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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: November 8, 2000

FROM: Barry McVay, CPCM

SUBJECT: Enactment of the National Defense Authorization Act of Fiscal Year 2001

AGENCIES: Department of Defense (DOD)

ACTION: Editor's Analysis

SYNOPSIS: On October 30, 2000, President Clinton signed Public Law 106-398, the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001, which contains several acquisition-related provisions, some of which apply governmentwide.

ANALYSIS: The following are some of the key acquisition-related provisions of the $310 billion Fiscal Year 2001 Defense Authorization Act (all of which are in Title VIII, Acquisition Policy, Acquisition Management, and Related Matters):

• Section 801, Department of Defense Acquisition Pilot Programs: The authority to conduct acquisition pilot programs (originally set by Section 5064 of the Federal Acquisition Streamlining Act of 1994 (Public Law 103-355) to expire September 30, 1998) is extended until October 1, 2007.
  
  
• Section 802, Multiyear Services Contracts: Language is added to Title 10 of the U.S. Code, Section 2306 (10 U.S.C. 2306) clarifying that the authority to enter into multiyear contracts up to five years in length also applies to services and related supplies.
  
  
• Section 807, Eligibility of Small Business Concerns Owned and Controlled by Women for Assistance Under the Mentor-Protege Program: Authorizes women-owned and controlled businesses to participate in the DOD mentor-protege program.
  
  
• Section 808, Qualifications Required for Employment and Assignment in Contracting Positions: Requires that new military members in contracting have a baccalaureate degree, 24 semester credit hours in business courses, or pass an examination that demonstrates the necessary skills, knowledge, or abilities.
  
  
• Section 810, Procurement Notice of Contracting Opportunities Through Electronic Means: Permits electronic posting of solicitation notices "through the single government-wide point of entry designated in the Federal Acquisition Regulation."
  
  
• Section 813, Appropriate Use of Requirements Regarding Experience and Education of Contractor Personnel in the Procurement of Information Technology Services: Requires that the Federal Acquisition Regulation (FAR) be amended within 180 days (that is, by April 28, 2001) to "provide that solicitations for the procurement of information technology services shall not set forth any minimum experience or educational requirement for proposed contractor personnel in order for a bidder to be eligible for award of a contract unless (1) the contracting officer first determines that the needs of the executive agency cannot be met without any such requirement; or (2) the needs of the executive agency require the use of a type of contract other than a performance-based contract."
  
  
• Section 821, Improvements in Procurements of Services: Requires that the FAR be amended within 180 days "to establish a preference for use of contracts and task orders for the purchase of services in the following order of precedence: (1) a performance-based contract or performance-based task order that contains firm fixed prices for the specific tasks to be performed; (2) any other performance-based contract or performance-based task order; (3) any contract or task order that is not a performance-based contract or a performance-based task order." To provide an incentive to use performance-based service contracts, a DOD performance-based service contract or task order may be treated as a contract for commercial items if the contract or task order is valued at $5,000,000 or less.
  
  
• Section 832, Study of Policies and Procedures for Transfer of Commercial Activities: Requires the General Accounting Office (GAO) to "convene a panel of experts to study the policies and procedures governing the transfer of commercial activities for the federal government from government personnel to a federal contractor, including (1) procedures for determining whether functions should continue to be performed by government personnel; (2) procedures for comparing the costs of performance of functions by government personnel and the costs of performance of such functions by federal contractors; (3) implementation by the Department of Defense of the Federal Activities Inventory Reform Act of 1998 (Public Law 105-270; 31 U.S.C. 501 note); and (4) procedures of the Department of Defense for public-private competitions pursuant to the Office of Management and Budget Circular A-76."
  
  
• Section 833, Study and Report on Practice of Contract Bundling in Military Construction Contracts: Requires the GAO to conduct a study regarding the use of "contract bundling" in military construction contracts, and to report the results of the study to Congress by February 1, 2001.
  
  
• Section 834, Requirement to Conduct Study on Contract Bundling: Requires DOD to conduct a study the effects "contract bundling" has on small business concerns, small disadvantaged businesses, women-owned small businesses, and concerns in historically underutilized business zones (HUBZones), and to report the results of the study to Congress before DOD submits its budget request for Fiscal Year 2002.

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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