AUTHORIZATION OF ADDITIONAL COMMERCIAL CONTRACT TYPES.

SEC. 1432. AUTHORIZATION OF ADDITIONAL COMMERCIAL CONTRACT TYPES. Section 8002(d) of the Federal Acquisition Streamlining Act of 1994 (Public Law 103–355; 108 Stat. 3387; 41 U.S.C. 264 note) is amended—(1) by redesignating paragraph (1) as subparagraph (A) and in that subparagraph by striking “and”;(2) by redesignating paragraph (2) as subparagraph (B) and in that subparagraph by striking the period at the end and inserting “; and”; (3) by adding after subparagraph (B) (as so redesignated) the following new subparagraph:“(C) subject to paragraph (2), authority for use of a time-and-materials contract or a labor-hour contract for the procurement of commercial services that are commonly sold to the general public through such contracts and are purchased by the procuring agency on a competitive basis.”;(4) by striking “Use of Firm, Fixed Price Contracts.—The” and inserting “Provisions Relating to Types of Contracts for Commercial Items.—(1)”; and(5) by adding at the end the following new paragraphs:“(2) A time-and-materials contract or a labor-hour contract may be used pursuant to the authority referred to in paragraph (1)(C)—“(A) only for a procurement of commercial services in a category of commercial services described in paragraph (3); and—“(B) only if the contracting officer for such procurement—“(i) executes a determination and findings that no other contract type is suitable;“(ii) includes in the contract a ceiling price that the contractor exceeds at its own risk; and“(iii) authorizes any subsequent change in the ceiling price only upon a determination, documented in the contract file, that it is in the best interest of the procuring agency to change such ceiling price.“(3) The categories of commercial services referred to in paragraph (2) are as follows:“(A) Commercial services procured for support of a commercial item, as described in section 4(12)(E) of the 117 STAT. 1673 Office of Federal Procurement Policy Act (41 U.S.C. 403(12)(E)).“(B) Any other category of commercial services that is designated by the Administrator for Federal Procurement Policy in the Federal Acquisition Regulation for the purposes of this paragraph on the basis that—“(i) the commercial services in such category are of a type of commercial services that are commonly sold to the general public through use of time-and-materials or labor-hour contracts; and“(ii) it would be in the best interests of the Federal Government to authorize use of time-and-materials or labor-hour contracts for purchases of the commercial services in such category.”.