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

Subtitle F--Provisions Relating to Commercial Items

P. L. 114-

House Conference Report. 114-840

(1) the head of an agency may not enter into a contract in excess of $10,000,000 for facilities-related services, knowledge-based services (except engineering services), construction services, medical services, or transportation services that are not commercial services unless the service acquisition executive of the military department concerned, the head of the Defense Agency concerned, the commander of the combatant command concerned, or the Under Secretary of Defense for Acquisition, Technology, and Logistics (as applicable) determines in writing that no commercial services are suitable to meet the agency’s needs as provided in section 2377(c)(2) of title 10, United States Code; and

(2) the head of an agency may not enter into a contract in an amount above the simplified acquisition threshold and below $10,000,000 for facilities-related services, knowledge-based services (except engineering services), construction services, medical services, or transportation services that are not commercial services unless the contracting officer determines in writing that no commercial services are suitable to meet the agency’s needs as provided in section 2377(c)(2) of such title.

The Senate bill contained a provision (sec. 864) that would require the Secretary of Defense to issue guidance pursuant to section 855 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92). This provision would ensure that no head of an agency would enter into a contract in excess of the simplified acquisition threshold for specified services that are not commercial services unless the head of the agency determines in writing that no commercial services are suitable to meet the agency’s needs as provided in section 2377(c)(2) of title 10, United States Code.

The House amendment contained no similar provision.

The House recedes with an amendment that would require written determination that market research has been conducted prior to awarding a contract for facilities-related services, knowledge-based services (except engineering services), construction services, medical services, or transportation services that are not commercial services. For contracts over $10 million, the service acquisition executive, the head of a defense agency, the combatant commander, or the Under Secretary of Defense for Acquisition, Technology, and Logistics shall provide the written determination. For contracts valued between the simplified acquisition threshold and $10 million, the contracting officer shall provide the written determination. The conferees direct the contracting officer to retain a copy of each written determination required by this provision in the relevant contract file.