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Title XIV—Services Acquisition Reform

The Services Acquisition Reform Act of 2003 (SARA)

Public Law 108-136

House Conference Report 108-354

SEC. 1441. AUTHORITY TO ENTER INTO CERTAIN TRANSACTIONS FOR DEFENSE AGAINST OR RECOVERY FROM TERRORISM OR NUCLEAR, BIOLOGICAL, CHEMICAL, OR RADIOLOGICAL ATTACK.

(a) AUTHORITY-

(1) IN GENERAL- The head of an executive agency who engages in basic research, applied research, advanced research, and development projects that--

(A) are necessary to the responsibilities of such official's executive agency in the field of research and development, and

(B) have the potential to facilitate defense against or recovery from terrorism or nuclear, biological, chemical, or radiological attack,

may exercise the same authority (subject to the same restrictions and conditions) with respect to such research and projects as the Secretary of Defense may exercise under section 2371 of title 10, United States Code, except for subsections (b) and (f) of such section 2371.

(2) PROTOTYPE PROJECTS- The head of an executive agency may, under the authority of paragraph (1), carry out prototype projects that meet the requirements of subparagraphs (A) and (B) of paragraph (1) in accordance with the requirements and conditions provided for carrying out prototype projects under section 845 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 2371 note), including that, to the maximum extent practicable, competitive procedures shall be used when entering into agreements to carry out projects under subsection (a) of that section and that the period of authority to carry out projects under such subsection (a) terminates as provided in subsection (g) of that section.

(3) APPLICATION OF REQUIREMENTS AND CONDITIONS- In applying the requirements and conditions of section 845 of the National Defense Authorization Act for Fiscal Year 1994 under this subsection--

(A) subsection (c) of that section shall apply with respect to prototype projects carried out under this paragraph; and

(B) the Director of the Office of Management and Budget shall perform the functions of the Secretary of Defense under subsection (d) of that section.

(4) APPLICABILITY TO SELECTED EXECUTIVE AGENCIES-

(A) OMB AUTHORIZATION REQUIRED- The head of an executive agency may exercise authority under this subsection for a project only if authorized by the Director of the Office of Management and Budget to use the authority for such project.

(B) RELATIONSHIP TO AUTHORITY OF DEPARTMENT OF HOMELAND SECURITY- The authority under this subsection shall not apply to the Secretary of Homeland Security while section 831 of the Homeland Security Act of 2002 (Public Law 107-296; 116 Stat. 2224) is in effect.

(b) ANNUAL REPORT- The annual report of the head of an executive agency that is required under subsection (h) of section 2371 of title 10, United States Code, as applied to the head of the executive agency by subsection (a), shall be submitted to the Committee on Governmental Affairs of the Senate and the Committee on Government Reform of the House of Representatives.

(c) REGULATIONS- The Director of the Office of Management and Budget shall prescribe regulations to carry out this section. No transaction may be conducted under the authority of this section before the date on which such regulations take effect.

(d) TERMINATION OF AUTHORITY- The authority to carry out transactions under subsection (a) shall terminate on September 30, 2008.

The House bill contained a provision (sec. 1451) that would amend title III of the Federal Property and Administrative Services Act of 1949 (Public Law 81-152) to provide the Director of the Office of Management and Budget authority to grant to the head of selected executive agencies the authority to enter into transactions (other than contracts, cooperative agreements, and grants) and to carry out prototype projects in accordance with the requirements and conditions for such projects, as provided under section 845 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160).

The Senate amendment contained no similar provision.

The Senate recedes with an amendment that would conform the authority provided to civilian agencies with the existing authority under section 845 and would clarify that the Director of the Office of Management and Budget must authorize the use of this authority by civilian agencies on a case-by-case basis.

House Report 108-117, Part 1

The section would amend title III of the Federal Property and  Administrative Services Act of 1949 (Property Act) (41 U.S.C. 251 et seq.) to authorize the head of a civilian executive agency, if authorized by the Director of the Office of Management and Budget (OMB), to enter into transactions (other than contracts, cooperative agreements, and grants) to carry out basic, applied and advanced research, and development projects that are otherwise authorized and necessary to the responsibilities of the agency that may facilitate defense against, or recovery from, terrorism or nuclear, biological, chemical, or radiological, attack. This authority would be similar to that exercised by the Secretary of Defense under section 2317 of title 10, United States Code with certain exceptions. The section would further amend the Property Act to provide that the head of an executive agency, designated by the Director of OMB to enter into transactions (other than contracts, cooperative agreements, and grants) may, with the approval of the Director of OMB, carryout prototype projects in accordance with the same requirements and conditions for prototype projects as are provided under section 845 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103–160; 10 U.S.C. 2371 note).