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TITLE 41 > CHAPTER 7 > Sec. 405.

Notes on Sec. 405.

SOURCE
Pub. L. 93-400, Sec. 6, Aug. 30, 1974, 88 Stat. 797
Pub. L. 96-83, Sec. 4, Oct. 10, 1979, 93 Stat. 649
Pub. L. 98-191, Sec. 5, Dec. 1, 1983, 97 Stat. 1326
Pub. L. 98-369, div. B, title VII, Sec. 2732(b)(1), July 18, 1984, 98 Stat. 1199
Pub. L. 100-679, Sec. 3(a), Nov. 17, 1988, 102 Stat. 4055
Pub. L. 103-355, title I, Sec. 1091(b)(2), title V, Sec. 5051(b), 5091, title VII, Sec. 7108, Oct. 13, 1994, 108 Stat. 3272, 3351, 3361, 3378
Pub. L. 104-106, div. D, title XLIII, Sec. 4307(b), 4321(h)(1), (2), 4322(a)(1), div. E, title LVI, Sec. 5607(d), Feb. 10, 1996, 110 Stat. 668, 675, 677, 702
Pub. L. 104-201, div. A, title X, Sec. 1074(f)(1), Sept. 23, 1996, 110 Stat. 2661
Pub. L. 105-85, div. A, title VIII, Sec. 851(b), title X, Sec. 1073(g)(2)(B), Nov. 18, 1997, 111 Stat. 1851, 1906
Pub. L. 105-135, title VI, Sec. 604(f)(1), Dec. 2, 1997, 111 Stat. 2634.

REFERENCES IN TEXT

The Federal Property and Administrative Services Act of 1949, referred to in subsec. (h)(1), is act June 30, 1949, ch. 288, 63 Stat. 377, as amended. Provisions of the Act relating to contracts are classified generally to subchapter IV (Sec. 251 et seq.) of chapter 4 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 471 of Title 40, Public Buildings, Property, and Works, and Tables

AMENDMENTS

1997 - Subsec. (d)(5)(J). Pub. L. 105-85, Sec. 1073(g)(2)(B)(i), substituted semicolon for period at end.

Subsec. (d)(6). Pub. L. 105-85, Sec. 1073(g)(2)(B)(ii), realigned margins.

Subsec. (d)(11). Pub. L. 105-135, Sec. 604(f)(1)(A), inserted ''qualified HUBZone small business concerns (as defined in section 632(p) of title 15),'' after ''ensure that small businesses,''.

Subsec. (d)(12). Pub. L. 105-135, Sec. 604(f)(1)(B), inserted ''qualified HUBZone small business concerns (as defined in section 632(p) of title 15),'' after ''participation by small businesses,''.

Pub. L. 105-85, Sec. 1073(g)(2)(B)(iii), substituted ''small businesses'' for ''small business'' after ''individuals, and''.

Subsec. (k). Pub. L. 105-85, Sec. 851(b), inserted ''regarding major acquisitions that is'' after ''implementing the policy''. 1996 - Subsec. (b). Pub. L. 104-106, Sec. 4322(a)(1), struck out second comma after ''subsection (a) of this section''.

Subsec. (d)(5)(A). Pub. L. 104-106, Sec. 4307(b)(2)(A), substituted ''the development of a professional acquisition workforce Government-wide'' for ''Government-wide career management programs for a professional procurement work force''.

Subsec. (d)(5)(B). Pub. L. 104-106, Sec. 4307(b)(2)(B)(i), substituted ''acquisition by the'' for ''procurement by the''.

Subsec. (d)(5)(C) to (J). Pub. L. 104-106, Sec. 4307(b)(2)(B)(ii), (iii), added subpars. (C) to (J) and struck out former subpar. (C) which read as follows: ''establish policies and procedures for the establishment and implementation of education and training programs authorized by this chapter, including the establishment and implementation of training, in conjunction with the General Services Administration, for critical procurement personnel designed to increase the participation of small business concerns owned and controlled by socially and economically disadvantaged individuals, women, and other minorities in procurement activities conducted by an executive agency.''

Subsec. (d)(6). Pub. L. 104-106, Sec. 4307(b)(3), added par. (6). Former par. (6) redesignated (7).

Subsec. (d)(7) to (10). Pub. L. 104-106, Sec. 4307(b)(1), redesignated pars. (6) to (9) as (7) to (10), respectively. Former par. (10) redesignated (11).

Subsec. (d)(11). Pub. L. 104-106, Sec. 4321(h)(2), which directed substitution of ''small businesses'' for ''small business'', could not be executed because the words ''small business'' did not appear.

Pub. L. 104-106, Sec. 4307(b)(1), redesignated par. (10) as (11). Former par. (11) redesignated (12).

Subsec. (d)(12). Pub. L. 104-106, Sec. 4307(b)(1), redesignated par. (11) as (12). Former par. (12) redesignated (13).

Subsec. (d)(13). Pub. L. 104-106, Sec. 4321(h)(1), which directed transferring par. (12) to end of subsec. (d), was executed by transferring par. (13) to end of subsec. (d) to reflect the probable intent of Congress and the redesignation of par. (12) as (13) by Pub. L. 104-106, Sec. 4307(b)(1). See below. Pub. L. 104-106, Sec. 4307(b)(1), redesignated par. (12) as (13).

Subsec. (f). Pub. L. 104-201 struck out ''the policies set forth in section 401 of this title or'' after ''inconsistent with''.

Subsec. (h)(1). Pub. L. 104-106, Sec. 5607(d), struck out ''of automatic data processing and telecommunications equipment and services or'' after ''with respect to the procurement''. 1994 - Subsec. (d)(5)(C). Pub. L. 103-355, Sec. 7108(b), added subpar. (C).

Subsec. (d)(8), (9). Pub. L. 103-355, Sec. 5091, added pars. (8) and (9) at end. Former par. (8) redesignated (12). Subsec. (d)(10), (11). Pub. L. 103-355, Sec. 7108(a), added pars. (10) and (11). Subsec. (d)(12). Pub. L. 103-355, Sec. 5091(2), redesiganted par. (8) and (12). Subsec. (j). Pub. L. 103-355, Sec. 1091(b)(2), added subsec. (j). Subsec. (k). Pub. L. 103-355, Sec. 5051(b), added subsec. (k). 1988 - Subsec. (a). Pub. L. 100-679, Sec. 3(a)(1), substituted ''procurement policies. These policies shall be implemented in a single Government-wide procurement regulation called the Federal Acquisition Regulation and shall be'' for ''procurement policies which shall be implemented in the single system of Government-wide procurement regulations and shall be''.

Subsec. (b). Pub. L. 100-679, Sec. 3(a)(2), inserted '', including any such regulations, procedures, and forms as are necessary to implement prescribed policy initiated by the Administrator under subsection (a) of this section,'' after ''timely manner'' and substituted ''Administrator shall'' for ''Administrator may''.

Subsec. (d)(4). Pub. L. 100-679, Sec. 3(a)(3), added par. (4) and struck out former par. (4) which read as follows: ''providing for a computer-based Federal Procurement Data System which shall be located in the General Services Administration (acting as executive agent for the Administrator) and shall collect, develop, and disseminate procurement data;''.

Subsec. (d)(5). Pub. L. 100-679, Sec. 3(a)(3), added par. (5) and struck out former par. (5) which read as follows: ''providing for a Federal Acquisition Institute which shall be located in the General Services Administration (acting as executive agent for the Administrator) and shall - ''(A) foster and promote Government-wide career management programs for a professional procurement work force; and ''(B) promote and coordinate Government-wide research and studies to improve the procurement process and the laws, policies, methods, regulations, procedures, and forms relating to procurement by the executive agencies;''.

Subsec. (f). Pub. L. 100-679, Sec. 3(a)(4), substituted ''The Administrator, with the concurrence of the Director of the Office of Management and Budget, and with consultation with the head of the agency or agencies concerned,'' for ''The Director of the Office of Management and Budget''. 1984 - Subsec. (e). Pub. L. 98-369 substituted ''subsection (d)'' for ''subsection (c)''. 1983 - Pub. L. 98-191 amended section generally, revising and restating as subsecs. (a), (c), (d), (e), (g), (h), and (i) provisions of former subsecs. (a), (f), (d), (e), (g), (j), and (b), respectively, and by inserting provisions set out in new subsecs. (b) and (f). 1979 - Subsec. (a). Pub. L. 96-83, Sec. 4(a), substituted provisions setting forth the responsibilities of the Administrator with respect to the development and implementation of procurement policies, the coordination of programs to improve the quality and performance of personnel, and the development of a uniform procurement system, for provisions setting forth responsibility of the Administrator for overall direction of procurement policy, and functions with respect to issuance of policy, regulations, procedures, and forms.

Subsec. (c). Pub. L. 96-83, Sec. 4(b), substituted provisions relating to development and proposal of a central management system, for provisions setting forth limitation of authority to procurement from appropriated funds and provisions relating to a study and report of procurement from nonappropriated funds.

Subsec. (d). Pub. L. 96-83, Sec. 4(c), substituted provisions setting forth the review, development, etc., functions of the Administrator with respect to procurement policies, regulations, procedures, and forms, procurement data, procurement personnel, and procurement contracts, for provisions setting forth the establishment, monitoring, etc., functions of the Administrator with respect to uniform procurement regulations, procurement policies, regulations, procedures, and forms, procurement data, and procurement personnel.

Subsec. (e). Pub. L. 96-83, Sec. 4(d), substituted provisions relating to consultation functions of the Administrator with respect to the development and implementation of the uniform procurement system, for provisions relating to the consultation functions of the Administrator with respect to the development of policies, regulations, procedures and forms to be authorized or prescribed by such Administrator.

Subsecs. (h) to (j). Pub. L. 96-83, Sec. 4(e), added subsecs. (h) to (j)

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105-135 effective Oct. 1, 1997, see section 3 of Pub. L. 105-135 set out as a note under section 631 of Title 15, Commerce and Trade

EFFECTIVE DATE OF 1996 AMENDMENT

For effective date and applicability of amendment by sections 4307(b), 4321(h)(1), (2), and 4322(a)(1) of Pub. L. 104-106, see section 4401 of Pub. L. 104-106, set out as a note under section 251 of this title.

Amendment by section 5607(d) of Pub. L. 104-106 effective 180 days after Feb. 10, 1996, see section 5701 of Pub. L. 104-106, set out as an Effective Date note under section 1401 of Title 40, Public Buildings, Property, and Works

EFFECTIVE DATE OF 1994 AMENDMENT

For effective date and applicability of amendment by Pub. L. 103-355, see section 10001 of Pub. L. 103-355, set out as a note under section 251 of this title

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-83 effective Oct. 1, 1979, see section 12 of Pub. L. 96-83, set out as a note under section 401 of this title

REPORTING OF BUNDLED CONTRACT OPPORTUNITIES

Section 414 of title IV of Pub. L. 105-135 provided that: ''(a) Data Collection Required. - The Federal Procurement Data System described in section 6(d)(4)(A) of the Office of Federal Procurement Policy Act (41 U.S.C. 405(d)(4)(A)) shall be modified to collect data regarding bundling of contract requirements when the contracting officer anticipates that the resulting contract price, including all options, is expected to exceed $5,000,000. The data shall reflect a determination made by the contracting officer regarding whether a particular solicitation constitutes a contract bundling. ''(b) Definitions. - In this section, the term 'bundling of contract requirements' has the meaning given that term in section 3(o) of the Small Business Act (15 U.S.C. 632(o)) (as added by section 412 of this subtitle).''

CONGRESSIONAL FINDINGS REGARDING CONSIDERATION OF PAST CONTRACT PERFORMANCE

Section 1091(b)(1) of Pub. L. 103-355 provided that: ''Congress makes the following findings: ''(A) Past contract performance of an offeror is one of the relevant factors that a contracting official of an executive agency should consider in awarding a contract. ''(B) It is appropriate for a contracting official to consider past contract performance of an offeror as an indicator of the likelihood that the offeror will successfully perform a contract to be awarded by that official.''

RESULTS-ORIENTED ACQUISITION PROCESS

Section 5052 of Pub. L. 103-355 provided that: ''(a) Development of Process Required. - The Administrator for Federal Procurement Policy, in consultation with the heads of appropriate Federal agencies, shall develop results-oriented acquisition process guidelines for implementation by agencies in acquisitions of property and services by the Federal agencies. The process guidelines shall include the identification of quantitative measures and standards for determining the extent to which an acquisition of items other than commercial items by a Federal agency satisfies the needs for which the items are being acquired. ''(b) Inapplicability of Process to Department of Defense. - The process guidelines developed pursuant to subsection (a) may not be applied to the Department of Defense.''

DEVELOPMENT OF DEFINITIONS REGARDING CERTAIN SMALL BUSINESS CONCERNS

Section 7107 of Pub. L. 103-355 provided that: ''(a) Review Required. - (1) The Administrator for Federal Procurement Policy shall conduct a comprehensive review of Federal laws, as in effect on November 1, 1994, to identify and catalogue all of the provisions in such laws that define (or describe for definitional purposes) the small business concerns set forth in paragraph (2) for purposes of authorizing the participation of such small business concerns as prime contractors or subcontractors in - ''(A) contracts awarded directly by the Federal Government or subcontracts awarded under such contracts; or ''(B) contracts and subcontracts funded, in whole or in part, by Federal financial assistance under grants, cooperative agreements, or other forms of Federal assistance. ''(2) The small business concerns referred to in paragraph (1) are as follows: ''(A) Small business concerns owned and controlled by socially and economically disadvantaged individuals. ''(B) Minority-owned small business concerns. ''(C) Small business concerns owned and controlled by women. ''(D) Woman-owned small business concerns. ''(b) Matters To Be Developed. - On the basis of the results of the review carried out under subsection (a), the Administrator for Federal Procurement Policy shall develop - ''(1) uniform definitions for the small business concerns referred to in subsection (a)(2); ''(2) uniform agency certification standards and procedures for - ''(A) determinations of whether a small business concern qualifies as a small business concern referred to in subsection (a)(2) under an applicable standard for purposes of contracts and subcontracts referred to in subsection (a)(1); and ''(B) reciprocal recognition by an agency of a decision of another agency regarding whether a small business concern qualifies as a small business concern referred to in subsection (a)(2) for such purposes; and ''(3) such other related recommendations as the Administrator determines appropriate consistent with the review results. ''(c) Procedures and Schedule. - (1) The Administrator for Federal Procurement Policy shall provide for the participation in the review and activities under subsections (a) and (b) by representatives of - ''(A) the Small Business Administration (including the Office of the Chief Counsel for Advocacy); ''(B) the Minority Business Development Agency of the Department of Commerce; ''(C) the Department of Transportation; ''(D) the Environmental Protection Agency; and ''(E) such other executive departments and agencies as the Administrator considers appropriate. ''(2) In carrying out subsections (a) and (b), the Administrator shall consult with representatives of organizations representing - ''(A) minority-owned business enterprises; ''(B) women-owned business enterprises; and ''(C) other organizations that the Administrator considers appropriate. ''(3) Not later than 60 days after the date of the enactment of this Act (Oct. 13, 1994), the Administrator shall publish in the Federal Register a notice which - ''(A) lists the provisions of law identified in the review carried out under subsection (a); ''(B) describes the matters to be developed on the basis of the results of the review pursuant to subsection (b); ''(C) solicits public comment regarding the matters described in the notice pursuant to subparagraphs (A) and (B) for a period of not less than 60 days; and ''(D) addresses such other matters as the Administrator considers appropriate to ensure the comprehensiveness of the review and activities under subsections (a) and (b). ''(d) Report. - Not later than May 1, 1996, the Administrator for Federal Procurement Policy shall submit to the Committees on Small Business of the Senate and the House of Representatives a report on the results of the review carried out under subsection (a) and the actions taken under subsection (b). The report shall include a discussion of the results of the review, a description of the consultations conducted and public comments received, and the Administrator's recommendations with regard to the matters identified under subsection (b).''

DATA COLLECTION THROUGH FEDERAL PROCUREMENT DATA SYSTEM

Section 10004 of Pub. L. 103-355 provided that: ''(a) Data Collection Required. - The Federal Procurement Data System described in section 6(d)(4)(A) of the Office of Federal Procurement Policy Act (41 U.S.C. 405(d)(4)(A)) shall be modified to collect from contracts in excess of the simplified acquisition threshold data identifying the following matters: ''(1) Contract awards made pursuant to competitions conducted pursuant to section 2323 of title 10, United States Code, or section 7102 of the Federal Acquisition Streamlining Act of 1994 (Pub. L. 103-355, 15 U.S.C. 644 note). ''(2) Awards to business concerns owned and controlled by women. ''(3) Number of offers received in response to a solicitation. ''(4) Task order contracts. ''(5) Contracts for the acquisition of commercial items. ''(b) Definition. - In this section, the term 'simplified acquisition threshold' has the meaning given such term in section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11)).''

PROFIT METHODOLOGY STUDY

Section 7 of Pub. L. 100-679 provided that: ''(a) In General. - The Administrator shall conduct a study to develop a consistent methodology which executive agencies should use for measuring the profits earned by government contractors on procurements, other than procurements where the price is based on adequate price competition or on established catalog or market prices of commercial items sold in substantial quantities to the general public. ''(b) Contractors' Financial Data. - The methodology developed under subsection (a) shall include adequate procedures for verifying and maintaining the confidentiality of contractors' financial data.''

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 408, 417, 421, 422 of this title; title 18 section 4124; title 31 section 6202; title 50 App. section 2154

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