Sec. 856. LIMITATION ON CONVERSION OF PROCUREMENTS FROM COMMERCIAL ACQUISITION PROCEDURES
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## SEC. 856 LIMITATION ON CONVERSION OF PROCUREMENTS FROM COMMERCIAL ACQUISITION PROCEDURES **[**[10 U.S.C. 2377 note](/us/usc/t10/s2377)**]** ###
(a)Limitation ####
(1)In general Except as provided in paragraph (2), prior to converting the procurement of a commercial product or a commercial service, as defined in sections 103 and 103a, respectively, of title 41, United States Code, valued at more than $1,000,000 from commercial acquisition procedures under part 12 of the Federal Acquisition Regulation to noncommercial acquisition procedures under part 15 of the Federal Acquisition Regulation, the contracting officer for the procurement shall determine in writing that— #####
(A)the earlier use of commercial acquisition procedures under part 12 of the Federal Acquisition Regulation was in error or based on inadequate information; and #####
(B)the Department of Defense will realize a cost savings compared to the cost of procuring a similar quantity or level of such item or service using commercial acquisition procedures. ####
(2)Requirement for approval of determination by head of contracting activity In the case of a procurement valued at more than $100,000,000, a contract may not be awarded pursuant to a conversion of the procurement described in paragraph
(1)until— #####
(A)the head of the contracting activity approves the determination made under paragraph (1); and #####
(B)a copy of the determination so approved is provided to the Office of the Under Secretary of Defense for Acquisition and Sustainment. ###
(b)Factors to Be Considered In making a determination under paragraph (1), the determining official shall, at a minimum, consider the following factors: ####
(1)The estimated cost of research and development to be performed by the existing contractor to improve future products or services. ####
(2)The transaction costs for the Department of Defense and the contractor in assessing and responding to data requests to support a conversion to noncommercial acquisition procedures. ####
(3)Changes in purchase quantities. ####
(4)Costs associated with potential procurement delays resulting from the conversion. ###
(c)Procedures Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall develop procedures to track conversions of future contracts and subcontracts for improved analysis and reporting and shall revise the Defense Federal Acquisition Regulation Supplement to reflect the requirement in subsection (a). ###
(d)Reporting requirement Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the implementation of subsection (a), including any procurements converted as described in that subsection. ###
(e)Sunset The requirements of this section shall terminate 5 years after the date of the enactment of this Act.
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Sec. 856
LIMITATION ON CONVERSION OF PROCUREMENTS FROM COMMERCIAL ACQUISITION PROCEDURES
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