PART B-SPECIFIC PILOT PROGRAMS

§ 1491. Share-in-savings pilot program (a) Requirement

The Administrator may authorize the heads of two executive agencies to carry out a pilot program to test the feasibility of

(1) contracting on a competitive basis with a private sector source to provide the Federal Government with an information technology solution for improving mission-related or administrative processes of the Federal Government; and

(2) paying the private sector source an amount equal to a portion of the savings derived by the Federal Government from any improvements in mission-related processes and administrative processes that result from implementation of the solution.

(b) Limitations

The head of an executive agency authorized to carry out the pilot program may, under the pilot program, carry out one project and enter into not more than five contracts for the project. (c) Selection of projects

The projects shall be selected by the Administrator, in consultation with the Administrator for the Office of Information and Regulatory Affairs.

(Pub. L. 104-106, div. E, title LIII, § 5311, Feb. 10, 1996, 110 Stat. 692.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1471 of this title.

§ 1492. Solutions-based contracting pilot program (a) In general

The Administrator may authorize the heads of any of the executive agencies, in accordance with subsection (d)(2) of this section, to carry out a pilot program to test the feasibility of using solutions-based contracting for acquisition of information technology.

(b) Solutions-based contracting described

For purposes of this section, solutions-based contracting is an acquisition method under which the acquisition objectives are defined by the Federal Government user of the technology to be acquired, a streamlined contractor selection process is used, and industry sources are allowed to provide solutions that attain the objectives effectively.

(c) Process requirements

The Administrator shall require use of a process with the following aspects for acquisitions under the pilot program:

(1) Acquisition plan emphasizing desired result Preparation of an acquisition plan that defines the functional requirements of the intended users of the information technology to be acquired, identifies the operational improvements to be achieved, and defines the performance measurements to be applied in determining whether the information technology acquired satisfies the defined requirements and attains the identified results.

(2) Results-oriented statement of work

Use of a statement of work that is limited to an expression of the end results or performance capabilities desired under the acquisition plan.

(3) Small acquisition organization

Assembly of a small acquisition organization consisting of the following:

(A) An acquisition management team, the members of which are to be evaluated and rewarded under the pilot program for contributions toward attainment of the desired results identified in the acquisition plan.

(B) A small source selection team composed of representatives of the specific mission or administrative area to be supported by the information technology to be acquired, together with a contracting officer and persons with relevant expertise.

(4) Use of source selection factors emphasizing source qualifications and costs

Use of source selection factors that emphasize

(A) the qualifications of the offeror, including such factors as personnel skills, previous experience in providing other private or public sector organizations with solutions for attaining objectives similar to the objectives of the acquisition, past contract performance, qualifications of the proposed program manager, and the proposed management plan; and

(B) the costs likely to be associated with the conceptual approach proposed by the offeror.

(5) Open communications with contractor community

Open availability of the following information to potential offerors:

(A) The agency mission to be served by the acquisition.

(B) The functional process to be performed by use of information technology.

(C) The process improvements to be attained.

(6) Simple solicitation

Use of a simple solicitation that sets forth only the functional work description, the source selection factors to be used in accordance with paragraph (4), the required terms and conditions, instructions regarding submission of offers, and the estimate of the Federal Government's budget for the desired work. (7) Simple proposals

Submission of oral presentations and written proposals that are limited in size and scope and contain information on—

(A) the offeror's qualifications to perform the desired work;

(B) past contract performance;

(C) the proposed conceptual approach; and

(D) the costs likely to be associated with the proposed conceptual approach. (8) Simple evaluation

Use of a simplified evaluation process, to be completed within 45 days after receipt of proposals, which consists of the following:

(A) Identification of the most qualified offerors that are within the competitive range.

(B) Issuance of invitations for at least three and not more than five of the identified offerors to make oral presentations to, and engage in discussions with, the evaluating personnel regarding, for each offeror

(i) the qualifications of the offeror, including how the qualifications of the offeror relate to the approach proposed to be taken by the offeror in the acquisition; and

(ii) the costs likely to be associated with the approach.

(C) Evaluation of the qualifications of the identified offerors and the costs likely to be associated with the offerors' proposals on the basis of submissions required under the process and any oral presentations made by, and any discussions with, the offerors. (9) Selection of most qualified offeror

A selection process consisting of the following:

(A) Identification of the most qualified source or sources, primarily on the basis of the oral proposals, presentations, and discussions, and written proposals submitted in accordance with paragraph (7).

(B) Conduct for 30 to 60 days (or a longer period, if approved by the Administrator) of a program definition phase (funded, in the case of the source ultimately awarded the contract, by the Federal Government)—

(i) during which the selected source or sources, in consultation with one or more intended users, develops a conceptual system design and technical approach, defines logical phases for the project, and estimates the total cost and the cost for each phase; and

(ii) after which a contract for performance of the work may be awarded to the source whose offer is determined to be most advantageous to the Government on the basis of cost, the responsiveness, reasonableness, and quality of the proposed performance, and a sharing of risk and benefits between the source and the Government.

(C) Conduct of as many successive program definition phases as is necessary in order to award a contract in accordance with subparagraph (B).

(10) System implementation phasing

System implementation to be executed in phases that are tailored to the solution, with various contract arrangements being used, as appropriate, for various phases and activities. (11) Mutual authority to terminate

Authority for the Federal Government or the contractor to terminate the contract without penalty at the end of any phase defined for the project.

(12) Time management discipline

Application of a standard for awarding a contract within 105 to 120 days after issuance of the solicitation, except that the Adminis

trator may approve the application of a longer standard period.

(d) Pilot program design

(1) Joint public-private working group

The Administrator, in consultation with the Administrator for the Office of Information and Regulatory Affairs, shall establish a joint working group of Federal Government personnel and representatives of the information technology industry to design a plan for conduct of any pilot program carried out under this section.

(2) Content of plan

The plan shall provide for use of solutionsbased contracting in the Department of Defense and not more than two other executive agencies for a total of

(A) not more than 10 projects, each of which has an estimated cost of between $25,000,000 and $100,000,000; and

(B) not more than 10 projects, each of which has an estimated cost of between $1,000,000 and $5,000,000, to be set aside for small business concerns.

(3) Complexity of projects

(A) Subject to subparagraph (C), each acquisition project under the pilot program shall be sufficiently complex to provide for meaningful evaluation of the use of solutions-based contracting for acquisition of information technology for executive agencies.

(B) In order for an acquisition project to satisfy the requirement in subparagraph (A), the solution for attainment of the executive agency's objectives under the project should not be obvious, but rather shall involve a need for some innovative development and systems integration.

(C) An acquisition project should not be so extensive or lengthy as to result in undue delay in the evaluation of the use of solutionsbased contracting.

(e) Monitoring by GAO

The Comptroller General of the United States shall

(1) monitor the conduct, and review the results, of acquisitions under the pilot program; and

(2) submit to Congress periodic reports containing the views of the Comptroller General on the activities, results, and findings under the pilot program.

(Pub. L. 104-106, div. E, title LIII, §5312, Feb. 10, 1996, 110 Stat. 692; Pub. L. 105-85, div. A, title VIII, §852, Nov. 18, 1997, 111 Stat. 1851.)

AMENDMENTS

1997-Subsec. (c)(9)(A). Pub. L. 105-85, §852(a)(1), substituted "or sources," for ", and ranking of alternative sources,".

Subsec. (c)(9)(B). Pub. L. 105–85, §852(a)(2)(A), inserted "(or a longer period, if approved by the Administrator)" after "30 to 60 days" in introductory provisions.

Subsec. (c)(9)(B)(i). Pub. L. 105-85, §852(a)(2)(B), inserted "or sources" after "source".

Subsec. (c)(9)(B)(ii). Pub. L. 105–85, §852(a)(2)(C), substituted "the source whose offer is determined to be most advantageous to the Government" for "that source".

Subsec. (c)(9)(C). Pub. L. 105-85, § 852(a)(3), struck out "with alternative sources (in the order ranked)" after "definition phases".

Subsec. (c)(12). Pub. L. 105–85, §852(b), inserted before period at end", except that the Administrator may approve the application of a longer standard period".

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1471 of this title.

SUBCHAPTER IV-ADDITIONAL INFORMATION RESOURCES MANAGEMENT MATTERS

§ 1501. On-line multiple award schedule contracting

(a) Automation of multiple award schedule contracting

In order to provide for the economic and efficient procurement of information technology and other commercial items, the Administrator of General Services shall provide, not later than January 1, 1998, Government-wide on-line computer access to information on products and services that are available for ordering under the multiple award schedules.

(b) Functions

(1) The system for providing on-line computer access shall have the capability to perform the following functions:

(A) Provide basic information on prices, features, and performance of all products and services available for ordering through the multiple award schedules.

(B) Provide for updating that information to reflect changes in prices, features, and performance as soon as information on the changes becomes available.

(C) Enable users to make on-line computer comparisons of the prices, features, and performance of similar products and services offered by various vendors.

(2) The system for providing on-line computer access shall be used to place orders under the multiple award schedules in a fiscal year for an amount equal to at least 60 percent of the total amount spent for all orders under the multiple award schedules in that fiscal year. (c) Streamlined procedures

(1) Pilot program

Upon certification by the Administrator of General Services that the system for providing on-line computer access meets the requirements of subsection (b)(1) of this section and was used as required by subsection (b)(2) of this section in the fiscal year preceding the fiscal year in which the certification is made, the Administrator for Federal Procurement Policy may establish a pilot program to test streamlined procedures for the procurement of information technology products and services available for ordering through the multiple award schedules.

(2) Applicability to multiple award schedule

contracts

Except as provided in paragraph (4), the pilot program shall be applicable to all multiple award schedule contracts for the purchase of information technology and shall test the following procedures:

(A) A procedure under which negotiation of the terms and conditions for a covered multiple award schedule contract is limited to terms and conditions other than price.

(B) A procedure under which the vendor establishes the prices under a covered multiple award schedule contract and may adjust those prices at any time in the discretion of the vendor.

(C) A procedure under which a covered multiple award schedule contract is awarded to any responsible offeror that

(i) has a suitable record of past performance, which may include past performance on multiple award schedule contracts;

(ii) agrees to terms and conditions that the Administrator determines as being required by law or as being appropriate for the purchase of commercial items; and

(iii) agrees to establish and update prices, features, and performance and to accept orders electronically through the automated system established pursuant to subsection (a) of this section.

(3) Comptroller General review and report

(A) Not later than three years after the date on which the pilot program is established, the Comptroller General of the United States shall review the pilot program and report to the Congress on the results of the pilot program. (B) The report shall include the following:

(i) An evaluation of the extent to which there is competition for the orders placed under the pilot program.

(ii) The effect that the streamlined procedures under the pilot program have on prices charged under multiple award schedule contracts.

(iii) The effect that such procedures have on paperwork requirements for multiple award schedule contracts and orders.

(iv) The impact of the pilot program on small businesses and socially and economically disadvantaged small businesses. (4) Withdrawal of schedule or portion of schedule from pilot program

The Administrator may withdraw a multiple award schedule or portion of a schedule from the pilot program if the Administrator determines that (A) price competition is not available under such schedule or portion thereof, or (B) the cost to the Government for that schedule or portion thereof for the previous year was higher than it would have been if the contracts for such schedule or portion thereof had been awarded using procedures that would apply if the pilot program were not in effect. The Administrator shall notify Congress at least 30 days before the date on which the Administrator withdraws a schedule or portion thereof under this paragraph. The authority under this paragraph may not be delegated. (5) Termination of pilot program

Unless reauthorized by law, the authority of the Administrator to award contracts under the pilot program shall expire four years after the date on which the pilot program is established. Contracts entered into before the authority expires shall remain in effect in ac

cordance with their terms notwithstanding the expiration of the authority to award new contracts under the pilot program.

(Pub. L. 104-106, div. E, title LIV, §5401, Feb. 10, 1996, 110 Stat. 695; Pub. L. 105-85, div. A, title VIII, § 850(f)(2), Nov. 18, 1997, 111 Stat. 1849.)

AMENDMENTS

1997-Subsec. (a). Pub. L. 105-85, §850(f)(2)(A), struck out "through the Federal Acquisition Computer Network (in this section referred to as 'FACNET')" after "Services shall provide" and struck out at end "If the Administrator determines it is not practicable to provide such access through FACNET, the Administrator shall provide such access through another automated system that has the capability to perform the functions listed in subsection (b)(1) of this section and meets the requirement of subsection (b)(2) of this section."

Subsec. (b). Pub. L. 105-85, §850(f)(2)(B), substituted "Functions" for "Additional FACNET functions" in heading, "The system for providing on-line computer access" for "In addition to the functions specified in section 426(b) of title 41, the FACNET architecture" in par. (1), and "The system for providing on-line computer access" for "The FACNET architecture" in par. (2).

Subsec. (c)(1). Pub. L. 105–85, § 850(f)(2)(C), substituted "the system for providing on-line computer access" for "the FACNET architecture".

Subsec. (d). Pub. L. 105–85, §850(f)(2)(D), struck out heading and text of subsec. (d). Text read as follows: "In this section, the term 'FACNET' means the Federal Acquisition Computer Network established under section 426 of title 41."

EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105-85 effective 180 days after Nov. 18, 1997, see section 850(g) of Pub. L. 105-85, set out as a note under section 2302c of Title 10, Armed Forces.

EFFECTIVE DATE

Subchapter effective 180 days after Feb. 10, 1996, see section 5701 of Pub. L. 104-106, set out as a note under section 1401 of this title.

§ 1502. Identification of excess and surplus computer equipment

Not later than six months after February 10, 1996, the head of an executive agency shall in

ventory all computer equipment under the control of that official. After completion of the inventory, the head of the executive agency shall maintain, in accordance with title II of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 481 et seq.), an inventory of any such equipment that is excess or surplus property.

(Pub. L. 104-106, div. E, title LIV, §5402, Feb. 10, 1996, 110 Stat. 697.)

REFERENCES IN TEXT

The Federal Property and Administrative Services Act of 1949, referred to in text, is act June 30, 1949, ch. 288, 63 Stat. 377, as amended. Title II of the Act is classified principally to subchapter II (§ 481 et seq.) of chapter 10 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 471 of this title and Tables.

§1503. Access of certain information in information systems to directory established under section 4101 of title 44

Notwithstanding any other provision of this chapter, if in designing an information technology system pursuant to this chapter, the head of an executive agency determines that a purpose of the system is to disseminate information to the public, then the head of such executive agency shall reasonably ensure that an index of information disseminated by such system is included in the directory created pursuant to section 4101 of title 44. Nothing in this section authorizes the dissemination of information to the public unless otherwise authorized. (Pub. L. 104-106, div. E, title LIV, §5403, Feb. 10, 1996, 110 Stat. 698.)

REFERENCES IN TEXT

This chapter, referred to in text, was in the original "this division" meaning division E (§§ 5001-5703) of Pub. L. 104-106, Feb. 10, 1996, 110 Stat. 679, which is classified principally to this chapter. For complete classification of division E to the Code, see Short Title note set out under section 1401 of this title and Tables.