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EXISTING LAW

SEC. 7. (b) The power of the agency head to make the determinations on decisions specified in paragraphs (12), (13), (14), (15), and (16) of section 2 (c) and in section 5(a) shall not be delegable and the power to make the determinations or decisions specified in paragraph (11) of section (2) shall be delegable only to a chief officer responsible for procurement and only with respect to contracts which will not require the expenditure of more than $25,000.

THE BILL

SEC. 2. (e) It is the declared policy of the Congress that all procurement shall be by advertised bidding; and none of the exceptions in section 2(c) of this Act shall be used by any agency head or person herein authorized to contract for supplies and services unless the facts and the circumstances in justification thereof are clear and convincing.

SEC. 7. (b) The power of the agency head to make the determinations on decisions specified in paragraphs (12), (13), (14), (15), and (16) of section 2 (c) and in section 5(a) shall not be delegable, and the power to make the determinations or decisions specified in paragraph (11) of section (2) shall be delegable only to a chief officer responsible for procurement and only with respect to contracts which will not require the expenditure of more than $25,000.

SEC. 7. (e) Not later than February 15 and August 15 of each calendar year following the date of enactment of this amendatory Act, the Department of Defense shall report to the Congress

(1) all contracts of $10,000 and over showing the dollar value and the number thereof separated as between those which were formally advertised and those which were negotiated showing as to the latter the number and dollar value of such contracts negotiated under each of the several negotiation authorities provided herein; and

(2) the total number and dollar value of all contracts under $10,000 separated as to those which were advertised and those which were negotiated.

said report to cover the period January 1 through June 30 or July 1 through December 31, as appropriate, next preceding the date of the filing of said

Act of August 9, 1955 (69 Stat. 547) report.

EXISTING LAW

Armed

SEC. 15. Section 3 of the Services Procurement Act of 1947 is amended by adding at the end thereof the following new paragraph:

(c) All bids or invitations for bids shall contain in their specifications all necessary language and material required and shall be so descriptive both in its language and attachments thereto in order to permit full and free competition. Any bid or invitation to bid which shall not carry the necessary descriptive language and attachments thereto, or if such attachments are not available or accessible to all competent, reliable bidders, such bid or invitation to bid shall be invalid and any award or awards made to any bidder in such case shall be invalidated and rejected.

Act of February 19, 1948 (62 Stat. 21)

SEC. 13. This Act shall become effective ninety days after the date of enactment.

THE BILL

SEC. 15 of the Act of August 9, 1955 (69 Stat. 547), is hereby repealed.

SEC. 13. The provisions of this amendatory Act shall become effective ninety days after the date of enactment.

Mr. RIVERS. Could I ask a question there?

Didn't we, when we passed the Armed Forces Procurement Act, write in the act 17 exceptions?

Mr. VINSON. That is right.

Mr. BECKER. That is stated in here.

Mr. VINSON. Now we are going to read

Mr. KILDAY. I am still not clear.

Therefore, since 1957, we have been operating under the procurement regulations, which, with these five exceptions, are the same as the text of the act. Did they then write these regulations into subsection 1 ?

Mr. VINSON. That is right.

Mr. KILDAY. They lacked the authority, so they have been observing these supposedly by regulation?

Mr. VINSON. That is right.

Now, here are the regulations. Put these regulations in.
Now, you get these regulations and put that in the record.
(The material referred to follows:)

(Revised 30 June 1959)

Part 2-Circumstances Permitting Negotiation

3-200 Scope of Part. Subject to the limitations prescribed in Part 1 of this Section III, and pursuant to the authority of 10 U.S.C. 2304 (a), procurement may be effected by negotiation under any one of the exceptions ((1) through (17) of 10 U.S.C. 2304 (a)) set forth in this Part 2.

3-201 National Emergency.

3-2011 Authority. Pursuant to 10 U.S.C. 2304 (a) (1), purchases and contracts may be negotiated if—

"it is determined that such action is necessary in the public interest during a national emergency declared by Congress or the President." 3-201.2 Application.

(a) The authority of this paragraph 3-201 shall be used only to the extent determined by the Assistant Secretary of Defense (Supply and Logistics) to be necessary in the public interest, and then only in accordance with Departmental procedures consistent with this paragraph 3–201.

(b) For the duration of the national emergency declared pursuant to Presidential Proclamation 2914, dated December 16, 1950, the Assistant Secretary of Defense (Supply and Logistics) has determined that only the following procurements may be made pursuant to the authority of 10 U.S.C. 2304 (a)(1):

(i) procurements made in keeping with (A) labor surplus set-aside
programs, including, where no other negotiating authority is ap-
propriate, the placement of contracts for any part of the total
requirements set-aside which are not filled by awards made in
accordance with the provisions of the Notice of Labor Surplus
Set-Aside (see ASPR 1-804.2(c)), or (B) disaster area programs;
(ii) procurements made in keeping with the small business programs
(A) after unilateral determinations for set-asides, or (B) to place
any part of the total requirements set-aside which are not filled
by awards to small business concerns, where no other negotiating
authority is appropriate (see ASPR 1-706.7); and
(iii) procurements of property or services for experimental, develop-
mental, or research work, or for making or furnishing property
for experiment, test, development, or research involving more
than $2,500 but not more than $100,000 from contractors other than
educational institutions.

(c) Except as authorized in (b) above, procurements may be negotiated only when authorized by 10 U.S.C. 2304 (a) (2) through 10 U.S.C. 2304 (a) (17) (ASPR 3-202 through 3-217), 10 U.S.C. 2304 (c) (ASPR 3-218), and ASPR 3-219; determinations and findings shall be made in accordance with 10 U.S.C. 2310 and 10 U.S.C. 2311 (Part 3 of this Section III); and the appropriate authority shall be cited in each contract.

(Revised 3 November 1958)

3-2013 Limitation. The authority of this paragraph 3-201 shall not be used when negotiation is authorized by the provisions of ASPR 3-206.

3-202 Public Exigency.

3-202.1 Authority. Pursuant to the authority of 10 U.S.C. 2304(a)(2), purchases and contracts may be negotiated if→

"the public exigency will not permit the delay incident to advertising." 3-2022 Application. In order for the authority of this paragraph 3–202 to be used, the need must be compelling and of unusual urgency, as when the Government would be seriously injured, financially or otherwise, if the supplies or services were not furnished by a certain date, and when they could not be procured by that date by means of formal advertising. The following are illustrative of circumstances with respect to which this authority may be used: (i) supplies or services needed at once because of a fire, flood, explosion, or other disaster;

(ii) essential equipment for or repair to a ship when such equipment or repair is needed at once for compliance with the orders of the ship;

(iii) essential equipment for or repair to aircraft grounded or about to be grounded, when such equipment or repair is needed at once for the performance of the operational mission of such aircraft. 3-3023 Limitation. Every contract negotiated under the authority of this paragraph 3–202 shall be accompanied by a signed statement of the contracting officer justfying its use, and a copy of such statement shall be sent to the General Accounting Office with a copy of the contract negotiated and executed hereunder. The authority of this paragraph 3-202 shall not be used when negotiation is authorized by the provisions of ASPR 3-203 or 3-206. 3-203 Purchases Not More Than $2,500.

3-203.1 Authority. Pursuant to 10 U.S.C. 2304 (a) (3), purchases and contracts may be negotiated if

"the aggregate amount involved is not more than $2,500."

3-2032 Application. Purchases or contracts aggregating not more than $2,500 shall be made in accordance with Part 6 of this Section.

3-203.3 Limitation. The authority of this paragraph 3-203 shall not be used when negotiations is authorized by the provisions of ASPR 3–206.

3-204 Personal or Professional Services.

3-2041 Authority. Pursuant to 10 U.S.C. 2304(a) (4), purchases and contracts may be negotiated if

"for personal or professional services."

(Revised 1 October 1959)

3-204.2 Application. The authority of this paragraph 3-204 shall be used only when all of the following conditions have been satisfied:

(i) if personal services, they are required to be performed by an individual contractor in person (not by a firm), or if professional services, they may be performed either by an individual contractor in person or a firm or organization;

(ii) the services (A) are of a professional nature, or (B) are to be performed under Government supervision and paid for on a time basis; and

(iii) procurement of the services is authorized by law, and is effected in accordance with the requirements of any such law and in accordance with Departmental procedures.

8-204.3 Limitation. The authority of this paragraph 3-204, and the above conditions imposed upon its use, shall not apply to the procurement by negotiation of any type of services authorized under any other provision of this Section III

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3-205.1 Authority. Pursuant to the authority of 10 U.S.C. 2304(a)(5), purchases and contracts may be negotiated if-

"for any service to be rendered by any university, college, or other educational institution."

3-205.2 Application. The following are illustrative of circumstances with respect to which the authority of this paragraph 3-205 may be used: (i) educational or vocational training services to be rendered by any university, college, or other educational institution in con-nection with the training and education of personnel, and for necessary material, services, and supplies furnished by any suchinstitution in connection therewith;

(ii) experimental, developmental, or research work (including services, tests, and reports necessary or incidental thereto) to be conducted by any university, college, or other educational institution, and reports furnished in connection therewith;

(iii) analyses, studies, or reports (statistical or otherwise) to be conducted by any university, college, or other educational institution. 3-205.3 Limitation. The authority of this paragraph 3-205 shall not be used when negotiation is authorized by the provisions of ASPR 3-203 or 3-206.

1 3-206 Purchases Outside the United States.

3-206.1 Authority. Pursuant to 10 U.S.C. 2304(a)(6), purchases and contracts may be negotiated if

"for property or services to be procured and used outside the United States, and its Territories, possessions and Puerto Rico."

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