1. U.S. Code
  2. title 41
  3. subtitle I
  4. chapter 11
  5. subchapter II
  6. § 1123

Collapse to view only § 1123. Small business concerns

§ 1121. General authority
(a)Overall Direction and Leadership.—The Administrator shall provide overall direction of procurement policy and leadership in the development of procurement systems of the executive agencies.
(b)Federal Acquisition Regulation.—To the extent that the Administrator considers appropriate in carrying out the policies and functions set forth in this division, and with due regard for applicable laws and the program activities of the executive agencies, the Administrator may prescribe Government-wide procurement policies. The policies shall be implemented in a single Government-wide procurement regulation called the Federal Acquisition Regulation.
(c)Policies To Be Followed by Executive Agencies.—
(1)Areas of procurement for which policies are to be followed.—The policies implemented in the Federal Acquisition Regulation shall be followed by executive agencies in the procurement of—
(A) property other than real property in being;
(B) services, including research and development; and
(C) construction, alteration, repair, or maintenance of real property.
(2)Procedures to ensure compliance.—The Administrator shall establish procedures to ensure compliance with the Federal Acquisition Regulation by all executive agencies.
(3)Application of other laws.—The authority of an executive agency under another law to prescribe policies, regulations, procedures, and forms for procurement is subject to the authority conferred in this section and sections 1122(a) to (c)(1), 1125, 1126, 1130, 1131, and 2305 of this title.
(d)When Certain Agencies Are Unable To Agree or Fail To Act.—In any instance in which the Administrator determines that the Department of Defense, the National Aeronautics and Space Administration, and the General Services Administration are unable to agree on or fail to issue Government-wide regulations, procedures, and forms in a timely manner, including regulations, procedures, and forms necessary to implement prescribed policy the Administrator initiates under subsection (b), the Administrator, with due regard for applicable laws and the program activities of the executive agencies and consistent with the policies and functions set forth in this division, shall prescribe Government-wide regulations, procedures, and forms which executive agencies shall follow in procuring items listed in subsection (c)(1).
(e)Oversight of Procurement Regulations of Other Agencies.—The Administrator, with the concurrence of the Director of the Office of Management and Budget, and with consultation with the head of the agency concerned, may deny the promulgation of or rescind any Government-wide regulation or final rule or regulation of any executive agency relating to procurement if the Administrator determines that the rule or regulation is inconsistent with any policies, regulations, or procedures issued pursuant to subsection (b).
(f)Limitation on Authority.—The authority of the Administrator under this division shall not be construed to—
(1) impair or interfere with the determination by executive agencies of their need for, or their use of, specific property, services, or construction, including particular specifications for the property, services, or construction; or
(2) interfere with the determination by executive agencies of specific actions in the award or administration of procurement contracts.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3684.)

CITE AS: 41 USC 1121

§ 1122. Functions
(a)In General.—The functions of the Administrator include—
(1) providing leadership and ensuring action by the executive agencies in establishing, developing, and maintaining the single system of simplified Government-wide procurement regulations and resolving differences among the executive agencies in developing simplified Government-wide procurement regulations, procedures, and forms;
(2) coordinating the development of Government-wide procurement system standards that executive agencies shall implement in their procurement systems;
(3) providing leadership and coordination in formulating the executive branch position on legislation relating to procurement;
(4)
(A) providing for and directing the activities of the computer-based Federal Procurement Data System (including recommending to the Administrator of General Services a sufficient budget for those activities), which shall be located in the General Services Administration, in order to adequately collect, develop, and disseminate procurement data; and
(B) ensuring executive agency compliance with the record requirements of section 1712 of this title;
(5) providing for and directing the activities of the Federal Acquisition Institute established under section 1201 of this title, including recommending to the Administrator of General Services a sufficient budget for such activities.1
1 So in original. The period probably should be a semicolon.
(6) administering section 1703(a) to (i) of this title;
(7) establishing criteria and procedures to ensure the effective and timely solicitation of the viewpoints of interested parties in the development of procurement policies, regulations, procedures, and forms;
(8) developing standard contract forms and contract language in order to reduce the Federal Government’s cost of procuring property and services and the private sector’s cost of doing business with the Federal Government;
(9) providing for a Government-wide award to recognize and promote vendor excellence;
(10) providing for a Government-wide award to recognize and promote excellence in officers and employees of the Federal Government serving in procurement-related positions;
(11) developing policies, in consultation with the Administrator of the Small Business Administration, that ensure that small businesses, qualified HUBZone small business concerns (as defined in section 31(b) of the Small Business Act), small businesses owned and controlled by socially and economically disadvantaged individuals, and small businesses owned and controlled by women are provided with the maximum practicable opportunities to participate in procurements that are conducted for amounts below the simplified acquisition threshold;
(12) developing policies that will promote achievement of goals for participation by small businesses, small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns (as defined in section 31(b) of the Small Business Act), small businesses owned and controlled by socially and economically disadvantaged individuals, and small businesses owned and controlled by women; and
(13) completing action, as appropriate, on the recommendations of the Commission on Government Procurement.
(b)Consultation and Assistance.—In carrying out the functions in subsection (a), the Administrator—
(1) shall consult with the affected executive agencies, including the Small Business Administration;
(2) with the concurrence of the heads of affected executive agencies, may designate one or more executive agencies to assist in performing those functions; and
(3) may establish advisory committees or other interagency groups to assist in providing for the establishment, development, and maintenance of a single system of simplified Government-wide procurement regulations and to assist in performing any other function the Administrator considers appropriate.
(c)Assignment, Delegation, or Transfer.—
(1)To administrator.—Except as otherwise provided by law, only duties, functions, or responsibilities expressly assigned by this division shall be assigned, delegated, or transferred to the Administrator.
(2)By administrator.—
(A)Within office.—The Administrator may make and authorize delegations within the Office of Federal Procurement Policy that the Administrator determines to be necessary to carry out this division.
(B)To another executive agency.—The Administrator may delegate, and authorize successive redelegations of, an authority, function, or power of the Administrator under this division (other than the authority to provide overall direction of Federal procurement policy and to prescribe policies and regulations to carry out the policy) to another executive agency with the consent of the head of the executive agency or at the direction of the President.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3685; Pub. L. 112–81, div. A, title VIII, § 864(b)(3), Dec. 31, 2011, 125 Stat. 1524; Pub. L. 115–91, div. A, title XVII, § 1701(a)(4)(F)(i), Dec. 12, 2017, 131 Stat. 1796.)

CITE AS: 41 USC 1122

§ 1123. Small business concerns
In formulating the Federal Acquisition Regulation and procedures to ensure compliance with the Regulation, the Administrator, in consultation with the Small Business Administration, shall—
(1) conduct analyses of the impact on small business concerns resulting from revised procurement regulations; and
(2) incorporate into revised procurement regulations simplified bidding, contract performance, and contract administration procedures for small business concerns.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3687.)

CITE AS: 41 USC 1123

§ 1124. Tests of innovative procurement methods and procedures
(a)In General.—The Administrator may develop innovative procurement methods and procedures to be tested by selected executive agencies. In developing a program to test innovative procurement methods and procedures under this subsection, the Administrator shall consult with the heads of executive agencies to—
(1) ascertain the need for and specify the objectives of the program;
(2) develop the guidelines and procedures for carrying out the program and the criteria to be used in measuring the success of the program;
(3) evaluate the potential costs and benefits which may be derived from the innovative procurement methods and procedures tested under the program;
(4) select the appropriate executive agencies or components of executive agencies to carry out the program;
(5) specify the categories and types of products or services to be procured under the program; and
(6) develop the methods to be used to analyze the results of the program.
(b)Approval of Executive Agencies Required.—A program to test innovative procurement methods and procedures may not be carried out unless approved by the heads of the executive agencies selected to carry out the program.
(c)Request for Waiver of Law.—If the Administrator determines that it is necessary to waive the application of a provision of law to carry out a proposed program to test innovative procurement methods and procedures under subsection (a), the Administrator shall transmit notice of the proposed program to the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate and request that the Committees take the necessary action to provide that the provision of law does not apply with respect to the proposed program. The notification to Congress shall include—
(1) a description of the proposed program (including the scope and purpose of the proposed program);
(2) the procedures to be followed in carrying out the proposed program;
(3) the provisions of law affected and the application of any provision of law that must be waived in order to carry out the proposed program; and
(4) the executive agencies involved in carrying out the proposed program.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3688.)

CITE AS: 41 USC 1124

§ 1125. Recipients of Federal grants or assistance
(a)Authority.—With due regard to applicable laws and the program activities of the executive agencies administering Federal programs of grants or assistance, the Administrator may prescribe Government-wide policies, regulations, procedures, and forms that the Administrator considers appropriate and that executive agencies shall follow in providing for the procurement, to the extent required under those programs, of property or services referred to in section 1121(c)(1) of this title by recipients of Federal grants or assistance under the programs.
(b)Limitation.—Subsection (a) does not—
(1) permit the Administrator to authorize procurement or supply support, either directly or indirectly, to a recipient of a Federal grant or assistance; or
(2) authorize action by a recipient contrary to State and local law in the case of a program to provide a Federal grant or assistance to a State or political subdivision.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3688.)

CITE AS: 41 USC 1125

§ 1126. Policy regarding consideration of contractor past performance
(a)Guidance.—The Administrator shall prescribe for executive agencies guidance regarding consideration of the past contract performance of offerors in awarding contracts. The guidance shall include—
(1) standards for evaluating past performance with respect to cost (when appropriate), schedule, compliance with technical or functional specifications, and other relevant performance factors that facilitate consistent and fair evaluation by all executive agencies;
(2) policies for the collection and maintenance of information on past contract performance that, to the maximum extent practicable, facilitate automated collection, maintenance, and dissemination of information and provide for ease of collection, maintenance, and dissemination of information by other methods, as necessary;
(3) policies for ensuring that—
(A) offerors are afforded an opportunity to submit relevant information on past contract performance, including performance under contracts entered into by the executive agency concerned, other departments and agencies of the Federal Government, agencies of State and local governments, and commercial customers; and
(B) the information submitted by offerors is considered; and
(4) the period for which information on past performance of offerors may be maintained and considered.
(b)Information Not Available.—If there is no information on past contract performance of an offeror or the information on past contract performance is not available, the offeror may not be evaluated favorably or unfavorably on the factor of past contract performance.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3689.)

CITE AS: 41 USC 1126

§ 1127. Determining benchmark compensation amount
(a)Definitions.—In this section:
(1)Benchmark compensation amount.—The term “benchmark compensation amount”, for a fiscal year, is the median amount of the compensation provided for all senior executives of all benchmark corporations for the most recent year for which data is available at the time the determination under subsection (b) is made.
(2)Benchmark corporation.—The term “benchmark corporation”, with respect to a fiscal year, means a publicly-owned United States corporation that has annual sales in excess of $50,000,000 for the fiscal year.
(3)Compensation.—The term “compensation”, for a fiscal year, means the total amount of wages, salary, bonuses, and deferred compensation for the fiscal year, whether paid, earned, or otherwise accruing, as recorded in an employer’s cost accounting records for the fiscal year.
(4)Fiscal year.—The term “fiscal year” means a fiscal year a contractor establishes for accounting purposes.
(5)Publicly-owned united states corporation.—The term “publicly-owned United States corporation” means a corporation—
(A) organized under the laws of a State of the United States, the District of Columbia, Puerto Rico, or a possession of the United States; and
(B) whose voting stock is publicly traded.
(6)Senior executives.—The term “senior executives”, with respect to a contractor, means the 5 most highly compensated employees in management positions at each home office and each segment of the contractor.
(b)Determining Benchmark Compensation Amount.—For purposes of section 4304(a)(16) of this title and section 3744(a)(16) of title 10, the Administrator shall review commercially available surveys of executive compensation and, on the basis of the results of the review, determine a benchmark compensation amount to apply for each fiscal year. In making determinations under this subsection, the Administrator shall consult with the Director of the Defense Contract Audit Agency and other officials of executive agencies as the Administrator considers appropriate.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3689; Pub. L. 117–81, div. A, title XVII, § 1702(h)(1), Dec. 27, 2021, 135 Stat. 2158.)

CITE AS: 41 USC 1127

§ 1128. Maintaining necessary capability with respect to acquisition of architectural and engineering services
The Administrator, in consultation with the Secretary of Defense, the Administrator of General Services, and the Director of the Office of Personnel Management, shall develop and implement a plan to ensure that the Federal Government maintains the necessary capability with respect to the acquisition of architectural and engineering services to—
(1) ensure that Federal Government employees have the expertise to determine agency requirements for those services;
(2) establish priorities and programs, including acquisition plans;
(3) establish professional standards;
(4) develop scopes of work; and
(5) award and administer contracts for those services.
(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3690.)

CITE AS: 41 USC 1128

§ 1129. Center of excellence in contracting for services

The Administrator shall maintain a center of excellence in contracting for services. The center shall assist the acquisition community by identifying, and serving as a clearinghouse for, best practices in contracting for services in the public and private sectors.

(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3690.)

CITE AS: 41 USC 1129

§ 1130. Effect of division on other law

This division does not impair or affect the authorities or responsibilities relating to the procurement of real property conferred by division C of this subtitle and chapters 1 to 11 of title 40.

(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3690.)

CITE AS: 41 USC 1130

§ 1131. Annual report

The Administrator annually shall submit to Congress an assessment of the progress made in executive agencies in implementing the policy regarding major acquisitions that is stated in section 3103(a) of this title. The Administrator shall use data from existing management systems in making the assessment.

(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3690.)

CITE AS: 41 USC 1131