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Code · BILL · 117th Congress · S. 1260 (Engrossed in Senate) — To establish a new Directorate for Technology and Innovation in the National Science Foundation, to establish a regio... · Sec. 2672

Sec. 2672. Authority for transaction prototype projects and follow-on production contracts

343 words·~2 min read·/bill/117/s/1260/es/section-2672·

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Section 20113 of title 51, United States Code, as amended by section 2671, is further amended by adding at the end the following: The Administration may enter into a transaction (other than a contract, cooperative agreement, or grant) to carry out a prototype project that is directly relevant to enhancing the mission effectiveness of the Administration. A transaction entered into under this subsection for a prototype project may provide for the subsequent award of a follow-on production contract to participants in the transaction.
A transaction under this subsection includes a project awarded to an individual participant and to all individual projects awarded to a consortium of United States industry and academic institutions. The authority of this section may be exercised for a transaction for a prototype project and any follow-on production contract, upon a determination by the head of the contracting activity, in accordance with Administration policies, that— circumstances justify use of a transaction to provide an innovative business arrangement that would not be feasible or appropriate under a contract; and the use of the authority of this section is essential to promoting the success of the prototype project.
To the maximum extent practicable, the Administrator shall use competitive procedures with respect to entering into a transaction to carry out a prototype project. Notwithstanding section 2304 of title 10, United States Code, a follow-on production contract may be awarded to the participants in the prototype transaction without the use of competitive procedures, if— competitive procedures were used for the selection of parties for participation in the prototype transaction; and the participants in the transaction successfully completed the prototype project provided for in the transaction.
A transaction to carry out a prototype project and a follow-on production contract may require that part of the total cost of the transaction or contract be paid by the participant or contractor from a source other than the Federal Government. A transaction under this authority shall be considered an agency procurement for purposes of chapter 21 of title 41, United States Code, with regard to procurement ethics. .
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