text: SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
  
      (a) Short Title.--This Act may be cited as the ``Acquisition 
  Savings Reform Act of 2011''.
      (b) Table of Contents.--The table of contents for this Act is as 
  follows:
  
  Sec. 1. Short title; table of contents.
  Sec. 2. Definitions.
  Sec. 3. Use of reverse auction methods.
  Sec. 4. Federal Strategic Sourcing Initiative.
  Sec. 5. Savings through leveraging the Federal Government's purchasing 
                              power.
  Sec. 6. Governmentwide contract vehicles.
  Sec. 7. Streamlining of contract closeouts.
  Sec. 8. Affordability as a requirement for certain acquisition plans.
  Sec. 9. Cost efficiency objectives for service contracts.
  Sec. 10. Establishing governmentwide acquisition savings criteria.
  Sec. 11. Office of Management and Budget savings requirements.
  Sec. 12. Expedited payment to small business.
  
  SEC. 2. DEFINITIONS.
  
      In this Act:
              (1) Approved business case.--The term ``approved business 
          case'' means a business case approved by the senior procurement 
          executive of an executive agency.
              (2) Acquisition.--The term ``acquisition'' has the meaning 
          given the term in section 131 of title 41, United States Code.
              (3) Commercial item.--The term ``commercial item'' has the 
          meaning given the term in section 103 of title 41, United 
          States Code.
              (4) Executive agency.--The term ``executive agency'' has 
          the meaning given the term in section 133 of title 41, United 
          States Code.
              (5) Federal acquisition regulation.--The term ``Federal 
          Acquisition Regulation'' means the Federal Acquisition 
          Regulation maintained under section 1303(a)(1) of title 41, 
          United States Code.
              (6) Federal acquisition regulatory council.--The term 
          ``Federal Acquisition Regulatory Council'' means the Federal 
          Acquisition Regulatory Council established under section 
          1302(a) of title 41, United States Code.
              (7) Federal strategic sourcing vehicles (fssvs).--The term 
          ``Federal Strategic Sourcing Vehicles'' means a kind of 
          governmentwide interagency acquisition contract or agreement 
          designated by the Office of Management and Budget to leverage 
          the Federal Government's buying power and save taxpayers money.
              (8) Interagency contract.--The term ``interagency 
          contract''--
                      (A) includes--
                              (i) governmentwide acquisition contracts as 
                          defined in Federal Acquisition Regulation part 
                          2.101;
                              (ii) multi-agency contracts as defined in 
                          Federal Acquisition Regulation part 2.101;
                              (iii) Federal Supply Schedule contracts; 
                          and
                              (iv) franchise funds; and
                      (B) does not include contracts entered into under 
                  the authority of section 1535 of title 31, United 
                  States Code.
              (9) Procurement.--The term ``procurement'' has the meaning 
          given the term in section 111 of title 41, United States Code.
  
  SEC. 3. USE OF REVERSE AUCTION METHODS.
  
      Not later than 270 days after the date of the enactment of this 
  Act, the Federal Acquisition Regulatory Council shall amend the Federal 
  Acquisition Regulation to require the heads of executive agencies, to 
  the extent possible, to use online reverse auction, or an equivalent 
  method, in the procurement of commercial items above the simplified 
  acquisition threshold whenever doing so would be expected to result in 
  savings to the agencies. The regulatory guidance shall address the 
  circumstances in which use of reverse auctions is appropriate, and 
  shall direct agencies, in deciding whether to use auctions or an 
  equivalent method, to consider the dollar volume of the acquisition and 
  potential to streamline the procurement for the agency and vendors.
  
  SEC. 4. FEDERAL STRATEGIC SOURCING INITIATIVE.
  
      (a) Consideration in Acquisition Planning Process.--Not later than 
  270 days after the date of the enactment of this Act, the Federal 
  Acquisition Regulatory Council shall amend the Federal Acquisition 
  Regulation to require the consideration of Federal Strategic Sourcing 
  Vehicles in the acquisition planning process, by including a listing of 
  Federal Strategic Sourcing Vehicles in the ``Priorities for use of 
  Government supply sources'' for Supplies and Services. The Office of 
  Management and Budget shall maintain a website with the current list of 
  Federal Strategic Sourcing Vehicles. The Supplies priority shall be 
  after the priority for wholesale supply services. The Services priority 
  shall be after services which are on the Procurement List maintained by 
  the Committee for Purchase From People Who are Blind or Severely 
  Disabled. The Federal Acquisition Regulation shall be amended to 
  authorize purchases from other than from Federal Strategic Sourcing 
  Vehicles, provided that consideration is given to its use in the 
  acquisition planning process. The plan will be documented to 
  acknowledge why usage of other than Federal Strategic Sourcing Vehicles 
  is warranted. The acknowledgment shall indicate that such action is 
  judged to be in the best interest of the Federal Government in terms of 
  the combination quality, timeliness, and cost that best meets the 
  requirement. Cost comparisons shall include the administrative cost of 
  the acquisition. Unusual and compelling urgency as prescribed in the 
  Federal Acquisition Regulation shall also be an authorized reason from 
  deviating from the Federal Strategic Sourcing Vehicles.
      (b) Maximization of Small Business and Other Socioeconomic 
  Categories in Federal Strategic Sourcing Vehicles.--The Administrator 
  for Federal Procurement Policy shall issue policy maximizing the 
  participation of small business and other socioeconomic categories such 
  as service-disabled veteran-owned small business in these Federal 
  Strategic Sourcing Vehicles. Agencies shall also be credited towards 
  their small business goals when awarding to small business Federal 
  Strategic Sourcing Vehicle contract holders.
      (c) Identification of Designated Federal Strategic Source 
  Vehicles.--The Office of Management and Budget shall identify on its 
  website a list of all Federal Strategic Source Vehicle contracts and 
  agreements and awardees.
      (d) Inclusion of Information Technology Purchases and Services in 
  Initiative.--
              (1) Data collection.--The Director of the Office of 
          Management and Budget shall prescribe regulations requiring 
          Chief Information Officers and Chief Acquisition Officers of 
          executive agencies to develop and gather such data on 
          information technology purchases and service acquisitions by 
          North American Industrial Classification codes.
              (2) Annual report.--The regulations prescribed under this 
          subsection shall require the head of each executive agency to 
          submit to the Director of Office of Management and Budget an 
          annual report through fiscal year 2016 including the data 
          collected under paragraph (1) and a plan for the strategic 
          sourcing of information technology purchases and common 
          commercial services. The plan shall include specific 
          milestones, measurable savings, and evaluation criteria.
      (e) Reporting.--The head of each executive agency shall submit to 
  the Director of the Office of Management and Budget an annual report 
  for each of fiscal years 2013 through 2016, estimating the amount of 
  savings achieved through the usage of Federal Strategic Sourcing 
  Vehicles and through other measurable acquisition savings methods 
  approved by the Administrator for Federal Procurement Policy. The 
  report shall also specify by each Federal Strategic Sourcing Vehicle 
  commodity what guidance the agency has issued to employees instructing 
  them to procure goods or services through the Federal Strategic 
  Sourcing Vehicle. If the agency has not issued such guidance to their 
  employees, the agency shall submit an explanation.
  
  SEC. 5. SAVINGS THROUGH LEVERAGING THE FEDERAL GOVERNMENT'S PURCHASING 
                POWER.
  
      Not later than 120 days after the date of the enactment of this 
  Act, the Director of the Office of Management and Budget shall develop 
  a plan to achieve not less than $1,000,000,000 in measurable savings 
  through Federal Strategic Sourcing Vehicles for fiscal years 2013 
  through 2016. The plan shall include an annual scorecard measuring the 
  success of each executive agency in achieving savings.
  
  SEC. 6. GOVERNMENTWIDE CONTRACT VEHICLES.
  
      Not later than 270 days after the date of the enactment of this 
  Act, the Federal Acquisition Regulatory Council shall amend the Federal 
  Acquisition Regulation to provide that--
              (1) where an agency is unable to satisfy the requirements 
          from a mandatory source, agencies are strongly encouraged to 
          utilize Federal Supply Schedules, governmentwide acquisition 
          contracts, multi-agency contracts, and any other procurement 
          instruments intended for use by multiple agencies, including 
          blanket purchase agreements (BPAs) under Federal Supply 
          Schedule contracts absent a written justification that the 
          governmentwide contract is not in the best interest of the 
          Federal Government;
              (2) agencies shall promote acquisition strategies utilizing 
          these vehicles to maximize participation of small businesses 
          and other socioeconomic categories, including set-asides of 
          acquisitions under these vehicles; and
              (3) contracting officers shall be encouraged by agency 
          guidance to maximize competition under these vehicles to the 
          maximum amount practicable with the goal of achieving the best 
          value to the Federal Government.
  
  SEC. 7. STREAMLINING OF CONTRACT CLOSEOUTS.
  
      (a) Authority To Waive Contract Closeout Audits.--
              (1) Authority.--Not later than 270 days after the date of 
          the enactment of this Act, the Federal Acquisition Regulatory 
          Council shall amend the Federal Acquisition Regulation to 
          provide contracting officers the authority to waive contract 
          closeout audits above the simplified acquisition purchase 
          threshold based on risk assessments. Factors upon which an 
          assessment of low risk may include time and material contracts, 
          low dollar cost type contracts, and contractors with approved 
          business systems, strong internal controls, and good past 
          performance ratings.
              (2) Guidance.--Not later than 270 days after the date of 
          the enactment of this Act, the Administrator for Federal 
          Procurement Policy, in collaboration with the Director of the 
          Defense Procurement and Acquisition Policy, shall issue 
          guidance for assisting contracting officials in determining 
          when waivers of contract closeout audits pursuant to paragraph 
          (1) are appropriate.
              (3) Use of abilityone program.--Where practicable, and in 
          accordance with the Javits-Wagner-O'Day Act (41 U.S.C. 46 et 
          seq.) as administered by the Committee For Purchase From People 
          Who Are Blind or Severely Disabled, utilize the AbilityOne 
          Program to accomplish non-inherently governmental tasks 
          associated with contract or grant close-out in those cases 
          where a Federal agency utilizes contractor support for close-
          out functions.
      (b) Firm-Fixed Contracts.--Not later than 270 days after the date 
  of the enactment of this Act, the Federal Acquisition Regulatory 
  Council shall amend the Federal Acquisition Regulation to provide that, 
  on firm-fixed contracts--
              (1) contractors shall submit a final invoice within 60 days 
          of Federal Government acceptance or relinquish payment unless 
          exempted by the contracting officer;
              (2) the contracting officer may--
                      (A) close a contract without a final invoice if the 
                  amount due is less than $1,000 and less than 10 percent 
                  of the contract value; and
                      (B) unilaterally deobligate any unliquidated 
                  obligations remaining on the contract; and
              (3) such contracts may be closed with missing contract 
          documentation if no additional product or service will be 
          received by the Federal Government and there are no outstanding 
          administrative actions.
      (c) Authority To Write Off Unreconciled Balances for Low-Risk 
  Contracts.--Not later than 270 days after the date of the enactment of 
  this Act, the Federal Acquisition Regulatory Council shall amend the 
  Federal Acquisition Regulation to provide contracting officers, with 
  approval one level above the contracting officer concerned, the 
  authority to write off unreconciled balances on low-risk contracts in 
  cases in which--
              (1) all administrative actions are complete, including 
          final payment to the contractor unless exempted under 
          subsection (b)(1); and
              (2) a written notice of the action has been sent to the 
          payment office responsible for the contract.
      (d) Authority To Grant Exemptions.--The regulations promulgated 
  under this section shall permit the head of contracting activity to 
  grant exemptions to the requirements under this section, with the 
  exemptions included in the contract file.
      (e) Contracting Officer Defined.--In this section, the term 
  ``contracting officer'' includes procuring and administrative 
  contracting officers.
  
  SEC. 8. AFFORDABILITY AS A REQUIREMENT FOR CERTAIN ACQUISITION PLANS.
  
      (a) In General.--Not later than 270 days after the date of the 
  enactment of this Act, the Federal Acquisition Regulatory Council shall 
  amend the Federal Acquisition Regulation to require heads of executive 
  agencies to mandate that affordability be included as a requirement for 
  major systems, research and development, construction and architect-
  engineering acquisitions prior to the approval of any acquisition plan 
  exceeding $100,000,000.
      (b) Affordability Defined.--In this section, the term 
  ``affordability'' refers to conducting an acquisition program at a cost 
  constrained by the maximum resources that an executive agency can 
  allocate for a particular capability.
  
  SEC. 9. COST EFFICIENCY OBJECTIVES FOR SERVICE CONTRACTS.
  
      Not later than 270 days after the date of the enactment of this 
  Act, the Federal Acquisition Regulatory Council shall amend the Federal 
  Acquisition Regulation to require service contracts valued at more than 
  $100,000,000 include provisions to achieve productivity improvements 
  and cost efficiencies. The regulation shall permit the head of 
  contracting activity to grant exceptions to this requirement which 
  shall be included in the contract file.
  
  SEC. 10. ESTABLISHING GOVERNMENTWIDE ACQUISITION SAVINGS CRITERIA.
  
      The Administrator for Federal Procurement Policy, in collaboration 
  with the Director of the Defense Procurement and Acquisition Policy, 
  shall establish at least one year from enactment a methodology to track 
  and monitor progress made by executive agencies in achieving measurable 
  acquisition savings. Measurable acquisition savings should include 
  price reductions and cost savings through reduced acquisition costs 
  such as administrative costs.
  
  SEC. 11. OFFICE OF MANAGEMENT AND BUDGET SAVINGS REQUIREMENTS.
  
      (a) Plan for Reduced Use of Time and Materials Contracts.--Not 
  later than 270 days after the date of the enactment of this Act, the 
  Administrator for Federal Procurement Policy, in coordination with the 
  Administrator of General Services and the Secretary of Defense, shall 
  develop a plan for reducing the use of time and materials and labor 
  hour contracts, including for orders under indefinite delivery/
  indefinite quantity contracts.
      (b) Report on Spending on Management Support Service Contracts.--
  Not later than one year after the date of the enactment of this Act, 
  the Administrator for Federal Procurement Policy, in collaboration with 
  the Director of the Defense Procurement and Acquisition Policy, shall 
  submit to Congress a report on reduced spending on management support 
  service contracts.
  
  SEC. 12. EXPEDITED PAYMENT TO SMALL BUSINESS.
  
      Not later than 270 days after the date of the enactment of this 
  Act, the Federal Acquisition Regulatory Council shall amend the Federal 
  Acquisition Regulation to reflect that governmentwide policy is to 
  assist small business concerns by paying them as quickly as possible 
  after invoices and all proper documentation, including acceptance, are 
  received and before normal payment due dates established in the 
  contract.
target: Acquisition Savings Reform Act of 2011 - Directs the Federal Acquisition Regulatory Council to amend the Federal Acquisition Regulation (FAR) to revise certain federal acquisition practices and procedures, including by: (1) requiring executive agency heads to use online reverse auction, or an equivalent method, in the procurement of commercial items above the simplified acquisition threshold; (2) requiring the consideration of Federal Strategic Sourcing Vehicles (defined as a kind of government-wide interagency acquisition contract or agreement to leverage the federal government's buying power) in the acquisition planning process; (3) authorizing contracting officers to waive contract closeout audits above the simplified acquisition purchase threshold based on risk assessments and to write off unreconciled balances on low risk contracts; (4) requiring executive agency heads to mandate that affordability be included as a requirement for major systems, research and development, and construction and architect-engineering acquisitions, prior to the approval of any acquisition plan exceeding $100 million; (5) requiring service contracts valued at more than $100 million to include provisions to achieve productivity improvements and cost efficiencies; and (6) assisting small businesses by paying their invoices as quickly as possible and before normal payment due dates established by contract.
  
  Requires the Administrator for Federal Procurement Policy to develop a plan for reducing the use of time and materials and labor hour contracts.
  
  Requires the Director of the Office of Management and Budget (OMB) to: (1) identify on the OMB website a list of all Federal Strategic Source Vehicle contracts and agreements and awardees, and (2) develop a plan to achieve not less than $1 billion in measurable savings through Federal Strategic Sourcing Vehicles for FY2013-FY2016.
feat_title: A bill to achieve cost savings through the reform of Federal acquisition practices and procedures.