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

Conference Report Section

Legislative History

(a) LIMITATION PERIOD- Section 2306c of title 10, United States Code, is amended by adding at the end the following new subsection:

(g) LIMITATION PERIOD FOR TASK AND DELIVERY ORDER CONTRACTS- 

(1) The authority and restrictions of this section, including the authority to enter into contracts for periods of not more than five years, shall apply with respect to task order and delivery order contracts entered into under the authority of section 2304a, 2304b, or 2304c of this title.

(2) The regulations implementing this subsection shall establish a preference that, to the maximum extent practicable, multi-year requirements for task order and delivery order contracts be met with separate awards to two or more sources under the authority of section 2304a(d)(1)(B) of this title.'.

(b) EFFECTIVE DATE- Subsection (g) of section 2306c of title 10, United States Code, as added by subsection (a), shall apply to all task order and delivery order contracts entered into on or after the date of the enactment of this Act.

(c) COMPTROLLER GENERAL REPORT- Not later than March 15, 2003, the Comptroller General shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the contract periods (including any options or extensions) for all single and multiple contract awards entered into under section 2304a(d) of title 10, United States Code, before the effective date in subsection (b).

Conference Report 107-772

The House bill contained a provision (sec. 803) that would amend sections 2304a and 2304b of title 10, United States Code, to limit the period of time for which task and delivery order contracts may be awarded to five years--the same time limitation that is applicable to other multiyear contracts. (See H. R. 4546 - House Bill and House Report 107-436 below)

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would amend section 2306c of title 10, United States Code, to provide that multiyear task and delivery order contracts are subject to the same requirements as other multiyear contracts, including the five-year time limitation on such contracts. The amendment would also establish a preference for the award of a multiyear task and delivery order contract to more than one source to ensure competition for task orders and delivery orders throughout the period of the contract. Finally, the amendment would require the Comptroller General to review the contract term of existing single-award and multiple-award task and delivery order contracts (including any options or extensions available under such contracts).

H. R. 4546 - House Bill

SEC. 803. LIMITATION PERIOD FOR TASK AND DELIVERY ORDER CONTRACTS.

Chapter 137 of title 10, United States Code, is amended--

(1) in section 2304a--

(A) in subsection (e)--

(i) by inserting `(1)' before `A task'; and

(ii) by adding at the end the following new paragraphs:

(2) Unless use of procedures other than competitive procedures is authorized by an exception in subsection (c) of section 2304 of this title and approved in accordance with subsection (f) of such section, competitive procedures shall be used for making such a modification.

(3) Notice regarding the modification shall be provided in accordance with section 18 of the Office of Federal Procurement Policy Act (41 U.S.C. 416) and section 8(e) of the Small Business Act (15 U.S.C. 637(e)).'; and

(B) by striking subsection (f) and inserting the following:

(f) LIMITATION ON CONTRACT PERIOD- The base period of a task order contract or delivery order contract entered into under this section may not exceed five years unless a longer period is specifically authorized in a law that is applicable to such contract. The contract may be extended for an additional 5 years (for a total contract period of not more than 10 years) through modifications, options, or otherwise.'; and

(2) in section 2304b--

(A) by striking subsection (a) and inserting the following:

(a) IN GENERAL- A task order contract (as defined in section 2304d of this title) for procurement of advisory and assistance services shall be subject to the requirements of this section, sections 2304a and 2304c of this title, and other applicable provisions of law.';

(B) by striking subsections (b), (f), and (g) and redesignating subsections (c), (d), (e), (h), and (i) as subsections (b) through (f);

(C) by amending subsection (c) (as redesignated by subparagraph (B)) to read as follows:

(c) REQUIRED CONTENT OF CONTRACT- A task order contract described in subsection (a) shall contain the same information that is required by section 2304a(b) to be included in the solicitation of offers for that contract.'; and

(D) in subsection (d) (as redesignated by subparagraph (B))--

(i) in paragraph (1), by striking `under this section' and inserting `described in subsection (a)'; and

(ii) in paragraph (2), by striking `under this section'.

House Report 107-436

SECTION 803--LIMITATION PERIOD FOR TASK AND DELIVERY ORDER CONTRACTS

This section would amend sections 2304a and 2304b of title 10, United States Code, by proscribing the period of time for which these contracts can be awarded, and by more clearly characterizing advisory and service task order contracts as a type of task and delivery order contract. The committee believes it is appropriate to limit contract duration in order to better promote the use of competition. The committee also believes that all task and delivery order contracts should be treated as congruently as is possible and appropriate.