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S. Hrg. 103-849 S. 1587, FEDERAL ACQUISITION STREAMLINING ACT OF 1993 JOINT HEARINGS BEFORE THE COMMITTEE ON GOVERNMENTAL AFFAIRS AND THE COMMITTEE ON ARMED SERVICES UNITED STATES SENATE ONE HUNDRED THIRD CONGRESS SECOND SESSION ON S. 1587 TO REVISE AND STREAMLINE THE ACQUISITION LAWS OF THE FEDERAL GOVERNMENT, AND FOR OTHER PURPOSES FEBRUARY 24, MARCH 10 AND 16, 1994 Printed for the use of the Committee on Governmental Affairs f S. Hrg. 103-849 S. 1587, FEDERAL ACQUISITION STREAMLINING ACT OF 1993 JOINT HEARINGS BEFORE THE COMMITTEE ON GOVERNMENTAL AFFAIRS AND THE COMMITTEE ON ARMED SERVICES UNITED STATES SENATE ONE HUNDRED THIRD CONGRESS SECOND SESSION ON S. 1587 TO REVISE AND STREAMLINE THE ACQUISITION LAWS OF THE FEDERAL GOVERNMENT, AND FOR OTHER PURPOSES FEBRUARY 24, MARCH 10 AND 16, 1994 Printed for the use of the Committee on Governmental Affairs U.S. GOVERNMENT PRINTING OFFICE 77-026cc WASHINGTON : 1994 ForsalebytheU.S.GovernmentPrintingOffice SuperintendentofDocuments,CongressionalSalesOffice,Washington,DC 20402 ISBN 0-16-046298-3 COMMITTEE ON GOVERNMENTAL AFFAIRS JOHN GLENN, Ohio, Chairman SAM NUNN, Georgia WILLIAMV. ROTH, Jr., Delaware CARL LEVIN, Michigan TED STEVENS, Alaska JIM SASSER, Tennessee WILLIAM S. COHEN, Maine DAVID PRYOR, Arkansas THAD COCHRAN, Mississippi JOSEPH I. LIEBERMAN, Connecticut JOHN McCAIN, Arizona DANIEL K. AKAKA, Hawaii ROBERT F. BENNETT, Utah BYRON L. DORGAN, NorthDakota Leonard Weiss, StaffDirector Thomas R. Sisti, Counsel John Brosnan, Counsel Franklin G. Polk, Minority StaffDirector and ChiefCounsel Michal Sue Prosser, ChiefClerk COMMITTEE ON ARMED SERVICES SAM NUNN, Georgia, Chairman J. JAMES EXON, Nebraska STROM THURMOND, South Carolina CARL LEVIN, Michigan JOHN W. WARNER, Virginia EDWARD M. KENNEDY, Massachusetts WILLIAM S. COHEN, Maine JEFF BINGAMAN, New Mexico JOHN McCAIN, Arizona JOHN GLENN, Ohio TRENT LOTT, Mississippi RICHARD C. SHELBY, Alabama DAN COATS, Indiana ROBERT C. BYRD, West Virginia BOB SMITH, New Hampshire BOB GRAHAM, Florida DIRKKEMPTHORNE, Idaho CHARLES C. ROBB, Virginia LAUCH FAIRCLOTH, North Carolina JOSEPH I. LIEBERMAN, Connecticut KAY BAILEY HUTCHISON, Texas RICHARD H. BRYAN, Nevada Arnold L. Punaro, StaffDirector Richard L. Reynard, StaffDirectorfortheMinority (ID CONTENTS Openingstatements: „ SenatorGlenn 1,54,99 SenatorRoth •••• 4,55 SenatorNunn 5,53,100 SenatorThurmond 7,101 SenatorLevin 8 SenatorCohen 1° SenatorBingaman 11 SenatorPryor 12 Prepared statements: SenatorRoth 56 SenatorThurmond 66 SenatorSmith 71 SenatorPryor 74 SenatorRoth 121 WITNESSES Thursday, February 24, 1994 StevenJ. Kelman,Administrator, Office ofFederalProcurementPolicy 14 John M. Deutch, Under Secretary ofDefense for Acquisition and Technology, U.S. Department ofDefense 19 RogerJohnson,Administrator, GeneralServicesAdministration 23 Thursday, March 10, 1994 RobertMurphy,ActingGeneral Counsel, U.S.AccountingOffice, accompanied by David Cooper, Director, Acquisition Policy, Technology and Competitive- ness, and William Woods, Assistant General Counsel, National Security and InternationalAffairs Division 57 DerekVander Schaaf, Deputy InspectorGeneral, DepartmentofDefense 76 Donald J. Kinlin, Esq., Chairman, Public Contract Law Section, American BarAssociation, Dayton, OH 80 ErikPages, Business ExecutivesforNational Security, Washington, DC 83 Wednesday, March 16, 1994 Sam F. Iacobellis, Executive Vice President, Rockwell International Corpora- tion, accompanied by Alan L. Chvotkin, Corporate Director ofGovernment Relations and SeniorCounsel, Sundstrand Corporation 102 Phillip Odeen, Presidentand ChiefExecutive Officer, BDM International 105 VerleHammond, President, Innovative LogisticsTechniques 108 Parren J. Mitchell, Chairman, Minority Business Enterprise Legal Defense and Education Fund 126 John Statgaj, President, SmallBusiness Legislative Council 129 NicholasReynolds, President, IndependentDefense ContractorsAssociation ... 131 Allan Arlow, President and Chief Executive Officer, Computer and Commu- nications IndustryAssociation 139 Todd S. Ramsey, Vice President, IBM US-Federal, representing Information TechnologyAssociation ofAmerica 141 Rhett Dawson, President, Computer Business Equipment Manufacturers As- sociation 143 Merritt R. Marquardt, Chairman, Integrated Dual-Use Commercial Compa- nies, accompanied by FrankAbbott, DuPont, andWard Collins, Dow Chem- ical 147 (III) IV Page Alphabetical List of Witnesses Arlow,Allan: Testimony 139 Prepared statement 216 Dawson, Rhett: Testimony 143 Prepared statement 227 Deutch, JohnM.: Testimony 19 Prepared statement 171 Hammond,Verle: Testimony 108 Iacobellis, SamF.: Testimony 102 Johnson, Roger: Testimony 23 Prepared statement 177 Kelman, SevenJ.: Testimony 14 Prepared statement 157 Kinlin, DonaldJ.: Testimony 80 Marquardt, MerrittR.: Testimony 147 Prepared statement 232 Mitchell, ParrenJ.: Testimony 126 Prepared statement 584 Murphy, Robert: Testimony 57 Prepared statement 179 Odeen, Phillip: Testimony 105 Prepared statement 198 Pages, Erik: Testimony 83 Prepared statement 189 Ramsey, ToddS.: Testimony 141 Prepared statement 223 Reynolds, Nicholas: Testimony 131 Prepared statement 599 Satagaj, John: Testimony 129 Prepared statement 201 VanderSchaaf, Derek: Testimony 76 Prepared statement 184 APPENDIX Prepared statements ofwitnessesinorderofappearance 157 Questions andAnswers (GSA) 192 Letter dated Dec. 15, 1993 to Senator Glenn—from David O. Nellemann, Director, Information Resources Management National Security and Inter- nationalAffairs, GAO 195 Statement of Philip A. Odeen, President and Chief Executive Officer, BDM International, Inc 198 StatementofJohn Satagaj, President, Small BusinessLegislative Council 201 Letter dated June 21, 1993 to Allan V. Burman, Administrator, Office of FederalProcurementPolicy, OMB 214 Letter dated Nov. 17, 1993 to Colette Nelson, Chairman, Procurement Com- mittee, Small Business Legislative Council, fromAllanV. Burman 215 Letter dated Nov. 17, 1993 to Mrs. Eleanor R. Spector, Director, Defense Procurement, fromAllanV. Burman 216