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(6) Increasing the development and promotion of efficient and effective applications of dual-use technologies.

(7) Providing efficient and effective technologies for achieving such environmental benefits as improved environmental data gathering, environmental cleanup and restoration, pollution reduction in manufacturing, environmental conservation, and environmentally safe management of facilities.

(h) MAJOR CONTRACTORS.—A contractor shall be considered to be a major contractor for the purposes of subsection (c) for any fiscal year if for the preceding fiscal year the contractor's covered segments allocated to Department of Defense contracts a total of more than $10,000,000 in independent research and development and bid and proposal costs. (i) DEFINITIONS.—In this section:

(1) COVERED CONTRACT.—The term "covered contract” has the meaning given that term in section 2324(1) of this title.

(2) COVERED SEGMENT.—The term "covered segment”, with respect to a contractor, means a product division of the contractor that allocated more than $1,000,000 in independent research and development and bid and proposal costs to Department of Defense contracts during the preceding fiscal year. In the case of a contractor that has no product divisions, such

term means the contractor as a whole. (Added P.L. 101–510, $ 824(a), Nov. 5, 1990, 104 Stat. 1603; amended P.L. 102–25, § 701(c), April 6, 1991, 105 Stat. 113; P.L. 102–190, $ 802(a)(1), Dec. 5, 1991, 105 Stat. 1412; P.L. 102–484, $ 1052(27), Oct. 23, 1992, 106 Stat. 2500; P.L. 103–35, $ 201(c)(5), May 31, 1993, 107 Stat. 98; P.L. 104-106, § 4321(b)(11), Feb. 10, 1996, 110 Stat. 672.) $ 2373. Procurement for experimental purposes

(a) AUTHORITY.—The Secretary of Defense and the Secretaries of the military departments may each buy ordnance, signal, chemical activity, and aeronautical supplies, including parts and accessories, and designs thereof, that the Secretary of Defense or the Secretary concerned considers necessary for experimental or test purposes in the development of the best supplies that are needed for the national defense.

(b) PROCEDURES.—Purchases under this section may be made inside or outside the United States and by contract or otherwise. Chapter 137 of this title applies only when such purchases are made in quantity. (Added P.L. 103–160, $ 822(c)(1), Nov. 30, 1993, 107 Stat. 1706; amended P.L. 103–337, $ 1070(g), Oct. 5, 1994, 108 Stat. 2859; P.L. 104-106, $ 812, Feb. 10, 1996, 110 Stat. 395.) $ 2374. Merit-based award of grants for research and devel

opment (a) It is the policy of Congress that an agency named in section 2303(a) of this title should not be required by legislation to award a new grant for research, development, test, or evaluation to a nonFederal Government entity. It is further the policy of Congress that any program, project, or technology identified in legislation be awarded through merit-based selection procedures.

(b) A provision of law may not be construed as requiring a new grant to be awarded to a specified non-Federal Government entity unless that provision of law

(1) specifically refers to this subsection;

(2) specifically identifies the particular non-Federal Government entity involved; and

(3) specifically states that the award to that entity is required by such provision of law in contravention of the policy set forth in subsection (a).

(c) For purposes of this section, a grant is a new grant unless the work provided for in the grant is a continuation of the work performed by the specified entity under a preceding grant.

(d) This section shall not apply with respect to any grant that calls upon the National Academy of Sciences to investigate, examine, or experiment upon any subject of science or art of significance to an agency named in section 2303(a) of this title and to report on such matters to the Congress or any agency of the Federal Government. (Added P.L. 103–355, $7203(a)(2), Oct. 13, 1994, 108 Stat. 3380.) $ 2374a. Prizes for advanced technology achievements

(a) AUTHORITY.—The Secretary of Defense, acting through the Director of the Defense Advanced Research Projects Agency, may carry out a program to award cash prizes in recognition of outstanding achievements in basic, advanced, and applied research, technology development, and prototype development that have the potential for application to the performance of the military missions of the Department of Defense.

(b) COMPETITION REQUIREMENTS.—The program under subsection (a) shall use a competitive process for the selection of recipients of cash prizes. The process shall include the widely-advertised solicitation of submissions of research results, technology developments, and prototypes.

(c) LIMITATIONS.—(1) The total amount made available for award of cash prizes in a fiscal year may not exceed $10,000,000.

(2) No prize competition may result in the award of more than $1,000,000 in cash prizes without the approval of the Under Secretary of Defense for Acquisition, Technology, and Logistics.

(d) RELATIONSHIP TO OTHER AUTHORITY.—The program under subsection (a) may be carried out in conjunction with or in addition to the exercise of any other authority of the Director to acquire, support, or stimulate basic, advanced and applied research, technology development, or prototype projects.

(e) ANNUAL REPORT.-Promptly after the end of each fiscal year, the Secretary shall submit to the Committees on Armed Services of the Senate and the House of Representatives

a report on the administration of the program for that fiscal year. The report shall include the following:

(1) The military applications of the research, technology, or prototypes for which prizes were awarded.

(2) The total amount of the prizes awarded.

(3) The methods used for solicitation and evaluation of submissions, together with an assessment of the effectiveness of those methods.

(f) PERIOD OF AUTHORITY.—The authority to award prizes under subsection (a) shall terminate at the end of September 30,

(Added P.L. 106–65, $ 244(a), Oct. 5, 1999, 113 Stat. 552; P.L. 107–314, § 248(a), Dec. 2, 2002, 116 Stat. 2502.)

§ 2374b. Prizes for achievements in promoting science, math

ematics, engineering, or technology education (a) AUTHORITY.—The Secretaries of the military departments and the heads of defense agencies may each carry out a program to award cash prizes in recognition of outstanding achievements that are designed to promote science, mathematics, engineering, or technology education in support of the missions of the Department of Defense.

(b) COMPETITION REQUIREMENTS.-Each program under subsection (a) shall use a competitive process for the selection of recipients of cash prizes.

(c) LIMITATION.—For any single program under subsection (a), the total amount made available for award of cash prizes in a fiscal year may not exceed $1,000,000.

(d) RELATIONSHIP TO OTHER AUTHORITY.—The program under subsection (a) may be carried out in conjunction with or in addition to the exercise of any other authority to acquire, support, or stimulate basic and applied research, advanced technology development, or prototype development projects.

(e) ANNUAL REPORT.–Promptly after the end of each fiscal year, each Secretary of a military department and each head of a defense agency carrying out a program under subsection (a) shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the administration of that program for that fiscal year.

(f) PERIOD OF AUTHORITY.—The authority to award prizes under subsection (a) shall terminate at the end of September 30, 2006. (Added P.L. 107–314, $ 248(c)(1), Dec. 2, 2002, 116 Stat. 2502.)

CHAPTER 140—PROCUREMENT OF COMMERCIAL ITEMS

Sec. 2375. Relationship of commercial item provisions to other provisions of law. 2376. Definitions. 2377. Preference for acquisition of commercial items. 2378. Procurement of copier paper containing specified percentages of post-con

sumer recycled content. $ 2375. Relationship of commercial item provisions to other

provisions of law (a) APPLICABILITY OF TITLE.—Unless otherwise specifically provided, nothing in this chapter shall be construed as providing that any other provision of this title relating to procurement is inapplicable to the procurement of commercial items.

(b) LIST OF LAWS INAPPLICABLE TO CONTRACTS FOR THE ACQUISITION OF COMMERCIAL ITEMS.—No contract for the procurement of a commercial item entered into by the head of an agency shall be subject to any law properly listed in the Federal Acquisition Regulation (pursuant to section 34 of the Office of Federal Procurement Policy Act (41 U.S.C. 430)).

(c) CROSS REFERENCE TO EXCEPTION TO COST OR PRICING DATA REQUIREMENTS FOR COMMERCIAL ITEMS.-For a provision relating to an exception for requirements for cost or pricing data for contracts for the procurement of commercial items, see section 2306a(b) of this title. (Added P.L. 103–355, $ 8102, Oct. 13, 1994, 108 Stat. 3390; amended P.L. 105–85, $1073(a)(51), Nov. 18, 1997, 111 Stat. 1903; P.L. 107–107, § 1048(a)(18), Dec. 28, 2001, 115 Stat. 1223.) $ 2376. Definitions In this chapter:

(1) The terms "commercial item", "nondevelopmental item", "component”, and “commercial component” have the meanings provided in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).

(2) The term "head of an agency” means the Secretary of Defense, the Secretary of Homeland Security, and the Administrator of the National Aeronautics and Space Administration.

(3) The term "agency" means the Department of Defense, the Coast Guard, and the National Aeronautics and Space Ad

ministration. (Added P.L. 103–355, $ 8103, Oct. 13, 1994, 108 Stat. 3390; P.L. 107–107, § 1048(a)(19), Dec. 28, 2001, 115 Stat. 1223; P.L. 107–296, § 1704(b)(1), Nov. 25, 2002, 116 Stat. 2314.) $ 2377. Preference for acquisition of commercial items

(a) PREFERENCE.—The head of an agency shall ensure that, to the maximum extent practicable

(1) requirements of the agency with respect to a procurement of supplies or services are stated in terms of—

(A) functions to be performed;
(B) performance required; or

(C) essential physical characteristics; (2) such requirements are defined so that commercial items or, to the extent that commercial items suitable to meet the agency's needs are not available, nondevelopmental items other than commercial items, may be procured to fulfill such requirements; and

(3) offerors of commercial items and nondevelopmental items other than commercial items are provided an opportunity to compete in any procurement to fill such requirements.

(b) IMPLEMENTATION.—The head of an agency shall ensure that procurement officials in that agency, to the maximum extent practicable

(1) acquire commercial items or nondevelopmental items other than commercial items to meet the needs of the agency;

(2) require prime contractors and subcontractors at all levels under the agency contracts to incorporate commercial items or nondevelopmental items other than commercial items as components of items supplied to the agency;

(3) modify requirements in appropriate cases to ensure that the requirements can be met by commercial items or, to the extent that commercial items suitable to meet the agency's needs are not available, nondevelopmental items other than commercial items;

(4) state specifications in terms that enable and encourage bidders and offerors to supply commercial items or, to the extent that commercial items suitable to meet the agency's needs are not available, nondevelopmental items other than commercial items in response to the agency solicitations;

(5) revise the agency's procurement policies, practices, and procedures not required by law to reduce any impediments in those policies, practices, and procedures to the acquisition of commercial items; and

(6) require training of appropriate personnel in the acquisition of commercial items.

(c) PRELIMINARY MARKET RESEARCH.—(1) The head of an agency

shall conduct market research appropriate the circumstances

(A) before developing new specifications for a procurement by that agency; and

(B) before soliciting bids or proposals for a contract in excess of the simplified acquisition threshold.

(2) The head of an agency shall use the results of market research to determine whether here are commercial items or, to the extent that commercial items suitable to meet the agency's needs are not available, nondevelopmental items other than commercial items available that

(A) meet the agency's requirements;
(B) could be modified to meet the agency's requirements;

to

or

(C) could meet the agency's requirements if those requirements were modified to a reasonable extent.

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