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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle B--Amendments to General Contracting Authorities, Procedures, and Limitations

P. L. 114-

House Conference Report. 114-270

Section 1908(e)(2) of title 41, United States Code, is amended—

(1) in the matter preceding subparagraph (A), by striking “on the day before the adjustment” and inserting “as calculated under paragraph (1)”;

(2) by striking “and” at the end of subparagraph (C); and

(3) by striking subparagraph (D) and inserting the following new subparagraphs:

“(D) not less than $1,000,000, but less than $10,000,000, to the nearest $500,000;

“(E) not less than $10,000,000, but less than $100,000,000, to the nearest $5,000,000;

“(F) not less than $100,000,000, but less than $1,000,000,000, to the nearest $50,000,000; and

“(G) $1,000,000,000 or more, to the nearest $500,000,000.”.

The Senate amendment contained no similar provision.

The Senate recedes.

House Report 114-201 to accompany H. R. 1735 as it was reported out of the House Armed Services Committee.

Section 855--Revision of Method of Rounding When Making Inflation Adjustment of Acquisition-Related Dollar Thresholds

This section would amend section 1908(e)(2) of title 41, United States Code, to change the rounding method that is used when scheduled adjustments are made to certain acquisition- related dollar thresholds, such as the simplified acquisition threshold. Specifically, this section would apply the rounding to the dollar threshold calculated after the adjustment is made based on the Consumer Price Index (CPI) for all-urban consumers. The current method rounds the value of the threshold on the day before the adjustment is calculated and then applies the adjustment based on CPI. Further, this section would provide additional guidance for rounding increments for acquisition-related thresholds that are $10.0 million or more up to more than $1.00 billion.

The committee notes that section 1908 of title 41 provides for an inflation adjustment every 5 years of acquisition- related dollar thresholds that are specified in law as a factor in defining the scope of the applicability of the policy, procedure, requirement, or restriction to the procurement of property or services by an executive agency, as determined by the Federal Acquisition Regulatory Council. However, the committee is concerned that the current rounding procedures can, in some circumstances, lead to an inconsistent and inappropriate level of rounding.