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greater than the simplified acquisition threshold, the procuring activity has implemented the FACNET functions described in paragraphs (1)(A), (1)(B), (2)(A), (2)(B), and (2)(C) of section 30(b); and

(2) for each such procurement (other than a procurement for which notice is not required under section 18(c) or with respect to which the head of the procuring activity determines that it is not cost effective or practicable), the procuring activity issues notices of solicitations and receives responses to solicitations through a system having those functions.

(d) IMPLEMENTATION OF FULL FACNET CAPABILITY.-An executive agency shall be considered to have implemented a full FACNET capability if (except in the case of procuring activities (or portions thereof) of the executive agency for which the head of the executive agency determines that implementation is not cost effective or practicable)

(1) the executive agency has implemented all of the FACNET functions described in section 30(b); and

(2) more than 75 percent of the eligible contracts in amounts greater than the micro-purchase threshold and not greater than the simplified acquisition threshold entered into by the executive agency during the preceding fiscal year have been made through a system with those functions.

(e) ELIGIBLE CONTRACTS.-For purposes of subsections (b) and (d), a contract is eligible if it is not in any class of contracts determined by the Federal Acquisition Regulatory Council (pursuant to section 9004 of the Federal Acquisition Streamlining Act of 1994 18) to be unsuitable for acquisition through a system with full FACNET capability.

18 Section 9004 of the Federal Acquisition Streamlining Act of 1994 (P.L. 103-355; 108 Stat. 3401; 41 U.S.C. 426a note) provides:

SEC. 9004. GAO DETERMINATION OF ELIGIBLE AGENCY CONTRACTS.

(a) REPORT ON CONTRACTS NOT SUITABLE FOR ACQUISITION THROUGH FULL FACNET CAPABILITY. Not later than 3 years after the date of the enactment of this Act, the Comptroller General shall submit to the Administrator for Federal Procurement Policy and the congressional committees referred to in subsection (d) a report on the classes of contracts in amounts greater than the micro-purchase threshold and not greater than the simplified acquisition threshold that are not suitable for acquisition through a system with full FACNET capability.

(b) FAR COUNCIL DETERMINATIONS.-Not earlier than 3 years after the date of the enactment of this Act, and after consideration of the report of the Comptroller General required by subsection (a), the Federal Acquisition Regulatory Council (established by section 26 of the Office of Federal Procurement Policy Act) may make a determination that a class or classes of contracts in amounts greater than the micro-purchase threshold and not greater than the simplified acquisition threshold are not suitable for acquisition through a system with full FACNET capability. Any such determination shall be submitted to the congressional committees referred to in subsection (d). Each determination under this subsection shall take effect 60 days after the date on which it is submitted to those committees.

(c) APPLICABILITY OF DETERMINATIONS.-Each determination under subsection (b) shall apply for purposes of determining eligible contracts under section 30A(e) of the Office of Federal Procurement Policy Act, as added by section 9001.

(d) COMMITTEES.-The report required by subsection (a), and any determination made under subsection (b), shall be submitted to the Committees on Governmental Affairs, on Armed Services, and on Small Business of the Senate and the Committees on Government Operations, on Armed Services, and on Small Business of the House of Representatives.

(e) DEFINITIONS.-In this section:

(1) The term "simplified acquisition threshold" has the meaning provided by section 4(11) of the Office of Federal Procurement Policy Act, as amended by section 4001.

(2) The term "micro-purchase threshold" has the meaning provided by section 32(g) of the Office of Federal Procurement Policy Act, as added by section 4301.

(3) The term "full FACNET capability" has the meaning described in section 30A(d) of the Office of Federal Procurement Policy Act, as added by section 9001(a).

SEC. 31. [41 U.S.C. 427] SIMPLIFIED ACQUISITION PROCEDURES.

(a) REQUIREMENT.-In order to promote efficiency and economy in contracting and to avoid unnecessary burdens for agencies and contractors, the Federal Acquisition Regulation shall provide for special simplified procedures for contracts for acquisition of property and services that are not greater than the simplified acquisition threshold.

(b) PROHIBITION ON DIVIDING PURCHASES.-A proposed purchase or contract for an amount above the simplified acquisition threshold may not be divided into several purchases or contracts for lesser amounts in order to use the simplified acquisition procedures required by subsection (a).

(c) PROMOTION OF COMPETITION REQUIRED.-In using simplified acquisition procedures, the head of an executive agency shall promote competition to the maximum extent practicable.

(d) CONSIDERATION OF OFFERS TIMELY RECEIVED.-The simplified acquisition procedures contained in the Federal Acquisition Regulation shall include a requirement that a contracting officer consider each responsive offer timely received from an eligible offeror.

(e) SPECIAL RULES FOR USE OF SIMPLIFIED ACQUISITION PROCE

DURES.

(1) EFFECT OF INTERIM FACNET CAPABILITY.-The simplified acquisition procedures provided in the Federal Acquisition Regulation pursuant to this section may not be used by a procuring activity of an agency for contracts in amounts greater than $50,000 and not greater than the simplified acquisition threshold until a certification has been made pursuant to section 30A(a)(1) that the procuring activity has implemented an interim FACNET capability.

(2) EFFECT OF FULL FACNET CAPABILITY.—(A)(i) In the case of a procuring activity described in clause (ii), the simplified acquisition procedures provided in the Federal Acquisition Regulation pursuant to this section may be used by the activity for contracts in amounts greater than $50,000 and not greater than the simplified acquisition threshold.

(ii) Clause (i) applies to any procuring activity

(I) that has not certified, pursuant to section 30A(a)(1), that it has implemented interim FACNET capability; and

(II) that is in an agency that has excluded the procuring activity from the agency's full FACNET certification under section 30A(a)(2) on the basis that implementation of full FACNET capability would not be cost effective or practicable in that activity.

(B) The simplified acquisition procedures provided in the Federal Acquisition Regulation pursuant to this section may not be used by an agency after December 31, 1999, for contracts in amounts greater than $50,000 and not greater than the simplified acquisition threshold until a certification has been made pursuant to section 30A(a)(2) that the agency has implemented a full FACNET capability.

(f) INTERIM REPORTING RULE.-Until October 1, 1999, procuring activities shall continue to report under section 19(d) procure

ment awards with a dollar value of at least $25,000, but less than $100,000, in conformity with the procedures for the reporting of a contract award greater than $25,000 that were in effect on October 1, 1992.

SEC. 32. [41 U.S.C. 428] PROCEDURES APPLICABLE TO PURCHASES BELOW MICRO-PURCHASE THRESHOLD.

(a) REQUIREMENTS. (1) The head of each executive agency shall ensure that procuring activities of that agency, in awarding a contract with a price exceeding the micro-purchase threshold, comply with the requirements of section 8(a) of the Small Business Act (15 U.S.C. 637(a)), section 2323 of title 10, United States Code, and section 7102 of the Federal Acquisition Streamlining Act of

1994.

(2) The authority under part 13.106(a)(1) of the Federal Acquisition Regulation (48 C.F.R. 13.106(a)(1)), as in effect on November 18, 1993, to make purchases without securing competitive quotations does not apply to any purchases with a price exceeding the micro-purchase threshold.

(b) EXCLUSION FOR MICRO-PURCHASES.-A purchase by an executive agency with an anticipated value of the micro-purchase threshold or less is not subject to section 15(j) of the Small Business Act (15 U.S.C. 644(j)) and the Buy American Act (41 U.S.C. 10a-10c).

(c) APPLICABILITY OF CERTAIN PROVISIONS.-For purposes of section 27, an officer or employee of an executive agency, or a member of the Armed Forces of the United States, shall not be considered a procurement official if

(1) the contracting authority of the officer, employee, or member does not exceed $2,500; and

(2) the head of the contracting activity concerned (or a designee of the head of the contracting activity concerned) determines that the duties of the position of that officer, employee, or member are such that is it unlikely that the officer, employee, or member will be required to conduct procurements in a total amount greater than $20,000 in any 12-month period. (d) PURCHASES WITHOUT COMPETITIVE QUOTATIONS.-A purchase not greater than $2,500 may be made without obtaining competitive quotations if the contracting officer determines that the price for the purchase is reasonable.

(e) EQUITABLE DISTRIBUTION.-Purchases not greater than $2,500 shall be distributed equitably among qualified suppliers.

(f) IMPLEMENTATION THROUGH FAR.-This section shall be implemented through the Federal Acquisition Regulation.

(g) MICRO-PURCHASE THRESHOLD DEFINED.-For purposes of this section, the micro-purchase threshold is the amount of $2,500. SEC. 33. [41 U.S.C. 429] LIST OF LAWS INAPPLICABLE TO CONTRACTS NOT GREATER THAN THE SIMPLIFIED ACQUISITION THRESHOLD IN FEDERAL ACQUISITION REGULATION.

(a) LIST OF INAPPLICABLE PROVISIONS OF LAW.-(1) The Federal Acquisition Regulation shall include a list of provisions of law that are inapplicable to contracts or subcontracts in amounts not

greater than the simplified acquisition threshold. 19 A provision of law that is properly included on the list pursuant to paragraph (2) may not be construed as applicable to such contracts or subcontracts (as the case may be) by an executive agency. Nothing in this section shall be construed to render inapplicable to contracts and subcontracts in amounts not greater than the simplified acquisition threshold any provision of law that is not included on such list.

(2) A provision of law described in subsection (b) that is enacted after the date of the enactment of the Federal Acquisition Streamlining Act of 1994 shall be included on the list of inapplicable provisions of law required by paragraph (1), unless the Federal Acquisition Regulatory Council makes a written determination that it would not be in the best interest of the Federal Government to exempt contracts or subcontracts in amounts not greater than the simplified acquisition threshold from the applicability of the provision.

(b) COVERED LAW.-A provision of law referred to in subsection (a)(2) is any provision of law that, as determined by the Federal Acquisition Regulatory Council, sets forth policies, procedures, requirements, or restrictions for the procurement of property or services by the Federal Government, except for a provision of law that

(1) provides for criminal or civil penalties; or

(2) specifically refers to this section and provides that, notwithstanding this section, it shall be applicable to contracts or subcontracts in amounts not greater than the simplified acquisition threshold.

(c) PETITION.-In the event that a provision of law described in subsection (b) is not included on the list of inapplicable provisions of law as required by subsection (a), and no written determination has been made by the Federal Acquisition Regulatory Council pursuant to subsection (a)(2), a person may petition the Administrator for Federal Procurement Policy to take appropriate action. The Administrator shall revise the Federal Acquisition Regulation to include the provision on the list of inapplicable provisions of law unless the Federal Acquisition Regulatory Council makes a deter

19 Sections 4102, 4103, and 4104 of the Federal Acquisition Streamlining Act of 1994 (P.L. 103-355; 108 Stat. 3340) amended various provisions of law to make them inapplicable to contracts or subcontracts in amounts not greater than the simplified acquisition threshold. The language providing for such inapplicability is contained in the following provisions of law:

In title 10, United States Code [set forth beginning on page 3]: Section 2302a(b), section 2306(b), section 2313(f)(2), section 2384(b)(3), section 2393(d), section 2402(c), section 2408(a)4XA), section 2410b(b), and section 2534(g).

Section 302A(b) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 252a(b)) (see page 492).

-Section 303G(c) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253g(c)) (see page 506].

-Section 304(a) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 254(a)) (see page 510].

-Section 304C(f)(2) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 254d(f)(2)) (see page 520].

-Section 7(d) of the Anti-Kickback Act of 1986 (41 U.S.C. 57(d)) (see page 838).

-Section 5 of the Miller Act (40 U.S.C. 270d-1) (see page 808].

-Section 103(c) of the Contract Work Hours and Safety Standards Act (40 U.S.C. 329(c)). -Section 5152(a)(1) of the Drug-Free Workplace Act of 1988 (41 U.S.C. 701(a)(1)) (see page 875).

-Section 6002(c)(3)(B) of the Solid Waste Disposal Act (42 U.S.C. 6962(c)(3)(B)).

mination pursuant to subsection (a)(2) within 60 days after the date on which the petition is received.

SEC. 34. [41 U.S.C. 430] LIST OF LAWS INAPPLICABLE TO PROCUREMENTS OF COMMERCIAL ITEMS IN FEDERAL ACQUISI TION REGULATION.

(a) LIST OF INAPPLICABLE PROVISIONS OF LAW.-(1) The Federal Acquisition Regulation shall include a list of provisions of law that are inapplicable to contracts for the procurement of commercial items. 20 A provision of law that is properly included on the list pursuant to paragraph (2) may not be construed as applicable to purchases of commercial items by an executive agency. Nothing in this section shall be construed to render inapplicable to contracts for the procurement of commercial items any provision of law that is not included on such list.

(2) A provision of law described in subsection (c) that is enacted after the date of the enactment of the Federal Acquisition Streamlining Act of 1994 shall be included on the list of inapplicable provisions of law required by paragraph (1), unless the Federal Acquisition Regulatory Council makes a written determination that it would not be in the best interest of the Federal Government to exempt contracts for the procurement of commercial items from the applicability of the provision.

(b) SUBCONTRACTS.-(1) The Federal Acquisition Regulation shall include a list of provisions of law that are inapplicable to subcontracts under either a contract for the procurement of commercial items or a subcontract for the procurement of commercial items. A provision of law that is properly included on the list pursuant to paragraph (2) may not be construed as applicable to such subcontracts. Nothing in this section shall be construed to render inapplicable to subcontracts under a contract for the procurement

20 Sections 8105, 8204, and 8301 of the Federal Acquisition Streamlining Act of 1994 (P.L. 103-355; 108 Stat. 3392) amended various provisions of law to make them inapplicable to contracts for the procurement of commercial items. The language providing for such inapplicability is contained in the following provisions of law:

-In title 10, United States Code [set forth beginning on page 3]: Section 2306(b), section 2384(b)(2), section 2393(d), section 2397(a)(1), section 2397bf)(2)(B)(iii), section 2397c(e), section 2402(d), section 2408(a)(4)(B), and section 2410b(c).

-Section 843(a)(3) of Public Law 103-160 (10 U.S.C. 2327 note) [see page 356].
-Section 806(b) of Public Law 102-190 (10 U.S.C. 2301 note) (see page 387).

-Section 303G(d) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253g(d)) (see page 506].

-Section 304(a) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 254(a)) (see page 510].

-Section 508(f) of the Federal Water Pollution Control Act (33 U.S.C. 1368).

-Section 108 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 334). -Section 7(d) and section 8 of the Anti-Kickback Act of 1986 (41 U.S.C. 57(d), 58) (see page 838).

Section 26(f)(2)(B) of the Office of Federal Procurement Policy Act (41 U.S.C. 422(f)(2)(B)) (see page 566].

-Section 27(eX1XB) of the Office of Federal Procurement Policy Act (41 U.S.C. 423(eX1XB)) [see page 571].

-Section 5152(a)(1) of the Drug-Free Workplace Act of 1988 (41 U.S.C. 701(a)(1)) (see page 875).

-Section 8301(g) of the Federal Acquisition Streamlining Act of 1994 (42 U.S.C. 7606 note), which provides:

(g) CLEAN AIR ACT.-The Federal Acquisition Regulation may not contain a requirement for a certification by a contractor under a contract for the acquisition of commercial items, or a requirement that such a contract include a contract clause, in order to implement a prohibition or requirement of section 306 of the Clean Air Act (42 U.S.C. 7606) or a prohibition or requirement issued in the implementation of that section, since there is nothing in such section 306 that requires such a certification or contract clause.

-Section 40118(f)(1) of title 49, United States Code.

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