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United States · Law · S

S. 1587 (103rd)

Federal Acquisition Streamlining Act of 1994

enactedUnited States· United States Congress· EN

Introduced

26 October 1993

Last action

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Status

Became Public Law No: 103-355.

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Source updated

14 January 2025

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Summary

TABLE OF CONTENTS: Title I: Contract Formation Subtitle A: Competition Statutes Subtitle B: Truth in Negotiations Subtitle C: Research and Development Subtitle D: Procurement Protests Subtitle E: Definitions and Other Matters Title II: Contract Administration Subtitle A: Contract Payment Subtitle B: Cost Principles Subtitle C: Audit and Access to Records Subtitle D: Cost Accounting Standards Subtitle E: Administration of Contract Provisions Relating to Price, Delivery, and Product Quality Subtitle F: Claims and Disputes Title III: Service Specific and Major Systems Statutes Subtitle A: Major Systems Statutes Subtitle B: Testing Statutes Subtitle C: Service Specific Laws Subtitle D: Department of Defense Commercial and Industrial Activities Subtitle E: Fuel- and Energy-Related Laws Subtitle F: Fiscal Statutes Subtitle G: Miscellaneous Title IV: Simplified Acquisition Threshold and Socioeconomic, Small Business, and Miscellaneous Laws Subtitle A: Simplified Acquisition Threshold Subtitle B: Socioeconomic and Small Business Laws Subtitle C: Miscellaneous Acquisition Laws Title V: Intellectual Property Subtitle A: Technology Transfer Subtitle B: Government Use of Private Patents, Copyrights, and Trade Secrets Title VI: Standards of Conduct Subtitle A: Ethics Provisions Subtitle B: Additional Amendments Title VII: Defense Trade and Cooperation Title VIII: Commercial Items Title IX: Effective Date Federal Acquisition Streamlining Act of 1993 - Title I: Contract Formation - Subtitle A: Competition Statutes - Part 1: Armed Services Acquisitions - Amends the Competition in Contracting Act of 1984 (CICA) and other Federal procurement law with respect to subject agency (National Aeronautics and Space Administration, Coast Guard, Department of Defense (DOD), and respective military departments) procurement to revise: (1) competition requirements, with changes prohibiting purchase or contract class considerations by subject agencies in determining whether the exclusion of a particular source of covered items from competition in procurements to establish alternative sources of supply will result in reduced costs and increased competition or be in the interest of national defense; and (2) solicitation requirements, with changes requiring the head of a subject agency to include cost or price as a factor to be considered in evaluating competitive proposals and disclose certain information to offerors on the importance of other evaluation factors in relation to cost and price. (Sec. 1003) Revises certain qualifying circumstances for award of contracts between $100,000 and $1 million under noncompetitive procedures. Substitutes for approval of contracts between $1 million and $10 million, "head of the contracting activity" for "head of the procuring activity." (Sec. 1005) Repeals: (1) expiring authority for the Secretary of Defense (Secretary) to enter into master agreements and issue task orders and adds new authority for the head of a subject agency to enter into task and delivery order contracts; and (2) requirements for prior determination with respect to cost or incentive type contract use and for annual reports by DOD advocates for competition. (Sec. 1012) Relocates provisions concerning evaluation of purchase options and consolidates others for encouragement of competition and cost savings. (Sec. 1013) Requires: (1) notice to all offerors not awarded a contract within three days of the contract award; (2) debriefings providing certain basic information on the award to unsuccessful offerors, if requested within seven days after a competitive award; and (3) the head of the contracting activity, upon the request of an offeror, to establish, in protests to the Comptroller General (CG), a protest file affording the offeror reasonable access. (Sec. 1016) Authorizes the head of a subject agency to take certain actions, such as issuing a new solicitation or terminating the contract, if, in connection with a protest, a solicitation, proposed award, or award does not comply with the law. Part II: Civilian Agency Acquisitions - Amends the Federal Property and Administrative Services Act of 1949 (FPASA) to make changes similar to those above with respect to civilian agencies. Part III: Acquisitions Generally - Repeals congressional reporting requirements on executive agency contract competition. Subtitle B: Truth in Negotiations - Part I: Armed Services Acquisitions - Amends provisions commonly referred to as the Truth in Negotiations Act (TINA) to revise cost or pricing data requirements to: (1) repeal the sunset date for the requirement that offerors submit cost or pricing data for prime contracts above the $500,000 threshold (thus making it permanent); and (2) make changes in exceptions to data submission requirements. (Sec. 1203) Requires a written determination to be made by the head of the subject agency before requiring the submission of cost or pricing data in cases where the acquisition is below the TINA threshold or one of the TINA exceptions applies. (Sec. 1204) Creates a new exception to the submission requirement for commercial item cost or pricing data that applies where competion is not practicable and the contracting officer obtains adequate data for evaluating the reasonableness of the contract price. (Sec. 1206) Provides for: (1) regulations concerning the types of information that must be submitted for the contracting officer to consider in determining price reasonableness when cost or pricing data are not required because the acquisition is not expected to exceed the $500,000 threshold; and (2) consistent time references with respect to when an agreement on the price of a prime contract is effective for purposes related to contract price reductions because of defective data. (Sec. 1208) Defines "subcontract" to include transfers of commercial items within a company to tie in with the new definition of commercial item under OFPPA added by title VIII of this Act. Part II: Civilian Agency Aquisitions - Amends FPASA to replace requirements governing submission of cost or pricing data and commercial pricing for supplies with requirements nearly identical to those under TINA (and the changes made above by this subtitle to TINA) governing submission of such data. Subtitle C: Research and Development - Revises research and development (R&D) authority of DOD and the military departments, repealing specified R&D milestone requirements with respect to certain defense research activities. (Sec. 1302) Consolidates the R&D authority of DOD and the military Subtitle D: Procurement Protests - Part I: Protests to the Comptroller General - Modifies CICA's procurement protest system, with various changes: (1) adding a new definition of "protest"; (2) establishing new time frames for certain actions by the CG and others with respect to protests; (3) allowing the CG, in protests, to recommend agency payment of interested party consultant and expert witness fees, in addition to attorneys' fees currently required; (4) requiring subject agencies to pay recommended amounts, limited (except with respect to small businesses) to appropriate rates under the Equal Access to Justice Act, or else report to the CG the reasons for failing to make such payment;(5) directing the CG to report to the Congress on agency implementation of CG recommendations; and (6) authorizing the CG to prescribe procedures for time frame calculations and electronic filings and dissemination under the system. Part II: Protests in the Federal Courts - Amends CICA and the Federal judicial code (FJC) to give the U.S. Court of Federal Claims Court) jurisdiction over protests. Part III: Protests in Procurements of Automatic Data Processing - Amends FPASA to: (1) authorize the Administrator of the General Services Administration (GSA) to revoke a delegation of procurement authority after a contract is awarded whenthe award is connected with a violation of law; (2) require GSA's board of contract appeals (bard) to review, upon an interested party's request, any decision by a contracting officer alleged to have violated the law or the conditions of a delegated authority; and (3) change the time frames for final board decisions on protests and hearings for suspending procurement authority. (Sec. 1434) Authorizes dismissal of protests brought in bad faith and board ordered payment of additional specified administrative fees, as limited above under part I, to prevailing parties. (Sec. 1436) Requires public disclosuure of any settlement agreement providing for dismissal of a protest and involving an expenditure of appropriated funds. Requires agencies to make settlement payments from the judgment fund. (Sec. 1437) Makes changes conforming to those above under part II with regard to Federal court jurisdiction over protests. (Sec. 1438) Requires the board to adopt and issue appropriate rules and procedures for time frame calculations, electronic filings and disseminations, and sanctions for frivolous or bad faith protests or willful abuses of the board's process. (Sec. 1439) Adds to FPASA the new definition of "protest" added above under part I, as well as a definition of "prevailing party." (Sec. 1440) Requires the GSA Administrator to collect and compile data on procurement of automatic data processing equipment. Subtitle E: Definitions and Other Matters - Part I: Armed Services Acquisitions - Revises subject agency procurement law: (1) definitions, adding new terms such as "commercial item," "nondevelopmental item," and "simplified acquisition threshold" with cross references to the Office of Federal Procurement Policy Act (OFPPA); and (2) provisions on decisions, while retaining requirements on the form and retention of findings. (Sec. 1502) Consolidates provisions on delegation of procurement functions by the head of a subject agency. (Sec. 1504) Makes technical changes with respect to the limitation on undefinitized contractual actions by subject agencies. (Sec. 1505) Repeals DOD provisions on: (1) production special tooling and production special test equipment; and (2) independent price determination in certain contract solicitations. (Sec. 1506) Gives the Secretary of Defense authority to prescribe regulations on contract bids for a military department. Part II: Civilian Agency Acquisitions - Adds the new terms specified under part I above to FPASA's definitions with cross references to OFPPA. (Sec. 1552) Makes changes parallel to those above concerning procurement function delegation and decisions for civilian agencies. (Sec. 1554) Limits the use of undefinitized contractual actions by civilian agencies. (Sec. 1555) Repeals provisions on Internal Revenue Service procurement of expert and attorney services. Title II: Contract Administration - Subtitle A: Contract Payment - Part I: Armed Services Acquisitions - Reorganizes contract financing provisions for subject agencies, consolidating and eliminating those with regard to certain navy contracts which are redundant and obsolete, adding specific policy for contract financing, and revising conditions for progress payments. (Sec. 2002) Repeals DOD vouchering requirements. Part II: Civilian Agency Acquisitions - Makes similar organizational changes with respect to contract financing for executive agencies, adding provisions mirroring those for the military departments which concern action in case of fraud. Subtitle B: Cost Principles - Part I: Armed Services Acquisitions - Amends provisions on allowable contractor costs to: (1) revise congressional reporting requirements with regard to CG's evaluation of DOD's efforts under such provisions to guard against unallowable costs under defense contracts; and (2) raise the threshold for coverage under such provisions to $500,000. (Sec. 2102) Eliminates profit controls on defense contracts during periods of national emergencies. Part II: Civilian Agency Acquisitions - Amends FPASA to replace provisions for executive agencies on allowable contractor costs with provisions nearly identical to those for DOD amended in part I above (and the changes made by such amendments). Part III - Acquisitions Generally - Repeals OFPPA provisions on Government contractor travel expenses. Subtitle C: Audit and Access to Records - Part I: Armed Services Acquisitions - Consolidates and revises authority for subject agency examination of contractor records. Part II: Civilian Agency Acquisitions - Relocates and revises provisions under FPASA for executive agency examination of contractor records, replacing them with provisions nearly identical to those in part I above for subject agencies. Subtitle D: Cost Accounting Standards - Repeals an obsolete deadline under OFPPA for procedures governing actions of the Cost Accounting Standards Board, while retaining provisions authorizing their issuance. Subtitle E: Price, Delivery, and Product Quality - Part I: Armed Services Acquisitions - Repeals special qualification requirements for contractors on aircraft and ship spare parts contracts. (Sec. 2402) Specifies certain guidelines and procedures for inclusion in DOD regulations on contractor guarantees with regard to weapon systems. (Sec. 2403) Repeals army and air force procurement provisions regarding the delivery of subsistence supplies. Part II: Acquisitions Generally - Reorganizes the Anti-Assignment Act, making technical changes and expanding authority to prohibit setoffs against assignees. (Sec. 2452) Amends Federal law to repeal requirements for contract deposit with the General Accounting Office. Subtitle F: Claims and Disputes - Part I: Armed Services Acquisitions - Repeals DOD contract claim certification requirements already slated for repeal under the National Defense Authorization Act for Fiscal Year 1993. (Sec. 2501) Restricts future payment under law of subject agency contract claims. Part II: Acquisitions Generally - Amends FJC to revise provisions regarding Federal court jurisdiction over contract disputes. (Sec. 2552) Amends the Contract Disputes Act of 1978 to: (1) require contractor and Government claims to be submitted for resolution within six years after the event giving rise to the claim; (2) raise thresholds for contracting officer certifications, decisions, and notifications; (3) raise the maximum amount for the small claims procedure; (4) reduce the period for filing claim actions in Claims Court; and (5) provide that claims include certain requests, including those for equitable adjustments to contract terms. Title III: Service Specific and Major System Statutes- Subtitle A: Major Systems Statutes - Modifies requirements with regard to major defense acquisition programs for: (1) independent cost and manpower estimates; and (2) program baseline descriptions and deviation reporting. (Sec. 3003) Repeals the mandate for: (1) Defense Enterprise Programs; and (2) competitive prototyping and alternative sources in major programs. Subtitle B: Testing Statutes - Repeals testing requirements for wheeled or tracked vehicles. (Sec. 3012) Substitutes vulnerability testing requirements for survivability and lethality testing. Authorizes less-than-full-up testing for high-value systems. (Sec. 3013) Authorizes the Secretary to provide for alternative operational testing and evaluation of major programs under certain conditions. (Sec. 3014) Creates a new exception to low-rate initial production requirements for strategic defense missiles. Subtitle C: Service Specific Laws - Consolidates and revises provisions on: (1) DOD and military department mobilization of industry in time of war, procurement for experimental purposes, and acceptance of gratuitous services of reserve officers; (2) availability of DOD and military department materials, information, and services for R&D and testing purposes; (3) the civil reserve air fleet, adding provisions regarding the use of military installations by fleet contractors; and (4) naval vessel fitness and salvage operations. (Sec. 3024) Repeals: (1) duplicative general army and air force (A&A) procurement authority, and authority for production equipment procurement as well; (2) obsolete delegation authority with regard to army rations procurement, and authority for A&A to purchase certain subsistence supplies, obtain assistance from mapping agencies, and reclaim unserviceable ammunition; and (3) various authority and requirements with respect to navy vessels, obsolete navy provisions on guided missiles, and authority for the Secretary of the Navy to provide contractors with relief from losses caused by enemy action and to sell degassing equipment. (Sec. 3034) Authorizes the international exchange of scientific personnel. Subtitle D: Department of Defense Commercial and Industrial Activities - Consolidates and revises authority for having supplies needed by DOD or the military departments made in U.S.-owned factories and arsenals. (Sec. 3052) Repeals requirements on DOD for accounting procedures for contracted advisory and assistance services. Codifies requirements for a separate consulting service category in the national budget. Subtitle E: Fuel- and Energy-Related Laws - Consolidates and revises provisions on contracts for storage, handling, and distribution of liquid fuels, including natural gas under the coverage of such provisions, among other changes. (Sec. 3062) Modifies provisions on DOD acquisition of petroleum, including natural gas under the coverage of such provisions, broadening the Secretary's exchange authority, and adding sales authority. Subtitle F: Fiscal Statutes - Gives DOD the authority to designate disbursing officers within DOD. Subtitle G: Miscellaneous - Amends obligation of funds provisions on production, warehousing, and distribution of supplies, removing certain restrictions. (Sec. 3082) Repeals provisions on aviation encouragement, product evaluation, and milk procurement. (Sec. 3085) Codifies limitations on subject agency vessel, aircraft, and vehicle leases, with modifications. Title IV: Simplified Acquisition Threshold and Socioeconomic, Small Business, and Miscellaneous Laws - Subtitle A: Simplified Acquisition Threshold - Part I: Establishment of Threshold - Amends OFPPA to establish a new simplified acquisition threshold (SAT) of $100,000, replacing the current small purchase threshold, for use also under the Small Business Act (SBA). Part II: Simplification of Procedures - Requires simplified procedures under the Federal Acquisition Regulation (FAR) for acquisitions under SAT. (Sec. 4013) Amends OFPPA and SBA to: (1) provide for continuation of existing notice thresholds for procurements over $25,000 (except that the requirement to allow 30 days for bid and proposal submission would apply only to contracts or orders in excess of SAT); and (2) prescribe additional contents for notices with respect to contracts between $25,000 and $100,000. Part III: Inapplicability of Laws to Acquisitions Not in Excess of Simplified Acquisition Threshold - Amends OFPPA loc suplyto authorize FAR to waive the applicability of future-enacted procurement laws on a class basis for contracts below SAT, unless the provision expressly prohibits such waiver. (Sec. 4031) Exempts: (1) subject agency contracts below SAT from contingent fees certifications, prohibitions on limiting subcontractor direct sales and doing business with certain subcontractors, and requirements for audits, supplier and supply source identification, and use of U.S. vessels for supply transportation; (2) civilian agency contracts below SAT from similar requirements; (3) prime contracts below SAT from procedural and other requirements of the Anti-Kickback Act of 1986; and (4) contracts below SAT from provisions commonly referred to as the Miller Act (MA), the Contract Work Hours and Safety Standards Act, the Drug-Free Workplace Act of 1988, and requirements under the Merchant Marine Act, 1936 to ship on American-Flag commercial vessels. Requires FAR to provide alternatives to payment bonds as payment protections for suppliers of labor and materials on certain contracts under MA. Part IV: Conforming Amendments - Makes certain conforming amendments with respect to armed services and civilian agency acquisitions. Part V: Revision of Regulations - Requires the Federal Acquisition Regulatory Council to review FAR to identify and amend, as appropriate, regulations applicable to acquisitions below SAT. (Sec. 4081) Requires agency heads to take similar action with respect to applicable supplemental regulations, policies, and procedures. Subtitle B: Socioeconomic and Small Business Laws - Exempts contracts for constructing, altering, furnishing, or equipping naval vessels from the Davis-Bacon Act (DBA) or the Service Contract Act of 1965, unless the President determines that it is in the interest of national defense to subject them. (Sec. 4102) Repeals: (1) obsolete reporting requirements under the Trade Agreements Act of 1979 pertaining to procurement of products produced in labor surplus areas; and (2) the Walsh-Healey Act (WHA), other than for certain definitional purposes. Repeals redundant requirements under FPASA regarding DBA and WHA applicability. Prohibits any Federal agency from purchasing any prisoner-made goods whose transportation in interstate commerce or importation is prohibited under Federal criminal laws. Exempts prison goods contracts below SAT from such prohibition. (Sec. 4103) Amends SBA to allow Federal agencies to contract directly with a socially and economically disadvantaged small business, rather than indirectly through the Small Business Administration, unless the business objects. Subtitle C: Miscellaneous Armed Services Acquisition Laws - Repeals several obsolete laws relating to procurement of naval aircraft and components. (Sec. 4152) Prohibits the use of appropriated funds to assist DOD contractors in preparing any material, report, list, or analysis on the economic effect of certain acquisition programs in particular States or congressional districts. (Sec. 4153) States that it is the policy of Congress that no legislation should be enacted that requires subject and civilian agency procurements to be made from a specified non-Federal source, unless the law identifies the non-Federal source involved and states that the procurement is required in contravention of such policy. Title V: Intellectual Property - Subtitle A: Technology Transfer - Amends the Stevenson-Wydler Technology Innovation Act of 1980 to address: (1) copyright protection for computer programs prepared by Federal employees, including those employees working under a cooperative R&D agreement; (2) use of copyrighted works of the Federal Government; and (3) distribution of royalties received by Federal agencies. (Sec. 5004) Amends Federal copyright law to conform to the changes made above with respect to the treatment of copyrighted works. Subtitle B: Government Use of Private Patents, Copyrights and Trade Secrets - Requires the issuance of regulations regarding the circumstances under which a contracting officer may withhold authorization or consent for a contractor to violate private patents in the performance of a contract. Prohibits any injunction from being issued for a violation of a patent right that occurs in the performance of a Federal contract. (Sec. 5012) Repeals navy provisions regarding the purchase of patents, patent applications, and licenses. Authorizes funds appropriated for military departments for purchasing supplies to be used to acquire: (1) technical data and computer software; and (2) releases for unauthorized use of such items. Title VI: Standards of Conduct - Subtitle A: Ethics Provisions - Revises OFPPA procurement integrity recusal, certification, training, and revolving door ban provisions, and adds rules of construction, harmonizes gratuities provisions with Government-wide ethics provisions, and makes changes in definitions under OFPPA's procurement integrity provisions. (Sec. 6002) Amends Federal criminal code financial interest provisions to cover persons who aid or abet violations. (Sec. 6003) Repeals several superseded and obsolete procurement ethics laws, including conflict of interest provisions in the Department of Energy Organization Act. Subtitle B: Additional Amendments - Amends OFPPA to prohibit the use of consultants to conduct evaluations or analyses of any aspect of an acquisition proposal if qualified Federal employees are available for the job. (Sec. 6051) Requires the FAR Council to review Federal regulations on use of advisory and assistance services and provide Federal agencies with appropriate guidance for determining whether expertise is available before contracting for such services to conduct acquisitions. (Sec. 6052) Repeals obsolete requirements for studies and a report on the extent of competition in the award of subcontracts by Federal prime contractors. (Sec. 6053) Doubles the waiting period required before significant changes proposed for acquisition regulations take effect, unless there are compelling circumstances for an earlier effective date. Title VII: Defense Trade and Cooperation - Repeals obsolete and redundant Buy American Act (BAA) provisions, and provisions under the Trade Agreements Act of 1970 relating to studies of BAA waivers. (Sec. 7002) Amends DOD provisions concerning defense memoranda of understanding and related agreements to replace references to such terms with International Cooperative Agreements and to expand the authorized scope of such agreements to cover logistics support. Repeals navy provisions for suspension of construction in case of treaty. (Sec. 7003) Provides for limited waiver of restrictions on accrued reimbursable liabilities and credits for contingency operations. Authorizes the Secretary to furnish or receive communications support and related supplies on a reciprocal basis for a period not to exceed 90 days: (1) in order to meet emerging operational requirements; or (2) incident to a joint military exercise with the allied country. Title VIII: Commercial Items - Amends OFPPA to add new definitions of "commercial item," "nondevelopmental item," "component," and "commercial component." (Sec. 8002) Creates a preference for executive agency acquisition of commercial and other nondevelopmental items. Repeals DOD provisions creating a preference for the acquisition of nondevelopmental items. (Sec. 8003) Requires FAR to include: (1) uniform contract clauses for commercial item and component contracts; (2) requirements pertaining to market acceptance and the use of warranties, firm, fixed price contracts for commercial items, and past performance of items and sources as a factor in awarding contracts; and (3) provisions to permit reliance on existing quality assurance systems for commercial items. Repeals DOD provisions for acquisition of commercial and nondevelopmental items. (Sec. 8004) Authorizes waiver on a class basis in FAR of the applicability of future enacted procurement laws to contracts and subcontracts for the acquisition of commercial items. (Sec. 8005) Provides for exemptions from requirements similar to those above under part III of subtitle A of title IV of this Act with respect to subject and civilian agency contracts for commercial items, and from requirements under the Federal Aviation Act of 1958, Federal Water Pollution Control Act, Clean Air Act, and OFPPA's procurement integrity certification provisions. (Sec. 8006) Amends OFPPA to authorize greater flexibility in setting deadlines for the submission of offers in contracts for the purchase of commercial items. (Sec. 8007) Establishes in the Office of Federal Procurement Policy the Advocate for Acquisition of Commercial and Nondevelopmental Items (replacing the current Advocate for the Acquisition of Commercial Products) for monitoring agency compliance with preference requirements and other duties regarding the acquisition of commercial and other nondevelopmental items. Gives agency competition advocates the added responsibility of promoting the acquisition of commercial and other nondevelopmental items. (Sec. 8009) Requires a CG review of Federal market research use for a report to the Congress. Title IX: Effective Date - Provides that the amendments made by this Act are effective upon enactment, except as otherwise provided.

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