S. 680 - Accountability in Government Contracting Act of 2007

110th CONGRESS
1st Session

S. 680

To ensure proper oversight and accountability in Federal contracting, and for other purposes.

IN THE SENATE OF THE UNITED STATES

February 17, 2007

Ms. COLLINS (for herself, Mr. LIEBERMAN, Mr. COLEMAN, Mr. CARPER, and Mrs. MCCASKILL) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

A BILL

To ensure proper oversight and accountability in Federal contracting, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Accountability in Government Contracting Act of 2007'.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. Definitions.

TITLE I--CONTRACTING AND ACQUISITION REFORM

Subtitle A--Acquisition Workforce

Sec. 101. Federal acquisition workforce.

Subtitle B--Competition and Accountability

Sec. 111. Competition in multiple award contracts.

Sec. 112. Statement of work requirements for certain task or delivery orders.

Sec. 113. Postaward briefings for task and delivery orders.

Sec. 114. Protests of task and delivery orders.

Sec. 115. Publication of justification and approval documents.

Sec. 116. Limitation on length of certain noncompetitive contracts.

Sec. 117. Prohibition on award of certain large task or delivery order contracts for services.

Sec. 118. Guidance on use of tiered evaluations of offers for contracts and task orders under contracts.

Sec. 119. Plan for minimizing cost-reimbursement contracts.

Subtitle C--Accountability and Administration

Sec. 121. Recording of obligations on task order contracts.

Sec. 122. Definitizing of letter contracts.

Sec. 123. Preventing abuse of interagency contracts.

Sec. 124. Purchase card waste elimination.

Sec. 125. Lead systems integrators.

Sec. 126. Limitations on tiering of subcontractors.

Sec. 127. Reform of Afghanistan assistance programs.

Sec. 128. Debarment of contractors that are serious threats to national security.

Sec. 129. Required assignment of level one certified program managers to Department of Homeland Security level one programs.

Sec. 130. Elimination of one-year limitation on interest due on late payments to contractors.

TITLE II--INSPECTORS GENERAL REFORMS

Sec. 201. Prohibition of cash bonus or awards.

Sec. 202. Inspectors General at level III of executive schedule.

Sec. 203. Qualifications of Inspectors General for designated Federal entities.

Sec. 204. Removal of Inspectors General for designated Federal entities.

Sec. 205. Subpoena power.

Sec. 206. Program Fraud Civil Remedies Act.

SEC. 3. DEFINITIONS.

In this Act:

(1) The term `executive agency' has the meaning given such term in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).

(2) The term `interagency acquisition' means a procedure by which an executive agency needing supplies or services (the requesting agency) obtains them from another executive agency (the servicing agency). The term includes acquisitions under section 1535 of title 31, United States Code (commonly referred to as the `Economy Act'), Federal Supply Schedules, and governmentwide acquisition contracts.

(3) The term `micro-purchase' means a purchase in an amount not in excess of the micro-purchase threshold, as defined in section 32 of the Office of Federal Procurement Policy Act (41 U.S.C. 428).

(4) 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 309(b)(3) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 259(b)(3));

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

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

TITLE I--CONTRACTING AND ACQUISITION REFORM

Subtitle A--Acquisition Workforce

SEC. 101. FEDERAL ACQUISITION WORKFORCE.

(a) Assistant Administrator for Acquisition Workforce Programs- Section 6 of the Office of Federal Procurement Policy Act (41 U.S.C. 405) is amended by adding at the end the following new subsection:

`(l) The Administrator shall designate a member of the Senior Executive Service as the Assistant Administrator for Workforce Programs. The Assistant Administrator shall be responsible for--

`(1) supervising the acquisition workforce training fund established under section 37(h)(3);

`(2) administering the governmentwide acquisition intern program established under section 43;

`(3) developing, in coordination with Chief Acquisition Officers and Chief Human Capital Officers, a human capital strategic plan for the acquisition workforce of the Federal Government;

`(4) recommending to the Administrator and other senior government officials appropriate programs, policies, and practices to increase the quantity and quality of the Federal acquisition workforce; and

`(5) carrying out such other functions as the Administrator may assign.'.

(b) Governmentwide Acquisition Intern Program- The Office of Federal Procurement Policy Act (41 U.S.C. 403 et seq.) is amended by adding at the end the following new section:

`SEC. 43. GOVERNMENTWIDE ACQUISITION INTERN PROGRAM.

`(a) Establishment of Program- The Administrator shall establish a governmentwide acquisition intern program (in this section referred to as the `program') to strengthen the Federal acquisition workforce to carry out its key missions through the Federal procurement process, with an annual goal of involving as many as 200 college graduates per year in the program.

`(b) Administration of Program- The Assistant Administrator for Acquisition Workforce Programs designated under section 6(l) shall be responsible for the management, oversight, and administration of the program and shall give strong consideration to existing similar programs and seek to build upon those programs instead of replacing them.

`(c) Business-Related Course Work Requirement-

`(1) IN GENERAL- Each participant in the program shall have completed 24 credit hours of business-related college course work by not later than 3 years after admission into the program.

`(2) CERTIFICATION CRITERIA- The Administrator shall establish criteria for certifying the completion of the course work requirement under paragraph (1).

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

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

`(f) Agency Management of Program- The Chief Acquisition Officer of each executive agency, in consultation with the Chief Human Capital Officer of such agency, shall establish a central intern management function in the agency to supervise and manage interns participating in the program.'.

(1) IN GENERAL- The Director of the Office of Personnel Management shall establish an Acquisition Fellowship Program that provides funding for tuition, room and board, and a stipend for outstanding students and professionals who make a commitment to serve in the acquisition and contracting fields of the Federal Government for a period of 3 years.

(2) SERVICE AGREEMENTS- The providing of funding under this section shall be contingent upon an individual entering into a written agreement to complete 3 years of service in the acquisition and contracting fields.

(3) REPAYMENT REQUIREMENT- Candidates who do not successfully complete the program, or do not fulfill the Federal work requirements in such fields, shall be obligated to reimburse the funds provided.

(d) Government-Industry Exchange Program- The Office of Federal Procurement Policy Act (41 U.S.C. 403 et seq.), as amended by subsection (b), is further amended by adding at the end the following new section:

`SEC. 44. GOVERNMENT-INDUSTRY EXCHANGE PROGRAM.

`(a) In General- The Administrator shall, in coordination with the Director of the Office of Personnel Management, establish a Federal Government-industry exchange program for acquisition professionals that includes exceptional Government contracting officers.

`(b) Workforce Development-

`(1) IN GENERAL- In implementing the program established under subsection (a), the Administrator shall--

`(A) analyze, on an ongoing basis, the personnel needs of the Federal Government related to acquisition and contracting;

`(B) identify where current acquisition and contracting training do not satisfy the personnel needs described in subparagraph (A);

`(C) oversee the development of curricula, training methods, and training priorities that correspond to the projected personnel needs of the Federal Government related to acquisition and contracting; and

`(D) assess the training of Federal employees in acquisition and contracting disciplines in order to ensure that the acquisition and contracting needs of the Federal Government are addressed.

`(2) ACQUISITION AND CONTRACTING TRAINING PROGRAMS- The head of each executive agency, after consultation with the Administrator, shall establish and operate acquisition and contracting training programs consistent with the requirements of this subsection. Such programs shall--

`(A) have curricula covering a broad range of acquisition and contracting disciplines corresponding to the specific acquisition and contracting needs of the agency involved;

`(B) be developed and applied according to rigorous standards; and

`(C) be designed to maximize efficiency, through the use of self-paced courses, online courses, on-the-job training, and the use of remote instructors, wherever such features can be applied without reducing the effectiveness of the training or negatively impacting academic standards.

`(3) GOVERNMENTWIDE POLICIES AND EVALUATION- The Administrator, in coordination with the Director of the Office of Management and Budget, shall issue policies to promote the development of performance standards for training and uniform implementation of this subsection by executive agencies, with due regard for differences in program requirements among agencies that may be appropriate and warranted in view of the agency mission. The Administrator shall evaluate the implementation of the provisions of this subsection by executive agencies.

`(4) CHIEF ACQUISITION OFFICER AUTHORITIES AND RESPONSIBILITIES- Subject to the authority, direction, and control of the head of an executive agency, the Chief Acquisition Officer of such agency shall carry out all powers, functions, and duties of the head of the agency with respect to implementation of this subsection. The Chief Acquisition Officer shall ensure that the policies of the agency head established in accordance with this subsection are implemented throughout the agency.

`(5) ACQUISITION AND CONTRACTING TRAINING REPORTING- The Administrator shall ensure that the heads of executive agencies collect and maintain standardized information on the acquisition and contracting workforce related to the implementation of this subsection.

`(6) AUTHORITY TO DETAIL EMPLOYEES TO NON-FEDERAL EMPLOYERS- In carrying out the preceding provisions of this subsection, the Administrator may provide for a program under which a Federal employee may be detailed to a non-Federal employer. The Administrator shall prescribe regulations for such program, including--

`(A) the conditions for service and duties as the Administrator considers necessary; and

`(B) safeguards to avoid conflicts of interest involving Federal employees who have been detailed to non-Federal employers.

`(7) COORDINATION PROVISION- An assignment described in section 3703 of title 5, United States Code, may not be made unless a program under paragraph (6) is established, and the assignment is made in accordance with the requirements of such program.

`(8) EMPLOYEE PARTICIPATION- Subject to acquisition and contracting needs and the limitations imposed by resource needs in other occupational areas, and consistent with their overall workforce development strategies, agencies shall encourage employees to participate in occupational acquisition and contracting training.

`(c) Participation of Small Businesses- In implementing the program, the Administrator shall make every effort to ensure that at least 20 percent of the assignments be made with small businesses.

`(d) Report- Not later than 3 years after the date of the enactment of the Accountability in Government Contracting Act of 2007, the Administrator, in consultation with the Director of the Office of Personnel Management, shall submit a report to Congress on the implementation of the exchange program, including any recommendations for statutory changes to enhance the utilization of the program and enhance its benefits.'.

(e) Acquisition Workforce Human Capital Strategic Plan-

(1) IN GENERAL- Not later than 1 year after the date of the enactment of this Act, each Chief Acquisition Officer for an executive agency appointed pursuant to section 16 of the Office of Federal Procurement Policy Act (41 U.S.C. 414) shall develop, in consultation with the Chief Human Capital Officer for the agency and the Assistant Administrator for Acquisition Workforce Programs, a strategic human capital plan for the recruitment, development, and retention of the agency's acquisition workforce, with a particular focus on warranted contracting officers of the agency.

(2) CONTENT OF PLAN- The acquisition workforce human capital plan shall address--

(A) support for and recruitment of personnel from procurement intern programs;

(B) development of the agency's acquisition workforce, including training needs;

(D) support for and recruitment of personnel from the Federal Career Intern Program; and

(E) support for and recruitment of personnel from the Presidential Management Fellows Program.

Subtitle B--Competition and Accountability

SEC. 111. COMPETITION IN MULTIPLE AWARD CONTRACTS.

(a) Civilian Agency Contracts-

(1) COMPETITION REQUIREMENT- Subsection (b) of section 303J of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(b)) is amended--

(A) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively;

(B) by striking `Contracts- When' and inserting the following: `Contracts-

`(1) TASK OR DELIVERY ORDERS IN EXCESS OF $2,500- When';

(D) by adding at the end the following new paragraph:

`(2) TASK OR DELIVERY ORDERS IN EXCESS OF THE SIMPLIFIED ACQUISITION THRESHOLD-

`(A) IN GENERAL- Any award that is made under a task or delivery order contract that is anticipated to exceed the simplified acquisition threshold (as defined by section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)) shall be made on a competitive basis unless a contracting officer of the executive agency--

`(i) waives the requirement on the basis of a determination that--

`(I) one of the circumstances described in subparagraphs (A) through (D) of paragraph (1) applies to such individual purchase; or

`(II) a statute expressly authorizes or requires that the purchase be made from a specified source; and

`(ii) justifies the determination in writing.

`(B) COMPETITIVE BASIS DEFINED- For purposes of this paragraph, an individual purchase of goods or services is made on a competitive basis only if it is made pursuant to procedures that--

`(i) require fair notice of the intent to make that purchase (including a description of the work to be performed and the basis on which the selection will be made) to be provided to all contractors offering such goods or services under the multiple award contract; and

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

`(C) EXCEPTION TO NOTICE REQUIREMENT- Notwithstanding subparagraph (B), notice may be provided to fewer than all contractors offering such goods or services under a multiple award contract if notice is provided to as many contractors as practicable.

`(D) LIMITATION TO EXCEPTION- A purchase may not be made pursuant to a notice that is provided to fewer than all contractors under subparagraph (C) unless--

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

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

`(E) INDIVIDUAL PURCHASE DEFINED- For purposes of this paragraph, the term `individual purchase' means a task order, delivery order, or other purchase.'.

(2) NOTICE REQUIREMENTS- Such section is further amended--

(A) by redesignating subsection (f) as subsection (g); and

(B) by inserting after subsection (e) the following new subsection:

`(f) Notice Requirements Related to Sole Source Task or Delivery Orders- The head of each executive agency shall--

`(1) publish on FedBizOpps notice of all sole source task or delivery orders in excess of the simplified acquisition threshold (as defined by section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)) that are placed against multiple award contracts or multiple award blanket purchase agreements not later than 10 days after such orders are placed, except in the event of extraordinary circumstances or classified orders; and

`(2) publish on the Internet website of the executive agency and through the Federal Procurement Data System the justification and approval documents related to sole source task or delivery orders placed against multiple award contracts or multiple award blank purchase agreements not later than 14 days after such orders are placed.'.

(b) Defense Contracts-

(1) COMPETITION REQUIREMENT- Subsection (b) of section 2304c of title 10, United States Code, is amended--

(A) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively;

(B) by striking `Contracts- When' and inserting the following: `Contracts-

`(1) TASK OR DELIVERY ORDERS IN EXCESS OF $2,500- When';

(D) by adding at the end the following new paragraph:

`(2) TASK OR DELIVERY ORDERS IN EXCESS OF THE SIMPLIFIED ACQUISITION THRESHOLD-

`(i) waives the requirement on the basis of a determination that--

`(I) one of the circumstances described in subparagraphs (A) through (D) of paragraph (1) applies to such individual purchase; or

`(II) a statute expressly authorizes or requires that the purchase be made from a specified source; and

`(ii) justifies the determination in writing.

`(B) COMPETITIVE BASIS DEFINED- For purposes of this paragraph, an individual purchase of goods or services is made on a competitive basis only if it is made pursuant to procedures that--

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

`(D) LIMITATION TO EXCEPTION- A purchase may not be made pursuant to a notice that is provided to fewer than all contractors under subparagraph (C) unless--

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

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

`(E) INDIVIDUAL PURCHASE DEFINED- For purposes of this paragraph, the term `individual purchase' means a task order, delivery order, or other purchase.'.

(2) NOTICE REQUIREMENTS- Such section is further amended--

(A) by redesignating subsection (f) as subsection (g); and

(B) by inserting after subsection (e) the following new subsection:

`(f) Notice Requirements Related to Sole Source Task or Delivery Orders- The head of each agency shall--

`(2) publish on the Internet website of the agency and through the Federal Procurement Data System the justification and approval documents related to sole source task or delivery orders placed against multiple award contracts or multiple award blank purchase agreements not later than 14 days after such orders are placed.'.

SEC. 112. STATEMENT OF WORK REQUIREMENTS FOR CERTAIN TASK OR DELIVERY ORDERS.

(a) Civilian Contracts- Section 303J(c) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(c)) is amended to read as follows:

`(c) Statement of Work and Selection Basis-

`(1) IN GENERAL- A task or delivery order shall include a statement of work that clearly specifies all tasks to be performed or property to be delivered under the order.

`(2) TASK OR DELIVERY ORDERS IN EXCESS OF $5,000,000- The statement of work for a task or delivery order in excess of $5,000,000 under a task or delivery order contract shall be made available to each contractor awarded such contract and shall--

`(A) include a clear statement of the executive agency's requirements;

`(B) permit a reasonable response period;

`(C) disclose the significant factors and sub-factors that the executive agency expects to consider in evaluating proposals, including cost, price, and the relative importance of those and other factors;

`(D) in the case of an award that is to be made on a best value basis, include a written statement documenting the basis for the award and the relative importance of quality and price or cost factors; and

`(E) state that the technical requirements applicable to source selection in competitive negotiated acquisitions shall not apply.'.

(b) Defense Contracts- Section 2304c(c) of title 10, United States Code, is amended to read as follows:

`(c) Statement of Work and Selection Basis-

`(1) IN GENERAL- A task or delivery order shall include a statement of work that clearly specifies all tasks to be performed or property to be delivered under the order.

`(A) include a clear statement of the agency's requirements;

`(B) permit a reasonable response period;

`(C) disclose the significant factors and sub-factors that the agency expects to consider in evaluating proposals, including cost, price, and the relative importance of those and other factors;

`(E) state that the technical requirements applicable to source selection in competitive negotiated acquisitions shall not apply.'.

SEC. 113. POSTAWARD BRIEFINGS FOR TASK AND DELIVERY ORDERS.

(a) Civilian Agency Contracts- The Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) is amended by inserting after section 303J the following new section:

`SEC. 303J--1. TASK AND DELIVERY ORDER: POSTAWARD BRIEFINGS.

`The head of an executive agency awarding a task or delivery order valued at over $5,000,000 under a multiple award contract shall provide to each offeror not awarded such order the opportunity for a postaward debriefing. The debriefing information shall include--

`(1) the executive agency's evaluation of the significant weaknesses or deficiencies in the offeror's proposal, if applicable;

`(2) the overall evaluated cost or price (including unit prices), and technical rating, if applicable, of the successful offeror and the debriefed offeror, and past performance information on the debriefed offeror;

`(3) the overall ranking of all offerors, when any ranking was developed by the agency during the source selection;

`(4) a summary of the rationale for the award;

`(5) for acquisitions of commercial items, the make and model of the item to be delivered by the successful offeror; and

`(6) reasonable responses to relevant questions about whether source selection procedures contained in the solicitation, applicable regulations, and other applicable authorities were followed.'.

(b) Defense Contracts-

(1) POSTAWARD BRIEFING REQUIREMENT- Chapter 137 of title 10, United States Code, is amended by inserting after section 2304c the following new section:

`Sec. 2304c-1. Task and delivery order contracts: postaward briefings

`The head of an agency awarding a task or delivery order valued at over $5,000,000 under a multiple award contract shall provide to each offeror not awarded such order the opportunity for a postaward debriefing. The debriefing information shall include--

`(1) the agency's evaluation of the significant weaknesses or deficiencies in the offeror's proposal, if applicable;

`(3) the overall ranking of all offerors, when any ranking was developed by the agency during the source selection;

`(4) a summary of the rationale for the award;

`(5) for acquisitions of commercial items, the make and model of the item to be delivered by the successful offeror; and

`(6) reasonable responses to relevant questions about whether source selection procedures contained in the solicitation, applicable regulations, and other applicable authorities were followed.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2304c the following new item:

`2304c-1. Task and delivery order contracts: postaward briefings.'.

SEC. 114. PROTESTS OF TASK AND DELIVERY ORDERS.

(a) Civilian Agency Contracts- Section 303J(d) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(d)) is amended to read as follows:

`(d) Protests- (1) A protest is not authorized in connection with the issuance or proposed issuance of a task or delivery order except for--

`(A) a protest on the ground that the order increases the scope, period, or maximum value of the contract under which the order is issued; or

`(B) a protest of an order valued at greater than $5,000,000.

`(2) Notwithstanding section 3556 of title 31, United States Code, the Comptroller General of the United States shall have exclusive jurisdiction of a protest authorized under paragraph (1)(B).'.

(b) Defense Contracts- Section 2304c(d) of title 10, United States Code is amended to read as follows:

`(d) Protests- (1) A protest is not authorized in connection with the issuance or proposed issuance of a task or delivery order except for--

`(A) a protest on the ground that the order increases the scope, period, or maximum value of the contract under which the order is issued; or

`(B) a protest of an order valued at greater than $5,000,000.

`(2) Notwithstanding section 3556 of title 31, United States Code, the Comptroller General of the United States shall have exclusive jurisdiction of a protest authorized under paragraph (1)(B).'.

(c) Preference for Use of Express Option for Deciding Protests- Section 3554(a)(2) of title 31, United States Code, is amended--

(1) by striking `(2) The Comptroller General' and inserting `(2)(A) The Comptroller General'; and

(2) by adding at the end the following new subparagraph:

`(B) The Comptroller General shall use the express option established pursuant to subparagraph (A) to decide protests under section 303J(d) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(d)) and section 2304c(d) of title 10, United States Code, related to the issuance or proposed issuance of a task or delivery order valued at greater than $5,000,000 and less than $25,000,000, unless the Comptroller General determines that the protest is not suitable for resolution within 65 days after the date the protest is submitted.'.

SEC. 115. PUBLICATION OF JUSTIFICATION AND APPROVAL DOCUMENTS.

(a) Civilian Contracts- Section 303(f)(1) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(f)(1)) is amended--

(1) in subparagraph (B)(iii), by striking `; and' and inserting a semicolon;

(2) in subparagraph (C), by striking the period at the end and inserting `; and'; and

(3) by adding at the end the following new subparagraph:

`(D) the justification and approval documents are made publicly available on the Internet website of the agency and FedBizOpps.'.

(b) Defense Contracts- Section 2304(f) of title 10, United States Code, is amended--

(1) in subparagraph (B)(iii), by striking `; and' and inserting a semicolon;

(2) in subparagraph (C), by striking the period at the end and inserting `; and'; and

(3) by adding at the end the following new subparagraph:

`(D) the justification and approval documents are made publicly available on the Internet website of the agency and FedBizOpps.'.

SEC. 116. LIMITATION ON LENGTH OF CERTAIN NONCOMPETITIVE CONTRACTS.

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

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

`(i) may not exceed the time necessary--

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

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

`(ii) may not exceed 150 days unless the head of the executive agency entering into such contract determines that exceptional circumstances apply.

`(B) This paragraph applies to any contract in an amount greater than the simplified acquisition threshold (as defined by section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)).'.

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

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

`(i) may not exceed the time necessary--

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

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

`(ii) may not exceed 150 days unless the head of the agency entering into such contract determines that exceptional circumstances apply.

`(B) This paragraph applies to any contract in an amount greater than the simplified acquisition threshold (as defined by section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)).'.

SEC. 117. PROHIBITION ON AWARD OF CERTAIN LARGE TASK OR DELIVERY ORDER CONTRACTS FOR SERVICES.

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

`(4)(A) No task or delivery order contract for services in an amount estimated to exceed $100,000,000 (including all options) may be awarded to a single contractor unless the head of the agency determines in writing that--

`(i) because of the size, scope, or method of performance of the requirement, it would not be practical to award multiple task or delivery order contracts;

`(ii) the task orders expected under the contract are so integrally related that only a single contractor can reasonably perform the work; or

`(iii) for any other reason, it is necessary in the public interest to award the contract to a single contractor.

`(B) The head of the agency shall notify Congress within 30 days of any determination under subparagraph (A)(iii).

`(C) The head of the agency shall post the justification and approval documents related to a determination under subparagraph (A) on the Internet website of the agency and on the Federal Business Opportunities (FedBizOpps) Internet website.'.

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

`(i) because of the size, scope, or method of performance of the requirement, it would not be practical to award multiple task or delivery order contracts;

`(ii) the task orders expected under the contract are so integrally related that only a single contractor can reasonably perform the work; or

`(iii) for any other reason, it is necessary in the public interest to award the contract to a single contractor.

`(B) The head of the agency shall notify Congress within 30 days of any determination under subparagraph (A)(iii).

SEC. 118. GUIDANCE ON USE OF TIERED EVALUATIONS OF OFFERS FOR CONTRACTS AND TASK ORDERS UNDER CONTRACTS.

(a) Guidance Required- The Administrator for Federal Procurement Policy shall prescribe guidance for executive agencies on the use of tiered evaluations of offers for contracts and for task or delivery orders under contracts. In prescribing such guidance, the Administrator shall give full consideration to the guidance prescribed by the Secretary of Defense under section 816 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 10 U.S.C. 2305).

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

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

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

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

SEC. 119. PLAN FOR MINIMIZING COST-REIMBURSEMENT CONTRACTS.

The head of each executive agency shall develop a plan for minimizing the use of cost-reimbursement contracts.

Subtitle C--Accountability and Administration

SEC. 121. RECORDING OF OBLIGATIONS ON TASK ORDER CONTRACTS.

(a) Civilian Contracts-

(1) IN GENERAL- Section 303H of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253h) is amended--

(A) by redesignating subsections (f) and (g) as subsections (g) and (h), respectively; and

(B) by inserting after subsection (e) the following new subsection:

`(f) Authority To Defer Recording Obligations on Task or Delivery Order Contracts- (1) Subject to paragraphs (2) and (3), the head of an executive agency may defer the recording of an obligation, including an obligation in the amount of the guaranteed minimum, under a contract awarded under this section until the issuance of a task or delivery order.

`(2) The amount of the guaranteed minimum under a contract must be obligated during the same fiscal year during which the contract is awarded unless waived by the head of the executive agency for exceptional circumstances.

`(3) The amount of the guaranteed minimum under a contract may be satisfied by multiple task or delivery orders, but the full value of each individual task or delivery order must be obligated when such order is issued.'.

(2) ADVISORY AND ASSISTANCE SERVICES- Section 303I of such Act (41 U.S.C. 253i) is amended--

(A) by redesignating subsections (h) and (i) as subsections (i) and (j), respectively; and

(B) by inserting after subsection (g) the following new subsection:

`(h) Authority To Defer Recording Obligations on Task or Delivery Order Contracts- (1) Subject to paragraphs (2) and (3), the head of an executive agency may defer the recording of an obligation, including an obligation in the amount of the guaranteed minimum, under a contract awarded under this section until the issuance of a task or delivery order.

(b) Defense Contracts-

(1) IN GENERAL- Section 2304a of title 10, United States Code, is amended--

(A) by redesignating subsections (g) and (h) as subsections (h) and (i), respectively; and

(B) by inserting after subsection (f) the following new subsection:

`(g) Authority To Defer Recording Obligations on Task or Delivery Order Contracts- (1) Subject to paragraphs (2) and (3), the head of an agency may defer the recording of an obligation, including an obligation in the amount of the guaranteed minimum, under a contract awarded under this section until the issuance of a task or delivery order.

`(2) The amount of the guaranteed minimum under a contract must be obligated during the same fiscal year during which the contract is awarded unless waived by the head of the agency for exceptional circumstances.

(2) ADVISORY AND ASSISTANCE SERVICES- Section 2304b of title 10, United States Code, is amended--

(A) by redesignating subsection (f) as subsections (g); and

(B) by inserting after subsection (e) the following new subsection:

`(f) Authority To Defer Recording Obligations on Task or Delivery Order Contracts- (1) Subject to paragraphs (2) and (3), the head of an agency may defer the recording of an obligation, including an obligation in the amount of the guaranteed minimum, under a contract awarded under this section until the issuance of a task or delivery order.

SEC. 122. DEFINITIZING OF LETTER CONTRACTS.

(a) Civilian Contracts- The Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) is amended by adding at the end the following new section:

`SEC. 318. DEFINITIZING OF LETTER CONTRACTS.

`The head of an executive agency shall unilaterally determine all missing terms in an undefinitized letter contract that have not been agreed upon within 180 days after such letter contract has been entered into or before 40 percent of the work under such letter contract has been completed. Any terms so determined shall be subject to the contract disputes process.'.

(b) Defense Contracts-

(1) DEFINITIZING OF LETTER CONTRACTS- Chapter 137 of title 10, United States Code, is amended by inserting after at the end the following new section:

`Sec. 2334. Definitizing of letter contracts

`The head of an agency shall unilaterally determine all missing terms in an undefinitized letter contract that have not been agreed upon within 180 days after such letter contract has been entered into or before 50 percent of the work under such letter contract has been completed. Any terms so determined shall be subject to the contract disputes process.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

`2334. Definitizing of letter contracts.'.

SEC. 123. PREVENTING ABUSE OF INTERAGENCY CONTRACTS.

(a) Office of Management and Budget Policy Guidance-

(1) REPORT AND GUIDELINES- Not later than one year after the date of the enactment of this Act, the Director of the Office of Management and Budget shall--

(A) submit to Congress a comprehensive report on interagency acquisitions, including their frequency of use, management controls, cost-effectiveness, and savings generated; and

(B) issue guidelines to assist the heads of executive agencies in improving the management of interagency acquisitions.

(2) MATTERS COVERED BY GUIDELINES- For purposes of paragraph (1)(B), the Director shall include guidelines on the following matters:

(A) Procedures for the use of interagency acquisitions to maximize competition, deliver best value to executive agencies, and minimize waste, fraud, and abuse.

(B) Categories of contracting inappropriate for interagency acquisition, due to high risk of waste, fraud, or abuse.

(b) Regulations Required- Not later than one year after the date of the enactment of this Act, the Federal Acquisition Regulation shall be revised to require that all interagency acquisitions--

(1) include a written agreement between the requesting agency and the servicing agency assigning responsibility for the administration and management of the contract;

(2) include a determination that an interagency acquisition is the best procurement alternative; and

(3) include sufficient documentation to ensure an adequate audit.

(c) Agency Reporting Requirement- The senior procurement executive for each executive agency shall, as directed by the Director of the Office of Management and Budget, submit to the Director annual reports on the actions taken by the executive agency pursuant to the guidelines issued under subsection (a).

(d) Survey of Interagency Contracting-

(1) IN GENERAL- Not later than 90 days after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall conduct a survey of existing interagency contracts.

(2) CONTENT- The survey conducted under paragraph (1) shall collect the following information:

(A) The number of interagency contracts that are currently in operation, and the scope, sponsoring agencies, primary users, activity levels (in terms of orders and value) for the most recent fiscal year, and rationales for such contracts.

(B) The level of acquisition activity conducted by the Intergovernmental Revolving Funds (including the Franchise Funds) on behalf of other executive agencies.

(C) The number of enterprisewide, single agency contracts that are currently in operation, and the scope, activity levels (in terms of orders and value) for the most recent fiscal year, and rationales for such contracts.

(3) PUBLICATION- The Director of the Office of Management and Budget shall make the results of the survey conducted under this subsection publicly available, subject to applicable statutory and regulatory limits on the release of such information.

(e) Review of Federal Supply Schedule Contracts- Not later than 270 days after the date of the enactment of this Act, the Administrator of General Services shall review existing Federal Supply Schedule (FSS) contracts to determine whether, in light of the entire inventory of interagency contracts, any of the FSS contracts should be eliminated in order to avoid unnecessary duplication.

(f) Review of Other Interagency and Enterprisewide Contracts- Not later than 270 days after the date of the enactment of this Act, the Director of the Office of Management and Budget shall direct the heads of executive agencies to develop and institute procedures for the creation, expansion, oversight, and reauthorization of interagency and enterprisewide contracts other than the contracts described in subsections (d) and (e). The head of each executive agency shall periodically submit reports to the Director on the implementation of this subsection and shall make such reports publicly available.

(g) Improved Transparency of Interagency Contracting Data- Not later than 180 days after the date of the enactment of this Act, the Director of the Office of Management and Budget shall direct appropriate revisions to the governmentwide procurement system known as the Federal Procurement Data System-Next Generation in order to facilitate the collecting and publication of complete and reliable order-level data on interagency contracting transactions.

SEC. 124. PURCHASE CARD WASTE ELIMINATION.

(a) Requirement for Guidance-

(1) OFFICE OF MANAGEMENT AND BUDGET POLICY GUIDANCE- Not later than 180 days after the date of the enactment of this Act, the Director of the Office of Management and Budget shall issue guidelines to assist the heads of executive agencies in improving the management of the use of the Governmentwide commercial purchase card for making micro-purchases. The Director shall include guidelines on the following matters:

(A) Analysis of purchase card expenditures to identify opportunities for achieving savings through micro-purchases made in economical volumes.

(B) Negotiation of discount agreements with major vendors accepting the purchase card.

(C) Establishment of communication programs to ensure that purchase cardholders receive information pertaining to the availability of discounts, including programs for the training of purchase cardholders on the availability of discounts.

(D) Assessment of cardholder purchasing practices, including use of discount agreements.

(E) Collection and dissemination of best practices and successful strategies for achieving savings in micro-purchases.

(F) Analysis of purchase card expenditures to identify opportunities for achieving and accurately measuring fair participation of small business concerns in micro-purchases consistent with the national policy on small business participation in Federal procurement set forth in sections 2(a) and 15(g) of the Small Business Act (15 U.S.C. 631(a) and 644(g)), and dissemination of best practices for participation of small business concerns in micro-purchases.

(2) GENERAL SERVICES ADMINISTRATION- The Administrator of General Services shall--

(A) continue efforts to improve reporting by financial institutions that issue the Governmentwide commercial purchase card so that the General Services Administration has the data needed to identify opportunities for achieving savings; and

(B) actively pursue point-of-sale discounts with major vendors accepting the purchase card so that any Federal Government purchaser using the purchase card can benefit from such point-of-sale discounts.

(3) AGENCY REPORTING REQUIREMENT- The senior procurement executive for each executive agency shall, as directed by the Director of the Office of Management and Budget, submit to the Director periodic reports on the actions taken in such executive agency pursuant to the guidelines issued under paragraph (1).

(4) CONGRESSIONAL OVERSIGHT- Not later than December 31 of the year following the year in which this Act is enacted, and December 31 of each of the ensuing 3 years, the Director of the Office of Management and Budget shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives a report summarizing for the fiscal year ending in the year in which such report is due the progress made--

(A) in improving the management of the use of the Governmentwide commercial purchase card for making micro-purchases; and

(B) in achieving savings in micro-purchases made with such card, expressed in terms of average savings achieved by each executive agency in the use of discount agreements identified in paragraph (1) and the total savings achieved Governmentwide.

(b) Payments to Federal Contractors With Federal Tax Debt- The General Services Administration, in conjunction with the Internal Revenue Service and the Financial Management Service, shall develop procedures to subject purchase card payments to Federal contractors to the Federal Payment Levy program.

(1) ANNUAL REPORTS REQUIRED- The Administrator of the General Services shall submit annually to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives a report on all first class and business class travel by employees of each executive agency undertaken at the expense of the Federal Government.

(2) CONTENT- The reports submitted pursuant to paragraph (1) shall include, at a minimum, with respect to each travel by first class or business class--

(A) the names of each traveler;

(B) the date of travel;

(D) the cost of the first class or business class travel; and

(E) the cost difference between such travel and travel by coach class.

SEC. 125. LEAD SYSTEMS INTEGRATORS.

(a) Study- Not later than 180 days after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall develop a government-wide definition of lead systems integrators and complete a study the use of such integrators by executive agencies.

(b) Recommendations- Not later than 180 days after the study under subsection (a) is completed, the Administrator for Federal Procurement Policy shall submit to Congress recommendations for regulations to control the use of lead systems integrators to ensure that they are used in the best interests of the Federal Government.

SEC. 126. LIMITATIONS ON TIERING OF SUBCONTRACTORS.

(a) Regulations- The Administrator for Federal Procurement Policy shall promulgate regulations applicable to contracts described in subsection (c) to minimize the excessive use by contractors of subcontractors or tiers of subcontractors to perform the principal work of the contract.

(b) Specific Requirement- At a minimum, the regulations promulgated under subsection (a) shall preclude a contractor from using subcontracts for more than 65 percent of the cost of the contract or the cost of any individual task or delivery order (not including overhead and profit), unless the head of the executive agency awarding the contract determines that such requirement is not feasible or practicable.

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

SEC. 127. REFORM OF AFGHANISTAN ASSISTANCE PROGRAMS.

(a) Report- Not later than 180 days after the date of the enactment of this Act, the Administrator of the United States Agency for International Development shall submit to Congress a report on the Agency's assistance programs in Afghanistan.

(b) Contents- The report required under subsection (a) shall include--

(1) information about the Agency's assistance programs in Afghanistan, including--

(A) the amount of assistance that has been designated for projects in Afghanistan since fiscal year 2002;

(B) the amount of money that has been obligated for such purposes;

(D) the number of projects that have been designated or planned under such programs;

(E) the level of oversight exercised over such programs by the Department of State, the Agency, and the Government Accountability Office;

(F) the specific projects reviewed as part of such oversight; and

(G) the findings related to such oversight; and

(2) a plan for revising the Agency's strategy for such assistance programs, including--

(A) developing measurable goals, specific time frames, and established resource levels;

(B) delineating responsibilities related to providing assistance;

(D) developing a schedule for program evaluations to assess progress made in achieving the Agency's goals.

SEC. 128. DEBARMENT OF CONTRACTORS THAT ARE SERIOUS THREATS TO NATIONAL SECURITY.

(a) Debarment- The head of any executive agency may debar a contractor from eligibility for Federal contracts on the basis of a finding that the contractor is a serious threat to national security.

(b) Inclusion on List of Parties Excluded From Federal Procurement and Nonprocurement Programs- The Administrator of General Services shall include on the List of Parties Excluded from Federal Procurement and Nonprocurement Programs maintained by the Administrator under part 9 of the Federal Acquisition Regulation each contractor that is debarred or proposed for debarment under subsection (a).

SEC. 129. REQUIRED ASSIGNMENT OF LEVEL ONE CERTIFIED PROGRAM MANAGERS TO DEPARTMENT OF HOMELAND SECURITY LEVEL ONE PROGRAMS.

Not later than one year after the date of the enactment of this Act, the Secretary of Homeland Security shall assign to each program of the Department of Homeland Security with an estimated value of more than $100,000,000 at least one program manager certified by the Secretary as competent to administer programs of that size.

SEC. 130. ELIMINATION OF ONE-YEAR LIMITATION ON INTEREST DUE ON LATE PAYMENTS TO CONTRACTORS.

Section 3901(d)(3)(A) of title 31, United States Code, is amended to read as follows:

`(3)(A) Except as provided in subparagraph (B), an interest penalty under this chapter does not continue to accrue after a claim for an interest penalty is filed in the manner described in paragraph (2).'.

TITLE II--INSPECTORS GENERAL REFORMS

SEC. 201. PROHIBITION OF CASH BONUS OR AWARDS.

Section 3 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by adding at the end the following:

`(e) An Inspector General (as defined under section 8G(a)(6) or 11(3)) may not receive any cash award or cash bonus, including any cash award under chapter 45 of title 5, United States Code.'.

SEC. 202. INSPECTORS GENERAL AT LEVEL III OF EXECUTIVE SCHEDULE.

(a) Level IV Positions- Section 5315 of title 5, United States Code, is amended by striking each item relating to the following positions:

(1) Inspector General, Department of Education.

(2) Inspector General, Department of Energy.

(3) Inspector General, Department of Health and Human Services.

(4) Inspector General, Department of Agriculture.

(5) Inspector General, Department of Housing and Urban Development.

(6) Inspector General, Department of Labor.

(7) Inspector General, Department of Transportation.

(8) Inspector General, Department of Veterans Affairs.

(9) Inspector General, Department of Homeland Security.

(10) Inspector General, Department of Defense.

(11) Inspector General, Department of State.

(12) Inspector General, Department of Commerce.

(13) Inspector General, Department of the Interior.

(14) Inspector General, Department of Justice.

(15) Inspector General, Department of the Treasury.

(16) Inspector General, Agency for International Development.

(17) Inspector General, Environmental Protection Agency.

(18) Inspector General, Export-Import Bank.

(19) Inspector General, Federal Emergency Management Agency.

(20) Inspector General, General Services Administration.

(21) Inspector General, National Aeronautics and Space Administration.

(22) Inspector General, Nuclear Regulatory Commission.

(23) Inspector General, Office of Personnel Management.

(24) Inspector General, Railroad Retirement Board.

(25) Inspector General, Small Business Administration.

(26) Inspector General, Tennessee Valley Authority.

(27) Inspector General, Federal Deposit Insurance Corporation.

(28) Inspector General, Resolution Trust Corporation.

(29) Inspector General, Central Intelligence Agency.

(30) Inspector General, Social Security Administration.

(31) Inspector General, United States Postal Service.

(b) Level III Positions- Section 5314 of title 5, United States Code, is amended by adding at the end the following:

`Inspector General, Department of Education.

`Inspector General, Department of Energy.

`Inspector General, Department of Health and Human Services.

`Inspector General, Department of Agriculture.

`Inspector General, Department of Housing and Urban Development.

`Inspector General, Department of Labor.

`Inspector General, Department of Transportation.

`Inspector General, Department of Veterans Affairs.

`Inspector General, Department of Homeland Security.

`Inspector General, Department of Defense.

`Inspector General, Department of State.

`Inspector General, Department of Commerce.

`Inspector General, Department of the Interior.

`Inspector General, Department of Justice.

`Inspector General, Department of the Treasury.

`Inspector General, Agency for International Development.

`Inspector General, Corporation for Community and National Service.

`Inspector General, Environmental Protection Agency.

`Inspector General, Export-Import Bank.

`Inspector General, Federal Emergency Management Agency.

`Inspector General, General Services Administration.

`Inspector General, National Aeronautics and Space Administration.

`Inspector General, Nuclear Regulatory Commission.

`Inspector General, Office of Personnel Management.

`Inspector General, Railroad Retirement Board.

`Inspector General, Small Business Administration.

`Inspector General, Tennessee Valley Authority.

`Inspector General, Federal Deposit Insurance Corporation.

`Inspector General, Central Intelligence Agency.

`Inspector General, Social Security Administration.

`Inspector General, United States Postal Service.'.

(c) Savings Provision- Nothing in this section shall have the effect of reducing the rate of pay of any individual serving as an Inspector General on the effective date of this section.

SEC. 203. QUALIFICATIONS OF INSPECTORS GENERAL FOR DESIGNATED FEDERAL ENTITIES.

Section 8G(c) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by adding at the end `Each Inspector General shall be appointed without regard to political affiliation and solely on the basis of integrity and demonstrated ability in accounting, auditing, financial analysis, law, management analysis, public administration, or investigations.' .

SEC. 204. REMOVAL OF INSPECTORS GENERAL FOR DESIGNATED FEDERAL ENTITIES.

Section 8G(e) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by striking `shall promptly communicate in writing the reasons for any such removal or transfer to both Houses of the Congress' and inserting `shall communicate in writing the reasons for any such removal or transfer to both Houses of the Congress, not later than 15 days before the removal or transfer'.

SEC. 205. SUBPOENA POWER.

Section 6(a)(4) of the Inspector General Act of 1978 (5 U.S.C. App.), is amended--

(1) by inserting `in any medium (including electronically stored information, as well as any tangible thing)' after `other data'; and

(2) by striking `subpena' and inserting `subpoena'.

SEC. 206. PROGRAM FRAUD CIVIL REMEDIES ACT.

Section 3801(a)(1) of title 31, United States Code, is amended--

(1) in subparagraph (C), by striking `and' after the semicolon;

(2) in subparagraph (D), by adding `and' after the semicolon ; and

(3) by adding at the end the following:

`(E) a designated Federal entity (as such term is defined under section 8G(a)(2) of the Inspector General Act of 1978).'.

END