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comprises a system or solution that is not dependent on a subse-
quent increment in order to perform its principal functions; and 
(D) provide an opportunity for subsequent increments of the ac-
quisition to take advantage of any evolution in technology or needs 
that occurs during conduct of the earlier increments; 
(2) to the maximum extent practicable, a contract for an increment 
of an information technology acquisition should be awarded within 180 
days after the solicitation is issued and, if the contract for that incre-
ment cannot be awarded within that period, the increment should be 
considered for cancellation; and 
(3) the information technology provided for in a contract for acquisi-
tion of information technology should be delivered within 18 months 
after the solicitation resulting in award of the contract was issued. 
§ 2308. Protection of constitutional rights of contractors 
(a) PROHIBITION ON REQUIRING WAIVER OF RIGHTS.—A contractor may 
not be required, as a condition for entering into a contract with the Federal 
Government, to waive a right under the Constitution for a purpose relating 
to the Chemical Weapons Convention Implementation Act of 1998 (22 
U.S.C. 6701 et seq.) or the Chemical Weapons Convention (as defined in 
section 3 of that Act (22 U.S.C. 6701)). 
(b) PERMISSIBLE CONTRACT CLAUSES.—Subsection (a) does not prohibit 
an executive agency from including in a contract a clause that requires the 
contractor to permit inspections to ensure that the contractor is performing 
the contract in accordance with the provisions of the contract. 
§ 2309. Performance-based contracts or task orders for serv-
ices to be treated as contracts for the procurement 
of commercial items 
(a) CRITERIA.—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 con-
tract for the procurement of commercial items if— 
(1) the value of the contract or task order is estimated not to exceed 
$25,000,000; 
(2) the contract or task order sets forth specifically each task to be 
performed and, for each task— 
(A) defines the task in measurable, mission-related terms; 
(B) identifies the specific end products or output to be achieved; 
and 
(C) contains firm, fixed prices for specific tasks to be performed 
or outcomes to be achieved; and 
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(3) the source of the services provides similar services to the general 
public under terms and conditions similar to those offered to the Fed-
eral Government. 
(b) REGULATIONS.—Regulations implementing this section shall require 
agencies to collect and maintain reliable data sufficient to identify the con-
tracts or task orders treated as contracts for commercial items using the 
authority of this section. The data may be collected using the Federal Pro-
curement Data System or other reporting mechanism. 
(c) REPORT.—Not later than 2 years after November 24, 2003, the Di-
rector of the Office of Management and Budget shall prepare and submit 
to the Committees on Homeland Security and 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 con-
tracts or task orders treated as contracts for commercial items using the 
authority of this section. The report shall include data on the use of the 
authority, both government-wide and for each department and agency. 
(d) EXPIRATION.—The authority under this section expires 10 years after 
November 24, 2003. 
PART C—PROCUREMENT 
CHAPTER 31—GENERAL 
Sec. 
3101.
Applicability. 
3102.
Delegation and assignment of powers, functions, and responsibilities. 
3103.
Acquisition programs. 
3104.
Small business concerns. 
3105.
New contracts and grants and merit-based selection procedures. 
3106.
Erection, repair, or furnishing of public buildings and improvements not authorized, 
and certain contracts not permitted, by this part. 
§ 3101. Applicability 
(a) IN GENERAL.—An executive agency shall make purchases and con-
tracts for property and services in accordance with this part and imple-
menting regulations of the Administrator of General Services. 
(b) SIMPLIFIED ACQUISITION THRESHOLD AND PROCEDURES.— 
(1) SIMPLIFIED ACQUISITION THRESHOLD.— 
(A) DEFINITION.—For purposes of an acquisition by an execu-
tive agency, the simplified acquisition threshold is as specified in 
section 134 of this title. 
(B) INAPPLICABLE LAWS.—A law properly listed in the Federal 
Acquisition Regulation pursuant to section 1905 of this title does 
not apply to or with respect to a contract or subcontract that is 
not greater than the simplified acquisition threshold. 
(2) SIMPLIFIED ACQUISITION PROCEDURES.—Simplified acquisition 
procedures contained in the Federal Acquisition Regulation pursuant to 
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section 1901 of this title apply in executive agencies as provided in sec-
tion 1901. 
(c) EXCEPTIONS.— 
(1) IN GENERAL.—This part does not apply— 
(A) to the Department of Defense, the Coast Guard, and the 
National Aeronautics and Space Administration; or 
(B) except as provided in paragraph (2), when this part is made 
inapplicable pursuant to law. 
(2) APPLICABILITY OF CERTAIN LAWS RELATED TO ADVERTISING, 
OPENING OF BIDS, AND LENGTH OF CONTRACT.—Sections 6101, 6103, 
and 6304 of this title do not apply to the procurement of property or 
services made by an executive agency pursuant to this part. However, 
when this part is made inapplicable by any law, sections 6101 and 
6103 of this title apply in the absence of authority conferred by statute 
to procure without advertising or without regard to section 6101 of this 
title. A law that authorizes an executive agency (other than an execu-
tive agency exempted from this part by this subsection) to procure 
property or services without advertising or without regard to section 
6101 of this title is deemed to authorize the procurement pursuant to 
the provisions of this part relating to procedures other than sealed-bid 
procedures. 
§ 3102. Delegation and assignment of powers, functions, and 
responsibilities 
(a) IN GENERAL.—Except to the extent expressly prohibited by another 
law, the head of an executive agency may delegate to another officer or offi-
cial of that agency any power under this part. 
(b) PROCUREMENTS FOR OR WITH ANOTHER AGENCY.—Subject to sub-
section (a), to facilitate the procurement of property and services covered 
by this part by an executive agency for another executive agency, and to 
facilitate joint procurement by executive agencies— 
(1) the head of an executive agency may delegate functions and as-
sign responsibilities relating to procurement to any officer or employee 
within the agency; 
(2) the heads of 2 or more executive agencies, consistent with section 
1535 of title 31 and regulations prescribed under section 1074 of the 
Federal Acquisition Streamlining Act of 1994 (Public Law 103–355, 
31 U.S.C. 1535 note), may by agreement delegate procurement func-
tions and assign procurement responsibilities from one executive agency 
to another of those executive agencies or to an officer or civilian em-
ployee of another of those executive agencies; and 
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(3) the heads of 2 or more executive agencies may establish joint or 
combined offices to exercise procurement functions and responsibilities. 
§ 3103. Acquisition programs 
(a) CONGRESSIONAL POLICY.—It is the policy of Congress that the head 
of each executive agency should achieve, on average, 90 percent of the cost, 
performance, and schedule goals established for major acquisition programs 
of the agency. 
(b) ESTABLISHMENT OF GOALS.— 
(1) BY HEAD OF EXECUTIVE AGENCY.—The head of each executive 
agency shall approve or define the cost, performance, and schedule 
goals for major acquisition programs of the agency. 
(2) BY CHIEF FINANCIAL OFFICER.—The chief financial officer of an 
executive agency shall evaluate the cost goals proposed for each major 
acquisition program of the agency. 
(c) IDENTIFICATION OF NONCOMPLIANT PROGRAMS.—When it is nec-
essary to implement the policy set out in subsection (a), the head of an ex-
ecutive agency shall— 
(1) determine whether there is a continuing need for programs that 
are significantly behind schedule, over budget, or not in compliance 
with performance or capability requirements; and 
(2) identify suitable actions to be taken, including termination, with 
respect to those programs. 
§ 3104. Small business concerns 
It is the policy of Congress that a fair proportion of the total purchases 
and contracts for property and services for the Federal Government shall 
be placed with small business concerns. 
§ 3105. New contracts and grants and merit-based selection 
procedures 
(a) CONGRESSIONAL POLICY.—It is the policy of Congress that— 
(1) an executive agency should not be required by legislation to 
award— 
(A) a new contract to a specific non-Federal Government entity; 
or 
(B) a new grant for research, development, test, or evaluation 
to a non-Federal Government entity; and 
(2) a program, project, or technology identified in legislation be pro-
cured or awarded through merit-based selection procedures. 
(b) NEW CONTRACT AND NEW GRANT DESCRIBED.—For purposes of 
this section— 
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