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tion Regulation unless the purchase is approved in advance by the Senior Acquisition Executive responsible for purchasing by the ordering agency or unit; and

(4) prohibit any payment to the agency filling a purchase order of any fee that exceeds the actual cost or, if the actual cost is not known, the estimated cost of entering into and administering the contract or other agreement under which the order is filled.

(c) MONITORING SYSTEM REQUIRED.-The Secretary of Defense shall ensure that, not later than one year after the date of the enactment of this Act [Nov. 30, 1993], systems of the Department of Defense for collecting and evaluating procurement data are capable of collecting and evaluating appropriate data on procurements conducted under the regulations prescribed pursuant to subsection (a). (d) TERMINATION.-This section shall cease to be effective one year after the date on which final regulations prescribed pursuant to subsection (a) take effect.

SEC. 845. [10 U.S.C. 2371 note] AUTHORITY OF THE ADVANCED RESEARCH PROJECTS AGENCY TO CARRY OUT CERTAIN PROTOTYPE PROJECTS.

(a) AUTHORITY.-The Director of the Advanced Research Projects Agency may, under the authority of section 2371 of title 10, United States Code, carry out prototype projects that are directly relevant to weapons or weapon systems proposed to be acquired or developed by the Department of Defense.

(b) EXERCISE OF AUTHORITY.-(1) Subsections (c)(2) and (c)(3) of such section 2371, as redesignated by section 827(b)(1)(B), shall not apply to projects carried out under subsection (a).

(2) The Director shall, to the maximum extent practicable, use competitive procedures when entering into agreements to carry out projects under subsection (a).

(c) PERIOD OF AUTHORITY.-The authority of the Director to carry out projects under subsection (a) shall terminate 3 years after the date of the enactment of this Act [Nov. 30, 1993].

SEC. 847. [107 Stat. 1723] CONTRACT BUNDLING.

(a) STUDY REQUIRED.-The Comptroller General shall conduct a study regarding the impact of contract bundling on the participation of small business concerns (including small business concerns owned and controlled by socially and economically disadvantaged individuals) in procurement by the Department of Defense.

(b) PURPOSES OF STUDY.-In addition to such other matters as the Comptroller General considers appropriate, the study required by subsection (a) shall—

(1) catalog the benefits and adverse effects of contract bundling on Department of Defense contracting activities;

(2) catalog the benefits and adverse effects of contract bundling on small business concerns seeking to sell goods or services to the Department of Defense;

(3) catalog and assess the adequacy of the policy guidance applicable to procurement personnel of the Department of Defense regarding the bundling of contract requirements;

(4) review and analyze the data compiled pursuant to subsection (c) regarding the extent to which procuring activities of the Department of Defense have been bundling their requirements for the procurement of goods and services (including construction);

(5) review and assess the adequacy of the statements submitted by procuring activities of the Department of Defense pursuant to section 15(a) of the Small Business Act (15 U.S.C. 644(a)) regarding bundling of contract requirements; and

(6) assess whether small business specialists of the Department of Defense or procurement center representatives of the Small Business Administration have adequate policy guidance and effective authority to make an independent assessment regarding proposed bundling of contract requirements. (c) DATA ON CONTRACT BUNDLING.

(1) DATA TO BE COMPILED.-For purposes of conducting the study required by subsection (a), the Secretary of Defense shall compile and furnish to the Comptroller General data regarding contracts awarded during fiscal years 1988, 1992, and 1993 that reflect the bundling of the types of contract requirements that were previously solicited and awarded as separate contract actions. With respect to such bundled contracts, the Secretary shall seek to furnish data regarding

(A) the number and dollar value of such contract awards and the types of goods or services (including construction) that were procured;

(B) the number and estimated dollar value of requirements previously procured through separate contract actions which were included in each of the contract actions identified under subparagraph (A);

(C) any justifications (including estimates of cost savings) for the bundled contract actions identified under subparagraph (A); and

(D) the extent of participation by small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals under subcontracting plans pursuant to section 8(d) of the Small Business Act (15 U.S.C. 637(d)).

(2) SUBMISSION TO THE COMPTROLLER GENERAL.-The Secretary of Defense shall furnish the data described in paragraph (1) to the Comptroller General not later than February 1, 1994. (d) REPORT.-Not later than April 1, 1994, the Comptroller General shall submit to the Committees on Armed Services and Small Business of the Senate and House of Representatives a report containing the results of the study required by subsection (a). The report shall include recommendations for appropriate changes to statutes, regulations, policy, or practices that would ameliorate any identified adverse effects of contract bundling on the participation of small business concerns in procurements by the Department of Defense.

(e) DEFINITION.-For the purposes of this section, the terms "contract bundling" and "bundling of contract requirements" means the practice of consolidating two or more procurement requirements of the type that were previously solicited and awarded as

separate smaller contracts into a single large contract solicitation likely to be unsuitable for award to a small business concern due

to

(1) the diversity and size of the elements of performance specified;

(2) the aggregate dollar value of the anticipated award; (3) the geographical dispersion of the contract performance sites; or

(4) any combination of the factors described in paragraphs (1), (2), and (3).

SEC. 849. BUY AMERICAN PROVISIONS.

(a) COMPLIANCE WITH BUY AMERICAN ACT.-No funds authorized to be appropriated pursuant to this Act may be expended by an entity of the Department of Defense unless the entity, in expending the funds, complies with the Buy American Act.

(b) PROHIBITION OF CONTRACTS.-[10 U.S.C. 2410f note] If the Secretary of Defense determines that a person has been convicted of intentionally affixing a label bearing a "Made in America" inscription to any product sold in or shipped to the United States that is not made in America, the Secretary shall determine, in accordance with section 2410f of title 10, United States Code, whether the person should be debarred from contracting with the Department of Defense.

(c)2 BUY AMERICAN ACT WAIVER RESCISSIONS.-[41 U.S.C. 10b-2 note] (1) If the Secretary of Defense, after consultation with the United States Trade Representative, determines that a foreign country which is party to an agreement described in paragraph (2) has violated the terms of the agreement by discriminating against certain types of products produced in the United States that are covered by the agreement, the Secretary of Defense shall rescind the Secretary's blanket waiver of the Buy American Act with respect to such types of products produced in that foreign country.

(2) An agreement referred to in paragraph (1) is any reciprocal defense procurement memorandum of understanding between the United States and a foreign country pursuant to which the Secretary of Defense has prospectively waived the Buy American Act for certain products in that country.

(d) DEFINITION.-For purposes of this section, the term "Buy American Act" means title III of the Act entitled "An Act making appropriations for the Treasury and Post Office Departments for the fiscal year ending June 30, 1934, and for other purposes”, approved March 3, 1933 (41 U.S.Ć. 10a et seq.).

DIVISION B-MILITARY CONSTRUCTION AUTHORIZATIONS

"A provision similar to section 849(c) is contained in section 8058 of Public Law 103–335, set forth beginning on page 432.

TITLE XXIX-DEFENSE BASE CLOSURE
AND REALIGNMENT

Subtitle A-Base Closure Community
Assistance

SEC. 2912. [10 U.S.C. 2687 note] PREFERENCE FOR LOCAL AND SMALL BUSINESSES.

(a) PREFERENCE REQUIRED.-In entering into contracts with private entities as part of the closure or realignment of a military installation under a base closure law, the Secretary of Defense shall give preference, to the greatest extent practicable, to qualified businesses located in the vicinity of the installation and to small business concerns and small disadvantaged business concerns. Contracts for which this preference shall be given shall include contracts to carry out activities for the environmental restoration and mitigation at military installations to be closed or realigned. (b) DEFINITIONS.-In this section:

(1) The term "small business concern" means a business concern meeting the requirements of section 3 of the Small Business Act (15 U.S.C. 632).

(2) The term "small disadvantaged business concern" means the business concerns referred to in section 8(d)(1) of such Act (15 U.S.C. 637(d)(1)).

(3) The term "base closure law" includes section 2687 of title 10, United States Code.

DIVISION C-DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS

TITLE XXXI-DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle D-Other Matters

SEC. 3159. [42 U.S.C. 7256] CONTRACT GOAL FOR SMALL DISADVANTAGED BUSINESSES AND CERTAIN INSTITUTIONS OF

HIGHER EDUCATION.

(a) GOAL.-Except as provided in subsection (c), a goal of 5 percent of the amount described in subsection (b) shall be the objective of the Department of Energy in carrying out national security programs of the Department in each of fiscal years 1994 through 2000

for the total combined amount obligated for contracts and subcontracts entered into with

(1) small business concerns, including mass media and advertising firms, owned and controlled by socially and economically disadvantaged individuals (as such term is used in section 8(d) of the Small Business Act (15 U.S.C. 637(d)) and regulations issued under that section), the majority of the earnings of which directly accrue to such individuals;

(2) historically Black colleges and universities, including any nonprofit research institution that was an integral part of such a college or university before November 14, 1986; and

(3) minority institutions (as defined in section 1046(3) of the Higher Education Act of 1965 (20 U.S.C. 1135d-5(3))), which, for the purposes of this section, shall include Hispanicserving institutions (as defined in section 316(b)(1) of such Act (20 U.S.C. 1059c(b)(1))).

(b) AMOUNT. (1) Except as provided in paragraph (2), the requirements of subsection (a) for any fiscal year apply to the combined total of the funds obligated for contracts entered into by the Department of Energy pursuant to competitive procedures for such fiscal year for purposes of carrying out national security programs of the Department.

(2) In computing the combined total of funds under paragraph (1) for a fiscal year, funds obligated for such fiscal year for contracts for naval reactor programs shall not be included.

(c) APPLICABILITY. Subsection (a) does not apply

(1) to the extent to which the Secretary of Energy determines that compelling national security considerations require otherwise; and

(2) if the Secretary notifies the Congress of such a determination and the reasons for the determination.

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