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

Subtitle G Governmentwide Acquisition Improvements

DHNDAA Section

Representative Waxman Summary

SEC. 862. LIMITATION ON LENGTH OF CERTAIN NONCOMPETITIVE CONTRACTS.

(a) Civilian Agency Contracts- Section 303(d) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(d)) is amended by adding at the end the following new paragraph:

`(3)(A) The contract period of a contract described in subparagraph (B) that is entered into by an executive agency pursuant to the authority provided under subsection (c)(2)--

`(i) may not exceed the time necessary--

`(I) to meet the unusual and compelling requirements of the work to be performed under the contract; and

`(II) for the executive agency to enter into another contract for the required goods or services through the use of competitive procedures; and

`(ii) may not exceed one year unless the head of the executive agency entering into such contract determines that exceptional circumstances apply.

`(B) This paragraph applies to any contract in an amount greater than the simplified acquisition threshold.'.

(b) Defense Contracts- Section 2304(d) of title 10, United States Code, is amended by adding at the end the following new paragraph:

`(3)(A) The contract period of a contract described in subparagraph (B) that is entered into by an agency pursuant to the authority provided under subsection (c)(2)--

`(i) may not exceed the time necessary--

`(I) to meet the unusual and compelling requirements of the work to be performed under the contract; and

`(II) for the agency to enter into another contract for the required goods or services through the use of competitive procedures; and

`(ii) may not exceed one year unless the head of the agency entering into such contract determines that exceptional circumstances apply.

`(B) This paragraph applies to any contract in an amount greater than the simplified acquisition threshold.'.

Limitation on the length of noncompetitive contracts. Section 862 limits the duration of no-bid contracts awarded in emergencies to one year.

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