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purposes of this section, the term ‘‘exempt item’’ means a
commercial item that is exempt under subsection (b)(1)(B)
of section 2306a of title 10, United States Code, or sub-
section (b)(1)(B) of section 304A of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 254b),
from the requirements for submission of certified cost or
pricing data under that section.
(c) COMMERCIAL PRICING REGULATIONS.—(1) The
Federal Acquisition Regulation issued in accordance with
sections 6 and 25 of the Office of Federal Procurement Pol-
icy Act shall be revised to clarify the procedures and meth-
ods to be used for determining the reasonableness of prices
of exempt items.
(2) The regulations shall, at a minimum, provide spe-
cific guidance on—
(A) the appropriate application and precedence
of such price analysis tools as catalog-based pricing,
market-based pricing, historical pricing, parametric
pricing, and value analysis;
(B) the circumstances under which contracting
officers should require offerors of exempt items to pro-
vide—
(i) uncertified cost or pricing data; or
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(ii) information on prices at which the of-
feror has previously sold the same or similar
items;
(C) the role and responsibility of Department of
Defense support organizations, such as the Defense
Contract Audit Agency, in procedures for determining
price reasonableness; and
(D) the meaning and appropriate application of
the term ‘‘purposes other than governmental pur-
poses’’ in section 4(12) of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 403(12)).
(3) This subsection shall cease to be effective one year
after the date on which final regulations prescribed pursu-
ant to paragraph (1) take effect.
(d) UNIFIED MANAGEMENT OF PROCUREMENT OF EX-
EMPT COMMERCIAL ITEMS.—The Secretary of Defense shall
develop and implement procedures to ensure that, to the
maximum extent that is practicable and consistent with the
efficient operation of the Department of Defense, a single
item manager or contracting officer is responsible for nego-
tiating and entering into all contracts for the procurement
of exempt items from a single contractor.
(e) COMMERCIAL PRICE TREND ANALYSIS.—(1) The
Secretary of Defense shall develop and implement proce-
dures that, to the maximum extent that is practicable and
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consistent with the efficient operation of the Department of
Defense, provide for the collection and analysis of informa-
tion on price trends for categories of exempt items described
in paragraph (2).
(2) A category of exempt items referred to in para-
graph (1) consists of exempt items—
(A) that are in a single Federal Supply Group
or Federal Supply Class, are provided by a single
contractor, or are otherwise logically grouped for the
purpose of analyzing information on price trends;
and
(B) for which there is a potential for the price
paid to be significantly higher (on a percentage basis)
than the prices previously paid in procurements of
the same or similar items for the Department of De-
fense, as determined by the head of the procuring De-
partment of Defense agency or the Secretary of the
procuring military department on the basis of cri-
teria prescribed by the Secretary of Defense.
(3) The head of a Department of Defense agency or
the Secretary of a military department shall take appro-
priate action to address any unreasonable escalation in
prices being paid for items procured by that agency or mili-
tary department as identified in an analysis conducted
pursuant to paragraph (1).
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(4)(A) Not later than 180 days after the date of the
enactment of this Act, the Under Secretary of Defense for
Acquisition and Technology shall submit to the congres-
sional defense committees a report describing the procedures
prescribed under paragraph (1), including a description of
the criteria established for the selection of categories of ex-
empt items for price trend analysis.
(B) Not later than April 1 of each of fiscal years 2000,
2001, and 2002, the Under Secretary of Defense for Acquisi-
tion and Technology shall submit to the congressional de-
fense committees a report on the analyses of price trends
that were conducted for categories of exempt items during
the preceding fiscal year under the procedures prescribed
pursuant to paragraph (1). The report shall include a de-
scription of the actions taken to identify and address any
unreasonable price escalation for the categories of items.
(f) SECRETARY
OF DEFENSE TO ACT THROUGH
UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND
TECHNOLOGY.—The Secretary of Defense shall act through
the Under Secretary of Defense for Acquisition and Tech-
nology to carry out subsections (d) and (e).
SEC. 806. DEPARTMENT 
OF 
DEFENSE 
PURCHASES
THROUGH OTHER AGENCIES.
(a) EXTENSION
OF REGULATIONS.—Not later than
three months after the date of the enactment of this Act,
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the Secretary of Defense shall revise the regulations issued
pursuant to section 844 of the National Defense Authoriza-
tion Act for Fiscal Year 1994 (Public Law 103–160; 107
Stat. 1720; 31 U.S.C. 1535 note) to cover all purchases of
goods and services by the Department of Defense under con-
tracts entered into or administered by any other agency
pursuant to the authority of section 2304a of title 10,
United States Code, or section 303H of the Federal Prop-
erty and Administrative Services Act (41 U.S.C. 253h).
(b) TERMINATION.—This section shall cease to be effec-
tive 1 year after the date on which final regulations pre-
scribed pursuant to subsection (a) take effect.
SEC. 807. SUPERVISION OF DEFENSE ACQUISITION UNI-
VERSITY STRUCTURE BY UNDER SECRETARY
OF DEFENSE FOR ACQUISITION AND TECH-
NOLOGY.
Section 1702 of title 10, United States Code, is amend-
ed by adding at the end the following: ‘‘The Under Sec-
retary shall prescribe policies and requirements for the edu-
cational programs of the defense acquisition university
structure established under section 1746 of this title.’’.
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SEC. 808. REPEAL OF REQUIREMENT FOR DIRECTOR OF
ACQUISITION EDUCATION, TRAINING, AND
CAREER DEVELOPMENT TO BE WITHIN THE
OFFICE OF THE UNDER SECRETARY OF DE-
FENSE FOR ACQUISITION AND TECHNOLOGY.
Section 1703 of title 10, United States Code, is amend-
ed by striking out ‘‘within the office of the Under Sec-
retary’’.
SEC. 809. ELIGIBILITY OF INVOLUNTARILY DOWNGRADED
EMPLOYEE FOR MEMBERSHIP IN AN ACQUISI-
TION CORPS.
Section 1732(c) of title 10, United States Code, is
amended by adding at the end the following new paragraph:
‘‘(3) Paragraph (1) of subsection (b) shall not apply
to an employee who—
‘‘(A) having previously served in a position
within a grade referred to in subparagraph (A) of
that paragraph, is currently serving in the same posi-
tion within a grade below GS–13, or in another posi-
tion within that grade, by reason of a reduction in
force or the closure or realignment of a military in-
stallation, or for any other reason other by reason of
an adverse personnel action for cause; and
‘‘(B) except as provided in paragraphs (1) and
(2), satisfies the educational, experience, and other re-