II Calendar No. 677 118th CONGRESS 2d Session S. 4055 [Report No. 118–274] IN THE SENATE OF THE UNITED STATES March 22, 2024 Mr. Peters (for himself and Mr. Lankford ) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs December 9, 2024 Reported by Mr. Peters , with an amendment Strike out all after the enacting clause and insert the part printed in italic A BILL To provide for a pilot program to improve contracting outcomes, and for other purposes.

1. Short title This Act may be cited as the Improving Contracting Outcomes Act of 2024 . 2. Definitions In this Act: (1) Appropriate congressional committees The term appropriate congressional committees means the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives. (2) Chief Financial Officer Act Agency The term Chief Financial Officer Act Agency means an agency listed in section 901(b) of title 31, United States Code. (3) Cost avoidance The term cost avoidance refers to— (A) reductions in the need for increased funding if present management practices continued; (B) unfunded requirements that were avoided; and (C) productivity gains, such as reduction in required labor hours, reduction in contract duplication, and use of shared contract programs. (4) Cost savings The term cost savings means reductions to budget lines or funded programs resulting from a new policy, process, or activity with no adverse impact on mission. (5) End user The term end user means the internal stakeholder that uses the product or service procured. (6) Head of contracting activity The term head of contracting activity has the meaning given the term head of the contracting activity in section 2.101 of the Federal Acquisition Regulation. (7) Military department The term military department has the meaning given the term in section 101(a)(8) of title 10, United States Code. (8) Multiple award contract The term multiple award contract means— (A) a contract that is entered into by the Administrator of General Services under the multiple award schedule program referred to in section 3012(3) of title 10, United States Code; or (B) a multiple award task order contract that is entered into under the authority of title 10 or title 41, United States Code. (9) Senior procurement executive The term senior procurement executive has the meaning given the term in section 1702(c) of title 41, United States Code. (10) Transactional data The term transactional data refers to order details, including unit price, quantity, and line item descriptions. 3. Pilot program to improve contracting outcomes (a) In general Not later than 180 days after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall initiate a pilot program to improve contracting outcomes. (b) Purpose The purpose of the pilot program is to identify and assess innovative approaches for establishing and using outcome-oriented contracting metrics, and the potential to establish and use outcome-oriented contracting metrics at each Chief Financial Officer Act Agency and military department. (c) Key elements The pilot program initiated pursuant to subsection (a) shall— (1) comprise no less than three Chief Financial Officer Act Agencies, and at least one military department; (2) span a period of two years; (3) demonstrate how senior procurement executives can establish quantitative outcome-oriented contracting metrics and corresponding goals— (A) expressed on an annual basis; (B) for each Head of Contracting Activity; and (C) representing, at a minimum— (i) cost avoidance or cost savings; (ii) timeliness of deliveries in terms of end users’ receipt of a product or the start of a service; (iii) quality of deliverables in terms of end users’ satisfaction with a delivered product or provided service; and (iv) end user satisfaction with the degree and nature of collaboration between the end user and the relevant procurement officials; (4) illustrate how senior procurement executives can use the quantitative outcome-oriented contracting metrics and goals required under paragraph (3) to— (A) assess the performance of procurement organizations on an ongoing basis; (B) identify and share leading practices that Heads of Contracting Activity and other procurement officials can use to achieve desired contracting outcomes; (C) evaluate key factors affecting contracting outcomes, including— (i) collaboration with key stakeholders, particularly requirements generators, pre- and post-contract award; and (ii) contractor performance; and (5) assess the benefits and drawbacks of leveraging various data sources when establishing and using the outcome-oriented contracting metrics and goals required under paragraphs (3) and (4), respectively, including, at a minimum— (A) data stored in the Contractor Performance Assessment Reporting System; and (B) transactional data for orders against multiple award contracts. (d) Rule of construction Nothing in this section shall be construed as precluding senior procurement executives from establishing or maintaining additional performance metrics and goals, in particular metrics and goals for small business utilization. 4. Office of Federal Procurement Policy reporting (a) Interim report (1) In general Not later than 2 years after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall submit to the appropriate congressional committees and the Comptroller General of the United States an interim report on the pilot program required under section 3. (2) Purpose The purpose of the interim report shall be to identify how each of the senior procurement executives participating in the pilot program are meeting the requirements under section 3(c). (3) Key elements The interim report shall identify, at a minimum— (A) each quantitative outcome-oriented contracting goal established pursuant to section 3(c)(3), including— (i) a precise definition that includes the methodology and data used to measure actual performance against the goal; and (ii) the rationale for the goal; (B) illustrative examples of how each senior procurement executive has used quantitative outcome-oriented contracting metrics and goals to identify and share leading practices and key factors affecting contracting outcomes pursuant to section 3(c)(4); and (C) data improvement initiatives, informed by the assessment required under section 3(c)(5), including a plan of action and milestones to improve the reliability of relevant data, including at a minimum— (i) data stored in the Contractor Performance Assessment Reporting System; and (ii) transactional data for orders against multiple award contracts. (b) Final report (1) In general Not later than three years after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall submit to the appropriate congressional committees and the Comptroller General of the United States a final report on the pilot program required under section 3. (2) Purpose The purpose of the final report shall be to identify how each of the senior procurement executives participating in the pilot program met the requirements under section 3(c), and assess the potential to establish and use outcome-oriented contracting metrics and goals at each Chief Financial Officer Act Agency and military department in the future. (3) Key elements The final report shall identify, at a minimum— (A) any modifications to the outcome-oriented metrics and goals established pursuant to section 3(c)(3) since the issuance of the interim report required under subsection (a), including— (i) modifications to the definitions for the metrics and goals; and (ii) the rationale for any modifications; (B) examples of how each senior procurement executive has used outcome-oriented contracting metrics and goals to identify and share leading practices and key factors affecting contracting outcomes pursuant to section 3(c)(4) during the preceding year; (C) a description of progress against the plan of action and milestones required under subsection (a)(3)(C), including qualitative descriptions of significant challenges and limitations hindering data improvement efforts; and (D) observations from the Administrator for Federal Procurement Policy regarding the respective advantages and disadvantages of various approaches for establishing and using outcome-oriented contracting metrics and goals. 5. Government accountability office reporting Not later than 180 days after receiving the interim and final reports required under section 4, the Comptroller General of the United States shall provide the Comptroller General’s independent observations on the report to the appropriate congressional committees.

1. Short title This Act may be cited as the Improving Contracting Outcomes Act of 2024 . 2. Definitions In this Act: (1) Appropriate congressional committees The term appropriate congressional committees means the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives. (2) Chief Financial Officer Act Agency The term Chief Financial Officer Act Agency means an agency listed in section 901(b) of title 31, United States Code. (3) Cost avoidance The term cost avoidance refers to— (A) reductions in the need for increased funding if present management practices continued; (B) unfunded requirements that were avoided; and (C) productivity gains, such as reduction in required labor hours, reduction in contract duplication, and use of shared contract programs. (4) Cost savings The term cost savings means reductions to budget lines or funded programs resulting from a new policy, process, or activity with no adverse impact on mission. (5) End user The term end user means the internal stakeholder that uses the product or service procured. (6) Head of contracting activity The term head of contracting activity has the meaning given the term head of the contracting activity in section 2.101 of the Federal Acquisition Regulation. (7) Military department The term military department has the meaning given the term in section 101(a)(8) of title 10, United States Code. (8) Multiple award contract The term multiple award contract means— (A) a contract that is entered into by the Administrator of General Services under the multiple award schedule program referred to in section 3012(3) of title 10, United States Code; or (B) a multiple award task order contract that is entered into under the authority of title 10 or title 41, United States Code. (9) Senior procurement executive The term senior procurement executive has the meaning given the term in section 1702(c) of title 41, United States Code. (10) Transactional data The term transactional data refers to order details, including unit price, quantity, and line item descriptions. 3. Pilot program to improve contracting outcomes (a) In general Not later than 180 days after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall initiate a pilot program to improve contracting outcomes. (b) Purpose The purpose of the pilot program is to improve the effectiveness and efficiency of agency operations and to cut costs to the Federal Government by identifying and assessing innovative approaches for establishing and using outcome-oriented contracting metrics, and the potential to establish and use outcome-oriented contracting metrics at each Chief Financial Officer Act Agency and military department. (c) Key elements The pilot program initiated pursuant to subsection (a) shall— (1) comprise no less than three Chief Financial Officer Act Agencies, and at least one military department; (2) span a period of two years; (3) demonstrate how senior procurement executives can establish quantitative outcome-oriented contracting metrics and corresponding goals— (A) expressed on an annual basis; (B) for each Head of Contracting Activity; and (C) representing, at a minimum— (i) cost avoidance or cost savings; (ii) timeliness of deliveries in terms of end users’ receipt of a product or the start of a service; (iii) quality of deliverables in terms of end users’ satisfaction with a delivered product or provided service; and (iv) end user satisfaction with the degree and nature of collaboration between the end user and the relevant procurement officials; (4) illustrate how senior procurement executives can use the quantitative outcome-oriented contracting metrics and corresponding goals required under paragraph (3) to— (A) assess the performance of procurement organizations on an ongoing basis; (B) identify and share leading practices that Heads of Contracting Activity and other procurement officials can use to achieve desired contracting outcomes; (C) evaluate key factors affecting contracting outcomes, including— (i) collaboration with key stakeholders, particularly requirements generators, pre- and post-contract award; and (ii) contractor performance; and (5) assess the benefits and drawbacks of leveraging various data sources when establishing and using the outcome-oriented contracting metrics and corresponding goals required under paragraphs (3) and (4), respectively, including, at a minimum— (A) data stored in the Contractor Performance Assessment Reporting System; and (B) transactional data for orders against multiple award contracts. (d) Rule of construction Nothing in this section shall be construed as precluding senior procurement executives from establishing or maintaining additional performance metrics and goals, in particular metrics and goals for small business utilization. 4. Office of Federal Procurement Policy reporting (a) Interim report (1) In general Not later than 2 years after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall submit to the appropriate congressional committees and the Comptroller General of the United States an interim report on the pilot program required under section 3. (2) Purpose The purpose of the interim report shall be to identify how each of the senior procurement executives participating in the pilot program are meeting the requirements under section 3(c). (3) Key elements The interim report shall identify, at a minimum— (A) each quantitative outcome-oriented contracting goal established pursuant to section 3(c)(3), including— (i) a precise definition that includes the methodology and data used to measure actual performance against the goal; and (ii) the rationale for the goal; (B) illustrative examples of how each senior procurement executive has used quantitative outcome-oriented contracting metrics and corresponding goals to identify and share leading practices and key factors affecting contracting outcomes pursuant to section 3(c)(4); and (C) data improvement initiatives, informed by the assessment required under section 3(c)(5), including a plan of action and milestones to improve the reliability of relevant data, including at a minimum— (i) data stored in the Contractor Performance Assessment Reporting System; and (ii) transactional data for orders against multiple award contracts. (b) Final report (1) In general Not later than three years after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall submit to the appropriate congressional committees and the Comptroller General of the United States a final report on the pilot program required under section 3. (2) Purpose The purpose of the final report shall be to identify how each of the senior procurement executives participating in the pilot program met the requirements under section 3(c), and assess the potential to establish and use outcome-oriented contracting metrics and goals at each Chief Financial Officer Act Agency and military department in the future. (3) Key elements The final report shall identify, at a minimum— (A) any modifications to the outcome-oriented metrics and corresponding goals established pursuant to section 3(c)(3) since the issuance of the interim report required under subsection (a), including— (i) modifications to the definitions for the metrics and goals; and (ii) the rationale for any modifications; (B) examples of how each senior procurement executive has used outcome-oriented contracting metrics and corresponding goals to identify and share leading practices and key factors affecting contracting outcomes pursuant to section 3(c)(4) during the preceding year; (C) a description of progress against the plan of action and milestones required under subsection (a)(3)(C), including qualitative descriptions of significant challenges and limitations hindering data improvement efforts; and (D) observations from the Administrator for Federal Procurement Policy regarding the respective advantages and disadvantages of various approaches for establishing and using outcome-oriented contracting metrics and goals. 5. Government accountability office reporting Not later than 180 days after receiving the interim and final reports required under section 4, the Comptroller General of the United States shall provide the Comptroller General’s independent observations on the report to the appropriate congressional committees. 6. Sunset This Act shall cease to have effect on the date that is 3 years and 6 months after the date of enactment of this Act.

December 9, 2024 Reported with an amendment