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

Subtitle F—Industrial Base Matters

P. L. 114-

House Conference Report. 114-270

(a) Exception from certified cost and pricing data requirements.—The requirements under section 2306a(a) of title 10, United States Code, shall not apply to a contract, subcontract, or modification of a contract or subcontract valued at less than $7,500,000 awarded to a small business or nontraditional defense contractor pursuant to—

(1) a technical, merit-based selection procedure, such as a broad agency announcement, or

(2) the Small Business Innovation Research Program,
unless the head of the agency determines that submission of cost and pricing data should be required based on past performance of the specific small business or nontraditional defense contractor, or based on analysis of other information specific to the award.

(b) Exception from records examination requirement.—The requirements under subsection (b) of section 2313 of title 10, United States Code, shall not apply to a contract valued at less than $7,500,000 awarded to a small business or nontraditional defense contractor pursuant to—

(1) a technical, merit-based selection procedure, such as a broad agency announcement, or

(2) the Small Business Innovation Research Program,
unless the head of the agency determines that auditing of records should be required based on past performance of the specific small business or nontraditional defense contractor, or based on analysis of other information specific to the award.

(c) Sunset.—The exceptions under subsections (a) and (b) shall terminate on October 1, 2020.

(d) Definitions.—In this section:

(1) SMALL BUSINESS.—The term “small business” has the meaning given the term “small business concern” under section 3 of the Small Business Act (15 U.S.C. 632).

(2) NONTRADITIONAL DEFENSE CONTRACTOR.—The term “nontraditional defense contractor” has the meaning given that term in section 2302(9) of title 10, United States Code.

(e) Small Business Innovation Research Program administrative fee extension.—Section 9(mm)(1) of the Small Business Act (15 U.S.C. 638(mm)(1)) is amended by striking “, for the 3 fiscal years beginning after the date of enactment of this subsection,” and inserting “and until September 30, 2017,”.

The House bill contained no similar provision.

The House recedes with a technical amendment.

Senate Report 114-49 to accompany S. 1376 as it was reported out of the Senate Armed Services Committee.

Pilot program for streamlining awards for innovative technology projects (sec. 831)

The committee recommends a provision that would establish a pilot program to provide an exception from the requirements under sections 2306a(1) and 2313 of title 10, United States Code, for contracts or subcontracts valued at less than $7.5 million that are awarded based on a technical merit based selection procedure. Currently, only contract awards based on price competition are exempted from government unique auditing and certified cost and pricing data requirements. Research and development contract awards such those conducted under a broad agency announcement or the Small Business Innovation Research Program that are based on technical merit based selection procedures are often delayed or competition is limited due to the application of these requirements. This provision would test whether treating a technical based merit competition in the same way as a price competition will lead to better innovative solutions and expanded competition at lower contract award levels. The authority would terminate on October 1, 2020.