
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: 41USC413]

 
                       TITLE 41--PUBLIC CONTRACTS
 
             CHAPTER 7--OFFICE OF FEDERAL PROCUREMENT POLICY
 
Sec. 413. Tests of innovative procurement methods and procedures

    (a) The Administrator may develop innovative procurement methods and 
procedures to be tested by selected executive agencies. In developing 
any program to test innovative procurement methods and procedures under 
this subsection, the Administrator shall consult with the heads of 
executive agencies to--
        (1) ascertain the need for and specify the objectives of such 
    program;
        (2) develop the guidelines and procedures for carrying out such 
    program and the criteria to be used in measuring the success of such 
    program;
        (3) evaluate the potential costs and benefits which may be 
    derived from the innovative procurement methods and procedures 
    tested under such program;
        (4) select the appropriate executive agencies or components of 
    executive agencies to carry out such program;
        (5) specify the categories and types of products or services to 
    be procured under such program; and
        (6) develop the methods to be used to analyze the results of 
    such program.

A program to test innovative procurement methods and procedures may not 
be carried out unless approved by the heads of the executive agencies 
selected to carry out such program.
    (b) If the Administrator determines that it is necessary to waive 
the application of any provision of law in order to carry out a proposed 
program to test innovative procurement methods and procedures under 
subsection (a) of this section, the Administrator shall transmit notice 
of the proposed program to the Committee on Government Operations of the 
House of Representatives and the Committee on Governmental Affairs of 
the Senate and request that such committees take such action as may be 
necessary to provide that such provision of law does not apply with 
respect to the proposed program. The notification to Congress shall 
include a description of the proposed program (including the scope and 
purpose of the proposed program), the procedures to be followed in 
carrying out the proposed program, the provisions of law affected and 
any provision of law the application of which must be waived in order to 
carry out the proposed program, and the executive agencies involved in 
carrying out the proposed program.

(Pub. L. 93-400, Sec. 15, as added Pub. L. 98-191, Sec. 7, Dec. 1, 1983, 
97 Stat. 1329; amended Pub. L. 104-201, div. A, title X, 
Sec. 1074(f)(2), Sept. 23, 1996, 110 Stat. 2661.)


                            Prior Provisions

    A prior section 15 of Pub. L. 93-400 amended sections 474, 481, and 
487 of Title 40, Public Buildings, Property, and Works.


                               Amendments

    1996--Subsec. (a). Pub. L. 104-201 struck out after first sentence 
``The innovative procurement methods and procedures tested under this 
subsection shall be consistent with the policies set forth in section 
401 of this title.''

                         Change of Name

    Committee on Government Operations of House of Representatives 
treated as referring to Committee on Government Reform and Oversight of 
House of Representatives by section 1(a) of Pub. L. 104-14, set out as a 
note preceding section 21 of Title 2, The Congress. Committee on 
Government Reform and Oversight of House of Representatives changed to 
Committee on Government Reform of House of Representatives by House 
Resolution No. 5, One Hundred Sixth Congress, Jan. 6, 1999.


                   Test Program for Executive Agencies

    Pub. L. 103-355, title V, Sec. 5061, Oct. 13, 1994, 108 Stat. 3352, 
as amended by Pub. L. 104-106, div. D, title XLIII, Sec. 4302(a), Feb. 
10, 1996, 110 Stat. 658; Pub. L. 105-85, div. A, title VIII, 
Sec. 850(f)(1), Nov. 18, 1997, 111 Stat. 1849, provided that:
    ``(a) In General.--The Administrator for Federal Procurement Policy 
(in this section referred to as the `Administrator') may conduct a 
program of tests of alternative and innovative procurement procedures. 
To the extent consistent with this section, such program shall be 
conducted consistent with section 15 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 413). No more than 6 such tests shall 
be conducted under the authority of this subsection, and not more than 1 
such test shall be conducted under such authority in an agency.
    ``(b) Designation of Agencies.--Each test conducted pursuant to 
subsection (a) shall be carried out in not more than 2 specific 
procuring activities in an agency designated by the Administrator. Each 
agency so designated shall select the procuring activities participating 
in the test with the approval of the Administrator and shall designate a 
procurement testing official who shall be responsible for the conduct 
and evaluation of tests within that agency.
    ``(c) Test Requirements and Limitations.--(1) Each test conducted 
under subsection (a)--
        ``(A) shall be developed and structured by the Administrator or 
    by the agency senior procurement executive designated pursuant to 
    section 16(3) of the Office of Federal Procurement Policy Act (41 
    U.S.C. 414(3)) in close coordination with the Administrator; and
        ``(B) shall be limited to specific programs of agencies or 
    specific acquisitions.
    ``(2) The total estimated life-cycle cost to the Federal Government 
for each test conducted under subsection (a) may not exceed 
$100,000,000.
    ``(3)(A) Except as provided in subparagraph (B), each contract 
awarded in conducting the tests under subsection (a) (including the cost 
of options if all options were to be exercised) may not exceed 
$5,000,000.
    ``(B) For one of the tests conducted under subsection (a), the 
amount of each contract awarded in conducting the test (including 
options) may exceed $5,000,000.
    ``(4) The program of tests conducted under subsection (a) shall 
include, either as a test or as part of a test, the use of the 
electronic commerce capability required by section 30 of the Office of 
Federal Procurement Policy Act [41 U.S.C. 426] for procurement actions 
in amounts greater than the simplified acquisition threshold.
    ``(d) Limitation on Total Value of Contracts Under Program.--(1) The 
Administrator shall ensure that the total amount obligated under 
contracts awarded pursuant to the program under this section does not 
exceed $600,000,000. In calculating such amount, the Administrator shall 
not include any contract awarded for the test conducted by the National 
Aeronautics and Space Administration pursuant to section 5062 of this 
Act [42 U.S.C. 2473 note].
    ``(2) The Administrator shall monitor the value of contracts awarded 
pursuant to the program under this section.
    ``(3) No contract may be awarded under the program under this 
section if the award of the contract would result in obligation of more 
than $600,000,000 under contracts awarded pursuant to the program under 
this section.
    ``(e) Procedures Authorized.--Tests conducted under this section may 
include any of the following procedures:
        ``(1) Publication of agency needs before drafting of a 
    solicitation.
        ``(2) Issuance of draft solicitations for comment.
        ``(3) Streamlined solicitations that specify as the evaluation 
    factors the minimum factors necessary, require sources to submit the 
    minimum information necessary, provide abbreviated periods for 
    submission of offers, and specify page limitations for offers.
        ``(4) Limitation of source selection factors to--
            ``(A) cost to the Federal Government;
            ``(B) past experience and performance; and
            ``(C) quality of the content of the offer.
        ``(5) Evaluation of proposals by small teams of highly qualified 
    people over a period not greater than 30 days.
        ``(6) Restriction of competitions to sources determined capable 
    in a precompetition screening process, provided that the screening 
    process affords all interested sources a fair opportunity to be 
    considered.
        ``(7) Restriction of competitions to sources of preevaluated 
    products, provided that the preevaluation process affords all 
    interested sources a fair opportunity to be considered.
        ``(8) Alternative notice and publication requirements.
        ``(9) A process in which--
            ``(A) the competitive process is initiated by publication in 
        the Commerce Business Daily of a notice that--
                ``(i) contains a synopsis of the functional and 
            performance needs of the executive agency conducting the 
            test, and, for purposes of guidance only, other 
            specifications; and
                ``(ii) invites any interested source to submit 
            information or samples showing the suitability of its 
            product for meeting those needs, together with a price 
            quotation, or, if appropriate, showing the source's 
            technical capability, past performance, product 
            supportability, or other qualifications (including, as 
            appropriate, information regarding rates and other cost-
            related factors);
            ``(B) contracting officials develop a request for proposals 
        (including appropriate specifications and evaluation criteria) 
        after reviewing the submissions of interested sources and, if 
        the officials determine necessary, after consultation with those 
        sources; and
            ``(C) a contract is awarded after a streamlined competition 
        that is limited to all sources that timely provided product 
        information in response to the notice or, if appropriate, to 
        those sources determined most capable based on the 
        qualification-based factors included in an invitation to submit 
        information pursuant to subparagraph (A).
    ``(f) Measurable Test Criteria.--The Administrator shall require 
each agency conducting a test pursuant to subsection (a) to establish, 
to the maximum extent practicable, measurable criteria for evaluation of 
the effects of the procedure or technique to be tested.
    ``(g) Test Plan.--At least 270 days before a test may be conducted 
under this section, the Administrator shall--
        ``(1) provide a detailed test plan, including lists of any 
    regulations that are to be waived, and any written determination 
    under subsection (h)(1)(B) to the Committee on Government Operations 
    [now Committee on Government Reform] of the House of Representatives 
    and the Committee on Governmental Affairs of the Senate;
        ``(2) provide a copy of the plan to the appropriate 
    authorization and appropriations committees of the House of 
    Representatives and the Senate; and
        ``(3) publish the plan in the Federal Register and provide an 
    opportunity for public comment.
    ``(h) Waiver of Procurement Regulations.--(1) For purposes of a test 
conducted under subsection (a), the Administrator may waive--
        ``(A) any provision of the Federal Acquisition Regulation that 
    is not required by statute; and
        ``(B) any provision of the Federal Acquisition Regulation that 
    is required by a provision of law described in paragraph (2), the 
    waiver of which the Administrator determines in writing to be 
    necessary to conduct any test of any of the procedures described in 
    subsection (e).
    ``(2) The provisions of law referred to in paragraph (1) are as 
follows:
        ``(A) The following provisions of title 10, United States Code:
            ``(i) Section 2304.
            ``(ii) Section 2305.
            ``(iii) Section 2319.
        ``(B) Subsections (e), (f), and (g) of section 8 of the Small 
    Business Act (15 U.S.C. 637).
        ``(C) The following provisions of the Revised Statutes:
            ``(i) Section 3709 (41 U.S.C. 5).
            ``(ii) Section 3710 (41 U.S.C. 8).
            ``(iii) Section 3735 (41 U.S.C. 13).
        ``(D) The following provisions of the Federal Property and 
    Administrative Services Act of 1949:
            ``(i) Section 303 (41 U.S.C. 253).
            ``(ii) Section 303A (41 U.S.C. 253a).
            ``(iii) Section 303B (41 U.S.C. 253b).
            ``(iv) Section 303C (41 U.S.C. 253c).
            ``(v) Section 310 (41 U.S.C. 260).
        ``(E) The following provisions of the Office of Federal 
    Procurement Policy Act:
            ``(i) Section 4(6) (41 U.S.C. 403(6)).
            ``(ii) Section 18 (41 U.S.C. 416).
    ``(3) If the Administrator determines that the conduct of a test 
requires the waiver of a law not listed in paragraph (2) or requires 
approval of an estimated dollar amount not permitted under subsection 
(c)(4), the Administrator may propose legislation to authorize the 
waiver or grant the approval. Before proposing such legislation, the 
Administrator may provide and publish a test plan as described in 
subsection (g).
    ``(i) Report.--Not later than 6 months after completion of a test 
conducted under subsection (a), the Comptroller General shall submit to 
Congress a report for the test setting forth in detail the results of 
the test, including such recommendations as the Comptroller General 
considers appropriate.
    ``(j) Commencement and Expiration of Authority.--The authority to 
conduct a test under subsection (a) in an agency and to award contracts 
under such a test shall take effect on January 1, 1997, and shall expire 
on January 1, 2001. A contract entered into before such authority 
expires in an agency pursuant to a test shall remain in effect, in 
accordance with the terms of the contract, the notwithstanding of 
expiration the authority to conduct the test under this section.
    ``(k) Rule of Construction.--Nothing in this section shall be 
construed as authorizing the appropriation or obligation of funds for 
the tests conducted pursuant to subsection (a).''
