Small Business and Federal Procurement Competition Enhancement Act of 1984
PL 98-577 (H.R.4209), enacted 10/30/1984

98 STAT. 3066 
PUBLIC LAW 98-577—OCT. 30, 1984 
Public Law 98-577 
98th Congress 
Oct. 30, 1984 
[H.R. 4209] 
Small Business 
and Federal 
Procurement 
Competition 
Enhancement 
Act of 1984. 
41 u s e 251 note. 
Contracts, U.S. 
An Act 
41 u s e 251 note. 
To amend the Small Business Act, the Federal Property and Administrative Services 
Act of 1949, and the Office of Federal Procurement Policy Act to enhance competi-
tion in Government procurement, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SHORT TITLE; TABLE OF CONTENTS 
SECTION 1. This Act, together with the following table of contents, 
may be cited as the "Small Business and Federal Procurement 
Competition Enhancement Act of 1984". 
TABLE OF CONTENTS 
TITLE I—PURPOSES AND DEFINITIONS 
Sec. 101. Purposes. 
Sec. 102. Definitions. 
TITLE II—AMENDMENTS TO THE FEDERAL PROPERTY AND 
ADMINISTRATIVE SERVICES ACT OF 1949 
Sec. 201. Planning for future competition. 
Sec. 202. Encouraging new competitors. 
Sec. 203. Validation of proprietary data restrictions. 
Sec. 204. Commercial pricing for supplies. 
Sec. 205. Economic order quantities. 
Sec. 206. Prohibition of contractors limiting subcontractor sales directly to the 
United States. 
Sec. 207. Clerical amendment. 
TITLE III—AMENDMENTS TO THE OFFICE OF FEDERAL PROCUREMENT 
POLICY ACT 
Sec. 301. Technical data management. 
Sec. 302. Publication of proposed regulations. 
Sec. 303. Procurement notices. 
TITLE IV—AMENDMENTS TO THE SMALL BUSINESS ACT 
Sec. 401. Certificate of competency. 
Sec. 402. Small business subcontracting policy statements. 
Sec. 403. Breakout procurement center representatives. 
Sec. 404. Procurement notices. 
TITLE V—OTHER PROCUREMENT PROVISIONS 
Sec. 501. Regulations on overhead. 
Sec. 502. Personnel evaluations. 
Sec. 503. Report on prime contractors qualifying additional sources. 
Sec. 504. Technical amendments to Competition in Contracting Act of 1984. 
Sec. 505. Repeal. 
PURPOSES 
SEC. 101. The purposes of this Act are to— 
(1) eliminate procurement procedures and practices that un-
necessarily inhibit full and open competition for contracts; 
PUBLIC LAW 98-577—OCT. 30, 1984 
98 STAT. 3067 
(2) promote the use of contracting opportunities as a means to 
expand the industrial base of the United States in order to 
ensure adequate responsive capability of the economy to the 
increased demands of the Government in times of national 
emergency; and 
(3) foster opportunities for the increased participation in the 
Disadvantaged 
competitive procurement process of small business concerns and 
persons, 
small business concerns owned and controlled by socially and 
economically disadvantaged individuals. 
DEFINITIONS 
SEC. 102. Section 4 of the Office of Federal Policy Procurement Act Ante, p. 1195. 
is amended— 
(1) by striking out "and" at the end of paragraph (7); 
(2) by striking out the period at the end of paragraph (8) and 
inserting in lieu thereof a semicolon; and 
(3) by adding at the end thereof the following new paragraphs: 
"(9) the term 'technical data' means recorded information 
(regardless of the jbrm or method of the recording) of a scientific 
or technical nature (including computer software documenta-
tion) relating to supplies procured by an agency. Such term does 
not include computer software or financial, administrative, cost 
or pricing, or management data or other information incidental 
to contract administration; 
"(10)(A) the term 'major system' means a combination of 
elements that will function together to produce the capabilities 
required to fulfill a mission need, which elements may include 
hardware, equipment, software or any combination thereof, but 
excludes construction or other improvements to real property; 
and 
"(B) a system shall be considered a major system if (i) the 
Department of Defense is responsible for the system and the 
total expenditures for research, development, test and evalua-
tion for the system are estimated to be more than $75,000,000 
(based on fiscal year 1980 constant dollars) or the eventual total 
expenditure for procurement of more than $300,000,000 (based 
on fiscal year 1980 constant dollars); (ii) a civilian agency is 
responsible for the system and total expenditures for the system 
are estimated to exceed $750,000 (based on fiscal year 1980 
constant dollars) or the dollar threshold for a 'major system' 
established by the agency pursuant to Office of Management 
and Budget (0MB) Circular A-109, entitled 'Major Systems 
Acquisitions', whichever is greater; or (iii) the system is desig-
nated a 'major system' by the head of the agency responsible for 
the system; and 
"(11) the term 'item', 'item of supply', or 'supplies' means any 
individual part, component, subassembly, assembly, or subsys-
tem integral to a major system, and other property which may 
be replaced during the service life of the system, and includes 
spare parts and replenishment spare parts, but does not include 
packaging or labeling associated with shipment or identification 
of an 'item'.". 
98 STAT. 3068 
PUBLIC LAW 98-577—OCT. 30, 1984 
TITLE II—AMENDMENTS TO THE FEDERAL PROPERTY AND 
ADMINISTRATIVE SERVICES ACT OF 1949 
PLANNING FOR FUTURE COMPETITION 
Ante, p. 1179. 
SEC. 201. (a) Section 303B of the Federal Property and Administra-
tive Services Act of 1949 (hereafter in this title referred to as "the 
Act") is amended by adding at the end thereof the following new 
subsection: 
"(fKlXA) In preparing a solicitation for the award of a develop-
ment contract for a major system, the head of an agency shall 
consider requiring in the solicitation that an offeror include in its 
Science and 
offer proposals described in subparagraph (B). In determining 
technology. 
whether to require such proposals, the head of the agency shall give 
due consideration to the purposes for which the system is being 
procured and the technology necessary to meet the system's re-
quired capabilities. If such proposals are required, the head of the 
agency shall consider them in evaluating the offeror's price. 
"(B) The proposals that the head of an agency is to consider 
requiring in a solicitation for the award of a development contract 
are the following: 
"(i) Proposals to incorporate in the design of the major system 
items which are currently available within the supply system of 
the Federal agency responsible for the major system, available 
elsewhere in the national supply system, or commercially avail-
able from more than one source. 
"(ii) With respect to items that are likely to be required in 
substantial quantities during the system's service life, proposals 
to incorporate in the design of the major system items which 
the United States will be able to acquire competitively in the 
future. 
"(2XA) In preparing a solicitation for the award of a production 
contract for a major system, the head of an agency shall consider 
requiring in the solicitation that an offeror include in its offer 
proposals described in subparagraph (B). In determining whether to 
require such proposals, the head of the agency shall give due 
consideration to the purposes for which the system is being procured 
and the technology necessary to meet the system's required capabili-
ties. If such proposals are required, the head of the agency shall 
consider them in evaluating the offeror's price. 
"(B) The proposals that the head of an agency is to consider 
requiring in a solicitation for the award of a production contract are 
proposals identifjdng opportunities to ensure that the United States 
will be able to obtein on a competitive basis items procured in 
connection with the system that are likely to be reprocured in 
substantial quantities during the service life of the system. Pro-
posals submitted in response to such requirement may include the 
following: 
"(i) Proposals to provide to the United States the right to use 
technical data to be provided under the contract for competitive 
reprocurement of the item, together with the cost to the United 
States, if any, of acquiring such technical data and the right to 
use such data. 
"(ii) Proposals for the qualification or development of multi-
ple sources of supply for the item. 
"(3) If the head of an agency is making a noncompetitive award of 
a development contract or a production contract for a major system. 
PUBLIC LAW 98-577—OCT. 30, 1984 
98 STAT. 3069 
the factors specified in paragraphs (1) and (2) to be considered in 
evaluating an offer for a contract may be considered as objectives in 
negotiating the contract to be awarded.". 
(b) The amendment made by subsection (a) shall apply with 
Effective date. 
respect to any solicitation issued more than 180 days after the date 
41 use 253b 
of the enactment of this Act. 
^°^^-
ENCOURAGING NEW COMPETITORS 
SEC. 202. (a) Title III of the Act is amended by inserting after 
section 308C the following new section: 
"ENCOURAGEMENT OF NEW COMPETITION 
"SEC. 303D. (a) In this section, 'qualification requirement' means a 
41 USC 253c. 
requirement for testing or other quality assurance demonstration 
that must be completed by an offeror before award of a contract. 
"(b) Except as provided in subsection (c), the head of the agency 
shall, before enforcing any qualification requirement— 
"(1) prepare a written justification stating the necessity for 
establishing the qualification requirement and specify why the 
qualification requirement must be demonstrated before contract 
award; 
"(2) specify in writing and make available to a potential 
offeror upon request all requirements which a prospective of-
feror, or its product, must satisfy in order to become qualified, 
such requirements to be limited to those least restrictive to 
meet the purposes necessitating the establishment of the quali-
fication requirement; 
"(3) specify an estimate of the costs of testing and evaluation 
likely to be incurred by a potential offeror in order to become 
qualified; 
"(4) ensure that a potential offeror is provided, upon request, 
a prompt opportunity to demonstrate at its own expense (except 
as provided in subsection (d)) its ability to meet the standards 
specified for qualification using qualified personnel and facili-
ties of the agency concerned or of another agency obtained 
through interagency agreement, or under contract, or other 
methods approved by the agency (including use of approved 
testing and evaluation services not provided under contract to 
the agency); 
"(5) if testing and evaluation services are provided under 
contract to the agency for the purposes of clause (4), provide to 
the extent possible that such services be provided by a contrac-
tor who is not expected to benefit from an absence of additional 
qualified sources and who shall be required in such contract to 
adhere to any restriction on technical data asserted by the 
potential offeror seeking qualification; and 
"(6) ensure that a potential offeror seeking qualification is 
promptly informed as to whether qualification is attained and, 
in the event qualification is not attained, is promptly furnished 
specific information why qualification was not attained. 
"(c)(1) Subsection O
t
>
) of this section does not apply with respect to 
a qualification requirement established by statute prior to the date 
of enactment of this section. 
"(2) Except as provided in paragraph (3), if it is unreasonable to 
specify the standards for qualification which a prospective offeror or 
98 STAT. 3070 
PUBLIC LAW 98-577—OCT. 30, 1984 
its product must satisfy, a determination to that effect shall be 
submitted to the advocate for competition of the procuring activity 
responsible for the purchase of the item subject to the qualification 
requirement. After considering any comments of the advocate for 
competition reviewing such determination, the head of the procur-
ing activity may waive the requirements of paragraphs (2) through 
(5) of subsection (b) for up to two years with respect to the item 
subject to the qualification requirement. 
"(3) The waiver authority contained in paragraph (2) shall not 
apply with respect to any qualified products list. 
"(4) A potential offeror may not be denied the opportunity to 
submit and have considered an offer for a contract solely because 
the potential offeror has not been identified as meeting a qualifica-
tion requirement, if the potential offeror can demonstrate to the 
satisfaction of the contracting officer that the potential offeror or its 
product meets the standards established for qualification or can 
meet such standards before the date specified for award of the 
contract. 
"(5) Nothing contained in this subsection requires the referral of 
an offer to the Small Business Administration pursuant to section 
8(b)(7) of the Small Business Act if the basis for the referral is a 
challenge by the offeror to either the validity of the qualification 
requirement or the offeror's compliance with such requirement. 
' (6) The head of an agency need not delay a proposed procurement 
in order to comply with subsection (b) or in order to provide a 
potential offeror with an opportunity to demonstrate its ability to 
meet the standards specified for qualification. 
Public 
"(d)(1) If the number of qualified sources or qualified products 
information. 
available to Compete actively for an anticipated future requirement 
is fewer than two actual manufacturers or the products of two 
actual manufacturers, respectively, the head of the agency con-
cerned shall— 
"(A) periodically publish notice in the Commerce Business 
Daily soliciting additional sources or products to seek qualifica-
tion, unless the contracting officer determines that such publi-
cation would compromise national security; and 
"(B) bear the cost of conducting the specified testing and 
evaluation (excluding the costs associated with producing the 
item or establishing the production, quality control, or other 
system to be tested and evaluated) for a small business concern 
or a product manufactured by a small business concern which 
has met the standards specified for qualification and which 
could reasonably be expected to compete for a contract for that 
requirement, but such costs may be borne only if the head of the 
agency determines that such additional qualified sources or 
products are likely to result in cost savings from increased 
competition for future requirements sufficient to offset (within 
a reasonable period of time considering the duration and dollar 
value of anticipated future requirements) the costs incurred by 
the agency. 
"(2) The head of an agency shall require a prospective contractor 
requesting the United States to bear testing and evaluation costs 
under paragraph (1)(B) to certify as to its status as a small business 
15 use 632. 
concern under section 3 of the Small Business Act. 
"(e) Within seven years after the establishment of a qualification 
requirement, the need for such qualification requirement shall be 
examined and the standards of such requirement revalidated in 
PUBLIC LAW 98-577—OCT. 30, 1984 
98 STAT. 3071 
accordance with the requirements of subsection Gs). The preceding 
sentence does not apply in the case of a qualification requirement 
for which a waiver is in effect under subsection (c)(2). 
"(f) Except in an emergency as determined by the head of the 
agency, whenever the head of the agency determines not to enforce 
a qualification requirement for a solicitation, the agency may not 
thereafter enforce that qualification requirement unless the agency 
complies with the requirements of subsection (b).". 
(b) The amendment made by subsection (a) shall apply with 
respect to solicitations issued more than 180 days after the date of 
enactment of this Act. 
Effective date. 
41 u s e 253c 
note. 
VAUDATION OF PROPRIETARY DATA RESTRICTIONS 
SEC. 203. (a) Title III of the Act is amended by inserting after 
section 303D (as added by section 202 of this Act) the following new 
section: 
"VAUDATION OF PROPRIETARY DATA RESTRICTIONS 
"SEC. 303E. (a) A contract for property or services entered into by 
an executive agency which provides for the delivery of technical 
data, shall provide that— 
"(1) a contractor or subcontractor at any tier shall be pre-
pared to furnish to the contracting officer a written justification 
for any restriction asserted by the contractor or subcontractor 
on the right of the United States to use such technical data; and 
"(2) the contracting officer may review the validity of any 
restriction asserted by the contractor or by a subcontractor 
under the contract on the right of the United States to use 
technical data furnished to the United States under the con-
tract if the contracting officer determines that reasonable 
grounds exist to question the current validity of the asserted 
restriction and that the continued adherence to the asserted 
restriction by the United States would make it impracticable to 
procure the item competitively at a later time. 
"(b) If after such review the contracting officer determines that a 
challenge to the asserted restriction is warranted, the contracting 
officer shall provide written notice to the contractor or subcontrac-
tor asserting the restriction. Such notice shall state— 
"(1) the grounds for challenging the asserted restriction; and 
"(2) the requirement for a response within 60 days justifying 
the current validity of the asserted restriction. 
"(c) If a contractor or subcontractor asserting a restriction subject 
to this section submits to the contracting officer a written request, 
showing the need for additional time to comply with the require-
ment to justify the current validity of the asserted restriction, 
additional time to adequately permit the submission of such justifi-
cation shall be provided by the contracting officer as appropriate. If 
a party asserting a restriction receives notices of challenges to 
restrictions on technical data from more than one contracting offi-
cer, and notifies each contracting officer of the existence of more 
than one challenge, the contracting officer initiating the first in 
time challenge, after consultation with the party asserting the 
restriction and the other contracting officers, shall formulate a 
schedule of responses to each of the challenges that will afford the 
party asserting the restriction with an equitable opportunity to 
respond to each such challenge. 
Science and 
technology. 
41 u s e 253d. 
98 STAT. 3072 
PUBLIC LAW 98-577—OCT. 30, 1984 
"(d)(1) Upon a failure by the contractor or subcontractor to submit 
any response under subsection (b), the contracting officer shall issue 
a decision pertaining to the validity of the asserted restriction. 
"(2) If a justification is submitted in response to the notice pro-
vided pursuant to subsection (b), a contracting officer shall within 60 
days of receipt of any justification submitted, issue a decision or 
notify the party asserting the restriction of the time within which a 
decision will be issued. 
"(e) If a claim pertaining to the validity of the asserted restriction 
is submitted in writing to a contracting officer by a contractor or 
subcontractor at any tier, such claim shall be considered a claim 
within the meaning of the Contract Disputes Act of 1978 (41 U.S.C. 
601 et seq.). 
"(f)(1) If, upon final disposition, the contracting officer's challenge 
to the restriction on the right of the United States to use such 
technical data is sustained— 
"(A) the restriction on the right of the United States to use 
the technical data shall be cancelled; and 
"(B) if the asserted restriction is found not to be substantially 
justified, the contractor or subcontractor, as appropriate, shall 
be liable to the United States for payment of the cost to the 
United States of reviewing the asserted restriction and the fees 
and other expenses (as defined in section 2412(d)(2)(A) of title 28) 
incurred by the United States in challenging the asserted re-
striction, unless special circumstances would make such pay-
ment unjust. 
"(2) If, upon final disposition, the contracting officer's challenge to 
the restriction on the right of the United States to use such techni-
cal data is not sustained— 
"(A) the United States shall continue to be bound by the 
restriction; and 
"(B) the United States shall be liable for payment to the party 
asserting the restriction for fees and other expenses (as defined 
in section 2412(d)(2)(A) of title 28) incurred by the party assert-
ing the restriction in defending the asserted restriction if the 
challenge by the United States is found not to be made in good 
faith.". 
Effective date. 
Ot)) The amendment made by subsection (a) shall apply with 
41 use 253d 
respect to solicitations issued more than 60 days after the date of 
^°^^- 
the enactment of this Act. 
COMMERCIAL PRICING FOR SUPPLIES 
SEC. 204. (a) Title III of the Act is further amended by inserting 
after section 308E (as added by section 203 of this Act) the following 
new section: 
"COMMERCIAL PRICING FOR SUPPUES 
41 use 253e. 
"SEC. 303F. (a) Except in the case of an offer submitted with a 
written statement under subsection (b)(2) and except as provided in 
subsection (c), a contract entered into using other than competitive 
procedures by an executive agency for the purchase of items that 
are offered for sale to the public may not result in a price to the 
United States that exceeds the lowest price at which such items are 
sold by the contractor to the public. 
"(b) A person who submits an offer to an executive agency for the 
supply of items that it offers for sale to the public (1) shall certify in 
PUBLIC LAW 98-577—OCT. 30, 1984 
98 STAT. 3073 
the offer that the price offered is not more than its lowest commer-
cial price for the items, or (2) shall submit with the offer a written 
statement specifying the amount of the difference between its lowest 
commercial price for the items and the price offered, and providing 
a justification for that difference. 
"(c) Subsections (a) and (b) do not apply to a contract if the 
contracting officer determines that the use of the price otherwise 
required by subsection (a) for such contract is not appropriate 
because of— 
"(1) national security considerations; or 
"(2) differences in quantities, quality, delivery, or other terms 
and conditions of the contract from commercial contract 
terms.". 
(b) The amendment made by subsection (a) shall take effect at the 
end of the 180-day period beginning on the date of the enactment of 
this Act. 
ECONOMIC ORDER QUANTITIES 
SEC. 205. (a) Title III of the Act is further amended by inserting 
after section 303F (as added by section 204 of this Act) the following 
new section: 
"ECONOMIC ORDER QUANTITIES 
"SEC. 303G. (a) Each executive agency shall procure supplies in 
such quantity as (A) will result in the total cost and unit cost most 
advantageous to the United States, where practicable, and (B) does 
not exceed the quantity reasonably expected to be required by the 
agency. 
"(b) Each solicitation for a contract for supplies shall, if practica-
ble, include a provision inviting each offeror responding to the 
solicitation to state an opinion on whether the quantity of the 
supplies proposed to be procured is economically advantageous to 
the United States and, if applicable, to recommend a quantity or 
quantities which would be more economically advantageous to the 
United States. Each such recommendation shall include a quotation 
of the total price and the unit price for supplies procured in each 
recommended quantity.". 
O
t
)
) The amendment made by subsection (a) shall take effect at the 
end of the 180-day period beginning on the date of the enactment of 
this Act. 
Effective date. 
41 u s e 253e 
note. 
41 u s e 253f. 
Effective date. 
41 u s e 253f 
note. 
PROHIBITION OF CONTRACTORS LIMITING SUBCONTRACTOR SALES 
DIRECTLY TO THE UNITED STATES 
SEC. 206. (a) Title III of the Act is further amended by inserting 
after section 303G (as added by section 205 of this Act) the following 
new section: 
PROHIBITION OF CONTRACTORS LIMITING SUBCONTRACTOR SALES 
DIRECTLY TO THE UNITED STATES 
"SEC 303H. (a) Each contract for the purchase of property or 
services made by an executive agency shall provide that the contrac-
tor will not— 
"(1) enter into any agreement with a subcontractor under the 
contract that has the effect of unreasonably restricting sales by 
the subcontractor directly to the United States of any item or 
41 u s e 253g. 
98 STAT. 3074 
PUBLIC LAW 98-577—OCT. 30, 1984 
Effective date. 
41 u s e 253g 
note. 
process (including computer software) made or furnished by the 
subcontractor under the contract (or any follow-on production 
contract); or 
"(2) otherwise act to restrict unreasonably the ability of a 
subcontractor to make sales to the United States described in 
clause (1). 
"(b) This section does not prohibit a contractor from asserting 
rights it otherwise has under law.". 
(b) The amendment made by subsection (a) shall. apply with 
respect to solicitations made more than 180 days after the date of 
the enactment of this Act. 
CLERICAL AMENDMENT 
SEC. 207. The table of contents of the Act is amended by inserting 
after the item relating to section 303C the following new items: 
"Sec. 303D. Encouragement of new competition. 
"Sec. 303E. Validation of proprietary data restrictions. 
"Sec. 303F. Commercial pricing for supplies. 
"Sec. 303G. Economic order quantities 
"Sec. 303H. Prohibition of contractors limiting subcontractor sales directly to the 
United States.". 
TITLE III—AMENDMENTS TO THE OFFICE OF FEDERAL 
PROCUREMENT POLICY ACT 
Ante, p. 1198. 
TECHNICAL DATA MANAGEMENT 
SEC. 301. (a) The Office of Federal Procurement Policy Act (hereaf-
ter in this title referred to as "the Act") is amended by redesignat-
ing section 21 as section 23 and by inserting after section 20 the 
following new section: 
Science and 
technology. 
41 u s e 418a. 
eopyrights. 
41 u s e 251. 
RIGHTS IN TECHNICAL DATA 
"SEC. 21. (a) The legitimate proprietary interest of the United 
States and of a contractor in technical or other data shall be defined 
in regulations prescribed as part of the single system of Govern-
ment-wide procurement regulations as defined in section 4(4) of this 
Act. Such regulations may not impair any right of the United States 
or of any contractor with respect to patents or copyrights or any 
other right in technical data otherwise established by law. Such 
regulations shall provide, with respect to executive agencies that are 
subject to the provisions of title III of the Federal Property and 
Administrative Services Act of 1949, that the United States may not 
require persons who have developed products or processes offered or 
to be offered for sale to the public as a condition for the procurement 
of such products or processes by the United States, to provide to the 
United States technical data relating to the design, development, or 
manufacture of such products or processes (except for such data as 
may be necessary for the United States to operate and maintain the 
product or use the process if obtained by the United States as an 
element of performance under the contract). 
"(b)(1) Except as otherwise expressly provided by Federal statute, 
the regulations prescribed pursuant to subsection (a) shall provide, 
with respect to executive agencies that are subject to the provisions 
of title III of the Federal Property and Administrative Services Act 
of 1949, that the United States shall have unlimited rights in 
PUBLIC LAW 98-577—OCT. 30, 1984 
98 STAT. 3075 
technical data developed exclusively with Federal funds if delivery 
of such data— 
"(A) was required as an element of performance under a 
contract; and 
"(B) is needed to ensure the competitive acquisition of sup-
plies or services that will be required in substantial quantities 
in the future. 
"(2) Except as otherwise expressly provided by Federal statute, 
the regulations prescribed pursuant to subsection (a) shall provide, 
with respect to executive agencies that are subject to the provisions 
of title III of the Federal Property and Administrative Services Act 
of 1949, that the United States (and each agency thereof) shall have 
41 USC 251. 
an unrestricted, royalty-free right to use, or to have its contractors 
use, for governmental purposes (excluding publication outside the 
Government) technical data developed exclusively with Federal 
funds. 
"(8) The requirements of paragraphs (1) and (2) shall be in addition 
to and not in lieu of any other rights that the United States may 
have pursuant to law. 
"(c) The following factors shall be considered in prescribing regu-
lations pursuant to subsection (a): 
"(1) Whether the technical data was developed— 
"(A) exclusively with Federal funds; 
"(B) exclusively at private expense; or 
"(C) in part with Federal funds and in part at private 
expense. 
"(2) The statement of congressional policy and objectives in 
section 200 of title 35, the statement of purposes in section 2(b) 
of the Small Business Innovation Development Act of 1982 
(Public Law 97-219; 15 U.S.C. 638 note), and the declaration of 
policy in section 2 of the Small Business Act (15 U.S.C. 631). 
"(3) The interest of the United States in increasing competi-
tion and lowering costs by developing and locating alternative 
sources of supply and manufacture. 
"(d) Regulations prescribed under subsection (a) shall require that 
Regulations. 
a contract for property or services entered into by an executive 
agency contain appropriate provisions relating to technical data, 
including provisions— 
"(1) defining the respective rights of the United States and 
the contractor or subcontractor (at any tier) regarding any 
technical data to be delivered under the contract; 
"(2) specifying the technical data, if any, to be delivered under 
the contract and delivery schedules for such delivery; 
"(3) establishing or referencing procedures for determining 
the acceptability of technical data to be delivered under the 
contract; 
"(4) establishing separate contract line items for the technical 
data, if any, to be delivered under the contract; 
"(5) to the maximum practicable extent, identifying, in ad-
vance of delivery, technical data which is to be delivered with 
restrictions on the right of the United States to use such data; 
"(6) requiring the contractor to revise any technical data 
delivered under the contract to reflect engineering design 
changes made during the performance of the contract and 
affecting the form, fit, and function of the items specified in the 
contract and to deliver such revised technical data to an agency 
within a time specified in the contract; 
98 STAT. 3076 
PUBLIC LAW 98-577—OCT. 30, 1984 
Effective date. 
41 u s e 418a 
note. 
Report. 
"(7) requiring the contractor to furnish written assurance at 
the time the technical data is delivered or is made available 
that the technical data is complete and accurate and satisfies 
the requirements of the contract concerning technical data; 
"(8) establishing remedies to be available to the United States 
when technical data required to be delivered or made available 
under the contract is found to be incomplete or inadequate or to 
not satisfy the requirements of the contract concerning techni-
cal data; and 
"(9) authorizing the head of the agency to withhold payments 
under the contract (or exercise such other remedies as the head 
of the agency considers appropriate) during any period if the 
contractor does not meet the requirements of the contract 
pertaining to the delivery of technical data.". 
(b) Section 2320(a) of title 10, United States Code, is amended by 
striking out "in regulations prescribed as part" and inserting in lieu 
thereof "in regulations of the Department of Defense prescribed as 
part". 
(c) The amendment made by subsection (a) shall take effect on the 
date of enactment of this Act. The regulations required by such 
amendment shall be issued not later than July 1,1985. 
(d) Within 60 days after the date the regulations required by the 
amendment made by subsection (a) are prescribed, the Secretary of 
Defense, the Administrator of General Services, and the Adminis-
trator of the National Aeronautics and Space Administration shall 
submit to Congress a joint report describing in detail how those 
regulations give consideration to the factors specified for consider-
ation in that section. 
Federal 
Register, 
publication. 
41 u s e 418b. 
PUBLICATION OF PROPOSED REGULATIONS 
SEC. 302. (a) The Act is further amended by inserting after section 
21 (as added by section 301 of this Act) the following new section: 
"PUBUCATION OF PROPOSED REGULATIONS 
"SEC. 22. (a) Except as provided in subsection (d), no procurement 
policy, regulation, procedure, or form (including amendments or 
modifications thereto) relating to the expenditure of appropriated 
funds that has (1) a significant effect beyond the internal operating 
procedures of the agency issuing the procurement policy, regulation, 
procedure or form, or (2) a significant cost or administrative impact 
on contractors or offerors, may take effect until 30 days after the 
procurement policy, regulation, procedure, or form is published for 
public comment in the Federal Register pursuant to subsection Ot)). 
"(b) Subject to subsection (c), the head of the agency shall cause to 
be published in the Federal Register a notice of the proposed 
procurement policy, regulation, procedure, or form and provide for a 
public comment period for receiving and considering the views of all 
interested parties on such proposal. The length of such comment 
period may not be less than 30 days. 
"(c) Any notice of a proposed procurement policy, regulation, 
procedure, or form prepared for publication in the Federal Register 
shall include— 
"(1) the text of the proposal or, if it is impracticable to publish 
the full text of the proposal, a summary of the proposal and a 
statement specifying the name, address, and telephone number 
PUBLIC LAW 98-577—OCT. 30, 1984 
98 STAT. 3077 
of the officer or employee of the executive agency from whom 
the full text may be obtained; and 
"(2) a request for interested parties to submit comments on 
the proposal and shall include the name and address of the 
officer or employee of the Government designated to receive 
such comments. 
"(d)(1) The requirements of subsections (a) and (b) may be waived 
by the officer authorized to issue a procurement policy, regulation, 
procedure, or form if urgent and compelling circumstances make 
compliance with such requirements impracticable. 
"(2) A procurement policy, regulation, procedure, or form with 
respect to which the requirements of subsections (a) and Ot)) are 
waived under paragraph (1) shall be effective on a temporary basis 
if— 
"(A) a notice of such procurement policy, regulation, proce-
dure, or form is published in the Federal Register and includes 
a statement that the procurement policy, regulation, procedure, 
or form is temporary; and 
"(B) provision is made for a public comment period of 30 days 
beginning on the date on which the notice is published. 
After considering the comments received, the head of the agency 
waiving the requirements of subsections (a) and (b) under paragraph 
(1) may issue the final procurement policy, regulation, procedure, or 
form.". 
(b) The procedures required by the amendment made by subsec-
tion (a) shall apply with respect to procurement policies, regulations, 
procedures, or forms that an agency issues in final form on or after 
the date which is 30 days after the date of enactment of this Act. 
(c)(1) Section 2303a of title 10, United States Code, is repealed. 
(2) The table of sections of chapter 137 of such title is amended by 
striking out the item pertaining to section 2303a. 
Effective date. 
41 u s e 418b 
note. 
Ante, p. 2590. 
PROCUREMENT NOTICES 
SEC. 303. (a) Section 18 of the Office of Federal Procurement Policy 
Act is amended to read as follows: 
PROCUREMENT NOTICE 
"SEC. 18. (aXD Except as provided in subsection (c)— 
"(A) an executive agency intending to— 
"(i) solicit bids or proposals for a contract for property or 
services for a price expected to exceed $10,000; or 
"(ii) place an order, expected to exceed $10,000, under a 
basic agreement, basic ordering agreement, or similar ar-
rangement, 
shall furnish for publication by the Secretary of Commerce a 
notice described in subsection Ot)); and 
"(B) an executive agency awarding a contract for property or 
services for a price exceeding $25,000, or placing an order 
referred to in clause (AKii) exceeding $25,000, shall furnish for 
publication by the Secretary of Commerce a notice announcing 
the award or order if there is likely to be any subcontract under 
such contract or order. 
"(2) The Secretary of Commerce shall publish promptly in the 
Commerce Business Daily each notice required by paragraph (1). 
41 u s e 416. 
Public 
information. 
3 1 - 1 9 4 
0 
16 - 
23 
QL.3 
P a r t 3 
98 STAT. 3078 
PUBLIC LAW 98-577—OCT. 30, 1984 
"(3) Whenever an executive agency is required by paragraph (IXA) 
to furnish a notice to the Secretary of Commerce, such executive 
agency may not— 
"(A) issue the soUcitation earlier than 15 days after the date 
on which the notice is pubUshed by the Secretary of Commerce; 
or 
"(B) establish a deadline for the submission of all bids or 
proposals in response to the notice required by paragraph (IXA) 
t h a t -
'll) in the case of an order under a basic agreement, basic 
ordering agreement, or similar arrangement, is earlier than 
the date 30 days after the date the notice required by 
paragraph (IXAXii) is published; 
Research and 
"(ii) in the case of a solicitation for research and develop-
development. 
ment, is earlier than the date 45 days after the date the 
notice required by paragraph (IXAXi) is published; or 
"(iii) in any other case, is earlier than the date 30 days 
after the date the solicitation is issued. 
"(b) Each notice of solicitation required by subsection (aXlXA) 
shall include— 
"(1) an accurate description of the property or services to be 
contracted for, which description (A) shall not be unnecessarily 
restrictive of competition, and (B) shall include, as appropriate, 
the agency nomenclature, National Stock Number or other part 
number, and a brief description of the item's form, fit, or 
function, physical dimensions, predominant material of manu-
facture, or similar information that will assist a prospec-
tive contractor to make an informed business judgment as to 
whether a copy of the solicitation should be requested; 
"(2) provisions that— 
"(A) state whether the technical data required to respond 
to the solicitation will not be furnished as part of such 
solicitation, and identify the source in the Government, if 
any, from which the technical data may be obtained; and 
"(B) state whether an offeror, its product, or service must 
meet a qualification requirement in order to be eligible for 
award, and, if so, identify the office from which the qualifi-
cation requirement may be obtained; 
"(3) the name, business address, and telephone number of the 
contracting officer; 
"(4) a statement that all responsible sources may submit a 
bid, proposal, or quotation (as appropriate) which shall be con-
sidered by the agency; and 
"(5) in the case of a procurement using procedures other than 
' 
competitive procedures, a statement of the reason justifying the 
use of such procedures and the identity of the intended source. 
"(cXD A notice is not required under subsection (aXD if^ 
"(A) the notice would disclose the executive agency's needs 
and the disclosure of such needs would compromise the national 
security; 
"(B) the proposed procurement would result from acceptance 
of— 
"(i) any unsolicited proposal that demonstrates a unique 
and innovative research concept and the publication of any 
notice of such unsolicited research proposal would disclose 
the originality of thought or innovativeness of the proposal 
PUBLIC LAW 98-577—OCT. 30, 1984 
98 STAT. 3079 
or would disclose proprietary information associated with 
the proposal; or 
"(ii) a proposal submitted under section 9 of the Small 
Business Act; 
"(C) the procurement is made against an order placed under a 
requirements contract; 
"(D) the procurement is made for perishable subsistence sup-
plies; or 
"(E) the procurement is for utility services, other than tele-
communication services, and only one source is available. 
"(2) The requirements of subsection (a)(lXA) do not apply to any 
procurement under conditions described in paragraph (2), (3), (4), (5), 
or (7) of section 303(c) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253(c)) or paragraph (2), (3), (4), (5), or 
(7) of section 2304(c) of title 10, United States Code. 
"(3) The requirements of subsection (a)(lXA) shall not apply in the 
case of any procurement for which the head of the executive agency 
makes a determination in writing, after consultation with the 
Administrator for Federal Procurement Policy and the Administra-
tor of the Small Business Administration, that it is not appropriate 
or reasonable to publish a notice before issuing a solicitation. 
"(d) An executive agency shall make available to any business 
concern, or the authorized representative of such concern, the com-
plete solicitation package for any on-going procurement announced 
pursuant to a notice under subsection (e). An executive agency may 
require the payment of a fee, not exceeding the actual cost of 
duplication, for a copy of such package.". 
(b) The amendment made by subsection (a) shall take effect with 
respect to any solicitation issued after March 31,1985. 
(c) The provisions of the amendment made by subsection (a) of this 
section shall apply to the Tennessee Valley Authority only with 
respect to procurements to be paid from appropriated funds. 
TITLE IV—AMENDMENTS TO THE SMALL BUSINESS ACT 
CERTIFICATE OF COMPETENCY 
SEC. 401. Section 8(bX7XC) of the Small Business Act (15 U.S.C. 
637(bX7XC)) is amended by adding at the end thereof the following: 
"Notwithstanding the first sentence of this subparagraph, the 
Administration may not establish an exemption from referral or 
notification or refuse to accept a referral or notification from a 
Government procurement officer made pursuant to subparagraph 
(A) or (B) of this paragraph, but nothing in this paragraph shall 
require the processing of an application for certification if the small 
business concern to which the referral pertains declines to have the 
application processed.". 
Utilities. 
Public 
information. 
Effective date. 
41 u s e 416 note. 
Tennessee 
Valley 
Authority. 
41 u s e 416 note. 
SMALL BUSINESS SUBCONTRACTING POUCY STATEMENTS 
SEC. 402. (a) Section 8(dXl) of the Small Business Act (15 U.S.C. 
637(dXl)) is amended by striking out the period at the end thereof 
and inserting in lieu thereof the following: ", including contracts 
and subcontracts for subsystems, assemblies, components, and 
related services for major systems. It is further the policy of the 
United States that its prime contractors establish procedures to 
ensure the timely payment of amounts due pursuant to the terms of 
98 STAT. 3080 
PUBLIC LAW 98-577—OCT. 30, 1984 
their subcontracts with small business concerns and small business 
concerns owned and controlled by socially and economically disad-
vantaged individuals.". 
(b) Section 8(d)(3)(A) of the Small Business Act (15 U.S.C. 
637(d)(3)(A)) is amended by striking out the period at the end thereof 
and inserting in lieu thereof the following: ", including contracts 
and subcontracts for subsystems, assemblies, components, and 
Disadvantaged 
related services for major systems. It is further the policy of the 
persons. 
United States that its prime contractors establish procedures to 
ensure the timely payment of amounts due pursuant to the terms of 
their subcontracts with small business concerns and small business 
concerns owned and controlled by socially and economically disad-
vantaged individuals.". 
BREAKOUT 
PROCUREMENT 
CENTER 
REPRESENTATIVES 
SEC. 403. (a) Section 15 of the Small Business Act (15 U.S.C. 644) is 
amended— 
(1) by redesignating subsection (1) as subsection (m); and 
(2) by inserting after subsection (k) the following new subsec-
tion: 
"(1)(1) The Administration shall assign to each major procurement 
center a breakout procurement center representative with such 
assistance as may be appropriate. The breakout procurement center 
representative shall carry out the activities described in paragraph 
(2), and shall be an advocate for the breakout of items for procure-
ment through full and open competition, whenever appropriate, 
while maintaining the integrity of the system in which such items 
are used, and an advocate for the use of full and open competition, 
whenever appropriate, for the procurement of supplies and services 
by such center. Any breakout procurement center representative 
assigned under this subsection shall be in addition to the representa-
tive referred to in subsection (k)(6). 
"(2) In addition to carrying out the responsibilities assigned by the 
Administration, a breakout procurement center representative is 
authorized to— 
"(A) attend any provisioning conference or similar evaluation 
session during which determinations are made as to whether 
requirements are to be procured through other than full and 
open competition and make recommendations with respect to 
such requirements to the members of such conference or 
session; 
"(B) review, at any time, restrictions on competition previ-
ously imposed on items through acquisition method coding or 
similar procedures, and recommend to personnel of the appro-
priate activity the prompt reevaluation of such limitations; 
"(C) review restrictions on competition arising out of restric-
tions on the rights of the United States in technical data, and, 
when appropriate, recommend that personnel of the appropri-
ate activity initiate a review of the validity of such an asserted 
restriction; 
"(D) obtain from any governmental source, and make avail-
able to personnel of the appropriate activity, unrestricted 
technical data necessary for the preparation of a competitive 
solicitation package for any item of supply or service previously 
procured noncompetitively due to the unavailability of such 
unrestricted technical data; 
PUBLIC LAW 98-577—OCT. 30, 1984 
98 STAT. 3081 
"(E) have access to the unclassified procurement records and 
other data of the procurement center; 
"(F) receive unsolicited engineering proposals and, when ap-
propriate (i) conduct a value analysis of such proposal to deter-
mine whether such proposal, if adopted, will result in lower 
costs to the United States without substantially impeding legiti-
mate acquisition objectives and forward to personnel of the 
appropriate activity recommendations with respect to such pro-
posal, or (ii) forward such proposals without analysis to person-
nel of the activity responsible for reviewing such proposals and 
who shall furnish the breakout procurement center representa-
tive with information regarding the disposition of any such 
proposal; and 
"(G) review the systems that account for the acquisition and 
management of technical data within the procurement center to 
assure that such systems provide the maximum availability and 
access to data needed for the preparation of offers to sell to the 
United States those supplies to which such data pertain which 
potential offerors are entitled to receive. 
"(3) A breakout procurement center representative is authorized 
to appeal a failure to act favorably on any recommendation made 
pursuant to paragraph (2). Such appeal shall be in writing, specifi-
cally reciting both the circumstances of the appeal and the basis of 
the recommendation. The appeal shall be decided by a person within 
the employ of the appropriate activity who is at least one 
supervisory level above the person who initially failed to act favor-
ably on the recommendation. Such appeal shall be decided within 30 Effective date. 
calendar days of its receipt. 
"(4) The Administration shall assign and co-locate at least two 
small business technical advisers to each major procurement center 
in addition to such other advisers as may be authorized from time to 
time. The sole duties of such advisers shall be to assist the breakout 
procurement center representative for the center to which such 
advisers are assigned in carrying out the functions described in 
paragraph (2) and the representatives referred to in subsection 
(k)(6). 
"(5)(A) The breakout procurement center representatives and 
technical advisers assigned pursuant to this subsection shall be— 
"(i) full-time employees of the Administration; and 
"(ii) fully qualified, technically trained, and familiar with the 
supplies and services procured by the major procurement center 
to which they are assigned. 
"(B) In addition to the requirements of subparagraph (A), each 
breakout procurement center representative, and at least one tech-
nical adviser assigned to such representative, shall be an accredited 
engineer. 
"(C) The Administration shall establish personnel positions for 
breakout procurement representatives and advisers assigned pursu-
ant to this subsection, which are classified at a grade level of the 
General Schedule sufficient to attract and retain highly qualified 
personnel. 
"(6) For purposes of this subsection, the term 'major procurement 
center' means a procurement center of the Department of Defense 
that awarded contracts for items other than commercial items 
totaling at least $150,000,000 in the preceding fiscal year, and such 
other procurement centers as designated by the Administrator.". 
98 STAT. 3082 
PUBLIC LAW 98-577—OCT. 30, 1984 
15 u s e 644 note. 
Report. 
Report. 
(b)(1) The Administrator of the Small Business Administration 
and the Comptroller General of the United States shall jointly 
establish standards for measuring cost savings achieved through the 
efforts of breakout procurement center representatives and for 
measuring the extent to which competition has been increased as a 
result of such efforts. Thereafter, the Administrator shall annually 
prepare and submit to the Congress a report setting forth— 
(A) the cost savings achieved during the year covered by such 
report through the efforts of breakout procurement center 
representatives; 
(B) an evaluation of the extent to which competition has been 
increased as a result of such efforts; and 
(C) such other information as the Administrator may deem 
appropriate. 
(2) Within 180 days following the submission of the second annual 
report to Congress by the Administrator, the Comptroller General 
shall report to the Congress an evaluation of the Administration's 
adherence to the standards jointly established and the accuracy of 
the information the Administration has submitted to the Congress. 
Effective date. 
Effective date. 
PROCUREMENT NOTICES 
SEC. 404. (a) Section 8 of the Small Business Act (15 U.S.C. 637) is 
amended by striking out subsection (e) and inserting in lieu thereof 
the following new subsections: 
"(e)(1) Except as provided in subsection (g)— 
"(A) an executive agency intending to— 
"(i) solicit bids or proposals for a contract for property or 
services for a price expected to exceed $10,000; or 
"(ii) place an order, expected to exceed $10,000, under 
a basic agreement, basic ordering agreement, or similar 
arrangement, 
shall furnish for publication by the Secretary of Commerce a 
notice described in subsection (b); and 
"(B) an executive agency awarding a contract for property or 
services for a price exceeding $25,000, or placing an order 
referred to in clause (A)(ii) exceeding $25,000, shall furnish for 
publication by the Secretary of Commerce a notice announcing 
the award or order if there is likely to be any subcontract under 
such contract or order. 
"(2) The Secretary of Commerce shall publish promptly in the 
Commerce Business Daily each notice required by paragraph (1). 
"(3) Whenever an executive agency is required by paragraph (1)(A) 
to furnish a notice to the Secretary of Commerce, such executive 
agency may not— 
"(A) issue the solicitation earlier than 15 days after the date 
on which the notice is published by the Secretary of Commerce; 
or 
"(B) establish a deadline for the submission of all bids or 
proposals in response to the notice required by paragraph (1)(A) 
that— 
"(i) in the case of an order under a basic agreement, basic 
ordering agreement, or similar arrangement, is earlier than 
the date 30 days after the date the notice required by 
paragraph (l)(A)(ii) is published; 
PUBLIC LAW 98-577—OCT. 30, 1984 
98 STAT. 3083 
"(ii) in the case of a solicitation for research and develop- 
Research and 
ment, is earlier than the date 45 days after the date the 
development. 
notice required by paragraph (l)(A)(i) is published; or 
"(iii) in any other case, is earlier than the date 30 days 
after the date the solicitation is issued. 
"(f) Each notice of solicitation required by subsection (e)(1)(A) shall 
include— 
"(1) an accurate description of the property or services to be 
contracted for, which description (A) shall not be unnecessarily 
restrictive of competition, and (B) shall include, as appropriate, 
the agency nomenclature. National Stock Number or other part 
number, and a brief description of the item's form, fit, or 
function, physical dimensions, predominant material of manu-
facture, or similar information that will assist a prospec-
tive contractor to make an informed business judgment as to 
whether a copy of the solicitation should be requested; 
"(2) provisions that— 
"(A) state whether the technical data required to respond 
to the solicitation will not be furnished as part of such 
solicitation, and identify the source in the Government, if 
any, from which the technical data may be obtained; and 
"(B) state whether an offeror, its product, or service must 
meet a qualification requirement in order to be eligible for 
award, and, if so, identify the office from which a qualifica-
tion requirement may be obtained; 
"(3) the name, business address, and telephone number of the 
contracting officer; 
"(4) a statement that all responsible sources may submit a 
bid, proposal, or quotation (as appropriate) which shall be con-
sidered by the agency; and 
"(5) in the case of a procurement using procedures other than 
competitive procedures, a statement of the reason justifying the 
use of such procedures and the identity of the intended source. 
"(g)(1) A notice is not required under subsection (a)(1) if— 
"(A) the notice would disclose the executive agency's needs 
and the disclosure of such needs would compromise the national 
security; 
"(B) the proposed procurement would result from acceptance 
of— 
"(i) any unsolicited proposal that demonstrates a unique 
and innovative research concept and the publication of any 
notice of such unsolicited research proposal would disclose 
the originality of thought or innovativeness of the proposal 
or would disclose proprietary information associated with 
the proposal; or 
"(ii) a proposal submitted under section 9 of this Act; 
"(C) the procurement is made against an order placed under a 
requirements contract; 
"(D) the procurement is made for perishable subsistence sup-
plies; or 
"(E) the procurement is for utility services, other than tele-
communication services, and only one source is available. 
"(2) The requirements of subsection (a)(1)(A) do not apply to any 
procurement under conditions described in paragraph (2), (3), (4), (5), 
or (7) of section 303(c) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253(c)) or paragraph (2), (3), (4), (5), or 
Ante, p. 1175. 
(7) of section 2304(c) of title 10, United States Code. 
Ante, p. 1187. 
98 STAT. 3084 
PUBLIC LAW 98-577—OCT. 30, 1984 
Armed Forces. 
Government 
organization and 
employees. 
97 Stat. 1330. 
97 Stat. 1326. 
Ante, p. 1195. 
Effective date. 
15 u s e 637 
note. 
Tennessee 
Valley 
Authority. 
15 u s e 637 
note. 
"(3) The requirements of subsection (aXlXA) shall not apply in the 
case of any procurement for which the head of the executive agency 
makes a determination in writing, after consultation with the Ad-
ministrator for Federal Procurement Policy and the Administrator 
of the Smsill Business Administration, that it is not appropriate or 
reasonable to publish a notice before issuing a solicitation. 
"(hXl) An executive agency may not award a contract using 
procedures other than competitive procedures unless— 
"(A) except as provided in paragraph (2), a written justifica-
tion for the use of such procedures has been approved— 
"(i) in the case of a contract for an amount exceeding 
$100,000 Ot)ut equal to or less than $1,000,000), by the advo-
cate for competition for the procuring activity (without 
further delegation); 
"(ii) in the case of a contract for an amount exceeding 
$1,000,000 (but equal to or less than $10,000,000), by the 
head of the procuring activity or a delegate who, if a 
member of the Armed Forces, is a general or flag officer, or, 
if a civilian, is serving in a position in grade GS-16 or above 
under the General Schedule (or in a comparable or higher 
position under another schedule); or 
"(iii) in the case of a contract for an amount exceeding 
$10,000,000, by the senior procurement executive of the 
agency designated pursuant to section 16(3) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 414(3)) (without 
further delegation); and 
"(B) all other requirements applicable to the use of such 
procedures under title III of the Federal Property and Adminis-
trative Services Act of 1949 (41 U.S.C. 251 et seq.) or chapter 137 
of title 10, United States Code, as appropriate, have been 
satisfied. 
"(2) The same exceptions as are provided in section 303(fK2) of the 
Federal Property and Administration Services Act of 1949 (41 U.S.C. 
253(fK2)) or section 2304(f)(2) of title 10, United States Code, shall 
apply with respect to the requirements of paragraph (1)(A) of this 
subsection in the same manner as such exceptions apply to the 
requirements of section 303(fKl) of such Act or section 2304(f)(1) of 
such title, as appropriate. 
"(i) An executive agency shall make available to any business 
concern, or the authorized representative of such concern, the com-
plete solicitation package for any on-going procurement announced 
pursuant to a notice under subsection (e). An executive agency may 
require the payment of a fee, not exceeding the actual cost of 
duplication, for a copy of such package. 
"(j) For purposes of this section, the term 'executive agency' has 
the meaning provided such term in section 4(1) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(1)).". 
(b) The amendment made by subsection (a) shall take effect 
with respect to any solicitation for bids or proposals issued 
after March 31, 1985. 
(c) The provisions of the amendment made by subsection (a) of this 
section shall apply to the Tennessee Valley Authority only with 
respect to procurements to be paid from appropriated funds. 
PUBLIC LAW 98-577—OCT. 30, 1984 
98 STAT. 3085 
TITLE V—OTHER PROCUREMENT PROVISIONS 
REGULATIONS ON OVERHEAD 
SEC. 501. Not later than 180 days after the date of enactment of 
this Act the single system of Government-wide procurement regula-
tions (as defined in section 4(4)) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(4)) shall be revised to include or amend, as 
appropriate, provisions relating to the manner in which each execu-
tive agency (as defined in section 4(1) of such Act (41 U.S.C. 403(1)) 
may negotiate prices for supplies to be obtained through the use of 
other than competitive procedures, as defined in section 4(b) of such 
Act (41 U.S.C. 403(b)). Such revision shall specify the incurred 
overhead a contractor may appropriately allocate to such supplies, 
and shall require the contractor to identify those supplies which it 
did not manufacture or to which it did not contribute significant 
value. Nothing in this subsection shall require the submission of 
cost or pricing data not otherwise required by law, 
PERSONNEL EVALUATIONS 
Sec. 502. The head of each executive agency that is subject to the 
P
rovisions of title III of the Federal Property and Administrative 
ervices Act of 1949 shall ensure, with respect to the employees of 
that agency whose primary duties and responsibilities pertain to the 
award of contracts subject to the provisions of this Act, that the 
performance appraisal system applicable to such employees affords 
appropriate recognition to, among other factors, efforts— 
(1) to increase competition and achieve cost savings through 
the elimination of procedures that unnecessarily inhibit full 
and open competition; 
(2) to further the purposes of the Small Business and Federal 
Procurement Competition Enhancement Act of 1984 and the 
Defense Procurement Reform Act of 1984; and 
(3) to further such other objectives and purposes of the Fed-
eral acquisition system as may be authorized by law. 
REPORT ON PRIME CONTRACTORS QUAUFYING ADDITIONAL SOURCES 
SEC. 503. Not later than July 1, 1985, the Administrator of the 
Office of Federal Procurement Policy shall submit to the Congress a 
report on the desirability and feasibility of various methods that 
may be used to qualify competitive sources for subsystems, assem-
blies, and components acquired as part of a major system estab-
lished by an agency pursuant to Office of Management and Budget 
(0MB) Circular A-109 entitled "Major Systems Acquisitions" and 
likely to be reprocured in substantial quantities during the system's 
service life. Such report shall discuss the desirability and feasibility 
of a contractual requirement that, in those situations where a 
prime contractor qualifies its subcontractors and suppliers, the 
prime contractor be required to— 
(1) qualify at least two sources for each major subsystem, 
assembly, or component during the term of the contract; or 
(2) furnish to the United States as a deliverable item under 
the 
contract, 
the qualification 
standards 
and 
processes 
employed by the prime contractor, so as to permit the United 
States to qualify additional sources for future competitive 
procurements. 
97 Stat. 1326. 
Ante, p. 1195. 
Government 
organization 
and 
employees. 
41 u s e 414a. 
41 u s e 251. 
98 STAT. 3086 
PUBLIC LAW 98-577—OCT. 30, 1984 
TECHNICAL AMENDMENTS TO COMPETITION IN CONTRACTING ACT OF 
1984 
SEC. 504. (a)(1) Section 303(b) of the Federal Property and Adminis-
tration Services Act of 1949 (41 U.S.C. 253) is amended by striking 
out paragraph (2) and inserting in lieu thereof the following: 
"(2) An executive agency may provide for the procurement of 
property or services covered by this section using competitive proce-
dures, but excluding other than small business concerns in further-
ance of sections 9 and 15 of the Small Business Act (15 U.S.C. 639; 
644). 
"(3) A contract awarded pursuant to the competitive procedures 
referred to in paragraphs (1) and (2) shall not be subject to the 
justification and approval required by subsection (f)(1).". 
41 use 253. 
(2) Section 303(f) of such Act is amended by striking out the last 
sentence of paragraph (2) and by inserting in lieu thereof the 
following: "The justification and approval required by paragraph (1) 
is not required in the case of a procurement permitted by subsection 
(c)(7) or in the case of a procurement conducted under— 
"(A) the Act of June 25, 1938 (41 U.S.C. 46 et seq.), popularly 
referred to as the Wagner-O'Day Act; or 
"(B) the authority of section 8(a) of the Small Business Act (15 
U.S.C. 637).". 
41 use 259. 
(3) Section 309(b) of such Act is amended— 
(A) by striking out the period at the end of paragraph (3) and 
by inserting in lieu thereof a semicolon; and 
(B) by adding at the end thereof the following new para-
graphs: 
"(4) procurements conducted in furtherance of section 15 of 
the Small Business Act (15 U.S.C. 644) as long as all responsible 
business concerns that are entitled to submit offers for such 
procurements are permitted to compete; and 
"(5) a competitive selection of research proposals resulting 
from a general solicitation and peer review or scientific review 
(as appropriate) solicited pursuant to section 9 of the Small 
Business Act (15 U.S.C. 638).". 
Ante, p. 1180. 
(4) Section 309(c) of such Act is amended by striking out "and 
'responsible source' have" and inserting in lieu thereof ", 'responsi-
ble source', 'technical data', 'major system', 'item', 'item of supply', 
and 'supplies' have". 
Ante, p. 1187. 
Ot))(l) Section 2304(b) of title 10, United States Code, is amended by 
striking out paragraph (2) and inserting in lieu thereof the follow-
ing: 
"(2) An executive agency may provide for the procurement of 
property or services covered by this section using competitive proce-
dures, but excluding other than small business concerns in further-
ance of sections 9 and 15 of the Small Business Act (15 U.S.C. 639; 
644). 
"(3) A contract awarded pursuant to the competitive procedures 
referred to in paragraphs (1) and (2) shall not be subject to the 
justification and approval required by subsection (f)(1).". 
(2) Section 2304(f) of such title is amended by striking out the last 
sentence of paragraph (2) and by inserting in lieu thereof the 
following: "The justification and approval required by paragraph (1) 
is not required in the case of a procurement permitted by subsection 
(c)(7) or in the case of a procurement conducted under— 
PUBLIC LAW 98-577—OCT. 30, 1984 
98 STAT. 3087 
"(A) the Act of June 25, 1938 (41 U.S.C. 46 et seq.), popularly 
referred to as the Wagner-O'Day Act; or 
"(B) the authority of section 8(a) of the Small Business Act (15 
U.S.C. 637).". 
(3) Section 2302(2) of such title is amended— 
(A) by striking out "and" at the end of subparagraph (B); Ante, p. 1186. 
(B) by striking out the period at the end of paragraph (C) and 
by inserting in lieu thereof a semicolon; and 
(C) by adding at the end thereof the following new subpara-
graphs: 
"(D) procurements conducted in furtherance of section 15 of 
the Small Business Act (15 U.S.C. 644) as long as all responsible 
business concerns that are entitled to submit offers for such 
procurements are permitted to compete; and 
"(E) a competitive selection of research proposals resulting 
from a general solicitation and peer review or scientific review 
(as appropriate) solicited pursuant to section 9 of the Small 
Business Act (15 U.S.C. 638).". 
REPEAL 
SEC. 505. Section 2311 of title 10, United States Code (as amended 
by section 1214 of the Defense Procurement Reform Act of 1984), is 
amended— 
(1) by striking out "(a)" at the beginning of subsection (a); and 
(2) by striking out subsection (b). 
Approved October 30, 1984. 
LEGISLATIVE HISTORY—H.R. 4209 (S. 2489): 
HOUSE REPORT No. 98-528 (Comm. on Small Business). 
SENATE REPORT No. 98-523 accompanying S. 2489 (Comm. on Small Business). 
CONGRESSIONAL RECORD, Vol. 130 (1984): 
May 21, considered and passed House. 
Aug. 7, considered and passed Senate, amended, in lieu of S. 2489. 
Oct. 2, House agreed to Senate amendments with amendments. 
Oct. 4. Senate concurred in House amendments.