OFFICE OF FEDERAL PROCUREMENT POLICY ACT AMENDMENTS OF 1983

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00338R000200250027-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 10
• Document Creation Date: December 21, 2016
• Document Release Date: November 7, 2008
• Sequence Number: 27
• Publication Date: November 15, 1983
• Content Type: OPEN SOURCE

Approved For Release 2008/11/07: CIA-RDP86B00338R000200250027-6
!)uw"-~ w
S16134 CONGRESSIONAL RECORD - SENATE
of two Senate staff members, Kather-
ine Y. Cudlipp, counsel to the Com-
mittee on Environment and Public
Works, and B. Reid Detchon, staff di-
rector of the Subcommittee on Infor-
mation Management and Regulatory
Affairs of the Committee on Govern-
mental Affairs, in connection with the
trial. This resolution would authorize
Ms. Cudlipp and Mr. Detchon to pro-
vide the requested documents and tes-
timony.
The PRESIDING OFFICER. The
question is on agreeing to the resolu-
tion.
The resolution (S. Res. 276) was
agreed to.
The preamble was agreed to.
The resolution, with its preamble,
reads as follows:
8. Ras. 276
Whereas, the case of United States of
America v. Rita Al. Lavelle, Criminal No. 83-
184, is pending in the United States District
Court for the District of Columbia;
Whereas, the Department of Justice has
requested the production of certain docu-
ments and the testimony of Katherine Y.
Cudlipp, an employee of the Senate Com-
mittee on Environment and Public Works,
and B. Reid Detchon, an employee of the
Subcommittee on Information Management
and Regulatory Affairs of the Senate Com-
mittee on Governmental Affairs, at the trial
of the case;
Whereas, by the privilges of the Senate o
the control or in the possession of the
Senate can, by the judicial process, be taken
from such control or possession but by per-
mission of the Senate;
Whereas, when it appears that testimony,
documents, papers, and records under the
control of or in the possession of the Senate
are needful for use in any court for the pro-
motion of justice, the Senate will take such
action thereon an will promote the ends of
Justice consistently with the privileges and
rights of the Senate: Now, therefore, be it
Resolved, That Katherine Y. Cudlipp and
B. Reid Detchon are authorized to appear
and testify and to produce documents in the
case of United States of America v. Rita M.
Lavelle, except concerning matters for
which a privilege from disclosure should be
asserted.
Mr. BAKER. Mr. President, I move
to reconsider the vote by which the
resolution was agreed to.
Mr. BYRD. I move to lay that
motion on the table.
The motion to lay on the table was
agreed to.
HOUSE JOINT RESOLUTION 93
PLACED ON CALENDAR
Mr. BAKER. Mr. President, I ask
unanimous consent that the Banking
Committee be discharged from further
consideration of House Joint Resolu-
tion 93, a joint resolution to provide
for the awarding of a special gold
medal to Danny Thomas in recogni-
tion of his humanitarian efforts and
outstanding work as an American, and
I ask that it be placed on the calendar.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
BUDGET ACT WAIVER
Mr. BAKER. Mr. President, I ask
that the Chair lay before the Senate
Calendar Order No. 388, Senate Reso-
lution 192, the budget waiver to ac-
company S. 1001.
The PRESIDING OFFICER. The
resolution will be stated by title.
The assistant legislative clerk read
as follows:
A resolution (S. Res. 192) waiving section
402(a) of the Congressional Budget Act of
1974 with respect to the consideration of S.
1001.
The Senate proceeded to consider
the resolution.
The PRESIDING OFFICER. The
question is on agreeing to the budget
resolution waiver.
The resolution (S. Res. 192) was
agreed to as follows:
S. Rss. 192
Resolved, That pursuant to section 402(c)
of the Congressional Budget Act of 1974,
the provisions of section 402(a) of such Act
are waived with respect to the consideration
of S. 1001. Such Waiver is necessary because
S. 1001 authorizes the enactment of new
budget authority which would first become
available in fiscal year 1984, and such bill
was not reported on or before the appropri-
ate date required under section 402(a) of the
Congressional Budget Act' of 1974 for such
authorizations.
The waiver of section 402(a) is necessary
OFFICE OF FEDERAL PROCURE-
MENT POLICY - ACT AMEND-
MENTS OF 1983
Mr. BAKER. Mr. President, I ask
the Chair to lay before the Senate
Calendar Order No. 331, S. 1001.
The PRESIDING OFFICER. The
bill will be stated by title.
The assistant legislative clerk read
as follows:
A bill (8. 1001) to authorize appropri-
ations for the Office of Federal Procure-
ment Policy for an- additional 5 fiscal years.
The PRESIDING OFFICER. Is
there objection to the immediate con-
sideration of the bill?
There being no objection, the Senate
proceeded to consider the bill, which
has been reported from the Commit-
tee on Governmental Affairs with an
amendment to strike out all after the
enacting clause and insert:
8. 1001
That this Act may be cited as the "Office of
Federal Procurement Policy Act Amend-
ments of 1983".
REFERENCE
SEC. 2. Except as otherwise specifically
provided, whenever in this Act a reference is
expressed in terms of a section or other pro-
vision, the reference shall be considered to
be made to a section or other provision, re-
spectively,.of.the.Office-of Federal Procure-
merit Policy Act (41 U.B.C. 401 et seq.)
DECLARATION OF POLICCf ,
SEC. 3. Section 2 (41 U.S.C. 401) is amend-
ed to read as follows:
November 15, 1983
"DECLARATION OF POLICY
"SEC. 2. It is the policy of the Congress to
promote economy, efficiency and effective-
ness in the procurement of property and
services by the executive branch of the Fed-
eral Government by-
"(1) promoting effective competition:
"(2) establishing policies, procedures, and
practices which will provide the Govern-
ment with property and services of the req-
uisite quality, within the time needed, at
the lowest reasonable cost;
"(3) promoting the development of simpli-
fied uniform procurement processes;
"(4) promoting the participation of small
business concerns;
"(5) supporting the continuing develop-
ment of a competent, professional work
force;
"(6) eliminating fraud and waste in the
procurement process;
"(7) eliminating redundant administrative
requirements placed on contractor and Fed-
eral procurement officials;
"(8) promoting fair dealings and equitable
relationships with the private sector;
"(9) ensuring that payment is made in a
timely manner and only for value received;
"(10) requiring, to the extent practicable.
the use of commercial products to meet the
Government's needs;
"(11) requiring that personal services are
obtained in accordance with applicable per-
sonnel procedures and not by contract; and
"(12) ensuring the development of pro-
curement policies that will accommodate
emergencies and wartime as well as peace-
time requirements.".
DEFINITIONS
SEC. 4. Section 4 (41 U.S.C. 403) is amend-
ed to read as follows:
"DEFINITIONS
"SEc. 3. As used in this Act-
"(1) the term 'executive agency' means-
"(A) an executive department specified in
section 101 of title 5, United States Code;
"(B) a military department specified in
section 102 of such title:
"(C) an independent establishment as de-
fined in section 104(1) of such title; and
"(D) a wholly owned Government corpora-
tion fully subject to the provisions of chap-
ter 91 of title 31, United States Code;
"(2) the term 'procurement' includes all
stages of the process of acquiring property
or services, beginning with how the need for
such property or services is described by an
executive agency and ending with contract
completion and closeout;
"(3) the term 'procurement system' means
the integration of the procurement process,
the professional development of procure-
ment personnel, and the management struc-
ture for carrying out the procurement func
tion;
"(4) the term 'single system of Goverr
ment-wide procurement regulations' mear
(A) a single Government-wide procuremer
regulation to be issued jointly by the Gene
al Services Administration, the Department,
of Defense, and the National Aeronautics
and Space Administration, pursuant to their
respective authorities, title III of the Feder-
al Property and Administrative Services Act
of 1949 (41 U.S.C. 251 et seq.), chapter, 137
of title 10, United States Code, and the Na-
tional Aeronautics and Space Act of 1958
(42 U.S.C. 2451 et seq.), and (B) agency ac-
quisition regulations implementing and sup-
plementing the Government-wide procure-
ment regulation issued as provided in clause
(A), which shall be limited to (1) regulations
essential to implement Government-wide
policies and procedures within the agency
and (ii) additional policies and procedures
Approved For Release 2008/11/07: CIA-RDP86B00338R000200250027-6
 Approved For Release 2008/11/07: CIA-RDP86B00338R000200250027-6
November 15, 1983 CONGRESSIONAL RECORD - SENATE
answer to the question regarding the
simultaneous leasing program that he
would review it. When it came to the
Outer Continental Shelf drilling,
when it came to the oil and gas leasing
program, when it came to the morato-
rium on coal leasing, when it came to
drilling In the wilderness, when it
came to all of those things, all Judge
Clark would say is he would review
them. I am sure he will.
But then you look at what Ed Meese
said on the MacNeil-Lehrer show the
day after Judge Clark was nominated
for the job Ed Meese said nothing is
going to change at Interior. "We are
simply changing players. The policies
will remain the same."
Judge Clark did not have any re-
sponse to that statement, either. I
asked him about that specifically.
"Is Ed Meese speaking for you? Is
that the President's belief?"
I invite you to look at the transcript
of hearings. That troubled me. Presi-
dent Reagan, until this very day, has
never lifted his voice in opposition to
any of the outrageous policies and the
even more outrageous public conduct
of James Watt, and so when the Presi-
dent's No. 1 man says that nothing is
going to change, that is really trou-
bling to me.
Before the Senator from Nebraska
arrived, I said this morning that I
hope my conscience will demand that
a year from now I go apologize to
Judge Clark. I will happily do that, if I
am wrong.
Mr. EXON. Will the Senator yield
for another question?
Mr. BUMPERS. I am happy to yield.
I was about to speak for 5 minutes but
my 5-minute speech usually takes 30
minutes.
Mr. EXON. Well, whatever the Sen-
ator says, he always says very well. I
congratulate him again.
The problem the Senator outlined
did not come about overnight. Could
the Senator explain to me, since he is
on the committee of jurisdiction, what
action was taken by the previous ad-
ministration in this regard when the
Department was headed by a friend of
mine and a friend of the Senator?
What action was taken in this area by
the previous administration, if any?
Mr. BUMPERS. The Fort Chaffee
lase Is the thing that brought this
hole thing to my attention. You
iow, military reservations had never
yen leased in this country until we
wended the law in 1976. Fort Chaf-
see, Arkansas, 2 miles from my home,
covers 74,000 acres. All of a sudden,
somebody called me and told me Texas
Oil and Gas walked in, and because
the base had never been leased before,
walked out with the leases for $33,000,
or $1 per acre. Fort Chaffee was sur-
rounded on four sides by hundreds of
been leased. I pointed out earlier th
it is now estimated that that land, if
would be worth roughly $5,000 an
acre.
The PRESIDING OFFICER. The
time of the Senator has expired.
APPOINTMENT OF SENATOR De-
CONCINI AS CONFEREE TO
THE CONFERENCE ON H.R. 3959
Mr. HATFIELD. Mr. President, I ask
unanimous consent that the Senator
from Arizona (Mr. DECONCINI) be ap-
pointed as a conferee to the confer-
ence on H.R. 3959, the supplemental
appropriations bill for fiscal year 1984,
in lieu of Senator INouyE. It has been
worked out with the minority side and
the majority side.
Mr. BUMPERS. Mr. President, that
has been cleared on our side of the
aisle.
The PRESIDING OFFICER. Is
there objection? Without objection, it
is so ordered.
Mr. HATFIELD. I thank the Sena-
tor from Arkansas.
APPOINTMENT BY THE
PRESIDENT PRO TEMPORE
The PRESIDING OFFICER. The
Chair, on behalf of the President pro
tempore, appoints the following Sena-
tors as members of the Special Joint
Committee on Arrangements for the
Commemoration of Harry S. Truman's
100th Birthday: The Senator from
Missouri (Mr. DANFORTH), the Senator
from Oregon (Mr. HATFIELD), the Sen-
ator from Maryland (Mr. MATHIAS),
the Senator from West Virginia (Mr.
RANDOLPH), the Senator from North
Dakota (Mr. BURDICK), the Senator
from Ohio (Mr. METZENBAUM), and the
Senator from Missouri (Mr. EAGLE-
TON).
THE CALENDAR
Mr. BAKER. Mr. President, I apolo-
gize to the Senator from Arkansas. I
would ordinarily extend the time for
the transaction of routine morning
business, but we have a recess begin-
ning at 12 noon, and there are a few
matters of routine business that re-
quire our attention.
Could I ask the minority leader if
House Concurrent Resolution 214 has
been cleared on his side?
Mr. BYRD. Yes, Mr. President,
House Concurrent Resolution 214 has
been cleared on this side.
May I invite the attention of the ma-
jority leader to the following items
which have also been cleared for
action on this side: S. 2039, to indefi-
nitely postpone; Senate Resolution
276, to be passed; House Joint Resolu-
tion 93, to be placed on the calendar;
Senate Resolution 192, to pass; S. indictment against Ms. Lavelle charge
1001, with two
amendments- t~ end'-her with perjury before the Senate
93, and to t- Committee on Environment and
pone Public Works. The Department of Jus-
Mr. $AER. Mr. President, I thank tice has requested the production of
the minority leader. certain documents and the testimony
COMMEMORATION OF THE 20TH
ANNIVERSARY OF THE DEATH
OF JOHN F. KENNEDY
Mr. BAKER. Mr. President, I ask
unanimous consent that the Senate
turn to the consideration of House
Concurrent Resolution 214, author-
izing the rotunda of the Capitol to he
used for a ceremony on November 16.
1983, commemorating the 20th anni-
versary of the death of John F. Ken-
nedy.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
The resolution will be stated by title.
The assistant legislative clerk read
as follows:
A resolution (H. Con. Res. 214) author-
izing the rotunda of the Capitol to be used
for a ceremony on November 16, 1983, com-
memorating the 20th anniversary of the
death of John F. Kennedy.
There being no objection, the con-
current resolution (H. Con. Res. 214)
was considered and agreed to.
Mr. BAKER. Mr. President, I move
to reconsider the vote by which the
resolution was agreed to.
Mr. BYRD. I move to lay that
motion on the table.
The motion to lay on the table was
agreed to.
S. 2039 INDEFINITELY
POSTPONED
Mr. BAKER. Mr. President, I ask
unanimous consent that Calendar
Order No. 520, S. 2039, the Senate ver-
sion of the DOD appropriations bill,
be indefinitely postponed.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
AUTHORIZATION OF TESTIMONY
AND PRODUCTION OF DOCU-
MENTS
Mr. BAKER. Mr. President, I send
to the desk a resolution and ask for its
immediate consideration.
The PRESIDING OFFICER. The
resolution will be stated by title.
The assistant legislative clerk read
as follows:
A resolution (S. Res. 276) to authorize tes-
timony of Katherine Y. Cudlipp and B. Reid
Detchon and the production of documents
in the case of the United States of America
against Rita M. Lavelle.
The PRESIDING OFFICER. Is
there objection to the present consid-
eration of the resolution?
There being no objection, the Senate
proceeded to consider the resolution.
Mr. BAKER. Mr. President, the case
of United States of America against
Rita M. Lavelle is pending In the U.S.
District Court for the District of Co-
lumbia and is set for trial later this
month. Counts three and five of the
Approved For Release 2008/11/07: CIA-RDP86B00338R000200250027-6
 Approved For Release 2008/11/07: CIA-RDP86B00338R000200250027-6
November 15, 1989 CONGRESSIONAL RECORD - SENATE S 16137
SMALL PIIRCHAasa procurement experts. The General Ac- eral Accounting Office, which has
Sac. 9. (a)(1) Section 302(cX3) of the Fed- counting Office also conducted a study monitored OFPP's activities since
eral Property and Administrative Services at my request on procurement reform 1974, testified at the hearing that
Act of 1949 (41 U.S.C. 252(c)(3)) is amended and OFPP's role in the process, enti- "there have been no instances when
by striking out "$10,000" and inserting in tled "Progress of Federal Procurement the use of OFPP's regulatory authori-
lieu thereof "$25,000". Reform Under Executive Order ty has injured our "defense posture
(2) Sections (40 U.S.C. 1). 201(c), and 206(aX4) 12352," which was completed on June ? ? ? and there is nothing on the hori-
4 such Act (40 amended d b by striking ng out 1(ut 17 zon which would indicate that condi-4)) are "subject e ct to policy directives" and inserting The Oversight Subcommittee adopt- tions will change."
to regulations". ed a substitute for S: 1001 on July 25,
in lieu ieu thereof f "subject ect to rOriginally, the establishment of a
(3) Section 602(c) of such Act (40 U.S.C. which was reported unanimously by central procurement policy office in
474) is amended by inserting "except as oth- the full committee on August 1, incor- the executive branch was the first of
erwise provided by the Office of Federal porating several of the recommenda- the recommendations made by the
Procurement Policy Act, and" after "any tions of procurement experts with 149 Commission mint ycure-
law inconsistent herewith,". whom the subcommittee consulted.
(b) Clause (1) of the first sentence of sec- The substitute restores the OFPP's ment in its December 1972 report to
Lion 3709 of the Revised Statutes (41 U.S.C. regulatory authority, codifies the Congress. The Commission, which was
5) is amended by striking out "$10,000" and Congress in 1969 (Public
inserting in lieu thereof "$25,000". agency management responsibilities creatLawed ed by by) to study the Federal pro-
(c) The Act entitled "An Act making w included in Executive Order 12352, 91-
propriations for the Legislative Branch for tablishes the OFPP's leadership role curement process, based its primary
the fiscal year ending June 30, 1966, and for in the development of agency procure- recommendation on the rationale that
other purposes", approved July 27, 1965 (41 ment systems, provides authority for "effective management of the procure-
U.S.C. 6a-1), is amended by striking out the testing of innovative procurement ment process requires a high degree of
"$10,000" in the third full unnumbered methods, transfers the Federal Acqui- direction and control of basic policy."
paragraph under the heading "Office of Ar- sition Institute from the OFPP to the In 1972, Congress established the
thereof of the Capitol" and inserting in lieu General Services Administration, and Office of Federal Procurement Policy 125 (d) Clause (3) of the first sentence of sec-
thereof " se,(3) requires the OFPP to undertake stud- within the Office of Management and
tion 9(b) of the Tennessee Valley Authority ies on the feasibility of Government- Budget for 5 years to provide overall
Act of 1933 (16 U.S.C. 831h(b)) is amended wide debarment and suspension proce- direction and leadership in Federal
by striking out "$10,000" and inserting in dures for recipients of Federal grants procurement policymaking (Public
lieu thereof "$25,000". and on the extent of- competition Law 93-400). Prior to that time, pro-
The PRESIDING OFFICER. The among subcontractors. The subcom- curement policies and procedures were
question is on agreeing to the amend- mittee substitute retains the provision needlessly diverse; there was no cen-
ment. of S. 1001, as introduced, which tral office in the executive branch pre-
The amendment (No. 2610) was reauthorizes the Office for an adds- pared to provide the Congress with
agreed to. tonal 5 years but increases the author- the recommendations for' improving
Mr. COHEN. Mr. President, I am ization level from $4 million to $5 mil- the procurement process, and there
pleased that the Senate is considering lion annually. was no arbiter to reconcile agency dis-
S. 1001, the Office of Federal Procure- The reauthorization of the OFPP- agreements on procurement policy.
ment Policy Act Amendments of 1983. with regulatory authority-enjoys For these reasons, the OFPP was es-
The purpose of this legislation is to widespread support. S. 1001, as report- tablished-independent of any agency
improve the management of the Fed- ed, is cosponsored by Senators ROTH, having procurement responsibility,
eral procurement process by strength- Canes, DANaoRTH, LEvIl, BINOAMAx, empowered with directive rather than
ening the Office of Federal Procure- PaRcy, SASSER, EAGLETON, PRYOR, merely advisory authority, responsive
ment Policy and extending its authori- PROxMIRE, DURaxEERGaR, COCHRAN, to Congress, and consisting of a small,
zation. GRASsLEY, and KASSE$AUM. The bill is highly competent cadre of seasoned
The need for a central procurement also strongly endorsed by the General procurement experts-to fill this void.
policy office is even greater today Accounting Office, the U.S. Chamber The Administrator for Federal Pro-
than when the Commission on Gov- of Commerce, the American Bar Asso- cerement Policy, who is subject to
ized
ernment Procurement recommended ciation, the three former OFPP Ad- Senate confirmation, was authorized
poli-
that such an office be established over ministrators, former members of the under the 1974 act to prescribe
a decade ago. The dollar value of gov- Commission on Government Procure- ties, regulations, procedures, and
ernment contracts has almost tripled ment, and numerous contracting also- forms which the Executive agencies
during the past 10 years-from $57.5 ciations. The House passed its com- required to follow. The OFPP
billion in fiscal 1972 to $158.9 billion in panion bill, H.R. 2293, by voice vote in were prohibited, however,
fiscal 1982-with over 130,000 Federal May. was statutorily rin the prohib to ,
employees now involved in the pro- Despite ethis extensive support, the from nt interfering nrf pro daily oweverlynt ge-
curement process. The magnitude and Department of Defense raised objec- ment of agency's c remeent op-
is the
agency's properly
budgetary significance of Government tions to the bill on the grounds that erations, which
of-
s procurement of-
contracting, alone, mandate the exist- reauthorizing the OFPP with regula- ficials.
ence of a strong procurement policy tory authority would impair DOD's reauthorized
office. mission. On October 19, the Senate In 979, the was authotho
Senator ROTA and I introduced Armed Services Committee held a for 1 1 for an additional tions (Public Law
S. 1001, which simply reauthorized hearing, despite its lack of jurisdiction While fundamental Congress 4 4 years ree o re maintained the
to
the OFPP for an additional 5 years, on over S. 1001, to consider the national OFPP's ndam n n l responsibility and ef-
April 7, 1983. S. 1001 represented our security implication of restoring promote economy,
starting to
point in considering the OFPP's regulatory authority. This fectiveness in the Federal procure-
OFPP reauthorization and served as hearing only confirmed my belief that ment process, the authority which the
the basis for discussion during a hear- a strong OFPP is needed to resolve Administrator had to discharge this
ing held on April 27 by the Govern- agency disputes and turf battles if we responsibility was substantially weak-
mental Affairs Oversight of Govern- are ever to implement significant pro- ened. Public Law 96-83 revoked the
ment Management Subcommittee. In curement reforms on a Government- OFPP's regulatory authority,
authority to ty issue
addition to the testimony presented, wide basis. restricting Gov-
the Oversight Subcommittee solicited There is no evidence to support ernment-wide policy directives. As a
views and received over 35 responses DOD's contention that restoring supplement to this more limited au-
from procuring agencies, associations, OFPP's regulatory authority would thority, the Director of the OMB was
former members of the Committee on jeopardize the Department's ability to authorized to deny the promulgation
Government Procurement and other perform its mission. In fact, the Gen- of or rescind any agency rule or regu-
Approved For Release 2008/11/07: CIA-RDP86B00338R000200250027-6
 Approved For Release 2008/11/07: CIA-RDP86B00338R000200250027-6 .
816138 CONGRESSIONAL RECORD - SENATE November 15, 1/83
lation which was inconsistent with any curement regulations into a single, mittee to review proposed OFPP poli-
OFPP policy directive. simplified FAR-while providing the cies and regulations.
Since its 1979 reauthorization, the OFPP with regulatory authority to be In addition to developing the FAR
OFPP has devoted considerable re- used in those situations when these system, the OFPP submitted its pro-
sources to the establishment of a agencies are unable to agree or fail to posal for a Uniform Federal Procure-
single system of Government-wide pro- act.
enu System to Congress, as required
curement regulations, known as the The Governmental Affairs Commit- mby 83, 1982.
Federal Acquisition Regulation tee believes that S. 1001 provides The Public Law 96-- a in February Ex-
system, and the implementation he UFPS served as the basis for
of OFPP with the authority necessary to ecutive Order 12352, which was issued
procurement reforms under Executive insure the integrity of the FAR by the President in March 1982, to im-
Order 12352. While the OFPP has per- system. While the committee does not plement those reforms contained in
formed these and other functions well, intend for the OFPP Administrator to the proposal that could be accom-
considering its limited authority, there serve as "procurement czar," the corn- plished administratively. The Execu-
is a strong consensus within the pro- mittee believes that it is important to tive order requires the heads of Execu-
curement community that there is strengthen the Administrator's hand
room for improvement in the OFPP's in the regulatory process to provide fform ore s in nFed d to eral carry out
ocureme o nt, incs rd-
performance. the needed leadership. This authority ing designating F anu -
The OPPP initiated the Federal Ac- is especially important in light of the ing xecua with agency procre-
raisition Regulation (FAR) project in GAO's conclusion in its June 1983 ment executive wtresponsibility e-
Anuary 1978 and has provided policy report that without strong OFPP lead- oversee development of the procure-
oversight and assistance throughout ership for resolving conflicts among, ment system and establishing career
its development. The project is de- and insuring action by, the Executive management programs. To facilitate
sow for establish a regulatory system agencies, the FAR system may crum- agency implementation of these re-
which will curb what the Procurement We under the proliferation of supple- forms, the Executive order requires
Commission characterized as "a bur- mental agency procurement regula- the Director of the OMB, through the
densonie mass and maze o4 procure- tions. OFPP, to provide broad policy guid-
rment and procurement-related) regula- S. 1001 also provides the necessary ante and overall leadership.
tions." Once established, the FAR safeguards to prevent abuse of this au- To date, however, progress in imple-
system will consolidate the Defense thority. Joseph Wright, Deputy Direc- menting the reforms has been slow.
Acquisition. Regulations, the Federal tor of the Office of Management and According to the GAO's June 1983
Procurement Regulations, the Nation- Budget, testified at the Armed Serv- report, agencies are all but ignoring
al Aeronautics and Space Adminostra- ices Committee hearing that: the policy guidance developed by the
tion Procurement Regulations and all S. 1001 contains several safeguards which interagency task groups, which the
other agency procurement regulations. preclude OFPP from acting arbitrarily and OFPP formed to assist agencies in im-
into one system consisting of a single unilaterally in any matter. For example, plementing the Executive order. The
Government-wide procurement regula. OFPP must consult with agencies affected prime example cited by the GAO of
tion, applicable to all.-. agencies, with by its directives: it must notify the Congress agencies failing to follow OFPP guid-
such supplemental regulations essen- at least 30 days in advance of policy is- ance involves the designation of a pro-
tfaI to meet ag cy_speciBC needs. suances, it is prohibited from impairing or curement executive. Kurile 44 agencies
CompleeA a n the FAR, edwever, interfering with executive agencies' determi- had appointed their procurement ex-
has been a roblem. Oro mall the nations of their needs; and it is prohibited ecutlves as of April 1983, the GAO
p g Y, from interfering ring in any specific contract ac-
PAR was to be published in the spring tions. And in a very practical vein, more- found that of the 12 agencies sampled
of 1980. After numerous extensions, over, the limited size of OFPP's staff is an (which comprise 97 percent of the
the FAR's effective date is now sched- effective block to any significant involve- Federal procurement budget), only a
sited for April 1, 1984-a 4-year delay. ment in detailed regulatory matters. third had adopted charters which set
Once the system is in place, moreover, Nevertheless, in response to con- forth the procurement executive's re-
maintenance of the PAR is also antici- cerns raised by the chairman of the sponsibilities. Of the four agency
pated to be a problem. Revisions to Armed Services Committee, I have charters adopted, moreover, the GAO
the FAR will be processed through the agreed to clarify the language in S. found that none was complete. Absent
coordinated action of two regulatory 1001 to reflect more explicitly the a clear charter, the procurement ex-
councils, although it is unclear what Governmental Affairs Committee's in- ecutive is a title without substance.
will happen in the event of a dispute. tention when regulatory authority S. 1001, as reported, codifies the
EXeeutire Order 12352 authorizes the should be used-"in any instance in basic agency management responsibil-
OMB, through the OIPPP. to "facili- which the Administrator deternsines Hies prescribed by Executive Order
tate the resolution of conflicting that the DOD,. NASA, and GSA are 12352. The responsibilities include,
views" between the regulatory coon- unable to agree on or fail to issue Gov- first, increasing the use of effective
cr'ls. The GAO does not believe, howev- ernment-wide regulations, procedures competition in procurement, second,
er, that the OFPP is in a position to and forms in a timely manner." I do establishing clear lines of authority,
resolve such differences without regu- not feel that this language in any way accountability, and responsibility for
latory authority. weakens the authority provided to the procurement decisionmaking within
S. 1001, as reported, strengthens the Administrator. Rather, this clarifiea- the agency, third, designating a pro-
authority and functions: of the Adn- Lion merely incorporates into the scat- curement executive who shall be re-
istrator for Federal Procurement ute the clear intent expressed in the sponsible for management direction of
Policy by restoring regulatory authori- Governmental Affairs Committee the agency's procurement system, and
ty and by specifying a leadership role report accompanying S.. 1001. I would fourth, developing and maintaining a
for the Administrator in the establish- also like to clarify that OFPP policy procurement career management pro-
rt, development, and maintenance directives shall be in sufficient detail gram' in the agency. The committee
of the FAR system, by restoring the as the administrator considers neces- does not intend to legislate agency
Administrator's regulatory authority. sary to insure effective and uniform management, but rather to ensure
the committee does not intend for the Government-wide implementation. that the objectives of the OFPP's pro-
OFPP to supersede the current efforts Finally, I have agreed to broaden curement reform efforts are not
by the DOS), GSA, and NASA to issue the reporting requirement in S. 1001, thwarted by agency failure to act.
the FAR.. Rather, S. 104)1 preserves which presently requires the OFPP to To further insure effective execution
the present regulatory framework- submit any policy or regulation to the of these agency management responsi-
with the DOD, GSA, and NASA direct- Senate Governmental Affairs and bilities, S. 1001 expands the scope of
ed by the President under Executive Rouse Government Operations Com- the Administrator's authority for
Order 12352 to centirme their joint ef- rnlttees, 30 days prior to its effective "providing overall direction of pro-
forts to consolidate their common pro- date, to permit any congressional com- curement policy" to "providing leader-
Approved For Release 2008/11/07: CIA-RDP86B00338R000200250027-6
 Approved For Release 2008/11/07: CIA-RDP86B00338R000200250027-6
November 15, 1983 CONGRESSIONAL RECORD - SENATE S 16139
ship in the development of procure-
ment systems of the Executive agen-
cies." S. 1001 specifies a new function
for the Administrator to "coordinate
the development of Government-wide
procurement system standards that
shall be implemented by the Executive
agencies" in order to measure the
operational effectiveness of their pro-
curement systems. This concept of es-
tablishing performance standards
which individual agency procurement
systems would have to maintain in
order to be considered acceptable was
originally developed in the administra
tion's UFPS.
Any action on the part of Congress
short of reauthorization-with regula-
tory authority-would surely threaten
the OFPP's procurement reform ef-
forts. Without a strong OFPP to serve
as a catalyst for procurement reform,
nothing will be done. The individual
procuring agencies have not been, and
cannot be expected to be. a meaning
m i source of procurement reform.
Their energies must of necessity be
channeled to make procurement deci-
sions on a day-to-day basis. In con-
trast, the OFPP has a Government-
wide perspective, insulated from paro-
chial interests, and is able to synthe-
size the interests of all individual pro-
curing agencies, the Congress. and the
vendor community.
The OFPP, therefore, is the critical
link in our effort& to improve the Fed-
eral procurement process. S. 1001, as
reported, aowN not only preserve that
link, but strengthen ft.
Mr. President, my staff has worked
with the House Government Oper-
atious Committee staff to reconcile
the didferences between S. 1001 and its
companion bill, H.R. 2293. To imple-
amot that agreement, I am offering
the following amendments to S. 1001.
Fist. the length of the OFPP's reauf
tkoaization Is reduced to 4 years, and
its annual authorization of appsoprt~
adorns is reduced to $4.5 mi3hoa. This
represents a compromise between the
S-year reauthorization and $5 million
annual authorization provided in S.
1001 and the 3 years and $4 million in
BR. 2293.
Second, the amendments change the
definition of "procurement" to include:
the process for determining a need for
property and services. Under this re-
vised definition, the Administrator for
Federal Procurement Policy is author-
ised to prescribe policy which affects
an agency's process for determining its
needs (OMB circular A-109 on major
systems acquisition is a good esampleX
but is specifically prohibited from in-
terlering with an agency's dieternina -
Lion of need for specific property.
Third, a policy statement is added to
encourage the use of specifications
which describe an agency's needs in
terms of functions to be performed or
the performance required. This
amendment is consistent with the
specification provision in S. 338, the
Competition in Contracting Act, which
was recently passed bg the Senate.
Fourth, the amendments delete the tions and created a strong and inde-
provision which restricts the Adminis- pendent inspector general for the De-
trator's authority to procurement pay- partment of Defense. I do not think I
able from appropriated funds. This have to remind my colleagues that the
conforms S. 1001 to present law and
maintains the OFPP's jurisdiction
over procurement payable from non-
appropriated funds.
Fifth. the small purchase procedure
threshold, under which less formal
procurement procedures are used, is
Increased from $10,000 to $25,000 in
accordance with the threshold for mil-
itary agencies. This provision is also in
8.338.
These amendments provide an expe-
ditious resolution of the differences
between the committees, and I urge
their adoption.
Mr. President, it is my understand-
ing that the leadership will call up
H.R. 2293 and substitute the language
after the enacting clause with the text
of S. 1001, as amended. I subsequently
urge the adoption of H.R. 2293, as
amended. .
Mr. BYRD. Mr. President, I rise in
support of the measure offered by the
distinguished Senator from Maine, Mr.
Comm. Senator Cony and the distin-
guished Senator from Michigans; Mr.
l avin, have been in the forefront of
the fight to bring added prudence,
commonsense, and frugality to the
Federal procurement process-particu-
larly as it relates to spending by the
Department of Defense. The large ex-
penditures which the Senate has au-
thorized and appropriated for the Dee
partment of Defense for fiscal year
1984 are, in my opinion, needed and
justified. It is, however, in the area of
management practices and in the area
of efficiency and economy in contract-
fug and procurement practices that
reform is needed.
The Senate passed two amendments
of mine on the DOD appropriations
measure which address this question
of contracting and management
reform. I very much appreciate the
support that the distinguished Sena,
tors from Maine and Michigan, as well
as other Senators, gave me on those
amendments. Those amendments had
to be offered to the DOD bill because
the reauthorization measure for the
Office of Federal Procurement Policy
had been bottled up. I have heard that
the Secretary of Defense, Mr. Wein-
berger, would rather not have the
Office of Federal Procurement Policy
look too closely at his Department's
procurement practices. It is perhaps
understandable that the Secretary of
the Department of Defense believes
that his own Department can take
care of its own problems.. It is perhaps
understandable that he would rather
not have someone looking over his
shoulder. So the Secretary of Defense
fought the creation of outside watch-
dogs whose job it was to help correct
mismanagement, waste, and abusive
practices In the Department of De-
fense.
Fortunately, Mr. President, the Con-
gress overrode Mr. Weinberger's Wee-
very good job. He has caused a major
reevaluation of the way DOD procures
spare parts, for example. He has point-
ed out some serious deficiencies in the
operation of the blueribbon Defense
Science Board, for another example.
In the long run, the inspector general
is going to save the taxpayers of this
country a lot of money.
I suppose it is not surprising that
Secretary Weinberger is vigorously op-
posing the activities of the Office of
Federal Procurement Policy. The job
of that Office, which Congress created
10 years ago, is to improve the econo-
my and efficiency of the Federal pro-
curement process. I understand the
Office has performed well in those 10
years, and that is the reason that the
Government Affairs Committee has
chosen to recommend its reauthoriza-
tion. Again, we would be derelict in
our duty to the taxpayers of the
Nation if we did not take every reason-
able step to cut back on waste in the
Department of Defense. A stong na-
tional security is enhanced by frugal
spending policies and efficient man-
agement practices. Procurement
reform in the Department of Defense
is obviously needed-no serious person
can dispute tha . It is therefore puz-
zling that anyone, could seriously
object to the reauthorization of an
office which Congress created for the
explicit purpose of procurement
reform.
Yet, I understand that the managers
of this measure have had considerable
difficulty in their attempts to have
this bill considered. Therefore, I con-
gratulate them for working out their
differences with other Senators on
this matter.
Mr. President, my two amendments
passed by the Senate last week on the
DOD appropriations measure were
study and report provisions on the
questions of spare parts procurement
by DOD and spending practices at the
end of the fiscal year by DOD. Those
reports are to be done by OFPP-they
should have originally been offered to
the pending measure, but the pending
measure had been bottled up. The con-
ference committee on the DOD appro-
priations measure meets tomorrow,
and so I cannot be completely certain
that the amendments will be accepted
by the House conferees. Therefore,
Mr. Chairman,, I have arranged those
two amendments into a single amend-
ment which I now offer to the pending
measure. This is simply an added pro-
tection that those amendments will be
accepted by the House.
I understand that the managers of .
the bill are agreeable to this proce-
dure. The amendments are virtually
identical to tbose already passed by
the Senate, aid I do not believe there
should be any controversy over them.
Approved For Release 2008/11/07: CIA-RDP86B00338R000200250027-6
 Approved For Release 2008/11/07: CIA-RDP86B00338R000200250027-6 -
S 16140 CONGRESSIONAL RECORD - SENATE
They were cosponsored by Senators
COHEN, LEVIN, BOREN, HOLLINGS,
SASSER, ARMSTRONG, KASSEBAUM, AN-
DREWS, PRESSLER, PRYOR, FORD, and
MATSUNAGA.
AMENDMENT NO. 2611
(Purpose: To require the Office of Federal
Procurement Policy to review certain pro-
curement practices and procedures of the
Department of Defense and to report its
findings, conclusions, and recommenda-
tions to the Congress)
Mr. BYRD. Mr. President, I send an
amendment to the desk and ask for its
immediate consideration.
The PRESIDING OFFICER. The
amendment will be stated.
The assistant legislative clerk read
as follows:
The Senator from West Virginia (Mr.
BYRD) proposes an amendment numbered
2611.
Mr. BYRD. Mr. President, I ask
unanimous consent that further read-
ing of the amendment be dispensed
with.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
The amendment is as follows:
On page 17, after line 12, insert the fol-
lowing:
STUDY OF WEAPON SYSTEMS SPARE PARTS
PROCUREMENT BY THE DEPARTMENT OF DEFENSE
SEC. 10(a) Not later than June 1, 1984, the
Office of Federal Procurement Policy (here-
inafter in this section referred to as the
"Office") shall review the' procurement
practices, regulations, and reform proposals
and programs of the Department of Defense
relating to the procurement of spare parts
for weapon systems and shall transmit to
the Congress a report on the findings, con-
clusions, and recommendations of the Office
relating to such matters. The report shall
include (1) an evaluation of the adequacy of
the reform proposals and programs to pro-
mote practices and the development of di-
rectives which will achieve control of costs,
economy, and efficiency in the procurement
of such spare parts and (2) such recommen-
dations for legislation with respect to the
procurement of such spare parts as the
Office considers appropriate.
(b)(1) The Secretary of Defense shall fur-
nish to the Office such information on the
practices, regulations, and reform proposals
and programs of the Department of Defense
relating to the procurement of spare parts
for weapon systems as the Office considers
necessary to carry out subsection (a).
(2) The Inspector General of the Depart-
ment of Defense shall furnish to the Office
such information on the practices of the De-
partment of Defense in procuring spare
parts for weapon systems as the Inspector
General acquires during his audits of such
practices and the Office considers necessary
to carry out subsection (a).
(c) The Inspector General of the Depart-
ment of Defense shall have reasonable op-
portunity to review and comment on the
report required by subsection (a) before the
report is transmitted to the Congress. The
comments of the Inspector General shall be
included in such report.
PROCUREMENT PRACTICES OF THE DEPARTMENT
OF DEFENSE AT THE END OF THE FISCAL YEAR
SEC. 11. (a)(1) Not later than February 1,
1984, the Office of Federal Procurement
Policy (hereinafter in this section referred
to as the "Office") shall review the procure-
ment actions of the Department of Defense
during the one-week period ending Septem-
ber 30, 1983, and transmit to the Congress a
report on such review as provided in para-
graph (2). In carrying out the preceding sen-
tence, the Office shall review the regula-
tions and administrative and managerial
guidelines applicable to procurement ac-
tions of the Department of Defense during
the final quarter of a fiscal year.
(2) The report required by paragraph (1)
shall include (A) the number and dollar
amount of contracts and purchases which
were made by the Department of Defense
during the one-week period referred to in
paragraph (1), (B) the findings and conclu-
sions of the Office on whether the Depart-
ment of Defense had a bona fide need for
the property or services procured by each
such contract and purchase, (C) a list of the
contracts and purchases which were made
by the Department of Defense during such
period without formal advertising, including
the dollar amount of each such contract or
purchase, (D) a list of the contracts and
purchases made by the Department of De-
fense during such period after soliciting bids
or proposals from only one source, including
the dollar amount of each such contract and
purchase, (E) each Justification for making
each contract and purchase included in the
list under clause (C) or (D) without formal
advertising or soliciting bids or proposals
from more than one source, (F) the findings
and conclusions of the Office on whether
any regulation or administrative or manage-
rial guideline reviewed pursuant to para-
graph (1) (including the requirements of
Office of Federal Procurement Policy letter
number 81-1) were violated in making any
of the contracts or purchases reviewed pur-
suant to paragraph (1), and (G) such recom-
mendations for legislation and administra-
tive actions relating to the procurement
practices of the Department of Defense as
the Office considers appropriate to assure
economy and efficiency in procurement ac-
tions by the Department of Defense during
the final quarter of a fiscal year.
(b)(1) The Secretary of Defense shall fur-
nish to the Office such information on the
procurement actions of the Department of
Defense and the regulations and administra-
tive and managerial guidelines applicable to
such actions as the Office considers neces-
sary to carry out subsection (a).
(2) The Inspector General of the Depart-
ment of Defense shall furnish to the Office
such information on the procurement ac-
tions of the Department of Defense and the
regulations and administrative and manage-
rial guidelines applicable to such actions as
the Inspector General has acquired and the
Office considers necessary to carry out sub-
section (a).
(3) The Comptroller General of the
United States shall furnish to the Office
such information on the procurement ac-
tions of the Department of Defense and the
regulations and administrative and manage-
rial guidelines applicable to such actions as
the Comptroller General has acquired and
the Office considers necessary to carry out
subsection (a).
(4) Each official furnishing information to
the Office under paragraph (1), (2), or (3)
shall Include with such information all in-
formation by such official to the Congress,
any committee of the Congress, or any
Member of the Congress relating to the pro-
curement actions required by subsection (a)
to be reviewed by the Office.
The PRESIDING OFFICER. The
question is on agreeing to the amend-
ment.
The amendment (No. 2611) was
agreed to.
Mr. TOWER. I would like to inquire
of the Senator from Maine, the spon-
November 15, 1983
sor of S. 1001, about the proposed
amendment to section 6 of the bill. As
I understand it, this amendment
would clarify that the regulatory au-
thority of the Office of Federal Pro-
curement Policy would apply to situa-
tions where the Administrator deter-
mines that the Department of De-
fense, the National Aeronautics and
Space Administration, and the Gener-
al Services Administration have failed
to reach agreement on a Government-
wide procurement regulation, proce-
dure, or form; or where these three
agencies or any one of them have
failed to take timely action with re-
spect to the development of a Govern-
ment-wide regulation, procedure, or
form. Is this correct?
Mr. COHEN. The Senator is correct.
Mr. TOWER. The amendment of
the Senator from Maine makes refer-
ence to a failure to act in a timely
manner. I presume that OFPP would
be expected to establish reasonable
time frames in which agency action
would be required. Would this be the
expectation of the Senator from
Maine?
Mr. COHEN. Of course, I would
expect the Administrator of the OFPP
to be reasonable in all things, includ-
ing the establishment of timeframes in
which agencies are to act. While we do
not want the regulatory agencies
thwarting efforts to achieve Govern-
ment-wide procurement reforms, we
also believe that the first opportunity
ought to be given to the agencies to
see if agreement can be reached. That
requires, I think, that agencies be
given a reasonable amount of time In
which to act in response to an OFPP
initiative or changes in Federal law.
Mr. TOWER. I thank the Senator. I
should like to note that while the Sen-
ator from Maine and I have had some
differences of opinion about this legis-
lation, I appreciate the fair and open
manner in which he has tried to un-
derstand my concerns and to address
them. I think that the amendments
which are proposed to S. 1001 will clar-
ify what the appropriate role of OFPP
is. Though i am not certain that we
have yet struck the most appropriate
balance between the regulatory agen-
cies and OFPP, I think that we at
least have a reasonable basis for pro-
viding OFPP with regulatory authori-
ty.
I want to compliment the Senator
from Maine for the creative leadership
that he is providing on Federal Gov-
ernment procurement. The Senator
has devoted a tremendous amount of
time and energy to considering how
the procurement process Government-
wide can be improved. As chairman of
the Subcommittee on Oversight of
Government Management, Senator
COHEN has been a daily guardian of
our tax dollars. He has worked ener-
getically to insure that the Federal
Goverment operates effectively and ef-
ficiently. He deserves the thanks of all
Americans for the outstanding contri-
Approved For Release 2008/11/07: CIA-RDP86B00338R000200250027-6
 Approved For Release 2008/11/07: CIA-RDP86B00338R000200250027-6
November 15, 1953 CONGRESSIONAL RECORD - SENATE 816141
buttons that he has made to Govern- to the committee amendment, in the lead and exercise clout orer functional
went management. nature of a substitute, as amended. agency battles.
Mr. COHEN. I thank the distin- The committee amendment, in the In 1979 the OFPP autherfoation ex-
guished chairman of the Armed Serv- nature of a substitute, as amended, pired. The 1979 reauth, I 'ion law
ices Committee for his kind words. was agreed to. passed by Congress amrrowed the
Mr. LUGAR. Will the Senator? yield? The PRESIDING OFFICER. The scope of the Office's rye to em-
I would like to clarify for the record question is on the engrossment and phasize the importsrxe of bringing
that S. 1001 will not affect the Direc- third reading of the bill. about the Procurement Commissions
tor of Central Intelligence statutory The bill was ordered to be engrossed second recommendation: The consoli-
authority to protect intelligence for a third reading and was read the dation of the two separate procure-
sources and methods and to support third time. , ment systems that flow from the
intelligence purposes. Mr. CHILES. Mr. President, I ex- Armed Services Procurement Act of ?
Mr. COHEN. That is correct. press my strong support for S. 1001, a 1947 and title 111 of the Federal Prop-
Mr. LUGAR. I thank the Senator bill to reauthorize the Office of Feder- erty and Administrative Services Act.
and appreciate his cooperation on this al Procurement Policy. The OFPP was to concentrate on de-
important matter. As a cosponsor. I compliment Sena- veloping executive branch consensus
Mr. MATIINGLY. Will the Senator tor Cosmr, the sponsor of the legislar on a uniform procurement code pro-
yield? I would like to clarify for the tion, Senator DArrorrs, and others on posal to be submitted to Congress. The
record the proper interpretation and the Committee on Governmental Af- regulatory authority contained in the
application of the policy statement in Fairs for the thorough evaluation and 1974 act was diminished.
S. 1001 which "requires, to the extent hard work that underpins this reau- The Committee on Governmental
practicable, the use of commercial thorization effort. They are to be com- Affairs key question in addressing this
products to meet the Government's mended. year's reauthorization was whether to
needs." Mr. President, I have commented restore the regulatory authority con-
Commercial product policy is cur- previously to Senator Comm that in tained in the 1974 law.
rently interpreted by some Govern. the game of Federal Procurement The committee found that what the
ment procurement officials to limit elir reform, touchdowns do not come often Procurement Commission concluded in
Bible bidders to those who actually or easily. It is a nuts and bolts, mun- 1972 about the need to raise the visi-
maintain a certain level of ongoing lane subject matter. But Federal pro- bility of procurement activities within
sales to the general public at estab- curement. the money Government the agencies with a strong central
lished catalog or market prices. The spends for goods and services, now manager, is as valid today as it was
effect of such an interpretation is to amounts to some $159 billion a year. then- Regulatory authority specifical-
exclude from competition those mane- Every 1-percent savings represents ly provided by law was needed:
facturers who sell on a contract basis over $1.5 billion in savings to the tax- If OFPP is to be an effective focal
to various customers, including the payer. That potential alone makes the point for congressional oversiglt;
Federal Government, but who do not issues surrounding the Office of-Fed- If OFPP is to be a credible actor in
maintain commercial sales. eral Procurement Policy's authority standardizing and simplifying agency
In its proposal for a uniform Federal and mandate from Congress critically buying regulations in order to reduce
procurement system, the Office of important. paperwork, encourage small business
Federal Procurement Policy defined The OFPP sits within the White participation, stimulate mare competi-
commercial products and services as House Office of Management and tive practices, and increase the
"products or services of a type sold or Budget. It was originally created by number of suppliers; and
made available to the public at com- the Congress in 1974 as a result of the If OFPP is to coordinate and resolve
petitive prices." The implication of Commission on Government Procure- the wasteful agency turf wars that
this definition clearly is not. to impose ment's No. 1 recommendation. The arise.
a, commercial sales requirement as a Procurement Commission was a statu- Let it be clear that this bill as re-
condition to bid. tory creature of the 91st Congress and ported by the committee expresses the
It is my understanding that the com- had been assigned the task to look at congressional intent that regulatory
mercial products policy prescribed in the problems- involved with the way authority is statutorily provided to the
& 1001 is not to be interpreted in such. Government purchased what was then Administrator of OFPP, that the Con-
a. manner as to exclude contract manu- some $55 billion worth of goods from gress understands the Administrator is
facturers from competing for Govern- paperclips to air combat fighters. to be a policy leader with clout above
ment business solely because they do, The Commission found fragments- the line activities of the functional
not maintain sales to the general tion and unnecessary diversity among procurement agencies. This Is a strong
public. Federal agencies in their buying poli- OFPP we are authorizing today. As a
Mr. COHEN. That is correct. ties. Layers of regulations needlessly result, my belief is the Office will be
Mr. MATTINGLY. I thank the Sen- piled upon each other. Agencies RP- more effective in fulfilling the respon-
ator from Maine. proached similar procurement func- sibilities Congress and the President
Mr. COCHRAN. Will the Senator tions differently. Private sector suppli- assign to it. The potential for larger
yield? Section 4 of S. 1001, as reported err, particularly small business, were cost savings in the $159 billion pro-
by the Governmental Affairs Commit- discouraged from doing business with curement program is greater when
tee, provides that wholly owned Gov- the Government. Congress, in its this bill becomes law.
ernment Corporations "fully subject" desire to bring about more competitive Mr. President. Public Law 91-129,
to the provisions of chapter 91 of title business practices and fewer cost-over- the law establishing the Procurement
31. United States Code, are subject to runs, did not have an effective mecha- Commission, was a brainchild spon-
the provisions of S. 1001. It is my un- nism to help provide oversight. sored by Senator Jackson. Without his
derstanding that procurement by the I served on the Commission and was guidance and support that Commis-
Tennessee Valley Authority, which is persuaded by the merit of, its first and sion's first recommendation would
not fully subject to these provisions of foremost recommendation: A strong never have become a reality. The
law, would not be covered by S. 1001. Government-wide focal point with di- Office of Federal Procurement Policy
Mr. COHEN. That is correct. I am rectfve authority over Federal pro- would not exist today. It took someone
pleased to clarify that point for the curement policy. I helped sponsor the of his stature and credibility to push
Senator from Mississippi. creation of OFPP. The 1974 law estab- the idea through the forces of inertia
The PRESIDING OFFICER. The lishing OFPP was a clear statement and resistance to change that exist in
bill is open to further amendment. If from Congress that procurement procurement matters. It is merely a
there be no further amendments to be policy was an important subject re- small ,example of the many contribu-
proposed, the question is on agreeing quiring a central manager who could tions this Break man made but never-
Approved For Release 2008/11/07: CIA-RDP86B00338R000200250027-6
 Approved For Release 2008/11/07: CIA-RDP86B00338R000200250027-6
S 16142 CONGRESSIONAL RECORD - SENATE
theless one which I think illustrates there is competition for subcontracts
the kind of effective legislator he was. in general or on a particular contract.
He saw this small Office as an impor- This concerns me greatly, if this is
Cant. rafai-+ - .....L:...- .. Baer---- .
bec
ause it, noes not, allow any
the way Government does business. sessment by States such as Michigaas)
n
Today's action t
o
th
reau
orize OFPP which are hungary for Federal con-
continues the can-do spirit the spon- tracting dollars to determine the
sors of OFPP intend. extent to which they are losing Feder-
Mr. LEVIN. Mr. President, I am al contracting oportunities, nor does it
pleased that the Senate is finally con- permit an evaluation about whether a
sidering the reauthorization of the lack of competition at the subcontract
Office of Federal Procurement Policy. level may be a factor in the high cost
This Office, commonly known as the of Federal procurement.
OFPP, has performed an important Second, I welcome the amendment
function for almost 10 years-provid- of the minority leader relating to the
ing needed coordination for the many. purchase of spare parts within the De-
and varied procurement systems and partment of Defense. I have been
ff
o
ices in the Federal Government.
We are now close to the implementa-
tion date for the Federal acquisition
regulations, which should make the
procurement processes of the various
Federal agencies more uniform, and
OFPP is to be commended for its long
and helpful role in bringing the FAR
to fruition.
I want to discuss, for a moment, an
amendment I offered and which was
added in the Governmental Affairs
Committee to this bill and I also want
to mention an amendment to be of-
fered by the distinguished minority
leader, Senator BYRD. My amendment
requires OFPP to conduct a study by
April 1, 1984, to assess the level of
data currently available on Federal
subcontracts and the extent of compe-
tition for such contracts.
Mr. President, the chairman of the
Subcommittee on Oversight of Gov-
the Committee on Governmental Af-
fairs and the Armed Services Commit-
tee. For this reason I welcome the sug-
gestion of the Senator from West Vir-
ginia that this impartial agency study
the findings of the Congress and co-
alesce these findings and their knowl-
edge of the procurement process into
concrete recommendations which
should help to stem this horrendous
waste of our defense expenditures. I
am pleased to cosponsor his amend-
ment.
I commend the efforts of Senator
CoHEN on this bill, and I urge OFPP to
conduct these two studies with all due
diligence and thoroughness.
Mr. BAKER. Mr. President, I ask
unanimous consent that the Chair lay
before the Senate H.R. 2293, the
House companion bill.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
will shortly be offering an amendment The bill will be stated by title.
to strike a provision requiring a study The assistant legislative clerk read
of debarment and suspension of grant as follows:
recipients. I concur in that amend- Federal P Proc A bill roturem rem)ent P to Pmend ctt Office of
ment. Since offering that provision in olicy Ac, and for
committee, I have been informed that o There being purposes.
the President's Council on Integrity ng n der the b the Senate
and Efficiency in the Office of Man- Mr. t consider the bin.
agement and Budget is presently un- strike . BAKall ER.
after Mr. the Prena enacting I move
text
clause
dertaking a study of that very same of 2293 enacting the
issue and hopes to have a recommen- of S. 10 of S. 101, and n substitute the text
dation in place for legislative or ad- 01, as amended.
le
ministrative action
early spring, The motion was agreed to. In the case I cited, however, the
1984. I think we should avoid a dupli- The PRESIDING OFFICER. The combination was more than caffeine
cation of that effort. question is on engrossment of the and ephedrine sulfate. The frighten-
I am eager, however, for OFPP to amendment and the third reading of ing thing is that we do not know ex-
conduct the study on Federal subcon- the bill. actly what it was. What we do know is
tracting conduct data and n Federal For the The amendment was ordered to be that it was practically lethal. But the
past 5 gears now, I have taken a engrossed and the bill to be read a effect was almost the same as death-
death-
past st is some no the more mundgreat ane third time.
intere of
The bill was read the third time. the lives of those five kids will be
details of the Federal procurement The PRESIDING OFFICER. The ruined forever.
system, as has my good friend, Senator bill having been read the third time, sent to have pri I ask uhe RECORD on-
Mr. Presi, COHEN. And one issue that keeps su.r- the question is, Shall it pass? article printed in the Journal on
facing, almost regardless of the larger The bill (H.R. 2293), as amended, artifrom the NARD uu1non
issue pending at the time, is the lack was passed. look-alike drugs, dated August 1983.
of information the Federal Govern- Mr. BAKER. Mr. President, I move The article follows:
ment has on its subcontracts. When I to reconsider the vote by which the There being no objection, the article
have asked, I have been told that bill passed. was ordered to be printed in the
there is no breakdown of the flow of Mr. BYRD. I move to lay that RECORD, as follows:
Federal procurement dollars to the motion on the table. [From the NARD Journal, August 19831
subcontract level by region. Yet, The motion to lay on the table was THE LOOK-ALIKE RIPOFF
almost 50 percent of DOD's prime con- agreed to.
tract dollars filter down to the subcon- (By Sidney Cohen, phenomenon tractors. When I have asked, I have Amend the title so as to read: A relatively new phenomenon appeared
been told that there have asked, e for the "An Act to revise the authority and re- on the American drug scene about five year:
is no way sponsibility of the Office of Federal Pro- ago. It was the look-alike explosion, a bi-
DOD to determine the extent to which curement Policy, to authorize appropri- zarre outgrowth of the Controlled Sub-
November 15, 1983
ations for the Office of Federal Procure-
ment Policy for an additional four fiscal
years, and for other purposes.".
Mr. BAKER. Mr. President, I ask
unanimous consent to postpone indefi-
nitely consideration of S. 1001.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
LOOK-ALIKE DRUGS
Mrs. HAWKINS. Mr. President, the
following is a true story. It happened
when one of my staff members was
visiting a relative in a kidney dialysis
center near Philadelphia, Pa. During
her visit, five teenagers, in a state of
extreme shock, were rushed in from a
police ambulance and immediately
hooked up to dialysis machines. In
case you are unfamiliar with the proc-
ess, it entails sitting in a chair for 4
hours with a large needle stuck into
your arm, while a machine pumps all
your blood through a series of filters.
With a substantial part of your blood-
stream outside your body at one time,
your blood pressure drops, causing ex-
treme nausea and cramps. The ma-
chine does the work of your kidneys.
The police told the attendant nurses
this story: On their way to a party, the
kids had bought some pills they were
told were amphetamines. They were
not. The nurses never did find out
what the pills were, but the poisonous
substance caused massive kidney fail-
ure in the five teenagers. Only 16
years old, they will be tied to dialysis
machines until they die.
Mr. President, throughout the coun-
try, "look-alike" drugs are sold to un-
suspecting young people. The drugs,
usually pills, are easier to obtain than
marihuana, cocaine, or opiates. The
standard look-alike is a stimulant that
is in essence a caffeine and ephedrine
sulfate mixture. Caffeine and ephed-
rine sulfate are central nervous system
stimulants. They can cause such bi-
zarre reactions as extreme agitation,
uncontrollable nervousness, crying, de-
Approved For Release 2008/11/07: CIA-RDP86B00338R000200250027-6