Sec. 5. Innovative procurement methods
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Section 880 of the National Defense Authorization Act for Fiscal Year 2017 ( Public Law 114–328 ; 41 U.S.C. 3301 note) is amended— in the section heading, by striking and inserting pilot programs for authority to acquire innovative commercial products ; programs for authority to acquire innovative commercial products and commercial services in subsection (a)— in paragraph (1), by inserting and commercial services after commercial products ; in paragraph (2), by adding at the end the following new subparagraph:
The head of an executive agency approved for the program, on a temporary or permanent basis, by the Director of the Office of Management and Budget. ; and in paragraph (3), by adding at the end the following new subparagraph: An executive agency approved for the program by the Director of the Office of Management and Budget. ; by amending subsection
(d)to read as follows: The head of an agency shall issue guidance for the implementation of the program under this section within that agency. Such guidance shall be issued in consultation with the Office of Management and Budget and shall be posted for access by the public. The guidance shall also include requirements for each general solicitation to be posted publicly through a means that provides access to the notice of general solicitation through the System for Award Management or subsequent Government-wide point of entry, with classified solicitations posted to the appropriate Government portal. ; by amending subsection
(e)to read as follows: The head of an agency shall report information on contracts made using procedures under this section to the Office of Management and Budget as determined by the Director of the Office of Management and Budget. The Administrator for Federal Procurement Policy shall collect and analyze data on the use of the authority under this section for the purposes of— developing and sharing best practices; gathering information on the implementation of the authority and related policy issues; and informing the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives on the use of the authority. ; in subsection (f)— in paragraph (1)(B), by striking ; and and inserting a semicolon; by redesignating paragraph
(2)as paragraph (3); and by inserting after paragraph
(1)the following new paragraph: the term executive agency has the meaning given the term in section 133 of title 41, United States Code; and ; by striking subsection (g); and by striking pilot each place it appears. The table of contents in section 2(b) of such Act and the table of contents preceding subtitle A of title VIII of such Act are each amended by striking the item relating to section 880 and inserting the following new item: Sec. 880. Programs for authority to acquire innovative commercial products, commercial technologies, and commercial services using general solicitation competitive procedures. . Congress finds that the threshold under which agencies may use simplified acquisition procedures to reduce costs, improve opportunities for qualified businesses, promote efficiency and economy, and avoid unnecessary burdens for agencies and their contractors should be updated. Section 134 of title 41, United States Code, is amended by striking $250,000 and inserting $500,000 . The Federal Acquisition Regulatory Council may apply a provision that would not otherwise be applicable below the threshold as amended by subparagraph
(A)upon a written determination that it would not be in the best interest of the Federal Government to exempt contracts and subcontracts in amounts not greater than such amended threshold from such provision, such as for national security reasons. Congress finds that the competition standard established by the Administrator of General Services for the multiple award schedule program of the General Services Administration should be updated and made consistent with the competition standard for other procurement methods, such as simplified acquisitions and negotiated procurements. The term best value is defined in the Federal Acquisition Regulation as meaning the expected outcome of an acquisition that, in the Government’s estimation, provides the greatest overall benefit in response to the requirement. Section 152(3)(B) of title 41, United States Code, is amended to read as follows: contracts and orders under such program result in the award of best value products and services for the Federal Government; . Section 3012(3)(B) of title 10, United States Code, is amended to read as follows: contracts and orders under such program result in the award of best value products and services for the Federal Government; . The Federal Acquisition Regulatory Council shall provide guidance to Federal agencies on appropriate use of the best value competition standard for the multiple award schedule program as part of the implementing regulations promulgated in connection with the amendments made by paragraph (2). Congress finds that the authority to make advance payments should be updated for purposes of enabling the most cost-effective acquisition of cloud computing, data center solutions and services, and other information and communications technology acquired on a subscription, reservation, or tenancy basis. Section 3324(d) of title 31, United States Code, is amended— in paragraph (1)(C), by striking ; and and inserting a semicolon; in paragraph (2)— by inserting or commercially available content after publication ; and by striking the period at the end and inserting ; and ; and by adding at the end the following new paragraph: charges for information and communications technology subscriptions, reservations, or tenancy, which means the sharing of computing resources in a private or public environment, including cloud environments, for which the ordering agency defines appropriate access and security standards. .
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