H.R. 2293 & S. 1001 - REAUTHORIZATION OF OFPP

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00338R000200230001-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 58
• Document Creation Date: December 22, 2016
• Document Release Date: May 6, 2009
• Sequence Number: 1
• Publication Date: June 17, 1983
• Content Type: MEMO

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98TIl CONGRESS
1ST SESSION
5.1355
To amend the Small Business Act to provide assistance to small. business concerns
in acquiring procurement information and contracts from the United States.
IN THE SENATE OF THE UNITED STATES
MAY 25 (legislative day, MAY 16), 1983
Mr. SPECTER (for himself, Mr. WEICKER, Mr. NUNN, Mr. DIXON, and Mr.
COCIIRAN) introduced the following bill; which was read twice and referred
to the Committee on Small Business
A BILL
To amend the Small Business Act to provide assistance to small
business concerns in acquiring procurement information and
contracts from the United States.
1 Be it enacted by the Senate and House of Representa-
2 tines of the United States of America in Congress assembled,
3 That this Act may be cited as the "Small Business Procure-
4 ment Reform Act of 1983".
5 PURPOSES
6 SEC. 2. The purposes of this Act are-
7 (1) to assure further that a fair proportion of Gov-
8 ernment procurement contracts are awarded to small
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1 business concerns and to increase small business par-
2 ticipation in procurement where possible;
3 (2) to simplify the contracting procedures of the
4 United States which relate to small businesses;
5 (3) to establish arbitration panels to resolve dis-
6 putes which arise between small business concerns and
7 Federal agencies concerning Government procurement
8 contracts; and
9 (4) to establish a Small Business Procurement Ad-
10 visory Committee to make legislative and administra-
11 tive recommendations concerning Government procure-
12 ment contracts for small business concerns and to pro-
13 vide better representation of small business concerns
14 before the Congress and the Small Business Adminis-
15 tration.
16 DEFINITIONS
17 SEC. 3. As used in sections 2, 6, and 7 of this Act-
18 (1) the term "Administrator" means the Adminis-
19 trator of the Small Business Administration;
20 (2) the term "Committee" means the Small Busi-
21 ness Procurement Advisory Committee established by
22 section 7;
23 (3) the term "Federal agency" has the same
24 meaning given the term "agency" by section 551(1) of
25 title 5, United States Code; and
S 1355 IS
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1 (4) the term "Government procurement contract"
2 means a contract for the procurement of goods or serv-
3 ices by a Federal agency.
4 MINIMUM NOTIFICATION STANDARDS
5 SEC. 4. Section 8 of the Small Business Act (15 U.S.C.
6 637) is amended-
7 (1) by inserting "(1)" after "(e)" in subsection (e);
8 (2) by redesignating clauses (1) through (10) in
9 subsection (e)(1) as clauses (A) through (J), respective-
10 ly; and
11 (3) by adding the following new paragraphs at the
12 end of subsection (e):
13 "(2) If bidding on a procurement action subject to para-
14 graph (1) is limited to one person, a particular area of the
15 United States, or both, the Secretary of Commerce shall pro-
16 vide a written description of the individual circumstances and
17 the law or rule which is the basis for the limitation in the
18 notice required to be publicized under paragraph (1).
19 "(3) The Secretary of Commerce shall publish timely
20 notice of all awards of Government procurement contracts
21 set aside for small business concerns under section 15.
22 "(4) The Secretary of Commerce shall investigate and,
23 to the extent practicable, may implement alternative means
24 of notifying small business concerns of procurement actions
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1 subject to paragraph (1), in addition to the daily publication
2 required by paragraph (1).".
3 BIDDING ON LARGE SYSTEMS PROCUREMENTS
4 SEC. 5. Section 8 of the Small Business Act (15 U.S.C.
5 637) is amended by adding the following new subsection at
6 the end thereof:
7 "(f) During the procedure for planning contracts for the
8 procurement of services or of spare parts for large systems,
9 the head of each Federal agency shall take all steps so as not
10 to preclude performance by small and small disadvantaged
11 concerns as prime contractors, where practicable.".
12 GOVERNMENT PROCUREMENT CONTRACT ARBITRATION
13 PANELS
14 SEC. 6. The Administrator shall establish Government
15 procurement contract arbitration panels in such number as
16 the Administrator deems appropriate. A panel shall provide
17 an opportunity for resolving a dispute between a small busi-
18 ness concern and a Federal agency concerning a Government
19 procurement contract which is or may be let to the concern.
20 Use of a panel shall be voluntary. A decision of a panel shall
21 be binding only to the extent that the concern and agency
22 agree that the decision is binding.
23 SMALL BUSINESS PROCUREMENT ADVISORY COMMITTEE
24 SEC. 7. (a) There is established a Small Business Pro-
25 curement Advisory Committee to be composed of thirteen
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1 members appointed by the Administrator. The committee
2 shall advise the Congress and the Administrator on matters
3 relating to Government procurement contracts awarded to,
4 or set aside for, small business concerns.
5 (b) A member of the committee shall, while away from
6 the member's home or regular place of business in the per-
7 formance of services for the committee, be allowed travel ex-
8 penses, including a per diem allowance in lieu of subsistence,
9 in the same amount as a person employed intermittently in
10 the Government service is allowed expenses under section
11 5703(b) of title 5, United States Code.
12 (c) At the close of each calendar year, the committee
13 shall submit a report to the Congress and to the Administra-
14 tor. The report shall describe the activities of the committee
15 during the year and contain recommendations for new Feder-
16 al legislation or agency rules which the committee deter-
17 mines will increase the number of Government procurement
18 contracts awarded to small business concerns.
0
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H 3436 CONGRESSIONAL RECORD - HOUSE June 1, 1989
"(5) 'Director' means the Director of the (Mr. BROOKS asked and was given and disseminating information. GSA
Office of Management and Budget. permission to revise and extend his re- has agreed to assume this responsibili-
"(6) 'Administrator' means the Adminis- marks.) ty
trator of General Services."; and Mr. BROOKS. Mr. Speaker, H.R. Under the bill, OMB will still collect
(2) by striking out the phrase "Director of 2592 transfers selected responsibilities and review the data from the various
the Office of Management and Budget" for the printed Catalog of Federal Do- agenices. It will also retain responsibil-
each time that it appears and inserting in mestic Assistance and a related data ity for the quality of the publication.
lieu thereof "Director"? base from the Director of the Office of Oily the maintenance, compilation.
ended- title 31, United Management and Budget to the Ad- and dissemination of the data are to
II- 6102
Code, is a Section
States SEC. 2.
(1) by striking out "prepare and maintain ministrator of General Services. OMB be transferred to GSA.
information on domestic assistance pro- requested authorization to transfer Since both agencies involved have
grams" in subsection (a) and inserting in these responsibilities to GSA since requested this legislation, and the bill
lieu thereof "collect and review information GSA has experience in and greater re- makes no substantive change in the
on domestic assistance programs and shall sources for assembling and disseminat- product required by Congress, I see no
provide such information to the Administra-
tor ing information. GSA agreed to reason for objection. I urge an "aye"
of General Services"; and assume the responsibilities, provided vote on this bill.
(2) b str out the second in lieu sentence thereof of the personnel and resources were also Mr. Speaker, I yield back the bal-
subsection ( (b) b)a and inserting in
The Catalog of Federal Domestic As- ance
"The Director tthe Administrator incorporates transferred.
suring BROOKS. Mr. Speaker, I have
Mr.
all relevant information received on a regu- sistance is an annually printed volume no further requests for time.
lar basis."; that provides easily accessible, up-to- The SPEAKER pro tempore. The
(3) by striking out "Director" in subsec- date information on the availability of question is on the motion offered by
tion (c) and inserting in lieu thereof "Ad- funds from Federal domestic assist- the gentleman from Texas (Mr.
ministrator"; ance programs for State and local gov- BROOKS) that the House suspend the
(4) by striking out "and" at the end of ernments and private individuals and rules and pass the bill, H.R. 2592.
subsection (c)(1), by striking out the period
at the end of subsection (c)(2) and inserting groups. Identical information is main- The question was taken; and (two-
in lieu thereof "; and", and by adding there- tained in a computerized data base. thirds having voted in favor thereof)
after the following new paragraph: OMB has had responsibility for pro- the rules were suspended and the bill
"(3) shall ensure that the information in duction of the catalog and mainte- was passed.
the computerized system is made current on nance of the computer data base since A motion to reconsider was laid on
a regular basis and that the printed cata- 1977. the table.
logue and supplements thereto contain the H.R. 2592 provides for the transfer
most current data available at the time of to GSA of the responsibilities for
printing.". maintaining and updating the comput- GENERAL LEAVE
SEC. 3. Sections 6103 and 6104 of title 31, erized data base and for preparing and Mr. BROOKS. Mr. Speaker, I ask
United States Code, are each amended by
striking out "Director" each place it appears disseminating the printed catalog. The unanimous consent that all Members
and inserting in lieu thereof "Administra- bill provides, however, that OMB will may have 5 legislative days in which to
tor". retain responsibility for collecting the r vise and extend their remarks on the
SEC. 4. Title 31, United States Code, is data on domestic assistance programs just passed.
amended by striking out section 6105 and in- from the agencies and reviewing th a SPEAKER pro tempore. Is
serting in lieu thereof the following: information collected. In addition, ere objection to the request of the
"6 6105. Oversight responsibility of Director OMB will retain overall responsibility entleman from Texas?
"The Director shall have oversight re- for the quality of both the printed There was no objection.
sponsibility for the exercise of all author'- catalog and the computerized data
ibilities in this chapter not b
ties and respons
ase.
specifically assigned to the Director. I believe these changes are reason- OFFICE OF FEDERAL PROCURE-
"6 6106. Authorization of appropriations able and should be enacted. Therefore, MENT POLICY ACT AMEND-
"After October 1, 1983, there may be ap- I urge the House to pass H.R. 2592. MENTS
prop fated to the Administrator such sums Mr. HORTON. Mr. Speaker, I yield Mr. BROOKS. Mr. Speaker, I move
as may be necessary to carry out the respon- myself such time as I may consume. to suspend the rules and pass the bill
sibilities of this chapter.". (Mr. HORTON asked and was given (H.R. 2293) to amend the Office of
SEC. 5. The analysis of chapter 61 of title permission to revise and extend his re- Federal Procurement Policy Act, and
31, United States Code, is amended by strik- marks.) for other purposes, as amended.
ing out the item relating to section 6105 and Mr. HORTON. Mr. Speaker, I rise in The Clerk read as follows:
inserting in lieu thereof the following: support of H.R. 2592, a bill which
"6105. Oversight responsibility of Director. simply transfers from one executive H.R. 2293
"6106. Authorization of appropriations.". branch agency to another the respon- Be it enacted by the Senate and House of
SEC. 6. The Director of the Office of Man- bran branty for publishing the Catalog of Representatives of the United States of
agement and Budget shall transfer to the Federal Domestic Assistance Programs. America in Congress assembled
Administrator of General Services such per- This very useful publication has SHORT TITLE, REFERENCES
balance pooperpy, records, and unexpended been issued by the Office of Manage- SECTION 1. (a) This Act may be cited as ropr nection tion with any
meet and Budget each year since 1967. the "Office of Federal Procurement Policy
authorities ne a any ioail available
and d responsi- con-
Act Amendments of 1983".
bilities so transferred, as the Director of the State and local governments have (t m used in this Act, the term "the Act"
Office of Management and Budget deter- found the catalog especially helpful in means the Office of Federal Procurement
mines are necessary to carry out the respon- obtaining information about Federal policy Act.
sibilities transferred pursuant to this Act. assistance programs. Many other indi- DECLARATION OF POLICY
The SPEAKER pro tempore. Pursu- viduals have also saved considerable SEC. 2. Section 2 of the Act (41 U.B.C. 401)
ant to the rule, a second is not re- time and money by consulting this
quired on this motion. document. I am sure all Members real- is amended "t to read read as as follows:
OF POLICY
The gentleman from Texas (Mr. ize, for example, how important the 2. It is the policy of the Congress
BROOKS) will be recognized for 20 min- catalog is to the case workers in their "SEC.
the Federal Government shall only ss
utes, and the gentleman from New offices. that at the procurement entishs shall rely on to supply
York (Mr. HORTON) will be recognized OMB has recently suggested that competitive
needed property and services, and that the
for 20 minutes. the actual publication of this docu- system for procurement of property and
The Chair recognizes the gentleman ment could be performed more effi- services by the Federal Government shall-
from Texas (Mr. BROOKS). ciently by the General Services Ad- "(1) promote full and open competition;
Mr. BROOKS. Mr. Speaker, I yield ministration, which has more experi- "(2) establish policies, procedures, and
myself such time as I may consume. ence in and resources for assembling practices which will provide the Govern-
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June 1, 1983 CONGRESSIONAL RECORD - HOUSE H 3435
paid the fair market value for im- could mean the loss of Federal and permit them to approve the transfer.
provements on the vacated lands; the private dollars invested. A leasing ar- The problem arises from general
actual costs of relocation; and an rangement proposed by the school of Office of Management and Budget
amount which, when added to the re- the arts to pay for operating and regulations which EDA interprets as
imbursement for improvements, would maintaining the center is considered il- requiring repayment of the grant if
enable the family to secure a decent legal by EDA. Unless the Congress the school entered into such a leasing
replacement dwelling. Funds originally acts within the next few days, school arrangement.
authorized for these purposes, officials will be forced to close the It is a shame, Mr. Speaker, that we
$31,500,000, have also been depleted, center to avoid repaying the EDA even need to be considering this legis-
largely because of the Inflationary rise grant. lation today. For over 4 months, the
in the cost of housing. Section 2 of the Mr. Speaker, although the State of school of the arts, the State govern-
bill extends the authority for these North Carolina has generously agreed ment, and the citizens of Winston-
appropriations by $15 million annually to contribute over $120,000 annually Salem have been concerned about the
or fiscal years 1983 through 1987. for partial funding of the operation future of this important project, and
As I noted, Mr. Speaker, this legisla- and maintenance of the center, these they have watched as two identical
ion was submitted by the Commission costs have risen substantially. Regret- theater projects have been approved.
s an administration proposal and I do tably, the combination of State fund- However, in the House, the regular
not know of any opposition. ing and ticket revenues is no longer EDA authorization is still in commit-
0 1210 sufficient to cover them. The problem tee, and this is our first opportunity to
can be solved by allowing a private in- provide this important legislation.
Mr. Speaker, I reserve the balance of vestor to take responsibility for the Mr. Speaker, this legislation requires
my time. center through a lease, while preserv- no separate authorization, and it does
Mr. LUJAN. Mr. Speaker, I yield ing it for its intended use by the no more than remove a technicality
myself such time as I may consume. school. This resolution would simply that is preventing an important public
Mr. Speaker, I rise in support of this allow the school to enter the necessary project to operate on a self-sustaining
legislation. It is really a very simple leasing arrangement without endan- basis and contribute to the economic
bill. The gentleman from Arizona (Mr. gering the EDA portion of the project. development which was originally in-
UDALL) has very well outlined the pro- The Stevens Center is located in the tended by the grant. I urge my col-
visions of the bill. The Congress set in heart of downtown Winston-Salem in leagues to support the resolution.*
motion by previous legislation certain a building that had been abandoned, Mr. UDALL. Mr. Speaker, I have no
things that should happen in resolving and was scheduled for demolition. requests for time, and I yield back the
the Hopi-Navajo dispute, and now, of When the school took on the project, balance of my time.
course, it takes money to carry out it was understood that the EDA grant The SPEAKER pro tempore (Mr.
those provisions. would function as only a part of the NEAL). The question is on the motion
I was originally opposed to the origi- much greater financing package of offered by the gentleman from Arizo-
nal legislation, as a matter of fact, but Federal, State, and private investment na (Mr. UDALL) that the House sus-
we have some developments now that designed to create jobs and promote pend the rules and pass the bill, H.R.
make it a lot easier to solve the prob- business development in the down- 1746.
lem. The chairman of the Hopis and town area. The question was taken; and (two-
the chairman of the Navajos are good Mr. Speaker, this expectation has thirds having voted in favor thereof)
friends and they are working toward proven true, and in addition to the $7 the rules were suspended and the bill
getting this resolved amicably, and so million in private donations received was passed.
I would support the legislation. to build the center itself, another $10 A motion to reconsider was laid on
One other thing that is a little million in private investment has been the table.
unique about this piece of legislation: attracted for renovation of the adjoin-
Normally, when you are trying to ing properties. By making use of provi-
solve a problem and you hear every- sions contained in the Economic Re- GENERAL LEAVE
body agrees on now to solve it, usually covery Tax Act of 1981, the school and
it is the parties affected that agree as the investors will secure both the
long as Uncle Sam picks up the tab. needed center operating funds and the
Well, in this case even Uncle Sam has expected subsequent investment in the
agreed that we ought to pass this leg- surrounding area.
islation, as we have administration The school proposes to enter a long-
support for it. term leasing agreement with private
So, Mr. Speaker, I would urge my investors, who will pay all operating
colleagues to support this legislation. and maintenance costs of the center,
? Mr. NEAL. Mr. Speaker, the Stevens and permanently reserve it for the
Center in Winston-Salem, N.C., is an purposes specified in the EDA grant.
innovative project that promises to Similar leases of such facilities have
provide desperately needed economic already occurred in a - number of
stimulus to downtown Winston-Salem. States, including a sale and long-term
The owner of the center, the North lease back of the Pantages Theater for
Carolina School of the Arts, has ren- the Performing Arts in Tacoma,
ovated a historic hotel and theater Wash., and the Shea's Buffalo The-
complex in downtown Winston-Salem ater and Kleinhans Music Hall in Buf-
to provide the focus for a major revi- falo, N.Y.
talization of the area. With a $3.14 Under EDA regulations, this meas-
million grant from the Economic De- ure is required to allow the transfer of
velopment Administration, a charter property partially funded by a Federal
from the State of North Carolina, and grant. When the school originally
$7 million in private donations, the sought approval of the transfer last
school produced an impressive center- year, EDA refused to allow the trans-
piece for further development in the fer without legislative action.
city. Mr. Speaker, I understand that EDA
Unfortunately, Mr. Speaker just as is satisfied that the center would con-
the project is about to make a major tinue to be used for the purposes spec-
contribution to the Winston-Salem ified in the grant, and EDA officials
economy, a problem has arisen that agree that their regulations would
Mr. UDALL. Mr. Speaker, I ask
unanimous consent that all Members
may have 5 legislative days in which to
revise and extend their remarks on the
bill just passed.
The SPEAKER pro tempore. Is
there objection to the request of the
gentleman from Arizona?
There was no objection.
CATALOG OF FEDERAL DOMES-
TIC ASSISTANCE PROGRAMS
Mr. BROOKS. Mr. Speaker, I move
to suspend the rules and pass the bill
(H.R. 2592) to transfer from the Direc-
tor of the Office of Management and
Budget to the Administrator of Gener-
al Services the responsibility for publi-
cation of the catalog of Federal do-
mestic assistance programs, and for
other purposes.
The Clerk read as follows:
H.R.2592
Be it enacted by the Senate and House of
Representatives of the United States of
America in Congress assembled, That chap-
ter 61 of title 31, United States Code, is
amended-
(1) by adding at the end of section 6101
the following new paragraphs:
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CONGRESSIONAL RECORD - HOUSE H 3437
ment property and services fo the requisite
quality, within the time needed, at the
lowest reasonable cost;
"(3) promote the development of simpli-
fied uniform procurement processes;
"(4) promote the participation of small
business concerns;
"(5) support the continuing development
of a professionally competent work force;
"(6) eliminate fraud, and waste in the pro-
curement process;
"(7) eliminate duplication of procurement
activities and redundant requirements
placed on contractor and Federal procure-
ment officials;
"(8) promote fair dealings and equitable
relationships with the privater sector;
"(9) ensure payment is made in a timely
manner and only for value received;
"(10) require the description of needs,
whenever feasible, in terms of functions to
be performed or performance required;
"(11) require, to the extent practicable,
the use of commercial products to meet the
Government's needs;
"(12) ensure the development of procure-
ment policies that will accommodate emer-
gencies and wartime as well as peacetime re-
quirements;
"(13) require that personal services are ob-
tained in accordance with applicable person-
nel procedures and not by contract; and
"(14) otherwise promote procurement effi-
ciency, effectiveness, and economy within
the Government and for those who do busi-
ness with the government.".
AUTHORITY AND FUNCTIONS
SEC. 3. (a) Section 6(a) of the Act (41
U.S.C. 405(a)) is amended by striking out
the matter preceding paragraph (1) and in-
serting in lieu thereof the following:
SEC. 6. (a) The Administrator shall provide
overall direction of procurement policy. To
the extent the Administrator considers ap-
propriate and, with due regard to the pro-
gram activities of the executive agencies,
the Administrator shall prescribe policies,
regulations, procedures, and forms which
shall be in accordance with applicable laws
and shall be followed by executive agen-
cies-".
(b) Section.6(d) of the Act is amended-
(1) by striking out "developing" in para-
graph (2) and inserting in lieu thereof "es-
tablishing"; and
(2) by striking out "for inclusion in the
uniform procurement system to be submit-
ted under section 8(a)," in paragraph (7).
(c) Section 6(e) of the Act is amended by
striking out "the uniform procurement
system" in the first sentence and inserting
in lieu thereof "policies, regulations, proce-
dures, and forms,".
(d) Section 6 of the Act is further amend-
ed-
(1) by striking out subsections (h) and (f)
and inserting in lieu thereof the following:
"(h) The Administrator may, with the
concurrence of the Director of the Office of
Management and Budget, deny or rescind
the promulgation of any final rule or regu-
lation of any executive agency relating to
procurement if the Administrator deter-
mines that such rule or regulation is incon-
sistent with policies set forth in paragraphs
(1) through (14) of section 2 of this Act or is
inconsistent with any policies, regulations,
or procedures issued pursuant to subsection
(a) of this section.":
(2) by redesignating subsection (j) as sub-
section (i).
RESPONSIVENESS TO CONGRESS
SEC. 4. (a) Section 8 of the Act (41 U.S.C.
407) is amended-
(1) by striking out "(1)" in paragraph (1)
of subsection (a) and by striking out para-
graphs (2), (3), and (4) of such subsection;
(2) by striking out "any policy prescribed
under section 8(h)" in subsection (b) and in-
serting in lieu thereof "any policy or regula-
tion prescribed under section 6(a)";
(3) by inserting "or regulation" after "pro-
posed policy" in the matter preceding para-
graph (1) of subsection (b);
(4) by inserting "or regulation" after
"policy" each place it appears in paragraphs
(1), (2), and (3) of such subsection; and
(5) by striking out "any policy" in subsec-
tion (c) and inserting in lieu thereof "any
policy or regulation".
FEDERAL AGENCY RESPONSIBILITIES
SEC. 5. The Act is further amended by in-
serting after section 8 the following new sec-
tion:
"FEDERAL AGENCY RESPONSIBILITIES
SEC. 8A. (a) To further achieve effective,
efficient, and economic administration of
the Federal procurement system, the head
of each executive agency shall-
"(1) increase the use of full and open com-
petition in agency procurements in accord-
ance with subsection (b);
"(2) ensure that agency procurements are
carried out in accordance with all laws, Gov-
ernment-wide policies and regulations, and
good business practices;
"(3) establish clear lines of authority, ac-
countability, and responsibility for procure-
ment decisionmaking, including placing the
procurement function at a sufficiently high
level in the agency to provide-
"(A) direct access to the head of the major
organizational element served; and
"(B) comparative equality with organiza-
tional counterparts;
"(4) designate a senior procurement ex-
ecutive who shall be responsible for man-
agement direction of the procurement
system, including unique agency policies
and regulations and agency system stand-
ards, and who shall serve as the advocate
for competition in accordance with subsec-
tion (c);
"(5) develop and maintain a procurement
management career program to ensure an
adequate professional work force;
"(6) establish and maintain procurement
records in accordance with subsection (d);
and
"(7) prepare and submit annual reports in
accordance with subsection (e).
"(b) Efforts to increase the use of full and
open competition pursuant to subsection
(a)(1) shall include-
"(1) assigning to the senior procurement
executive designated pursuant to subsection
(a)(4) responsibility for removing barriers to
full and open competition and for reporting
to the agency head annually on new initia-
tives required to increase competition and
on barriers to full and open competition
which such executive was unable to remove;
"(2) setting goals and developing plans for
increasing competition on a fiscal year basis;
"(3) using advance procurement planning,
market research, business strategies, and
testing of the marketplace for alternative
products and services;
"(4) describing needs whenever possible in
terms of functions to be performed or per-
formance required;
"(5) precluding from Government solicita-
tions qualification requirements, designs,
processes, or other conditions which restrict
competition and which do not serve legiti-
mate purposes;
"(6) establishing more than one produc-
tion source for new products, whenever fea-
sible;
"(7) excluding the use of patents or pro-
prietary rights as the grounds for using non-
competitive procedures when competitive al-
ternatives exist;
"(8) limiting those circumstances for
which noncompetitive procurement is per-
mitted and requiring written approval at a
level above the contracting officer for such
procurements;
"(9) publicizing notices of proposed pro-
curement actions well in advance of the
time for receipt of bids or proposals and spe-
cifically inviting competition unless non-
competitive procurement has been justified
and approved;
"(10) designing a system of personal and
organizational accountability for competi-
tion, which may include the use of recogni-
tion and awards to motivate program man-
agers, contracting officers, and others in au-
thority to promote competition in procure-
ment programs; and
"(11) emphasizing competition in pro-
grams for procurement training and re-
search.
"(c) The senior procurement executive
designated as the advocate for competition
under subsection (aX4) shall be responsible
for promoting full and open competition in
the procurement of property and services
and shall-
"(1) review the purchasing and contract-
ing activities of the executive agency;
"(2) identify and report to the head of the
executive agency-
"(A) opportunities to achieve full and
open competition on the basis of price and
other significant factors in the purchases
and contracts of the executive agency;
"(B) solicitations and proposed solicita-
tions which include unnecessarily detailed
specifications or unnecessarily restrictive
statements of need which may reduce com-
petition in the procurement activities of the
executive agency; and
"(C) any other condition or action which
has the effect of unnecessarily restricting
competition in the procurement actions of
the executive agency; and
"(3) prepare and transmit to the head of
the executive agency an annual report de-
scribing such executive's activities under
this section.
"(d)(1) Each head of an executive agency
shall establish and maintain for a period of
five years a record, by fiscal year, of all pro-
curements other than small purchases (of
less than an aggregate of $25,000) in such
fiscal year. Such record shall include-
"(A) information identifying the source to
whom the contract was awarded;
"(B) the property or services obtained by
the Government under the procurement;
and
"(C) the total cost of the procurement.
"(2) With respect to any procurement in
which noncompetitive procedures were used
or in which only one bid or proposal was re-
ceived after competitive procedures were
used, the procurement record shall include,
in addition to the information required by
paragraph (1)-
"(A) the reason for the use of noncompeti-
tive procedures; and
"(B) the position of the officers or em-
ployees of the agency who required and ap-
proved the use of noncompetitive proce-
dures in such procurement.
"(3) The information included in the
record established and maintained under
this subsection shall be transmitted to the
Federal Procurement Data Center referred
to in section 6(d)(5) of the Office of Federal
Procurement Policy Act (41 U.S.C.
405(d)(5)).
"(e)(1) Not later than October 31 of each
of 1984, 1985, and 1986, each head of an ex-
ecutive agency shall transmit to the Com-
mittee on Governmental Affairs of the
Senate and the Committee on Government
Operations of the House of Representatives
an annual report including the information
specified in paragraph (2).
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H 3438 CONGRESSIONAL RECORD - HOUSE June 1, 1983
"(2) Each annual report transmitted (6) a statement of the methods to be used ment Policy (OFPP) for another 3
under paragraph (1) shall include- to evaluate the results of the testing, includ- years to continue its efforts in promot-
"(A) a summary of the activities and ac- ing provisions to require the audit of such ing Government-wide procurement
complishments of the senior procurement results by the Inspector General of each reform.
executive of the executive agency during agency in which testing occurs, or in the
the preceding fiscal year; and case of those agencies not having an Inspec- The Committee on Government Op-
"(B) a specific description of all actions tor General, by the General Accounting erations believes that OFPP has
that the head of the executive agency in- Office; and served a worthwhile purpose in pro-
tends to take during the current fiscal year (7) an identification of any provisions con-
to- tained in statutes or regulations that would
"(i) increase competition for contracts prevent the conduct of such testing, unless
with the executive agency on the basis of amended or revised.
price and other significant factors; and PROCUREMENT PROCEDURES SIMPLIFICATION;
"(ii) reduce the number and dollar value
agency after soliciting bids or proposals SEC. 10. (a)(1) Section 302(c)(3) of the Fed-
from, or evaluating bids or proposals with eral Property and Administrative Services
discussions with, only one source.". Act of 1949 (41 U.S.C. 252(c)(3)) Is amended
by striking out "$10,000" and inserting in
EFFECT ON EXISTING REGULATIONS 11 11
l
th
f
SEC. 6. Section 10 of the Act (41 U.S.C.
409) is amended to read as follows:
"EFFECT ON EXISTING REGULATIONS
"SEC. 10. Procurement policies, regula-
tions, procedures, or forms in effect as of
the date of enactment of this Act shall con-
tinue in effect, as modified from time to
time, until repealed, amended, or supersed-
ed by policies, regulations, procedures, or
forms promulgated by the Administrator.".
AUTHORIZATION OF APPROPRIATIONS
SEC. 7. Section 11 of the Act (41 U.S.C.
410) is amended-
(1) by striking out "September 30, 1980"
in the first sentence and inserting in lieu
thereof "September 30, 1984"; and
(2) by striking out "three succeeding fiscal
years" and inserting in lieu thereof "two
succeeding fiscal years".
DELEGATION
SEC. 8. Section 12 of the Act (41 U.S.C.
411) is amended to read as follows:
"DELEGATION
"SEC. 12. (a) The Administrator may dele-
gate, and authorize successive redelegations
of, any authority, function, or power under
this Act (other than his basic authority to
provide overall direction of Federal procure-
ment policy and to prescribe policies and
regulations to carry out that policy), to any
other executive agency with the consent of
such agency or at the direction of the Presi-
dent.
"(b) The Administrator may make and au-
thorize such delegations within the Office
as he determines to be necessary to carry
out the provisions of this Act.".
PLAN TO TEST NEW PROCUREMENT METHODS AND
PROCEDURES
SEC. 9. The Administrator of the Office of
Federal Procurement Policy shall develop
and submit to the Congress, within one year
after the date of enactment of this Act, a
plan for testing innovative procurement
methods and procedures in selected execu-
tive agencies. Such plan must be consistent
with the policies set forth in section 2 of the
Act. The Administrator shall include in the
plan-
(1) a description of the need for and objec-
tives to be achieved in the testing;
(2) a statement of the guidelines and pro-
cedures for the testing and the criteria to be
used in measuring the success of such test-
ing;
(3) an analysis of the potential costs and
benefits which may be derived from such in-
novative procurement methods and proce-
dures;
(4) a list of the appropriate executive
agencies or agency components which will
conduct such testing, which shall be limited
in number;
(5) an identification of the categories and
types of products or services to be included
in such testing;
leu
ereo
$25,000 .
(2) Sections 201(a)(1), 201(c), and 206(a)(4)
of such Act (40 U.S.C. 481(a)(1), 481(c),
487(a)(4)) are each amended by striking out
"subject to policy directives" and inserting
in lieu thereof "subject to regulations".
(3) Section 602(c) of such Act (40 U.S.C.
474) is amended by inserting "except as oth-
erwise provided by the Office of Federal
Procurement Policy Act, and" after "any
law inconsistent herewith,".
(b) Section 3709 of the Revised Statutes
(41 U.S.C. 5) is amended by striking out
"$10,000" and inserting in lieu thereof
"$25,000".
(c) The Act of July 27, 1965 (41 U.S.C. 6a-
1), is amended by striking out "$10,000" in
the third full unnumbered paragraph under
the heading "Office of Architect of the Cap-
itol" and inserting in lieu thereof "$25,000".
(d) Section 9(b) of the Tennessee Valley
Authority Act of 1933 (18 U.S.C. 831h(b)(3))
is amended by striking out "$10,000" and in-
serting in lieu thereof "$25,000".
(e)(1) Section 303(b) of the Act of July 2,
1980 (15 U.S.C. 631b(b)), is amended by
striking out "$10,000" each place it appears
and inserting in lieu thereof "$25,000".
(2) Section 8(d)(2)(A) of the Small Busi-
ness Act (15 U.S.C. 637(d)(2)(A)) is amended
by striking out "$10,000" and inserting in
lieu thereof "$25,000".
(3) Section 8(e) of such Act (15 U.S.C.
637(e)) is amended-
(A) by striking out "defense" in the first
sentence thereof; and
(B) by striking out ", and all civilian pro-
curement actions of $5,000 and above,".
(4) Section 15(j) of such Act (15 U.S.C.
644(j)) is amended by striking out "$10,000"
and inserting in lieu thereof "$25,000".
EFFECTIVE DATE
SEC. 11. The amendments made by this
Act shall take effect on October 1, 1983.
The SPEAKER pro tempore. Pursu-
ant to the rule, a second is not re-
quired on this motion.
The gentleman from Texas (Mr.
BROOKS) will be recognized for 20 min-
utes, and the gentleman from New
York (Mr. HORTON) will be recognized
for 20 minutes.
The Chair recognizes the gentleman
from Texas (Mr. BROOKS).
Mr. BROOKS. Mr. Speaker, I yield
myself such time as I may consume.
moting efficiency and economy in the
Federal procurement process. Over
the years, it has aggressively pursued
its mandate of: First, promoting full
and open competition; second, reduc-
ing the extensive volume of agency
regulations; and third, simplifying the
Government's procurement process.
However, considerably more work
needs to be done to achieve the goals
envisioned by the Commission on Gov-
ernment Procurement and the Con-
gress. Given the increasing resistance
by Federal agencies to OFPP's Gov-
ernment-wide reform efforts, it is clear
that OFPP must be given additional
time and authorities if the Office is to
fulfill its important mandate.
H.R. 2293 provides continued fund-
ing for OFPP for a 3-year period at its
current authorization level of $4 mil-
lion per year. It also restores OFPP's
authority to issue procurement poli-
cies and regulations.
The bill also gives OFPP, with the
concurrence of OMB, the right to re-
scind inconsistent regulations of the
agencies. This authority relates only
to procurement activities of other
agencies and does not affect the statu-
tory authority of other agencies over
social-economic laws implemented
through the procurement process,
such as the Secretary of Labor's au-
thority with regard-to remedial labor
standards, including the Davis-Bacon
Act, the Service Contract Act, the Fair
Labor Standards Act, and others.
Nothing in this bill should be con-
strued as contradicting the opinion
issued by the Attorney General on
March 9, 1978, which reaffirmed the
Secretary of Labor's authority in this
area.
H.R. 2293 also incorporates new sec-
tions on Government-wide policy and
Federal agency procurement responsi-
bilities. For example, the bill declares
that it shall be the policy to use com-
mercial products and functional speci-
fications whenever feasible. Of course,
there are some procurement activities,
such as construction work, when func-
tional specifications are not practical.
The bill also raises the ceiling for
the use of small purchase procedures
for civil agency contracts from $10,000
to $25,000. This provision would estab-
lish a common small purchase ceiling
across the Government and result in
(Mr. BROOKS asked and was given savings because of shortened procure-
permission to revise and extend his re- ment cycles and reduced paperwork.
marks.) Additionally, the bill requires the
Mr. BROOKS. Mr. Speaker, I head of each Federal agency to desig-
present for your consideration from nate a senior procurement executive
the Committee on Government Oper- responsible for overseeing the agency's
ations, H.R. 2293, the Office of Feder- procurement system. It also estab-
al Procurement Policy Act Amend- lishes new criteria for agencies to
ments of 1983. This legislation reauth- follow in promoting full and open
orizes the Office of Federal Procure- competition in their procurements. Fi-
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CONGRESSIONAL RECORD - HOUSE H 3439
nally, the bill requires OFPP to devel-
op a plan to test new and innovative
procurement methods and to report its
plan to Congress within 1 year.
In summary, the bill provides OFPP
with the necessary funding and au-
thority to insure the continuation of
essential Governmentwide procure-
ment reforms. I urge the House to sup-
port this bill.
Mr. HORTON. Mr. Speaker, I yield
myself such time as I may consume.
(Mr. HORTON asked and was given
permission to revise and extend his re-
marks.)
Mr. HORTON. Mr. Speaker, I rise in
support of H.R. 2293, a bill to continue
the Office of Federal Procurement
Policy in the Office of Management
and Budget for 3 more years.
As a member of the Commission on
Government Procurement, which rec-
ommended establishment of this
Office, and as a cosponsor of this bill
and its two predecessors, which cre-
ated and continued it, I have had a
longstanding interest in the work of
OFPP.
This Office is not very big, in either
budget or personnel, but it performs
an extremely important function in
the central management of the Feder-
al Government.
The Constitution vests the President
with the "executive power" and directs
him to "take care that the laws be
faithfully executed." (Article II, sec-
tions 1, 3). The Supreme Court has
ruled that-
The President may properly supervise and
guide (executive officers') construction of
the statutes under which they act in order
to secure that unitary and uniform execu-
tion of the laws which ? ? ? The Constitu-
tion evidently contemplated in vesting gen-
eral executive power in the President alone.
(Myers v. U.S., 272 U.S. 52, 135 (1926)) H.R.
2293.
OFPP, as part of the "M,"
agement side, of OMB, is an important
tool for assisting the President in se-
curing unitary and uniform execution
of laws in the area of procurement.
This office-currently under the excel-
lent direction of Don Sowle-has
forced procurement officials in the
tiveness, and accountability. It has
kept alive the possibility of real
reform In the Federal procurement
system.
My interest, and OFPP's, in this
area is not just academic. If the pro-
curement system can be simplified and
made more uniform, Government
agencies will have to spend less to ad-
minister it, and contractors will have
to spend less to cope with it. That
means savings to the taxpayers in two
ways: Cheaper and better administra-
tion of the laws, and lower prices for
items their Government buys. It also
means that in the long run, products
d ff r d the Govern ment
e e
Mr. Speaker, H.R. 2293 represents a
small investment for potentially great
returns. I urge all Members to support
this bill.
9 Mr. McDADE. Mr. Speaker, I rise in
support of H.R. 2293 to reauthorize
the Office of Federal Procurement
Policy. Since its creation in 1974,
OFPP has played a vital role in im-
proving the procurement process. It
has served as a single contact point for
the business community on procure-
ment issues within the executive
branch.
OFPP has served as a focal point for
the development of procurement
policy, and as the motivating force for
development of the uniform Federal
acquisition regulations (FAR), which
should be issued this year. FAR will
provide, for the first time, a uniform
system of procurement regulations for
all agencies, which will be supplement-
ed only with essential additional
agency provisions.
Reauthorization of OFPP and rein-
statement of its regulatory authority
is supported by the procurement com-
munity and the major business groups,
including the U.S. Chamber of Com-
merce, Professional Services Council,
Computer and Communications Indus-
try Association, and the National
Council of Technical Service Indus-
tries. Small businesses especially need
a focal point for procurement policy. I
am pleased to see that this legislation
includes language requiring small busi-
ness participation in the procurement
process. I commend my colleagues
Messrs. BROOKS and HORTON for this
notable change from previous OFPP
legislation.
Government procurement has a
major effect on the Nation's business-
es, their employees, Government em-
ployees, and on a broader level, all
American taxpayers. The policies ulti-
mately adopted not only affect the ex-
penditure of billions of dollars of tax-
payers' money each year, but also will
influence the Government's procure-
ment practices for years to come.
OFPP's reauthorization is necessary to
provide an efficient and effective pro-
back the balance of my time.
Mr. BROOKS. Mr. Speaker, I have
no further requests for time.
The SPEAKER pro tempore. The
question is on the motion offered by
the gentleman from Texas (Mr.
BROOKS) that the House suspend the
rules and pass the bill, H.R. 2293, as
amended.
The question was taken; and (two-
thirds having voted in favor thereof)
the rules were suspended and the bill,
as amended, was passed.
A motion to reconsider was laid on
the table.
an services o
GENERAL LEAVE
may be still more numerous and
cheaper, because more firms may well Mr. BROOKS. Mr. Speaker, I ask
be willing to compete for Government unanimous consent that all Members
business. may have 5 legislative days in which to
revise and extend their remarks on the
bill just passed.
The SPEAKER pro tempore. Is
there objection to the request of the
gentleman from Texas?
There was no objection.
^ 1220
NATIONAL HISTORICAL PUBLI-
CATIONS AND RECORDS COM-
MISSION AUTHORIZATION
Mr. ENGLISH. Mr. Speaker, I move
to suspend the rules and pass the bill
(H.R. 2196) to extend the authoriza-
tion of appropriations of the National
Historical Publications and Records
Commission for 5 years.
The Clerk read as follows:
H.R.2196
Be it enacted by the Senate and House of
Representatives of the United States of
America in Congress assembled, That sec-
tion 2540(b) of title 44, United States Code
is amended to read as follows:
"(b) There is hereby authorized to be ap-
propriated to the General Services Adminis-
tration for each of the fiscal years ending
on September 30 of 1984, 1985, 1986, 1987,
and 1988, an amount not to exceed
$3,000,000 for the purposes specified in sub-
section (a). Each such appropriation shall
be available until expended when so pro-
vided in appropriation Acts.".
The SPEAKER pro tempore. Pursu-
ant to the rule, a second is not re-
quired on this motion.
The gentleman from Oklahoma (Mr.
ENGLISH) will be recognized for 20 min-
utes, and the gentleman from Ohio
(Mr. KINDNESS) will be recognized for
20 minutes.
The Chair recognizes the gentleman
from Oklahoma (Mr. ENGLISH).
Mr. ENGLISH. Mr. Speaker, I yield
myself such time as I may consume.
(Mr. ENGLISH asked and was given
permission to revise and extend his re-
marks.)
Mr. ENGLISH. Mr. Speaker, it was
in 1934, the year our National Ar-
chives opened, that the Congress es-
tablished a small advisory commission
to promote the collection and publica-
tion of documents important to the
understanding and appreciation of the
history of the United States.
Although the National Historical
Publications and Records Commission
was created in 1934, it had no staff
until 1950. And, it was not until 1964
that Federal grant funds were first au-
thorized. The authorized level of fund-
ing reached its high point in 1974-$4
million.
So, what we are seeking here today,
is continuation of the grant program
at a very reasonable level-25 percent
below what was authorized almost 10
years ago. And, what we are seeking to
reauthorize, is a program that has
proven to be strikingly effective over
the 19 years that Federal funds have
been made available.
Thus far, the grants program of the
National Historical Publication and
Records Commission has funded proj-
ects totaling some $65.5 million. Only
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H 3440
$31 million was appropriated; the re-
maining $34.5 million was from private
sources-attracted by the Federal
funds.
The projects and products supported
by the NHPRC comprise too lengthy
of a list for me to read here today. I
can assure you, however, that funds
have gone to virtually every State, and
to projects pertaining to the records of
one or another of almost everyone's
favorite historical figures or topics.
One thing became very clear at my
subcommittee's hearings on the
NHPRC: termination of the Federal
contribution, will also mean the end of
nearly all private support; as a conse-
quence, projects will go unfinished,
and others, for lack of funds, will
never be started.
Reauthorization will enable the
NHPRC to continue its support of his-
torical publications and records preser-
vation across our Nation,, and will
insure the continued private support
of the wide range of Commission-spon-
sored projects.
Mr. Speaker, recently we debated
the fate of the west front of the Cap-
itol. We heard talk of cost and space;
but, the decision we made was to pre-
serve for future generations, the nobil-
ity and grandeur of this building. It
would be unfortunate, to say the least,
if this, and other buildings deemed
worthy of preservation were con-
demned to be hollow monuments,
devoid of the very essence of our exist-
ence-the recorded history of what
transpired in them.
Reauthorization of the National His-
torical Publications and Records Com-
mission will insure through the preser-
vation and publication of our rich doc-
umentary history, an enduring mark
for future generations of just what
kind of people we were and are.
I urge my colleagues to join me in
supporting reauthorization of the Na-
tional Historical Publications and Re-
cords Commission. To do otherwise
would be tantamount to eating the
seed corn.
Mr. Speaker, I reserve the balance of
my time.
Mr. ENGLISH. Mr. Speaker, I yield
myself such time as I may consume.
(Mr. KINDNESS asked and was
given permission to revise and extend
his remarks.)
Mr. KINDNESS. Mr. Speaker, I rise
to urge my colleagues to vote favor-
ably on H.R. 2196, which would
reauthorize the grant program of the
National Historical Publications and
Records Commission, joining our col-
league, the gentleman from Oklahoma
(Mr. ENGLISH) in this request to the
House.
The NHPRC is a part of the Nation-
al Archives and Records Service which
is responsible for the preservation,
repair and rehabilitation, duplication
and reproduction, description, and ex-
hibition of records or other documen-
tary material deposited into the Na-
tional Archives. I am now in my third
Congress as ranking minority member
CONGRESSIONAL RECORD - HOUSE June 1, 1983
of the Government Information Sub-
committee which has jurisdiction over
the Archives. The subcommittee,
under the leadership of its present
chairman, the gentleman from Okla-
homa and his predecessor, our former
colleague from North Carolina, Rich-
ardson Preyer, has conducted regular
oversight of the National Archives and
we have been consistently concerned
that the truly important historical re-
cords of our Nation may not survive in
the environment in which they are
kept and with the resources granted
by the Congress for their preservation.
We have seen, however, that by fa-
cilitating the publishing of the papers
of important Americans and American
institutions (including the Congress),
the NHPRC is fostering the preserva-
tion of these records. But, to say that
is to get ahead of myself.
The scholars who have put together
these editions that are on the table
here today, we have one here, for ex-
ample, the papers Uf George Catlett
Marshall. General Marshall's papers,
for example, even include photographs
and pictures in that book, and it is
easy for anyone to read. Others in-
clude the papers of George Washing-
ton and Thomas Jefferson and Ulysees
Grant and other great figures of our
Nation's history. But those who have
put together these editions have
searched for documents around the
world to make sure that these collec-
tions are as complete as humanly pos-
sible, For example, in testimony re-
ceived by the subcommittee in 1981,
we learned that two letters written by
Benjamin Franklin were located in the
Karl Marx University in Dresden and
that the Otoe Indians of Oklahoma
possess a letter written to the tribe by
Thomas Jefferson.
So, there is more to the job of pre-
serving our Nation's history than
building a warehouse in which to store
just that which is in the custody of
the U.S. Government.
In our oversight hearings, we have
seen how the limited grant funds have
seen used over the years to preserve
our history and have concluded that
the funds have been used wisely by
the Commission. Accordingly, we have
again recommended to the Congress
that the Commission be authorized to
make such grants to continue the
partnership of the Federal Govern-
ment and private sources of funding
which has been carrying on the work
of preserving our Nation's history.
And, to those who have suggested
that the private sector, foundations,
universities, and the like, fund these
projects in their entirety, I would say
that that is as unrealistic as it is inap-
proriate. Certainly, it is with a bit of
self-interest in mind that private foun-
dations have told historians that it is
the responsibility of the Government
to assist in the preservationof its his-
tory. Nevertheless, I concur in that
judgment. It is for the benefit of all
our citizens that we preserve our histo-
ry; it is one of the things that makes
us different from some other societies
who attempt to erase the memory of
previous leaders from the history
taught to their children.
Mr. Speaker, I would ask whether
the gentleman from Oklahoma has
any requests for time on that side, and
I reserve the balance of my time for
the moment.
Mr. ENGLISH. Mr. Speaker, I yield
such time as he may consume to the
gentleman from Texas (Mr. BROOKS),
the chairman of the Committee on
Government Operations.
(Mr. BROOKS asked and was given
permission to revise and extend his re-
marks.)
Mr. BROOKS. Mr. Speaker, I rise in
support of H.R. 2196, which would
reauthorize the National Historical
Publications and Records Commission
for the new 5 years at an authoriza-
tion level of $3 million annually. Con-
gress established the NHPRC in 1934
to promote the collection and publica-
tion of the papers of important figures
in American history. Until 1964, the
Commission's principal role was one of
encouraging governmental and private
organizations in the collection and
preservation of historical source mate-
rials. In that year, with the enactment
of Public Law 88-383, which I spon-
sored, the Commission added the re-
sponsibility for compiling and preserv-
ing documentary source materials.
That law authorized the first appro-
priations for grants to public and pri-
vate groups for the preservation of
historical documentary source
material.
The NHPRC in its present form
dates back to 1974 when Congress en-
acted Public Law 93-536, which I also
sponsored. This law redesignated the
Commission under its present title and
amended the Commission's charter to
bring it into preservation, as well as
publication, of historical papers.
Mr. Speaker, the Commission has
been involved in a large number of val-
uable publication projects and has as-
sisted in the vital work of conserving
and preserving historical documents
ranging from municipal records to
newspaper photo collections. The $3
million authorization level set by H.R.
2196 should allow the NHPRC to fund
the projects which it determines to be
of highest national significance. I urge
adoption of H.R. 2196.
^ 1230
Mr. 'KINDNESS. Mr. Speaker, I
yield such time as he may consume to
the ranking member of the Committee
on Government Operations, the gen-
tleman from New York (Mr. HORTON).
(Mr. HORTON asked and was given
permission to revise and extend his re-
marks.)
Mr. HORTON. Mr. Speaker, I rise in
strong support of H.R. 2196, to reauth-
orize the grants program of the Na-
tional Historical Publications and Re-
cords Commission.
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98TH CONGRESS
1ST SESSION
To authorize appropriations for the Office of Federal Procurement Policy for an
additional five fiscal years.
IN THE SENATE OF THE UNITED STATES
APRIL 7 (legislative day, APRIL 5), 1983
Mr. COHEN (for himself and Mr. ROTH) introduced the following bill; which was
read twice and referred to the Committee on Governmental Affairs
A BILL
To authorize appropriations for the Office of Federal
Procurement Policy for an additional five fiscal years.
1 Be it enacted by the Senate and House of Representa-
2 tines of the United States of America in Congress assembled,
3 That the first sentence of section 11 of the Office of Federal
4 Procurement Policy Act (41 U.S.C. 410) is amended by
5 striking out "three succeeding fiscal years" and inserting in
6 lieu thereof "eight succeeding fiscal years".
0
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S 4282 CONGRESSIONAL RECORD - SENATE
mum penalty for each violation is $100,000
and each day of a continuing violation is to
be considered a separate offense. The
amount of the penalty to be assessed is to
be determined by the Secretary of Trans-
portation, taking into account the'nature,
circumstances, extent, and gravity of the act
committed, and with respect to the violator,
the degree of culpability, history of prior of-
fenses, and any other matters deemed ap-
propriate. The latter half of Section 7 sets
out the judicial review procedures available
to the violator and the enforcement proce-
dures to be used in collecting the penalty as-
sessed.
Section 8. Regulations.-Section 8 author-
izes the Secretary of Transportation to issue
such regulations as may be necessary to
carry out the provisions of the Act.
Section 9. Effective Date.-Section 9 es-
tablishes that the effective date is the date
of enactment of the Act.
By Mr. COHEN (for himself and
Government Management, I have had
the opportunity to work with the
OFPP on numerous contracting issues.
In 1979 and 1980, the Oversight Sub-
committee held a series of hearings on
"hurry-up" spending in which we
found that agencies rush to spend all
their available funds at the end of the
fiscal year for fear of not receiving full
funding the next year. As followup,
the Oversight Subcommittee worked
with the Office of Federal Procure-
ment Policy on a policy letter which
required all Federal agencies to devel-
op procurement agendas in advance of
each fiscal year.
In 1981, the Oversight Subcommit-
tee examined the adequacy of Federal
debarment and suspension procedures,
which are used to protect the Govern-
ment from doing business with fraudu-
lent or otherwise irresponsible con-
tractors. The Oversight Subcommittee
found problems, such as inaction by
some agencies in debarring or suspend-
ing contractors known to be fraudu-
lent as well as failure of many agen-
cies to honor the debarments and sus-
pensions of the initiating agency, and
worked with the OFPP to develop
new, Government-wide procedures.
The improved standards for debar-
ment and suspension were included in
a June 1982 OFPP policy letter.
Most recently, the OFPP assisted
the Oversight Subcommittee in draft-
ing S. 338, the Competition in Con-
tracting Act, which is designed to in-
crease the use of competitive contract-
ing and restrict noncompetitive-,sole-
source-contracting to only those cir-
cumstances when it is truly necessary.
The OFPP was helpful in providing
the needed expertise and technical as-
sistance. Without the OFPP's help, it
is unlikely that the Oversight Subcom-
mittee's efforts would have been as ef-
fective.
The OFPP has exercised leadership
in many other procurement activities,
not the least of which is overseeing
the implementation of the Executive
Order 12352 of March 17, 1982, on
Federal procurement reforms. The
OFPP is responsible for providing
leadership, policy guidance and coordi-
nation necessary to facilitate agency
implementation. This procurement
reform effort has been selected by the
administration as one of the eight
major initiatives which are being pur-
cure Policy for an additional five
fiscal years; to the Committee on Gov-
ernmental Affairs.
OFFICE OF FEDERAL PROCURBIENT
AUTHORIZATION ACT
? Mr. COHEN. Mr. President, today I
am introducing legislation to reauthor-
ize the Office of Federal Procurement
Policy (OFPP) for an additional 5
years. The OFPP, which was estab-
lished in 1974 to provide overall direc-
tion and leadership in Federal pro-
curement policymaking, serves as the
critical link between the Congress and
the executive branch in the continuing
effort to improve the Federal procure-
ment process. This legislation, cospon.
sored by Senator Rorx, will maintain
that link.
The Commission on Government
Procurement recommended in its 1972
report to Congress that a central
Office of Federal Procurement Policy
was urgently needed. Effective man-
agement of the procurement process,
according to the Commission, required
a high degree of direction and control
of basic policy. Prior to the creation of
the OFPP, there was no central office
in the executive branch prepared to
provide the Congress with recommen-
dations for improving the procure-
ment process, and there was no arbiter
to reconcile agency disagreements on
procurement policy.
For these reasons, the Commission
recommended that an OFPP-statu-
torily based with the directive, rather
than advisory, authority-be estab-
lished to fill this void. Congress imple-
mented the Commission's recommen-
dation-in 1974 by creating the OFPP,
high in competence and small in size,
within the Office of Management and
Budget to provide the direction
needed in procurement policy. Within
this authority, however, the OFPP is
statutorily prohibited from interfering
in the daily management of an agen-
cy's procurement operation, which
properly is the responsibility of an
agency's procurement officials.
As chairman of the Governmental
Affairs Subcommittee on Oversight of
sued under the "Reform 88" program
to improve resource management.
Other major OFPP projects include
the continuing development of the
Federal acquisition regulations and
the revision of OMB circulars A-76 on
contracting out and A-109 on major
systems acquisition.
Any action on our part short of
reauthorization would surely threaten
the continuation of these projects and
undermine the administration's pro-
curement reform efforts. I recognize
the value of a strong OFPP-inde-
pendent of any agency having procure-
ment responsibility, empowered with
directive rather than merely advisory
April 7, 1983
authority, responsive to Congress, and
consisting of a small, highly compe-
tent cadre of seasoned procurement
experts-and have joined with mem-
bers of the contracting community,
the American Bar Association, the
chamber of commerce, and others, in
supporting reauthorization.
While I believe that a central pro-
curement policy office is still needed
in the executive branch, with all the
major attributes envisioned by the
Commission, there is some question as
to what specific authority the OFPP
should have, what functions it should
serve, and where it should be located.
The Oversight of Government Man-
agement Subcommittee has scheduled
a hearing on the reauthorization of
the OFPP to consider these and other
issues on April 27. The legislation I
have introduced today along with Sen-
ator RoTh represents the committee's
starting point on reauthorization and
will serve as the basis for discussion
during the hearings
y Mr. TSONGAS:
banking among the New England
States and to require a report to the
Congress concerning the use of the au-
thority conferred by this act; to the
Committee on Banking. Housing, and
Urban Affairs.
NEW ENGLAND INTERSTATE BANKING ACT OF
1983
? Mr. TSONGAS. Mr. President,
today I am introducing the New Eng-
land Interstate Banking Act of 1983.
Companion legislation is being intro-
duced in the House by my colleague
from Massachusetts, BARNES FRANK, a
member of the House Committee on
Banking, Finance and Urban Affairs.
In December of last year, the Com-
monwealth of Massachusetts enacted
legislation authorizing interstate
banking between Massachusetts and
other New England States which
choose to enact similar reciprocal leg-
islation. In passing this legislation,
Massachusetts became the second
State in New England, Joining the
State of Maine, to permit interstate
banking operations in a reciprocal
bases. The legislatures of other New
England States are currently consider-
ing similar proposals.
The purpose of this legislation is to
place a Federal imprimatur on New
England interstate banking laws. It
makes changes in Federal law to ac-
knowledge such changes in State law.
and directs Federal regulators to give
effect to these State laws in consider-
ing applications for interstate branch-
Ing, merging, or acquisitions within
New England.
These changes in State law by New
England legislatures have been occa-
sioned by rapid changes in the finan-
cial services industry. New communica-
tions capabilities and marketing ar-
rangements have produced a variety of
financial services which are now of-
fered on a national basis. These in-
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April 7, 1985 CONGRESSIONAL RECORD - SENATE
to be supported by substantial evidence, as
provided in section 706(2) of title 5, United
States Code (5 U.S.C. 706(2)).
(c) If any person fails to pay an assess-
ment of a civil penalty after it has become a
final and unappealable order, or after the
appropriate court has entered final judg-
ment in favor of the Secretary, the Secre-
tary shall refer the matter to the Attorney
General of the United States, who shall re-
cover the amount assessed in any appropri-
ate district court of the United States. In
such action, the validity and appropriate-
ness of the final order imposing the civil
penalty shall not be subject to review.
REGULATIONS
SEC. 8. The Secretary of Transportation
may issue such regulations as are necessary
to carry out this Act.
EFFECTIVE DATE
SEC. 9. This Act shall become effective
upon enactment.
COMPETITIVE SHIPPING AND SHIPBUILDING
ACT or 1983.
SSCTION-BY-SECTION ANALYSIS
Section 1. This section states that the Act
may be cited as the "Competitive Shipping
and Shipbuilding Act of 1983".
Section 2. Findings, Purposes, and
Policy.-In section 2(a) the Congress finds
and declares that: the United States is de-
pendent upon foreign-flag bulk shipping
services; U.S.-flag vessels now carry less
than four percent of its bulk import and
export commodities; virtually all bulk im-
ports are critical to American industrial pro-
duction or maintenance of energy supplies;
bulk exports contribute substantially to the
U.S. balance of trade, provide major sources
of employment, and contribute to the food
supply on a worldwide basis; the United
States cannot rely upon foreign sources to
provide transportation services in times of
national emergency; and, the United States
is continuing to lose the major portion of
revenues generated by the carriage of its
bulk imports and exports in international
trade.
In Section 2(b) the Congress declares that
the purposes and policy of the Act are to:
take immediate and positive steps so as to
transport at least 20 percent of U.S. bulk
imports and exports in U.S.-flag ships
within 15 years; make it possible for import-
ers and exporters to be able to ship their
goods in U.S.-flag ships in a commercially
practicable manlier; and, encourage the con-
struction of bulk cargo carrying merchant
vessels in U.S. shipyards.
Section 3. Definitions.-Section 3(a) de-
fines "United States-flag ship" as a bulk
cargo carrying ship having U.S. citizen
crews and built in, and documented under,
the laws of the United States. In addition,
no more than 50 percent of the total materi-
als and components of the vessel can be at-
tributed to foreign manufacture.
Section 3(b) defines the term "bulk cargo"
as cargo transported in bulk without mark
or count by a vessel engaged in the foreign
commerce of the United States.
Section 3(c) defines "Secretary" as used
throughout the Act to mean the Secretary
of Transportation.
Section 4. Carriage of Bulk Cargoes on
United States-flag Ships.-Section 4(a) re-
quires that in the calendar year following
the year of enactment of this Act, at least
five percent of all bulk cargoes moved by
water and imported to or exported from the
United States must be carried on U.S.-flag
ships. In each calendar year following, an
additional one percent of the bulk cargoes
are to be shipped in U.S.-flag vessels until a
minimum of 20 percent is reached. Thus. in
15 years at least 20 percent of all U.S. bulk
imports and exports will be transported on
U.S.-flag ships.
Section 4(b) places the obligation of com-
plying with the requirements of the Act on
the importer and exporter of bulk cargoes.
In addition, this section makes it clear that
an importer or exporter cannot avoid the re-
quirements of the Act by altering the terms
of sale of the bulk cargoes.
Section 4(c) specifies that any importer or
exporter who is subject to this Act, shall be
granted credit on a ton for ton basis, for em-
ploying the use of U.S.-flag ships in the
transportation of bulk cargoes between for-
eign ports.
Section 4(d) is a waiver provision whereby
the Secretary of Transportation may relieve
any importer, exporter, shipper, or receiver,
from the requirements of the Act when it is
determined that United States-flag ships
are not available or are not available within
guideline rates as set forth in Section 5. In
determining the extent of any relief to be
granted, the Secretary is required to take
into consideration the timeliness of the
waiver application, the number of vessels on
order, under construction, coming off-hire
and any other factors he deems relevant.
However, no relief can be granted for a
period beyond the calendar year in which
the application is made. In addition, no
relief will be granted where the Secretary
determines that cargo is being diverted to
avoid compliance with the Act.
Section 4(e) makes it clear that when bulk
cargoes are expressed as a percentage, that
percentage shall be measured by adding the
tonnage of all bulk cargoes shipped by each
importer or exporter in the foreign com-
merce of the United States. In other words.
in determining whether an importer or ex-
porter has carried the required percentage
of cargo on U.S.-flag ships in any given year,
the Secretary of Transportation shall look
at the total tonnage of all bulk cargoes
shipped by that importer or exporter in
that year.
Section 5. Establishment of Guideline
Rates.-Section 5(a) requires the Secretary
of Transportation to publish guideline rates
for the carriage of bulk cargoes on U.S.-flag
ships. In establishing the guideline rates,
the Secretary must assure that the rate
takes into account the following objectives:
(1) the development and maintenance of a
modern, efficient United States flag bulk
cargo fleet;
(2) the availability of such a fleet to meet
U.S. strategic requirements in time of inter-
national crisis;
(3) the maintenance of international mar-
kets for United States bulk exports and de-
velopment of new market opportunities: and
(4) the continued access by American in-
dustry to essential bulk imports.
Section 5(b) requires the Secretary in es-
tablishing the guideline rates, to estimate
the current cost, including reasonable
profit, of operating various classes of United
States-flag ships in the foreign bulk trades
of the United States and the current cost,
including reasonable profit, of constructing
various classes of United States-flag ships in
U.S. shipyards. These cost estimates must
be established within six months after the
Act is signed Into law. These estimated costs
must be revised annually in order to reflect
the current year's inflation rate and such
other factors as the Secretary deems appro-
priate.
Two years after the commencement of the
required percentage of cargo to be trans-
ported on U.S.-flag ships becomes effective,
the cost of operating a United States-flag
vessel in the foreign commerce of the
United States and the cost of constructing a
bulk cargo carrying vessel in a U.S. shipyard
S 42&1
must be at least 15 percent below the Secre-
tary's initial cost estimates. These cost esti-
mates, as adjusted for inflation each year,
will then be used as the primary basis for es-
tablishing the guideline rates.
Section 5(c) requires that the guideline
rates be established individually to reflect
the specific type of cargo movement for ex-
ample, the type of vessel, commodity and
voyage). These guideline rates will be based
upon internationally accepted charter
market rate quotations (for example,
London Brokers Panel) which will be adjust-
ed upward or downward to reflect the Secre-
tary's estimated costs, as outlined in Section
5(b). If an international market rate quota-
tion is unavailable for a specific type of
cargo movement, the Secretary is directed
to utilize the best available information in
determining an appropriate rate.
The Secretary must issue regulations,
which explain the particular quotations or
other information he will rely upon, and the
methodology and critieria he will use in ad-
justing the charter market rates. The Secre-
tary must review and adjust the guideline
rates on at least an annual basis. Any ad-
justments to these rates may not reflect
costs greater than the adjusted costs set
forth in Section 5(b). These guideline rates
shall be the maximum rates that a U.S.-flag
ship operator may charge for the transpor-
tation of bulk cargoes subject to the Act.
Section 5(d) states that in the first calen-
dar year following enactment of this Act.
the Secretary, in consultation with the advi-
sory committee established in Section 5(e),
shall establish and publish interim guideline
rates. These interim rates shall be based
upon a fair and reasonable rate for the
transportation of bulk cargoes on existing
United States-flag bulk cargo carrying ves-
sels. These interim rates shall be separately
established for specific charters, voyages,
bulk commodities and trades concerned,
taking into account the objectives of this
Act, and any other factors the Secretary
deems appropriate. These interim rates
shall be the maximum rates which may be
charged for the charter of United States-
flag ships until guideline rates have been es-
tablished and published pursuant to Section
5(b) and (c).
Section 5(e) requires the Secretary of
Transportation to appoint and consult with
an advisory committee to advise and assist
him in the establishment and review of
United States-flag ship operating and con-
struction costs, guideline rates and regula-
tions. The advisory panel shall be composed
of importers, exporters, charter brokers,
United States-flag ship operators, shipbuild-
ers, labor unions, and management and
labor organizations.
Section 6. Reporting of Amount Shipped
on United States-flag Ships.-Section 6(a)
sets forth the reporting requirements for
determining whether or not the importer or
exporter has met the required percentage of
trade reserved for U.S.-flag ships. The provi-
sions and reporting requirements of the Act
are applicable to any U.S. business entity
that imports or exports bulk cargoes in the
foreign commerce of the United States, and
whose volume of business exceeds $1 million
annually.
Section 6(b) requires that any importer,
exporter, shipper, or receiver, who fails to
carry his required percentage of cargo on
U.S.-flag ships, shall, in the next year, use
exclusively U.S.-flag ships to carry all ship-
ments until he has recouped the deficiency
from the preceding year.
Section 7. Civil Penalty Provision.-Sec-
tion 7 specifies the Civil penalty to be im-
posed on any importer or exporter who vio-
lates any provision of the Act. The maxi-
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5 APR 1983
98TH CONGRESS H. R. 2293
1ST SESSION
To amend the Office of Federal Procurement Policy Act, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 23, 1983
Mr. BROOKS (for himself and Mr. HORTON) introduced the following bill; which
was referred to the Committee on Government Operations
A BILL
To amend the Office of Federal Procurement Policy Act, and
for other purposes.
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; REFERENCES
4 SECTION 1. (a) This Act may be cited as the "Office of
5 Federal Procurement Policy Act Amendments of 1983".
6 (b) As used in this Act, the term "the Act" means the
7 Office of Federal Procurement Policy Act.
8 DECLARATION OF POLICY
9 SEC. 2. Section 2 of the Act (41 U.S.C. 401) is
10 amended to read as follows:
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2
1 "DECLARATION OF POLICY
2 "SEC. 2. It is the policy of the Congress that the Feder-
3 al Government shall rely on competitive procurement prac-
4 tices to supply needed property and services, and that the
5 system for procurement of property and services by the Fed-
6 eral Government shall-
7 "(1) promote full and open competition;
8 "(2) establish policies, procedures, and practices
9 which will provide the Government property and serv-
10 ices of the requisite quality, within the time needed, at
11 the lowest reasonable cost;
12 "(3) promote the development of simplified uni-
13 form procurement processes;
14 "(4) promote the participation of small business
15 concerns;
16 "(5) support the continuing development of a pro-
17 fessionally competent work force;
18 "(6) eliminate fraud and waste in the procurement
19 process;
20 "(7) eliminate duplication of procurement activi-
21 ties and redundant requirements placed on contractor
22 and Federal procurement officials;
23 "(8) promote fair dealings and equitable relation-
24 ships with the private sector;
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1 "(9) ensure payment is made in a timely manner
2 and only for value received;
"(10) require the description of needs, whenever
4 feasible, in terms of functions to be performed or per-
5 formance required;
6 "(11) require, to the extent practicable, the use of
7 commercial products to meet the Government's needs;
8 "(12) ensure the development of procurement poli-
9 cies that will accommodate emergencies and wartime
10 as well as peacetime requirements;
11 "(13) require that personal services are obtained
12 in accordance with applicable personnel procedures and
13 not by contract; and
14 "(14) otherwise promote procurement efficiency,
15 effectiveness, and economy within the Government and
16 for those who do business with the Government.".
17 AUTHORITY AND FUNCTIONS
18 SEC. 3. (a)
19
20
21 "SEC. 6. (a) The Administrator shall provide overall di-
22 rection of procurement policy. To the extent the Administra-
23 tor considers appropriate and, with due regard to the pro-
24 gram activities of the executive agencies, the Administrator
25 shall prescribe policies, regulations, procedures, and forms
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1P V
4
1 which shall be in accordance with applicable laws and shall
2 be followed by executive agencies-".
3 (b) Section 6(d) of the Act is amended-
4 (1) by striking out "developing" in paragraph
5 (2) and inserting in lieu thereof "establishing";
6 and
7 (2) by striking out "for inclusion in the uni-
8 form procurement system to be submitted under
9 section 8(a)," in paragraph (7).
10 (c) Section 6(e) of the Act is amended by striking out
11 "the uniform procurement system" in the first sentence and
12 inserting in lieu thereof "policies, regulations, procedures,
13 and forms,".
14
(d) Section 6 of the Act is further amended-
15
(1) by striking out subsections (h) and (i) and in-
16
serting in lieu thereof the following:
17
)T,~heAdmuu?s~tratorm'aywit:
Brice of
18L t~heDueG?rof0he.0ffice*~MMariagement;and :Budge"t den'
19 or esc dot`he promu~lgat one of `any final ~ulc~or, rexafet en,, of*
20 y eg cu 'v~~e ag'e, cry nrelating t~o procur~ementOif4 he Director
21 determines that such rule or regulation is ~ncons_isterifwth
22 of,ides psetl"oith paragraphs (1) tluou1.4)of section 2
23 of this Act or is inconsistent with any policies, regulations, or
24 procedures issued pursuant to subsection (a) of this section.";
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5
1 (2) by redesignating subsection (j) as subsection
2 (i).
3 RESPONSIVENESS TO CONGRESS
4 SEC. 4. (a) Section 8 of the Act (41 U.S.C. 407) is
5 amended-
6 (1) by striking out "(1)" in paragraph (1) of sub-
7 section (a) and by striking out paragraphs (2), (3), and
8 (4) of such subsection;
9 (2) by striking out "any policy prescribed under
10 section 6(h)" in subsection (b) and inserting in lieu
11 thereof "any major policy or regulation prescribed
12 under section 6(a)";
13 (3) by inserting "or regulation" after "proposed
14 policy" in the matter preceding paragraph (1) of sub-
15 section (b);
16 (4) by inserting "or regulation" after "policy"
17 each place it appears in paragraphs (1), (2), and (3) of
1$ such subsection; and
19 (5) by striking out "any policy" in subsection (c)
20 and inserting in lieu thereof "any major policy or
21 regulation".
22 FEDERAL AGENCY RESPONSIBILITIES
23 SEC. 5. The Act is further amended by inserting after
24 section 8 the following new section:
HR 2293 IH
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"FEDERAL AGENCY RESPONSIBILITIES
2 "SEC. 8A. To further achieve effective, efficient, and
3 economic administration of the Federal procurement system,
4 the head of each executive agency shall-
5 "(1) develop plans to increase the use of full and
6 open competition in agency procurements;
7 "(2) ensure that agency procurements are carried
8 out in accordance with all laws, Governmentwide poli-
9 cies and regulations, and good business practices;
10 "(3) establish clear lines of authority, accountabil-
11 ity, and responsibility for procurement decisionmaking,
12 including placing the procurement function at a suffi-
13 ciently high level in the agency to provide-
14 "(A) direct access to the head of the major
15 organizational element served; and
16 "(B) comparative equality with organiza-
17 tional counterparts;
18 "(4) designate an agency official or officials who
19 shall be responsible for management direction of the
20 procurement system, including unique agency policies
21 and regulations and agency system standards;
22 "(5) develop and maintain a procurement manage-
23 ment career program to ensure an adequate profes-
24 sional work force.".
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1 EFFECT ON EXISTING REGULATIONS
2 SEC. 6. Section 10 of the Act (41 U.S.C. 409) is
3 amended to read as follows:
4 "EFFECT ON EXISTING REGULATIONS
5 "SEC. 10. Procurement policies, regulations, proce-
6 dures, or forms in effect as of the date of enactment of this
7 Act shall continue in effect, as modified from time to time,
8 until repealed, amended, or superseded by policies, regula-
9 tions, procedures, or forms promulgated by the Administra-
10 tor.".
11 AUTHORIZATION OF APPROPRIATIONS
12 SEC. 7. Section 11 of the Act (41 U.S.C. 410) is
13 amended-
14 (1) by striking out "September 30, 1980" in the
15 first sentence and inserting in lieu thereof "September
16 30, 1984"; and
17 (2) by striking out "three succeeding fiscal years"
18 and inserting in lieu thereof "two succeeding fiscal
19 years".
20 DELEGATION
21 SEC. 8. Section 12 of the Act (41 U.S.C. 411) is
22 amended to read as follows:
23 "DELEGATION
24 "SEC. 12. (a) The Administrator may delegate, and au-
25 thorize successive redelegations of, any authority, function,
HR 2293 iH
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1 or power under this Act (other than his basic authority to
2 provide overall direction of Federal procurement policy and
3 to prescribe policies and regulations to carry out that policy),
4 to any other executive agency with the consent of such
5 agency or at the direction of the President.
6 "(b) The Administrator may make and authorize such
7 delegations within the Office as he determines to be neces-
8 sary to carry out the provisions of this Act.".
9 EFFECTIVE DATE
10 SEC. 9. The amendments made by this Act shall take
11 effect on October 1, 1983.
0
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(b)(4)
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98TH CONGRESS 1 HOUSE OF REPRESENTATIVES I REPORT
1st Session J No. 98-146
OFFICE OF FEDERAL PROCUREMENT POLICY ACT
AMENDMENTS
MAY 16, 1983.-Committed to the Committee of the Whole House on the State of the
Union and ordered to be printed
Mr. BROOKS, from the Committee on Government Operations,
submitted the following
REPORT
[To accompany H.R. 2293]
[Including Cost Estimate of the Congressional Budget Office]
The Committee on Government Operations, to whom was re-
ferred the bill (H.R. 2293) to amend the Office of Federal Procure-
ment Policy Act, and for other purposes, having considered the
same, report favorably thereon with an amendment and recom-
mend that the bill as amended do pass.
The amendment strikes out all after the enacting clause of the
bill and inserts a new text which appears in italic type in the re-
ported bill.
SUMMARY AND PURPOSE
H.R. 2293 authorizes continued funding for the Office of Federal
Procurement Policy (OFPP) for a three-year period, effective Octo-
ber 1, 1983. Following the recommendations of the Commission on
Government Procurement, Congress established OFPP as an inde-
pendent operation of the Office of Management and Budget (OMB)
by the enactment of P.L. 93-400 in 1974. It was evident to both the
Congress and the Commission that a central, high-level office was
needed to provide direction and leadership in the reform of the gov-
ernment's procurement system.
The Committee believes that OFPP has served a worthwhile pur-
pose in promoting efficiency and economy in the Federal procure-
ment process. Over the years, it has aggressively pursued its man-
date of (1) promoting full and open competition, (2) reducing the ex-
tensive volume of agency regulations, and (3) simplifying the gov-
ernment's procurement process. While OFPP has gotten side-
20-583
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tracked from its basic mission on occasion, its overall performance
has been satisfactory and in the best interests of the government as
a whole. However, considerably more work needs to be done to
achieve the goals envisioned by the Procurement Commission and
the Congress. Given the increasing resistance by Federal agencies
to OFPP's reform efforts, it is clear that OFPP must be given addi-
tional time and authorities if the Office is to fulfill its important
mandate.
H.R. 2293 achieves these objectives by reauthorizing OFPP for a
three-year period at its 1980 authorization level of $4 million per
year and restores OFPP's authority to issue procurement policies
and regulations, which had been removed in OFPP's 1979 Authori-
zation Act (P.L. 96-83). The bill also incorporates new sections on
government-wide policy and Federal agency procurement responsi-
bilities and removes the requirement that OFPP develop a proposal
for a uniform procurement system since this task has already been
completed. Further, it requires the Administrator of OFPP to
submit to Congress, within one year after the date of enactment, a
plan for testing innovative procurement methods and procedures in
selected executive agencies.
In addition, H.R. 2293 raises the ceiling for the use of small pur-
chase procedures for civil agency contracts from $10,000 to $25,000.
This provision would establish a common small purchase ceiling
across the government and result in savings because of shortened
procurement cycles and reduced paperwork.
Finally, the bill requires the head of each Federal agency to des-
ignate a senior procurement executive responsible for overseeing
the agency's procurement system. It also establishes new criteria
for agencies to follow in promoting full and open competition in
their procurements.
COMMITTEE ACTION AND VOTE
H.R. 2293 was introduced by Chairman Jack Brooks and Con-
gressman Frank Horton. The Committee on Government Oper-
ations ordered the bill reported with an amendment on May 3,
1983, by a unanimous voice vote with a quorum present.
HEARINGS
Hearings on H.R. 2293 were held by the Subcommittee on Legis-
lation and National Security on April 7, 1983. Testimony was re-
ceived from representatives of the General Accounting Office, the
Office of Management and Budget, the General Services Adminis-
tration, the Computer and Communications Industry Association,
the U.S. Chamber of Commerce, the National Council of Technical
Service Industries, the National Academy of Public Administra-
tion, the American Bar Association, and the Professional Services
Council.
EXPLANATION OF AMENDMENT
Inasmuch as all after the enacting clause of H.R. 2293 was strick-
en and all language incorporated into one amendment, this report
constitutes an explanation of the amendment.
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DISCUSSION
BACKGROUND
In the late 1960's, the Government Operations Committee con-
ducted extensive hearings on Federal procurement. These hearings
revealed that (1) the procurement process is overly complex, (2)
patchwork solutions to procurement problems will no longer suf-
fice, (3) government procurement is important economically and po-
litically in both its methods and goals, and (4) Congress and the
public are deeply concerned about the effectiveness of procurement
and the manner in which it is conducted. As a result, the Commis-
sion on Government Procurement was created by Public Law 91-
129 in November 1969 to study and to recommend to Congress
methods "to promote the economy, efficiency, and effectiveness" of
procurement by the executive branch of the Federal Government.
After more than two years of study, the Commission made 149
recommendations to improve Federal procurement which, if imple-
mented, would maximize competition, obtain reasonable prices and
assure accountability of public officials for agency transactions.
The Commission's first recommendation was the creation of a
strong central office within the executive branch to provide leader-
ship and direction over Federal procurement activities and to
ensure that the procurement reforms recommended by the Com-
mission are carried out on a government-wide basis. The Commis-
sion believed that it was essential to address the total procurement
process and enumerated several components which were needed for
a successful operation. These included: (1) An integrated statutory
basis for procurement, implemented by a government-wide regula-
tory system, to establish sound policies and simplified agency pro-
cedures to direct and control the procurement process, (2) A coordi-
nated government-wide contract administration and audit system
to avoid duplication and deal uniformly with the private sector in
the administration of contracts, and (3) A continuing government-
wide program to develop better statistical information and im-
proved means of procuring goods and services.
Following the recommendations of the Commission, the Office of
Federal Procurement Policy (OFPP) was created within OMB by
Public Law 93-400 on August 30, 1974. The purpose of this Act in
establishing the OFPP was to provide overall direction of procure-
ment policies, regulations, procedures, and forms for executive
agencies. Almost without exception, those testifying during the
hearings leading to the enactment of Public Law 93-400 agreed
that some form of central institution with a government-wide per-
spective was needed to arrest proliferation of procurement statutes.
The Office of Federal Procurement Policy Act Amendments of
1979, Public Law 96-83, directed OFPP to develop a comprehensive,
government-wide uniform procurement system. The Government
Operations Committee report relating to Public Law 96-83 stated
that the Committee expected OFPP to devote its attention to the
development of a comprehensive and innovative system that incor-
porates all elements and stages of the total acquisition process. The
central theme of the Uniform Procurement System (UPS) is to ac-
quire property and services of the requisite quality and within the
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time needed at the lowest reasonable cost, utilizing competitive
procurement methods. Given the enormity of this task, Congress
removed OFPP's regulatory authority over agency procurement
practices to ensure that the Office devoted its full resources to this
important undertaking.
DEVELOPMENT OF THE UNIFORM PROCUREMENT SYSTEM (UPS)
Congress has long recognized the desirability of establishing a
government-wide uniform procurement policy for all Federal agen-
cies. A uniform policy benefits both purchasers and vendors. Uni-
form procurement practices provide economies and efficiencies for
the government and allow more vendors, particularly small busi-
nesses, to enter the Federal marketplace. Government-wide policies
also avoid duplication and paperwork, thereby reducing the waste
of public funds and delays in procuring needed supplies and serv-
ices.
Despite the desirability of uniformity, over the years individual
agencies have been allowed to develop unique procurement regula-
tions and practices. This has resulted in the creation of an enor-
mous body of diverse laws, policies, and regulations that cripple the
government's effectiveness and inhibit competition. The present
procurement system is complicated and confusing. In fact, the poli-
cies and practices of the procuring agencies are so diverse that con-
tractors seem to be dealing with different governments. Uncoordi-
nated and unconstrained, agencies' procurement practices have re-
sulted in the proliferation and fragmentation of forms, functions,
policies, and procedures that are overwhelming. The problem is
further exacerbated by the existence of an underdeveloped profes-
sional workforce and the absence of individual accountability for
producing results.
In response to the requirements of P.L. 96-83, OFPP submitted
to the Congress in October 1980 a proposal for the Uniform Pro-
curement System (UPS) to reform the government's procurement
process. The new UPS was to be designed to be responsive to
agency mission needs and rely on (1) the initiative and judgment of
qualified people who are accountable for their performance, (2)
competition as the predominant means of getting the most value
from Federal expenditures, and (3) the greatest possible simplicity
in procurement operations so that all of American business-small,
large, or minority alike-can participate fully. Mechanisms would
exist to correct mismanagement, to improve operation of the
system, and to settle disputes between the government and its con-
tractors in an expeditious and fair manner.
Such a system would also minimize the procurement regulatory
and paperwork burden imposed on both the agencies and contrac-
tors. However, in order to help ensure efficient and effective pro-
curement actions and accountability for results, penalties for im-
proper conduct would be established.
UPS was expected to meet specific objectives which, if imple-
mented, would resolve the outstanding problems identified over
many years by the procurement Commission and the Congress.
These objectives included:
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A strong competitive climate should be established through
encouraging maximum participation by industry. Further,
needs would be defined so as to allow firms the opportunity to
submit their most innovative, low cost solutions.
The Federal Government would present one face to private
business through a single Federal policy-oriented statute which
would implement the procurement system. The system would
require uniformity on basic steps in procurement and guide-
lines within distinctly different types of procurement "subsys-
tems".
The procurement system would contain central forums to
provide quick and responsive pre- and post-contractual reme-
dies which balance the interest of taxpayers and private firms.
P.L. 96-83 also required that OFPP develop a legislative proposal
to implement the Uniform Procurement System (UPS) no later
than October 1981. This proposal was to contain a clear delineation
of responsibilities and authorities between OFPP, GSA, and the op-
erating agencis for implementing UPS. It was also expected tht the
Office would maintain its central management oversight role over
Federal procurement activities.
Unfortunately, OFPP failed to meet its statutory deadline and
did not deliver its legislative proposal until February 1982. Fur-
ther, this proposal contained major structural flaws and failed to
meet the objectives established by OFPP's 1980 proposal for a Uni-
form Procurement System. The most serious deficiency was OFPP's
recommendation for "dual conforming statutes"-one procurement
system for DOD and one for the rest of the government. This provi-
sion clearly violates Congressional direction for OFPP to develop a
single government-wide statute. Apparently, this was an attempt
on the part of OFPP to accommodate DOD's desire to have its own
separate procurement system apart from the rest of the govern-
ment. The point that OFPP missed was that weakening the pro-
curement proposal would not satisfy DOD. It should have been
clear to OFPP that DOD had no intention of being a constructive
part of the government-wide procurement reform effort.
Other major flaws with the proposal included the relaxation of
the government's policy on the use of competition and the failure
to include mechanism to provide quick and responsive remedies to
pre- and post-contractual disputes between the government and its
contractors. The responsibility for the deficiencies contained in the
legislative proposal does not rest solely with OFPP. In fact, given
the growing resistance by Federal agencies to OFPP's procurement
reform activities, it is a wonder that OFPP managed to submit any
proposal to Congress.
AGENCY RESISTANCE TO GOVERNMENTWIDE PROCUREMENT REFORM
The volume of Federal procurement has nearly tripled over the
last ten years from $58 billion in 1972 to $159 billion in 1982. De-
spite this huge expenditure of money, efforts to significantly im-
prove the Federal procurement system have been largely unsuc-
cessful. Large procuring agencies such as the Department of De-
fense (DOD) have over the years steadfastly resisted fundamental
changes to their procurement practices. These same agencies op-
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posed the creation of OFPP on the basis that the Office's reform
efforts would represent an unnecessary intrusion into their pro-
curement activities. This opposition has continued throughout the
life of OFPP. In fact, the Defense Department, as recently as Feb-
ruary 1983, is on record as opposing the reauthorization of this
Office. In a letter to Edwin Meese, Counselor to the President, Paul
Thayer, Deputy Secretary of Defense, stated:
Certain aspects of this proposal [to reauthorize OFPP]
just do not seem to be in line with how I believe govern-
ment agencies should be organized or operated. First of all,
I do not believe that the Executive Branch should propose
the continuation of a legislative authorization of this func-
tion when this can be accomplished by the executive au-
thority of the President. Second, the proposed legislation
requires the Office of Federal Procurement Policy to
report policy matters directly to the Government Oper-
ations Committees of Congress. I do not believe that we
should support this direct reporting requirement.
This attitude is consistent with other positions taken by DOD
over the last two years concerning government-wide procurement
reform issues. In matters of contracting out, improving competi-
tion, and the adoption of the Federal Acquisition Regulation (FAR),
DOD has done all it could to delay or impede the progress of these
efforts. Apparently, DOD views procurement reform by Congress or
any entity outside of DOD as an unnecessary intrusion into the De-
partment's procurement domain.
Over the years, DOD has asserted that it is capable of reforming
its procurement system on its own without outside assistance. In
fact, DOD uses this rationale as their main argument in seeking an
exemption from on-going government-wide reform efforts. Howev-
er, the Department has little to show for its efforts and has proved
incapable of reforming its own procurement activities. The most
recent reform project was announced with much fanfare in early
1981. The Carlucci Initiatives, named after the then Deputy Secre-
tary of Defense Frank Carlucci, was billed as the most significant
procurement reform effort ever begun by the Department. The De-
partment asserted that these initiatives would save the govern-
ment billions of dollars and improve the quality and timeliness of
its acquisitions. However, the GAO has reported that little progress
is being made on many of these initiatives and that the cost sav-
ings projected by DOD in areas such as multi-year procurements
are not materializing.
In a recent report, the Council on Economic Priorities 1 provided
an assessment of the Pentagon's reform efforts including the Car-
lucci Initiatives. The Council stated:
The Carlucci initiatives fail to correct the most persist-
ent causes of cost growth: lack of competition in contract
awards; contracting practices that reward cost maximiza-
tion; simultaneous design and manufacture, or "concur-
rency"; disorganized program management and decision-
' Gordon Adams, "Controlling Weapons Costs: Can the Pentagon Reform Its Work?", Council
on Economic Priorities, dated 1983.
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making; weak supervision and auditing of weapons
contracts; and the establishment of extravagant weapons
performance goals, otherwise known as "gold plating."
Furthermore, the initiatives may accelerate rather than
reduce future cost growth.
Even though DOD's procurement reform efforts are faltering, the
Department continues to delay, whenever possible, government-
wide reform efforts. In 1978, OFPP initiated a project to consolidate
the regulations of DOD, GSA, and NASA into one regulation,
called the Federal Acquisition Regulation (FAR). According to
OFPP, the consolidation will reduce the volume of existing regula-
tions by 62 percent and eliminate one-half of the current 64,000
pages of regulations. Despite these benefits, DOD, with the occa-
sional assistance of GSA, has managed to delay the implementa-
tion of the FAR for almost six years.
OFPP Administrator Donald E. Sowle is optimistic about the
prospects for implementation of the FAR by the end of the calen-
dar year. However, the projected date for the issuance of the FAR
has already slipped to April 1984. Since OFPP does not presently
have the authority to issue the new consolidated regulation nor to
require DOD, GSA, or NASA to adopt the FAR, the Committee
finds it difficult to share the Administrator's optimism.
In testimony before the Legislation and National Security Sub-
committee, Deputy Director Joe Wright of OMB expressed similar
optimism about OFPP's ability to implement major procurement
reforms. Wright stated:
Mr. Chairman, we did not seek regulatory authority be-
cause we believe we can function effectively without it ...
we also feel that this could cause unnecessary tension be-
tween OFPP and some of the other regulatory agencies,
particularly DOD, GSA, and NASA.
Considering the long-standing opposition by Federal agencies to
OFPP's efforts, the Committee finds Mr. Wright's position to be un-
acceptable. OFPP cannot fulfill its statutory responsibilities to pro-
vide leadership and direction over Federal procurement practices
without the authority to deal directly with recalitrant agencies.
The Committee does not intend that OFPP use its regulatory au-
thority to involve itself in the day-to-day activities of the procuring
agencies. However, it is clear that OFPP needs this authority to
settle disputes among agencies and to act as the final decision-
maker in all policy and regulatory matters involving procurement.
Despite Mr. Wright's statement, OMB was forced to use the regu-
latory authorities of the Office of Information and Regulatory Af-
fairs (OIRA), under the Paperwork Reduction Act, to ensure the is-
suance of the FAR. The Committee believes that this is a clear
demonstration of the need for the reinstatement of OFPP's regula-
tory authority. The Committee also seriously questions OMB's judg-
ment in rejecting regulatory authority for OFPP while at the same
time resorting to the cumbersome maneuver of using OIRA's au-
thorities to accomplish procurement reform. Further, this unneces-
sary tactic will divert scarce staff resources from OIRA into mat-
ters not directly related to OIRA's charter.
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In sharp contrast to Mr. Wright's testimony, the General Ac-
counting Office, the Computer and Communications Industry Asso-
ciation, the U.S. Chamber of Commerce, the National Council of
Technical Service Industries, the Professional Services Council, and
the American Bar Association strongly supported the need for reg-
ulatory authority for OFPP.
During the hearings, Jack Biddle, President of the Computer and
Communications Industry Association (CCIA) testified that:
Indeed without this power [regulatory authority], one of
OFPP's most promising projects [FAR] is doomed to fail-
ure.
Further, the American Bar Association witness, Robert Wallick,
stated:
The regulation [FAR], in our view, would be a significant
step forward. Its full potential would be realized only if
OFPP has the authority to issue, monitor, and improve the
FAR as a single, controlling procurement regulation.
Clearly, OMB's arguments against giving OFPP regulatory au-
thority are not persuasive. In fact, the positions taken by OMB
raises serious questions concerning its commitment to government-
wide procurement reform. The Committee believes that it is essen-
tial that OFPP's regulatory authority must be restored in order to
continue the campaign for procurement reform initiated more than
twelve years ago by the Commission on Government Procurement.
While Congress is considering OFPP's legislative proposal for the
Uniform Procurement System (UPS), considerable work needs to be
done to (1) arrest the growing volume and complexity of agency
procurement regulations, and (2) improve the economies and effi-
ciencies in the procurement process. The following are some of the
problem areas in which the Committee believes OFPP can make a
major impact provided that its regulatory authority is restored.
The Committee has over the years been critical of the inconsist-
ent and haphazard manner in which Federal agencies have imple-
mented the government's policy on contracting-out for its goods
and services. That policy is now contained in the Office of Manage-
ment and Budget (OMB) Circular A-76 and is based on three prin-
ciples:
A. Rely on the private sector.-The government's business is not
to be in business. Where private sources are available, they should
be looked to first to provide the commercial or industrial goods and
services needed by the government to act on the public's behalf.
B. Retain certain governmental functions in-house.-Certain func-
tions are inherently governmental in nature, being so intimately
related to the public interest as to mandate performance by Feder-
al employees.
C. Aim for economy: Cost comparisons.-When private perform-
ance is feasible and no overriding factors require in-house perform-
ance, the American people deserve and expect the most economical
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performance, and, therefore, rigorous comparison of contract costs
versus in-house costs should be used, when appropriate, to decide
how the work will be done.
These are wise principles, and in their applicability to all agen-
cies they are entirely consistent with the goal that the Federal pro-
curement system be standardized. Notwithstanding, several agen-
cies have received partial or full exemptions to this policy through
their authorizing statutes. Further, even in those agencies where
A-76 is applicable, officials have found innovative ways to circum-
vent the requirements of the directive. Clearly, more work needs to
be done by OFPP to develop clear and concise guidelines to imple-
ment the principles governing A-76.
Burt Concklin, representing the Professional Services Council,
testified:
The Professional Services Council is not suggesting a
policy of blind reliance on the private sector. We are sensi-
tive to and share the congressional and public concern re-
garding a lack of clarity with respect to which activities
are appropriately government functions representing a
core capability. A fundamental need in defusing the con-
troversy is to formulate guidelines and criteria to deter-
mine what represents adequate core capability. This is es-
pecially important as we move into a complex, high tech-
nology services based economy where the lines between
what should be done by the government and by the private
sector are inevitably becoming more difficult to draw.
The Committee agrees that more effort should be expended by
OFPP on clarifying which functions are inherently governmental
and not subject to contracting-out. Until this is done, the confusion
and uncertainty that exists both within and outside the govern-
ment will continue. Ultimately, Congress may have to decide this
issue by setting a national policy on contracting-out. If so, OFPP
should be in a position to provide objective and rational advice on
how to best formulate such a legislative proposal.
IMPROVING COMPETITION IN FEDERAL PROCUREMENTS
The Committee has long held the belief that any effort to reform
government procurement practices must include a firm commit-
ment to increase the use of competition in the Federal market-
place. Competition not only provides substantially reduced costs
but also ensures that new and innovative products are made avail-
able to the government on a timely basis.
During the hearings on H.R. 2293, several witnesses recommend-
ed that Federal agencies place more emphasis on the use of full
and open competition in their procurements. GAO testified that:
Our most recent reviews have shown that competitive
opportunities are still being lost. A significant number of
DOD and civil agency contracts were unnecessarily award-
ed on a sole-source basis because of ineffective procure-
ment planning, failure to do sufficient market research,
and a general lack of commitment to competition on the
part of key agency personnel.
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One example will serve to illustrate the kinds of things
that I have in mind. A recent Department of Army pro-
curement of 23,000 5-ton trucks was competed in response
to congressional concerns. The procurement resulted in
savings which we estimated to be at least $141 million on
a $577 million contract.
This is just one of many projects which GAO has reviewed in which
significant cost savings could be achieved if full and open competi-
tion were used. In fact, GAO indicated that the government's pro-
curement costs could be reduced by 25 percent if agencies achieved
competition.
Jack Biddle of CCIA testified that:
The experience of our own industry confirms GAO's
studies. It is not uncommon for agencies to receive dis-
counts in excess of fifty percent when they conduct com-
petitive acquisitions for computer equipment.
Finally, Administrator Sowle testified during the hearing that a
large portion of the $2 to $9 billion that could be saved annually
through government-wide procurement reform would come from in-
creased competition in agency procurements. Sowle also indicated
that these figures could be higher since in 1982 more than $50 bil-
lion in procurements were awarded non-competitively.2
Despite the benefits that can be achieved, Federal agencies have
successfully resisted using competition in the majority of their pro-
curements. For example, current statistics show that the majority
of the Department of Defense acquisitions are made on a non-com-
petitive basis. While DOD officials invariably claim that limiting
competition is justified on the basis of national security, the Com-
mittee has found that the deciding factor is one or more of the fol-
lowing:
Reluctance to invest in competition to ensure that competing
sources of supply are maintained.
Unavailability of personnel with skill and expertise required
to conduct a competitive procurement.
Dependence (psychological or actual) on the incumbent con-
tractor's product or service.
Unwillingness to change current operating practices.
Rewarding performance based on factors other than reduc-
ing cost.
Exaggerating the value of short-term expediencies at the sac-
rifice of overall cost and performance.
Institutional bias toward "in-house" solutions which severely
limit full involvement of industry.
Unwillingness to commit sufficient time and resources to ad-
vanced planning.
Inability to clearly and concisely define mission require-
ments or needs to the industry.
Rather than address these problems, DOD has over the years at-
tempted to expand the definition of competition to include procure-
ments which severely restrict competition. For example, some com-
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ponents in -DOD assert that sufficient competition is achieved as
long as two vendors are involved in a procurement. However, as
long as the number of qualified vendors is restricted, true competi-
tion is not achieved. In the case of Phase IV, a $5 billion computer
procurement by the Air Force, the two "competing" contractors
were both incumbents. GAO reported that up to 11 qualified ven-
dors were excluded by restrictive Air Force specifications. Notwith-
standing, the Air Force maintained that this was a fully competi-
tive procurement.
These same components also assert that non-competitive "follow-
on" contracts to an incumbent vendor are not sole-source procure-
ments. This means that once a vendor lands a contract, ostensibly
under some form of price or technical competition, the agency may
continue to sole-source its acquisitions indefinitely into the future.
If this proposal is widely accepted, it would eliminate any chance of
DOD ever achieving an acceptable level of competition in its pro-
curements. The end result would be that DOD's ability to acquire
innovative, cost-effective products would be drastically reduced.
This is particularly true in the rapidly changing high technology
area when the incumbent product line may be technically genera-
tions behind other companies' latest offerings in the industry.
The Committee voiced its concerns about the lack of competition
within the Defense Department during hearings on the 1982 DOD
Authorization bill. Administration witnesses testified in favor of
strict enforcement of the government's policy promoting full and
open competition. Unfortunately, little has been accomplished in
this area and the number of sole-source or non-competitive procure-
ments remains at an unacceptably high level.
H.R. 2293 adds a new section on Federal Agency Responsibilities
which requires each agency to designate a senior procurement ex-
ecutive to oversee the agency's procurement system. Under the bill,
the procurement executive will serve as an advocate for competi-
tion within the agency and will provide the necessary management
direction in this important area. The Committee hopes that this
and the other requirements of this section will help reduce the
number of non-competitive procurements conducted by government
agencies.
MAJOR SYSTEMS ACQUISITION POLICY
The Office of Management and Budget, through the Office of
Federal Procurement Policy, issued Circular A-109 on April 5,
1976. The purpose of A-109 is to establish procedures to be followed
by executive branch agencies in the acquisition of major systems.
Key provisions of the circular are that Federal agencies are to:
(1) Express needs and program objectives in mission terms
and not equipment terms to encourage innovation and compe-
tition in developing alternative system design concepts,
(2) Ensure that each major system fulfills the mission needs,
(3) Accomplish system acquisition planning, built on analysis
of agency missions resulting from clear articulation of mission
needs, and
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(4) Establish a program manager at the start of each major
system acquisition to provide continuity and accountability for
the program.
The Committee has long supported the A-109 concept as a com-
monsense approach to large-scale system acquisitions. The above
provisions are based on managerially sound principles that can and
should be applied to all such acquisitions whether they be in the
Department of Defense, or the Department of Health and Human
Services.
A-109 requires agencies to define and analyze their mission, and
to institute long-range planning prior to initiating a major procure-
ment action. The mission analysis is based on identifying capabili-
ties, priorities, and resources and permits identifying system needs
as early as possible. After this mission-oriented planning is com-
pleted, emphasis is placed on high visibility, strong program man-
agement, and reliance on the private sector for competitive system
designs.
The implications of A-109 go far beyond the acquisition of indi-
vidual systems. They extend to the agency's ability to manage its
mission performance and respond to a changing environment. This
is especially critical in national defense matters. Further, A-109
operates primarily on a competitive acquisition strategy tailored to
the particular system acquisition.
It is important to the success of A-109 policy guidelines that a
sufficient investment of time and money be made in both early
agency mission planning and creative industry design efforts.
Notwithstanding, few major systems acquisitions carried out by
Federal agencies are being conducted in accordance with the A-109
policy. In part, this decline in the number of A-109 acquisitions is
due to an apparent decision by OFPP to devote less staff resources
to overseeing the implementation of this policy. The major cause,
however, is that agencies have failed to develop the expertise nec-
essary to adopt the policy to their major acquisitions. Further,
many agencies are uncomfortable with the requirements of the
policy; that is, high visibility, strong program management, and re-
liance on the private sector for competitive systems designs.
Nonetheless, the Committee believes that significant benefits
could be achieved if Federal agencies-especially the Defense De-
partment-were required to follow this policy. OFPP should renew
its efforts to oversee the Federal agencies' implementation of the
A-109 policy and to counter efforts by Federal agencies to circum-
vent the requirements of A-109.
The bill requires the Administrator to develop and submit within
one year a plan for testing innovative procurement methods and
procedures in selected executive agencies. It also contains a de-
scription of the kind of supporting material which shall be included
in any such plan. While the plan is to be delivered within one year,
OFPP is not prevented from submitting more than one plan or, in
fact, submitting plans after the end of the one-year period. Any
proposed plan could not be implemented unless changes in regula-
tions and statutes, if needed, were made first. The purpose of this
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provision is to encourage the Office to present to Congress new in-
novative procurement ideas.
Another provision raises the ceiling for the use of small purchase
procedures for civilian agency contracts from $10,000 to $25,000.
The ceiling applicable to defense contracts was raised to $25,000 by
the Department of Defense Authorization Act of 1982. The purpose
of the change is to establish a uniform small purchase ceiling
across the government and will result in savings because of short-
ened procurement cycles and reduced paperwork.
CONCLUSION
H.R. 2293 is an affirmation of the Committee's belief in OFPP's
potential as a means of promoting economy and efficiency in the
government's procurement process. Over the nine years of its exist-
ence, OFPP has been the single focal point in the government-wide
procurement reform effort initiated by the Commission on Govern-
ment Procurement. The bill authorizes the Office for an additional
three-year period to continue to carry out its important activities
while Congress considers OFPP's legislative proposal for a new
Uniform Procurement System.
The bill also accomplishes two other major objectives. First, it re-
stores the regulatory powers and authorities to OFPP so that it
may immediately implement, where feasible, essential government-
wide procurement reforms. Second, it requires the head of each
agency to designate a senior procurement executive to act as the
focal point to carry out procurement reforms within the agency.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title: References
Section 1 titles the Act the "Office of Federal Procurement
Policy Act Amendments of 1983" and defines the term "the Act" as
the Office of Federal Procurement Policy Act (Public Law 93-400).
Section 2. Declaration of policy
Section 2 amends and revises the Act's policy statement to re-
flect the recommendations made by the Office of Federal Procure-
ment Policy and the General Accounting Office. These provisions
(1) strengthen the government's policy on relying on competitive
procurement practices in the acquisition of property and services,
and (2) promote procurement efficiency, effectiveness, and economy
within the government and for those who do business with the gov-
ernment.
Section 3. Authority and functions
Subsections 3(a), (b), and (c) amend subsections 6(a), (d), and (e),
respectively, of the Act to restore the Administrator's authority
and functions to provide overall direction of procurement policy, in-
cluding prescribing, to the extent practical, procurement policies,
regulations, and procedures to be followed by executive agencies.
Further, all references to the Uniform Procurement System are de-
leted to conform with the changes made in Section 4.
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Subsection 3(d) amends subsections 6(h) and (i) of the Act with a
new subsection 6(h) which permits the Administrator, with the con-
currence of the OMB Director, to deny or rescind the promulgation
of any final rule or regulation of any executive agency if the Ad-
ministrator determines that such rule or regulation is inconsistent
with the policies set forth in Section 2 or is inconsistent with any
policies, regulations, or procedures issued pursuant to this section.
Section 4. Responsiveness to Congress
Subsection 4(a)(1) eliminates those provisions in subsection 8(a) of
the Act relating to the requirement for the development of the
Uniform Procurement System (UPS) and the legislative proposal to
implement that system, since that requirement has been completed
by OFPP.
Subsection 4(a)(2-5) makes several changes to subsections 8(b)
and (c) to conform to OFPP's revised authority.
Section 5. Federal agency responsibilities
Section 5 adds a new Section 8A on Federal Agency Reponsibili-
ties to the Act.
New subsection 8A(a) requires the head of each Federal agency
to designate a senior procurement executive and give that individu-
al responsibility for overseeing the agency's procurement system,
including unique agency policies and regulations. The senior pro-
curement executive will also serve as the advocate for competition
in procurement within the agency and will provide the necessary
management direction in this important area. Besides overseeing
agency procurement activities, the senior executive will develop
and maintain a procurement management career program to
ensure an adequate professional workforce.
This subsection also requires the agency head to promote the use
of full and open competition in agency procurements and establish
clear lines of authority, accountability, and responsibilty for pro-
curement decision-making. The agency head must ensure that the
policies contained in Section 2 of the Act are included in agency
procurement regulations.
New subsections 8A(b) and (c) set specific criteria for agency
heads to follow to promote the increased use of full and open com-
petition. This subsection also requires the agency head to assign to
the Senior Procurement Executive the responsibility for removing
barriers to full and open competition and reporting the results of
these actions to the agency head annually.
New subsection 8A(d) requires agency heads to establish and
maintain for a period of five years a record of all procurement
transactions of $25,000 or more. Such records shall be kept on a
fiscal basis and shall include a complete description of the procure-
ment transactions. In those cases where non-competitive procedures
were used or where only one bid or proposal was recevied, addition-
al information must be provided to show (1) the reason for the lack
of competition, and (2) the official or officials who required and ap-
proved the use of noncompetitive procedures. This subsection also
requires that the records established by the agency head be trans-
mitted to the Federal Procurement Data Center. These transmit-
tals should be made no less than once each quarter.
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New subsection 8A(e) requires the heads of each agency to trans-
mit an annual report to the Committee on Governmental Affairs of
the Senate and the Committee on Government Operations of the
House of Representatives. Each annual report shall include (1) a
summary of the activities and accomplishments of the Senior Pro-
curement Executive during the preceding fiscal year, and (2) a de-
tailed description of all actions that the head of the executive
agency intends to take during the upcoming fiscal year to increase
the number of competitive procurements within that agency.
Section 6. Effect on existing regulations
Section 6 amends Section 10 of the Act to conform to OFPP's re-
vised authority.
Section 7. Authorization of appropriations
Section 7 amends Section 11 of the Act to authorize continued
funding of $4 million for each fiscal year through September 30,
1986.
Section 8. Delegation
Section 8 amends Section 12 of the Act to conform to OFPP's re-
vised authority.
Section 9. Plan to test new procurement methods and procedures
Section 9 requires the Administrator to develop and submit to
the Congress within one year a plan for testing innovative procure-
ment methods and procedures in selected agencies. The Adminis-
trator is not constrained to submitting one plan if he sees a need
for more tests. Furthermore, additional plans may be submitted
beyond the additional year.
Section 10. Procurement procedures simplification, conforming
amendments
Section 10 raises the ceiling for the use of small purchase proce-
dures for civil agency contracts from $10,000 to $25,000. The ceiling
applicable to defense contracts was previously raised to $25,000 by
the Department of Defense Authorization Act of 1982. This section
would subsequently establish a uniform small purchase ceiling
across the government and result in savings because of shortened
procurement cycles and reduced paperwork. It also makes uniform
the requirement for the Secretary of Commerce to publish a notice
of all procurement actions above $10,000. The ceiling is presently
$10,000 for the Defense Department and $5,000 for civilian agen-
cies.
Section 11. Effective date
Section 11 specifies that the provisions of the bill shall take
effect on October 1, 1983.
COST ESTIMATE OF THE CONGRESSIONAL BUDGET OFFICE
The cost estimate prepared by the Congressional Budget Office
under Sections 308(a) and 403 of the Congressional Budget Act of
1974 is contained in the following letter from its Director:
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U.S. CONGRESS,
CONGRESSIONAL BUDGET OFFICE,
Washington, D.C., May 10, 1983.
Hon. JACK BROOKS,
Chairman, Committee on Government Operations, House of Repre-
sentatives, Rayburn House Office Building, Washington, D.C.
DEAR MR. CHAIRMAN: Pursuant to Section 403 of the Congres-
sional Budget Act of 1974, the Congressional Budget Office has pre-
pared the attached cost estimate for H.R. 2293, the Office of Feder-
al Procurement Policy Act Amendments of 1983.
Should the Committee so desire, we would be pleased to provide
further details on this estimate.
Sincerely,
ALICE M. RIVLIN, Director.
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
1. Bill number: H.R. 2293.
2. Bill title: Office of Federal Procurement Policy Act Amend-
ments of 1983.
3. Bill status: As ordered reported by the House Committee on
Government Operations, May 3, 1983.
4. Bill purpose: This bill changes certain procurement procedures
and record-keeping requirements for Federal agencies and author-
izes the appropriation of $4 million, each year, in fiscal years 1984
through 1986 for activities authorized by this bill. Currently, $2.4
million has been appropriated to the Office of Federal Procurement
Policy for fiscal year 1983. A supplemental request for $95,000 is
pending before the Congress. The President has requested $2.7 mil-
lion for fiscal year 1984.
5. Estimated cost to the Federal Government:
Authorization level .................................................................................................... 4.0 4.0 4.0 ..............................
Estimated outlays ..................................................................................................... 3.0 4.0 4.0 1.0 ..............
The costs of this bill fall within budget function 800.
Basis of estimate: This estimate assumes that the amount au-
thorized will be appropriated. The estimate of outlays is based on
historical spending patterns.
6. Estimated cost to State and local governments: None.
7. Estimate comparison: None.
8. Previous CBO estimate: None.
9. Estimate prepared by: Judith Walker.
10. Estimate approved by: C. G. Nuckols (for James L. Blum, As-
sistant Director for Budget Analysis).
COMMITTEE ESTIMATE OF COST
The Committee agrees with the estimate contained in the sub-
mission of the Congressional Budget Office above and presents that
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estimate as the Committee's pursuant to the requirements of
clause 7 of House Rule XIII.
INFLATIONARY IMPACT
In compliance with clause 2(1x4) of House Rule XI, it is the opin-
ion of the Committee that the provisions of this bill will have no
inflationary impact on prices and costs in the operations of the na-
tional economy.
OVERSIGHT FINDINGS
The Committee has maintained continuous oversight of the agen-
cies affected by this legislation, but has made no detailed findings
and recommendations other than those contained in this report.
NEW BUDGET AUTHORITY AND TAX EXPENDITURES
No new budget authority or tax expenditures are required by
this legislation.
CHANGES IN EXISTING LAW MADE BY THE BILL, As REPORTED
In compliance with clause 3 of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be omit-
ted in enclosed in black brackets, new matter is printed in italic,
existing law in which no change is proposed is shown in roman):
OFFICE OF FEDERAL PROCUREMENT POLICY ACT
AN ACT To ESTABLISH AN OFFICE OF FEDERAL PROCUREMENT POLICY WITHIN THE
OFFICE OF MANAGEMENT AND BUDGET, AND FOR OTHER PURPOSES
Be in enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may
be cited as the "Office of Federal Procurement Policy Act".
[DECLARATION OF POLICY
[SEC. 2. It is declared to be the policy of Congress to promote
economy, efficiency, and effectiveness in the procurement of prop-
erty and services by and for the executive branch of the Federal
Government by-
[(1) promoting the use of full and open competition in the
procurement of products and services;
[(2) establishing policies, procedures, and practices which
will require the Government to acquire property and services
of the requisite quality and within the time needed at the
lowest reasonable cost;
[(3) improving the quality, efficiency, economy, and perform-
ance of Government procurement organizations and personnel,
and eliminating fraud and waste in the procurement process;
[(4) avoiding or eliminating unnecessary overlapping or du-
plication of procurement and related activities;
[(5) avoiding or eliminating unnecessary or redundant re-
quirements placed on contractor and Federal procurement offi-
cials;
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[(6) identifying gaps, omissions, or inconsistencies in pro-
curement laws, regulations, and directives and in other laws,
regulations, and directives, relating to or affecting procure-
ment;
[(7) achieving greater uniformity and simplicity, whenever
appropriate, in procurement procedures;
[(8) otherwise promoting economy, efficiency, and effective-
ness in Government procurement organizations and operation;
[(9) coordinating procurement policies and programs of the
several departments and agencies;
[(10) minimizing possible disruptive effects of Government
precurement on particular industries, areas, or occupations;
[(11) improving understanding of Government procurement
laws and policies within the Government and by organizations
and individuals doing business with the Government; and
[(12) promoting fair dealing and equitable relationships
among the parties in Government contracting.]
SEC. 2. It is the policy of the Congress that the Federal Govern-
ment shall rely on competitive procurement practices to supply
needed property and services, and that the system for procurement of
property and services by the Federal Government shall-
(1) promote full and open competition;
(2) establish policies, procedures, and practices which will
provide the Government property and services of the requisite
quality, within the time needed, at the lowest reasonable cost;
(3) promote the development of simplified uniform procure-
ment processes;
(4) promote the participation of small business concerns;
(5) support the continuing development of a professionally
competent work force;
(6) eliminate fraud and waste in the procurement process;
(7) eliminate duplication of procurement activities and redun-
dant requirements place on contractor and Federal procurement
officials;
(8) promote fair dealings and equitable relationships with the
private sector;
(9) ensure payment is made in a timely manner and only for
value received;
(10) require the description of needs, whenever feasible, in
terms of functions to be performed or performance required;
(11) require, to the extent practicable, the use of commercial
products to meet the Government's needs;
(12) ensure the development of procurement policies that will
accommodate emergencies and wartime as well as peacetime re-
quirements;
(13) require that personal services are obtained in accordance
with applicable personnel procedures and not by contract; and
(14) otherwise promote procurement efficiency, effectiveness,
and economy within the Government and for those who do busi-
ness with the Government.
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9SEC. 6. (a) The Administrator shall provide overall leadership in
the development and implementation of procurement policies and
the coordination of programs to improve the quality and perform-
ance of procurement personnel. The Administrator shall develop
for submission under section 8(a) a uniform procurement system
which shall, to the extent he considers appropriate and with due
regard to the program activities of the executive agencies, include
uniform policies, regulations, procedures, and forms to be followed
by executive agencies-]
Sec. 6. (a) The Administrator shall provide overall direction of
procurement policy. To the extent the Administrator considers ap-
propriate and, with due regard to the program activities of the ex-
ecutive agencies, the Admininstrator shall prescribe policies, regula-
tions, procedures, and forms which shall be in accordance with ap-
plicable laws and shall be followed by executive agencies-
(1) in the procurement of-
(A) property other than real property in being;
(B) services, including research and development; and
(C) construction, alteration, repair or maintenance of
real property; and
(2) in providing for procurement by recipients of Federal
grants or assistance of items specified in clause (1XA),
(1XB), and (1XC) of this subsection, to the extent required
for performance of Federal grant or assistance programs.
(d) The functions of the Administrator shall include-
(1) reviewing the recommendations of the Commission on
Government Procurement to determine those recommenda-
tions that should be completed, amended, or rejected, and to
propose the priority and schedules for completing the remain-
ing recommendations:
(2) [developing] establishing a system of simplified and uni-
form procurement policies, regulations, procedures, and forms;
(3) establishing criteria and procedures for an effective and
timely method of soliciting the viewpoints of interested parties
in the development of procurement policies, regulations, proce-
dures, and forms;
(4) promoting and conducting research in procurement poli-
cies, regulations, procedures, and forms, through the Federal
Acquisition Institute, which shall be located within the Office
and directed by the Administrator;
(5) establish, through the Federal Procurement Data Center,
which shall be located in the General Services Administration
and acting as executive agent for the Administrator, a comput-
er-based information system for collecting, developing, and dis-
seminating procurement data which takes into account the
needs of the Congress, the executive branch, and the private
sector;
(6) recommending and promoting, through the Federal Ac-
quisition Institute, programs of the Office of Personnel Man-
agement and executive agencies for recruitment, training,
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career development, and performance evaluation of procure-
ment personnel;
(7) developing, [for inclusion in the uniform procurement
system to be submitted under section 8(a),] standard contracts
and contract language in order to reduce the Government's
cost of procuring goods and services as well as the private sec-
tor's cost of doing business with the Government; and
(8) providing leadership and coordination in the formulation
of executive branch positions on legislation relating to procure-
ment.
(e) In the development and implementation of [the uniform pro-
curement system] policies, regulations, procedures, and forms, the
Administrator shall consult with the executive agencies affected,
including the Small Business Administration and other executive
agencies promulgating policies, regulations, procedures and forms
affecting procurement. To the extent feasible, the Administrator
may designate an executive agency or agencies, establish inter-
agency committees, or otherwise use agency representatives or per-
sonnel to solicit the views and the agreement, so far as possible, of
executive agencies affected on significant changes in policies, regu-
lations, procedures and forms.
[(hxl) Until the effective date of legislation implementing a uni-
form procurement system, the Administrator may, with the concur-
rence of the Director of the Office of Management and Budget,
issue policy directives, in accordance with existing law, for the pur-
pose of promoting the development and implementation of the uni-
form procurement system or for the purpose of promoting the poli-
cies set forth in paragraphs (1) through (8) of section 2 of this Act.
Such policy directives shall be followed by executive agencies.
[(2) Any policy directives issued pursuant to paragraph (1) may
require executive agencies to issue implementing regulations which
shall be in accord with the criteria and standards set forth in such
policy directives.
[(i) Until the effective date of legislation implementing a uni-
form procurement system, the Director of the Office of Manage-
ment and Budget shall deny or rescind the promulgation of any
final rule or regulation of any executive agency relating to procure-
ment if the Director determines that such rule or regulation is in-
consistent with the policies set forth in paragraphs (1) through (8)
of section 2 of this Act or is inconsistent with any policy directives
issued pursuant to subsection (h).]
(h) The Administrator may, with the concurrence of the Director
of the Office of Management and Budget, deny or rescind the pro-
mulgation of any final rule or regulation of any executive agency re-
lating to procurement if the Administrator determines that such
rule or regulation is inconsistent with policies set forth in para-
graphs (1) through (14) of section 2 of this Act of is inconsistent
with any policies, regulations, or procedures issued pursuant to sub-
section (a) of this section.
[j] (i) Nothing in this Act shall be construed-
(1) to impair or affect the authorities or responsibilities con-
ferred by the Federal Property and Administrative Services
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Act of 1949 with respect to the procurement of automatic data
processing and telecommunications equipment and services or
of real property; or
(2) to limit the current authorities and responsibilities of the
Director of the Office of Management and Budget.
s s s s s s s
RESPONSIVENESS TO CONGRESS
SEC. 8. (a)[(1)] The Administrator shall keep the Congress and
its duly authorized committees fully and currently informed of the
major activities of the Office of Federal Procurement Policy, and
shall submit a report thereon to the House of Representatives and
the Senate annually and at such other times as may be necessary
for this purpose.
[(2) At the earliest practicable date, but in no event later than
one year after the date of enactment of the Office Federal Procure-
ment Policy Act Amendments of 1979, the Administrator shall
transmit to the House of Representatives and the Senate his pro-
posal for a uniform procurement system. Such proposal shall in-
clude a full description of the proposed system, projected costs and
benefits of the system as proposed, and short- and long-term plans
for implementation of the system, including schedules for imple-
mentation. At the same time, the Administrator shall transmit a
report on the recommendations of the Commission on Government
Procurement specified in section 6(dX1) of this Act.
[(3) At the earliest practicable date, but in no event later than
one year after presentation of the proposal described in paragraph
(2) of this subsection, the Administrator shall propose to the House
of Representatives and the Senate recommended changes in legisla-
tion relating to procurement by executive agencies. If the Adminis-
trator deems it necessary, these recommendations shall include a
proposal for a consolidated statutory base for procurement by ex-
ecutive agencies.
[(4) At the earliest practicable date, but in no event later than
the submission of the legislative recommendations described in
paragraph (3) of this subsection, the Administrator shall present a
proposal for a management system described in section 6(c) to im-
plement and enforce the uniform procurement system.]
(b) At least 30 days prior to the effective date of [any policy pre-
scribed under section 6] any policy or regulation prescribed under
section 6(a), the Administrator shall transmit to the Committees on
Government Operations of the House of Representatives and of the
Senate a detailed report on the proposed policy or regulation. Such
report shall include-
(1) a full description of the policy or regulation;
(2) a summary of the reasons for the issuance of such policy
or regulation; and
(3) the names and positions of employees of the Office who
will be made available, prior to such effective date, for full con-
sultation with such Committees regarding such policy or regu-
lation.
(c) In the case of an emergency, the President may waive the
notice requirement of subsection (b) by submitting in writing to the
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Congress his reasons therefor at the earliest practicable date on or
before the effective date of any policy or regulation.
SEC. 8A. (a) To further achieve effective, efficient, and economic
administration of the Federal procurement system, the head of each
executive agency shall-
(1) increase the use of full and open competition in agency
procurements in accordance with subsection (b);
(2) ensure that agency procurements are carried out in accord-
ance with all laws, Government-wide policies and regulations,
and good business practices;
(3) establish clear lines of authority, accountability, and re-
sponsibility for procurement decisionmaking, including placing
the procurement function at a sufficiently high level in the
agency to provide-
(A) direct access to the head of the major organizational
element served; and
(B) comparative equality with organizational counter-
parts;
(4) designate a senior procurement executive who shall be re-
sponsible for management direction of the procurement system,
including unique agency policies and regulations and agency
system standards, and who shall serve as the advocate for com-
petition in accordance with subsection (c);
(5) develop and maintain a procurement management career
program to ensure an adequate professional work force;
(6) establish and maintain procurement records in accordance
with subsection (d); and
(7) prepare and submit annual report in accordance with sub-
section (e).
(b) Efforts to increase the use of full and open competition pursu-
ant to subsection (a)(1) shall include-
(1) assigning to the senior procurement executive designated
pursuant to subsection (a)(4) responsibility for removing barriers
to full and open competition and for reporting to the agency
head annually on new initiatives required to increase competi-
tion and on barriers to full and open competition which such
executive was unable to remove;
(2) setting goals and developing plans for increasing competi-
tion on a fiscal year basis;
(3) using advance procurement planning, market research,
business strategies, and testing of the marketplace for alterna-
tive products and services;
(4) describing needs whenever possible in terms of functions to
be performed or performance required;
(5) precluding from Government solicitations qualification re-
quirements, designs, processes, or other conditions which restrict
competition and which do not serve legitimate purposes;
(6) establishing more than one production source for new
products, whenever feasible;
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(7) excluding the use of patents or proprietary rights as the
grounds for using noncompetitive procedures when competitive
alternatives exist;
(8) limiting those circumstances for which noncompetitive
procurement is permitted and requiring written approval at a
level above the contracting officer for such procurements;
(9) publicizing notices of proposed procurement actions well in
advance of the time for receipt of bids or proposals and specifi-
cally inviting competition unless noncompetitive procurement
has been justified and approved;
(10) designing a system of personal and organizational ac-
countability for competition, which may include the use of rec-
ognition and awards to motivate program managers, contract-
ing officers, and others in authority to promote competition in
procurement programs; and
(11) emphasizing competition in programs for procurement
training and research.
(c) The senior procurement executive designated as the advocate
for competition under subsection (a)(4) shall be responsible for pro-
moting full and open competition in the procurement of property
and services and shall-
(1) review the purchasing and contracting activities of the ex-
ecutive agency;
(2) identify and report to the head of the executive agency-
(A) opportunities to achieve full and open competition on
the basis of price and other significant factors in the pur-
chases and contracts of the executive agency;
(B) solicitations and proposed solicitations which include
unnecessarily detailed specifications or unnecessarily re-
strictive statements of need which may reduce competition
in the procurement activities of the executive agency; and
(C) any other condition or action which has the effect of
unnecessarily restricting competition in the procurement ac-
tions of the executive agency; and
(3) prepare and transmit to the head of the executive agency
an annual report describing such executive's activities under
this section.
(d)(1) Each head of an executive agency shall establish and main-
tain for a period of five years a record, by fiscal year, of all procure-
ments other than small purchases (of less than an aggregate of
$25,000) in such fiscal year. Such record shall include-
(A) information identifying the source to whom the contract
was awarded;
(B) the property or services obtained by the Government under
the procurement; and
(C) the total cost of the procurement.
(2) With respect to any procurement in which noncompetitive pro-
cedures were used or in which only one bid or proposal was received
after competitive procedures were used, the procurement record shall
include, in addition to the information required by paragraph (1)-
(A) the reason for the use of noncompetitive procedures; and
(B) the position of the officers or employees of the agency who
required and approved the use of noncompetitive procedures in
such precurement.
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(3) The information included in the record established and main-
tained under this subsection shall be transmitted to the Federal
Procurement Data Center referred to in section 6(d)(5) of the Office
of Federal Procurement Policy Act (41 U.S.C. 405(d)(5)).
(e)(1) Not later than October 31 of each of 1984, 1985, and 1986,
each head of an executive agency shall transmit to the Committee
on Governmental Affairs of the Senate and the Committee on Gov-
ernment Operations of the House of Representatives an annual
report including the information specified in paragraph (2).
(2) Each annual report transmitted under paragraph (1) shall in-
clude-
(A) a summary of the activities and accomplishments of the
senior procurement executive of the executive agency during the
preceding fiscal year; and
(B) a specific description of all actions that the head of the
executive agency intends to take during the current fiscal year
(i) increase competition for contracts with the executive
agency on the basis of price and other significant factors;
and
(ii) reduce the number and dollar value of contracts en-
tered into by the executive agency after soliciting bids or
proposals from, or evaluating bids or proposals with discus-
sions with, only one source.
[EFFECT ON EXISTING REGULATIONS
[SEC. 10. Procurement policies, regulations, procedures, or forms
in effect as of the date of enactment of the Office of Federal Pro-
curement Policy Act Amendments of 1979 shall continue in effect,
as modified from time to time by the issuing offices on their own
initiative or in response to policy directives issued under section
6(h) until repealed, amended, or superseded pursuant to the adop-
tion of the uniform procurement system described in section 6 of
this Act.]
SEC. 10. Procurement policies, regulations, procedures, or forms in
effect as of the date of enactment of this Act shall continue in
effect, as modified from time to time, until repealed, amended, or
superseded by policies, regulations, procedures, or forms promulgat-
ed by the Administrator.
SEC. 11. There are authorized to be appropriated to carry out the
provisions of this Act, and for no other purpose $4,000,000 for the
fiscal year ending September 30, [1980] 1984, and for each of the
[three] two succeeding fiscal years; and one-third of the funds ap-
propriated for any such fiscal year shall be made available to the
Federal Acquisition Institute for the performance of its functions
under this Act. Any subsequent legislation to authorize appropri-
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ations to carry out the purposes of this Act shall be referred in the
Senate to the Committee on Governmental Affairs.
[DELEGATION
[SEC. 12. (a) The Administrator may delegate, and authorize
successive redelegations of, any authority, function, or power under
this Act, other than his basic authority to provide overall leader-
ship in the development of Federal procurement policy, to any
other executive agency with the consent of such agency or at the
direction of the President.
[(b) The Administrator may make and authorize such delega-
tions within the Office as he determines to be necessary to carry
out the provisions of this Act.]
SEC. 12. (a) The Administrator may delegate, and authorize
successive redelegations of, any authority, function or power under
this Act (other than his basic authority to provide overall direction
of Federal procurement policy and to prescribe policies and regula-
tions to carry out that policy), to any other executive agency with the
consent of such agency or at the direction of the President.
(b) The Administrator may make and authorize such delegations
within the Office as he determines to be necessary to carry out the
provisions of this Act.
PROCUREMENTS, WAREHOUSING, AND RELATED ACTIVITIES
SEC. 201. (a) The Administrator shall, in respect of executive
agencies, and to the extent that he determines that so doing is ad-
vantageous to the Government in terms of economy, efficiency, or
service, and with due regard to the program activities of the agen-
cies concerned-
(1) subject to [policy directives] regulations prescribed by
the Administrator for Federal Procurement Policy pursuant to
the Office of Federal Procurement Policy Act, prescribe poli-
cies and methods of procurement and supply of personal prop-
erty and nonpersonal services, including related functions such
as contracting, inspection, storage, issue, property identifica-
tion and classification, transportation and traffic management,
management of public utility services, and repairing and con-
verting; and
(2) operate, and, after consultation with the executive agen-
cies affected, consolidate, take over, or arrange for the oper-
ation by any executive agency of warehouses, supply centers,
repair shops, fuel yards, and other similar activities; and
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(3) procure and supply personal property and nonpersonal
services for the use of executive agencies in the proper dis-
charge of their responsibilities, and perform functions related
to procurement and supply such as those mentioned above in
subparagraph (1) of this subsection: Provided, That contracts
for public utility services may be made for periods not exceed-
ing ten years; and
(4) with respect to transportation and other public utility
services for the use of executive agencies, represent such agen-
cies in negotiations with carriers and other public utilities and
in proceedings involving carriers or other public utilities before
Federal and State regulatory bodies;
Provided, That the Secretary of Defense may from time to time,
and unless the President shall otherwise direct, exempt the Depart-
ment of Defense from action taken or which may be taken by the
Administrator under clauses (1)-(4) of this subsection whenever he
determines such exemption to be in the best interests of national
security.
* * * * *
(c) In acquiring personal property, any executive agency, under
regulations to be prescribed by the Administrator, subject to
[policy directives] regulations prescribed by the Administrator for
Federal Procurement Policy pursuant to the Office of Federal Pro-
curement Policy Act, may exchange or sell similar items and may
apply the exchange allowance or preceeds of sale in such cases in
whole or in part payment for the property acquired: Provided, That
any transaction carried out under the authority of this subsection
shall be evidenced in writing.
SURVEYS, STANDARDIZATION AND CATALOGING
SEC. 206. (a) As he may deem necessary for the effectuation of his
functions under this subchapter, and after adequate advance notice
to the executive agencies affected, and with due regard to the re-
quirements of the Department of Defense as determined by the
Secretary of Defense, the Administrator is authorized (1) to make
surveys of Government property and property management prac-
tices and obtain reports thereon from executive agencies; (2) to co-
operate with executive agencies in the establishment of reasonable
inventory levels for property stocked by them and from time to
time report any excessive stocking to the Congress and to the Di-
rector of the Office of Management and Budget; (3) to establish and
maintain such uniform Federal supply catalog system as may be
appropriate to identify and classify personal property under the
control of Federal agencies: Provided, That the Administrator and
the Secretary of Defense shall coordinate the cataloging activities
of the General Services Administration and the Department of De-
fense so as to avoid unnecessary duplication; and (4) subject to
[policy directives] regulations promulgated by the Administrator
for Federal Procurement Policy pursuant to the Office of Federal
Procurement Policy Act, to prescribe standardized forms and proce-
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dures, except such as the Comptroller General is authorized by law
to prescribe, and standard purchase specifications.
SEC. 301. The purpose of this title is to facilitate the procurement
of property and services.
APPLICATION AND PROCUREMENT METHODS
SEC. 302 (a) * * *
(c) all purchases and contracts for property and services shall be
made by advertising, as provided in section 303; except that such
purchases and contracts may be negotiated by the agency head
without advertising if-
(1) determined to be necessary in the public interest during
the period of a national emergency declared by the President
or by the Congress;
(2) the public exigency will not admit of the delay incident to
advertising;
(3) the aggregate amount involved does not exceed [$10,000]
$25, 000;
(4) for personal or professional services;
(5) for any service to be rendered by any university, college,
or other educational institution;
(6) the property or services are to be procured and used out-
side the limits of the United States and its possessions;
(7) for medicines or medical property;
(8) for property purchased for authorized resale;
(9) for perishable or nonperishable subsistence supplies;
(10) for property or services for which it is impracticable to
secure competition;
(11) the agency head determines that the purchase or con-
tract is for experimental, developmental, or research work, or
for the manufacture or furnishing of property for experimenta-
tion, development, research, or test;
(12) for property or services as to which the agency head de-
termines that the character, ingredients, or components there-
of are such that the purchase or contract should not be public-
ly disclosed;
(13) for equipment which the agency head determines to be
technical equipment, and as to which he determines that the
procurement thereof without advertising is necessary in special
.situations or in particular localities in order to assure stand-
ardization of equipment and interchangeability of parts and
that such standardization and interchangeability is necessary
in the public interest;
(14) for property or services as to which the agency head de-
termines that bid prices after advertising therefor are not rea-
sonable (either as to all or as to some part of the requirements)
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W
or have not been independently arrived at in open competition:
Provided, That no negotiated purchase or contract may be en-
tered into under this paragraph after the rejection of all or
some of the bids received unless (A) notification of the inten-
tion to negotiate and reasonable opportunity to negotiate shall
have been given by the agency head to each responsible bidder
and (B) the negotiated price is the lowest negotiated price of-
fered by any responsible supplier; or
(15) otherwise authorized by law, except that section 304 of
this Act shall apply to purchases and contracts made without
advertising under this paragraph.
(c) The authority conferred by this Act shall be in addition and
paramount to any authority conferred by any other law and shall
not be subject to the provisions of any law inconsistent herewith,
except as otherwise provided by the Office of Federal Procurement
Policy Act, and except that sections 205(b) and 206(c) of this Act
shall not be applicable to any Government corporation or agency
which is subject to the Government Corporation Control Act.
SECTION 3709 OF THE REVISED STATUTES
SEC. 3709. Unless otherwise provided in the appropriation con-
cerned or other law, purchases and contracts for supplies or serv-
ices for the Government may be made or entered into only after
advertising a sufficient time previously for proposals, except (1)
when the amount involved in any one case does not exceed
[$10,000] $25,000, (2) when the public exigencies require the im-
mediate delivery of the articles or performance of the service, (3)
when only one source of supply is available and the Government
purchasing or contracting officer shall so certify, or (4) when the
services are required to be performed by the contractor in person
and are (A) of-a technical and professional nature or (B) under Gov-
ernment supervision and paid for on a time basis. Except (1) as au-
thorized by section 29 of the Surplus Property Act of 1944 (50
U.S.C. App. 1638), (2) when otherwise authorized by law, or (3)
when the reasonable value involved in any one case does not
exceed $100, sales and contracts of sale by the Government shall be
governed by the requirements of this section for advertising.
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ACT OF JULY 27, 1965
AN ACT MAKING APPROPRIATIONS FOR THE LEGISLATIVE BRANCH FOR THE FISCAL YEAR
ENDING JUNE 30, 1966, AND FOR OTHER PURPOSES
s s s s s s
ARCHITECT OF THE CAPITOL
OFFICE OF THE ARCHITECT OF THE CAPITOL
SALARIES
For the Architect of the Capitol, Assistant Architect of the Cap-
itol, and Second Assistant Architect of the Capitol and other per-
sonal services at rates of pay provided by law, $587,600.
Appropriations under the control of the Architect of the Capitol
shall be available for expenses of travel on official business not to
exceed in the aggregate under all funds the sum of $20,000.
Hereafter the purchase of supplies and equipment and the pro-
curement of services for all branches under the Architect of the
Capitol may be made in the open market without compliance with
section 3709 of the Revised Statutes of the United States, as
amended, in the manner common among businessmen, when the
aggregate amount of the purchase or the service does not exceed
[$10,000] $25,000 in any instance.
SECTION 9 OF THE TENNESSEE VALLEY AUTHORITY ACT OF 1933
SEC. 9. (a) * * *
(b) All purchases and contracts for supplies or services, except for
personal services, made by the Corporation, shall be made after ad-
vertising, in such manner and at such times sufficiently in advance
of opening bids, as the Board shall determine to be adequate to
insure notice and opportunity for competition: Provided, That ad-
vertisement shall not be required when, (1) an emergency requires
immediate delivery of the supplies or performance of the services;
or (2) repair parts, accessories, supplemental equipment, or services
are required for supplies or services previously furnished or con-
tracted for; or (3) the aggregate amount involved in any purchase
of supplies or procurement of services does not exceed [$10,000]
$25,000; in which cases such purchases of supplies or procurement
of services may be made in the open market in the manner
common among businessmen: Provided further, That in comparing
bids and in making awards the Board may consider such factors as
relative quality and adaptability of supplies or services, the bid-
der's financial responsibility, skill, experience, record of integrity
in dealing, ability to furnish repairs and maintenance services, the
time of delivery or performance offered, and whether the bidder
has complied with the specifications.
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SECTION 303 OF THE ACT OF JULY 2, 1980
AN ACT To PROVIDE AUTHORIZATIONS FOR THE SMALL BUSINESS ADMINISTRATION,
AND FOR OTHER PURPOSES
SEC. 303. (a) The President shall transmit to the Congress not
later than January 20 of each year a Report on Small Business and
Competition which shall-
(1) examine the current role of small business in the econo-
my on an industry-by-industry basis;
(2) present current and historical data on production, em-
ployment, investment, and other economic variables for small
business in the economy as a whole and for small business in
each sector of the economy;
(3) identify economic trends which will or may affect the
small business sector and the state of competiton;
(4) examine the effects on small business and competition of
policies, programs, and activities, including, but not limited to
the Internal Revenue Code, the Employee Retirement Income
Security Act, the Securities Act of 1933, and the Securities Ex-
change Act of 1934, and regulations promulgated thereunder;
identify problem generated by such policies, programs, and ac-
tivities; and recommend legislative and administrative solu-
tions to such problems; and
(5) recommend a program for carrying out the policy de-
clared in section 302 of this Act, together with such recommen-
dations for legislation as he may deem necessary or desirable.
(b) The President also shall transmit simultaneously as an ap-
pendix to such annual report, a report by agency and department,
on the total dollar value of all Federal contracts exceeding
[$10,000] $25,000 in amount and the dollar amount (including the
subcontracts thereunder in excess of [$10,000] $25,000 awarded to
small, minority-owned and female-owned businesses.
(c) The President may transmit from time to time to the Con-
gress reports supplementary to the Report on Small Business and
Competition, each of which shall include such supplementary or re-
vised recommendations as he may deem necessary or desirable to
achieve the policy declared in section 302 of this Act.
(d) The Report on Small Business and Competition and all sup-
plementary reports transmitted under subsections (b) and (c) of this
section shall, when transmitted to Congress, be referred to the
Senate Select Committee on Small Business and the Committee on
Small Business of the House of Representatives.
SMALL BUSINESS ACT
SEC. 8. (a)(1) * *
* * * * *
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(dXl) It is the policy of the United States that small business con-
cerns, and small business concerns owned and controlled by social-
ly and economically disadvantaged individuals, shall have the
maximum practicable opportunity to participate in the perform-
ance of contracts let by any Federal agency.
(2) The clause stated in paragraph (3) shall be included in all con-
tracts let by any Federal ency except any contract which-
(A) does not exceed [$10,000] $25,000;
(B) including all subcontracts under such contracts will be
performed entirely outside of any State, territory, or possession
of the United States, the District of Columbia, or the Common-
wealth of Puerto Rico; or
(C) is for services which are personal in nature.
* ? i # i R R
(e) It shall be the duty of the Secretary of Commerce, and he is
hereby empowered, to obtain notice of all proposed [defense] pro-
curement actions of $10,000 and above [, and all civilian procure-
ment actions of $5,000 and above,] from any Federal department,
establishment, or agency engaged in procurement of supplies and
services in the United States; and to publicize such notices in the
daily publication `United States Department of Commerce Synopsis
of the United States Government Proposed Procurements, Sales,
and Contract Awards', immediately after the necessity for the pro-
curement is established; except that nothing herein shall require
publication of such notices with respect to those procurements (1)
which for security reasons are of a classified nature, or (2) which
involve perishable subsistence supplies, or (3) which are for utility
services and the procuring agency in accordance with applicable
law has predetermined the utility concern to whom the award will
be made, or (4) which are of such unusual and compelling emergen-
cy that the Government would be seriously injured if bids or offers
were permitted to be made more than 15 days after the issuance of
the invitation for bids or solicitation for proposals, or (5) which are
made by an order placed under an existing contract, or (6) which
are made from another Government department or agency, or a
mandatory source of supply, or (7) which are for personal or profes-
sional services, or (8) which are for services from educational insti-
tutions, or (9) in which only foreign sources are to be solicited, or
(10) for which it is determined in writing by the procuring agency,
with the concurrence of the Adminstrator, that advance publicity
is not appropriate or reasonable.
SEC. 15. (a)
# R t t # R
(j) Each contract for the procurement of goods and services which
has an anticipated value of less than [$10,000] $25,000 and which
is subject to small purchase procedures shall be reserved exclusive-
ly for small business concerns unless the contracting officer is
unable to obtain offers from two or more small business concerns
that are competitive with market prices and in terms of quality
and delivery of the goods or services being purchased. In utilizing
small purchase procedures, contracting officers shall, wherever cir-
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cumstances permit, choose a method of payment which minimizes
paperwork and facilitates prompt payment to contractors.
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