An amendment numbered 13 printed in House Report 111-467 to direct the Secretary of Defense to carry out a program providing for cost savings on non-developmental items by allowing a contracting officer to make an award for an existing contract to an entity submitting a new proposal that provides for a savings of greater than 15%, provided that doing so does not constitute a breach of contract.

1. Adds SEC. 407. ACQUISITION SAVINGS PROGRAM at the end of title IV

   Adds a section

   Inserted: SEC. 407. ACQUISITION SAVINGS PROGRAM.

   Inserted: (a) Program Required.--

   Inserted: (1) In general.--The Secretary of Defense, acting through the Under Secretary of Defense for Acquisition, Technology, and Logistics, shall carry out a program to provide opportunities to provide cost-savings on nondevelopmental items.

   Inserted: (2) Savings.--The program, to be known as the Acquisition Savings Program, shall provide any person or activity within or outside the Department of Defense with the opportunity to offer a proposal to provide savings in excess of 15 percent, to be known as an acquisition savings proposal, for covered contracts.

   Inserted: (3) Sunset.--The program shall cease to be required on September 30, 2013.

   Inserted: (b) Qualifying Acquisition Savings Proposals.--A proposal shall qualify as an acquisition savings proposal for purposes of this section if it offers to supply a nondevelopmental item that is identical to, or equivalent to (under a performance specification or relevant commercial standard), an item being procured under a covered contract.

   Inserted: (c) Review by Contracting Officer.--Each acquisition savings proposal shall be reviewed by the contracting officer for the covered contract concerned to determine if such proposal qualifies under this section and to calculate the savings provided by such proposal.

   Inserted: (d) Actions Upon Favorable Review.--If the contracting officer for a covered contract determines after review of an acquisition savings proposal that the proposal would provide an identical or equivalent nondevelopmental item at a savings in excess of 15 percent, and that a contract award to the offeror of the proposal would not result in the violation of a minimum purchase agreement or otherwise cause a breach of contract for the covered contract, the contracting officer may make an award under the covered contract to the offeror of the acquisition savings proposal or otherwise award a contract for the nondevelopmental item concerned to such offeror.

   Inserted: (e) Actions Upon Unfavorable Review.--If a contracting officer determines after review of an acquisition savings proposal that the proposal would not satisfy the requirements of this section, the contracting officer shall debrief the person or activity offering such proposal within 30 days after completion of the review.

   Inserted: (f) Report.--Not later than March 1, 2013, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and House of Representatives a report regarding the program, including the number of acquisition savings proposals submitted, the number favorably reviewed, the cumulative savings, and any further recommendations for the program.

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

   Inserted: (1) Nondevelopmental item.--The term "nondevelopmental item" has the meaning provided for such term in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).

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   Inserted: (2) Covered contract.--The term "covered contract"--

   Inserted: (A) means an indefinite delivery indefinite quantity contract for property as defined in section 2304d(2) of title 10, United States Code; and

   Inserted: (B) does not include any contract awarded under an exception to competitive acquisition authorized by the Small Business Act (15 U.S.C. 631 et seq.)

   Inserted: (3) Performance specification.--The term "performance specification" means a specification of required item functional characteristics.

   Inserted: (4) Commercial standard.--The term "commercial standard" means a standard used in industry promulgated by an accredited standards organizations that is not a Federal entity.

   Original wording

   At the end of title IV, add the following new section:

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As printed