Federal Acquisition Improvement Act of 1993 : hearing before the Legislation and National Security Subcommittee of the Committee on Government Operations, House of Representatives, One Hundred Third Congress, first session, on H.R. 2238, to amend laws rel

194 Pages·1993·5 MB·English

by  United States. Congress. House. Committee on Government Operations. Legislation and National Security Subcommittee

^
AQ
FEDERAL IMPROVEMENT OF
ACQUISITION
j£»£^____
Y 4. G 74/7: AC 7/6 ^
Federal Acquisition Inprovenent Act...
HEARING
BEFORE THE
LEGISLATION AND NATIONAL
SECURITY SUBCOMMITTEE
OF THE
COMMITTEE ON
GOVERNMENT OPERATIONS
HOUSE OF REPRESENTATIVES
ONE HUNDRED THIRD CONGRESS
FIRST SESSION
ON
2238
xx.rv*
TO AMEND LAWS RELATING TO FEDERAL PROCUREMENT, TO AUTHOR-
IZE FUNCTIONS AND ACTIVITIES UNDER THE FEDERAL PROPERTY
AND ADMINISTRATIVE SERVICES ACT OF 1949, AND FOR OTHER PUR-
POSES
MAY
25, 1993
IVinted for the use of the Committee on Government Operations
26
-^U
U.S. GOVERNMENT PRINTING OFFICE
72-174 CC WASHINGTON : 1993
ForsalebytheU.S.GovernmentPrintingOffice
SuperintendentofDocuments,CongressionalSalesOffice,Washington,DC 20402
ISBN 0-16-0A152A-1

^— AQ
^ FEDERAL IMPROVEMENT OF
ACQUISITION
4. e 74/7: AC 7/6
deral Acquisition Inprovenent Act...
HEARING
BEFORE THE
LEGISLATION AND NATIONAL
SECURITY SUBCOMMITTEE
OF THE
COMMITTEE ON
GOVERNMENT OPERATIONS
HOUSE OP REPRESENTATIVES
ONE HUNDRED THIRD CONGRESS
FIRST SESSION
ON
H.R. 2238
TO AMEND LAWS RELATING TO FEDERAL PROCUREMENT, TO AUTHOR-
IZE FUNCTIONS AND ACTIVITIES UNDER THE FEDERAL PROPERTY
AND ADMC^ISTRATIVE SERVICES ACT OF AND FOR OTHER PUR-
1949,
POSES
MAY
25, 1993
Printed for the use of the Committee on Government Operations
U.S. GOVERNMENT PRINTING OFFICE
72-174 CC WASHINGTON : 1993
ForsalebytheU.S.GovernmentPrintingOffice
SuperintendentofDocuments,CongressionalSalesOffice,Washington,DC 20402
ISBN 0-16-0A1524-1
COMMITTEE ON GOVERNfMENT OPERATIONS
JOHNCONYERS, Jr.. Michigan, Chairman
CARDISS COLLINS. Hlinois WILLIAM F. CLINGER, Jr., Pennsylvania
GLENN ENGLISH, Oklahoma AL MCCANDLESS, California
HENRY A. WAXMAN, California J. DENNIS HASTERT, Illinois
MIKE SYNAR, Oklahoma JON L. KYL, Arizona
STEPHEN L. NEAL, North Carolina CHRISTOPHERSHAYS, Connecticut
TOM LANTOS. California STEVEN SCHIFF, New Mexico
MAJOR R. OWENS, New York C. CHRISTOPHER COX. California
EDOLPHUS TOWNS, New York CRAIG THOMAS, Wyoming
JOHN M. SPRATT, JR. South Carolina ILEANA ROS-LEHTINEN, Florida
GARY A. CONDIT. California RONALD K. MACHTLEY, Rhode Island
COLLIN C. PETERSON, Minnesota DICK ZIMMER, New Jersey
KAREN L. THURMAN, Florida WILLIAM H. ZELIFF, JR, New Hampshire
BOBBY L. RUSH, niinois JOHN M. McHUGH. New York
CAROLYN B. MALONEY, New York STEPHEN HORN. California
THOMAS M. BARRETT, Wisconsin DEBORAH PRYCE. Ohio
DONALD M. PAYNE, New Jersey JOHN L. MICA. Florida
FLOYD H. FLAKE. New York
JAMES A. HAYES, Louisiana BERNARD SANDERS. Vermont
CRAIG A. WASHINGTON, Texas (Independent)
BARBARA-ROSE COLLINS, Michigan
CORRINE BROWN. Florida
MARJORIE MARGOLIES-MEZVINSKY,
Pennsylvania
LYNN C. WOOLSEY. California
Julian Epstein. StaffDirector
CharlesC. Wheeler III. Chiefinvestigator
Robin Y. Jackson. AasociaU Counsel
MattFhreawncResFlC.etTcehreRrE,IX,M.inSotraiftfyAsstsaifsftaDnitrector
ELL£N B. Brown, Minority Procurement Counsel
Legislation and National Security Subcommittee
JCffiNCONYERS, jR, Michigan, Chairman
CARDISS COLLINS, Hlinois AL McCANDLESS. California
GLENN ENGLISH. Oklahoma WILLIAM F. CLINGER, Jr. Pennsylvania
STEPHEN L. NEAL, North Carolina JON L. KYL. Arizona
CAROLYN B. MALONEY, New York DICK ZIMMER. New Jersey
TOM LANTOS. California
CORRINE BROWN. Florida
RobertJ. KURZ, Deputy StaffDirector
Ellen B. Brown, Minority Procurement Counsel
(»)
CONTENTS
Page
Hearingheldon May 25, 1993 1
Text ofH.R. 2238 7
Statementof:
Biddle, Stephanie, president. Computer & Communications Industry As-
sociation, accompaniedby David Cohen, counsel, Cohen & White 119
Burman, Allan V., Administrator, Office of Federal Procurement Policy,
Office ofManagement and Budget 87
Early, William B., Jr., Acting Chief Financial Officer, General Services
Administration 81
English, Hon. Glenn, a Representative in Congress from the State of
Oklahoma, and acting chairman, Legislation and National Security
Subcommittee: Opening statement 1
Heinemeier, Dan C., vice president, government division, Electronic In-
dustries Association 135
Hunter, Robert, associate general counsel. General AccountingOflice 69
James, Luanne, president, Information Technology Association ofAmer-
ica Ill
Moflitt, Robert J., Associate Administrator for Procurement Assistance,
U.S. Small Business Administration 98
Nelson, Colette, chairman, procurementcommittee. Small Business Legis-
lative Council 161
Letters, statements, etc., submitted forthe record:
Biddle, Stephanie, president, Computer & Communications Industry As-
sociation: Prepared statement 121
Burman, Allan V., Administrator, OfTice of Federal Procurement Policy,
Office ofManagement and Budget: Prepared statement 89
Clinger, Hon. William F., Jr., a Representative in Congress from the
State ofPennsylvania: Prepared statement 67
Coiwers, Hon. John, Jr., a Representative in Congress from the State
of Michigan, and chairman, Legislation and National Security Sub-
committee: Prepared statement 2
Earlv, William B., Jr., Acting Chief Financial Officer, General Services
Administration: Prepared statement 83
English, Hon. Glenn, a Representative in Congress from the State of
Oklahoma, and acting chairman. Legislation and National Security
Subcommittee: Prepared statement 64
Heinemeier, Dan C, vice president, government division. Electronic In-
dustries Association: Prepared statement 137
Hunter, Robert, associate general counsel. General Accounting Office:
Prepared statement 71
James, Luanne, president. Information Technology Association ofAmer-
ica: Prepared statement 114
Moffitt, Robert J., Associate Administrator for Procurement Assistance,
U.S. Small Business Administration: Prepared statement 100
Nelson, Colette, chairman, procurementcommittee, Small Business Legis-
lative Council: Prepared statement 163
(III)

FEDERAL IMPROVEMENT ACT
ACQUISITION
OF
1993
MAY
TUESDAY, 25, 1993
House of Representatives,
Legislation and National Security Subcommittee
OF the Committee on Government Operations,
Washington, DC.
The subcommittee met, pursuant to notice, at 10 a.m., in room
2154, Raybum House Office Building, Hon. Glenn English (acting
chairman ofthe subcommittee) presiding.
Present: Representatives Glenn English, Al McCandless, and
William F. dinger, Jr.
Also present: Robert J. Kurz, deputy staff director; Charles C.
Wheeler HI, chiefinvestigator; Robin Y. Jackson, associate counsel;
Frances C. Terrell, staff assistant; Matthew R. Fletcher, minority
staff director; and Ellen B. Brown, minority procurement counsel.
OPENING STATEMENT OF ACTING CHAIRMAN ENGLISH
Mr. English. The hearing will come to order.
I want to welcome everyone to the subcommittee hearing on H.R.
2238, the Federal Acquisition Improvement Act of 1993, which was
introduced yesterday hy Chairman Conyers and cosponsored by the
Armed Services Committee Chairman, Chairman Dellums.
This bill is based on H.R. 3161, the Federal Property and Admin-
istrative Services Authorization Act of 1992, which was passed by
the House late in the 102d Congress. Its provisions reflect long
months of debate and compromise by the Government Operations
and Armed Services Committees, together with industry, the execu-
tive branch, and other participants of the Federal procurement
process.
Timely enactment of this legislation would provide real and im-
mediate improvements by encouraging commercial product acquisi-
tion; enhancing competition and reducing paperwork; strengthen-
ing the bid protest process; streamlining and simplifying thousands
of small purchases; and reserving almost $3 billion of additional
government business for small firms.
I want to say also that Chairman Conyers has a statement, and
I would ask unanimous consent at this time to enter his entire
written statement and make it a part ofthe record.
[The prepared statement of Mr. Conyers, and the bill H.R. 2238
follow:]
(1)
OPEMIlia STATBKBMT
OP TKB
HOHOKABLB JOHH COHYERS, Jit.
CHAIRMIUI
COMMITTBE OH OOVERlOfEMT 0PERATI0H8
SDBCOmaTTBB OH LBGISLATIOH AHD HATZOHAL SBCURZTY
OH
THB •*PBDBUa. ACQUI8ITI0H UCPROVBMEHT ACT OP 1993**
MAT 25, 1993
Good norning ladies and gentleman, and welcone to the
Subconunittee hearing on the "Federal Acquisition Improvement Act
of 1993", which I eun sponsoring with Chairman Dellums of the
Committee on Armed Services.
This bill is based on H.R. 3161 (the "Federal Property and
Administrative Services Authorization Act of 1992") which was
passed by the House late in the 102nd Congress. Its provisions
reflect long months of debate and compromise by the Government
Operations and Armed Services Committees together with industry,
the Executive Branch, and other participants in the Federal
procurement process. Timely enactment of this legislation would
provide real and immediate improvements by (1) encouraging
commercial product acquisition; (2) enhancing competition and
reducing paperwork; (3) strengthening the bid protest process;
(4) streamlining and simplifying thousands of small purchases;
and (5) reserving almost $3 billion of additional government
business for small firms.
Consideration of this bill is an important first step in a
comprehensive procurement reform program that Chairman Dellums
2
and I plan to undertake this Congress. Clearly, additional work
will be needed to address issues raised by the Defense
Department's Section 800 panel, the Administration's National
Performance Review, and the wealth of oversight work performed by
committees in both chambers of Congress. I am confident that a
thorough and balanced approach to reform will allow us to make
improvements without neglecting principles which have served the
taxpayers well. The challenge, in my view, is to simplify the
process without abandoning provisions that ensure fairness,
competition, and integrity.
As the Chair of this Committee, I have become all too
familiar with the many problems that plague the Federal
procurement process. For example, the Federal Government has a
common practice of buying expensive, specially-designed products
when off-the-shelf, commercial products would do the job just as
well. In this era of fiscal restraint, the Federal Government
must stop "reinventing the wheel" and learn to depend on the wide
array of products and services sold to the general public on a
routine basis by thousands of innovative companies.
In addition to encouraging Federal agencies to buy
commercial products, the bill will ensure that offerors have a
clear understanding of the factors used by the Government to
select awardees, and will make certain that price is always a
factor as the government determines which company offers the
3
"best value." The bill also will significantly reduce the
paperwork burden on industry by raising the threshold for
obtaining cost or pricing data from $100,000 to $500,000, and by
prohibiting the collection of such data when adequate price
competition exists.
The legislation also proposes to increase the small purchase
threshold from $25,000 to $50,000. This is a controversial
change, but I believe, if implemented effectively, it will
greatly simplify and streamline the procurement process for
thousands of small purchases, and will substantially increase the
number and dollar value of Federal procurements that are reserved
for small businesses. I intend to work closely with the small
business community to ensure that the final bill, in fact,
accomplishes this important goal.
The bill further provides for a small purchase threshold
increase to $100,000 once an agency establishes and implements a
system by which solicitations can be made through the use of an
electronic data interchange system (EDI) . EDI is intended to
provide prospective offerors, especially small businesses and
small businesses owned and controlled by socially and
economically disadvantaged persons, with improved access to
information regarding small purchase procurement opportunities.