Sec. 304. Elimination of unnecessary duplication of contracts by requiring business case analysis
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The purpose of this section is to leverage the Government’s buying power and achieve administrative efficiencies and cost savings by eliminating unnecessary duplication of contracts. Chapter 33 of title 41, United States Code, is amended by adding at the end the following new section: An executive agency may not issue a solicitation for a covered Governmentwide contract unless the agency performs a business case analysis for the contract and obtains an approval of the business case analysis from the Administrator for Federal Procurement Policy.
With respect to any covered Governmentwide contract, the Administrator for Federal Procurement Policy shall review the business case analysis submitted for the contract and provide an approval or disapproval within 60 days after the date of submission. Any business case analysis not disapproved within such 60-day period is deemed to be approved. The Administrator for Federal Procurement Policy shall approve or disapprove a business case analysis based on the adequacy of the analysis submitted.
The Administrator shall give primary consideration to whether an agency has demonstrated a compelling need that cannot be satisfied by existing Governmentwide contract in a timely and cost-effective manner. The Administrator for Federal Procurement Policy shall issue guidance specifying the content for a business case analysis submitted pursuant to this section. At a minimum, the business case analysis shall include details on the administrative resources needed for such contract, including an analysis of all direct and indirect costs to the Federal Government of awarding and administering such contract and the impact such contract will have on the ability of the Federal Government to leverage its purchasing power.
In this section: The term covered Governmentwide contract means any contract, blanket purchase agreement, or other contractual instrument for acquisition of information technology or other goods or services that allows for an indefinite number of orders to be placed under the contract, agreement, or instrument, and that is established by one executive agency for use by multiple executive agencies to obtain goods or services. The term does not include— a multiple award schedule contract awarded by the General Services Administration; a Governmentwide acquisition contract for information technology awarded pursuant to sections 11302(e) and 11314(a)(2) of title 40; orders under Governmentwide contracts in existence before the effective date of this section; or any contract in an amount less than $10,000,000, determined on an average annual basis.
The term executive agency has the meaning provided that term by section 105 of title 5. . The table of sections for chapter 33 of title 41, United States Code, is amended by adding after the item relating to section 3311 the following new item: 3312. Requirement for business case approval for new Governmentwide contracts. . Not later than June 1 in each of the next 6 years following the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall submit to the relevant congressional committees a report on the implementation of section 3312 of title 41, United States Code, as added by subsection (b), including a summary of the submissions, reviews, approvals, and disapprovals of business case analyses pursuant to such section.
The Administrator for Federal Procurement Policy shall issue guidance for implementing section 3312 of such title. Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulation shall be amended to implement section 3312 of such title. Section 3312 of such title is effective on and after 180 days after the date of the enactment of this Act.