S.Amdt. 5277

1. Adds Subtitle G--Governmentwide Contracting Provisions SEC. 861. SHORT TITLE on page 240, between lines 6 and 7

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   Inserted: Subtitle G--Governmentwide Contracting Provisions SEC. 861. SHORT TITLE.

   Inserted: This subtitle may be cited as the "Accountability in Government Contracting Act".

   Inserted: SEC. 862. DEFINITIONS.

   Inserted: In this subtitle:

   Inserted: (1) Except as otherwise provided, the term "executive agency" has the meaning given such term in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).

   Inserted: (2) The term "assisted acquisition" means the type of interagency contracting through which acquisition officials of an agency (the servicing agency) award a contract or task or delivery order for the procurement of goods or services on behalf of another agency (the requesting agency). The term includes acquisitions under section 1535 of title 31, United States Code (commonly referred to as the "Economy Act"), title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.), the Clinger-Cohen Act of 1996 (division E of Public Law 104-106), and the Government Management Reform Act of 1994 (Public Law 103-356; 108 Stat. 3410).

   Inserted: (3) The term "multi-agency contract" means a task-order or delivery-order contract established for use by more than one agency to obtain supplies and services, consistent with the Economy Act (31 U.S.C. 1535). The term does not include contracts established and used solely within one executive department or independent establishment, as those terms are specified in section 101 of title 5, United States Code, and defined in section 104(1) of such title, respectively.

   Inserted: SEC. 863. FEDERAL ACQUISITION WORKFORCE.

   Inserted: (a) Designation of Acquisition Workforce.--

   Inserted: (1) In general.--Section 37 of the Office of Federal Procurement Policy Act (41 U.S.C. 433) is amended by adding at the end the following new subsection:

   Inserted: "(j) Acquisition Workforce Designation.--

   Inserted: "(1) In general.--The Federal Acquisition Regulation shall be amended to designate those positions that are acquisition positions in all executive agencies except the Department of Defense. Such positions shall principally perform duties and have responsibilities related to acquisition (as that term is defined in section 4).

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   Inserted: "(2) Required positions.--The positions designated under paragraph (1) shall include, at a minimum, the following positions:

   Inserted: "(A) Program management.

   Inserted: "(B) Systems planning, research, development, engineering, and testing.

   Inserted: "(C) Procurement, including contracting.

   Inserted: "(D) Industrial property management.

   Inserted: "(E) Logistics.

   Inserted: "(F) Quality control and assurance.

   Inserted: "(G) Manufacturing and production.

   Inserted: "(H) Business, cost estimating, financial management, and auditing.

   Inserted: "(I) Education, training, and career development.

   Inserted: "(J) Construction.

   Inserted: "(K) Joint development and production with other executive agencies and foreign countries.

   Inserted: "(3) Management headquarters activities.--The positions designated under paragraph (1) may include positions that are in management headquarters activities and in management headquarters support activities and perform acquisition-related functions.

   Inserted: "(4) Other acquisition positions.--The Federal Acquisition Regulation, as amended under paragraph (1), may provide that the Chief Acquisition Officer or Senior Procurement Executive, as appropriate, of an executive agency may designate as acquisition positions those additional positions that perform significant acquisition-related functions within that agency.

   Inserted: "(5) Database identification of acquisition workforce.--The Director of the Office of Management and Budget, in conjunction with the Director of the Office of Personnel Management, shall add a data element to the appropriate database to allow for the identification and tracking of members of the Federal acquisition workforce.

   Inserted: "(6) Applicability.--The Department of Defense shall continue to be subject to the guidelines under section 1721 of title 10, United States Code.".

   Inserted: (2) Deadline for regulations.--Not later than one year after the date of the enactment of this Act, the Federal Acquisition Regulation shall be amended as described under subsection (j) of section 37 of the Office of Federal Procurement Policy Act (41 U.S.C. 433), as added by paragraph (1).

   Inserted: (3) Report.--Not later than one year after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives a report on the designation of acquisition positions pursuant to subsection (j) of section 37 of the Office of Federal Procurement Policy Act (41 U.S.C. 433), as added by paragraph (1).

   Inserted: (b) Government-Wide Acquisition Intern Program.--

   Inserted: (1) In general.--The Office of Federal Procurement Policy Act (41 U.S.C. 403 et seq.) is amended by adding at the end the following new section:

   Inserted: "SEC. 44. GOVERNMENT-WIDE ACQUISITION INTERN PROGRAM.

   Inserted: "(a) Establishment of Program.--The Administrator, in consultation with the Director of the Office of Personnel and Management, shall establish a government-wide Acquisition Intern Program to strengthen the ability of the Federal acquisition workforce to carry out its key missions through the Federal procurement process. The Administrator shall have a goal of involving not less than 200 college graduates per year in the Acquisition Intern Program.

   Inserted: "(b) Administration of Programs.--The Associate Administrator for Acquisition Workforce Programs designated under section 855(a) of the National Defense Authorization Act for Fiscal Year 2008 (41 U.S.C. 433a(a)) shall be responsible for the management, oversight, and administration of the Acquisition Intern Program and shall give consideration to integrating existing intern programs.

   Inserted: "(c) Terms of Acquisition Intern Program.--

   Inserted: "(1) Business-related course work requirement.--

   Inserted: "(A) In general.--Each participant in the Acquisition Intern Program shall have completed 24 credit hours of business-related college course work by not later than 3 years after admission into the program.

   Inserted: "(B) Certification criteria.--The Administrator shall establish criteria for certifying the completion of the course work requirement under subparagraph (A).

   Inserted: "(2) Structure of program.--The Acquisition Intern Program shall consist of one year of preparatory education and training in Federal procurement followed by 3 years of on-the-job training and development focused on Federal procurement but including rotational assignments in other functional areas.

   Inserted: "(3) Employment status of interns.--Interns participating in the Acquisition Intern Program shall be considered probationary employees without civil service protections under chapter 33 of title 5, United States Code. In administering any personnel ceiling applicable to an executive agency or a unit of an executive agency, an individual assigned as an intern under the program shall not be counted.

   Inserted: "(4) Employment status of current federal employees.--Current Federal employees may participate in the Acquisition Intern Program without losing existing benefits and rights.

   Inserted: "(5) Agency management of program.--The Chief Acquisition Officer or the Senior Procurement Executive of each executive agency, as appropriate, in consultation with the Chief Human Capital Officer of such agency, shall establish a central intern management function in the agency to supervise and manage interns participating in the Acquisition Intern Program.".

   Inserted: (2) Clerical amendment.--The table of contents in section 1(b) of such Act is amended by adding at the end the following new item:

   Inserted: "Sec. 44. Government-wide Acquisition Intern Program.".

   Inserted: (c) Acquisition Workforce Development Fund.--

   Inserted: (1) Establishment.--There is hereby established in the Treasury of the United States a fund to be known as the "Acquisition Workforce Development Fund" (in this subsection referred to as the "Fund").

   Inserted: (2) Use of funds.--Amounts in the Fund shall be used for--

   Inserted: (A) the establishment and operations of the Acquisition Intern Program and the Contingency Contracting Corps; and

   Inserted: (B) the costs of administering the Fund, not to exceed 10 percent of the total funds available in the Fund.

   Inserted: (3) Deposits to fund.--The Fund shall consist of amounts appropriated or otherwise made available to the Fund.

   Inserted: (d) Qualifications of Chief Acquisition Officers.--Section 16(a) of the Office of Federal Procurement Policy Act (41 U.S.C. 414) is amended by adding at the end the following new paragraph:

   Inserted: "(2) Chief Acquisition Officers shall be appointed from among persons who have an extensive management background.".

   Inserted: SEC. 864. REQUIREMENT FOR PURCHASE OF PROPERTY AND SERVICES PURSUANT TO MULTIPLE AWARD CONTRACTS.

   Inserted: (a) Regulations Required.--Not later than one year after the date of the enactment of this Act, the Federal Acquisition Regulation shall be amended to require enhanced competition in the purchase of property and services by all executive agencies pursuant to multiple award contracts.

   Inserted: (b) Content of Regulations.--

   Inserted: (1) In general.--The regulations required by subsection (a) shall provide, at a minimum, that each individual purchase of property or services in excess of the simplified acquisition threshold that is made under a multiple award contract shall be made on a competitive basis unless a contracting officer--

   Inserted: (A) waives the requirement on the basis of a determination that--

   Inserted: (i) one of the circumstances described in paragraphs (1) through (4) of section 303J(b) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(b)) or section 2304c(b) of title 10, United States Code, applies to such individual purchase; or

   Inserted: (ii) a law expressly authorizes or requires that the purchase be made from a specified source; and

   Inserted: (B) justifies the determination in writing.

   Inserted: (2) Competitive basis procedures.--For purposes of this subsection, an individual purchase of property or services is made on a competitive basis only if it is made pursuant to procedures that--

   Inserted: (A) except as provided in paragraph (3), require fair notice of the intent to make that purchase (including a description of the work to be performed and the basis on which the selection will be made) to be provided to all contractors offering such property or services under the multiple award contract; and

   Inserted: (B) afford all contractors responding to the notice a fair opportunity to make an offer and have that offer fairly considered by the official making the purchase.

   Inserted: (3) Exception to notice requirement.--

   Inserted: (A) In general.--Notwithstanding paragraph (2), and subject to subparagraph (B), notice may be provided to fewer than all contractors offering such property or services under a multiple award contract as described in subsection (d)(2)(A) if notice is provided to as many contractors as practicable.

   Inserted: (B) Limitation on exception.--A purchase may not be made pursuant to a notice that is provided to fewer than all contractors under subparagraph (A) unless--

   Inserted: (i) offers were received from at least 3 qualified contractors; or

   Inserted: (ii) a contracting officer of the executive agency determines in writing that no additional qualified contractors were able to be identified despite reasonable efforts to do so.

   Inserted: (c) Public Notice Requirements Related to Sole Source Task or Delivery Orders.--

   Inserted: (1) In general.--Not later than one year after the date of the enactment of this Act, the Federal Acquisition Regulation shall be amended to require the head of each executive agency--

   Inserted: (A) to publish on FedBizOpps notice of all sole source task or delivery orders in excess of the simplified acquisition threshold that are placed against multiple award contracts not later than 14 days after such orders are placed, except in the event of extraordinary circumstances or classified orders; and

   Inserted: (B) to publish on the website of the agency and through a government-wide website selected by the Administrator for Federal Procurement Policy the determination required under subsection (b)(1) related to sole source task or delivery orders placed against multiple award contracts not later than 14 days after such orders are placed, except in the event of extraordinary circumstances or classified orders.

   Inserted: (2) Exception.--This subsection does not require the public availability of information that is exempt from public disclosure under section 552(b) of title 5, United States Code.

   Inserted: (d) Definitions.--In this section:

   Inserted: (1) The term "individual purchase" means a task order, delivery order, or other purchase.

   Inserted: (2) The term "multiple award contract" means--

   Inserted: (A) a contract that is entered into by the Administrator of General Services under the multiple award schedule program referred to in section 2302(2)(C) of title 10, United States Code;

   Inserted: (B) a multiple award task order contract that is entered into under the authority of sections 2304a through 2304d of title 10, United States Code, or sections 303H through 303K of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253h through 253k); and

   Inserted: (C) any other indefinite delivery, indefinite quantity contract that is entered into by the head of an executive agency with 2 or more sources pursuant to the same solicitation.

   Inserted: (e) Applicability.--The regulations required by subsection (a) shall apply to all individual purchases of property or services that are made under multiple award contracts on or after such effective date, without regard to whether the multiple award contracts were entered into before, on, or after such effective date.

   Inserted: SEC. 865. LIMITATION ON LENGTH OF CERTAIN NONCOMPETITIVE CONTRACTS.

   Inserted: (a) Civilian Agency Contracts.--Section 303(d) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(d)) is amended by adding at the end the following new paragraph:

   Inserted: "(3)(A) The contract period of a contract described in subparagraph (B) that is entered into by an executive agency pursuant to the authority provided under subsection (c)(2)--

   Inserted: "(i) may not exceed the time necessary--

   Inserted: "(I) to meet the unusual and compelling requirements of the work to be performed under the contract; and

   Inserted: "(II) for the executive agency to enter into another contract for the required goods or services through the use of competitive procedures; and

   Inserted: "(ii) may not exceed 270 days unless the head of the executive agency entering into such contract determines that exceptional circumstances apply.

   Inserted: "(B) This paragraph applies to any contract in an amount greater than the simplified acquisition threshold.".

   Inserted: (b) Defense Contracts.--Section 2304(d) of title 10, United States Code, is amended by adding at the end the following new paragraph:

   Inserted: "(3)(A) The contract period of a contract described in subparagraph (B) that is entered into by an agency pursuant to the authority provided under subsection (c)(2)--

   Inserted: "(i) may not exceed the time necessary--

   Inserted: "(I) to meet the unusual and compelling requirements of the work to be performed under the contract; and

   Inserted: "(II) for the agency to enter into another contract for the required goods or services through the use of competitive procedures; and

   Inserted: "(ii) may not exceed 270 days unless the head of the agency entering into such contract determines that exceptional circumstances apply.

   Inserted: "(B) This paragraph applies to any contract in an amount greater than the simplified acquisition threshold.".

   Inserted: SEC. 866. REGULATIONS ON USE OF TIERED EVALUATIONS OF OFFERS FOR CONTRACTS AND TASK OR DELIVERY ORDERS UNDER CONTRACTS.

   Inserted: (a) Regulations Required.--Not later than one year after the date of the enactment of this Act, the Federal Acquisition Regulation shall be amended to provide guidance for executive agencies on the use of tiered evaluations of offers for contracts and for task or delivery orders under contracts.

   Inserted: (b) Elements.--The regulations prescribed under subsection (a) shall include a prohibition on the initiation by a contracting officer of a tiered evaluation of an offer for a contract or for a task or delivery order under a contract unless the contracting officer--

   Inserted: (1) has conducted market research in accordance with part 10 of the Federal Acquisition Regulation in order to determine whether or not a sufficient number of qualified small businesses are available to justify limiting competition for the award of such contract or task or delivery order under applicable law and regulations;

   Inserted: (2) is unable, after conducting market research under paragraph (1), to make the determination described in that paragraph; and

   Inserted: (3) includes in the contract file a written explanation of why such contracting officer was unable to make such determination.

   Inserted: (c) Applicability.--The Department of Defense shall continue to be subject to the guidance prescribed by the Secretary of Defense under section 816 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 10 U.S.C. 2305 note).

   Inserted: SEC. 867. GUIDANCE ON USE OF COST-REIMBURSEMENT CONTRACTS.

   Inserted: (a) In General.--Not later than 180 days after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall promulgate in the Federal Acquisition Regulation, regulations outlining the proper use of cost-reimbursement contracts.

   Inserted: (b) Content.--The regulations promulgated under subsection (a) shall include at minimum guidance regarding--

   Inserted: (1) when and under what circumstances cost reimbursement contracts are appropriate;

   Inserted: (2) the acquisition plan findings necessary to support a decision to use cost reimbursement contracts; and

   Inserted: (3) the acquisition workforce resources necessary to award and manage cost reimbursement contracts.

   Inserted: (c) Inspector General Review.--The Inspector General for each executive agency shall develop and submit as part of its annual audit plan a review of the use of cost reimbursement contracts.

   Inserted: SEC. 868. LINKING OF AWARD AND INCENTIVE FEES TO ACQUISITION OUTCOMES.

   Inserted: (a) Guidance on Linking of Award and Incentive Fees to Acquisition Outcomes.--

   Inserted: Not later than one year after the date of the enactment of this Act, the Federal Acquisition Regulation shall be amended to provide executive agencies other than the Department of Defense with instructions, including definitions, on the appropriate use of award and incentive fees in Federal acquisition programs.

   Inserted: (b) Elements.--The regulations under subsection (a) shall--

   Inserted: (1) ensure that all new contracts using award fees link such fees to acquisition outcomes (which shall be defined in terms of program cost, schedule, and performance);

   Inserted: (2) establish standards for identifying the appropriate level of officials authorized to approve the use of award and incentive fees in new contracts;

   Inserted: (3) provide guidance on the circumstances in which contractor performance may be judged to be "excellent" or "superior" and the percentage of the available award fee which contractors should be paid for such performance;

   Inserted: (4) establish standards for determining the percentage of the available award fee, if any, which contractors should be paid for performance that is judged to be "acceptable", "average", "expected", "good", or "satisfactory";

   Inserted: (5) ensure that no award fee may be paid for contractor performance that is judged to be below satisfactory performance or performance that does not meet the basic requirements of the contract;

   Inserted: (6) provide specific direction on the circumstances, if any, in which it may be appropriate to roll over award fees that are not earned in one award fee period to a subsequent award fee period or periods;

   Inserted: (7) ensure consistent use of guidelines and definitions relating to award and incentive fees across the Federal Government;

   Inserted: (8) ensure that each executive agency--

   Inserted: (A) collects relevant data on award and incentive fees paid to contractors; and

   Inserted: (B) has mechanisms in place to evaluate such data on a regular basis;

   Inserted: (9) include performance measures to evaluate the effectiveness of award and incentive fees as a tool for improving contractor performance and achieving desired program outcomes; and

   Inserted: (10) provide mechanisms for sharing proven incentive strategies for the acquisition of different types of products and services among contracting and program management officials.

   Inserted: (c) Applicability.--The Department of Defense shall continue to be subject to guidance on award fees issued by the Department pursuant to section 814 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2321).

   Inserted: SEC. 869. DEFINITIZING OF LETTER CONTRACTS.

   Inserted: (a) Guidance and Instructions.--Not later than one year after the date of the enactment of this Act, the Federal Acquisition Regulation shall be amended to ensure that executive agencies other than the Department of Defense implement and enforce requirements applicable to undefinitized contractual actions.

   Inserted: (b) Elements.--The regulations prescribed pursuant to subsection (a) shall address, at a minimum--

   Inserted: (1) the circumstances in which it is, and is not, appropriate to use undefinitized contractual actions;

   Inserted: (2) approval requirements (including thresholds) for the use of undefinitized contractual actions;

   Inserted: (3) procedures for ensuring that timelines for the definitization of undefinitized contractual actions are met;

   Inserted: (4) procedures for ensuring compliance with regulatory limitations on the obligation of funds pursuant to undefinitized contractual actions;

   Inserted: (5) procedures for ensuring compliance with regulatory limitations on profit or fees with respect to costs incurred before the definitization of an undefinitized contractual action; and

   Inserted: (6) reporting requirements for undefinitized contractual actions that fail to meet required timelines for definitization or fail to comply with regulatory limitations on the obligation of funds or on profit or fees.

   Inserted: (c) Annual Report.--

   Inserted: (1) In general.--The Administrator for Federal Procurement Policy shall submit to Congress an annual report on the use of undefinitized contracts and orders over the preceding fiscal year.

   Inserted: (2) Content.--The annual report under paragraph (1) shall include--

   Inserted: (A) the number and value of undefinitized actions;

   Inserted: (B) the reasons for awarding undefinitized contracts or issuing undefinitized orders;

   Inserted: (C) the average number of days such actions were undefinitized; and

   Inserted: (D) the actions taken to better enable contracts and orders to be definitized when awarded or issued.

   Inserted: (d) Applicability.--The Department of Defense shall continue to be subject to guidance on definitizing of letter contracts issued by the Department pursuant to section 809 of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110-181).

   Inserted: SEC. 870. PREVENTING ABUSE OF INTERAGENCY ACQUISITIONS AND ENTERPRISE-WIDE CONTRACTS.

   Inserted: (a) Office of Management and Budget Survey of Interagency Acquisitions and Enterprise-Wide Contracts.--

   Inserted: (1) In general.--Not later than 180 days after the date of the enactment of this Act, the Director of the Office of Management and Budget shall submit to Congress a comprehensive survey on interagency acquisitions and enterprise-wide contracts, including their frequency of use and management controls.

   Inserted: (2) Content.--The survey under paragraph (1) shall include the following information:

   Inserted: (A) The name and number of interagency contracts with aggregate ceilings in excess of $50,000,000 (including all options) that are currently in effect or under solicitation, the rationale or authority for establishing such contracts, the scope of such contracts, the servicing agencies, the ceiling amount and the number of contractors under each contract, and activity levels (in terms of primary users and value of orders issued) under each contract for the most recent fiscal year.

   Inserted: (B) The name and authorities of the agencies conducting assisted acquisitions (excluding mandatory sources) and the level of assisted acquisition activity (in terms of primary users and value of obligations created for the most recent fiscal year).

   Inserted: (C) The name and number of enterprise-wide contracts that are currently in effect or under solicitation, the rationale or authority for establishing such contracts, the scope of such contracts, the servicing agencies, the ceiling amount and the number of contractors under each contract, and activity levels (in terms of primary users and value of orders issued) under each contract for the most recent fiscal year.

   Inserted: (3) Publication.--The Director of the Office of Management and Budget shall make the survey under this subsection publicly available on the website of the Office, subject to the limitations established pursuant to section 552(b) of title 5, United States Code.

   Inserted: (b) Review of Cost-Effectiveness.--Not later than 180 days after submission of the survey required under subsection (a)(1), the Administrator for Federal Procurement Policy, in consultation with the Administrator of General Services and the Secretary of Defense, shall review all contracts identified in the survey and determine whether each contract is cost effective or redundant considering all existing contracts available for multi-agency use. In determining whether a contract is cost effective, the Administrator for Federal Procurement Policy shall consider all direct and indirect costs to the Federal Government of awarding and administering the contract and the impact the contract will have on the ability of the Federal Government to leverage its purchasing power. Any determination under this subsection that an enterprise-wide contract of the Department of Defense is not cost effective, or is redundant, shall be made jointly by the Administrator for Federal Procurement Policy and the Secretary of Defense.

   Inserted: (c) Office of Management and Budget Guidelines.--

   Inserted: (1) Guidelines on interagency acquisitions.--Not later than 180 days after submission of the survey required under subsection (a)(1), the Director of the Office of Management and Budget, in consultation with the Administrator of General Services and the Secretary of Defense, shall issue guidelines to assist the heads of executive agencies in improving the management of interagency acquisitions.

   Inserted: (2) Guidelines on enterprise-wide contracts.--Not later than 180 days after submission of the survey required under subsection (a)(1), the Director of the Office of Management and Budget, the Administrator of General Services, and the Secretary of Defense shall jointly issue guidelines to assist the heads of executive agencies in improving the management of enterprise-wide contracts.

   Inserted: (3) Content.--The guidelines under paragraphs (1) and (2) shall include the following information, as applicable:

   Inserted: (A) Procedures for the creation, continuation, and use of interagency acquisitions or enterprise-wide contracts to maximize competition, measure cost effectiveness and savings, deliver best value to executive agencies, and minimize waste, fraud, and abuse.

   Inserted: (B) Categories of contracting appropriate for interagency acquisition or enterprise-wide contracts.

   Inserted: (C) Requirements for training acquisition workforce personnel in the proper use of interagency acquisitions or enterprise-wide contracts.

   Inserted: (d) Regulations.--

   Inserted: (1) Regulations required for assisted acquisitions.--Not later than one year after the date of the enactment of this Act, the Federal Acquisition Regulation shall be revised to require that all assisted acquisitions include--

   Inserted: (A) a written agreement between the requesting agency and the servicing agency assigning responsibility for the administration of the contract; and

   Inserted: (B) a determination that an assisted acquisition is in the best interests of the Federal Government.

   Inserted: (2) Regulations required for multi-agency and enterprise-wide contracts.--

   Inserted: (A) In general.--Subject to subparagraph (B), not later than one year after the date of the enactment of this Act, the Federal Acquisition Regulation shall be amended to require any new multi-agency or enterprise-wide contract to be supported by a business case analysis justifying the award and detailing the administration of the contract, including an analysis of all direct and indirect costs to the Federal Government of awarding and administering the contract and the impact the contract will have on the ability of the Federal Government to leverage its purchasing power.

   Inserted: (B) Department of defense enterprise-wide contracts.--In the case of an enterprise-wide contract of the Department of Defense, the Department shall conduct a business case analysis in accordance with regulations implementing the requirements of section 2330 of title 10, United States Code, including a review of the available Multiple Award Schedule pursuant to section 2302(2)(C) of such title and Government-wide acquisition contracts under section 11302(e) of title 40, United States Code, to determine whether such contracts may be used to fulfill the needs of the Department more economically or expeditiously.

   Inserted: (e) Required Approvals.--

   Inserted: (1) Approval required for creation of multi-agency and enterprise-wide contracts.--Following the promulgation of the regulations required under subsection (d)(2), no executive agency may award a new multi-agency or enterprise-wide contract without a business case that has been approved in accordance with such regulations.

   Inserted: (2) Approval required for continuation of multi-agency and enterprise-wide contracts.--No executive agency may exercise an option on an existing multi-agency or enterprise-wide contract identified as non-cost effective or redundant in the review required under subsection (b) without the written approval of the Director of the Office of Management and Budget.

   Inserted: (3) Department of defense contracts.--In the case of the Department of Defense, the approvals required under this subsection shall be the responsibility of the senior officials designated under section 2330 of title 10, United States Code, and the individuals to whom responsibility for specific categories of acquisitions have been assigned in accordance with section 812(b) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 10 U.S.C. 2330 note).

   Inserted: (f) Enterprise-Wide Contract Defined.--In this section, the term "enterprise-wide contract" means a single agency task or delivery order contract with an aggregate contract ceiling in excess of $1,000,000,000 that is created to address common agency-wide needs that could be or have been satisfied through an existing Multiple Award Schedule pursuant to section 2302(2)(C) of title 10, United States Code, or Government-wide acquisition contracts under section 11302(e) of title 40, United States Code.

   Inserted: SEC. 871. LEAD SYSTEMS INTEGRATORS.

   Inserted: (a) Study.--Not later than one year after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall--

   Inserted: (1) develop a government-wide definition of lead systems integrators, giving consideration to the definition provided in section 802(d)(1) of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. 2410p note); and

   Inserted: (2) complete a study on the use of such integrators by non-defense agencies.

   Inserted: (b) Guidance.--Not later than 180 days after the study under subsection (a)(2) is completed, the Administrator for Federal Procurement Policy shall issue guidance for non-defense agencies on the appropriate use of lead system integrators to ensure that they are used in the best interests of the Federal Government.

   Inserted: SEC. 872. LIMITATIONS ON TIERING OF SUBCONTRACTORS.

   Inserted: (a) Regulations.--Not later than one year after the date of the enactment of this Act, the Federal Acquisition Regulation shall be amended, for executive agencies other than the Department of Defense, to minimize the excessive use by contractors of subcontractors or tiers of subcontractors. The regulations shall ensure that the contractors and subcontractors do not receive indirect costs or profit when the contractors or subcontractors do not perform significant work under the contract.

   Inserted: (b) Covered Contracts.--This section applies to any cost-reimbursement type contract or task or delivery order in an amount greater than the simplified acquisition threshold (as defined by section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)).

   Inserted: (c) Rule of Construction.--Nothing in this section shall be construed as limiting the ability of the Department of Defense to implement more restrictive limitations on the tiering of subcontractors.

   Inserted: (d) Applicability.--The Department of Defense shall continue to be subject to guidance on limitations on tiering of subcontractors issued by the Department pursuant to section 852 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2321).

   Inserted: SEC. 873. ENSURING THAT FEDERAL AGENCIES APPROPRIATELY ASSESS THE RISK OF CONTRACTORS PERFORMING FUNCTIONS CLOSELY ASSOCIATED WITH INHERENTLY GOVERNMENTAL FUNCTIONS.

   Inserted: (a) Review of Policies.--

   Inserted: (1) In general.--The Administrator for Federal Procurement Policy shall review the policies established by and pursuant to Part 7 of the Federal Acquisition Regulation to determine whether such policies--

   Inserted: (A) are effective in identifying and preventing the award of contracts for work that is an inherently governmental function;

   Inserted: (B) identify specific issues that should be addressed in agency acquisition plans when contracting for services that are closely associated with inherently governmental functions;

   Inserted: (C) require executive agency personnel to formally assess and document the risk associated with the use of contractors to perform such functions, the actions taken to mitigate any identified risks, and the effectiveness of the mitigating actions; and

   Inserted: (D) are consistently and appropriately reflected in policies established by each executive agency.

   Inserted: (2) Scope.--The review under paragraph (1) shall apply only to those executive agencies that awarded contracts and issued orders in a total amount of at least $1,000,000,000 in the latest fiscal year for which data is available.

   Inserted: (b) Reports Required.--

   Inserted: (1) Report on review of policies.--Not later than 180 days after the date of the enactment of this Act, the Administrator shall submit to the Committee on Homeland Security and Governmental Affairs and the Committee on Armed Services of the Senate and the Committee on Oversight and Government Reform and the Committee on Armed Services of the House of Representatives a report on the results of the review conducted pursuant to subsection (a).

   Inserted: (2) Recommendations.--Not later than one year after the date of the enactment of this Act, the Administrator shall submit to the Committee on Homeland Security and Governmental Affairs and the Committee on Armed Services of the Senate and the Committee on Oversight and Government Reform and the Committee on Armed Services of the House of Representatives a report with any recommendations of the Administrator for changes in policies based on the review conducted pursuant to subsection (a).

   Inserted: SEC. 874. IMPROVEMENTS TO THE FEDERAL PROCUREMENT DATA SYSTEM.

   Inserted: (a) Enhanced Transparency for Interagency Contracting and Other Transactions.--Not later than one year after the date of the enactment of this Act, the Director of the Office of Management and Budget shall direct appropriate revisions to the Federal Procurement Data System or any successor system to facilitate the collection of complete, timely, and reliable data on interagency contracting actions and on transactions other than contracts, grants, and cooperative agreements issued pursuant to section 2371 of title 10, United States Code or similar authorities. The Director shall ensure that data, consistent with what is collected for contract actions, is obtained on--

   Inserted: (1) interagency contracting actions, including data at the task or delivery-order level; and

   Inserted: (2) other transactions, including the initial award and any subsequent modifications awarded or orders issued.

   Inserted: (b) Timely and Accurate Transmission of Information Included in Federal Procurement Data System.--Section 19(d) of the Office of Federal Procurement Policy Act (41 U.S.C. 417(d)) is amended to read as follows:

   Inserted: "(d) Transmission and Data Entry of Information.--The head of each executive agency shall ensure the accuracy of the information included in the record established and maintained by such agency under subsection (a) and shall timely transmit such information to the General Services Administration for entry into the Federal Procurement Data System referred to in section 6(d)(4), or any successor system.".

   Inserted: SEC. 875. USE OF AVAILABLE FUNDS FOR REGULATIONS AND REPORTS.

   Inserted: The promulgation of regulations and the production of reports required by this subtitle shall be carried out using available funds.

   Inserted: SEC. 876. ONE-YEAR EXTENSION OF AUTHORITY.

   Inserted: Section 831 of the Homeland Security Act of 2002 (6 U.S.C. 391(a)) is amended--

   Inserted: (1) in subsection (a)--

   Inserted: (A) by striking "Until September 30, 2008, the Secretary may carry out a pilot program" and inserting "If the Secretary issues policy guidance by September 30, 2008, detailing the appropriate use of other transaction authority and provides mandatory other transaction training to each employee who has the authority to handle procurements under other transaction authority, the Secretary may, before September 30, 2009, carry out a program"; and

   Inserted: (B) in paragraph (1), by striking "subsection (b)" and inserting "subsection (b)(1)";

   Inserted: (2) in subsection (b)--

   Inserted: (A) by striking "(b) Report.--Not later than 2 years" and inserting "(b) Reports.--

   Inserted: "(1) In general.--Not later than 2 years";

   Inserted: (B) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and realigning such subparagraphs, as so redesignated, so as to be indented 4 ems from the left margin; and

   Inserted: (C) by adding at the end the following new paragraph:

   Inserted: "(2) Annual report on exercise of other transaction authority.--

   Inserted: "(A) In general.--The Secretary shall submit to the Committee on Homeland Security and Governmental Affairs and the Committee on Appropriations of the Senate and the Committee on Homeland Security and the Committee on Appropriations of the House of Representatives an annual report on the exercise of other transaction authority under subsection (a).

   Inserted: "(B) Content.--The report required under subparagraph (A) shall include the following:

   Inserted: "(i) The technology areas in which research projects were conducted under other transactions.

   Inserted: "(ii) The extent of the cost-sharing among Federal and non-Federal sources.

   Inserted: "(iii) The extent to which use of the other transactions--

   Inserted: "(I) has contributed to a broadening of the technology and industrial base available for meeting the needs of the Department of Homeland Security; and

   Inserted: "(II) has fostered within the technology and industrial base new relationships and practices that support the national security of the United States.

   Inserted: "(iv) The total amount of payments, if any, that were received by the Federal Government during the fiscal year covered by the report.

   Inserted: "(v) The rationale for using other transaction authority, including why grants or Federal Acquisition Regulation-based contracts were not used, the extent of competition, and the amount expended for each such project.".

   Original wording

   On page 240, between lines 6 and 7, insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed