S. 1264

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80S01268A000500030003-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 227
• Document Creation Date: December 19, 2016
• Document Release Date: January 4, 2006
• Sequence Number: 3
• Publication Date: October 1, 1977
• Content Type: REGULATION

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[COMMITTEE PRINT]
OCTOBER 3,1977
95Th CONGRESS
1ST SESSION
Calendar No.
S. 1264
[Report No. 95- ]
IN THE SENATE OF THE UNITED STATES
APRIL 6 (legislative day, FEBRUARY 21), 1977
Mr. CHILES (for himself, Mr. ROTH, Mr. HEINZ, Mr. RIEGLE, and Mr. PACKw00D)
introduced the following bill; which was read twice and referred to the
Committee on Governmental Affairs
OCTOBER , 1977
Reported by Mr. -------------- with an amendment
(Strike out all after the enacting clause and insert the part printed in italic]
A BILL
To provide policies, methods, and criteria for the acquisition of
property and services by executive agencies.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SHORT TITLE; T-41-4-:4-4 042 CON ' `S
4 SR6T T- 1. (a) SHORT TITL ~T h;s Act may be c ted
5 as the "Federal A'nq isition Act of 1977-
6 (b) TABEOFCONTENTS.
Se, 1. St,ert title, table of ^ n4,..,t.
Se, 2. Declaration ^'~ polipy.
gee. 2 Dc f, ; t;
ITLE I ACQUTC'T~i`ION METHODS;
ryTTT~TI A1NC_
See. 401. **thedo,
see. log. Regulatory com lianL.
b
II
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2
TABLE OF CONTE TS r +? ,
TITLE I ACQ rm ~ 73.x. -can a~r~r. mrmrtrr. SEA-LED BIDS
a ~ `Tro =.n-azrrrv-rs-
See. 901. ria fo se.
See. 209. Invitation for sealed 444s,
See. 209Evaluation, a and ftetifieations.
4TION BY COMPETITIV
E
11V1, S
See. 901Criteria for tisel
Sec. 302. Solicitations.
See. 909. E " t ca '~ -~}E-~T~.
ticiooivixj~=irvr'cx3 cc
rr4
See. 904. Single source exeepoie .
ceo. 305. P rice . ^tt...;,. and AGS dAtfb
See. 906. A eeess to zcev3`ci~ ,s
rccc~~-v:
TIT* CnrTre
P TT) Ch A Qi
pee. 401. Criteria for
See. 109Solicitationse? cos:
TMME V GENERAL iRVISI^ONS
r
Se 502 Warr n+y . s+ , n+:..gent fees.
tion o.
See bog Ad ILaZiC payt? and ~vqgvess payments
See. 506.. R, of t; ; a +~ eI a eyes.
pee. 507. I inati and s.
See. 608. _ ' 'i_ig i i?ffi4iee.
-P% A- A- W-- -9. G@VeMR4eat SRF-Axpillwn
See 540 . Tarot i e338
TITbE VI i
SO-OW. 601. PA-legatiga withi;; An +' Hey,
See. 609. Joint aequisitiepis-.
TITI T II PROTESTS
See. 701-Purpose
See. 702. Jar-isdietieft:
pee. 703. P-V-O@eO4i4gs.
SAM. 20-4. f! ..1
PECIARATION OF P01616
2 SEC. 2.rajFINDJ#4
3 that
SAP'. Sol. Apaendments
See. 802. R&peals.
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(4) the 1
2
':
become eiitda ted
f
-a
4
d
d
,
r
reli
e
, an
-- ee e
-- -
3
4
use
5
eftlit . cf^;cnn eness
6
7
the C
8
th t
has found iia m?
mi
lid
d
e
mi e
new conso
ate
9
etat
t
r- b
i
d
d
u
e
ase
s-nec
-e
-;
10
(4) f
.
i
t
12
a
13
roduct vit
re
t
{ Lion l
? bane
f
p
y
s
s o
--o
14
om
etitive
c
p
15
d
oods services
?
n
.
g
;
16
-F
{B}
-
17
18
li
eot eco
etition
an--
ati
f
eapp
-
mp
c
on o
new
teehfi
l
19
o y.
e
it is - hereb
(b) Voi~iey
doe ed t
ti
f
c
20
y-
.
o e
e
yo
22
23
#r6--
24
25
3h ratter of
i
t
pr
va
e
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~?
entnrnr Ce by LV9l hLY)n
1
2 eeiitives mid co stri
3 eiieett -Tiinova ieii ati.1 t ation
to nh yrolnn?y as n ~-. v., n
new
eds that prosp
latitude to exorcise
judgffieftts in @&
8 alternative
9 e eth t , afidl sifia4i business u.Y er-
10 mitting all qualified a d interested sources to
11 for an grew through Government conf-r?acts
12 ate contractors with the oppnr, _
13 rrity to earn a pro
III ;ante with the tIrib ti on maAde to meeting
Vtt V2~OM2-TLi~7Gt7t12Ig pi
15 needs anti with nnrv
16 in other markets rf
1171 similar to the tenhi
18 (6) sa~ egu r/i
aeowantability
20 of c ffeetv;e comp fii.ttiion-and
21 (7~ fur-the fr anl'ieye these goals, it e-po
o_
22 , of the United Stater to rely on and promote f t'
u Z'I-VL
23 compet.t?on, the efforts of several acting inde
24' ndc tly of each ether, to r cvrnnfl to a public need-+y
25 reating devnlopini
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3 ties to eperfefmed, pcrfor i =e
___e eombitifttion of these. Effeeti-,~e
to pfespeetive sellers-
of information required to wend to the pttbli
need
9 (4 independence of action by >. , z? aft
10 se r;
11 (9) etwbilftbilit~~ to the Goveffiffiefit of altertift
12 tive offers that pf evid range of eei4eept, design
13 -performance, pri^e, l;fe eewnefshipedeto' O~~ V IUe
14 n 'o . delivery
,
16 tftti0ftj evaluation, and a`T'ar of ? ntracts . and
17
18 small sellers
21 (a) The ter-ffi " "
22
23
or services for the direct benefit
Zreated, developed-,
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1 nstrat?d l
ZrE)xirvmscrtevC~nd r L-84
iin~f ^n the particular public R004-;
s
3 s,m liei+ tion '9~i-S
tidorvzr, ~ 1r~e ~eti'vr
4._ ro
5 (b) The ter >
6 - eetie 101 o?tifle 5,
7 StateATT. Code; ride :,,ttdeiA establishrfleitt as defined--by
8 section 404 of title Fv=
9 sha4l 4}ot. itieltide the General Accounting ; a miii-
10 Va+? d rtv,, n+ a efi' seetion102 of t; 5, meted ets
ted by 11 -tale Ted States Post l c .
12 (e) The ~efitt " geiteyMead" the heftd of-ar itteftfts 13 ed in subsection (b)-
14 (d) The of ft ocuring a :+Tuyffl
16
17 vision and d;reet;on ofthe preen
fe-)
The `- p >
includes personal property
-intorosts therein, >7 t excludes ,
20 property in being and leaseholds and other into sts +h
21 . (f) The term--`-sets
22 a--------- - upport-typ and professional.
-4eta1 cost-'
24 sumod or c be eensume in making an acquisition ,e
25 achieve an @m4 purpesi 4; and may ec n a? +, 'n-
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1 ~itect, rec urri ree?rring d othe re ate nnata
~ -yam' yyvn ~____ ,
2 curred, o -oSt date e incurred in design,, development
3 pre duetion, Oper-ftti@14, tainte ee, diSPOSRl tMiRiRg, and
5 each factor is s a ccppilnal le
c%wV.ir iwvvvi~--~7~ur~''~c.
6 (h) The term "price r-
8 des, quantities, and
11 colici on, propose 4 award,, or `aw rd of a CO contract made
11 CGI C[ ~I p~SI Gi LU~D2ZiLGl.[
12
13
14
Q.
E
17 S TO a) 414 nynnntiye agencu hall "'acq irn
o v Y Y r
18
19
20
the ?nlicia ecifie in
21 ' doh it title TT of this Act; or
22 (2) the eeff+Petitive- -ii@gotiation ,
23
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1 (b) These methods of ftequir-kig property
2
3 ba is of the nature of the product of service being neguir-e
3 cL.lll.] the r uc. ~ ,
4 the ni?+ni~mstnr~ of tl; cqisiton, and other criterin['.C T~1s sot
.1 .,i ...~.. +v ...TI CCI set
5 ford, itt this A nt or as ,may be established by the Adtttittis
Procurement nl Policy,
6 nor of theOfee of FcdoACGr
7 EEC T_L ATOnY COMPLIANCE
8 SEe. 10:2. (ft) The A lv t r(Ar-t V~+r Of er ?R the (l
A of Fed-
9 oral 140et revv.evit Policy is authorized and died, pi t
411
e a thori ty eon ferrel llv Public low iv3-10vc"rnd su4
-L0- t" t
11 jeet to the ?need res set f -rth in s'Qek p4l law
12 (1) _ )
i thin two years ilIiafter the date ct ^-^ L
15
16
17
18
-22
sakea single, simplified, uniform
Federal fegiiiation 4"
d rns prescribe this A Et and to s AIAI? ?l, iirnne 1
Sr 22 ~
fo ? ifiSHFiRg 66 iRPWP With such Proyiisions by all.
(2) to make periodic studies of the senvf th-e
- lip wily s- A.t- -
(191, 11"he of tl~n O inn of Federal p
,rent Poliey shall include in his annual report required Under
11V 1 V11V V
Goof 8 of 'lrblicL 93-4-0-0--a- report of lala oct,z)++'
7er- this section includini
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1 Yllem~iltatin> of and ~-00with the qu rn>~nv,tr of
TII1T17tL1:~
2 this specific reductions intIhe use of Feder-a! -_gwei ea,-
recom tioii for ti+n c,isions in this
vi4oR_-of-4aW
i ACQUISITION 111Y ETITIVE
SEA16ED BIDS
rJ n The 1 ITERT}A FOR i-SH
S, 201: competitive sealed bids method -shot!
() the a+iticipatell total eo[iLntract price exceeils4he
Z
ftfriotiftt- IJe eili .
14 (2) the lit1need can be
1.5
16 affd
17
18 sufficient numbe of qualified su
a..
Pete for and able to perform the nntfLct? and
(4) suitable nrocduicts o so l
>"ily-
25 -5- iie ti io- available for acquisition is T,t
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to Vilepefe the ptir-ehws` dese ,pt+o,+ and to entry out the
1
2 fequ site ad min styrntiye prnce~l n,v,c~ np~l
7
3 (6) the operty nr ;s to be acqu reel an /
4 o'? used- within t e limits of tl+n Unite S+nten pa ;+~v
~~~--pro
5 possessions ? m4d
6 (7) the price for the ro_cyn'a+cr;nn has not
7 been estal'1" he 1 by or pursuant to 1nAT'
9 . ?Y,'Pv;+fttGT~Yierl for- settled bids shZL[T ll be 202. (ft) The TI If fC~"t"1L C1TLI 1Jii
10 formally advertised in such a way that 11 (1) the time p .+ to opening the bids will be n?f
b '`
12 fe1Ant to permit a ective-compe4tion; a d
13 (2) the pu phase desc iption 'R',;11 bn access,l,le +n
14
b it rl ers except where restricted
15 to bidders qualified under duly a thorizeil set aside
p
17
19 than Pfiee.
20 (e) To the extent
21 of the Agent , purchn a d(
needs
22 t;nnal terms to permit " vnr;ety of d stinet pro uets or serv
23 gees to qualify, or-, when a partic lar type of product car
24 i0e must be desig, Bd, i . terms of perform epee aspeni fien_
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1 tionci which stipulate i range of acceptable nllnrnn~eriC+; n. _o
3 (d) The p eGparatioII"
6 written just; fnntiov+, v of to be planed i1i a~~~~.-t o{~e
V
1+nnm tancen l~ic t~
7 official @V nr+~t fi11 le, b delineat ng the r~
+ "
nhinvlh u re the use of 4etftiled product specifications
the piirc ase ancnti+;pti n, ?
(c) Where the use Of funnf;nm n or performance pp _
enn'ttio _, make it c bl to plan for award primarily
price, the co offiee;r R4ay request the
submission of nnnriend teehni cal proposals and subsequently
;ncnn an invite t;np ~n^+ c7eale 1-.i4 lim;
17 the nnrc ape description.
1.8 bids-shall ,AND NOTIFICAT-1
1
19 :?-203. ~ ~ All be opened publicly at e
20 41140 and plane stated in tlhe invitation.
21 (ii) n warr ~rc shamll l -+n wade to th responsible bidder 22 ~ ,ncn l?,l conforn~c to the invitation and is mmostft4 n
23 ta bn" nn to the govertnrnent, price spa +L. ~nn+nrs
-azrir-vvrr~--~uvovra
24 c; d.
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y (n) Nn+,ne of such N nlTrccll bII Til de in w Tb17*g
L 1.., +l, , +Clrl reasonable Pf0ifiPtIAOSS p11-i1
l oti fie,1
all ofrier 14d,l ,- l -,
c, - l
''- T --AT ?~4j '' f N BYter 4PETTgI4-wj
61O JTj 1 /h T/l \T
(IIHIPERHt H.
( S i o A701. be
,S HSed iH the
9 LJ.1- 11.e. r.i_ini'. Ted total non+,'ac
1r the a,11 oanl J)r 'l
11 the etiti .n
id
1') (2) the icsii ies ,if33 meet e+ the e n, ;r.'ierccrr'
~ , z ac~q ~ccrccti ic}}l - crErcr- xt c zr--z~
to c4,41i-in? y 0 (14) Set for+1l
in qeetioii 201 for use of nnn-ipetitiyo naiad bi
dT TCTrfl A IIITl1TT C,.
art - 83. {~,~l~citations fog-eels shall 1, ,
of g411441e S444'"-es HO AS to obtain
19 With Sect.oT, 8 (e) Of tclrlH-F3tffft~' 1{ y I' t,with eo
20 of time solicitation to l)n ).Fo; ide(l to otllnr i,~terested onnrne
21 lip(ifi
i,s not expecte to be tl'n' g?
.
, ,,,,
~ C~ factor in 14 144` king an award, 1. f1.e
1,o+1, the methodology a,Yld the ti?n_1T:~_it importalwe-4- fill
A ant factors to be '1- im 'nn-?T(+.+,,,
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1.3
,[ ~ZC Tcni+ fiiial _elleet on. In any i a if p.t n ' .nl dnd
'f l J ~ ZS is S ~[Ol CCCCG Cl a~
1 7 y evftlufttion
3 shalll be Wsed to the e~rtetif .}r Zhe
4 tottil lost tomeet the, ,z-'.-dc 'tiffsir'ed at3tlt"not on the e st
5 of `-~ ,,,,,-1Pletilr ?1. - iiti .+. l
-~ rr~~- c~cr~---4
zz'~c
6 - . in.-the "+1.
7 factors R,hieb. 1 outcome
,s
9 To 4 I N' + n+; 1 1 sV111;V11.(l lI1v '+~+:~,11nJ
~ICl lull,
+4ott'1
1.0 s hal lea , g O, 1 1' 4 itf r ..
l
1.-1
1.2 . b rltc a--
1' +i , . 1 i i-1?V 1,.,11 t.. t e,c.ibe 1' r elttii-aetei-
leialrjii;vcrnlc,i .
14 4 ; t-' b n 1 011 ft -siirr"
15 Obtti
16 +;dl zmpnto+.f.
L V \~
17 (d) if either
18 ..dn.vl1a fflti, itf ~ l= +1 Soli 1'+ +'o,-, ,ll l'nlLl Hl.lln . 1";' c4
l~ lulu uv
19 ifigs of the 1,1, .' needs requirements, nl 'ifi-ea.+,on_f
20 iiitetit shall lem 4+oall
21 Rii equal l,nui~+
A i'o
22 FWATWNSS
23 c.. 6'0,9. () Written
24 1 + , 1 ,'+l, All ,Y11-111 "d t4T
25 ti;=r
eot
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3 (b) When .a
f
4 select ii the basis c + , ors containe4 in tirecolic --oft I-e 5 tier whether ?c develop demonstration, or
6 delivery, to the tttttxi m extent ,
7 it sufficient test or cvaltmtion
8 iftfefffiettiett beeeff,, ay ait.,bly to w the ehoieetH--l}
~. 4:._
10 (?) Until ra iI1Z000~~II ,, ~_~(' __ +1
b
11 ftwttf-4 slittil not be a : ~l
12 es.
13 (d) Awttf-d shall 61 m.1-odue to otte ,or mo.- f-SPON19ible
14 .,
15 u14~^d i the solicitation `' N
16 tifiefttjott of , a 11
18 stT~ofiLi-e
19 x: 01. (a) Cm
20 sz~ed in sections 302--p
21 (1) the g
22 award, m~is i
23
24 sours :a not aav-ailabi' public exigency preya ls; or ft
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1 atio nl declared by the Co 6
b
2 Presidai;
therefor, :+i.^,. and "onfo'"'~V11111,J s with c _K
1~;7 111 ~, U.11~,~ 1~V111 1VAJ l.f.l~ll 1 VGaw
fliorized by the Offiee-of
? a
~u
11 of the pr-opefty or settviee to be qui
12 and t-l, nnme of the PY~i osp ectiye ry ur-ces
V11V l vu,lee . e w
13 =a such cases, eotttntets nifty be 1 ? de by n
14 ffert! selected
section 3K)
16 of section 305 (e) AA I)e r-equired iia the ease of b
19 section any ?
20 (b) Where 4here is no eommere
QVy this JeRjo,j, and the 11 111V,
+~ + U..~ivutwm+:ai of CJ
22 -head a + AJ that
23 prodflet
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4 PRICE ANAIkY 4 AND COST 71 1T 4
5 9 -a-ny n ft-y ,_ ?-l "age,
6 e -~ ~ ~ e ire e any contract or subcontract, the con
7 -e =-sh 111 e required tostj
n+
8 or identify i 4R ing, With his proposal -price + Lewrip
9 one- le-reaso able ess of th offer. Each such nontracto
716
ti1 it, to ce-best 04 tLrro-wr
edge d belief, tAt piiee d a i ect e, eeffipletej and
current mss of the reed ,on betw?
(which da+ , shall o 1 F --ti`15 }Y}~ ' 4e t1 the date-of
agreement 014 he }iegAtiat
Shall use price ai,al>ais ten
the rep, song ~l mess of offers where
(1) the price of th@eont ?act, subcontract, change
contracts
n,? wm ndifi cation is less than $500,000; ? (the
officer may at his disc:ret}en,however request --prleing
d74t., or cost data as vide49-r- Section 305 (b
)
^wts changes OF mo ificat
where flip, total amount exceeds the Amount speoified
itt rectio /10 of this
24
25 establ;she.l + lnn, h
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?n Of comrnercinl item cold in subs-taritial rv-t Wn_
t? t? s to the gevi era p? Wi n, ? or
the ) tYtprice is already t by law or rnrnt,~n Rio
i7
(4) negotiation 7?T iLIJ VII v base 7 o1 a4eq+fate mine :
7 f O ctr~tor; o
7
f-~ ` as- r-eeo . n re+i +i ,~e purchase under
10 (b) Whefe tile 60-Etmet of Su.
11 &--tward pu u-an - -to- -n e-tinn 3 --or--far- _other -mege-
040
12 l? +e,7 @0448 04S when th e
the co tractor avid any ubco t,nctor shat be
14 (4)
15 a to ,bn ;+ id writing, with pro-
16 r, ~e
17 offered price; ? and
y-&-at -14P of the date -ftg-F,&O
` l inlt date shall be a&close"as
or agreement on the viegotinted P400-)-.
24 +1^ etc under AA4-4ic14 e nerd-E,'cn ti nvi ?n rnnn?re ,,,-i~n
yr orrrcLCO c oxr-
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1 Goyerfttfteftt~ itteittdittg profit or fee, , -
2 e-xclud any - GZIT1+ 7L1 sums by t YV11 ill~l 1l 1 ?,V 111ZCT be ? aet e,1
Ti 7
3 bly the Agency --t-
4 tl contractor 111,.~o? 1,ftn+n? , a to 1 such
5 1's P~ f1=t, o furnnirsnhed at lam,~ w1 ,.
cxcr~cca ar~= ~$lrr~i"ts" hot zttictrrrrce,ate,
7 (4) The A ? he r
pro-
8 yi 6 emsections 305-(a) ) ? S?,el, shall wftivef
itt
9 ell~~'Ie n written if
9
im l,n+i t,nn C, to 11'ILIn t ,1~
10 of theeo e1 file~~ 4h the s why the
11 signs of sections 305 (a} d (b) > s+ be waive
12 (3) At t.Y three yeCIT;, 111,111>10 ?+l the third
l L 1Y- C
er enactment f thlis Apt, tile istrpt,,,, of th
13 ?tv aftZJS
;,~VU.L WI.[~
Y~
,nn+ Polio - s 11 r-eview and Ifffty
15 F64,0 the thvesholdw-04,(A
16 I3 or -,io> her.,tn~
17 of law, to -Adopt
18 i>rrr7 the costs of xxx la b, and za At t sixty
c on c arxx- txx c o v crc~v~ir csrr
19 days in advance of its n(xn.,tiye dge, the -J dm;>ist??1 1 lI
cr t _.4rcanl negotia,tn,l or amended tinder
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19
1 this t4le, the Comptroller r al of the Un tea States an
4 mZnts, paper n, a records or -'f:other deta +~ r+,,.,~+~? a a
~r-Grp"
5 his ?bees tractors +l"'+
+
6 rel ting to the no n+ z? wvu
12 e subcontract *.. h Tore' -
13 the A head act w F rrei e of the
14 CoR4ptFoReir-Gen-et -e wind be in the public
15 interest
.
tfflinatiott,s by b
a i t oN E-a-) shall be-eendueted only when
18 snee. Multiple ittsPee'
19 -tions and exetminationg-
21 mayimum t-e - practicable by o b 1-
23 tions to ~ the Offiee of Federal
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y 11TT T)TT COM ETTTIVI
2
,
3 IPJA FOR US
4 SE4 0 (a) Tho ^competit;ve small purchase- '
5 `li're" method may be ?ser!in the acq isitiov, of property ftft4
6 e ricer under reggula y nnthorizerl nr -Y`eseribed- )y--the
7 nine of Federal Procure
r
8 wl-,en the anticipated total c t acct mice does noiT Teed
9 $10,000 b,,t,- in lieu of this method, the nontr inM efc^r
10 may use 04r of theme
11 titles 1 e of thisA
20
(b) At least every three Tl rs, beginning with--the
14 third year after nn , l of t Act, the A dministra+e,?
15 of the Office of Federal
16 the prevailing costs of labor and materials and main revise
ion 401 (a) er Ally prior nevi-sieB-
18 thereof, v,e+~x,;+hstand;ng any other-pro of law,
19 reflect 41 increase or decrease by at Mast 10 per cent'er'
20 in the is of labor and materials .-Au least sixty days in
21 tP the A rlministrator shall re -A&I,-un-c-0- Of its P-d-feelti-A,
tivel y with earlier increases, represents 50 per centu-m or
24 .
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22 to Congress any, such rei i
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21
5 to the mftAffiIiffi nvt v't
11 promote 1?
94. 402. The + .n n+-;Nb ro 11- r may make all award
n. r `y1 - - a -'r ;_ n~ n ry ~r `~ r~ y ? rc v u --b'8--th e
6nyl+,.n ,whiel}_ m
En texeep that the
if nn,-,+rnnt;v,ro shall "?+
13 be ased 4411def Hey
14 (b) The preferred contras p for nil nnntracts cb I-
-.f finftfteW
15 1 a fed pr-inn type.
16
17 with optionsIn, shorter work increments are urv prefer
~ rc ci 1s?u - to
18 longer -yes Pe
19
20 W ' E AGAINST @ONzNOENT FEES
21
/n~ of this
23 technical r non a ender seetinn 202
` ' t1V. 711U
24 contain a warrantee die contractor that nn person nr sell
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22
1gen~as~een eotid ~,~? ~et~edoolieit er seems
2 the coot et--upon--an.-agreement -or understanding--of a-eorm-
3rrission; , hrol~~rage; e3 eentingent fee, e
4 bona-ode--empfeyees or bona-fide established -eomm-epia>- &r
5 sellin-agencies-- naintain ad-by- the _ con# aetor---f ey thh r-
6 pose-of-seeurinb business; and that.-for a ~y ea iefa
7 -tien -_of -the- -arrantee th~~ a ernrrrent -may -annul the--eon-
8 raet withoat ak~ility a ded~iaG turn the -contract- price or
-sent--of-the-eo nfssion; percentage-
10 brokerage; or eonfingent f~ e.
11 '-A~LLATIO3'F r-.- N -EEJECTIONS-
12 G: 593 { 4 W-here. the-- oontraPAng-o eer--deter es--
13 that it is in the hest--interest- of--the--jGovernment,.-the-eon
14 -tracing officer, . -,
15 ~4 }ithdravu sal pse erer-pr~3or to the
16 ee r}n on--of c%# t.. -
17 ? "ccl u=n ~itat r sea1e bids ijefore-_bid
18 opening or- after---hid--opening - but-- before-award;--or-
19 forpropos&l and--reject---alb-
20 o fees. -
04 _--When - cfnestod,---thc_co trcting -sfe-er--shall fall-
22 inform
23 -the-- e it o --. Of ?z off er-or bi{ ;--
for-
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23
wise provi&4--hy-law,
4 or serx ces for r per4O nov } - iii-exoo C of {it-n -years, when-
5 appropriations nre ava able ai4d adeq ate for pnymen r-
l) he first fisea yeef an the /, gei4ey heed determines
`U- t~-,
b
7 ~-1-} the Governmen+ need the property -_er.
8 -P.r+?~ z e 4- einr Fed overtf3.$-
;aEd
t- interests-ef-
11 -the--T nited--States- Irk-- eneeirag -effective competition-
12 or promoting--economies- in- performance aRd .
14 c nntr--P-oli'( MaY grant e ycepti
15 1i t ert imposed -subsection } -
- ire
16 4n--sueh--form --and -of such--content --as the -Administrator-- may-
17 r- ire by is-ice-the
18 hest interests sf--t e- GoV-ernncn - e~ y of e ch - uch
ennt~ exception gran Matt he ~ot;s ~~,~ -
19 certification -and And
20 to the chairman- of the Committee nn Governmenf p
21 t nn s aan-d-dw e mitts on A ppropri a ti nn s of --theoz e
1 1 1
1{ epr son t a tl~$S - ` nd
-from
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24
It -a} i tc4--?unds -'arib-inally availahle for._.jerfor1fmi-e--of
2 li ennt?ae+, or rre a, a}1a13le pr r ~e t si it
3 pmpe~4y--o r ,`I ervices~ n-Zln "ot otherwise IbIirn to
fiptwo-
4 uriati s mndn `nl4-e 4or Ltlh fits.
5 X D .k OB, -P?"R '.i -NR--I-1Ti0CT1G SS- PAYMENTS-
6 SEC.
{a} ~1 eti,e a;gee 3z
7 f =tee a}~+~e; partial; grog ess~ er ewer pa -
8 intn und-e -eontr acts ; and
9 (2) ice- Tnert =n---seit
-limitin
-ono of ogress -p-aym -to- small- lc;~=~~~,a ~eern.
12 be made i excess of-the
13 iormaftee M-4-d- iSh-All In. --ex+ aid---con#-act -price:
14 ()-When progress b t d e m `de, the Govern--
b 3 Ym
15 e~ gall l zTc tlo- to t1 ro pa ~ ~ c ?= ftni,
atl~er ravisie ~s-sf--1&w, that-tl-tle. ay-
} `ion of the rnn tractor, or proceed
18 inm in b^nkri'p ~. ~re4 l eri or seeuri-tp
19 inter-est.
20 11 - L bt l --,r~JuJ sectintl 1111 may be--
i ode-o -u oneqate._.security- and --dete urination 1}
__dL t_-t0.jIo so__wnlli(i he in the public inter-
23 e 9t. Su h seenrity may .111.-the- form of_ lien -in favor - of-
24 the G ernment ?m-the property contracted for, en _tlre- ba}-
25 once err &n aceoi mt in which- -suet payments are -dept;
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1 or on such rnnnti++=T-Acquired fergerformane~ ?- # e--coti
2 the par ?iPS may deg. Thiis4ie
3 al other Ii-enc._
4 VEMISSTO --I4,TIPA-E:--PATT A-nzr
5 ~ ' 59 he ar m= ~ ~.* fpm - e T
b$ }~ {3F$1~$ .o TTni+n~ C `tee
6 head the,
7 remit -AI or part as he considers inct and equitable 4--any
;Y" ed damages provided by the contract for delay
nnrforminro the ~tri ~""~"'7
DETERMINATIONS AND FINDINGS
11 .SEG 507, -( ermions,
12 , provided for by this Act Ii
13 tracts in.raiyidu L--o with-
14 (b) Each ant. ati
-upon
15 written findings nf_#, -nffe ta` king the determination -or
16 ~nni inn an.7 sh ll be etained in the n rria~ nnnt~e.
17 !Y /~~TIIT RTRlTTTT 73=TDINO INFORM A RiOIT;
18 ~ PSp
18 SHe. ;08. / fty--j _thntrnntiv rn officer or ftiiy other
e J
19
20
we that i _nTrbid, pro-
liol-
21 provisions of he shaI-I r efer that bid, propos l nr ct.
22 offer through tl'.8 RPPrOPr-'P'te agency o icia" ai eetly.. e
23
aggregritt#e
24 a4i-OR.
25 (b) Upon the request of the, A of
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26
United States, the Agency heed shall make . a,l..ble to tl,n
e ttorHey General inforrnatio which the Attorney General
considers necessary anal re
nrot othw-q- -,40-664144 '-by
tr?nct laxys Or Other ctatii'tn enforced by the Attorney General
(c) The Agenohea
the Attorney General in cony investigation and nrosec tiP4
-EI OAA'I 'l'og t h-0- hifQr l-lati6R 'Provided in $4111-Sectioll (a+
o (1)) or frnrn-I otl~inr investigation and prosecution in other.
antitrust matters
Cxn . 509.
/a) NotwFt cRllf lb n
14 2' illnnce reouirevnerits for a pe iod ri t} -- exceed two
nnEE~r1'ckF'~431=4 {}~)f'}cal--W~?~6' -1~-~"rfl~'
years to that part of ft
15
16 arm, y -maltag ? d--tee&o
c Ora xxia ,e from- (-,,,
75per cen_
tof 'that part of a eoithi e or's-
18 ?1eration as measured by
25
`acted under commercial and competitive Government icon-
' ", ' "ram nt awarded firrmrr fixed-pprjcce
type vontr-acts or where ice Was the deciding or a cignifi_
` u~ C?n_itzv1 a waiver
sfiillt -rili e---t.
center from Government but not General A-ccoanting Of-
fice suinveillai4ee req i}?ent~~in .
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27
agency manAgment, pr
p
11
(2), dete-Fminations He reasonablenes.s- -of --- 4fA-
2) provisions of the Cost
10
11, revoked at any time if the A gen,cy
aFdu-
nt.T-for indenendnn+--r areh
provisions of the 1 enegoti tioy, Act.
e' itive? aetiv 4s--- s icIeI44o-- ~}t
15 MAINTENANCE OF REGULATIONS 16 Notwithstanding 7o~-of tifle
17 jTTT. r r of tbi A n~'_n01_.w ii tithe , prov s , re ulations,
20
21
22
23
Government contracts
u.
the 0fce
Pohey, promulgated or- i-n- eff ect one U-LUU na g ty4ays-
date of enactment of this Ant shall remaiw-inef
feet tin til repealed._-}y__4wdcr---o1
a
nhce of Feder
or until thn__ .
25 Of enact dlis Act, whichever
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28
L is earlier. No regulation preserved by operation of this see
R414istrator of the Federa Procurement nnlicy,
3
4 (bI Th..L /, a i tra''vi pr-~~r~A,
.tiTGrrC[riiilr
he O1 `' f Federnl_Pro_
reg lotions preseryed- e
TITLE V1--DELI V Arii 1 C7 S~ ATION OF A UTRORITY
TZT~~1Z'1~1 ~Z
DELEGATION N AN EXECUTIVE AGENCY
SEC. 601. Each gefie a delegate vi c> n thi n
t the authority to grant waivers-
under seetion r -pro* ed that the -Puthoffity to make
12 fee l tinny under sectio v 202 and 304 through 30-6-
13 shall not beleegated below th-e-eevice! of the head of
14 prnnnrinrr activity.
5 :()INLf
16 SEC. 602. (a) To fa
17 services by one expeutiv
19 (1) the A mency he within his ageney
20 delegate functiovronrs and assign Tespons bides ring
21 to the acquisition;
22 (2) irehee he-Ads of two or more executive aagencies
23 my nroreemeY,t
24 sign acquisition voq?oi4sibilities fromo eney to
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another oft~ho e agencies to
@h ployee of another of thou?vav agencies; . n
ii
4 may create joilit or nmnlAnnrl of,nnc to exercise 191-
5 lion functions and
6 (b) Subject to the provisions of
i j
7s _Code
(1) aipr "t. riation- i'rrrJ- AA I1albro 1nr &_-q }S1tiQl.:..4f
9 property au & Sec
10 be m "vailable ?b ilp-11 for ac uisit - of
al et
12 authorized -b -# e- h e rotest fn
12 r~nn nvc~l ts,l illy he m at-
14 i e flip awardo ctr,
15 "n'' l~rr'itten ~-'ndin~ti? that the interes n~ }he TTni}r l State
r,
16 will iict permit awaiting +l,e de si0-1
17 (4,1011-0-41--all' ~A! nd lia'nv,' cdf urther, That the C ptr?nn
18 adi 1sed prior to ,he .,war 04 c?nl, finding.
b'
19 (c) With respect to It,
rotesl'?d to hires 1n annnrd~lnnn With 1"1 t
1111 T
-Gem
22 -such- solicitation, proposed
23 -port with law or regulatioi
24 to such 'declar`fl; tion t---Coi'nptrollcr General i:nay furil,e-
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31
declare that the ee tr-act shall be tent':,,a+e1 for te ._
4 SEC. 703. (a) Procee" 1 s1,.,11 be ;?Forma to t1,.,.
5 fullest P-39-tent possible.
6 (b) Each &cisioit-of the Gompti-oller Oe ?nl AtRII he
7 signed b ?'r' or his delegee and shall be b nd "'b .itp,&'l'
8 ititei-ested ? ,.+? , el ? a ? n ... the e *' s
b iiiivv? .,+ tb o
inyoly ?'1~ n,.pc? of +hn rlnn;~.; nn s M 11 be F?,mis n,l -, - e
9 '`
x r-~ai-vngencv ~-
the exec-vvutilragency or - ies
11 i?V
12 (e) (1) All decisions shall be d, l ,,,?nyf,)+ly, eel
c.istn?t 114441-m-, flue Reed "o ?-
1p3 vvu v
14 con-rdw-n-ce with- egulath s_4
16 ) There shall be no ex PaAe
-the
17 '
18 ,l , ,vr n,l to r, " clnrl inFnrm l contacts w tl, the r,nr+;na_fo
1 i
19 ProGe
20 (`-') A confer01 ce
21 wever, no transcripts shall he re
-4eeisioii
22 be per-mitt edl ?+ the Com
proyirle~l the Co,v,n+rnllet?
23 the request --of _the interp terl party, r
?,1
24 Gvmwat and each ether interested party shall be furnished
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82
1 a copy. Costs of stieh t..n,nsei1' ptI7Ts and inCTv1CGs shall 1, I~C~l
7riw
2 by the req esting ?arty
t7
(4) The C mptror of e General --4a413- _..tttt: geof e
mal-d'scover,r~~r'roce? "nr 'ti'rn"cy
5 i,.~.~'-riand ac?n c"l,'n~jronas- q4 ~ +-vh 'p' i~
034 -4
-
7 taking of e`iden}ce. In cn of refusal to obey a subpen
8 by a p n who recdevrc)
on n , ;uf ,?; r.}
9 ~" tl~i11~0 jrisdicti a T~ir C ed-Sit e-~2
10 c ti theCourt, upon application (if 1-41w
11 'G
12 order =quires to - pe? r-- before the C o rtlke
e ~} ~lcc~'~tion - to -ii.5 -4l+e- sei-son- --ttt
} L SEe t(}- liodii6e +lile boon ksJand roe
i , er both RY PeVs 'A'110
mss
are -ttb
t' awatdofa contract do s
22 not comport With, law OF regul`t1$1n, lie May further de
23 the entitlement of an appropriate party to bid and proposal
24 ?repara+;n? sorts. In P71e11 ses,-t1 Comptroller Geiief 4
toobitheorder of--the--
iatit-ttendain-rce of witnesses for the
a:
(d) The Comptroller ei ral._a? {~
any t rlstar,},i ~? be frivolous or )W1" won its
lace, does not state- L basic for _t. e4
remand the matter to the executive "genE4 r ?nvol za
o ~R
R4a
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(f) The Co"44pfrnllet
`2 Peet s of t tle,,,.ei to nB ? 1 --s l-l be-
3 paid pro pfly by
+l ~ 8E1 1 - enc - eonee i iz o f3
4. funraa :4~VAUAWP for tile- Purpose of tile
pariate, shall-1-1
SE 701 The (yo ptirlln, General shLCCfall perfo~07rm ' i4
CT7Zr lL4 L
a~e such- ti'ules and rnbmulatio -r
1
12 e'~.eeutie - _ r...tt --.protes-t--k li-'Eil?s-~n
nginers ew
13 his i thority to Otll@y nr
i-eh-eests.
on A4 4,423 - amended by striking out ", after hi : 4
,tisoment an. d-oonl nnrnpntiti-ve lura. 77 in thn f;rat .
1 u~
nn thn page at forty
Tz;-.S.C. 446
bej
(b) Sections __ " (d) and 1 0-l. of t- ..Yr2e-, - D epra)ment -4
A grieul+uro Organic l z of 194 (58 Cta+ 734, 7
736; T
b
24 "
1TLT.]1S-f'-H-
25
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34
Soctioi4 r -o title 10, United Stfttes Code,
-s- nien'ded by str,k, g e last sentettee
(d) Sections 4504 andL-0504 of title 10, United States.
Code, ar, 1 ,e_..a?a .4~ -out
u a v States" vii iti g7 b
"United States" and hiset-ting in liett thereof a period.
r '~- n 9r 5-oftitle 10, Unites
8 (f) gle'ti4,C s? (2) of eo--~---,ti
v~
9 10, 1948 (62
Stat. 1283 12 TT G: (r 17010(b) (2)4-,4;
12
13
14
15
strik ng out the a sentenee
f e-j---of.
-(84 S tat. 1784; 12 TT C n? n
,.
(h) Section 708 (h)-of the Act of ititte 27, i93-,m"
`9.2 Stat. 1279; 12 T 0. 1747
phi)) , is amended by--.tr a a nu t the proviso tt=h mod-.
i Seetion 712 of the Act of Jane 27, 1934,
(62 tat. 1281; 12 U.S.C.
-
y striking out '.and with 1u+ +~ard
to section 3799 of the R~~ s~ ~1es".. O
theAct of june 26, 34,
amnendedOctober1~, )- (84 StY t, 1914;;; 12 U.S.CA.. -is 1;88 (b) ) , amender, by -striking out the last sentejj@e.
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11 of the Revised Statutes".
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35
1968 (7-2 Stat. 986; 45
3 by striking out 6 --3700 of +1,,, zsc~ Statutes, s
5 Ptff`
6 Aft9e eeT--
7 :.? ty ~ bczc a i,t Administrator ?lt of loffn
~iiczc
12 "SEre
~rTTne ForeqtHirvi eeiq authorized 6irrarv
14 speeial deviees, test
15 models, or parts + eof, to be used (a) for- expeAffiente,
16 adaptability -to tion to detefffline their sttitftbi4y for- of 17 designed fir)--ice.
20 ftfid not to -exceed
21 $10,000 emote item or purchase >
22 itled `AnAct to
23
.=rte
25 its approved Oetober 9,-41.962 (76 Stat
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36
10;2) ~ 'is U-d -I -- strilking c [ 38:1
2 regard O thePiovisio of sect o`er 3709 of the Revised
Statutes of te hUnited States (4' U.S.C. ".
19 ?1 (b) (1) of the A 4
3 Jiily 26, 1964 (79 S . 44; 0 U.S.C. 931a (a) T 7
6 (1) , are amended striking out any references to see+'nr'
7 3709 of the Revise 7 Stt
s United States Code.
77
4- 1-
e'_, .. U.S.C. e.
10 (79, stat. +228; 20 JP--s
1.1 iog out ", ..7 +o .. `? 8709 of a.l_ Revi
12 ".
(p) Seetigii 7 of the A et of Tlnn, ,v l,nr n~~
7 1945, fts
1 eJ
14 "'"'ended October 10, 4-949 r 7
15 is a en by 's ,ti- ki g out ", all withou regard -to sccttoa
17 (~) Seettott 707 of - -60
18 S% .101 ;227 U.S.C.
19 " ithout regard to etioit 39 of the Revised Statut
b ~T700 i~ruTtzr~s
20 (r) Seetio 22 (e) (7) of the Aet of Petem er :)7
21 f9.70 (84 SH, t. 1643,--2!
22 l)y . S441,449 -out ", ali-4-*
23 Revised Statutes, as n
23
See6ott (Hu" of i1a Q- i et of No-eetiijwr 7 4 19
? to competitive biddin^ "
i
44- Of-Ae
25 (s) (b) of the - of - --a-- 81, 1954 (
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3. r
2 provisions o et o "' 9709,-Re-
3 vised Statutes (41 U.S.C. 5) "%
en l ed by triI'ikitig out "section 5 of title 41" an d in-
serting in lieu th of the "Fedefit! equisitie r?neT-of
7 1977 7) CC' ttiid by b
f1
8 e~~, 000..
9
1o isli amended by suhstltuth.b
11 "work an sti!ikipg out the re a=nc er of the section.
:12 (v) m,teAct of Oetober- 10, 1040, amended --{-. tts
14 J ,)y striking out section 2 and su 1e ections (n) atid (d) G113~
1u``~cc~ au~~
15 ctt't
1s
Statutes, airaifiettdd'w iii sub.
Jttly 27, 1 965 (79 Stat. 276;-44
19 erenees to se4io+i 3700 9i the Rev
(w) Seetiati 11 of -the Aet of June 80, -LUO
6---(49
21
22
23 U.S.C. 46), a ended to read as follows
24 "
25 clusinv. of repro entotinnc tenth respe
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2 industries as have bn
4-Lab-or-2-'.
4 (x) Section 356 b) of the Aet of Jul 1, 1944,-,u
s
5 -Ad-d-A-d- October ,
6 (b) ), is amon`7ed by strik a out the references to seetigH
7 8709 of the Revised Sw
8 and by striking out tlae parenthetical phvas@ < goti tion
b
9 of-otherwise) " in clause-44),
10 ty- portion 1(bTS A Act a-- ctober 1 a (5 =
11 S tat 4 26; 42 TT tS. 1L5 !b h l 1 Amenda 4.;x 5tar 1 1126 C. `v) "t'^lT,.ine
12 out the ,^eference +n 2709 of tl4 e Revised Statutes
13 thefirstparenthetical usesand by striking out th fjr-~A
14 p
15 (z) Section 202
of OgtoL
16 2 ; 1 -1 12 (b) is amended amended
17 the reference to seetio
na~t~,^
18 (p} Sectio a thn A ct of SeptembezT1951(4-
19 Stat 307; 42 I C. -4-5) is me =dea by striking out
20 clause (a) ,ate amenn iD
Linder p 8entr~t on p eo t-pl"
22 fiNPJ-fAA basis--- Ad] --net exceed6- per egnt~~ of t4iA esti-
23-Atwed- P-A-st".
24 (bb) (4) and 104(a) (2) of the
25 Xuly 14, 1955, s
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1 Stat. 486, , 42 U.S.C. ,- is
11
by stFikiiag out the -referettees to seetion 8709 -of
States @ode.
follows,
-mod- m
cc (b) The Commissioti may make avetilable fef! use in
-such
of its equipmeat ftnd fu-r,~, as it rfta7y deem desirable."-.
1954 (68 Stat. 928; 4-2
n.
13 by strikifig out the two i tend"i ediatcly i y-n ,nn r
14 the last sentenee in s on.-
15 of the n+~
16 (68 Stftt. 929; 42 U.S.G. ,
17
18
19
20
22
to tion 5 of fifle 41, Uthted
23 made tinder tracts
-of
avid seeur4y, n"_
upV11
y-he
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ise mode under
2 r ade ccn fl, ni,f c?eg r?c~ fnt v~rnc is inr of sec~Einn _37O
3 , Y7 amended, upon c'ce ifica-tr it -y
4 the ~n,tiin~iccinn that s c~t a firm is nec ssatry in f}tn intern~?_f
6 tl}eJCom miss e hatact
7 t cable. -arti"l an "d Ear-- 3`c-y be r,-,ade u dep
8 ON-44-4-tracts for such purposes."
9 (g) Section 203 (e) el the Act of A i 13, 19 T
10 (84--Stat. 115, 4U. 4372 (eT) , .is a ~ d by strik-
11 ingout thereferencesto- f 3709 of-the
12 of title 41Unitcd States Cod
13 (1111) 4,
-+ eet e -7~ n~ ~e et-e J e 2~ ~~~ 49
14 46 Ij.~0.-1193) , is ax mended by striking cam
15 subsection by striking'
16 E f nstructio or reconditioning of vessels, ands4 subset
17 tion (c), and by renumbering ubsections (b) and (c)
18 as (a) arid (b) , rnspe
19 14Section 8 of +h,e= t of oembef 30, 1965
20 (79 Stat. 894; 49---U.S G 1638 (a) ), isamendby
21 _strikinb g out the references
of the R~visea
22 $ tes an-d- to section 5 &-441c--44,
Code,
23 ag Eli (1), and by stri ing out pamgraph- (3}.
24 title 38, United States C , IS-
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2 (ft) Paid etil of subseetioii (e)
statutes ^ repealed.
4 Siie. 802.
Sentence in Subseetief-f
a6468, 454
7212, 0535, and 9540 of titl 10, r0 United States y@de;
see
41
9 $ the Aet of March 3, 1875, affteiHled
10 (18 Stat. 440; 24 U.S.C. 96) ; se tion 3of the Act of
ar+fgtf
12 07) ctio s 602 (00) fifid 602 (14) (10) of the Tire
13 . al Pfopert and A dmnist-fativ vices Act as amended
10 (a) and 10 (b) of
17 bn 10, 104-.0, as October 31, 1051 (54 Stat. 1110;
18 41 U.S.C. 6a) ; sections--3710 and 3735 -4--the Revise
19 Statutes (41 13) ; section 3653 of the e
20 `*
21 204; 41 U.SJ. . 241lle TTT of t e Federal Proper+y and
22 ~'~ ~v,??+rative Cervices
23 2F4 (b) ; seetio+i 10 (a)
24 (6"{ Stat. 5ay, 41 UT.S
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1 Act of T,,ly 15, '9x49-~r-T?-J
u~ Y ma
(69 T4.S.0. 1480
`"eetio 6 (c) of the ATOM r A et y 958
2 r~
oe6pe3'~ie~e8
3 (72 Stat. 1086; 42 U.S.C. ,
2295 (e) ) - seetion 1945 (b) of-
4 the Act of August !,-4-943,1 (82p t.685; 42 U.S.C. 4081
5 Acme "author-
-the fiseal year 1969 ?or e-
7 mom o?air-er,?t, missiles,
8 vehicles researe , develop
10 strength of the Selected,-
11 of the Armed Fefees, ,
12 -Sep ber 20,1969 -482 Slat. 849)
13 SHORT TITLE; TABLE OF CONTENTS
14 SECTION 1. (a) SHORT TITLE.-This Act may be cited
15 as the "Federal Acquisition Act of 1977".
16 (b) TABLE OF CONTENTS.
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
TITLE I-ACQUISITION METHODS AND REGULATORY
GUIDANCE
Sec. 101. Acquisition methods.
Sec. 102. Regulatory compliance.
TITLE II-ACQUISITION BY COMPETITIVE SEALED
BIDS
Sec. 201. Criteria for use.
Sec. 202. Invitation for sealed bids.
Sec. 203. Evaluation, award, and notifications.
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TITLE III-ACQUISITION BY COMPETITIVE
NEGOTIATION
See. 301. Criteria for use.
Sec. 302. Solicitations.
Sec. 303. Evaluation, award, and notifications.
Sec. 304. Noncompetitive exceptions.
See. 305. Price and cost data and analysis.
See. 306. Access to records.
TITLE IV-ACQUISITION BY SIMPLIFIED SMALL
PURCHASE METHOD
Sec. 101. Criterion for use.
Sec. 402. Solicitations and awards.
Sec. 501. Contract types.
Sec. 502. Warranty against contingent fees.
Sec. 503. Cancellations and rejections.
See. 504. Multiyear contracts.
Sec. 505. Advance, partial, and progress payments.
Sec. 506. Remission of liquidated damages.
Sec. 507. Determinations and findings.
Sec. 508. Collusive bidding information.
Sec. 509. Government surveillance requirements.
See. 510. Maintenance of regulations.
Sec. 511. Payment of funds due.
Sec. 512. Publication of intent.
Sec. 513. Revisions of thresholds.
Sec. 514. Sunset for specifications.
See. 515. Minority business.
TITLE VI-DELEGATION OF AUTHORITY
Sec. 601. Delegation within an executive agency.
Sec. 602. Joint acquisitions.
Sec. 701. Purpose.
TITLE VII-PROTESTS
Sec. 702. Jurisdiction.
Sec. 703. General provisions.
TITLE VIII-APPLICABILITY OF SUBSEQUENT LAWS
Sec. 801. Applicability of subsequent laws.
TITLE IX-AMENDMENTS AND REPEALS
Sec. 901. Amendments.
Sec. 902. Repeals.
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SEC. 2. (a) FINDINGS.-The Congress hereby finds
that-
(1) the laws controlling Federal purchasing have
become outdated, fragmented, and needlessly inconsistent;
(2) these de ficieriwies have contributed to significant
inefficiency, ineffectiveness, and waste in Federal
spending;
(3) the Commission on Government Procurement
9 has found and recommended that a new consolidated
10 statutory base is needed;
11 (4) further, existing statutes need to be modernized
12 to focus on effective competition and new technology in
1.3 that-
14 (A) national productivity Pests on a base of
1.5 competitive industry applying new technology in its
16 goods and services; and
17 (B) Federal spending practices can encourage
18 the Nation's business community by stimulating
19 effective competition and the application of new
20 technology.
21 (b) PoLicY. I t is the policy of the United States that
22 when acquiring property and services for the use of the
23 Federal Government, the Government shall, whenever practi-
2.4 cable rely on the private sector, and shall act so as to-
25 (1) best meet public needs at the lowest total cost;
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1 (2) maintain the independent character of private
2 enterprise by substituting the incentives and constraints
of effective competition for regulatory controls;
(3) encourage innovation and the application of new
technology as a primary consideration by stating public
6 needs so that prospective suppliers will have maximum
7 latitude to exercise independent business and technical
8 judgments in offering a range of competing alternatives;
9 (4) maintain and expand the available Federal
10 supply base by judicious acquisition practices designed
11 to assure Government contracting with new and small
12 business concerns to the maximum practicable extent;
13 (5) make available for review and examination
1.4 pertinent Federal laws and regulations applicable to the
15 award of contracts or which may impact the performance
16 of contracts, including, for example, Federal laws and
17 agency rules relating to air and water cleanliness re-
18 quirements, and occupational safety requirements;
19 (6) provide opportunities to minority business firms
20 to grow through Government contracts;
21 (7) initiate large scale acquisitions only after the
22 item or equipment to be acquired has been proven ade-
23 quate by operational testing;
24 (8) provide contractors with the opportunity to
25 earn a profit on Government contracts commensurate
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1 with the contribution made to meeting public needs and
2 comparable to the profit opportunities available in other
3 markets requiring investments, risks, and skills similar
4 to the technical and financial risks undertaken;
5 (9) minimize Government surveillance of contrac-
6 tor operations and contractor performance, and to waive
7 any controls and surveillance not necessary to insure
8 satisfactory performance of contracts;
9 (10) pay contractors promptly any moneys due
10 them under contracts awarded by the United States;
11 (11) further, to achieve these ,goals, it is the policy
12 of the United States to rely on and promote effective com-
13 petition; to insure the availability to the Government of
14 alternative offers that provide a range of concept, design,
performance, price, total cost, service, and delivery; and
to facilitate the competitive entry of new and small sellers.
Effective competition is general characterized by-
(A) timely availability to prospective sellers of
information required to respond to public needs;
(B) independence of action by buyer and seller;
(C) efforts of two or more sellers, acting in-
dependently of each other, to respond to a public need
by creating, developing, demonstrating, or offering
products or services which best meet that need,
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1 whether that need is expressed as an agency mission
2 need, a desired function to be performed, perform
3 ante or physical requirements to be met, or some
combination of these; and
(D) absence of bias or favoritism in the solicita-
tion, evaluation, and award of contracts.
DEFINITIONS
SEC. 3. For purpose of this Act-
9 (a) The term "acquisition" means the acquiring by con-
10 tract with appropriated funds of property or services by and
1.1 for the use of the Federal Government through purchase,
12 lease, or barter, whether the property or services are already
13 in existence or must be created, developed, demonstrated, and
15
evaluated. Acquisition includes such related functions as de-
terminations of the particular public need; solicitation; selec-
tion of sources; award of contracts; contract financing; con-
tract performance; and contract administration.
(b) The term "executive agency" means an executive
department as defined by section 101 of title 5, United States
Code; an independent establishment as defined-by section 104
of title 5, United States Code (except that it shall not
include the General Accounting Office); a military depart-
ment as defined by section 102 of title 5 United States Code;
a wholly owned Government Corporation as defined by sec-
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tion 846 of title 31, United States Code (but does not include
the Tennessee Valley Authority or the Bonneville Power
Administration) ; and the United States Postal Service.
4 (c) The term "agency head" means the head of an
5 executive agency as defined in subsection (b).
6 (d) The term "head of an acquisition activity" means
7 that official, intermediate between the agency head and the
8 contracting officer, but not below a major organizational
9 level, who has the responsibility for supervision and direction
10 of the acquisition activity.
11 (e) The term "contracting officer" means any person
12 who, either by virtue of his position or by appointment in
13 accordance with applicable regulations, has the authority to
14 enter into and administer contracts and make determina
15 tions and findings with respect thereto. The term also in-
16 eludes the authorized representative of the contracting officer,
17 acting within the limits of his authority.
18 '(f) The term "property" includes personal property
19 and leaseholds and other interests therein, but excludes real
20 property in being and leaseholds and other interests therein.
21 (g) The term "total cost" means all resources con-
22 sumed or to be consumed in the acquisition and use of
23 property or services. It may include all direct, indirect,
24 recurring, nonrecurring, and other related costs incurred,
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or estimated to be incurred in design, development, test,
evaluation, production, operation, maintenance, disposal,
training, and support of an acquisition over its useful life
span, wherever each factor is applicable.
(h) The term "functional specification" means a de-
scription of the intended use of a product required by the
Government in such terms that it would not prevent the
Government from considering alternative solutions to its
needs or act to limit effective competition. A functional speci fi-
cation may include a statement of the qualitative nature of
the product required and, when necessary, may set forth
those minimum essential characteristics and standards to
which such product must conform if it is to satisfy its intended
use.
15 (i) The term "protest" means 'a challenge to the terms
of the solicitation, or to the award or proposed award of a
17 contract by an executive agency for the acquisition of
18 property or services.
19 (j) The term "unsolicited proposal" means a written
20 offer to perform a proposed effort, submitted to an agency
21 by an individual or organization soley on its own initiative
22 and not in response to an agency request or communication,
23 with the objective of obtaining a contract.
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1 TITLE I-ACQUISITION METHODS AND
2 REGULATORY GUIDANCE
3 ' ACQUISITION METHODS
4 SEC. 101. (a) Except as otherwise authorized by law,
5 an executive agency shall acquire property or services in
6 accordance with this Act by utilizing-
(1) the competitive sealed bids method as pro-
vided in title II of this Act; or
(2) the competitive negotiation method, as pro-
10 vided in title III of this Act; or
11 (3) the simplified small purchase method as pro-
12 vided in title IF of this Act.
13 (b) These methods of acquiring property or services
1-1 are equally valid alternatives when selected on the basis
15 of the nature of the product or service being acquired, the
16 circumstances of the acquisition, and other criteria set forth
17 in this Act as implemented by the Administrator for Federal
18 Procurement Policy.
19 REGULATORY COMPLIANCE 20 SEC. 102. (a) The Administrator for Federal Pro-
21 curement Policy is authorized and directed, pursuant to the
22 authority conferred by Public Law 93-400 and subject
23 to the procedures set forth in such public law-
24 (1) within two years after the date of enactment
25 of this Act, to promulgate a single, simplified, uniform
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1 Federal regulation implementing this Act and to estab-
2 ,lish procedures for insuring compliance with the Act
3 and such regulation by all executive agencies; and
4 (2) to review such regulation on a regular basis
5 and issue revisions as necessary; and
6 (3) to make periodic studies in order to determine
7 whether agency compliance with this Act has been e ff i-
8 cient and effective; and
9 (4) to. establish and oversee a program to reduce
10 agency use of detailed product specifications.
11 (b) The Administrator for Federal Procurement Policy
12 shall include in his annual report required under section 8
13 of Public Law 93-400 a report of his activities under this
14 section, including his assessment of agency implementation
of and compliance with the requirements of this Act (in-
cluding, for example, specific reductions in the use of detailed
17 specifications pursuant to this Act), and recommendations
18 for revisions in this Act or any other provision of law.
19 TITLE II-ACQUISITION BY COMPETITIVE
20 SEALED BIDS
21 CRITERIA FOR USE
22 S.jc. 201. The competitive sealed bids method shall
23 be used in the acquisition of property and services when all
24 of the following conditions are present-
25 (1) the anticipated total contract price exceeds the
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1 amount specified in title IV of this Act for use of the
2 simplified small purchase method;
3 (2) the public need can be practicably defined in
4 terms not restricted by security or proprietary design;
5 (3) the private sector will provide a sufficient num-
6 ber of qualified suppliers willing to compete for and
7 able to perform the contract; and
(4) suitable products or services capable of meeting
the public need are available so as to warrant the award
of a fixed price contract to a successful bidder selected
11 primarily on the basis of price;
21
1 v1 we-, ccnw uuateaute /or acquis2L2on 2s sufficient
to. prepare the purchase description and to carry out the
requisite administrative procedures;
(6) the property or service is to be acquired within
the limits of the United States and its possessions;
(7) the price for the property or service has not
been established by or pursuant to law or regulation.
INVITATION FOR SEALED BIDS
SEC. 202. (a) The invitation for sealed bids shall be
publicized in accordance with section 512 of this Act and
shall be issued in such a way that-
(1) the time prior to opening the bids will be suffi-
cient to permit effective competition; and
(2) the invitation will be accessible to all interested
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1 or potential bidders; however, eligibility to participate in
2 the bidding may be restricted to concerns eligible to par-
3 ticipate in small business set-asides or other such author-
4 ized programs.
5; (b) The invitation shall include a description of any
6 factors in addition to price that will be considered in evaluat-
7 ing bids.
8 (c) To the maximum extent practicable and consistent
9 with needs of the agency, functional specifications shall be
10 used to permit a variety of distinct products or services to
11 qualify and to encourage effective competition.
12 (d) The preparation and use of detailed product speci-
13 fications in a purchase description shall be subject to prior
14 approval by the agency head. Such approval shall include
15 written justification, to be made a part of the official contract
16 file, delineating the circumstances which preclude the use of
17 functional specifications and which require the use of detailed
18 product specifications in the purchase descriptions.
19 (e) Where it is impracticable to plan for award primar-
20 ily on the basis of price, the contracting officer may request the
21 submission of unpriced technical proposals and subsequently
22 issue an invitation for sealed bids limited to those offerors
23 whose technical proposals meet the standards set forth in the
24 original invitation.
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EVALUATION, AWARD, AND NOTIFICATIONS
2 SEC. 203.- (a) All bids shall be opened publicly at the
3 time and place stated in the invitation.
4 (b) Award shall be made to the responsible bidder whose
5 bid conforms to the invitation and is most advantageous to the
6 Government, price and other factors considered: Provided,
7 That all bids may be rejected when the agency head deter-
8 mines that, for cogent and compelling reasons, it is in the
9 Government's interest to do so.
10 (c) Notice of award shall be made in writing by the
11 contracting officer with reasonable promptness and all other
12 bidders shall be appropriately notified.
13 TITLE III-ACQUISITION BY COMPETITIVE
14 NEGOTIATION
15 CRITERIA FOR USE
16 SEC. 301. The competitive negotiation method shall be
17 used in the acquisition of property and services when-
18 (1) the anticipated total contract price exceeds the
19 amount specified in title IV of this Act for use of the
20 simplified small purchase method; and
21 (2) the acquisition does not meet the criteria estab-
22 lished pursuant to section 101 (b) or as set forth in sec-
23 tion 201 for use of competitive sealed bids.
24 SOLICITATIONS
25 SEC. 302. (a) Solicitations for offers shall be issued to a
2Appsu - * 3r Wold 9WWWRs 2 8oYPPM"e 30?D3e 3
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competition and shall be publicized in accordance with section
512 of this Act, with copies of the solicitation to be provided
or made accessible to other interested or potential sources
upon request; however, eligibility to respond to the solicitation
may be restricted to concerns eligible to participate in small
.business set-asides or other such authorized programs.
7 (b) (1) Each solicitation shall include both the evalua-
8 Lion methodology and the relative importance of all sign ficant
9 factors to be used during competitive evaluation and for final
10 selection. In any case, if price is included as a primary or
11 significant factor, the Government's evaluation shall be based
12 where appropriate on the total cost to meet the public need.
13 (2)' Any changes in the evaluation factors or their
14 relative importance shall be communicated promptly in writ-
15 ing to all competitors.
16 (c) To the maximum extent practicable and consistent
17 with agency needs, solicitations-
18 (1) shall set forth the public need in functional
19 terms so as to encourage the application of a variety of
20 technological approaches and elicit the most promising
21 competing alternatives,
22 '(2) shall not prescribe performance characteristics
23 based on a single approach,
24 (3) shall not prescribe technical approaches or in-
25 novations obtained from any potential competitor.
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1 (d) If either the Government or an offeror identifies
2 inadequacies in the solicitation which cause misunderstand-
3 ings of the public's needs or requirements, clarification of
4 intent shall be made to all offerors in a timely fashion and
5 on an equal basis.
6 (e) The preparation and use of detailed specifications
7 in a solicitation shall be subject to prior approval by the
8 agency head. Such approval shall include written justi fica-
9 tion to be made a part of the official contract file, delineating
10 the circumstances which preclude the use of functional speci-
fications and which require the use of detailed product
speci fications.
EVALUATION, AWARD, AND NOTIFICATIONS
14 SEC. 303. '(a) Written or oral discussions shall be
15 conducted with all responsible offerors in a competitive range
16 for the purpose of obtaining any needed clarification or ex-
17 tension of offers. Discussions shall not disclose the strengths
18 or weaknesses of competing offerors, or disclose any in f or-
19 mation from an o f f eror's proposal which would enable an-
20 other offeror to improve his proposal as a result thereof.
21 Auction techniques are strictly prohibited. Auction tech-
22 niques include; but are not limited to, indicating to an of-
23 feror a price which must be met to obtain further considera-
24 tion, or informing him that his price is not low in relation
25 to another offeror, or making multiple requests for best and
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1 final offers. Detailed negotiations of price and technical f ac-
2 tors shall be limited to the successful offeror (s) . An initial
3 offer may be accepted without discussion.
4 (b) When awards are made for alternative approaches
5 selected on the basis of the factors contained in the solicita-
6 tion, whether for design, development, demonstration, or
7 delivery, the contractors shall be sustained in competition, to
8 the maximum extent practicable, until sufficient test or evalua-
9 tion information becomes available to narrow the choice to a
10 particular product or service.
11 (c) Until award is made, information concerning the
12 award shall not be disclosed to any person not having direct
13 source selection responsibilities, except that offerors who are
14 eliminated from the competition may be notified prior to
15 award: Provided, however, That nothing in this section shall
16 limit the responsibility of procuring agencies to furnish in-
17 formation to the General Accounting Office pursuant to
18 section 54 of title 31, United States Code, or title 7 of. this
19 Act.
20 (d) Award shall be made to one or more responsible
21 offerors whose proposal (s), as evaluated in accordance with
22 the terms of the solicitation are most advantageous to the
23 Government. Notification of award to all unsuccessful offerors
24 shall be made with reasonable promptness.
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1 NONCOMPETITIVE EXCEPTIONS
2 SEC. 304. (a) Compliance with the procedures pre-
3 scribed in sections 302 and 303 is not required if the con-
4 tract to be awarded stems from acceptance of an unsolicited
5 proposal, or if the agency head determines that it is in the
6 best interest of the Government to enter into a noncompetitive
7 contract: Provided,
8 (1) That such determination, together with the rea-
9 sons therefore, is in writing, and conforms with the
10 Office of Federal Procurement Policy regulations, pm-
11 suant to section 102(a) (1) ; and
1.2 (2) (A) for all contracts except those stemming from
13 the acceptance of an unsolicited proposal, notice of intent
14 to award such a contract shall be publicized pursuant to
15 section 512 at least thirty days in advance of solicitation
16 of a proposal from the prospective contractor; or, at least
17 thirty days in advance of the proposed award date, when
18 earlier notice is impracticable. Such notice shall include a
19 description of the property or services to be acquired, the
20 name of the prospective source, the time for accomplish-
21 ment of the work, and the reason for selection of the
22 source. If, after such notice, other sources demonstrate an
23 ability to meet the requirements for the work to be per-
24 formed, a solicitation shall be issued to all such prospec-
tive offerors;
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1 (B) in the case of those contracts stemming from the
2 acceptance of an unsolicited proposal, notice of intent to
3 award such a contract shall be publicized prior to award,
4 pursuant to section 512 of this Act. Such notice shall
5 include a description -of the property or service to be
6 acquired, the name of the prospective source, and the
7 time for accomplishment of the work.
8 (b) Where there is no commercial usage of the product
9. or service to be acquired under this section, and the agency
10 head determines that substantial follow-on provision of such
11 product or service will be required by the Government, the
12 agency head shall, when he deems appropriate, take action
13 through contractual provision, or otherwise, to provide the
14 Government with a capability to establish one or more other
15 competitive sources.
16 PRICE AND COST DATA AND ANALYSIS
17 SEC. 305. (a) (1) The term "price data" means actual
18 prices previously paid, contracted, quoted, or proposed, for
19 materials or services identical or comparable to those being
20 acquired, and the related dates, quantities, and item
21 descriptions.
22 (2) The term "cost data" means all facts which prudent
23 buyers and sellers would reasonably expect to have a signi fi-
24 cant effect on the negotiation of a contract price or payment
25 provisions. Such data are of a type that can be verified as
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being factual, and are to be distinguished from judgmental
factors.
(3) The term "price analysis" means the process of
4 examining and evaluating a price without evaluation of the
5 individual cost and profit elements of the price being
6 evaluated.
7 (4) The term "cost analysis" means the element-by-
8 element examination and evaluation of the estimated or actual
9 costs of contract performance, and involves analysis of cost
10 data furnished by an offeror or contractor.
11 (b) The contracting o ffcer shall obtain price data and
12 shall use price analysis techniques to analyze and evaluate
13 the reasonableness of a negotiated prime contract price or of
14 a price adjustment pursuant,to a modification thereto where-
15 (1) the price is expected to be less than $500,000;
16 (2) the price is based on an established catalog or
17 market price of a commercial item sold in substantial
1.8 quantities to the general public; or
19 (3) there has been arecent comparable competitive
20 acquisition.
21 (c) In the case of subcontracts, when any of the
22 conditions in subsection (b) applies, price data shall be
23 obtained and price analysis techniques shall be used to analyze
24 and evaluate the reasonableness of-
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1 (1) a subcontract price-where evaluation of a
2 subcontract price is necessary to insure the reasonable-
3 ness of the prime contract price, or
4 (2) a subcontract price adjustment pursuant to a
5 prime contract modification.
6 (d) Except as provided in subsection (b) (2) and (3),
7 the contracting officer shall obtain cost data and shall use
8 cost analysis techniques to analyze and evaluate the reason-
9 ableness of prices-
10 (1) whenever the price of a negotiated prime con-
11 tract or a price adjustment pursuant to a contract modi-
12 fication is expected to exceed $500,000; or
13 . (2) for any subcontract price or price adjustment
14 pursuant to a modification thereto in excess of $500,000
15 which forms part of a negotiated prime contract price
16 or higher tier subcontract price.
17 '(e) Notwithstanding subsection (b) hereof, the con-
18 tracting officer may obtain cost data and use cost analysis
19 techniques when authorized under circumstances set forth
20 in regulations issued by the Administrator for Federal
21 Procurement Policy pursuant to section 102 (a) of this Act.
22 (f) Contractors and subcontractors shall submit such
23 price data or cost data as are required to be obtained pur-
24 ` suant to this section. Regulations issued by the Administrator
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for Federal Procurement Policy may authorize the identifi-
2 cation in writing of price data and cost data, in lieu of
3 actual submission, under specified circumstances.
4 (g) Any prime contract or modification thereto for which
5 price data or cost data are required shall contain a provision
6 that the price to the Government, including profit or fee, shall
7 be adjusted to exclude any significant 'sums by which it may
8 be determined by the contracting officer that such price was
9 increased because of reliance on data which were inaccurate,
10 incomplete, or noncurrent as of the date of submission or
11 other date agreed upon between the parties (which date shall
12 be as close to the date of agreement on the negotiated price
13 or payment provisions as is practicable).
14 (h) The ,-equiremenits of this section do not apply to
15 contracts or subcontracts where the price negotiated is based
16 on adequate price competition, prices set by law or regu-
17 lation, or, in exceptional cases, where the head of the agency
determines that the requirements of this section may be
waived and states in writing his reasons for such deter-
mination.
21 ACCESS TO RECORDS
SEC. 306. (a) Until expiration of three years after
23 final payment under a contract negotiated or amended under
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this title, an executive agency is entitled to inspect the plants
and examine any books, documents, papers, records, or other
3 data of the contractor and his subcontractors that involve
4 transactions relating to the contract or subcontract or to the
5 amendment thereof, including all such books, records, and
6 other data relating to the negotiation, pricing, or perform-
7 ante of the contract or subcontract.
(b) Until expiration of three years after final payment
9 under a contract negotiated or amended under this title, the
10 Comptroller General of the United States or his authorized
11 representatives is entitled to inspect the plants and examine
12 any books, documents, papers, records, or other data of the
13 contractor and his subcontractors that directly pertain to,
14 and involve transactions relating to the contract or subcon-
15 tract or to the amendment thereof, including all such books,
16 records, and other data relating to the negotiation, pricing,
17 or performance of the contract or subcontract. This provi-
18 sion may be waived for any contract or subcontract with a
19. foreign contractor or subcontractor, if the Agency head
20 determines, with concurrence of the Comptroller General,
21 that waiver would be in the public interest. However, the
22, concurrence of the Comptroller General or his designee is
23 not required-
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1 (1) where the contractor or subcontractor is a for-
2 eign government or agency thereof or is precluded by the
3 laws of the country involved from making its books,
4 documents, papers, or records available for examination;
5 and
6 (2) where the head of the agency determines, after
7 taking into account the price and availability of the prop-
8 erty or services from United States sources, that the
9 public interest would be best served by not applying sub-
10 section (b).
11 If subsection (b) is not applied to a contract or subcontract
12 based on a determination under clause (2), a written report
13 shall be furnished to the Congress.
14 (c) Inspections and examinations by executive agencies
15 under subsection (a) shall be conducted only when necessary
16 to insure contract performance and/or to evaluate the accu-
17 racy, completeness, and currency of data submitted or identi-
fled pursuant to section 305. Multiple inspections and exam-
inations of a contractor or subcontractors by more than one
executive agency shall be eliminated to the maximum extent
practicable by coordinating inspection and examination
responsibilities in accordance with regulations to be issued or
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1 authorized Eby the Office of Federal Procurement Policy pur-
2 suant to section 102 (1) .
3 TITLE IV-ACQUISITION BY SIMPLIFIED
4 SMALL PURCHASE METHOD
5 CRITERION FOR USE
6 SEC. 401. (a) The simplified small purchase method
7 may be used in the acquisition of property and services when
8 the anticipated total contract price does not exceed $10,000.
9 In lieu of this method, the contracting officer may use either
10 of the competitive methods prescribed in title II or III of
this Act when such use would be more advantageous to the
Government.
13 SOLICITATIONS AND AWARDS
14 SEC. 402. The contracting officer shall use simplified
15 small purchase methods to obtain competition to the maxi-
16 mum extent practicable in making small purchases and there-
17 upon may make award to the contractor whose offer is most
18 advantageous to the Government. No provisions of this sec-
19 tion are intended to eliminate effective screening of proposed
20 acquisitions for appropriate application of small business
21 set-aside or other procedures designed to assist small busi-
22 nesses. Simplified procedures for small purchases shall be
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1 issued by the Administrator for Federal Procurement Policy
2 pursuant to section 102 (a) (1) of this Act.
3 TITLE V-GENERAL PROVISIONS
4 CONTRACT TYPES
5 SEC. 501. (a) Contracts may be of any type or combi-
6 nation of types, consistent with the degree of technical and
7 financial risk to be undertaken by the contractor, which will
8 promote the best interests of the Government except that the
9 cost-plus a percentage-of-cost system of contracting shall not
10 be used under any circumstances.
1-1 (b) The preferred contract type shall be fixed price con-
12 sistent with the nature of the work to be performed and the
13 risk to be shared by the Government and the contractor.
14 WARRANTY AGAINST CONTINGENT FEES
15 SEC. 502. Each contract negotiated under title III of
16 this Act or an award to be made as a result of the submission
1.7 of a- technical proposal under section 202 (e) of this Act shall
18 contain a warranty by the contractor that no person or sell-
19 ing agency has been employed or retained to solicit or secure
20 the contract upon an agreement or understanding of a com-
21 mission, percentage, brokerage, or contingent fee, excepting
22 bona fide employees or bona fide established commercial or
23 selling agencies maintained by the contractor for the pur-
24 pose of securing business; and that for any breach or viola-
25 tion of the warranty, the Government may annul the con-
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1 tract without liability or deduct from the. contract price or
2 consideration the full amount of the commission, percentage,
3 brokerage, or contingent fee.
4 CANCELLATIONS AND REJECTIONS
5 SEC. 503. (a) Where the contracting officer determines
6 for cogent and compelling reasons, that it is in the best interest
7 of the Government, he may-
8 (1) withdraw or cancel a small purchase order which
has not been accepted in writing by the contractor, prior
10 to the contractor's initiation of performance;
'(2) cancel an invitation for sealed bids. before bid
12 opening or after bid opening but before award; or
13 (3) cancel a request for proposal and reject all
14 offers.
15 (b) When requested, the contracting officer shall fully
16 inform any unsuccessful offeror or bidder of the reasons
17 for the rejection of his offer or bid.
18 MULTIYEAR CONTRACTS
19 SEC. 504. (a) Except as otherwise provided by law, an
20 agency may make contracts for acquisition of property or
21 services for periods not in excess of five years, when-
22 (1) appropriations are available and adequate for
23 payment for the first fiscal year; and
24 (2) the Agency head determines that-
25 (A) the Government need for the property or
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1 services being acquired over the period of the contract
2 is reasonably farm and continuing; and
3 (B) such a contract will serve the best interests
4 of the United States by encouraging effective com-
5 petition or promoting economics in performance and
6 operation.
7 (C) such a method of contracting will not in-
8 hibit small business participation.
9 (b) The Administrator for Federal Procurement
10 Policy may grant exceptions to the five-year limita-
11 tion imposed by subsection (a) upon the certification, in
12 such form and of such content as the Administrator may
13 require, by the Agency head that such exception is in the
14 best interests of the Government. A copy of each such
15 certification and each exception granted shall be delivered
16 to the chairman of the Committee on Government Operations
17 and the. Committee on Appropriations of the House of Repre-
18 sentatives and the Senate, respectively.
19 (c) Any cancellation costs incurred must be paid from
20 appropriated funds originally available for performance of
21 the contract, or currently available for procurement of similar
22 property or services, and not otherwise obligated, or appro-
23 priations made available for such payments.
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1 ADVANCE, PARTIAL, AND PROGRESS PAYMENTS
2 SEC. 505. (a) Any executive agency may make advance,
3 progress, partial, or other payments under contracts.
4 (b) Advance and progress payments under contracts
5 with small business concerns shall be granted where possible
6 and to the extent practicable under the circumstances existing
7 for each acquisition; and provisions limiting advance and
8 progress payments to small business concerns may be inserted
9 into solicitations.
10 (c) Payments under subsections (a) and (b) shall not
11 exceed the unpaid contract price.
12 (d) When progress payments are made, the Government
13 shall have title to the property acquired or produced by the
14 contractor and allocable or properly chargeable to the con-
15 tract. Notwithstanding any other provisions of law, that title
16 may not be divested by any action of the contractor, or pro-
17 ceeding in bankruptcy, or encumbered by any lien or security
18 interest.
19 (e) Advance payments under subsection (a) or (b) shall
20 not be made in excess of the amount required for contract
21 performance, and may be made only upon adequate security
22 and a determination by the Agency head that to do so would
23 be in the public interest. Such security may be in the form of
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1 a lien in favor of the Government on the property contracted
2 for, on the balance in an account in which such payments
3 are deposited, and on such property acquired for perform-
4 ance of the contract as the parties may agree. This lien
5 is paramount to any other liens.
6 REMISSION OF LIQUIDATED DAMAGES
7 SEC. 506. Upon the recommendation of the Agency
8 head the Comptroller General of the United States may
9 remit all or part, as he considers just and equitable, of any
10 liquidated damages provided by the contract for delay in
1.1 performing the contract.
12 DETERMINATIONS AND FINDINGS
13 SEC. 507. (a) Determinations, findings, approvals, and
14 decisions provided for by this Act may be made with respect
15 to contracts individually or with respect to classes of con-
16 tracts and shall be final?
17 (b) Each determination, approval, or decision shall be
18 based upon written findings of the officer making the deter-
19 mination, approval, or decision, and shall be retained in the
20 oicial - contract file.
21 COLLUSIVE BIDDING INFORMATION
22 SEC. 508. (a) If the contracting officer or any other
23 agency employee has reason to believe that any bid, pro-
24 posal or offer evidences a violation of the antitrust laws or
25 provisions of this Act, the matter shall be referred, in ac-
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1 cordance with agency procedures, to the Attorney General
2 Of the United States for appropriate action.
3 (b) Upon the request of the Attorney General of the
4 United States, the Agency head shall make available to the
5 Attorney General information which the Attorney General
6 considers necessary and relevant to any investigation, prose-
7 cution or other action by the United States under the anti-
8 trust laws or other statute enforced by the Attorney General.
9 (c) The Agency head shall render needed assistance to
:10 the Attorney General in any investigation and prosecution
11 flowing from the information provided in subsection (a)
:12 or (b) or from other investigation and prosecution in other
13 antitrust matters.
GOVERNMENT SURVEILLANCE REQUIREMENTS
15 SEC. 509. (a) Notwithstanding any other provisions
16 of law, an agency shall, upon application by a contractor,
17 waive the requirements listed in 509 (c) below for that part
18 of a contractor's operation which is separately managed and
19 accounted for if, for the contractor's most recent fiscal year,
20 more than 75 per centum of the business of the activity, as
21 measured by total revenues is conducted under commercial
22. and/or competitive Government contracts. To be competitive
23 for purposes of this section, the Government contracts must
24 be firm fixed-price or fixed-price with escalation with price
25 the deciding factor in the award.
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1 (b) The waiver provided in 509 (a) shall not he granted
2 if the contractor's activity for the most recent fiscal year, had
3 costs incurred of over $10,000,000, under Government con-
4 tracts where the contract prices were based on estimated
5 or actual costs. This category would include such contracts
6 as cost reimbursement type contracts, firm fixed-price con-
7 tracts negotiated without price competition, fixed-price incen-
8 tive contracts, and time and material contracts.
9 (c) The waiver provided for in 509 (a) shall apply to
10 any or all of the following :
11 (1) reviews of contractor management and pro-
12 curement systems;
13 (2) determinations of reasonableness of indirect
14 overhead costs;
15 (3) provisions of the Cost Accounting Standards
16 Act (Public Law 91--379);
17 (4) advance agreements for independent research
18 and development and bid and proposal activities; and
19 (5) provisions o f the Renegotiation Act.
20 (d) The waiver period shall not exceed two years with-
21 out reconsideration by the Agency. The waiver may be voided
22 at any time or may be withheld altogether if the Agency head
23 makes a written determination that the waiver should not
24 apply.
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1 (e) The waiver provided for in 509 (a) shall not affect
2 the General Accounting Office access-to-records authority as
3 set forth in section 306 of this Act.
4 MAINTENANCE OF REGULATIONS
5 SEC. 510. Notwithstanding the provisions of title VIII
6 of this Act or any other provisions of law, regulations
7 relating to Federal procurement promulgated or in effect
8 before the date of enactment of this Act shall remain in e f -
9 feet until repealed by order of the Administrator for Fed-
10 eral Procurement Policy or until the lapse of two years
11 after the date of enactment of this Act, whichever is earlier.
12 No regulation preserved by operation of this section may be
13 amended without the prior approval of the Administrator
14 for Federal Procurement Policy.
15 PAYMENTS OF FUNDS DUE
16 SEC. 511. A clause shall be included in every contract,
17 awarded by the United States pursuant to this Act which
18 shall provide for interest to be paid by the Federal Govern-
19 ment to the contractor on any amount due to the contractor
20 for more than thirty days. No amount shall be considered due
21 until receipt by the Government of a proper invoice and any
22 substantiating documentation required. Interest payable by
23 the Government shall be the interest in effect which has been
24 established by the Secretary of the Treasury pursuant to
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Public Law 92-41 (85 Stat. 97) for the Renegotiation
Board, as of a date thirty days after the date the amount
becomes due.
4 PUBLICATION OF INTENT
5 SEC. 512, It shall be the duty of the Secretary of
6 Commerce, and he is empowered, to obtain notice of all
7 proposed acquisitions of $10,000 and above, from any ex-
8 ecutive agency engaged in acquisitions in the United States;
9 and to publicize such notices in the daily publication "United
10 States Department of Commerce Synopsis of the United
11 States Government Proposed Procurement, Sales, and Con-
12 tract Awards", immediately after the necessity for the ac-
13 quisition is established; except that nothing herein shall
14 require publication of such notices with respect to those
15 acquisitions-
16 (1) which for security reasons are of a classified
17 nature; or
18 (2) which involve perishable subsistence supplies; or
19 (3) which are of such unusual and compelling
20 emergency that the Government would be seriously
21 injured if notice were required to be publicized thirty
22 days in advance of the proposed contract award date.
23 In all such cases, notice shall be published at the earliest
24 practicable opportunity; or
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1 (4) which are made by an order placed under an
2 existing contract; or
3 (5) which are made from another Government
4 department or agency, or a mandatory source of supply,
5 or
6- (6) for which it is determined in writing by the
7 procuring agency, with the concurrence of the Adminis-
8 trator, Small Business Administration, that advance
9 publicity is not appropriate or reasonable.
10 REVISIONS OF THRESHOLDS
11 SEC. 513. At least every three years, beginning with the
third year a f ter enactment of this Act, the Administrator for
Federal Porcurment Policy shall review the prevailing costs
14 Of labor and materials and may revise the amounts stated
15 in sections 305, 401, 509, and 512 or any prior revisions
16 thereof, notwithstanding any other provision of law, to reflect
17 an increase or decrease by at least 10 per centum in the costs
18 of labor and materials. At least sixty days in advance of its
19 effective date, the Administrator shall report to Congress
20 any such revision which by itself, or cumulatively with earlier
21 increases, represents 50 per centum or more increase.
22 SUNSET FOR SPECIFICATIONS
23 SEC. 514. All specifications shall be reviewed at least
24 every five years, and shall be canceled, modified, or revised
25 as determined by such review.
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1 MINORITY BUSINESS PARTICIPATION
2 SEC. 515. The Administrator for Federal Procurement
3 Policy is authorized and directed to initiate, in consultation
4 with the Small Business Administration, periodic reviews of
5 acquisition programs within the executive branch with the
6 objective of making minority business participation in govern-
7 ment contracting more effective and assuring that -minority
8 businesses have full opportunity to compete for Government
9 contracts. Targets should be set which reflect the Govern-
10 ment's commitment to increasing minority business partici-
11 pation in Federal contracting.
12 TITLE VI-DELEGATION OF AUTHORITY
13 DELEGATION WITHIN AN EXECUTIVE AGENCY
14 SEC. 601. Each agency head may designate acquisition
15 activities and may delegate any authority under this Act
16 except the authority to grant waivers under section 509,
1.7 provided that delegation of the authority to make determina-
18 tions under sections 202, 302(e), 304, 305 and 306 shall
19 be made with the approval' of the Administrator for Federal
20 Procurement Policy. Normally such delegations shall not
21 be made below the level of the head of the acquisition activity.
22 JOINT ACQUISITIONS
23 SEC. 602. (a) To facilitate acquisition of property or
24 services by one executive agency for another executive agency,
25 and to facilitate joint acquisition by those agencies-
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1 (1) the Agency head may, within his agency, dele-
2 gate functions and assign responsibilities relating to the
3 acquisition;
4 (2) the heads of two or more executive agencies may
5 by agreement delegate acquisition functions and assign
6 acquisition responsibilities from one agency to another
7 Of those agencies or to an officer or employee of another
8 of those agencies;-and
9 (3) the heads of two or more executive agencies
10 may create joint or combined offices to exercise acquisi-
11 tion functions and responsibilities.
12 (b) Subject to the provisions of section 686 of title 31,
13 United States Code-
14' (1) appropriations available for acquisition of
15 property and services by an executive agency may be
16 made available for obligation for acquisition of property
17 and services for its use by any other agency in amounts
18 authorized by the head of the ordering agency and with-
19 out transfer of funds on the books of the Department of
20 the Treasury;
21 (2) a disbursing officer of the ordering agency may
22 make disbursement for any obligation chargeable under
23 subsection (a) of this section, upon a voucher certified
24 by an officer or employee of the acquisition agency.
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1 TITLE VII-PROTESTS
2 PURPOSE
3 SEC. 701. In accordance with the authority of the
4 Budget and Accounting Act of 1921 (chapter 18, title III,
5 section 304, 42 Stat. 24; 31 U.S.C. 44) and this title, pro-
6 tests shall be decided in the General Accounting Office if
7 filed with that office. To the maximum extent practicable, the
8 Comptroller General shall provide for the inexpensive, in-
9 formal, and expeditious resolution of protests.
10 JURISDICTION
11 SEC. 702. The Comptroller General shall have authority
12 to decide any protest submitted by an interested party in
13 accordance with rules and regulations he shall issue pursuant
to section 703.
15 GENERAL PROVISIONS
16 SEC. 703. The Comptroller General shall perform such
17 acts, make such rules and regulations, and issue such orders,
18 not inconsistent with this title, as may be necessary in the
19 execution of the protest decision function. He may delegate
20 his authority to other officers or employees of the General Ac-
21 counting Office.
22 TITLE VIII-APPLICABILITY OF
23 SUBSEQUENT LAWS
24 SEC. 801. No law enacted after the date of enactment
25 of this Act, including any limitation in any appropriation
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1 priation of funds; may be held, considered, or construed as
2 amending any provision of this Act, unless such law does so
3 by specifically and explicitly amending or superseding a
4 specific and separately referenced provision of this Act.
5 TITLE IX-AMENDMENTS AND REPEALS
6 AMENDMENTS
7 SEC. 901. (a) The Agriculture Department Appropria-
8 tion Act, 1923, is amended by striking out ", after due ad-
vertisement and on competitive bids," in the first proviso
on the page at forty-second Statutes at Large, page 517
(7 U.S.C. 416).
(b) Section 101 (d) and 104 of the Department of
Agriculture Organic Act of 1944 (58 Stat. 734, 736; 7
U.S.C. 430, 432) are amended by striking out "in the open
market".
(c) Section 2356(b) of title 10, United States Code,
17 is amended by striking out the last sentence.
18 (d) Sections 4504 and 9504 of title 10, United States
19 Code, are each amended by striking out everything after
20 "United States" and inserting in lieu, thereof a period.
21 (e) Sections 4505 and 9505 of title 10, United States
22 Code, are each amended by striking out the second sentence.
23 (f) Clause (2) of section 502 (c) of the Act of August
24 10, 1948 (62 Stat. 1283; 12 U.S.C. 1701 c(b) (2) ), is
25 amended by striking out ", without regard to section 3709
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1 (g) Section 502 (e) of the Act of December 31, 1970
2 (84 Stat. 1784; 12 U.S.C. 1701z-2(e)), is amended by
3 striking out ", without regard to section 3709 of the Revised
4 Statutes,".
5 (h) Section 708(h.) of the Act of June 27, 1934, as
6 amended August 10, 1948 (62 Stat..1279, 12 U.S.C. 1747
7 g (h) ), is amended by striking out the proviso at the end.
8 (i) Section 712 of the Act of June 27, 1934, as amended
9 August 10, 1948 (62 Stat. 1281; 12 U.S.C. 1747k) is
10 amended by striking out "and without regard to section 3709
11 of the Revised Statutes".
12 (j) Section 208(b) of the Act of June 26, 1934, as
13 amended October 19, 1970 (84 Stat. 1014; 12 U.S.C.
14 1788(b)), is amended by striking out the last sentence.
15 (k) Clause (4) of section 2(b) of the Act of July 18,
16 1958 (72 Stat. 386; 15 ,U.S.C. 634(b) (4)), is amended
17 by striking out: "Section 3709 of the Revised Statutes, as
18 amended (41 U.S.C., section 5), shall not be construed
19 to apply to any contract of hazard insurance or to any
20 purchase or contract for services or supplies on account
21 of property obtained by the Administrator or as a result
22 of loans made under this Act if the premium therefor or
23 the amount thereof does not exceed $1,000.".
24 (1) Section 3 of the Act of April 24, 1950 (64 Stat.
25 83; 16 U.S.C. 580c, is amended to read as follows :
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1 "SEC. 3. The Forest Service is authorized to make
2 purchases of (1) materials to be tested or upon which
3 experiments are to be made or (2) special devices, test
4 models, or parts thereof, to be used (a) for experimenta-
5 tion to determine their suitability for or adaptability to
6 accomplishment of the work for which designed or (b) in
7 the designing or developing of new equipment: Provided,
8 That not to exceed $50,000 may be expended in any one
9 fiscal year pursuant to this authority and not to exceed
10 $10,000 on any one item or purchase.".
11 (m) Section 2(b)(1) of the Act entitled "An Act to
12 authorize the construction of a National Fisheries Center
13 and Aquarium in the District of Columbia and to provide
14 for its operation", approved October 9, 1962 (76 Stat.
15 753; 16 U.S.C. 1052), is amended by striking out ",
16 without regard to the provisions of section 3709 of the
17 Revised Statutes of the United States (41 U.S.C. 5,".
18 (n) Section 224(a) of the Act of November 8, 1965
19 (79 Stat. 1228; 20 U.S.C. 1034(a)), is amended by strik-
20 ing out ", and, without regard o section 3709 of the Revised
21 Statutes (41 U.S.C. 5),".
22 '(o) Section 7 of the Act of December 20, 1945, as
23 amended October 10, 1949'(59 Stat. 621; 22 U.S.C. 287e),
24 is amended by striking out ", all without regard to section
25 3709 of the Revised Statutes, as amended (41 U.S.C. 5)".
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(p) Section, 707 of the Act of August 13, 1946 (60
Stat. 1019; 22 U.S.C.. 1047), is amended by striking out
3 ", without regard to section 3709 of the Revised Statutes".
4 (q) Section 22(e) (7) of the Act of December 29,
5 1970 (84 Stat. 1613, 29 U.S.C. 671(e)(7)), is amended
6 by striking out ", and without regard to section 3709 of the
7 Revised Statutes, as amended (41 U.S.C. 5), or any other
8 provision of law relating to competitive bidding."
9 (r) Section 6(b) of the Act of August 31, 1954 (68
10 Stat. 1010; 30 U.S.C. 556(b)), is amended by striking out
11 "and without regard to the provisions of section 3709, Re-
12 vised Statutes (41 U.S.C. 5) ".
13 '(s) Section 1820 (b) of title 38, United States Code,
14 is amended by striking out "section 5 of title 41" and in-
15 serting in lieu thereof the "Federal Acquisition Act of 1977"
16 and by deleting "if the amount of such contract exceeds
17 $1,000.".
18 (t) Section 5002 of title 38, United States Code, is
19 amended by substituting a period for the comma after "work"
20 and striking out the remainder of the section.
21 (u) The Act of October 10, 1940, is amended (54
22 Stat. 109; 41 U.S.C. 6a, b (a), '(c) ), is amended by
23 striking out section 2 and subsections (c) and (d), and
24 by striking out "without regard to the provisions of sec-
25 tion 3709 of the Revised Statutes, as amended," in sub-
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1 section (a). The Act of July 27, 1965 (79 Stat. 276; 41
2 U.S.C. 6a-1) is amended by striking out any and all ref-
3 erences to section 3709 of the Revised Statutes in the sections
4 relating to Architect of the Capitol.
5 (v) Section 11 oil the Act of June 30, 1936 (49
6 . Stat. 2039, renumbered section 12 in 66 Stat. 308; 41
7 U.S. C. 45), is amended to read as follows:
8 "SEC. 12. The provisions of this Act requiring the
9 inclusion of representations with respect to minimum wages
10 shall apply only to purchases or contracts relating to such
11 industries as have been the subject matter of a determina-
12 tion by the Secretary of Labor.".
13 (w) Section 356(b) of the Act 'of July 1, 1944, as
14 added October 18, 1968 (82 Stat. 1175; 42 U.S.C. 263d
15 (b) ), is amended by striking out the references to section
16 3709 of the Revised Statutes and 41 U.S.C. 5 in clause (3),
17 and by striking out the parenthetical phrase "by negotiation
18 or otherwise)" in clause (4).
19 (x) Section 1 (b) of the Act of October 14, 1940 (54
20 Stat. 1126; 42 U.S.C. 1521 (b)), is amended by striking
21 out the reference to section 3709 of the Revised Statutes in
22 the first parenthetical phrase, and by striking out the first
23 proviso and inserting in lieu thereof : "Provided, That the
24 cost plus a percentage of cost, system shall not be used.".
25 (y) Section 202(b) of the Act of October 14, 1940 (55
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84
1 Stat. 362; 42 U.S.C. 1532(b)), is amended by striking out
2 the reference to section 3709 of the Revised Statutes, and by
3 adding the following proviso at the end of paragraph 1532
4 (b): "Provided, That the cost plus a percentage of cost system
5 shall not be used.".
6 (z) Section 309 of the Act of September 1, 1951 (65
7 Stat. 307; 42 U.S.C. 1592h), is amended by striking out
8 clause (a), and amending clause (b) to read as follows:
9 "(b) the fixed-fee under a contract on a cost-plus-a-
10 fixed-fee basis shall not exceed 6 per centum of the esti-
11 mated cost;".
12 (aa) Section 103(b) (4) and 104(a) (2) of the Act
13 of July 14, 1955, as amended November 21, 1967 (81
14 Stat. 486, 487; 42 U.S.C. 1857b (b) (4), b-1(a) (2) ), is
15 amended by striking out the references to section 3709 of
16 the Revised Statutes and to section 5 of title 41, United
17 (bb) Section 31 (b) of the Atomic Energy Act of 1954
18 (68 Stat. 927; 42 U.S.C. 2051c) is amended to read as
19 follows:
20 "(b) The Commission may make available for use in con-
21 nection with arrangements made under this section such of its
22 equipment and facilities as it may deem desirable.".
23 (cc) Section 41(b) of the Atomic Energy Act of 1954
24 (68 Stat. 928; 42 U.S.C. 2061(b)) is amended by striking
.25 out the last three sentences in this section.
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1 (dd) Section 43 of the Atomic Energy Act of 1954
2 (68 Stat. 929; 42 U.S.C. 2063) is amended by striking
3 out the following: "without regard to the provisions of see-
4 tion 3709 of the Revised Statutes, as amended, upon certifi-
5 cation by the Commission that such action is necessary in
6 the interest of the common defense and security, or upon a
7 showing by the Commission that advertising is not reason-
8 ably practicable. Partial and advance payments may be
9 made under contracts for such purposes.".
10 (ee) Section 55 of the Atomic Energy Act of 1954
11 (68 Stat. 931; 42 U.S.C. 2075) is amended by inserting
12 a period after United States and by striking out the re-
13 mainder of the first sentence and the entire second sentence
14 in this section.
15 (if) Section 66 of the Atomic Energy Act of 1954 (68
16 Stat. 933; 42 U.S.C. 2096) is amended by striking out
17 the following: "Any purchase made under this section may
18 be made without regard to the provisions of section 3709
19 of the Revised Statutes, as amended, upon certification by
20 the Commission that such action is necessary in the interest
21 of the common defense and security, or upon a showing by
22 the Commission that advertising is not reasonably prac-
23 ticable. Partial and advance payments may be made under
24 contracts for such purposes.".
25 (gg) Section 203(e) of the Act of April 3, 1970 (84
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86
Stat. 115; 42 U.S.C. 4372(e)), is amended by strik-
ing out the references to section 3709 of the Revised
Statutes and to section 5 of title 41, United States Code.
(hh) Section 703 of the Act of June 29, 1936 (49
Stat. 2008; 46 U.S.C. 1193), is amended by striking out
subsection (a), by striking out "For the construction, re-
7 construction, or reconditioning of vessels, and" in subsec-
8 tion (c), and by renumbering subsections (b) and (c) as
9 (a) and (b), respectively.
10 (ii) Section 8(a) of the Act of September 30, 1965
11 (79 Stat. 894; 49 U.S.C. 1638(x)); is amended by
12 striking out the references to section 3709 of the Revised
13 Statutes and to section 5 of title 41, United States Code,
14 in paragraph (1), and by striking out paragraphs (3)
15 and (4).
16 (jj) Section 5012 of title 38, United States Code, is
17 amended by striking out the second sentence in subsection
18 (a) and all of subsection (c).
19 (kk) Section 832(g) of title 16, United States Code,
20 is amended by striking out "$500" and inserting in lieu
21 thereof `.`$10,0-00".
REPEALS
SEC. 902. The following statutes or provisions of
statutes are repealed.
Chapters 135 and 137 and sections 4535, 4540, 7212,
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1 7522, 9535, and 9540 of title 10, United States Code; section
2 637(e) of title 15, United States Code; section 7 of the Act of
3 May 18, 1938 (52 Stat. 406; 16 U.S.C. 833f) ; section 7 of
4 the Act of March 3, 1875, as amended (18 Stat. 450; 25
5 U.S.C. 96) ; section 3 of the Act of August 15, 1876, as
6 amended (19 Stat. 199; 25 U.S.C. 97) ; sections 602(d) (3)
7 and 602 (d) (10) of the Federal Property and Administra-
8 tive Services Act as amended (40 U.S.C. 474 (3), (8),
9 (10), and (19) ; sections 10 (a) and 10(b) of the Act of
10 September 9, 1959 (73 Stat. 481; 40 U.S.C. 609 (a), (b));
11 section 3735 of the Revised Statutes (41 U.S.C. 13) ; section
12 3653 of the Revised Statutes, as amended by the Act of
13 July 7, 1884 (23 Stat. 204; 41 U.S.C. 24); title III of the
14 Federal Property and Administrative Services Act of 1949
15 as amended; 41 U.S.C. 254(b); section 10(a) of the Act of
16 September 5, 1950 (64 Stat. 591; 41 U.S.C. 256a); section
17 510(a) of the Act of July 15, 1949 (63 Stat. 437; 42
18 U.S.C. 1480(a)); section 6(e) of the E URAT OM Cooper-
19 ation Act of 1958 (72 Stat. 1085; 42 U.S.C. 2295(e));
20 section 1345 (b) of the Act of August 1, 1968 (82 Stat. 585;
21 42 U.S.C. 4081 (b)); section 404 of the Act entitled "An Act
22 to authorize appropriations during the f scal year 1969 for
23 procurement of aircraft, missiles, naval vessels, and tracked
24 combat vehicles, research, development, test, and evaluation
25 for the Armed Forces, and to prescribe the authorized person-
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88
1 nel strength of the Selected Reserve of each Reserve component
2 of the Armed Forces, and for other purposes, approved Sep-
3 tember 20, 1969 (82 Stat. 849) ; section 403 (c) of title 050,
4 United States Code.
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95TII CONGRESS
2D SESSION
S. 1264
[Report No. 95-715]
IN THE SENATE OF THE UNITED STATES
APRIL 6 (legislative day, FEBRUARY 21), 1977
Mr. CHILES (for himself, Mr. ROTH, Mr. HEINZ, Mr. RIEGLE, and Mr. PACKWOOD)
introduced the following bill ; which was read twice and referred to the
Committee on Governmental Affairs
MARCH 22 (legislative day, FEBRUARY 6), 1978
Reported by Mr. CHILES, with and amendment
JULY 13 (legislative day, MAY 17), 1978
Referred to the Committee on Armed Services, by unanimous consent
[Strike out all after the enacting clause and insert the part printed in italic]
A BILL
To provide policies, methods, and criteria for the acquisition of
property and services by executive agencies.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 ;
5 a@ the "Federal e cq isition Ant of 1977?.
6 (b) T E OF CONTENTS.
see. 1. Shaft title; tftblk-~~.
'See. 2. Declaration 0i policy
gee. s Defin t?o.ns
TITLE I ACQUISITION METHODS ANTI Rr.r7f_Ur A TORZ
ILY
.cv'rs~pxtrrirozaZ71Tl~
GUIDANCE
SSee 101. A c ?;tion moth de
II-0
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o
TiTI?E VI A_TION O A TTTTTTOR4gP
- .u1s'==pSfp1" ZrO.I'i"C7YF'Y-t
ey,e ageney,
TITLE-VII PR IRST-S
2
ed
TABLE OF CONTENTS
ovrr-r-u-
~ ~~ II r=CQ - r By CCOMPE. T1TI 44 Sr. A T ET' 4114
80 201. Cri+eri" for use
pee. 302.
T ACQUISITION nv /~1O PETTlr\TTTT\
See. 901. r'r'itcria ferutse,
see 902.Solicitations.
See 303awaid, a iens.
See. 304S gl ,:,~
??-e zziccPnrafte.
See 301 Pr., ^,.analysis and st data.
See-30- Access to re .
TITLE TV A CQ TI 10N T2V COMPETTTTATE--~zr T
. ~z~rzrc*xirz a xz~x x r~ SM A T rnar,
PROTTASE P OeEB++RECY
~ITLS AJIJ ~
See. 401. Criteria for .
See 409Solicitations
See, TIT E zr CEN- T' A r nl7l VISTON8
901. C014tvaet types.
. ' r, cm~ , `iarngecr"rt cfees.
see. 609. caneellatioffs "ctiioiip
See. 604. Mtiltiyeaf- eoff4ftetH
See. 60a Advance, partial, and pvogvess .
See. 606. ed daffia ges.
See. . mid n ii gs
M1111- ~j
See. 608. co t '--
S 509. gover-R t i i
S -
f I-etwttli.
See. 701. P urpose.
See. 70.3, ~l oceeding
See. 704. Ge al .
TITLE Tr T111irTi TTTS A '~TTI REPEA T r~~- ~. ~ r~nr .~7 AME See. 801. AFAendments
See. 842. Repeals.
2 SEC. 2. (a) FUDiNG&
3 that
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2 become tdated, rented, and iteedlessly ineO
3
4 (2) these defieieneies have ?ntributed to virnni. ,.
eaftt ineeit r
consolidated
a new
n is on a base of
MP
teehnology
bL7
(b) 1-1-4 he-F-A-by deelared to be the poliey-of
-f p?oper-ty and sew-
be ?nv.fnrmnc-
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new technology
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enterprise by substituting for ,latory eontfols the
2 eentives and constra
rs -of
nino agen and ~~ir~a th rpliativ oaa
TETrLw vl
4 new tealin^l^
5 ?weary that prom
6
7 judgments in DfePing ZL wide range of competing
8 alternatives!
9 (4) pro IOLIi-both new and mall b sines by per
10 mitting all q ali ec
11 for andg
12 (5) provide l1
13 nity to earn a prof
1't
needs and w th 9-0-In
16 in other markets ra
17 similar to the ten~ir
18 (6) saieg?ar
1.9 Hai fteeounta Dill Ty 4)f PuDite
20 of e4eet? comrneti -awl:
21~-
22 of the United Stat6as to rely on and promote-
effeet
23 ompetitinn'o the forts of several set eys acting rode
24
other to respond to a null., need ' -
isles a ~ -sue
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5
1
2 d, a de
aft-
sife
3 iron to bet)ei!fofmed, performance re -
5 is-'
G ft-vftilftbility to -L X
7 of information required -4o a to the tci
;
8 needs
9
10 seller;
11
12 tivoffe that provide a range of
14 ?a /or delivery
15
17 ,
18 sealef,+.
19
21
23 >
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3 -solicitation; scicetionr f
4 fe.
5 (b) The teritt "exteative >>
6 as defitt by seen 101 of e 5, Uni ed
7 States Code; ati independent e,tabis etas define &--by
8 section 104 of title-err- Stfttes -4t
9 shall cl,de#be-G
I fief". -A
g
10
11 States Cede;-
and t4w,-
12 The -
13 ,f-ne subseetioi4 (b`-.
15 between the Agency heft and th e
16 er-
17 vision and d; eetion of the oeur ng act:v,+3,
18 (0) The term "property" neludespef!son r y
19 ,
2 ,;nation of thep?rtic lar public neo+1-'
20 property ift being ^nd l
21 (f) The term "Ser-,
24, s r to beeeHsu~mei making egu s;tion to
25 achieve An en4 purpose;
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7
1 ect, Zrec YNN /onrecurri M~ n otl.ei related - osts ift
2 rc1'zired, nN nn*;m ate +n be incnrre in design deye!opn@Rt'
,`~~ pro notion, operation, maintenance, Disposal, 4ftiI ing, an
4 sappert of --ft --e-qui-Rilixon evef its useful life span, whereve
5 @6@h factor is nY Yn~;nnble
10
12
13
14
15
19
i
otest" means a chal enge W the
t
Th
"
)
(
e
y
pr
e
:
e
NP
9 -ETI[OPS A
-
RY ouii4 A Ne
A
:
n
TO
F4
CJ3 Jl tl l\ VRG
-U
2
20 @@H4petitive sealed i Yv n+hna as pro
21
+?+ln TTT of +hi A "+ ? n
'r; l ift
+?+1 IV ofth A,Y+
Vide-d 41
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8
!t~if~Th +t, a y -plc ' n ,oN11ty-ser~=eo
are equally Vid"i t+ "
68is of the + P the
nna n+t,nr n '}n ' as n r}
1 -- j-ccrrcf-v~ncrcircczrLC-c~~v
u ho e tablis t.vd u 4y the n a
6 +"n+n,+ of the O 'n of FCna
"-~""'SCC-'~'rIIGG ~
8 ~~~~c
8 n a,,., ? of the O ffi r
ZL" 402. ~cc, ) The Ti Rl1l['~IT~C+ CH E+~~Eid-
9 oral Procurement Poi, t is.
a
10}tin nn}h n, +n nn,vFnrrn
11 jeet to the fiffoeedtir-es set f.
12 Li W44417 + ,Pm :s f WE the date . +
13 o?this Act, to 1
i
14 Federal ,l +;nn
Itzt~rr-rlri-l.
-ret cr; hna
-fo --4 1sfi ,nrn efjh ter, i
W-444- W44(41
i menn?n
eS ve?utvire
(2) to make peiio4ie 41144"S I)f tIIP use of the-
19 r f s ion -mil -
21
22
4' ,
(3Ry rvn~rnr T ~v iiLTI7~~f.L'CPl
~~ ^
~ 0,14d 4111@04
23 ilnnnnl rnnnr} 'iffed tinder
c~ 1
24 ~'L3-den ,'t'nnrt of l,;c
25 e this sgc-tie nduc it
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vision of law
MMI-I
0 tion.7 pursuant to neet,o'n? 202 and Z2022 +V"-his Act; and
SEARED BID
TO
Si o. 201. The competit ve sealed bids met od should
a-mount specified -' -title 1lT 4
14 (2) the p blic need c n be
15
(4) suitable P1:0due-tS or- RA
16 a-Rd
17 (8) the private qseetor- ift4ustAAJ base will P;FG;zi4e'.1
18 u
19 Pete for and able to perform the 06fitfa
liy--on the basis "f p 4ee-;
(5) the ti a available for
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10
1
to prepape the piife iv e ae do and to c rry out t
,
2 rnnnisi+e a m,li istrat ve minced rno ? A1
3 the property-'or-service is to be acquired an /
5 ?n cessions ? and
6 (7) the pAee :!-thep}e or service n+
has net,
7 Wei4 "+nblisho by pnrcv?n?+ to law.
8 INVITATION FOR SEALED BID
9 SHe. 202. The ;ie -T sealed bids sal b
I a way that
11 (1) the time PAgy- Opening the bids=gym s f
12 f, nt to n mit effective ?nmpetition . na
13 (2) the purchas
14 -,n intereste ?ntential bidde r, except =ere restricted
15 bidders qiialified '-fide tthorged set asi4e
16 program
17 (b) The ittv-4ftfien hall include a description of the
18 method to i e ?and in evaluating ~,;~c inolu iu -e fnn+nra n+~,or
19 than rice.
20 (e) To the extent p r+
21 of the Agency,Agency, pu e descriptions shall be stated l?-n
22 tiona terms to permit n ?
23 ices to qualify, or, when a
24 inn -must ho .a nn+n t~ performance ,,,nn
11 1 of
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11 7
}inns which stipulatn range of acceptable ch ran nristinc nl?
3 (d, The preparation and use of definitive prod `?'??P o
4 nations in a ppuyehase do ?iptiov. shall be subjeet to prior
A
6 wjittnv+ w9ti ficatio to be planed and made n part of the
s dude the use of functional or p Fformance specifications and
the. purch se descriptions
(e) WheFe the use of f nctional nr performance specifi_
cations male imilli rani tica4ln to plan .
16 Axrbose technical prop o als moat the standards set forth in
17 the , urchase dnncription.
1s Trxtz UATION, AWARD, AND N TTFTC A TTl~NS
:. -203.---{a} All bids-shall be
4H40 and plane 4404 i14 the inyitatio
(b) f~ ward shall bn made to the z~rn vaponsiblv e bidder
Po ~czr~~or~ bidder
22 whose hid nn?~~nrms to the in c>ita Sinn oars is v,~nst nt dsrnn
23 t the Goverrpiment -and other- ?a tors
24 co s .
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1 (e) N e- err-award i" loll be Hiade in w+Ai+ig
all of et bidders shall h! ftppfopfifttoi:.; of i r7
1 /I1Tf11T TlhE I TIT CT ~c+TTT11O ~r T) V l tnA TT)T1rnTIi1TT7T1
1.1. T - 117 1 13 -I. J
_*jr lpr(1T A rpfl)N
G FOR 14E
7 Sue. go!. The e
S u sed i t1, "cgu;c4 ~1N1k-.(}r prf1j4(1 ,rtinil csez'.sT-rc~-rrineS . 1
1-- ~r'cr~----
9 ! 1 1 the pa e(l total
-viiirirz-rr'. prieeZ ect i
10 the amount spnnifie4 in titleIV oftthis--l1 of for use-of
11 the corm ' hivestwilrll piucfittreproceedures 4ethrod; and
12 (2) the ncq isit+i'oTI esTTnn met ?h ?}
1 / VIT~ doT~'CTt- S'- 12Te~7TiU12
13 establishe "^.rs,inv4 to W.1'Qtiw 101 (b) of as set forth
17
i t section 20-1- fop
~1 n SOT-TCIT A TTOT-FT
Si e. -ail 2. (a) Sob-citations for el-ti hall be made..
fro..... .. sufficient , ,,,,,,1 !' of qualified o ron-Y n as to obtain
c
i shall be publici e ii nll /, /1111 G117np
19 with scctioii 8 (o) of-ti
44, with eopie
20 of the solicit t'inl 49 0 . pro o other n}'n}?not'nll so ?!1
1
21. lipoij r test.
22) (b) (1) When pr o
R I- ,fl n sonable promptness n a
fl ' in making a4 aw 1-1 19 h e' solicitation4 shall incllude
both the methodology `lnr d fie, -relative i'npnrt rlwf --f*J- -all
factors to l)e
,ijige,ffilt
,14 4W
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p ! 1.)
1 ~.}}d for--i nal cle`G'-+LC"" !it ftliv case i'--Vi4ee is i'eludl,ed
1 vv ai vl ~I as.
2 s ltri ~c Ex the fey iit's evaluation
3 . '1l be based to the, - _te,t pfftctieable
on e
11 4 total cost r a lte J e d ctal rte ed attdnoton the
7 factor-s which rmay affeet the outcome Of 46- mpetition
8 s# -communicated to all eofflpetitoirs.
9 (e) To the iiiaxinit th e.Ntettt pi, wticabe, se eitation
10 shall `et forth the public a f?etioi :,1 terms to
11 :+ the fipplientiott of :mil-iety of of ,,. ca,l _t
b
12 t
1J
15 l
16 tiff! competitor.
17 (d) if eithef the ?+ of -flffl. identifies,
18 inadootif e?e? iii the solieitation which , ,de st -117-d-
20
21 ewnnl lift-ifs,
22 N-, -
23 Sue.3&3aXntteti or or discussions shall be eon
A-11MM Hi ft OOMPe"
24
25 five, soleiv f +1 purpose of o to-m1}1 8-1y-nee
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1 clarification t
3
5 tei+, whether f ,
6 <
8 7 ration bceernes av ;'cabi 6 t aw the e4toiee to--ft
iee.
10 (c) Until ?a is made, information eetree - g the
11 ?d Si tall et be a: ?l
12 bilitie
13 .(4 n r S61114
14
15 ilH ter^i; 64 tat iof}
16 tifi"at:.o.t of award to al 11 c.'~ offer on shall be made
17
18
19 SEc304. (at) C
20 scribe i iii et , 30 4171-3 neediiet be rt? a if
22 award that it
24r not eevttil le ; a one-e envy pfe ?ls ; t
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2 Pt!esident
a by the nay"
7
8
10
11 to be ired
12
13 g eases, be buy negotiation ?t
15
of seetieft 805 (e) AA be fequifed in the ease of eztty siffg4e-
16
18 the ,+ ill e questiolk is greater iu
19 itt section A0i
20
22
23 __ a Governflient'Aht
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4 -_kNAI~ 8 Am) CO In D A T A
5 S~e. 996. ... 1p
l ~-l ~-r?r
6 or mod} pagi of anj' contract or-subcontract, he eon
7 Vl CCV VC1S tract` . n,..,1 any stbcon4+ n Uev ~v1 shall be Z A r e.l 1 ?t
tor uult N
9 vx o~n the ran onableness o~
r-xx x vcc`mtr~eroxv*te~e- tit- ili8 9!
E-ACh nnh6n=nro93'
10 ?fythat, to the hest of tL l IU44W]
11
12
13
14
edge ft"dbelie?, suchv aato is accrate, eoffiplete, and
c rent as of t1le date agreed upon bet ween the partin
(which date shall be a r+, 'Y
agreement on the Ile otlated price) . The coni' ctirig n n,Tlr
shell use prife analysis techniques to analyze and evaluate
(1) +he price of ,the contract,subcontract, change
or ry o iFlea Linn is less
ofcer may at his discretion however request pricing
changes or modifications,
ift ~x There then total amount_ coeds the a mint snecifiecl
sectio ,1 (11 of- this act but is less than or equa Gtoo
$,;00,000) i Or
Sri established cntnlog fl-et
b
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of commercial item s olal in substant1Ol n?t,n
iosto the genera p is; o
~~~--' the ~~~oe ~- is s.1 -Already set vvIQ by ~TS rrj
n nli-occ ea law v1 iQgp2CRVrv lntio
(4) negotifftioti is based on adequate price nom
a~.L+ e significant
7
(5) 4-1,
8 n,?n rnnnvi+ nnmv,n+. +i :,n v,,,,.nl-, c. se v,anz.
9 reln+ivel~la stances
13
--or---for-other- nogo
14 (1) the r?traet^r 6,144 any n?1,nnr,+,+t,n+nr shall he
pro-
15 ,
16 gr9e~ c~, 1 t~ilua,t-a, 1.earing on th r+asenftblettess of the
os~~~n~o~ono
17 offered pri^e; and
18 (2) 84 1+41 certify that, to the boot of hi-s- k-Howledge
19 and elief, such cost data is acc ra't nnm?le+e and cur
20 rent as of the date agreed upon
or agreement nn the negotia tell price)
23 (e)'1 Time co tlact-o change oo zmodi tliii
24 rn+n ?xdm-riel~----seie~
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S. 1264-0 3
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18
1 , 4611 be adjtt9ted --t"
2 exclude, ige + ~iti
3 b _ t ~ ~ _! gc__ head that:
4 the contractor Still)
ft a eel-ti fi(iL{L+
OC~"Tle, r'CL1ZIl?TICR~['ZlTtL'~~''-[ITGII~A.7 ~~CTCfTZ7'CT~ C~[TITI`
6 .
7 The _gg itew,
8 1440+114 of s 3 } 77-TJu , l 11
9 el de " written ;us-tific.u, 1tA be , l lCe(I in fits d Hiftde it t
U
10 of the eoV`t-..net file net+? 1'
, r7
11 SieIHs of sections 305 (a.)- nd (li) must be waived.
7
1.2 r n) At A t lnn, + evn .i +i, ree j-en,?c;7 ~i egiliil [ b with the th?Yfl
13 zv 7 it
13 year after. nilnn+r, en of thi- Act, ti
1SC-ZS' 7s trator o th
16 for re igien hereto, need i -any ev er-pro ;=nom
20
21
0.
7
b or- n[?anl m ate i.1`.ls At 4
u t I L ~[Y7""] 1CZ(`+ ~~S 1[j^[/
@ti;,e date, the dmi + a 41 tall
?
report to Congress "Y -cnT~C~[~`l revs v'nr' which 1)y it,,ielf,
SH 91 expiration efthree yeetr-s-ftftei-
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r of the U,,;+cd State, at
4 papevs, ,_ --ether dEttet. of the 4 - @tor--&n-d
5 his ?ham ,.+?actors that perttt to, uI itn-olye trai ttetio "ry
t
itrar r stibeontme or to the ttmendmeH
7 thereof, ; e ting the a .etiruey
,,,,,,vrrr.,1cz~+e,, .,~.n
8 i-~rcr~--fl~l-E~ --etift-eney of -aura-eizaei'5ef.rr6ii
record _and +l, i, 1 +:, , +h
~a
10 itegotiation, b, or performattee of
11
12 er-
13 h41i A.` ~eiiey head - t-~erttmn , with cottettrretttc of
that wtiiver- would be the ?l,l;c
16 and e-,ifffninfetions by emeetiti
b
22 and exftminatio
He ftyly ,-d-eeu
hen
23 tions to be isqued or atithorized by the -Office of Federa
u
A. Procurement
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1 TITLE TTT A ISITION BY COMPETTTTTT*
2 Try TR.ES METHOD
3 _ _ . .. ['I aI'LRTTIT A Tlln TTd T.
VNS I
4
a competitive small purchase prose-
5 method may be use tl1e ae uisit;on of property aft
r
6 se ces under Y-egula - '44tLOViI7QJ or
7 Office of Federl Procurement Poliey i n.ler sew(-1)
metal contract
9 $1 n non but in lieu of this methodl the contracting officer
10 may use eithir of tom- 6'8 ?cttiye met ods presecl t''ed in
11 title T er TTT of this Ant ~e-- t. ~_ _ }
13 (b) At act every rs, beginning with the,
14 third yea enactment of thisEck die Administrator
15 oche Office of Fedora.
16 the prevailing costs of labor end materials and may revs
17 the amo nt stated in ce p 401 (a) or ,4, prior revision
18 tcrhie 4 iot`T,ithstonding any -her provision of law_--_
19 reflect An increase nr -decireaw by 'At least 10 per c lt?rn
r7 materials At least sittn-days in
21 of its date the Administrator shall report
22 to Congress any such revision ~~hirh by itself or---c11: nu-lit-
23 tively with earlier i,,ases represents 50 per cent?m er
24
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SOLICITATIONS AND A T#i A DTS
SEC 442-.-T-
3 te--theeo rotor whor,o offer ,n -
9
D17 (1T7TF4l17,T
Rua. WI -acts Ray-u"
e,ont noting ahal not
10 -wifl
11 pfome } t --in$erests-of--the reGove ment a @ept that he
13 be used tmideF any eifeHfflstml~~O.
14 (1)) The pt?nfnrrn 1 contract for-m,4
15 1- fixedrr nn ~trya Wh ne, +hn ~nn~ r
_ J1.
1 ~e ge--eel-type
20 AGAINSTcoNgPi
21. SEG. .
24 contain a W4
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1 : w, agency has-been employed-or retained- to -solicit or secure
2 41+e- eon-traet-tupon---tui agr
ee i ent or understandin -of a corm
b - C3
3 mission, percentage, brokerage,-or o-n-tingent-fee, ex f ti '
,4. bona fide-employees or bona fide established conxtroreral or
5 sellijig a envies ~ n}aint fined by the coutractot fort ~ r-
(i pose of securing businne,s; and that for touy?4weach.or v,io}aa-
7 lion of the warrantee, the Goverannent may annul tl con-
8 tract without liability or deduct from the contract price or
9 consideration the- full amount of-tlte coInIII-fisSion, percentage,
if) brokerage, or Contingent fee.
1 t - NCELLATIONS AN ID RE,J J CTIONS
(a) Wherefile contract. _Eg-officer clc~tr~rarlil~ues
that it is in the best iaatcrest of tine Uovernnierlt, the con-
tract ing officer m aay-
(4 }--wit lydraw- a -small-piu'e ease-order prior to the
consummation- of r- contract;
(2) I ancel-tall ;into-ita-t ion for sea led bids before bid
opening or- after bid Opening but before---award; or
( ':) caitc('l a, .rca_u) ;t f.ur?--fx'oposal and reject fiif
011e :
{l>) G~'lrcn rc;Elue,tcc1, tarc_ e tailrac tier aaliic ci 811,111 fully
inform array alnsa{a c r,fnl elf u ~ r pia#?1oI of Lire {~,asons for
the rejection--o? his of oi- or _ 144.-
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Ai 6j,T4N44-_VR-
`j,r. 50_4_._4-,,,4 Exceptate tBr ise pr e* ~)~' k ,
3 n
4 or v es s -- -et
5 appropriate L`_ flye available fan1/1 &J-equate for pay.n-t =
6 the Arst i a - ye iLLf ftnd 1+e '~ gvJ' -h determines-t
-Z t1TG' T,r} '
7 (1) the Gov-n7'1-4--i cnt*--t the v>,rnvinr yam..
8 so}~~sas b ~c e --t period -e -4e---cA}n rftet.
9 re so 1,13-~'33 T3 a - f'E~}2t}~t 3 g nn- -
1U =mot w e3 e 11~e -hest- interests of
11 the United- +, -by--eneourag rtg-effeetiVe eonipetit -
12 -or- -p oti}oting--eeon-on}ies- in---performance and ope atiei3.
13 {
Dm
14 b'}~rb' efl Pot ~- 1~`rl - g}~>t nrGnritinn to the fye Yeff_
ley ~}tl3t}63} }t330SP ~}~U}SE'( tl$~~~t9 } tkA ~1?vrirvictiv^ii~
16 4n--such--form-and ofsuch content .as the- Administrator---nmy
-require) hy---the Agency hnan' that r+l ~-}{} }-} --}3}
-best ifitere"ts---of- of each sue
And e n nh exee ti nn ~mra rE _ { } -deII ere4
Conn~~. itteeg on -Government O1
rni
21 tH ,no and the (y~nmtttlo
v m z d vc
22 o iz.?i rasp =tattves mod the ScDate, respectveiy:
23 j 4--A41-y- e&r eell tion costs inC1n e i- c? ~o- jd. from
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1'
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-Grigilkally-a-vaila4le for---pnrfo+gnwaee---ef,
wa4lahle
3 obligtt
4 1 uv tienn mo an CUIT yaila
5 4 - #F3Bj Tl m4AI D~ ~
PAYMENTS-
6 SEC. 1505. (a) n
7 (' make
-a a ee 1
9
1 !1
insert -12T`'-'q\'Y37eitatip1=Ca PVC
11 n at 4
Tits ii r- ae U7IILC-
14 { p ~nn ?r..^re s r c are made the Goven-
16
11V0
z-atinn of h contractor, 01! p oe ed
-iimberaL-F-y--4Ry-4iw
or ..
interest.
1 a) n dy nce paalrmpr~. nnf~.Pr suhseetitl } /s, 1 R
22 the Agency head at d , Cn would he in the public 4nter_.
23 u pecuity may he 'iiiihe form of a lien in fa
24 t-he C e en--on-#h--property - eor-trait - -for, - on-the bal_
25 ., n n n? n + -'-wb (e b -saes-Pay tg -w"e esj ance in an Approved For Release 2006/02/07 : CIA-RDP80SO1268A000500030003-3
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25
ac the partie
3 all other linns.
manee of the eentraet-
5 SEC. 506: _U-pen th a recommenid tin ~~ the A en.nc+
7 remit all nr
12'
DETERMINATIONS AND FINDINGS
S'~-ZDTtr~ a22fOIA
15 w, ittvroe x r ~== b findingof the o irnr marring the determination or
~ a
16 460i inns RH4-44a
contra ct ~nr ~n~n,+ ,tn_
~d by the
17 ?Gnt71TTTTTVT BITTING INFORMATION
18 SEe. 7C 5"Q. i*T- if the ntractinrn fun,. o,+ Piiy oth(w
ffor ttilrnng the an,lroprin to nrnnn n:+
~_ rr i o ..
.VI la u
General of
/111 Upon the request of the A
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84
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12 SEC. r Notwithstaildi
-
13 law, an agency head 4nay-gT&Rt_&_
14 c~n?treill. rorrniremei ts~1
15 years to that Part of a + mil''
~7 26
cr tinted Sttt tes the Ageey hshall make b head rcu~rn available to the
A ttorti,ey General infrv?rn _-which the Attorney /7exieral
? - -a d-}'eke-~ ant to any inyestigguii , Prose-
trust laws or other 4at44e
(c) The A geney hea,
the Unite,] States urine,. the anti
16 aftitely - managed- --acoo,u te.a for if more than 75 per
eefi-
17 turn of the sines ae rity of that part of a contractor'-
thei ~, ttorney General in any investigation and urn ecuti n
r vz xxv~~~vxrvrarzrr- .1 1
antitrust matters
GOVERNMENT '
ation provided in subsection a-}-
estimation and prosecution in other..
18 pperation as measured ham,
d cterl under commercial
25
aKeee
m Government
WftO4~,
wh-e-re the ment awarded -p cv
type contracts or where price was the dec rng or a signif_
Gant factor ter award.
hal~=axe- relieve thAt contm_r pirofA
center frnvn Government but not General Accounting Of-
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6
vErhe"d sts.
1
(8) pmvisions of the Cost .cenunting Standards
and development and bid and proposal netivities!-a d
`5) pr-ovision9--of the 1?nnngotifttion' A it.
(e) Such a waiver shall not be granted, a may be
rletern~ine!~
revo ed at any-time7. if the A geiwy heed
~
farAthr r - ---s. thA -- ?$fcial an4-Oe -
ernment etWv?_- itivitz~ ins icient to rt- ixnt.
eontractor ntivitcr nude
15 MAINTENANCE OF REGULATIONS
v
17 VIII Of thin A
20
21
22
23
25
inn (h)rpla+
s
by the Administrator of the OHIO- 7of Federal Proc Bremen
Policy prr iiomi fJulgaed-or-~ one ill~L and cigh./~-
r-vrrvyGu
7 + actment of thin Ant chill remnin nr of
feet until repealed--day--or-der--of e Administrator of -the
of is Act, whichever
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1 is regulation-
2 tion may be amended nreral shall
authority to decide n prrotest submitted by -Au- iu-tw-Acted
party in accordor,ne with riles and regulations l,e shill issue
to section 7".
Pursuant
ontiyit,* lion received) ?ad->e of a ,protest to the Oo,nntrollnr
~nnnral xx l~iln flan pint+a,. ispe}}dl=}g before him: P y2i d d,
7~E}t,~+~,..na. That tl1e head of- All
e~ ec tive agen.:x may antl,or_
14 ize rev award of a con
15 npi,> n txrr;tten -:ndillgithnt tl~e inxxcox
ter e of th Unted 8ttnyt T,
cco cxxvr
16 ;whit permit awa'ting the de~lkile of the Comptroller
17 Ge neial And sic ed further, That i~-r I e e -i
18 advised prior to flee award of s?nl, 'rindiiig
19 (e) With respect to
proteste4 +n lei>~ in accordla?ne with this-
4-e-iF-Al is authorized o declare that
1 award,or award does not Gem
23 port with law or reg lobo If award h as been made prior
24 +o nl; declaration AV-- OjRPtPOIIC-F May
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tll-be-4ef tc d for the een
2 ve fence of t e_1("o"Ver-fiment'.
"3
4 SEC. 703 ? (n) Procee4i"f'a'll be for TCCl to the
5 fullest exten? possible
10 interestedparties and the executive a b
11 ;,wed,
12
13
Comptrol e"
11 r nea a, shall ' e
1G ~~ There sha l be no ey. par-to proceedings before- ft e
t a
18
19
20 (3) A conference
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:"y-
(4) The gniva vatrnll
~ti of General shall, for good tee
6 books and -cords and--atten4danee of witnesses for the
7 taking oi
8 4y aperson ides, is found, or transacts businoss
9 ` ithin the jurisdiction =vi a t7 4 ted States diT
10 courts the court,upon application of the O o=4iptrolior
11 '-Genera - shall have- u.
12 order- requiring him to
13 General oriris designee- te produce the bookis- e,n e.
discove proceedings endmay-
as requiring the production of
17 C d 3 The Comptrolle.
a-BY
retestfib rte, to be frivolous or which, on its 400S 140t state a V lid basis for otesty~v~L
~ r+:
xd, or sward of -A et does.
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toobey the Eder of 4-
25 may remand the matter 11
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33
The
7 '641reme t j r
TAT RATI-P1 OvTL'~
l l1
13
SEC 7l1 1 The Comnt^ olle Connrnl jinn pnrfnr~^- vi
Vlf. U
nntc rnkn
~ niac v
ctvsrs
n to the
exeeutZ~C[tion oft the protest ni inn function He may delegate
his autherity-
A ee u tingr nn.
9f
1c1 ' Q ~) T ho e A grit l'ture
73~ o
18 -+, t 1923, 9 Amende by Striking out ", aft
25
for improving the proa v-
'v~iIII~JS~f71T 1
nn tin pn ge -
Sections 101
Of
rieultuy@ organic Art of 1944
.-(58 Stat. 734, 786;4
Ag
TT 130, 432) are amen d,by striking out "in the opeft
ma tff
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Section 2356
(d) Sections 450' aii 0504 of title 10, United State-,
4 Code, are - c a a
14
15
"United States" and i to a in lieu thereof a period.
ons 4505 ?r
10, 1948 (62 ,Scat.. -4-283; 12 T-z
F,,PIIe Revised-s
Lae) Sectio 502 !vy ) of the A et of December 3
1~ vir 502 I ~q}te
n
19.
Statutes,"..
(h) See on 708(h)
amended .August ,n ya 8 (62 Stat. 127912 U S.C 1747
(i) Section 712 - of-the Act of June 27, 1934,
as
amended August 10, is)
747k) is amended- loy s
to section 3709 of the Revised Sifatuties"
W' Section 208 e Act of June 96, 1934, -as
amended October 1,9,1rt470 (84 Stat. 1014; 12 U.S.Q.
4788 (b) ), is amended ~Tstriking out the fasts to ee=
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1968 V
n tat. , 46 U.S.G.
4 ftfflelided (4.4- ., seetiett ,
5
6 Aftge or- + * count of prop
7
4-1 f
8 made nd c
9 A.-reef a Tcot rx-ea $7 000.r~_.
10
12 "STc. 4. The For st Sepviee i t d to al e
13
14 e~jpeyifaettts ftt!e to be made or- (2) gpeeifil , -test
15 mode (R) f6f expefiffiefita
,
16 t' +n a + theif suitability fo . adaptabilk --to
17 aeo0iiiplishment of the weA for- ~--bgited or ~
20
22 (m) Seetion 2 (b) (1) of the A
23
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2 regard to thep ions of seetion 3709 of the Reviged
3 Statutes of the T sited States (44 U.S.C. 6)
1) 2 (b) (1) of the Act f
6 (1), "e m4eiided by -f-,
9 (o) Seetioit 224(ft) -of ithe Ael of November 8, 1,961,51
4
10 (79 Stat. ; ,
20 4 G. 4094 (n) is fflnettded by stt~ki-
1.1 iag out ", nd ,ithout .gaf4 to Seetiott 9709 of the ]Revis-ed
112' Statfttes (41 U.S.C.
".
13
14
(p) Sect on 7 of the Aet of 20,1=',a
AMAPAP.J
17 (q) See6on 707 ot the Aet of August 13, 1946 (60
21 f9.70 1613, 29 . '. ), is ortitejAeld.
22 by s7trikingTS out and w
(r) Seetion u (e) (7) of -the Aet oi Peeember -291,
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1 $ta . 1010" 80 U.S.G. &6-
exceeC['S $4 ,000.".
".
3 vised Statutes (41 U.S.C. 6)
4 (t) Seetiott 1820 (b) of tide A39, United Stfttes Code.,
~? '? `hereof the "r decal n rrvi3iTtionrr Act
6 aL=~~3=t~b~iir rc~vr--Zrr-~r--'ai~---rr~ vz
~~aet
7 1977 Y~ ftttd by deleting "if the amount of stieh
Seetioft 5002 of title 9 BR,-United Slates Code,
13 Stat. 109; 41 U ` r. G?, b(a), (e), (d)), is amended
lase s (0 id (a), :,a
15 b out "without i-egftr-d to the twovisions -see-
6cwork" and strik ng out the remainder n~ the co~~inr.?
17
18 U.S.C.
sections el t?ng to n , Ohiteet of the fla rn .
21
22
in 66 Stat. 308; 41
23 U.S.C.45), amended to read as follows
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1 shall apply only to p*r4ZLs Vncontracts relating to sii
2 industries
3 tion by the geeretar-y of -Labor."
? r
4 (x) Section 356 (by of the Act of july 1, 1944,
5 18, (82 Stat.17 ; 42 U.S.C. 1634
6 (-b) ) , is amended by-stZ7I
3709 of the Revised kes ? n 41 U. ineIaUse (34,
krase "by neLrotiatic
9 or othefwise) " in 4-).
10 (y) Section 1(b)--of the At o? October 1 1940
11 S++ t 1126; 42 U.S. r y ~21 (b) )is amended striking-
12 41n_ the reference to s4 n- _2709 of the Revised Statutes ift
13 ~sn and by striking out the fir-
14
moo.
15 (z) Section902 the act of October 1 , (55
1940 (5~i
16 S :362; 42 TTa.S.C-1 ~ ) ) , is eid ` striking Out
17 the Pectia
9
18 (a be Act of September 1, 19a1 (44-
19 t?tt. 307; 42 rT ~: r. 1 12 ) -is amended by striking ~~
20 clause (a) , and amending clause (b) to read fts fellows:
21 "1Tb) the fixed z: wider- contraOt
~izrvafiv c -A c- vvrrvr~btr BRa6v~~-
22 f.`f -d fee-*eebasis -AIR not ex 'eed 6 per cnntiim of the esti.
23 mated cost;".
24 (bb) Sections 103 (b) (4) and 104 (a) (2) of the Act-
25 of July 14, 1955, as h Novo 1? 21 106 (814-
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"4ei- this ^+? on s? nh
ear
10
i
41
b
-'F
11
(dd) Seet
eft
(
) -
2
2061 (b) d
42 U
S
0
1954 (68 Stat. 9
8;
-
-
-
13
14
15
is amend
16
(68 iStftt. ,
- -j g
,
and Seetir-ity, or- tipopt
22
the Ftevised Statutes md to seetion Vr, Off 4' IT-104-1-4
desCede.
23 1 1
24
25 Stat. -988 , is amiended by str
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3 of the Revised -Statutes,
7 tie e. 'artier, n-nd- n
9 (-gg)~- e~ ~e -e the met e 3,
-Fil 10 (8'! Oat. 115 49 U.S. r437 by stri
11 ing out e-references t ~ see - -370 -~; the Revised
12 +; tle 44~-T~ ~~ t cod
13 +hh) Section- 703 of A of June 29, 1936 x.49
14 4 - t a t . 200.8; 46 U.S.C. 11 is amended by striking ot#
15 subsectiems--( ), by St ;out `For the coast uct o , e
16 ee st uct o ,-e gee oning o r essels, a "- in ubsee-
17 tier (c) ,and by renumbering subsections `b) and 4-e-
18 as-(a; and (b), I!espee-tively.
19 (4) Seetion 8() of the Apt of September- 30, 065
20 -79-Stat. 894; 49 U.S.C, 1638 (a) , is
21 -striking out the reference to section 4 709 of the Revised
d- 80@144 t 7 or 111)011 a showing
-titlo 41, United States Codo,
3L-strikingout par grate----43-}-.
24 ~1~ ;nvi ny o tifle 38, Upited States Code, is,
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amended by striking-out the n ?d sentence in subsectio
2
3
4
8 +' of the A+ of May is, 1938
statutes alea
10 (19 Stat. 450;
11 .
12 ssieetions 402 (d) (3) tvnd (d) (10) the Fed
13
14
15
16 _ .n--2 o f the Act of O c t
W40, as amp:ndpad Octob
nitea States C de ; see
~of- the Re is
23 2;i4 (b) 7 of September K ,-49
"
24 ; 41 1-1-8- 0, 5
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1 ;
2 sectti?on 6 (e) of the T~ TTI?.&'A i OM Goo 7erationz. ?t of 1058
3 (72 St t. 1085; 42 U.S. 1. 2295 (e) 1) ;
section 1945 (b) of-
4 the Act of August 4-968 (82 Stat. 686; 42 U.S.C. 4091-
5 ; seetiott 404 -of -the
7 moat of a er-aft missiles,
8 vehieles, ) develop]
9 Armed Fo ) and to r
10 strength of the selected T?
11 of orQes~ approved,
12 ptembcr 20, ~ 1969 (82 Stab. 849).
V A/VV111NV1
13
14
15
SHORT TITLE; TABLE OF CONTENTS
SECTION 1. (a) SHORT TITLE.-This Act may be cited
as the "Federal Acquisition Act of 1977".
(b) TABLE OF CONTENTS.-
Sec. 1. Short title; table of contents.
Sec. 2. Declaration of policy.
Sec. 3. Definitions.
TITLE I-ACQUISITION METHODS AND REGULATORY
GUIDANCE
Sec. 101. Acquisition methods.
Sec. 102. Regulatory compliance.
TITLE II-ACQUISITION BY COMPETITIVE SEALED
BIDS
Sec. 201. Criteria for use.
Sec. 202. Invitation for sealed bid8.
Sec. 203. Evaluation, award, and notifications.
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TITLE III-ACQUISITION BY COMPETITIVE
NEGOTIATION
Sec. 301. Criteria for use.
Sec. 302. Solicitations.
Sec. 303. Evaluation, award, and notifications.
Sec. 304. Noncompetitive exceptions.
Sec. 305. Price and cost data and analysis.
Sec. 306. Access to records.
TITLE IV-ACQUISITION BY SIMPLIFIED SMALL
PURCHASE METHOD
Sec. 401. Criterion for use.
See. 462. Solicitations and awards.
TITLE V-GENERAL PROVISIONS
Sec. 501. Contract types.
Sec. 502. Warranty against contingent fees.
Sec. 503. Cancellations and rejections.
Sec. 504. Multiyear contracts.
Sec. 505. Advance, partial, and progress payments.
See. 506. Remission of liquidated damages.
Sec. 507. Determinations and findings.
Sec. 508. Collusive bidding information.
Sec. 509. Government surveillance requirements.
Sec. 510. Maintenance of regulations.
Sec. 511. Payment of funds due.
Sec. 512. Publication of intent.
Sec. 513. Revisions of thresholds.
Sec. 514. Sunset for specifications.
Sec. 515. Minority business participation.
Sec. 516. Limitation on contract claims.
TITLE VI-DELEGATION OF AUTHORITY
Sec. 601. Delegation within an executive agency.
Sec. 602. Joint acquisitions.
TITLE VII-PROTESTS
Sec. 701. Purpose.
Sec. '702. Jurisdiction.
Sec. 703. Proceedings.
Sec. 704. General provisions.
Sec. 705. Judicial review.
TITLE VIII-APPLICABILITY OF SUBSEQUENT LAWS
Sec. 801. Applicability of subsequent laws.
Sec. 802. Separability.
TITLE IX-AMENDMENTS AND REPEALS
Sec. 901. Amendments.
Sec. 902. Repeals.
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1 DECLARATION OF POLICY
2 Findings
3 SEC. 2. (a) The Congress hereby finds that-
4 (1) the laws controlling Federal purchasing have
5 become outdated, fragmented, and needlessly inconsistent;
6 (2) these deficiencies have contributed to significant
7 inefficiency, ineffectiveness, and waste in Federal
8 spending;
9 (3) a new consolidated statutory base is needed, as
10 recommended by the Commission on Government Pro-
11 curement;
12 (4) further, existing statutes need to be modernized
13 to focus on effective competition and new technology in
1.4 that-
15 (A) national productivity rests on a base of
16 competitive industry applying new technology in its
17 goods and services; and
18 (B) Federal spending practices can encourage
19 the Nation's business community by stimulating
20 effective competition and the application of new
21 technology.
22 Policy
23 (b) It is the policy o f the United States that when
24 acquiring property and services for the use of the Federal
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1 Government, the Government shall, whenever practicable
2 rely on,the private sector, and shall act so as to-
3 .(1) best meet public needs at the lowest total cost;
4 (2) maintain the independent character of private
5 enterprise by substituting the incentives and constraints
6 of effective competition for regulatory controls;
7 (3) encourage innovation and the application of new
8 technology as a primary consideration by stating agency
9 needs so that prospective suppliers will have maximum
10 latitude to exercise independent business and technical
11 judgments in offering a range of competing alternatives;
12 (4) maintain and expand the available Federal
13 supply base by judicious acquisition practices designed
14 to assure Government contracting with new and small
15 business concerns to the maximum practicable extent;
16 (5) make available for review and examination those
17 pertinent Federal laws and regulations applicable to the
18 awards of contracts and those which may impact the per-
19 formance of contracts, including, for example, Federal
20 laws and agency rules relating to air and water clean-
21 liness requirements, and to occupational safety require-
22 ments;
23 (6) provide opportunities to minority business firms
24 to grow through Government contracts;
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1 (7) initiate large scale productions only after the
2 item or equipment to be acquired has been proven ade-
3 quate by operational testing;
4 (8) provide contractors with the opportunity to
5 earn a profit on Government contracts commensurate
6 with the contribution made to meeting public needs and
7 comparable to the profit opportunities available in other
8 markets requiring similar investments, technical and fl-
9 nancial risks and skills;
10 (9) minimize Government surveillance of contrac-
11 tor operations and contractor performance, and to waive
12 any controls and surveillance not necessary to insure
13 satisfactory performance of contracts;
14 (10) pay contractors promptly any moneys due
15 them under contracts awarded by the United States;
16 (11) rely on and promote effective competition; to in-
17 sure the availability to the Government of alternative
18 offers that provide a range of concept, design, perform-
19 ance, price, total cost, service, and delivery; and to
20 facilitate the competitive entry of new and small sellers.
21 Effective competition is generally characterized by-
22 (A) timely availability to prospective sellers of
23 information required to respond to agency needs;
24 (B) independence of action by buyer and seller;
25 (C) efforts of two or more sellers, acting in-
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1 dependently of each other, to respond to an agency
2 need by creating, developing, demonstrating, or offer-
3 ing products or services which best meet that need,
4 whether that need is expressed as an agency mission
5 need, as a desired function to be performed, perform-
6 ance or physical requirements to be met, or as some
7 combination of these; and
8 (D) absence of bias or favoritism in the solicita-
9 tion, evaluation, and award of contracts.
10 DEFINITIONS
11 Sc. E3. For purpose of this Act-
12 (a) The term "acquisition" means the acquiring by con-
13 tract with appropriated funds of property or services by and
-1.4 for the use of the Federal Government through purchase-
15 lease, or barter, whether the property or services are already
16 in existence or must be created, developed, demonstrated. and
17 evaluated. Acquisition includes such related functions as de-
18 terminations of the particular agency need; solicitation; selec-
19 Lion of sources; award of contracts; contract financing; con-
20 tract performance; and contract administration.
21 (b) The term "executive agency" means an executive
22 department as defined by section 101 of title 5, United States
23 Code; an independent establishment as defined by section 104
24 of title 5, United States Code (except that it shall not
25 include the General Accounting Office) ; a military depart-
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1 ment as defined by section :102 of title 5 United States Code;
2 the United States Postal Service; and a wholly owned Gov-
3 ernment Corporation as defined by section 846 of title 31,
4 United States Code (but does not include the Tennessee
5 Valley Authority or the Bonneville Power Administration).
6 (c) The term "agency head" means the head of an
7 executive agency as defined in subsection (b).
8 (d) The term "contracting officer" means any person
9 who, either by virtue of his position or by appointment in
10 accordance with applicable regulations, has the authority to
11 enter into and administer contracts and make determina-
12 tions and findings with respect thereto. The term also in-
13 eludes the authorized representative of the contracting officer,
14 acting within the limits of his authority.
15 (e) The term "property" includes personal property
16 and leaseholds and other interests therein, but excludes real
17 property in being and leaseholds and other interests therein.
18 (f) The term "total cost" means all resources con-
19 sumed or to be consumed in the acquisition and use of
20 property or services. It may include all direct, indirect,
21 recurring, nonrecurring, and other related costs incurred,
22 or estimated to be incurred in design, development, test,
23 evaluation, production, operation, maintenance, disposal,
24 training, and support of an acquisition over its useful life
25 span, wherever each factor is applicable.
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(g) The term "functional specification" means a de-
scription of the intended use of a product required by the
Government. A functional specification may include a state-
ment of the qualitative nature of the product required and,
5 when necessary, may set forth those minimum essential
6 characteristics and standards to which such product must
7 conform if it is to satisfy its intended use.
8 (h) The term "unsolicited proposal" means a written
9 offer to perform a proposed effort, submitted to an- agency
10 by an individual or organization soley on its own initiative
11 with the objective of obtaining a contract, and not in response
12 to an agency request or communication.
13 TITLE I-ACQUISITION METHODS AND
14 REGULATORY COMPLIANCE
15 ACQUISITION METHODS
16 SEC. 101. (a) Except as otherwise authorized by law,
17 an executive agency shall acquire property or services in
18 accordance with this Act by utilizing-
19 (1) the competitive sealed bids method as pro-
20 vided in title II of this Act; or
21 (2) the competitive negotiation method, as pro-
22 vided in title III of this Act; or
23 (3) the simplified small purchase method as pro-
24 vided in title IV of this Act.
25 (b) These methods of acquiring property or services
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1 are equally valid alternatives when selected on the basis
2 of the nature of the product or service being acquired, the
3 circumstances of the acquisition, and other criteria set forth
4 in this Act as implemented by the Administrator for Federal
5 Procurement Policy.
6 REGULATORY COMPLIANCE
7 SEC. 102. (a) The Administrator for Federal Pro-
8 curement Policy is authorized and directed, pursuant to the
9 authority conferred by Public Law 93-400 and subject
10 to the procedures set forth in such public law-
11 (1) to promulgate a single, simplified, uniform
12 Federal regulation implementing this Act and to estab-
13 lish procedures for insuring compliance with the Act
14 and such regulation by all executive agencies within two
15 years after the date of enactment of this Act;
16 (2) to review such regulation on a regular basis
17 and issue revisions as necessary;
18 (3) to make periodic studies in order to determine
19 whether agency compliance with this Act has been effi-
20 cient and effective; and
21 (4) to establish and oversee a program to reduce
22 agency use of detailed product specifications.
23 (b) The Administrator for Federal Procurement Policy
24 shall include in his annual report required under section 8
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1 of Public Law 93-400 a report of his activities under this
2 section, including his assessment of agency implementation
3 of and compliance with the requirements of this Act (in-
4 cluding, for example, specific reductions in the use of detailed
5 specifications pursuant to this Act), and recommendations
6 for revisions in this Act or any other provision of law.
7 TITLE II-ACQUISITION BY COMPETITIVE
8 SEALED BIDS
9 CRITERIA FOR USE
10 SEC. 201. The competitive sealed bids method shall
11 be used in the acquisition of property and services when all
12 of the following conditions are present-
13 (1) the anticipated total contract price exceeds the
14 amount specified in title IV of this Act for use of the
1.5 simplified small purchase method;
16 (2) the agency need can be practicably defined in
17 terms not restricted by security or proprietary design;
18 (3) the private sector will provide a sufficient num-
19 ber of qualified suppliers willing to compete for and
20 able to perform the contract;
21 (4) suitable products or services capable of meeting
22 the agency need are available so as to warrant the award
23 of a fixed price contract to a successful bidder selected
24 primarily on the basis of price;
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1 (5) the time available for acquisition is sufficient
2 to prepare the purchase description and to carry out the
3 requisite administrative procedures;
4 (6) the property or service is to be acquired within
5 the limits of the United States and its possessions; and
6 (7) the price for the property or service has not
7 been established by or pursuant to law or regulation.
8 INVITATION FOR SEALED BIDS
9 SEC. 202. (a) The invitation for sealed bids shall be
10 publicized in accordance with section 512 of this Act and
11 shall be issued in such a wail that-
12 (1) the time prior to opening the bids will be su fri-
13 cient to permit effective competition; and
14 (2) the invitation will be accessible to all interested
15 or potential bidders; however, eligibility to participate in
16 the bidding may be restricted to concerns eligible to par-
17 ticipate in small business set-asides or other such author-
18 ized programs.
19 (b) The invitation shall include a description of any
20 factors in addition to price that will be considered in evaluat-
21 ing bids.
22 (c) To the maximum extent practicable and consistent
23 with needs of the agency, functional specifications shall be
24 used to permit a variety of distinct products or services to
25 qualify and to encourage effective competition.
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1 (d) The preparation and use of detailed product speci-
2 fications in a purchase description shall be subject to prior
3 approval by the agency head. Such approval shall include
4 written justification, to be made a part of the official contract
5 file, delineating the circumstances which preclude the use of
6 functional specifications and which require the use of detailed
7 product specifications in the purchase descriptions.
8 (e) Where it is impracticable to plan for award primar-
9 ily on the basis of price, the contracting officer may request the
10 submission of unpriced technical proposals and subsequently
11 issue an invitation for sealed bids limited to those offerors
12 whose technical proposals meet the standards set forth in the
13 original invitation.
EVALUATION, AWARD, AND NOTIFICATIONS
15 SEC. 203. (a) All bids shall be opened publicly at the
16 time and place stated in the invitation.
17 (b) Award shall be made to the responsible bidder whose
18 bid conforms to the invitation and is most advantageous to the
19 Government, price and other factors considered: Provided,
20 That all bids may be rejected when the agency head deter-
21 mines that, for cogent and compelling reasons, it is in the
22 Government's interest to do so.
23 (c) Notice of award shall be made in writing by the
24 contracting officer with reasonable promptness and all other
25 bidders shall be appropriately notified.
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1 TITLE III-ACQUISITION BY COMPETITIVE
2 NEGOTIATION
3 CRITERIA FOR USE
4 SEC. 301. The competitive negotiation method shall be
5 used in the acquisition of property and services when-
6 (1) the anticipated total contract price exceeds the
7 amount specified in title IV of this Act for use of the
8 simplified small purchase method; and
9 (2) the acquisition does not meet the criteria estab-
10 lished pursuant to section 101 (b) or as set forth in sec-
11 tion 201 of this Act for use of competitive sealed bids.
12 SOLICITATIONS
13 SEC. 302. (a) Solicitations for offers shall be issued to a
14 su fj-icient number of qualified sources so as to obtain effective
15 competition and shall be publicized in accordance with section
16 512 of this Act, with copies of the solicitation to be provided
17 or made accessible to other interested or potential sources
18 upon request; however, eligibility to respond to the solicitation
19 may be restricted to concerns eligible to participate in small
20 business set-asides or other sttch authorized programs.
21 (b) (1) Each solicitation shall include both the evalua-
22 tion methodology and the relative importance of all significant
23 factors to be used during competitive evaluation and for final
24 selection. In any case, if price is included as a primary or
25 significant factor, the Government's evaluation shall be based
A$prWA*F(Wp"pz 0 97to 9 lAgqpo0 dea6i2e0 gen0 On 0343
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(2) Any changes in the evaluation factors or their
relative importance shall be communicated promptly in writ-
ing to all competitors.
(c) To the maximum extent practicable and consistent
with agency needs, solicitations shall encourage effective com-
petition by-
(1) setting forth the agency need in functional
terms so as to encourage the application of a variety of
technological approaches and elicit the most promising
10 competing alternatives,
11 (2) not prescribing performance characteristics
12 based on a single approach, and
13 (3) not prescribing technical approaches or in-
14 novations obtained from any potential competitor.
15 (d) If either the Government or an offeror identifies
16 inadequacies in the solicitation which cause misunderstand-
17 ings of the agency's needs or requirements, clarification of
18 intent shall be made to all offerors in a timely fashion and
19 on an equal basis.
20 (e) The preparation and use of detailed specifications
21 in a solicitation shall be subject to prior approval by the
22 agency head. Such approval shall include written justi flca-
23 Lion to be made a part of the official contract file, delineating
24 the circumstances which preclude the use of functional speci-
25 fications and which require the use of detailed product
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1 EVALUATIONS, AWARD, AND NOTIFICATIONS
2 SEC. 303. (a) Written or oral discussions shall be con-
3 ducted with all responsible offerors in -a competitive range.
4 Such discussions shall generally be limited to obtaining any
5 needed cleai fccation, substantiation, or extension of offers. An
6 initial offer may be accepted without discussion when it is
7 clear that the agency need would be satisfied on fair and
8 reasonable terms without such discussions, and the solicitation
9 has advised all offerors that award may be made without
10 discussions. If discussions are conducted with any offeror,
11 discussions shall be conducted with all offerors in a com-
12 petitive range. Discussions shall not disclose the strengths
13 or weaknesses of competing offerors, or disclose any in f orma-
14 tion from an o f f eror's proposal which would enable another
15 offeror to improve his proposal as a result thereof. Auction
16 techniques are strictly prohibited. Auction techniques include,
17 but are not limited to, indicating to an offeror a price which
18 must be met to obtain further consideration, or informing him
19 that his price is not low in relation to another offeror, or
20 making multiple requests for best and final offers. Detailed
21 negotiations of price and technical factors shall generally be
22 limited to the successful off eror (s) .
23 (b) When awards are made for alternative approaches
24 selected on the basis of the factors contained in the solicita-
25 tion, whether for design, development, demonstration, or
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1 delivery, the contractors shall be sustained in competition to
2 the maximum extent practicable until sufficient test or evalua-
3 tion information becomes available to narrow the choice to a
4 particular product or service.
5 (c) Until selection is made, information concerning the
6 award shall not be disclosed to any person not having
7 source selection responsibilities, except that offerors who are
8 eliminated from the competition may be informed prior to
9 awards.
10 '(d) Award shall be made to one or more responsible
11 offerors whose proposal(s), as evaluated in accordance with
12 the terms of the solicitation are most advantageous to the
13 Government. Notification of award to all unsuccessful
14 offerors shall be made with reasonable promptness.
15 (e) Notwithstanding any other provision of this Act, the
16 continued use of multiple award schedules is authorized.
17 NONCOMPETITIVE EXCEPTIONS
18 SEC. 304. (a) Compliance with the procedures pre-
19 scribed in sections 302 and 303 is not required if the con-
20 tract to be awarded stems from acceptance of an unsolicited
21 proposal, or if the agency head determines that it is in the
22 best interest of the Government to enter into a noncompetitive
23 contract: Provided,
24 (1) That such determination, together with the rea-
25 sons therefor, is in writing, and conform with regula-
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1 tions issued by the Administrator for Federal Procure-
2 ment Policy, pursuant to section 102 (a) (1) ; and
3 (2) (A) for all contracts except those stemming from
4 the acceptance of an unsolicited proposal, notice of intent
5 to award such a contract shall be publicized pursuant to
6 section 512 at least thirty days in advance of solicitation
7 , of a proposal from the prospective contractor; or, at least
8 thirty days in advance of the proposed award date, when
9 earlier notice is impracticable. Such notice shall include a
10 description of the property or services to be acquired, the
11 name of the prospective source, the time for accomplish-
12 ment of the work, and the reason for selection of the
13 source. If, after such notice, other sources demonstrate an
14 ability to meet the requirements for the work to be per-
15 formed, a solicitation shall be issued to all such prospec-
16 tive offerors;
17 (B) in the case of those contracts stemming from the
18 acceptance of an unsolicited proposal, notice of intent to
19 award such a contract shall be publicized prior to award,
20 pursuant to section 512 of this Act. Such notice shall
21 include a description of the property or service to be
acquired, the name of the prospective source, and the
time for accomplishment of the work.
(b) Where there is no commercial usage of the product
or service to be acquired under this section, and the agency
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head determines that substantial follow-on provision of such
product or service will be required by the Government, the
agency head shall, when he deems appropriate, take action
through contractual provision, or otherwise, to provide the
Government with a capability to establish one or more other
competitive sources.
PRICE AND COST DATA AND ANALYSIS
SEC. 305. (a) (1) The term "price data" means actual
prices previously paid, contracted, quoted, or proposed, for
materials or services identical or comparable to those being
acquired, and the related dates, quantities, and item
descriptions which prudent buyers and sellers would reason-
ably expect to have a significant effect on the negotiation of a
contract price or payment provisions.
(2) The term "cost data" means all facts which prudent
buyers and sellers would reasonably expect to have a signifi-
cant effect on .the negotiation of a contract price or payment
provisions. Such data are of a type that can be verified as
being factual, and are to be distinguished from judgmental
factors. The term does, however, include the facts upon
which a contractor's judgment is based.
(3) The term "price analysis" means the process of
examining and evaluating a price without evaluation of the
individual cost and pro fit elements of the price being
evaluated.
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1 (4) The term "cost analysis" means the element-by-
2 element examination and evaluation of the estimated or actual
3 costs of contract performance, and involves analysis of cost
4 data furnished by an offeror or contractor and the judg-
5 mental factors applied in projecting from such data to the
6 offered price.
7 (b) The contracting officer shall obtain price data and
8 shall use price analysis techniques to analyze and evaluate
9 the reasonableness of a negotiated prime contract price or of
10 a price adjustment pursuant to a modification thereto where-
.11 (1) the price is expected to be $500,000 or less;
12 (2) the price is based on an established catalog or
13 market price of a commercial item sold in substantial
14 quantities to the general public; or
15 (3) there has been a recent comparable competitive
16 acquisition.
17 (c) In the case of subcontracts, when any of the
18 conditions in subsection (b) applies, price data shall be
19 obtained and price analysis techniques shall be used to analyze
20 and evaluate the reasonableness of-
21 (1) a subcontract price-where evaluation of a
22 subcontract price is necessary to insure the reasonable-
23 ness of the prime contract price, or
24 (2) a subcontract price adjustment pursuant to a
25 prime contract modification.
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1 (d) Except as provided in subsection (b) (2) and (3),
2 cost data shall be obtained and cost analysis techniques shall
3 be used to analyze and evaluate the reasonableness of prices-
4 (1) whenever the price of a negotiated prime con-
5 tract or a price adjustment pursuant to a contract modi-
6 fication is expected to exceed $500,000; or
7 (2) for any subcontract price or price adjustment
8 pursuant to a modification thereto in excess of $500,000
9 which forms part of a negotiated prime contract price
10 or higher tier subcontract price.
11 (e) Notwithstanding subsection (b) hereof, the con-
12 tracting o ficer may obtain cost data and use cost analysis
13 techniques when authorized under circumstances set forth
14 in regulations issued by the Administrator' for Federal
15 Procurement Policy pursuant to this Act.
16 (f) Contractors and subcontractors shall submit in
writing such price data or cost data as are required to be
obtained pursuant to this section. Regulations issued by the
Administrator for Federal Procurement Policy may author-
ize identification in writing of price data and cost data, in
lieu of actual submission, under specified circumstances.
(g) Any prime contract or subcontract or modification
thereto for which price data or cost data are required shall
contain a provision that the price to the Goverhment, in-
cluding profit or fee, shall be adjusted to 'exclude any sig-
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ni ficant sums by which it may be determined by the contract-
ing officer that such price was increased because of reliance on
data which were inaccurate, incomplete, or noncurrent as
of the date of submission or other date agreed upon between
the parties (which date shall be as close to the date of agree-
6 ment on the negotiated price or payment provisions as is
7 practicable).
8 (h) The requirements of this section do not apply to
9 contracts or subcontracts where the price negotiated is based
10 on adequate price competition, prices set by law or regu-
11 lation, or, in exceptional cases, where the head of the agency
12 determines that the requirements of this section may be
13 waived and states in writing his reasons for such deter-
14 mination.
1.5 ACCESS TO RECORDS
16 SEC. 306. (a) Until expiration of three years after
17 final payment under a contract or a subcontract negotiated
18 or amended under this title, an executive agency is entitled to
19 inspect the plants and examine any books, documents, papers,
20 records, or other data of the contractor and his subcontractors
21 that involve transactions relating to the contract or subcontract
22 or to the amendment thereof, including all such books, records,
23 and other data relating to the negotiation, pricing, or perform-
24 ante of the contract or subcontract.
25 , (b) Until expiration of three years after final payment
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1 under a contract or a subcontract negotiated or amended un-
2 der this title, the Comptroller General of the United States or
3 his authorized representatives is entitled to inspect the plants
4 and examine any books, documents, papers, records, or other
5 data of the contractor and his subcontractors that directly per-
6 tain to, and involve transactions relating to the contract or sub-
7 contract or to the amendment thereof, including all such books,
8 records, and other data relating to the negotiation, pricing,
9 or performance of the contract or subcontract. This provi-
10 sion may be waived for any contract or subcontract with a
11 foreign contractor or subcontractor, if the Agency head
12 determines, with concurrence of the Comptroller General,
13 that waiver would be in the public interest. However, the
14 concurrence of the Comptroller General or his designee is
15 not required-
16 (1) where the contractor or subcontractor is a for-
17 eign government or agency thereof or is precluded by the
18 laws of the country involved from making its books,
19 documents, papers, or records available for examination;
20 and
21 (2) where the head of the agency determines, after
22 taking into account the price and availability of the prop-
23 erty or services from United States sources, that the
24 public interest would be best served by not applying sub-
25 section (b).
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1 If subsection (b) is not applied to a contract or subcontract
2 based on a determination under clause (2), a written report
3 shall be furnished to the Congress.
4 (c) Inspections and examinations by executive agencies
5 under subsection (a) shall be conducted only when necessary
6 to insure efficient and economical contract performance
7 and/or to evaluate the accuracy, completeness, and currency
8 of data submitted or identified pursuant to section 305. Mul-
9 tiple inspections and examinations of a contractor or sub-
10 contractors by more than one executive agency shall be
11 eliminated to the maximum extent practicable by coordinating
12 inspection and examination responsibilities in accordance with
13 regulations to be issued or authorized by the Administrator for
1.4 Federal Procurement Policy pursuant to this Act.
15 TITLE IV-ACQUISITION BY SIMPLIFIED
16 SMALL PURCHASE METHOD
17 CRITERION FOR USE
18 SEC. 401. The simplified small purchase method may
19 be used in the acquisition of property and services when
20 the anticipated total contract price does not exceed $10,000.
21 In lieu of this method, the contracting officer may use either
22 of the competitive methods prescribed in title II or III of
23 this Act when such use would be more advantageous to the
24 Government.
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1 SOLICITATIONS AND AWARDS
2 SEC. 402. The contracting officer shall use simplified
3 small purchase methods to obtain competition to the maxi-
4 mum extent practicable in making small purchases and there-
5 upon may make award to the source whose offer is most
6 advantageous to the Government. No provisions of this sec-
7 tion are intended to eliminate effective screening of proposed
8 acquisitions for appropriate application of small business
9 set-aside or other procedures designed to assist small busi-
10 nesses. Simplified procedures for small purchases shall be
11 issued by the Administrator for Federal Procurement Policy
12 pursuant to this Act.
13 TITLE V-GENERAL PROVISIONS
14 CONTRACT TYPES
15 SEC. 501. (a) Contracts may be of any type or combi-
16 nation of types, consistent with the degree of technical and
17 financial risk to be undertaken by the contractor, which will
18, promote the best interests of the Government except that the
19 cost-plus a percentage-of-cost system of contracting shall not
20 be used under any circumstances.
21 (b) The preferred contract type shall be fixed price con-
sistent with the nature of the work to be performed and the
risk to be shared by the Government and the contractor.
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1 WARRANTY AGAINST CONTINGENT FEES
2 SEC. 502. Each contract negotiated under title III of
3 this Act or an award to be made as a result of the submission
4 of a technical proposal under section 202(e) of this Act shall
5 contain a warranty by the contractor that no person or sell-
6 ing agency has been employed or retained to solicit or secure
7 the contract upon an agreement or understanding of a com-
8 mission, percentage, brokerage, or contingent fee, excepting
9 bona fide employees or bona fide established commercial or
10 selling agencies. maintained by the contractor for the pur-
11 pose of securing business; and that for any breach or viola-
12 tion of the warranty, the. Government may annul the con-
13 tract without liability or deduct from the contract price or
14 consideration the full amount of the commission, percentage,
15 brokerage, or contingent fee.
16 CANCELLATIONS AND REJECTIONS
17 SEC. 503. (a) Where the contracting officer determines
18 for cogent and compelling reasons, that it is in the best interest
19 of the Government, he may--
20 (1) withdraw or cancel a small purchase order which
21 has not been accepted in writing by the contractor, prior
22 to the contractor's initiation of performance;
23 (2) cancel an invitation for sealed bids before bid
24 opening or after bid opening but before award; or
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1 (3) cancel a request for proposal and reject all
2 offers.
3 (b) When requested, the contracting officer shall fully
4 inform any unsuccessful offeror or bidder of the reasons
5 for the rejection of his offer or bid.
G MULTIYEAR CONTRACTS
7 SEC. 504. (a) Except as otherwise provided by law, an
8 agency may make contracts for acquisition of property or
9 services for periods not in excess of five years, when-
10 (1) appropriations are available and adequate for
11 payment for the first fiscal year; and
12 (2) the Agency head determines that-
13 (A) the Government need for the property. or
14 services being acquired over the period of the contract
35 is reasonably firm and continuing; and
16 (B) such a contract will serve the best interests
17 of the United States by encouraging effective com-
18 petition or promoting economics in performance and
19 operation; and
20 (C) such a method of contracting will not in-
21 hibit small business participation.
22 (b) The Administrator for Federal Procurement
23 Policy may grant exceptions to the five-year limita-
24 Lion imposed by subsection (a) upon the certification, in
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1 such form and of such content as the Administrator may
2 require, by the Agency head that such exception is in the
3 best interests of the Government. A copy of each such
4 certification and each exception granted shall be delivered
5 to the chairman of the House Committee on Government
6 Operations, the Senate Committee on Governmental Affairs,
7 and the Committees on Appropriations of the House of Repre-
S sentatives and the Senate, respectively.
9 (c) Any cancellation costs incurred must be paid from
10 appropriated funds originally available for performance of
11 the contract, or currently available for acquisition of similar
12 property or services, and not otherwise obligated, or appro-
13 priations made available for such payments.
14 ADVANCE, PARTIAL, AND PROGRESS PAYMENTS
15 SEC. 505. (a) Any executive agency may make advance,
16 progress, partial, or other payments under contracts.
17 (b) Advance and progress payments under contracts
18 with small business concerns shall be granted where possible
19 and to the extent practicable under the circumstances existing
20 for each acquisition; and provisions limiting advance and
21 progress payments to small business concerns may be inserted
22 into solicitations.
23 (c) Payments under subsections (a) and (b) shall not
24 exceed the unpaid contract price.
25 '(d) When progress payments are made, the Government
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1 shall have title to the property acquired or produced by the
2 contractor and allocable or properly chargeable to the con-
3 tract. Notwithstanding any other provisions of law, that title
4 may not be divested by any action of the contractor, or pro-
5 ceeding in bankruptcy, or encumbered by any lien or security
6 interest.
7 (e) Advance payments under subsection (a) or (b) shall
8 not be made in excess of the amount required for contract
9 performance, and may be made only upon adequate security
10 and a determination by the Agency head that to do so would
11 be in the public interest. Such security may be in the form of
12 a lien in favor of the Government on the property contracted
13 for, on the balance in an account in which such payments
14 are deposited, and on such property acquired for perform-
1,15 ante of the contract as the parties may agree. This lien
16 is paramount to any other liens.
17 REMISSION OF LIQUIDATED DAMAGES
18 SEC. 506. Upon the recommendation of the Agency
19 head the Comptroller General of the United States may
20 remit all or part, as he considers just and equitable, of any
21 liquidated damages provided by the contract for delay in
22 performing the contract.
23 DETERMINATIONS AND FINDINGS
24 SEC. 507. (a) Determinations, findings, approvals, and
25 decisions provided for by this Act may be made with respect
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1 to contracts individually or with respect to classes of con-
2 tracts and shall be final.
3 (b) Each determination, -approval, or decision shall be
4 based upon written findings of the officer making the deter-
5 mination, approval, or decision, and shall be retained in the
6 official contract file.
7 COLLUSIVE BIDDING INFORMATION
8 SEC. 508. (a) If the contracting officer or any other
9 agency employee has reason to believe that any bid, pro-
10 posal or offer evidences a violation of the antitrust laws or
11 provisions of this Act, the matter shall be referred, in ac-
12 cordance with agency procedures, to the Attorney General
13 of the United States for appropriate action.
14 (b) Upon the request of the Attorney General of the
15 United States, the Agency head shall make available to the
16 Attorney General information which the Attorney General
considers necessary and relevant to any investigation, prose-
cution or other action by the United States under the anti-
trust laws or other statute enforced by the Attorney General.
(c) The Agency head shall render needed assistance to
the Attorney General in any investigation and prosecution
flowing from the information provided in subsection (a)
or (b) or from other investigation and prosecution in other
antitrust matters.
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1 GOVERNMENT SURVEILLANCE REQUIREMENTS
2 SEC. 509. (a) Notwithstanding any other provisions
3 of law, an agency shall, upon application by a contractor,
4 waive the requirements listed in 509 (c) for that part
5 of a contractor's operation which is separately managed and
6 accounted for if, for the contractor's most recent fiscal year,
7 more than 75 per centum of the business of the activity, as
8 measured by total revenues is conducted under commercial
9 and/or competitive Government contracts. To be competitive
10 for purposes of this section, the Government contracts must
11 be firm fixed-price or fixed-price with escalation with price
12 the deciding factor in the award.
13 (b) The waiver provided in 509 (a) shall not be granted
14 if the contractor's activity for the most recent fiscal year, had
15 costs incurred of over $10,000,000, under Government con-
16 tracts where the contract / prices were based on estimated
17 or actual costs. This category would include such contracts
18 as cost reimbursement type contracts, firm fixed-price con-
19 tracts negotiated without price competition, fixed-price incen-
20 tive contracts, and time and material contracts.
21 (c) The waiver provided for in 509(a) shall apply to
22 any or all of the following :
23 (1) reviews of contractor management and pro-
24 curement systems;
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1 (2) determinations of reasonableness of indirect
2 overhead costs;
3 (3) provisions of the Cost Accounting Standards
4 Act (Public Law 91-379);
5 (4) advance agreements for independent research
6 and development and bid and proposal activities; and
7 (5) provisions of the Renegotiation Act.
8 (d) The waiver period shall not exceed two years with-
9 out reconsideration by the Agency. The waiver may be can-
10 celed at any time or may be withheld altogether if the Agency
11 head makes a written determination that the waiver should
12 not apply.
13 (e) The waiver provided for in 509 (a) shall not affect
14 the General Accounting Office access-to-records authority as
15 set forth in section 306 of this Act.
16 MAINTENANCE OF REGULATIONS
17 SEC. 510. Notwithstanding the provisions of title IX
18 o f this Act or any other provisions of law, regulations
19 relating to Federal procurement promulgated or in effect
20 before the date of enactment of this Act shall remain in e f -
21 fect until repealed by order of the Administrator for Fed-
22 eral Procurement Policy or until the lapse of two years
23 after the date of enactment of this Act, whichever is earlier.
24 No regulation preserved by operation of this section may be
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1 amended without the prior approval of the Administrator
2 for Federal Procurement Policy.
3 PAYMENTS OF FUNDS DUE
4 SEC. 511. A clause shall be included in every contract
5 awarded by the United States pursuant to this Act which
6 shall provide for interest to be paid by the Federal Govern-
7 ment to the contractor on any amount due to the contractor
8 for more than thirty days. No amount shall be considered due
9 until receipt by the Government of a proper invoice and any
10 substantiating documentation required. Interest payable by
11 the Government shall be the interest in effect which has been
12 established by the Secretary of the Treasury pursuant to
13 Public Law 92-41 (85 Stat. 97) for the Renegotiation
14 Board, as of a date- thirty days after the date the amount
becomes due.
16 PUBLICATION OF INTENT
17 SEC. 512. It shall be the duty of the Secretary of
18 'Commerce, and he is empowered, to obtain notice of all
proposed acquisitions of above $10,000, from any execu-
tive agency engaged in acquisitions in the United States;
and to publicize such notices in the daily publication "United
22 States Department of Commerce Synopsis of the United
23 States Government Proposed Procurement, Sales, and Con-
24 tract Awards", immediately after the necessity for the ac-
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1 quisition is established; except that nothing herein shall
2 require publication of such notices with respect to those
3 acquisitions-
4 (1) which for security reasons are of a classified
5 nature; or
6 (2) which involve perishable subsistence supplies; or
7 (3) which are of such unusual and compelling
8 emergency that the Government would be seriously
9 injured if notice were required to be publicized thirty
10 days in advance of the proposed contract award date.
11 In all such cases, notice shall be published at the earliest
12 practicable opportunity; or
13 (4) which are made by an order placed under an
14 existing contract; or
15 (5) which are made from another Government
16 department or agency, or a mandatory source of supply;
17 or
18 (6) for which it is determined in writing by the
19 procuring agency, with the concurrence of the Adminis-
20 trator, Small Business Administration, that advance
21. publicity is not appropriate or reasonable.
22 REVISIONS OF THRESHOLDS
23 SEC. 513. At least every three years, beginning with the
24 third year after enactment of this Act, the Administrator for
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1 Federal Piocurernerit Policy shall rcciew the hrevaili)I y co,t.';
2 of labor and materials and may revise the amounts stated
3 in sections 305, 401, 509, and 512 or any prior revisions
4 thereof, notwithstanding any other provision of law, to reflect
5 an increase or decrease by at least 10 per cenlum in the costs
6 of labor and materials. At least sixty. days in advance of it~5
7 effective elate, the Administrator shall report to Congress
8 any such revision which by itself, or cumulatively with earlier
9 increases, represents 50 per centunt or more increase.
10 SUNSET FOR SPECIFICA TIONS
1.1 SEC. 514. All specifications shall be reviewed at least
12 every five years, and shall be canceled, modified, ret?i.sed, or
13 reissued as determined by such, review.
14 MINORITY BUSINESS PARTICIPATION
15 SEc. 515. The Administrator for Federal Procurement
16 Policy is authorized and directed to initiate, in con.~ultation
17 with the Small Business Administration, periodic ,,(',views of
18 acquisition programs within the executive branch with the
19 objective of making minority business participation in govern-
29 rnent contracting more effective and assuring that minority
621 u(!;siaesses have full opportunity to compete for Government
222 contracts. Targets should be set which reflect the Govern-
23 rncnt's commitment to increasing minority business partiei--
24 pation in federal contracting.
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1 LIMITATION ON CONTRACT CLAIMS
2 SEC. 516. Any claim by an ea. scutive agency against a
3 contractor under a provision of a contract awarded by the
4 agency pursuant to this Act shall be made within six years
5 from the date of final payment under the contract.
6 TITLE VI-DELEGATION OF AUTHORITY
7 DELEGATION WITHIN AN EXECUTIVE AGENCY
8 SEC. 601. Each agency head may delegate any authority
9 under this Act, provided that such delegation is made in
10 accordance with regulations established by the Administra-
11 tor for Federal Procurement Policy. Delegation of authority
12 to make determinations under sections 202, 302(e), 304,
13 305, 306, and 509 shall be maintained at the highest organi-
14 zational level practicable in order to protect the integrity
15 of the acquisition process consistent with the nature and the
16 size of the acquisition decision. The authority in section
17 702(b) to authorize the award of a contract notwithstanding
18 a protest pending before the Comptroller General may not
19 be delegated below the level of Assistant Secretary or com-
20 parable level.
21 JOINT ACQUISITIONS
22 SEC. 602. (a) To facilitate acquisition of property or
23 services by one executive agency for another executive agency,
24 and to facilitate joint acquisition by those agencies-
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1 (1) the Agency head may, within his agency, dele-
2 gate functions and assign responsibilities relating to the
3 acquisition;
4 (2) the heads of two or more executive agencies may
5 by agreement delegate acquisition functions and assign
6 acquisition responsibilities from one agency to another
7 of those agencies or to an officer or employee of another
8 of those agencies; and
9 (3) the heads of two or more executive agencies
10 may create joint or combined offices to exercise zcquisi-
11 tion functions and responsibilities.
12 (b) Subject to the provisions of section 686 of title 31,
13 United States Code-
14 (1) appropriations available for acquisition of
15 property and services by an executive agency may be
16 made available for obligation for acquisition of .property
17 and services for its use by any other agency in amounts
18 authorized by the head of the ordering agency and with-
19 out transfer of funds on the books of the Department of
20 the Treasury;
21 (2) a disbursing officer of the ordering agency may
22 make disbursement for any obligation chargeable under
23 subsection (a) of this section, upon a voucher certified
24 by an officer or employee of the acquisition agency.
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1 TITLE VII PROTESTS
2 PURPOSE
3 SEC. 701. Under the authority contained in the Budget
4 and Accounting Act, 1921, as amended, protests shall be
5 decided in the General Accounting Office if filed with that
6 Office in accordance with this title. For purposes of this title,
7 the term "protest" means a challenge to a solicitation, or to
8 the award or proposed award of any contract to be financed
9 by appropriated funds for the acquisition of property or
10 services or for any sale or lease by the Government and the
11 term "agency" means an executive department as defined by
12 section 101 of title 5, United States Code; an independent
13 establishment as defined by section 104 of title 5, United
14 States Code (except that it shall not include the General
15 Accounting Off ee); a military department as defined by
16 section 102 of title 5, United States Code; the United States
17 Postal Service; a wholly owned Government corporation as
18 defined by section 846 of title 31, United States Code (but
19 does not include the Tennessee Valley Authority or the
20 Bonneville Power Administration); and any department or
21 agency or other activity of the Federal Government whose
22 accounts are subject to settlement by the Comptroller Gen-
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1 eral of the United States pursuant to the Budget and Ac-
2 counting Act, 1921, as amended.
3 JURISDICTION
4 SEC. 702. (a) In accordance with,the procedures issued
5 pursuant to section 704, the Comptroller General shall have
6 authority to decide any protest submitted by an interested
7 party or referred by any agency or Federal instrumentality.
8 An interested party is a firm or an individual whose direct
9 economic interest would be affected as contractor or subcon-
10 tractor by the award or nonaward of the contract.
11 (b) No contract shall be awarded after the contracting
12 activity has received notice of a protest to the Comptroller
13 General while the matter is pending before him: Provided,
14 however, That the head of an executive agency may authorize
15 the award of a contract notwithstanding such protest, upon a
16 written finding that the interest of the United States will not
17, permit awaiting the decision of the Comptroller General:
18 And provided further, That the Comptroller is advised of
19 such finding prior to the award of the contract.
20 (c) With respect to any solicitation, proposed award,
21 or award of contract protested to him in accordance with
22 this title, the Comptroller General is authorized to declare
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1 whether such solicitation, proposed award, or award com-
2 ports with law and regulation.
3 PROCEEDINGS
4 SEC. 703. "(a) To the maximum extent practicable, the
5 Comptroller General shall provide for the inexpensive, in-
6 formal, and expeditious resolution of protests.
7 (b) Each decision of the Comptroller General shall be
8 signed by him or his delegee and shall be issued under the
9 authority of the Comptroller General to settle the accounts of
10 the Government under the Budget and Accounting Act,
11 1921, as amended. A copy of the decision shall be furnished
12 to the interested parties and the executive agency or agencies
13 involved.
(c) There shall be no ex parte proceeding in protests
before the Comptroller General or his representative, except
that this subsection shall not be deemed to preclude informal
17 contacts with the parties for procedural purposes.
(d) The Comptroller General is authorized to dismiss
any protest he determines to be frivolous or which, on its
f ace, does not state a valid basis for protest.
21 (e) Where the Comptroller General has declared that
22 a solicitation, proposed award, or award of a contract does
23 not comport with law or regulation, he may further declare
24 the entitlement of an appropriate party to bid and proposal
25 preparation costs. In such cases the Comptroller General
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1 may remand the matter to the executive agency involved for
2 an initial determination as to the amount of such costs. Dec-
3 larations of entitlement to monetary awards shall be paid
4 promptly by the executive agency concerned out of funds
5 available for the purpose.
6 GENERAL PROVISIONS
7 SEC. 704. The Comptroller General shall issue such pro-
8 cedures, not inconsistent with this title, as may be necessary
9 in the execution of the protest decision function. He may
10 delegate his authority to other officers or employees of the
11 General Accounting Office.
12 JUDICIAL REVIEW
13 SEC. 705. Any person adversely affected or aggrieved
14 by the action, or the failure to act, of an executive agency,
15 or of the Comptroller General, in respect of a solicitation or
16 award hereunder may obtain judicial review thereof to the
17 extent provided by sections 702 through 706 of title 5, United
18 States Code, including determinations necessary to resolve
19 disputed material facts or when otherwise appropriate.
20 TITLE VIII-APPLICABILITY OF
21 SUBSEQUENT LAWS
22 SEC. 801. No law enacted after the date of enactment
23 of this Act, including any limitation in any appropriation
24 bill or any limitation of any provision authorizing the appro-
25 priation of funds, may be held, considered, or construed as
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1 amending any provision of this Act, unless such law does so
2 by specifically and explicitly amending or superseding a
3 specific and separately referenced provision of this Act.
4 SEPARABILITY
5 SEC. 802. If any provision of this Act or the application
6 thereof to any person or circumstance is held invalid, neither
7 the remainder of this Act nor the application of such provision
8 to other persons or circumstances shall be affected thereby.
9 TITLE IX-AMENDMENTS AND REPEALS
10 AMENDMENTS
11 SEC. 901. (a) The Agriculture Department Appropria-
12 tion Act, 1923, is amended by striking out ", after due ad-
13 vertisement and on competitive bids," in the first proviso
14 on the page at forty-second Statutes at Large, page 517
15 (7 U.S.C. 416).
16 (b) Section 101 (d) and 104 of the Department of
17 Agriculture Organic Act of 1944 (58 Stat. 734, 736; 7
18 U.S.C. 430, 432) are amended by striking out "in the open
19 market".
20 (c) Section 2356(b) of title 10, United States Code,
21 is amended by striking out the last sentence.
22 (d) Sections 4504 and 9504 of title 10, United States
23 Code, are each amended by striking out everything after
24 "United States" and inserting in lieu thereof a period.
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1 (e) Sections 4505 and 9505 of title 10, United States
2 Code, are each amended by striking out the second sentence.
3 (f) Clause (2) of section 502(c) of the Act of August
4 10, 1948 (62 Stat. 1283; 12 U.S.C. 1701c(b) (2)), is
5 amended by striking out ", without regard to section 3709
6 of the Revised Statutes".
7 (g) Section 502(e) of the Act of December 31, 1970
8 (84 Stat. 1784; 12 U.S.C. 1701z-2(e)), is amended by
9 striking out ", without regard to section 3709 of the Revised
10 Statutes,".
(h) Section 708(h) of the Act of June 27, 1934, as
amended August 10, 1948 (62 Stat. 1279; 12 U.S.C. 1747
g (h)) , is amended by striking out the proviso at the end.
(i) Section 712 of the Act of June 27, 1934, as amended
August 10, 1948 (62 Stat. 1281; .12 U.S.C. 1747k) is
16 amended by striking out "and without regard to section 3709
1.7 of the Revised Statutes".
18 (j) Section 2,08(b) of the Act of June 26, 1934, as
19 amended October 19, 1970 (84 Stat. 1014; 12 U.S.C.
20 1788(b)), is amended by striking out the last sentence.
21 (k) Clause (4) of section 2(b) of the Act of July 18,
22 1958 (72 Stat. 386; 15 U.S.C. 634(b) (4) ), is amended
23 by striking out: "Section 3709 of the Revised Statutes, as
24 amended '(41 U.S.C., section 5), shall not be construed
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1 to apply to any contract of hazard insurance or to any
2 purchase or contract for services or supplies on account
3 of property obtained by the Administrator or as a result
4 of loans made under this Act if the premium therefor or
5 the amount thereof does not exceed $1,000.".
6 (1) Section 3 of the Act of April 24, 1950 (64 Stat.
7 83; 16 U.S.C. 580c, is amended to read as follows:
8 "SEC. 3. The Forest Service is authorized to make
9 purchases of (1) materials to be tested or upon which
10 experiments are to be made or (2) special devices, test
11 models, or parts thereof, to be used (a) for experimenta-
12 tion to determine their suitability for or adaptability to
13 accomplishment of the work for which designed or (b) in
14 the designing or developing of new equipment: Provided,
15 That not to exceed $50,000 may be expended in any one
16 fiscal year pursuant to this authority and not to exceed
17' $10,000 on any one item or purchase.".
18 (m) Section 2(b)'(1) of the Act entitled "An Act to
19 authorize the construction of a National Fisheries Center
20 and Aquarium in the District of Columbia and to provide
21 for its operation", approved October 9, 1962 (76 Stat.
22 753; 16 U.S.C. 1052), is amended by striking out ",
23 without regard to the provisions of section 3709 of the
24 Revised Statutes of the United States (41 U.S.C. 5,".
25 (n) Section 224(a) of the Act of November 8, 1965
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1 (79 Stat. 1228; 20 U.S.C. 1034(a)), is amended by strik-
2 ing out ", and, without regard o section 3709 of the Revised
3 Statutes (41 U.S.C. 5),".
4 "(o) Section 7 of the Act of December 20, 1945, as
5 amended October 10, 1949 (59 Stat. 621; 22 U.S.C. 287e),
6 is amended by striking out ", all without regard to section
7 3709 of the Revised Statutes, as amended (41 U.S.C. 5)".
8 (p) Section 707 of the Act of August 13, 1946 (60
9 Stat. 1019; 22 U.S.C. 1047), is amended by striking out
10 ", without regard to section 3709 of the Revised Statutes".
11 (q) Section 22(e) (7) of the Act of December 29,
12 1970 (84 Stat. 1613, 29 U.S.C. 671 (e) (7) ), is amended
13 by striking out ", and without regard to section 3709 of the
14 Revised Statutes, as amended (41 U.S.C. 5), or any other
15 provision of law relating to competitive bidding."
16 (r) Section 6(b) of the Act of August 31, 1954 (68
17 Stat. 1010; 30 U.S.C. 556(b)), is amended by striking out
18 "and without regard to the provisions of section 3709, Re-
vised Statutes (41 U.S.C. 5)".
(s) Section 1820(b) of title 38, United States Code,
is amended by striking out "section 5 of title 41" and in-
serting in lieu thereof the "Federal Acquisition Act of 1977"
and by deleting "if the amount of such contract exceeds
$1,000.".
(t) Section 5002 of title 38, United States Code, is
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1 amended by substituting a period for the comma after "work"
2 and striking out the remainder of the section.
3 (u) The Act of October 10, 1940, as amended (54
4 Stat. 1109; 41 U.S.C. 6a, b(a), is amended by striking
5 out section 2, and by striking out "without regard to the
6 provisions of section 3709 of the Revised Statutes, as
7 amended," in subsection (a). The Act of July 27, 1965
8 (79 Stat. 276; 41 U.S.C. 6a-1) is amended by striking
9 out any and all references to section 3709 of the Revised
10 Statutes in the sections relating to Architect of the Capitol.
11 (v) Section 11 of the Act of June 30, 1936 (49
12 Stat. 2039, renumbered section 12 in 66 Stat. 308; 41
13 U.S.C. 45), is amended to read as follows:
14 "SEC. 12. The provisions of this Act requiring the
15 inclusion of representations with respect to minimum wages
16 shall apply only to purchases or contracts relating to such
17 industries as have been the subject matter of a determina-
18 tion by the Secretary of Labor.".
19 (w) Section 356(b) of the Act of July 1, 1944, as
20 added October 18, 1968 (82 Stat. 1175; 42 U.S.C. 263d
21 (b) ), is amended by striking out the references to section
22 3709 of the Revised Statutes and 41 U.S.C. 5 in clause (3),
23 and by striking out the parenthetical phrase "(by negotiation
24 or otherwise)" in clause (4).
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1 (x) Section 1(b) of the Act of October 14, 1940 (54
2 Stat. 1126; 42 U.S.C. 1521 (b) ), is amended by striking
3 out the reference to section 3709 of the Revised Statutes in
4 the first parenthetical phrase, and by striking out the first
5 proviso and inserting in lieu thereof : "Provided, That the
6 cost plus a percentage of cost system shall not be used.".'
7 (y) Section 202(b) of the Act of October 14, 1940 (55
8 Stat. 362; 42 U.S.C. 1532(b)), is amended by striking out
9 the reference to section 3709 of the Revised Statutes, and by
10 adding the following proviso at the end of paragraph 1532
3.1 (b) : "Provided, That the cost plus a percentage of cost system
12 shall not be used.".
13 (z) Section 309 of the Act of September 1, 1951 (65
14 Stat. 307; 42 U.S.C. 1592h), is amended by striking out
15 clause (a), and amending clause (b) to read as follows:
16 "(b) the fixed-fee under a contract on a cost-plus-a-
17 axed-fee basis shall not exceed 6 per centum of the es-ti-
18 mated cost;".
19 (aa) Section 103(,b)(4) and 104(a)(2) of the Act
20 of July 14, 1955, as amended November 21, 1967 (81
21 Stat. 486, 487; 42 U.S.C. 1857b (b) (4), b-1(a) (2) ), is
22 amended by striking out the references to section 3709 of
23 the Revised Statutes and to section 5 of title 41, United
24 States Code.
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1 (bb) Section 31 (b) of the Atomic Energy Act of 1954
2 (68 Stat. 927; 42 U.S.C. 2051 (c) is amended to read as
3 follows:
4 "(c) The Commission may make available for use in con-
5 nection with arrangements made under this section such of its
6 equipment and facilities as it may deem desirable.".
7 (cc) Section 41(b) of the Atomic Energy Act of 1954
8 (68 Stmt. 928; 42 U.S.C. 2061(b)) is amended by striking
9 out the last three sentences in this section.
10 (dd) Section 43 of the Atomic Energy Act of 1954
11 (68 Stat. 929; 42 U.S.C. 2063) is amended by striking
12 out the f ollowi
? "with t d t a.
ou
regar o e provjszons 0/ sec-
,IV
tion 3709 of the Revised Statutes, as amended, upon certifi-
cation by the Commission that such action is necessary in
the interest of the common defense and security, or upon a
showing by the Commission that advertising is not reason-
17 ably practicable. Partial and advance payments may be
18 made under contracts for such purposes.".
19 (ee) Section 55 of the Atomic Energy Act of 1954
20 (68 Stat. 931; 42 U.S.C. 2075) is amended by striking
21 out the second and third sentences in this section.
22 (f) Section 66 of the Atomic Energy Act of 1954 (68
23 Stat. 933; 42 U.S.C. 2096) is amended by striking out
24 the following: "Any purchase made under this section may
25 be made without regard to the provisions of section 3709
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of the Revised Statutes, as amended, upon certification by
the Commission that such action is necessary in the interest
of the common defense and security, or upon a showing by
the Commission that advertising is not reasonably prac-
ticable. Partial and advance payments may be made under
6 contracts for such purposes.".
7 (gg) Section 203(e) of the Act of April 3, 1970 (84
8 Stat. 115; 42 U.S.C. 4372(e)), is amended by strik-
9 ing out the references to section 3709 of the Revised
10 Statutes and to section 5 of title 41, United States Code.
11 (hh) Section 703 of the Act of June 29, 1936 (49
12 Stat. 2008; 46 U.S.C. 1193), is amended by striking out
13 subsection (a), by striking out "For the construction, re-
14 construction, or reconditioning of vessels, and" in subsec-
15 tion (c), and by renumbering subsections (b) and (c) as
16 (a) and (b), respectively.
17 (ii) Section 8(a) of the Act of September 30, 1965
is (79 Stat. 894; 49 U.S.C. 1638(a)), is amended by
19 striking out the references to section 3709 of the Revised
20 Statutes and to section 5 of title 41, United States Code,
21 in paragraph (1), and by striking out paragraphs (3)
22 and (4).
23 (jj) Section 5012 of title 38, United States Code, is
24 amended by striking out the second sentence in subsection
25 (a) and all of subsection (c) .
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1 (kk) Section 832(g) of title 16, United States Code,
2 is amended by striking out "$500" and inserting in lieu
3 thereof "$10,000
4 (ii) Section 2075 of title 42, United States Code, is
5 amended by striking out the second sentence and the third
6 sentence in this section.
7 (mm) Section 6009'(d) of title 42, United States Code,
8 is amended by striking out the last sentence.
9 (nn) Section 286d (a) (7) of title 42, United States
10 Code, is amended by striking out "without regard to section
11 529 of title 31 and section 5 of title 41".
12 (oo) Section 287b (c) (3) of title 42, United States
13 Code, is amended by striking out "without regard to section
14 529 of title 31 and section 5 of title 41".
15 REPEALS
16 SEC. 902. The following statutes or provisions of
17 statutes are repealed.
18 Chapters 135 and 137 and sections 4535, 7522,
19 and 9535 of title 10, United States Code; section 637(e)
20 of title 15, United States Code; section 7 of the Act of
21 May 18, 1938 (52 Stat. 406; 16 U.S.C. 833f); section 7 of
22 the Act of March 3, 1875, as amended (18 Stat. 450; 25
23 U.S.C. 96); section 3 of the Act of August 15, 1876, as
24 amended (19 Stat. 199; 25 U.S.C. 97) ; sections 602(d) (3)
25 and 602(d) (10) of the Federal Property and Administra-
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1 Live Services Act as amended (40 U.S.C. 474 (3), (8),
2 (10), and (19) ; sections 10(a) and 10(b) of the Act of
3 September 9, 1959 (73 Stat. 481; 40 U.S.C. 609 (a), (b) ) ;
4 section 3735 of the Revised Statutes (41 U.S.C. 13) ; section
5 3653 of the Revised Statutes, as amended by the Act of
6 July 7, 1884 (23 Stat. 204; 41 U.S.C. 24); title III of the
7 Federal Property and Administrative Services Act of 1949
8 as amended (41 U.S.C. 251 et seq.) ; 41 U.S.C. 254(b);
9 section 10(a) of the Act of September 5, 1950 (64 Stat.
10 591; 41 U.S.C. 256a); section 242m(f) of title 42, United
11 States Code; section 292f of title 42, United States Code;
12 section 300c-11 (b) (4) of title 42, United States Code;
13 section 300e-22(d) of title 42, United States Code; section
14 300d-5(d) of title 42, United States Code; section 3OOe-
15 2(g) of title 42, United States Code; section 300e-3(h)
16 of title 42, United States Code; section 510 (a) of the
17 Act of July 15, 1949 (63 Stat. 437; 42 U.S.C. 1480
18 (a)); section 6(e) of the EURATOM Cooperation Act
19 of 1958 (72 Stat. 1005; 42 U.S.C. 2295(e)) ; section
20 1345(b) of the Act of August 1, 1968 (82 Stat. 585;
21 42 U.S.C. 4081 (b)); section 404 of the Act entitled "An Act
22 to authorize appropriations during the fiscal year 1969 for
23 procurement of aircraft, missiles, naval vessels, and tracked
24 combat vehicles, research, development, test, and evaluation
25 for the Armed Forces, and to prescribe the authorized person-
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1 nel strength of the Selected Reserve of each Reserve component
2 of the Armed Forces, and for other purposes, approved Sep-
3 tember 20, 1968 (82 Stat. 849) ; section 4403c of title 50,
4 United States Code.
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95TH CONGRESS
1ST SESSION
S. 1264
IN THE SENATE OF THE UNITED STATES
APRIL 6 (legislative day, FEBRUARY 21), 1977
Mr. CHILES (for himself and Mr. ROTH) introduced the following bill; which
was read twice and referred to the Committee on Governmental Affairs
A BILL
To provide policies, methods, and criteria for the acquisition of
property and services by executive agencies.
1 Be it enacted by the Senate and House of Representa-
2 Lives of the United States of America in Congress assembled,
3 SHORT TITLE; TABLE OF CONTENTS
4 SECTION 1. (a) SHORT TITLE.-This Act may be cited
5 as the "Federal Acquisition Act of 1977".
6 (b) TABLE OF CONTENTS.-
Sec. 1. Short title ; table of contents.
Sec. 2. Declaration of policy.
Sec. 3. Definitions.
TITLE I-ACQUISITION METHODS AND REGULATORY
GUIDANCE
Sec. 101. Acquisition methods.
Sec. 102. Regulatory compliance.
II
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TABLE OF CONTENTS-Continued
TITLE II-ACQUISITION BY COMPETITIVE SEALED BIDS
Sec. 201. Criteria for use.
Sec. 202. Invitation for sealed bids.
Sec. 203. Evaluation, award, and notifications.
TITLE 111--ACQUISITION BY COMPETITIVE
NEGOTIATION
Sec. 301. Criteria for use.
Sec. 302. Solicitations.
See. 303. Evaluation, award, and notifications.
Sec. 304. Single-source exceptions.
Sec. 305. Price analysis and cost data.
Sec. 306. Access to records.
TITLE TV-ACQUISITION I3Y COMPETITIVE SMALL
PURCHASE PROCEDURES
Sec. 401. Criteria for use.
Sec. 402. Solicitations and awards.
TITLE V-G ENERAL PROVISIONS
Sec. 501. Contract types.
Sec. 502. Warranty against contingent fees.
Sec. 503. Cancellations and rejections.
Sec. 504. Multiyear contracts..
Sec. 505. Advance, partial, and progress payments.
Sec. 506. Remission of liquidated damages.
Sec. 507. Determinations and findings.
Sec. 508. Competitive bidding; information.
Sec. 509. Government surveillance requirements.
Sec. 510. Maintenance of reguilations.
TITLE VI-DELEGATION OF AUTHORITY
Sec. 601. Delegation within an executive agency.
Sec. 602. Joint acquisitions.
TITLE VII-PROTESTS
Sec. 701. Purpose.
Sec. 702. Jurisdiction.
Sec. 703. Proceedings.
Sec. 704. General provisions.
TITLE VIII-AMENDMENTS AND REPEALS
Sec. 801. Amendments.
Sec. 802. Repeals.
1 DECLARATION OF POLICY
2 SEC. 2. (a) FINDINGS.-The Congress hereby finds
3 that-
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1 (1) the laws controlling Federal purchasing have
2 become outdated, fragmented, and needlessly incon-
sistent;
(2) these deficiencies have contributed to signifi-
cant inefficiency, ineffectiveness, and waste in Federal
6 spending
7 (3) the Commission, on Government Procurement
has found and recommended that a. new consolidated.
statutory base is needed;
(4) further, existing statutes need to be modernized
11 to focus on effective competition and new technology
12 in that-
(A) national productivity rests on a base of
competitive industry applying new technology in its
goods and services; and
(B) Federal spending practices can encourage
stimulating
the Nation's business community by,
effective competition and the application of new
technology.
(b) POLICY.-It is hereby declared to be the policy of
the United States that the acquisition of property and serv-
ices by the Federal Government shall be performed so as
23 t
24
25
(1) best meet public needs at the lowest total cost;
(2) maintain the independent character of private
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1 enterprise by substituting for regulatory controls the in-
2 centives and constraints of effective competition;
3 (3) encourage innovation and the application of
4 new technology as a first consideration by stating public
5 needs so that prospective suppliers will have maximum
6 latitude to exercise independent business and technical
7 judgments in offering a wide range of competing
8 alternatives;
9 (4) promote both new and small business by per-
10 mitting all qualified and interested sources to compete
11 for and grow through Government contracts ;
12 (5) provide priivate contractors with the opportu-
1.3 nity to earn a profit on Government contracts common.-
14 surate with the contribution made to meeting public
15 needs and with comparable profit opportunities available
16 in other markets requiring investments, risks, and skills
17 similar to the technical and financial risks undertaken;
18 (6) safeguard the public interest through individ-
19 ual accountability of public officials and maximum use
20 of effectvie competition; and
21 (7) further, to ,achieve these goals, it is the policy
22 of the United States to rely on and promote effective
23 competition, the efforts of several sellers acting inde-
24 pendently of each other, to respond to a public need by
25 creating, developing, demonstrating or offering products
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1 or services which best meet that need, whether that need
2 is expressed as an agency mission need, a desired func-
3 tion to be performed, performance or physical require-
4 ments to be met, or some combination of these. Effective
5 competition is present when there is-
6 (A.) timely availability to prospective sellers
7 of information required to respond to the public
8 needs;
9 (B) independence of action by buyer and
10 seller;
11 (C) availability to the Government of alterna-
12 tive offers that provide a range of concept, design,
13 performance, price, lifetime ownership costs, service
14 and/or delivery ;
15 (D) absence of bias or favoritism in the solici-
1.6 tation, evaluation, and award of contracts; and
1.7 (E) ease of competitive entry for now and
18 small selllers.
19 DEFINITIONS
20 SEC. 3. For purposes Hof this Act-
21 (a) The term "acquisition" means any relationship en-
22 tered into to obtain property 'or services for the direct benefit
or use of an executive agency through purchase, lease, or
barter to meet a public need, whether the property,orservices
are already in existence or must be created, developed,
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1 demonstrated, and evaluated. Acquisition includes such re-
2 l.ated functions as determination 'of the particular public need;
3 solicitation; selection of sources; award 'of 'contracts; contract
4 financing and contract performance.
5 (b) The term "executive agency" means an executive
6 department as defined by 'section 101 of title 5, United
7 States Code; an independent establishment as defined by
8 section 104 of title 5, United States Code (except that it
9 shall not include the General Accounting Office) ; a mili-
10 tary department as defined by section 102 of title 5, United
11 States Code; and the United States Postal Service;
12 (c) The term "agency head" means the head of an
13 executive agency as defined in subsection (b) .
14 (d) The term "head of a procuring activity" means
15 that official, intermediate between the Agency head and the
16 contracting officer, who has the responsibility for super-
17 vision and direction of the procuring activity.
18 (e) The term "property" includes personal property
19 and leaseholds and other interests therein, but excludes real
20 property in being and leaseholds and other interests therein.
21 (f) The term "services" means all services, including
22 administrative, support-type, and professional.
23 (g) The term "total cost" means. all resources con-
24 sumed or to be consumed in making an acquisition to
25 achieve an end purpose; and may include all direct, in-
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1 direct, recurring, nonrecurring, and other related costs in-
2 curred, or estimated to be incurred in design, development,
3 production, operation, maintenance, disposal, training, and
4 support of an acquisition over its useful life span, wherever
5 each factor is applicable.
6 .(h) The term "price data" means actual prices pre-
7 viously paid, contracted, quoted or proposed and the related
8 dates, quantities, and item descriptions existing up to a
9 time as close as practicable to any new agreement on price.
10 (i) The term "protest" means a challenge to the
11 solicitation, proposed award, or award of a contract made
12 by an executive agency for the acquisition of property or
13 services.
14 TITLE I-ACQUISITION METHODS AND
15 REGULATORY GUIDANCE
16 ACQUISITION METIIODS
17 .SEC. 101. (a) An executive agency shall acquire prop-
18 erty or services in accordance with the policies specified in
19 section 2 of this Act by utilizing-
20 (1) the competitive sealed bids method as pro-
21 vided in title II of this Act; or
22 (2) the competitive negotiation -method, as pro-
23 vided in title III of this Act ; or
24 (3) the competitive small purchase method as pro-
25 vided in title IV of this Act.
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1 (b) These methods of acquiring property or services
2 are equally valid alternatives and shall be selected on the
3 basis of the nature of the product or service being acquired,
4 the circumstances of the acquisition, and other criteria as set
5 forth in this Act or as may lie established by the Adrninis-
E trator of the Office of Federal Procurement Policy.
7 REGULATORY CONIPLTANCE
8 SEC. 102. (a) The Administrator of the Office of Fed-
9 eral Procurement Policy is authorized and directed, pursuant
10 to the authority conferred by Public Law 93-400 and sub-
11 ject to the procedures set forth in such public law-
12 (1) within two years after the date of enactment
13 of this Act, to promulgate a single, simplified, uniform
14 Federal regulation implementing the policies and proce-
15 dares prescribed in this Act and to establish procedures
16 for insuring compliance with such provisions by all
17 executive agencies; and
18 (2) to make periodic studies of the use of the
19 acquisition methods prescribed by this Act in order to
20 determine whether agency compliance with this Act has
21 been efficient and effective.
22 (b) 'The Administrator of the Office of Federal Procure-
23 went Policy shall include in his annual report required under
24 section 8 of Public Law 93-400 a report of his activities
25 under this section, including his assessment of agency ini-
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plementation of and compliance with the requirements of
this Act; specific reductions in the use of Federal specifica-
tions pursuant to sections 202 and 302 of this Act; and
recommendations for revisions in this Act or any other pro-
vision of law.
TITLE II-ACQUISITION BY COMPETITIVE
SEALED BIDS
CRITERIA FOR USE
SEC. 201. The competitive sealed bids method should
be used in the acquisition of property and services when-
(1) the anticipated total contract price exceeds the
amount specified in title IV of this Act for use of the
competitive small purchase procedures method; and
(2) the public need can be practicably defined in
terms not restricted by security or proprietary design;
16 and
(3) the private sector industrial base will provide a
sufficient number of qualified suppliers willing to com-
pete for and able to perform the contract; and
(4) suitable products or services have been fully
developed and previously supplied in comparable forms
so to warrant the award of a fixed price contract to a
successful bidder selected primarily on the basis of price;
24 and
(5) the time available for acquisition is sufficient
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1 to prepare the purchase description and to carry out the
2 requisite administrative procedures; and
(6) the property or service is to be acquired and,/
4 or used within the limits of the United States and its
5 possessions; and
6 (7) the price for the property or service has not
7 been established by or pursuant to law.
8 INVITATION FOR SEALED BIDS
9 SEC. 2,02. (a) The invitation for sealed bids shall be
10 formally advertised in such a way that-
11 (1) the time prior to opening the bids will be suf-
12 ficient to permit effective competition; and
13 (2) the purchase description will be accessible to
14 all interested potential bidders, except where restricted
15 to bidders qualified under a duly authorized set-aside
16 program.
17 (b) The invitation shall include a description of the
18 method to be used in evaluating bids, including factors other
19 than price.
20 (c) To the extent practicable and consistent with needs
21 of the Agency, purchase descriptions shall be stated in func-
22 tional terms to permit a variety of distinct products or serv-
23 ices to qualify, or, when a particular type of product or serv-
24 ice must be designated, in terms of performance specifica-
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tions which stipulate a range of acceptable characteristics or
2 minimum standards.
3 (d) The preparation and use of definitive product speci-
4 fications in a purchase description shall be subject to prior
5 approval by the Agency head. Such approval shall include
6 written justification, to be placed in and made a part of the
7 official contract file, delineating the circumstances which pre-
8 clude the use of functional or performance specifications and
9 which require the use of detailed product specifications in
10 the purchase descriptions.
11 (e) Where the use of functional or performance specifi-
12 cations make it impracticable to plan for award primarily
13 on the basis of price, the contracting officer may request the
14 submission of unpriced technical proposals and subsequently
1.5 issue an invitation for sea=led bid limited to those offerors
16 whose technical proposals meet the standards set forth in
17 the purchase description.
:18 EVALUATION, AWARD, AND NOTIFICATIONS
19 SEC. 203. (a) All bids shall be opened publicly at the
20 time and place stated in the invitation.
21 (b) Award shall be made to the responsible bidder
22 whose bid conforms to the invitation and is most advan-
23 tageous to the Government, price and other factors
24 considered.
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1 (c) Notice of such award shall be made in writing
2 by the contracting officer with reasonable promptness and
3 all other bidders shall be appropriately notified.
4 TITLE III-ACQITISITION BY COMPETITIVE
5 NEGOTIATION
6 CRITEnTA FOR USE,
7 SEC. 301. The competitive negotiation method may be
8 used in the acquisition of property and services when-
9 (1) the anticipated total contract price exceeds
10 the amount specified in title IV of this Act for use of
11 the competitive small purchase procedures method; and
12 (2) the acquisition does not meet the criteria
13 established pursuant to section 101 (b) or as set forth
14 in section 201 for use of competitive sealed bids.
15 SOLICITATIONS
1-6 SEC. 302. (a) Solicitations for offers shall be made
17 from a sufficient number of qualified sources so as to obtain
18 effective competition and shall be publicized in accordance
19 with section 8 (e) of the Small Business Act, with copies
20 of the solicitation to be provided to other interested sources
21 upon request.
22 (b) (1) When price is not expected to be the deciding
23 factor in making an award, the solicitation shall include
24 both the methodology and the relative importance of all
25 significant factors to be used during competitive evaluation
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1 and for final selection. In any case, if price is included as
2 a primary or significant factor, the Government's evaluation
3 shall be based to the maximum extent practicable on the
4 total cost to meet the Federal need and not on the cost
5 of completing any initial or partial segments of activity.
6 (2) Any changes in the methodology or evaluation
7 factors which may affect the outcome of the competition
8 shall be promptly communicated to all competitors.
9 (c) To the maximum extent practicable, solicitations
10 shall set forth the public need in functional terms so as to
11 permit the application of a variety of technological ap-
12 proaches and elicit the most promising competing alterna-
13 tives. Solicitations shall not prescribe performance character-
14 istics based on a single approach. Solicitations shall also not
15 prescribe technical characteristics obtained from any poten-
16 tial competitor.
17 (d) If either the Government or an offeror identifies
1S inadequacies in the solicitation which cause misunderstand-
19 ings of the public's needs or requirements, clarification of
20 intent shall be made to all offerors in a timely fashion and, on
21 an equal basis.
22 EVALUATION, AWARD, AND NOTIFICATIONS
23 SEC. 303. (a) Written or oral discussions shall be con-
24 darted with all qualified offerors who remain in a competi-
25 Live range solely for the purpose of obtaining any needed
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1 clarification or extension of offers. An initial offer may be
2 accepted without discussion.
3 (b) When awards me made for alternative approaches
4 selected on the basis of the factors contained in the solicita-
5 tiorr, whether for design, development, demonstration, or
6 delivery, to the maximum extent practicable, they shall be
7 sustained in competition until sufficient test or evaluation
8 information becomes available to narrow the choice to a
9 particular product or service.
10 (c) Until award is made, information concerning the
11 award shall not be disclosed to any person not having direct
12 source selection responsibilities.
13 (d) Award shall be made to one or more responsible
14 offerors whose proposal is most responsive to the factors stip-
15 ulated in the solicitation as required by section 302 (b) . No-
16 tification of award to all unsuccessful offerors shall be made
17 with reasonable promptness.
18 SYNIGLE-SOURCE EXCEPTIONS
19 SEC. 304. (a) Compliance with the procedures pro-
20 scribed in sections 302 and 303 need not be continued if--C-
21 (1) the agency head makes a determination, before
22 award, that it is impracticable to proceed with the com-
23 petitive negotiation because more than one prospective
24 source is not available ; a public exigency prevails ; or a
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1 national emergency is declared by the Congress or the
2 President;
(2) such determination, together with the reasons
therefor, is in writing and conforms with such regula-
5 tions as may be prescribed or authorized by the Office of
6 Federal Procurement Policy, pursuant to section 102
.7 (a) (1);and
81 (3) notice of intent to award such a contract is
9 publicized in advance of the award, pursuant to section
10 637 (e) of title 15, United States Code, and includes
11 a description of the property or service to be acquired
12 and the name of the prospective source.
13 In such cases, contracts may be made by negotiation with
14 a single offeror selected by the Agency. The submission and
15 certification referred to in section 305 (b) and the provisions
16 of section 305 (c) shall be required in the case of any single-
17 source contract to be awarded pursuant to this section when
IS- the amount in question is greater than the amount specified
19 in section 401.
20 (b) Where there is no commercial usage of the product
21 or service to be acquired under this section, and the Agency
22 - head determines that substantial follow-on provision of such
23 product or service will be required by the Government, the
24 Agency head shall, when he deems appropriate, take action
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1 through contractual provision, or otherwise, to provide the
2 Government with a capability to establish one or more other
3 competitive sources.
4 PRICE ANALYSIS AND COST DATA
5 SEC. 305. (a) Prior to any negotiated award, change,
6 or modification of any contract or subcontract, the con-
7 tractor and any subcontractor shall be required to submit
8 or identify in writing, with his proposal, price data bearing
9 on the reasonableness of the offer. Each such contractor
10 or subcontractor shall certify that, to the best of this knowl-
11 edge and belief, such price data is accurate, complete, and
12 current as of the date agreed upon between the parties
13 (which date shall be as close as practicable to the date of
14 agreement on the negotiated price) . The contracting officer
15 shall use price analysis techniques to analyze and evaluate
16 the reasonableness of offers where-
17 (1) the price of the contract, subcontract, change
18 or modification is less than $500,000; (the contracting
19 officer may at his discretion, however, request pricing
20 data or cost data as provided for in section 305 (b) ,
21 for contracts, subcontracts, changes or modifications,
22 where the total amount exceeds the amount specified
23 in section 401 of this Act but is less than or equal to
24 $500,000) ; or
25 (2)_ the price is an established catalog or a market
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price of a commercial item sold in substantial quan-
tities to the general public; or
(3) the price is already set by law or regulation ;
4 or
5 (4) negotiation is based on adequate price com-
6 petition, wherein price is a primary or significant
7 factor; or
8 (5) there was recent competitive purchase under
9 relatively similar circumstances.
10 (b) Where the contract or subcontract is a single-
11 source award pursuant to section 304, or for other nego-
12 tiated contracts when the contract or subcontract does not
13 meet any one of the conditions set forth in section 305 (a) -
14 (1) the contractor and any subcontractor shall be
15 required to submit or identify in writing, with his pro-
16 posal, cost data bearing on the reasonableness of the
17 offered price; and
(2) shall certify that, to the best of his knowledge
and belief, such cost data is accurate, complete and cur-
rent as of the date agreed upon between the parties
(which date shall be as close as practicable to the date
or agreement on the negotiated price) .
(c) Any prime contract or change or modification
thereto tinder which a certification is required under sub-
section (b) shall contain a provision that the price to the
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1 Government, including profit or fee, shall be adjusted to
2 exclude any significant suns by which it may be determined
3 by the Agency head that such price was increased because
4 the contractor or any subcontractor required to furnish such
5 a certilca te, furnished data which was not accurate, co111-
6 plete or current.
7 (d) The Agency head may grant a waiver from the pro-
8 visions of sections 305 i(a) and (b) . Such waiver shall in-
9 elude a written justification, to be placed in and made a part
10 of the contract file, setting forth the reasons why the provi-
11 lions of sections 305 (a) and (b) must be waived.
1.2 (c) At least every three years, beginning with the third
13 year after enactment of this Act, the Administrator of the
14 Office of Federal Procurement Policy shall review and may
15 revise the thresholds cited elsewhere in this section, or any
16 prior revision hereto, notwithstanding any other provision
17 of law, to reflect an increase or decrease by at least 10 per
is cen.tum in the costs of labor and materials. At least sixty
1.9 days in. advance of its effective date, the Administrator shall
20 report to Congress any such revision which by itself, or cu-
21 nmlatively with earlier increases, represents a 50 per centum
22 or more increase.
23 ACCESS TO RECORDS
24 SEC. 306). (a) Until expiration of three years after
25 final payment under a contract negotiated or amended under
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1 this title, the Comptroller General of the United States and
2 an executive agency or their authorized representatives. are
3 entitled to inspect the plants and examine any books, docu-
4 ments, papers, records or other data of the contractor and
5 his subcontractors that pertain to, and involve transactions
6 relating to the contract or subcontract or to the amendment
7 thereof, including for the purpose of evaluating the accuracy,
8 completeness and currency of data certified under section
9 305, all such books, records and other data relating to the
10 negotiation, pricing, or performance of the contract or sub-
11 contract. This provision may be waived for any contract
12 or subcontract with a foreign contractor or subcontractor,
13 if the Agency head determines, with concurrence of the
14 Comptroller General, that waiver would be in the public
15 interest.
16 (b) Inspections and examinations by executive agen-
17 Gies under subsection (a) shall be conducted only when
18 necessary to insure contract performance. Multiple inspec-
19 tions and examinations of a contractor or subcontractors by
20 more than one executive agency shall be eliminated to the
21 maximum extent practicable by coordinating inspection
22 and examination responsibilities in accordance with regula-
23 tions to be issued or authorized by the Office of Federal
24 Procurement Policy pursuant to section 102 (1).
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1 TITLE IV-ACQ1JISITION BY COMPETITIVE
2 SMALL PURCHASE PROCEDURES METHOD
3 CRITERIA FOR USE
4 SEC. 401. (a) The competitive small purchase procc-
5 dures method may be used in the acquisition of property and
6 services under regulations authorized or prescribed by the
7 Office of Federal Procurement Policy under section 102.(1)
8 when the anticipated total contract price does not exceed
9 $10,000 but, in lieu of this method, the contracting officer
10 may use either of the competitive methods prescribed in
11 titles II or III of this Act when such use would be, more
12 advantageous to the Government.
13 (b) At least every three years, beginning with the
14 third year after enactment of this Act, the Administrator
15 of the Office of Federal. Procurement Policy shall review
16 the prevailing costs of labor and materials and may revise
17 the amount stated in section 401 (a) or any prior revision
18 thereof, notwithstanding any other provision of. law, to
19 reflect an increase or decrease by at least 10 per centum
20 in the costs of labor and materials. At least sixty days in
21 advance of its effective date, the Administrator shall report
22 to Congress any such revision which by itself, or cumula-
23 tively with earlier increases, represents 50 per centum or
24 more increase.
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1 SOLICITATIONS AND AWARDS
2 SEC. 402. The Contracting officer may make an award
3 to the contractor whose offer is most advantageous to the
4 Government but shall seek to obtain effective competition
5 to the maximum extent practicable through informal means.
6 TITLE V-GENERAL PROVISIONS
7 CONTRACT TYPES
8 SEC. 501. (a) Contracts may be of any type or combi-
9 nation of types, consistent with the degree of technical and
10 financial risk to be undertaken by the contractor, which will
11 promote the best interests of the Government except that the
12 cost-plus a percentage-of-cost system of contracting shall not
13 be used under any circumstances.
14 (b) The preferred contract form for all contracts shall
15 be a fixed-price type. Where the technical or financial risks
16 of negotiated contracts are substantial, fixed-price contracts
17 with options for shorter work increments are preferred to
1S longer cost-type contracts so as to maintain greater control
19 over Government obligations.
20 WARRANTEE AGAINST CONTINGENT FEES
21. SEC. 502. Each contract negotiated under title III of
22 this Act or an award to be made as a result of the submission
23 of a technical proposal under section 202 (e) of this Act shall
24 contain a warrantee by the contractor that no person or sell-
S.1264 4
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1 ing agency has been employed or retained to solicit or secure
2 the contract upon an agreement or understanding of a corn-
3 mission, percentage, brokerage, or contingent fee, excepting
4 bona fide employees or bona fide established commercial or
5 selling agencies maintained by the contractor for the pur-
6 pose of securing business -; and that for any breach or viola-
7 tion of the warrantee, the Government may annul the con-
S tract without liability or deduct from the contract price or
9 consideration the full amount of the commission, percentage,
10 brokerage, or contingent fee.
11 CANCELLATIONS AND REJECTIONS
12 SEC. 503. (a) Where the contracting officer determines
13 that it is in the best interest of the Government, the con-
14 ?tracting offioer may-
15 ,(1) withdraw a small purchase or4er prior to the
16 -consummation of a contract;
17 ,(2) cancel an invitation for sealed bids before bid
i's opening or =after bid opening but before -award; or
19 (3) cancel a request for proposal and reject all
20 offers.
21 (b) When requested, the contracting officer shall fully
22 inform any unsuccessful offeror or bidder of the :reasons for
2 3 the rejection of his offer or hid.
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MULTIYEAR CONTRACTS
2 SEC. 504. (a) Except as otherwise provided by law,
an agency may make contracts for acquisition of property
4 or services for periods not in excess of five years, when
5 appropriations are available and adequate for payment for
6 the first fiscal year and the Agency Beard determines that-
7 (1) the Government need for the property or
S services being acquired over the period of the contract
0 is reasonably firm and continuing; and
10 (2) such a contract will serve the best interests of
11 the United States by encouraging effective competition
1.2 or promoting economies in performance and =operation.
13 (b) The Administrator of the Office of Federal Pro-
14 curemeit Policy may grant exceptions to the five year
15 limitation imposed by subsection (a) upon the certification,
16 in such form and of such content as the Administrator may
17 require, by the Agency head that such exception is in the
18 best interests of ;the Government. A. copy of each such
19 certification and each exception granted shall be delivered
20 to the chairman -o`f the Committee on Government Opera-
2.1 tions and The Committee -on Appropriations of the House
22 of Representatives and the Senate, respectively.
2; (.c) Any cancellation costs incurred must be paid from
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1 appropriated funds originally available for performance of
2 the contract, or currently available for procurement of similar
3 property or services, and not otherwise obligated, or appro-
4 priations made available for such payments.
5 ADVANCE, PARTIAL, AND PROGRESS PAYMENTS
6 SEC. 505. (a) Any executive agency may-
7 (1) make advance, partial, progress, or other pay-
8 ments under contracts; and
9 (2) insert in solicitations a provision limiting ad-
10 vance or progress payments to small business concerns.
11 (b) Advance payments under subsection (a) shall not
12 be made in excess of the amount required for contract per-
13 formance and shall not exceed the unpaid contract price.
14 (c) When progress payments are made, the Govern-
15 ment shall have title to the progress payment inventory and,
16 notwithstanding any other provisions of law, that title may
17 not be divested by any action of the contractor, or proceed-
1S ing in bankruptcy, or encumbered by any lien or security
19 interest.
20 (d) Advance payments under subsection (a) may be
21 made only upon adequate security and a determination by
22 the Agency head that to do so would be in the public inter-
23 est. Such security may be in the form of a lien in favor of
24 the Government on the property contracted for, on the bal-
25 ance in an account in which such payments are deposited,
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1 or on such property acquired for performance of the contract
2 as the parties may agree. This lien. shall have priority over
3 all other liens.
4 REMISSION OF LIQUIDATED DAMAGES
5. SEC. .506.Upon the recommendation of the Agency
6 head the Comptroller General of the United States .ay
7 remit all or part, as he considers just and equitable, of any
8 liquidated damages provided by the contract for delay. in
9 performing the contract.
10 DETERMINATIONS AND FINDINGS
11 SEC. 507. (a) Determinations, findings, and decisions
12 provided for by this Act may be made with respect to con-
13 tracts individually or with respect to classes of contracts.
14 (b) Each determination or decision shall be based upon
15 written findings of the officer making the determination or
16 decision, and shall be retained in the official contract file.
17 COMPETITIVE BIDDING INFORMATION
18 SEC. 508. (a) If the contracting officer or any other
19 agency employee has reason to believe that any bid, pro-
20 posal or offer evidences a violation of the antitrust laws or
21 , provisions of this Act, he shall refer that bid, proposal or
22 offer through the appropriate agency official, directly to the
23 Attorney General, of. the United States for appropriate
24 action.
25 (b) Upon the request of the Attorney General of the
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United States, the Agency head shall make available to the
Attorney General information which the Attorney General
considers necessary and relevant to any investigation, prose-
4 cution or other action by the United States under the anti-
trust laws or other statute enforced by the Attorney General.
6 (c) The Agency head. shall render needed assistance to
7 the Attorney General in any investigation and prosecution
flowing from the information provided in subsection (a)
9 or (b) or from other investigation and prosecution in other
antitrust matters.
11 GOVERNMENT SURVEILLANCE REQUIREMENTS
SEC. 509. (a) Notwithstanding any other provision of
law, an agency head may grant a waiver from Government
14 surveillance requirements for a period not to exceed two
15 years to that part of a contractor's operation which is sep-
16 arately managed and accounted for if more than 75 per cen-
17 tum of the business activity of that part of a contractor's
18 operation as measured by total sales volume, is being con-
19 ducted under commercial and competitive Government con-
20 tracts, where the Government awarded firm fixed-price
21 type contracts or where price was the deciding or a. signifi-
22 cant factor for award.
23 (b) Such a waiver shall relieve that contractor profit
24 center from Government, but not General Accounting Of-
fice surveillance requirements including :
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1 (1) agency management, procurement system and
2 property reviews ;
3 (2) determinations of the reasonableness of indi-
4 rect overhead costs;
5 (3) provisions of the Cost Accounting Standards
6 Act (Public Law 93-379) ;
7 (4) advance agreements for independent research
8 and development and bid and proposal activities; and
9 (5) provisions of the Renegotiation Act.
10 (c) Such a waiver shall not be granted, and may be
11 revoked at any time, if the Agency head determines 'that,
12 for other reasons, the combination of commercial and Gov-
13 ernment competitive activity is insufficient to insure efficient
1.4 contractor activity under Government contracts.
15 MAINTENANCE OF REGULATIONS
16 SEC. 510. (a) Notwithstanding the provisions of title
17 VIII of this Act, or any other provisions of law, regulations,
1S including amendments thereof approved pursuant to sub-
19 section (b), relating to Federal procurement as determined
20 by the Administrator of the Office of Federal Procurement
21 Policy, promulgated or in effect one hundred and eighty days
22 before the date of enactment of this Act shall remain in ef-
23 fect until repealed by order of the Administrator of the
24 Office of Federal Procurement Policy or until the lapse of
25 two years after the date of enactment of this Act, whichever
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1 is earlier. No regulation preserved by operation of this sec-
2 tion may be amended without the prior approval of the Ad-
3 ministrator of the Office of Federal Procurement Policy.
4 (b) The Administrator of the Office of Federal Pro-
5 curement Policy is authorized to approve the amendment of
6 regulations preserved under the provisions of subsection (a)
7 TITLE VI-DELEGATION OF AUTHORITY
8 DELEGATION WITHIN AN EXECUTIVE AGENCY
9 SEC. 601. Each agency head may delegate any author-
10 ity under this Act except the authority to grant waivers
11 under section 509, provided that the authority to make
12 determinations under sections 202 and 304 through 306
13 shall not be delegated below the level of the head of a
1.4 procuring activity.
1.5 JOINT ACQUISITIONS
16 SEC. 602. (a) To facilitate acquisition of property or
17 services by one executive agency for another executive
IS. agency, and to facilitate joint acquisition by those agencies-
19 (1) the Agency head may, within his agency,
20 . delegate functions, and assign responsibilities relating
21 to the acquisition;
22 (2) the heads of two or more executive agencies
23 may by agreement delegate acquisition functions and
24 assign acquisition responsibilities from one agency to
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1 another of those agencies or to an officer or civilian
2 employee of another of those agencies; and
3 (3) the heads of two or more executive agencies
4 may create joint or combined offices to exercise acquisi-
5 tion functions and responsibilities.
6 (b) Subject to the provisions of section 686 of title 31,
7 United States Code
8 (1) appropriations available for acquisition of
9 property and services by an executive agency may
10 be made available for obligation, for acquisition 'of
11 property and services by any other agency in amounts
12 authorized by the head of the ordering agency and
13 without transfer of funds on the books of the Depart-
14 ment of the Treasury;
15 (2) a disbursing officer of the ordering agency may
16 make disbursement for any obligation chargeable under
17 subsection (a) of this section, upon a voucher certified
18 by an officer or civilian employee of the acquisition
19 agency.
20 ' TITLE VII=PROTESTS
21 PURPOSE
22 SEC. 701. In accordance with, the authority of the
23 Budget and Accounting Act of 1921 (chapter 18, title III:,
24 section 304, 42 Stat. 24, 31 U.S.C. 44) and this title,
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1 protests shall be decided in the General Ac eou iting Office.
2 To the fullest extent possible, the Comptroller General shall
3 provide for the iate.Npensive, infortual, and eipeditious res-
4 altation.of protests.
5 J [J:RL$DICTION
9
the, 702. (a) The Coaaaptroller General shall have
authority to decide any protest submitted by an interested
party in accordance with rules and regulations he shall issue
pursuant to section 704,
(b) No contract shall. be awarded after the contracting
11 activity has received uotiee of a protest to the Comptroller
12 General whale the matter is pending before him: Provided,
13 ho .vever, That the head of an e-xecutive agency may author-
14 ize the award of a contract notwithstanding such protest,
15 upon a written finding that the interest of the United States
16 will not permit awaiting the decision of the Comptroller
17 General, +)W provided further, That the Comptroller is
.8 advised prior to the award of such finding.
19 (c) With respect to any solicitation, proposed award,
20 or award of contract protested to him in accordance with this
21 title, the Comptroller General is authorized to declare that
22 such solicitation, proposed award, or award does not corn-
23 port with law or regulation. If award has been made prior
24 to such declaration the Comptroller General may furthcr
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1 declare that the contract shall be termhiated for the coit-
2 venience of the Government.
3 PROCEEDINGS
4 SEC. 703. (a) Proceedings shall be informal to the
5 fullestextent possible.
(b) Each deci si'o' Of the Comptroller General shall be
-7 signed by him or his delegee and slaall be binding upon all
8 interested parties including the executive agency or agencies
9 involved. A copy of the decision shall be furnished to the
10 interested parties and the executive agency or agencies
1.1 involved.
12 (c) (1) All decisions shall be rendered promptly, con--
1.3 sisteiit with the need to develop a complete record, in tw,
114 cordance with regulations to be issued by the Comptroller
15 General pursuant to section 704 of this title.
1G (2) There shall be no ex parts proceedings before the
17 Comptroller General except that this :section shall not be
1S deemed to preclude informal contacts with the parties for
19 procedural purposes.
20 (3) A conference shall be permitted before decision;
21 howover, no tram scripts shall be required. Trausoripts may
22 be permitted at the Comptroller General's discretion or at
23 the request of the interested party, provided the Comptroller
24 General and each other interested party shall be furnished
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1 a copy. Costs of such transcripts and services shall be borne
2 by the requesting party.
3 (4) The Comptroller General shall, for good cause
4 shown, authorize formal discovery proceedings and may
5 sign and issue subpenas requiring the production of
6 books and records and attendance of witnesses for the
7 taking of evidence. In case of refusal to obey a subpena
8 by a person who resides, is found, or transacts business
9 within the jurisdiction of a United States district
10 court, the court, upon application of the Comptroller
11 General, shall have jurisdiction to issue the person an
12 order requiring him to appear before the Comptroller
13 General or his designee to produce the books and rec-
14 ords, or to give testimony, or both. Any person who fails
15 to obey the order of the court may be punished by the
16 court as a contempt thereof.
17 (d) The Comptroller General is authorized to dismiss
18 any protest he determines to be frivolous or which, on its
19 face, does not state a valid basis for protest.
20 (e) Where the Comptroller General has declared that
21 solicitation, proposed award, or award of a contract does
22 not comport with law or regulation, he may further declare
23 the entitlement of an appropriate party to bid and proposal
24 preparation costs. In such cases the Comptroller General
25 may remand the matter to the executive agency involved
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for an initial determination as to the amount of such costs.
Declarations of entitlement to monetary awards shall be
paid promptly by the executive agency concerned out of
funds available for the purpose of the procurement or sale.
(f) The Comptroller General, where he deems appro-
priate, shall make recommendations for improving the pro-
curement process.
GENERAL PROVISIONS
SEC. 704. The Comptroller General shall perform such
acts, make such rules and regulations, and issue such orders,
not inconsistent with this title, as may be necessary in the
execution of the protest decision function. He may delegate
his authority to other officers or employees of the General
Accounting Office.
TITLE VIII-AMENDMENTS AND REPEALS-
AMENDMENTS
SEC. 801. (a) The Agriculture Department Appropria-
tion Act, 1923, is amended by striking out ", after due ad-
vertisement and on competitive bids," in the first proviso
on the page at forty-second Statutes at Large, page 517
(7 U.S.C. 4t6).
(b) Sections 101 (d) and 104 of the Department of
Agriculture Organic Act of 1944 (58 Stat. 734, 736; 7
U.S.C. 430, 432) are amended by striking out "in the open
25 market".
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(c) Section 2356(b) of title 10, United States Code,
is amended by striking out the last sentence.
(d): Sections 4504 and 9504 of title 10, United States
Code, are each amended by striking out everything after
"United States" and inserting in lieu thereof a period.
6 (e) Sections 4505 and 9545 of title 10, United States
14
15
16
17
19
20
Code, are each amended by striking out the second sentence.
(f) Clause (2) of section 502 (c) of the Act of August
10, 1948 (02 Stat. 1283; 12 U.S>.C. 1701c (b) (2)) , is
amended by striking out ", without regard to section 3709
of the Revised Statutes".
(g) Section 502 (e) of the Act of December 31, 1970
(84 Stat. 1784; 12 U.S.C. 1701z-2 (e) ), is amended by
striking out ", without regard to section 3709 of the Revised
Statutes,".
(h) Section 708 (h) of the Act of June 27, 1934, as
amended August 10, 1948 (62 Stat. 1279; 12 U.S.C. 1747
g (h) ), is amended by striking out the proviso at the end..
(i) Section 712 of the Act of June 27, 1934, as
amended August 10,. 1948 (62 Stat. 1281; 12 U.S.C.
1747k) is amended by striking out "and without regard
to section 3709 of the Revised Statutes".
(j) Section 208 (b) of the Act of June 26, 1934, as
amended October 19, 1970 (84 Stat. 1014; 12 U.S.C.
1788 (b) , is amended by striking out the last sentence.
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1 (k) Clause (4) of section 2 (b) of the Act,of July 18,
2 1958 (72 Stat. 3&0; 15 U.S.C. 634 (b) (4) ), is amended
3 by striking out: "Section 3709, of the Revised Statutes, as
4 amended (41 U.S.C., section 5), shall not be construed
5 to apply to any contract of hazard insurance or to any pur-
6 chase or contract for services or supplies on account of prop-
7 erty obtained by the Administrator or as a result of loans
8 made under this Act if the premium therefore or the amount
9 thereof does not exceed $1,000.".
10 (1) Section 3 of the Act of April 24, 1950 (64 Stat.
11 83; 16 U.S.C. 580e) , is amended to read as foiIow.s :
12 "'SEC. 3. The Forest Service Is authorized to niake
13 purchases of (1) materials to be tested or upon which
14 experiments are to be made or (2) special devices, test
15 models, or parts thereof, to be used (a) for experimenta-
16 tion to determine their suitability for or adaptability to
17 accomplishment of the work for which designed or (b) in
19 the designing or developing of new equipment : Provided,
19 That not to exceed $50,000 may be expended in any one
20 fiscal year pursuant to this authority and not to exceed
21 $10,000 on any one item or purchase.".
22 (m) Section 2 (b) (1) of the Act entitled "An Act to
23 authorize the construction of a National Fisheries Center
24 and. Aquarium in the District of Columbia and to provide for
25 its operation", approved October 9, 1962` (76 Stat. 753;
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1 16 U.S.C. 1052), is amended by striking out ", without
2 regard, to the provisions of section 3709 of the Revised
3 Statutes of the United States (41 U.S.C. 5) ,".
4 (n) Subsections 2 (a) (1) and 2 (b) (1) of the Act of
.,5 July 26, 1954 (79 Stat. 44; 20 U.S.C. 331a (a) (1), (b)
6 (1), are amended by striking out any references to section
7 3709 of the Revised Statutes and to section 5 of title 41,
8 United States Code.
9 (o) Section 224 (a) 'of ithe Act of November 8, 1. 9.65
10 (79 Stat. 1228; 20 U.S.C. 1034 (a) ), is amended by strik-
11 ing out ", and, without regard to section 3709 of the Revised
12 Statutes (41 U.S.C. 5) ,'.'.
13 (p) Section 7 of the Act of December 20, 1945, as
14 amended October 10, 1949 (59 'Stat. 621; 22 U.S.C. 287e),
15 is amended by striking out ", all without regard to section
16 3709 of the Revised Statutes, as amended (41 U.S.C. 5) ".
17 (q) Section 707 of the Act of August 13, 1946 (60
18 Stat. 1019; 22 U.S.C. 1047), is amended by striking out
19, ", without regard to section 3709 of the Revised Statutes".
20 (r) Section 22 (e) (7) of the Act of December 29,
21 1970 (84 Stat. 1613, 29 U.S.C. 671 (e) (7)) is amended
22 by striking 'out ", and without regard to section 3709 of the
23 Revised Statutes, as amended (41 U.S.C. 5), or any other
24 provision of law relating to competitive bidding."
25 (s) Section 6 (b) of the Act of August 31, 1954 (68
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1 Slat. 1.010; 30 U.S.C. 556 (b) ), is amended by striking out
2 "and without regard to the provisions of section 3709, Re-
3 vised Statutes (41 U.S.C. 5) ".
4 (t) Section 1820 (b) of title 38, United States Code,
5 is amended by striking out "section 5 of title 41" and in-
6 sorting in lieu thereof the "Federal Acquisition Act of
7 1977" and by deleting "if the amount of such contract
8 exceeds $1,000.".
9 (u) Section 5002 of title 38, United Slates Code,
10 is amended by substituting a period for the comma after
11 "work" and striking out the remainder of the section.
12 (v) The Act of October 10, 1940, as amended (54
13 Slat. 109; 41 U.S.C. 6a, b (a) , (c) , (d) , is amended
14 by striking out section 2 and subsections (e) and (d), and
15 by striking out "without regard to the provisions of sec-
16 tion 3709 of the Revised Statutes, as amended," in sub-
17 section (a) . The Act of July 27, 1965 (79 Slat. 276; 41
18 U.S.C. 6a-1) is amended by striking out any and all ref-
19 erences to section 3709 of the Revised Statutes in the
20 sections relating to Architect of the Capitol.
21 (w) Section 11 of the Act of June 30, 1936 (49
22 Slat. 2039, renumbered section 12 in 66 Slat. 308; 41
23 U.S.C. 45), is amended to read as follows :
24 "SEc. 12. The provisions of this Act requiring the
25 inclusion of representations with respect to minimum wages
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shall apply only to purchases or contracts relating to such
industries as have been the subject matter of a determina-
3 tion by the Secretary of Labor.".
4 (x) Section 356 (b) of the Act of July 1, 1944, as
5 added October 18, 1968 (82 Stat... 1175; 42 U.S.C. 163d
6 (b) ) , is amended by striking out the references to section
7 3709 of the Revised Statutes and 41 U.S.C. 5 in clause (3),
8 and by striking out the parenthetical phrase "by negotiation
9 or otherwise) " in clause (4)
10 (y) Section 1 (b) of the Act of October 14, 1940 (5 4
11 Stat. 1126; 42 U.S.C. 1521 (b) ), is amended by striking
12 out the reference to section. 3709 of the Revised Statutes in
13 the first parenthetical phrase, and by striking out the first
14 proviso.
15 (z) Section 202 (b) of the Act of October 14, 1940 (55
16 Stat. 362; 42 U.S.C. 1532 (b) ), is amended by striking out
17 the reference to section 3709 of the Revised Statutes.
18 (aa) Section 309 of the Act of September 1, 1951 (65
19 Stat. 307; 42 U.S.C. 1592h) is amended by striking out
20 clause (a), and amending clause (b) to read as follows:
21 " (b) the fixed-fee under a contract on a cost-plus-a-
22 fixed-fee basis shall not exceed 6 per centum of the esti-
23 mated cost;".
24 (bb) Sections 103 (b) (4) and 104 (a) (2) of the Act
25 of July 14, 1955, as amended November 21., 1967 (81
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1 Stat. 486, 487; 42 U.S.C. 1857b (b) (4), b-1 (a) (2) ) , is
2, amended by striking out the references to section 3709 of
3 the Revised Statutes and to section 5 of title 41, United
4 States Code.
5 (cc) Section 31 (b) of the Atomic Energy Act of 1954
10
13
(68 Stat. 927; 42. U.S.C. 2051e) is amended to read as
follows :
" (b) The Commission may make available for use in
connection with arrangements made under this section such
of its equipment and facilities as it may deem desirable.".
(dd) Section 41 (b) of the Atomic Energy Act of
1954 (68 Stat. 928; 42 U.S.C. 2061 (b)) , is amended
by striking out the two sentences immediately preceding
14 the last sentence in this section.
15 (ee) Section 43 of the Atomic Energy Act of 1954
16 (68 Stat. 929; 42 U.S.C. 2063), is amended by striking
17 out the following : "without regard to the provisions of sec-
18 tion 3709 of the Revised Statutes, as amended, upon certifi-
19 cation by the Commission that such action is necessary in
20 the interest of the common defense and security, or upon a
21 showing by the Commission that advertising is not reason-
22 ably practicable. Partial and advance payments may be
23 made under contracts for such purposes.".
24 (ff) Section 66 of the Atomic Energy Act of 1954 (68
25 Stat. 933; 42 U.S.C. 2096), is amended by striking out
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1 the following: "Any purchase made under this section may
2 be made without regard to the provisions of section 3709
3 of the Revised Statutes, as amended, upon certification by
4 the Commission that such action is necessary in the interest
5 of the common defense and security, or upon a showing by
6 the Commission that advertising is not reasonably prac-
7 ticable. Partial and advance payments may be made under
8 contracts for such purposes.".
9 (gg) Section 203 (e) of the Act of April 3, 1970
-10 (84 Stat. 115; 42 U.S.C. 4372 (e)) , is amended by strik-
11 ing out the references to section 3709 of the Revised
12 Statutes and to section 5 of title 41, United States Code.
13 (hh) Section 703 of the Act of June 29, 1.936 (49
14 Stat. 2008; 46 U.S.C. 1193) , is amended by striking out
15 subsection (a), by striking out "For the construction, re-
16 construction, or reconditioning of vessels, and" in subsec-
17 tion (c), and by renumbering subsections (b) and (c)
18 as (a) and (b), respectively.
19 (ii) Section 8 (a) of the Act of September 30, 1965
20 (79 Stat. 894; 49 U.S.C. 1638 (a) ), is amended by
21 striking out the references to section 4709 of the Revised
22 Statutes and to section 5 of title 41, United States Code,
23 in paragraph (1), and by striking out paragraph (3) .
24 (jj) Section 501.2 of title 38, United States Code, is
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1 amended by striking out the second sentence in subsection
(a) and all of subsection
(c).
3 REPEALS
4 SEC. 802. The following statutes or provisions of
5 statutes are repealed.
6 Chapters 135 and 137 and sections 2306, 4535, 4540,
7 7212, 9535, and 9540 of title 10, United States Code; see-
8 tion 7 of the Act of May 18, 1938 (52 Stat. 406; 16 U.S.C.
9 833f) ; section 7 of the Act of March 3, 1875, as amended
10 (18 Stat. 450; 25 U.S.C. 96) ; section 3 of the Act of
11. August 15, 1876 as amended (19 Stat. 199; 25 U.S.C.
12 97) ; sections 602 (d) (3) and 602 (d) (10) of the Fed-
13 eral Property and Administrative Services Act as amended
14 (40 U.S.C. 474 (3), (10) ; sections 10 (a) and 10 (b) of
15 the Act of September 9, 1959 (73 Stat. 481; 40 U.S.C.
16 609 (a), (b) ) ; 41 U.S.C. 5; section 2 of the Act of Octo-
17 her 10, 1940, as amended October 31, 1951 (54 Stat. 1110;
18 41 U.S.C. 6a) ; sections 3710 and 3735 of the Revised
19 Statutes (41 U.S.C. 8, 13) ; section 3653 of the Revised
20 Statutes, as amended by the Act if July 7, 1884 (23 Stat.
21 204; 41 U.S.C. 24) ; title III of the Federal Property and
22 Administrative Services Act of 1949 as amended; 41 U.S.C.
23 254 (b) ; section 10 (a) of the Act of September 5, 1950
24 (64 Stat. 591; 41 U.S.C. 256a) ; section 510 (a) of the
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42
1 Act of July 15, 1949 (63 Stat. 437; 42 U.S.C. 1480 (a) 2 section 6 (e) of the EURATOAI Cooperation Act of 1958
3 (72 Stat. 1085; 42 U.S.C. 2295 (e)) ; section 1345 (b) of
4 the Act of August 1, 1968 (82 Stat. 585; 42 U.S.C. 4081
5 (b) ) ; section 404 of the Act entitled "An Act to author-
6 ize appropriations during the fiscal year 1969 for procure-
7 ment of aircraft, missiles, naval vessels, and tracked combat
8 vehicles, research, development, test, and evaluation for the
9 Armed Forces, and to prescribe the authorized personnel
10 strength of the Selected Reserve of each Reserve component
11 of the Armed Forces, and for other purposes, approved,
12 September 20, 1969 (82 Stat. 849).
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1 o p,,
t~ ~ o
m U
.~ ?~ bJJ
0
H a-.+
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Purpose: m no. 3435
To permit, firms other than architectural and
engineering firms to compete for certain jobs
through the negotiated bidding procedure.
95TII CONGRESS
2n SESSION
5.1264
IN THE SENATE OF THE UNITED STATES
AUGUST 7 (legislative day, MAY ].7), 1978
Ordered to lie on the table and to be printed
AMENDMENTS
Intended to be proposed by Mr. Ciiuncil to S. 1264, a bill to
provide policies, methods, and criteria for the acquisition
of property and services by executive agencies, viz :
1 On page 92, immediately after line 4, insert the follow-
2 ing new title :
3 "TITLE X-SELECTION OF FIRMS TO PERFORM
4 INCIDENTAL SERVICES AMENDMENTS TO
-5 THE FEDERAL PROPERTY AND ADMINIS-
6 T11ATIVE SERVICES ACT OF 1949
7 "SEC. 1001. (a) Section 901 (1) of the Federal Prop-
8 erty and Administrative Services Act of 1949 is amended by
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2
inserting immediately before the period a comma and the
following: `except in the case of incidental services as
described in paragraph (3), the term "firm" includes any
individual, firm, partnership, corporation, association, or
other legal entity permitted by law or otherwise profes-
sionally qualified to perform such incidental services'.
" (b) Section 901 (3) of such Act is amended by strik-
ing out `that members of these professions and those in
their employ may logically or justifiably perform' and in-
serting `to professional architectural and engineering
services' ".
On page 43, in the table of contents, immediately after
item "Sec. 902." insert the following :
"TITLE X-SELECTION OF FIRMS TO PERFORM
INCIDENTAL SERVICES
"Sec. 1001. Amendments to the Federal Property and Administrative
Services Act of 1949.".
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 Approved For Release 2006/02/07 : CIA-RDP80SO1268A000500030003-3
Approved For Release 2006/02/07 : CIA-RDP80SO1268A000500030003-3