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Subtitle A—Acquisition Policy and
Management
SEC. 801. CONSOLIDATION OF CONTRACT
REQUIREMENTS.
(a) AMENDMENT TO TITLE 10.—(1) Chapter 141 of title 10,
United States Code, is amended by
inserting after section 2381 the
following new section:
‘‘§ 2382. Consolidation of contract
requirements: policy and
restrictions
‘‘(a) POLICY.—The Secretary of Defense shall require the Secretary
of each military department, the head of
each Defense Agency,
and the head of each Department of Defense
Field Activity to ensure
that the decisions made by that official
regarding consolidation
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of contract requirements of the
department, agency, or field activity,
as the case may be, are made with a view
to providing small business
concerns with appropriate opportunities to
participate in Department
of Defense procurements as prime
contractors and appropriate
opportunities to participate in such
procurements as subcontractors.
‘‘(b) LIMITATION ON USE OF ACQUISITION STRATEGIES INVOLVING
CONSOLIDATION.—(1) An official of a military department, Defense
Agency, or Department of Defense Field
Activity may not execute
an acquisition strategy that includes a
consolidation of contract
requirements of the military department,
agency, or activity with a
total value in excess of $5,000,000,
unless the senior procurement executive
concerned first—
‘‘(A) conducts market research;
‘‘(B) identifies any alternative
contracting approaches that
would involve a lesser degree of
consolidation of contract requirements;
and
‘‘(C) determines that the consolidation is
necessary and justified.
‘‘(2) A senior procurement executive may
determine that an acquisition
strategy involving a consolidation of
contract requirements
is necessary and justified for the
purposes of paragraph (1) if the
benefits of the acquisition strategy
substantially exceed the benefits
of each of the possible alternative
contracting approaches identified
under subparagraph (B) of that paragraph.
However, savings in administrative
or personnel costs alone do not
constitute, for such purposes,
a sufficient justification for a
consolidation of contract requirements
in a procurement unless the total amount
of the cost
savings is expected to be substantial in
relation to the total cost of
the procurement.
‘‘(3) Benefits considered for the purposes
of paragraphs (1) and
(2) may include cost and, regardless of
whether quantifiable in dollar
amounts—
‘‘(A) quality;
‘‘(B) acquisition cycle;
‘‘(C) terms and conditions; and
‘‘(D) any other benefit.
‘‘(c) DEFINITIONS.—In this section:
‘‘(1) The terms ‘consolidation of contract
requirements’ and
‘consolidation’, with respect to contract
requirements of a military
department, Defense Agency, or Department
of Defense
Field Activity, mean a use of a
solicitation to obtain offers for
a single contract or a multiple award
contract to satisfy two or
more requirements of that department,
agency, or activity for
goods or services that have previously
been provided to, or performed
for, that department, agency, or activity
under two or
more separate contracts smaller in cost
than the total cost of the
contract for which the offers are
solicited.
‘‘(2) The term ‘multiple award contract’
means—
‘‘(A) a contract that is entered into by
the Administrator
of General Services under the multiple
award schedule
program referred to in section 2302(2)(C)
of this title;
‘‘(B) a multiple award task order contract
or delivery
order contract that is entered into under
the authority of
sections 2304a through 2304d of this title
or sections 303H
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through 303K of the Federal Property and
Administrative
Services Act of 1949 (41 U.S.C. 253h
through 253k); and
‘‘(C) any other indeterminate delivery,
indeterminate
quantity contract that is entered into by
the head of a Federal
agency with two or more sources pursuant
to the same
solicitation.
‘‘(3) The term ‘senior procurement
executive concerned’
means—
‘‘(A) with respect to a military
department, the official
designated under section 16(3) of the
Office of Federal Procurement
Policy Act (41 U.S.C. 414(3)) as the
senior procurement
executive for the military department; or
‘‘(B) with respect to a Defense Agency or
a Department
of Defense Field Activity, the official so
designated for the
Department of Defense.
‘‘(4) The term ‘small business concern’
means a business
concern that is determined by the
Administrator of the Small
Business Administration to be a
small-business concern by application
of the standards prescribed under section
3(a) of the
Small Business Act (15 U.S.C. 632(a)).’’.
(2) The table of sections at the beginning
of such chapter is
amended by inserting after the item
relating to section 2381 the following
new item:
‘‘2382. Consolidation of contract requirements:
policy and restrictions.’’.
(b) DATA REVIEW.—(1) The Secretary of Defense shall revise the
data collection systems of the Department
of Defense to ensure that
such systems are capable of identifying
each procurement that involves
a consolidation of contract requirements
within the department
with a total value in excess of
$5,000,000.
(2) The Secretary shall ensure that
appropriate officials of the
Department of Defense periodically review
the information collected
pursuant to paragraph (1) in cooperation
with the Small Business
Administration—
(A) to determine the extent of the
consolidation of contract
requirements in the Department of Defense;
and
(B) to assess the impact of the
consolidation of contract requirements
on the availability of opportunities for
small business
concerns to participate in Department of
Defense procurements,
both as prime contractors and as
subcontractors.
(3) In this subsection:
(A) The term ‘‘consolidation of contract
requirements’’ has
the meaning given that term in section
2382(c)(1) of title 10,
United States Code, as added by subsection
(a).
(B) The term ‘‘small business concern’’
means a business
concern that is determined by the
Administrator of the Small
Business Administration to be a
small-business concern by application
of the standards prescribed under section
3(a) of the
Small Business Act (15 U.S.C. 632(a)).
(c) APPLICABILITY.—This section applies with respect to procurements
for which solicitations are issued after
the date occurring 180
days after the date of the enactment of
this Act.
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SEC. 802. QUALITY CONTROL IN
PROCUREMENT OF AVIATION CRITICAL
SAFETY ITEMS AND RELATED SERVICES.
(a) QUALITY CONTROL POLICY.—The Secretary of
Defense shall
prescribe in regulations a quality control
policy for the procurement
of aviation critical safety items and the
procurement of modifications,
repair, and overhaul of such items.
(b) CONTENT OF REGULATIONS.—The policy set forth in the regulations
shall include the following requirements:
(1) That the head of the design control
activity for aviation
critical safety items establish processes
to identify and manage
the procurement, modification, repair, and
overhaul of aviation
critical safety items.
(2) That the head of the contracting
activity for an aviation
critical safety item enter into a contract
for the procurement,
modification, repair, or overhaul of such
item only with a
source approved by the design control
activity in accordance
with section 2319 of title 10, United
States Code.
(3) That the aviation critical safety
items delivered, and the
services performed with respect to
aviation critical safety items,
meet all technical and quality
requirements specified by the design
control activity.
(c) DEFINITIONS.—In this section, the terms ‘‘aviation critical
safety item’’ and ‘‘design control
activity’’ have the meanings given
such terms in section 2319(g) of title 10,
United States Code, as
amended by subsection (d).
(d) CONFORMING AMENDMENT TO TITLE 10.—Section 2319 of
title 10, United States Code, is amended—
(1) in subsection (c)(3), by inserting
after ‘‘the contracting
officer’’ the following: ‘‘(or, in the
case of a contract for the procurement
of an aviation critical safety item, the
head of the design
control activity for such item)’’; and
(2) by adding at the end the following new
subsection:
‘‘(g) DEFINITIONS.—In this section:
‘‘(1) The term ‘aviation critical safety
item’ means a part,
an assembly, installation equipment,
launch equipment, recovery
equipment, or support equipment for an
aircraft or aviation
weapon system if the part, assembly, or
equipment contains a
characteristic any failure, malfunction,
or absence of which
could cause a catastrophic or critical
failure resulting in the
loss of or serious damage to the aircraft
or weapon system, an
unacceptable risk of personal injury or
loss of life, or an
uncommanded engine shutdown that
jeopardizes safety.
‘‘(2) The term ‘design control activity’,
with respect to an
aviation critical safety item, means the
systems command of a
military department that is specifically
responsible for ensuring
the airworthiness of an aviation system or
equipment in which
the item is to be used.’’.
SEC. 803. FEDERAL SUPPORT FOR
ENHANCEMENT OF STATE AND
LOCAL ANTI-TERRORISM RESPONSE
CAPABILITIES.
(a) PROCUREMENTS OF ANTI-TERRORISM TECHNOLOGIES AND
SERVICES BY STATE AND LOCAL GOVERNMENTS.—The Administrator
for Federal Procurement Policy shall
establish a program under
which States and units of local government
may procure through
contracts entered into by the Department
of Defense or the Department
of Homeland Security anti-terrorism technologies
or anti-ter-
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rorism services for the purpose of
preventing, detecting, identifying,
deterring, or recovering from acts of
terrorism.
(b) AUTHORITIES.—Under the program, the Secretary of Defense
and the Secretary of Homeland Security
may, but shall not be required
to, award contracts using the procedures
established by the
Administrator of General Services for the
multiple awards schedule
program of the General Services
Administration.
(c) DEFINITION.—In this section, the term ‘‘State or local government’’
has the meaning provided in section
502(c)(3) of title 40,
United States Code.
SEC. 804. SPECIAL TEMPORARY CONTRACT
CLOSEOUT AUTHORITY.
(a) AUTHORITY.—The Secretary of Defense may settle any financial
account for a contract entered into by the
Secretary or the Secretary
of a military department before October 1,
1996, that is administratively
complete if the financial account has an
unreconciled
balance, either positive or negative, that
is less than $100,000.
(b) FINALITY OF DECISION.—A settlement under this section
shall be final and conclusive upon the
accounting officers of the
(c) REGULATIONS.—The Secretary of Defense shall prescribe regulations
for the administration of the authority
under this section.
(d) TERMINATION OF AUTHORITY.—A financial account may not
be settled under this section after