I
104TH CONGRESS
1ST SESSION
H. R. 1795
To improve Government procurement procedures.
IN THE HOUSE OF REPRESENTATIVES
JUNE 8, 1995
Mrs. COLLINS of Illinois introduced the following bill; which was referred to
the Committee on Government Reform and Oversight, and in addition to
the Committee on National Security, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To improve Government procurement procedures.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Federal Acquisition Improvement Reform Act of 1995’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Competition provisions.
Sec. 3. Simplified procedures for purchases of commercial items.
Sec. 4. Disclosing and obtaining contractor bid or proposal information or
source selection information.
Sec. 5. Value engineering requirements for Federal agencies.
SEC. 2. COMPETITION PROVISIONS.
(a) CONFERENCE BEFORE SUBMISSION OF BIDS OR
PROPOSALS.—(1) Section 2305(a) of title 10, United
States Code, is amended by adding at the end the follow-
ing paragraph:
‘‘(6) To the extent practicable, for each procurement
of property or services by an agency, the head of the agen-
cy shall provide for a conference on the procurement to
be held for anyone interested in submitting a bid or pro-
posal in response to the solicitation for the procurement.
The purpose of the conference shall be to inform potential
bidders and offerors of the needs of the agency and the
qualifications considered necessary by the agency to com-
pete successfully in the procurement.’’.
(2) Section 303A of the Federal Property and Admin-
istrative Services Act of 1949 (41 U.S.C. 253a) is amend-
ed by adding at the end the following new subsection:
‘‘(f) To the extent practicable, for each procurement
of property or services by an agency, an executive agency
shall provide for a conference on the procurement to be
held for anyone interested in submitting a bid or proposal
in response to the solicitation for the procurement. The
purpose of the conference shall be to inform potential bid-
ders and offerors of the needs of the executive agency and
the qualifications considered necessary by the executive
agency to compete successfully in the procurement.’’.
(b) DESCRIPTION OF SOURCE SELECTION PLAN IN
SOLICITATION.—(1) Section 2305(a) of title 10, United
States Code, is further amended in paragraph (2)—
(A) by striking out ‘‘and’’ after the semicolon
at the end of subparagraph (A);
(B) by striking out the period at the end of
subparagraph (B) and inserting in lieu thereof ‘‘;
and’’; and
(C) by adding at the end the following new sub-
paragraph:
‘‘(C) a description, in as much detail as is prac-
ticable, of the source selection plan of the agency, or
a notice that such plan is available upon request.’’.
(2) Section 303A of the Federal Property and Admin-
istrative Services Act of 1949 (41 U.S.C. 253a) is further
amended in subsection (b)—
(A) by striking out ‘‘and’’ after the semicolon
at the end of paragraph (1);
(B) by striking out the period at the end of
paragraph (2) and inserting in lieu thereof ‘‘; and’’;
and
(C) by adding at the end the following new
paragraph:
‘‘(3) a description, in as much detail as is prac-
ticable, of the source selection plan of the executive
agency, or a notice that such plan is available upon
request.’’.
(c) DISCUSSIONS NOT NECESSARY WITH EVERY
OFFEROR.—(1) Section 2305(b)(4)(A)(i) of title 10, Unit-
ed States Code, is amended by inserting before the semi-
colon the following: ‘‘and provided that discussions need
not be conducted with an offeror merely to permit that
offeror to submit a technically acceptable revised pro-
posal’’.
(2) Section 303B(d)(1)(A) of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 253b)
is amended by inserting before the semicolon the following:
‘‘and provided that discussions need not be conducted with
an offeror merely to permit that offeror to submit a tech-
nically acceptable revised proposal’’.
(d) PRELIMINARY ASSESSMENTS OF COMPETITIVE
PROPOSALS.—(1) Section 2305(b)(2) of title 10, United
States Code, is amended by adding at the end the follow-
ing: ‘‘With respect to competitive proposals, the head of
the agency may make a preliminary assessment of a pro-
posal received, rather than a complete evaluation of the
proposal, and may eliminate the proposal from further
consideration if the head of the agency determines the pro-
posal has no chance for contract award.’’.
(2) Section 303B of the Federal Property and Ad-
ministrative Services Act of 1949 (41 U.S.C. 253b) is
amended by adding at the end the following: ‘‘With respect
to competitive proposals, the head of the agency may make
a preliminary assessment of a proposal received, rather
than a complete evaluation of the proposal, and may elimi-
nate the proposal from further consideration if the head
of the agency determines the proposal has no chance for
contract award.’’.
(e) FEDERAL ACQUISITION REGULATION.—The Fed-
eral Acquisition Regulation shall be revised to reflect the
amendments made by subsections (a), (b), (c), and (d).
SEC. 3. SIMPLIFIED PROCEDURES FOR PURCHASES OF
COMMERCIAL ITEMS.
(a) ARMED SERVICES ACQUISITIONS.—Subsection
(g) of section 2304 of title 10, United States Code, is
amended to read as follows:
‘‘(g) SIMPLIFIED PROCEDURES.—(1) In order to pro-
mote efficiency and economy in contracting and to avoid
unnecessary burdens for agencies and contractors, the
Federal Acquisition Regulation shall provide for special
simplified procedures for purchases of commercial items
and for purchases of property and services for amounts
not greater than the simplified acquisition threshold.
‘‘(2) A proposed purchase or contract for an amount
above the simplified acquisition threshold may not be di-
vided into several purchases or contracts for lesser
amounts in order to use the simplified procedures required
by paragraph (1).
‘‘(3) In using simplified procedures, the head of an
agency shall ensure that competition is obtained to the ex-
tent practicable consistent with the particular Government
requirement.
‘‘(4) In the case of a purchase of commercial items,
if the purchase or contract is for an amount in excess of
the simplified acquisition threshold, the head of the agency
shall justify in writing the use of simplified procedures
under this subsection.’’.
(b) CIVILIAN AGENCY ACQUISITIONS.—Subsection
(g) of section 303 of the Federal Property Administrative
Services Act of 1949 (41 U.S.C. 253) is amended to read
as follows:
‘‘(g) SIMPLIFIED PROCEDURES.—(1) In order to pro-
mote efficiency and economy in contracting and to avoid
unnecessary burdens for agencies and contractors, the
Federal Acquisition Regulation shall provide for special
simplified procedures for purchases of commercial items
and for purchases of property and services for amounts
not greater than the simplified acquisition threshold.
‘‘(2)(A) The Administrator of General Services shall
prescribe regulations that provide special simplified proce-
dures for acquisitions of leasehold interests in real prop-
erty at rental rates that do not exceed the simplified acqui-
sition threshold.
‘‘(B) For purposes of subparagraph (A), the rental
rate or rates under a multiyear lease do not exceed the
simplified acquisition threshold if the average annual
amount of the rent payable for the period of the lease does
not exceed the simplified acquisition threshold.
‘‘(3) A proposed purchase or contract or for an
amount above the simplified acquisition threshold may not
be divided into several purchases or contracts for lesser
amounts in order to use the simplified procedures required
by paragraph (1).
‘‘(4) In using simplified procedures, an executive
agency shall ensure that competition is obtained to the ex-
tent practicable consistent with the particular Government
requirement.
‘‘(5) In the case of a purchase of commercial items,
if the purchase or contract is for an amount in excess of
the simplified acquisition threshold, the executive agency
shall justify in writing the use of simplified procedures
under this subsection.’’.
SEC. 4. DISCLOSING AND OBTAINING CONTRACTOR BID OR
PROPOSAL INFORMATION OR SOURCE SE-
LECTION INFORMATION.
(a) AMENDMENT OF PROCUREMENT INTEGRITY PRO-
VISION.—Section 27 of the Office of Federal Procurement
Policy Act (41 U.S.C. 423) is amended—
(1) by repealing subsections (a) through (e) and
(g) through (p);
(2) in subsection (f), by striking out the sub-
section heading and redesignating the subsection as
subsection (i);
(3) by amending the section heading to read as
follows:
‘‘SEC. 27. DISCLOSING AND OBTAINING CONTRACTOR BID
OR PROPOSAL INFORMATION OR SOURCE SE-
LECTION INFORMATION AND RESTRICTIONS
RESULTING FROM PROCUREMENT ACTIVI-
TIES OF PROCUREMENT OFFICIALS.’’;
and
(4) by inserting before subsection (i) (as so re-
designated) the following:
‘‘(a) A present or former officer or employee of the
United States, or a person who is acting or has acted for
or on behalf of or who is advising or has advised the
United States with respect to a Federal agency procure-
ment and who—
‘‘(1) by virtue of that office, employment, or re-
lationship has or had access to contractor bid or pro-
posal information or source selection information,
and
‘‘(2) other than as provided by law, knowingly
discloses that information before the award of a
Federal agency procurement contract to which the
information relates, is subject to the penalties and
administrative actions set forth in subsection (d).
‘‘(b) Whoever, other than as provided by law, know-
ingly obtains contractor bid or proposal information or
source selection information before the award of a Federal
agency procurement contract to which the information re-
lates, is subject to the penalties and administrative actions
set forth in subsection (d).
‘‘(c) Whoever, other than as provided by law, know-
ingly violates the terms of a protective order, issued by
the Comptroller General or the board of contract appeals
of the General Services Administration in connection with
a protest against the award or proposed award of a Fed-
eral agency procurement contract, by disclosing or obtain-
ing contractor bid or proposal information or source selec-
tion information is subject to the penalties and adminis-
trative actions set forth in subsection (d).
‘‘(d) The penalties and administrative actions for an
offense under subsection (a), (b), or (c), are as follows:
‘‘(1) CRIMINAL PENALTIES.—
‘‘(A) Whoever engages in the conduct con-
stituting the offense shall be imprisoned for not
more than one year or fined in the amount set
forth in section 3571 of title 18, United States
Code, or both.
‘‘(B) Whoever engages in the conduct con-
stituting the offense for the purpose of either—
‘‘(i) exchanging the information cov-
ered by subsections (a), (b), and (c), for
anything of value, or
‘‘(ii) obtaining or giving anyone a
competitive advantage in the award of a
Federal agency procurement contract, shall
be imprisoned for not more than 15 years
or fined in the amount set forth in section
3571 of title 18, United States Code, or
both.
‘‘(2) CIVIL PENALTIES.—The Attorney General
may bring a civil action in the appropriate United
States district court against any person who engages
in conduct constituting an offense under subsection
(a), (b), or (c). Upon proof of such conduct by a
preponderance of the evidence, the person is subject
to a civil penalty. An individual who engages in such
conduct is subject to a civil penalty of not more than
$50,000 for each violation plus twice the amount of
compensation which the individual received or of-
fered for the prohibited conduct. An organization
that engages in such conduct is subject to a civil
penalty of not more than $500,000 for each violation
plus twice the amount of compensation which the or-
ganization received or offered for the prohibited con-
duct.
‘‘(3) Administrative actions. If a Federal agen-
cy receives information that a contractor or a person
has engaged in conduct constituting an offense
under subsection (a), (b), or (c), the Federal agency
shall consider one or more of the following actions,
as appropriate:
‘‘(A) Canceling the Federal agency pro-
curement when a contract has not been award-
ed;
‘‘(B) Declaring void and rescinding a con-
tract in relation to which there has been ei-
ther—
‘‘(i) a conviction for an offense under
subsection (a), (b), or (c), committed by
the contractor or someone acting for the
contractor, or
‘‘(ii) a determination by the head of
the agency based upon a preponderance of
the evidence that the contractor or some-
one acting for the contractor has engaged
in such conduct.
If such action is taken, the United States is en-
titled to recover in addition to any penalty pre-
scribed by law, the amount expended under the
contract;
‘‘(C) Initiating suspension or debarment
proceedings for the protection of the Govern-
ment in accordance with procedures in the Fed-
eral Acquisition Regulation. In this regard, en-
gaging in conduct constituting an offense under
subsection (a), (b), or (c), affects the present
responsibility of a Government contractor or
subcontractor; or
‘‘(D) Initiating adverse personnel action,
pursuant to the procedures in chapter 75 of
title 5, United States Code, or other applicable
law or regulation.
‘‘(e) For purposes of this section:
‘‘(B) Proposed costs or prices submitted in
response to a Federal agency solicitation or lists
of those proposed costs or prices;
‘‘(C) Source selection plans;
‘‘(D) Technical evaluation plans;
‘‘(E) Technical evaluations of proposals;
‘‘(F) Cost or price evaluations of propos-
als;
‘‘(G) Competitive range determinations
which identify proposals that have a reasonable
chance of being selected for award of a con-
tract;
‘‘(H) Rankings of bids, proposals, or com-
petitors;
‘‘(I) The reports and evaluations of source
selection panels or boards or advisory councils;
or
‘‘(J) Other information marked as ‘source
selection information’ based upon a case-by-case
determination by the head of the agency, his
designee, or the contracting officer that its dis-
closure would jeopardize the integrity or suc-
cessful completion of the Federal agency pro-
curement to which the information relates.
‘‘(f) No person may file a protest against the award
or proposed award of a Federal agency procurement con-
tract alleging an offense under subsection (a), (b), or (c),
of this section, nor may the Comptroller General or the
board of contract appeals of the General Services Adminis-
tration consider such an allegation in deciding such a pro-
test, unless that person reported information to the Fed-
eral agency responsible for the procurement that he be-
lieved constituted evidence of the offense no later than ten
working days after he first discovered the possible offense.
‘‘(g) This section does not—
‘‘(1) restrict the disclosure of information to or
its receipt by any person or class of persons author-
ized, in accordance with applicable agency regula-
tions or procedures, to receive that information;
‘‘(2) restrict a contractor from disclosing its
own bid or proposal information or the recipient
from receiving that information;
‘‘(3) restrict the disclosure or receipt of infor-
mation relating to the Federal agency procurement
after it has been canceled by the Federal agency
prior to contract award unless the Federal agency
plans on resuming the procurement;
‘‘(4) authorize the withholding of information
from nor restrict its receipt by the Congress, a com-
mittee or subcommittee thereof, the Comptroller
General, a Federal agency, or an Inspector General
of a Federal agency;
‘‘(5) authorize the withholding of information
from nor restrict its receipt by the Court of Federal
Claims, any board of contract appeals of a Federal
agency or the Comptroller General in the course of
a protest against the award or proposed award of a
Federal agency procurement contract;
‘‘(6) prohibit individual meetings between an
agency employee and a competitor for or recipient of
a contract or subcontract under a Federal agency
procurement, provided that unauthorized disclosure
or receipt of contractor bid or proposal information
or source selection information does not occur; or
‘‘(7) limit the applicability of the requirements,
sanctions, contract penalties, and remedies estab-
lished under any other law or regulation.
‘‘(h) This section does not apply to the conduct of
a Federal agency procurement for an amount not greater
than the simplified acquisition threshold as defined in sec-
tion 4(11).’’.
(b) REGULATIONS AND GUIDELINES.—Government-
wide regulations and guidelines deemed appropriate to
carry out this section shall be issued in the Federal Acqui-
sition Regulation by the Department of Defense, the Gen-
eral Services Administration, and the National Aero-
nautics and Space Administration, in coordination with
the Federal Acquisition Regulatory Council.
(c) REPEAL.—Subsection 32(c) of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 28(c)) is repealed.
(d) CONFORMING AMENDMENT.—Section 32 of the
Office of Federal Procurement Policy Act is amended by
redesignating subsections (d), (e), (f), and (g) as sub-
sections (c), (d), (e), and (f), respectively.
SEC. 5. VALUE ENGINEERING REQUIREMENTS FOR FED-
ERAL AGENCIES.
(a) IN GENERAL.—Federal agencies shall apply value
engineering consistent with subsection (b)(2) to, at a mini-
mum, identify and implement opportunities to reduce cap-
ital and operation costs and improve and maintain opti-
mum quality of construction, administrative, program, ac-
quisition, and grant projects. The head of each Federal
agency shall require senior management personnel to es-
tablish and maintain value engineering procedures and
processes. Such procedures and processes shall, at a mini-
mum—
(1) utilize qualified value engineering personnel
consistent with paragraphs (1) and (4) of subsection
(b);
(2) provide for the aggressive and systematic
development and maintenance of the most effective,
efficient, and economical arrangement for conduct-
ing the work of the agency; and
(3) provide a sound basis for the reporting of
accomplishments to the Office of Management and
Budget, the President, the Congress, and the public.
(b) AGENCY RESPONSIBILITIES.—To ensure that
systemic value engineering improvements are achieved,
each Federal agency shall, at a minimum, carry out the
following:
(1) Designate a senior management official with
a significant, well-documented background in value
engineering as the value engineering manager within
the agency, to oversee and monitor value engineering
efforts and to coordinate the development of criteria
and guidelines referred to in paragraph (2).
(2) Develop criteria and guidelines for both
agency employees and contractor employees to iden-
tify programs, projects, systems, and products with
the greatest potential to yield savings and benefits
from the application of value engineering methodol-
ogy. The criteria and guidelines should recognize
that the potential savings are greatest during the
planning, design, and other early phases of program,
project, system, and product development. The cri-
teria and guidelines shall include the following:
(A) Consideration of return on the Govern-
ment’s investment in value engineering, deter-
mined by dividing the Government’s cost of per-
forming the value engineering function by the
savings generated by the function.
(B) A dollar amount threshold for requir-
ing the application of value engineering. The
threshold shall be designed to ensure that value
engineering is applied to—
(i) each program, project, system, and
product of the agency that has a dollar
value greater than the threshold; and
(ii) those programs, projects, systems,
and products that, in a ranking of all pro-
grams, projects, systems, and products of
the agency according to greatest dollar
value, are within the highest 20th percent-
ile.
For purposes of applying such a threshold, the
dollar values of various programs, projects, sys-
tems, and products of an agency that have indi-
vidual values below the threshold shall be aggre-
gated if they utilize equivalent planning or de-