TITLE VII--HEALTH CARE
PROVISIONS
Subtitle B--TRICARE
Program
SEC. 722. BEST VALUE CONTRACTING.
- (a) AUTHORITY- Chapter 55 of title 10, United
States Code, is amended by inserting after section 1073
the following:
`Sec. 1073a. Contracts for health care: best value
contracting
- `(a) AUTHORITY- Under regulations prescribed by
the administering Secretaries, health care contracts shall
be awarded in the administration of this chapter to the
offeror or offerors that will provide the best value to
the United States to the maximum extent consistent with
furnishing high-quality health care in a manner that
protects the fiscal and other interests of the United
States.
- `(b) FACTORS CONSIDERED- In the determination of
best value under subsection (a)--
- `(1) consideration shall be given to the factors
specified in the regulations; and
- `(2) greater weight shall be accorded to
technical and performance-related factors than to cost
and price-related factors.
- `(c) APPLICABILITY- The authority under the
regulations prescribed under subsection (a) shall apply to
any contract in excess of $5,000,000.'.
- (b) CLERICAL AMENDMENT- The table of sections at
the beginning of such chapter is amended by inserting
after the item relating to section 1073 the following:
TITLE
VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND
RELATED MATTERS
SEC. 802. STREAMLINED APPLICABILITY OF COST
ACCOUNTING STANDARDS.
(a) APPLICABILITY- Paragraph (2)(B) of section 26(f)
of the Office of Federal Procurement Policy Act (41 U.S.C.
422(f)(2)(B)) is amended by adding at the end the following
new clauses:
- `(iii) Firm, fixed-price contracts or subcontracts
awarded on the basis of adequate price competition without
submission of certified cost or pricing data.
- `(iv) A contract or subcontract with a value of
less than $7,500,000 if, at the time the contract or
subcontract is entered into, the segment of the contractor
or subcontractor that will perform the work has not been
awarded at least one contract or subcontract with a value
of more than $7,500,000 that is covered by the cost
accounting standards.'.
(b) WAIVER- Section 26(f) of that Act is further
amended by adding at the end the following:
`(5)(A) The head of an executive agency may waive the
applicability of the cost accounting standards for a
contract or subcontract with a value less than $15,000,000
if that official determines in writing that the segment of
the contractor or subcontractor that will perform the work--
- `(i) is primarily engaged in the sale of
commercial items; and
- `(ii) would not otherwise be subject to the cost
accounting standards under this section, as in effect on
or after the effective date of this paragraph.
`(B) The head of an executive agency may also waive
the applicability of the cost accounting standards for a
contract or subcontract under exceptional circumstances when
necessary to meet the needs of the agency. A determination
to waive the applicability of the cost accounting standards
under this subparagraph shall be set forth in writing and
shall include a statement of the circumstances justifying
the waiver.
`(C) The head of an executive agency may not delegate
the authority under subparagraph (A) or (B) to any official
in the executive agency below the senior policymaking level
in the executive agency.
`(D) The Federal Acquisition Regulation shall include
the following:
- `(i) Criteria for selecting an official to be
delegated authority to grant waivers under subparagraph
(A) or (B).
- `(ii) The specific circumstances under which such
a waiver may be granted.
`(E) The head of each executive agency shall report
the waivers granted under subparagraphs (A) and (B) for that
agency to the Board on an annual basis.'.
(c) REGULATION ON TYPES OF CAS COVERAGE- (1) The
Administrator for Federal Procurement Policy shall revise
the rules and procedures prescribed pursuant to section
26(f) of the Office of Federal Procurement Policy Act (41
U.S.C. 422(f)) to the extent necessary to increase the
thresholds established in section 9903.201-2 of title 48 of
the Code of Federal Regulations from $25,000,000 to
$50,000,000.
(2) Paragraph (1) requires only a change of the
statement of a threshold condition in the regulation
referred to by section number in that paragraph, and shall
not be construed as--
- (A) a ratification or expression of approval of--
- (i) any aspect of the regulation; or
- (ii) the manner in which section 26 of the
Office of Federal Procurement Policy Act is administered
through the regulation; or
- (B) a requirement to apply the regulation.
(d) IMPLEMENTATION- The Administrator for Federal
Procurement Policy shall ensure that this section and the
amendments made by this section are implemented in a manner
that ensures that the Federal Government can recover costs,
as appropriate, in a case in which noncompliance with cost
accounting standards, or a change in the cost accounting
system of a contractor segment or subcontractor segment that
is not determined to be desirable by the Federal Government,
results in a shift of costs from contracts that are not
covered by the cost accounting standards to contracts that
are covered by the cost accounting standards.
(e) IMPLEMENTATION OF REQUIREMENTS FOR REVISION OF
REGULATIONS- (1) Final regulations required by subsection
(c) shall be issued not later than 180 days after the date
of the enactment of this Act.
(2) Subsection (c) shall cease to be effective one
year after the date on which final regulations issued in
accordance with that subsection take effect.
(f) STUDY OF TYPES OF CAS COVERAGE- The Administrator
for Federal Procurement Policy shall review the various
categories of coverage of contracts for applying cost
accounting standards and, not later than the date on which
the President submits to Congress the budget for fiscal year
2001 under section 1105(a) of title 31, United States Code,
submit to Congress a report on the results of the review.
The report shall include an analysis of the matters reviewed
and any recommendations that the Administrator considers
appropriate regarding such matters.
(g) INAPPLICABILITY OF STANDARDS TO CERTAIN
CONTRACTS- The cost accounting standards issued pursuant to
section 26(f) of the Office of Federal Procurement Policy
Act (41 U.S.C. 422(f)), as amended by this section, shall
not apply during fiscal year 2000 with respect to a contract
entered into under the authority provided in chapter 89 of
title 5, United States Code (relating to health benefits for
Federal employees).
(h) CONSTRUCTION REGARDING CERTAIN NOT-FOR-PROFIT
ENTITIES- The amendments made by subsections (a) and (b)
shall not be construed as modifying or superseding, nor as
intended to impair or restrict, the applicability of the
cost accounting standards described in section 26(f) of the
Office of Federal Procurement Policy Act (41 U.S.C. 422(f))
to--
- (1) any educational institution or federally
funded research and development center that is associated
with an educational institution in accordance with Office
of Management and Budget Circular A-21, as in effect on
January 1, 1999; or
- (2) any contract with a nonprofit entity that
provides research and development and related products or
services to the Department of Defense.
(i) EFFECTIVE DATE- The amendments made by
subsections (a) and (b) shall take effect 180 days after the
date of enactment of this Act, and shall apply with respect
to--
- (1) contracts that are entered into on or after
such effective date; and
- (2) determinations made on or after such effective
date regarding whether a segment of a contractor or
subcontractor is subject to the cost accounting standards
under section 26(f) of the Office of Federal Procurement
Policy Act (41 U.S.C. 422(f)), regardless of whether the
contracts on which such determinations are made were
entered into before, on, or after such date.
SEC. 804. GUIDANCE ON USE OF TASK ORDER AND DELIVERY
ORDER CONTRACTS.
(a) GUIDANCE IN THE FEDERAL ACQUISITION REGULATION-
Not later than 180 days after the date of the enactment of
this Act, the Federal Acquisition Regulation issued in
accordance with sections 6 and 25 of the Office of Federal
Procurement Policy Act (41 U.S.C. 405 and 421) shall be
revised to provide guidance to agencies on the appropriate
use of task order and delivery order contracts in accordance
with sections 2304a through 2304d of title 10, United States
Code, and sections 303H through 303K of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 253h
through 253k).
(b) CONTENT OF GUIDANCE- The regulations issued
pursuant to subsection (a) shall, at a minimum, provide the
following:
- (1) Specific guidance on the appropriate use of
governmentwide and other multiagency contracts entered
into in accordance with the provisions of law referred to
in that subsection.
- (2) Specific guidance on steps that agencies
should take in entering into and administering multiple
award task order and delivery order contracts to ensure
compliance with--
- (A) the requirement in section 5122 of the
Clinger-Cohen Act (40 U.S.C. 1422) for capital planning
and investment control in purchases of information
technology products and services;
- (B) the requirement in section 2304c(b) of title
10, United States Code, and section 303J(b) of the
Federal Property and Administrative Services Act of 1949
(41 U.S.C. 253j(b)) to ensure that all contractors are
afforded a fair opportunity to be considered for the
award of task orders and delivery orders; and
- (C) the requirement in section 2304c(c) of title
10, United States Code, and section 303J(c) of the
Federal Property and Administrative Services Act of 1949
(41 U.S.C. 253j(c)) for a statement of work in each task
order or delivery order issued that clearly specifies
all tasks to be performed or property to be delivery
under the order.
(c) GSA FEDERAL SUPPLY SCHEDULES PROGRAM- The
Administrator for Federal Procurement Policy shall consult
with the Administrator of General Services to assess the
effectiveness of the multiple awards schedule program of the
General Services Administration referred to in section
309(b)(3) of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 259(b)(3)) that is
administered as the Federal Supply Schedules program. The
assessment shall include examination of the following:
- (1) The administration of the program by the
Administrator of General Services.
- (2) The ordering and program practices followed by
Federal customer agencies in using schedules established
under the program.
(d) GAO REPORT- Not later than one year after the
date on which the regulations required by subsection (a) are
published in the Federal Register, the Comptroller General
shall submit to Congress an evaluation of--
- (1) executive agency compliance with the
regulations; and
- (2) conformance of the regulations with existing
law, together with any recommendations that the
Comptroller General considers appropriate.
