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Conference Report 107-772 - National Defense Authorization Act for Fiscal Year 2003

Legislative Provisions Not Adopted

Legislative History

Senate Amendment

SEC. 829. AUTHORITY FOR NONPROFIT ORGANIZATIONS TO SELF-CERTIFY ELIGIBILITY FOR TREATMENT AS QUALIFIED ORGANIZATIONS EMPLOYING SEVERELY DISABLED UNDER MENTOR-PROTEGE PROGRAM.

    Section 831 of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2302 note) is amended by adding at the end the following new subsection:

    `(n) SELF-CERTIFICATION OF NONPROFIT ORGANIZATIONS AS QUALIFIED ORGANIZATIONS EMPLOYING THE SEVERELY DISABLED- (1) The Secretary of Defense may, in accordance with such requirements as the Secretary may establish, permit a business entity operating on a non-profit basis to self-certify its eligibility for treatment as a qualified organization employing the severely disabled under subsection (m)(2)(D).

    `(2) The Secretary shall treat any entity described in paragraph (1) that submits a self-certification under that paragraph as a qualified organization employing the severely disabled until the Secretary receives evidence, if any, that such entity is not described by paragraph (1) or does not merit treatment as a qualified organization employing the severely disabled in accordance with applicable provisions of subsection (m).

    `(3) Paragraphs (1) and (2) shall cease to be effective on the effective date of regulations prescribed by the Small Business Administration under this section setting forth a process for the certification of business entities as eligible for treatment as a qualified organization employing the severely disabled under subsection (m)(2)(D).'.

Conference Report 107-772 

The Senate amendment contained a provision (sec. 829) that would permit nonprofit organizations employing the severely disabled to self-certify their eligibility to participate in the Department of Defense Mentor-Protege Program. 

The House bill contained no similar provision. 

The Senate recedes. 

 

H. R. 4546 - House Bill

SEC. 805. AUTHORITY TO MAKE INFLATION ADJUSTMENTS TO SIMPLIFIED ACQUISITION THRESHOLD.

    Section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11)) is amended by inserting `, except that such amount may be adjusted by the Administrator every five years to the amount equal to $100,000 in constant fiscal year 2002 dollars (rounded to the nearest $10,000)' before the period at the end.

Conference Report 107-772 

The House bill contained a provision (sec. 805) that would authorize the Administrator of the Office of Federal Procurement Policy to adjust the simplified acquisition threshold every five years to account for inflation. 

The Senate amendment contained no similar provision. 

The House recedes.

House Report 107-436

SECTION 805--AUTHORITY TO MAKE INFLATION ADJUSTMENT TO SIMPLIFIED ACQUISITION THRESHOLD

This section would provide the Administrator of the Office of Federal Procurement Policy with the authority to adjust the simplified acquisition threshold every five years to account for inflation.

 

Senate Amendment

SEC. 824. MENTOR-PROTEGE PROGRAM ELIGIBILITY FOR HUBZONE SMALL BUSINESS CONCERNS AND SMALL BUSINESS CONCERNS OWNED AND CONTROLLED BY SERVICE-DISABLED VETERANS.

    Section 831(m)(2) of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2302 note), is amended--

      (1) by striking `or' at the end of subparagraph (D);

      (2) by striking the period at the end of subparagraph (E) and inserting a semicolon; and

      (3) by adding at the end the following new subparagraphs:

        `(F) a qualified HUBZone small business concern, within the meaning of section 3(p)(5) of the Small Business Act (15 U.S.C. 632(p)(5)); or

        `(G) a small business concern owned and controlled by service-disabled veterans, as defined in section 3(q)(2) of the Small Business Act (15 U.S.C. 632(q)(2)).'.

Conference Report 107-772 

The Senate amendment contained a provision (sec. 824) that would add HUBZone small business concerns and small business concerns owned and controlled by service-disabled veterans to the list of organizations eligible to participate in the Mentor-Protege Program of the Department of Defense. 

The House bill contained no similar provision. 

The Senate recedes. 

Senate Report 107-151

Mentor-protege program eligibility for HUBZone small business concerns and small business concerns owned and controlled by service-disabled veterans (sec. 824)

The committee recommends a provision that would expand the list of entities eligible to participate as proteges in the Department of Defense mentor-protege program to include small business concerns owned and controlled by service-disabled veterans and qualified HUBZone small business concerns.

 

 

H. R. 4546 - House Bill

SEC. 807. MODIFICATION OF SCOPE OF BALL AND ROLLER BEARINGS COVERED FOR PURPOSES OF PROCUREMENT LIMITATION.

    Section 2534(a)(5) of title 10, United States Code is amended--

      (1) by striking `225.71' and inserting `225.70';

      (2) by striking `October 23, 1992' and inserting `April 27, 2002'; and

      (3) by adding at the end the following: `In this section the term `ball bearings and roller bearings' includes unconventional or hybrid ball and roller bearings and cam follower bearings, ball screws, and other derivatives of ball and roller bearings.'.

Conference Report 107-772 

The House bill contained a provision (sec. 807) that would expand a prohibition on the purchase of ball or roller bearings from sources outside the United States to cover unconventional or hybrid ball and roller bearings, cam follower bearings, ball screws, and other derivatives of ball and roller bearings. 

The Senate amendment contained no similar provision. 

The House recedes.

House Report 107-436

SECTION 807--MODIFICATION OF SCOPE OF BALL AND ROLLER BEARINGS COVERED FOR PURPOSES OF PROCUREMENT LIMITATION

This section would amend section 2534 of title 10, United States Code, by expanding the definition of ball and roller bearings to include unconventional or hybrid ball and roller bearings, cam follower bearings, ball screws and other derivatives of ball and roller bearings. This section would not extend the time period for which the procurement limitation is in place.

 

Senate Amendment

SEC. 822. MORATORIUM ON REDUCTION OF THE DEFENSE ACQUISITION AND SUPPORT WORKFORCE.

    (a) PROHIBITION- Notwithstanding any other provision of law, the defense acquisition and support workforce may not be reduced, during fiscal years 2003, 2004, and 2005, below the level of that workforce as of September 30, 2002, determined on the basis of full-time equivalent positions.

    (b) WAIVER AUTHORITY- The Secretary of Defense may waive the prohibition in subsection (a) and reduce the level of the defense acquisition and support workforce upon submitting to Congress the Secretary's certification that the defense acquisition and support workforce, at the level to which reduced, will be able efficiently and effectively to perform the workloads that are required of that workforce consistent with the cost-effective management of the defense acquisition system to obtain best value equipment and with ensuring military readiness.

    (c) DEFENSE ACQUISITION AND SUPPORT WORKFORCE DEFINED- In this section, the term `defense acquisition and support workforce' means Armed Forces and civilian personnel who are assigned to, or are employed in, an organization of the Department of Defense that is--

      (1) an acquisition organization specified in Department of Defense Instruction 5000.58, dated January 14, 1992; or

      (2) an organization not so specified that has acquisition as its predominant mission, as determined by the Secretary of Defense.

 

Conference Report 107-772 

The Senate amendment contained a provision (sec. 822) that would impose a moratorium on reductions in the defense acquisition and support workforce during fiscal years 2003, 2004 and 2005. 

The House bill contained no similar provision. 

The Senate recedes. 

Senate Report 107-151

Moratorium on reduction of the defense acquisition and support workforce (sec. 822)

The committee recommends a provision that would establish a moratorium on further cuts in the acquisition workforce for three years. The Secretary of Defense would be authorized to waive this prohibition upon certification to Congress that any reductions to the workforce would not negatively impact the ability of the workforce to efficiently and effectively carry out its legally required functions.

Twelve consecutive years of downsizing have left the Department of Defense (DOD) with a workforce that is smaller (by 51 percent), older (with an average age of 46.7 years), more senior (with an average of 20.2 years of service), higher grade, and rapidly approaching retirement. In August 2000, the then-Under Secretary of Defense for Acquisition, Technology, and Logistics wrote a memorandum in which he stated:

I recommend that DOD not have any further mandated acquisition workforce reductions as a goal after FY 2001. By any terms, the DOD acquisition workforce has been drastically reduced while, at the same time the number of DOD procurement and contracting actions has increased * * *. We have gone as far as we can in mandating acquisition workforce reductions without causing significant adverse impacts on the DOD acquisition system.

The committee believes that no further cuts should be made until the Department is prepared to address shortcomings in the acquisition workforce on a comprehensive basis.

 

Senate Amendment

SEC. 816. PILOT PROGRAM FOR TRANSITION TO FOLLOW-ON CONTRACTS FOR CERTAIN PROTOTYPE PROJECTS.

    Section 845 of the National Defense Authorization Act for Fiscal Year 1994 (10 U.S.C. 2371 note) is amended by--

      (1) redesignating subsections (e), (f), and (g) as subsections (f), (g), and (h), respectively; and

      (2) inserting after subsection (d) the following new subsection (e):

    `(e) PILOT PROGRAM FOR TRANSITION TO FOLLOW-ON CONTRACTS- (1) The Secretary of Defense is authorized to carry out a pilot program for follow-on contracting for the production of items or processes that are developed by nontraditional defense contractors under prototype projects carried out under this section.

    `(2) Under the pilot program--

      `(A) a qualifying contract for the procurement of such an item or process, or a qualifying subcontract under a contract for the procurement of such an item or process, may be treated as a contract or subcontract, respectively, for the procurement of commercial items, as defined in section 4(12) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)); and

      `(B) the item or process may be treated as an item or process, respectively, that is developed in part with Federal funds and in part at private expense for the purposes of section 2320 of title 10, United States Code.

    `(3) For the purposes of the pilot program, a qualifying contract or subcontract is a contract or subcontract, respectively, with a nontraditional defense contractor that--

      `(A) does not exceed $20,000,000; and

      `(B) is either--

        `(i) a firm, fixed-price contract or subcontract; or

        `(ii) a fixed-price contract or subcontract with economic price adjustment.

    `(4) The authority to conduct a pilot program under this subsection shall terminate on September 30, 2005. The termination of the authority shall not affect the validity of contracts or subcontracts that are awarded or modified during the period of the pilot program, without regard to whether the contracts or subcontracts are performed during the period.'.

Conference Report 107-772 

The Senate amendment contained a provision (sec. 816) that would establish a pilot program for the transition of prototype projects to follow-on production contracts. 

The House bill contained no similar provision. 

The Senate recedes. 

Senate Report 107-151

Pilot program for transition to follow-on contracts for certain prototype projects (sec. 816)

The committee recommends a provision that would enable the Department of Defense to capitalize on successful prototype projects by bringing the prototypes into production under standard procurement contracts. The provision would establish a three-year pilot program to ease the transition of nontraditional defense contractors from prototype transactions to standard procurement contracts. Under the pilot program, the Department would be authorized to enter contracts of $20.0 million or less that would treat items or processes developed by nontraditional defense contractors under prototype transactions: (1) as commercial items subject to the streamlined contracting procedures established in Part 12 of the Federal Acquisition Regulation; and (2) as items or processes that are developed with mixed funds for the purpose of negotiating rights in technical data under section 2320 of title 10, United States Code.

 

 

H. R. 4546 - House Bill

SEC. 801.  PLAN FOR ACQUISITION MANAGEMENT PROFESSIONAL EXCHANGE PILOT PROGRAM.

    (a) PLAN REQUIRED- (1) The Secretary of Defense shall develop a plan for a pilot program under which--

      (A) an individual in the field of acquisition management employed by the Department of Defense may be temporarily assigned to work in a private sector organization; and

      (B) an individual in such field employed by a private sector organization may be temporarily assigned to work in the Department of Defense.

    (2) In developing the plan under paragraph (1), the Secretary shall address the following:

      (A) The benefits of undertaking such a program.

      (B) The appropriate length of assignments under the program.

      (C) Whether an individual assigned under the program should be compensated by the organization to which the individual is assigned, or the organization from which the individual is assigned.

      (D) The ethics guidelines that should be applied to the program and, if necessary, waivers of ethics laws that would be needed in order to make the program effective and attractive to both Government and private sector employees.

      (E) An assessment of how compensation of individuals suffering employment-related injuries under the program should be addressed.

    (b) SUBMISSION TO CONGRESS- Not later than February 1, 2003, the Secretary shall submit to the Committees on Armed Services of the Senate and the House of Representatives the plan required under subsection (a).

Conference Report 107-772 

The House bill contained a provision (sec. 801) that would require the Secretary of Defense to develop a plan for a pilot program for the exchange of acquisition management personnel between the Department of Defense and private sector organizations. 

The Senate amendment contained no similar provision. 

The House recedes.

House Report 107-436

SECTION 801--PLAN FOR ACQUISITION MANAGEMENT PROFESSIONAL EXCHANGE PILOT PROGRAM

This section would require the Secretary of Defense to develop a pilot program for the exchange of personnel between Department of Defense acquisition management community and the private sector. The committee believes such an exchange program would improve knowledge and foster understanding between the two communities with the ultimate benefit of the Department acquiring better quality products and services.

 

 

 

H. R. 4546 - House Bill

SEC. 810. REPORT ON DEVELOPMENT OF ANTI-CYBERTERRORISM TECHNOLOGY.

    Not later than February 1, 2003, the Secretary of Defense shall submit to Congress a report on--

      (1) efforts by the Department of Defense to enter into contracts with private entities to develop anticyberterrorism technology; and

      (2) whether such efforts should be increased.

Conference Report 107-772 

The House bill contained a provision (sec. 810) that would require the Secretary of Defense to submit a report to Congress on anticyberterrorism technology. 

The Senate amendment contained no similar provision. 

The House recedes. The material covered by the House provision would be addressed in a report on homeland security required elsewhere in the bill.

House Report 107-436

SECTION 810--REPORT ON DEVELOPMENT OF ANTI-CYBERTERRORISM TECHNOLOGY

This section would require the Secretary of Defense to submit a report to Congress by February 1, 2003, on Department of Defense efforts to enter into contracts with private entities to develop anti-cyberterrorism technology.

   

Senate Amendment

SEC. 817. WAIVER AUTHORITY FOR DOMESTIC SOURCE OR CONTENT REQUIREMENTS.

    (a) AUTHORITY- Subchapter V of chapter 148 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 2539c. Waiver of domestic source or content requirements

    `(a) AUTHORITY- Except as provided in subsection (f), the Secretary of Defense may waive the application of any domestic source requirement or domestic content requirement referred to in subsection (b) and thereby authorize the procurement of items that are grown, reprocessed, reused, produced, or manufactured--

      `(1) in a foreign country that has a reciprocal defense procurement memorandum of understanding or agreement with the United States;

      `(2) in a foreign country that has a reciprocal defense procurement memorandum of understanding or agreement with the United States substantially from components and materials grown, reprocessed, reused, produced, or manufactured in the United States or any foreign country that has a reciprocal defense procurement memorandum of understanding or agreement with the United States; or

      `(3) in the United States substantially from components and materials grown, reprocessed, reused, produced, or manufactured in the United States or any foreign country that has a reciprocal defense procurement memorandum of understanding or agreement with the United States.

    `(b) COVERED REQUIREMENTS- For purposes of this section:

      `(1) A domestic source requirement is any requirement under law that the Department of Defense satisfy its requirements for an item by procuring an item that is grown, reprocessed, reused, produced, or manufactured in the United States or by a manufacturer that is a part of the national technology and industrial base (as defined in section 2500(1) of this title).

      `(2) A domestic content requirement is any requirement under law that the Department of Defense satisfy its requirements for an item by procuring an item produced or manufactured partly or wholly from components and materials grown, reprocessed, reused, produced, or manufactured in the United States.

    `(c) APPLICABILITY- The authority of the Secretary to waive the application of a domestic source or content requirements under subsection (a) applies to the procurement of items for which the Secretary of Defense determines that--

      `(1) application of the requirement would impede the reciprocal procurement of defense items under a memorandum of understanding providing for reciprocal procurement of defense items between a foreign country and the United States in accordance with section 2531 of this title; and

      `(2) such country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country.

    `(d) LIMITATION ON DELEGATION- The authority of the Secretary to waive the application of domestic source or content requirements under subsection (a) may not be delegated to any officer or employee other than the Under Secretary of Defense for Acquisition, Technology and Logistics.

    `(e) CONSULTATIONS- The Secretary may grant a waiver of the application of a domestic source or content requirement under subsection (a) only after consultation with the United States Trade Representative, the Secretary of Commerce, and the Secretary of State.

    `(f) LAWS NOT WAIVABLE- The Secretary of Defense may not exercise the authority under subsection (a) to waive any domestic source or content requirement contained in any of the following laws:

      `(1) The Small Business Act (15 U.S.C. 631 et seq.).

      `(2) The Javits-Wagner-O'Day Act (41 U.S.C. et seq.).

      `(3) Sections 7309 and 7310 of this title.

      `(4) Section 2533a of this title.

    `(g) RELATIONSHIP TO OTHER WAIVER AUTHORITY- The authority under subsection (a) to waive a domestic source requirement or domestic content requirement is in addition to any other authority to waive such requirement.

    `(h) CONSTRUCTION WITH RESPECT TO LATER ENACTED LAWS- This section may not be construed as being inapplicable to a domestic source requirement or domestic content requirement that is set forth in a law enacted after the enactment of this section solely on the basis of the later enactment.'.

    (b) CLERICAL AMENDMENT- The table of sections at the beginning of such subchapter is amended by inserting after the item relating to section 2539b the following new item:

      `2539c. Waiver of domestic source or content requirements.'.

Conference Report 107-772 

The Senate amendment contained a provision (sec. 817) that would authorize the Secretary of Defense to waive the application of statutory domestic source requirements and domestic content requirements in certain circumstances. 

The House bill contained no similar provision. 

The Senate recedes.

Senate Report 107-151

Waiver authority for domestic source or content requirements (sec. 817)

The committee recommends a provision that would provide the Secretary of Defense the authority to waive the application of statutory domestic source requirements and domestic content requirements, provided that: (1) application of the requirements would impede the reciprocal procurement of defense items under a Memorandum of Understanding between the United States and another country; and (2) the other country does not discriminate against items produced in the United States to a greater degree than the United States discriminates against items produced in that country. This proposed standard is consistent with the standard previously adopted by the committee for products covered by the domestic content restrictions in section 2534 of title 10, United States Code.

 

 

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