
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-398 Section 1[809]]
[CITE: 40USC1492]

 
             TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS
 
              CHAPTER 25--INFORMATION TECHNOLOGY MANAGEMENT
 
    SUBCHAPTER III--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS
 
                     Part B--Specific Pilot Programs
 
Sec. 1492. Solutions-based contracting pilot program


(a) In general

    The Administrator may authorize the heads of any of the executive 
agencies, in accordance with subsection (d)(2) of this section, to carry 
out a pilot program to test the feasibility of using solutions-based 
contracting for acquisition of information technology.

(b) Solutions-based contracting described

    For purposes of this section, solutions-based contracting is an 
acquisition method under which the acquisition objectives are defined by 
the Federal Government user of the technology to be acquired, a 
streamlined contractor selection process is used, and industry sources 
are allowed to provide solutions that attain the objectives effectively.

(c) Process requirements

    The Administrator shall require use of a process with the following 
aspects for acquisitions under the pilot program:

           (1) Acquisition plan emphasizing desired result

        Preparation of an acquisition plan that defines the functional 
    requirements of the intended users of the information technology to 
    be acquired, identifies the operational improvements to be achieved, 
    and defines the performance measurements to be applied in 
    determining whether the information technology acquired satisfies 
    the defined requirements and attains the identified results.

               (2) Results-oriented statement of work

        Use of a statement of work that is limited to an expression of 
    the end results or performance capabilities desired under the 
    acquisition plan.

                 (3) Small acquisition organization

        Assembly of a small acquisition organization consisting of the 
    following:
            (A) An acquisition management team, the members of which are 
        to be evaluated and rewarded under the pilot program for 
        contributions toward attainment of the desired results 
        identified in the acquisition plan.
            (B) A small source selection team composed of 
        representatives of the specific mission or administrative area 
        to be supported by the information technology to be acquired, 
        together with a contracting officer and persons with relevant 
        expertise.

       (4) Use of source selection factors emphasizing source 
                          qualifications and costs

        Use of source selection factors that emphasize--
            (A) the qualifications of the offeror, including such 
        factors as personnel skills, previous experience in providing 
        other private or public sector organizations with solutions for 
        attaining objectives similar to the objectives of the 
        acquisition, past contract performance, qualifications of the 
        proposed program manager, and the proposed management plan; and
            (B) the costs likely to be associated with the conceptual 
        approach proposed by the offeror.

          (5) Open communications with contractor community

        Open availability of the following information to potential 
    offerors:
            (A) The agency mission to be served by the acquisition.
            (B) The functional process to be performed by use of 
        information technology.
            (C) The process improvements to be attained.

                       (6) Simple solicitation

        Use of a simple solicitation that sets forth only the functional 
    work description, the source selection factors to be used in 
    accordance with paragraph (4), the required terms and conditions, 
    instructions regarding submission of offers, and the estimate of the 
    Federal Government's budget for the desired work.

                        (7) Simple proposals

        Submission of oral presentations and written proposals that are 
    limited in size and scope and contain information on--
            (A) the offeror's qualifications to perform the desired 
        work;
            (B) past contract performance;
            (C) the proposed conceptual approach; and
            (D) the costs likely to be associated with the proposed 
        conceptual approach.

                        (8) Simple evaluation

        Use of a simplified evaluation process, to be completed within 
    45 days after receipt of proposals, which consists of the following:
            (A) Identification of the most qualified offerors that are 
        within the competitive range.
            (B) Issuance of invitations for at least three and not more 
        than five of the identified offerors to make oral presentations 
        to, and engage in discussions with, the evaluating personnel 
        regarding, for each offeror--
                (i) the qualifications of the offeror, including how the 
            qualifications of the offeror relate to the approach 
            proposed to be taken by the offeror in the acquisition; and
                (ii) the costs likely to be associated with the 
            approach.

            (C) Evaluation of the qualifications of the identified 
        offerors and the costs likely to be associated with the 
        offerors' proposals on the basis of submissions required under 
        the process and any oral presentations made by, and any 
        discussions with, the offerors.

               (9) Selection of most qualified offeror

        A selection process consisting of the following:
            (A) Identification of the most qualified source or sources, 
        primarily on the basis of the oral proposals, presentations, and 
        discussions, and written proposals submitted in accordance with 
        paragraph (7).
            (B) Conduct for 30 to 60 days (or a longer period, if 
        approved by the Administrator) of a program definition phase 
        (funded, in the case of the source ultimately awarded the 
        contract, by the Federal Government)--
                (i) during which the selected source or sources, in 
            consultation with one or more intended users, develops a 
            conceptual system design and technical approach, defines 
            logical phases for the project, and estimates the total cost 
            and the cost for each phase; and
                (ii) after which a contract for performance of the work 
            may be awarded to the source whose offer is determined to be 
            most advantageous to the Government on the basis of cost, 
            the responsiveness, reasonableness, and quality of the 
            proposed performance, and a sharing of risk and benefits 
            between the source and the Government.

            (C) Conduct of as many successive program definition phases 
        as is necessary in order to award a contract in accordance with 
        subparagraph (B).

                 (10) System implementation phasing

        System implementation to be executed in phases that are tailored 
    to the solution, with various contract arrangements being used, as 
    appropriate, for various phases and activities.

                 (11) Mutual authority to terminate

        Authority for the Federal Government or the contractor to 
    terminate the contract without penalty at the end of any phase 
    defined for the project.

                   (12) Time management discipline

        Application of a standard for awarding a contract within 105 to 
    120 days after issuance of the solicitation, except that the 
    Administrator may approve the application of a longer standard 
    period.

(d) Pilot program design

               (1) Joint public-private working group

        The Administrator, in consultation with the Administrator for 
    the Office of Information and Regulatory Affairs, shall establish a 
    joint working group of Federal Government personnel and 
    representatives of the information technology industry to design a 
    plan for conduct of any pilot program carried out under this 
    section.

                         (2) Content of plan

        The plan shall provide for use of solutions-based contracting in 
    the Department of Defense and not more than two other executive 
    agencies for a total of--
            (A) not more than 10 projects, each of which has an 
        estimated cost of between $25,000,000 and $100,000,000; and
            (B) not more than 10 projects, each of which has an 
        estimated cost of between $1,000,000 and $5,000,000, to be set 
        aside for small business concerns.

                     (3) Complexity of projects

        (A) Subject to subparagraph (C), each acquisition project under 
    the pilot program shall be sufficiently complex to provide for 
    meaningful evaluation of the use of solutions-based contracting for 
    acquisition of information technology for executive agencies.
        (B) In order for an acquisition project to satisfy the 
    requirement in subparagraph (A), the solution for attainment of the 
    executive agency's objectives under the project should not be 
    obvious, but rather shall involve a need for some innovative 
    development and systems integration.
        (C) An acquisition project should not be so extensive or lengthy 
    as to result in undue delay in the evaluation of the use of 
    solutions-based contracting.

(e) Monitoring by GAO

    The Comptroller General of the United States shall--
        (1) monitor the conduct, and review the results, of acquisitions 
    under the pilot program; and
        (2) submit to Congress periodic reports containing the views of 
    the Comptroller General on the activities, results, and findings 
    under the pilot program.

(Pub. L. 104-106, div. E, title LIII, Sec. 5312, Feb. 10, 1996, 110 
Stat. 692; Pub. L. 105-85, div. A, title VIII, Sec. 852, Nov. 18, 1997, 
111 Stat. 1851.)


                               Amendments

    1997--Subsec. (c)(9)(A). Pub. L. 105-85, Sec. 852(a)(1), substituted 
``or sources,'' for ``, and ranking of alternative sources,''.
    Subsec. (c)(9)(B). Pub. L. 105-85, Sec. 852(a)(2)(A), inserted ``(or 
a longer period, if approved by the Administrator)'' after ``30 to 60 
days'' in introductory provisions.
    Subsec. (c)(9)(B)(i). Pub. L. 105-85, Sec. 852(a)(2)(B), inserted 
``or sources'' after ``source''.
    Subsec. (c)(9)(B)(ii). Pub. L. 105-85, Sec. 852(a)(2)(C), 
substituted ``the source whose offer is determined to be most 
advantageous to the Government'' for ``that source''.
    Subsec. (c)(9)(C). Pub. L. 105-85, Sec. 852(a)(3), struck out ``with 
alternative sources (in the order ranked)'' after ``definition phases''.
    Subsec. (c)(12). Pub. L. 105-85, Sec. 852(b), inserted before period 
at end ``, except that the Administrator may approve the application of 
a longer standard period''.

                  Section Referred to in Other Sections

    This section is referred to in section 1471 of this title.
