Back to NDAA Contents

Title XIV—Services Acquisition Reform

The Services Acquisition Reform Act of 2003 (SARA)

Public Law 108-136

House Conference Report 108-354

SEC. 1443. SPECIAL EMERGENCY PROCUREMENT AUTHORITY.

(a) PERMANENT AUTHORITY- (1) The Office of Federal Procurement Policy Act (41 U.S.C. 403 et seq.) is amended by inserting after section 32 the following new section:

`SEC. 32A. SPECIAL EMERGENCY PROCUREMENT AUTHORITY.

`(a) APPLICABILITY- The authorities provided in this section apply with respect to any procurement of property or services by or for an executive agency that, as determined by the head of such executive agency, are to be used--

`(1) in support of a contingency operation; or

`(2) to facilitate the defense against or recovery from nuclear, biological, chemical, or radiological attack against the United States.

`(b) INCREASED THRESHOLDS- For a procurement to which this section applies under subsection (a)--

`(1) the amount specified in subsections (c), (d), and (f) of section 32 shall be deemed to be $15,000; and

`(2) the term `simplified acquisition threshold' means--

`(A) $250,000 in the case of any contract to be awarded and performed, or purchase to be made, inside the United States; and

`(B) $500,000 in the case of any contract to be awarded and performed, or purchase to be made, outside the United States.

`(c) INCREASED LIMITATION ON USE OF SIMPLIFIED ACQUISITION PROCEDURES- For a procurement to which this section applies under subsection (a), the $5,000,000 limitation in the following provisions of law shall be deemed to be $10,000,000:

`(1) Section 31(a)(2) of this Act.

`(2) Section 2304(g)(1)(B) of title 10, United States Code.

`(3) Section 303(g)(1)(B) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(g)(1)(B)).

`(d) COMMERCIAL ITEMS AUTHORITY- (1) The head of an executive agency carrying out a procurement of property or a service to which this section applies under subsection (a)(2) may treat such property or service as a commercial item for the purpose of carrying out such procurement.

`(2) A contract in an amount greater than $15,000,000 that is awarded on a sole source basis for an item or service treated as a commercial item under paragraph (1) shall not be exempt from--

`(A) cost accounting standards promulgated pursuant to section 26 of this Act; or

`(B) cost or pricing data requirements (commonly referred to as truth in negotiating) under section 2306a of title 10, United States Code, and section 304A of title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 254b).

`(e) CONTINGENCY OPERATION DEFINED- In this section, the term `contingency operation' has the meaning given such term in section 101(a)(13) of title 10, United States Code.'.

(2) The table of contents in section 1(b) of such Act is amended by inserting after the item relating to section 32 the following new item:

`Sec. 32A. Special emergency procurement authority.'.

(b) CONTINUATION OF AUTHORITY FOR USE OF SIMPLIFIED ACQUISITION PROCEDURES- Section 4202(e) of the Clinger-Cohen Act (division D of Public Law 104-106; 110 Stat. 652; 10 U.S.C. 2304 note) is amended by striking `January 1, 2004' and inserting `January 1, 2006'.

The House bill contained a provision (sec. 1456) that would amend the federal emergency procurement authorities in section 852 of the Homeland Security Act of 2002 (Public Law 107-296) by repealing the sunset for authorities applicable for defense against or recovery from terrorism or nuclear, biological, chemical, or radiological attack and to adjust thresholds amounts.

The Senate amendment contained a provision (sec. 801) that would extend by two years temporary emergency procurement authority under section 852 to assist the Department of Defense (DOD) in facilitating the defense against terrorist biological or chemical attack.

The Senate recedes with an amendment that would modify the Office of Federal Procurement Policy Act (Public Law 93-400) by providing special emergency procurement authority to the DOD and civilian agencies. The provision would authorize the use of the new authority: (1) to support a contingency operation; or (2) to facilitate the defense against or recovery from nuclear, biological, chemical, or radiological attack on the United States. The simplified acquisition threshold, the micropurchase threshold, and the threshold for use of simplified acquisition procedures would be increased for all procurements covered by this provision. In addition, the head of an executive agency would be authorized to deem items or services purchased to facilitate the defense against or recovery from nuclear, biological, chemical, or radiological attack on the United States as commercial items (subject to certain limitations). Finally, the provision would extend certain authorities provided in the Clinger-Cohen Act (division D of Public Law 104-106).