PROCEDURES FOR CONTRACT SOLICITATION AND EVALUATION

SEC. 802. PROCEDURES FOR CONTRACT SOLICITATION AND EVALUATION (a) Statement of Significant Factors.— (1) Clause (i) of section 2305(a)(2)(A) of title 10, United States Code, is amended— (A) by inserting “(and significant subfactors)” after “significant factors”; and (B) by striking out “(including cost or price)” and inserting in lieu thereof the following: “(including cost or price, cost- or price-related factors, and noncostor nonpricerelated factors)”. (2) Clause (ii) of such section is amended by inserting “(and subfactors)” after “those factors”. (b) Statement Relating to Discussions.— Subclause (I) of section 2305(a)(2)(B)(ii) of title 10, United States Code, is amended to read as follows: “(I) a statement that the proposals are intended to be evaluated with, and award made after, discussions with the offerors, or a statement that the proposals are intended to be evaluated, and award made, without discussions with the offerors (other than discussions conducted for the purpose of minor clarification), unless discussions are determined to be necessary; and”. 104 STAT. 1589 (c) Relative Importance of Evaluation Factors.— Paragraph (3) of section 2305(a) of title 10, United States Code, is amended by striking out “the quality of the services” and inserting in lieu thereof “the evaluation factors and subfactors, including the quality of the product or services”. (d) Evaluation of Sealed Bids and Competitive Proposals.— (1) Paragraph (1) of section 2305(b) of title 10, United States Code, is amended by inserting “and make an award” after “competitive proposals”. (2) Paragraph (3) of such section is amended in the second sentence by inserting “in accordance with paragraph (1)” after “shall evaluate the bids”. (3) Paragraph (4) of such section is amended— (A) in subparagraph (A), by striking out “competitive proposals” and all that follows and inserting in lieu thereof “competitive proposals in accordance with paragraph (1) and may award a contract— “(i) after discussions with the offerors, provided that written or oral discussions have been conducted with all responsible offerors who submit proposals within the competitive range; or “(ii) based on the proposals received, without discussions with the offerors (other than discussions conducted for the purpose of minor clarification) provided that the solicitation included a statement that proposals are intended to be evaluated, and award made, without discussions, unless discussions are determined to be necessary.”; (B) by striking out subparagraphs (B) and (C); (C) by redesignating subparagraph (D) as subparagraph (B); and (D) by redesignating subparagraph (E) as subparagraph (C) and in that subparagraph striking out “Subparagraph (D)” and inserting in lieu thereof “Subparagraph (B)”. (e) Effective Date.— (1) Except as provided in paragraph (2), the amendments made by this section shall apply with respect to solicitations for sealed bids or competitive proposals issued after the end of the 120-day period beginning on the date of the enactment of this Act. (2) The Secretary of Defense may require the amendments made by this section to apply with respect to solicitations issued before the end of the period referred to in paragraph (1). The Secretary of Defense shall publish in the Federal Register notice of any such earlier effective date.