To improve authorities and limitations relating to wartime contracting and other acquisition-related provisions.

1. 1

   Change 1: Rewrites section 822

   Replaces

   In S. 3254 · Placed on Calendar Senate

   SEC. 822. PROHIBITION OF EXCESSIVE PASS-THROUGH CONTRACTS AND CHARGES IN THE ACQUISITION OF SERVICES.

   (a) In General.--Not later than 90 days after the date of the enactment of this Act, the [struck: Secretary of Defense][inserted: Federal Acquisition Regulation] shall [struck: revise the Department of Defense Supplement ][inserted: be revised ]to[struck: the Federal Acquisition Regulation to]--

   (1) prohibit the award of a covered contract or task order unless the contractor agrees that at least 50 percent of the direct labor cost of services to be performed under the contract or task order will be expended for employees of the contractor or of a subcontractor that is specifically identified and authorized to perform such work in the contract or task order;

   (2) provide that the contracting officer for a covered contract or task order may authorize reliance upon a subcontractor or subcontractors to meet the requirement in paragraph (1) only upon a written determination that such reliance is in the best interest of the [struck: Department of Defense][inserted: executive agency concerned], after taking into account the added cost for overhead (including general and administrative costs) and profit that may be incurred as a result of the pass-through;

   (3) require the contracting officer for a covered contract or task order for which more than 70 percent of the direct labor cost of services to be performed will be expended for persons other than employees of the contractor to ensure that amounts paid to the contractor for overhead (including general and administrative costs) and profit are reasonable in relation to the cost of direct labor provided by employees of the contractor and any other costs directly attributable to the management of the subcontract by employees of the contractor;[struck: and]

   (4) include such exceptions to the requirements in paragraphs ([struck: 1][inserted: 2]) [struck: through][inserted: and] (3) as the [struck: Secretary ][inserted: Federal Acquisition Regulatory Council ]considers appropriate in the [struck: interest][inserted: interests] of the [struck: national defense.][inserted: United States, which exceptions shall be permissible only in exceptional circumstances and for instances demonstrated by the Council to be cost-effective; and]

   Inserted: (5) include such exceptions to the requirements in paragraphs (2) and (3) as the Secretary of Defense considers appropriate in the interests of the national defense.

   (b) Covered Contract or Task Order Defined.--In this section, the term "covered contract or task order" means a contract or task order for the performance of services (other than construction) with a value in excess of the simplified acquisition threshold that is entered into for or on behalf of [struck: the Department of Defense][inserted: an executive agency], except that such term does not include any contract or task order that provides a firm, fixed price for each task to be performed and is--

   (1) awarded on the basis of adequate price competition; or

   (2) for the acquisition of commercial services as defined in paragraphs (5) and (6) of section 103 of title 41, United States Code.

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   (c) Effective Date.--The requirements of this section shall apply to--

   (1) covered contracts that are awarded on or after the date that is 90 days after the date of the enactment of this Act; and

   (2) covered task orders that are awarded on or after the date that is 90 days after the date of the enactment of this Act under contracts that are awarded before, on, or after such date.

   Struck: (d) Conforming Repeal.--Section 852 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (120 Stat. 2340) is repealed.

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

   Inserted: (1) The term "executive agency" has the meaning given that term in section 133 of title 41, United States Code.

   Inserted: (2) The term "Federal Acquisition Regulatory Council" means the Federal Acquisition Regulatory Council under section 1302(a) of title 41, United States Code.

   Inserted: (e) Conforming Repeal.--Section 852 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (120 Stat. 2340) is repealed.

   Original wording

   Strike section 822 and insert the following:

2. 2

   Change 2: Adds SEC. 860. SHORT TITLE on page 250, between lines 15 and 16

   Adds a sectionPrinted page

   Inserted: SEC. 860. SHORT TITLE.

   Inserted: This subtitle may be cited as the "Wartime Contracting Reform Act of 2012".

   Original wording

   On page 250, between lines 15 and 16, insert the following:

3. 3

   Change 3: Rewrites page 254, lines 6–15

   ReplacesPrinted page

   Removes page 254, lines 6–15 of the printed bill. See that page

   Inserted: (c) Comptroller General Report.--

   Inserted: (1) In general.--Not later than 18 months after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the appropriate committees of Congress a report on the progress of the Department of Defense in implementing the regulations prescribed under subsection (a). The report may include such additional comments and information on the regulations and the implementation of the regulations as the Comptroller General considers appropriate.

   Inserted: (2) Appropriate committees of congress defined.--In this subsection, the term "appropriate committees of Congress" means--

   Inserted: (A) the Committee on Armed Services, the Committee on Homeland Security and Governmental Affairs, and the Committee on Appropriations of the Senate; and

   Inserted: (B) the Committee on Armed Services, the Committee on Oversight and Government Reform, and the Committee on Appropriations of the House of Representatives.

   Original wording

   On page 254, strike lines 6 through 15 and insert the following:

4. 4

   Change 4: Rewrites page 254, lines 19–25

   ReplacesPrinted page

   Removes page 254, lines 19–25 of the printed bill. See that page

   Inserted: (a) Reports Required.--

   Inserted: (1) Department of defense.--Not later than one year after the commencement or designation of a contingency operation outside the United States that includes combat operations, and annually thereafter until the termination of the operation, the Secretary of Defense shall, except as provided in subsection (b), submit to the appropriate committees of Congress a report on contract support for the Department of Defense for the operation.

   Inserted: (2) Department of state and usaid.--Not later than one year after the commencement or designation of a contingency operation outside the United States that includes combat operations, and annually thereafter until the termination of the operation, the Secretary of State and the Administrator of the United States Agency for International Development shall, except as provided in subsection (b), each submit to the appropriate committees of Congress a report on contract support for the operation for the Department of State or the United States Agency for International Development, as the case may be.

   Original wording

   On page 254, strike lines 19 through 25 and insert the following:

5. 5

   Change 5: Inserts “of an agency” after “Each report”

   InsertsPage 255, line 9Printed page

   …Each report[inserted: of an agency]…

   Original wording

   On page 255, line 9, insert “of an agency” after “Each report”.

6. 6

   Change 6: Replaces “the Department of Defense” with “the agency”

   ReplacesPage 255, line 14Printed page

   [struck: the Department of Defense][inserted: the agency]

   Original wording

   On page 255, line 14, strike “the Department of Defense” and insert “the agency”.

7. 7

   Change 7: Replaces “the Secretary” through “the Secretary” with “the Secretary or the Administrator may use estimates for any category of contractor perso…”

   ReplacesPage 257, lines 7–9Printed page

   [struck: the Secretary … the Secretary][inserted: the Secretary or the Administrator may use estimates for any category of contractor personnel for which such Secretary or the Administrator, as the case may be,]

   Original wording

   On page 257, beginning on line 7, strike “the Secretary” and all that follows through “the Secretary” on line 9 and insert “the Secretary or the Administrator may use estimates for any category of contractor personnel for which such Secretary or the Administrator, as the case may be,”.

8. 8

   Change 8: Inserts new text on page 257, line 23

   InsertsPrinted page

   Inserted: (f) Appropriate Committees of Congress Defined.--In this section, the term "appropriate committees of Congress" means--

   Inserted: (1) the Committee on Armed Services, the Committee on Foreign Relations, the Committee on Homeland Security and Governmental Affairs, and the Committee on Appropriations of the Senate; and

   Inserted: (2) the Committee on Armed Services, the Committee on Foreign Affairs, the Committee on Oversight and Government Reform, and the Committee on Appropriations of the House of Representatives.

   Original wording

   On page 257, after line 23, add the following:

9. 9

   Change 9: Rewrites section 864

   Replaces

   In S. 3254 · Placed on Calendar Senate

   SEC. 864. RISK ASSESSMENT AND MITIGATION FOR CONTRACTOR PERFORMANCE OF CRITICAL FUNCTIONS IN SUPPORT OF OVERSEAS CONTINGENCY OPERATIONS.

   (a) Comprehensive Risk Assessment and Mitigation Plan Required.--

   (1) In general.--Subject to paragraphs (2) and (3), not later than six months after the commencement or designation of an overseas contingency operation that includes or is expected to include combat operations, the [struck: Secretary][inserted: head] of [struck: Defense ][inserted: each covered agency ]shall perform a comprehensive risk assessment and develop a risk mitigation plan for operational and political risks associated with contractor performance of critical functions in support of the operation[inserted: for such covered agency].

   (2) Exceptions.--Except as provided in paragraph (3), a risk assessment and risk mitigation plan shall not be required under paragraph (1) for an overseas contingency operation if both--

   (A) the operation is not expected to continue for more than one year; and

   (B) the total annual amount of obligations [inserted: by the United States Government ]for contracts for support of [inserted: or in connection with ]the operation is not expected to exceed, $250,000,000 in any fiscal year.

   (3) Termination of exceptions.--Notwithstanding paragraph (2), the [struck: Secretary ][inserted: head of a covered agency ]shall perform a risk assessment and develop a risk mitigation plan under paragraph (1) for an overseas contingency operation with regard to which a risk assessment and risk mitigation plan has not previously been performed under paragraph (1) not later than 60 days after the first date on which either of the following occurs:

   (A) The operation has continued for more than one year.

   (B) The total amount of obligations [inserted: by the United States Government ]for contracts for support of [inserted: or in connection with ]the operation has exceeded $250,000,000 in a fiscal year.

   (b) Comprehensive Risk Assessments.--A comprehensive risk assessment for an overseas contingency operation under subsection (a) shall consider, at a minimum, risks relating to the following:

   (1) The goals and objectives of the operation (such as risks from behavior that injures innocent members of the local population or outrages their sensibilities).

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   (2) The continuity of the operation (such as risks from contractors walking off the job or being unable to perform when there is no timely back-up available).

   (3) The safety of military and civilian personnel of the United States if the presence or performance of contractor personnel creates unsafe conditions or invites attack.

   (4) The managerial control of the Government over the operation (such as risks from over-reliance on contractors to monitor other contractors with inadequate means for Government personnel to monitor their work).

   (5) The critical organic or core capabilities of the Government, including critical knowledge or institutional memory of key operations areas and subject-matter expertise.

   (6) The ability of the Government to control costs, avoid organizational or personal conflicts of interest, and minimize waste, fraud, and abuse.

   (c) Risk Mitigation Plans.--A risk mitigation plan for an overseas contingency operation under subsection (a) shall include, at a minimum, the following:

   (1) For each high risk area identified in the comprehensive risk assessment for the operation performed under subsection (a)--

   (A) specific actions to mitigate or reduce such risk, including, but not limited to, the development of alternative capabilities to reduce reliance on contractor performance of critical functions;

   (B) measurable milestones for the implementation of planned risk mitigation or risk reduction measures; and

   (C) a process for monitoring, measuring, and documenting progress in mitigating or reducing risk.

   (2) A continuing process for identifying and addressing new and changed risks arising in the course of the operation, including the periodic reassessment of risks and the development of appropriate risk mitigation or reduction plans for any new or changed high risk area identified.

   (d) Reports to Congress.--

   (1) In general.--Not later than 30 days after the completion of a comprehensive risk assessment and risk mitigation plan under subsection (a), the [struck: Secretary ][inserted: head of the covered agency concerned ]shall submit to the [struck: congressional defense ][inserted: appropriate ]committees [inserted: of Congress ]a report setting forth a summary description of the assessment and plan, including a description of the risks identified through the assessment and the actions to be taken to address such risks.

   (2) Form.--Each report shall be submitted in unclassified form, but may include a classified annex.

   (e) Critical Functions.--For purposes of this section, critical functions include, at a minimum, the following:

   2 unchanged paragraphsHide unchanged text

   (1) Private security functions, as that term is defined in section 864(a)(5) of the National Defense Authorization Act for Fiscal Year 2008 (10 U.S.C. 2302 note).

   (2) Training and advising government personnel, including military and security personnel, of a host nation.

   (3) Conducting intelligence or information operations.

   (4) Any other functions that are closely associated with inherently governmental functions, including the functions set forth in section 7.503(d) of the Federal Acquisition Regulation.

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

   Inserted: (1) The term "appropriate committees of Congress" means--

   Inserted: (A) the Committee on Armed Services, the Committee on Foreign Relations, the Committee on Homeland Security and Governmental Affairs, and the Committee on Appropriations of the Senate; and

   Inserted: (B) the Committee on Armed Services, the Committee on Foreign Affairs, the Committee on Oversight and Government Reform, and the Committee on Appropriations of the House of Representatives.

   Inserted: (2) The term "covered agency" means the following:

   Inserted: (A) The Department of Defense.

   Inserted: (B) The Department of State.

   Inserted: (C) The United States Agency for International Development.

   Inserted: (3) The term "overseas contingency operation" means a military operation outside the United States and its territories and possessions that is a contingency operation (as that term is defined in section 101(a)(13) of title 10, United States Code).

   Original wording

   Strike section 864 and insert the following:

10. 10

    Change 10: Adds SEC. 869. RESPONSIBILITIES OF INSPECTORS GENERAL FOR OVERSEAS CONTINGENCY OPERATIONS on page 271, line 20

    Adds a sectionPrinted page

    Inserted: SEC. 869. RESPONSIBILITIES OF INSPECTORS GENERAL FOR OVERSEAS CONTINGENCY OPERATIONS.

    Inserted: (a) In General.--The Inspector General Act of 1978 (5 U.S.C. App.) is amended--

    Inserted: (1) by redesignating section 8L as section 8M; and

    Inserted: (2) by inserting after section 8K the following new section 8L:

    Inserted: "SEC. 8L. SPECIAL PROVISIONS CONCERNING OVERSEAS CONTINGENCY OPERATIONS.

    Inserted: "(a) In General.--Upon the commencement or designation of a military operation as an overseas contingency operation that exceeds 90 days, the Inspectors General specified in subsection (b) shall have the responsibilities specified in this section.

    Inserted: "(b) Inspectors General.--The Inspectors General specified in this subsection are the Inspectors General as follows:

    Inserted: "(1) The Inspector General of the Department of Defense.

    Inserted: "(2) The Inspector General of the Department of State.

    Inserted: "(3) The Inspector General of the United States Agency for International Development.

    Inserted: "(c) Standing Committee on Overseas Contingency Operations.--(1) The Council of Inspectors General on Integrity and Efficiency (CIGIE) shall establish a standing committee on overseas contingency operations. The standing committee shall consist of the following:

    Inserted: "(A) A chair, who shall be the Lead Inspector General for an overseas contingency operation under subsection (d) if such an operation is underway, and shall be an Inspector General specified in subsection (b) selected by the Inspectors General specified in that subsection from among themselves if such an operation is not undeway.

    Show 140 more inserted paragraphsShow less

    Inserted: "(B) The other Inspectors General specified in subsection (b).

    Inserted: "(C) For the duration of any contingency operation that exceeds 90 days, any other inspectors general determined by the chair, in coordination with the other Inspectors General specified in subsection (b), to have actual or potential areas of responsibility with respect to the contingency operation.

    Inserted: "(2) The standing committee shall have such on-going responsibilities, including planning, coordination, and development of practices, to improve oversight of overseas contingency operations as the chair considers appropriate.

    Inserted: "(3)(A) For the duration of any contingency operation that exceeds 90 days, the standing committee shall develop and update on an annual basis a joint-strategic plan for ongoing and planned oversight of the contingency operation by the Inspectors General specified in subsection (b) and designated pursuant to paragraph (1)(C), including the following:

    Inserted: "(i) Audit and available inspection plans.

    Inserted: "(ii) An overall assessment of such oversight, including projects or areas (whether departmental or government-wide) of concern or in need of further review.

    Inserted: "(iii) Such other matters as the Lead Inspector General for the contingency operation considers appropriate.

    Inserted: "(B) Each plan under this paragraph, and any update of such plan, shall be made available on an Internet website available to the public. Each plan, and any update of such plan, made so available shall be made available in unclassified form.

    Inserted: "(d) Lead Inspector General for Overseas Contingency Operations.--(1) There shall be a lead inspector general for each overseas contingency operation that exceeds 90 days (in this section referred to as the 'Lead Inspector General' for the contingency operation concerned).

    Inserted: "(2) The Lead Inspector General for a contingency operation shall be the Inspector General of the Department of Defense, who shall assume such role not later than 90 days after the commencement or designation of the military operation concerned as a contingency operation.

    Inserted: "(e) Responsibilities of Lead Inspector General.--(1) The Lead Inspector General for an overseas contingency operation shall have the following responsibilities:

    Inserted: "(A) To conduct oversight, in full coordination with the other Inspectors General specified in subsection (b), over all aspects of the contingency operation and to ensure, either through joint or individual audits, inspections, and investigations, independent and effective oversight of all programs and operations of all departments and agencies in the contingency operation.

    Inserted: "(B) To appoint, from among the offices of the other Inspectors General specified in subsection (b), an Inspector General to act as Associate Inspector General for the overseas contingency operation who shall act in a coordinating role to assist the Lead Inspector General in the discharge of responsibilities under this subsection.

    Inserted: "(C)(i) If none of the Inspectors General specified in subsection (b) has principal jurisdiction over a matter with respect to the contingency operation, to exercise responsibility for discharging oversight responsibilities in accordance with this Act with respect to such matter.

    Inserted: "(ii) If more than one of the Inspectors General specified in subsection (b) has jurisdiction over a matter with respect to the contingency operation, to determine principal jurisdiction for discharging oversight responsibilities in accordance with this Act with respect to such matter.

    Inserted: "(D) To carry out such other responsibilities relating to the coordination and efficient and effective discharge by the Inspectors General specified in subsection (b) of duties relating to the contingency operation as the Lead Inspector General shall specify.

    Inserted: "(2) The Lead Inspector General for an overseas contingency operation shall discharge the responsibilities for the contingency operation under this subsection in a manner consistent with the authorities and requirements of this Act generally and the authorities and requirements applicable to the Inspectors General specified in subsection (b) under this Act.

    Inserted: "(f) Reports.--(1) The Lead Inspector General for an overseas contingency operation shall, in coordination with the other Inspectors General specified in subsection (b), submit to the appropriate committees of Congress on a semi-annual basis, and make available on an Internet website available to the public, a report summarizing, for the semi-annual period, the activities of the Lead Inspector General and the other Inspectors General specified in subsection (b) with respect to the contingency operation, including--

    Inserted: "(A) the status and results of audits, inspections, and closed investigations, and of the number of referrals to the Department of Justice;

    Inserted: "(B) updates and changes to overall plans for the review of the contingency operation by inspectors general, including plans for inspections and audits; and

    Inserted: "(C) the activities under programs and operations funded with amounts appropriated or otherwise made available for the overseas contingency operation, including the information specified in paragraph (2).

    Inserted: "(2) The information specified in this paragraph with respect to an overseas contingency operation is as follows:

    Inserted: "(A) Obligations and expenditures of appropriated funds.

    Inserted: "(B) A project-by-project and program-by-program accounting of the costs incurred to date for the contingency operation, together with the estimate of the Department of Defense, the Department of State, and the United States Agency for International Development, as applicable, of the costs to complete each project and program above the simplified acquisition threshold.

    Inserted: "(C) Revenues attributable to or consisting of funds provided by foreign nations or international organizations to programs and projects for the contingency operation that are funded by any department or agency of the United States Government, and any obligations or expenditures of such revenues.

    Inserted: "(D) Revenues attributable to or consisting of foreign assets seized or frozen that contribute to programs and projects for the contingency operation that are funded by any department or agency of the United States Government, and any obligations or expenditures of such revenues.

    Inserted: "(E) Operating expenses of agencies or entities receiving amounts appropriated or otherwise made available for the contingency operation.

    Inserted: "(F) In the case of any contract, grant, agreement, or other funding mechanism described in paragraph (3) with respect to the contingency operation--

    Inserted: "(i) the amount of the contract, grant, agreement, or other funding mechanism;

    Inserted: "(ii) a brief discussion of the scope of the contract, grant, agreement, or other funding mechanism;

    Inserted: "(iii) a discussion of how the department or agency of the United States Government involved in the contract, grant, agreement, or other funding mechanism identified, and solicited offers from, potential individuals or entities to perform the contract, grant, agreement, or other funding mechanism, together with a list of the potential individuals or entities that were issued solicitations for the offers; and

    Inserted: "(iv) the justification and approval documents on which was based the determination to use procedures other than procedures that provide for full and open competition.

    Inserted: "(3) A contract, grant, agreement, or other funding mechanism described in this paragraph is any major contract, grant, agreement, or other funding mechanism that is entered into by any department or agency of the United States Government that involves the use of amounts appropriated or otherwise made available for reconstruction and other related activities in the contingency operation concerned with any public or private sector entity, including any of the following purposes:

    Inserted: "(A) To build or rebuild physical infrastructure.

    Inserted: "(B) To establish or reestablish a political or societal function or institution.

    Inserted: "(C) To provide products or services.

    Inserted: "(4) Each report under this subsection shall be submitted in unclassified form, but may include a classified annex.

    Inserted: "(g) Temporary Employment Authority.--(1) Each Inspector General specified in subsection (b) may employ, on a temporary basis using the authorities in section 3161 of title 5, United States Code (but without regard to subsections (a) and (b)(2) of such section), such auditors, inspectors, investigators, and other personnel as such Inspector General considers appropriate for purposes of assisting such Inspector General in discharging responsibilities under subsection (e) with respect to an overseas contingency operation.

    Inserted: "(2) The employment under this subsection of an annuitant described in section 9902(g) of title 5, United States Code, shall be governed by the provisions of such section as if the position to which employed was a position in the Department of Defense.

    Inserted: "(3) The employment under this subsection of an annuitant receiving an annuity under the Foreign Service Retirement and Disability System under chapter 8 of the Foreign Service Act of 1980 (22 U.S.C. 4041 et seq.) shall be treated as employment in an elective position in the Government on a temporary basis under section 824(b) of the Foreign Service Act of 1980 (22 U.S.C. 4064(b)) for which continued receipt of annuities may be elected as provided in such section.

    Inserted: "(4) The authority to employ personnel under this subsection for a contingency operation shall cease as provided for in subsection (h).

    Inserted: "(h) Sunset for Particular Contingency Operations.--The requirements and authorities of this section with respect to an overseas contingency operation shall cease at the earlier of--

    Inserted: "(1) the end of the first fiscal year after the commencement or designation of the contingency operation in which the total amount appropriated for the contingency operation is less than $250,000,000 (in constant fiscal year 2012 dollars); or

    Inserted: "(2) the date that is 18 months after the date of the issuance by the Secretary of Defense of an order terminating the contingency operation.

    Inserted: "(i) Construction of Authority.--Nothing in this Act shall be construed to limit the ability of the Inspectors General specified in subsection (b) to enter into agreements to conduct joint audits, inspections, or investigations in the exercise of their oversight responsibilities in accordance with this Act with respect to overseas contingency operations.

    Inserted: "(j) Definitions.--In this section:

    Inserted: "(1) The term 'overseas contingency operation' means a military operation outside the United States and its territories and possessions that is a contingency operation (as that term is defined in section 101(a)(13) of title 10, United States Code).

    Inserted: "(2) The term 'simplified acquisition threshold' has the meaning provided that term in section 2302(7) of title 10, United States Code.".

    Inserted: (b) Conforming Amendment Relating to Temporary Employment Authority.--Section 3161 of title 5, United States Code, is amended by adding at the end the following new subsection:

    Inserted: "(j) Lead Inspectors General for Overseas Contingency Operations as Temporary Organization.--In addition to the meaning given that term in subsection (a), the term 'temporary organization' for purposes of this subchapter shall, without regard to subsections (a) and (b)(2) of this section, also include the Lead Inspector General for an overseas contingency operation under section 8L of the Inspector General Act of 1978 and the Inspectors General and inspector general office personnel assisting the Lead Inspector General in the discharge of responsibilities and authorities under subsection (e) of such section 8L with respect to the contingency operation.".

    Inserted: SEC. 870. AGENCY REPORTS AND INSPECTOR GENERAL AUDITS OF CERTAIN INFORMATION ON OVERSEAS CONTINGENCY OPERATIONS.

    Inserted: (a) Agency Reports.--Not later than 180 days after the commencement or designation of a military operation as an overseas contingency operation and semi-annually thereafter during the duration of the contingency operation, the Secretary of Defense, the Secretary of State, and the Administrator of the United States Agency for International Development shall each make available to the Inspector General of the department or agency concerned the information required by subsection (f)(2) of section 8L of the Inspector General Act of 1978 (as amended by section 869 of this Act) on the contingency operation.

    Inserted: (b) Inspector General Audits.--Not later than 90 days after receipt of a report under subsection (a), each Inspector General referred to in that subsection shall--

    Inserted: (1) perform an audit on the quality of the information submitted in such report, including an assessment of the completeness and accuracy of the information and the extent to which the information fully satisfies the requirements of such Inspector General in preparing the semi-annual report described in subsection (f)(1)(C) of section 8L of the Inspector General Act of 1978 (as so amended); and

    Inserted: (2) submit to the appropriate committees of Congress a report on the reliability, accuracy, and completeness of the information, including any significant problems in such information.

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

    Inserted: (1) The term "appropriate committees of Congress" means--

    Inserted: (A) the Committee on Armed Services, the Committee on Foreign Relations, the Committee on Homeland Security and Governmental Affairs, and the Committee on Appropriations of the Senate; and

    Inserted: (B) the Committee on Armed Services, the Committee on Foreign Affairs, the Committee on Oversight and Government Reform, and the Committee on Appropriations of the House of Representatives.

    Inserted: (2) The term "overseas contingency operation" means a military operation outside the United States and its territories and possessions that is a contingency operation (as that term is defined in section 101(a)(13) of title 10, United States Code).

    Inserted: SEC. 871. OVERSIGHT OF CONTRACTS AND CONTRACTING ACTIVITIES FOR OVERSEAS CONTINGENCY OPERATIONS IN RESPONSIBILITIES OF CHIEF ACQUISITION OFFICERS OF FEDERAL AGENCIES.

    Inserted: (a) In General.--Subsection (b)(3) of section 1702 of title 41, United States Code, is amended--

    Inserted: (1) by redesignating subparagraphs (F) and (G) as subparagraphs (G) and (H), respectively; and

    Inserted: (2) by inserting after subparagraph (E) the following new subparagraph (F):

    Inserted: "(F) advising the executive agency on the applicability of relevant policy on the contracts of the agency for overseas contingency operations and ensuring the compliance of the contracts and contracting activities of the agency with such policy;".

    Inserted: (b) Definition.--Such section is further amended by adding at the following new subsection:

    Inserted: "(d) Overseas Contingency Operations Defined.--In this section, the term 'overseas contingency operations' means military operations outside the United States and its territories and possessions that are a contingency operation (as that term is defined in section 101(a)(13) of title 10).".

    Inserted: SEC. 872. REPORTS ON RESPONSIBILITY WITHIN DEPARTMENT OF STATE AND THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT FOR CONTRACT SUPPORT FOR OVERSEAS CONTINGENCY OPERATIONS.

    Inserted: (a) DoS and USAID Reports Required.--Not later than six months after the date of the enactment of this Act, the Secretary of State and the Administrator of the United States Agency for International Development shall, in consultation with the Chief Acquisition Officer of the Department of State and the Chief Acquisition Officer of the United States Agency for International Development, respectively, each submit to the appropriate committees of Congress an assessment of Department of State and United States Agency for International Development policies governing contract support in overseas contingency operations.

    Inserted: (b) Elements.--Each report under subsection (a) shall include the following:

    Inserted: (1) A description and assessment of the roles and responsibilities of the officials, offices, and components of the Department of State or the United States Agency for International Development, as applicable, within the chain of authority and responsibility for policy, planning, and execution of contract support for overseas contingency operations.

    Inserted: (2) Procedures and processes of the Department or Agency, as applicable, on the following in connection with contract support for overseas contingency operations:

    Inserted: (A) Collection, inventory, and reporting of data.

    Inserted: (B) Acquisition planning.

    Inserted: (C) Solicitation and award of contracts.

    Inserted: (D) Requirements development and management.

    Inserted: (E) Contract tracking and oversight.

    Inserted: (F) Performance evaluations.

    Inserted: (G) Risk management.

    Inserted: (H) Interagency coordination and transition planning.

    Inserted: (3) Strategies and improvements necessary for the Department or the Agency, as applicable, to address reliance on contractors, workforce planning, and the recruitment and training of acquisition workforce personnel, including the anticipated number of personnel needed to perform acquisition management and oversight functions and plans for achieving personnel staffing goals, in connection with overseas contingency operations.

    Inserted: (c) Comptroller General Report.--Not later than one year after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the appropriate committees of Congress a report on the progress of the efforts of the Department of State and the United States Agency for International Development in implementing improvements and changes identified under paragraphs (1) through (3) of subsection (b) in the reports required by subsection (a), together with such additional information as the Comptroller General considers appropriate to further inform such committees on issues relating to the reports required by subsection (a).

    Inserted: (d) Appropriate Committees of Congress Defined.--In this section, the term "appropriate committees of Congress" means--

    Inserted: (1) the Committee on Foreign Relations, the Committee on Armed Services, the Committee on Homeland Security and Governmental Affairs, and the Committee on Appropriations of the Senate; and

    Inserted: (2) the Committee on Foreign Affairs, the Committee on Armed Services, the Committee on Oversight and Government Reform, and the Committee on Appropriations of the House of Representatives.

    Inserted: SEC. 873. PROFESSIONAL EDUCATION FOR DEPARTMENT OF STATE PERSONNEL ON ACQUISITION FOR DEPARTMENT OF STATE SUPPORT AND PARTICIPATION IN OVERSEAS CONTINGENCY OPERATIONS.

    Inserted: (a) Professional Education Required.--The Secretary of State shall develop and administer for Department of State personnel specified in subsection (b) a course of professional education on acquisition by the Department of State for Department of State support for, and participation in, overseas contingency operations.

    Inserted: (b) Covered Department of State Personnel.--The Department of State personnel specified in this subsection are as follows:

    Inserted: (1) The Chief Acquisition Officer of the Department of State.

    Inserted: (2) Personnel of the Department designated by the Chief Acquisition Officer, including contracting officers and other contracting personnel.

    Inserted: (3) Such other personnel of the Department as the Secretary of State shall designate for purposes of this section.

    Inserted: (c) Elements.--

    Inserted: (1) Curriculum content.--The course of professional education under this section shall include appropriate content on the following:

    Inserted: (A) Contingency contracting.

    Inserted: (B) Contingency program management.

    Inserted: (C) The strategic impact of contracting costs on the mission and activities of the Department of State.

    Inserted: (D) Such other matters relating to acquisition by the Department for Department support for, or participation in, overseas contingency operations as the Secretary of State considers appropriate.

    Inserted: (2) Phased approach.--The course of professional education may be broken into two or more phases of professional education with curriculum or modules of education suitable for the Department of State personnel specified in subsection (b) at different phases of professional advancement within the Department.

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

    Inserted: (1) The term "contingency contracting" means all stages of the process of acquiring property or services by the Department of State for Department of State support for, and participation in, overseas contingency operations.

    Inserted: (2) The term "contingency program management" means the process of planning, organizing, staffing, controlling, and leading specific acquisition programs and activities of the Department of State for Department of State support for, and participation in, overseas contingency operations.

    Inserted: (3) The term "overseas contingency operation" means a military operation outside the United States and its territories and possessions that is a contingency operation (as that term is defined in section 101(a)(13) of title 10, United States Code).

    Inserted: SEC. 874. DATABASE ON PRICE TRENDS OF ITEMS AND SERVICES UNDER FEDERAL CONTRACTS.

    Inserted: (a) Database Required.--

    Inserted: (1) In general.--Chapter 33 of title 41, United States Code, is amended by adding at the end the following new section:

    Inserted: "Sec. 3312. Database on price trends of items and services under Federal contracts

    Inserted: "(a) Database Required.--The Administrator shall establish and maintain a database of information on price trends for items and services under contracts with the Federal Government. The information in the database shall be designed to assist Federal acquisition officials in the following:

    Inserted: "(1) Monitoring developments in price trends for items and services under contracts with the Federal Government.

    Inserted: "(2) Conducting pricing or cost analyses for items and services under offers for contracts with the Federal Government, or otherwise conducting determinations of the reasonableness of prices for items and services under such offers, and addressing unjustified escalation in prices being paid by the Federal Government for items and services under contracts with the Federal Government.

    Inserted: "(b) Use.--(1) The database under subsection (a) shall be available to executive agencies in the evaluation of offers for contracts with the Federal Government for items and services.

    Inserted: "(2) The Secretary of Defense may satisfy the requirements of this section by complying with the requirements of section 892 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (10 U.S.C. 2306a note).".

    Inserted: (2) Clerical amendment.--The table of sections at the beginning of chapter 33 of such title is amended by adding at the end the following new item:

    Inserted: "3312. Database on price trends of items and services under Federal contracts.".

    Inserted: (b) Use of Elements of Department of Defense Pilot Project.--In establishing the database required by section 3312 of title 41, United States Code (as added by subsection (a)), the Administrator of Federal Procurement Policy shall use and incorporate appropriate elements of the pilot project on pricing of the Department of Defense being carried out by the Director of Defense Pricing.

    Inserted: SEC. 875. INFORMATION ON CORPORATE CONTRACTOR PERFORMANCE AND INTEGRITY THROUGH THE FEDERAL AWARDEE PERFORMANCE AND INTEGRITY INFORMATION SYSTEM.

    Inserted: (a) Inclusion of Corporations Among Covered Persons.--Subsection (b) of section 872 of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (Public Law 110-417; 122 Stat. 4555) is amended by inserting "(including a corporation)" after "Any person" both places it appears.

    Inserted: (b) Information on Corporations.--Subsection (d) of such section is amended by adding at the end the following new paragraph:

    Inserted: "(3) Information on corporations.--The information on a corporation in the database shall, to the extent practicable, include information on any parent, subsidiary, or successor entities to the corporation in manner designed to give the acquisition officials using the database a comprehensive understanding of the performance and integrity of the corporation in carrying out Federal contracts and grants.".

    Inserted: SEC. 876. INCLUSION OF DATA ON CONTRACTOR PERFORMANCE IN PAST PERFORMANCE DATABASES FOR EXECUTIVE AGENCY SOURCE SELECTION DECISIONS.

    Inserted: (a) Strategy Required.--

    Inserted: (1) In general.--Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulatory Council shall develop a strategy for ensuring that timely, accurate, and complete information on contractor performance is included in past performance databases used by executive agencies for making source selection decisions.

    Inserted: (2) Consultation with usdatl.--In developing the strategy required by this subsection, the Federal Acquisition Regulatory Council shall consult with the Under Secretary of Defense for Acquisition, Technology, and Logistics to ensure that the strategy is, to the extent practicable, consistent with the strategy developed by the Under Secretary pursuant to section 806 of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112-81; 125 Stat. 1487; 10 U.S.C. 2302 note).

    Inserted: (b) Elements.--The strategy required by subsection (a) shall, at a minimum--

    Inserted: (1) establish standards for the timeliness and completeness of past performance submissions for purposes of databases described in subsection (a);

    Inserted: (2) assign responsibility and management accountability for the completeness of past performance submissions for such purposes; and

    Inserted: (3) ensure that past performance submissions for such purposes are consistent with award fee evaluations in cases where such evaluations have been conducted.

    Inserted: (c) Contractor Comments.--Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulation shall be revised to require the following:

    Inserted: (1) That affected contractors are provided, in a timely manner, information on contractor performance to be included in past performance databases in accordance with subsection (a).

    Inserted: (2) That such contractors are afforded up to 14 calendar days, from the date of delivery of the information provided in accordance with paragraph (1), to submit comments, rebuttals, or additional information pertaining to past performance for inclusion in such databases.

    Inserted: (3) That agency evaluations of contractor past performance, including any information submitted under paragraph (2), are included in the relevant past performance database not later than the date that is 14 days after the date of delivery of the information provided in accordance with paragraph (1).

    Inserted: (d) Construction.--Nothing in this section shall be construed to prohibit a contractor from submitting comments, rebuttals, or additional information pertaining to past performance after the period described in subsection (c)(2) has elapsed or to prohibit a contractor from challenging a past performance evaluation in accordance with applicable laws, regulations, or procedures.

    Inserted: (e) Comptroller General Report.--Not later than 18 months after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the appropriate committees of Congress a report on the actions taken by the Federal Acquisition Regulatory Council pursuant to this section, including an assessment of the following:

    Inserted: (1) The extent to which the strategy required by subsection (a) is consistent with the strategy developed by the Under Secretary of Defense for Acquisition, Technology, and Logistics as described in subsection (a)(2).

    Inserted: (2) The extent to which the actions of the Federal Acquisition Regulatory Council pursuant to this section have otherwise achieved the objectives of this section.

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

    Inserted: (1) The term "appropriate committees of Congress" means--

    Inserted: (A) the Committee on Armed Services, the Committee on Foreign Relations, the Committee on Homeland Security and Governmental Affairs, and the Committee on Appropriations of the Senate; and

    Inserted: (B) the Committee on Armed Services, the Committee on Foreign Affairs, the Committee on Oversight and Government Reform, and the Committee on Appropriations of the House of Representatives.

    Inserted: (2) The term "executive agency" has the meaning given that term in section 133 of title 41, United States Code, except that the term excludes the Department of Defense and the military departments.

    Inserted: (3) The term "Federal Acquisition Regulatory Council" means the Federal Acquisition Regulatory Council under section 1302(a) of title 41, United States Code.

    Original wording

    On page 271, after line 20, add the following:

11. 11

    Change 11: Rewrites section 881

    Replaces

    In S. 3254 · Placed on Calendar Senate

    SEC. 881. REQUIREMENTS AND LIMITATIONS FOR SUSPENSION AND DEBARMENT OFFICIALS OF THE DEPARTMENT OF DEFENSE[inserted: , THE DEPARTMENT OF STATE, AND THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT].

    (a) In General.--Not later than 180 days after the date of the enactment of this Act, the [struck: Secretary][inserted: head] of [struck: Defense ][inserted: the covered agency concerned ]shall ensure the following:

    (1) There shall be not less than one suspension and debarment official[struck: each for the Department of the Army, the Department of the Navy, the Department of the Air Force, and the Defense Logistics Agency.][inserted: --]

    Struck: (2) A suspension and debarment official under paragraph (1) may not report to or be subject to the supervision of the acquisition office or the Inspector General of either the Department of Defense or the military department or Defense Agency concerned.

    Struck: (3) The duties of a suspension and debarment official under paragraph (1) may include only the following:

    Struck: (A) The direction, management, and oversight of suspension and debarment activities.

    Struck: (B) The direction, management, and oversight of fraud remedies activities.

    Show 1 more struck paragraphShow less

    Struck: (C) Membership and participation in the Interagency Committee on Debarment and Suspension in accordance with Executive Order No. 12549 and section 873 of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (as amended by this section).

    Inserted: (A) in the case of the Department of Defense, for each of the Department of the Army, the Department of the Navy, the Department of the Air Force, and the Defense Logistics Agency;

    Inserted: (B) for the Department of State; and

    Inserted: (C) for the United States Agency for International Development.

    Inserted: (2) A suspension and debarment official under paragraph (1) may not report to or be subject to the supervision of the acquisition office or the Inspector General of--

    Inserted: (A) in the case of the Department of Defense, either the Department of Defense or the military department or Defense Agency concerned; and

    Inserted: (B) in the case of any other covered agency, the acquisition office or the Inspector General of such agency.

    Inserted: (3)(A) Except as provided in subparagraph (B), the duties of a suspension and debarment official under paragraph (1) may include only the following:

    Inserted: (i) The direction, management, and oversight of suspension and debarment activities.

    Inserted: (ii) The direction, management, and oversight of fraud remedies activities.

    Inserted: (iii) Membership and participation in the Interagency Committee on Debarment and Suspension in accordance with Executive Order No. 12549 and section 873 of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (as amended by this section).

    Inserted: (B) The limitation in subparagraph (A) shall not be construed to prohibit a suspension and debarment official under paragraph (1) from providing authorized legal advice to the extent that the provision of such advice does not present a conflict of interest with the exercise of the duties of the suspension and debarment official under subparagraph (A).

    (4) Each suspension and debarment official under paragraph (1) shall have a staff and resources adequate for the discharge of the suspension and debarment responsibilities of such official.

    (5) Each suspension and debarment official under paragraph (1) shall document the basis for any [struck: final ]decision taken pursuant to a [struck: formal ]referral in accordance with the policies established under paragraph ([struck: 6][inserted: 7]), including, but not limited to, the following:

    (A) Any [struck: final ]decision to suspend or debar any person or entity.

    (B) Any [struck: final ]decision not to suspend or debar any person or entity.

    (C) Any [struck: final ]decision declining to pursue suspension or debarment of any person or entity.

    (D) Any administrative agreement entered with any person or persons in lieu of suspension or debarment of such person or entity.

    Inserted: (6) Any decision under subparagraphs (B) through (D) of paragraph (5) shall not preclude a subsequent decision by a suspension and debarment official under paragraph (1) to suspend, debar, or enter into any administrative agreement with any person or entity based on additional information or changed circumstances. All cases, whether based on referral or internally developed, shall be documented prior to closure by the suspension and debarment official.

    ([struck: 6][inserted: 7]) Each suspension and debarment official under paragraph (1) shall, in consultation with the General Counsel of the [struck: Department of Defense][inserted: covered agency concerned], establish in writing policies for the consideration of the following:

    (A) [struck: Formal referrals ][inserted: Referrals ]of suspension and debarment matters.

    (B) Suspension and debarment matters that are not [struck: formally ]referred.

    Struck: (b) Duties of Interagency Committee on Debarment and Suspension.-- Section 873 of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (31 U.S.C. 6101 note) is amended--

    Inserted: (b) Covered Agency Defined.--In subsection (a), the term "covered agency" means the following:

    Inserted: (1) The Department of Defense.

    Inserted: (2) The Department of State.

    Inserted: (3) The United States Agency for International Development.

    Inserted: (c) Duties of Interagency Committee on Debarment and Suspension.--Section 873 of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (31 U.S.C. 6101 note) is amended--

    (1) in subsection (a)--

    (A) in paragraph (1), by inserting ", including with respect to contracts in connection with contingency operations" before the semicolon; and

    (B) in paragraph (7)--

    (i) in subparagraph (B), by striking "and" at the end;

    (ii) in subparagraph (C), by striking the period at the end and inserting [struck: "; and"][inserted: a semicolon]; and

    (iii) by adding at the end the following new [struck: subparagraph:][inserted: subparagraphs]

    "(D) a summary of suspensions, debarments, and administrative agreements during the previous year[struck: ."]; and

    Inserted: "(E) a summary of referrals of suspension and debarment matters received during the previous year, including an identification of the agencies making such referrals and an assessment of the timeliness of such referrals."; and

    (2) by striking subsection (b) and inserting the following new subsections:

    "(b) Date of Submittal of Annual Reports.--The annual report required by subsection (a)(7) shall be submitted not later than 120 days after the end of the first fiscal year ending after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2013, and annually thereafter.

    1 unchanged paragraphHide unchanged text

    "(c) Definitions.--In this section:

    "(1) The term 'contingency operation' has the meaning given that term in section 101(a)(13) of title 10, United States Code.

    "(2) The term 'Interagency Committee on Debarment and Suspension' means the committee constituted under sections 4 and 5 of Executive Order No. 12549.".

    [struck: (c) Additional Bases for Suspension or Debarment][inserted: SEC. 881A. ADDITIONAL BASES FOR SUSPENSION OR DEBARMENT].[struck: --]

    ([struck: 1][inserted: a]) In [struck: general][inserted: General].--Not later than 180 days after the date of the enactment of this Act, the [struck: Secretary of Defense][inserted: Federal Acquisition Regulation] shall [struck: revise the Department of Defense supplement ][inserted: be revised ]to [struck: the Federal Acquisition Regulation to ]provide for the automatic referral of a person described in [struck: paragraph][inserted: subsection] ([struck: 2][inserted: b]) to the appropriate suspension and debarment official for a determination whether or not the person should be suspended or debarred.

    ([struck: 2][inserted: b]) Covered [struck: persons][inserted: Persons].--A person described in this [struck: paragraph][inserted: subsection] is any person as follows:

    ([struck: A][inserted: 1]) A person who has been charged with a Federal criminal offense relating to the award or performance of a [struck: Department][inserted: contract] of [struck: Defense contract][inserted: an executive agency].

    ([struck: B][inserted: 2]) A person who has been alleged, in a civil or criminal proceeding brought by the United States, to have engaged in fraudulent actions in connection with the award or performance of a [struck: Department][inserted: contract] of [struck: Defense contract][inserted: an executive agency].

    ([struck: C][inserted: 3]) A person [struck: who ][inserted: that does not maintain an office within the United States and ]has been determined by the head of a contracting agency of [struck: the Department of Defense ][inserted: an executive agency ]to have failed to pay or refund amounts due or owed to the Federal Government in connection with the performance of a [struck: Department][inserted: contract] of [struck: Defense contract][inserted: the executive agency].

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

    Inserted: (1) The term "executive agency" has the meaning given that term in section 133 of title 41, United States Code.

    Inserted: (2) The term "person" has the meaning given that term in section 1 of title 1, United States Code.

    Original wording

    Strike section 881 and insert the following:

12. 12

    Change 12: Rewrites section 882

    Replaces

    In S. 3254 · Placed on Calendar Senate

    SEC. 882. UNIFORM CONTRACT WRITING SYSTEM REQUIREMENTS[struck: FOR THE DEPARTMENT OF DEFENSE].

    (a) Uniform Standards and Controls Required.--Not later than 180 days after the date of the enactment of this Act, the [struck: Secretary of Defense ][inserted: officials specified in subsection (b) ]shall--

    (1) establish uniform data standards, internal control requirements, independent verification and validation requirements, and business process rules for processing [struck: Department of Defense ]procurement requests, contracts, receipts, and invoices[inserted: by the Department of Defense or other executive agencies, as applicable];

    (2) establish and maintain one or more approved electronic contract writing systems that conform with the standards, requirements, and rules established pursuant to paragraph (1); and

    (3) require the use of electronic contract writing systems approved in accordance with paragraph (2) for all contracts entered into by the Department[inserted: of Defense or other executive agencies, as applicable].

    Struck: (b) Phase-in of Implementation of Requirement for Approved Systems.--The Secretary may phase in the implementation of the requirement to use approved electronic contract writing systems in accordance with subsection (a)(3) over a period of up to five years beginning with the date of the enactment of this Act.

    Struck: (c) Report.--Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to the congressional defense committees a report on the implementation of the requirements of this section. The report shall, at a minimum--

    Inserted: (b) Covered Officials.--The officials specified in this subsection are the following:

    Inserted: (1) The Secretary of Defense, with respect to the Department of Defense and the military departments.

    Inserted: (2) The Administrator of the Office of Federal Procurement Policy, with respect to the executive agencies other than the Department of Defense and the military departments.

    Inserted: (c) Electronic Writing Systems for Department of State and USAID.--Notwithstanding subsection (b)(2), the Secretary of State and the Administrator of the United States Agency for International Development may meet the requirements of subsection (a)(2) with respect to approved electronic contract writing systems for the Department of State and the United States Agency for International Development, respectively, if the Secretary and the Administrator, as the case may be, demonstrate to the Administrator of the Office of Federal Procurement Policy that prior investment of resources in existing contract writing systems will result in the most cost effective and efficient means to satisfy such requirements.

    Inserted: (d) Phase-in of Implementation of Requirement for Approved Systems.--The officials specified in subsection (b) may phase in the implementation of the requirement to use approved electronic contract writing systems in accordance with subsection (a)(3) over a period of up to five years beginning with the date of the enactment of this Act.

    Inserted: (e) Reports.--Not later than 180 days after the date of the enactment of this Act, the officials specified in subsection (b) shall each submit to the appropriate committees of Congress a report on the implementation of the requirements of this section. Each report shall, at a minimum--

    (1) describe the standards, requirements, and rules established pursuant to subsection (a)(1);

    (2) identify the electronic contract writing systems approved pursuant to subsection (a)(2) and, if multiple systems are approved, explain why the use of such multiple systems is the most efficient and effective approach to meet the contract writing needs of the [struck: Department][inserted: Federal Government]; and

    (3) provide the schedule for phasing in the use of approved electronic contract writing systems in accordance with subsections (a)(3) and ([struck: b][inserted: d]).

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

    Inserted: (1) The term "appropriate committees of Congress" means--

    Inserted: (A) the Committee on Armed Services, the Committee on Foreign Relations, the Committee on Homeland Security and Governmental Affairs, and the Committee on Appropriations of the Senate; and

    Inserted: (B) the Committee on Armed Services, the Committee on Foreign Affairs, the Committee on Oversight and Government Reform, and the Committee on Appropriations of the House of Representatives.

    Inserted: (2) The term "executive agency" has the meaning given that term in section 133 of title 41, United States Code.

    Original wording

    Strike section 882 and insert the following:

13. 13

    Change 13: Rewrites section 883

    Replaces

    In S. 3254 · Placed on Calendar Senate

    SEC. 883. COMPTROLLER GENERAL OF THE UNITED STATES REVIEW OF USE BY THE DEPARTMENT OF DEFENSE[struck: ][inserted: , THE DEPARTMENT ]OF [inserted: STATE, AND THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT OF ]URGENT AND COMPELLING EXCEPTION TO COMPETITION.

    Struck: (a) Review Required.--The Comptroller General of the United States shall review the use by the Department of Defense of the unusual and compelling urgency exception to full and open competition provided in section 2304(c)(2) of title 10, United States Code.

    ([struck: b][inserted: a]) [struck: Matters To Be Reviewed][inserted: Review Required].--The [struck: review of the use ][inserted: Comptroller General ]of the [struck: unusual and compelling urgency exception required by subsection (a) ][inserted: United States ]shall [struck: include a ]review [inserted: each ]of the following:

    Struck: (1) The pattern of use of the exception by acquisition organizations within the Department in order to determine which organizations are commonly using the exception and the frequency of such use.

    Inserted: (1) The use by the Department of Defense of the unusual and compelling urgency exception to full and open competition provided in section 2304(c)(2) of title 10, United States Code.

    Inserted: (2) The use by each of the Department of State and the United States Agency for International Development of the unusual and compelling urgency exception to full and open competition provided in section 3304(a)(2) of title 41, United States Code.

    Inserted: (b) Matters To Be Reviewed.--The review of the use of an unusual and compelling urgency exception required by subsection (a) shall include a review of the following:

    Inserted: (1) The pattern of use of the exception by acquisition organizations within the Department of Defense, the Department of State, and the United States Agency for International Development in order to determine which organizations are commonly using the exception and the frequency of such use.

    (2) The range of items or services being acquired through the use of the exception.

    (3) The process for reviewing and approving justifications involving the exception.

    (4) Whether the justifications for use of the exception typically meet the relevant requirements of the Federal Acquisition Regulation applicable to the use of the exception.

    (5) The extent to which the exception is used to solicit bids or proposals from only one source and the extent to which such sole-source procurements are appropriately documented and justified.

    (6) The compliance of the Department [inserted: of Defense, the Department of State, and the United States Agency for International Development ]with the requirements of section 2304(d)(3) of title 10, United States Code, [inserted: or section 3304(c)(1)(B) of title 41, United States Code, as applicable, ]that limit the duration of contracts awarded pursuant to the exception and require approval for any such contract in excess of one year.

    (c) Report.--Not later than one year after the date of the enactment of this Act, the Comptroller General shall submit to the [struck: Committees on Armed Services ][inserted: appropriate committees ]of [struck: the Senate and the House of Representatives ][inserted: Congress ]a report on the review required by subsection (a), including a discussion of each of the matters specified in subsection (b). The report shall include any recommendations relating to the matters reviewed that the Comptroller General considers appropriate.

    Inserted: (d) Appropriate Committees of Congress Defined.--In this section, the term "appropriate committees of Congress" means--

    Inserted: (1) the Committee on Armed Services, the Committee on Foreign Relations, the Committee on Homeland Security and Governmental Affairs, and the Committee on Appropriations of the Senate; and

    Inserted: (2) the Committee on Armed Services, the Committee on Foreign Affairs, the Committee on Oversight and Government Reform, and the Committee on Appropriations of the House of Representatives.

    Original wording

    Strike section 883 and insert the following:

14. 14

    Change 14: Rewrites section 1245

    Replaces

    In S. 3254 · Placed on Calendar Senate

    SEC. 1245. [struck: LIMITATION ON AVAILABILITY OF FUNDS ][inserted: SUSTAINABILITY REQUIREMENTS ]FOR CERTAIN CAPITAL PROJECTS IN CONNECTION WITH OVERSEAS CONTINGENCY OPERATIONS.

    (a) Limitation.--

    Inserted: (1) In general.--Commencing 60 days after the date of the enactment of this Act--

    ([struck: 1][inserted: A]) [struck: In general.--Upon the commencement or designation of a military operation as an overseas contingency operation on or after the date that is 60 days after the date of the enactment of this Act, ]amounts authorized to be appropriated for the Department of Defense may not be obligated or expended for a capital project described in subsection (b) unless the Secretary of Defense, in consultation with the United States commander of military operations in the country in which the project will be carried out, completes an assessment on the necessity and sustainability of the project[struck: .][inserted: ;]

    Inserted: (B) amounts authorized to be appropriated for the Department of State may not be obligated or expended for a capital project described in subsection (b) unless the Secretary of State, in consultation with the Chief of Mission in the country in which the project will be carried out, completes an assessment on the necessity and sustainability of the project; and

    Inserted: (C) amounts authorized to be appropriated for the United States Agency for International Development may not be obligated or expended for a capital project described in subsection (b) unless the Administrator of the United States Agency for International Development, in consultation with the Mission Director and the Chief of Mission in the country in which the project will be carried out, completes an assessment on the necessity and sustainability of the project.

    (2) Elements.--Each assessment on a capital project under this subsection shall include, but not be limited to, the following:

    (A) An estimate of the total cost of the [inserted: completed ]project to the United States.

    (B) An estimate of the financial and other requirements necessary for the host government to sustain the project on an annual basis after completion of the project.

    (C) An assessment whether the host government has the capacity (in both financial and human resources) to maintain and use the project after completion.

    (D) A description of any arrangements for the sustainment of the project following its completion if the host government lacks the capacity (in [struck: either ]financial or human resources) to maintain the project.

    (E) An assessment whether the host government has requested or expressed its need for the project, and an explanation of the decision to proceed with the project absent such request or need.

    (F) An assessment [inserted: by the Secretary ]of [inserted: Defense, where applicable, of ]the effect of the project on the military mission of the United States in the country concerned[struck: .]

    (b) Covered Capital Projects.--

    (1) In general.--Except as provided in paragraph (2), a capital project described in this subsection is any capital project overseas for an overseas contingency operation for the [struck: direct ]benefit of a host country and funded by the Department of Defense[struck: ][inserted: , the Department of State, or the United States Agency for International Development, as applicable, ]if the capital project--

    (A) in the case of a project that directly supports building the capacity of indigenous security forces in the host country, has an estimated value in excess of $10,000,000;[struck: or]

    (B) in the case of any [struck: other ]project[inserted: not covered by subparagraph (A) that is to be funded by the Department of State or the United States Agency for International Development], has an estimated value in excess of [struck: $2,000,000.][inserted: $5,000,000; or]

    Inserted: (C) in the case of any other project, has an estimated value in excess of $2,000,000.

    (2) Exclusion.--A capital project described in this subsection does not include any project for military construction (as that term is defined in section 114[struck: ](b) of title 10, United States Code) or a military family housing project under section 2821 of such title.

    (c) Waiver.--The Secretary of Defense[struck: ][inserted: , the Secretary of State, or the Administrator of the United States Agency for International Development, as applicable, ]may waive the limitation in subsection (a) in order to initiate a capital project if [struck: the][inserted: such] Secretary [inserted: or the Administrator, as the case may be, ]determines that the project is in the national security[struck: ][inserted: , diplomatic, or humanitarian ]interests of the United States. In the first report submitted under subsection (d) after any waiver under this subsection, [struck: the][inserted: such] Secretary [inserted: or the Administrator ]shall include a detailed justification of such waiver. Not later than [struck: 180][inserted: 45] days after issuing a waiver under this subsection, [struck: the][inserted: such] Secretary [inserted: or the Administrator ]shall submit to Congress the assessment described in subsection (a) with respect to the capital project concerned.

    (d) [struck: Quarterly][inserted: Semi-annual] Reports.--

    (1) In general.--Not later than 30 days after the end of each fiscal-year [struck: quarter][inserted: half-year] the Secretary of Defense[struck: ][inserted: , the Secretary of State, and the Administrator of the United States Agency for International Development ]shall [inserted: each ]submit to [inserted: the appropriate committees of ]Congress a report setting forth each assessment conducted under subsection (a) [inserted: by such Secretary or the Administrator, as the case may be, ]during such fiscal-year [struck: quarter][inserted: half-year, including the elements of each capital project assessed specified in subsection (a)(2)].

    Struck: (2) Form.--Each report shall be submitted in unclassified form, but may include a classified annex.

    Struck: (e) Capital Project Defined.--In this section, the term "capital project" has the meaning given that term in section 308 of the Aid, Trade, and Competitiveness Act of 1992 (22 U.S.C. 2421e).

    Inserted: (2) Additional elements.--In addition to the matters provided for in paragraph (1), each report under that paragraph shall include the following:

    Inserted: (A) For each capital project covered by such report, an evaluation (other than by amount of funds expended) of the effectiveness of such project, including, at a minimum, the following:

    Inserted: (i) The stated goals of the project.

    Inserted: (ii) The actions taken to assess and verify whether the project has met the stated goals of the project or is on track to meet such goals when completed.

    Inserted: (iii) The current and anticipated levels of involvement of local governments, communities, and individuals in the project.

    Inserted: (B) For each country or region in which a capital project covered by such report is being carried out, an assessment of the following:

    Inserted: (i) The current and anticipated effects of violence in the country or region on all the projects in the country or region covered by such report.

    Inserted: (ii) The current and anticipated levels of corruption or fraud in the country or region in the connection with all the projects in the country or region covered by such report, and the current and anticipated risks of corruption or fraud in connection with such projects.

    Inserted: (3) Form.--Each report shall be submitted in unclassified form, but may include a classified annex.

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

    Inserted: (1) The term "appropriate committees of Congress" means--

    Inserted: (A) the Committee on Armed Services, the Committee on Foreign Relations, the Committee on Homeland Security and Governmental Affairs, and the Committee on Appropriations of the Senate; and

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    Inserted: (B) the Committee on Armed Services, the Committee on Foreign Affairs, the Committee on Oversight and Government Reform, and the Committee on Appropriations of the House of Representatives.

    Inserted: (2) The term "capital project" has the meaning given that term in section 308 of the Aid, Trade, and Competitiveness Act of 1992 (22 U.S.C. 2421e).

    Inserted: (3) The term "overseas contingency operation" means a military operation outside the United States and its territories and possessions that is a contingency operation (as that term is defined in section 101(a)(13) of title 10, United States Code).

    Original wording

    Strike section 1245 and insert the following:

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As printed