 34.’’. 
(c) REVISION OF DOMESTIC NON-AVAILABILITY DE-
TERMINATIONS.—Any Domestic Non-Availability Deter-
mination made by the Department of Defense between De-
cember 6, 2006, and the date 60 days after the date of 
the enactment of this Act shall be reviewed and amended, 
if necessary, to comply with subsections (a) and (b). 
(d) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall apply with respect to con-
tracts entered into 60 days after the date of the enactment 
of this Act. 
SEC. 810. DEBARMENT OF CONTRACTORS CONVICTED OF 
CRIMINAL VIOLATIONS OF THE ARMS EX-
PORT CONTROL ACT. 
(a) DEBARMENT.—Except as provided in subsection 
(b), if the Secretary of Defense determines that a con-
tractor or prospective contractor has been convicted of a 
criminal violation of any provision of the Arms Export 
Control Act (22 U.S.C. 2751 et seq.), the Secretary shall
402 
•HR 1585 EH1S 
debar such contractor or prospective contractor from con-
tracting with the Department of Defense for a period not 
to exceed 5 years, not later than 90 days after determining 
that the contractor has been so convicted. 
(b) EXCEPTION.— 
(1) IN
GENERAL.—Subsection (a) does not 
apply in any case in which the Secretary determines 
that there is a compelling reason to solicit an offer 
from, award a contract to, extend a contract with, 
or approve a subcontract with such contractor or 
prospective contractor. 
(2) PUBLIC
NOTICE.—The Secretary shall 
transmit to the Administrator of General Services a 
notice of any determination made under paragraph 
(1) at the time of the determination. The Adminis-
trator of General Services shall maintain each such 
notice in a file available for public inspection. 
(c) DEFINITION.—In this section, the term ‘‘debar’’ 
has the meaning given that term by section 2393(c) of 
title 10, United States Code.
403 
•HR 1585 EH1S 
Subtitle B—Amendments to Gen-
eral 
Contracting 
Authorities, 
Procedures, and Limitations 
SEC. 811. CHANGE TO THE TRUTH IN NEGOTIATIONS ACT 
EXCEPTION FOR THE ACQUISITION OF A 
COMMERCIAL ITEM. 
Section 2306a(b) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(4) 
CERTAIN
SOLE
SOURCE
PROCURE-
MENTS.—The exception in paragraph (1)(C) does 
not apply in the case of a contract, subcontract, or 
modification of a contract or subcontract that is for 
a commercial item to be procured using procedures 
other than competitive procedures— 
‘‘(A) if the contracting officer determines 
that commercial sales data are insufficient to 
determine a fair and reasonable price; and 
‘‘(B) if the contractor’s business segment 
has submitted certified cost or pricing data in 
connection with at least one contract award or 
contract modification.’’.
404 
•HR 1585 EH1S 
SEC. 812. CLARIFICATION OF SUBMISSION OF COST OR 
PRICING DATA ON NONCOMMERCIAL MODI-
FICATIONS OF COMMERCIAL ITEMS. 
(a) MEASUREMENT OF PERCENTAGE AT CONTRACT 
AWARD.—Section 2306a(b)(3)(A) of title 10, United 
States Code, is amended by inserting after ‘‘total price of 
the contract’’ the following: ‘‘(at the time of contract 
award)’’. 
(b) ADJUSTMENT
OF DOLLAR AMOUNT.—Section 
2306a(b)(3)(A) of such title is amended by striking 
‘‘$500,000’’ and inserting ‘‘$650,000’’. 
SEC. 813. PLAN FOR RESTRICTING GOVERNMENT-UNIQUE 
CONTRACT CLAUSES ON COMMERCIAL CON-
TRACTS. 
(a) PLAN.—The Under Secretary of Defense for Ac-
quisition, Technology, and Logistics shall develop and im-
plement a plan to minimize the number of Government- 
unique contract clauses used in commercial contracts by 
restricting the clauses to the following: 
(1) Government-unique clauses authorized by 
law or regulation. 
(2) Any additional clauses that are relevant and 
necessary to a specific contract. 
(b) COMMERCIAL CONTRACT.—In this section:
405 
•HR 1585 EH1S 
(1) The term ‘‘commercial contract’’ means a 
contract awarded by the Federal Government for the 
procurement of a commercial item. 
(2) The term ‘‘commercial item’’ has the mean-
ing provided by section 4(12) of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 403(12)). 
SEC. 814. EXTENSION OF AUTHORITY FOR USE OF SIM-
PLIFIED 
ACQUISITION 
PROCEDURES 
FOR 
CERTAIN COMMERCIAL ITEMS. 
Section 4202(e) of the Clinger-Cohen Act of 1996 
(division D of Public Law 104–106; 110 Stat. 652; 10 
U.S.C. 2304 note) is amended by striking ‘‘January 1, 
2008’’ and inserting ‘‘January 1, 2010’’. 
SEC. 815. EXTENSION OF AUTHORITY TO FILL SHORTAGE 
CATEGORY POSITIONS FOR CERTAIN FED-
ERAL ACQUISITION POSITIONS. 
Section 1413(b) of the National Defense Authoriza-
tion Act for Fiscal Year 2004 (Public Law 108–136; 117 
Stat. 1665) is amended by striking ‘‘September 30, 2007’’ 
and inserting ‘‘September 30, 2012’’. 
SEC. 816. EXTENSION OF AUTHORITY TO CARRY OUT CER-
TAIN PROTOTYPE PROJECTS. 
Section 845(i) of the National Defense Authorization 
Act for Fiscal Year 1994 (10 U.S.C. 2371 note) is amend-
406 
•HR 1585 EH1S 
ed by striking ‘‘September 30, 2008’’ and inserting ‘‘Sep-
tember 30, 2013’’. 
SEC. 817. CLARIFICATION OF LIMITED ACQUISITION AU-
THORITY FOR SPECIAL OPERATIONS COM-
MAND. 
Section 167(e)(4) of title 10, United States Code, is 
amended— 
(1) by redesignating subparagraph (C) as sub-
paragraph (D); and 
(2) by inserting after subparagraph (B) the fol-
lowing new subparagraph: 
‘‘(C)(i) The staff of the commander shall include an 
acquisition executive, who shall be responsible for the 
same functions and duties, and have the same authorities, 
as the service acquisition executives for the military de-
partments. 
‘‘(ii) The staff of the commander shall include a sen-
ior procurement executive, who shall be responsible for 
providing management direction of the procurement sys-
tem of the command, advising and assisting the com-
mander and other officials of the combatant command to 
ensure that activities and missions of the command are 
achieved through the management of the procurement sys-
tem of the command, and otherwise being responsible for 
the same functions and duties, and having the same au-
407 
•HR 1585 EH1S 
thorities, as the senior procurement executive for the mili-
tary departments. 
‘‘(iii) The commander of the special operations com-
mand may designate the same individual to the position 
of acquisition executive and the position of senior procure-
ment executive. 
‘‘(iv) Any reference to service acquisition executive or 
senior procurement executive of a military department in 
any Federal law, Executive order, or regulation is deemed 
to include the acquisition executive or senior procurement 
executive of the special operations command unless such 
law, order, or regulation explicitly excludes such positions 
by reference to this section.’’. 
SEC. 818. EXEMPTION OF SPECIAL OPERATIONS COMMAND 
FROM CERTAIN REQUIREMENTS FOR CON-
TRACTS RELATING TO VESSELS, AIRCRAFT, 
AND COMBAT VEHICLES. 
Subsection (e) of section 167 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(5) The commander of the command, in carrying 
out his functions under this subsection, may carry out 
such functions with respect to a contract covered by sec-
tion 2401 of this title without regard to subsection (b) 
of that section if—
408 
•HR 1585 EH1S 
‘‘(A) the contract is for a term of not more 
than 5 years (including all options to renew or ex-
tend the contract); and 
‘‘(B) funds are available and obligated for the 
full cost of the contract (including termination costs) 
on or before the date the contract is awarded.’’. 
SEC. 819. PROVISION OF AUTHORITY TO MAINTAIN EQUIP-
MENT TO UNIFIED COMBATANT COMMAND 
FOR JOINT WARFIGHTING. 
Section 167a of title 10, United States Code, is 
amended— 
(1) in subsection (a), by striking ‘‘and acquire’’ 
and inserting ‘‘, acquire, and maintain’’; 
(2) by redesignating subsection (f) as sub-
section (g); and 
(3) by inserting after subsection (e) the fol-
lowing new subsection: 
‘‘(f) LIMITATION
ON
AUTHORITY
TO
MAINTAIN 
EQUIPMENT.—The authority delegated under subsection 
(a) to maintain equipment is subject to the availability of 
funds authorized and appropriated specifically for that 
purpose.’’.
409 
•HR 1585 EH1S 
SEC. 820. MARKET RESEARCH. 
(a) MARKET RESEARCH.—Subsection (c) of section 
2377 of title 10, United States Code, is amended as fol-
lows: 
(1) The subsection heading is amended by 
striking ‘‘PRELIMINARY’’. 
(2) Paragraph (1) is amended— 
(A) by striking ‘‘research appropriate to 
the circumstances—’’ and inserting ‘‘research— 
’’; 
(B) by striking ‘‘and’’ at the end of sub-
paragraph (A); 
(C) by striking the period at the end of 
subparagraph (B) and inserting ‘‘; and’’; and 
(D) by adding at the end the following: 
‘‘(C) before awarding a task order in excess of 
the simplified acquisition threshold.’’. 
(3) The subsection is amended by adding at the 
end the following new paragraphs: 
‘‘(4) The Secretary of Defense shall ensure that 
market research under this subsection includes use 
of an appropriately tailored search engine to access 
the world wide web in order to identify readily avail-
able capabilities in the commercial market place. 
‘‘(5) For programs with a value in excess of 
$1,000,000, the contracting officer must certify that
410 
•HR 1585 EH1S 
market research was performed before award of the 
contract or task order.’’. 
(b) EVALUATION
OF CERTAIN INCENTIVES.—The 
Under Secretary of Defense for Acquisition, Technology, 
and Logistics shall evaluate options for preferences or eco-
nomic incentives for contractors that maximize the use of 
readily available and proven capabilities in the commercial 
market place. 
Subtitle C—Accountability in 
Contracting 
SEC. 821. LIMITATION ON LENGTH OF NONCOMPETITIVE 
CONTRACTS. 
(a) REVISION OF FAR.—Not later than one year 
after the date of the enactment of this Act, the Federal 
Acquisition Regulation shall be revised to restrict the con-
tract period of any contract described in subsection (c) 
to the minimum contract period necessary— 
(1) to meet the urgent and compelling require-
ments of the work to be performed under the con-
tract; and 
(2) to enter into another contract for the re-
quired goods or services through the use of competi-
tive procedures. 
(b) CONTRACT PERIOD.—The regulations promul-
gated under subsection (a) shall require the contract pe-
411 
•HR 1585 EH1S 
riod to not exceed one year, unless the head of the execu-
tive agency concerned determines that the Government 
would be seriously injured by the limitation on the con-
tract period. 
(c) COVERED CONTRACTS.—This section applies to 
any contract in an amount greater than $1,000,000 en-
tered into by an executive agency using procedures other 
than competitive procedures pursuant to the exception 
provided in section 303(c)(2) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253(c)(2)) 
or section 2304(c)(2) of title 10, United States Code. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘executive agency’’ has the mean-
ing provided in section 4(1) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(1)). 
(2) The term ‘‘head of the executive agency’’ 
means the head of an executive agency except that, 
in the case of the Department of Defense, the term 
means— 
(A) in the case of a military department, 
the Secretary of the military department; 
(B) in the case of a Defense Agency, the 
head of the Defense Agency; and 
(C) in the case of any part of the Depart-
ment of Defense other than a military depart-
412 
•HR 1585 EH1S 
ment or Defense Agency, the Under Secretary 
of Defense for Acquisition, Technology, and Lo-
gistics. 
SEC. 822. MAXIMIZING FIXED-PRICE PROCUREMENT CON-
TRACTS. 
(a) PLANS REQUIRED.—Subject to subsection (c), 
the head of each executive agency covered by title III of 
the Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 251 et seq.) or, in the case of the Depart-
ment of Defense, the Under Secretary of Defense for Ac-
quisition, Technology, and Logistics, shall develop and im-
plement a plan to maximize, to the fullest extent prac-
ticable, the use of fixed-price type contracts for the pro-
curement of goods and services by the agency or depart-
ment concerned. The plan shall contain measurable goals 
and shall be completed and submitted to the Committee 
on Oversight and Government Reform of the House of 
Representatives, the Committee on Homeland Security 
and Governmental Affairs of the Senate, and the Commit-
tees on Appropriations of the House of Representatives 
and the Senate and, in the case of the Department of De-
fense and the Department of Energy, the Committees on 
Armed Services of the Senate and the House of Represent-
atives, with a copy provided to the Comptroller General,
413 
•HR 1585 EH1S 
not later than 1 year after the date of the enactment of 
this Act. 
(b) COMPTROLLER GENERAL REVIEW.—The Comp-
troller General shall review the plans provided under sub-
section (a) and submit a report to Congress on the plans 
not later than 18 months after the date of the enactment 
of this Act. 
(c) REQUIREMENT LIMITED
TO CERTAIN AGEN-
CIES.—The requirement of subsection (a) shall apply only 
to those agencies that awarded contracts in a total amount 
of at least $1,000,000,000 in the fiscal year preceding the 
fiscal year in which the report is submitted. 
SEC. 823. PUBLIC DISCLOSURE OF JUSTIFICATION AND AP-
PROVAL DOCUMENTS FOR NONCOMPETITIVE 
CONTRACTS. 
(a) CIVILIAN AGENCY CONTRACTS.— 
(1) IN GENERAL.—Section 303 of the Federal 
Property and Administrative Services Act of 1949 
(41 U.S.C. 253) is amended by adding at the end 
the following new subsection: 
‘‘(j)(1)(A) Except as provided in subparagraph (B), 
in the case of a procurement permitted by subsection (c), 
the head of an executive agency shall make publicly avail-
able, within 14 days after the award of the contract, the 
documents containing the justification and approval re-
414 
•HR 1585 EH1S 
quired by subsection (f)(1) with respect to the procure-
ment. 
‘‘(B) In the case of a procurement permitted by sub-
section (c)(2), subparagraph (A) shall be applied by sub-
stituting ‘30 days’ for ‘14 days’. 
‘‘(2) The documents shall be made available on the 
website of the agency and through the Federal Procure-
ment Data System. 
‘‘(3) This subsection does not require the public avail-
ability of information that is exempt from public disclosure 
under section 552(b) of title 5, United States Code.’’. 
(2) CONFORMING AMENDMENT.—Section 303(f) 
of such Act is amended— 
(A) by striking paragraph (4); and 
(B) by redesignating paragraph (5) as 
paragraph (4). 
(b) DEFENSE AGENCY CONTRACTS.— 
(1) IN
GENERAL.—Section 2304 of title 10, 
United States Code, is amended by adding at the 
end the following new subsection: 
‘‘(l)(1)(A) Except as provided in subparagraph (B), 
in the case of a procurement permitted by subsection (c), 
the head of an agency shall make publicly available, within 
14 days after the award of the contract, the documents
415 
•HR 1585 EH1S 
containing the justification and approval required by sub-
section (f)(1) with respect to the procurement. 
‘‘(B) In the case of a procurement permitted by sub-
section (c)(2), subparagraph (A) shall be applied by sub-
stituting ‘30 days’ for ‘14 days’. 
‘‘(2) The documents shall be made available on the 
website of the agency and through the Federal Procure-
ment Data System. 
‘‘(3) This subsection does not require the public avail-
ability of information that is exempt from public disclosure 
under section 552(b) of title 5.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
2304(f) of such title is amended— 
(A) by striking paragraph (4); and 
(B) by redesignating paragraphs (5) and 
(6) as paragraphs (4) and (5), respectively. 
SEC. 824. DISCLOSURE OF GOVERNMENT CONTRACTOR 
AUDIT FINDINGS. 
(a) QUARTERLY REPORT TO CONGRESS.— 
(1) REQUIREMENT.—The head of each Federal 
agency or department or, in the case of the Depart-
ment of Defense, the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, shall submit 
to the chairman and ranking member of each com-