Section 3 (e) defined "property" to exclude real property and leasehold interests therein. S.3005 included leasehold interests in real property. RECOMMENDATION It is recommended that leasehold interests in real REASONS FOR RECOMMENDATION 1. The Government acquired by lease a considerable amount This section requires that property and services will be acquired in accordance with the policies in Section 2 and will utilize one of the procurement methods authorized in Section 101(a). RECOMMENDATION The Section recommends that this section delete the reference to Section 2. REASONS FOR RECOMMENDATION 1. The selection of the procurement method has no relationship to the policy statements in Section 2. 2. The Section believes that it is inappropriate to co-mingle policy and procedure. SECTION 101(a)(2) and (a) (3) RECOMMENDATION The word "competitive" should be deleted. The word "competitive" should also be deleted from the headings of Titles III and IV. REASON FOR RECOMMENDATION 1. 2. Single Source Exceptions apply to Title II, Title III and Title IV. The headings to the titles should be consistent with SECTION 101(b) This section provides that the methods described in Section 101(a) are "equally valid alternatives" and permit the Office of Federal Procurement Policy to establish criteria for the use of competitive negotiations, formal advertised procurement or competitive small purchase methods, in addition to those set forth in the statute. RECOMMENDATION Revise this section to read: "The method of acquiring property or services shall be selected on the basis of the nature of the product or service being acquired, the circumstances of the acquisition, and the policies set forth in this Act as implemented by criteria established by OFPP." REASONS FOR RECOMMENDATION 1. The alternatives are not equally valid. 2. OFPP should not have the authority to change the law. SECTION 102 - REGULATORY COMPLIANCE This section requires the Administrator of OFPP to develop one regulation for all federal agencies within two years after the date of enactment. The Section recommended before that a period of two years was unacceptable and recommended five years in lieu thereof. As before, there are seven criteria which if met may require the use of formal advertised procurement. The criteria are exactly the same as those set forth in S.3005. The major change in this section is that the word "should" has been inserted in the introductory language rather than the word "shall." It appears that the use of the criteria is not mandatory but only suggested and that under Section 101 the Administrator of OFPP can establish mandatory criteria. The insertion of the word "should" in lieu of "shall" modulates the effect of this change. RECOMMENDATION The Section agrees with the language provided the SECTIONS 202 & 203 - INVITATION FOR SEALED BIDS Paragraphs (a) and (b) of Section 202 are the same as before. Paragraphs (c), (d) and (e) are substantial changes from the past. Essentially, where practical, agencies should use functional terms and specifications. If definitive product specifications must be used then the HPA must approve their use. Finally, two step procurement is suggested as the method to be used in permitting functional or performance specifications prior to pricing. The Section agrees with this approach and also agrees with Section 203. TITLE III SECTION 301 ACQUISITION BY COMPETITIVE NEGOTIATION CRITERIA FOR USE This section is the same as before. SECTION 302 - SOLICITATIONS Section 302 (a) is the same as before. Section 302 (b) (1) and (2) has been changed substantially. There is a new requirement that if price is included as a primary or significant factor, the Government's evaluation shall be based to the maximum extent practicable on the "total cost" to meet the federal need and not on the cost of completing any initial or partial segments of activity. In the Definition Section the words "total cost" include maintenance, disposal, training, etc. It appears to the Section that except in a systems type procurement it would be very difficult to include these intangible costs to the Government in a competitive negotiation. RECOMMENDATION The Section recommends that the following language be inserted in lieu of 302 (b) (1) and (2): "(b) Each solicitation shall include the method to be employed and the importance of the factors to be used during competitive evaluation and for final selection. The Government's cost evaluation should be based, to the maximum extent practicable, on the total cost to meet the Federal need as determined by objective cost factors set forth in the solicitation. Changes in the Government's requirements, changes in the methodology of evaluation and selection, and changes in the evaluation factors shall promptly be communicated in writing to all competitors." REASONS FOR RECOMMENDATION 1. 2. 3. To evaluate the cost of training, maintenance, disposal, The Section feels it would be both impractical and costly for the Government to estimate the "total cost" where the quantity to be purchased is not substantial. The Section believes that the language it recommends expresses the intent of Senator Chiles and his staff. SECTION 302 (c) Section 302 (c) includes a requirement that solicitations shall not prescribe performance characteristics based on a single approach and solications shall not prescribe technical characteristics obtained from any potential source. RECOMMENDATION It is recommended that 302 (c) be deleted and changed as follows: 302 (c) To the extent practicable and consistent with (1) (2) set forth the public need in functional terms not be based on a single approach." REASONS FOR RECOMMENDATION 1. 2. It is not uncommon that the Government seeks to buy There are occasions where the solicitation must prescribe SECTION 302 (d) This section is the same as before. SECTION 303 EVALUATION, AWARD AND NOTIFICATIONS |