
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 41USC251]

 
                       TITLE 41--PUBLIC CONTRACTS
 
                    CHAPTER 4--PROCUREMENT PROCEDURES
 
                  SUBCHAPTER IV--PROCUREMENT PROVISIONS
 
Sec. 251. Declaration of purpose of this subchapter

    The purpose of this subchapter is to facilitate the procurement of 
property and services.

(June 30, 1949, ch. 288, title III, Sec. 301, 63 Stat. 393; July 12, 
1952, ch. 703, Sec. 1(m), 66 Stat. 594.)


                               Amendments

    1952--Act July 12, 1952, substituted ``property'' for ``supplies''.


                    Effective Date of 1996 Amendment

    Pub. L. 104-106, div. D, title XLIV, Sec. 4401, Feb. 10, 1996, 110 
Stat. 678, provided that:
    ``(a) Effective Date.--Except as otherwise provided in this division 
[div. D (Secs. 4001-4402) of Pub. L. 104-106, see Short Title of 1996 
Amendment note below], this division and the amendments made by this 
division shall take effect on the date of the enactment of this Act 
[Feb. 10, 1996].
    ``(b) Applicability of Amendments.--
        ``(1) Solicitations, unsolicited proposals, and related 
    contracts.--An amendment made by this division shall apply, in the 
    manner prescribed in the final regulations promulgated pursuant to 
    section 4402 [set out below] to implement such amendment, with 
    respect to any solicitation that is issued, any unsolicited proposal 
    that is received, and any contract entered into pursuant to such a 
    solicitation or proposal, on or after the date described in 
    paragraph (3).
        ``(2) Other matters.--An amendment made by this division shall 
    also apply, to the extent and in the manner prescribed in the final 
    regulations promulgated pursuant to section 4402 to implement such 
    amendment, with respect to any matter related to--
            ``(A) a contract that is in effect on the date described in 
        paragraph (3);
            ``(B) an offer under consideration on the date described in 
        paragraph (3); or
            ``(C) any other proceeding or action that is ongoing on the 
        date described in paragraph (3).
        ``(3) Demarcation date.--The date referred to in paragraphs (1) 
    and (2) is the date specified in such final regulations. The date so 
    specified shall be January 1, 1997, or any earlier date that is not 
    within 30 days after the date on which such final regulations are 
    published.''


                    Effective Date of 1994 Amendment

    Pub. L. 103-355, title X, Sec. 10001, Oct. 13, 1994, 108 Stat. 3404, 
provided that:
    ``(a) Effective Date.--Except as otherwise provided in this Act, 
this Act [see Short Title of 1994 Amendment note below] and the 
amendments made by this Act shall take effect on the date of the 
enactment of this Act [Oct. 13, 1994].
    ``(b) Applicability of Amendments.--(1) An amendment made by this 
Act shall apply, in the manner prescribed in the final regulations 
promulgated pursuant to section 10002 to implement such amendment [set 
out below], with respect to any solicitation that is issued, any 
unsolicited proposal that is received, and any contract entered into 
pursuant to such a solicitation or proposal, on or after the date 
described in paragraph (3).
    ``(2) An amendment made by this Act shall also apply, to the extent 
and in the manner prescribed in the final regulations promulgated 
pursuant to section 10002 to implement such amendment, with respect to 
any matter related to--
        ``(A) a contract that is in effect on the date described in 
    paragraph (3);
        ``(B) an offer under consideration on the date described in 
    paragraph (3); or
        ``(C) any other proceeding or action that is ongoing on the date 
    described in paragraph (3).
    ``(3) The date referred to in paragraphs (1) and (2) is the date 
specified in such final regulations [Oct. 1, 1995, see 60 F.R. 48231, 
Sept. 18, 1995]. The date so specified shall be October 1, 1995, or any 
earlier date that is not within 30 days after the date on which such 
final regulations are published.
    ``(c) Immediate Applicability of Certain Amendments.--
Notwithstanding subsection (b), the amendments made by the following 
provisions of this Act apply on and after the date of the enactment of 
this Act [Oct. 13, 1994]: sections 1001, 1021, 1031, 1051, 1071, 1092, 
1201, 1506(a), 1507, 1554, 2002(a), 2191, 3062(a), 3063, 3064, 
3065(a)(1), 3065(b), 3066, 3067, 6001(a), 7101, 7103, 7205, and 7206, 
the provisions of subtitles A, B, and C of title III [Secs. 3001-3025], 
and the provisions of title V [see Tables for classification].''


                    Effective Date of 1984 Amendment

    Pub. L. 98-369, div. B, title VII, Sec. 2751, July 18, 1984, 98 
Stat. 1203, provided that:
    ``(a) Except as provided in subsection (b), the amendments made by 
this title [see Short Title of 1984 Amendments note below] shall apply 
with respect to any solicitation for bids or proposals issued after 
March 31, 1985.
    ``(b) The amendments made by section 2713 [amending section 759 of 
Title 40, Public Buildings, Property, and Works, and enacting provisions 
set out as a note under section 759 of Title 40] and subtitle D 
[enacting sections 3551 to 3556 of Title 31, Money and Finance] shall 
apply with respect to any protest filed after January 14, 1985.''


                             Effective Date

    Section effective July 1, 1949, see section 605 of act June 30, 
1949, set out as a note under section 471 of Title 40, Public Buildings, 
Property, and Works.


                      Short Title of 1996 Amendment

    Pub. L. 104-106, div. D, Sec. 4001, Feb. 10, 1996, 110 Stat. 642, as 
amended by Pub. L. 104-208, div. A, title I, Sec. 101(f) [title VIII, 
Sec. 808(a)], Sept. 30, 1996, 110 Stat. 3009-314, 3009-393, provided 
that: ``This division [div. D (Secs. 4001-4402) of Pub. L. 104-106, see 
Tables for classification] and division E [Secs. 5001-5703 of Pub. L. 
104-106, see Tables for classification] may be cited as the `Clinger-
Cohen Act of 1996'.''


                      Short Title of 1994 Amendment

    Pub. L. 103-355, Sec. 1, Oct. 13, 1994, 108 Stat. 3243, provided 
that: ``This Act [see Tables for classification] may be cited as the 
`Federal Acquisition Streamlining Act of 1994'.''


                     Short Title of 1984 Amendments

    Pub. L. 98-577, Sec. 1, Oct. 30, 1984, 98 Stat. 3066, provided that 
this Act [enacting sections 253c to 253h, 414a, 418a, and 418b of this 
title, repealing section 2303a of Title 10, Armed Forces, amending 
sections 253, 253b, 259, 403, and 416 of this title, sections 2302, 
2304, 2311, and 2320 of Title 10, and sections 637 and 644 of Title 15, 
Commerce and Trade, and enacting provisions set out as notes under this 
section, section 416 of this title, and sections 637 and 644 of Title 
15] may be cited as the ``Small Business and Federal Procurement 
Competition Enhancement Act of 1984''.
    Pub. L. 98-369, title VII, Sec. 2701, July 18, 1984, 98 Stat. 1175, 
provided that: ``This title [enacting sections 253a, 253b, 416 to 419 of 
this title and sections 3551 to 3556 of Title 31, Money and Finance, 
amending sections 252, 253, 254, 257, 258, 259, 260, 403, 405, and 414 
of this title, sections 2301 to 2306, 2310, 2311, 2313, and 2356 of 
Title 10, Armed Forces, and section 759 of Title 40, Public Buildings, 
Property, and Works, and enacting provisions set out as notes under this 
section, sections 253, 403, and 407 of this title, section 2304 of Title 
10, and section 759 of Title 40] may be cited as the `Competition in 
Contracting Act of 1984'.''


                               Regulations

    Pub. L. 104-106, div. D, title XLIV, Sec. 4402, Feb. 10, 1996, 110 
Stat. 678, provided that:
    ``(a) Proposed Revisions.--Proposed revisions to the Federal 
Acquisition Regulation and such other proposed regulations (or revisions 
to existing regulations) as may be necessary to implement this Act [see 
Tables for classification] shall be published in the Federal Register 
not later than 210 days after the date of the enactment of this Act 
[Feb. 10, 1996].
    ``(b) Public Comment.--The proposed regulations described in 
subsection (a) shall be made available for public comment for a period 
of not less than 60 days.
    ``(c) Final Regulations.--Final regulations shall be published in 
the Federal Register not later than 330 days after the date of enactment 
of this Act [Feb. 10, 1996].
    ``(d) Modifications.--Final regulations promulgated pursuant to this 
section to implement an amendment made by this Act may provide for 
modification of an existing contract without consideration upon the 
request of the contractor.
    ``(e) Savings Provisions.--
        ``(1) Validity of prior actions.--Nothing in this division [div. 
    D (Secs. 4001-4402) of Pub. L. 104-106, see Short Title of 1996 
    Amendment note above] shall be construed to affect the validity of 
    any action taken or any contract entered into before the date 
    specified in the regulations pursuant to section 4401(b)(3) [set out 
    as an Effective Date of 1996 Amendment note above] except to the 
    extent and in the manner prescribed in such regulations.
        ``(2) Renegotiation and modification of preexisting contracts.--
    Except as specifically provided in this division, nothing in this 
    division shall be construed to require the renegotiation or 
    modification of contracts in existence on the date of the enactment 
    of this Act [Feb. 10, 1996].
        ``(3) Continued applicability of preexisting law.--Except as 
    otherwise provided in this division, a law amended by this division 
    shall continue to be applied according to the provisions thereof as 
    such law was in effect on the day before the date of the enactment 
    of this Act until--
            ``(A) the date specified in final regulations implementing 
        the amendment of that law (as promulgated pursuant to this 
        section); or
            ``(B) if no such date is specified in regulations, January 
        1, 1997.''
    Pub. L. 103-355, title X, Sec. 10002, Oct. 13, 1994, 108 Stat. 3404, 
provided that:
    ``(a) Proposed Revisions.--Proposed revisions to the Federal 
Acquisition Regulation and such other proposed regulations (or revisions 
to existing regulations) as may be necessary to implement this Act [see 
Short Title of 1994 Amendment note above] shall be published in the 
Federal Register not later than 210 days after the date of the enactment 
of this Act [Oct. 13, 1994].
    ``(b) Public Comment.--The proposed regulations described in 
subsection (a) shall be made available for public comment for a period 
of not less than 60 days.
    ``(c) Final Regulations.--Final regulations shall be published in 
the Federal Register not later than 330 days after the date of enactment 
of this Act.
    ``(d) Modifications.--Final regulations promulgated pursuant to this 
section to implement an amendment made by this Act may provide for 
modification of an existing contract without consideration upon the 
request of the contractor.
    ``(e) Requirement for Clarity.--Officers and employees of the 
Federal Government who prescribe regulations to implement this Act and 
the amendments made by this Act shall make every effort practicable to 
ensure that the regulations are concise and are easily understandable by 
potential offerors as well as by Government officials.
    ``(f) Savings Provisions.--(1) Nothing in this Act shall be 
construed to affect the validity of any action taken or any contract 
entered into before the date specified in the regulations pursuant to 
section 10001(b)(3) [see Effective Date of 1994 Amendment note above] 
except to the extent and in the manner prescribed in such regulations.
    ``(2) Except as specifically provided in this Act, nothing in this 
Act shall be construed to require the renegotiation or modification of 
contracts in existence on the date of the enactment of this Act [Oct. 
13, 1994].
    ``(3) Except as otherwise provided in this Act, a law amended by 
this Act shall continue to be applied according to the provisions 
thereof as such law was in effect on the day before the date of the 
enactment of this Act until--
        ``(A) the date specified in final regulations implementing the 
    amendment of that law (as promulgated pursuant to this section); or
        ``(B) if no such date is specified in regulations, October 1, 
    1995.''


                    Evaluation by Comptroller General

    Pub. L. 103-355, title X, Sec. 10003, Oct. 13, 1994, 108 Stat. 3405, 
provided that:
    ``(a) Evaluation Relating to Issuance of Regulations.--Not later 
than 180 days after the issuance in final form of revisions to the 
Federal Acquisition Regulation pursuant to section 10002 [set out 
above], the Comptroller General shall submit to Congress a report 
evaluating compliance with such section.
    ``(b) Evaluation of Implementation of Regulations.--Not later than 
18 months after issuance in final form of revisions to the Federal 
Acquisition Regulation pursuant to section 10002, the Comptroller 
General shall submit to the committees referred to in subsection (c) a 
report evaluating the effectiveness of the regulations implementing this 
Act [see Short Title of 1994 Amendment note above] in streamlining the 
acquisition system and fulfilling the other purposes of this Act.
    ``(c) Committees Designated To Receive the Reports.--The Comptroller 
General shall submit the reports required by this section to--
        ``(1) the Committees on Governmental Affairs, on Armed Services, 
    and on Small Business of the Senate; and
        ``(2) the Committees on Government Operations [now Committee on 
    Government Reform], on Armed Services, and on Small Business of the 
    House of Representatives.''


                   Congressional Statement of Purpose

    Pub. L. 98-577, title I, Sec. 101, Oct. 30, 1984, 98 Stat. 3066, 
provided that: ``The purposes of this Act are to--
        ``(1) eliminate procurement procedures and practices that 
    unnecessarily inhibit full and open competition for contracts;
        ``(2) promote the use of contracting opportunities as a means to 
    expand the industrial base of the United States in order to ensure 
    adequate responsive capability of the economy to the increased 
    demands of the Government in times of national emergency; and
        ``(3) foster opportunities for the increased participation in 
    the competitive procurement process of small business concerns and 
    small business concerns owned and controlled by socially and 
    economically disadvantaged individuals.''


                  Commission on Government Procurement

    Pub. L. 91-129, Nov. 26, 1969, 83 Stat. 269, as amended by Pub. L. 
92-47, July 9, 1971, 85 Stat. 102, established the Commission on 
Government Procurement, which was to study and investigate statutes, 
rules, regulations, procedures, and practices affecting Government 
procurement and to submit a final report to Congress on or before Dec. 
31, 1972, on the results of this study, including recommendations for 
changes designed to promote economy, efficiency, and effectiveness in 
the procurement of goods, services, and facilities by and for the 
executive branch of the Government. The Commission terminated 120 days 
after submission of the final report.

               Ex. Ord. No. 13005. Empowerment Contracting

    Ex. Ord. No. 13005, May 21, 1996, 61 F.R. 26069, provided:
    In order to promote economy and efficiency in Federal procurement, 
it is necessary to secure broad-based competition for Federal contracts. 
This broad competition is best achieved where there is an expansive pool 
of potential contractors capable of producing quality goods and services 
at competitive prices. A great and largely untapped opportunity for 
expanding the pool of such contractors can be found in this Nation's 
economically distressed communities.
    Fostering growth of Federal contractors in economically distressed 
communities and ensuring that those contractors become viable businesses 
for the long term will promote economy and efficiency in Federal 
procurement and help to empower those communities. Fostering growth of 
long-term viable contractors will be promoted by offering appropriate 
incentives to qualified businesses.
    Accordingly, by the authority vested in me as President by the 
Constitution and the laws of the United States, including section 486(a) 
of title 40, United States Code, and section 301 of title 3, United 
States Code, it is hereby ordered as follows:
    Section 1. Policy. The purpose of this order is to strengthen the 
economy and to improve the efficiency of the Federal procurement system 
by encouraging business development that expands the industrial base and 
increases competition.
    Sec. 2. Empowerment Contracting Program. In consultation with the 
Secretaries of the Departments of Housing and Urban Development, Labor, 
and Defense; the Administrator of General Services; the Administrator of 
the National Aeronautics and Space Administration; the Administrator of 
the Small Business Administration; and the Administrator for Federal 
Procurement Policy, the Secretary of the Department of Commerce shall 
develop policies and procedures to ensure that agencies, to the extent 
permitted by law, grant qualified large businesses and qualified small 
businesses appropriate incentives to encourage business activity in 
areas of general economic distress, including a price or an evaluation 
credit, when assessing offers for government contracts in unrestricted 
competitions, where the incentives would promote the policy set forth in 
this order. In developing such policies and procedures, the Secretary 
shall consider the size of the qualified businesses.
    Sec. 3. Monitoring and Evaluation. The Secretary shall:
    (a) monitor the implementation and operation of the policies and 
procedures developed in accordance with this order;
    (b) develop a process to ensure the proper administration of the 
program and to reduce the potential for fraud by the intended 
beneficiaries of the program;
    (c) develop principles and a process to evaluate the effectiveness 
of the policies and procedures developed in accordance with this order; 
and
    (d) by December 1 of each year, issue a report to the President on 
the status and effectiveness of the program.
    Sec. 4. Implementation Guidelines. In implementing this order, the 
Secretary shall:
    (a) issue rules, regulations, and guidelines necessary to implement 
this order, including a requirement for the periodic review of the 
eligibility of qualified businesses and distressed areas;
    (b) draft all rules, regulations, and guidelines necessary to 
implement this order within 90 days of the date of this order; and
    (c) ensure that all policies and procedures and all rules, 
regulations, and guidelines adopted and implemented in accordance with 
this order minimize the administrative burden on affected agencies and 
the procurement process.
    Sec. 5. Definitions. For purposes of this Executive order:
    (a) ``Agency'' means any authority of the United States that is an 
``agency'' under 44 U.S.C. 3502(1), other than those considered to be 
independent regulatory agencies, as defined in 44 U.S.C. 3502(10).
    (b) ``Area of general economic distress'' shall be defined, for all 
urban and rural communities, as any census tract that has a poverty rate 
of at least 20 percent or any designated Federal Empowerment Zone, 
Supplemental Empowerment Zone, Enhanced Enterprise Community, or 
Enterprise Community. In addition, the Secretary may designate as an 
area of general economic distress any additional rural or Indian 
reservation area after considering the following factors:
    (1) Unemployment rate;
    (2) Degree of poverty;
    (3) Extent of outmigration; and
    (4) Rate of business formation and rate of business growth.
    (c) ``Qualified large business'' means a large for-profit or not-
for-profit trade or business that (1) employs a significant number of 
residents from the area of general economic distress; and (2) either has 
a significant physical presence in the area of general economic distress 
or has a direct impact on generating significant economic activity in 
the area of general economic distress.
    (d) ``Qualified small business'' means a small for-profit or not-
for-profit trade or business that (1) employs a significant number of 
residents from the area of general economic distress; (2) has a 
significant physical presence in the area of general economic distress; 
or (3) has a direct impact on generating significant economic activity 
in the area of general economic distress.
    (e) ``Secretary'' means the Secretary of Commerce.
    Sec. 6. Agency Authority. Nothing in this Executive order shall be 
construed as displacing the agencies' authority or responsibilities, as 
authorized by law, including specifically other programs designed to 
promote the development of small or disadvantaged businesses.
    Sec. 7. Judicial Review. This Executive order does not create any 
right or benefit, substantive or procedural, enforceable at law or 
equity by a party against the United States, its agencies or 
instrumentalities, its officers or employees, or any other person.
                                                     William J. Clinton.


                               Definitions

    The definitions in section 472 of Title 40, Public Buildings, 
Property, and Works, apply to this subchapter.
