Federal Acquisition Streamlining Act of 1994
PL 103-355 (S.1587), enacted 10/13/1994

PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3243 
Public Law 103-355 
103d Congress 
An Act 
To revise and streamline the acquisition laws of the Federal Government, and 
Oct. 13,1994 
for other purposes. 
[S. 1587] 
Be it enacted by the Senate and House of Representatives of 
the United States of 
America in Congress assembled, 
Federal 
Acquisition 
SECTION 1. SHORT TITLE. 
Streamlining 
Act of 1994 
This Act may be cited as the 'Tederal Acquisition StreamUning contracts 
Act of 1994". 
42 u s e 251 note. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—CONTRACT FORMATION 
Subtitle A—Competition Statutes 
PART I—ARMED SERVICES AcQuismoNS 
SUBPART A—COMPETITION REQUIREMENTS 
Sec. 1001. References to Federal Acquisition Regulation. 
Sec. 1002. Establishment or maintenance of alternative sources of supply. 
Sec. 1003. Clarification of approval authority for use of procedures other than full 
and open competition. 
Sec. 1004. Task ana delivery order contracts. 
Sec. 1005. Acquisition of expert services. 
SUBPART B—PLANNING, SOUCITATION, EVALUATION, AND AWARD 
Sec. 1011. Source selection factors. 
Sec. 1012. Solicitation provision regarding evaluation of purchase options. 
Sec. 1013. Prompt notice of award. 
Sec. 1014. Post-award debriefings. 
Sec. 1015. Protest file. 
Sec. 1016. Agency actions on protests. 
SUBPART C—KINDS OP CONTRACTS 
Sec. 1021. Repeal of requirement for Secretarial determination regarding use of 
cost type or incentive contract. 
Sec. 1022. Revision and reorganization of multiyear contracting authority. 
SUBPART D—MISCELLANEOUS 
Sec. 1031. Repeal of requirement for annual report by advocates for competition. 
PART II—CIVILIAN AGENCY ACQUISITIONS 
SUBPART A—COMPETITION REQUIREMENTS 
Sec. 1051. References to Federal Acquisition Regulation. 
Sec. 1052. Establishment or maintenance of alternative sources of supply. 
Sec. 1053. Clarification of approval authority for use of procedures other than full 
and open competition. 
Sec. 1054. Task ana delivery order contracts. 
79-194 O—95—20 : QL 3 Part 4 
108 STAT. 3244 
PUBLIC LAW 103-355—OCT. 13, 1994 
Sec. 1055. Acquisition of expert services. 
SUBPART B—PLANNING, SOLICITATION, EVALUATION, AND AWARD 
Sec. 1061. Solicitation, evaluation, and award. 
Sec. 1062. Solicitation provision regarding evaluation of purchase options. 
Sec. 1063. Prompt notice of award. 
Sec. 1064. Post-award debriefings. 
Sec. 1065. Protest file. 
Sec. 1066. Agency actions on protests. 
SUBPART C—GRINDS OF CONTRACTS 
Sec. 1071. Repeal of agency head determination regarding use of cost type or incen-
tive contract. 
Sec. 1072. Multiyear contracting authority. 
Sec. 1073. Severable services contracts crossing fiscal years. 
Sec. 1074. Economy Act purchases. 
PART III—ACQUISITIONS GENERALLY 
Sec. 1091. Policy regarding consideration of contractor past performance. 
Sec. 1092. Repeal of requirement for annual report on competition. 
Sec. 1093. Discouragement of nonstandard contract clauses. 
Subtitle B—^Truth in Negotiations 
PART I—ARMED SERVICES ACQUISITIONS 
Sec. 1201. Stabilization of dollar threshold of applicability. 
Sec. 1202. Exceptions to cost or pricing data requirements. 
Sec. 1203. Restrictions on additional authority to require cost or pricing data or 
other information. 
Sec. 1204. Additional special rules for commercial items. 
Sec. 1205. Right of United States to examine contractor records. 
Sec. 1206. Required regulations. 
Sec. 1207. Consistency of time references. 
Sec. 1208. Exception for transfers between divisions, subsidiaries, and affiliates. 
Sec. 1209. Coverage of Coast Guard and NASA for interest and payments on cer-
tain overpayments. 
Sec. 1210. Repeal of superseded provision. 
PART II—CIVILIAN AGENCY ACQUISITIONS 
Sec. 1251. Revision of civilian agency provisions to ensure imiform treatment of 
cost or pricing data. 
Sec. 1252. Repeal of obsolete provision. 
Subtitle C—^Research and Development 
Sec. 1301. Research projects. 
Subtitle D—^Procurement Protests 
PART I—PROTESTS TO THE COMPTROLLER GENERAL 
Sec. 1401. Protest defined. 
Sec. 1402. Review of protests and effect on contracts pending decision. 
Sec. 1403. Decisions on protests. 
Sec. 1404. Regulations. 
PART II—PROTESTS IN PROCUREMENTS OF AUTOMATIC DATA PROCESSING 
Sec. 1431. Revocation of delegations of procurement authority. 
Sec. 1432. Authority of the General Services Administration Board of Contract Ap-
peals. 
Sec. 1433. Periods for certain actions. 
Sec. 1434. Dismissals of protests. 
Sec. 1435. Award of costs. 
Sec. 1436. Dismissal agreements. 
Sec. 1437. Matters to be covered in regulations. 
Sec. 1438. Definition of protest. 
Sec. 1439. Oversight of acquisition of automatic date processing equipment by Fed-
eral agencies. 
Subtitle E—Policy, Definitions, and Other Matters 
PART I—ARMED SERVICES ACQUISITIONS 
Sec. 1501. Repeal of poUcy stetement. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3245 
Sec. 1502. Definitions. 
Sec. 1503. Delegation of procurement functions. 
Sec. 1504. Determinations and decisions. 
Sec. 1505. Restrictions on undefinitized contractual actions. 
Sec. 1506. Repeal of requirement relating to production special tooling and produc-
tion special test equipment. 
Sec. 1507. Regulations for bids. 
PART II—CIVILIAN AGENCY ACQUISITIONS 
Sec. 1551. Definitions. 
Sec. 1552. Delegation of procurement functions. 
Sec. 1553. Determinations and decisions. 
Sec. 1554. Repeal of preference for recycled toner cartridges. 
Sec. 1555. Cooperative purchasing. 
TITLE n—CONTRACT ADMINISTRATION 
Subtitle A—Contract Payment 
PART I—ARMED SERVICES ACQUISITIONS 
Sec. 2001. Contract financing. 
Sec. 2002. Repeal of vouchenng procediures section. 
PART II—CIVILIAN AGENCY ACQUISITIONS 
Sec. 2051. Contract financing. 
PART III—ACQUISITIONS GENERALLY 
Sec. 2091. Government-wide application of payment protections for subcontractors 
and suppliers. 
Subtitle B—Cost Principles 
PART I—ARMED SERVICES ACQUISITIONS 
Sec. 2101. Allowable contract costs. 
Sec. 2102. Repeal of authority for contract profit controls during emergency peri-
ods. 
PART II—CIVILIAN AGENCY ACQUISITIONS 
Sec. 2151. Allowable contract costs. 
PART III—ACQUISITIONS GENERALLY 
Sec. 2191. Travel expenses of Government contractors. 
Sec. 2192. Revision of cost principle relating to entertainment, gift, and recreation 
costs for contractor employees. 
Subtitle C—^Audit and Access to Records 
PART I—ARMED SERVICES ACQUISITIONS 
Sec. 2201. Consolidation and revision of authority to examine records of contrac-
tors. 
PART II—CIVILIAN AGENCY ACQUISITIONS 
Sec. 2251. Authority to examine records of contractors. 
Subtitle D—Claims and Disputes 
PART I—ARMED SERVICES ACQUISITIONS 
Sec. 2301. Certification of contract claims. 
Sec. 2302. Shipbuilding claims. 
PART II—-ACQUISITIONS GENERALLY 
Sec. 2351. Contract Disputes Act improvements. 
Sec. 2352. Extension of alternative dispute resolution authority. 
Sec. 2353. Expedited resolution of contract administration matters. 
Sec. 2354. Authority for district courts to obtain advisory opinions from boards of 
contract appeals in certain cases. 
Subtitle E—^Miscellaneous 
PART I—^ARMED SERVICES ACQUISITIONS 
Sec. 2401. Clarification of provision relating to quality control of certain spare 
parts. 
108 STAT. 3246 
PUBLIC LAW 103-355—OCT. 13, 1994 
Sec. 2402. Contractor guarantees regarding weapon systems. 
PART II—ACQUISITIONS GENERALLY 
' 
Sec. 2451. Section 3737 of the Revised Statutes: expansion of authority to prohibit 
setoffs against assignees; reorganization of section; revision of obso-
lete provisions. 
Sec. 2452. Repeal of requirement for deposit of contracts with GAO. 
Sec. 2453. Repeal of obsolete deadline regarding procedural regulations for the Cost 
Accounting Standards Board. 
Sec. 2454. Codification of accounting requirement for contracted advisory and as-
sistance services. 
Sec. 2455. Uniform suspension and debarment. 
TITLE m—SERVICE SPECIFIC AND MAJOR SYSTEMS STATUTES 
Subtitle A—^Msyor Systems Statutes 
Sec. 3001. Weapon development and procurement schedules. 
Sec. 3002. Selected acquisition report requirement. 
Sec. 3003. Unit cost report requirement. 
Sec. 3004. Requirement for independent cost estimate and manpower estimate be-
fore development or production. 
Sec. 3005. Baseline description. 
Sec. 3006. Repeal of requirement for competitive prototjrping for major programs. 
Sec. 3007. Repeal of requirement for competitive alternative sources for mtgor pro-
grams. 
Subtitle B—^Testing Statutes 
Sec. 3011. Authority of Director of Operational Test and Evaluation to commu-
nicate views directly to Secretary of Defense. 
Sec. 3012. Responsibility of Director of Operational Test and Evaluation for live 
fire testing. 
Sec. 3013. Requirement for unclassified version of annual report on operational test 
and evaluation. 
Sec. 3014. Survivability and lethality testing. 
Sec. 3015. Limitation on quantities to be procured for low-rate initial production. 
Subtitle C—Service Specific Laws 
Sec. 3021. Gratuitous services of officers of certain reserve components. 
Sec. 3022. Authority to rent samples, drawings, and other information to others. 
Sec. 3023. Repeal of application of Public Contracts Act to certain naval vessel con-
tracts. 
Sec. 3024. Repeal of requirement for construction of vessels on Pacific coast. 
Sec. 3025. Scientific investigation and reseeutih for the Navy. 
Subtitle D—Civil Reserve Air Fleet 
Sec. 3031. Definitions. 
Sec. 3032. Consolidation of provisions relating to contractual commitment of air-
craft. 
Sec. 3033. Use of military installations by contractors. 
Subtitle E—^Miscellaneous 
Sec. 3061. Regulations on procurement, production, warehousing, and supply dis-
tribution functions. 
Sec. 3062. Repeal of requirements regarding product evaluation activities. 
Sec. 3063. Department of Defense acquisition of intellectual property rights. 
Sec. 3064. Liquid fuels and natural gas: contracts for storage, handling, or distribu-
tion. 
Sec. 3065. Codification {md revision of limitation on lease of vessels, aircraft, and 
vehicles. 
Sec. 3066. Soft drink supplies. 
Sec. 3067. Disbursement of funds of militaiy department to cover obligations of an-
other agency of Department of Defense. 
TITLE IV^-SIMPLIFIED ACQUISITION THRESHOLD 
Subtitle A—Establishment of Threshold 
Sec. 4001. Simplified acquisition threshold defined. 
Sec. 4002. Establishment of simplified acquisition threshold for armed services. 
Sec. 4003. Establishment of simplified acquisition threshold for civilian agencies. 
Sec. 4004. Small business reservation. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3247 
Subtitle B—^Inapplicability of Laws to Acquisitions At or Below the 
Simplified Acquisition Threshold 
Sec. 4101. List of inapplicable laws in Federal Acquisition Regulation. 
Sec. 4102. Armed services acquisitions. 
Sec. 4103. Civilian agency acquisitions. 
Sec. 4104. Acquisitions generally. 
Subtitle C—Simplified Acquisition Procedures 
Sec. 4201. Simplified acquisition procedures. 
Sec. 4202. Procurement notice. 
Sec. 4203. Implementation of simplified acquisition procedures. 
Subtitle D—^Micro-Purchase Procedures 
Sec. 4301. Procedures for purchases below micro-purchase threshold. 
Subtitle E—Conforming Amendments 
Sec. 4401. Armed services acquisitions. 
Sec. 4402. Civilian agency acquisitions. 
Sec. 4403. Office of Federal Procurement Policy Act. 
Sec. 4404. Small Business Act. 
TITLE V—ACQUISITION MANAGEMENT 
Subtitle A—Armed Services Acquisitions 
Sec. 5001. Performance based management. 
Sec. 5002. Review of acquisition program cycle. 
Subtitle B—Civilian Agency Acquisitions 
Sec. 5051. Performance based management. 
Sec. 5052. Results-oriented acquisition process. 
Subtitle C—Pilot Programs 
Sec. 5061. OFPP test program for executive agencies. 
Sec. 5062. NASA mid-range proctu^ment test pro-am. 
Sec. 5063. Federal Aviation Administration acquisition pilot program. 
Sec. 5064. Department of Defense acquisition pilot programs. 
Subtitle D—^Miscellaneous 
Sec. 5091. Vendor and employee excellence awards. 
Sec. 5092. Waiting period for significant changes proposed for acquisition regula-
tions. 
Sec. 5093. Sense of Congress on negotiated rulemaking. 
TITLE VI—OTHER PROCUREMENT-RELATED MATTERS 
Sec. 6001. Post-emjjlojrment rules. 
Sec. 6002. Contracting functions performed by Federal personnel. 
Sec. 6003. Repeal of executed requirement for study and report. 
Sec. 6004. Interests of Members of Congress. 
Sec. 6005. Whistleblower protections for contractor employees of Department of De-
fense, Coast Guard, and National Aeronautics and Space Administra-
tion. 
Sec. 6006. Whistleblower protections for contractor employees of civilian agencies. 
Sec. 6007. Comptroller General review of the provision of legal advice for Inspec-
tors General. 
Sec. 6008. Cost savings for official travel. 
Sec. 6009. Prompt resolution of audit recommendations. 
TITLE Vn—SMALL BUSINESS AND SOCIOECONOMIC LAWS 
Subtitle A—Small Business Laws 
Sec. 7101. Repeal of certain requirements. 
Sec. 7102. Contracting program for certain small business concerns. 
Sec. 7103. Extension of test progrsun for negotiation of comprehensive small busi-
ness subcontracting plans. 
Sec. 7104. Small Business Procurement Advisory Council. 
Sec. 7105. Extension of defense contract goal to Coast Guard and National Aero-
nautics and Space Administration. 
Sec. 7106. Procurement goals for small business concerns owned by women. 
Sec. 7107. Development of definitions regarding certain small business concerns. 
108 STAT. 3248 
PUBLIC LAW 103-355-OCT. 13, 1994 
Sec. 7108. Functions of Office of Federal Procurement Policy relating to small busi-
ness. 
Subtitle B—Socioeconomic Laws 
Sec. 7201. Acquisitions generally. 
Sec. 7202. Prohibition on use of funds for documenting economic or employment im-
pact of certain acquisition programs. 
Sec. 7203. Merit-based award of contracts and grants. 
Sec. 7204. Maximum practicable opportunities for apprentices on Federal construc-
tion projects. 
Sec. 7205. Repeal of obsolete provision. 
Sec. 7206. Repeal of obsolete and redundant provisions of law. 
Subtitle C—^Waiver of Application of Prevailing Wage-Setting Requirements 
to Volunteers 
Sec. 7301. Short title. 
Sec. 7302. Purpose. 
Sec. 7303. Waiver for individuals who perform volunteer services for public entities. 
Sec. 7304. Waiver for individuals who perform volunteer services for nonprofit enti-
ties. 
Sec. 7305. Contracts affected. 
Sec. 7306. Report. 
TITLE Vin—COMMERCIAL ITEMS 
Subtitle A—Definitions and Regulations 
Sec. 8001. Definitions. 
Sec. 8002. Regulations on acquisition of commercial items. 
Sec. 8003. List of inapplicable laws in Federal Acquisition Regulation. 
Subtitle B—Armed Services Acquisitions 
Sec. 8101. Establishment of new chapter in title 10. 
Sec. 8102. Relationship to other provisions of law. 
Sec. 8103. Definitions. 
Sec. 8104. Preference for acquisition of commercial items. 
Sec. 8105. Inapplicability of certain provisions of law. 
Sec. 8106. Presumption that technical data under contracts for conunercial items 
are developed exclusively at private expense. 
Subtitle C—Civilian Agency Acquisitions 
Sec. 8201. Relationship to other provisions of law. 
Sec. 8202. Definitions. 
Sec. 8203. Preference for acquisition of commercial items. 
Sec. 8204. Inapplicability of certain provisions of law. 
Subtitle D—^Acquisitions Generally 
Sec. 8301. Inapplicability of certain provisions of law. 
Sec. 8302. Flexible deadlines for submission of offers of commercial items. 
Sec. 8303. Additional responsibilities for advocates for competition. 
Sec. 8304. Provisions not affected. 
Sec. 8305. Comptroller General review of Federal Government use of market re-
search. 
TITLE IX—FEDERAL ACQUISITION COMPUTER NETWORK 
Sec. 9001. Federal acquisition computer network architecture and implementation. 
Sec. 9002. Implementation of FACNET capability in armed services. 
Sec. 9003. Implementation of FACNET capability in civilian agencies. 
Sec. 9004. GAG determination of eligible agency contracts. 
TITLE X—EFFECTIVE DATES AND IMPLEMENTATION 
Sec. 10001. Effective date and applicability. 
Sec. 10002. Implementing regulations. 
Sec. 10003. Evaluation by the Comptroller General. 
Sec. 10004. Data collection through the Federal Procurement Data System. 
Sec. 10005. Technical and clerical amendments. 
PUBLIC LAW 103^55—OCT. 13, 1994 
108 STAT. 3249 
TITLE I—CONTRACT FORMATION 
Subtitle A—Competition Statutes 
PART I—ARMB]D SERVICES ACQUISITIONS 
Subpart A—Competition Requirements 
SEC. 1001. REFERENCES TO FEDERAL ACQUISITION REGULATION. 
Section 2304 of title 10, United States Code, is amended— 
(1) in subsection (a)(1)(A), by striking out "modifications" 
and all that follows through "note)" and inserting in lieu thereof 
"Federal Acquisition Regulation"; and 
(2) in subsection (g)(1), by striking out "regulations modi-
fied" and all that follows through "note)" and inserting in 
Ueu thereof "Federal Acquisition Regulation". 
SEC. 1002. ESTABUSHMENT OR MAINTENANCE OF ALTERNATIVE 
SOURCES OF SUPPLY. 
(a) ADDITIONAL JUSTIFICATION FOR ESTABLISHING OR MAINTAIN-
ING ALTERNATIVE SOURCES.—Section 2304(b)(1) of such title is 
amended— 
(1) by striking out "or" at the end of subparagraph (B); 
(2) by striking out the period at the end of subparagraph 
(C) and inserting in lieu thereof a semicolon; and 
(3) by adding at the end the following new subparagraphs: 
"(D) would ensure the continuous availabiUty of a reUable 
source of supply of such property or service; 
"(E) would satisfy projected needs for such property or 
service determined on the basis of a history of high demand 
for the property or service; or 
"(F) in the case of medical supplies, safety supplies, or 
emergency supplies, would satisfy a critical need for such sup-
plies.^'. 
(b) PROHIBITION ON USE OF CLASSES OF PURCHASES OR CON-
TRACTS.—Section 2304(b) of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
"(4) A determination under paragraph (1) may not be made 
for a class of purchases or contracts.". 
SEC. 1003. CLARIFICATION OF APPROVAL AUTHORITY FOR USE OF 
PROCEDURES OTHER THAN FULL AND OPEN COMPETI-
TION. 
Section 2304(f)(l)(B)(i) of title 10, United States Code, is amend-
ed by inserting before the semicolon at the end the following: 
"or by an official referred to in clause (ii), (iii), or (iv)". 
SEC. 1004. TASK AND DELIVERY ORDER CONTRACTS. 
(a) AUTHORITY.—(1) Chapter 137 of title 10, United States 
Code, is amended by inserting after section 2304 the following 
new sections: 
^§ 2304a. Task and delivery order contracts: general author-
ity 
"(a) AUTHORITY TO AWARD.—Subject to the requirements of 
this section, section 2304c of this title, and other applicable law, 
the head of an agency may enter into a task or dehvery order 
108 STAT. 3250 
PUBLIC LAW 103-355—OCT. 13, 1994 
contract (as defined in section 2304d of this title) for procurement 
of services or property. 
"(b) SOLICITATION.—The solicitation for a task or delivery order 
contract shall include the following: 
"(1) The period of the contract, including the number of 
options to extend the contract and the period for which the 
contract may be extended under each option, if any. 
"(2) The maximum quantity or dollar value of the services 
or property to be procured under the contract. 
"(3) A statement of work, specifications, or other description 
that reasonably describes the general scope, nature, complexity, 
and purposes of the services or property to be procured under 
the contract. 
"(c) APPLICABILITY OF RESTRICTION ON USE OF NONCOMPETITIVE 
PROCEDURES.—^The head of an agency may use procedures other 
than competitive procedures to enter into a task or delivery order 
contract under this section only if an exception in subsection (c) 
of section 2304 of this title applies to the contract and the use 
of such procedures is approved in accordance with subsection (f) 
of such section. 
"(d) SINGLE AND MULTIPLE CONTRACT AWARDS.—(1) The head 
of an agency may exercise the authority provided in this section— 
"(A) to award a single task or delivery order contract; 
or 
"(B) if the solicitation states that the head of the agency 
has the option to do so, to award separate task or delivery 
order contracts for the same or similar services or property 
to two or more sources. 
"(2) No determination under section 2304(b) of this title is 
required for award of multiple task or delivery order contracts 
under paragraph (1)(B). 
Regulations. 
"(3) The regulations implementing this subsection shall— 
"(A) establish a preference for awarding, to the maximum 
extent practicable, multiple task or delivery order contracts 
for the same or similar services or property imder the authority 
of paragraph (1)(B); and 
"(B) establish criteria for determining when award of mul-
tiple task or delivery order contracts would not be in the 
best interest of the Federal (jovemment. 
"(e) CONTRACT MODIFICATIONS.—^A task or delivery order may 
not increase the scope, period, or maximiun value of the task 
or delivery order contract under which the order is issued. The 
scope, period, or maximum value of the contract may be increased 
only by modification of the contract. 
"(f) INAPPLICABILITY TO CONTRACTS FOR ADVISORY AND ASSIST-
ANCE SERVICES.—Except as otherwise specifically provided in sec-
tion 2304b of this title, this section does not apply to a task 
or deUvery order contract for the procurement of advisory and 
assistance services (as defined in section 1105(g) of title 31). 
"(g) RELATIONSHIP TO OTHER CONTRACTING AUTHORITY.—Noth-
ing in this section may be construed to limit or expand any authority 
of the head of an agency or the Administrator of General Services 
to enter into schedule, multiple award, or task or delivery order 
contracts under any other provision of law. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3251 
*
*
§ 2304b. Task order contracts: advisory and as sistance serv-
ices 
"(a) AUTHORITY TO AWARD.—(1) Subject to the requirements 
of this section, section 2304c of this title, and other appUcable 
law, the head of an agency may enter into a task order contract 
(as defined in section 2304d of tms title) for procurement of advisory 
and assistance services. 
"(2) The head of an agency may enter into a task order contract 
for procurement of ad\isory and assistance services only imder 
the authority of this section. 
"(b) LIMITATION ON CONTRACT PERIOD.—^The period of a task 
order contract entered into under this section, including all periods 
of extensions of the contract under options, modifications, or other-
wise, may not exceed five years unless a longer period is specifically 
authorized in a law that is appUcable to such contract. 
"(c) CONTENT OF NOTICE.—^The notice required by section 18 
of the Office of Federal Procurement Pohcy Act (41 U.S.C. 416) 
and section 8(e) of the Small Business Act (15 U.S.C. 637(e)) shall 
reasonably and fairly describe the general scope, magnitude, and 
duration of the proposed task order contract in a manner that 
would reasonably enable a potential offeror to decide whether to 
request the solicitation and consider submitting an offer. 
"(d) 
REQUIRED CONTENT OF SOLICITATION AND CONTRACT.— 
(1) The soUcitation for the proposed task order contract shall include 
the information (regarding services) described in section 2304a(b) 
of this title. 
"(2) A task order contract entered into under this section shall 
contain the same information that is required by paragraph (1) 
to be included in the solicitation of offers for that contract. 
"(e) MULTIPLE AWARDS.—(1) The head of an agency may, on 
the basis of one solicitation, award separate task order contracts 
under this section for the same or similar services to two or more 
sources if the soUcitation states that the head of the agency has 
the option to do so. 
(2) If, in the case of a task order contract for advisory and 
assistance services to be entered into under this section, the contract 
period is to exceed three years and the contract amount is estimated 
to exceed $10,000,000 (including all options), the soUcitation shall— 
^ 
"(A) provide for a multiple award authorized under para-
graph (1); and 
"(B) include a statement that the head of the agency may 
also elect to award only one task order contract if the head 
of the agency determines in writing that only one of the offerers 
is capable of providing the services required at the level of 
quality required. 
(3) Para^aph (2) does not apply in the case of a soUcitation 
for which the head of the agency concerned determines in writing 
that, because the services required under the task order contract 
are unique or highly speciaUzed, it is not practicable to award 
more than one contract. 
"(f) CONTRACT MODIFICATIONS.—(1) A task order may not 
increase the scope, period, or maximum value of the task order 
contract under whicn the order is issued. The scope, period, or 
maximum value of the contract may be increased only by modifica-
tion of the contract. 
"(2) Unless use of procedures other than competitive procedures 
is £nithorized by an exception in subsection (c) of section 2304 
108 STAT. 3252 
PUBLIC LAW 103-355—OCT. 13, 1994 
of this title and approved in accordance with subsection (f) of 
such section, competitive procedures shall be used for making such 
a modification. 
"(3) Notice regarding the modification shall be provided in 
accordance with section 18 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 416) and section 8(e) of the Small Business 
Act (15 U.S.C. 637(e)). 
"(g) CONTRACT EXTENSIONS.—(1) Notwithstanding the Umita-
tion on the contract period set forth in subsection (b) or in a 
solicitation or contract pursuant to subsection (e), a task order 
contract entered into by the head of an agency under this section 
may be extended on a sole-source basis for a period not exceeding 
six months if the head of such agency determines that— 
"(A) the award of a follow-on contract has been delayed 
by circumstances that were not reasonably foreseeable at the 
time the initial contract was entered into; and 
"(B) the extension is necessary in order to ensure continuity 
of the receipt of services pending the award of, and commence-
ment of performance under, the follow-on contract. 
"(2) A task order contract may be extended under the authority 
of paragraph (1) only once and only in accordance with the limita-
tions and requirements of this subsection. 
"(h) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section 
does not apply to a contract for the acquisition of property or 
services that includes acquisition of advisory and assistance services 
if the head of an agency entering into such contract determines 
that, under the contract, advisory and assistance services are nec-
essarily incident to, and not a significant component of, the contract. 
"(i) ADVISORY AND ASSISTANCE SERVICES DEFINED.—In this sec-
tion, the term 'advisory and assistance services' has the meaning 
given such term in section 1105(g) of title 31. 
"§ 2304c. Task and delivery order contracts: orders 
"(a) ISSUANCE OF ORDERS.—^The following actions are not 
required for issuEuice of a task or deUvery order under a task 
or deUvery order contract: 
"(1) A separate notice for such order under section 18 
of the Office of Federal Procurement Policy Act (41 U.S.C. 
416) or section 8(e) of the Small Business Act (15 U.S.C. 637(e)). 
"(2) Except as provided in subsection (b), a competition 
(or a waiver of competition approved in accordance with section 
2304(f) of this title) that is separate from that used for entering 
into the contract. 
"(b) MULTIPLE AWARD CONTRACTS.—When multiple task or 
deUvery order contracts are awarded under section 2304a(d)(l)(B) 
or 2304b(e) of this title, all contractors awarded such contracts 
shall be provided a fair opportunity to be considered, pursuant 
to procedures set forth in the contracts, for each task or delivery 
order in excess of $2,500 that is to be issued under any of the 
contracts unless— 
"(1) the agency's need for the services or property ordered 
is of such unusual urgency that providing such opportunity 
to all such contractors would result in unacceptable delays 
in fulfilling that need; 
"(2) only one such contractor is capable of providing the 
services or property required at the level of quaUty required 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3253 
because the services or property ordered are unique or highly 
specialized; 
"(3) the task or delivery order should be issued on a sole-
source basis in the interest of economy and efficiency because 
it is a logical follow-on to a task or delivery order already 
issued on a competitive basis; or 
"(4) it is necessary to place the order with a particular 
contractor in order to satisfy a minimum guarantee. 
"(c) STATEMENT OF WORK,—^A task or delivery order shall 
include a statement of work that clearly specifies all tasks to 
be performed or property to be delivered under the order. 
"(d) PROTESTS.—^A protest is not authorized in connection with 
the issuance or proposed issuance of a task or delivery order except 
for a protest on the ground that the order increases the scope, 
period, or maximum value of the contract under which the order 
is issued. 
"(e) TASK AND DELIVERY ORDER OMBUDSMAN.—Each head of 
an agency who awards multiple task or delivery order contracts 
pursuant to section 2304a(d)(l)(B) or 2304b(e) of this title shall 
appoint or designate a task and delivery order ombudsman who 
shall be responsible for reviewing complaints from the contractors 
on such contracts and ensuring that all of the contractors are 
afforded a fair opportunity to be considered for task or delivery 
orders when required under subsection (b). The task and delivery 
order ombudsman shall be a senior agency official who is indepena-
ent of the contracting officer for the contracts and may be the 
agency's competition advocate. 
"(f) APPLICABILITY.—^This section applies to task and delivery 
order contracts entered into imder sections 2304a and 2304b of 
this title. 
^§ 2304d. Task and delivery order contracts: definitions 
"In sections 2304a, 2304b, and 2304c of this title: 
"(1) The term 'task order contract' means a contract for 
services that does not procure or specify a firm quantity of 
services (other than a minimum or maximum quantity) and 
that provides for the issuance of orders for the performance 
of tasks during the period of the contract. 
"(2) The term 'deUvery order contract' means a contract 
for property that does not procure or specify a firm quantity 
of property (other than a minimum or maximum quantity) 
and that provides for the issuance of orders for the delivery 
of property during the period of the contract.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2304 
the following new items: 
"23048. Task and delivery order contracts: general authority. 
''2304b. Task order contracts: advisory and assistance services. 
''2304c. Task and delivery order contracts: orders. 
''2304d. Task and delivery order contracts: definitions.". 
(b) REPEAL OF SUPERSEDED PROVISION.—Section 2304 of title 
10, United States Code, is amended by striking out subsection 
(J). 
(c) CONFORMING AMENDMENT FOR PROFESSIONAL AND TECH-
NICAL SERVICES.—Section 2331 of title 10, United States Code, 
is amended by striking out subsection (c). 
(d) PROVISIONS NOT AFFECTED.—^Nothing in section 2304a, iousc2304a 
2304b, 2304c, or 2304d of title 10, United States Code, as added "
o
*
® 
108 STAT. 3254 
PUBLIC LAW 103-355—OCT. 13, 1994 
by subsection (a), and nothing in the amendments made by sub-
sections (b) and (c), shall be construed as modifying or superseding, 
or as intended to impair or restrict, authorities or responsibilities 
under— 
(1) the Brooks Automatic Data Processing Act (section 111 
of the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 759)); and 
(2) the Brooks Architect-Engineers Act (title IX of the Fed-
eral Property and Administrative Services Act of 1949 (40 
U.S.C. 541 et seq.)). 
SEC. 1005. ACQUISITION OF EXPERT SERVICES. 
Section 2304(c)(3) of title 10, United States Code, is amended— 
(1) by striking out "or (B)" and inserting in lieu thereof 
"(B)"; and 
(2) by inserting before the semicolon at the end the follow-
ing: ", or (C) to procure the services of an expert for use, 
in any litigation or dispute (including any reasonably foresee-
able litigation or dispute) involving the Federal Grovernment, 
in any trial, hearing, or proceeding before any court, adminis-
trative tribunal, or agency, or in any part of an alternative 
dispute resolution process, whether or not the expert is expected 
to testify". 
Subpart B—^Planning, Solicitation, Evaluation, 
and Award 
SEC. 1011. SOURCE SELECTION FACTORS. 
(a) CONTENT OF SOLICITATION.—Paragraph (2) of section 2305(a) 
of title 10, United States Code, is amended— 
(1) in subparagraph (A)(i)— 
(A) by striking out "(and significant subfactors)" and 
inserting in lieu thereof "and significant subfactors"; and 
(B) by striking out "cost- or price-related factors, and 
noncost- or nonprice-related factors" and inserting in lieu 
thereof "cost-related or price-related factors and subfactors, 
and 
noncost-related 
or nonprice-related 
factors and 
subfactors"; 
(2) in subparagraph 
(A)(ii), by striking out "(and 
subfactors)" and inserting "and subfactors"; and 
(3) in subparagraph (BXii), by amending subclause (I) to 
read as follows: 
"(I) either a statement that the proposals are intended 
to be evaluated with, and award made after, discussions 
with the offerors, or a statement that the proposeds are 
intended to be evaluated, and award made, without discus-
sions with the offerors (other than discussions conducted 
for the purpose of minor clarification) unless discussions 
are determined to be necessary; and". 
(b) EVALUATION FACTORS.—Such section is further amended 
by striking out paragraph (3) and inserting in Ueu thereof the 
following: 
"(3)(A) In prescribing the evaluation factors to be included 
in each soUcitation for competitive proposals, the head of an 
agency— 
"(i) shall clearly establish the relative importance assigned 
to the evaluation factors and subfactors, including the quaUty 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3255 
of the product or services to be provided (including technical 
capability, management capabiUty, prior experience, and past 
performance of the offeror); 
"(ii) shall include cost or price to the Federal Grovemment 
as an evaluation factor that must be considered in the evalua-
tion of proposals; and 
"(iii) shall disclose to offerors whether all evaluation factors 
other than cost or price, when combined, are— 
"(I) signincantly more important than cost or price; 
"(II) approximately equal in importance to cost or price; 
or 
"(III) significantly less important than cost or price. 
"(B) The regulations implementing clause (iii) of subparagraph 
(A) may not define the terms 'significantly more important and 
'significantly less important' as specific numeric weights that would 
be applied uniformly to all solicitations or a class of soUcitations. 
(4) Nothing in this subsection prohibits an agency from— 
"(A) providing additional information in a solicitation, 
including numeric weights for all evaluation factors and 
subfactors on a case-by-case basis; or 
"(B) stating in a soUcitation that award will be made to 
the offeror that meets the solicitation's mandatory requirements 
at the lowest cost or price.". 
SEC. 1012. SOUCITATION PROVISION REGARDING EVALUATION OF 
PURCHASE OPTIONS. 
Subsection (a) of section 2305 of title 10, United States Code, 
as amended by section 1011, is further amended by adding at 
the end the following new paragraph: 
"(5) The head of an agency, in issuing a solicitation for a 
contract to be awarded using sealed bid procedures, may not include 
in such soUcitation a clause providing for the evaluation of prices 
for options to purchase additional property or services under the 
contract unless the head of the agency has determined that there 
is a reasonable Ukehhood that the options will be exercised.". 
SEC. 1013. PROMPT NOTICE OF AWARD. 
(a) SEALED BID PROCEDURES.—Paragraph (3) of section 2305(b) 
of title 10, United States Code, is amended— 
(1) in the last sentence, by striking out "transmitting writ-
ten notice" and inserting in lieu thereof "transmitting, in writ-
ing or by electronic means, notice"; and 
(2) by adding at the end the following: "Within three days 
after the date of contract award, the head of the agency shall 
notify, in writing or by electronic means, each bidder not 
awarded the contract that the contract has been awarded.". 
(b) COMPETITIVE PROPOSALS PROCEDURES.—Paragraph (4)(B) 
of such section is amended in the second sentence— 
(1) by striking out "transmitting written notice" and insert-
ing in lieu thereof "transmitting, in writing or by electronic 
means, notice"; and 
(2) by striking out "shall promptly notify" and inserting 
in lieu thereof ", within three days after the date of contract 
award, shall notify, in writing or by electronic means,". 
SEC. 1014. POST-AWARD DEBRIEFINGS. 
Section 2305(b) of title 10, United States Code, is amended— 
(1) by redesignating paragraph (5) as paragraph (6); and 
108 STAT. 3256 
PUBLIC LAW 103-355—OCT. 13, 1994 
(2) by inserting after paragraph (4) the following new para-
graph (5): 
"(5)(A) When a contract is awarded by the head of an agency 
on the basis of competitive proposals, an unsuccessful offeror, upon 
written request received by the agency within 3 days after the 
date on which the unsuccessful offeror receives the notification 
of the contract award, shall be debriefed and furnished the basis 
for the selecticn decision and contract award. The head of the 
agency shall debrief the offeror within, to the maximum extent 
practicable, five days after receipt of the request by the agency. 
"(B) The debriefing shall include, at a minimum— 
"(i) the agency's evaluation of the significant weak or defi-
cient factors in the offeror's offer; 
"(ii) the overall evaluated cost and technical rating of the 
offer of the contractor awarded the contract and the overedl 
evaluated cost and technical rating of the offer of the debriefed 
offeror; 
"(iii) the overall ranking of all offers; 
"(iv) a summary of the rationale for the award; 
"(v) in the case of a proposal that includes a commercial 
item that is an end item under the contract, the make and 
model of the item being provided in accordsuice with the offer 
of the contractor awarded the contract; and 
"(vi) reasonable responses to relevant questions posed by 
the debriefed offeror as to whether source selection procedures 
set forth in the solicitation, applicable regulations, and other 
applicable authorities were followed by the agency. 
"(C) The debriefing may not include point-by-point comparisons 
of the debriefed offeror's offer with other offers and may not disclose 
any information that is exempt fi'om disclosure imder section 552(b) 
of title 5. 
"(D) Each solicitation for competitive proposals shall include 
a statement that information described in subparagraph (B) may 
be disclosed in post-award debriefings. 
"(E) If, within one year after the date of the contract award 
and as a result of a successful procurement protest, the agency 
seeks to fulfill the requirement under the protested contract either 
on the basis of a new solicitation of offers or on the basis of 
new best and final offers requested for that contract, the agency 
shall make available to all offerors— 
"(i) the information provided in debriefings under this para-
graph regarding the offer of the contractor awarded the con-
tract; and 
"(ii) the same information that would have been provided 
to the original offerors. 
"(F) The contracting officer shall include a summary of the 
debriefing in the contract file.". 
SEC. 1015. PROTEST FILE. 
Section 2305 of title 10, United States Code, is amended by 
adding at the end the following new subsection: 
"(e) PROTEST FILE.—(1) If, in the case of a solicitation for 
a contract issued by, or an award or proposed award of a contract 
by, the head of an agency, a protest is filed pursuant to the proce-
dures in subchapter V of chapter 35 of title 31 and an actual 
or prospective offeror so requests, a file of the protest shall be 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3257 
established by the procuring activity and reasonable access shall 
be provided to actual or prospective offerors. 
"(2) Information exempt from disclosure under section 552 of 
title 5 may be redacted in a file established pursuant to paragraph 
(1) unless an appHcable protective order provides otherwise. 
"(3) Regulations implementing this subsection shall be consist-
ent with the regulations regarding the preparation and submission 
of an agency's protest file (the so-called rule 4 file') for protests 
to the General Services Board of Contract Appeals under section 
111 of the Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 759).". 
SEC. 1016. AGENCY ACTIONS ON PROTESTS. 
Section 2305 of title 10, United States Code, as amended by 
section 1015, is further amended by adding at the end the following 
new subsection: 
"(f) AGENCY ACTIONS ON PROTESTS.—If, in connection with a 
protest, the head of an agency determines that a soUcitation, pro-
posed award, or award does not comply with the requirements 
of law or regulation, the head of the agency— 
"(1) may take any action set out in subparagraphs (A) 
through (F) of subsection (b)(1) of section 3554 of title 31; 
and 
"(2) may pay costs described in paragraph (1) of section 
3554(c) of title 31 within the limits referred to in paragraph 
(2) of such section.". 
Subpart C—Kinds of Contracts 
SEC. 1021. REPEAL OF REQUIREMENT FOR SECRETARIAL DETERMINA-
TION REGARDING USE OF COST TYPE OR INCENTIVE 
CONTRACT. 
Subsection (c) of section 2306 of title 10, United States Code, 
is repealed. 
SEC. 1022. REVISION AND REORGANIZATION OF MULTIYEAR CON-
TRACTING AUTHORITY. 
(a) IN GENERAL.—(1) Chapter 137 of title 10, United States 
Code, is amended by inserting after section 2306a the following 
new section: 
*
"
§ 2306b. Multiyear contracts 
"(a) IN GENERAL.—^To the extent that funds are otherwise avail-
able for obligation, the head of an agency may enter into multiyear 
contracts for the purchase of property whenever the head of that 
agency finds— 
"(1) that the use of such a contract will result in substantigJ 
savings of the total anticipated costs of carrying out the pro-
gram through annual contracts; 
"(2) that the minimum need for the property to be pur-
chased is expected to remain substantially unchanged during 
the contemplated contract period in terms of production rate, 
procurement rate, and total quantities; 
"(3) that there is a reasonable expectation that throughout 
the contemplated contract period the head of the agency will 
request funding for the contract at the level required to avoid 
contract cancellation; 
108 STAT. 3258 
PUBLIC LAW 103-355—OCT. 13, 1994 
"(4) that there is a stable design for the property to be 
acquired and that the technical risks associated with such 
property are not excessive; 
"(5) that the estimates of both the cost of the contract 
and the anticipated cost avoidance through the use of a 
multiyear contract are reaUstic; and 
"(6) in the case of a purchase by the Department of Defense, 
that the use of such a contract will promote the national secu-
rity of the United States. 
"(b) REGULATIONS.—(1) Each official named in paragraph (2) 
shall prescribe acquisition regulations for the agency or agencies 
under the jurisdiction of such official to promote the use of multiyear 
contracting as authorized by subsection (a) in a msuiner that will 
allow the most efficient use of multiyear contracting. 
"(2)(A) The Secretary of Defense shall prescribe the regulations 
applicable to the Department of Defense. 
"(B) The Secretary of Transportation shall prescribe the regula-
tions applicable to the Coast Guard, except that the regulations 
prescribed by the Secretary of Defense shall apply to the Coast 
Guard when it is operating as a service in the Navy. 
"(C) The Administrator of the National Aeronautics and Space 
Administration shall prescribe the regulations applicable to the 
National Aeronautics and Space Administration. 
"(c) CONTRACT CANCELLATIONS.—The regulations may provide 
for cancellation provisions in multiyear contracts to the extent 
that such provisions are necessary and in the best interests of 
the United States. The cancellation provisions may include consider-
ation of both recurring and nonrecurring costs of the contractor 
associated with the production of the items to be delivered under 
the contract. 
"(d) PARTICIPATION BY SUBCONTRACTORS, VENDORS, AND SUPPLI-
ERS.—In order to broaden the defense industrial base, the regula-
tions shall provide that, to the extent practicable— 
"(1) multiyear contracting under paragraph (1) shall be 
used in such a manner as to seek, retain, and promote the 
use under such contracts of companies that are subcontractors, 
vendors, or suppliers; and 
"(2) upon accrual of any payment or other benefit under 
such a vmultiyear contract to any subcontractor, vendor, or 
suppUer company participating in such contract, such payment 
or benefit shall be delivered to such company in the most 
expeditious manner practicable. 
"(e) PROTECTION OF EXISTING AUTHORITY.-The regulations 
shall provide that, to the extent practicable, the administration 
of this section, and of the regulations prescribed imder this section, 
shall not be carried out in a manner to preclude or curtail the 
existing ability of an agency— 
"(1) to provide for competition in the production of items 
to be deUvered under such a contract; or 
"(2) to provide for termination of a prime contract the 
performance of which is deficient with respect to cost, quality, 
or schedule. 
"(f) CANCELLATION OR TERMINATION FOR INSUFFICIENT FUND-
ING.—^In the event funds are not made available for the continuation 
of a contract made under this section into a subsequent fiscal 
year, the contract shall be canceled or terminated. The coste of 
cancellation or termination may be paid fi-om— 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3259 
"(1) appropriations originally available for the performance 
of the contract concerned; 
"(2) appropriations currently available for procurement of 
the t3rpe of property concerned, and not otherwise obligated; 
or 
"(3) funds appropriated for those pa3nnents. 
"(g) 
CONTRACT 
CANCELLATION 
CEILINGS 
EXCEEDING 
$100,000,000.—Before any contract described in subsection (a) that 
contains a clause setting forth a cancellation ceiling in excess of 
$100,000,000 may be awarded, the head of the agency concerned 
shall give written notification of the proposed contract and of the 
proposed cancellation ceiling for that contract to the Committees 
on Armed Services and on Appropriations of the Senate and House 
of Representatives, and such contract may not then be awarded 
until the end of a period of 30 days beginning on the date of 
such notification. 
"(h) DEFENSE ACQUISITIONS OF WEAPON SYSTEMS.—In the case 
of the Department of Defense, the authority under subsection (a) 
includes authority to enter into the following multiyear contracts 
in accordance with this section: 
"(1) A multiyear contract for the purchase of a weapon 
system, items and services associated with a weapon system, 
and logistics support for a weapon system. 
"(2) A multiyear contract for advance procurement of 
components, parts, and materials necessary to the manufacture 
of a weapon system, including a multiyear contract for such 
advance procurement that is entered into in order to achieve 
economic-lot purchases and more efficient production rates. 
"(i) 
DEFENSE 
ACQUISITIONS SPECIFICALLY AUTHORIZED BY 
L A W . ^ 1 ) A multiyear contract may not be entered into for any 
fiscal year under this section for a defense acquisition program 
that has been specifically authorized by law to be carried out 
using multiyear contract authority imless each of the following 
conditions is satisfied: 
"(A) The Secretary of Defense certifies to Congress that 
the current five-year defense program fully funds the support 
costs associated with the multiyear program. 
"(B) The proposed multiyear contract provides for produc-
tion at not less than minimum economic rates given the existing 
tooling and facilities. 
"(2) If for any fiscal year a multiyear contract to be entered 
into under this section is authorized by law for a particular procure-
ment program and that authorization is subject to certain conditions 
established by law (including a condition as to cost savings to 
be achieved under the multiyear contract in comparison to specified 
other contracts) and if it appears (after negotiations with contrac-
tors) that such savings cannot be achieved, but that substantial 
savings could nevertheless be achieved through the use of a 
multiyear contract rather than specified other contracts, the Presi-
dent may submit to Congress a request for relief from the specified 
cost savings that must be achieved through multiyear contracting 
for that program. Any such request by the President shall include 
details about the request for a multiyear contract, including details 
about the negotiated contract terms and conditions. 
"(j) DEFENSE CONTRACT OPTIONS FOR VARYING QUANTITIES.— 
The Secretary of Defense may instruct the Secretary of the military 
department concerned to incorporate into a proposed multiyear 
108 STAT. 3260 
PUBLIC LAW 103-355—OCT. 13, 1994 
contract negotiated priced options for varjdng the quantities of 
end items to be procured over the period of the contract. 
"(k) INAPPLICABIUTY TO AUTOMATIC DATA PROCESSING CON-
TRACTS.—This section does not apply to contracts for the purchase 
of properi^y to which section 111 of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 759) applies. 
"(1) M
u
L
T
i
Y
E
A
R CONTRACT DEFINED.—For the purposes of this 
subsection, a multiyear contract is a contract for the purchase 
of property or services for more than one, but not more than 
five, program years. Such a contract may provide that performance 
under the contract during the second and subsequent years of 
the contract is contingent upon the appropriation of funds and 
(if it does so provide) may provide for a cancellation payment 
to be made to the contractor if such appropriations are not made.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting sifter the item relating to section 2306a 
the following: 
"2306b. Multiyear contracts.". 
(b) CONFORMING CROSS REFERENCE.—Subsection (h) of section 
2306 of title 10, United States Code, is amended to read as follows: 
"(h) Multiyear contracting authority is provided in section 
2306b of this title.". 
Subpart D—^Miscellaneous 
SEC. 1031. REPEAL OF REQUIREMENT FOR ANNUAL REPORT BY ADVO-
CATES FOR COMPETITION. 
Subsection (c) of section 2318 of title 10, United States Code, 
is repealed. 
PART II—CIVILIAN AGENCY ACQUISITIONS 
Subpart A—Competition Requirements 
SEC. 1051. REFERENCES TO FEDERAL ACQUISITION REGULATION. 
Section 303 of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253) is amended— 
(1) in subsection (a)(1)(A), by striking out "modifications" 
and all that follows through "of 1984" and inserting in lieu 
thereof "Federal Acquisition Regulation"; and 
(2) in subsection (g)(1), by striking out "regulations modi-
fied" and all that follows through "of 1984," and inserting 
in lieu thereof "Federal Acquisition Regulation". 
SEC. 1052. ESTABLISHMENT OR MAINTENANCE OF ALTERNATIVE 
SOURCES OF SUPPLY. 
(a) ADDITIONAL JUSTIFICATION FOR ESTABLISHING OR MAINTAIN-
ING ALTERNATIVE SOURCES.—Section 303(b)(1) of the Federal Prop-
erty and Administrative Services Act of 1949 (41 U.S.C. 253(b)(1)) 
is amended— 
(1) by striking out "or" at the end of subparagraph (B); 
(2) by striking out the period at the end of subparagraph 
(C) and inserting in lieu thereof a semicolon; and 
(3) by adding at the end the following new subparagraphs: 
"(D) would ensure the continuous availability of a reUable 
source of supply of such property or service; 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3261 
"(E) would satisfy projected needs for such property or 
service determined on the basis of a history of high demand 
for the property or service; or 
"(F) in the case of medical supplies, safety supplies, or 
emergency supplies, would satisfy a critical need for such sup-
plies. . 
(b) PROHIBITION ON USE OF CLASSES OF PURCHASES OR CON-
TRACTS.—Section 303(b) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253(b)) is amended by adding 
at the end the following: 
"(4) A determination under paragraph (1) may not be made 
for a class of purchases or contracts.". 
SEC. 1053. CLARIFICA'»^oN OF APPROVAL AUTHORITY FOR USE OF 
PROCisDURES OTHER THAN FULL AND OPEN COMPETI-
TION. 
Section 303(£)(l)(B)(i) of the Federal Property and Administra-
tive Services Act of 1949 (41 U.S.C. 253(£)(lXB)(i)) is amended 
by inserting before the semicolon at the end the following: "or 
by an ofGcisJ referred to in clause (ii), (iii), or (iv)". 
SEC. 1054. TASK AND DELIVERY ORDER CONTRACTS. 
(a) AUTHORITY.—^Title III of the Federal Property and Adminis-
trative Services Act of 1949 (41 U.S.C. 251 et seq.) is amended 
by inserting after section 303G the following new sections: 
"SEC. 303H. TASK AND DELIVERY ORDER CONTRACTS: GENERAL AU- 
41 USC 253h. 
THORTTY. 
"(a) AUTHORITY TO AWARD.—Subject to the requirements of 
this section, section 303J, and other appUcable law, the head of 
an executive agency may enter into a task or delivery order contract 
(as defined in section 303K) for procurement of services or property. 
"(b) SOLICITATION.—The solicitation for a task or delivery order 
contract shall include the following: 
"(1) The period of the contract, including the number of 
options to extend the contract and the period for which the 
contract may be extended under each option, if any. 
"(2) The maximum quantity or dollar value of the services 
or property to be procured under the contract. 
"(3) A statement of work, specifications, or other description 
that reasonably describes the general scope, nature, complexity, 
and purposes of the services or property to be procured under 
the contract. 
"(c) APPLICABILITY OF RESTRICTION ON USE OF NONCOMPETITIVE 
PROCEDURES.—^The head of an executive agency may use procedures 
other than competitive procedures to enter into a task or delivery 
order contract under this section only if an exception in subsection 
(c) of section 303 apphes to the contract ana the use of such 
procedures is approved in accordance with subsection (f) of such 
section. 
"(d) SINGLE AND MULTIPLE CONTRACT AWARDS.—(1) The head 
of an executive agency may exercise the authority provided in 
this section— 
"(A) to award a single task or delivery order contract; 
or 
"(B) if the solicitation states that the head of the executive 
agency has the option to do so, to award separate task or 
108 STAT. 3262 
PUBLIC LAW 103-355—OCT. 13, 1994 
delivery order contracts for the same or similar services or 
property to two or more sources. 
"(2) No determination imder section 303(b) is required for an 
award of multiple task or delivery order contracts under paragraph 
(IXB). 
R^ulations. 
«(3) The regulations implementing this subsection shall— 
"(A) estabhsh a preference for awarding, to the maximum 
extent practicable, multiple task or delivery order contracts 
for the same or similar services or property under the authority 
of paragraph (1)(B); and 
"(B) establish criteria for determining when award of mul-
tiple task or delivery order contracts would not be in the 
best interest of the Federal Government. 
"(e) CONTRACT MODIFICATIONS.—^A task or delivery order may 
not increase the scope, period, or maximum value of the task 
or deUvery order contract under which the order is issued. The 
scope, period, or maximum value of the contract may be increased 
only by modification of the contract. 
"(f) INAPPLICABIUTY TO CONTRACTS FOR ADVISORY AND ASSIST-
ANCE SERVICES.—Except as otherwise specifically provided in sec-
tion 3031, this section does not apply to a task or delivery order 
contract for the acquisition of advisory and assistance services 
(as defined in section 1105(g) of title 31, United States Code). 
"(g) RELATIONSHIP TO OTHER CONTRACTING AUTHORITY.—Noth-
ing in this section may be construed to limit or expand any authority 
of the head of an executive agency or the Administrator of General 
Services to enter into schedule, multiple award, or task or delivery 
order contracts under any other provision of law. 
41 use 253i. 
"SEC. 3031. TASK ORDER CONTRACTS: ADVISORY AND ASSISTANCE 
SERVICES. 
"(a) AUTHORITY To AWARD.—(1) Subject to the requirements 
of this section, section 303J, and other applicable law, the head 
of an executive agency may enter into a task order contract (as 
defined in section 303K) for procurement of advisory and assistance 
services. 
"(2) The head of an executive agency may enter into a task 
order contract for advisory and assistance services only under the 
authority of this section. 
"(b) LIMITATION ON CONTRACT PERIOD.—The period of a task 
order contract entered into under this section, including all periods 
of extensions of the contract under options, modifications, or other-
wise, may not exceed five years unless a longer period is specifically 
authorized in a law that is appUcable to such contract. 
"(c) CONTENT OF NOTICE.—The notice required by section 18 
of the Office of Federal Procurement Policy Act (41 U.S.C. 416) 
and section 8(e) of the Small Business Act (15 U.S.C. 637(e)) shall 
reasonably and fairly describe the general scope, magnitude, and 
duration of the proposed task order contract in a manner that 
would reasonably enable a potential offisror to decide whether to 
request the soUcitation and consider submitting an offer. 
"(d) 
REQUIRED CONTENT OF SOLICITATION AND CONTRACT.— 
(1) The solicitation shall include the information (regarding services) 
described in section 303H(b). 
"(2) A task order contract entered into imder this section shall 
contain the same information that is required by paragraph (1) 
to be included in the solicitation of offers for that contract. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3263 
"(e) MULTIPLE AWARDS.—(1) The head of an executive agency 
may, on the basis of one solicitation, award separate task order 
contracts under this section for the same or similar services to 
two or more sources if the solicitation states that the head of 
the executive agency has the option to do so. 
"(2) If, in the case of a task order contract for advisory and 
assistance services to be entered into under the authority of this 
section, the contract period is to exceed three years and the contract 
amount is estimated to exceed $10,000,000 (including all options), 
the soUcitation shall— 
"(A) provide for a multiple award authorized under para-
graph (1); and 
"(B) include a statement that the head of the executive 
agency may also elect to award onlv one task order contract 
if the head of the executive agency determines in writing that 
only one of the oflFerers is capable of providing the services 
required at the level of quality required. 
"(3) Paragraph (2) does not apply in the case of a solicitation 
for which the head of the executive agency concerned determines 
in writing that, because the services required under the contract 
are unique or highly specialized, it is not practicable to award 
more than one contract. 
"(f) CONTRACT MODIFICATIONS.—(1) A task order may not 
increase the scope, period, or maximum value of the task order 
contract under which the order is issued. The scope, period, or 
maximum value of the contract may be increased only by modifica-
tion of the contract. 
"(2) Unless use of procediu"es other than competitive procedures 
is authorized by an exception in subsection (c) of section 303 and 
approved in accordsmce with subsection (f) of such section, competi-
tive procedures shall be used for making such a modification. 
"(3) Notice regarding the modification shall be provided in 
accordance with section 18 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 416) and section 8(e) of the Small Business 
Act (15 U.S.C. 637(e)). 
"(g) CONTRACT EXTENSIONS.—(1) Notwithstanding the Hmita-
tion on the contract period set forth in subsection (b) or in a 
solicitation or contract pursuant to subsection (e), a contract entered 
into by the head of an executive agency under this section may 
be extended on a sole-source basis for a period not exceeding six 
months if the head of such executive agency determines that— 
"(A) the award of a follow-on contract has been delayed 
by circumstances that were not reasonably foreseeable at the 
time the initial contract was entered into; and 
"(B) the extension is necessary in order to ensure continuity 
of the receipt of services pending the award of, and commence-
ment of performance under, the follow-on contract. 
"(2) A task order contract may be extended under the authority 
of paragraph (1) only once and only in accordance with the limita-
tions and requirements of this subsection. 
"(h) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section 
does not apply to a contract for the acquisition of property or 
services that includes acquisition of advisory and assistance services 
if the head of the executive agency entering into such contract 
determines that, under the contract, advisory and assistance serv-
ices are necessarily incident to, and not a significant component 
of, the contract. 
108 STAT. 3264 
PUBLIC LAW 103-355—OCT. 13, 1994 
"(i) ADVISORY AND ASSISTANCE SERVICES DEFINED.—In this sec-
tion, the term 'advisory and assistance services' has the meaning 
given such term in section 1105(g) of title 31, United States Code. 
41 use 253j. 
"SEC. 303J. TASK AND DELIVERY ORDER CONTRACTS: ORDERS. 
"(a) ISSUANCE OF ORDERS.—The following actions are not 
required for issuance of a task or deUvery order under a task 
or delivery order contract: 
"(1) A separate notice for such order under section 18 
of the Office of Federal Procurement Policy Act (41 U.S.C. 
416) or section 8(e) of the Small Business Act (15 U.S.C. 637(e)). 
"(2) Except as provided in subsection (b), a competition 
(or a waiver of competition approved in accordance with section 
303(f)) that is separate from that used for entering into the 
contract. 
"(b) MULTIPLE AWARD CoNTHACTS.^When multiple contracts 
are awarded under section 303H(d)(l)(B) or 3031(e), all contractors 
awarded such contracts shall be provided a fair opportunity to 
be considered, pursuant to procedures set forth in the contracts, 
for each task or deUvery order in excess of $2,500 that is to be 
issued under any of the contracts unless— 
"(1) the executive agency's need for the services or property 
ordered is of such unusual urgency that providing such oppor-
tunity to all such contractors would result in unacceptable 
delays in fulfilling that need; 
"(2) only one such contractor is capable of providing the 
services or property required at the level of quaUty required 
because the services or property ordered are unique or highly 
specialized; 
"(3) the task or delivery order should be issued on a sole-
source basis in the interest of economy and efficiency because 
it is a logical follow-on to a task or deUvery order already 
issued on a competitive basis; or 
"(4) it is necessary to place the order with a particular 
contractor in order to satisfy a minimum guarantee. 
"(c) STATEMENT OF WORK.—^A task or deUvery order shall 
include a statement of work that clearly specifies aU tasks to 
be performed or property to be deUvered under the order. 
"(d) PROTESTS.—^A protest is not authorized in connection with 
the issuance or proposed issuance of a task or delivery order except 
for a protest on the ground that the order increases the scope, 
period, or maximum value of the contract under which the order 
is issued. 
"(e) TASK AND DELIVERY ORDER OMBUDSMAN.—The head of 
each executive agency who awards multiple task or deUvery order 
contracts pursuant to section 303H(d)(l)(B) or 3031(e) shall appoint 
or designate a task and delivery order ombudsman who shedl be 
responsible for reviewing complaints from the contractors on such 
contracts and ensuring that all of the contractors are afforded 
a fair opportunity to be considered for task or delivery orders 
when required under subsection (b). The task and delivery order 
ombudsman shall be a senior agency official who is independent 
of the contracting officer for the contracts and may be the executive 
agencjr's competition advocate. 
"(f) APPLICABILITY.—^This section appUes to task and deUvery 
order contracts entered into under sections 303H and 3031. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3265 
'<SEC. 303K. TASK AND DELIVERY ORDER CONTRACTS: DEFINITIONS. 41 USC 253k. 
"In sections 303H, 3031, and 303J: 
"(1) The term 'task order contract' means a contract for 
services that does not procure or specify a firm quantity of 
services (other than a minimum or maximum quantity) and 
that provides for the issuance of orders for the performance 
of tasks during the period of the contract. 
"(2) The term 'deUvery order contract' means a contract 
for property that does not procure or specify a firm quantity 
of property (other than a minimum or maximum quantity) 
and that provides for the issuance of orders for the deUvery 
of property during the period of the contract.". 
(b) PROVISIONS NOT AFFECTED.—Nothing in section 303H, 3031, 4i use 253h 
303J, or 303K of the Federal Property and Administrative Services ^°*^-
Act of 1949, as added by subsection (a), shall be construed as 
modifying or superseding, or as intended to impair or restrict, 
authorities or responsibilities under— 
(1) the Brooks Automatic Data Processing Act (section 111 
of the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 759)); and 
(2) the Brooks Architect-Engineers Act (title DC of the Fed-
eral Property and Administrative Services Act of 1949 (40 
U.S.C. 541 et seq.)). 
SEC. 1055. ACQUISITION OF EXPERT SERVICES. 
(a) EXCEPTION TO REQUIREMENT FOR U S E OF COMPETITIVE 
PROCEDURES.—Section 303(c)(3) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253(c)) is amended— 
(1) by striking out "or (B)" and inserting in lieu thereof 
"(B)"; and 
(2) by inserting before the semicolon at the end the follow-
ing: ", or (C) to procure the services of an expert for use, 
in any htigation or dispute (including any reasonably foresee-
able litigation or dispute) involving the Federal Ciovemment, 
in any trial, hearing, or proceeding before any court, adminis-
trative tribunal, or agency, or in any part of an alternative 
dispute resolution process, whether or not the expert is expected 
to testify". 
(b) PROCUREMENT NOTICE.—(1) Section 18(cXl) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 416(c)) is amended— 
(A) by striking out "or" at the end of subparagraph (D); 
(B) by striking out the period at the end oi subparagraph 
(E) £uid inserting in lieu thereof"; or"; and 
(C) by adding at the end the following: 
"(F) the procurement is for the services of an expert for 
use in any litigation or dispute (including any reasonably 
foreseeable Utigation or dispute) involving the Federal Govern-
ment in any trial, hearing, or proceeding before any court, 
administrative tribunal, or agency, or in any part of an alter-
native dispute resolution process, whether or not the expert 
is expectea to testify.". 
(2) Section 8(gXl) of the Small Business Act (15 U.S.C. 637(c)) 
is amended— 
(A) by striking out "or" at the end of subparagraph (D); 
(B) by striking out the period at the end oi subparagraph 
(E) and inserting in lieu thereof"; or"; and 
(C) by adding at the end the following: 
108 STAT. 3266 
PUBLIC LAW 103-355—OCT. 13, 1994 
"(F) the procurement is for the services of an expert for 
use in any Htigation or dispute (including preparation for any 
foreseeable litigation or dispute) that involves or could involve 
the Federal (rovemment in any trial, hearing, or proceeding 
before any court, administrative tribunal, or agency, or in any 
part of an alternative dispute resolution process, whether or 
not the expert is expected to testify.". 
41 use 261. 
(c) REPEAL OF AMENDMENTS TO UNCODIFIED TITLE.—The follow-
ing provisions of law are repealed: 
(1) Section 532 of Public Law 101-509 (104 Stat. 1470) 
and the provision of law set out in quotes in that section. 
(2) Section 529 of Public Law 102-393 (106 Stat. 1761) 
and the matters inserted and added by that section. 
Subpart B—Planning, Solicitation, Evaluation, 
and Award 
SEC. 1061. SOLICITATION, EVALUATION, AND AWARD. 
(a) CONTENT OF SOLICITATION.—Subsection (b) of section 303A 
of the Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 253a) is amended— 
(1) in paragraph (1)— 
(A) by amending subparagraph (A) to read as follows: 
"(A) all significant factors and significant subfactors 
which the executive agency reasonably expects to consider 
in evaluating sealed bids (including price) or competitive 
' 
proposals (including cost or price, cost-related or price-
related factors and subfactors, and noncost-related or 
nonprice-related factors and subfactors); and"; and 
(B) in subparagraph (B), by inserting "and subfactors" 
after "factors"; and 
(2) in paragraph (2)(B), by amending clause (i) to read 
as follows: 
"(i) either a statement that the proposals are intended 
to be evaluated with, and award made after, discussions 
with the offerors, or a statement that the proposals are 
intended to be evaluated, and award made, without discus-
sions with the offerors (other thsui discussions conducted 
for the purpose of minor clarification) unless discussions 
are determined to be necessary; and". 
(b) EVALUATION FACTORS.—Such section is further amended 
by adding at the end the following new subsections: 
"(cXl) In prescribing the evaluation factors to be included in 
each solicitation for competitive proposals, an executive agency— 
"(A) shall clearly establish the relative importance assigned 
to the evaluation factors and subfactors, including the quality 
of the product or services to be provided (including technical 
capability, management capability, prior experience, and past 
performance of the offeror); 
"(B) shall include cost or price to the Federal Government 
as an evaluation factor that must be considered in the evalua-
tion ofproposals; and 
"(C) shall disclose to offerors whether all evaluation factors 
other than cost or price, when combined, are— 
"(i) significantly more important than cost or price; 
"(ii) approximately equal in importance to cost or price; 
or 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3267 
"(iii) significantly less important than cost or price. 
"(2) The regulations implementing subparagraph (C) of para-
graph (1) may not define the terms 'significantly more important' 
and 'significantly less important' as specific numeric weights that 
would be applied uniformly to all sohcitations or a class of solicita-
tions. 
"(d) Nothing in this section prohibits an executive agency 
from— 
"(1) providing additional information in a solicitation, 
including numeric weights for all evaluation factors and 
subfactors on a case-by-case basis; or 
"(2) stating in a solicitation that award will be made to 
the offeror that meets the solicitation's mandatory requirements 
at the lowest cost or price.". 
(c) EVALUATION AND AWARD.—Section 303B of the Federal Prop-
erty and Administrative Services Act of 1949 (41 U.S.C. 253b) 
is amended— 
(1) in subsection (a), by inserting *
*
, and award a contract," 
after "competitive proposals"; 
(2) in subsection (c), by inserting "in accordance with sub-
section (a)" in the second sentence after "shall evaluate the 
bids"; and 
(3) in subsection (d)— 
(A) by striking out paragraph (1) and inserting in 
lieu thereof the following: 
"(1) An executive agency shall evaluate competitive proposals 
in accordance with subsection (a) £uid may award a contract— 
"(A) after discussions with the offerors, provided that writ-
ten or oral discussions have been conducted with all responsible 
offerors who submit proposals within the competitive range; 
or 
"(B) based on the proposals received and without discus-
sions with the offerors (other than discussions conducted for 
the purpose of minor clarification), if, as required by section 
303A(b)(2)(B)(i), the soHcitation included a statement that 
proposals are intended to be evaluated, and award made, with-
out discussions, unless discussions are determined to be nec-
essary."; 
(B) by striking out paragraphs (2) and (3) £ind by 
redesignating paragraph (4) as paragraph (2); and 
(C) in paragraph (2), as redesignated by subparagraph 
(B), by inserting "cost or" before "price" in the first sen-
tence. 
SEC. 1062. SOLICITATION PROVISION REGARDING EVALUATION OF 
PURCHASE OPTIONS. 
Section 303A of the Federal Property and Administrative Serv-
ices Act of 1949 (41 U.S.C. 253a), as amended by section 1061, 
is further amended by adding at the end the following new sub-
section: 
"(e) An executive agency, in issuing a solicitation for a contract 
to be awarded using sealed bid procedures, may not include in 
such solicitation a clause providing for the evaluation of prices 
for options to purchase additional property or services under the 
contract unless the executive agency has determined that there 
is a reasonable likelihood that the options will be exercised.". 
108 STAT. 3268 
PUBLIC LAW 103-355—OCT. 13, 1994 
SEC. 1063. PROMPT NOTICE OF AWARD. 
(a) SEALED BID PROCEDURES.—Subsection (c) of section 303B 
of the Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 253b) is amended— 
(1) in the last sentence, by striking out "transmitting writ-
ten notice" and inserting in lieu thereof "transmitting, in writ-
ing or by electronic means, notice"; and 
(2) by adding at the end the following: "Within 3 days 
after the date of contract awara, the executive agency shall 
notify, in writing or by electronic means, each bidder not 
awarded the contract that the contract has been awarded.". 
(b) COMPETITIVE PROPOSALS PROCEDURES.—Paragraph (2) of 
subsection (d) of such section, as redesignated 
by section 
1061(c)(3)(B), is amended in the second sentence— 
(1) by striking out "transmitting written notice" and insert-
ing in lieu thereof "transmitting, in writing or by electronic 
means, notice"; and 
(2) by striking out "shall promptly notify" and inserting 
in lieu thereof ", within 3 days after the date of contract 
award, shall notify, in writing or by electronic means,". 
SEC. 1064. POST-AWARD DEBRIEFINGS. 
Section 303B of the Federal Property and Administrative Serv-
ices Act of 1949 (41 U.S.C. 253b) is amended— 
(1) by redesignating subsections (e) and (f) as subsections 
(f) and (g), respectively; and 
(2) by inserting after subsection (d) the following new sub-
section (e): 
"(e)(1) When a contract is awarded by the head of an executive 
agency on the basis of competitive proposals, an unsuccessful 
offeror, upon written request received by the agency within 3 days 
aft^er the date on which the unsuccessful offeror receives the notifica-
tion of the contract award, shall be debriefed and furnished the 
basis for the selection decision and contract award. The executive 
agency shall debrief the offeror within, to the maximum extent 
practicable, 5 days after receipt of the request by the executive 
agency. 
"(2) The debriefing shall include, at a minimum— 
"(A) the executive agenc/s evaluation of the significant 
weak or deficient factors in the offeror's offer; 
"(B) the overall evaluated cost and technical rating of the 
offer of the contractor awarded the contract and the overall 
evaluated cost and technical rating of the offer of the debriefed 
offeror; 
"(C) the overall ranking of all offers; 
"(D) a summary of the rationale for the award; 
"(E) in the case of a proposal that includes a commercial 
item that is an end item under the contract, the make and 
model of the item being provided in accordance with the offer 
of the contractor awarded the contract; and 
"(F) reasonable responses to relevant questions posed by 
the debriefed offeror as to whether source selection procedures 
set forth in the solicitation, applicable regulations, and other 
applicable authorities were followed by the executive agency. 
"(3) The debriefing may not include point-by-point comparisons 
of the debriefed offeror^s offer with other offers and may not disclose 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3269 
any information that is exempt from disclosure under section 552(b) 
of title 5, United States Code. 
"(4) Each solicitation for competitive proposals shall include 
a statement that information described in paragraph (2) may be 
disclosed in post-award debriefings. 
"(5) If, within one year after the date of the contract award 
and as a result of a successful procurement protest, the executive 
agency seeks to fulfill the requirement under the protested contract 
either on the basis of a new solicitation of offers or on the basis 
of new best and final offers requested for that contract, the head 
of such executive agency shall make available to all offerors— 
"(A) the information provided in debriefings under this 
subsection regarding the ofiTer of the contractor awarded the 
contract; and 
"(B) the same information that would have been provided 
to the original offerors. 
"(6) The contracting officer shall include a summary of the 
debriefing in the contract file.". 
SEC. 1065. PROTEST FILE. 
Section 303B of the Federal Property and Administrative Serv-
ices Act of 1949 (41 U.S.C. 253b), as amended by section 1064(1), 
is further amended by adding at the end the following: 
"(h) PROTEST FILE.—(1) If, in the case of a solicitation for 
a contract issued by, or an award or proposed award of a contract 
by, the head of an executive agency, a protest is filed pursuant 
to the procedures in subchapter V of chapter 35 of title 31, United 
States Code, and an actual or prospective offeror so requests, a 
file of the protest shall be established by the procuring activity 
and reasonable access shall be provided to actual or prospective 
offerors. 
"(2) Information exempt from disclosure under section 552 of 
title 5, United States Code, may be redacted in a file established 
pursuant to paragraph (1) unless an appUcable protective order 
provides otherwise. 
"(3) Regulations implementing this subsection shall be consist-
ent with the regulations regarding the preparation and submission 
of an agenc/s protest file (the so-called 'rule 4 file') for protests 
to the General Services Board of Contract Appe£ds under section 
111 of the Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 759).". 
SEC. 1066. AGENCY ACTIONS ON PROTESTS. 
Section 303B of the Federal Property and Administrative Serv-
ices Act of 1949 (41 U.S.C. 253b), as amended by section 1065, 
is further amended by adding at the end the following new sub-
section: 
"(i) AGENCY ACTIONS ON PROTESTS.—If, in connection with a 
protest, the head of an executive agency determines that a solicita-
tion, proposed award, or award does not comply with the require-
ments 01 law or regulation, the head of such executive agency— 
"(1) may take any action set out in subparagraphs (A) 
through (F) of subsection (b)(1) of section 3554 of title 31, 
United States Code; and 
"(2) may pay costs described in paragraph (1) of section 
3554(c) of such title within the limits referred to in paragraph 
(2) of such section.". 
108 STAT. 3270 
PUBLIC LAW 103-355—OCT. 13, 1994 
Subpart C—^Kinds of Contracts 
SEC. 1071. REPEAL OF AGENCY HEAD DETERMINATION REGARDING 
USE OF COST TYPE OR INCENTIVE CONTRACT. 
Section 304(b) of the Federal Property and Administrative Serv-
ices Act of 1949 (41 U.S.C. 254(b)) is amended by striking out 
the second sentence. 
SEC. 1072. MULTIYEAR CONTRACTING AUTHORITY. 
Title III of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 251 et seq.) is amended by inserting after 
section 304 the following new section: 
41 use 254c. 
"SEC. 304B. MULTIYEAR CONTRACTS. 
"(a) AUTHORITY.—An executive agency may enter into a 
multiyear contract for the acquisition of property or services if— 
"(1) funds are available and obligated for such contract, 
for the full period of the contract or for the first fiscal year 
in which the contract is in efiect, and for the estimated costs 
associated with any necessary termination of such contract; 
and 
"(2) the executive agency determines that— 
"(A) the need for the property or services is reasonably 
firm and continuing over the period of the contract; and 
"(B) a multiyear contract will serve the best interests 
of the United States by encouraging full and open competi-
tion or promoting economy in administration, performance, 
and operation of the agencjr's programs. 
"(b) TERMINATION CLAUSE.—^A multiyear contract entered into 
under the authority of this section shall include a clause that 
provides that the contract shall be terminated if funds are not 
made available for the continuation of such contract in any fiscal 
year covered by the contract. Amounts available for pa3dng termi-
nation costs shall remain available for such purpose imtil the costs 
associated with termination of the contract are paid. 
"(c) 
CANCELLATION 
CEILING NOTICE.—Before 
any 
contract 
described in subsection (a) that contains a clause setting forth 
a cancellation ceiling in excess of $10,000,000 may be awarded, 
the executive agency shall give written notification of the proposed 
contract and of the proposed cancellation ceiling for that contract 
to the Congress, and such contract may not then be awarded until 
the end of a period of 30 days beginning on the date of such 
notification. 
"(d) MULTIYEAR CONTRACT DEFINED.—For the purposes of this 
section, a multiyear contract is a contract for the purchase of 
property or services for more than one, but not more than five, 
program years. Such a contract may provide that performance under 
the contract during the second and subsequent years of the contract 
is contingent upon the appropriation of funds and (if it does so 
provide) may provide for a cancellation pa)nnent to be made to 
the contractor if such appropriations are not made. 
"(e) RULE OF CONSTRUCTION.—^Nothing in this section is 
intended to modify or affect any other provision of law that author-
izes multiyear contracts.**. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3271 
SEC. 1073. SEVERABLE SERVICES CONTRACTS CROSSING FISCAL 
YEARS. 
Title III of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 251 et seq.), as amended by section 1054, 
is further amended by inserting after section 3031 the following 
new section: 
"SEC. 303L. SEVERABLE SERVICES CONTRACTS FOR PERIODS CROSS- 
41 USC 253/. 
ING FISCAL YEARS. 
"(a) AUTHORITY.—The head of an executive agency may enter 
into a contract for procurement of severable services for a period 
that begins in one fiscal year and ends in the next fiscal year 
if (without regard to any option to extend the period of the contract) 
the contract period does not exceed one year. 
"(b) OBLIGATION OF FUNDS.—Funds made available for a fiscal 
year may be obligated for the total amount of a contract entered 
into under the authority of subsection (a).". 
SEC. 1074. ECONOMY ACT PURCHASES. 
31 USC 1535 
(a) REGULATIONS REQUIRED.—The Federal Acquisition Regula- 
^°^' 
tion shall be revised to include regulations governing the exercise 
of the authority under section 1535 of title 31, United States Code, 
for Federal agencies to purchase goods and services under contracts 
entered into or administered by other agencies. 
(b) CONTENT OF REGULATIONS.—^The regulations prescribed 
pursuant to subsection (a) shall— 
(1) require that each purchase described in subsection (a) 
be approved in advance by a contracting officer of the ordering 
agency with authority to contract for the goods or services 
to be purchased or by another official in a position specifically 
designated by regulation to approve such purchase; 
(2) provide that such a purchase of goods or services may 
be made only if— 
(A) the purchase is appropriately made under a con-
tract that the agency filling the purchase order entered 
into, before the purchase order, in order to meet the 
requirements of such agency for the same or similar goods 
( 
or services; 
(B) the agency filling the purchase order is better 
qualified to enter into or administer the contract for such 
goods or services by reason of capabilities or expertise 
that is not available within the ordering agency; or 
(C) the agency or unit filling the order is specifically 
authorized by law or regulations to purchase such goods 
or services on behalf of other agencies; 
(3) prohibit any such purchase under a contract or other 
agreement entered into or administered by an agency not cov-
ered by the provisions of chapter 137 of title 10, United States 
Code, or title III of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 251 et seq.) and not covered 
by the Federal Acquisition Regulation unless the purchase is 
approved in advsmce by the senior procurement official respon-
sible for purchasing by the ordering agency; and 
(4) prohibit any pajonent to the agency filling a purchase 
order of any fee that exceeds the actual cost or, if the actual 
cost is not known, the estimated cost of entering into and 
108 STAT. 3272 
PUBLIC LAW 103-355—OCT. 13, 1994 
administering the contract or other agreement under which 
the order is filled. 
(c) MONITORING SYSTEM REQUIRED.—The Administrator for 
Federal Procurement Policy shall ensure that, not later than one 
year after the date of the enactment of this Act, systems for collect-
ing and evaluating procurement data are capable of collecting and 
evaluating appropriate data on procurements conducted under the 
regulations prescribed pursuant to subsection (a). 
(d) TERMINATION.—^This section shall cease to be effective one 
year after the date on which final regulations prescribed pursuant 
to subsection (a) take effect. 
PART III—ACQUISITIONS GENERALLY 
SEC. 1091. POLICY REGARDING CONSIDERATION OF CONTRACTOR 
PAST PERFORMANCE. 
(a) POLICY.—Section 2 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 401) is amended— 
(1) by striking out "and" at the end of paragraph (12); 
(2) by striking out the period at the end of paragraph 
(13) and inserting in lieu thereof"; and"; and 
(3) by adding at the end the following new paragraph: 
"(14) establishing policies and procedures that encourage 
the consideration of the offerors' past performance in the selec-
tion of contractors.". 
41 use 405 note. 
(b) GUIDANCE REQUIRED.—(1) Congress makes the following 
findings: 
(A) Past contract performance of an oflFeror is one of the 
relevant factors that a contracting official of an executive 
agency should consider in awarding a contract. 
(B) It is appropriate for a contracting official to consider 
past contract performance of an offeror as an indicator of the 
likelihood that the offeror will successfully perform a contract 
to be awarded by that official. 
(2) Section 6 of the Office of Federal Procurement Policy Act 
(41 U.S.C. 405) is amended by adding at the end the following: 
"(j)(l) The Administrator shall prescribe for executive agencies 
guidance regarding consideration of the past contract performance 
of offerors in awarding contracts. The guidance shall include— 
"(A) standards for evaluating past performance with respect 
to cost (when appropriate), schedule, compliance with technical 
or functional specifications, and other relevant performance 
factors that facilitate consistent and fair evaluation by all 
executive agencies; 
"(B) policies for the collection and maintenance of informa-
tion on past contract performance that, to the msudmum extent 
practicable, facilitate automated collection, maintenance, and 
dissemination of information and provide for ease of collection, 
maintenance, and dissemination of information by other meth-
ods, as necessary; 
"(C) policies for ensuring that— 
(i) offerors are afforded an opportunity to submit rel-
evant information on past contract performance, including 
performance under contracts entered into by the executive 
agency concerned, contracts entered into by other depart-
ments and agencies of the Federal Government, contracts 
PUBLIC LAW 103-355—(Xrr. 13, 1994 
108 STAT. 3273 
entered into by agencies of State Eind local governments, 
and contracts entered into by commercial customers; and 
"(ii) such information submitted by offerors is consid-
ered; and 
"(D) the period for which information on past performance 
of offerors may be maintained and considered. 
"(2) In the case of an offeror with respect to which there 
is no information on past contract performance or with respect 
to which information on past contract performance is not available, 
the offeror may not be evaluated favorably or unfavorably on the 
factor of past contract performance.". 
SEC. 1092. REPEAL OF REQUIREMENT FOR ANNUAL REPORT ON COM-
PETITION. 
Section 23 of the Office of Federal Procurement Policy Act 
(41 U.S.C. 419) is repealed. 
SEC. 1093. DISCOURAGEMENT OF NONSTANDARD CONTRACT CLAUSES. 
The Office of Federal Procurement PoUcy Act (41 U.S.C. 401 
et seq.) is amended by adding at the end the following new section: 
"SEC. 29. NONSTANDARD CONTRACT CLAUSES. 
41 USC 425. 
"The Federal Acquisition Regulatory Council shall promulgate 
regulations to discourage the use of a nonstandard contract clause 
on a repetitive basis. The regulations shall include provisions that— 
"(1) clearly define what types of contract clauses are to 
be treated as nonstandard clauses; and 
"(2) require prior approval for the use of a nonstandard 
clause on a repetitive basis by an official at a level of respon-
sibiUty above the contracting officer.". 
Subtitle B—^Truth in Negotiations 
PART I—ARMED SERVICES ACQUISITIONS 
SEC. 1201. STABILIZATION OF DOLLAR THRESHOLD OF APPLICABILITY. 
(a) REPEAL OF REVERSION TO LOWER THRESHOLD.—Paragraph 
(1)(A) of section 2306a(a) of title 10, United States Code, is 
amended— 
(1) in clause (i), by striking out "and before January 1, 
1996,"; and 
(2) in clause (ii), by striking out "or after December 31, 
1995,". 
(b) ADJUSTMENTS FOR CHANGES IN DOLLAR VALUES.—Section 
2306a(a) of such title is amended by adding at the end the following 
new subparagraph: 
"(7) Effective on October 1 of each year that is divisible by 
5, each amount set forth in paragraph (1) shall be adjusted to 
the amount that is equal to the fiscsd year 1994 constant dollar 
value of the amount set forth. Any amount, as so adjusted, that 
is not evenhr divisible by $50,000 shall be rounded to the nearest 
multiple of $50,000. In the case of an amount that is evenly divisible 
by $25,000 but not evenly divisible by $50,000, the amount shall 
be rounded to the next higher multiple of $50,000.". 
(c) REPEAL.—^Paragraph (6) of section 2306a(a) of such title 
is amended— 
(1) by striking out "(A)"; and 
108 STAT. 3274 
PUBLIC LAW 103-355—OCT. 13, 1994 
(2) by striking out subparagraph (B). 
SEC. 1202. EXCEPnONS TO COST OR PRICING DATA REQUIREMENTS. 
(a) EXCEPTIONS STATED.—Subsection (b) of section 2306a of 
title 10, United States Code, is amended to read as follows: 
"(b) EXCEPTIONS.— 
"(1) IN GENERAL.—Submission of cost or pricing data shall 
not be required under subsection (a) in the case of a contract, 
a subcontract, or modification of a contract or subcontract— 
"(A) for which the price agreed upon is based on— 
"(i) adequate price competition; 
"(ii) established catedog or market prices of 
commercial items that are sold in substantial quan-
tities to the general public; or 
"(iii) prices set by law or regulation; or 
**(B) in an exceptional case when the head of the procur-
ing activity, without delegation, determines that the 
requirements of this section may be waived and justifies 
in writing the reasons for such determination. 
"(2) MODIFICATIONS OF CONTRACTS AND SUBCONTRACTS FOR 
COMMERCIAL ITEMS.—In the case of a modification of a contract 
or subcontract for a commercial item that is not covered by 
the prohibition on the submission of cost or pricing data in 
E
aragraph (1)(A), submission of cost or pricing data shall not 
e required imder subsection (a) if— 
"(A) the contract or subcontract being modified is a 
contract or subcontract for which submission of cost or 
pricing data may not be required by reason of paragraph 
(IXA); and 
"(B) the modification would not change the contract 
or subcontract, as the case may be, fi*om a contract or 
subcontract for the acquisition of a commercial item to 
a contract or subcontract for the acquisition of an item 
other than a commercial item.". 
"(3) FAR STANDARDS.— The Federal Acquisition Regulation 
shall provide clear standards for determining whether the 
exceptions provided in paragraph (1)(A) apply. In the case 
of the exception provided in paragraph (l)(A)(i), the regulations 
shall specify the criteria to be used to determine whether 
adequate price competition exists. In the case of the exception 
provided in paragraph (l)(A)(ii), the regulations shall provide 
that the exception applies to items that are sold in substantial 
quantities to the general public, without regard to the quantity 
of items that may be sold to the Federal Government.". 
(b) CONFORMING AMENDMENT TO REFERENCE.—Subsection (aX5) 
of such section is amended by striking out "subsection (b)(2)'* and 
inserting in Ueu thereof "subsection (b)(1)(B)''. 
SEC. 1203. RESTRICTIONS ON ADDITIONAL AUTHORITY TO REQUIRE 
COST OR PRICING DATA OR OTHER INFORMATION. 
Subsection (c) of section 2306a of title 10, United States Code, 
is amended to read as follows: 
"(c) RESTRICTIONS ON ADDITIONAL AUTHORITY TO REQUIRE COST 
OR PRICING DATA OR OTHER INFORMATION.— 
"(1) AUTHORITY TO REQUIRE COST OR PRICING DATA ON 
BELOW-THRESHOLD CONTRACTS.—(A) Subject to subparagraph 
(B), when cost or pricing data are not required to be submitted 
by subsection (a) for a contract, subcontract, or modification 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3275 
of a contract or subcontract, such data may nevertheless be 
required to be submitted by the head of the procuring activity, 
but only if the head of the procuring activity determines that 
such data are necessary for the evaluation by the agency of 
the reasonableness of the price of the contract, subcontract, 
or modification of a contract or subcontract. In any case in 
which the head of the procuring activity requires such data 
to be submitted under this subsection, the head of the procuring 
activity shall justify in writing the reason for such requirement. 
"(B) The head of the procuring activity may not require 
certified cost or pricing data to be submitted under this para-
graph for any contract or subcontract, or modification of a 
contract or subcontract, covered by the exceptions in subsection 
(b)(1)(A). 
"(C) The head of a procuring activity may not delegate 
functions under this paragraph. 
"(2) AUTHORITY TO REQUIRE INFORMATION OTHER THAN CER-
TIFIED COST OR PRICING DATA.—^When certified cost or pricing 
data are not required to be submitted under this section for 
a contract, subcontract, or modification of a contract or sub-
contract, the head of the procuring activity may require submis-
sion of data other than certified cost or pricing data to the 
extent necessary to determine the reasonableness of the price 
of the contract, subcontract, or modification of the contract 
or subcontract.". 
SEC. 1204. ADDITIONAL SPECIAL RULES FOR COMMERCIAL ITEMS. 
Section 2306a of title 10, United States Code, is amended— 
(1) by redesignating subsections (d), (e), (f), and (g) as 
subsections (e), (f), (g), and (i), respectively; sind 
(2) by inserting after subsection (c) the following new sub-
section (d): 
"(d) ADDITIONAL EXCEPTION PROVISIONS REGARDING COMMER-
CIAL ITEMS.— 
"(1) PROCUREMENTS BASED ON ADEQUATE PRICE COMPETI-
TION.—^To the maximum extent practicable, the head of an 
agency shall conduct procurements of commercial items on a 
competitive basis. In any procurement of a commercial item 
conducted on a competitive basis £ind based upon adequate 
price competition, the head of the agency conducting the 
procurement shall not require cost or pricing data to be submit-
ted under subsection (a) for the contract, subcontract, or modi-
fication of the contract or subcontract under the procurement. 
If additional information is necessary to determine the reason-
ableness of the price of the contract, subcontract, or modifica-
tion, the head of the agency shall, to the maximum extent 
practicable, obtain the additional information from sources 
other than the offeror. 
"(2) PROCUREMENTS NOT BASED ON ADEQUATE PRICE COM-
PETITION.—(A)(i) In any case in which it is not practicable 
to conduct a procurement of a commercial item covered by 
subsection (a) on a competitive basis, and the procurement 
is not covered by an exception in subsection (b), the contracting 
officer shall seek to obtain from the offeror or contractor 
information described in clause (ii). When such information 
is not available from that source, the contracting officer shall 
seek to obtain such information from another source or sources. 
79-194 O—95—21 : QL 3 Part 4 
108 STAT. 3276 
PUBLIC LAW 103-355—CXTT. 13, 1994 
"(ii) The information referred in clause (i) is information 
on prices at which the same item or similar items have been 
sold in the commercial market that is adequate for evaluating, 
through price analysis, the reasonableness of the price of the 
contract, subcontract, or modification of the contract or sub-
contract under the procurement. 
"(B) The contracting oflEicer shall exempt a contract, sub-
contract, or modification of a contract or subcontract under 
the procurement from the requirements of subsection (a) if 
the contracting officer obtains the information described in 
subparagraph (A)(ii) in accordance with standards and proce-
dures set forth in the Federal Acquisition Regulation. 
"(C) A contracting officer may require submission of cost 
or pricing data under subsection (a) only if the contracting 
officer makes a written determination that the agency is unable 
to obtain the information described in subparagraph (A)(ii). 
"(3) AUTHORITY TO AUDIT.—(A) In accordance with proce-
dures prescribed in the Federal Acquisition Regulation, the 
head of an agency is authorized to examine all information 
provided by an offeror, contractor, or subcontractor pursuant 
to paragraph (2)(A) and all books and records of such offeror, 
contractor, or subcontractor that directly relate to such informa-
tion in order to determine whether the agency is receiving 
accurate information required under this subsection. 
"(B) The right under subparagraph (A) shall expire 2 years 
after the date of award of the contract, or 2 years after the 
date of the modification of the contract, with respect to which 
the information was provided. 
"(4) LIMITATIONS ON REQUESTS FOR DATA.—The Federal 
Acquisition Regulation shall include reasonable limitations on 
requests under this section for sales data relating to commercial 
items. 
"(5) FORM OF INFORMATION.—In requesting information 
from an offeror under this subsection, a contracting officer 
shall, to the maximum extent practicable, limit the scope of 
the request to include only information that is in the form 
regularly maintained by the offeror in commercial operations. 
"(6) CONFIDENTIALITY.—^Any information received under 
this subsection that is exempt from disclosure under section 
552(b) of title 5 shall not be disclosed by the Federal Grovem-
ment.". 
SEC. 1206. RIGHT OF UNITED STATES TO EXAMINE CONTRACTOR 
RECORDS. 
Section 2306a of title 10, United States Code, is amended 
by striking out subsection (g), as redesignated by section 1204(1), 
and inserting in Heu thereof the following: 
"(g) RIGHT OF UNITED 
STATES TO EXAMINE 
CONTRACTOR 
RECORDS.—For the purpose of evaluating the accuracy, complete-
ness, and currency of cost or pricing data required to be submitted 
by this section, the head of an agency shall have the authority 
provided by section 2313(aX2) of this title.". 
SEC. 1206. REQUIRED REGULATIONS. 
Section 2306a of title 10, United States Code, as amended 
by sections 1204 and 1205, is further amended by inserting after 
subsection (g) the following new subsection: 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3277 
"(h) REQUIRED REGULATIONS.—The Federal Acquisition Regula-
tion shall contain provisions concerning the types of information 
that offerors must submit for a contracting officer to consider in 
determining whether the price of a procurement to the Grovernment 
is fair and reasonable when certified cost or pricing data are not 
required to be submitted under this section because the price of 
the procurement to the United States is not expected to exceed 
the applicable threshold amount set forth in subsection (a) (as 
adjusted pursuant to paragraph (7) of such subsection). Such 
information, at a minimum, shall include appropriate information 
on the prices at which the same item or similar items have pre-
viously been sold that is adequate for evaluating the reasonableness 
of the price of the proposed contract or subcontract for the procure-
ment.". 
SEC. 1207. CONSISTENCY OF TIME REFERENCES. 
Section 2306a of title 10, United States Code, as amended 
by section 1204(1), is further amended in subparagraphs (A)(ii) 
and (B)(ii) of subsection (e)(4), by inserting "or, if applicable consist-
ent with paragraph (1)(B), another date agreed upon between the 
parties," after "(or price of the modification)". 
SEC. 1208. EXCEPTION FOR TRANSFERS BETWEEN DIVISIONS, SUBSIDI-
ARIES, AND AFFILIATES. 
Subsection (i) of section 2306a of title 10, United States Code, 
as redesignated by section 1204(1), is amended to read as follows: 
"(i) DEFINITIONS.—In this section: 
"(1) COST OR PRICING DATA.—The term 'cost or pricing 
data' means all facts that, as of the date of agreement on 
the price of a contract (or the price of a contract modification), 
or, if applicable consistent with subsection (e)(1)(B), another 
date agreed upon between the parties, a prudent buyer or 
seller would reasonably expect to affect price negotiations 
significantly. Such term does not include information that is 
judgmental, but does include the factual information fi'om which 
a judgment was derived. 
"(2) SUBCONTRACT.—^The term 'subcontract' includes a 
transfer of commercial items between divisions, subsidiaries, 
or affiliates of a contractor or a subcontractor. 
"(3) COMMERCIAL ITEM.—^The term 'commercial item' has 
the meaning provided such term in section 4(12) of the Office 
of Federal Procurement Policy Act.". 
SEC. 1209. COVERAGE OF COAST GUARD AND NASA FOR INTEREST 
AND PAYMENTS ON CERTAIN OVERPAYMENTS. 
Paragraph (1) of subsection (f) of section 2306a of title 10, 
United States Code, as redesignated by section 1204(1), is Eunended 
by striking out "with the Department of Defense" in the matter 
preceding subparagraph (A). 
SEC. 1210. REPEAL OF SUPERSEDED PROVISION. 
Subsections (b) and (c) of section 803 of Public Law 101-
510 (10 U.S.C. 2306a note) are repealed. 
108 STAT. 3278 
PUBLIC LAW 103-355—OCT. 13,1994 
PART II—CIVILIAN AGENCY ACQUISITIONS 
SEC. 1251. REVISION OF CIVILIAN AGENCY PROVISIONS TO ENSURE 
UNIFORM TREATMENT OF COST OR PRICING DATA. 
(a) REVISION.—^Title III of the Federal Property and Administra-
tive Services Act of 1949 is amended— 
(1) in section 304 (41 U.S.C. 254), by striking out subsection 
(d); and 
(2) by inserting before section 304B, as added by section 
1072, the following new section: 
41 use 254b. 
"SEC. 304A. COST OR PRICING DATA: TRUTH IN NEGOTIATIONS. 
"(a) REQUIRED COST OR PRICING DATA AND CERTIFICATION.— 
(1) The head of an executive agency shall require offerors, contrac-
tors, and subcontractors to make cost or pricing data available 
as follows: 
"(A) An offeror for a prime contract under this title to 
be entered into using procedures other than sealed-bid proce-
dures shall be required to submit cost or pricing data before 
the award of a contract if— 
"(i) in the case of a prime contract entered into after 
the date of the enactment of the Federal Acquisition 
StrefimUning Act of 1994, the price of the contract to the 
United States is expected to exceed $500,000; and 
"(ii) in the case of a prime contract entered into on 
or before the date of the enactment of the Federal Acquisi-
tion Streamlining Act of 1994, the price of the contract 
to the United States is expected to exceed $100,000. 
"(B) The contractor for a prime contract under this title 
shall be required to submit cost or pricing data before the 
pricing of a change or modification to the contract if— 
"(i) in the case of a change or modification made to 
a prime contract referred to in subparagraph (A)(i), the 
price adjustment is expected to exceed $500,000; 
"(ii) in the case of a change or modification made 
to a prime contract that was entered into on or before 
the (fate of the enactment of the Federal Acquisition 
Streamlining Act of 1994, and that has been modified 
pursuant to paragraph (6), the price adjustment is expected 
to exceed $500,000; and 
"(iii) in the case of a change or modification not covered 
by clause (i) or (ii), the price adjustment is expected to 
exceed $100,000. 
"(C) An offeror for a subcontract (at any tier) of a contract 
under this title shall be required to submit cost or pricing 
data before the award of the subcontract if the prime contractor 
and each higher-tier subcontractor have been required to make 
available cost or pricing data under this section and— 
"(i) in the case of a subcontract imder a prime contract 
referred to in subparagraph (A)(i), the price of the sub-
contract is expectea to exceed $500,()00; 
"(ii) in the case of a subcontract entered into under 
a prime contract that was entered into on or before the 
date of the enactment of the Federal Acquisition Streamlin-
ing Act of 1994, and that has been modified pursuant 
to paragraph (6), the price of the subcontract is expected 
to exceed $500,000; and 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3279 
"(iii) in the case of a subcontract not covered by clause 
(i) or (ii), the price of the subcontract is expected to exceed 
$100,000. 
"(D) The subcontractor for a subcontract covered by 
subparagraph (C) shall be required to submit cost or pricing 
data before the pricing of a change or modification to the 
subcontract if— 
"(i) in the case of a change or modification to a sub-
contract referred to in subparagraph (C)(i) or (C)(ii), the 
price adjustment is expected to exceed $500,000; and 
"(ii) in the case of a change or modification to a sub-
contract referred to in subparagraph (C)(iii), the price 
adjustment is expected to exceed $100,000. 
"(2) A person required, as an offeror, contractor, or subcontrac-
tor, to submit cost or pricing data under paragraph (1) (or required 
by the head of the procuring activity concerned to submit such 
data under subsection (c)) shall be required to certify that, to 
the best of the person's knowledge and belief, the cost or pricing 
data submitted are accurate, complete, and current. 
"(3) Cost or pricing data required to be submitted under para-
graph (1) (or under subsection (c)), and a certification required 
to be submitted under paragraph (2), shall be submitted— 
"(A) in the case of a submission by a prime contractor 
(or an offeror for a prime contract), to the contracting officer 
for the contract (or to a designated representative of the 
contracting officer); or 
"(B) in the case of a submission by a subcontractor (or 
an offeror for a subcontract), to the prime contractor. 
"(4) Except as provided under subsection (b), this section applies 
to contracts entered into by the head of an executive agency on 
behalf of a foreign government. 
"(5) For purposes of paragraph (1)(C), a contractor or sub-
contractor granted a waiver under subsection (b)(1)(B) shall be 
considered as having been required to make available cost or pricing 
data under this section. 
"(6) Upon the request of a contractor that was required to 
submit cost or pricing data under paragraph (1) in connection 
with a prime contract entered into on or before the date of the 
enactment of the Federal Acquisition Streamlining Act of 1994, 
the head of the executive agency that entered into such contract 
shall modify the contract to reflect subparagraphs (B)(ii) and (C)(ii) 
of paragraph (1). All such modifications shsdl be made without 
requiring consideration. 
"(7) Effective on October 1 of each year that is divisible by 
5, each amount set forth in paragraph (1) shall be adjusted to 
the amount that is equal to the fiscal year 1994 constant dollar 
value of the amoimt set forth. Any amount, as so adjusted, that 
is not evenly divisible by $50,000 shall be rounded to the nearest 
multiple of $50,000. In the case of an amount that is evenly divisible 
by $25,000 but not evenly divisible by $50,000, the amount shall 
be rounded to the next higher multiple of $50,000. 
"(b) EXCEPTIONS.— 
"(1) IN GENERAL.—Submission of cost or pricing data shall 
not be required under subsection (a) in the case of a contract, 
a subcontract, or a modification of a contract or subcontract— 
"(A) for which the price agreed upon is based on— 
"(i) adequate price competition; 
108 STAT. 3280 
PUBLIC LAW 103-355—OCT. 13, 1994 
"(ii) established catalog or market prices of 
commercial items that are sold in substantial quan-
tities to the general public; or 
"(iii) prices set by law or regulation; or 
"(B) in an exceptional case when the head of the procur-
ing activity, without delegation, determines that the 
requirements of this section may be waived and justifies 
in writing the reasons for such determination. 
"(2) MODIFICATIONS OF CONTRACTS AND SUBCONTRACTS FOR 
COMMERCIAL ITEMS.—In the case of a modification of a contract 
or subcontract for a commercial item that is not covered by 
the prohibition on the submission of cost or pricing data in 
paragraph (1)(A), submission of cost or pricing data shall not 
be required under subsection (a) if— 
"(A) the contract or subcontract being modified is a 
contract or subcontract for which submission of cost or 
pricing data may not be required by reason of paragraph 
(1)(A); and 
"(B) the modification would not change the contract 
or subcontract, as the case may be, from a contract or 
subcontract for the acquisition of a commercial item to 
a contract or subcontract for the acquisition of an item 
other than a commercial item. 
"(3) FAR STANDARDS.—The Federal Acquisition Regulation 
shall provide clear standards for determining whether the 
exceptions provided in paragraph (1)(A) apply. In the case 
of the exception provided in paragraph (l)(A)(i), the regulations 
shall specify the criteria to be used to determine whether 
adequate price competition exists. In the case of the exception 
provided in paragraph (l)(A)(ii), the regulations shall provide 
that the exception applies to items that are sold in substantial 
quantities to the general public, without regard to the quantity 
of items that may be sold to the Federal Government. 
"(c) RESTRICTIONS ON ADDITIONAL AUTHORITY To REQUIRE COST 
OR PRICING DATA OR OTHER INFORMATION.— 
"(1) AUTHORITY TO REQUIRE COST OR PRICING DATA ON 
BELOW-THRESHOLD CONTRACTS.—(A) Subject to subparagraph 
(B), when cost or pricing data are not required to be submitted 
by subsection (a) for a contract, subcontract, or modification 
of a contract or subcontract, such data may nevertheless be 
required to be submitted by the head of the procuring activity, 
but only if the head of the procuring activity determines that 
such data are necessary for the evaluation by the agency of 
the reasonableness of the price of the contract, subcontract, 
or modification of a contract or subcontract. In any case in 
which the head of the procuring activity requires such data 
to be submitted under this subsection, the head of the procuring 
activity shall justify in writing the reason for such requirement. 
"(B) The head of the procuring activity may not require 
certified cost or pricing data to be submitted under this para-
graph for any contract or subcontract, or modification of a 
contract or subcontract, covered by the exceptions in subsection 
(b)(lXA). 
"(C) The head of a procuring activity may not delegate 
the functions under this paragraph. 
"(2) AUTHORITY TO REQUIRE INFORMATION OTHER THAN CER-
TIFIED COST OR PRICING DATA.—^When certified cost or pricing 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3281 
data are not required to be submitted under this section for 
a contract, subcontract, or modification of a contract or sub- 
? 
contract, the head of the procuring activity may require submis-
sion of data other than certified cost or pricing data to the 
extent necessary to determine the reasonableness of the price 
of the contract, subcontract, or modification of the contract 
or subcontract. 
"(d) ADDITIONAL EXCEPTION PROVISIONS REGARDING COMMER-
CIAL ITEMS.— 
"(1) PROCUREMENTS BASED ON ADEQUATE PRICE COMPETI-
TION.—To the maximum extent practicable, the head of an 
executive agency shall conduct procurements of commercial 
items on a competitive basis. In any procurement of a commer-
cial item conducted on a competitive basis and based upon 
adequate price competition, the head of the executive agency 
conducting the procurement shall not require cost or pricing 
data to be submitted under subsection (a) for the contract, 
subcontract, or modification of the contract or subcontract under 
the procurement. If additional information is necessary to deter-
mine the reasonableness of the price of the contract, sub-
contract, or modification of the contract or subcontract, the 
head of the executive agency shall, to the maximum extent 
practicable, obtain the additional information from sources 
other than the offeror. 
"(2) PROCUREMENTS NOT BASED ON ADEQUATE PRICE COM-
PETITION,—(A)(i) In any case in which it is not practicable 
to conduct a procurement of a commercial item covered by 
subsection (a) on a competitive basis, and the procurement 
is not covered by an exception in subsection (b), the contracting 
officer shall seek to obtain from the offeror or contractor 
information described in clause (ii). When such information 
is not available fi*om that source, the contracting officer shall 
seek to obtain such information from another source or sources. 
"(ii) The information referred in clause (i) is information 
on prices at which the same item or similar items have been 
sold in the commercial market that is adequate for evaluating, 
through price analysis, the reasonableness of the price of the 
contract, subcontract, or modification of the contract or sub-
contract under the procurement. 
"(B) The contracting officer shall exempt a contract, sub-
contract, or modification of a contract or subcontract under 
the procurement from the requirements of subsection (a) if 
the contracting officer obtains the information described in 
subparagraph (A)(ii) in accordance with standards and proce-
dures set forth in the Federal Acquisition Regulation. 
"(C) A contracting officer may require submission of cost 
or pricing data under subsection (a) only if the contracting 
officer makes a written determination that the agency is unable 
to obtain the infonnation described in subparagraph (A)(ii). 
"(3) AUTHORITY TO AUDIT.—(A) In accordance with proce-
dures prescribed in the Federal Acquisition Regulation, the 
head of an executive agency is authorized to examine all 
information provided by an offeror, contractor, or subcontractor 
pursuant to paragraph (2)(A) and all books and records of 
such offeror, contractor, or subcontractor that directly relate 
to such information in order to determine whether the agency 
is receiving accurate information required under this section. 
108 STAT. 3282 
PUBLIC LAW 103-355—OCT. 13, 1994 
"(B) The right under subparagraph (A) shall expire 2 years 
after the date of award of the contract, or 2 years after the 
date of the modification of the contract, with respect to which 
the information was provided. 
"(4) LIMITATIONS ON REQUESTS FOR DATA.—The Federal 
Acquisition Regulation shall include reasonable limitations on 
requests under this subsection for sales data relating to 
commercial items. 
"(5) FORM OF INFORMATION.—In requesting information 
from an offeror under this subsection, a contracting officer 
shall, to the maximum extent practicable, limit the scope of 
the request to include only information that is in the form 
regularly maintained by the offeror in commercial operations. 
"(6) CONFIDENTIALITY.—^Any information received under 
this subsection that is exempt from disclosure under section 
552(b) of title 5 shall not be disclosed by the Federal Govern-
ment. 
"(e) PRICE REDUCTIONS FOR DEFECTIVE COST OR PRICING 
DATA.—(1)(A) A prime contract (or change or modification to a 
prime contract) under which a certificate under subsection (a)(2) 
is required shall contain a provision that the price of the contract 
to the United States, including profit or fee, shall be adjusted 
to exclude any significant amount by which it may be determined 
by the head of the executive agency that such price was increased 
because the contractor (or any subcontractor required to make 
available such a certificate) submitted defective cost or pricing 
data. 
"(B) For the purposes of this section, defective cost or pricing 
data are cost or pricing data which, as of the date of agreement 
on the price of the contract (or another date agreed upon between 
the parties), were inaccurate, incomplete, or noncurrent. If for pur-
poses of the preceding sentence the parties agree upon a date 
other than the date of agreement on the price of the contract, 
the date agreed upon by the parties shall be as close to the date 
of agreement on the price of the contract as is practicable. 
"(2) In determining for purposes of a contract price adjustment 
under a contract provision required by paragraph (1) whether, 
and to what extent, a contract price was increased because the 
contractor (or a subcontractor) submitted defective cost or pricing 
data, it shall be a defense that the United States did not rely 
on the defective data submitted by the contractor or subcontractor. 
"(3) It is not a defense to an adjustment of the price of a 
contract under a contract provision required by paragraph (1) that— 
"(A) the price of the contract would not have been modified 
even if accurate, complete, and current cost or pricing data 
had been submitted by the contractor or subcontractor because 
the contractor or subcontractor— 
"(i) was the sole source of the property or services 
procured; or 
"(ii) otherwise was in a superior bargaining position 
with respect to the property or services procured; 
"(B) the contracting officer should have known that the 
cost or pricing data in issue were defective even though the 
contractor or subcontractor took no affirmative action to bring 
the character of the data to the attention of the contracting 
officer; 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3283 
"(C) the contract was based on an agreement between 
the contractor and the United States about the total cost of 
the contract and there was no agreement about the cost of 
each item procured under such contract; or 
"(D) the prime contractor or subcontractor did not submit 
a certification of cost or pricing data relating to the contract 
as required under subsection (a)(2). 
"(4)(A) A contractor shall be allowed to offset an amount against 
the amount of a contract price adjustment under a contract provi-
sion required by paragraph (1) if— 
"(i) the contractor certifies to the contracting officer (or 
to a designated representative of the contracting officer) that, 
to the best of the contractor's knowledge and belief, the contrac-
tor is entitled to the offset; and 
"(ii) the contractor proves that the cost or pricing data 
were avEiilable before the date of agreement on the price of 
the contract (or price of the modification), or, if applicable 
consistent with paragraph (1)(B), another date agreed upon 
between the parties, and that the data were not submitted 
as specified in subsection (a)(3) before such date. 
"(B) A contractor shall not be allowed to offset an amount 
otherwise authorized to be offset under subparagraph (A) if— 
"(i) the certification under subsection (a)(2) with respect 
to the cost or pricing data involved was known to be mlse 
when signed; or 
"(ii) the United States proves that, had the cost or pricing 
data referred to in subparagraph (A)(ii) been submitted to 
the United States before the date of agreement on the price 
of the contract (or price of the modification) or, if applicable 
under paragraph (1)(B), another date agreed upon between 
the parties, the submission of such cost or pricing data would 
not have resulted in an increase in that price in the amount 
to be offset. 
"(f) INTEREST AND PENALTIES FOR CERTAIN OVERPAYMENTS.— 
(1) If the United States makes an overpayment to a contractor 
under a contract with an executive agency subject to this section 
and the overpayment was due to the submission by the contractor 
of defective cost or pricing data, the contractor shall be liable 
to the United States— 
"(A) for interest on the amount of such overpa3anent, to 
be computed— 
"(i) for the period beginning on the date the overpay-
ment was made to the contractor and ending on the date 
the contractor repays the amoimt of such overpayment 
to the United States; and 
"(ii) at the current rate prescribed by the Secretary 
of the Treasury under section 6621 of the Internal Revenue 
Code of 1986; and 
"(B) if the submission of such defective data was a knowing 
submission, for an additional amount equal to the amount 
of the overpayment. 
"(2) Any liability under this subsection of a contractor that 
submits cost or pricing data but refuses to submit the certification 
required by subsection (a)(2) with respect to the cost or pricing 
data shall not be affected by the refusal to submit such certification. 
"(g) 
RIGHT OF UNITED STATES TO EXAMINE CONTRACTOR 
RECORDS.—For the purpose of evaluating the accuracy, complete-
108 STAT. 3284 
PUBLIC LAW 103-355—OCT. 13, 1994 
ness, and currency of cost or pricing data required to be submitted 
by this section, an executive agency shall have the authority pro-
vided by section 304C(a)(2). 
"(h) REQUIRED REGULATIONS.—The Federal Acquisition Regula-
tion shall include regulations concerning the types of information 
that offerors must submit for a contracting officer to consider in 
determining whether the price of a procurement to the (government 
is fair and reasonable when certified cost or pricing data are not 
required to be submitted under this section because the price of 
the procurement to the United States is not expected to exceed 
the applicable threshold amount set forth in subsection (a) (as 
adjusted pursuant to paragraph (7) of such subsection). Such 
information, at a minimum, shall include appropriate information 
on the prices at which the same item or similar items have pre-
viously been sold that is adequate for evaluating the reasonableness 
of the price of a proposed contract or subcontract for the procure-
ment. 
"(i) DEFINITIONS.—In this section: 
"(1) COST OR PRICING DATA.—The term 'cost or pricing 
data' moEuis all facts that, as of the date of agreement on 
the price of a contract (or the price of a contract modification) 
or, if applicable consistent with subsection (e)(1)(B), another 
date agreed upon between the parties, a prudent buyer or 
seller would reasonably expect to affect price negotiations 
significantly. Such term does not include information that is 
judgmental, but does include the factual information from which 
a judgment was derived. 
"(2) SUBCONTRACT.—^The term 'subcontract' includes a 
transfer of commercial items between divisions, subsidiaries, 
or affiliates of a contractor or a subcontractor. 
"(3) COMMERCIAL ITEM.—^The term 'commercial item' has 
the meaning provided such term by section 4(12) of the Office 
of Federal Procurement Policy Act.". 
41 use 254b 
(b) APPLICABILITY.—Subsection (a) of section 304A of the Office 
of Federal Procurement Policy Act, as added by subsection (a), 
shall apply according to the provisions thereof on and after the 
date of the enactment of this Act, notwithstanding section 10001(b). 
SEC. 1252. REPEAL OF OBSOLETE PROVISION. 
Section 303E of the Federal Property and Administrative Serv-
ices Act of 1949 (41 U.S.C. 253e) is repealed. 
Subtitle C—Research and Development 
SEC. 1301. RESEARCH PROJECTS. 
(a) GENERAL AUTHORITY.—Section 2358 of title 10, United 
States Code, is amended to read as follows: 
*
*
§ 2358. Research and development projects 
"(a) AUTHORITY.—^The Secretary of Defense or the Secretary 
of a military department may engage in basic research, appUed 
research, advanced research, and development projects that— 
"(1) are necessary to the responsibilities of such Secretarjr's 
department in the field of research and development; and 
"(2) either— 
"(A) relate to weapon systems and other military needs; 
or 
note. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3285 
"(B) are of potential interest to the Department of 
Defense. 
"(b) AUTHORIZED MEANS.—The Secretary of Defense or the Sec-
retary of a military department may perform research and develop-
ment projects— 
"(1) by contract, cooperative agreement, or grant, in accord-
ance with chapter 63 of title 31; 
"(2) through one or more military departments; 
"(3) by using employees and consultsuits of the Department 
of Defense; or 
"(4) by mutual agreement with the head of any other 
department or agency of the Federal Government. 
"(c) 
REQUIREMENT OF POTENTIAL DEPARTMENT OF DEFENSE 
INTEREST.—Funds appropriated to the Department of Defense or 
to a military department may not be used to finance any research 
project or study unless the project or study is, in the opinion 
of the Secretary of Defense or the Secretary of that military depart-
ment, respectively, of potential interest to the Department of 
Defense or to such military department, respectively. 
"(d) 
ADDITIONAL PROVISIONS APPLICABLE TO COOPERATIVE 
AGREEMENTS.—^Additional authorities, conditions, and requirements 
relating to certain cooperative agreements authorized by this section 
are provided in section 2371 of this title.". 
(b) TRANSACTIONS OTHER THAN CONTRACTS AND GRANTS.—Sec-
tion 2371 of such title is amended to read as follows: 
"§ 2371. Research projects: transactions other than contracts 
and grants 
"(a) ADDITIONAL FORMS OF TRANSACTIONS AUTHORIZED.—The 
Secretary of Defense and the Secretary of each military department 
may enter into transactions (other than contracts, cooperative agree-
ments, and grants) under the authority of this subsection in carry-
ing out basic, applied, and advanced research projects. The authority 
under this subsection is in addition to the authority provided in 
section 2358 of this title to use contracts, cooperative agreements, 
and grants in carrying out such projects. 
"(b) 
EXERCISE OF AUTHORITY BY SECRETARY OF DEFENSE.— 
In any exercise of the authority in subsection (a), the Secretary 
of Defense shall act through the Advanced Research Projects Agency 
or any other element of the Department of Defense that the Sec-
retary may designate. 
"(c) ADVANCE PAYMENTS.—^The authority provided under sub-
section (a) may be exercised without regard to section 3324 of 
title 31. 
"(d) RECOVERY OF FUNDS.—(1) A cooperative agreement for 
performance of basic, applied, or advanced research authorized by 
section 2358 of this title and a transaction authorized by subsection 
(a) may include a clause that requires a person or other entity 
to make payments to the Department of Defense or any other 
department or agency of the Federsd Grovemment as a condition 
for receiving support under the agreement or other transaction. 
"(2) The amount of any pa3nnent received by the Federal 
Government pursuant to a requirement imposed under paragraph 
(1) may be credited, to the extent authorized by the Secretary 
of Defense, to the appropriate account established under subsection 
(f). Amounts so credited shall be merged with other funds in the 
108 STAT. 3286 
PUBLIC LAW 103-355—OCT. 13, 1994 
account and shall be available for the same purposes and the 
same period for which other funds in such account are available. 
"(e) CONDITIONS.—^The Secretary of Defense shall ensure that— 
"(1) to the maximum extent practicable, no cooperative 
agreement containing a clause under subsection (d) and no 
transaction entered into under subsection (a) provides for 
research that duplicates research being conducted under exist-
ing programs carried out by the Department of Defense; 
"(2) to the extent that the Secretary determines practicable, 
the funds provided by the Government under a cooperative 
agreement containing a clause under subsection (d) or a trans-
action authorized by subsection (a) do not exceed the total 
amount provided by other parties to the cooperative agreement 
or other transaction; and 
"(3) a cooperative agreement containing a clause tinder 
subsection (d) or a transaction authorized under subsection 
(a) is used for a research project only when the use of a 
standard contract, grant, or cooperative agreement for such 
project is not feasible or appropriate. 
"(f) SUPPORT ACCOUNTS.—^There is hereby estabUshed on the 
books of the Treasury separate accoimts for each of the military 
departments and the Advanced Research Projects Agency for sup-
port of research projects and development projects provided for 
in cooperative agreements containing a clause under subsection 
(d) and research projects provided for in transactions entered into 
under subsection (a). Funds in those accounts shall be available 
for the pa5rment of such support. 
"(g) REGULATIONS.—^Tne Secretary of Defense shall prescribe 
regulations to carry out this section. 
"(h) ANNUAL REPORT.—Not later than 60 days after the end 
of each fiscal year, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and House of Rep-
resentatives a report on all cooperative agreements entered into 
under section 2358 of this title during such fiscal year that contain 
a clause authorized by subsection (d) and on all transactions entered 
into under subsection (a) during such fiscal year. The report shall 
contain, with respect to each such cooperative agreement and trans-
action, the following: 
"(1) A general description of the cooperative agreement 
or other transaction (as the case may be), including the tech-
nologies for which research is provided for under such agree-
ment or trgmsaction. 
"(2) The potential military and, if any, commercial utility 
of such technologies. 
"(3) The reasons for not using a contract or grant to provide 
support for such research. 
"(4) The amount of the payments, if any, that were received 
by the Federal Grovemment during the fiscal year covered by 
the report pursuant to a clause included in such cooperative 
agreement or other trsinsaction pursuant to subsection (d). 
"(5) The amount of the payments reported under paragraph 
(4), if any, that were credited to each accoimt established under 
subsection (f). 
"(i) COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS 
UNDER 
STEVENSON-WYDLER TECHNOLOGY INNOVATION ACT OF 
1980.—^The Secretary of Defense, in carrying out research projects 
through the Advanced Research Projects Agency, and the Secretary 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3287 
of each military department, in carrying out research projects, 
may permit the director of £iny federally funded research and devel-
opment center to enter into cooperative research and development 
agreements with any person, any agency or instrumentality of 
the United States, any unit of State or local government, £uid 
any other entity under the authority granted fy section 12 of 
the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
3710a). Technology may be transferred to a non-Federal party to 
such an agreement consistent with the provisions of sections 11 
and 12 of such Act (15 U.S.C. 3710, 3710a).^ 
(c) CLERICAL AMENDME^^^s.—^The table of sections at the begin-
ning of chapter 139 of such title is amended— 
(1) by striking out the item relating to section 2358 and 
inserting in lieu thereof the following: 
"2358. Research and development projects."; 
and 
(2) by striking out the item relating to section 2371 and 
inserting in lieu thereof the following: 
"2371. Research projects: transactions other than contracts and grants.". 
Subtitle D—Procurement Protests 
PART I—PROTESTS TO THE COMPTROLLER 
GENERAL 
SEC. 1401. PROTEST DEFINED. 
(a) IN GENERAL.—Paragraph (1) of section 3551 of title 31, 
United States Code, is amended to read as follows: 
"(1) The term 'protest' means a written objection by an 
interested party to any of the following: 
"(A) A solicitation or other request by a Federal agency 
for offers for a contract for the procurement of property 
or services. 
"(B) The cancellation of such a solicitation or other 
request. 
"(C) An award or proposed award of such a contract. 
"(D) A termination or cancellation of an award of such 
a contract, if the written objection contains an allegation 
that the termination or cancellation is based in whole or 
in part on improprieties concerning the award of the con-
tract.". 
(b) TECHNICAL AMENDMENTS.—Section 3551 of such title is 
further amended— 
(1) in paragraph (2)— 
(A) by inserting "The term" after "(2)"; and 
(B) by striking out "; and" and inserting in lieu thereof 
a period; and 
(2) in paragraph (3), by inserting "The term" after "(3)". 
SEC. 1402. REVIEW OF PROTESTS AND EFFECT ON CONTRACTS PEND-
ING DECISION. 
(a) PERIODS FOR CERTAIN ACTIONS.—Section 3553 of title 31, 
United States Code, is amended— 
(1) in subsection (b)— 
(A) in paragraph (1), by striking out "one working 
day of and inserting in lieu thereof "one day after"; and 
108 STAT. 3288 
PUBLIC LAW 103-355—OCT. 13, 1994 
(B) in paragraph (2)— 
(i) in subparagraph (A), by striking out "25 work-
ing days from" and inserting in Ueu thereof "35 days 
after"; and 
(ii) in subparagraph (C), by striking out "10 work-
ing days from' and inserting in Ueu thereof "20 days 
after"; and 
(2) in subsection (c)(3), by striking out "thereafter" and 
inserting in Ueu thereof "sifter the making of such finding", 
(b) SUSPENSION OF PERFORMANCE.—Subsection (d) of such sec-
tion is amended to read as foUows: 
"(d)(1) A contractor awarded a Federal agency contract may, 
during the period described in paragraph (4), begin performsince 
of the contract and engage in any related activities that result 
in obligations being incurred by the United States under the con-
tract unless the contracting officer responsible for the award of 
the contract withholds authorization to proceed with performance 
of the contract. 
"(2) The contracting officer may withhold an authorization to 
proceed with performance of the contract during the period 
described in paragraph (4) if the contracting officer determines 
in writing that— 
"(A) a protest is likely to be filed; and 
"(B) the immediate performance of the contract is not in 
the best interests of the United States. 
"(3)(A) If the Federal agency awarding the contract receives 
notice of a protest in accordance with this section during the period 
described in paragraph (4)— 
"(i) the contracting officer may not authorize performance 
of the contract to begin while the protest is pending; or 
"(ii) if authorization for contract performance to proceed 
was not withheld in accordance with paragraph (2) before 
receipt of the notice, the contracting officer shall immediately 
direct the contractor to cease performance under the contract 
and to suspend any related activities that may result in addi-
tional obligations being incurred by the United States under 
that contract. 
"(B) Performance and related activities suspended pursuant 
to subparagraph (A)(ii) by reason of a protest may not be resumed 
while the protest is pending. 
"(C) The head of the procuring activity may authorize the 
performance of the contract (notwithstanding a protest of which 
the Federal agency has notice under this section)— 
"(i) upon a written finding that— 
"(I) performance of the contract is in the best interests 
of the United States; or 
"(II) urgent and compelling circumstances that signifi-
cantly affect interests of the United States will not permit 
waiting for the decision of the Comptroller General concern-
ing the protest; and 
"(u) afl«r the Comptroller (Jeneral is notified of that find-
ing. 
"(4) The period referred to in paragraphs (2) and (3)(A), with 
respect to a contract, is the period beginning on the date of the 
contract award and ending on the later of— 
"(A) the date that is 10 days afl^er the date of the contract 
award; or 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3289 
"(B) the date that is 5 days after the debriefing date offered 
to an unsuccessful offeror for any debriefing that is requested 
and, when requested, is required.". 
SEC. 1403. DECISIONS ON PROTESTS. 
(a) PERIODS FOR CERTAIN ACTIONS.—Section 3554(a) of title 
31, United States Code, is amended— 
(1) in paragraph (1), by striking out "90 working days 
from" and inserting in Ueu thereof "125 days after"; 
(2) in paragraph (2), by striking out "45 calendar days 
from" and inserting "65 days after"; 
(3) by redesignating paragraph (3) as paragraph (4); and 
(4) by inserting after paragraph (2) the following new para-
graph (3): 
"(3) An amendment to a protest that adds a new ground of 
protest, if timely made, should be resolved, to the maximum extent 
practicable, witnin the time Umit established under paragraph (1) 
of this subsection for final decision of the initial protest. If an 
amended protest cannot be resolved within such time limit, the 
Comptroller General may resolve the amended protest through 
the express option under paragraph (2) of this subsection.". 
(b) GAO RECOMMENDATIONS ON PROTESTS.—(1) Section 3554 
of title 31, United States Code, is amended in subsection (b) by 
adding at the end the following new paragraph: 
"(3) If the Federal agency fails to implement fully the rec-
ommendations of the Comptroller General under this subsection 
with respect to a solicitation for a contract or an award or proposed 
award of a contract within 60 days afl«r receiving the recommenda-
tions, the head of the procuring activity responsible for that contract 
shall report such failure to the Comptroller General not later than 
5 days after the end of such 60-day period.". 
(2) Subsection (c) of such section is amended to read as follows: 
"(c)(1) If the Comptroller General determines that a solicitation 
for a contract or a proposed award or the award of a contract 
does not comply with a statute or regulation, the Comptroller Gen-
eral may recommend that the Federal agency conducting the 
procurement pay to an appropriate interested party the costs of— 
"(A) filing and pursuing the protest, including reasonable 
attorneys' fees and consultant and expert witness fees; and 
"(B) bid and proposal preparation. 
"(2) No party (other than a small business concern (within 
the meaning of section 3(a) of the Small Business Act)) may be 
paid, pursuant to a recommendation made under the authority 
of paragraph (1)— 
"(A) costs for consultant and expert witness fees that exceed 
the highest rate of compensation for expert witnesses paid 
by the Federal Government; or 
"(B) costs for attorneys' fees that exceed $150 per hour 
unless the agency determines, based on the recommendation 
of the Comptroller General on a case by case basis, that an 
increase in the cost of Uving or a special factor, such as the 
limited availability of qualified attorneys for the proceedings 
involved, justifies a higher fee. 
"(3) If the Comptroller General recommends under paragraph 
(1) that a Federal agency pay costs to an interested party, the 
Federal agency shall— 
"(A) pay the costs promptly; or 
108 STAT. 3290 
PUBLIC LAW 103-355—OCT. 13, 1994 
"(B) if the Federal agency does not make such pajnnent, 
promptly report to the Comptroller (Jeneral the reasons for 
the failure to follow the Comptroller CJeneral's recommendation. 
"(4) If the Comptroller General recommends under paragraph 
(1) that a Federal agency pay costs to an interested party, the 
Federal agency and the interested party shall attempt to reach 
an agreement on the amount of the costs to be paid. If the Federal 
agency and the interested party are unable to agree on the amount 
to be paid, the Comptroller General may, upon the request of 
the interested party, recommend to the Federal agency the amount 
of the costs that the Federal agency should pay.". 
(3) Subsection (e) of such section is amended to read as follows: 
"(e)(1) The Comptroller General shall report promptly to the 
Committee on Governmental Affairs and the Committee on Appro-
priations of the Senate and to the Committee on Grovemment Oper-
ations and the Committee on Appropriations of the House of Rep-
resentatives any case in which a Federal agency fails to implement 
fully a recommendation of the Comptroller General under subsection 
(b) or (c). The report shall include— 
"(A) a comprehensive review of the pertinent procurement, 
including the circumstances of the failure of the Federal agency 
to implement a recommendation of the Comptroller General; 
and 
"(B) a recommendation regarding whether, in order to cor-
rect an inequity or to preserve the integrity of the procurement 
process, the Congress should consider— 
"(i) private relief legislation; 
"(ii) legislative rescission or cancellation of funds; 
"(iii) further investigation by Congress; or 
"(iv) other action. 
"(2) Not later than January 31 of each year, the Comptroller 
General shall transmit to the Congress a report containing a sum-
mary of each instance in which a Federal agency did not fully 
implement a recommendation of the Comptroller Greneral under 
subsection (b) or (c) during the preceding year. The report shall 
also describe each instance in which a final decision in a protest 
was not rendered within 125 days after the date the protest is 
submitted to the Comptroller General.". 
31 use 3554 
(4) Costs to which the Comptroller General declared an 
"°^- 
interested party to be entitled under section 3554 of title 31, United 
States Code, as in effect immediately before the enactment of this 
Act, shall, if not paid or otherwise satisfied by the Federal agency 
concerned before the date of the enactment of this Act, be paid 
promptly. 
(c) RESTRICTION ON ACCESS TO CERTAIN INFORMATION.—Section 
3553(f) of title 31, United States Code, is amended— 
(1) by inserting "(1)" after "(f)"; and 
(2) by adding at the end the following: 
"(2)(A) The Comptroller General may issue protective orders 
which establish terms, conditions, and restrictions for the provision 
of any document to a party under paragraph (1), that prohibit 
or restrict the disclosure by the party of information described 
in subparagraph (B) that is contained in such a document. 
"(B) Information referred to in subparagraph (A) is procurement 
sensitive information, trade secrets, or other proprietary or confiden-
tial research, development, or commercial information. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3291 
"(C) A protective order under this paragraph shall not be consid-
ered to authorize the withholding of any document or information 
from Congress or an executive agency.". 
SEC. 1404. REGULATIONS. 
(a) COMPUTATION OF PERIODS.—Section 3555 of title 31, United 
States Code, is amended— 
(1) by redesignating subsection (b) as subsection (d); and 
(2) by inserting after subsection (a) the following new sub-
section (b): 
"(b) The procedures shall provide that, in the computation 
of any period described in this subchapter— 
"(1) the day of the act, event, or default from which the 
designated period of time begins to run not be included; and 
"(2) the last day after such act, event, or default be 
included, unless— 
"(A) such last day is a Saturday, a Sunday, or a legal 
holiday; or 
"(B) in the case of a filing of a paper at the General 
Accounting Office or a Federal agency, such last day is 
a day on which weather or other conditions cause the 
closing of the General Accounting Office or Federal agency, 
in which event the next day that is not a Saturday, Sunday, 
or legal hoHday shall be included.". 
(b) ELECTRONIC FILINGS AND DISSEMINATIONS.—Such section, 
as amended by subsection (a), is further amended by inserting 
after subsection (b) the following new subsection: 
"(c) The Comptroller Greneral may prescribe procedures for the 
electronic filing and dissemination of documents and information 
required under this subchapter. In prescribing such procedures, 
the Comptroller General shall consider the ability of all parties 
to achieve electronic access to such documents and records.", 
(c) REPEAL OF OBSOLETE DEADLINE.—Subsection (a) of such 
section is amended by striking out "Not later than January 15, 
1985, the" and inserting in lieu thereof "The". 
PART II~PROTESTS IN PROCUREMENTS OF 
AUTOMATIC DATA PROCESSING 
SEC. 1431. REVOCATION OF DELEGATIONS OF PROCUREMENT AU-
THORITY. 
Section 111(b)(3) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(b)(3)) is amended by inserting 
before the period at the end of the third sentence the following: 
", including the authority to revoke a delegation of authority with 
respect to a particular contract after award of the contract, except 
that the Administrator may revoke a delegation of authority after 
the contract is awarded only when there is a finding of a violation 
of law or regulation in connection with the contract award.". 
SEC. 1432. AUTHORITY OF THE GENERAL SERVICES ADMINISTRATION 
BOARD OF CONTRACT APPEALS. 
The first sentence of section 111(f)(1) of the Federal Property 
and Administrative Services Act of 1949 (40 U.S.C. 759(f)(1)) is 
amended to read as follows: "Upon request of an interested party 
in connection with any procurement that is subject to this section 
(including any such procurement that is subject to delegation of 
108 STAT. 3292 
PUBLIC LAW 103-355—OCT. 13, 1994 
procurement authority), the board of contract appeals of the General 
Services Administration (hereafter in this subsection referred to 
as the *board') shall review, as provided in this subsection, any 
decision by a contracting officer that is alleged to violate a statute, 
a regulation, or the conditions of a delegation of procurement 
authority.". 
SEC. 1433. PERIODS FOR CERTAIN ACTIONS. 
(a) SUSPENSION OF PROCUREMENT AUTHORITY.—Section 111(f) 
of the Federal Property and Administrative Services Act of 1949 
(40 U.S.C. 759(i)) is amended— 
(1) in paragraph (2)(B)— 
(A) by redesignating clauses (i) and (ii) as subclauses 
(1) and (II), respectively; 
(B) by inserting "(i)" after "(B)"; and 
(C) by adding at the end the following: 
"(ii) A suspension under this subparagraph shall not preclude 
the Federal agency concerned from continuing the procurement 
process up to but not including award of the contract unless the 
board determines such action is not in the best interests of the 
! 
United States."; and 
(2) in paragraph (3), by striking out subparagraph (A) 
and inserting in lieu thereof the following: 
"(A)(i) If, with respect to an award of a contract, the board 
receives notice of a protest under this subsection within the period 
described in clause (ii), the board shall, at the request of an 
interested party, hold a hearing to determine whether the board 
should suspend the procurement authority of the Administrator 
or the Administrator's delegation of procurement authority for the 
protested procurement on an interim basis until the board can 
decide the protest. 
"(ii) The period referred to in clause (i) is the period beginning 
on the date on which the contract is awarded and ending at the 
end of the later of— 
"(I) the tenth day after the date of contract award; or 
"(II) the fifth day after the debriefing date offered to an 
unsuccessful offeror for any debriefing that is requested and, 
when requested, is required. 
"(iii) The board shall hold the requested hearing within 5 
days after the date of the filing of the protest or, in the case 
of a request for debriefing under the provisions of section 2305(b)(5) 
of title 10, United States Code, or section 303B(e) of this Act, 
within 5 days after the later of the date of the filing of the protest 
or the date of the debriefing.". 
(b) FINAL DECISION.—^Paragraph (4)(B) of such section 111(f) 
is amended— 
(1) by striking out "45 working days" and inserting in 
lieu thereof "65 days"; and 
(2) by adding at the end the following: "An amendment 
which adds a new ground of protest should be resolved, to 
the maximum extent practicable, within the time limits estab-
lished for resolution of the initial protest.". 
SEC. 1434. DISMISSALS OF PROTESTS. 
Section 111(f)(4) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(f)(4)) is amended by striking 
out subparagraph (C) and inserting in lieu thereof the following: 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3293 
"(C) The board may dismiss a protest that the board 
determines— 
"(i) is frivolous; 
"(ii) has been brought or pursued in bad faith; or 
"(iii) does not state on its face a vaUd basis for protest.". 
SEC. 1435. AWARD OF COSTS. 
(a) AWARD.—Section 111(f)(5) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 759(f)(5)) is amended 
by striking out subparagraph (C) and inserting in lieu thereof 
the following: 
"(C) Whenever the board makes such a determination, it may, 
in accordance with section 1304 of title 31, United States Code, 
further declare an appropriate prevailing party to be entitled to 
the cost of filing ana pursuing the protest (including reasonable 
attorneys' fees and consultant and expert witness fees), and bid 
and proposal preparation. However, no party (other than a small 
business concern (within the meaning of section 3(a) of the Small 
Business Act)) may be declared entitled to costs for consultants 
and expert witness fees that exceed the highest rate of compensation 
for expert witnesses paid by the Federal Government, and no party 
(other than a small business concern (within the meaning of section 
3(a) of the Small Business Act)) may be declared entitled to attor-
neys' fees that exceed $150 per hour unless the board, on a case 
by case basis, determines that an increase in the cost of living 
or a special factor, such as the limited availability of qualified 
attorneys for the proceedings involved, justifies a higher fee. . 
(b) DEFINITION OF PREVAILING PARTY.—Section 111(f)(9) of such 
Act (40 U.S.C. 759(f)(9)) is amended by adding at the end the 
following: 
"(C) The term 'prevailing part/, with respect to a deter-
mination of the board under paragraph (5)(B) that a challenged 
action of a Federal agency violates a statute or regulation 
or the conditions of a delegation of procurement authority 
issued pursuant to this section, means a party that dem-
onstrated such violation.". 
SEC. 1436. DISMISSAL AGREEMENTS. 
Section 111(f)(5) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(f)(5)), as amended by section 
1435, is further amended by adding at the end the following new 
subparagraphs: 
"(D) Any agreement that provides for the dismissal of a protest 
and involves a direct or indirect expenditure of appropriated funds 
shall be submitted to the board and shall be made a part of 
the public record (subject to any protective order considered appro-
priate by the board) before dismissal of the protest. If a Federal 
agency is a party to a settlement agreement, the submission of 
the agreement to the board shall include a memorandum, signed 
by the contracting officer concerned, that describes in detail the 
procurement, the grounds for protest, the Federal Government's 
position regarding the grounds for protest, the terms of the settle-
ment, and the agency's position regarding the propriety of the 
award or proposed award of the contract at issue in the protest. 
"(E) Payment of amounts due from an agency under subpara-
graph (C) or under the terms of a settlement agreement under 
subparagraph (D) shall be made from the appropriation made by 
section 1304 of title 31, United States Code, for the pa3naient of 
108 STAT. 3294 
PUBLIC LAW 103-355—OCT. 13, 1994 
judgments. The Federal agency concerned shall reimburse that 
appropriation account out of funds available for the procurement.". 
SEC. 1437. MATTERS TO BE COVERED IN REGULATIONS. 
Section 111(f) of the Federal Property and Administrative Serv-
ices Act of 1949 (40 U.S.C. 759(f)) is further amended— 
(1) by inserting after paragraph (6) the following: 
"(7)(A) The board shall adopt and issue such rules and proce-
dures as may be necessary to the expeditious disposition of protests 
filed under the authority of this subsection. 
"(B) The procedures shall provide that, in the computation 
of any period described in this subsection— 
"(i) the day of the act, event, or default from which the 
designated period of time begins to run not be included; and 
(ii) the last day after such act, event, or default be 
included, unless— 
"(I) such last day is a Saturday, a Sunday, or a legal 
hoUday; or 
"(II) in the case of a filing of a paper at the board, 
such last day is a day on which weather or other conditions 
cause the closing of the board in which event the next 
day that is not a Saturday, Sunday, or legal holiday shall 
be included. 
"(C) The procedures may provide for electronic filing and 
dissemination of documents and information required under this 
subsection and in so providing shall consider the ability of all 
parties to achieve electronic access to such documents and records. 
"(D) The procedures shall provide that if the board expressly 
finds that a protest or a portion of a protest is frivolous or has 
been brought or pursued in bad faith, or that any person has 
willfully abused the board's process during the course of a protest, 
the board may impose appropriate procedural sanctions, including 
dismissal of the protest."; and 
(2) by striking out paragraph (8). 
SEC. 1438. DEFINITION OF PROTEST. 
Section 111(f)(9) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759(f)(9)) is amended— 
(1) by striking out "subsection—" and inserting in Ueu 
thereof "subsection:"; 
(2) by striking out subparagraph (A) and inserting in lieu 
thereof the following: 
"(A) The term 'protest' means a written objection by an 
interested party to any of the following: 
"(i) A solicitation or other request by a Federal agency 
for offers for a contract for the procurement of property 
or services. 
"(ii) The cancellation of such a solicitation or other 
request. 
"(iii) An award or proposed award of such a contract. 
"(iv) A termination or cancellation of an award of such 
a contract, if the written objection contains an allegation 
that the termination or cancellation is based in whole or 
in part on improprieties concerning the award of the con-
tract."; and 
(3) by capitalizing the first letter of the first word in 
subparagraph (B). 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3295 
SEC. 1439. OVERSIGHT OF ACQUISITION OF AUTOMATIC 
DATA 
PROCESSING EQUIPMENT BY FEDERAL AGENCIES. 
Section 111 of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 759) is amended by adding at the end 
the following new subsection: 
"(h) DATA COLLECTION.—(1) The Administrator shall collect 
and compile data regarding the procurement of automatic data 
processing equipment under this section. The data collected and 
compiled shall include, at a minimum, with regard to each contract 
for such a procurement, the following: 
"(A) The procuring agency. 
"(B) The contractor. 
"(C) The automatic data processing equipment and services 
procured. 
"(D) The manufacturer of the equipment procured. 
"(E) The amount of the contract, to the extent that the 
amount is not proprietary information. 
"(F) The type of contract used. 
"(G) The extent of competition for award. 
"(H) Whether compatibility restrictions were used in award-
ing the contract. 
"(I) Significant modifications of the contract. 
"(J) Contract price, to the extent that the price is not 
proprietary information. 
"(2) The head of each Federal agency shall report to the 
Administrator in accordance with regulations issued by the 
Administrator all information that the Administrator determines 
necessary in order to satisfy the requirements in paragraph (1). 
"(3) The Administrator— 
"(A) shall carry out a systematic, periodic review of 
information received under this subsection; 
"(B) shall use such information, as appropriate, to 
determine the compliance of Federal agencies with the 
requirements of this section; and 
, "(C) may take appropriate corrective action regarding 
an agenc3^s authority to lease and purchase automatic 
data processing equipment upon any substantial failure 
by the head of the agency to report to the Administrator 
in accordance with this subsection. 
"(4) The Administrator shall take appropriate corrective action 
upon failure of a Federal agency to comply with the terms of 
any delegation of authority to lease or purchase automatic data 
processing equipment or failure to comply with any applicable law 
or regulation. 
"(5) The Administrator shall require in the regulations 
implementing this subsection that (A) data collected pursusint to 
this subsection be drawn from existing Federal agency information; 
and (B) no new or additional information reporting requirements 
may be imposed on offerors or contractors to collect such data.". 
108 STAT. 3296 
PUBLIC LAW 103-355—OCT. 13, 1994 
Subtitle E—^Policy, DeHnitions, and Other 
Matters 
PART I—ARMED SERVICES ACQUISITIONS 
SEC. 1501. REPEAL OF POLICY STATEMENT. 
(a) REPEAL.—Section 2301 of title 10, United States Code, is 
repealed. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 137 of such title is amended by striking out the 
item relating to section 2301. 
SEC. 1502. DEFINITIONS. 
Section 2302 of title 10, United States Code, is amended— 
(1) by striking out paragraph (3) and inserting in Heu 
thereof the following: 
"(3) The following terms have the meanings provided such 
terms in section 4 of the Office of Federal Procurement Pohcy 
Act (41 US.C. 403): 
"(A) The term 'procurement'. 
"(B) The term 'procurement system'. 
"(C) The term'standards'. 
"(D) The term 'full and open competition'. 
"(E) The term 'responsible source'. 
"(F) The term 'item'. 
"(G) The term 'item of suppl/. 
"(H) The term 'supplies'. 
"(I) The term 'commercial item'. 
"(J) The term 'nondevelopmental item'. 
"(K) The term 'commercial component' 
"(L) The term 'component'."; and 
(2) by striking out paragraph (7) and inserting in lieu 
thereof the following new paragraph (7): 
"(7) The term 'simplified acquisition threshold' has the 
meaning provided that term in section 4 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403), except that, in the 
case of any contract to be awarded and performed," or purchase 
to be made, outside the United States in support of a contin-
gency operation, the term means an amount equal to two times 
the amount specified for that term in section 4 of such Act.". 
SEC. 1603. DELEGATION OF PROCUREMENT FUNCTIONS. 
(a) CONSOLIDATION OF DELEGATION AUTHORITY.—(1) Section 
2311 of title 10, United States Code, is amended to read as follows: 
*
*
§ 2311. Assignment and delegation of procurement functions 
and responsibilities 
"(a) IN GENERAL.—Except to the extent expressly prohibited 
by another provision of law, the head of an agency may delegate, 
subject to his direction, to any other officer or official of that 
agency, any power under this chapter. 
"(b) PROCUREMENTS FOR OR WiTH OTHER AGENCIES.—Subject 
to subsection (a), to facilitate the procurement of property and 
services covered by this chapter by each agency named in section 
2303 of this title for any other agency, and to facihtate joint procure-
ment by those agencies— 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3297 
"(1) the head of an agency may delegate functions and 
assign responsibiUties relating to procurement to any officer 
or employee within such agency; 
"(2) the heads of two or more agencies may by agreement 
delegate procurement functions and assign procurement respon-
sibilities from one agency to another of tnose agencies or to 
an officer or civilian employee of another of those agencies; 
and 
"(3) the heads of two or more agencies may create joint 
or combined offices to exercise procurement functions and 
responsibilities. 
"(c) APPROVAL OF TERMINATIONS AND REDUCTIONS OF JOINT 
ACQUISITION PROGRAMS.—(1) The Secretary of Defense shall pre-
scribe regulations that prohibit each military department participat-
ing in a joint acquisition program approved by the Under Secretary 
of Defense for Acquisition and Technology from terminating or 
substantially reducing its participation in such program without 
the approval of the Under Secretary. 
"(2) The regulations shall include the following provisions: 
"(A) A requirement that, before any such termination or 
substantial reduction in participation is approved, the proposed 
termination or reduction be reviewed by the Joint Requirements 
Oversight Council of the Department of Defense. 
"(B) A provision that authorizes the Under Secretary of 
Defense for Acquisition and Technology to require a military 
department whose participation in a joint acquisition program 
has been approved for termination or substantial reduction 
to continue to provide some or all of the funding necessary 
for the acquisition program to be continued in an efficient 
manner.". 
(2) The table of sections at the beginning of chapter 137 of 
such title is amended by striking out the item relating to section 
2311 and inserting in lieu thereof the following: 
"2311. Assignment and delegation of procurement functions and responsibilities.". 
(b) CONFORMING REPEAL.—(1) Section 2308 of title 10, United 
States Code, is repealed. 
(2) The table of sections at the beginning of chapter 137 of 
such title is amended by striking out the item related to section 
2308. 
SEC. 1604. DETERMINATIONS AND DECISIONS. 
Section 2310 of title 10, United States Code, is amended to 
read as follows: 
**§2310. Determinations and decisions 
"(a) INDIVIDUAL OR CLASS DETERMINATIONS AND DECISIONS 
AUTHORIZED.—Determinations and decisions required to be made 
under this chapter by the head of an agency may be made for 
an individual purchase or contract or, except to the extent expressly 
prohibited by another provision of law, for a class of purchases 
or contracts. Such determinations and decisions are final. 
"(b) WRITTEN FINDINGS REQUIRED.—(1) Each determination or 
decision under section 2306(g)(1), 2307(d), or 2313(c)(2)(B) of this 
title shall be based on a written finding by the person making 
the determination or decision. The finding shall set out facts and 
circumstances that support the determination or decision. 
108 STAT. 3298 
PUBLIC LAW 103-355—OCT. 13, 1994 
"(2) Each finding referred to in paragraph (1) is final. The 
head of the agency making such finding shall maintain a copy 
of the finding for not less than 6 years after the date of the 
determination or decision.". 
SEC. 1505. RESTRICTIONS ON UNDEFINITIZED CONTRACTUAL AC-
TIONS. 
(a) CLARIFICATION OF LIMITATION.—Subsection (b) of section 
2326 of title 10, United States Code, is amended— 
(1) in the subsection heading, by striking out "AND EXPENDI-
TURE"; 
(2) in paragraph (1)(B), by striking out "or expended"; 
(3) in paragraph (2), by striking out "expend" and inserting 
in lieu thereof "obligate"; and 
(4) in paragraph (3)— 
(A) by striking out "expended" and inserting in Ueu 
thereof "obligated"; and 
(B) by striking out "expend" and inserting in lieu 
thereof "obligate". 
(b) WAIVER AUTHORITY.—Such subsection is further amended— 
(1) by redesignating paragraph (4) as paragraph (5); and 
(2) by inserting after paragraph (3) the following new para-
graph (4): 
"(4) The head of an agency may waive the provisions of this 
subsection with respect to a contract of that agency if such head 
of an agency determines that the waiver is necessary in order 
to support a contingency operation.". 
(c) INAPPLICABILITY OF RESTRICTIONS TO CONTRACTS WITHIN 
THE SIMPLIFIED ACQUISITION THRESHOLD.—Subsection (g)(1)(B) of 
such section is amended by striking out "small purchase threshold" 
and inserting in lieu thereof "simplified acquisition threshold". 
SEC. 1506. REPEAL OF REQUIREMENT RELATING TO PRODUCTION SPE-
CIAL TOOLING AND PRODUCTION SPECIAL TEST EQUIP-
MENT. 
(a) REPEAL.—Section 2329 of title 10, United States Code, is 
repealed. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 137 of such title is amended by striking out the 
item related to section 2329. 
SEC. 1507. REGULATIONS FOR BIDS. 
Section 2381(a) of title 10, United States Code, is amended 
by striking out "(a) The Secretary" and all that follows through 
the end of paragraph (1) and inserting in Ueu thereof the following: 
"(a) The Secretary of Defense may— 
"(1) prescribe regulations for the preparation, submission, 
and opening of bids for contracts; and". 
PART II—CIVILIAN AGENCY ACQUISITIONS 
SEC. 1551. DEFINITIONS. 
Section 309 of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 259) is amended by striking out subsection 
(c) and inserting in lieu thereof the following: 
"(c) The following terms have the meanings provided such terms 
in section 4 of the Office of Federal Procurement Policy Act (41 
U.S.C. 403): 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3299 
"(1) The term 'procurement'. 
"(2) The term 'procurement system'. 
"(3) The term 'standards'. 
"(4) The term 'full and open competition'. 
"(5) The term 'responsible source'. 
"(6) The term'technical data'. 
"(7) The term 'major system'. 
"(8) The term 'item'. 
"(9) The term 'item of supply*. 
"(10) The term'supplies'. 
"(11) The term'commercial item'. 
"(12) The term 'nondevelopmental item'. 
"(13) The term 'commercial component'. 
"(14) The term 'component'. 
"(d) The term 'simpUfied acquisition threshold' has the meaning 
provided that term in section 4 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403), except that, in the case of any contract 
to be awarded and performed, or purchase to be made, outside 
the United States in support of a contingency operation, the term 
means an amount equal to two times the amount specified for 
that term in section 4 of such Act. 
"(e) The term 'Federal Acquisition Regulation' means the Fed-
eral Acquisition Regulation issued pursuant to section 25(c)(1) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 421(c)(1)).". 
SEC. 1552. DELEGATION OF PROCUREMENT FUNCTIONS. 
Title III of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 251 et seq.) is amended by adding at 
the end the following new section: 
"SEC. 311. ASSIGNMENT AND DELEGATION OF PROCUREMENT FUNC- 41 USC 261. 
TIONS AND RESPONSIBILITIES. 
"(a) IN GENERAL.—Except to the extent expressly prohibited 
by another provision of law, the head of an executive agency may 
delegate to any other officer or official of that agency, any power 
under this title. 
"(b) PROCUREMENTS FOR OR WITH OTHER AGENCIES.—Subject 
to subsection (a), to facilitate the procurement of property and 
services covered by this title by each executive agency for any 
other executive agency, and to facilitate joint procurement by those 
executive agencies— 
"(1) the head of an executive agency may delegate functions 
and assign responsibilities relating to procurement to any offi-
cer or employee within such agency; 
"(2) the heads of two or more executive agencies may l^y 
agreement delegate procurement functions and assign procure-
ment responsibilities, consistent with section 1535 of title 31, 
United States Code, and regulations issued under section 1074 
of the Federal Acquisition Streamlining Act of 1994, from one 
executive agency to another of those executive agencies or to 
an officer or civilian employee of another of those executive 
agencies; and 
"(3) the heads of two or more executive agencies may estab-
lish joint or combined offices to exercise procurement functions 
and responsibilities.". 
108 STAT. 3300 
PUBLIC LAW 103-355—OCT. 13, 1994 
SEC. 1553. DETERMINATIONS AND DECISIONS. 
Title III of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 251 et seq.), as amended by section 1552, 
is further amended by adding at the end the following new section: 
41 use 262. 
"SEC. 312. DETERMINATIONS AND DECISIONS. 
"(a) 
INDIVIDUAL OR CLASS DETERMINATIONS AND DECISIONS 
AUTHORIZED.—Determinations and decisions required to be made 
under this title by the head of an executive agency may be made 
for an individual purchase or contract or, except to the extent 
expressly prohibited by another provision of law, for a class of 
purchases or contracts. Such determinations and decisions are final. 
"(b) WRITTEN FINDINGS REQUIRED.—(1) Each determination 
under section 305(d) or section 304C(c)(2)(B) shall be based on 
a written finding by the person making the determination or deci-
sion. The finding shall set out facts and circumstances that support 
the determination or decision. 
"(2) Each finding referred to in paragraph (1) is final. 
"(3) The head of an executive agency shall maintain for a 
period of not less than 6 years a copy of each finding referred 
to in paragraph (1) that is made by a person in that executive 
agency. The period begins on the date of the determination or 
decision to which the finding relates.". 
SEC. 1554. REPEAL OF PREFERENCE FOR RECYCLED TONER CAR-
TRIDGES. 
The following provisions of law, relating to a preference for 
procurement of recycled toner cartridges, are repealed: 
(1) Section 630 of Public Law 102-393 (106 Stat. 1773) 
and the provision of law enclosed in quotation marks in that 
section (42 U.S.C. 6962(j)). 
(2) Section 401 of PuWic Law 103-123 (107 Stat. 1238; 
42 U.S.C. 6962 note). 
SEC. 1555. COOPERATIVE PURCHASING. 
Subsection (b) of section 201 of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481), is amended 
to read as follows: 
"(b)(1) The Administrator shall, as far as practicable, provide 
any of the services specified in subsection (a) of this section to 
any other Federal agency, mixed-ownership Government corporation 
(as defined in section 9101 of title 31, United States Cfode), or 
the District of Columbia, upon its request. 
"(2)(A) The Administrator may provide for the use of Federal 
supply schedules of the (Jeneral Services Administration by any 
of the following entities upon request: 
"(i) A State, any department or agency of a State, and 
any political subdivision of a State, including a local govern-
ment. 
"(ii) The Commonwealth of Puerto Rico. 
"(iii) The government of an Indian tribe (as defined in 
section 4(e) of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450b(e))). 
"(B) Subparagraph (A) may not be construed to authorize an 
entity referred to in that subparagraph to order existing stock 
or inventory from federally owned and operated, or federally owned 
and contractor operated, supply depots, warehouses, or similar 
faciUties. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3301 
"(C) In any case in which an entity listed in subparagraph 
(A) uses a Federal supply schedule, the Administrator may require 
the entity to reimburse the General Services Administration for 
any administrative costs of using the schedule. 
"(3)(A) Upon the request of a qualified nonprofit agency for 
the blind or other severely handicapped that is to provide a commod-
ity or service to the Federal (Government under the Javits-Wagner-
O'Day Act (41 U.S.C. 46 et seq.), the Administrator may provide 
any of the services specified in subsection (a) to such agency to 
the extent practicable. 
"(B) A nonprofit agency receiving services under the authority 
of subparagraph (A) shall use the services directly in making or 
providing an approved commodity or approved service to the Federal 
Government. 
"(C) In this paragraph: 
"(i) The term 'qualified nonprofit agency for the blind or 
other severely handicapped' means— 
"(I) a qualified nonprofit agency for the blind, as 
defined in section 5(3) of the Javits-Wagner-O'Day Act 
(41 U.S.C. 48b(3)); and 
"(II) a qualified nonprofit agency for other severely 
handicapped, as defined in section 5(4) of such Act (41 
U.S.C. 48b(4)). 
"(ii) The terms 'approved commodity* and 'approved service' 
mean a commodity and a service, respectively, that has been 
determined by the Committee for Purchase from the Blind 
and Other Severely Handicapped under section 2 of the Javits-
Wagner-O'Day Act (41 U.S.C. 47) to be suitable for procurement 
by the Federal Government.". 
TITLE II—CONTRACT ADMINISTRATION 
Subtitle A—Contract Payment 
PART I—ARMED SERVICES ACQUISITIONS 
SEC. 2001. CONTRACT FINANCING. 
(a) REORGANIZATION OF PRINCIPAL AUTHORITY PROVISION.—Sec-
tion 2307 of title 10, United States Code, is amended— 
(1) by striking out the section heading and inserting in 
heu thereof the following: 
*
*
§ 2307. Contract financing^; 
(2) by inserting "PAYMENT AUTHORITY.—" after "(a)" in 
subsection (a); 
(3) by inserting "PAYMENT AMOUNT.—" after "(b)" in sub-
section (b); 
(4) by inserting "SECURITY FOR ADVANCE PAYMENTS.—" 
£ifter "(c)" in subsection (c); 
(5) by inserting "CONDITIONS FOR PROGRESS PAYMENTS.— 
" after "(d)" in subsection (d); 
(6) by inserting "ACTION IN CASE OF FRAUD.—" after "(e)" 
in subsection (e); and 
(7) by redesignating subsections (b), (c), (d), and (e) as 
subsections (c), (d), (e), and (h), respectively. 
V
108 STAT. 3302 
PUBLIC LAW 103-355—OCT. 13, 1994 
(b) PERFORMANCE-BASED PAYMENTS.—Such section, as amended 
by subsection (a), is further amended by inserting after subsection 
(a) the following new subsection (b): 
"(b) PERFORMANCE-BASED PAYMENTS.—Whenever practicable, 
E
ayments under subsection (a) shsdl be made on any of the following 
ases: 
"(1) Performance measured by objective, quantifiable meth-
ods such as delivery of acceptable items, work measurement, 
or statistical process controls. 
"(2) Accomplishment of events defined in the program 
management plan. 
"(3) Other quantifiable measures of results.". 
(c) TERMINOLOGY CORRECTION.—Subsection (a)(2) of such sec-
tion is amended by striking out "bid". 
(d) EFFECTIVE DATE OF LIEN RELATED TO ADVANCE PAY-
MENTS.—Such section, as amended by subsection (a)(7), is further 
amended in subsection (d) by inserting before the period at the 
end of the third sentence the following: "and is effective immediately 
upon the first advancement of funds without filing, notice, or any 
other action by the United States". 
(e) CONDITIONS FOR PROGRESS PAYMENTS.—Such section, as 
amended by subsection (a)(7), is further amended in subsection 
( e ) -
(1) in the first sentence of paragraph (1), by striking out 
"work, which" and all that follows through "accomplished" and 
inserting in lieu thereof "work accomplished that meets stand-
ards established under the contract"; and 
(2) by striking out paragraph (3) and inserting in lieu 
thereof the following: 
"(3) This subsection applies to any contract in an amount 
greater than $25,000.". 
(f) CONDITIONS FOR PAYMENTS FOR COMMERCIAL ITEMS.—Such 
section, as amended by subsection (a)(7), is further amended by 
inserting after subsection (e) the following new subsection (f): 
"(f) CONDITIONS FOR PAYMENTS FOR COMMERCL\L ITEMS.—(1) 
Payments under subsection (a) for commercial items may be made 
under such terms and conditions as the head of the agency deter-
mines are appropriate or customary in the commercial marketplace 
and are in the best interests of the United States. The head of 
the agency shall obtain adequate security for such payments. If 
the security is in the form of a lien in favor of the United States, 
such lien is paramount to all other liens and is effective immediately 
upon the first pajonent, without filing, notice, or other action by 
the United States. 
"(2) Advance payments made under subsection (a) for commer-
cial items may include payments, in a total amount of not more 
than 15 percent of the contract price, in advance of any performance 
of work under the contract. 
"(3) The conditions of subsections (d) and (e) need not be applied 
if they would be inconsistent, as determined by the head of the 
agency, with commercial terms and conditions pursuant to para-
graphs (1) and (2).". 
(g) NAVY CONTRACTS.—Such section, as amended by subsection 
(f), is further amended by inserting after subsection (f) the following 
new subsection (g): 
"(g) CERTAIN NAVY CONTRACTS.—(1) The Secretary of the Navy 
shall provide that the rate for progress payments on any contract 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3303 
awarded by the Secretary for repair, maintenance, or overhaul 
of a naval vessel shall be not less than— 
"(A) 95 percent, in the case of a firm considered to be 
a small business; and 
"(B) 90 percent, in the case of any other firm. 
"(2) The Secretary of the Navy may advance to private salvage 
comp£uiies such funds as the Secretary considers necessaiy to pro-
vide for the immediate financing of salvage operations. Advances 
under this paragraph shall be made on terms that the Secretary 
considers adequate for the protection of the United States. 
"(3) The Secretary of the Navy shall provide, in each contract 
for construction or conversion of a naval vessel, that, when partial, 
progress, or other payments are made luider such contract, the 
United States is secured by a lien upon work in progress and 
on property acquired for performance of the contract on account 
of all payments so made. The lien is paramount to all other hens.". 
(h) RELATIONSHIP TO PROMPT PAYMENT REQUIREMENTS.—The lo use 2307 
amendments made by this section are not intended to impair or "°*®-
modify procedures required by the provisions of chapter 39 of title 
31, United States Code, and the regulations issued pursuant to 
such provisions of law (as such procedures are in effect on the 
date of the enactment of this Act), except that the (Government 
may accept payment terms offered by a contractor offering a 
commercial item. 
(i) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 137 of title 10, United States Code, is amended 
by striking out the item relating to section 2307 and inserting 
in lieu thereof the following: 
"2307. Contract financing.". 
(j) REPEAL OF SUPERSEDED PROVISIONS.—(1) Sections 
7312, 
7364, and 7521 of title 10, United States Code, are repealed. 
(2) Section 7522 of such title is amended— 
(A) by striking out subsection (b); and 
(B) by redesignating subsection (c) as subsection (b). 
(3) Chapters 633, 637, and 645 of such title are amended 
by striking out items in the tables of sections for such chapters 
as follows: 
(A) For chapter 633, the item relating to section 7312. 
(B) For chapter 637, the item relating to section 7364. 
(C) For chapter 645, the item relating to section 7521. 
SEC. 2002. REPEAL OF VOUCHERING PROCEDURES SECTION. 
(a) REPEAL.—Section 2355 of title 10, United States Code, is 
repealed. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 139 of such title is amended by striking out the 
item relating to section 2355. 
PART II—CIVILIAN AGENCY ACQUISITIONS 
SEC. 2051. CONTRACT FINANCING. 
(a) REORGANIZATION OF PRINCIPAL AUTHORITY PROVISION.—Sec-
tion 305 of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 255) is amended— 
(1) by striking out the section heading and the section 
designation and inserting in lieu thereof the following: 
108 STAT. 3304 
PUBLIC LAW 103-355—OCT. 13, 1994 
"SEC. 305. CONTRACT FINANdNG."; 
(2) by inserting "PAYMENT AUTHORITY.—" after "(a)" in 
subsection (a); 
(3) by inserting "PAYMENT AMOUNT.—" after "(b)" in sub-
section (b); 
(4) by inserting "SECURITY FOR ADVANCE PAYMENTS.—" 
afl«r "(c)" in subsection (c); and 
(5) by redesignating subsections (b) and (c) as subsections 
(c) and (d), respectively. 
(b) PERFORMANCE-BASED PAYMENTS.—Such section, as amended 
by subsection (a), is further amended by inserting after subsection 
(a) the following new subsection (b): 
"(b) PERFORMANCE-BASED PAYMENTS.—Whenever practicable, 
payments under subsection (a) shall be made on any of the following 
bases: 
"(1) Performance measured by objective, quantifiable meth-
ods such as delivery of acceptable items, work measurement, 
or statistical process controls. 
"(2) Accomplishment of events defined in the program 
management plan. 
"(3) Other quantifiable measures of results.". 
(c) TERMINOLOGY CORRECTION.—Subsection (a)(2) of such sec-
tion is amended by striking out "bid". 
(d) EFFECTIVE DATE OF LIEN RELATED TO ADVANCE PAY-
MENTS.—Such section, as amended by subsection (a)(5), is further 
amended in subsection (d) by inserting before the period at the 
end of the third sentence the following: "and is effective immediately 
upon the first advancement of funds without filing, notice, or any 
other action by the United States". 
(e) REVISION OF CIVILIAN AGENCY PROVISION To ENSURE UNI-
FORM REQUIREMENTS FOR PROGRESS PAYMENTS.—Such section is 
further amended by adding at the end the following new sub-
sections: 
"(e) CONDITIONS FOR PROGRESS PAYMENTS.—(1) The executive 
agency shall ensure that any pajnnent for work in progress (includ-
ing materials, labor, and other items) under a contract of an execu-
tive agency that provides for such pajonents is commensurate with 
the work accomplished that meets standards established under 
the contract. The contractor shall provide such information and 
evidence as the executive agency determines necessary to permit 
the executive agency to carry out the preceding sentence. 
"(2) The executive agency shall ensure that progress payments 
referred to in paragraph (1) are not made for more than 80 percent 
of the work accomplished under the contract so long as the executive 
agency has not made the contractual terms, specifications, £uid 
price definite. 
"(3) This subsection applies to any contract in an amount 
greater than $25,000. 
"(f) CONDITIONS FOR PAYMENTS FOR COMMERCIAL ITEMS.—(1) 
Payments under subsection (a) for commercial items may be made 
under such terms and conditions as the head of the executive 
agency determines are appropriate or customary in the commercial 
marketplace and are in the best interests of the United States. 
The head of the executive agency shall obtain adequate security 
for such payments. If the security is in the form of a lien in 
favor of the United States, such lien is paramount to all other 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3305 
liens and is effective immediately upon the first payment, without 
filing, notice, or other action by the United States. 
"(2) Advance payments made under subsection (a) for commer-
cial items may include pa3anents, in a total amount of not more 
/ 
than 15 percent of the contract price, in advance of any performance 
of worit under the contract. 
/ 
"(3) The conditions of subsections (d) and (e) need not be applied 
/ 
if they would be inconsistent, as determined by the head of the 
executive agency, with commercial terms and conditions pursuant 
to paragraphs (1) and (2).". 
"(g) ACTION IN CASE OF FRAUD.—(1) In any case in which 
the remedy coordination official of an executive agency finds that 
there is substantial evidence that the request of a contractor for 
advance, partial, or progress pajm[ient under a contract awarded 
by that executive agency is based on fraud, the remedy coordination 
^ 
official shall recommend that the executive agency reduce or sus-
pend further pajonents to such contractor. 
"(2) The head of an executive agency receiving a recommenda-
tion under paragraph (1) in the case of a contractor's request 
for payment under a contract shall determine whether there is 
substantial evidence that the request is based on fraud. Upon 
making such a determination, the head of the executive agency 
may reduce or suspend further payments to the contractor under 
such contract. 
"(3) The extent of any reduction or suspension of pa3nnents 
by an executive agency under paragraph (2) on the basis of fraud 
shall be reasonably commensurate with the anticipated loss to 
the United States resulting from the fraud. 
"(4) A written justification for each decision of the head of 
an executive agency whether to reduce or suspend payments under 
paragraph (2), and for each recommendation received by the execu-
tive agency in connection with such decision, shall be prepared 
and be retained in the files of the executive agency. 
"(5) The head of each executive agency shall prescribe proce-
dures to ensure that, before the head of the executive agency 
decides to reduce or suspend pa3nnents in the case of a contractor 
under paragraph (2), the contractor is afforded notice of the pro-
posed reduction or suspension and an opportunity to submit matters 
to the executive agency in response to such proposed reduction 
or suspension. 
"(6) Not later than 180 days after the date on which the 
head of an executive agency reduces or suspends payments to 
a contractor under paragraph (2), the remedy coordination official 
of the executive agency shall— 
"(A) review the determination of fi*aud on which the reduc-
tion or suspension is based; and 
"(B) transmit a recommendation to the head of such execu-
tive agency whether the suspension or reduction should con-
tinue. 
"(7) The head of each executive agency who receives rec-
ommendations made by a remedy coordination official of the execu-
tive agency to reduce or suspend payments under paragraph (2) 
during a fiscal year shall prepare for such year a report that 
contains the recommendations, the actions taken on the rec-
ommendations and the reasons for such actions, and an assessment 
of the effects of such actions on the Federal Grovernment. Any 
108 STAT. 3306 
PUBLIC LAW 103-355—OCT. 13, 1994 
such report shall be available to any Member of Congress upon 
request. » 
"(8) The head of £in executive agency may not delegate respon-
sibilities under this subsection to any person in a position below 
level IV of the Executive Schedule. 
"(9) In this subsection, the term 'remedy coordination official', 
with respect to an executive agency, means the person or entity 
in that executive agency who coordinates within that executive 
agency the administration of criminal, civil, administrative, Euid 
contractual remedies resulting from investigations of fraud or 
corruption related to procurement activities.". 
41 use 255 note. 
(f) RELATIONSHIP TO PROMPT PAYMENT REQUIREMENTS.—The 
amendments made by this section are not intended to impair or 
modify procedures required by the provisions of chapter 39 of title 
31, United States Code, and the regulations issued pursuant to 
such provisions of law (as such procedures are in effect on the 
date of the enactment of this Act), except that the Government 
may accept payment terms offered by a contractor offering a 
commercial item. 
PART III—ACQUISITIONS GENERALLY 
SEC. 2091. GOVERNMENT-WIDE APPLICATION OF PAYMENT PROTEC-
TIONS FOR SUBCONTRACTORS AND SUPPLIERS. 
Section 806 of the National Defense Authorization Act for Fiscal 
Years 1992 and 1993 (Public Law 102-190; 10 U.S.C. 2301 note) 
is amended by striking out subsection (c) and inserting in lieu 
thereof the following: 
"(c) GOVERNMENT-WIDE APPLICABILITY.—The Federal Acquisi-
tion Regulatory Council (established by section 25(a) of the Office 
of Federal Procurement Policy Act) shall modify the Federal Acquisi-
tion Regulation (issued pursuant to section 25(c)(1) of the (3ffice 
of Federal Procurement Policy Act (41 U.S.C. 421(c)(1)) to apply 
Government-wide the requirements that the Secretary is required 
under subsection (a) to prescribe in regulations applicable with 
respect to the Department of Defense contracts.". 
Subtitle B—Cost Principles 
PART I—ARMED SERVICES ACQUISITIONS 
SEC. 2101. ALLOWABLE CONTRACT COSTS. 
(a) EXTENSION OF COVERAGE TO COAST GUARD AND NASA; 
OTHER MISCELLANEOUS AMENDMENTS.—Section 2324 of title 10, 
United States Code, is amended as follows: 
(1) Subsection (a) is amended— 
(A) by inserting after "(a)" the following: "INDIRECT 
X 
COST THAT VIOLATES A FAR COST PRINCIPLE.—"; 
(B) by striking out "Secretary of Defense" and inserting 
in Ueu thereof "head of an agency^'; 
(C) by striking out "Department of Defense" and insert-
ing in lieu thereof "agency"; and 
(D) by striking out "the Department of Defense Supple-
ment" and inserting in Ueu thereof "applicable agency 
supplement". 
(2) Subsection (b) is amended— 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3307 
(A) by inserting after "(b)" the following: "PENALTY 
FOR VIOLATION OF COST PRINCIPLE.—"; 
(B) in subparagraph (B) of paragraph (1) by striking 
out "regulations issued by the Secretary" and inserting 
in lieu thereof "provisions in the Federal Acquisition Regu-
lation"; and 
(C) by striking out "Secretarjr" each place it appears 
and inserting in lieu thereof "head of the agencjr". 
(3) Subsection (c) is amended— 
(A) by inserting after "(c)" the following: "WAIVER OF 
PENALTY.—"; and 
(B) by striking out "The Secretary shall prescribe regu-
lations providing" in the first sentence and inserting in 
lieu thereof 'The Federal Acquisition Regulation shall pro-
vide". 
(4) Subsection (d) is amended— 
(A) by inserting after "(d)" the following: "APPLICABIL-
ITY OF CONTRACT DISPUTES PROCEDURE TO DISALLOWANCE 
OF COST AND ASSESSMENT OF PENALTY.—"; and 
(B) by striking out "the Secretary" and inserting in 
lieu thereof "the head of an agencj^. 
(5) Subsection (e) is amended— 
(A) by inserting after "(e)" the following: "SPECIFIC 
COSTS NOT ALLOWABLE.—"; 
(B) in subparagraph (D) of paragraph (1), by striking 
out "regulations of the Secretary of Defense" and inserting 
in lieu thereof "provisions of the Federal Acquisition Regu-
lation"; 
(C) in subparagraph (M) of paragraph (1), by striking 
out "regulations prescribed by the Secretary of Defense" 
and inserting in lieu thereof "the Federal Acquisition Regu-
lation"; 
(D) in subparagraph (A) of paragraph (2), by inserting 
"of Defense" after "Secretary" the first place it occurs; 
(E) in subparagraph (C) of paragraph (2), by striking 
out "head of the agencjr" in the first sentence and inserting 
in lieu thereof "Secretary of Defense"; 
(F) in subparagraph (A) of paragraph (3), by striking 
out "regulations prescribed by the Secretary" and inserting 
in lieu thereof "the Federal Acquisition Regulation"; and 
(G) by amending paragraph (4) to read as follows: 
"(4) The provisions of the Federal Acquisition Regulation 
implementing this section may establish appropriate definitions, 
exclusions, limitations, and qualifications.". 
(6) Subsection (0 is amended— 
(A) in paragraph (1)— 
(i) by striking out "(1)" and EJI that follows through 
'The amendments" and inserting in lieu thereof the 
following: "REQUIRED REGULATIONS.—(1) The Federal 
Acquisition Regulation shall contain provisions on the 
allowability of contractor costs. Such provisions", and 
(ii) by striking out 'These regulations" and insert-
ing in lieu thereof'The regulations"; and 
(B) in paragraphs (2), (3), and (4)— 
(i) by striking out "defense" before "contract audi-
tor" each place it appears, and 
79-194 0—95—22 : QL 3 Part 4 
108 STAT. 3308 
PUBLIC LAW 103-355—OCT. 13, 1994 
(ii) by striking out "regulation" each place it 
appears and inserting in lieu thereof "Federal Acquisi-
tion Regulation". 
(7) Subsection (g) is amended to read as follows: 
"(g) APPLICABILITY OF REGULATIONS TO SUBCONTRACTORS.—The 
regulations referred to in subsections (e) and (f)(1) shall require 
prime contractors of a covered contract, to the maximum extent 
practicable, to apply the provisions of such regulations to all sub-
contractors of the covered contract.". 
(8) Subsection (h) is amended— 
(A) by inserting after "(h)" the following: "CONTRACTOR 
CERTIFICATION REQUIRED.—"; 
(B) by striking out "by the Secretary" in paragraph 
(1) and inserting in lieu thereof "in the Federal Acquisition 
Regulation"; and 
(C) by striking out "Secretary of Defense" in paragraph 
(2) and inserting in lieu thereof "head of the agency". 
(9) Subsection (i) is amended by striking out "The submis-
sion to the Department of Defense" and inserting in lieu thereof 
"PENALTIES FOR SUBMISSION OF COST KNOWN AS NOT ALLOW-
ABLE.—^The submission to an agency". 
(10) Subsection (j) is amended— 
(A) by inserting after "(j)" the following: "CONTRACTOR 
To HAVE BURDEN OF PROOF.—^"; and 
(B) by striking out "United States Claims Court" and 
inserting in lieu thereof "United States Court of Federal 
Claims". 
(11) Subsection (k) is amended— 
(A) by inserting after "(k)" the following: "PROCEEDING 
COSTS NOT ALLOWABLE.—"; 
(B) in paragraph (2), by striking out "decision by the 
Department of Defense—** and inserting in lieu thereof 
"decision—^"; and 
(C) in paragraph (4)— 
(i) by inserting after "head of the agency" the 
following: "or Secretary of the military department con-
cerned", 
(ii) by striking out "under regulations prescribed 
by such agency head" and inserting in lieu thereof 
"in accordance with the Federal Acquisition Regula-
tion", 
(iii) by inserting "or Secretary" after "agency head", 
and 
(iv) by inserting before the period at the end the 
following: "or military department". 
(b) UNALLOWABILITY OF COSTS TO INFLUENCE LOCAL LEGISLA-
TIVE BODIES.—Subsection (e)(1)(B) of section 2324 of title 10, United 
States Code, is amended by striking out "or a State legislature" 
and inserting in lieu thereof ", a State legislature, or a legislative 
body of a political subdivision of a State". 
(c) CLARIFICATION OF COST PRINCIPLES.—Subsection (f)(1) of 
such section is amended by adding at the end the following: 
"(Q) Conventions.". 
(d) COVERED CONTRACT DEFINED.—Such section is further 
amended by striking out subsections (1) and (m) and inserting 
in lieu thereof the following: 
"(1) DEFINITIONS.—In this section: 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3309 
"(1)(A) The term 'covered contract' means a contract for 
an amount in excess of $500,000 that is entered into by the 
head of an agency, except that such term does not include 
a fixed-price contract without cost incentives or any firm fixed-
price contract for the purchase of commercial items. 
"(B) Effective on October 1 of each year that is divisible 
by five, the amount set fori;h in subparagraph (A) shall be 
adjusted to the equivalent amount in constant fiscal year 1994 
dollars. An amount, as so adjusted, that is not evenly divisible 
by $50,000 shall be rounded to the nearest multiple of $50,000. 
In the case of an amount that is evenly divisible by $25,000 
but is not evenly divisible by $50,000, the amount shall be 
rounded to the next higher multiple of $50,000. 
"(2) The term 'head of the agency* or 'agency head' does 
not include the Secretary of a military department. 
"(3) The term 'agency* means the Department of Defense, 
the Coast Guard, and the National Aeronautics and Space 
Administration.". 
(e) REGULATIONS.—The regulations of the Secretary of Defense 
lO use 2324 
implementing section 2324 of title 10, United States Code, shall "°*®-
remain in effect until the Federal Acquisition Regulation is revised 
to implement the amendments made by this section. 
SEC. 2102. REPEAL OF AUTHORITY FOR CONTRACT PROFIT CONTROLS 
DURING EMERGENCY PERIODS. 
(a) REPEAL.—Section 2382 of title 10, United States Code, is 
repealed. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 141 of such title is amended by striking out the 
item relating to section 2382. 
PART II—CIVILIAN AGENCY ACQUISITIONS 
SEC. 2151. ALLOWABLE CONTRACT COSTS. 
Section 306 of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 256) is amended to read as follows: 
"SEC. 306. ALLOWABLE COSTS. 
"(a) INDIRECT COST THAT VIOLATES A FAR COST PRINCIPLE.— 
An executive agency shall require that a covered contract provide 
that if the contractor submits to the executive agency a proposal 
for settlement of indirect costs incurred by the contractor for any 
period after such costs have been accrued and if that proposal 
includes the submission of a cost which is unallowable because 
the cost violates a cost principle in the Federal Acquisition Regula-
tion (referred to in section 25(c)(1) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 421(c)(1)) or an executive agency supple-
ment to the Federal Acquisition Regulation, the cost shall be dis-
allowed. 
"(b) PENALTY FOR VIOLATION OF COST PRINCIPLE.—(1) If the 
executive agency determines that a cost submitted by a contractor 
in its proposal for settlement is expressly unallowable under a 
cost principle referred to in subsection (a) that defines the allow-
ability of specific selected costs, the executive agency shall assess 
a penalty against the contractor in an amount equal to— 
"(A) the amount of the disallowed cost allocated to covered 
contracts for which a proposal for settlement of indirect costs 
has been submitted; plus 
108 STAT. 3310 
PUBLIC LAW 103-355—OCT. 13, 1994 
"(B) interest (to be computed based on provisions in the 
Federal Acquisition Regulation) to compensate the United 
States for the use of any funds which a contractor has been 
paid in excess of the amount to which the contractor was 
entitled. 
"(2) If the executive agency determines that a proposal for 
settlement of indirect costs submitted by a contractor includes a 
cost determined to be unallowable in the case of such contractor 
before the submission of such proposal, the executive agency shall 
assess a penalty against the contractor in an amount equal to 
two times the amount of the disallowed cost allocated to covered 
contracts for which a proposal for settlement of indirect costs has 
been submitted. 
"(c) WAIVER OF PENALTY.—The Federal Acquisition Regulation 
shall provide for a penalty under subsection (b) to be waived in 
the case of a contractor's proposal for settlement of indirect costs 
when— 
"(1) the contractor withdraws the proposal before the formal 
initiation of an audit of the proposal by the Federal Government 
and resubmits a revised proposal; 
"(2) the amount of unaUowable costs subject to the penalty 
is insignificant; or 
"(3) the contractor demonstrates, to the contracting officer's 
satisfaction, that— 
"(A) it has established appropriate policies and person-
nel training and an internal control and review system 
that provide assurances that imallowable costs subject to 
penalties are precluded from being included in the contrac-
tor's proposal for settlement of indirect costs; and 
(B) the unallowable costs subject to the penalty were 
inadvertently incorporated into the proposal. 
"(d) APPLICABILITY OF CONTRACT DISPUTES PROCEDURE TO DIS-
ALLOWANCE OF COST AND ASSESSMENT OF PENALTY.—An action 
of an executive agency under subsection (a) or (b)— 
"(1) shall be considered a final decision for the purposes 
of section 6 of the Contract Disputes Act of 1978 (41 U.S.C. 
605); and 
"(2) is appealable in the manner provided in section 7 
of such Act (41 U.S.C. 606). 
"(e) SPECIFIC COSTS NOT ALLOWABLE.—(1) The following costs 
are not allowable under a covered contract: 
"(A) Costs of entertainment, including amusement, diver-
sion, and social activities, and any costs directly associated 
with such costs (such as tickets to shows or sports events, 
meals, lodging, rentals, transportation, and gratuities). 
"(B) Costs incurred to influence (directly or indirectly) legis-
lative action on any matter pending before Congress, a State 
legislature, or a legislative body of a political subdivision of 
a State. 
"(C) Costs incurred in defense of any civil or criminal 
fraud proceeding or similar proceeding (including filing of any 
false certification) brought by the United States where the 
contractor is found liable or had pleaded nolo contendere to 
a charge of fraud or similar proceeding (including filing of 
a false certification). 
"(D) Payments of fines and penalties resulting from viola-
tions of, or failure to comply with. Federal, State, local, or 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3311 
foreign laws and regulations, except when incurred as a result 
of compliance with specific terms and conditions of the contract 
or specific written instructions from the contracting officer 
authorizing in advance such payments in accordance with 
applicable provisions of the Federal Acquisition Regulation. 
"(E) Costs of membership in any social, dining, or country 
club or organization. 
"(F) Costs of alcoholic beverages. 
"(G) Contributions or donations, regardless of the recipient. 
"(H) Costs of advertising designed to promote the contractor 
or its products. 
"(I) Costs of promotional items and memorabilia, including 
models, gifts, £uid souvenirs. 
"(J) Costs for travel by commercial aircraft which exceed 
the amount of the standard commercial fare. 
"(K) Costs incurred in making any payment (commonly 
known as a 'golden parachute pa3nnent') which is— 
"(i) in an amount in excess of the normal severance 
pay paid by the contractor to an employee upon termination 
of emplojonent; and 
"(ii) is paid to the employee contingent upon, and fol-
lowing, a change in management control over, or ownership 
of, the contractor or a substantial portion of the contractor's 
assets. 
"(L) Costs of commercial insurance that protects against 
the costs of the contractor for correction of the contractor's 
own defects in materials or workmanship. 
"(M) Costs of severance pay paid by the contractor to for-
eign nationals employed by the contractor under a service con-
tract performed outside the United States, to the extent that 
the amount of severance pay paid in any case exceeds the 
amount paid in the industry involved under the customary 
or prevailing practice for firms in that industry providing simi-
lar services in the United States, as determined under the 
Federal Acquisition Regulation. 
"(N) Costs of severance pay paid by the contractor to a 
foreign national employed by the contractor under a service 
contract performed in a foreign country if the termination of 
the employment of the foreign national is the result of the 
closing of, or the curtailment of activities at, a United States 
facility in that country at the request of the government of 
that country. 
"(O) Costs incurred by a contractor in connection with 
any criminal, civil, or sidministrative proceeding commenced 
by the United States or a State, to the extent provided in 
subsection (k). 
"(2)(A) Pursuant to the Federal Acquisition Regulation and 
subject to the availability of appropriations, an executive agency, 
in awarding a covered contract, may waive the application of the -
provisions of paragraphs (1)(M) and (1)(N) to that contract if the 
executive agency determines that— 
"(i) the application of such provisions to the contract would 
adversely affect the continuation of a program, project, or activ-
ity that provides significant support services for employees 
of the executive agency posted outside the United States; 
"(ii) the contractor has taken (or has established plans 
to take) appropriate actions within the contractor's control to 
108 STAT. 3312 
PUBLIC LAW 103-355—OCT. 13, 1994 
minimize the amount and number of incidents of the payment 
of severance pay by the contractor to employees under the 
contract who are foreign nationals; and 
"(iii) the payment of severance pay is necessary in order 
to comply with a law that is generally applicable to a significant 
number of businesses in the country in which the foreign 
national receiving the payment performed services under the 
contract or is necessary to comply with a collective bargaining 
agreement. 
"(B) An executive agency shall include in the solicitation for 
a covered contract a statement indicating— 
"(i) that a waiver has been granted under subparagraph 
(A) for the contract; or 
"(ii) whether the executive agency will consider granting 
such a waiver, and, if the executive agency will consider grant-
ing a waiver, the criteria to be used in granting the waiver. 
"(C) An executive agency shall make the final determination 
regarding whether to grsint a waiver under subparagraph (A) with 
respect to a covered contract before award of the contract. 
"(3) The provisions of the Federal Acquisition Regulation 
implementing this section may establish appropriate definitions, 
exclusions, Umitations, and qualifications. Any submission by a 
contractor of costs which are incurred by the contractor and which 
are claimed to be allowable under Department of Energy manage-
ment and operating contracts shall be considered a 'proposal for 
settlement of indirect costs incurred by the contractor for any 
period after such costs have been accrued', as used in this section. 
"(f) 
REQUIRED REGULATIONS.—(1) The Federal Acquisition 
Regulation shall contain provisions on the allowability of contractor 
costs. Such provisions shall define in detail and in specific terms 
those costs which are unallowable, in whole or in part, under 
covered contracts. The regulations shall, at a minimum, clarify 
the cost principles applicable to contractor costs of the following: 
"(A) Air shows. 
"(B) Membership in civic, community, and professional 
organizations. 
"(C) Recruitment. 
"(D) Employee morale and welfare. 
"(E) Actions to influence (directly or indirectly) executive 
branch action on regulatory and contract matters (other than 
costs incurred in regard to contract proposals pursuant to solic-
ited or unsolicited bids). 
"(F) Community relations. 
"(G) Dining facilities. 
"(H) Professional and consulting services, including legal 
services. 
"(I) Compensation. 
"(J) Selling and marketing. 
"(K) Travel. 
"(L) Public relations. 
"(M) Hotel and meal expenses. 
"(N) Expense of corporate aircraft. 
"(O) Company-furnished automobiles. 
"(P) Advertising. 
"(Q) Conventions. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3313 
"(2) The Federal Acquisition Regulation shall require that a 
contracting officer not resolve any questioned costs until the 
contracting officer has obtained— 
"(A) adequate documentation with respect to such costs; 
and 
"(B) the opinion of the contract auditor on the allowabiUty 
of such costs. 
"(3) The Federal Acquisition Regulation shall provide that, 
to the maximum extent practicable, a contract auditor be present 
at any negotiation or meeting with the contractor regarding a 
determination of the allowabiUty of indirect costs of the contractor. 
"(4) The Federal Acquisition Regulation shall require that all 
categories of costs designated in the report of a contract auditor 
as questioned with respect to a proposal for settlement be resolved 
in such a manner that the amount of the individual questioned 
costs that are paid will be reflected in the settlement. 
"(g) APPLICABILITY OF REGULATIONS TO SuBcohfTRACTORS.—The 
regulations referred to in subsections (e) and (f)(1) shall require 
prime contractors of a covered contract, to the maximum extent 
practicable, to apply the provisions of such regulations to all sub-
contractors of the covered contract. 
"(h) CONTRACTOR CERTIFICATION REQUIRED.—(1) A proposal for 
settlement of indirect costs applicable to a covered contract shall 
include a certification by an official of the contractor that, to the 
best of the certifying official's knowledge and belief, all indirect 
costs included in the proposal are allowable. Any such certification 
shall be in a form prescribed in the Federal Acquisition Regulation. 
"(2) An executive agency may, in an exceptional case, waive 
the requirement for certification under paragraph (1) in the case 
of any contract if the agency— 
"(A) determines in such case that it would be in the interest 
of the United States to waive such certification; and 
"(B) states in writing the reasons for that determination 
and makes such determination available to the public. 
"(i) PENALTIES FOR SUBMISSION OF COST KNOWN AS NOT ALLOW-
ABLE.—^The submission to an executive agency of a proposal for 
settlement of costs for any period after such costs have been accrued 
that includes a cost that is expressly specified by statute or regula-
tion as being unallowable, with the knowledge that such cost is 
unallowable, shall be subject to the provisions of section 287 of 
title 18, United States Code, and section 3729 of title 31, United 
States (ilode. 
"(j) CONTRACTOR TO HAVE BURDEN OF PROOF.—In a proceeding 
before a board of contract appeals, the United States Court of 
Federal Claims, or any other Federal court in which the reasonable-
ness of indirect costs for which a contractor seeks reimbursement 
fi'om the United States is in issue, the burden of proof shall be 
upon the contractor to establish that those costs are reasonable. 
"(k) PROCEEDING COSTS NOT ALLOWABLE.—(1) Except as other-
wise provided in this subsection, costs incurred by a contractor 
in connection with any criminal, civil, or administrative proceeding 
commenced by the United States or a State are not allowable 
as reimbursable costs under a covered contract if the proceeding 
(A) relates to a violation of, or failure to comply with, a Federal 
or State statute or regulation, and (B) results in a disposition 
described in paragraph (2). 
108 STAT. 3314 
PUBLIC LAW 103-355—OCT. 13, 1994 
"(2) A disposition referred to in paragraph (1)(B) is any of 
the following: 
"(A) In the case of a criminal proceeding, a conviction 
(including a conviction pursuant to a plea of nolo contendere) 
by reason of the violation or failure referred to in paragraph 
(1). 
"(B) In the case of a civil or administrative proceeding 
involving an allegation of fraud or similar misconduct, a deter-
mination of contractor liability on the basis of the violation 
or failure referred to in paragraph (1). 
"(C) In the case of any civil or administrative proceeding, 
the imposition of a monetary penalty by reason of the violation 
or failure referred to in paragraph (1). 
"(D) A final decision— 
"(i) to debar or suspend the contractor, 
"(ii) to rescind or void the contract, or 
"(iif.) to terminate the contract for default, 
by reason of the violation or failure referred to in paragraph 
(1). 
"(E) A disposition of the proceeding by consent or com-
promise if such action could have resulted in a disposition 
described in subparagraph (A), (B), (C), or (D). 
"(3) In the case of a proceeding referred to in paragraph (1) 
that is commenced by the United States and is resolved by consent 
or compromise pursuant to an agreement entered into by a contrac-
tor and the United States, the costs incurred by the contractor 
in connection with such proceeding that are otherwise not allowable 
as reimbursable costs under such paragraph may be allowed to 
the extent specifically provided in such agreement. 
"(4) In the case of a proceeding referred to in paragraph (1) 
that is commenced by a State, the executive agency that awarded 
the covered contract involved in the proceeding may allow the 
costs incurred by the contractor in connection with such proceeding 
as reimbursable costs if the executive agency determines, in accord-
ance with the Federal Acquisition Regulation, that the costs were 
incurred as a result of (A) a specific term or condition of the 
contract, or (B) specific written instructions of the executive agency. 
"(5)(A) Except as provided in subparagraph (C), costs incurred 
by a contractor in connection with a criminal, civil, or administrative 
proceeding commenced by the United States or a State in connection 
with a covered contract may be allowed as reimbursable costs 
under the contract if such costs are not disallowable under para-
graph (1), but only to the extent provided in subparagraph (B). 
"(B)(i) The amount of the costs allowable under subparagraph 
(A) in any case may not exceed the amount equal to 80 percent 
of the amount of the costs incurred, to the extent that such costs 
are determined to be otherwise allowable and allocable imder the 
Federal Acquisition Regulation. 
"(ii) Regulations issued for the piu-pose of clause (i) shall provide 
for appropriate consideration of the complexity of procurement 
litigation, generally accepted principles governing the award of 
legal fees in civil actions involving the United States as a party, 
and such other factors as may be appropriate. 
"(C) In the case of a proceeding referred to in subparagraph 
(A), contractor costs otherwise allowable as reimbursable costs 
under this paragraph are not allowable if (i) such proceeding 
involves the same contractor misconduct alleged as the basis of 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3315 
another criminal, civil, or administrative proceeding, and (ii) the 
costs of such other proceeding are not allowable under paragraph 
(1). 
"(6) In this subsection: 
"(A) The term 'proceeding* includes an investigation. 
"(B) The term 'costs', with respect to a proceeding— 
"(i) means all costs incurred by a contractor, whether 
before or after the commencement of any such proceeding; 
and 
"(ii) includes— 
"(I) administrative and clerical expenses; 
"(II) the cost of legal services, including legal serv-
ices performed by an employee of the contractor; 
"(III) the cost of the services of accountants and 
consultants retsdned by the contractor; and 
"(IV) the pay of directors, officers, and employees 
of the contractor for time devoted by such directors, 
officers, and employees to such proceeding. 
"(C) The term 'penalty* does not include restitution, 
reimbursement, or compensatory damages. 
"(1) COVERED CONTRACT DEFINED.—(1) In this section, the term 
'covered contract' means a contract for an amount in excess of 
$500,000 that is entered into by an executive agency, except that 
such term does not include a fixed-price contract without cost incen-
tives or any firm, fixed price contract for the purchase of commercial 
items. 
"(2) Effective on October 1 of each year that is divisible by 
five, the amount set forth in paragraph (1) shall be adjusted to 
the equivalent amount in constant fiscal year 1994 dollars. An 
amount, as so adjusted, that is not evenly divisible by $50,000 
shall be rounded to the nearest multiple of $50,000. In the case 
of an amount that is evenly divisible by $25,000 but is not evenly 
divisible by $50,000, the amount shall be rounded to the next 
higher multiple of $50,000.". 
PART III—ACQUISITIONS GENERALLY 
SEC. 2191. TRAVEL EXPENSES OF GOVERNMENT CONTRACTORS. 
Section 24 of the Office of Federal Procurement Pohcy Act 
(41 U.S.C. 420) is repealed. 
SEC. 2192. REVISION OF COST PRINCIPLE RELATING TO ENTERTAIN- 41 USC 256 note. 
MENT, GIFT, AND RECREATION COSTS FOR CONTRACTOR 
EMPLOYEES. 
(a) COSTS NOT ALLOWABLE.—(1) The costs of gifts or recreation 
for employees of a contractor or members of their famiUes that 
are provided by the contractor to improve employee morale or 
performance or for any other purpose are not allowable under 
a covered contract unless, within 120 days afl«r the date of the 
enactment of this Act, the Federal Acquisition Regulatory Council 
prescribes amendments to the Federal Acquisition Regulation speci-
fying circumstances under which such costs are allowable under 
a covered contract. 
(2) Not later than 90 days after the date of the enactment 
of this Act, the Federal Acquisition Regulatory Council shall amend 
the cost principle in the Federal Acquisition Regulation that is 
108 STAT. 3316 
PUBLIC LAW 103-355—OCT. 13, 1994 
set out in section 31.205-14 of title 48, Code of Federal Regulations, 
relating to unallowability of entertainment costs— 
(A) by inserting in the cost principle a statement that 
costs made specifically unallowable under that cost principle 
are not allowable under any other cost principle; and 
(B) by striking out "(but see 31.205-1 and 31.205-13)". 
(b) DEFINITIONS.—In this section: 
(1) The term "employee" includes officers and directors 
of a contractor. 
(2) The term "covered contract" has the meaning given 
such term in section 2324(1) of title 10, United States Code 
(as amended by section 2101(c)), and section 306(1) of the Fed-
eral Property and Administrative Services Act of 1949 (as added 
by section 2151). 
(c) EFFECTIVE DATE.—^Any amendments to the Federal Acquisi-
tion Regulation made pursuant to subsection (a) shall apply with 
respect to costs incurred after the date on which the amendments 
made by section 2101 apply (as provided in section 10001) or the 
date on which the amendments made by section 2151 apply (as 
provided in section 10001), whichever is later. 
Subtitle C—^Audit and Access to Records 
PART I—ARMED SERVICES ACQUISITIONS 
SEC. 2201. CONSOLIDATION AND REVISION OF AUTHORITY TO EXAM-
INE RECORDS OF CONTRACTORS. 
(a) AUTHORITY.—(1) Section 2313 of title 10, United States 
Code, is amended to read as follows: 
*
*
§ 2313. Examination of records of contractor 
"(a) AGENCY AUTHORITY.—<1) The head of an agency, acting 
through an authorized representative, is authorized to inspect the 
plant and audit the records of— 
"(A) a contractor performing a cost-reimbursement, incen-
tive, time-and-materials, labor-hour, or price-redeterminable 
contract, or any combination of such contracts, made by that 
agency under this chapter; and 
"(B) a subcontractor performing any cost-reimbursement, 
incentive, 
time-and-materials, 
labor-hour, 
or 
price-
redeterminable subcontract or any combination of such sub-
contracts under a contract referred to in subparagraph (A). 
"(2) The head of an agency, acting through gin authorized rep-
resentative, is authorized, for the purpose of evaluating the 
accuracy, completeness, and currency of certified cost or pricing 
data required to be submitted pursuant to section 2306a of this 
title with respect to a contract or subcontract, to examine all records 
of the contractor or subcontractor related to— 
"(A) the proposal for the contract or subcontract; 
"(B) the discussions conducted on the proposal; 
"(C) pricing of the contract or subcontract; or 
"(D) performance of the contract or subcontract. 
"(b) DCAA SUBPOENA AUTHORITY.—(1) The Director of the 
Defense Contract Audit Agency (or any successor agency) may 
require by subpoena the production of any records of a contractor 
that the Secretary of Defense is authorized to audit or examine 
under subsection (a). 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3317 
"(2) Any such subpoena, in the case of contumacy or refusal 
to obey, shall be enforceable by order of an appropriate United 
States district court. 
"(3) The authority provided by paragraph (1) may not be redele-
gated. 
"(4) The Director (or any successor official) shall submit an 
annual report to the Secretsuy of Defense on the exercise of such 
authority during the preceding year and the reasons why such 
authority was exercised in any instance. The Secretary shall forward 
a copy of each such report to the Committees on Armed Services 
of the Senate and House of Representatives. 
"(c) COMPTROLLER GENERAL AUTHORITY.—(1) Except as pro-
vided in paragraph (2), each contract awarded after using proce-
dures other than sealed bid procedures shall provide that the 
Comptroller General and his representatives are authorized to 
examine any records of the contractor, or any of its subcontractors, 
that directly pertain to, and involve transactions relating to, the 
contract or subcontract. 
"(2) Paragraph (1) does not apply to a contract or subcontract 
with a foreign contractor or foreign subcontractor if the head of 
the agency concerned determines, with the concurrence of the 
Comptroller Greneral or his designee, that the appKcation of that 
paragraph to the contract or subcontract would not be in the public 
interest. However, the concurrence of the Comptroller General or 
his designee is not required— 
"(A) where the contractor or subcontractor is a foreign 
government or agency thereof or is precluded by the laws 
of the country involved from making its records available for 
examination; and 
"(B) where the head of the agency determines, after taking 
into account the price and availabihty of the property and 
services from United States sources, that the public interest 
would be best served by not applying paragraph (1). 
"(3) Paragraph (1) may not be construed to require a contractor 
or subcontractor to create or maintain any record that the contractor 
or subcontractor does not maintain in the ordinary course of busi-
ness or pursuant to another provision of law. 
"(d) LIMITATION ON PREAWARD AUDITS RELATING TO INDIRECT 
COSTS.—^The head of an agency may not perform a preaward audit 
to evaluate proposed indirect costs imder any contract, subcontract, 
or modification to be entered into in accordance with this chapter 
in any case in which the contracting officer determines that the 
objectives of the audit can reasonably be met by accepting the 
results of an audit conducted by any other department or agency 
of the Federal Government within one year preceding the date 
of the contracting officer's determination. 
"(e) LIMITATION.—^The authority of the head of an agency under 
subsection (a), and the authority of the Comptroller General under 
subsection (c), with respect to a contract or subcontract shall expire 
three years sifter final payment under such contract or subcontract. 
"(f) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section does 
not apply to the following contracts: 
"(1) Contracts for utility services at rates not exceeding 
those established to apply uniformly to the pubHc, plus any 
applicable reasonable connection charge. 
108 STAT. 3318 
PUBLIC LAW 103-355—OCT. 13, 1994 
"(g) FORMS OF ORIGINAL RECORD STORAGE.—Nothing in this 
section shall be construed to preclude a contractor from duplicating 
or storing original records in electronic form. 
"(h) USE OF IMAGES OF ORIGINAL RECORDS.—The head of an 
agency shall not require a contractor or subcontractor to provide 
original records in an audit carried out pursuant to this section 
if the contractor or subcontractor provides photographic or elec-
tronic images of the original records and meets tne following 
requirements: 
"(1) The contractor or subcontractor has estabUshed proce-
dures to ensure that the imaging process preserves the integ-
rity, reliability, and security of the original records. 
"(2) The contractor or subcontractor maintains an effective 
indexing system to permit timely and convenient access to 
the imaged records. 
"(3) The contractor or subcontractor retains the original 
records for a minimum of one year after imaging to permit 
periodic validation of the imaging systems. 
(i) RECORDS DEFINED.—In this section, the term 'records' 
includes books, documents, accoiuiting procedures and practices, 
and other data, regardless of tjrpe and regardless of whether such 
items are in written form, in the form of computer data, or in 
any other form.". 
(2) The item relating to such section in the table of sections 
at the beginning of chapter 137 of title 10, United States Code, 
is amended to read as follows: 
"2313. Examination of records of contractor.". 
(b) REPEAL OF SUPERSEDED PROVISION.—<1) Section 2406 of 
title 10, United States Code, is repealed. 
(2) The table of sections at the beginning of chapter 141 of 
such title is amended by striking out the item relating to section 
2406. 
PART II—CIVILIAN AGENCY ACQUISITIONS 
SEC. 2251. AUTHORITY TO EXAMINE RECORDS OF CONTRACTORS. 
(a) AUTHORITY.—^Title III of the Federal Property and Adminis-
trative Services Act of 1949 (41 U.S.C. 251 et seq.), as amended 
by sections 1072 and 1251(a), is further amended by inserting 
after section 304B the following new section: 
41 u s e 254d. 
"SEC. 304C. EXAMINATION OF RECORDS OF CONTRACTOR. 
"(a) AGENCY AUTHORITY.—(1) The head of an executive agency, 
acting through an authorized representative, is authorized to 
inspect the plant and audit the records of— 
"(A) a contractor performing a cost-reimbursement, incen-
tive, time-and-materials, labor-hour, or price-redeterminable 
contract, or any combination of such contracts, made by that 
executive agency under this title; and 
"(B) a subcontractor performing any cost-reimbursement, 
incentive, 
time-and-materials, 
labor-hour, 
or 
price-
redeterminable subcontract or any combination of such sub-
contracts under a contract referred to in subparagraph (A). 
"(2) The head of an executive agency, acting through £in author-
ized representative, is authorized, for the purpose of evaluating 
the accuracy, completeness, and currency of certified cost or pricing 
data required to be submitted pursuant to section 304B with respect 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3319 
to a contract or subcontract, to examine all records of the contractor 
or subcontractor related to— 
"(A) the proposal for the contract or subcontract; 
"(B) the discussions conducted on the proposal; 
"(C) pricing of the contract or subcontract; or 
"(D) performance of the contract or subcontract. 
"(b) SUBPOENA POWER.—<1) The Inspector General of an execu-
tive agency appointed under section 3 or 8G of the Inspector Greneral 
Act of 1978 (5 U.S.C. App.) or, upon request of the head of an 
executive agency, the Director of the Defense Contract Audit Agency 
(or any successor agency) of the Department of Defense or the 
Inspector General of the (Jeneral Services Administration may 
require by subpoena the production of records of a contractor, 
access to which is provided for that executive agency by subsection 
(a). 
"(2) Any such subpoena, in the case of contumacy or refusal 
to obey, shall be enforceable by order of an appropriate United 
States district court. 
"(3) The authority provided by paragraph (1) may not be dele-
gated. 
"(4) In the year following a year in which authority provided 
in paragraph (1) is exercised for an executive agency, the head 
of the executive agency shedl submit to the Committee on Govern-
mental MFairs of the Senate and the Committee on Government > 
Operations of the House of Representatives a report on the exercise 
of such authority during such preceding year and the reasons why 
such authority was exercised in any instance. 
"(c) COMPTROLLER GENERAL AUTHORITY.—(1) Except as pro-
vided in paragraph (2), each contract awarded after using proce-
dures other than sealed bid procedures shall provide that the 
Comptroller General and his representatives are authorized to - -
examine any records of the contractor, or any of its subcontractors, 
that directly pertain to, and involve transactions relating to, the 
contract or subcontract. 
"(2) Paragraph (1) does not apply to a contract or subcontract 
with a foreign contractor or foreign subcontractor if the executive 
agency concerned determines, with the concurrence of the Comptrol-
ler General or his designee, that the apphcation of that paragraph 
to the contract or subcontract would not be in the public interest. 
However, the concurrence of the Comptroller General or his des-
ignee is not required— 
"(A) where the contractor or subcontractor is a foreign 
government or agency thereof or is precluded by the laws 
of the country involved from making its records available for 
examination; and 
"(B) where the executive agency determines, after taking 
into account the price and availability of the property and 
services from United States sources, that the public interest 
would be best served by not appl)dng paragraph (1). 
"(3) Paragraph (1) may not be construed to require a contractor 
or subcontractor to create or meiintain any record that the contractor 
or subcontractor does not maintain in the ordinary course of busi-
ness or pursuant to another provision of law. 
"(d) LIMITATION ON PREAWARD AUDITS RELATING TO INDIRECT 
COSTS.—^An executive agency may not perform a preaward audit 
to evaluate proposed indirect costs under any contract, subcontract, 
or modification to be entered into in accordance with this title 
108 STAT. 3320 
PUBLIC LAW 103-355—OCT. 13, 1994 
in any case in which the contracting officer determines that the 
objectives of the audit can reasonably be met by accepting the 
results of £ui audit conducted by any other department or agency 
of the Federal Government within one year preceding the date 
of the contracting officer's determination. 
"(e) LIMITATION.—^The authority of an executive agency luider 
subsection (a), and the authority of the Comptroller General under 
subsection (c), with respect to a contract or subcontract shall expire 
three years after final payment under such contract or subcontract. 
"(f) INAPPLICABILITY TO CERTAIN CONTRACTS.—This section does 
not apply to the following contracts: 
"(1) Contracts for utility services at rates not exceeding 
those established to apply uniformly to the public, plus any 
applicable reasonable connection charge. 
"(g) FORM OF ORIGINAL RECORD STORAGE.—Nothing in this 
section shall be construed to preclude a contractor from duplicating 
or storing original records in electronic form. 
"(h) USE OF IMAGES OF ORIGINAL RECORDS.—An executive 
agency shall not require a contractor or subcontractor to provide 
original records in an audit carried out pursuant to this section 
if the contractor or subcontractor provides photographic or electronic 
images of the origineJ records and meets the following requirements: 
"(1) The contractor or subcontractor has established proce-
dures to ensure that the imaging process preserves the integ-
rity, reliability, and security of the original records. 
"(2) The contractor or subcontractor maintains an effective 
indexing system to permit timely and convenient access to 
the imaged records. 
"(3) The contractor or subcontractor retains the original 
records for a minimum of one year after imaging to permit 
periodic validation of the imaging systems. 
(i) RECORDS DEFINED.—In this section, the term 'records' 
includes books, documents, accounting procedures and practices, 
and other data, regardless of type and regardless of whether such 
items are in written form, in the form of computer data, or in 
any other form.". 
(b) REPEAL OF SUPERSEDED PROVISION.—Section 304 of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
254) is amended by striking out subsection (c). 
Subtitle D—Claims and Disputes 
PART I—ARMED SERVICES ACQUISITIONS 
SEC. 2301. CERTIFICATION OF CONTRACT CLAIMS. 
(a) IN GENERAL.—Chapter 141 of title 10, United States Code, 
is amended by inserting after section 2409a the following new 
section 2410: 
**§2410. Requests for equitable adjustment or other relief: 
certification 
"(a) CERTIFICATION REQUIREMENT.—^A request for equitable 
adjustment to contract terms or request for relief under Public 
Law 85-804 (50 U.S.C. 1431 et seq.) that exceeds the simplified 
acquisition threshold may not be paid unless a person authorized 
to certify the request on behalf oi the contractor certifies, at the 
time the request is submitted, that— 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3321 
**(1) the request is made in good faith, and 
"(2) the supporting data are accurate and complete to the 
best of that person's knowledge and beUef. 
"(b) RESTRICTION ON LEGISLATIVE PAYMENT OF CLAIMS.—In 
the case of a contract of an agency named in section 2303(a) of 
this title, no provision of a law enacted after September 30, 1994, 
that directs the payment of a particular claim under such contract, 
a particular request for equitable adjustment to any term of such 
contract, or a particular request for relief under Public Law 85-
804 (50 U.S.C. 1431 et seq.) regarding such contract may be imple-
mented unless such provision of law— 
"(1) specifically refers to this subsection; and 
"(2) specifically states that this subsection does not apply 
with respect to the pa3mient directed by that provision of law. 
"(c) DEFINITION.—In this section, the term 'simplified acquisi-
tion threshold' has the meaning given that term in section 4(11) 
of the Office of Federal Procurement Policy Act.". 
(b) REPEAL OF RELATED PROVISION.—Section 2410e of title 10, 
United States Code, is repealed. 
(c) CLERICAL AMENDMENTS.—^The table of sections at the begin-
ning of chapter 141 of such title is amended— 
(A) by striking out the items relating to sections 2410 
and 2410e; and 
(B) by inserting after the item relating to section 2409a 
the following: 
'^410. Requests for equitable acyustment or other relief: certification.". 
SEC. 2302. SHIPBUILDING CLAIMS. 
(a) INCREASE IN TIME PERIOD DURING WmcH ADJUSTMENTS 
TO SHIPBUILDING CLAIMS MAY BE MADE.—Section 2405 of title 
10, United States Code, is amended in subsection (a)— 
(1) by striking out "entered into after December 7, 1983,"; 
and 
(2) by striking out "occurring more than 18 months before 
the submission of the claim, request, or demand." and inserting 
in lieu thereof the following: "that— 
"(1) in the case of a contract entered into after December 
7, 1983, and before the date of the enactment of the Federal 
Acquisition Streamlining Act of 1994, occurred more than 18 
months before the submission of the claim, request, or demand; 
and 
"(2) in the case of a contract entered into on or after 
the date of the enactment of the Federal Acquisition Streamlin-
ing Act of 1994, occurred more than 6 years before the submis-
sion of the claim, request, or demand.". 
(b) 
RESUBMISSION 
WITH 
CORRECTED 
CERTIFICATION.—Sub-
section (c) of such section is amended by adding at the end the 
following: 
"(4) This subsection appUes only with respect to a claim, 
request, or demand submitted before the effective date of this 
paragraph.". 
(c) APPLICABILITY.—Paragraphs (1) and (2) of section 2405(a) 
10 USC 2405 
of title 10, United States Code, as added by subsection (a)(2), ^°*®-
shall apply according to the provisions thereof on and after the 
date of the enactment of this Act, notwithstanding section 10001(b). 
108 STAT. 3322 
PUBLIC LAW 103-355—OCT. 13, 1994 
PART II—ACQUISITIONS GENERALLY 
SEC. 2351. CONTRACT DISPUTES ACT IMPROVEMENTS. 
(a) PERIOD FOR FILING CLAIMS.—Section 6 of the Contract Dis-
E
utes Act of 1978 (41 U.S.C. 605) is amended in subsection (a) 
y inserting after the second sentence the following: "Each claim 
by a contractor against the government relating to a contract and 
each claim by the government against a contractor relating to 
a contract shall be submitted within 6 years after the accrual 
of the clEiim. The preceding sentence does not apply to a claim 
by the government against a contractor that is based on a claim 
by the contractor involving fraud.". 
41 use 605 note. 
(2) Notwithstanding the third sentence of section 6(a) of the 
Contract Disputes Act of 1978, as added by paragraph (1), if a 
contract in existence on the date of the enactment of this Act 
requires that a claim referred to in that sentence be submitted 
earlier than 6 years after the accrual of the claim, then the claim 
shall be submitted within the period required by the contract. 
The preceding sentence does not apply to a claim by the Federal 
Government against a contractor tnat is based on a claim by the 
contractor involving fraud. 
(b) INCREASED THRESHOLD FOR CERTIFICATION, DECISION, AND 
NOTIFICATION REQUIREMENTS.—Subsection (c) of such section is 
amended by striking out "$50,000" each place it appears and insert-
ing in lieu thereof "$100,000". 
(c) INCREASED MAXIMUM FOR APPLICABILITY OF ACCELERATED 
PROCEDURES.—Section 8(f) of the Contract Disputes Act of 1978 
(41 U.S.C. 607(f)) is amended by striking out "$50,000" in the 
first sentence and inserting in lieu thereof "$100,000". 
(d) INCREASED MAXIMUM FOR APPLICABILITY OF SMALL CLAIMS 
PROCEDURE.—Section 9(a) of the Contract Disputes Act of 1978 
(41 U.S.C. 608(a)) is amended by striking out "$10,000" in the 
first sentence and inserting in lieu thereof "$50,000". 
(e) REQUESTS FOR ISSUANCE OF DECISIONS.—Paragraph (4) of 
section 6(c) of the Contract Disputes Act of 1978 (41 U.S.C. 605(c)) 
is amended— 
(1) by striking out "agency board of contract appeals" and 
inserting in lieu thereof "tribunal concerned"; and 
(2) by striking out 'Tsoard," and inserting in lieu thereof 
"tribunal concerned,". 
SEC. 2362. EXTENSION OF ALTERNATIVE DISPUTE 
RESOLUTION 
AUTHORITY. 
(a) EXTENSION OF AUTHORITY.—Section 6(e) of the Contracts 
Disputes Act of 1978 (41 U.S.C. 605(e)) is amended by striking 
out "October 1, 1995" and inserting in lieu thereof "October 1, 
1999". 
(b) AVAILABILITY OF PROCEDURES TO SMALL BUSINESS GOVERN-
MENT CONTRACTORS.^^ection 6(e) of such Act is amended by insert-
ing after the first sentence the following: "In any case in which 
the contracting officer rejects a contractor's request for alternative 
dispute resolution proceedings, the contracting officer shall provide 
the contractor with a written explanation, citing one or more of 
the conditions in section 572(b) of title 5, United States Code, 
or such other specific reasons that alternative dispute resolution 
procedures are inappropriate for the resolution of the dispute. In 
any case in which a contractor rejects a request of an agency 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3323 
for alternative dispute resolution proceedings, the contractor shall 
inform the agency in writing of the contractor's specific reasons 
for rejecting the request.". 
SEC. 2363. EXPEDITED RESOLUTION OF CONTRACT ADMINISTRATION 
15 USC 644 note. 
MATTERS. 
(a) REGULATIONS REQUIRED.—(1) The Federal Acquisition Regu-
lation shall include provisions that require a contracting officer— 
(A) to make every reasonable effort to respond in writing 
within 30 days to any written request made to a contracting 
officer with respect to a matter relating to the administration 
of a contract that is received from a small business concern; 
and 
(B) in the event that the contracting officer is unable to 
reply within the 30-day period, to transmit to the contractor 
within such period a written notification of a specific date 
by which the contracting officer expects to respond. 
(2) The provisions shall not apply to a request for a contracting 
officer's decision under the Contract Disputes Act of 1978 (41 U.S.C. 
601 et seq.). 
(b) RULE OF CONSTRUCTION.—Nothing in this section shall be 
considered as creating any rights under the Contract Disputes 
Act of 1978 (41 U.S.C. 601 et seq.). 
(c) DEFINITION.—In this section, the term "small business con-
cern" means a business concern that meets the requirements of 
section 3(a) of the Small Business Act (15 U.S.C. 632(a)) and the 
regulations promulgated pursuant to that section. 
SEC. 2354. AUTHORITY FOR DISTRICT COURTS TO OBTAIN ADVISORY 
OPINIONS FROM BOARDS OF CONTRACT APPEALS IN 
CERTAIN CASES. 
Section 10 of the Contract Disputes Act of 1978 (41 U.S.C. 
609) is amended by adding at the end the following new paragraph: 
"(f)(1) Whenever an action involving an issue described in para-
graph (2) is pending in a district court of the United States, the 
district court may request a board of contract appeals to provide 
the court with an advisory opinion on the matters of contract 
interpretation at issue. 
"(2) An issue referred to in paragraph (1) is any issue that 
could be the proper subject of a final decision of a contracting 
officer appealable under this Act. 
"(3) A district court shall direct any request under paragraph 
(1) to the board of contract appeals having jurisdiction under this 
Act to adjudicate appeals of contract claims under the contract 
or contracts being interpreted by the court. 
"(4) After receiving a request for an advisory opinion under 
paragraph (1), a board of contract appeals shall provide the advisory 
opinion in a timely manner to the district court making the 
request.". 
108 STAT. 3324 
PUBLIC LAW 103-355—OCT. 13, 1994 
Subtitle E—^Miscellaneous 
PART I—ARMED SERVICES ACQUISITIONS 
SEC. 2401. CLARIFICATION OF PROVISION RELATING TO QUALITY CON-
TROL OF CERTAIN SPARE PARTS. 
The second sentence of subsection (a) of section 2383 of title 
10, United States Code, is amended to read as follows: "In establish-
ing the appropriate qualification requirements, the Secretary of 
Defense shall use the Department of Defense qualification require-
ments that were used to qualify the original production part unless 
the Secretary determines in writing— 
"(1) that there are other requirements sufficiently similar 
to those requirements that should be used instead; or 
"(2) that any or all such requirements are imnecessary.". 
SEC. 2402. CONTRACTOR GUARANTEES REGARDING WEAPON SYSTEMS. 
v
^ 
(a) REPEAL OF REQUIREMENT FOR REPORT ON WAIVERS.—Sub-
section (e) of section 2403 of title 10, United States Code, is 
amended— 
(1) by striking out"(1)"; and 
(2) by striking out paragraph (2). 
(b) PROVISIONS TO B E ADDRESSED BY REGULATIONS.—Sub-
section (h) of such section is amended— 
(1) by redesignating paragraph (2) as para^aph (3); and 
(2) by inserting after paragraph (1) the following new para-
graph (2): 
(2) The regulations shall include the following: 
"(A) Guidelines for negotiating contractor guarantees that 
are reasonable and cost effective, as determined on the basis 
of the likelihood of defects and the estimated cost of correcting 
such defects. 
"(B) Procedures for administering contractor guarantees. 
"(C) Guidelines for determining the cases in which it may 
be appropriate to waive the requirements of this section. . 
PART II—ACQUISITIONS GENERALLY 
SEC. 2451. SECTION 3737 OF THE REVISED STATUTES: EXPANSION OF 
AUTHORITY TO PROHIBIT SETOFFS AGAINST ASSIGNEES; 
REORGANIZATION OF SECTION; REVISION OF OBSOLETE 
PROVISIONS. 
Section 3737 of the Revised Statutes (41 U.S.C. 15) is amended 
to read as follows: 
"SEC. 3737. (a) No contract or order, or any interest therein, 
shall be transferred by the party to whom such contract or order 
is given to any other party, and any such transfer shall cause 
the annulment of the contract or order transferred, so far as the 
United States is concerned. All rights of action, howevfer, for any 
breach of such contract by the contracting parties, are reserved 
to the United States. 
"(b) The provisions of subsection (a) shall not apply in any 
case in which the moneys due or to become due from the United 
States or from any agency or department thereof, under a contract 
providing for payments aggregating $1,000 or more, are assigned 
to a bank, trust company, or other financing institution, including 
any Federal lending agency, provided: 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3325 
"(1) That, in the case of any contract entered into after 
October 9, 1940, no claim shall be assigned if it arises under 
a contract which forbids such assignment. 
"(2) That, unless otherwise expressly permitted by such 
contract, any such assignment shall cover all amounts payable 
under such contract and not already paid, shall not be made 
to more than one party, and shall not be subject to further 
assignment, except that any such assignment may be made 
to one party as agent or trustee for two or more parties partici-
pating in such financing. 
"(3) That, in the event of any such assignment, the assignee 
thereof shall file written notice of the assignment together 
with a true copy of the instrument of the assignment with— 
"(A) the contracting officer or the head of his depart-
ment or agency; 
"(B) the surety or sureties upon the bond or bonds, 
if any, in connection with such contract; and 
"(C) the disbursing officer, if any, designated in such 
contract to make pa3rment. 
"(c) Notwithstanding any law to the contrary governing the 
validity of assignments, any assignment pursuant to this section 
shall constitute a valid assignment for all purposes. 
"(d) In any case in which moneys due or to become due under 
any contract are or have been assigned pursuant to this section, 
no liability of any nature of the assignor to the United States 
or any department or agency thereof, whether arising from or 
independently of such contract, shall create or impose any Hability 
on the part of the assignee to make restitution, refund, or repajnnent 
to the United States of any amount heretofore since July 1, 1950, 
or hereafter received under the assignment. 
"(e) Any contract of the Department of Defense, the General 
Services Administration, the Department of Energy, or any other 
department or agency of the United States designated by the Presi-
dent, except any such contract under which full payment has been 
made, may, upon a determination of need by the President, provide 
or be amended without consideration to provide that payments 
to be made to the assignee of any moneys due or to become due 
under such contract shall not be subject to reduction or setoff. 
Each such determination of need shall be published in the Federal 
Register. 
"(f) If a provision described in subsection (e) or a provision 
to the same general effect has been at any time heretofore or 
is hereafter included or inserted in any such contract, payments 
to be made thereafter to an assignee of any moneys due or to 
become due under such contract shall not be subject to reduction 
or setoff for any liability of any nature of the assignor to the 
United States or any department or agency thereof which arises 
- 
; 
independently of such contract, or hereafter for any liability of 
the assignor on account of— 
"(1) renegotiation under any renegotiation statute or under 
any statutory renegotiation article in the contract; 
"(2) fines; 
"(3) penalties (which term does not include amounts which 
may be collected or withheld from the assignor in accordance 
with or for failure to comply with the terms of the contract); 
or 
108 STAT. 3326 
PUBLIC LAW 103-355—OCT. 13, 1994 
"(4) taxes, social security contributions, or the withholding 
or non withholding of taxes or social security contributions, 
whether arising from or independently of such contract. 
"(g) Except as herein otherwise provided, nothing in this section 
shall be deemed to affect or impsiir rights of obligations heretofore 
accrued.". 
SEC. 2452. REPEAL OF REQUIREMENT FOR DEPOSIT OF CONTRACTS 
WTTHGAO. 
Section 3743 of the Revised Statutes (41 U.S.C. 20) is repealed. 
SEC. 24S3. REPEAL OF OBSOLETE DEADLINE REGARDING PROCE-
DURAL REGULATIONS FOR THE COST ACCOUNTING 
^STANDARDS BOARD. 
Section 26(f)(3) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 422(fK3)) is amended in the first sentence by striking 
out "Not later than 180 days after the date of the enactment 
of this section, the Administrator" and inserting in lieu thereof 
'The Administrator". 
SEC. 2464. CODIFICATION OF ACCOUNTING REQUIREMENT FOR CON-
TRACTED ADVISORY AND ASSISTANCE SERVICES. 
(a) FUNDING To BE IDENTIFIED IN BUDGET.—Section 1105 of 
title 31, United States Code, is amended by adding at the end 
the following new subsection: 
"(g)(1) The Director of the Office of Management and Budget 
shall establish the funding for advisory and assistance services 
for each department and agency as a separate object class in each 
budget annually submitted to the Congress under this section. 
"(2)(A) In paragraph (1), except as provided in subparagraph 
(B), the term 'advisory and assistance services' means the following 
services when provided by nongovernmental sources: 
"(i) Management and professional support services, 
"(ii) Studies, analyses, and evaluations, 
"(iii) Engineering and technical services. 
"(B) In paragraph (1), the term 'advisory and assistance serv-
ices' does not include the following services: 
"(i) Routine automated data processing and telecommimi-
cations services unless such services are an integral part of 
a contract for the procurement of advisory and assistance serv-
ices. 
"(ii) Architectural and engineering services, as defined in 
section 901 of the Brooks Architect-Engineers Act (40 U.S.C. 
541). 
"(iii) Research on basic mathematics or medical, biological, 
physical, social, psychological, or other phenomena.". 
(b) REPEAL OF SOURCE LAW.—Section 512 of Pubhc Law 102-
31 use 1105 
394 (106 Stat. 1826) is repealed. 
°o*e- 
(c) REPEAL OF SUPERSEDED PROVISIONS.—(1) Section 2212 of 
title 10, United States Code, is repealed. 
(2) Section 1114 of title 31, United States Code, is repealed. 
(3)(A) The table of sections at the beginning of chapter 131 
of title 10, United States Code, is amended by striking out the 
item relating to section 2212. 
(B) The table of sections at the beginning of chapter 11 of 
title 31, United States Code, is amended by striking out the item 
relating to section 1114. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3327 
SEC. 2455. UNIFORM SUSPENSION AND DEBARMENT. 
31 USC 6101 
note. 
(a) REQUIREMENT FOR REGULATIONS.—Regulations shall be 
issued providing that provisions for the debarment, suspension, 
or other exclusion of a participant in a procurement activity under 
the Federal Acquisition Regulation, or in a nonprocurement activity 
iinder regulations issued pursuant to Executive Order No. 12549, 
shall have government-wide effect. No agency shall allow a party 
to participate in any procurement or nonprocurement activity if 
any agency has debarred, suspended, or otherwise excluded (to 
the extent specified in the exclusion agreement) that party from 
participation in a procurement or nonprocurement activity. 
(b) AUTHORITY TO GRANT EXCEPTION.—The regulations issued 
pursuant to subsection (a) shall provide that an agency may grant 
an exception permittinjg a debarred, suspended, or otherwise 
excluded party to participate in procurement activities of that 
agency to the extent exceptions are authorized under the Federsd 
Acquisition Regulation, or to participate in nonprocurement activi-
ties of that agency to the extent exceptions are authorized under 
regulations issued pursuant to Executive Order No. 12549. 
(c) DEFINITIONS.—In this section: 
(1) The term "procurement activities" means all acquisition 
programs and activities of the Federal Government, as defined 
in the Federal Acquisition Regulation. 
(2) The term "nonprocurement activities" means all pro-
grams and activities involving Federal financial and non-
finsmcial assistance and benefits, as covered by Executive Order 
No. 12549 and the Ofiice of Management and Budget guideUnes 
implementing that order. 
(3) The term "agency means an Executive agency as 
defined in section 103 of title 5, United States Code. 
TITLE III—SERVICE SPECIFIC AND 
MAJOR SYSTEMS STATUTES 
Subtitle A—^Major Systems Statutes 
SEC. 3001. WEAPON DEVELOPMENT AND PROCUREMENT SCHEDULES. 
(a) DEADLINE AND PURPOSE.—Subsection (a) of section 2431 
of title 10, United States Code, is amended— 
, 
(1) in the first sentence— 
(A) by striking out "at the same time" and inserting 
in lieu thereof "not later than 45 days after"; and 
(B) by striking out "a written report" and inserting 
in lieu thereof "budget justification documents"; and 
(2) in the second and third sentences, by striking out 
"report" and inserting in lieu thereof "documents . 
(b) ADDITIONAL MATTERS TO B E INCLUDED.—Subsection (b) of 
such section is amended— 
(1) by striking out "include—" and inserting in lieu thereof 
"include each of the following:"; 
(2) by capitalizing the first letter of the first word in 
each of paragraphs (1), (2), and (3); 
(3) by striking out the semicolon at the end of paragraphs 
(1) and (2) and inserting in Ueu thereof a period; 
108 STAT. 3328 
PUBLIC LAW 103-355—OCT. 13, 1994 
(4) by striking out "; and" at the end of paragraph (3) 
and inserting in Heu thereof a period; £ind 
(5) by amending paragraph (4) to read as follows: 
"(4)(A) The most efficient production rate, the most efficient 
acquisition rate, and the minimum sustaining rate, consistent 
with the program priority established for such weapon system 
by the Secretary concerned, 
"(B) In this paragraph: 
"(i) The term 'most efficient production rate' means 
the maximum rate for each budget year at which the 
weapon system can be produced with existing or planned 
plant capacity and tooling, with one shifl; a day running 
for eight hours a day and five days a week. 
"(ii) The term 'minimum sustaining rate' means the 
production rate for each budget year that is necessary 
to k6ep production hnes open while maintaining a base 
of responsive vendors and suppliers.". 
SEC. 3002. SELECTED ACQUISITION REPORT REQUIREMENT. 
(a) DEFINITION OF PROCUREMENT UNIT COST.—(1) Paragraph 
(2) of section 2432(a) of title 10, United States Code, is amended— 
(A) in clause (A), by striking out "for a fiscal year" and 
all that follows through "such program in such fiscal year"; 
(B) in clause (B), by striking out "with such funds during 
such fiscal year." and inserting in lieu thereof a period; and 
(C) by striking out the last sentence. 
(2) Section 2433 of such title is amended— 
(A) in subparagraph (B) of subsection (c)(1), by striking 
out "current" before "procurement unit cost"; 
(B) in subsection (d), by striking out "current" before 
"procurement unit cost" each place it appears; and 
(C) in subsection (e), by striking out "current" before 
"procurement unit cost" both places it appears. 
(b) EXCLUSION OF FIRM, FIXED-PRICE CONTRACTS.—Subsection 
(a) of section 2432 of such title is amended in paragraph (3) by 
inserting before the period at the end the following: "and that 
is not a firm, fixed price contract". 
(c) DEFINITION OF FULL LIFE-CYCLE COST.—Such subsection 
is further amended in paragraph (4) by striking out "has the mean-
ing" and all that follows through the end of the paragraph and 
inserting in lieu thereof the following: "means all costs of develop-
ment, procurement, military construction, and operations and sup-
port, without regard to funding source or management control.". 
(d) NOTICE OF PROPOSED CHANGES IN SAR.—Subsection (c) 
of such section is amended in paragraph (2) by striking out the 
second sentence and inserting in lieu thereof the following: "When-
ever the Secretary of Defense proposes to make changes in the 
content of a Selected Acquisition Report, the Secretary shall submit 
a notice of the proposed changes to such committees. The changes 
shall be considered approved by the Secretary, and may be incor-
porated into the report, only after the end of the 60-day period 
beginning on the date on which the notice is received by those 
committees.". 
(e) ELIMINATION OF CERTAIN SAR REQUIREMENTS.—Such sub-
section is further amended in paragraph (3) by striking out subpara-
graph (C). 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3329 
(f) UNIFORM IMPLEMENTATION OF LIFE-CYCLE COST ANALYSIS.— 
Such subsection is further amended— 
(1) by striking out paragraph (5); and 
(2) by adding at the end of subparagraph (A) of paragraph 
(3) the following: 'The Secretary of Defense shall ensure that 
this subparagraph is implemented in a uniform manner, to 
the extent practicable, throughout the Department of Defense.". 
(g) ELIMINATION OF PRELIMINARY REPORT.—Subsection (f) of 
such section is amended by striking out the second sentence. 
(h) 
TERMINOLOGY 
CORRECTIONS.—Such section is 
further 
amended as follows: 
(1) Subsection (b)(3XA) is amended by striking out "full 
scale development or" in clause (i). 
(2) Subsection (c)(3) is amended by striking out "full-scale 
engineering" in subparagraph (A) and inserting in lieu thereof 
"engineering and manufacturing". 
(3) Subsection (h)(1) is amended by striking out "full-scale 
engineering" both places it appears and inserting in Ueu thereof 
"engineering and manufacturing". 
SEC. 3003. UNIT COST REPORT REQUIREMENT. 
(a) REVISION OF BASELINE REPORT DEFINITIONS.—(1) Section 
2433(a) of title 10, United States Code, is amended— 
(A) in paragraph (2)— 
(i) by striking out "Baseline Selected Acquisition 
Report" and inserting in Ueu thereof "Baseline Estimate"; 
and 
(ii) by striking out "Selected Acquisition Report in 
which" and all that follows through the end of the para-
graph and inserting in lieu thereof "cost estimate included 
in the baseline description for the program under section 
2435 ofthis title."; and 
(B) by striking out paragraph (4). 
(2) Section 2433 of such title is further amended— 
(A) in subsection (c)(1), by striking out "Baseline Report" 
in subparagraphs (A) and (B) and inserting in lieu thereof 
"Baseline Estimate"; and 
(B) in subsection (d), by striking out "Baseline Report" 
in paragraphs (1) and (2) and inserting in Heu thereof "BaseUne 
Estimate". 
(b) CONTENTS OF UNIT COST REPORT.—Section 2433(b) of such 
title is amended in paragraph (3) by striking out "Baseline Report 
was submitted." and inserting in lieu thereof "contract was entered 
into.". 
(c) ELIMINATION OF CERTAIN UNIT COST REPORT REQUIRE-
MENT.—Section 2433(c) of such title, as amended by subsection 
(a), is further amended— 
(1) by striking out paragraph (2); 
(2) by striking out ^(1)" after "(c)"; and 
(3) by redesignating subpara^aphs (A), (B), and (C) as 
paragraphs (1), (2), and (3), respectively. 
(d) CONSTANT BASE YEAR DOLLARS.—Section 2433(f) of such 
title is amended by striking out "include expected inflation" and 
inserting in lieu thereof "be stated in terms of constant base year 
dollars (as described in section 2430 ofthis title)". 
(e) CONTENTS OF SAR.—Subparagraph (I) of section 2433(g)(1) 
of such title is amended to read as follows: 
108 STAT. 3330 
PUBLIC LAW 103-355—OCT. 13, 1994 
"(I) The type of the Baseline Estimate that was included 
in the baseline description under section 2435 of this title 
and the date of the Baseline Estimate.". 
SEC. 3004. REQUIREMENT FOR INDEPENDENT COST ESTIMATE AND 
MANPOWER ESTIMATE BEFORE DEVELOPMENT OR 
PRODUCTION. 
(a) CONTENT AND SUBMISSION OF ESTIMATES.—Subsection (b) 
of section 2434 of title 10, United States Code, is amended to 
read as follows: 
"(b) REGULATIONS.—^The Secretary of Defense shall prescribe 
regulations governing the content and submission of the estimates 
required by subsection (a). The regulations shall require— 
"(1) that the independent estimate of tne fiill life-cycle 
cost of a program— 
(A) be prepared by an office or other entity that is 
not under the supervision, direction, or control of the mili-
tary department. Defense Agency, or other component of 
the Department of Defense that is directly responsible for 
carrjdng out the development or acquisition of the program; 
and 
"(B) include all costs of development, procurement, 
military construction, and operations and support, without 
regard to funding source or management control; and 
"(2) that the manpower estimate include an estimate of 
the total number of personnel required— 
"(A) to operate, maintain, and support the program 
upon full operational deplo)nnent; and 
"(B) to train personnel to carry out the activities 
referred to in subparagraph (A).". 
(b) TERMINOLOGY CORRECTION, ETC.—Subsection (a) of such 
section is amended— 
(1) by striking out "full-scale engineering development" 
and inserting in lieu thereof "engineering and manufacturing 
development ; and 
(2) by striking out "cost of the program, together with 
a manpower estimate, has" and inserting in lieu thereof "full 
life-cycle cost of the program and a manpower estimate for 
the program have". 
SEC. 3005. BASELINE DESCRIPTION. 
(a) IN GENERAL.—Section 2435 of title 10, United States Code, 
is amended to read as follows: 
*
*
§ 2435. Baseline description 
"(a) BASELINE DESCRIPTION REQUIREMENT.—<1) The Secretary 
of a military department shall establish a baseline description for 
each major defense acquisition program under the jurisdiction of 
such Secretary. 
"(2) The baseline shall include sufficient parameters to describe 
the cost estimate (referred to as the 'Baseline Estimate' in section 
2433 of this title), schedule, performance, supportability, and any 
other factor of such major defense acquisition program. 
"(b) FUNDING LIMIT.—^No amount appropriated or otherwise 
made available to the Department of Defense for carrying out 
a major defense acquisition program may be obligated after the 
program enters engineering and manufacturing development with-
out an approved baseline description unless such obligation is 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3331 
specifically approved by the Under Secretary of Defense for Acquisi-
tion and Technology. 
"(c) SCHEDULE.—^A baseline description for a major defense 
acquisition program shall be prepared under this section— 
"(1) before the program enters demonstration and valida-
tion; 
"(2) before the program enters engineering and manufactur-
ing development; and 
"(3) before the program enters production and deployment. 
"(d) REGULATIONS.—^The Secretary of Defense shall prescribe 
regulations governing the following: 
"(1) The content of baseline descriptions under this section. 
"(2) The submission to the Secretary of the military depart-
ment concerned and the Under Secretary of Defense for Acquisi-
tion and Technology by the program manager for a program 
for which there is an approved baseline description under this 
section of reports of deviations from the baseline of the cost, 
schedule, performance, supportability, or any other factor of 
the program. 
"(3) Procedures for review of such deviation reports within 
the Department of Defense. 
"(4) Procedures for submission to, and approved by, the 
Secretary of Defense of revised baseline descriptions.", 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 144 of such title is amended by amending the 
item relating to section 2435 to read as follows: 
"2435. Baseline description.". 
SEC. 3006. REPEAL OF REQUIREMENT FOR COMPETITIVE PROTOTYP-
ING FOR MAJOR PROGRAMS. 
(a) REPEAL.—Section 2438 of title 10, United States Code, is 
repealed. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 144 of such title is amended by striking out the 
item relating to section 2438. 
SEC. 3007. REPEAL OF REQUIREMENT FOR COMPETITIVE ALTER-
NATIVE SOURCES FOR MAJOR PROGRAMS. 
(a) REPEAL.—Section 2439 of title 10, United States Code, is 
repealed. 
(b) CLERICAL AMENDMENT.—^The table of sections at the begin-
ning of chapter 144 of such title is amended by striking out the 
item relating to section 2439. 
Subtitle B—^Testing Statutes 
SEC. 3011. AUTHORITY OF DIRECTOR OF OPERATIONAL TEST AND 
EVALUATION TO COMMUNICATE VIEWS DIRECTLY TO 
SECRETARY OF DEFENSE. 
Section 139(c) of title 10, United States Code, is amended 
by inserting after "(c)" the following: "The Director may commu-
nicate views on matters within the responsibility of the Director 
directly to the Secretary of Defense and the Deputy Secretary 
of Defense without obtaining the approval or concurrence of any 
other official within the Department of Defense.". 
108 STAT. 3332 
PUBLIC LAW 103-355—OCT. 13, 1994 
SEC. 3012. RESPONSIBILITY OF DIRECTOR OF OPERATIONAL TEST AND 
EVALUATION FOR LIVE FIRE TESTING. 
(a) OVERSIGHT OF LIVE FIRE TESTING.—Subsection (b) of section 
139 of title 10, United States Code, is amended— 
(1) by striking out "and" at the end of paragraph (4); 
(2) by striking out the period at the end of psiragraph 
(5) and inserting in lieu thereof"; and"; and 
(3) by adding at the end the following new paragraph: 
"(6) monitor and review the live fire testing activities of 
the Department of Defense provided for under section 2366 
of this title.". 
(b) ANNUAL REPORT ON LIVE FIRE TESTING.—Subsection (f) 
of such section is amended by inserting "(including hve fire testing 
activities)" in the first sentence after "operational test and evalua-
tion activities". 
SEC. 3013. REQUIREMENT FOR UNCLASSIFIED VERSION OF ANNUAL 
REPORT ON OPERATIONAL TEST AND EVALUATION. 
Section 139(f) of title 10, United States Code, is amended 
by inserting afl«r the second sentence the following new sentence: 
"If the Director submits the report to Congress in a classified 
form, the Director shall concurrently submit an unclassified version 
of the report to Congress.". 
SEC. 3014. SURVIVABILITY AND LETHALITY TESTING. 
(a) IN GENERAL.—Section 2366(c) of title 10, United States 
Code, is amended— 
(1) by redesignating paragraph (2) as paragraph (4); 
(2) by designating the second sentence of paragraph (1) 
as paragraph (3) and in that paragraph by strilang out "such 
certification" and inserting in lieu thereof "certification under 
paragraph (1) or (2)"; and 
(3) by inserting before paragraph (3) (as so designated) 
the following new paragraph: 
"(2) In the case of a covered system (or covered product improve-
ment program for a covered system), the Secretary may waive 
the application of the survivability and lethality tests of this section 
to such system or program and instead allow testing of the system 
or program in combat by firing munitions likely to be encountered 
in combat at components, subsystems, and subassemblies, together 
with performing design analyses, modeling and simulation, and 
analysis of combat data. Such alternative testing may not be carried 
out in the case of any covered system (or covered product improve-
ment program for a covered system) unless the Secretary certifies 
to Congress, before the system or program enters engineering and 
manufacturing development, that the survivability and lethality 
testing of such system or program otherwise required by this section 
would be unreasonably expensive and impracticable.". 
(b) TERMINOLOGY CORRECTION.—Section 2366(c)(1) of such title 
is amended by striking out "full-scale engineering development" 
in the first sentence and inserting in lieu thereof "engineering 
and manufacturing development". 
SEC. 3015. LIMITATION ON QUANTITIES TO BE PROCURED FOR LOW-
RATE INITIAL PRODUCTION. 
Section 2400(a) of title 10, United States Code, is amended— 
(1) in paragraph (2)— 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3333 
(A) by striking out "paragraph (1)" and inserting in 
lieu thereof "this section"; and 
(B) by striking out "full-scale engineering development" 
and inserting in lieu thereof "engineering and maniifactur-
ing development"; 
(2) by redesignating paragraph (4) as paragraph (5) and 
in that paragraph by inserting after the first sentence the 
following: "If the quantity exceeds 10 percent of the total num-
ber of articles to be produced, as determined at the milestone 
II decision with respect to that system, the Secretary shall 
include in the statement the reasons for such quantity."; and 
(3) by inserting after paragraph (3) the following new para-
graph (4): 
"(4) The quantity of articles of a major system that may be 
procured for low-rate initial production may not be less than one 
operationally configured production imit unless another quantity 
is established at the milestone II decision.". 
Subtitle C—Service Specific Laws 
SEC. 3021. GRATUITOUS SERVICES OF OFFICERS OF CERTAIN RESERVE 
COMPONENTS. 
(a) ACCEPTANCE BY SECRETARY OF DEFENSE.—Section 10212 
of title 10, United States Code, is amended— 
(1) by designating the text as subsection (b); and 
(2) by inserting before such subsection the following new 
subsection: 
"(a) Notwithstanding section 1342 of title 31, the SecretEiry 
of Defense may accept the gratuitous services of an officer of a 
reserve component (other than £in officer of the Army National 
Guard of the United States or the Air National Guard of the 
United States) in consultation upon matters relating to the armed 
forces.". 
(b) EFFECTIVE DATE.—Notwithstanding section 10001, the 
lO use 10212 
amendments made by subsection (a) shall take effect on December "°*®-
1, 1994, immediately after the amendments made by the Reserve 
Officer Personnel Management Act. 
SEC. 3022. AUTHORITY TO RENT SAMPLES, DRAWINGS, AND OTHER 
INFORMATION TO OTHERS. 
Subsection (a) of section 2539b of title 10, United States Code, 
as redesignated by section 1070(a)(13)(A) of the National Defense 
Authorization Act for Fiscal Year 1995, is amended by inserting 
"rent," after "seU," each place it appears in paragraphs (1) and 
(2). 
SEC. 3023. REPEAL OF APPLICATION OF PUBLIC CONTRACTS ACT TO 
CERTAIN NAVAL VESSEL CONTRACTS. 
(a) REPEAL.—Section 7299 of title 10, United States Code, is 
repealed. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 633 of such title is amended by striking out the 
item relating to section 7299. 
108 STAT. 3334 
PUBLIC LAW 103-355—OCT. 13, 1994 
SEC. 3024. REPEAL OF REQUIREMENT FOR CONSTRUCTION OF VES-
SELS ON PACIFIC COAST. 
(a) REPEAL.—Section 7302 of title 10, United States Code, is 
repealed. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 633 of such title is amended by striking out the 
item relating to section 7302. 
SEC. 3025. SCIENTIFIC INVESTIGATION AND RESEARCH FOR THE NAVY. 
(a) REPEAL.—Section 7203 of title 10, United States Code, is 
repealed. 
(b) CLERICAL AMENDMENT.—Thie table of sections at the begin-
ning of chapter 631 of such title is amended by striking out the 
item relating to section 7203. 
Subtitle D—Civil Reserve Air Fleet 
SEC. 3031. DEFINITIONS. 
(a) CONTRACTOR DEFINED.—Section 9511(8) of title 10, United 
States Code, is amended— 
(1) in clause (A)— 
(A) by inserting "under section 9512 of this title" after 
"and who contracts with the Secretary"; and 
(B) by striking out "or" at the end; and 
(2) by inserting before the period at the end the following: 
", or (C) who owns or controls, or will own or control, new 
or existing aircraft and who, by contract, commits some or 
all of such aircraft to the Civil Reserve Air Fleet". 
(b) OTHER DEFINITIONS.—Section 9511 of such title is further 
amended— 
(1) in paragraph (1)— 
(A) by inserting " 'civil aircraft'," before " 'person',"; 
(B) by striking out "meaning" and inserting in lieu 
thereof "meanings"; and 
(C) by striking out "section 101 of the Federal Aviation 
Act of 1958 (49 U.S.C. 1301)" and inserting in Ueu thereof 
"section 40102 of title 49"; 
(2) by striking out paragraph (6); 
(3) by redesignating paragraphs (7), (8), (9), (10), (11), 
and (12) aS paragraphs (6), (7), (8), (9), (10), and (11), respec-
tively; and 
(4) in paragraph (11), as so redesignated— 
(A) by striking out "interoperabihty" and inserting in 
lieu thereof "compatibiUty"; and 
(B) by inserting "an aeromedical aircraft or" before 
"a cargo-convertible, . 
(c) TECHNICAL CORRECTION.—Such section is amended by strik-
ing out "In this subchapter:" and inserting in lieu thereof "In 
this chapter:". 
SEC. 3032. CONSOLIDATION OF PROVISIONS RELATING TO CONTRAC-
TUAL COMMITMENT OF AIRCRAFT. 
Chapter 931 of title 10, United States Code, is amended— 
(1) in subsection (a) of section 9512, by inserting "AUTHOR-
ITY TO CONTRACT.—" after "(a)"; 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3335 
(2) in subsection (c) of section 9512, by striking out "(c)" 
and inserting in lieu thereof "(d) AUTHORITY TO CONTRACT 
AND PAY DIRECTLY.—"; 
(3) in subsection (b) of section 9512, by striking out "(b)" 
and inserting in lieu thereof "(c) TERMS AND REQUIRED REPAY-
MENT.—"; 
(4) by redesignating subsection (a) of section 9513 as sub-
section (b), transferring such subsection (as so redesignated) 
to section 9512, and inserting such subsection after subsection 
(a); 
(5) by redesignating subsection (b) of section 9513 as sub-
section (e) and transferring such subsection (as so redesignated) 
to the end of section 9512; 
(6) in subsection (b) of section 9512, as redesignated and 
transferred to such section by paragraph (4)— 
(A) by striking out "under section 9512 of this title" 
and inserting in lieu thereof "entered into under this sec-
tion"; and 
(B) by inserting "COMMITMENT TO CIVIL RESERVE AIR 
FLEET.—''^ after "(b)^; 
(7) in subsection (c) of section 9512, as redesignated by 
paragraph (3), by striking out "the terms required by section 
9513 ofthis title and"; 
(8) in subsection (e) of section 9512, as redesignated and 
transferred to such section by paragraph (5)— 
(A) by striking out under section 9512 of this title" 
and inserting in lieu thereof "entered into under this sec-
tion"; and 
(B) by inserting "EXCLUSIVITY OF COMMITMENT TO 
CIVIL RESERVE AIR FLEET.—" after "(e)"; and 
(9) by striking out the heading of section 9513. 
SEC. 3033. USE OF MILITARY INSTALLATIONS BY CONTRACTORS. 
(a) AUTHORITY.—Chapter 931 of title 10, United States Code, 
as amended by section 3022, is further amended by adding at 
the end the following new section 9513: 
'^ISSIS. Use of military installations by Civil Reserve Air 
Fleet contractors 
"(a) 
CONTRACT AUTHORITY.—(1) The 
Secretary of the 
Air 
Force— 
"(A) may, by contract entered into with any contractor, 
authorize such contractor to use one or more Air Force installa-
tions designated by the Secretary; and 
"(B) with the consent of the Secretary of another military 
department, may, by contract entered into with any contractor, 
authorize the contractor to use one or more installations, des-
ignated by the Secretary of the Air Force, that is under the 
jurisdiction of the Secretary of such other military department. 
"(2) The Secretary of the ^ r Force may include in the contract 
such terms and conditions as the Secretary determines appropriate 
to promote the national defense or to protect the interests of the 
United States. 
"(b) PURPOSES OF USE.—^A contract entered into under sub-
section (a) may authorize use of a designated installation as a 
weather alternate, as a technical stop not involving the enplaning 
or deplaning of passengers or cargo, or, in the case of an installation 
108 STAT. 3336 
PUBLIC LAW 103-355—OCT. 13, 1994 
within the United States, for other commercial purposes. Notwith-
standing any other provision of the law, the Secretary may establish 
different levels and types of uses for different installations for 
commercial operations not required by the Department of Defense 
and may provide in contracts under subsection (a) for different 
levels and types of uses by different contractors. 
"(c) DISPOSITION OF PAYMENTS FOR USE.—Notwithstanding any 
other provision of law, amounts collected from the contractor for 
landing fees, services, supplies, or other charges authorized to be 
collected under the contract shall be credited to the appropriations 
of the armed forces having jurisdiction over the military installation 
to which the contract pertsdns. Amounts so credited to an appropria-
tion shall be available for obligation for the same period as the 
appropriation to which credited. 
"(d) HOLD HARMLESS REQUIREMENT.—A contract entered into 
imder subsection (a) shall provide that the contractor agrees to 
indemnify and hold harmless the United States from any action, 
suit, or claim of any sort resulting from, relating to, or arising 
out of any activities conducted, or services or supplies furnished, 
in connection with the contract. 
"(e) RESERVATION OF RIGHT To EXCLUDE CONTRACTOR.—A con-
tract entered into under subsection (a) shall provide that the Sec-
retary concerned may, without providing prior notice, deny access 
to an installation designated under the contract when the Secretary 
determines that it is necessary to do so in order to meet military 
exigencies.". 
(b) CLERICAL AMENDMENT.—The table of sections at the be^n-
ning of such chapter is amended by striking out the item relating 
to section 9513 and inserting in lieu thereof the following: 
"9513. Use of military installations by Civil Reserve Air Fleet contractors.". 
Subtitle E—^Miscellaneous 
SEC. 3061. REGULATIONS ON PROCUREMENT, PRODUCTION, WARE-
HOUSING, AND SUPPLY DISTRIBUTION FUNCTIONS. 
(a) IN GENERAL.—Section 2202 of title 10, United States Code, 
is amended to read as follows: 
'^§2202. Regulations on procurement, production, warehous-
ing, and supply distribution functions 
"The Secretary of Defense shall prescribe regulations governing 
the performance within the Department of Defense of the procure-
ment, production, warehousing, and supply distribution functions, 
and related functions, of the Department of Defense.". 
(b) CLERICAL AMENDMENT.—The item relating to section 2202 
in the table of sections at the beginning of chapter 131 of such 
title is amended to read as follows: 
"2202. Regulations on procurement, production, warehousing, and supply distribu-
tion fimctions.". 
SEC. 3062. REPEAL OF REQUIREMENTS REGARDING PRODUCT EVALUA-
TION ACTIVITIES. 
(a) REPEAL.—Section 2369 of title 10, United States Code, is 
repealed. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3337 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 139 of such title is amended by striking out the 
item related to section 2369. 
SEC. 3063. DEPARTMENT OF DEFENSE ACQUISITION OF INTELLECTUAL 
PROPERTY RIGHTS. 
Section 2386 of title 10, United States Code, is amended by 
striking out paragraphs (3) and (4) and inserting in lieu thereof 
the following: 
"(3) Technical data and computer software. 
"(4) Releases for past infringement of patents or cop3rrights 
or for unauthorized use of technical data or computer software.". 
SEC. 3064. UQUm FUELS AND NATURAL GAS: CONTRACTS FOR STOR-
AGE, HANDLING, OR DISTRIBUTION. 
Section 2388(a) of title 10, United States Code, is amended 
by striking out "liquid fuels and natural gas" and inserting in 
lieu thereof "liquid fuels or natural gas". 
SEC. 3065. CODIFICATION AND REVISION OF LIMITATION ON LEASE 
OF VESSELS, AIRCRAFT, AND VEHICLES. 
(a) LIMITATION.—(1) Chapter 141 of title 10, United States 
Code, is amended by inserting after section 2401 the following 
new section: 
*
*
§ 2401a. Lease of vessels, aircraft, and vehicles 
"The Secretary of Defense or the Secretary of a military depart-
ment may not enter into any contract with a term of 18 months 
or more, or extend or renew any contract for a term of 18 months 
or more, for any vessel, aircraft, or vehicle, through a lease, charter, 
or similar agreement, unless the Secretary has considered all costs 
of such contract (including estimated termination liability) and 
has determined in writing that the contract is in the best interest 
of the (jrovernment.". 
(2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2401 
the following new item: 
"2401a. Lease of vessels, aircraft, and vehicles.". 
(b) REPEAL OF SUPERSEDED PROVISION.—Section 9081 of PubUc 
Law 101-165 (103 Stat. 1147; 10 U.S.C. 2401 note) is repealed. 
SEC. 3066. SOFT DRINK SUPPLIES. 
Section 2424 of title 10, United States Code, is amended by 
adding at the end the following new subsection: 
"(c) Paragraphs (1) and (2) of subsection (b) do not apply to 
contracts for the procurement of soft drinks that are manufactured 
in the United States. The Secretary of Defense shall prescribe 
in regulations the standards and procedures for determining 
whether a particular drink is a soft drink and whether the drink 
was manufactured in the United States.". 
SEC. 3067. DISBURSEMENT OF FUNDS OF MILITARY DEPARTMENT TO 
COVER OBLIGATIONS OF ANOTHER AGENCY OF DEPART-
MENT OF DEFENSE. 
Subsection (c)(2) of section 3321 of title 31, United States 
Code, is amended by striking out "military departments of the" 
and inserting in lieu thereof "The". 
108 STAT. 3338 
PUBLIC LAW 103-355—OCT. 13, 1994 
TITLE IV—SIMPLIFIED ACQUISITION 
THRESHOLD 
Subtitle A—Establishment of Threshold 
SEC. 4001. SIMPLIFIED ACQUISITION THRESHOLD DEFINED. 
Section 4(11) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403(11)) is amended to read as follows: 
"(11) The term 'simplified acquisition threshold' means 
$100,000.". 
SEC. 4002. ESTABLISHMENT OF SIMPLIFIED ACQUISITION THRESHOLD 
FOR ARMED SERVICES. 
(a) ESTABLISHMENT IN TITLE 10.—Chapter 137 of title 10, 
United States Code, is amended by inserting after section 2302 
the following new sections: 
*
*
§ 2302a. Simplified acquisition threshold 
"(a) 
SIMPLIFIED ACQUISITION THRESHOLD.—For purposes of 
acquisitions by agencies named in section 2303 of this title, the 
simplified acquisition threshold is as specified in section 4(11) of 
the Office of Federal Procurement Policy Act.". 
(b) CLERICAL AMENDMENT.—^The table of sections at the begin-
ning of such chapter is amended by inserting after the item relating 
to section 2302 the following new item: 
"23028. Simplified acquisition threshold.". 
SEC. 4003. ESTABLISHMENT OF SIMPLIFIED ACQUISITION THRESHOLD 
FOR CIVILIAN AGENCIES. 
Title III of the Federal Property and Administrative Services 
Act of 1949 is amended by inserting after section 302 the following 
new section: 
41 use 252a. 
"SEC. 302A. SIMPLIFIED ACQUISITION THRESHOLD. 
"(a) SIMPLIFIED ACQUISITION THRESHOLD.—For purposes of 
acquisitions by executive agencies, the simplified acquisition thresh-
old is as specified in section 4(11) of the Office of Federal Procure-
ment Policy Act.". 
SEC. 4004. SMALL BUSINESS RESERVATION. 
Section 15(j) of the Small Business Act (15 U.S.C. 644(j)) is 
amended to read as follows: 
"(j)(l) Each contract for the purchase of goods and services 
that has an anticipated value greater than $2,500 but not greater 
than $100,000 shall be reserved exclusively for small business con-
cerns unless the contracting officer is unable to obtain offers from 
two or more small business concerns that are competitive with 
market prices and are competitive with regard to the quality and 
delivery of the goods or services being purchased. 
"(2) In carrying out paragraph (1), a contracting officer shall 
consider a responsive offer timely received from an eligible small 
business offeror. 
"(3) Nothing in paragraph (1) shall be construed as precluding 
an award of a contract with a value not greater than $100,000 
under the authority of subsection (a) of section 8 of this Act, 
section 2323 of title 10, United States Code, section 712 of the 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3339 
Business Opportunity Development Reform Act of 1988 (Public 
Law 100-656; 15 U.S.C. 644 note), or section 7102 of the Federal 
Acquisition Streandining Act of 1994.". 
Subtitle B—Inapplicability of Laws to Ac-
quisitions at or Below the Simplified Ac-
quisition Threshold 
SEC. 4101. UST OF INAPPUCABLE LAWS IN FEDERAL ACQUISITION 
REGULATION. 
The Office of Federal Procurement Policy Act (41 U.S.C. 401 
et seq.) is amended by adding at the end the foUoAving new section: 
"SEC. 33. UST OF LAWS INAPPUCABLE TO CONTRACTS NOT GREATER 
41 USC 429. 
THAN THE SIMPLIFIED ACQUISITION THRESHOLD IN 
FEDERAL ACQUISITION REGULATION. 
"(a) LIST OF INAPPLICABLE PROVISIONS OF LAW.—(1) The Federal 
Acquisition Regulation shall include a list of provisions of law 
that are inapplicable to contracts or subcontracts in amounts not 
greater than the simplified acquisition threshold. A provision of 
law that is properly included on the Ust pursuant to paragraph 
(2) may not be construed as appUcable to such contracts or sub-
contracts (as the case may be) by an executive agency. Nothing 
in this section shall be construed to render inappUcable to contracts 
and subcontracts in amounts not greater than tne simplified acquisi-
tion threshold any provision of law tiiat is not included on such 
hst. 
"(2) A provision of law described in subsection (b) that is enacted 
after the date of the enactment of the Federal Acquisition Stream-
Uning Act of 1994 shedl be included on the Ust of inapplicable 
provisions of law required by paragraph (1), unless the Federal 
Acquisition Regulatory Council makes a written determination that 
it would not be in the best interest of the Federal CJovernment 
to exempt contracts or subcontracts in amounts not greater than 
the simplified acquisition threshold from the appUcabiUty of the 
provision. 
"(b) COVERED LAW.—^A provision of law referred to in subsection 
(a)(2) is any provision of law that, as determined by the Federal 
Acquisition Regulatory Council, sets forth policies, procedures, 
requirements, or restrictions for the procurement of property or 
services by the Federal Government, except for a provision of law 
t h a t ^ 
"(1) provides for criminal or civil penalties; or 
"(2) specifically refers to this section and provides that, 
notwithstanding this section, it shall be applicable to contracts 
or subcontracts in amounts not greater than the simplified 
acquisition threshold. 
"(c) PETITION.—In the event that a provision of law described 
in subsection (b) is not included on the list of inappHcable provisions 
of law as required by subsection (a), and no written determination 
has been made by the Federal Acquisition Regulatory Council 
pursuant to subsection (a)(2), a person may petition the Adminis-
trator for Federal Procurement Policy to take appropriate action. 
The Administrator shall revise the Federal Acquisition Regulation 
to include the provision on the list of inapplicable provisions of 
79-194 
O—95—23 : QL 3 Part 4 
108 STAT, 3340 
PUBLIC LAW 103-355—OCT. 13, 1994 
law unless the Federal Acquisition Regulatory Council makes a 
determination pursuant to subsection (aX2) within 60 days after 
the date on which the petition is received.". 
SEC. 4102. ARMED SERVICES ACQUISITIONS. 
(a) LIST OF INAPPLICABLE LAWS IN FAR.—Section 2302a of 
title 10, United States Code, as added by section 4002, is amended 
by adding at the end the following: 
"(b) INAPPLICABLE LAWS.—NO law properly listed in the Federal 
Acquisition Regulation pursuant to section 33 of the OfiBce of Fed-
eral Procurement Policy Act shall apply to or with respect to a 
contract or subcontract that is not greater than the simplified 
acquisition threshold.". 
(b) INAPPLICABILITY OF REQUIREMENT FOR CONTRACT CLAUSE 
REGARDING CONTINGENT FEES.—Section 2306(b) of title 10, United 
States Code, is amended by adding at the end the following: "This 
subsection does not apply to a contract that is for an amount 
not greater than the simplified acquisition threshold.". 
(c) INAPPLICABILITY OF AUTHORITY TO EXAMINE BOOKS AND 
RECORDS OF CONTRACTORS.—Section 2313 of title 10, United States 
Code, as amended by section 2201, is fiu*ther amended by adding 
at the end of subsection (f) the following: 
"(2) A contract or subcontract that is for an amount not 
greater than the simplified acquisition threshold.". 
(d) INAPPLICABILITY OF REQUIREMENT TO IDENTIFY SUPPLIERS 
AND SOURCES OF SUPPLIES.—Section 2384(b) of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph: 
"(3) The regulations prescribed pursuant to paragraph (1) do 
not apply to a contract for an amount not greater than the simplified 
acquisition threshold (as defined in section 4(11) of the Office of 
Federal Procurement PoHcy Act (41 U.S.C. 403(11)).". 
(e) INAPPLICABILITY OF PROHIBITION AGAINST DOING BUSINESS 
WITH CERTAIN OFFERORS OR CONTRACTORS.—Section 2393(d) of title 
10, United States Code, is amended in the second sentence by 
striking out "above" and all that follows and inserting in heu 
thereof "greater than the simpUfied acquisition threshold (as defined 
in section 4(11) of the Office of Federal Procurement PoUcy Act 
(41 U.S.C. 403(11))).". 
(f) INAPPLICABILITY OF PROHIBITION ON LIMITING SUBCONTRAC-
TOR DIRECT SALES TO THE UNITED STATES.—Section 2402 of title 
10, United States Code, is amended by adding at the end the 
following new subsection: 
"(c) This section does not apply to a contract that is for an 
amount not greater than the simplified acquisition threshold (as 
defined in section 4(11) of the Office of Federal Procurement PoUcy 
Act (41 U.S.C. 403(11))).". 
(g) INAPPLICABILITY OF PROHIBITION ON PERSONS CONVICTED 
OF DEFENSE-RELATED FELONIES.—Section 2408(a) of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph: 
"(4) The prohibition in paragraph (1) does not apply with respect 
to the following: 
"(A) A contract referred to in subparagraph (A), (B), (C), 
or (D) of such paragraph that is not greater than the simplified 
acquisition threshold (as defined in section 4(11) of the Office 
of Federal Procurement PoUcy Act (41 U.S.C. 403( 11))). 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3341 
"(C) A subcontract referred to in such subparagraph that 
is under a contract described in subparagraph (A).". 
(h) INAPPLICABILITY OF CONTRACTOR INVENTORY ACCOUNTING 
SYSTEM STANDARDS.—Section 2410b of title 10, United States Code, 
is amended— 
(1) by inserting "(a)" before "The Secretarjr"; and 
(2) by adding at the end the following: 
"(b) The regulations prescribed pursuant to subsection (a) shall 
not apply to a contract that is for an amount not greater than 
the simplified acquisition threshold.". 
(i) INAPPLICABILITY OF MISCELLANEOUS PROCUREMENT LIMITA-
TIONS.—Section 2534 of title 10, United States Code, is amended 
by adding at the end the following: 
"(g) INAPPLICABILITY TO CONTRACTS UNDER SIMPLIFIED ACQUISI-
TION THRESHOLD.—^This section does not apply to a contract or 
subcontract for an amount that does not exceed the simplified 
acquisition threshold.". 
SEC. 4103. CIVILIAN AGENCY ACQUISITIONS. 
(a) LIST OF INAPPLICABLE LAWS IN FAR.—Section 302A of the 
Federal Property and Administrative Services Act of 1949, as added 
by section 4003, is amended by adding at the end the following: ^i use 252a. 
"(b) INAPPLICABLE LAWS.—NO law properly hsted in the Federal 
Acquisition Regulation pursuant to section 33 of the Office of Fed-
eral Procurement Policy Act shall apply to or with respect to a 
contract or subcontract that is not greater than the simplified 
acquisition threshold.". 
(b) INAPPLICABILITY OF PROHIBITION ON LIMITING SUBCONTRAC-
TOR DIRECT SALES TO THE UNITED STATES.—Section 303G of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253g) is amended by adding at the end the following new subsection: 
"(c) This section does not apply to a contract for an amount 
that is not greater than the simplified acquisition threshold.". 
(c) INAPPLICABILITY OF REQUIREMENT FOR CONTRACT CLAUSE 
REGARDING CONTINGENT FEES.—Section 304(a) of the Federal Prop-
erty and Administrative Services Act of 1949 (41 U.S.C. 254(a)) 
is amended by adding at the end the following: "The preceding 
sentence does not apply to a contract for an amount that is not 
greater th£in the simplified acquisition threshold.". 
(d) AUTHORITY TO EXAMINE BOOKS AND RECORDS OF CONTRAC-
TORS.—Section 304C of the Federal Property and Administrative 
Services Act of 1949, as added by section 2251(a), is amended 4iusC254d. 
by adding at the end of subsection (f) the following: 
(2) A contract or subcontract that is not greater than 
the simplified acquisition threshold.". 
SEC. 4104. ACQUISITIONS GENERALLY. 
(a) REQUIREMENT FOR CONTRACT CLAUSE RELATING TO KICK-
BACKS.—Section 7 of the Anti-Kickback Act of 1986 (41 U.S.C. 
57) is amended by adding at the end the following new subsections: 
"(d) Subsections (a) and (b) do not apply to a prime contract 
that is not greater than $100,000. 
"(e) Notwithstanding subsection (d), a prime contractor shall 
cooperate fully with any Federal Grovemment agency investigating 
a violation of section 3.". 
(b) MILLER ACT.—(1)(A) The Miller Act is amended by adding 
at the end the following new section: 
note. 
108 STAT. 3342 
PUBLIC LAW 103-355—OCT. 13, 1994 
40USC270d-i. 
"SEC. 5. This Act does not apply to a contract in an amount 
that is not greater than $100,000.". 
40 use 270a. 
(B) Subsection (a) of the first section of such Act is amended 
by striking out", exceeding $25,000 in amount,". 
^IH^^^^^ 
,(2)(A) The Federal Acquisition Regulation shall provide alter-
natives to pa3nnent bonds as payment protections for suppliers 
of labor and materials under contracts referred to in subparagraph 
(C). 
(B) The contracting officer for a contract shall— 
(i) select, from among the payment protections provided 
for in the Federal Acquisition Regulation pursuant to subpara-
graph (A), one or more pajnnent protections which the offeror 
awarded the contract is to submit to the Federal Government 
for the protection of suppliers of labor and materials for such 
contract; and 
(ii) specify in the solicitation of offers for such contract 
the payment protection or protections so selected. 
(C) The regulations required under subparagraph (A) and the 
requirements of subparagraph (B) apply with respect to contracts 
referred to in subsection (a) of the first section of the Miller Act 
that are greater than $25,000 but not greater than $100,000. 
(c) CONTRACT WORK HOURS AND SAFETY STANDARDS ACT.— 
(1) Section 103 of the Contract Work Hours and Safety Standards 
Act (40 U.S.C. 329) is amended by adding at the end the following 
new subsection: 
"(c) This title does not apply to a contract in an amoimt that 
is not greater than $100,000.". 
(2) Section 107(a) of such Act (40 U.S.C. 333(a)) is amended 
by inserting after "It shall be a condition of each contract" the 
following: "(other than a contract referred to in section 103(c))". 
(d) DRUG-FREE WORKPLACE ACT OF 1988.—Section 5152(a)(1) 
of the Drug-Free Workplace Act of 1988 (subtitle D of title V 
of the Anti-Drug Abuse Act of 1988; Public Law 100-690; 41 U.S.C. 
701(a)(1)) is amended by striking out "of $25,000 or more from 
any Federal agencj^ and inserting in lieu thereof "greater than 
the simplified acquisition threshold (as defined in section 4(11) 
of such Act (41 U.S.C. 403(11))) by any Federal agency". 
(e) SouD WASTE DISPOSAL ACT.—Paragraph (3) of section 
6002(c) of the SoHd Waste Disposal Act (42 U.S.C. 6962(c)) is 
amended— 
(1) by redesignating subparagraphs (A) and (B) as clauses 
(i) and (ii), respectively; 
(2) by inserting "(A)" after "(3)"; and 
(4) by adding at the end the following new subparagraph: 
"(B) Clause (ii) of subparagraph (A) appUes only to a contract 
in an amount greater than $100,000.". 
Subtitle C—Simplified Acquisition 
Procedures 
SEC. 4201. SIMPLIFIED ACQUISITION PROCEDURES. 
(a) REQUIREMENT FOR SIMPLIFIED PROCEDURES IN FAR.—The 
Office of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) 
is further amended by inserting before section 33, as added by 
section 4101, the following new section: 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3343 
"SEC. 31. SIMPLIFIED ACQUISITION PROCEDURES. 
41 USC 427. 
"(a) REQUIREMENT.—In order to promote 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 contracts for acquisition of property 
and services that are not greater than the simplified acquisition 
threshold. 
"(b) PROHIBITION ON DIVIDING PURCHASES.—A proposed pur-
chase or contract 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 acquisition proce-
dures required by subsection (a). 
"(c) PROMOTION OF COMPETITION REQUIRED.—In using sim-
plified acquisition procedures, the head of an executive agency 
shall promote competition to the maximum extent practicable. 
"(d) CONSIDERATION OF OFFERS TIMELY RECEIVED.—The sim-
plified acquisition procedures contained in the Federal Acquisition 
Regulation shall include a requirement that a contracting officer 
consider each responsive offer timely received from an eligible 
offeror. 
"(e) SPECIAL RULES FOR USE OF SIMPLIFIED ACQUISITION PROCE-
DURES.— 
"(1) EFFECT OF INTERIM FACNET C LABILITY.—The sim-
plified acquisition procedures provided in the Federal Acquisi-
tion Regulation pursuant to this section may not be used by 
a procuring activity of an agency for contracts in amounts 
greater than $50,000 and not greater than the simplified 
acquisition threshold until a certification has been made pursu-
ant to section 30A(a)(l) that the procuring activity has imple-
mented an interim FACNET capabiUty. 
"(2) 
EFFECT OF FULL FACNET CAPABILITY.—(A)(i) In 
the 
case of a procuring activity described in clause (ii), the sim-
plified acquisition procedures provided in the Federal Acquisi-
tion Regulation pursuant to this section mav be used by the 
activity for contracts in amounts greater than $50,000 and 
not greater than the simplified acquisition threshold, 
"(ii) Clause (i) applies to any procuring activity— 
"(I) that has not certified, pursuant to section 30A(a)(l), 
that it has implemented interim FACNET capability; and 
"(II) that is in an agency that has excluded the procur-
ing activity from the agency's full FACNET certification 
under section 30A(a)(2) on the basis that implementation 
of full FACNET capability would not be cost effective or 
practicable in that activity. 
"(B) The simplified acquisition procedures provided in the 
Federal Acquisition Regulation pursuant to this section may 
not be used by an agency afl;er December 31, 1999, for contracts 
in amounts greater than $50,000 and not greater than the 
simplified acquisition threshold until a certification has been I 
made pursuant to section 30A(a)(2) that the agency has imple-
mented a full FACNET capabiHty. 
"(f) INTERIM REPORTING RULE.—Until October 1, 1999, procur-
ing activities shall continue to report under section 19(d) procure-
ment awards with a dollar value of at least $25,000, but less 
than $100,000, in conformity with the procedures for the reporting 
of a contract award greater than $25,000 that were in effect on 
October 1,1992.". 
108 STAT. 3344 
PUBLIC LAW 103-355—OCT. 13, 1994 
(b) 
OPPORTUNITY 
FOR 
ALL 
RESPONSIBLE 
POTENTIAL 
OFFERORS.—Subsection (a) of section 18 of such Act is amended 
by adding at the end the following: 
"(4) An executive agency intending to solicit offers for a contract 
for which a notice of solicitation is required to be posted under 
paragraph (1)(B) shall ensure that contracting officers consider 
each responsive ofTer timely received from an offeror,". 
(c) ESTABLISHMENT OF DEADLINE FOR SUBMISSION OF OFFERS.— 
Subsection (a) of section 18 of such Act is further amended by 
adding after paragraph (4), as added by subsection (b), the following 
new paragraph: 
"(5) An executive agency shall establish a deadline for the 
submission of all bids or proposals in response to a solicitation 
with respect to which no such deadline is provided by statute. 
Each deadline for the submission of offers shall afford potential 
offerors a reasonable opportunity to respond.". 
SEC. 4202. PROCUREMENT NOTICE. 
(a) 
CONTINUATION OF EXISTING NOTICE THRESHOLDS.—Sub-
section (a) of section 18 of the Office of Federal Procurement PoUcy 
Act (41 U.S.C. 416) is amended— 
(1) in paragraph (1), by striking out "the small purchase 
threshold" each place it appears and inserting in Ueu thereof 
"$25,000"; and 
(2) in paragraph (3)(B), by inserting after "(B)" the follow-
ing: "in the case of a contract or order expected to be greater 
than the simplified acquisition threshold,". 
(b) CONTENT OF NOTICE.—Subsection (b) of such section is 
amended— 
(1) by striking out "and" at the end of paragraph (4); 
(2) by striking out the period at the end of paragraph 
(5) and inserting in lieu thereof a semicolon; and 
(3) by adding at the end the following: 
"(6) in the case of a contract in an amount estimated 
to be greater than $25,000 but not greater than the simplified 
acquisition threshold— 
"(A) a description of the procedures to be used in 
awarding the contract; and 
"(B) a statement specifying the periods for prospective 
offerors and the contracting officer to take the necessary 
preaward and award actions.". 
(c) NOTICE NOT REQUIRED FOR PROCUREMENT MADE THROUGH 
FACNET.—Subsection (c)(1) of such section, as amended by section 
1055(b), is further amended— 
(1) by redesignating subparagraphs (A), (B), (C), (D), (E), 
and (F) as subparagraphs (C), (D), (E), (F), (G), and (H), respec-
tively; and 
(2) by inserting before subparagraph (C), as so redesig-
nated, the following new subparagraphs: 
"(A) the proposed procurement is for an amount not greater 
than the simplified acquisition threshold and is to be made 
through a system with interim FACNET capability certified 
pursuant to section 30A(a)(l) or with full FACNET capability 
certified pursuant to section 30A(a)(2); 
"(B)(i) the proposed procurement is for an amount not 
greater than $250,000 and is to be made through a system 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3345 
with full FACNET capability certified pursuant to section 
30A(a)(2); and 
"(ii) a certification has been made pursuant to section 
30A(b) that Government-wide FACNET capability has been 
implemented;", 
(d) NOTICE UNDER THE SMALL BUSINESS ACT.— 
(1) CONTINUATION OF EXISTING NOTICE THRESHOLDS.—Sub-
section (e) of section 8 of the Small Business Act (15 U.S.C. 
637) is amended— 
(A) in paragraph (1), by striking out "the small pur-
chase threshold each place it appears and inserting in 
lieu thereof "$25,000"; and 
(B) in paragraph (3)(B), by inserting afl^r "(B)" the 
following: "in the case of a contract or order estimated 
to be greater than the simpUfied acquisition threshold,". 
(2) CONTENT OF NOTICE.—Subsection (f) of such section 
is amended— 
(A) by striking out "and" at the end of paragraph 
(4); 
(B) by striking out the period at the end of paragraph 
(5) and inserting in lieu thereof a semicolon; and 
(C) by adding at the end the following: 
"(6) in the case of a contract in an amount estimated 
to be greater than $25,000 but not greater than the simplified 
acquisition threshold— 
"(A) a description of the procedures to be used in 
awarding the contract; and 
"(B) a statement specifying the periods for prospective 
offerors and the contracting officer to take the necessary 
preaward and award actions.". 
(3) 
NOTICE 
NOT REQUIRED 
FOR 
PROCUREMENT 
MADE 
THROUGH FACNET.—Subsection (gXl) of such 
section 
is 
amended— 
(A) by redesignating subparagraphs (A), (B), (C), (D), 
(E), and (F) as subparagraphs (C), (D), (E), (F), (G), and 
(H), respectively; and 
(B) by inserting before subparagraph (C), as so redesig-
nated, the following new subparagraphs: 
"(A) the proposed procurement is for an amount not greater 
than the simplified acquisition threshold and is to be made 
through a system with interim FACNET capability certified 
pursuant to section 30A(a)(l) of the Office of Federal Procure-
ment Pohcy Act or with fiiU FACNET capability certified pursu-
ant to section 30A(a)(2) of such Act; 
"(B)(i) the proposed procurement is for an amount not ^ 
greater than $250,000 and is to be made through a system 
with full FACJNET capability certified pursuant to section 
30A(a)(2) of the Office of Federal Procurement Pohcy Act; and 
"(ii) a certification has been made pursuant to section 
30A(b) of such Act that Government-wide FACNET capability 
has been implemented;". 
SEC. 4203. IMPLEMENTATION OF SIMPLIFIED ACQUISITION PROCE-
DURES. 
(a) IMPLEMENTATION nsr TITLE 10.—(1) Chapter 137 of title 
10, United States Code, is amended by inserting after section 2302a, 
as added by section 4002(a), the following new section: 
108 STAT. 3346 
PUBLIC LAW 103-355—OCT. 13, 1994 
*
*
§ 2302b. Implementation of simplified acquisition proce-
dures 
"The simplified acquisition procedures contained in the Federal 
Acquisition Regulation pursuant to section 31 of the Office of Fed-
eral Procurement Policy Act shall apply as provided in such section 
to the agencies named in section 2303(a) of this title.". 
(2) The table of sections at the beginning of chapter 137 of 
such title is amended by inserting after the item relating to section 
2302a, as added by section 4002(b), the following new item: 
''2302b. Implementation of simplified acquisition procedures.". 
(b) IMPLEMENTATION IN CIVILIAN AGENCIES.—Title III of the 
Federal Property and Administrative Services Act of 1949 is amend-
ed by inserting after section 302A, as added by section 4003 and 
amended by section 4103, the following new section: 
41 use 252b. 
"SEC. 302B. IMPLEMENTATION OF SIMPLIFIED ACQUISITION PROCE-
DURES. 
'The simplified acquisition procedures contained in the Federal 
Acquisition Regulation pursuant to section 31 of the Office of Fed-
eral Procurement PoHcy Act shall apply in executive agencies as 
provided in such section.". 
Subtitle D—^Micro-Purchase Procedures 
SEC. 4301. PROCEDURES FOR PURCHASES BELOW MICRO-PURCHASE 
THRESHOLD. 
(a) PROCEDURES.—^The Office of Federal Procurement Policy 
Act (41 U.S.C. 401 et seq.) is amended by adding after section 
31, as added by section 4201, the following new section: 
41 use 428. 
«SEC. 32. PROCEDURES APPLICABLE TO PURCHASES BELOW MICRO-
PURCHASE THRESHOLD. 
"(a) REQUIREMENTS.—(1) The head of each executive agency 
shall ensure that procuring activities of that agency, in awarding 
a contract with, a price exceeding the micro-purchase threshold, 
comply with the requirements of section 8(a) of the Small Business 
Act (15 U.S.C. 637(a)), section 2323 of title 10, United States 
Code, and section 7102 of the Federal Acquisition StreamUning 
Act of 1994. 
"(2) The authority under part 13.106(a)(1) of the Federal 
Acquisition Regulation (48 C.F.R. 13.106(a)(1)), as in effect on 
November 18,1993, to make purchases without securing competitive 
quotations does not apply to any purchases with a price exceeding 
tne micro-purchase thresnold. 
"(b) EXCLUSION FOR MICRO-PURCHASES.—A purchase by an 
executive agency with an anticipated value of the micro-purchase 
threshold or less is not subject to section 15(j) of the Small Business 
Act (15 U.S.C. 644(j)) and the Buy American Act (41 U.S.C. 10a-
10c). 
"(c) APPLICABILITY OF CERTAIN PROVISIONS.—For purposes of 
section 27, an officer or employee of an executive agency, or a 
member of the Armed Forces of the United States, shall not be 
considered a procurement official if— 
"(1) the contracting authority of the officer, employee, or 
member does not exceed $2,500; and 
PUBLIC LAW 103-355—OCT. 13,1994 
108 STAT. 3347 
"(2) the head of the contracting activity concerned (or a 
designee of the head of the contracting activity concerned) 
determines that the duties of the position of that officer, 
employee, or member are such that is it unlikely that the 
officer, employee, or member will be required to conduct 
procurements in a total amount greater than $20,000 in any 
12-month period. 
"(d) PURCHASES WITHOUT COMPETITIVE QUOTATIONS.—A pur-
chase not greater than $2,500 may be made without obtaining 
competitive quotations if the contracting officer determines that 
the price for the purchase is reasonable. 
"(e) EQUITABLE DISTRIBUTION.—Purchases not greater than 
$2,500 shall be distributed equitably among qualified suppliers. 
"(f) IMPLEMENTATION THROUGH FAR.—This section shall be 
implemented through the Federal Acquisition Regulation. 
"(g) MICRO-PURCHASE THRESHOLD DEFINED.—For purposes of 
this section, the micro-purchase threshold is the amount of $2,500.". 
(b) EXCEPTION TO BUY AMERICAN ACT FOR MICRO-PURCHASES.— 
Section 2 of the Buy American Act (41 U.S.C. 10a) is amended 
by adding at the end the following: "This section shall not apply 
to manufactured articles, materials, or supplies procured imder 
any contract the award value of which is less than or equal to 
the micro-purchase threshold under section 32 of the Omce of 
Federal Procurement Policy Act.". 
(c) EFFECTIVE DATE.—^Notwithstanding any other provision of 41 use lOa note. 
law— 
(1) section 32 of the Office of Federal Procurement Policy 
Act, as added by subsection (a); and 
(2) the amendment made by subsection (b); 
shall take effect on the date of the enactment of this Act and 
shall be implemented in the Federal Acquisition Regulation not 
later than 60 days after such date of enactment. 
Subtitle E—Conforming Amendments 
SEC. 4401. ARMED SERVICES ACQUISITIONS. 
(a) SIMPLIFIED ACQUISITION PROCEDURES.—Section 2304(g) of 
title 10, United States Code, is amended— 
(1) in paragraph (1), by striking out "small purchases of 
property and services" and inserting in lieu thereof "purchases 
of property and services for amounts not greater than the 
simphned ac(][uisition threshold"; 
(2) by striking out paragraph (2); 
(3) by redesignating paragraphs (3) and (4) as paragraphs 
(2) and (3), respectively; 
(4) in paragraph (2), as so redesignated— 
(A) by striking out "small purchase threshold" and 
inserting in lieu thereof "simplified acquisition threshold"; 
and 
(B) by striking out "small purchase procedures" and 
inserting in lieu thereof "simplified procedures"; and 
(5) in paragraph (3), as redesignated by paragraph (3), 
by striking out "small purchase jprocedures" and inserting in 
lieu thereof "simplified procedures . 
(b) SOLICITATION CONTENT REQUIREMENT.—Section 2305(a)(2) 
of such title is amended by striking out "smsQl purchases)" in 
108 STAT. 3348 
PUBLIC LAW 103-355—OCT. 13, 1994 
10 use 2241 
note. 
Regulations. 
the matter preceding subparagraph (A) and inserting in lieu thereof 
"a purchase for an amount not greater than the simplified acquisi-
tion threshold)". 
(c) COST TYPE CONTRACTS.—Section 2306(e)(2)(A) of such title 
is amended by striking out "smgdl purchase threshold" and inserting 
in lieu thereof "simplified acquisition threshold". 
(d) REPORTS OF EMPLOYEES OR FORMER EMPLOYEES OF DEFENSE 
CONTRACTORS.—Subsection (a)(1) of section 2397 of title 10, United 
States Code, is amended by striking out "small purchase threshold 
(as defined in section 2302(7) of this title)" and inserting in Ueu 
thereof "simplified acquisition threshold". 
(e) CROSS REFERENCE AMENDMENT.—Section 9005 of PubUc 
Law 102-396 (10 U.S.C. 2441 note) is amended in the first sentence 
by striking out "small purchases covered by section 2304(g)" and 
inserting in Ueu thereof "purchases for amounts not greater than 
the simplified acquisition threshold covered by section 2304(g)". 
SEC. 4402. CIVILIAN AGENCY ACQUISITIONS. 
(a) SIMPLIFIED ACQUISITION PROCEDURES.—Section 303(g) of 
the Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 253(g)) is amended— 
(1) in paragraph (1)— 
(A) by striking out "small purchases of property and 
services" and inserting in lieu thereof "purchases of prop-
erty and services for amoimts not greater than the sim-
plified acquisition threshold", and 
(B) by striking out "regulations modified, in accordance 
with section 2752 of the Competition in Contracting Act 
of 1984," and inserting in lieu thereof "Federal Acquisition 
Regulation"; 
(2) by striking out paragraph (2) and inserting in lieu 
thereof the following: 
"(2)(A) The Administrator of General Services shall prescribe 
regulations that provide special simplified procedures for acquisi-
tions of leasehold interests in real property at rental rates that 
do not exceed the simplified acquisition 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) in paragraph (3)— 
(A) by striking out "small purchase threshold" and 
inserting in Ueu thereof "simplified acquisition threshold"; 
and 
(B) by striking out "small purchase procedures" and 
inserting in lieu thereof "simplified procedures"; 
(4) in paragraph (4), by striking out "small purchase proce-
dures" and inserting in lieu thereof "the simplified procedures"; 
and 
(5) by striking out paragraph (5). 
(b) SOLICITATION CONTENT REQUIREMENT.—Section 303A(b) of 
such Act (41 U.S.C. 253a(b)) is amended by striking out "small 
purchases)" in the matter preceding paragraph (1) and inserting 
in lieu thereof "a purchase for an amount not greater than the 
simplified acquisition threshold)". 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3349 
(c) COST TYPE CONTRACTS.—Section 304(b) of such Act (41 
U.S.C. 254(b)) is amended in the sentence beginning with "All 
cost and cost-plus-a-fixed-fee" by striking out "either $25,000" and 
inserting in Ueu thereof "either the simplified acquisition threshold". 
SEC. 4403. OFFICE OF FEDERAL PROCUREMENT POUCY ACT. 
Section 19(a) of the Office of Federal Procurement PoUcy Act 
(41 U.S.C. 417(a)) is amended by striking out "procurements, other 
than small purchases," and inserting in lieu thereof "procurements 
greater than the simplified acquisition threshold". 
SEC. 4404. SIVIALL BUSINESS ACT. 
(a) DEFINITION.—Section 3(m) of the Small Business Act (15 
U.S.C. 632(m)) is amended by striking out " 'small purchase thresh-
old'" and inserting in lieu thereof "'simplified acquisition thresh-
old'". 
(b) USE OF SIMPLIFIED ACQUISITION THRESHOLD TERM.—Section 
8(d)(2)(A) of the Small Business Act (15 U.S.C. 637(d)(2)(A)) is 
amended by striking out "small purchase threshold" and inserting 
in lieu thereof "simplified acquisition threshold". 
TITLE V—ACQUISITION MANAGEMENT 
Subtitle A—^Armed Services Acquisitions 
SEC. 
S
O
O
l
. 
PERFORMANCE 
BASED 
MANAGEMENT. 
(a) POLICY AND (JOALS FOR PERFORMANCE BASED MANAGEMENT 
OF PROGRAMS.—(1) Chapter 131 of title 10, United States Code, 
is amended by adding at the end the following new section: 
'^§2220. Performance based management: acquisition pro-
grams 
"(a) ESTABLISHMENT OF GOALS.—(1) The Secretary of Defense 
shall approve or define the cost, performance, and schedule goals 
for m£gor defense acquisition programs of the Department of 
Defense and for each phase of the acquisition cycle of such pro-
grams. 
"(2) The Comptroller of the Department of Defense shall evalu-
ate the cost goals proposed for each major defense acquisition 
program of the Department. 
"(b) ANNUAL 
REPORTING 
REQUIREMENT.—The Secretary of 
Defense shall include in the annual report submitted to Congress 
pursuant to section 113(c) of this title an assessment of whether 
major and nonmsgor acquisition programs of the Department of 
Defense are achieving, on average, 90 percent of cost, performance, 
and schedule goals established pursuant to subsection (a) and 
whether the average period for converting emerging technology 
into operational capability has decreased by 50 percent or more 
' 
from the average period required for such conversion as of the 
date of the enactment of the Federal Acquisition Streamlining Act 
of 1994. The Secretary shall use data from existing management 
systems in making the assessment. 
"(c) PERFORMANCE EVALUATION.—Whenever the Secretary of 
Defense, in the assessment required by subsection (b), determines 
that major defense acquisition programs of the IDepartment of 
Defense are not achieving, on average, 90 percent of cost, perform-
108 STAT. 3350 
PUBLIC LAW 103-355—OCT. 13, 1994 
ance, and schedule goals established pursuant to subsection (a), 
the Secretary shall ensure that there is a timely review of major 
defense acquisition programs and other programs as appropriate. 
In conducting the review, the Secretary shall— 
"(1) determine whether there is a continmng need for pro-
grams that are significantly behind schedule, over budget, or 
not in compliEuice with performance or capability requirements; 
and 
"(2) identify suitable actions to be taken, including termi-
nation, with respect to such programs.". 
(2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"2220. Performance based management: acquisition programs.". 
10 use 2220 
(b) ENHANCED SYSTEM OF PERFORMANCE INCENTIVES.—Within 
"o*®- 
one year after the date of the enactment of this Act, the Secretary 
of Defense shall review the incentives and personnel actions avail-
able to the Secretary of Defense for encouraging excellence in the 
management of defense acquisition programs and provide an 
enhanced system of incentives to facilitate the achievement of goals 
approved or defined pursuant to section 2220(a) of title 10, United 
States Code. The enhanced system of incentives shall, to the maxi-
mum extent consistent with applicable law— 
(1) relate pay to performance (including the extent to which 
the performance of personnel in such programs contributes 
to achieving the cost goals, performance goals, and schedule 
goals established for acquisition programs of the Department 
of Defense pursuant to section 2220(a) of title 10, as added 
by subsection (a)); and 
(2) provide for consideration, in personnel evaluations and 
promotion decisions, of the extent to which the performance 
of personnel in such programs contributes to achieving the 
cost goals, performance goals, and schedule goals established 
for acquisition programs of the Department of Defense pursuant 
to section 2220(a) of title 10, United States Code, as added 
by subsection (a). 
10 use 2220 
(c) RECOMMENDED LEGISLATION.—Not later than one year after 
note. 
the date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress any recommended legislation that the 
Secretary considers necessary to carry out section 2220 of title 
10, United States Code, as added by subsection (a), and otherwise 
to facilitate and enhance management of Department of Defense 
acquisition programs on the basis of performance. 
SEC. 5002. REVIEW OF ACQUISITION PROGRAM CYCLE. 
10 use 2435 
(a) REVIEW.—^The Secretary of Defense shall review the regula-
note. 
tions of the Department of Defense to ensure that acquisition pro-
gram cycle procedures are focused on achieving the goals that 
are consistent with the program baseline description established 
pursuant to section 2435 of title 10, United States (5ode. 
10 use 2430 
(b) REPEALS.—Sections 835 and 836 of the National Defense 
note. 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 
Stat. 1717) are hereby repealed. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3351 
Subtitle B—Civilian Agency Acquisitions 
SEC. 6051. PERFORMANCE BASED MANAGEMENT. 
(a) POLICY AND GOALS FOR PERFORMANCE BASED MANAGEMENT 
OF PROGRAMS.—^Title III of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 301 et seq.), as amended by sections 
1552 and 1553, is further amended by adding at the end the 
following new section: 
*'SEC. 313. PERFORMANCE BASED MANAGEMENT: ACQUISITION PRO- 41 USC 268. 
GRAMS. 
"(a) CONGRESSIONAL POLICY.—It is the policy of Congress that 
the head of each executive agency should achieve, on average, 
90 percent of the cost and schedule goals established for major 
and nonmajor acquisition programs of the agency without reducing 
the performance or capabilities of the items being acquired. 
"(b) ESTABLISHMENT OF GOALS.—(1) The head of each executive 
agency shall approve or define the cost, performance, and schedule 
goals for major acquisition programs of the agency. 
"(2) The chief financial officer of an executive agency shall 
evaluate the cost goals proposed for each m£gor acquisition program 
of the agency. 
"(c) IDENTIFICATION OF NONCOMPLIANT PROGRAMS.—Whenever 
it is necessary to do so in order to implement the policy set out 
in subsection (a), the head of an executive agency shall— 
"(1) determine whether there is a continuing need for pro-
grams that are significantly behind schedule, over budget, or 
not in compUance with performance or capability requirements; 
and 
"(2) identify suitable actions to be taken, including termi-
nation, with respect to such programs.". 
(b) ANNUAL REPORTING REQUIREMENT.—Section 6 of the OflBce 
of Federal Procurement PoUcy Act (41 U.S.C. 405), as amended 
by section 1091, is further amended by adding at the end the 
following new subsection: 
"(k) The Administrator shall submit to Congress, on an annual 
basis, an assessment of the progress made in executive agencies 
in implementing the policy stated in section 313(a) of the Federal 
Property and Administrative Services Act of 1949. The Adminis-
trator shall use data fi*om existing management systems in making 
the assessment.". 
(c) ENHANCED SYSTEM OF PERFORMANCE INCENTIVES.—Within 4i use 263 note, 
one year after the date of the enactment of this Act, the Deputy 
Director for Management of the Office of Management and Budget, 
in consultation with appropriate officials in other departments and 
agencies of the Federal (jovemment, shall, to the maximum extent 
consistent with applicable law— 
(1) establish poUcies and procedures for the heads of such 
departments and agencies to designate acquisition positions 
and manage employees (including the accession, education, 
training and career development of employees) in the des-
ignated acquisition positions; and 
(2) review the incentives and personnel actions available 
to the heads of departments and agencies of the Federsd 
Ciovemment for encouraging excellence in the acquisition 
workforce of the Federal Government and provide an enhanced 
108 STAT. 3352 
PUBLIC LAW 103-355—OCT. 13, 1994 
system of incentives for the encouragement of excellence in 
such workforce which— 
(A) relates pay to performance (including the extent 
to which the performance of personnel in such workforce 
contributes to achieving the cost goals, schedule goals, and 
performance goals established for acquisition programs 
pursuant to section 313(b) of the Federal Property and 
Administrative Services Act of 1949, as added by subsection 
(a)); and 
(B) provides for consideration, in personnel evaluations 
and promotion decisions, of the extent to which the 
performance of personnel in such workforce contributes 
to achieving such cost goals, schedule goals, and perform-
ance goals. 
41 use 263 note. 
(d) RECOMMENDED LEGISLATION.—Not later than one year after 
the date of the enactment of this Act, the Administrator for Federal 
Procurement Policy shall submit to Congress any recommended 
legislation that the Secretary considers necessary to carry out sec-
tion 313 of the Federal Property and Administrative Services Act 
of 1949, as added by subsection (a), and otherwise to facilitate 
and enhance management of Federal Government acquisition pro-
grams and the acquisition workforce of the Federal Government 
on the basis of performance. 
41 use 405 note. SEC. 5052. RESULTS-ORIENTED ACQUISITION PROCESS. 
(a) DEVELOPMENT OF PROCESS REQUIRED.—The Administrator 
for Federal Procurement PoUcy, in consultation with the heads 
of appropriate Federal agencies, shall develop results-oriented 
acquisition process guidelines for implementation by agencies in 
acquisitions of property and services by the Federal agencies. The 
process guidelines shall include the identification of quantitative 
measures and standards for determining the extent to which an 
acquisition of items other than commercisJ items by a Federal 
agency satisfies the needs for which the items are being acquired. 
(b) INAPPLICABILITY OF PROCESS TO DEPARTMENT OF DEFENSE.— 
The process guidelines developed pursuant to subsection (a) may 
not be applied to the Department of Defense. 
Subtitle C—Pilot Programs 
41 use 413 note. SEC. 5061. OFPP TEST PROGRAM FOR EXECUTIVE AGENCIES. 
(a) IN GENERAL.—^The Administrator for Federal Procurement 
Policy (in this section referred to as the "Administrator") may 
conduct a program of tests of alternative and innovative procure-
ment procedures. To the extent consistent with this section, such 
program shall be conducted consistent with section 15 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 413). No more than 
6 such tests shall be conducted under the authority of this sub-
section, and not more than 1 such test shall be conducted under 
such authority in gin agency. 
(b) DESIGNATION OF AGENCIES.—Each test conducted pursuant 
to subsection (a) shall be carried out in not more than 2 specific 
procuring activities in an agency designated by the Administrator. 
Each agency so designated shall select the procuring activities 
participating in the test with the approval of the Administrator 
and shall designate a procurement testing official who shall be 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3353 
responsible for the conduct and evaluation of tests within that 
agency. 
(c) TEST REQUIREMENTS AND LIMITATIONS.—(1) Each test con-
ducted under subsection (a)— 
(A) shall be developed and structured by the Administrator 
or by the agency senior procurement executive designated 
pursuant to section 16(3) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 414(3)) in close coordination with the 
Administrator; and 
(B) shall be limited to specific programs of agencies or 
specific acquisitions. 
(2) The total estimated life-cycle cost to the Federal Government 
for each test conducted under subsection (a) may not exceed 
$100,000,000. 
(3)(A) Except as provided in subparagraph (B), each contract 
awarded in conducting the tests under subsection (a) (including 
the cost of options if all options were to be exercised) may not 
exceed $5,000,000. 
(B) For one of the tests conducted under subsection (a), the 
amount of each contract awarded in conducting the test (including 
options) may exceed $5,000,000. 
(4) The program of tests conducted under subsection (a) shall 
include, either as a test or as part of a test, the use of the Federal 
acquisition computer network ("FACNET') capabiUty required by 
section 30 of the Office of Federal Procurement Policy Act (as 
added by section 9001) for procurement actions in amcunts greater 
than the simpUfied acquisition threshold. 
(d) LIMITATION ON TOTAL VALUE OF CONTRACTS UNDER PRO-
GRAM.—(1) The Administrator shall ensure that the total amount 
obUgated under contracts awarded pursuant to the program imder 
this section does not exceed $600,000,000. In calculating such 
amount, the Administrator shall not include any contract awarded 
for the test conducted by the National Aeronautics and Space 
Administration pursuant to section 5062 of this Act. 
(2) The Administrator shall monitor the value of contracts 
awarded pursuant to the program under this section. 
(3) No contract may be awarded under the program under 
this section if the award of the contract would result in obligation 
of more than $600,000,000 under contracts awarded pursuant to 
the program under this section. 
(e) PROCEDURES AUTHORIZED.—Tests conducted under this sec-
tion may include any of the following procedures: 
(1) Publication of agency needs before drafting of a solicita-
tion. 
(2) Issuance of draft solicitations for comment. 
(3) StreamUned solicitations that specify as the evaluation 
factors the minimum factors necessary, require sources to sub-
mit the minimum information necessary, provide abbreviated 
periods for submission of offers, and specify page limitations 
for offers. 
(4) Limitation of source selection factors to— 
(A) cost to the Federal Government; 
(B) past experience and performance; and 
(C) quality of the content of the offer. 
(5) Evaluation of proposals by small teams of highly quali-
fied people over a period not greater than 30 days. 
108 STAT. 3354 
PUBLIC LAW 103-355—OCT. 13, 1994 
(6) Restriction of competitions to sources determined 
capable in a precompetition screening process, provided that 
the screening process affords all interested sources a fair oppor-
tunity to be considered. 
(7) Restriction of competitions to sources of preevaluated 
products, provided that the preevaluation process affords all 
interested sources a fair opportunity to be considered. 
(8) Alternative notice and publication requirements. 
(9) A process in which— 
(A) the competitive process is initiated by publication 
in the Commerce Business Daily, or by dissemination 
through FACNET, of a notice t h a t ^ 
(i) contains a synopsis of the functional and 
performance needs of the executive agency conducting 
the test, and, for purposes of guidance only, other 
specifications; and 
(ii) invites any interested source to submit informa-
tion or samples showing the suitability of its product 
for meeting those needs, together with a price quota-
tion, or, if appropriate, showing the source's technical 
capability, past performance, product supportabiUty, 
or other qualifications (including, as appropriate, 
information regarding rates and other cost-related fac-
tors); 
(B) contracting officials develop a request for proposals 
(including appropriate specifications and evaluation cri-
teria) after reviewing the submissions of interested sources 
and, if the officials determine necessary, after consultation 
with those sources; and 
(C) a contract is awarded after a streamlined competi-
tion that is limited to all sources that timely provided 
product information in response to the notice or, if appro-
priate, to those sources determined most capable based 
on the qualification-based factors included in an invitation 
to submit information pursuant to subparagraph (A). 
(f) MEASURABLE TEST 
CRITERIA.—The Administrator shall 
require each agency conducting a test pursuant to subsection (a) 
to establish, to the maximum extent practicable, measurable criteria 
for evaluation of the effects of the procedure or technique to be 
tested. 
(g) TEST PLAN.—^At least 270 days before a test may be con-
ducted under this section, the Administrator shall— 
(1) provide a detailed test plan, including lists of any r e f -
lations that are to be waived, and any written determination 
under subsection (h)(1)(B) to the Committee on Government 
Operations of the House of Representatives and the Committee 
on Governmental Affairs of the Senate; 
(2) provide a copy of the plan to the appropriate authoriza-. 
tion and appropriations committees of the House of Representa-
tives and the Senate; and 
(3) publish the plan in the Federal Register and provide 
an opportunity for public comment. 
(h) WAIVER OF PROCUREMENT REGULATIONS.—(1) For purposes 
of a test conducted imder subsection (a), the Administrator may 
waive— 
(A) any provision of the Federal Acquisition Regulation 
that is not required by statute; and 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3355 
(B) any provision of the Federal Acquisition Regulation 
that is required by a provision of law described in paragraph 
'^ 
(2), the waiver of which the Administrator determines in writing 
to be necessary to conduct any test of any of the procedures 
described in subsection (e). 
(2) The provisions of law referred to in paragraph (1) are 
as follows: 
(A) The following provisions of title 10, United States Code: 
(i) Section 2304. 
(ii) Section 2305. 
(iii) Section 2319. 
(B) Subsections (e), (f), and (g) of section 8 of the Small 
Business Act (15 U.S.C. 637). 
(C) The following provisions of the Revised Statutes: 
(i) Section 3709 (41 U.S.C. 5). 
(ii) Section 3710 (41 U.S.C. 8). 
(iii) Section 3735 (41 U.S.C. 13). 
(D) The following provisions of the Federal Property and 
Administrative Services Act of 1949: 
(i) Section 303 (41 U.S.C. 253). 
(ii) Section 303A (41 U.S.C. 253a). 
(iii) Section 303B (41 U.S.C. 253b). 
(iv) Section 303C (41 U.S.C. 253c). 
(v) Section 310 (41 U.S.C. 260). 
(E) The following provisions of the Office of Federal 
Procurement Policy Act: 
(i) Section 4(6) (41 U.S.C. 403(6)). 
(ii) Section 18 (41 U.S.C. 416). 
(3) If the Administrator determines that the conduct of a test 
requires the waiver of a law not listed in paragraph (2) or requires 
approval of an estimated dollar amount not permitted under sub-
section (c)(4), the Administrator may propose legislation to authorize 
the waiver or grant the approval. Before proposing such legislation, 
the Administrator may provide and publish a test plan as described 
in subsection (g). 
(i) REPORT.—^Not later than 6 months after completion of a 
test conducted under subsection (a), the Comptroller (general shall 
submit to Congress a report for the test setting forth in detail 
the results of the test, including such recommendations as the 
Comptroller General considers appropriate. 
(j) COMMENCEMENT AND EXPIRATION OF AUTHORITY.—(1) The 
Administrator may not exercise the authority to conduct a test 
under subsection (a) in an agency and to award contracts under 
such a test before the date on which the head of the agency 
certifies to Congress under section 30A(a)(2) of the Office of Federal 
Procurement Policy Act that the agency has implemented a fiill 
FACNET capabiUty. 
(2) The authority to conduct a test under subsection (a) in 
an agency and to award contracts under such a test shall expire 
4 years after the date on which the head of the agency meikes 
the certification referred to in paragraph (1), Contracts entered 
into before such authority expires in an agency pursuant to a 
test shall remain in effect, notwithstanding the expiration of the 
authority to conduct the test under this section. 
(k) RULE OF CONSTRUCTION.—Nothing in this section shall be 
construed as authorizing the appropriation or obligation of funds 
for the tests conducted pursuant to subsection (a). 
108 STAT. 3356 
PUBLIC LAW 103-355—OCT. 13, 1994 
42 use 2473 
note. 
49 u s e 40110 
note. 
SEC. 5062. NASA MID-RANGE PROCUREMENT TEST PROGRAM. 
(a) IN GENERAL.—^The Administrator of the National Aero-
nautics and Space Administration (in this section referred to as 
the "Administrator") may conduct a test of alternative notice and 
publication requirements for procurements conducted by the 
National Aeronautics and Space Administration. To the extent 
consistent with this section, such program shall be conducted 
consistent with section 15 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 413). 
(b) APPLICABILITY.—^The test conducted under subsection (a) 
shall apply to acquisitions with an estimated annual total obligation 
of funds of $500,000 or less. 
(c) LIMITATION ON TOTAL COST.—The total estimated life-cycle 
cost to the Federal Government for the test conducted under sub-
section (a) may not exceed $100,000,000. 
(d) WAIVER OF PROCUREMENT REGULATIONS.—(1) In conducting 
the test under this section, the Administrator, with the approval 
of the Administrator for Federal Procurement Policy, may waive— 
(A) any provision of the Federal Acquisition Regulation 
that is not required by statute; and 
(B) any provision of the Federal Acquisition Regulation 
that is required by a provision of law described in paragraph 
(2), the waiver of which the Administrator determines in writing 
to be necessary to conduct the test. 
(2) The provisions of law referred to in paragraph (1) are 
as follows: 
(A) Subsections (e), (f), and (g) of section 8 of the Small 
Business Act (15 U.S.C. 637). 
(B) Section 18 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 416). 
(e) REPORT.—^Not later than 6 months after completion of the 
test conducted under subsection (a), the Comptroller General shall 
submit to Congress a report for the test setting forth in detail 
the results of the test, including such recommendations as the 
Comptroller General considers appropriate. 
(f) EXPIRATION OF AUTHORITY.—The authority to conduct the 
test under subsection (a) and to award contracts under such test 
shall expire 4 years after the date of the enactment of this Act. 
Contracts entered into before such authority expires shall remain 
in effect, notwithstanding the expiration of the authority to conduct 
the test under this section. 
(g) RULE OF CONSTRUCTION.—Nothing in this section shall be 
construed as authorizing the appropriation or obUgation of funds 
for the test conducted pursuant to subsection (a). 
SEC. 5063. FEDERAL AVIATION ADMINISTRATION ACQUISITION PILOT 
PROGRAM. 
(a) AUTHORITY.—^The Secretary of Transportation may conduct 
a test of alternative and innovative procurement procedures in 
carrying out acquisitions for one of the modernization programs 
under the Airway Capital Investment Plan prepared pursuant to 
section 44501(b) of title 49, United States Code. In conducting 
such test, the Secretary shall consult with the Administrator for 
Federal Procurement Policy. 
(b) PILOT PROGRAM IMPLEMENTATION.—(1) The Secretary of 
Transportation should prescribe policies and procedures for the 
interaction of the program memager and the end user executive 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3357 
responsible for the requirement for the equipment acquired. Such 
poHcies and procedures should include provisions for enabling the 
end user executive to participate in acceptance testing. 
(2) Not later than 45 days after the date of enactment of 
this Act, the Secretary of Transportation shall identify for the 
pilot program quantitative measures and goals for reducing acquisi-
tion management costs. 
(3) The Secretary of Transportation shall estabUsh for the pilot 
program a review process that provides senior acquisition officials 
with reports on the minimum necessary data items required to 
ensure the appropriate expenditure of funds appropriated for the 
program and that— 
(A) contain essential information on program results at 
appropriate intervals, including the criteria to be used in meas-
uring the success of the program; and 
(B) reduce data requirements from the current program 
review reporting requirements. 
(c) SPECIAL AUTHORITIES.—^The authority provided by sub-
section 
(a) 
shall 
include 
authority 
for 
the 
Secretary 
of 
Transportation— 
(1) to apply any amendment or repeal of a provision of 
law made in tins Act to the pilot program before the effective 
date of such amendment or repeal; and 
(2) to apply to a procurement of items other than commer-
ci£j items under such program— 
(A) any authority provided in this Act (or in an amend-
ment made by a provision of this Act) to wcdve a provision 
of law in the case of commercial items, and 
(B) any exception appUcable under this Act (or an 
amendment made by a provision of this Act) in the case 
of commercial items, 
before the effective date of such provision (or amendment) 
to the extent that the Secretary determines necessary to test 
the application of such waiver or exception to procurements 
of items other than commercial items. 
(d) APPLICABILITY.—-Subsection (c) applies with respect to— 
(1) a contract that is awarded or modified after the date 
occurring 45 days after the date of the enactment of this Act; 
and 
(2) a contract that is awarded before such date and is 
to be performed (or may be performed), in whole or in part, 
after such date. 
(e) PROCEDURES AUTHORIZED.—^The test conducted under this 
section may include any of the following procedures: 
(1) Restriction of competitions to sources determined 
capable in a precompetition screening process, provided that 
the screening process affords all interested sources a fair oppor-
tunity to be considered. 
(2) Restriction of competitions to sources of preevaluated 
products, provided that the preevaluation process affords all 
interested sources a fair opportunity to be considered. 
(3) Alternative notice and publication requirements. 
(4) A process in which— 
(A) the competitive process is initiated by publication 
in the Commerce Business Daily, or by dissemination 
through FACNET, of a notice that— 
108 STAT. 3358 
PUBLIC LAW 103-355—OCT. 13, 1994 
(i) contains a S3niopsis of the functional and 
performance needs of the executive agency conducting 
the test, and, for purposes of guidance only, other 
specifications; and 
(ii) invites any interested source to submit informa-
tion or samples showing the suitability of its product 
for meeting those needs, together with a price quota-
tion, or, if appropriate, showing the source's technical 
capability, past performance, product supportability, 
or other qualifications (including, as appropriate, 
information regarding rates and other cost-related fac-
tors); 
(B) contracting officials develop a request for proposals 
(induing appropriate specifications and evaluation cri-
teria) after reviewing the submissions of interested sources 
and, if the officials determine necessary, after consultation 
with those sources; and 
(C) a contract is awarded after a streamlined competi-
tion that is limited to all sources that timely provided 
product information in response to the notice or, if appro-
priate, to those sources determined most capable based 
on the qualification-based factors included in an invitation 
to submit information pursuant to subparagraph (A). 
if) WAIVER OF PROCUREMENT REGULATIONS.—(1) In conducting 
the test under this section, the Secretary of Transportation, with 
the approval of the Administrator for Federal Procurement Policy, 
may waive— 
(A) any provision of the Federal Acquisition Regulation 
that is not required by statute; and 
(B) any provision of the Federal Acquisition Regulation 
that is required by a provision of law described in paragraph 
(2), the waiver of which the Administrator determines in writing 
to be necessary to test procedures authorized by subsection 
(e). 
(2) The provisions of law referred to in paragraph (1) are 
as follows: 
(A) Subsections (e), (f), and (g) of section 8 of the Small 
Business Act (15 U.S.C. 637). 
(B) The following provisions of the Federal Property and 
Administrative Services Act of 1949: 
(i) Section 303 (41 U.S.C. 253). 
(ii) Section 303A (41 U.S.C. 253a). 
(iii) Section 303B (41 U.S.C. 253b). 
(iv) Section 303C (41 U.S.C. 253c). 
(C) The following provisions of the Office of Federal 
Procurement Policy Act: 
(i) Section 4(6) (41 U.S.C. 403(6)). 
(ii) Section 18 (41 U.S.C. 416). 
(g) DEFINITION.—In this section, the term "commercial item" 
has the meaning provided that term in section 4(12) of the Office 
of Federal Procurement Policy Act. 
(h) EXPIRATION OF AUTHORITY.—^The authority to conduct the 
test under subsection (a) and to award contracts under such test 
shall expire 4 years after the date of the enactment of this Act. 
Contracts entered into before such authority expires shall remain 
in effect, notwithstanding the expiration of the authority to conduct 
the test under this section. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3359 
(i) RULE OF CONSTRUCTION.—^Nothing in this section shall be 
construed as authorizing the appropriation or obligation of funds 
for the test conducted pursuant to subsection (a). 
SEC. 5064. DEPARTMENT OF DEFENSE ACQUISITION PILOT PROGRAMS. 10 USC 2430 
(a) IN GENERAL.—^The Secretary of Defense is authorized to 
designate the following defense acquisition programs for participa-
tion in the defense acquisition pilot program authorized by section 
809 of the National Defense Authorization Act for Fiscal Year 
1991 (10 U.S.C. 2430 note): 
(1) 
FIRE 
SUPPORT COMBINED ARMS TACTICAL TRAINER 
(FSCATT).—^The Fire Support Combined Arms Tactical Trainer 
program with respect to all contracts directly related to the 
procurement of a training simulation system (including related 
nardware, software, and subsystems) to perform collective train-
ing of field artillery gunnery team components, with develop-
ment of software as required to generate the training exercises 
and component interfaces. 
(2) JOINT DIRECT ATTACK MUNITION (JDAM I).—The Joint 
Direct Attack Munition program with respect to all contracts 
directly related to the development and procurement of a strap-
on guidance kit, using an inertially guided, Global Positioning 
System updated guidance kit to enhance the delivery accuraQr 
of 1000-pound and 2000-pound bombs in inventory. 
(3) JOINT PRIMARY AIRCRAFT TRAINING SYSTEM (JPATS).— 
The Joint Primary Aircrsift Training System (JPATS) with 
respect to all contracts directly related to the acquisition of 
a new primary trainer aircraft to fulfill Air Force and Navy 
joint undergraduate aviation training requirements, and an 
associated ground-based training system consisting of air crew 
training devices (simulators), courseware, a Training Manage-
ment System, and contractor support for the life of the system. 
(4) COMMERCIAL-DERIVATIVE AIRCRAFT (CDA).— 
(A) All contracts directly related to the acquisition 
or upgrading of commercial-derivative aircraft for use in 
meeting airlift and tanker requirements and the air vehicle 
component for airborne warning and control systems. 
(B) For purposes of this paragraph, the term "commer-
cial-derivative aircraft" means any of the following: 
(i) Any aircraft (including spare parts, support 
services, support equipment, technical manuals, and 
data related thereto) that is or was of a type customar-
ily used in the course of normal business operations 
~ 
for other than Federal Government purposes, that has 
been issued a type certificate by the Administrator 
of the Federal Aviation Administration, and that has 
been sold or leased for use in the commercial market-
place or that has been ofiTered for sale or lease for 
use in the commercial marketplace. 
(ii) Any aircraft that, but for modifications of a 
t3rpe customarily available in the commercial market-
place, or minor modifications made to meet Federal 
Grovemment reqmrements, would satisfy or would have 
satisfied the criteria in subclause (I). 
(iii) For purposes of a potential complement or 
alternative 
to 
the 
C-17 
program, 
any 
nondevelopmental airlift aircraft, other than the C-
108 STAT. 3360 
PUBLIC LAW 103-355—OCT. 13, 1994 
17 or any aircraft derived from the C-17, shall be 
considered a commercial-derivative aircraft. 
(5) COMMERCIAL-DERIVATIVE ENGINE (CDE).—The commer-
' 
cial derivative engine pro-am with respect to all contracts 
directly related to the acquisition of (A) commercial derivative 
engines (including spare engines and upgrades), logistics sup-
port equipment, technical orders, management data, and spare 
parts, and (B) commercially derived engines for use in support-
ing the purchase of commercial-derivative aircraft for use in 
airlift and tanker requirements (including engine replacement 
and upgrades) and the air vehicle component for airborne warn-
ing and control systems. For purposes of a potential complement 
or alternative to the C-17 program, any nondevelopmental 
airlift aircraft engine shall be considered a conmiercial-deriva-
tive engine. 
(b) PILOT PROGRAM IMPLEMENTATION.—(1) The text of section 
833 of the National Defense Authorization Act for Fiscal Year 
10 use 2430 
1994 (Public Law 103-160; 107 Stat. 1716) is amended to read 
"<**«• 
as follows: 
"(a) MISSION-ORIENTED PROGRAM MANAGEMENT.—In the exer-
cise of the authority provided in section 809 of the National Defense 
. Authorization Act for Fiscal Year 1991 (10 U.S.C. 2430 note), the 
Secretary of Defense should propose for one or more of the defense 
acquisition programs covered by the Defense Acquisition Pilot Pro-
gram to utiUze the concept of mission-oriented program manage-
ment. 
"(b) POLICIES AND PROCEDURES.—In the case of each defense 
acquisition program covered by the Defense Acquisition Pilot Pro-
. gram, the Secretary of Defense should prescribe policies and proce-
dures for the interaction of the program manager and the com-
. mander of the operational command (or a representative) respon-
sible for the requirement for the equipment acquired, and for the 
interaction with the commanders of the unified and specified 
combatant commands. Such policies and procedures should include 
provisions for enabling the user commands to participate in accept-
ance testing.". 
(2) The text of section 837 of the National Defense Authorization 
10 use 2430 
Act for Fiscal Year 1994 (PubHc Law 103-160; 107 Stat. 1718) 
"°*®- 
is amended to read as follows: 
"The Secretary of Defense shall take any additional actions 
that the Secretary considers necessary to waive regulations not 
required by statute that affect the efficiency of the contracting 
process within the Department of Defense. Such actions shall 
mclude, in the Secretary s discretion, developing methods to stream-
Une the procurement process, streamlining the period for entering 
into contracts, and defining alternative techniques to reduce reH-
ance on military specifications and standards, in contracts for the 
defense acquisition programs participating in the Defense Acquisi-
tion Pilot Program.". 
(3) The text of section 838 of the National Defense Authorization 
10 use 2430 
Act for Fiscal Year 1994 (PubHc Law 103-160; 107 Stet. 1718) 
^°*^' 
is amended to read as follows: 
"For at least one participating defense acquisition program 
for which a determination is made to make payments for work 
in progress under the authority of section 2307 of title 10, United 
States Code, the Secretary of Defense should define payment mile-
stones on the basis of quantitative measures of results.". 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3361 
(4) Not later than 45 days after the date of the enactment 
of the Federal Acquisition Streamlining Act of 1994, the Secretary 
of Defense shall identify for each defense acquisition program 
participating in the pilot program quantitative measures and goals 
for reducing acquisition management costs. 
(5) For each defense acquisition program participating in the 
pilot program, the Secretary of Defense shall establish a review 
process that provides senior acquisition ofiicials with reports on 
the minimum necessary data items required to ensure the appro-
priate expenditure of funds appropriated for the program and that— 
(A) contain essential information on program results at 
appropriate intervals, including the criteria to be used in meas-
uring the success of the program; and 
(B) reduce data requirements from the current program 
review reporting requirements. 
(c) SPECIAL AUTHORITY.—^The authority delegated imder sub-
section (a) may include authority for the Secretary of Defense— 
(1) to apply any amendment or repeal of a provision of 
law made in this Act to the pilot programs before the effective 
date of such amendment or repeal; and 
(2) to apply to a procurement of items other than commer-
cial items under such programs— 
(A) any authority provided in this Act (or in an amend-
ment made by a provision of this Act) to waive a provision 
of law in the case of conmiercial items, and 
(B) any exception applicable under this Act (or an 
amendment made by a provision of this Act) in the case 
of commercial items, 
before the effective date of such provision (or amendment) 
to the extent that the Secretary determines necessary to test 
the application of such waiver or exception to. procurements 
of items other than commercial items. 
(d) APPLICABILITY.—(1) Subsection (c) apphes with respect to— 
(A) a contract that is awarded or modified during the 
period described in paragraph (2); and 
(B) a contract that is awarded before the beginning of 
such period and is to be performed (or may be performed), 
in whole or in part, during such period. 
(2) The period referred to in paragraph (1) is the period that 
begins 45 days after the date of the enactment of this Act and 
ends on September 30,1998. 
(e) RULE OF CONSTRUCTION.—Nothing in this section shall be 
construed as authorizing the appropriation or obligation of funds 
for the programs designated for participation in the defense acquisi-
tion pilot program under the authority of subsection (a). 
Subtitle D—^Miscellaneous 
SEC. 6091. VENDOR AND EMPLOYEE EXCELLENCE AWARDS. 
Section 6(d) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 405(d)) is amended— 
(1) by striking out "and" at the end of paragraph (7); 
(2) by redesignating paragraph (8) as paragraph (12); and 
(3) by adding at tne end the following new paragraphs: 
"(8) providing for a Government-wide award to recognize 
and promote vendor excellence; 
108 STAT. 3362 
PUBLIC LAW 103-355—OCT. 13,1994 
"(9) providing for a Grovemment-wide award to recognize 
and promote excellence in officers and employees of the Federal 
Government serving in procurement-related positions;". 
SEC. 5092. WAITING PERIOD FOR SIGNIFICANT CHANGES PROPOSED 
FOR ACQUISITION REGULATIONS. 
(a) INCREASED PERIOD.—Section 22(a) of the Office of Federal 
Procurement PoUcy Act (41 U.S.C. 418b) is amended— 
(1) by striking out "30 days" and inserting in Ueu thereof 
"60 days"; and 
(2) by adding at the end the following: "Notwithstanding 
the preceding sentence, such a policy, regulation, procedure, 
or form may take effect earlier than 60 days after the publica-
tion date when there are compelling circumstances for the 
earUer effective date, but in no event may that effective date 
be less than 30 days after the publication date.". 
(b) TECHNICAL AMENDMENT.—Section 22(d) of such Act is 
amended by designating the second sentence as paragraph (3). 
SEC. 5093. SENSE OF CONGRESS ON NEGOTIATED RULEMAKING. 
(a) FINDINGS.—The Congress finds the following: 
(1) The use of negotiated rulemaking or similar policy 
discussion group techniques can be an appropriate tool for— 
(A) fostering effective implementation of, smd compli-
ance with, laws and regulations; 
(B) avoiding Utigation; and 
(C) achieving more productive and equitable relation-
ships between the Federal CJovemment and the regulated 
segments of the private sector. 
(2) The use of negotiated rulemaking or similar techni(][ue8 
in Federal procurement regulations could be appropriate given 
the extreme complexity and intricate interactions between 
buyer and seller in Federal procurements. 
(b) SENSE OF CONGRESS.—It is the sense of Confess that, 
in prescribing acquisition regulations, the Federal Acquisition Regu-
latory Council should consider using negotiated rulemaking proce-
dures in appropriate circumstances in accordance with sections 
561 through 570 of title 5, United States Code, or similar techniques 
intended to achieve the benefits described in subsection (a)(1). 
TITLE VI—OTHER PROCUREMENT-
RELATED MATTERS 
SEC. 600L POST-EMPLOYMENT RULES. 
(a) REPEAL.—(1) Section 801 of title 37, United States Code, 
is repealed. 
(2) The table of sections for chapter 15 of title 37, United 
States Code, is amended by striking out the item relating to section 
801. 
18 use 281 note. 
(b) SUSPENSION OF EFFECT OF CERTAIN PROVISION OF LAW.— 
Section 281 of title 18, United States Code, shall not be effective 
during the period beginning on the date of the enactment of this 
Act and ending at the end of December 31, 1996. Such section 
shall not apply after that date to any relationship otherwise punish-
able under such section that existed during such period. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3363 
SEC. 
6002. CONTRACTING FUNCTIONS PERFORMED BY FEDERAL 
PERSONNEL. 
(a) AMENDMENT OF O F P P ACT.—The Office of Federal Procure-
ment Policy Act, as amended by section 1092, is further amended 
by inserting after section 22 the following new section 23: 
"SEC. 23. CONTRACTING FUNCTIONS PERFORMED BY FEDERAL 41USC 419. 
PERSONNEL. 
"(a) LIMITATION ON PAYMENT FOR ADVISORY AND ASSISTANCE 
SERVICES.—(1) No person who is not a person described in sub-
section (b) may be paid by an executive agency for services to 
conduct evaluations or analyses of any aspect of a proposal submit-
ted for an acquisition unless personnel described in subsection 
(b) with adequate training and capabilities to perform such evalua-
tions and analyses are not readily available within the agency 
or another Federal agency, as determined in accordance with stand-
ards and procedures prescribed in the Federal Acquisition Regula-
tion. 
"(2) In the administration of this subsection, the head of each 
executive agency shall determine in accordance with the standards 
and procedures set forth in the Federal Acquisition Regulation 
whether— 
"(A) a sufficient number of personnel described in sub-
section (b) within the agency or another Federal agency are 
readily available to perform a particular eveduation or analysis 
for the head of the executive agency making the determination; 
and 
"(B) the readily available personnel have the training and 
capabilities necessary to perform the evaluation or analysis. 
"(b) COVERED PERSONNEL.—For purposes of subsection (a), the 
personnel described in this subsection are as follows: 
"(1) An employee, as defined in section 2105 of title 5, 
United States Code. 
"(2) A member of the Armed Forces of the United States. 
"(3) A person assigned to a Federal agency pursuant to 
subchapter VI of chapter 33 of title 5, United States Code. 
"(c) RULE OF CONSTRUCTION.—Nothing in this section is 
intended to affect the relationship between the Federal Government 
and a federally funded research and development center.". 
(b) REQUIREMENT FOR GUIDANCE AND REGULATIONS.—^The Fed- 4i use 4i9 note, 
eral Acquisition Regulatory Council established by section 25(a) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 421(a)) 
shall— 
(1) review part 37 of title 48 of the Code of Federal Regula-
tions as it relates to the use of advisory and assistance services; 
and 
(2) 
provide 
guidance 
and 
promulgate 
regulations 
regarding— 
(A) what actions Federal agencies are required to take 
to determine whether expertise is readily available within 
the Federal Government before contracting for advisory 
and technical services to conduct acquisitions; and 
(B) the manner in which personnel with expertise may 
be shared with agencies needing expertise for such acquisi-
tions. 
108 STAT. 3364 
PUBLIC LAW 103-355—OCT. 13, 1994 
SEC. 
6
0
0
3
. REPEAL OF EXECUTED REQUIREMENT FOR STUDY AND 
REPORT. 
Section 17 of the Office of Federal Procurement Policy Act 
(41 U.S.C. 415) is repealed. 
SEC. 6004. INTERESTS OF MEMBERS OF CONGRESS. 
Section 3741 of the Revised Statutes (41 U.S.C. 22) is amended 
to read as follows: 
"No member of Congress hall be admitted to any share or 
part of any contract or agreement made, entered into, or accepted 
by or on behalf of the United States, or to any benefit to arise 
thereupon.". 
SEC. 6005. WHISTLEBLOWER PROTECTIONS FOR CONTRACTOR EM-
PLOYEES OF DEPARTMENT OF DEFENSE, COAST GUARD, 
AND NATIONAL AERONAUTICS AND SPACE ADMINISTRA-
TION. 
(a) WHISTLEBLOWER PROTECTIONS FOR CONTRACTOR EMPLOY-
EES.—{Section 2409 of title 10, United States Code, is amended 
to read as follows: 
**§2409. Contractor employees: protection from reprisal for 
disclosure of certain information 
"(a) PROHIBITION OF REPRISALS.—^An employee of a contractor 
may not be discharged, demoted, or otherwise discriminated against 
as a reprisal for disclosing to a Member of Congress or an authorized 
official of an agency or the Department of Justice information 
relating to a substantial violation of law related to a contract 
(including the competition for or negotiation of a contract). 
"(b) INVESTIGATION OF CoMPLAiNTS.^A person who believes 
that the person has been subjected to a reprisal prohibited by 
subsection (a) may submit a complaint to the Inspector General 
of an agency. Unless the Inspector CJeneral determines that the 
complaint is frivolous, the Inspector General shall investigate the 
complaint and, upon completion of such investigation, submit a 
report c f the findings of the investigation to the person, the contrac-
tor concorned, and the head of the agency. 
"(c) REMEDY AND ENFORCEMENT AUTHORITY.—(1) If the head 
of the agency determines that a contractor has subjected a person 
to a reprissd prohibited by subsection (a), the head of the agency 
may take one or more of the following actions: 
"(A) Order the contractor to take affirmative action to 
abate the reprisal. 
"(B) Order the contractor to reinstate the person to the 
position that the person held before the reprisal, together with 
the compensation (including back pay), employment benefits, 
and other terms and conditions of employment that would 
apply to the person in that position if the reprisal had not 
been taken. 
"(C) Order the contractor to pay the complaineint an amount 
equal to the aggregate amount of all costs and expenses (includ-
ing attorneys' fees and expert witnesses' fees) that were reason-
ably incurred by the complainant for, or in connection with, 
bringing the complaint regarding the reprisal, as determined 
by the head of the agency. 
"(2) Whenever a person fails to comply with an order issued 
under paragraph (1), the head of the agency shall file an action 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3365 
for enforcement of such order in the United States district court 
for a district in which the reprisal was found to have occurred. 
In any action brought under this paragraph, the court may grant 
appropriate reUef, including injunctive relief and compensatory and 
exemplary damages. 
"(3) Any person adversely affected or aggrieved by an order 
issued under paragraph (1) may obtain review of the order's 
conformance with this subsection, and any regulations issued to 
carry out this section, in the United States court of appeals for 
a circuit in which the reprisal is alleged in the order to have 
occurred. No petition seeking such review may be filed more than 
60 days after issuance of the order by the head of the agency. 
Review shall conform to chapter 7 of title 5. 
"(d) CONSTRUCTION.—^Nothing in this section may be construed 
to authorize the discharge of, demotion of, or discrimination against 
an employee for a disclosure other than a disclosure protected 
by subsection (a) or to modify or derogate from a right or remedy 
otherwise available to the employee. 
"(e) DEFINITIONS.—In this section: 
"(1) The term 'agency* means an agency named in section 
2303 of this title. 
"(2) The term 'head of an agency* has the meaning provided 
by section 2302(1) of this title.". 
"(3) The term 'contract' means a contract awarded by the 
head of an agency. 
"(4) The term 'contractor* means a person awarded a con-
tract with an agency. 
"(5) The term 'Inspector General' means an Inspector Gen-
eral appointed under the Inspector Greneral Act of 1978.". 
(b) RELATED L A W . ^ 1 ) Section 2409a of title 10, United States 
Code, is repealed. 
(2) The table of sections at the beginning of chapter 141 of 
such title is amended by striking out the item relating to section 
2409a. 
SEC. 6006. WHISTLEBLOWER PROTECTIONS FOR CONTRACTOR EMP-
LOYEES OF CIVILIAN AGENCIES. 
Title III of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 251 et seq.) is amended by adding at 
the end the following new section: 
"SEC. 315. CONTRACTOR EMPLOYEES: PROTECTION FROM REPRISAL 
41 USC 265. 
FOR DISCLOSURE OF CERTAIN INFORMATION. 
"(a) PROHIBITION OF REPRISALS.—An employee of a contractor 
may not be discharged, demoted, or otherwise discriminated against 
as a reprisal for disclosing to a Member of Congress or an authorized 
official of an executive agency or the Department of Justice informa-
tion relating to a substantial violation of law related to a contract 
(including the competition for or negotiation of a contract). 
"(b) INVESTIGATION OF COMPLAINTS.—A person who believes 
that the person has been subjected to a reprisal prohibited by 
subsection (a) may submit a complaint to the Inspector General 
of the executive agency. Unless the Inspector General determines 
that the complaint is frivolous, the Inspector General shall inves-
tigate the complsdnt and, upon completion of such investigation, 
submit a report of the findings of the investigation to the person, 
the contractor concerned, and the head of the agency. In the case 
of an executive agency that does not have an inspector general. 
108 STAT. 3366 
PUBLIC LAW 103-355—OCT. 13, 1994 
the duties of the inspector general under this section shall he 
performed by an official designated by the head of the executive 
agency. 
"(c) REMEDY AND ENFORCEMENT AUTHORITY.—(1) If the head 
of an executive agency determines that a contractor has subjected 
a person to a reprisal prohibited by subsection (a), the head of 
the executive agency may take one or more of the following actions: 
"(A) Order the contractor to take affirmative action to 
abate the reprisal. 
"(B) Order the contractor to reinstate the person to the 
position that the person held before the reprisal, together with 
the compensation (including back pay), employment benefits, 
and other terms and conditions of employment that would 
apply to the person in that position if the reprisal had not 
been taken. 
"(C) Order the contractor to pay the complainant an amount 
equal to the aggregate amount of all costs and expenses (includ-
ing attorneys' fees and expert witnesses' fees) that were reason-
ably incurred by the complsdnant for, or in connection with, 
bringing the complaint regarding the reprisal, as determined 
by the head of the executive agency. 
"(2) Whenever a person fails to comply with an order issued 
under paragraph (1), the head of the executive agency shall file 
an action for enforcement of such order in the United States district 
court for a district in which the reprisal was foimd to have occurred. 
In any action brought under this paragraph, the court may grant 
appropriate relief, including injimctive relief and compensatory and 
exemplary damages. 
"(3) Any person adversely affected or aggrieved by an order 
issued under paragraph (1) may obtain review of the ordei^s 
conformance with this subsection, and any regulations issued to 
carry out this section, in the United States court of appeals for 
a circuit in which the reprisal is alleged in the order to have 
occurred. No petition seeking such review may be filed more than 
60 days after issuance of the order by the head of the agency. 
Review shall conform to chapter 7 of title 5, United States Code. 
"(d) CONSTRUCTION.—^Nothing in this section may be construed 
to authorize the discharge of, demotion of, or discrimination against 
an employee for a disclosure other than a disclosure protected 
by subsection (a) or to modify or derogate from a right or remedy 
otherwise available to the employee. 
"(e) DEFINITIONS.—In this section: 
"(1) The term 'contract' means a contract awarded by the 
head of an executive agency. 
"(2) The term 'contractor' means a person awarded a con-
tract with an executive agency. 
"(3) The term 'Inspector General' means an Inspector Gren-
eral appointed under the Inspector General Act of 1978.". 
SEC. 6007. COMPTROLLER GENERAL REVIEW OF THE PROVISION OF 
LEGAL ADVICE FOR INSPECTORS GENERAL. 
(a) REVIEW AND REPORT REQUIRED.—^Not later than March 
1,1995, the Comptroller General of the United States shall— 
(1) conduct a review of the independence of the legal serv-
ices being provided to Inspectors (Jeneral appointed under the 
Inspector (jeneral Act of 1978; and 
(2) submit to Congress a report on the results of the review. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3367 
(b) MATTERS REQUIRED FOR REPORT.—The report shall include 
the following matters: 
(1) With respect to each department or agency of the Fed-
eral (Government that has an inspector Greneral appointed in 
accordance with the Inspector Greneral Act of 1978 whose only 
or principal source of legal advice is the general counsel or 
other chief legal officer of the department or agency, an assess-
ment of the extent of the independence of the legal advisers 
providing advice to the Inspector Greneral. 
(2) A comparison of the findings under the assessment 
referred to in paragraph (1) with findings on the same matters 
with respect to each Inspector Greneral whose source of legal 
advice is legal coimsel accountable solely to the Inspector Gren-
eral. 
SEC. 6008. COST SAVINGS FOR OFFICIAL TRAVEL. 
5 USC 5702 note. 
(a) GUIDELINES.—^The Administrator of the Greneral Services 
Administration shall issue guidelines to ensure that agencies pro-
mote, encourage, and facilitate the use of frequent traveler programs 
offered by airlines, hotels, and car rented vendors by Federsd employ-
ees who engage in official air travel, for the purpose of reaUzing 
to the maximum extent practicable cost savings for official travel. 
(b) REQUIREMENT.—^Any awards granted under such a frequent 
traveler program accrued through official travel shall be used only 
for official travel. 
(c) REPORT.—^Not later than one year after the date of the 
enactment of this Act, the Administrator shall report to Congress 
on efforts to promote the use of frequent traveler programs by 
Federal employees. 
SEC. 6009. PROMPT RESOLUTION OF AUDIT RECOMMENDATIONS. 
5 USC app. 5 
Federal agencies shall resolve or take corrective action on all 
Office of Inspector Greneral audit report findings within a maximum 
of six months after their issuance, or, in the case of audits performed 
by non-Federal auditors, six months after receipt of tne report 
by the Federal Grovemment. 
TITLE VII—SMALL BUSINESS AND 
SOCIOECONOMIC LAWS 
Subtitle A—Small Business Laws 
SEC. 7101. REPEAL OF CERTAIN REQUIREMENTS. 
(a) SET-ASIDE PRIORITY.—Section 15 of the Small Business 
Act (15 U.S.C. 644) is amended by striking out subsections (e) 
and(f). 
(b) CERTIFICATE OF COMPETENCE.—Section 804 of Public Law 
102-^84 (106 Stat. 2447; 10 U.S.C. 2305 note) is repealed. 
SEC. 7102. CONTRACTING PROGRAM FOR CERTAIN SMALL BUSINESS 
15 USC 644 note. 
CONCERNS. 
(a) PROCUREMENT PROCEDURES AUTHORIZED.—(1) To faciHtate 
the attainment of a goal for the participation of small business 
concerns owned and controlled by socially and economically dis-
advantaged individu£ds that is established for a Federal agency 
108 STAT. 3368 
PUBLIC LAW 103-355—OCT. 13, 1994 
pursuant to section 15(g)(1) of the Small Business Act (15 U.S.C. 
644(g)(1)), the head of the agency may enter into contracts using— 
(A) less than full and open competition by restricting the 
competition for such awards to small business concerns owned 
and controlled by socially and economically disadvantaged 
individuals described in subsection (d)(3)(C) of section 8 of 
the Small Business Act (15 U.S.C. 637); and 
(B) a price evaluation preference not in excess of 10 percent 
when evaluating an offer received from such a small business 
concern as the result of an unrestricted solicitation. 
(2) Paragraph (1) does not apply to the Department of Defense, 
the Coast Guard, and the National Aeronautics and Space Adminis-
tration. 
(b) 
IMPLEMENTATION 
THROUGH THE FEDERAL 
ACQUISITION 
REGULATION.— 
(1) IN GENERAL.—^The Federal Acquisition Regulation shall 
be revised to provide for uniform implementation of the author-
ity provided in subsection (a). 
(2) MATTERS TO BE ADDRESSED.—The revisions of the Fed-
eral Acquisition Regulation made pursuant to paragraph (1) 
shall include— 
(A) conditions for the use of advance pajnnents; 
(B) provisions for contract payment terms that provide 
for— 
(i) accelerated payment for work performed during 
the period for contract performance; and 
(ii) full payment for work performed; 
(C) guidance on how contracting officers may use, in 
solicitations for various classes of products or services, 
a price evaluation preference pursuant to subsection 
(a)(1)(B), to provide a reasonable advantage to small busi-
ness concerns owned and controlled by socially and 
economically disadvantaged individuals without effectively 
eliminating any participation of other small business con-
cerns; and 
(D)(i) procedures for a person to request the head of 
a Federal agency to determine whether the use of competi-
tions restricted to small business concerns owned and con-
trolled by socially and economically disadvantaged individ-
uals at a contracting activity of such agency has caused 
a particular industry category to bear a disproportionate 
share of the contracts awarded to attain the goal estab-
lished for that contracting activity; and 
(ii) guidance for limiting the use of such restricted 
competitions in the case of any contracting activity and 
class of contracts determined in accordance with such 
procedures to have caused a particular industry category 
to bear a disproportionate share of the contracts awarded 
to attain the goal established for that contracting activity. 
(c) TERMINATION.—This section shall cease to be effective at 
the end of September 30, 2000. 
SBC. 7103. EXTENSION OF TEST PROGRAM FOR NEGOTIATION OF COM-
PREHENSIVE 
SMALL 
BUSINESS 
SUBCONTRACTING 
PLANS. 
Section 834(e) of the National Defense Authorization Act for 
Fiscal Years 1990 and 1991 (Public Law 101-189; 15 U.S.C. 637 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3369 
note) is amended by striking out "September 30, 1994." in the 
second sentence and inserting in lieu thereof "September 30, 1998.". 
SEC. 7104. SMALL BUSINESS PROCUREMENT ADVISORY COUNCIL. 
15 USC 644 note. 
(a) ESTABLISHMENT.—^There is hereby estabUshed an inter-
agency council to be known as the "Small Business Procurement 
Advisory Council" (hereinafter in this section referred to as the 
"Council"). 
(b) DUTIES.—The duties of the Council are— 
(1) to develop positions on proposed procurement regula-
tions affecting the smedl business community; and 
(2) to submit comments reflecting such positions to appro-
priate regulatory authorities. 
(c) MEMBERSHIP.—^The Council shall be composed of the follow-
ing members: 
(1) The Administrator of the Small Business Administra-
tion (or the designee of the Administrator). 
(2) The Director of the Minority Business Development 
Agency. 
(3) The head of each Office of Smedl and Disadvantaged 
Business Utilization (established under section 15(k) of the 
Small Business Act (15 U.S.C. 644(k)) in each Federal agency 
having procurement powers. 
(d) CHAIRMAN.—^The Council shall be chaired by the Adminis-
trator of the Small Business Administration. 
(e) MEETINGS.—^The Council shall meet at the call of the chair-
man as necessary to consider proposed procurement regulations 
affecting the small business community. 
(f) 
CONSIDERATION 
OF COUNCIL 
COMMENTS.—The Federal 
Acquisition Regulatory Coimcil and other appropriate regulatory 
authorities shall consider comments submitted in a timely manner 
pursuant to subsection (bX2). 
SEC. 7106. EXTENSION OF DEFENSE CONTRACT GOAL TO COAST 
GUARD AND NATIONAL AERONAUTICS AND SPACE 
ADMINISTRATION. 
Section 2323 of title 10, United States Code, is amended to 
read as follows: 
^§2323. Contract goal for small disadvantaged businesses 
and certain institutions of higher education 
"(a) GOAL.—(1) 
Except as provided in subsection (d), a goal 
of 5 percent of the amount described in subsection (b) shall be 
the objective of the Department of Defense, the Coast Guard, and 
the National Aeronautics and Space Administration in each fiscal 
year for the total combiiaed amount obligated for contracts and 
subcontracts entered into ^ivith— 
"(A) small business concerns, including mass media and 
advertising firms, owned and controlled by socially and 
economically disadvantaged individuals (as such term is used 
in section 8(d) of the Small Business Act (15 U.S.C. 637(d)) 
and regulations issued under that section), the majority of 
the earnings of which directly accrue to such individuals; 
"(B) historically Black colleges and universities, including 
any nonprofit research institution that was an integral part 
of such a college or university before November 14, 1986; and 
"(C) minority institutions (as defined in section 1046(3) 
of the Higher Education Act of 1966 (20 U.S.C. 1135d-^(3)), 
108 STAT. 3370 
PUBLIC LAW 103-355—OCT. 13, 1994 
which, for the purposes of this section, shall include Hispanic-
serving institutions (as defined in section 316(b)(1) of such 
Act (20 U.S.C. 1059c(b)(l)). 
"(2) The head of the agency shall establish a specific goal 
within the overall 5 percent goal for the award of prime contracts 
and subcontracts to historically Black colleges and universities and 
minority institutions in order to increase the participation of such 
colleges and universities in the program provided for by this section. 
"(3) The Federal Acquisition Regulation (issued under section 
25(c) of the Office of Federal Procurement Pohcy Act (41 U.S.C. 
421(c)) shall provide procedures or guideUnes for contracting officers 
to set goals which agency prime contractors that are required to 
/ 
submit subcontracting plans under section 8(d)(4)(B) of the Small 
^ 
Business Act (15 U.S.C. 637(d)(4)(B)) in furtherance of the agency's 
program to meet the 5 percent goal specified in paragraph (1) 
should meet in awarding subcontracts, including subcontracts to 
minority-owned media, to entities described in that paragraph. 
"(b) AMOUNT.—^With respect to the Department of Defense, the 
requirements of subsection (a) for any fiscal year apply to the 
combined total of the following amounts: 
"(A) Funds obligated for contracts entered into with the 
: Department of Defense for such fiscal year for procurement. 
"(B) Funds obligated for contracts entered into with the 
Department of Defense for such fiscal year for research, devel-
opment, test, and evaluation. 
"(C) Funds obligated for contracts entered into with the 
Department of Defense for such fiscal year for military construc-
tion. 
"(D) Funds obligated for contracts entered into with the 
Department of Defense for operation and maintenance. 
"(2) With respect to the Coast Guard, the requirements of 
subsection (a) for any fiscal year apply to the total value of all 
prime contract and subcontract awards entered into by the Coast 
Guard for such fiscal year. 
"(3) With respect to the National Aeronautics and Space 
Administration, the requirements of subsection (a) for any fiscal 
year apply to the total value of all prime contract and subcontract 
awards entered into by the National Aeronautics and Space 
Administration for such fiscal year. 
"(c) TYPES OF ASSISTANCE.—(1) To attain the goal specified 
in subsection (a)(1), the head of an agency shall provide technical 
assistance to the entities referred to in that subsection and, in 
the case of historically Black colleges and imiversities and minority 
institutions, shall also provide infirastructure assistance. 
"(2) Technical assistance provided under this section shall 
include information about the program, advice . about agency 
procurement procedures, instruction in preparation of proposals, 
and other such assistance as the head of the agency considers 
appropriate. If the resources of the agency are inadequate to provide 
such assistance, the head of the agency may enter into contracts 
with minority private sector entities with experience and expertise 
in the design, development, and delivery of technical assistance 
services to eligible individuals, business firms and institutions, 
acquisition agencies, and prime contractors. Agency contracts with 
such entities shall be awarded annually, based upon, among other 
things, the number of minority small business concerns, historically 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3371 
Black colleges and universities, and minority institutions that each 
such entity brings into the program. 
"(3) Infrastructure assistance provided by the Department of 
Defense under this section to historically Black colleges and univer-
sities and to minority institutions may include programs to do 
the following: 
"(A) Establish and enhance undergraduate, graduate, and 
doctoral programs in scientific disciplines critical to the national 
security functions of the Department of Defense. 
"(B) Make Department of Defense personnel available to 
advise and assist faculty at such colleges and universities in 
the performance of defense research and in scientific disciplines 
critical to the national security functions of the Department 
of Defense. 
"(C) Establish partnerships between defense laboratories 
and historically Black colleges and imiversities and minority 
institutions for the purpose of training students in scientific 
disciplines critical to the national security functions of the 
Department of Defense. 
"(D) Award scholarships, fellowships, and the establish-
ment of cooperative work-education programs in scientific dis-
ciplines critical to the national security functions of the Depart-
ment of Defense. 
"(E) Attract and retain faculty involved in scientific dis-
ciplines critical to the national security functions of the Depart-
ment of Defense. 
"(F) Equip and renovate laboratories for the performance 
of defense research, 
"(G) Expand and equip Reserve Officer Training Corps 
activities devoted to scientific disciplines critical to the national 
security fimctions of the Department of Defense. 
"(H) Provide other assistance as the Secretary determines 
appropriate to strengthen scientific disciplines critical to the 
national security functions of the Department of Defense or 
the college infrastructure to support the performance of defense 
research. 
"(4) The head of the agency shall, to the maximum extent 
practical, carry out programs under this section at colleges, univer-
sities, and institutions that agree to bear a substantial portion 
of the cost associated with the programs. 
"(d) APPLICABILITY.—Subsection (a) does not apply to the 
Department of Defense— 
"(1) to the extent to which the Secretary of Defense deter-
mines that compelling national security considerations require 
otherwise; and 
"(2) if the Secretary notifies Congress of such determination 
and the reasons for such determination. 
"(e) COMPETITIVE PROCEDURES AND ADVANCE PAYMENTS.—To 
attain the goal of subsection (a): 
"(1)(A) The head of the agency shall— 
"(i) ensure that substantial progress is made in increas-
ing awards of agency contracts to entities described in 
subsection (a)(1); 
"(ii) exercise his utmost authority, resourcefulness, £uid 
dihgence; 
"(iii) in the case of the Department of Defense, actively 
monitor and assess the progress of the military depart-
79-194 O—95—24 : QL 3 Part 4 
108 STAT. 3372 
PUBLIC LAW 103-355—OCT. 13, 1994 
ments, Defense Agencies, and prime contractors of the 
Department of Defense in attaining such goal; and 
"(iv) in the case of the Coast Guard and the National 
Aeronautics and Space Administration, actively monitor 
and assess the progress of the prime contractors of the 
agency in attaining such goal. 
"(B) In making the assessment under clauses (iii) and 
(iv) of subparagraph (A), the head of the agency shall evaluate 
the extent to which use of the authority provided in paragraphs 
(2) and (3) and compliance with the requirement in paragraph 
(4) is effective for facilitating the attainment of the goal. 
"(2) To the extent practicable and when necessary to faciU-
tate achievement of the 5 percent goal described in subsection 
(a), the head of an agency shall make advance payments under 
section 2307 of this title to contractors described in subsection 
(a). The Federal Acquisition Regulation shall provide guidance 
to contracting officers for making advance pajrments to entities 
described in subsection (a)(1) under such section. 
"(3) To the extent practicable and when necessary to facili-
tate achievement of the 5 percent goal described in subsection 
(a), the head of an agency may enter into contracts using 
less than full and open competitive procedures (including 
awards under section 8(a) of the Small Business Act) and 
E
artial set asides for entities described in subsection (a)(1), 
ut shall pay a price not exceeding fair market cost by more 
than 10 percent in pajonent per contract to contractors or 
subcontractors described in subsection (a). The head of an 
agency shall adjust the percentage specified in the preceding 
sentence for any industry category if available information 
clearly indicates that nondisadvantaged small business con-
cerns in such industry category are generally being denied 
a reasonable opportunity to compete for contracts because of 
the use of that percentage in the application of this paragraph. 
"(4) To the extent practicable, the head of an agency shall 
maximize the number of minority small business concerns, 
historically Black colleges and universities, and minority 
institutions participating in the program. 
"(5) Each head of an agency shall prescribe regulations 
which provide for the following: 
"(A) Procedures or guidance for contracting officers 
to provide incentives for prime contractors referred to in 
subsection (a)(3) to increase subcontractor awards to enti-
ties described in subsection (a)(1). 
"(B) A requirement that contracting officers emphasize 
the award of contracts to entities described in subsection 
(a)(1) in all industry categories, including those categories 
in which such entities have not traditionally dominatejj. 
"(C) Guidance to agency personnel on the relationship 
among the following programs: 
"(i) The program implementing this section, 
"(ii) The program established under section 8(a) 
of the Small Business Act (15 U.S.C. 637(a)). 
"(iii) The small business set-aside program estab-
lished luider section 15(a) of the Small Business Act 
(15 U.S.C. 644(a)). 
"(D) With respect to an agency procurement which 
is reasonably likely to be set aside for entities described 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3373 
in subsection (a)(1), a requirement that (to the maximum 
extent practicable) the procurement be designated as such 
a set-aside before the soUcitation for the procurement is 
issued. 
"(E) Policies and procedures which, to the maximum 
extent practicable, will ensure that ciurent levels in the 
number or dollar value of contracts awarded under the 
program established under section 8(a) of the Small Busi-
ness Act (15 U.S.C. 637(a)) and under the small business 
set-aside program established under section 15(a) of the 
Small Business Act (15 U.S.C. 644(a)) are maintained and 
that every effort is made to provide new opportunities 
for contract awards to eligible entities, in order to meet 
the goal of subsection (a). 
"(F) Implementation of this section in a manner which 
will not alter the procurement process under the program 
established under section 8(a) of the Small Business Act 
(15 U.S.C. 637(a)). 
"(G) A requirement that one factor used in evaluating 
the performance of a contracting officer be the abihty of 
the officer to increase contract awards to entities described 
in subsection (a)(1). 
"(H) Increased technical assistance to entities described 
in subsection (a)(1). 
"(f) 
PENALTIES AND REGULATIONS RELATING TO STATUS.—(1) 
Whoever for the purpose of securing a contract or subcontract 
under subsection (a) misrepresents the status of any concern or 
person as a small business concern owned and controlled by a 
minority (as described in subsection (a)), shall be punished by 
imprisonment for not more than one year, or a fine under title 
18, or both. 
"(2) The Federal Acquisition Regulation shall prohibit awarding 
a contract under this section to an entity described in subsection 
(a)(1) unless the entity agrees to comply with the requirements 
of section 15(o)(l) of the Small Business Act (15 U.S.C. 644(o)(l)). 
"(g) INDUSTRY CATEGORIES.—(1) To the maximum extent prac-
ticable, the head of the agency shall— 
"(A) ensure that no particular industry category bears a 
disproportionate share of the contracts awarded to attain the 
goal established by subsection (a); and 
"(B) ensure that contracts awarded to atteiin the goal estab-
lished by subsection (a) are made across the broadest possible 
range of industry categories. 
"(2) Under procedures prescribed by the head of the agency, 
a person may request the Secretary to determine whether the 
use of small disadvantaged business set asides by a contracting 
activity of the agency has caused a particular industry category 
to bear a disproportionate share of the contracts awarded to attain 
the goal established for that contracting activity for the purposes 
of this section. Upon making a determination that a particular 
industry category is bearing a disproportionate share, the head 
of the agency shall take appropriate actions to Umit the contracting 
activity's use of set asides in awarding contracts in that particular 
industry category. 
"(h) CoMPLL\NCE WITH 
SUBCONTRACTING PLAN 
REQUIRE-
MENTS.—(1) The Federal Acquisition Regulation shall contain regu-
lations to ensure that potential contractors submitting sealed bids 
108 STAT. 3374 
PUBLIC LAW 103-355—OCT. 13, 1994 
or competitive proposals to the agency for procurement contracts 
to be awarded under the program provided for by this section 
are complying with applicable subcontracting plan requirements 
of section 8(d) of the Small Business Act (15 U.S.C. 637(d)). 
"(2) The regulations required by paragraph (1) shall ensure 
that, with respect to a sealed bid or competitive proposal for which 
the bidder or offeror is required to negotiate or submit a sub-
contracting plan under section 8(d) of the Small Business Act (15 
U.S.C. 637(a)), the subcontracting plan shall be a factor in evaluat-
ing the bid or proposal. 
"(i) ANNUAL REPORT.—(1) Not later than December 15 of each 
year, the head of the agency shall submit to Congress a report 
on the progress of the agency toward attaining the gosd of subsection 
(a) duringthe preceding fiscal year. 
"(2) The report required under paragraph (1) shall include 
the following: 
"(A) A full explanation of any progress toward attaining 
the goal of subsection (a). 
"(B) A plan to achieve the goal, if necessary. 
"(3) The report required under paragraph (1) shall also include 
the following: 
"(A) The aggregate differential between the fair market 
price of all contracts awarded pursuant to subsection (e)(3) 
and the estimated fair market price of all such contracts had 
such contracts been entered into using full and open competitive 
procedures. 
"(B) An analysis of the impact that subsection (a) shall 
have on the ability of small business concerns not owned and 
controlled by socially and economically disadvantaged individ-
uals to compete for contracts with the agency. 
"(C) A description of the percentage of contracts (actions), 
the total dollar amount (size of action), and the number of 
different entities relative to the attainment of the goal of sub-
section (a), separately for Black Americans, Native Americans, 
Hispanic Americans, Asian Pacific Americans, and other 
minorities, 
"(j) DEFINITIONS.—In this section: 
"(1) The term 'agency* means the Department of Defense, 
the Coast Guard, and the National Aeronautics and Space 
Administration. 
"(2) The term liead of an agency* means the Secretary 
of Defense, the Secretary of Transportation, and the Adminis-
trator of the National Aeronautics and Space Administration, 
"(k) EFFECTIVE DATE.—(1) This section applies in the Depart-
ment of Defense to each of fiscal years 1987 through 2000. 
"(2) This section applies in the Coast Guard and the National 
Aeronautics and Space Administration in each of fiscal years 1995 
through 2000.". 
SEC. 7106. PROCUREMENT GOALS FOR SMALL BUSINESS CONCERNS 
OWNED BY WOMEN. 
(a) GOALS.—Section 15 of the Small Business Act (15 U.S.C. 
644) is amended— 
(1) by striking out "and small business concerns owned 
and controlled by socially and economically disadvantaged 
individuals" each place it appears in the first sentence and 
fourth sentences of subsection (gXl), the second sentence of 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3375 
subsection (g)(2), and paragraphs (1), (2)(A), (2)(D), and (2XE) 
of subsection (h) and inserting in lieu thereof ", small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals, and small business concerns owned 
and controlled by women"; 
(2) in subsection (g)— 
(A) by inserting after the third sentence of paragraph 
(1) the following: "The Grovemment-wide goal for participa-
tion by small business concerns owned and controlled by 
women shall be established at not less than 5 percent 
of the total value of all prime contract and subcontract 
awards for each fiscal year. ; 
(B) in the first sentence of paragraph (2), by striking 
out "and by small business concerns owned and controlled 
by socially and economically disadvantaged individuals," 
and inserting in Heu thereof ", by small business concerns 
owned and controlled by socially and economically dis-
advantaged individuals, and by small business concerns 
owned and controlled by women ; and 
(C) in the fourth sentence of paragraph (2), by inserting 
after "including participation by small business concerns 
owned and controlled by socially and economically dis-
advantaged individuals" the following: "and participation 
by smaU business concerns owned and controlled by 
women"; and 
(3) in subsection (h)(2)(F), by striking out "women-owned 
small business enterprises" and inserting in lieu thereof "small 
business concerns owned and controlled by women". 
, 
(b) SUBCONTRACT PARTICIPATION.—Section 8(d) of such Act (15 
U.S.C. 637(d)) is amended— 
(1) by striking out "and small business concerns owned 
and controlled by socially and economically disadvantaged 
individuals" both places it appears in paragraph (1), both places 
it appears in paragraph (3)(A), in paragraph (4)(D), in subpara-
grapns (A), (C), and (F) of paragraph (6), and in paragraph 
(10)(B) and inserting in Heu thereof ", small business concerns 
owned and controlled by socially and economically disadvan-
taged individusds, and small business concerns owned and con-
trolled by women"; 
(2) by striking out subparagraph (D) in paragraph (3) and 
inserting in lieu thereof the following: 
"(E) Contractors acting in good faith may rely on written 
representations by their subcontractors regarding their status 
as either a smedl business concern, a small business concern 
owned and controlled by socially and economically disadvan-
taged individuals, or a small business concern owned and con-
trolled by women."; 
(3) in paragraph (3), by inserting after subparagraph (C) 
the following new subparagraph (D): 
"(D) The term 'small business concern owned and controlled 
by women' shall mean a small business concern— 
"(i) which is at least 51 per centum owned by one 
or more women; or, in the case of any pubUcly owned 
business, at least 51 per centum of the stock of which 
is owned by one or more women; and 
"(ii) whose management and daily business operations 
are controlled by one or more women."; and 
108 STAT. 3376 
PUBLIC LAW 103-355—OCT. 13, 1994 
(4) in paragraph (4)(E), by inserting "and for small business 
concerns owned and controlled by women" after "as defined 
in paragraph (3) of this subsection". 
(c) MISREPRESENTATIONS OF STATUS.—(1) Subsection (d)(1) of 
section 16 of such Act (15 U.S.C. 645) is amended by striking 
out "or 'small business concern owned and controlled by socially 
and economically disadvantaged individuals'" and inserting in lieu 
thereof ", a 'small business concern owned and controlled by socially 
and economically disadvantaged individuals', or a 'small business 
concerns owned and controlled by women'". 
(2) Subsection (e) of such section is amended by striking out 
"or 'small business concern owned and controlled by socially and 
economically disadvantaged individuals'" and inserting in lieu 
thereof ", a 'small business concern owned and controlled by socially 
and economically disadvantaged individuals', or a 'small business 
concerns owned and controlled by women'". 
(d) DEFINITION.—Section 3 of such Act (15 U.S.C. 632) is amend-
ed by adding at the end the following new subsection: 
"(n) For the purposes of this Act, a small business concern 
is a small business concern owned and controlled by women if— 
"(1) at least 51 percent of small business concern is owned 
by one or more women or, in the case of any publicly owned 
business, at least 51 percent of the stock of which is owned 
by one or more women; and 
"(2) the management and daily business operations of the 
business are controlled by one or more women.". 
41 use 405 note. 
SEC. 7107. DEVELOPMENT OF DEFINITIONS REGARDING CERTAIN 
SMALL BUSINESS CONCERNS. 
(a) REVIEW REQUIRED.—(1) The Administrator for Federal 
Procurement Policy shall conduct a comprehensive review of Federal 
laws, as in effect on November 1, 1994, to identify and catalogue 
all of the provisions in such laws that define (or describe for defini-
tional purposes) the small business concerns set forth in paragraph 
(2) for purposes of authorizing the participation of such small busi-
ness concerns as prime contractors or subcontractors in— 
(A) contracts awarded directly by the Federal (xovemment 
or subcontracts awarded under such contracts; or 
(B) contracts and subcontracts funded, in whole or in part, 
by Federal financial assistance under grants, cooperative agree-
ments, or other forms of Federal assistance. 
(2) The small business concerns referred to in paragraph (1) 
are as follows: 
(A) Small business concerns owned and controlled by 
socially and economically disadvantaged individuals. 
(B) Minority-owned small business concerns. 
(C) Small business concerns owned and controlled by 
women. 
(D) Woman-owned smsJl business concerns. 
(b) MATTERS TO B E DEVELOPED.—On the basis of the results 
of the review carried out under subsection (a), the Administrator 
for Federal Procurement Policy shall develop— 
(1) uniform definitions for the small business concerns 
referred to in subsection (a)(2); 
(2) uniform agency certification standards and procedures 
for— 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3377 
(A) determinations of whether a small business concern 
qualifies as a small business concern referred to in sub-
section (a)(2) under an applicable standard for purposes 
of contracts and subcontracts referred to in subsection 
(a)(1); and 
(B) reciprocal recognition by an agency of a decision 
of another agency regarding whether a small business con-
cern qualifies as a small business concern referred to in 
subsection (a)(2) for such purposes; and 
(3) such other related recommendations as the Adminis-
trator determines appropriate consistent with the review 
results. 
(c) PROCEDURES AND SCHEDULE.—(1) The Administrator for 
Federal Procurement Policy shall provide for the participation in 
the review and activities under subsections (a) and (b) by represent-
atives of— 
(A) the Small Business Administration (including the Office 
of the Chief Counsel for Advocacy); 
(B) the Minority Business Development Agency of the 
Department of Commerce; 
(C) the Department of Transportation; 
(D) the Environmental Protection Agency; and 
(E) such other executive departments and agencies as the 
Administrator considers appropriate. 
(2) In canying out subsections (a) and (b), the Administrator 
shall consult with representatives of organizations representing— 
(A) minority-owned business enterprises; 
(B) women-owned business enterprises; and 
(C) other organizations that the Administrator considers 
appropriate. 
(3) Not later than 60 days after the date of the enactment 
of this Act, the Administrator shall publish in the Federal Register 
a notice which— 
(A) lists the provisions of law identified in the review 
carried out under subsection (a); 
(B) describes the matters to be developed on the basis 
of the results of the review pursuant to subsection (4?); 
(C) soUcits public comment regarding the matters described 
in the notice pursuant to subparagraphs (A) and (B) for a 
period of not less than 60 days; and 
(D) addresses such other matters as the Administrator 
considers appropriate to ensure the comprehensiveness of the 
review and activities under subsections (a) and (b). 
(d) REPORT.—Not later than May 1, 1996, the Administrator 
for Federal Procurement Policy shall submit to the Committees 
on Small Business of the Senate and the House of Representatives 
a report on the results of the review carried out under subsection 
(a) and the actions taken under subsection (b). The report shall 
include a discussion of the results of the review, a description 
of the consultations conducted and public comments received, and 
the Administrator's recommendations with regard to the matters 
identified under subsection (b). 
108 STAT. 3378 
PUBLIC LAW 103-355—OCT. 13, 1994 
SEC. 7108. FUNCTIONS OF OFFICE OF FEDERAL PROCUREMENT POL-
ICY RELATING TO SMALX. BUSINESS. 
(a) POLICIES.—Section 6(d) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 405(d)) is amended by adding after paragraph 
(9), as added by section 5091, the following new paragraphs: 
"(10) developing policies, in consultation with the Adminis-
trator of the Small Business Administration, that ensure that 
small businesses, small businesses owned £uid controlled by 
socially and economically disadvantaged individuals, and small 
businesses owned and controlled by women are provided with 
the maximum practicable opportunities to participate in 
procurements that are conducted for amounts below the sim-
plified acquisition threshold; 
"(11) developing policies that will promote achievement 
of goals for participation by small businesses, small businesses 
owned and controlled by socially and economically disadvan-
taged individuals, and small business owned and controlled 
by women; and". 
(b) EDUCATION AND TRAINING.—Section 6(d)(5) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 405(d)(5)) is 
amended— 
(1) by striking out "and" at the end of subparagraph (A); 
(2) by striking out the semicolon at the end of subparagraph 
(B) and inserting in lieu thereof"; and"; and 
(3) bv adding at the end the following new subparagraph: 
(C) establish policies and procedures for the establish-
ment and implementation of education and training pro-
grams authorized by this Act, including the estabUshment 
and implementation of training, in conjunction with the 
(jeneral Services Administration, for critical procurement 
E
ersonnel designed to increase the participation of small 
usiness concerns owned and controlled by socially and 
economically disadvantaged individuals, women, and other 
minorities in procurement activities conducted by an execu-
tive agency.". 
Subtitle B—Socioeconomic Laws 
SEC. 7201. ACQUISITIONS GENERALLY. 
The Act of June 30, 1936 (41 U.S.C. 35 et seq.), commonly 
referred to as the "Walsh-Healey Act", is amended— 
41 use 35. 
(1) in the first section, by striking out subsection (a) and 
redesignating subsections (b), (c), (d), and (e), as subsections 
(a), (b), (c), and (d), respectively; 
41 use 43a. 
(2) in section 10(b) by striking out "manufacturer of, or 
regular dealer in," and inserting in lieu thereof "supplier of; 
(3) in section 10(c) by striking out " 'regular dealer, 'manu-
facturer',"; and 
(4) by adding at the end the following new sections: 
41 use 43b. 
"SEC. 11. (a) The Secretary of Labor may prescribe in regula-
tions the standards for determining whether a contractor is a manu-
facturer of or a regular dealer in materials, supplies, articles, or 
equipment to be manufactured or used in the performance of a 
contract entered into by any executive department, independent 
establishment, or other agency or instrumentaUty of the United 
States, or by the District of (Columbia, or by any corporation all 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3379 
the stock of which is beneficially owned by the United States, 
for the manufacture or furnishing of materials, suppUes, articles, 
and equipment. 
"(b) Any interested person shall have the right of judicial review 
of any legal question regarding the interpretation of the terms 
'regular dealer and 'manufacturer*, as denned pursuant to sub-
section (a).". 
SEC. 7202. PROHTOinON ON USE OF FUNDS FOR DOCUMENTING ECO-
NOMIC OR EMPLOYMENT IMPACT OF CERTAIN ACQUISI-
TION PROGRAMS. 
(a) REVISION AND CODIFICATION.—(1) Subchapter I of chapter 
134 of title 10, United States Code, is amended by adding at 
the end the following new section: 
"§2247. Prohibition on use of funds for documenting eco-
nomic or emplojonent impact of certain acquisi-
tion programs 
"No funds appropriated by the Congress may be obligated or 
expended to assist any contractor of the Department of Defense 
in preparing any material, report, lists, or analysis with respect 
to the actual or projected economic or emplojonent impact in a 
particular State or congressional district of an acquisition program 
for which all research, development, testing, and evaluation has 
not been completed.". 
(2) The table of sections at the beginning of such subchapter 
is amended by adding at the end the following new item: 
"2247. Prohibition on use of funds for documenting economic or employment impact 
of certain acquisition programs.". 
(b) REPEAL OF SUPERSEDED LAW.—Section 9048 of Public Law 
102-396 (106 Stat. 1913) is repealed. 
SEC. 7203. MERIT-BASED AWARD OF CONTRACTS AND GRANTS. 
(a) ARMED SERVICES ACQUISITIONS.—(1) Section 2304 of title 
10, United States Code, as amended by section 1005, is further 
amended— 
(A) in subsection (c)(5), by inserting "subject to subsection 
(j)," after "(5)"; and 
(B) by adding at the end the following new subsection: 
"(j)(l) It is the policy of Congress that an agency named in 
section 2303(a) of tms title should not be required by legislation 
to award a new contract to a specific non-Federal Grovemment 
entity. It is further the policy of Congress that any program, project, 
or technology identified in legislation be procured through merit-
based selection procedures. 
"(2) A provision of law may not be construed as requiring 
a new contract to be awarded to a specified non-Federal Government 
entity unless that provision of law— 
"(A) specifically refers to this subsection; 
"(B) specifically 
identifies 
the particular 
non-Federal 
Government entity involved; and 
"(C) specifically states that the award to that entity is 
required by such provision of law in contravention of the policy 
set forth in paragraph (1). 
"(3) For purposes of this subsection, a contract is a new contract 
luiless the work provided for in the contract is a continuation 
108 STAT. 3380 
PUBLIC LAW 103-355—OCT. 13, 1994 
of the work performed by the specified entity under a preceding 
contract. 
"(4) This subsection shall not apply with respect to any contract 
that calls upon the National Acaaemy of Sciences to investigate, 
examine, or experiment upon any subject of science or art of signifi-
cance to an agency named in section 2303(a) of this title and 
to report on such matters to the Congress or any agency of the 
Federal Grovemment.". 
(2) Chapter 139 of title 10, United States Code, is £unended 
by adding at the end the following new section: 
*
*
§ 2374. Merit-based award of grants for research and devel-
opment 
"(a) It is the policy of Congress that an agency named in 
section 2303(a) of this title should not be required by legislation 
to award a new grant for research, development, test, or evaluation 
to a non-Federal Government entity. It is further the policy of 
Congress that any program, project, or technology identified in 
legislation be awarded through merit-based selection procedures. 
"(b) A provision of law may not be construed as requiring 
a new grant to be awarded to a specified non-FedergJ Government 
entity unless that provision of law— 
"(1) specifically refers to this subsection; 
"(2) specifically 
identifies 
the particular 
non-Federal 
Government entity involved; and 
"(3) specifically states that the award to that entity is 
required by such provision of law in contravention of the poUcy 
set forth in subsection (a). 
"(c) For purposes of this section, a grant is a new grant unless 
the work provided for in the grant is a continuation of the work 
performed by the specified entity under a preceding grant. 
"(d) This section shall not apply with respect to any grant 
that calls upon the National Acaaemy of Sciences to investigate, 
examine, or experiment upon any subject of science or art of signifi-
cance to an agency named in section 2303(a) of this title and 
to report on such matters to the Congress or any agency of the 
Federal Grovemment.". 
(3) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item: 
"2374. Merit-based award of grants for research and development.". 
(b) CIVILIAN AGENCY ACQUISITIONS.—(1) Section 303 of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253) is amended— 
(A) in subsection (c)(5), by inserting "subject to subsection 
(h),"afl«r"(5)";and 
(B) by adding at the end the following new subsection: 
"(h)(1) It is the policy of Congress that an executive agency 
should not be required by legislation to award a new contract 
to a specific non-Federal Grovemment entity. It is further the policy 
of Congress that any program, project, or technology identified 
in legislation be procured through merit-based selection procedures. 
"(2) A provision of law may not be construed as requiring 
a new contract to be awarded to a specified non-Federal Cxovernment 
entity unless that provision of law— 
"(A) specifically refers to this subsection; 
"(B) specifically 
identifies 
the particular 
non-Federal 
Grovemment entity involved; and 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3381 
"(C) specifically states that the award to that entity is 
required by such provision of law in contravention of the policy 
set forth in paragraph (1). 
"(3) For purposes of this subsection, a contract is a new contract 
unless the work provided for in the contract is a continuation 
of the work performed by the specified entity under a preceding 
contract. 
"(4) This subsection shall not apply with respect to any contract 
that calls upon the National Academy of Sciences to investigate, 
examine, or experiment upon any subject of science or art of signifi-
cance to an executive agency and to report on such matters to 
the Congress or any agency of the Federed Government.". 
(2) Title III of such Act, as amended by section 6006, is further 
amended by adding at the end the following new section: 
"SEC. 316. MERIT-BASED AWARD OF GRANTS FOR RESEARCH AND 41 USC 266. 
DEVELOPMENT 
"(a) POLICY.—It is the policy of Congress that £in executive 
agency should not be required by legislation to award a new grant 
for research, development, test, or evaluation to a non-Federal 
Government entity. It is further the policy of Congress that any 
program, project, or technology identified in legislation be awarded 
through merit-based selection procedures. 
"(b) RULE OF CONSTRUCTION.—A provision of law may not be 
construed as requiring a new grant to be awarded to a specified 
non-Federal Grovemment entity unless that provision of law— 
"(1) specifically refers to this subsection; 
"(2) specifically 
identifies 
the particular 
non-Federal 
Government entity involved; and 
"(3) specifically states that the award to that entity is 
required by such provision of law in contravention of the policy 
set forth in subsection (a). 
"(c) NEW GRANT DEFINED.—For purposes of this section, a 
grant is a new grant unless the work provided for in the grant 
is a continuation of the work performed by the specified entity 
luider a preceding grant. 
"(d) INAPPLICABILITY TO CERTAIN GRANTS.—This section shall 
not apply with respect to any grant that calls upon the National 
Academy of Sciences to investigate, examine, or experiment upon 
any subject of science or art of significance to an executive agency 
and to report on such matters to Congress or any agency of the 
Federal Grovemment.". 
SEC 7204. MAXIMUM PRACTICABLE OPPORTUNITIES FOR APPREN-
TICES ON FEDERAL CONSTRUCTION PROJECTS. 
It is the sense of the House of Representatives that— 
(1) contractors performing Federal construction contracts 
should, to the maximum extent practicable, give preference 
in the selection of subcontractors to subcontractors participating 
in apprenticeship programs registered with the Department 
of Labor or with a State apprenticeship agency recognized 
by such Department; and 
(2) contractors and subcontractors performing Federal 
construction contracts should provide maximum practicable 
opportunities for emplo5nnent of apprentices who are participat-
ing in or who have completed such apprenticeship programs. 
108 STAT. 3382 
PUBLIC LAW 103-355—OCT. 13, 1994 
41 u s e lOb-2 
note. 
Community 
Improvement 
Volunteer Act of 
1994. 
SEC. 7205. REPEAL OF OBSOLETE PROVISION. 
Section 308 of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 258) is repealed. 
SEC. 7206. REPEAL OF OBSOLETE AND REDUNDANT PROVISIONS OF 
LAW. 
(a) REPEAL OF REQUIREMENT FOR POLICY GUIDANCE.—^Title III 
of the Act of March 3, 1933 (41 U.S.C. 10a et seq.), commonly 
referred to as the "Buy American Act", is amended in section 
4(g) (41 U.S.C. lOb-l(g)) by striking out paragraphs (2XC) and 
(3). 
(b) REPEAL OF REPORTING REQUIREMENT.—Section 9096(b) of 
Public Law 102-396 (106 Stat. 1924; 41 U.S.C. 10b-2(b)) is repealed. 
(c) REPEAL OF STUDIES OF WAIVERS.—Section 306 of the Trade 
Agreements Act of 1979 (19 U.S.C. 2516) is repealed. 
Subtitle C—^Waiver of Application of Pre-
vailing Wage-Setting Requirements to 
Volunteers 
40 u s e 276d 
note. 
40 u s e 276d. 
'Commimity Improvement 
40 u s e 276d-l. 
SEC. 7301. SHORT TITLE. 
This subtitle may be cited as the 
Volunteer Act of 1994*. 
SEC. 7302. PURPOSE. 
It is the purpose of this subtitle to promote and provide 
opportunities for people who wish to volunteer their services to 
State or local governments, public agencies, or nonprofit charitable 
organizations in the construction, repair or alteration (including 
painting and decorating) of public buildings and public works that 
are funded, in whole or in part, with Federal financial assistance 
authorized under certain Federal programs and that might not 
otherwise be possible without the use of volunteers. 
SEC. 7303. WAIVER FOR INDIVIDUALS WHO PERFORM VOLUNTEER 
SERVICES FOR PUBUC ENTITIES. 
(a) IN GENERAL.—^The requirement that certain laborers and 
mechanics be paid in accordance with the wage-setting provisions 
of the Act of March 3, 1931 (commonly known as the "Davis-
Bacon Act") (40 U.S.C. 276a et seq.) as set forth in any of the 
Acts or provisions described in section 7305 shall not apply to 
an individu£d— 
(1) who volunteers— 
(A) to perform a service directly to a State or local 
government or a pubUc agency for civic, charitable, or 
humanitarian reasons, without promise, expectation, or 
receipt of compensation for services rendered, other than 
expenses, reasonable benefits, or a nominal fee (as defined 
in subsection (b)), but solely for the personal purpose or 
pleasure of the individual; and 
(B) to provide such services fi*eely and without pressure 
or coercion, direct or implied, from any employer; 
(2) whose contribution of service is not for the direct or 
indirect benefit of any contractor otherwise performing or seek-
ing to perform work on the same project for which the individual 
is volunteering; 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3383 
(3) who is not employed by and does not provide services 
to a contractor or subcontractor at any time on the federally 
assisted or insured project for which the individual is volunteer-
ing; and 
(4) who is not otherwise employed by the same public 
agency to perform the same type of services as those for which 
the individual proposes to volunteer. 
(b) EXPENSES.—Payments of expenses, reasonable benefits, or 
a nominal fee may be provided to volimteers described in subsection 
(a) only in accordance with regulations issued by the Secretarj*^ 
of Labor. In prescribing the regulations, the Secretary shall take 
into consideration criteria such as the total amoiint of payments 
made (relating to expenses, benefits, or fees) in the context of 
the economic realities. The regulations shall include provisions that 
provide that— 
(1) a payment for an expense may be received by a volun-
teer for items such as uniform allowances, protective gear and 
clothing, 
reimbursement 
for 
approximate 
out-of-pocket 
expenses, or for the cost or expense of meals and transportation; 
(2) a reasonable benefit may include the inclusion of a 
volunteer in a group insurance plan (such as a Hability, health, 
fife, disability, or worker's compensation plan) or pension plan, 
or the awarding of a length of service award; and 
(3) a nominal fee may not be used as a substitute for 
compensation and may not be connected to productivity. 
The decision as to what constitutes a nominal fee for purposes 
of paragraph (3) shall be determined based on the context of the 
economic realities of the situation involved and shall be made 
by the Secretary of Labor. 
(c) ECONOMIC REALITY.—For purposes of subsection (b), in 
determining whether an expense, benefit, or fee described in such 
subsection may be paid to volunteers in the context of the economic 
reaUties of the particular situation, the Secretary of Labor may 
not permit any such expense, benefit, or fee that has the effect 
of undermining labor standards by creating downward pressure 
on prevailing wages in the local construction industry. 
SEC. 7304. WAIVER FOR INDIVIDUALS WHO PERFORM VOLUNTEER 
40 USC 276d-2. 
SERVICES FOR NONPROFIT ENTITIES. 
The requirement that certain laborers and mechanics be paid 
in accordgince with the wage-setting provisions of the Act of March 
3, 1931 (commonly known as the 'l)avis-Bacon Act") (40 U.S.C. 
276a et seq.) as set forth in any of the Acts or provisions described 
in section 7305 shall not apply to any individual— 
(1) who volunteers— 
(A) to perform a service directly to a public or private 
nonprofit recipient of Federal assistsuice for civic, chari-
table, or humanitarian reasons, without promise, expecta-
tion, or receipt of compensation for services rendered, but 
solely for the personal purpose or pleasure of the individual; 
and 
(B) to provide such services freely and without pressure 
or coercion, direct or implied, from any employer; 
(2) whose contribution of service is not for the direct or 
indirect benefit of any contractor otherwise performing or seek-
ing to perform work on the same project for which the individual 
is volunteering; 
108 STAT. 3384 
PUBLIC LAW 103-355—OCT. 13, 1994 
(3) who is not employed by and does not provide services 
to a contractor or subcontractor at any time on the federally 
assisted or insured project for which the individual is volunteer-
ing; and 
(4) who is not otherwise employed by the recipient of Fed-
eral assistance to perform the same type of services as those 
for which the individual proposes to volunteer. 
40 use 276d-3. 
SEC. 7305. CONTAACTS AFFECTED. 
For purposes of sections 7303 and 7304, the Acts or provisions 
described in this section are— 
(1) the Library Services and Construction Act (20 U.S.C. 
351 et seq.); 
(2) the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450 et seq.); 
(3) section 329 of the Public Health Service Act (42 U.S.C. 
254b); 
(4) section 330 of the Public Health Service Act (42 U.S.C. 
254c); 
(5) the Indian Heedth Care Improvement Act (25 U.S.C. 
1601 et seq.); and 
(6) the Housing and Community Development Act of 1974 
(42 U.S.C. 5301 et seq.). 
40USC276d 
SEC. 7306. REPORT. 
Not later than December 31, 1997, the Secretary of Labor 
shall prepare and submit to the appropriate committees of Congress 
a report that— 
(1) to the maximum extent practicable— 
(A) identifies and assesses the barriers that prevent 
private for-profit entities from using volunteers permitted 
under this subtitle; and 
(B) assesses whether private for-profit entities should 
be permitted to use volunteers on projects relating to the 
construction, repair, or alteration of public buildings and 
pubhc works if— 
(i) such volunteers are performing services for 
civic, charitable, humanitarian or educational reasons; 
(ii) the contribution of such services is not for 
the direct or indirect benefit of the private for-profit 
entity that is performing or seeking to perform work 
on such projects; and 
(iii) such projects would not otherwise be possible 
without the use of volunteers; and 
(2) contains recommendations with respect to other Acts 
related to the Davis-Bacon Act that may be considered in 
legislation to permit volunteer work. 
TITLE VIII—COMMERCIAL ITEMS 
Subtitle A—^Definitions and Regulations 
SEC. 8001. DEFINITIONS. 
(a) DEFINITIONS.—Section 4 of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 403) is amended by adding at the 
end the following new paragraphs: 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3385 
"(12) The term 'commercial item' means any of the follow-
ing: 
"(A) Any item, other than real property, that is of 
a type customarily used by the general public or by non-
governmental entities for purposes other than govern-
mental purposes, and that— 
"(i) has been sold, leased, or licensed to the general 
public; or 
"(ii) has been offered for sale, lease, or Ucense 
to the general public. 
"(B) Ajiy item that evolved from an item described 
in subparagraph (A) through advances in technology or 
performance and that is not yet available in the commercial 
marketplace, but will be available in the commercial 
marketplace in time to satisfy the delivery requirements 
under a Federal Grovernment solicitation. 
"(C) Any item that, but for— 
"(i) modifications of a type customarily available 
in the commercial marketplace, or 
"(ii) minor modifications made to meet Federal 
Grovernment requirements, 
would satisfy the criteria in subparagraph (A) or (B). 
"(D) Any combination of items meeting the require-
ments of subparagraph (A), (B), (C), or (E) that are of 
a type customarily combined and sold in combination to 
the general public. 
"(E) Installation services, maintenance services, repair 
services, training services, and other services if such serv-
ices are procured for support of an item referred to in 
subparagraph (A), (B), (C), or (D) and if the source of 
such services— 
"(i) offers such services to the general public and 
the Federal Government contemporaneously and under 
similar terms and conditions; and 
"(ii) offers to use the same work force for providing 
the Federal Grovernment with such services as the 
source uses for providing such services to the general 
public. 
"(F) Services offered and sold competitively, in substan-
tial quantities, in the commercial marketplace based on 
established catalog prices for specific tasks performed and 
under standard commercial terms and conditions. 
"(G) Any item, combination of items, or service referred 
to in subparagi'aphs (A) through (F) notwithstanding the 
fact that the item, combination of items, or service is trans-
ferred between or among separate divisions, subsidiaries, 
or affiliates of a contractor. 
"(H) A nondevelopmental item, if the procuring agency 
determines, in accordance with conditions set forth in the 
Federal Acquisition Regulation, that the item was devel-
oped exclusively at private expense and has been sold 
in substantial quantities, on a competitive basis, to multiple 
State and local governments. 
"(13) The term 'nondevelopmental item' means any of the 
following: 
"(A) Any commercial item. 
108 STAT. 3386 
PUBLIC LAW 103-355—OCT. 13, 1994 
"(B) Any previously developed item of supply that is 
in use by a department or agency of the United States, 
a State or local government, or a foreign government with 
which the United States has a mutual defense cooperation 
agreement. 
"(C) Any item of supply described in subparagraph 
(A) or (B) that requires only minor modification or modifica-
tion of the type customarily available in the commercial 
marketplace in order to meet the requirements of the 
procuring department or agency. 
"(D) Any item of supply currently being produced that 
does not meet the requirements of subparagraph (A), (B), 
or (C) solely because the item is not yet in use. 
"(14) The term 'component' means any item supplied to 
the Federal Grovemment as part of an end item or of another 
component. 
"(15) The term 'commercial component' means any compo-
nent that is a commercial item.". 
(b) 
STYLISTIC 
AMENDMENTS.—Such 
section 
is 
fiirther 
amended— 
(1) by striking out "Act—" in the matter preceding para-
graph (1) and inserting in lieu thereof "Act:"; 
(2) by capitalizing the first letter of the first word in 
each of paragraphs (1) through (11); 
(3) by striking out the semicolon at the end of each of 
paragraphs (1), (2), (3), (5), (6), (7), (8), and (9) and inserting 
in lieu thereof a period; and 
(4) by striking out "; and" at the end of paragraphs (4) 
and (10) and inserting in lieu thereof a period. 
41 use 264 
SEC. 8002. REGULATIONS ON ACQUISITION OF COMMERCIAL ITEMS. 
(a) IN GENERAL.—^The Federal Acquisition Regulation shall pro-
vide regulations to implement paragraphs (12) through (15) of sec-
tion 4 of the Office of Federal Procurement Policy Act, chapter 
140 of title 10, United States Code, and sections 314 through 
314B of the Federal Property and Administrative Services Act of 
1949. 
(b) CONTRACT CLAUSES.—(1) The regulations prescribed imder 
subsection (a) shall contain a list of contract clauses to be included 
in contracts for the acquisition of commercial end items. Such 
list shall, to the maximum extent practicable, include only those 
contract clauses— 
(A) that are required to implement provisions of law or 
executive orders applicable to acquisitions of commercial items 
or commercial components, as the case may be; or 
(B) that are determined to be consistent with standard 
commercial practice. 
(2) Such regulations shall provide that a prime contractor shall 
not be required by the Federal (xovemment to apply to any of 
its divisions, subsidiaries, affiliates, subcontractors, or suppliers 
that are furnishing commercial items any contract clause except 
those— 
(A) that are required to implement provisions of law or 
executive 
orders 
applicable 
to 
subcontractors 
furnishing 
commercial items or commercial components, as the case may 
be; or 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3387 
(B) that are determined to be consistent with standard 
commercial practice. 
(3) To the maximum extent practicable, only the contract 
clauses listed pursuant to paragraph (1) may be used in a contract, 
and only the contract clauses referred to in paragraph (2) may 
be required to be used in a subcontract, for the acquisition of 
commercial items or commercial components by or for an executive 
agency. 
(4) The Federal Acquisition Regulation shall provide standards 
and procedures for waiving the use of contract clauses required 
pursuant to paragraph (1), other than those required by law, includ-
ing standards for determining the cases in which a waiver is appro-
priate. 
(5) For purposes of this subsection, the term "subcontract" 
includes a transfer of commercial items between divisions, subsidi-
aries, or affiliates of a contractor or subcontractor. 
(c) MARKET ACCEPTANCE.—(1) The Federal Acquisition Regula-
tion shall provide that imder appropriate conditions the head of 
an executive agency may require offerors to demonstrate that the 
items offered— 
(A) have either— 
(i) achieved commercial market acceptance; or 
(ii) been satisfactorily supplied to an executive agency 
under current or recent contracts for the same or similar 
requirements; and 
(B) otherwise meet the item description, specifications, or 
other criteria prescribed in the public notice and soUcitation 
relating to the contract. 
(2) The Federal Acquisition Regulation shall provide guidance 
to ensure that the criteria for determining commercial market 
acceptance include the consideration of— 
(A) the minimimi needs of the executive agency concerned; 
and 
(B) the entire relevant commercial market, including small 
businesses. 
(d) 
USE OF FIRM, FIXED PRICE CONTRACTS.—The Federal 
Acquisition Regulation shall include, for acquisitions of commercial 
items— 
(1) a requirement that firm, fixed price contracts or fixed 
price with economic price adjustment contracts be used to the 
maximum extent practicable; and 
(2) a prohibition on use of cost t)rpe contracts. 
(e) CONTRACT QUALITY REQUIREMENTS.—The regulations pre-
scribed under subsection (a) shall include provisions that— 
(1) permit, to the msiximum extent practicable, a contractor 
under a commercial items acquisition to use the existing quality 
assurance system of the contractor as a substitute for compli-
ance with an otherwise appUcable requirement for the Govern-
ment to inspect or test the commercial items before the contrac-
tor's tender of those items for acceptance by the Government; 
(2) require that, to the maximum extent practicable, the 
executive agency take advantage of warranties (including 
extended warranties) offered by offerors of commercial items 
and use such warranties for the repair and replacement of 
commercial items; and 
108 STAT. 3388 
PUBLIC LAW 103-355—OCT. 13, 1994 
(3) set forth guidance regarding the use of past performance 
of commercial items and sources as a factor in contract award 
decisions. 
(f) DEFENSE CONTRACT CLAUSES.—(1) Section 824(b) of the 
National Defense Authorization Act for Fiscal Years 1990 and 1991 
(Public Law 101-189; 10 U.S.C. 2325 note) shall cease to be effective 
on the date on which the regulations implementing this section 
become effective. 
(2) NotwithstEuiding subsection (b), a contract of the Depart-
ment of Defense entered into before the date on which section 
824(b) ceases to be effective under paragraph (1), and a subcontract 
entered into before such date under such a contract, may include 
clauses developed pursuant to paragraphs (2) and (3) of section 
824(b) of the National Defense Authorization Act for Fiscal Years 
1990 and 1991 (Public Law 101-189; 10 U.S.C. 2325 note). 
SEC. 8003. LIST OF INAPPUCABLE LAWS IN FEDERAL ACQUISITION 
REGULATION. 
(a) LIST.—^The Office of Federal Procurement Policy Act (41 
U.S.C. 401 et seq.), is amended by adding after section 33, as 
added by section 4101, the following new section: 
41 use 430. 
"SEC. 34. UST OF LAWS INAPPLICABLE TO PROCUREMENTS OF 
COMMERCIAL ITEMS IN FEDERAL ACQUISITION REGULA-
TION. 
"(a) LIST OF INAPPLICABLE PROVISIONS OF LAW.—(1) The Federal 
Acquisition Regulation shall include a Ust of provisions of law 
that are inappUcable to contracts for the procurement of commercial 
items. A provision of law that is properly included on the Ust 
pursuant to paragraph (2) may not be construed as applicable 
to purchases of commercial items by an executive agency. Nothing 
in this section shall be construed to render inapplicable to contracts 
for the procurement of commercial items any provision of law that 
is not included on such list. 
"(2) A provision of law described in subsection (c) that is enacted 
after the date of the enactment of the Federal Acquisition Stream-
lining Act of 1994 shall be included on the list of inapplicable 
provisions of law required by paragraph (1), unless the Federal 
Acquisition Regulatory Council makes a written determination that 
it would not be in the best interest of the Federal (jovemment 
to exempt contracts for the procurement of commercial items from 
the applicability of the provision. 
"(b) SUBCONTRACTS.—(1) The Federal Acquisition Regulation 
shall include a list of provisions of law that are inapplicable to 
subcontracts under either a contract for the procurement of commer-
cial items or a subcontract for the procurement of commercial 
items. A provision of law that is properly included on the list 
pursuant to paragraph (2) may not be construed as applicable 
to such subcontracts. Nothing in this section shall be construed 
to render inapplicable to subcontracts under a contract for the 
procurement of commercial items any provision of law that is not 
included on such list. 
"(2) A provision of law described in subsection (c) shall be 
included on the list of inapplicable provisions of law required by 
paragraph (1) unless the Federal Acquisition Regulatory Council 
makes a written determination that it would not be in the best 
interest of the Federal Government to exempt subcontracts under 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3389 
a contract for the procurement of commercial items from the 
appUcabiUty of the provision. 
"(3) Nothing in this subsection shall be construed to authorize 
the waiver of the applicability of any provision of law with respect 
to any subcontract under a contract with a prime contractor resell-
ing or distributing commercial items of another contractor without 
adding value. 
"(4) In this subsection, the term 'subcontract' includes a transfer 
of commercial items between divisions, subsidiaries, or affiUates 
of a contractor or subcontractor. 
"(c) COVERED LAW.—^A provision of law referred to in sub-
sections (a)(2) and (b) is any provision of law that, as determined 
by the Federal Acquisition Regulatory Council, sets forth policies, 
procedures, requirements, or restrictions for the procurement of 
property or services by the Federal Government, except for a provi-
sion of law that— 
"(1) provides for criminal or civil penalties; or 
"(2) specifically refers to this section and provides that, 
notwithstanding this section, it shall be applicable to contracts 
for the procurement of commercial items. 
**(d) PETITION.—In the event that a provision of law described 
in subsection (c) is not included on the list of inapplicable provisions 
of law as required by subsection (a) or (b), and no written determina-
tion has been made by the Federal Acquisition Regulatory Council 
pursuant to subsection (a)(2) or (b)(2), a person may petition the 
Administrator for Federal Procurement Policy to take appropriate 
action. The Administrator shall revise the Federal Acquisition Regu-
lation to include the provision on the list of inapplicable provisions 
of law unless the Federal Acquisition Regulatory Council makes 
a determination pursuant to subsection (a)(2) or (b)(2) within 60 
days after the date on which the petition is received.". 
(b) EFFECTIVE DATE OF PETITION PROVISION.—NO petition may 4i use 430 note. 
be filed under section 34(d) of the Office of Federal Procurement 
Policy Act, as added by subsection (a), until after the date occurring 
6 months after the date of the enactment of this Act. 
Subtitle B—^Armed Services Acquisitions 
SEC. 8101. ESTABUSHMENT OF NEW CHAPTER IN TITLE 10. 
(a) ESTABLISHMENT.—Part IV of subtitle A of title 10, United 
States Code, is amended by inserting after chapter 139 the following 
new chapter 140: 
"CHAPTER 140—PROCUREMENT OF COMMERCIAL 
ITEMS 
"Sec. 
"2375. Relationship of commercial item provisions to other provisions of law. 
"2376. Definitions. 
"2377. Preference for acquisition of commercitd items.". 
(b) CLERICAL AMENDMENT.—The tables of chapters at the begin-
ning of subtitle A of title 10, United States Code, and the beginning 
of part IV of such subtitle are amended by inserting after the 
item relating to chapter 139 the following new item: 
"140. Proctirement of Commercial Items 
2375". 
108 STAT. 3390 
PUBLIC LAW 103-355—OCT. 13, 1994 
SEC. 8102. RELATIONSHIP TO OTHER PROVISIONS OF LAW. 
Chapter 140 of title 10, United States Code, as added by section 
8101, is amended by adding after the table of sections the following: 
*
*
§ 2375. Relationship of commercial item provisions to other 
provisions of law 
"(a) APPLICABILITY OF TITLE.—^Unless otherwise specifically pro-
vided, nothing in this chapter shall be construed as providing that 
any other provision of this title relating to procurement is inappUca-
ble to the procurement of commercial items. 
"(b) 
LIST OF LAWS INAPPLICABLE TO CONTRACTS FOR THE 
ACQUISITION OF COMMERCIAL ITEMS.—NO contract for the procure-
ment of a commercial item entered into by the head of an agency 
shall be subject to any law properly listed in the Federal Acquisition 
Regulation (pursuant to section 34 of the Office of Federal Procure-
ment Policy Act). 
"(c) CROSS REFERENCE TO EXCEPTION TO COST OR PRICING 
DATA REQUIREMENTS FOR COMMERCIAL ITEMS.—For provisions 
relating to exceptions for requirements for cost or pricing data 
for contracts for the procurement of commercial items, see section 
2306a(d) of this title.". 
SEC. 8103. DEFINITIONS. 
Chapter 140 of title 10, United States Code, as amended by 
section 8102, is further amended by adding after section 2375 
the following new section: 
''§2376. Definitions 
"In this chapter: 
"(1) The terms 'commercial item', 'nondevelopmental item', 
'component', and 'commercial component' have the meanings 
P
rovided in section 4 of the Office of Federal Procurement 
olicy Act. 
' (2) The term 'head of an agencj^ means the Secretary 
of Defense, the Secretary of Transportation, and the Adminis-
trator of the National Aeronautics and Space Administration. 
"(3) The term 'agenc}^ means the Department of Defense, 
the Coast Guard, and the National Aeronautics and Space 
Administration.", 
SEC. 8104. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS. 
(a) IN GENERAL.—Chapter 140 of title 10, United States Code, 
as amended by section 8103, is further amended by adding after 
section 2376 the following new section: 
*
*
§ 2377. Preference for acquisition of commercial items 
"(a) PREFERENCE.—^The head of an agency shall ensure that, 
to the maximum extent practicable— 
"(1) requirements of the agency with respect to a procure-
ment of supplies or services are stated in terms of— 
"(A) functions to be performed; 
"(B) performance required; or 
"(C) essential physical characteristics; 
"(2) such requirements are defined so that commercial 
items or, to the extent that commercial items suitable to meet 
the agencjr's needs are not available, nondevelopmental items 
other than commercial items, may be procured to fulfill such 
requirements; and 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3391 
"(3) offerors of commercial items and nondevelopmental 
items other than commercial items are provided an opportunity 
to compete in any procurement to fill such requirements. 
"(b) IMPLEMENTATION.—The head of an agency shall ensure 
that procurement officials in that agency, to the maximum extent 
practicable— 
"(1) acquire commercial items or nondevelopmental items 
other than commercial items to meet the needs of the agency; 
"(2) require prime contractors and subcontractors at all 
levels under the agency contracts to incorporate commercial 
items or nondevelopmental items other than commercial items 
as components of items supplied to the agency; 
"(3) modify requirements in appropriate cases to ensure 
that the requirements can be met by commercial items or, 
to the extent that commercial items suitable to meet the agen-
c^s needs are not available, nondevelopmental items other 
than commercial items; 
"(4) state specifications in terms that enable and encourage 
bidders and offerors to supply commercial items or, to the 
extent that commercial items suitable to meet the agenc/s 
needs are not available, nondevelopmental items other than 
commercial items in response to the agency solicitations; 
"(5) revise the agency's procurement policies, practices, and 
procedures not required by law to reduce any impediments 
in those policies, practices, and procedures to the acquisition 
of commercial items; and 
"(6) require training of appropriate personnel in the acquisi-
tion of commercial items. 
"(c) PRELIMINARY MARKET RESEARCH.—(1) The head of an 
agency 
shall 
conduct 
market 
research 
appropriate 
to 
the 
circumstances— 
"(A) before developing new specifications for a procurement 
by that agency; and 
"(B) before soliciting bids or proposals for a contract in 
excess of the simplified acquisition threshold. 
"(2) The head of an agency shall use the results of market 
research to determine whether there are commercial items or, to 
the extent that commercial items suitable to meet the agency's 
needs are not available, nondevelopmental items other than 
commercial items available that— 
"(A) meet the agency's requirements; 
"(B) could be modified to meet the agency's requirements; 
or 
"(C) could meet the agency's requirements if those require-
ments were modified to a reasonable extent. 
"(3) In conducting market research, the head of an agency 
should not require potential sources to submit more than the mini-
mum information that is necessary to make the determinations 
required in paragraph (2).". 
(b) REPEAL OF SUPERSEDED PROVISION.—<1) Section 2325 of 
title 10, United States Code, is repealed. 
(2) The table of sections at the beginning of chapter 137 of 
such tdtle is amended by striking out the item relating to section 
2325. 
108 STAT. 3392 
PUBLIC LAW 103-355—OCT. 13, 1994 
SEC. 8105. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW. 
(a) INAPPLICABILITY OF REQUIREMENT FOR CONTRACT CLAUSE 
REGARDING CONTINGENT FEES.—Section 2306(b) of title 10, United 
States Code, as amended by section 4102(b), is further amended 
by inserting before the period at the end of the sentence added 
by that section the following: "or to a contract for the acquisition 
of commercial items". 
(b) INAPPLICABILITY OF REQUIREMENT To IDENTIFY SUPPLIERS 
AND SOURCES OF SUPPLIES.—Paragraph (2) of section 2384(b) of 
title 10, United States Code, is amended to read as follows: 
"(2) The regulations prescribed pursuant to paragraph (1) do 
not apply to a contract that requires the delivery of supplies that 
are commercial items, as defined in section 4(12) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 403( 12)).". 
(c) INAPPLICABILITY OF PROHIBITION AGAINST DOING BUSINESS 
WITH CERTAIN OFFERORS OR CONTRACTORS.—Section 2393(d) of title 
10, United States Code, as amended by section 4102(e), is further 
amended by adding at the end the following: 'The requirement 
shall not apply in the case of a subcontract for the acquisition 
of commercial items (as defined in section 4(12) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(12))).". 
(d) REPORTS BY EMPLOYEES OR FORMER EMPLOYEES OF DEFENSE 
CONTRACTORS.—Section 2397(a)(1) of title 10, United States Code, 
as amended by section 4401(d), is further amended by adding at 
the end the following: "The term does not include a contract for 
the purchase of commercial items (as defined in section 4(12) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 403(12))).". 
(e) LIMITS ON EMPLOYMENT FOR CERTAIN FORMER D O D OFFI-
CIALS.—Section 2397b(f) of title 10, United States Code, is amended 
in paragraph (2)(B)— 
(A) by striking out "or" at the end of clause (i); 
(B) by striking out the period at the end of clause (ii) 
and inserting in lieu thereof"; or"; and 
(C) by adding at the end the following new clause: 
"(iii) any person who contracts to supply the Depart-
ment of Defense only commercial items (as defined in sec-
tion 4(12) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403(12)))". 
(f) DEFENSE CONTRACTOR REQUIREMENTS CONCERNING FORMER 
DOD OFFICIALS.—Section 2397c of title 10, United States Code, 
is amended by adding at the end the following: 
"(e) This section does not apply to contracts for the purchase 
of commercial items (as defined in section 4(12) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(12))).". 
(g) INAPPLICABILITY OF PROHIBITION ON LIMITATION OF SUB-
CONTRACTOR DIRECT SALES.—Section 2402 of title 10, United States 
Code, as amended by section 4102(f), is further amended by adding 
at the end the following new subsection: 
"(d)(1) An agreement between the contractor in a contract for 
the acquisition of commercial items and a subcontractor under 
such contract that restricts sales by such subcontractor directly 
to persons other than the contractor may not be considered to 
unreasonably restrict sales by that subcontractor to the United 
States in violation of the provision included in such contract pursu-
ant to subsection (a) if the agreement does not result in the United 
States being treated differently with regard to the restriction than 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3393 
any other prospective purchaser of such commercial items from 
that subcontractor. 
"(2) In paragraph (1), the term 'commercial item' has the mean-
ing given such term in section 4(12) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 403(12)).". 
(h) INAPPLICABILITY OF PROHIBITION ON PERSONS CONVICTED 
OF DEFENSE-RELATED FELONIES.—Paragraph (4) of section 2408(a) 
of title 10, United States Code, as added by section 4102(g), is 
amended— 
(1) by inserting £ifl:er subparagraph (A) the following: 
"(B) A contract referred to in such subparagraph that is 
for the acquisition of commercial items (as defined in section 
4(12) of the Office of Federal Procurement PoUcy Act (41 U.S.C. 
403(12)))."; and 
(2) by inserting "or (B)" before the period at the end of 
subparagraph (C). 
(i) INAPPLICABILITY OF CONTRACTOR INVENTORY ACCOUNTING 
SYSTEM STANDARDS.—Section 2410b of title 10, United States Code, 
is amended by adding after subsection (b), as added by section 
4102(h), the following: 
"(c) The regulations prescribed pursuant to subsection (a) shall 
not apply to a contract for the purchase of commercial items (as 
defined in section 4(12) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403(12))).". 
(j) INAPPLICABILITY OF REPORTING REQUIREMENT REGARDING lo use 2327 
DEALINGS WITH TERRORIST COUNTRIES.—Section 843(a) of PubUc "°**-
Law 103-160 (107 Stat. 1720) is amended by adding at the end 
the following: 
"(3) This section does not apply with respect to a contract 
for the procurement of a commercial item (as defined in section 
4(12) of the Office of Federal Procurement PoUcy Act (41 U.S.C. 
403(12))).". 
(k) AMENDMENTS TO ARMED SERVICES PROVISION.—Section 806 
lo use 2301 
of the National Defense Authorization Act for Fiscal Years 1992 "°*®-
and 1993 (PubUc Law 102-190; 10 U.S.C. 2301 note) is amended 
by striking out subsection (b) and inserting in heu thereof the 
following: 
"(b) INAPPLICABILITY TO CERTAIN CONTRACTS.—Regulations pre-
scribed imder this section shall not apply to a contract for the 
acquisition of commercial items (as defined in section 4(12) of the 
Office of Federal Procurement Policy Act).". 
SEC. 8106. PRESUMPTION THAT TECHNICAL DATA UNDER CONTRACTS 
FOR COMMERCIAL ITEMS ARE DEVELOPED EXCLU-
SIVELY AT PRIVATE EXPENSE. 
(a) 
REGULATIONS REQUIRED TO INCLUDE PRESUMPTION OF 
DEVELOPMENT AT PRIVATE EXPENSE.—Paragraph (1) of section 
2320(b) of title 10, United States Code, is amended by inserting 
before the semicolon at the end the following: "and providing that, 
in the case of a contract for a commercial item, the item shall 
be presumed to be developed at private expense unless shown 
otherwise in accordance with section 2321(f)". 
(b) ASSERTION OF RESTRICTION PRESUMED JUSTIFIED.—Section 
2321 of title 10, United States Code, is amended— 
(1) by redesignating subsections (f), (g), (h), and (i) as 
subsections (g), (h), (i), and (j); £uid 
108 STAT. 3394 
PUBLIC LAW 103-355—OCT. 13, 1994 
(2) by inserting after subsection (e) the following new sub-
section: 
"(f) PRESUMPTION OF DEVELOPMENT EXCLUSIVELY AT PRIVATE 
EXPENSE FOR COMMERCIAL ITEMS CONTRACTS.—In the case of a 
challenge to a use or release restriction that is assert;ed with respect 
to technical data of a contractor or subcontractor under a contract 
for commercial items, the contracting officer shall presume that 
the contractor or subcontractor has justified the restriction on the 
basis that the item was developed exclusively at private expense, 
whether or not the contractor or subcontractor submits a justifica-
tion in response to the notice provided pursuant to subsection 
(d)(3). In such a case, the challenge to the use or release restriction 
may be sustained only if information provided by the Department 
of Defense demonstrates that the item was not developed exclusively 
at private expense.". 
Subtitle C—Civilian Agency Acquisitions 
SEC. 8201. RELATIONSHIP TO OTHER PROVISIONS OF LAW. 
Title III of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 251 et seq.), as amended by section 5051(a), 
is further amended by adding after section 313 the following new 
section: 
41 use 264. 
"SEC. 314. RELATIONSHIP OF COMMERCIAL ITEM PROVISIONS TO 
OTHER PROVISIONS OF LAW. 
"(a) APPLICABILITY OF TITLE.—^Unless otherwise specifically pro-
vided, nothing in this section, section 314A, or section 314B shall 
be construed as providing that any other provision of this title 
relating to procurement is inapplicable to the procurement of 
commercial items. 
"(b) 
LIST OF LAWS INAPPLICABLE TO CONTRACTS FOR THE 
ACQUISITION OF COMMERCIAL ITEMS.—NO contract for the procure-
ment of a commercial item entered into by the head of an executive 
agency shall be subject to any law properly listed in the Federal 
Acquisition Regulation (pursuant to section 34 of the Office of 
Federal Procurement PoUcy Act).". 
SEC. 8202. DEFINITIONS. 
Title III of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 251 et seq.), as amended by section 8201, 
is further amended by adding after section 314 the following new 
section: 
41 use 264a. 
«SEC. 314A. DEFINITIONS. 
"As 
used 
in 
this 
title, 
the 
terms 
'commercial 
item', 
'nondevelopmental item', 'component', and 'commercial component' 
have the meanings provided in section 4 of the Office of Federal 
Procurement PoUcy Act.". 
SEC. 8203. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS. 
Title III of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 251 et seq.), as amended by section 8202, 
is further amended by adding after section 314A the following 
new section: 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3395 
*«£€. 314B. PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS. 
41 USC 264b. 
"(a) PREFERENCE.—^The head of each executive agency shall 
ensure that, to the maximum extent practicable— 
"(1) requirements of the executive agency with respect to 
a procurement of supplies or services a r l stated in tenSs of-
"(A) functions to be performed; 
"(B) performance required; or 
"(C) essential physical characteristics; 
"(2) such requirements are defined so that commercial 
items or, to the extent that commercial items suitable to meet 
the executive agency's needs are not available, nonde-
velopmental items other than commercial items, may be pro-
cured to fulfill such requirements; and 
"(3) offerors of commercial items and nondevelopmental 
items other than commercial items are provided an opportunity 
to compete in any procurement to fill such requirements. 
"(b) IMPLEMENTATION.—^The head of each executive agency shall 
ensure that procurement officials in that executive agency, to the 
maximum extent practicable— 
"(1) acquire commercial items or nondevelopmental items 
other than commercial items to meet the needs of the executive 
agency; 
"(2) require prime contractors and subcontractors at all 
levels imder the executive agency contracts to incorporate 
commercial items or nondevelopmental items other than 
commercial items as components of items supplied to the execu-
tive agency; 
"(3) modify requirements in appropriate cases to ensure 
that the requirements can be met by commercial items or, 
to the extent that commercial items suitable to meet the execu-
tive agenc/s needs are not available, nondevelopmental items 
other than commercial items; 
"(4) state specifications in terms that enable and encourage 
bidders and offerors to supply commercial items or, to the 
extent that commercial items suitable to meet the executive 
agency's needs are not available, nondevelopmental items other 
than commercial items in response to the executive agency 
solicitations; 
"(5) revise the executive agency's procurement policies, 
practices, and procedures not required by law to reduce any 
impediments in those policies, practices, and procedures to 
the acquisition of commercial items; £uid 
"(6) require training of appropriate personnel in the acquisi-
tion of commercial items. 
"(c) PRELIMINARY MARKET RESEARCH.—(1) The head of an 
executive agency shall conduct market research appropriate to the 
circumstances— 
"(A) before developing new specifications for a procurement 
by that executive agency; and 
"(B) before soliciting bids or proposals for a contract in 
excess of the simplified acquisition threshold. 
"(2) The head of an executive agency shall use the results 
of market research to determine whether there are commercial 
items or, to the extent that commercial items suitable to meet 
the executive agenc3^s needs are not available, nondevelopmental 
items other than commercied items available that— 
"(A) meet the executive agency's requirements; 
108 STAT. 3396 
PUBLIC LAW 103-355—OCT. 13, 1994 
"(B) could be modified to meet the executive agency's 
requirements; or 
"(C) could meet the executive agency's requirements if those 
requirements were modified to a reasonable extent. 
"(3) In conducting market research, the head of an executive 
agency should not require potential sources to submit more than 
the minimum information that is necessary to make the determina-
tions required in paragraph (2).". 
SEC. 8204. INAPPLICABILnY OF CERTAIN PROVISIONS OF LAW. 
(a) INAPPLICABILITY OF PROHIBITION ON LIMITING SUBCONTRAC-
TOR DIRECT SALES TO THE UNITED STATES.—Section 303G of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253g), as amended by section 4103(b), is further amended by adding 
at the end the following new subsection: 
"(d) An agreement between the contractor in a contract for 
the acquisition of commercial items and a subcontractor under 
such contract that restricts sales by such subcontractor directly 
to persons other than the contractor may not be considered to 
unreasonably restrict sales by that subcontractor to the United 
States in violation of the provision included in such contract pursu-
ant to subsection (a) if the agreement does not result in the Federal 
Government being treated differently with regard to the restriction 
than any other prospective purchaser of such commercial items 
fi-om that subcontractor.". 
(b) INAPPLICABILITY OF REQUIREMENT FOR CONTRACT CLAUSE 
REGARDING CONTINGENT FEES.—Section 304(a) of the Federal Prop-
erty and Administrative Services Act of 1949 (41 U.S.C. 254(a)), 
as amended by section 4103(c), is further amended by inserting 
before the period at the end of the sentence added by section 
4103(c) the following: "or to a contract for the acquisition of commer-
cial items". 
Subtitle D—^Acquisitions Generally 
SEC. 8301. INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW. 
(a) FEDERAL WATER POLLUTION CONTROL ACT.—Section 508 
of the Federal Water Pollution Control Act (33 U.S.C. 1368) is 
amended by adding at the end the following new subsection: 
"(f)(1) No certification by a contractor, and no contract clause, 
may be required in the case of a contract for the acquisition of 
commercial items in order to implement a prohibition or require-
ment of this section or a prohibition or requirement issued in 
the implementation of this section. 
"(2) In paragraph (1), the term 'commercial item' has the mean-
ing given such term in section 4(12) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 403(12)).". 
(b) CONTRACT WORK HOURS AND SAFETY STANDARDS ACT.— 
The Contract Work Hours and Safety Standards Act (title I of 
the Work Hours and Safety Act of 1962 (40 U.S.C. 327 et seq.)) 
is amended by adding at the end the following new section: 
40 use 334. 
"SEC. 108. (a) No certification by a contractor, and no contract 
clause, may be required in the case of a contract for the acquisition 
of commercial items in order to implement a prohibition or require-
ment in this title. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3397 
"(b) In subsection (a), the term 'commercial item' has the mean-
ing given such term in section 4(12) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 403(12)).". 
(c) ANTI-KICKBACK ACT OF 1986.—(1) Section 7 of the Anti-
Kickback Act of 1986 (41 U.S.C. 57), as amended by section 4104(a), 
is further amended by inserting before the period at the end of 
subsection (d) the following: "or to a prime contract for the acquisi-
tion of commercial items (as defined in section 4(12) of such Act 
(41 U.S.C. 403(12))).". 
(2) Section 8 of such Act (41 U.S.C. 58) is amended by adding 
at the end the following: "This section does not apply with respect 
to a prime contract for the acquisition of commercial items (as 
defined in section 4(12) of the Office of Federal Procurement PoUcy 
Act (41 U.S.C. 403(12))).". 
(d) COST ACCOUNTING STANDARDS BOARD.—Section 26(f)(2) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 422(f)(2)) 
is amended— 
(1) by inserting "(A)" after "(2)"; 
(2) by striking out ", other than contracts or subcontracts" 
and all that follows and inserting in lieu thereof a period; 
and 
(3) by inserting at the end the following: 
"(B) Subparagraph (A) does not apply to the following contracts 
or subcontracts: 
"(i) Contracts or subcontracts where the price negotiated 
is based on established catalog or market prices of commercial 
items sold in substantial quantities to the general public. 
"(ii) Contracts or subcontracts where the price negotiated 
is based on prices set by law or regulation. 
"(iii) Any other firm fixed-price contract or subcontract 
(without cost incentives) for commercial items. 
"(C) In this paragraph, the term 'subcontract' includes a trans-
fer of commercial items between divisions, subsidiaries, or affiliates 
of a contractor or subcontractor.". 
(e) CERTIFICATION REQUIREMENTS.—Subsection (e)(1)(B) of sec-
tion 27 of the Office of Federal Procurement Policy Act (41 U.S.C. 
423) is amended by inserting after "certifies in writing to such 
contracting officer" the following: ", except in the case of a contract 
for the procurement of commercial items,". 
(f) DRUG-FREE WORKPLACE ACT OF 1988.—Section 5152(a)(1) 
of the Drug-Free Workplace Act of 1988 (subtitle D of title V 
of PubUc Law 100-690; 41 U.S.C. 701 et seq.), as amended by 
section 4104(d), is further amended by inserting after the matter 
inserted by such section 4104(d) the following: ", other than a 
contract for the procurement of commercial items as defined in 
section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 
403),". 
(g) CLEAN AIR ACT.—The Federal Acquisition Regulation may 42 USC 7606 
not contain a requirement for a certification by a contractor under 
^°^-
a contract for the acquisition of commercial items, or a requirement 
that such a contract include a contract clause, in order to implement 
a prohibition or requirement of section 306 of the Clean Air Act 
(42 U.S.C. 7606) or a prohibition or requirement issued in the 
implementation of that section, since there is nothing in such section 
306 that requires such a certification or contract clause. 
108 STAT. 3398 
PUBLIC LAW 103-355—OCT. 13, 1994 
(h) FLY AMERICAN REQUIREMENTS.—Section 40118 of title 49, 
United States Code, is amended by adding at the end the following 
new subsection: 
"(f)(1) No certification by a contractor, and no contract clause, 
may be required in the case of a contract for the transportation 
of commercial items in order to implement a requirement in this 
section. 
"(2) In paragraph (1), the term 'commercial item' has the mean-
ing given such term in section 4(12) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 403( 12)).". 
SEC. 8302. FLEXIBLE DEADLINES FOR SUBMISSION OF OFFERS OF 
COMMERCIAL ITEMS. 
Section 18(a) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 416(a)), as amended by section 4201(c), is further amend-
ed by adding at the end the following new paragraph: 
"(6) The Administrator shall prescribe regulations defining lim-
ited circumstances in which flexible deadlines can be used under 
paragraph (3) for the submission of bids or proposals for the procure-
ment of commercial items.". 
SEC. 8303. ADDITIONAL RESPONSmiUTIES FOR ADVOCATES FOR COM-
PETITION. 
(a) RESPONSIBILITIES OF THE ADVOCATE FOR COMPETITION.— 
Section 20(c) of the Office of Federal Procurement Policy Act (41 
U.S.C. 418(c)) is amended to read as follows: 
"(c) The advocate for competition for each procuring activity 
shall be responsible for promoting full and open competition, 
P
romoting the acquisition of commercial items, and challenging 
arriers to such acquisition, including such barriers as unneces-
sarily restrictive statements of need, unnecessarily detailed speci-
fications, and unnecessarily burdensome contract clauses.". 
(b) REPEAL OF SUPERSEDED PROVISION.—Section 28 of such 
Act (41 U.S.C. 424) is repealed. 
41 use 264 note. 
SEC. 8304. PROVISIONS NOT AFFECTED. 
Nothing in this title shall be construed as modifying or 
superseding, or as intended to impair or restrict, authorities or 
responsibilities under— 
(1) section 2323 of title 10, United States Code, or section 
7102 of the Federal Acquisition Streamlining Act of 1994; 
(2) the Brooks Automatic Data Processing Act (section 111 
of the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 759)); 
(3) Brooks Architect-Engineers Act (title DC of the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 
541 et seq.)); 
(4) subsections (a) and (d) of section 8 of the Small Business 
Act (15 U.S.C. 637 (a) and (d)); or 
(5) the Javits-Wagner-O'Day Act (41 U.S.C. 46-48c). 
41 use 264b 
SEC. 8305. COMPTROLLER GENERAL REVIEW OF FEDERAL GOVERN-
note. 
MENT USE OF MARKET RESEARCH. 
(a) REPORT REQUIRED.—Not later than 2 years after the date 
of the enactment of this Act, the Comptroller Gfeneral of the United 
States shall submit to the Congress a report on the use of market 
research by the Federal Government in support of the procurement 
of commercial items and nondevelopmental items. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3399 
(b) CONTENT OF REPORT.—The report shall include the follow-
ing: 
(1) A review of existing Federal (Jovernment market 
research efforts to gather data concerning commercial and other 
nondevelopmental items. 
(2) A review of the feasibility of creating a Government-
wide data base for storing, retrieving, and analyzing market 
data, including use of existing Federal Grovemment resources. 
(3) Any recommendations for changes in law or regulations 
that the Comptroller General considers appropriate. 
TITLE IX—FEDERAL ACQUISITION 
COMPUTER NETWORK 
SEC. 9001. FEDERAL ACQUISITION COMPUTER NETWORK ARCHTTEC-
TURE AND IMPLEMENTATION. 
(a) FEDERAL ACQUISITION 
COMPUTER 
NETWORK 
ARCHITEC-
TURE.—The Office of Federal Procurement Policy Act (41 U.S.C. 
401 et seq.) is amended by adding after section 29, as added 
by section 1093, the following new sections: 
•«EC. 30. FEDERAL ACQUISITION COMPUTER NETWORK (FACNET) 
41USC 426. 
ARCHITECTURE. 
**(a) IN GENERAL.—(1) The Administrator shall establish a pro-
gram for the development and implementation of a Federal acquisi-
tion computer network architecture (hereinafter in this section 
referred to as 'FACNET*) that will be Government-wide and provide 
interoperability among users. The Administrator shall assign a 
program manager for FACNET and shall provide for overall direc-
tion of policy and leadership in the development, coordination, 
installation, operation, and completion of implementation of 
FACNET by executive agencies. 
"(2) In carrying out paragraph (1), the Administrator shall 
consult with the heads of appropriate Federal agencies with 
applicable technical and functional expertise, including the Office 
of Information and Regulatory Affairs, the National Institute of 
Standards 'and Technology, the General Services Administration, 
and the Department of Defense. 
"(3) Grovernment-wide FACNET capabihty (as defined in section 
30A(b)) shall be implemented not later than January 1, 2000. 
"(b) FUNCTIONS OF FACNET.—The FACNET architecture shall 
provide for the following functions: 
"(1) GOVERNMENT FUNCTIONS.—^Allow executive agencies to 
do the following electronically: 
"(A) Provide widespread public notice of solicitations 
for contract opportunities issued by an executive agency. 
"(B) Receive responses to solicitations and associated 
requests for information through such system. 
**(C) Provide jjublic notice of contract awards (including 
price) through such system. 
"(D) In cases in which it is practicable, receive ques-
tions regarding solicitations through such system. 
"(E) In cases in which it is practicable, issue orders 
to be made through such system. 
108 STAT. 3400 
PUBLIC LAW 103-355—OCT. 13, 1994 
"(F) In cases in which it is practicable, make payments 
to contractors by bank card, electronic funds transfer, or 
other automated methods. 
"(G) Archive data relating to each procurement action 
made using such system. 
"(2) PRIVATE SECTOR USER FUNCTIONS.—Allow private sec-
tor users to do the following electronically: 
"(A) Access 
notice 
of solicitations 
for 
contract 
opportunities issued by an executive agency. 
"(B) Access and review solicitations issued by an execu-
tive agency. 
"(C) Respond to solicitations issued by the executive 
t' agency. 
"(D) In cases in which it is practicable, receive orders 
from the executive agency. 
"(E) Access information on contract awards (including 
price) made by the executive agency. 
"(F) In cases in which it is practicable, receive payment 
by bank card, electronic funds transfer, or other automated 
means. 
"(3) GENERAL FUNCTIONS.— 
"(A) Allow the electronic interchange of procurement 
information between the private sector and the Federal 
Government and among Federal agencies. 
"(B) Employ nationally and internationally recognized 
data formats that serve to broaden and ease tne electronic 
interchange of data. 
"(C) Allow convenient and universal user access 
through any point of entry. 
"(c) NOTICE AND SOLICITATION REGULATIONS.—In connection 
with implementation of the architecture referred to in subsection 
(a), the Federal Acquisition Regulatory Council shall ensure that 
the Federal Acquisition Regulation contsdns appropriate notice and 
! solicitation provisions applicable to acquisitions conducted through 
a FACNET capability. The provisions shall specify the required 
form and content of notices of acquisitions and the minimum periods 
for notifications of solicitations and for deadlines for the submission 
of offers under solicitations. Each minimum period specified for 
a notification of solicitation and each deadline for the submission 
of offers under a solicitation shall afford potential ofiierors a reason-
able opportunity to respond. 
"(d) ARCHITECTURE DEFINED.—^For purposes of this section, the 
term 'architecture' means the conceptual framework that— 
"(1) uses a combination of commercial hardware and 
commercial software to enable contractors to conduct business 
V with the Federal Grovernment by electronic means; and 
"(2) includes a description of the functions to be performed 
to achieve the mission of streamlining procurement through 
electronic commerce, the system elements and interfaces needed 
to perform the functions, and the designation of performance 
levels of those system elements. 
41 use 426a. 
"SEC. 30A. FEDERAL ACQUISITION COMPUTER NETWORK IMPLE-
MENTATION. 
"(a) CERTIFICATION OF FACNET CAPABILITY IN PROCURING 
ACTIVITIES AND AGENCIES.—(1) When the senior procurement execu-
tive of an executive agency or, in the case of the Department 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3401 
of Defense, the Under Secretary of Defense for Acquisition and 
Technology, determines that a procuring activity of the executive 
agency has implemented an interim FACNET capability (as defined 
in subsection (c)), the executive or the Under Secretary shall certify 
to the Administrator that such activity has implemented an interim 
FACNET capabihty. 
"(2) When the head of an executive agency, with the concurrence 
of the Administrator for Federal Procurement Policy, determines 
that the executive agency has implemented a full FACNET capabil-
ity (as defined in subsection (d)), the head of the executive agency 
shall certify to Congress that the executive agency has implemented 
a full FACNET capabihty. 
"(3) The head of each executive agency shall provide for 
implementation of both interim FACNET capabihty and fiill 
FACNET capability, with priority on providing convenient and 
universal user access as required by section 30(bX3)(C), in that 
executive agency as soon as practicable sifter the date of the enact-
ment of the Federal Acquisition Streamlining Act of 1994. 
"(b) CERTIFICATION OF GOVERNMENT-WIDE FACNET CAPABIL-
ITY.—^When the Administrator for Federal Procurement Policy deter-
mines that the Federal Grovernment is making at least 75 percent 
of eligible contracts in amounts greater than the micro-purchase 
threshold and not greater than the simplified acquisition threshold 
entered into by the Grovernment during the preceding fiscal year 
through a system with full FACNET capability, the Administrator 
shall certify to Congress that the Government has implemented 
a Grovemment-wide FACNBiT capability. 
"(c) IMPLEMENTATION OF INTERIM FACNET CAPABILITY.—A 
procuring activity shall be considered to have implemented an 
interim FACNET capabihty if— 
"(1) with respect to each procurement expected to be in 
an amount greater than the micro-purchase threshold £ind not 
greater than the simplified acquisition threshold, the procuring 
activity has implemented the FACNET functions described in 
paragraphs (1)(A), (1)(B), (2)(A), (2)(B), and (2)(C) of section 
30(b); and 
"(2) for each such procurement (other than a procurement 
for which notice is not required under section 18(c) or with 
respect to which the head of the procuring activity determines 
that it is not cost effective or practicable), the procuring activity 
issues notices of solicitations and receives responses to solicita-
tions through a system having those functions. 
"(d) IMPLEMENTATION OF FULL FACNET 
CAPABILITY.—An 
executive agency shall be considered to have implemented a full 
FACNET capability if (except in the case of procuring activities 
(or portions thereof) of the executive agency for which the head 
of the executive agency determines that implementation is not 
cost effective or practicable)— 
"(1) the executive agency has implemented all of the 
FACNET functions described in section 30(b); and 
"(2) more than 75 percent of the eligible contracts in 
amounts greater than the micro-purchase threshold and not 
greater than the simplified acquisition threshold entered into 
by the executive agency during the preceding fiscal year have 
been made through a system with those functions, 
"(e) ELIGIBLE CONTRACTS.—For purposes of subsections (b) and 
(d), a contract is ehgible if it is not in any class of contracts 
108 STAT. 3402 
PUBLIC LAW 103-355—OCT. 13, 1994 
determined by the Federal Acquisition Regulatory Council (pursu-
ant to section 9004 of the Federal Acquisition Streamlining Act 
of 1994) to be unsuitable for acquisition through a system with 
full FACNET capability.". 
(b) TECHNICAL AMENDMENTS.—Section 18 of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 416) is amended— 
(1) in subsection (a)(1)(A), by striking out "notice" in the 
matter following clause (ii) and inserting in lieu thereof "notice 
of solicitation"; and 
(2) in subsection (d), by striking out "a notice under sub-
section (e)" in the first sentence and inserting in lieu thereof 
"a notice of solicitation under subsection (a)". 
SEC. 9002. IMPLEMENTATION OF FACNET CAPABILITY IN ARMED SERV-
ICES. 
(a) IMPLEMENTATION IN TITLE 10.—Chapter 137 of title 10, 
United States Code, is amended by inserting after section 2302b, 
as added by section 4203, the following new section: 
**% 2302c. Implementation of FACNET capability 
"(a) IMPLEMENTATION OF FACNET CAPABILITY.—<1) The head 
of each agency named in section 2303 of this title shall implement 
the Federal acquisition computer network ('FACNET') capability 
required by section 30 of the Office of Federal Procurement Policy 
Act. In the case of the Department of Defense, the implementation 
shall be by the Secretary of Defense, acting through the Under 
Secretary of Defense for Acquisition and Technology, for the Depart-
ment of Defense as a whole. For purposes of this section, the 
term 'head of an agency' does not include the Secretaries of the 
military departments. 
"(2) In implementing the FACNET capability pursuant to para-
graph (1), the head of an agency shall consult with the Adminis-
trator for Federal Procurement Policy. 
"(b) DESIGNATION OF AGENCY OFFICIAL.—The head of each 
agency named in paragraph (5) or (6) of section 2303 of this title 
shall designate a program manager to have responsibiUty for 
implementation of FACNET capability for that agency and other-
wise to implement this section. Such program manager shall report 
directly to the senior procurement executive designated for the 
agency under section 16(3) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 414(3)).". 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 137 of such title is amended by inserting siter 
the item relating to section 2302b the following new item: 
"2302c. Implementation of FACNET capability.". 
10 use 2302c 
(c) EFFECTIVE DATE.—A FACNET capability may be imple-
^°^- 
mented and used in an agency before the promulgation of regula-
tions implementing this section (as provided in section 10002). 
If such implementation and use occurs, the period for submission 
of bids or proposals under section 18(a)(3)(B) of the Office of Federal 
Procurement Policy Act, in the case of a solicitation through 
FACNET, may be less than the period otherwise applicable under 
that section, but shall be at least 10 days. The preceding sentence 
shall not be in effect after September 30,1995. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3403 
SEC. 9003. IMPLEMENTATION OF FACNET CAPABILITY IN CIVILIAN 
AGENCIES. 
Title III of the Federal Property and Administrative Services 
Act of 1949 is amended by inserting after section 302B, as added 
by section 4203, the following new section: 
"SEC. 302C. IMPLEMENTATION OF FACNET CAPABILITY. 
41 USC 252c. 
"(a) IMPLEMENTATION OF FACNET CAPABILITY.—(1) The head 
of each executive agency shall implement the Federal acquisition 
computer network CFACNET) capability required by section 30 
of the Office of Federal Procurement Policy Act. 
"(2) In implementing the FACNET capability pursuant to para-
graph (1), the head of an executive agency shall consult with the 
Administrator for Federal Procurement Policy. 
"(b) DESIGNATION OF AGENCY OFFICIAL.—The head of each 
executive agency shall designate a program manager to have respon-
sibility for implementation of FACNET capability for that agency 
and otherwise to implement this section. Such program manager 
shall report directly to the senior procurement executive designated 
for the executive agency under section 16(3) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 414(3)).". 
SEC. 9004. GAO DETERMINATION OF EUGIBLE AGENCY CONTRACTS. 
41 USC 426a 
(a) REPORT ON CONTRACTS NOT SUITABLE FOR ACQUISITION "°*®" 
THROUGH FULL FACNET CAPABILITY.—Not later than 3 years after 
the date of the enactment of this Act, the Comptroller Greneral 
shall submit to the Administrator for Federal Procurement Policy 
and the congressional committees referred to in subsection (d) a 
report on the classes of contracts in amounts greater than the 
micro-purchase threshold and not greater thsm the simplified 
acquisition threshold that are not suitable for acquisition through 
a system with full FACNET capability. 
(b) FAR COUNCIL DETERMINATIONS.—Not earlier than 3 years 
after the date of the enactment of this Act, and after consideration 
of the report of the Comptroller General required by subsection 
(a), the Federal Acquisition Regulatory Council (established by sec-
tion 25 of the Office of Federal Procurement Policy Act) may make 
a determination that a class or classes of contracts in amounts 
greater than the micro-purchase threshold and not greater than 
the simplified acquisition threshold are not suitable for acquisition 
through a system with full FACNET capability. Any such deter-
mination shall be submitted to the congressional committees 
referred to in subsection (d). Each determination under this sub-
section shall take effect 60 days after the date on which it is 
submitted to those committees. 
(c) APPLICABILITY OF DETERMINATIONS.—Each determination 
under subsection (b) shall apply for purposes of determining eligible 
contracts under section 30A(e) of the Office of Federal Procurement 
Policy Act, as added by section 9001. 
(d) COMMITTEES.—^The report required by subsection (a), and 
any determination made under subsection (b), shall be submitted 
to the Committees on Governmental Affairs, on Armed Services, 
and on Small Business of the Senate and the Committees on 
Grovemment Operations, on Armed Services, and on Small Business 
of the House of Representatives. 
(e) DEFINITIONS.—In this section: 
79-194 O—95—25 : QL 3 Part 4 
108 STAT. 3404 
PUBLIC LAW 103-355—OCT. 13, 1994 
(1) The term "simplified acquisition threshold" has the 
meaning provided by section 4(11) of the Office of Federal 
Procurement Policy Act, as amended by section 4001. 
(2) The term "micro-purchase threshold" has the meaning 
provided by section 32(g) of the Office of Federal Procurement 
PoUcy Act, as added by section 4301. 
(3) The term "full FACNET capabiUty" has the meaning 
described in section 30A(d) of the Office of Federal Procurement 
Policy Act, as added by section 9001(a). 
TITLE X—EFFECTIVE DATES AND 
IMPLEMENTATION 
41 use 251 note. SEC. 10001. EFFECTIVE DATE AND APPLICABILITY. 
(a) EFFECTIVE DATE,—Except as otherwise provided in this 
Act, this Act and the amendments made by this Act shall take 
effect on the date of the enactment of this Act. 
(b) APPLICABILITY OF AMENDMENTS.—(1) An amendment made 
by this Act shall apply, in the manner prescribed in the final 
regulations promulgated pursuant to section 10002 to implement 
such amendment, with respect to any solicitation that is issued, 
any unsolicited proposal that is received, and any contract entered 
into pursuant to such a solicitation or proposal, on or after the 
date described in paragraph (3). 
(2) An amendment made by this Act shall also apply, to the 
extent and in the manner prescribed in the final regulations promul-
gated pursuant to section 10002 to implement such amendment, 
with respect to any matter related to— 
(A) a contract that is in effect on the date described in 
paragraph (3); 
(B) an offer under consideration on the date described 
in paragraph (3); or 
(C) any other proceeding or action that is ongoing on the 
date described in paragraph (3). 
(3) The date referred to in paragraphs (1) and (2) is the date 
specified in such final regulations. The date so specified shedl be 
October 1, 1995, or any earlier date that is not within 30 days 
after the date on which such final regulations are published. 
(c) IMMEDIATE APPLICABILITY OF CERTAIN AMENDMENTS.—Not-
withstanding subsection (b), the amendments made by the following 
provisions of this Act apply on and after the date of the enactment 
of this Act: sections 1001, 1021, 1031, 1051, 1071, 1092, 1201, 
1506(a), 1507, 1554, 2002(a), 2191, 3062(a), 3063, 3064, 3065(a)(1), 
3065(b), 3066, 3067, 6001(a), 7101, 7103, 7205, and 7206, the provi-
sions of subtitles A, B, and C of title III, and the provisions of 
title V. 
41 use 251 note. SEC. 10002. IMPLEMENTING REGULATIONS. 
(a) PROPOSED REVISIONS.—Proposed revisions to the Federal 
Acquisition Regulation and such other proposed regulations (or 
revisions to existing regulations) as may be necessary to implement 
this Act shall be published in the Federal Register not later than 
210 days after the date of the enactment of this Act. 
(b) PUBLIC COMMENT.—^The proposed regulations described in 
subsection (a) shall be made available for public comment for a 
period of not less than 60 days. 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3405 
(c) FINAL REGULATIONS.—Final regulations shall be published 
in the Federal Register not later than 330 days after the date 
of enactment of this Act. 
(d) MODIFICATIONS.—Final regulations promulgated pursuant 
to this section to implement an amendment made by this Act 
may provide for modification of an existing contract without consid-
eration upon the request of the contractor. 
(e) REQUIREMENT FOR CLARITY.—Officers and employees of the 
Federal Grovemment who prescribe regulations to implement this 
Act and the amendments made by this Act shall make every effort 
practicable to ensure that the regulations are concise and are easily 
understandable by potential offerors as well as by Government 
officials. 
(f) SAVINGS PROVISIONS.—(1) Nothing in this Act shall be con-
strued to affect the validity of any action taken or any contract 
entered into before the date specified in the regulations piu-suant 
to section 10001(bX3) except to the extent and in the manner 
prescribed in such regulations. 
(2) Except as specifically provided in this Act, nothing in this 
Act shall be construed to require the renegotiation or modification 
of contracts in existence on the date of the enactment of this 
Act. 
(3) Except as otherwise provided in this Act, a law amended 
by this Act snail continue to be applied according to the provisions 
thereof as such law was in effect on the day before the date 
of the enactment of this Act until— 
(A) the date specified in final regulations implementing 
the amendment of tliat law (as promulgated piu'suant to this 
section); or 
(B) if no such date is specified in regulations, October 
1,1995. 
SEC. 10003. EVALUATION BY THE COMPTROLLER GENERAL. 
(a) EVALUATION REIJVTING TO ISSUANCE OF REGULATIONS.— 
Not later than 180 days after the issuance in final form of revisions 
to the Federal Acquisition Regulation pursuant to section 10002, 
the Comptroller General shall submit to Congress a report evaluat-
ing compliance with such section. 
(b) EVALUATION OF IMPLEMENTATION OF REGULATIONS.—Not 
later than 18 months afi^r issuance in final form of revisions 
to the Federal Acquisition Regulation pursuant to section 10002, 
the Comptroller General shall submit to the committees referred 
to in subsection (c) a report evaluating the effectiveness of the 
regulations implementing this Act in streamlining the acquisition 
system and fulnlUng the other purposes of this Act. 
(c) COMMITTEES DESIGNATED TO RECEIVE THE REPORTS.—The 
Comptroller Greneral shall submit the reports required by this sec-
tion to— 
(1) the Committees on Governmental Affairs, on Armed 
Services, and on Small Business of the Senate; and 
(2) the Committees on Government Operations, on Armed 
Services, and on Small Business of the House of Representa-
tives. 
SEC. 10004. DATA COLLECTION THROUGH THE FEDERAL PROCURE-
MENT DATA SYSTEM. 
(a) DATA COLLECTION REQUIRED.—The Federal Procurement 
Data System described in section 6(d)(4)(A) of the Office of Federal 
Federal 
Roister, 
publication. 
41 u s e 251 note. 
41 u s e 405 note. 
108 STAT. 3406 
PUBLIC LAW 103-355—OCT. 13, 1994 
Procurement Policy Act (41 U.S.C. 405(d)(4)(A)) shall be modified 
to collect from contracts in excess of the simplified acquisition 
threshold data identifying the following matters: 
(1) Contract awards made pursuant to competitions con-
ducted pursuant to section 2323 of title 10, United States 
Code, or section 7102 of the Federal Acquisition Streamlining 
Act of 1994. 
(2) Awards to business concerns owned and controlled by 
women. 
(3) Number of offers received in response to a solicitation. 
(4) Task order contracts. 
(5) Contracts for the acquisition of commercial items. 
(b) DEFINITION.—In this section, the term "simplified acquisi-
tion threshold" has the meaning given such term in section 4(11) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11)). 
SEC. 10005. TECHNICAL AND CLERICAL AMENDMENTS. 
(a) TABLE OF CONTENTS AMENDMENTS.— 
(1) OFFICE OF FEDERAL PROCUREMENT POLICY ACT.—The 
first section of the Office of Federal Procurement Policy Act 
(41 U.S.C. 401 note) is amended to read as follows: 
"SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
"(a) SHORT TITLE.—This Act may be cited as the 'Office of 
Federal Procurement Policy Act'. 
"(b) TABLE OF CONTENTS.—The table of contents for this Act 
is as follows: 
"Sec. 1. Short title; table of contents. 
"Sec. 2. Declaration of policy. 
"Sec. 3. Findings and purpose. 
"Sec. 4. Definitions. 
"Sec. 5. Office of Federal Procurement Policy. 
"Sec. 6. Authority and functions of the Administrator. 
"Sec. 7. Administrative powers. 
"Sec. 8. Responsiveness to Congress. 
"Sec. 9. Effect on existing laws. 
"Sec. 10. Effect on existing regulations. 
"Sec. 11. Authorization ofappropriations. 
"Sec. 12. Delegation. 
"Sec. 14. Access to information. 
"Sec. 15. Tests of innovative procurement methods and procedures. 
"Sec. 16. Executive agency responsibilities. 
"Sec. 18. Procurement notice. 
"Sec. 19. Record requirements. 
"Sec. 20. Advocates for competition. 
"Sec. 21. Rights in technical data. 
"Sec. 22. Publication of proposed regulations. 
"Sec. 23. Contracting fimctions performed by Federal personnel. 
"Sec. 25. Federal Acquisition Regulatory Council. 
"Sec. 26. Cost Accounting Standards Board. 
"Sec. 27. Procurement integrity. 
"Sec. 28. Advocate for the Acquisition of Commercial Products. 
"Sec. 29. Nonstandard contract clauses. 
"Sec. 30. Federal acquisition computer network (FACNET). 
"Sec. 30A. Federal acquisition computer network implementation. 
"Sec. 31. Simplified acquisition procedures. 
"Sec. 32. Procedures applicable to purchases below micro-purchase threshold. 
"Sec. 33. List of laws inapplicable to contracts not greater than the simplified ac-
quisition threshold in Federal Acquisition Regulation. 
"Sec. 34. List of laws inapplicable to procurements of commercial items in Federal 
Acquisition Regulation.". 
(2) FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 
OF 1949.—^The first section of the Federal Property and Adminis-
40 use 471 note. 
trative Services Act of 1949 (41 U.S.C. 471 et seq.) is amended 
to read as follows: 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3407 
"SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
"(a) SHORT TITLE.—This Act may be cited as the Tederal Prop-
erty and Administrative Services Act of 1949'. 
"(b) TABLE OF CONTENTS.—^The table of contents for this Act 
is as follows: 
"Sec. 1. Short title; table of contents. 
"Sec. 2. Declaration of policy. 
"Sec. 3. Definitions. 
"TITLE I—ORGANIZATION 
"Sec. 101. General Services Administration. 
"Sec. 102. Transfer of afiairs of Bureau of Federal Supply. 
"Sec. 103. Transfer of affairs of the Federal Works Agency. 
"Sec. 104. Records management: Transfer of the National Archives. 
"Sec. 106. Redistribution of functions. 
"Sec. 107. Transfer of funds. 
"Sec. 109. General sup^y fund. 
"Sec. 110. Information Technology Fund. 
"Sec. 111. Automatic data processing equipment. 
"Sec. 112. Federal information centers. 
"TITLE 11—PROPERTY MANAGEMENT 
"Sec. 201. Procurement, warehousing, and related activities. 
"Sec. 202. Property utilization. 
"Sec. 203. Disposal of surplus property. 
"Sec. 204. Proceeds from transfer or (disposition of property. 
"Sec. 205. PoUcies, regulations, and delegations. 
"Sec. 206. Surveys, st^dardization, tmd cataloging. 
"Sec. 207. Applicability of antitrust laws. 
"Sec. 208. Emplo3mient of personnel. 
"Sec. 209. Civil remedies and penalties. 
"Sec. 210. Operation of buildings and related activities. 
"Sec. 211. Miotor vehicle identification and operation. 
"Sec. 212. Reports to Congress. 
"TITLE III—PROCUREMENT PROCEDURE 
"Sec. 301. Declaration of purpose. 
"Sec. 302. Application ana procurement methods. 
"Sec. 302A. Simplified acquisition threshold. 
"Sec. 302B. Implementation of simplified acquisition procedures. 
"Sec. 302C. Implementation of FACNET capability. 
"Sec. 303. Competition requirements. 
"Sec. 303A. Planning and solicitation requirements. 
"Sec. 303B. Evaluation and award. 
"Sec. 303C. Encouragement of new competition. 
"Sec. 303D. Validation of proprietary data restrictions. 
"Sec. 303F. Economic order quantities. 
"Sec. 303G. Prohibition of contractors Umiting subcontractor sales directly to the 
United States. 
"Sec. 303H. Task and delivery order contracts: general authority. 
"Sec. 3031. Task order contracts: advisory and assistance services. 
"Sec. 303J. Task and delivery order contracts: orders. 
"Sec. 303K. Task and delivery order contracts: definitions. 
"Sec. 303L. Severable services contracts for periods crossing fiscal years. 
"Sec. 304. Contract requirements. 
"Sec. 304A. Cost or pricing data: truth in negotiations. 
"Sec. 304B. Multiyear contracts. 
"Sec. 304C. Examination of records of contractor. 
"Sec. 305. Contract financing. 
"Sec. 306. Allowable costs. 
"Sec. 307. Administrative determinations and delegations. 
"Sec. 309. Definitions. 
"Sec. 310. Statutes not applicable. 
"Sec. 311. Assignment ana delegation of procurement functions and responsibilities. 
"Sec. 312. Determinations and. decisions. 
"Sec. 313. Performance based management: acquisition programs. 
"Sec. 314. Relationship of commercial item provisions to other provisions of law. 
"Sec. 314A. Definitions relating to procurement of commercial items. 
"Sec. 314B. Preference for acquisition of commercial items. 
108 STAT. 3408 
PUBLIC LAW 103-355—OCT. 13, 1994 
"Sec. 315. Contractor employees: protection from reprisal for disclosure of certain 
information. 
"TITLE IV—FOREIGN EXCESS PROPERTY 
"Sec. 401. Disposal of foreign excess property. 
"Sec. 402. Methods and terms of disposed. 
"Sec. 403. Proceeds; foreign currencies. 
"Sec. 404. Miscellaneous provisions. 
"TITLE VI—GENERAL PROVISIONS 
"Sec. 601. Applicability of existing procedures. 
"Sec. 602. Repeal and saving provisions. 
"Sec. 603. Authorization for appropriations and transfer of authority. 
"Sec. 604. Separability. 
"Sec. 605. Effective date. 
"TITLE VIII—URBAN LAND UTILIZATION 
"Sec. 801. Short title. 
"Sec. 802. Declaration of purpose and policy. 
"Sec. 803. Disposal of urban lands. 
"Sec. 804. Acquisition or change of use of real property. 
"Sec. 805. Waiver during national emergency. 
"Sec. 806. Definitions. 
"TITLE EC—SELECTION OF ARCHITECTS AND ENGINEERS 
"Sec. 901. Definitions. 
"Sec. 902. Policy. 
"Sec. 903. Requests for data on architectural and engineerir^ services. 
"Sec. 904. Negotiation of contracts for architectural and engineering services. 
"Sec. 905. Short title.". 
(b) AMENDMENTS FOR STYLISTIC CONSISTENCY.— 
41 u s e 401 note. 
(1) OFFICE OF FEDERAL PROCUREMENT POLICY ACT.—The 
Office of Federal Procurement Policy Act (41 U.S.C. 401 et 
seq.) is amended so that the section designation and section 
heading of each section of such Act is in the same form £uid 
typeface as the section designation and heading of this section. 
41 u s e 471 note. 
(2) FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT 
OF 1D49.—^The Federal Property and Administrative 
Services 
Act of 1949 (41 U.S.C. 471 et seq.) is amended so that the 
section designation and section heading of each section of such 
Act is in the same form and typeface as the section designation 
and heading of this section. 
(c) REPEALS OF EXECUTED PROVISIONS.—The Office of Federal 
Procurement Policv Act (41 U.S.C. 401 et seq.) is amended— 
(1) by striking out section 13; and 
(2) by striking out the first section 15 (which made amend-
ments to the Federal Property and Administrative 
Services 
Act of 1949). 
(d) CROSS REFERENCE CORRECTIONS.—Section 3552 of title 31, 
United States Code, is amended— 
(1) by striking out "section 111(h)'' and inserting in lieu 
thereof "section 111(f)"; and 
(2) by striking out "759(h)" and inserting in lieu thereof 
"759(f)". 
(e) CONSISTENCY OF TERMINOLOGY WITH CUSTOMARY USAGE.— 
Section 304(b) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 254(b)) is amended by striking out "per 
centufB" each place it appears and inserting in lieu thereof "per-
cent". 
(f) ENACTMENT OF POPULAR NAMES OF CERTAIN ACTS.— 
(1) MILLER ACT.—The Act of August 24, 1935 (40 U.S.C. 
270a-270d), commonly referred to as the "Miller Act", is amend-
ed by adding at the end the following new section: 
PUBLIC LAW 103-355—OCT. 13, 1994 
108 STAT. 3409 
"SEC. 6. This Act may be cited as the 'Miller Act'.". 
(2) BROOKS ARCHITECT-ENGINEERS ACT.—Title D
C of the 
Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 541-544) is amended by adding at the end the following 
new section: 
"SEC. 905. SHORT TITLE. 
"This title may be cited as the 'Brooks Architect-Engineers 
Act'.". 
(3) BROOKS AUTOMATIC DATA PROCESSING ACT.—Section 111 
of the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 759), as amended by section 1439, is further 
amended by adding at the end the following new subsection: 
"(i) This section may be cited as the 'Brooks Automatic Data 
Processing Act'.". 
(4) BUY AMERICAN ACT.—The Act of March 3, 1933 (41 
U.S.C. lOa-lOc), commonly referred to as the "Buy American 
Act", is amended by adding at the end the following new 
section: 
"SEC. 5. This Act may be cited as the 'Buy American Act'.". 
(5) WALSH-HEAI-EY ACT.—The Act of June 30, 1936 (41 
U.S.C. 35 et seq.), commonly referred to as the "Walsh-Healey 
Act", as amended by section 7201, is further amended by adding 
at the end the following new section: 
"SEC. 12. This Act may be cited as the 'Walsh-Healey Act'.". 
(6) JAVITS-WAGNER-O'DAY ACT.—The Act entitled 'An Act 
to create a Committee on Purchases of Blind-made Products, 
and for other purposes', approved June 25, 1938 (41 U.S.C. 
46-48c), that was revised and reenacted in the Act of June 
23, 1971 (85 Stat. 77), is amended by adding at the end the 
following new section: 
Miller Act. 
40 u s e 270a 
note. 
Brooks 
Architect-
Engineers Act. 
40 u s e 541 note. 
Brooks 
Automatic Data 
Processing Act. 
Buy American 
Act. 
41 u s e 10a note. 
Walsh-Healey 
Act. 
41 u s e 35 note. 
SHORT TITLE 
"SEC. 
Act'.". 
7. This Act may be cited as the 'Javits-Wagner-O'Day Javits-Wagner-
O'Day Act. 
41 u s e 46 note. 
Approved October 13, 1994. 
LEGISLATIVE HISTORY—S. 1587 (H.R. 2238) (S. 2206) (S. 2207): 
HOUSE REPORTS: Nos. 103-545, Pt. 1, accompanying H.R. 2238 (Comm. on 
Government Operations) and Pt. 2 (Coram, on Armed Services), 
and 103-712 (Comm. of Conference). 
SENATE REPORTS: Nos. 103-258 (Coram, on Governraental Affairs) and 103-259 
(Coram, on Arraed Services). 
CONGRESSIONAL RECORD, Vol. 140 (1994): 
June 7, 8, considered and passed Senate. 
June 27, H.R. 2238 considered and passed House; S. 1587, amended, passed in 
lieu. 
Aug. 23, Senate agreed to conference report. 
Sept. 20, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 30 (1994): 
Oct. 13, Presidential remarks.