
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: 41USC401]

 
                       TITLE 41--PUBLIC CONTRACTS
 
             CHAPTER 7--OFFICE OF FEDERAL PROCUREMENT POLICY
 
Secs. 401, 402. Repealed. Pub. L. 104-106, div. D, title XLIII, 
        Sec. 4305(a)(2), Feb. 10, 1996, 110 Stat. 665
        
    Section 401, Pub. L. 93-400, Sec. 2, Aug. 30, 1974, 88 Stat. 796; 
Pub. L. 96-83, Sec. 2, Oct. 10, 1979, 93 Stat. 648; Pub. L. 98-191, 
Sec. 3, Dec. 1, 1983, 97 Stat. 1325; Pub. L. 100-679, Sec. 2(a), Nov. 
17, 1988, 102 Stat. 4055; Pub. L. 103-355, title I, Sec. 1091(a), Oct. 
13, 1994, 108 Stat. 3272, stated policy of United States Government 
relating to procurement of property and services.
    Section 402, Pub. L. 93-400, Sec. 3, Aug. 30, 1974, 88 Stat. 796; 
Pub. L. 100-679, Sec. 2(b), Nov. 17, 1988, 102 Stat. 4055, stated 
findings of Congress and purpose of this chapter.


                        Effective Date of Repeal

    For effective date and applicability of repeal, see section 4401 of 
Pub. L. 104-106, set out as an Effective Date of 1996 Amendment note 
under section 251 of this title.


                    Effective Date of 1979 Amendment

    Section 12 of Pub. L. 96-83 provided that: ``Except to the extent 
otherwise provided therein, the amendments made by this Act [see Short 
Title of 1979 Amendment note below] shall take effect on October 1, 
1979.''


                      Short Title of 1988 Amendment

    Section 1 of Pub. L. 100-679 provided that: ``This Act [enacting 
sections 421 to 424 of this title, amending this section, sections 402, 
403, 405, 410, and 420 of this title, sections 5312 to 5315, 8331, 8401, 
8701, and 8901 of Title 5, Government Organization and Employees, and 
section 541 of Title 40, Public Buildings, Property, and Works, 
repealing section 2168 of Title 50, Appendix, War and National Defense, 
and enacting provisions set out as notes under sections 405 and 423 of 
this title and section 5312 of Title 5] may be cited as the `Office of 
Federal Procurement Policy Act Amendments of 1988'.''


                      Short Title of 1983 Amendment

    Section 1 of Pub. L. 98-191 provided: ``That this Act [enacting 
sections 413 to 415 of this title, amending this section, sections 5, 
6a-1, 252, 403, 405, 407, 409, 410, and 411 of this title, section 831h 
of Title 16, Conservation, and sections 474, 481, and 487 of Title 40, 
Public Buildings, Property, and Works] may be cited as the `Office of 
Federal Procurement Policy Act Amendments of 1983'.''


                      Short Title of 1979 Amendment

    Section 1(a) of Pub. L. 96-83 provided that: ``This Act [amending 
this section, sections 403, 405, 407, and 409 to 412 of this title, and 
sections 474, 481, and 487 of Title 40, Public Buildings, Property and 
Works, and enacting provisions set out as notes under this section and 
section 405a of this title] may be cited as the `Office of Federal 
Procurement Policy Act Amendments of 1979'.''


                               Short Title

    Section 1(a) of Pub. L. 93-400, as amended by Pub. L. 103-355, title 
X, Sec. 10005(a)(1), Oct. 13, 1994, 108 Stat. 3406, provided that: 
``This Act [enacting this chapter and amending section 5315 of Title 5, 
Government Organization and Employees, and sections 474, 481, and 487 of 
Title 40, Public Buildings, Property, and Works] may be cited as the 
`Office of Federal Procurement Policy Act'.''


                          Stylistic Consistency

    Section 10005(b)(1) of Pub. L. 103-355 provided that: ``The Office 
of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is amended so 
that the section designation and section heading of each section of such 
Act is in the same form and typeface as the section designation and 
heading of this section [108 Stat. 3406].''


    Requirements for Use of Appropriations by Executive Agencies for 
                          Services by Contract

    Pub. L. 102-394, title V, Sec. 502, Oct. 6, 1992, 106 Stat. 1825, 
provided that: ``No part of any appropriation contained in this Act or 
subsequent Departments of Labor, Health and Human Services, and 
Education, and Related Agencies Appropriations Acts shall be expended by 
an executive agency, as referred to in the Office of Federal Procurement 
Policy Act (41 U.S.C. 401 et seq.), pursuant to any obligation for 
services by contract, unless such executive agency has awarded and 
entered into such contract in full compliance with such Act and 
regulations promulgated thereunder.''
    Similar provisions were contained in the following prior 
appropriation acts:
    Pub. L. 102-170, title V, Sec. 502, Nov. 26, 1991, 105 Stat. 1140.
    Pub. L. 101-517, title V, Sec. 502, Nov. 5, 1990, 104 Stat. 2221.
    Pub. L. 101-166, title V, Sec. 502, Nov. 21, 1989, 103 Stat. 1189.
    Pub. L. 100-202, Sec. 101(h) [title V, Sec. 502], Dec. 22, 1987, 101 
Stat. 1329-256, 1329-287.
    Pub. L. 99-500, Sec. 101(i) [H.R. 5233, title V, Sec. 502], Oct. 18, 
1986, 100 Stat. 1783-287, and Pub. L. 99-591, Sec. 101(i) [H.R. 5233, 
title V, Sec. 502], Oct. 30, 1986, 100 Stat. 3341-287.
    Pub. L. 99-178, title V, Sec. 502, Dec. 12, 1985, 99 Stat. 1132.
    Pub. L. 98-619, title V, Sec. 502, Nov. 8, 1984, 98 Stat. 3332.
    Pub. L. 98-139, title V, Sec. 502, Oct. 31, 1983, 97 Stat. 899.
    Pub. L. 97-377, title I, Sec. 101(e)(1) [title V, Sec. 502], Dec. 
21, 1982, 96 Stat. 1878, 1904.

     Ex. Ord. No. 12073. Federal Procurement in Labor Surplus Areas

    Ex. Ord. No. 12073, Aug. 16, 1978, 43 F.R. 36873, provided:
    By the authority vested in me as President by the Constitution of 
the United States of America, and in order to strengthen the economic 
base of our Nation, it is hereby ordered as follows:

            1-1. Procurements in Labor Surplus Areas

    1-101. Executive agencies shall emphasize procurement set-asides in 
labor surplus areas in order to strengthen our Nation's economy.
    1-102. Labor surplus area procurements shall be consistent with this 
Order and, to the extent funds are available, the priorities of Section 
15 of the Small Business Act, as amended by Public Law 95-89 (15 U.S.C. 
644).

             1-2. Administrator of General Services

    1-201. The Administrator shall coordinate with and advise State and 
local officials with regard to Federal efforts to encourage procurements 
in labor surplus areas with the aim of fostering economic development in 
labor surplus areas.
    1-202. The Administrator shall establish specific labor surplus area 
procurement targets for Executive agencies in consultation with the 
heads of those agencies.
    1-203. In cooperation with the heads of Executive agencies, the 
Administrator shall encourage the use of set-asides or other appropriate 
methods for meeting procurement targets in labor surplus areas.
    1-204. The Administrator shall report every six months to the 
President on the progress of the agencies in achieving the procurement 
targets.

                  1-3. Agency Responsibilities

    1-301. The Secretary of Labor shall classify and designate labor 
markets which are labor surplus areas. The Secretary shall provide labor 
market data to the heads of agencies and State and local officials in 
order to promote the development of business opportunities in labor 
surplus areas.
    1-302. The heads of Executive agencies shall cooperate with the 
Administrator in carrying out his responsibilities for labor surplus 
area programs and shall provide the information necessary for setting 
procurement targets and recording achievement. They shall keep the 
Administrator informed of plans and programs which affect labor surplus 
procurements, with particular attention to opportunities for minority 
firms.
    1-303. In accord with Section 6 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 405), the Administrator for Federal Procurement 
Policy shall be responsible for the overall direction and oversight of 
the policies affecting procurement programs for labor surplus areas.
                                                           Jimmy Carter.

                        Executive Order No. 12092

    Ex. Ord. No. 12092, Nov. 1, 1978, 43 F.R. 51375, as amended by Ex. 
Ord. No. 12161, Sept. 28, 1979, 44 F.R. 56663, which related to the 
prohibition against inflationary procurement practices, was revoked by 
Ex. Ord. No. 12288, Jan. 29, 1981, 46 F.R. 10135.

                        Executive Order No. 12352

    Ex. Ord. No. 12352, Mar. 17, 1982, 47 F.R. 12125, which related to 
Federal procurement reform to support mission accomplishment more 
effectively, was revoked by Ex. Ord. No. 12931, Sec. 4, Oct. 13, 1994, 
59 F.R. 52388, set out below.

                        Executive Order No. 12818

    Ex. Ord. No. 12818, Oct. 23, 1992, 57 F.R. 48713, which prohibited 
executive agencies from requiring labor agreements on Federal or 
federally funded construction projects, was revoked by Ex. Ord. No. 
12836, Sec. 1, Feb. 1, 1993, 58 F.R. 7045.

             Ex. Ord. No. 12931. Federal Procurement Reform

    Ex. Ord. No. 12931, Oct. 13, 1994, 59 F.R. 52387, provided:
    By the authority vested in me as President by the Constitution and 
the laws of the United States of America, and in order to ensure 
effective and efficient spending of public funds through fundamental 
reforms in Government procurement, it is hereby ordered as follows:
    Section 1. To make procurement more effective in support of mission 
accomplishment and consistent with recommendations of the National 
Performance Review, heads of executive agencies engaged in the 
procurement of supplies and services shall:
    (a) Review agency procurement rules, reporting requirements, 
contractual requirements, certification procedures, and other 
administrative procedures over and above those required by statute, and, 
where practicable, replace them with guiding principles that encourage 
and reward innovation;
    (b) Review existing and planned agency programs to assure that such 
programs meet agency mission needs;
    (c) Ensure that procurement organizations focus on measurable 
results and on increased attention to understanding and meeting customer 
needs;
    (d) Increase the use of commercially available items where 
practicable, place more emphasis on past contractor performance, and 
promote best value rather than simply low cost in selecting sources for 
supplies and services;
    (e) Ensure that simplified acquisition procedures are used, to the 
maximum extent practicable, for procurements under the simplified 
acquisition threshold in order to reduce administrative burdens and more 
effectively support the accomplishment of agency missions;
    (f) Expand the use of the Government purchase card by the agency and 
take maximum advantage of the micro-purchase authority provided in the 
Federal Acquisition Streamlining Act of 1994 [Pub. L. 103-355, see Short 
Title of 1994 Amendment note set out under section 251 of this title] by 
delegating the authority, to the maximum extent practicable, to the 
offices that will be using the supplies or services to be purchased;
    (g) Establish clear lines of contracting authority and 
accountability;
    (h) Establish career education programs for procurement 
professionals, including requirements for successful completion of 
educational requirements or mandatory training for entry level positions 
and for promotion to higher level positions, in order to ensure a highly 
qualified procurement work force;
    (i) Designate a Procurement Executive with agency-wide 
responsibility to oversee development of procurement goals, guidelines, 
and innovation, measure and evaluate procurement office performance 
against stated goals, enhance career development of the procurement work 
force, and advise the agency heads whether goals are being achieved; and
    (j) Review existing and planned information technology acquisitions 
and contracts to ensure that the agency receives the best value with 
regard to price and technology, and consider alternatives in cases where 
best value is not being obtained.
    Sec. 2. The Director of the Office of Personnel Management, in 
consultation with the heads of executive agencies, shall ensure that 
personnel policies and classification standards meet the needs of 
executive agencies for a professional procurement work force.
    Sec. 3. The Administrator of the Office of Federal Procurement 
Policy, after consultation with the Director of the Office of Management 
and Budget, shall work jointly with the heads of executive agencies to 
provide broad policy guidance and overall leadership necessary to 
achieve procurement reform, including, but not limited to:
    (a) Coordinating Government-wide efforts;
    (b) Assisting executive agencies in streamlining guidance for 
procurement processes;
    (c) Identifying desirable Government-wide procurement system 
criteria; and
    (d) Identifying major inconsistencies in law and policies relating 
to procurement that impose unnecessary burdens on the private sector and 
Federal procurement officials, and, following coordination with 
executive agencies, submitting necessary legislative initiatives to the 
Office of Management and Budget for the resolution of such 
inconsistencies.
    Sec. 4. Executive Order No. 12352 is revoked.
                                                     William J. Clinton.

   Ex. Ord. No. 12969. Federal Acquisition and Community Right-To-Know

    Ex. Ord. No. 12969, Aug. 8, 1995, 60 F.R. 40989, provided:
    The Emergency Planning and Community Right-to-Know Act of 1986 (42 
U.S.C. 11001-11050) (``EPCRA'') and the Pollution Prevention Act of 1990 
(42 U.S.C. 13101-13109) (``PPA'') established programs to protect public 
health and the environment by providing the public with important 
information on the toxic chemicals being released into the air, land, 
and water in their communities by manufacturing facilities.
    The Toxics Release Inventory (``TRI'') established pursuant to 
section 313(j) of EPCRA, 42 U.S.C. 11023(j), based on information 
required to be reported under section 313 of EPCRA and section 6607 of 
PPA, 42 U.S.C. 13106, provides the public, industry, and Federal, State, 
and local governments with a basic tool for making risk-based decisions 
about management and control of toxic chemicals, that can have 
significant adverse effects on human health and the environment. TRI 
data allow the public, industry, and government to gauge the progress of 
industry and government efforts to reduce toxic chemical wastes.
    Sharing vital TRI information with the public has provided a strong 
incentive for reduction in the generation, and, ultimately, release into 
the environment, of toxic chemicals. Since the inception of the TRI 
program, reported releases to the environment under TRI have decreased 
significantly.
    The efficiency of the Federal Government is served when it purchases 
high quality supplies and services that have been produced with a 
minimum impact on the public health and environment of communities 
surrounding government contractors. Savings associated with reduced raw 
materials usage, reduced use of costly, inefficient end-of-pipeline 
pollution controls, and reduced liability and remediation costs from 
worker and community claims all serve to increase the economic and 
efficient provision of essential supplies and services to the 
government. As a result of TRI reporting, many manufacturers have 
learned of previously unrecognized significant efficiencies and cost 
savings in their production processes.
    The Federal Government's receipt of timely and quality supplies and 
services is also served by the general enhancement of relations between 
government contractors and the communities in which they are situated, 
as well as the cooperative working relationship between employers and 
employees who may be subject to exposure to toxic materials.
    Information concerning chemical release and transfer can assist the 
government to purchase efficiently produced, lower cost, and higher 
quality supplies and services that also have a minimum adverse impact on 
community health and the environment.
    NOW, THEREFORE, to promote economy and efficiency in government 
procurement of supplies and services, and by the authority vested in me 
as President by the Constitution and the laws of the United States of 
America, including EPCRA, 42 U.S.C. 11001 et seq., PPA, 42 U.S.C. 13101 
et seq., 40 U.S.C. 471 and 486(a), and 3 U.S.C. 301, it is hereby 
ordered as follows:
    Section 1. Policy. It is the policy of the executive branch in 
procuring supplies and services that, to ensure the economical and 
efficient procurement of Federal Government contracts, Federal agencies, 
to the greatest extent practicable, shall contract with companies that 
report in a public manner on toxic chemicals released to the 
environment.
    Sec. 2. Definitions. 2-201. All definitions found in EPCRA and PPA 
and implementing regulations are incorporated into this order by 
reference, with the following exceptions for purposes of this order.
    2-202. ``Federal agency'' means an ``Executive agency,'' as defined 
in 5 U.S.C. 105. For purposes of this order, military departments, as 
defined in 5 U.S.C. 102, are covered under the auspices of the 
Department of Defense.
    2-203. ``Acquisition'' means the acquiring by contract with 
appropriated funds of supplies or services (including construction) by 
and for the use of the Federal Government through purchase or lease, 
whether the supplies or services are already in existence or must be 
created, developed, demonstrated, and evaluated. Acquisition begins at 
the point when the Federal department or agency needs are established 
and includes the description of requirements to satisfy agency needs, 
solicitation and selection of sources, award of contracts, contract 
financing, contract performance, contract administration, and those 
technical and management functions directly related to the process of 
fulfilling agency needs by contract.
    2-204. ``Toxic chemical'' means a substance on the list described in 
section 313(c) of EPCRA, 42 U.S.C. 11023(c), as it exists on the 
effective date of this order.
    2-205. ``Administrator'' means the Administrator of the United 
States Environmental Protection Agency (``EPA'').
    2-206. ``Federal contractor'' means an entity that has submitted the 
successful bid or proposal in response to a competitive acquisition 
solicitation.
    Sec. 3. Applicability. 3-301. Each Federal agency shall, to the 
maximum extent practicable, include in contract solicitations as an 
eligibility criterion for the award of competitive acquisition contracts 
expected to equal or exceed $100,000 with the Federal contractors 
described in subsection 3-302, the requirement that such contractors 
must file (and continue to file for the life of the contract) a Toxic 
Chemical Release Form (``Form R''), as described in sections 313(a) and 
(g) of EPCRA, 42 U.S.C. 11023(a) and (g), for each toxic chemical 
manufactured, processed, or otherwise used by the Federal contractor at 
a facility, as described in section 313 of EPCRA, 42 U.S.C. 11023, and 
section 6607 of PPA, 42 U.S.C. 13106.
    3-302. The Federal contractors subject to the eligibility criterion 
described in subsection 3-301 above are those who currently report to 
the TRI pursuant to section 313(b)(1)(A) of EPCRA, 42 U.S.C. 
11023(b)(1)(A), that is, manufacturers having Standard Industrial 
Classification Code (``SIC'') designations of 20 through 39 (as in 
effect on July 1, 1985).
    3-303. Each Federal agency shall find that a prospective Federal 
contractor has satisfied the requirement in subsection 3-301 if the 
contractor certifies in a solicitation that it:
        (a) Does not manufacture, process, or otherwise use any toxic 
    chemicals listed under section 313(c) of EPCRA, 42 U.S.C. 11023(c);
        (b) Does not have 10 or more full-time employees as specified in 
    section 313(b)(1)(A) of EPCRA, 42 U.S.C. 11023(b)(1)(A);
        (c) Does not meet the reporting thresholds established under 
    section 313(f) of the EPCRA, 42 U.S.C. 11023(f); or
        (d) Has complied fully with the reporting requirements of 
    subsection 4-404.
    3-304. Each Federal agency shall require the filings described in 
subsection 3-301 above to include information on all chemicals 
identified by the Administrator pursuant to section 313(c) of EPCRA, 42 
U.S.C. 11023(c), as of the date of this order.
    3-305. Each Federal agency may amend existing contracts, to the 
extent permitted by law and where practicable, to require the reporting 
of information specified in subsection 3-301 above.
    3-306. As consistent with Title IV of the Federal Acquisition 
Streamlining Act of 1994 (FASA), Public Law 103-355 [see Tables for 
classification], and section 4(11) of the Office of Federal Procurement 
Policy Act, 41 U.S.C. 403(11), the requirements of this order are only 
applicable to competitive acquisition contracts expected to equal or 
exceed $100,000.
    Sec. 4. Implementation. 4-401. Not later than September 30, 1995, 
the EPA shall publish in the Federal Register guidance for compliance 
with this order, including applicability with respect to subcontractors.
    4-402. Within 30 days of the issuance of the guidance provided for 
in subsection 4-401 above, each Federal agency shall include in all 
acquisition solicitations issued on or after the effective date of this 
order, the provisions necessary to effect this order.
    4-403. For all contracts expected to exceed $500,000, each Federal 
agency shall consult with the Administrator or the Administrator's 
designee when the agency believes it is not practicable to include the 
eligibility requirement of section 3-301 in the contract solicitation or 
award.
    4-404. Each Federal agency shall require each Federal contractor 
designated in subsection 3-302 above to:
        (a) Have included in its response to the contract solicitation a 
    certification, as specified in the guidelines published pursuant to 
    subsection 4-401 of this order, that it will (if awarded the 
    contract) comply with the requirements of subsection 3-301; and
        (b) File with the Administrator and each appropriate State 
    pursuant to section 313(a) of EPCRA, 42 U.S.C. 11023(a), the 
    information required by subsection 3-301, beginning on the next July 
    1 after the date on which the contract is awarded.
    4-405. Information submitted to the EPA pursuant to subsection 4-
404(b) above shall be subject to the trade secret protections provided 
by section 322 of EPCRA, 42 U.S.C. 11042. Information that is not trade 
secret shall be made available to the public pursuant to sections 313(h) 
and (j) of EPCRA, 42 U.S.C. 11023(h) and (j). The Administrator is 
directed to review reports submitted pursuant to this order to determine 
the appropriateness of any claims for trade secret protection.
    4-406. When the Administrator determines that a Federal contractor 
has not filed the necessary forms or complete information as required by 
subsection 3-301 above, the Administrator or the Administrator's 
designee may recommend termination of the contract for convenience. The 
Administrator shall transmit that recommendation to the head of the 
contracting agency, and that agency shall consider the recommendation 
and determine whether to terminate the contract. In carrying out this 
responsibility, the Administrator may investigate any subject Federal 
contractor to determine the adequacy of compliance with the provisions 
of this order and the Administrator's designee may hold such hearings, 
public or private, as the Administrator deems advisable to assist in the 
Administrator's determination of compliance.
    4-407. Each contracting agency shall cooperate with the 
Administrator and provide such information and assistance as the 
Administrator may require in the performance of the Administrator's 
functions under this order.
    4-408. Upon request and to the extent practicable, the Administrator 
shall provide technical advice and assistance to Federal agencies in 
order to assist in full compliance with this order.
    Sec. 5. General Provisions. 5-501. The requirements of this order 
shall be implemented and incorporated in acquisition regulations, 
including the Federal Acquisition Regulations (FAR), within 90 days 
after the effective date of this order.
    5-502. This order is not intended, and should not be construed, to 
create any right or benefit, substantive or procedural, enforceable at 
law by a party against the United States, its agencies, it officers, or 
its employees. This order is not intended, however, to preclude judicial 
review of final agency decisions in accordance with the Administrative 
Procedure Act, 5 U.S.C. 701 et seq.
    5-503. This order shall be effective immediately and shall continue 
to be in effect until revoked.
                                                     William J. Clinton.

          Streamlining Procurement Through Electronic Commerce

    Memorandum of President of the United States, Oct. 28, 1993, 58 F.R. 
58095, provided:
    Memorandum for the Heads of Executive Departments and Agencies [and] 
the President's Management Council
    The Federal Government spends $200 billion annually buying goods and 
services. Unfortunately, the red tape and burdensome paperwork of the 
current procurement system increases costs, produces unnecessary delays, 
and reduces Federal work force productivity. Moving to an electronic 
commerce system to simplify and streamline the purchasing process will 
promote customer service and cost-effectiveness. The electronic exchange 
of acquisition information between the private sector and the Federal 
Government also will increase competition by improving access to Federal 
contracting opportunities for the more than 300,000 vendors currently 
doing business with the Government, particularly small businesses, as 
well as many other vendors who find access to bidding opportunities 
difficult under the current system. For these reasons, I am committed to 
fundamentally altering and improving the way the Federal Government buys 
goods and services by ensuring that electronic commerce is implemented 
for appropriate Federal purchases as quickly as possible.
    1. OBJECTIVES.
    The objectives of this electronic commerce initiative are to:
    (a) exchange procurement information--such as solicitations, offers, 
contracts, purchase orders, invoices, payments, and other contractual 
documents--electronically between the private sector and the Federal 
Government to the maximum extent practical;
    (b) provide businesses, including small, small disadvantaged, and 
women-owned businesses, with greater access to Federal procurement 
opportunities;
    (c) ensure that potential suppliers are provided simplified access 
to the Federal Government's electronic commerce system;
    (d) employ nationally and internationally recognized data formats 
that serve to broaden and ease the electronic interchange of data; and
    (e) use agency and industry systems and networks to enable the 
Government and potential suppliers to exchange information and access 
Federal procurement data.
    2. IMPLEMENTATION.
    The President's Management Council, in coordination with the Office 
of Federal Procurement Policy of the Office of Management and Budget, 
and in consultation with appropriate Federal agencies with applicable 
technical and functional expertise, as necessary, shall provide overall 
leadership, management oversight, and policy direction to implement 
electronic commerce in the executive branch through the following 
actions:
    (a) by March 1994, define the architecture for the Government-wide 
electronic commerce acquisition system and identify executive 
departments or agencies responsible for developing, implementing, 
operating, and maintaining the Federal electronic system;
    (b) by September 1994, establish an initial electronic commerce 
capability to enable the Federal Government and private vendors to 
electronically exchange standardized requests for quotations, quotes, 
purchase orders, and notice of awards and begin Government-wide 
implementation;
    (c) by July 1995, implement a full scale Federal electronic commerce 
system that expands initial capabilities to include electronic payments, 
document interchange, and supporting databases; and
    (d) by January 1997, complete Government-wide implementation of 
electronic commerce for appropriate Federal purchases, to the maximum 
extent possible.
    This implementation schedule should be accelerated where 
practicable.
    The head of each executive department or agency shall:
    (a) ensure that budgetary resources are available, within approved 
budget levels, for electronic commerce implementation in each respective 
department or agency;
    (b) assist the President's Management Council in implementing the 
electronic commerce system as quickly as possible in accordance with the 
schedules established herein; and
    (c) designate one or more senior level employees to assist the 
President's Management Council and serve as a point of contact for the 
development and implementation of the Federal electronic commerce system 
within each respective department or agency.
    3. NO PRIVATE RIGHTS CREATED.
    This directive is for the internal management of the executive 
branch and does not create any right or benefit, substantive or 
procedural, enforceable by a party against the United States, its 
agencies or instrumentalities, its officers or employees, or any other 
person.
    The Director of the Office of Management and Budget is authorized 
and directed to publish this memorandum in the Federal Register.
                                                     William J. Clinton.
