Inserts a provision proposed by the Senate which prohibits, under certain conditions, the procurement of stainless steel flatware not produced in the United States.

Inserts a provision proposed by the Senate regarding property on which the Phoenix Indian School is located at Phoenix, Arizona. Inserts a provision proposed by the Senate regarding lands in the vicinity of Bull Shoals Lake, Arkansas.

Inserts a provision proposed by the Senate which directs the Administrator of the General Services Administration to negotiate a lease of up to 30 years duration with the City of Tacoma, Washington for the purpose of leasing space for the U.S. Courts at the Union Station, in Tacoma, Washington.

Inserts a provision proposed by the Senate which provides that the United States Courthouse located at 223 Park Avenue Southwest in Aiken, South Carolina, shall be known and designated as the "Charles E. Simons, Jr., Federal Courthouse". Any reference in any law, regulation, document, record, map, or other paper of the United States to such courthouse is deemed to be a reference to the "Charles E. Simons, Jr., Federal Courthouse".

Inserts a provision proposed by the Senate which mandates that the Office of Management and Budget include Harvey County, Kansas in the area designated as the Wichita Metropolitan Statistical Area.

Inserts a provision proposed by the Senate which provides for an annuity of $1,500 per month to Gladys Pile, who served as a Senator from South Dakota from November, 1938 to January, 1939. Ms. Pile is not otherwise eligible to receive an annuity on the basis of her service as Senator.

Inserts a provision proposed by the Senate which provides that Erna Avari Patrick of Columbia, South Carolina, shall be considered to have satisfied the requirement of clause (3) of Section 603 of this Act.

TITLE VI-GENERAL PROVISIONS

DEPARTMENTS, AGENCIES AND CORPORATIONS

Inserts a provision proposed by the Senate that provides that when the Administrator of General Services delegates responsibility to protect property to another Federal agency, that the delegated agency may employ guards who shall have the same powers as G.S.A. guards.

Inserts a provision proposed by the Senate which provides that certain limitations in that section may not apply to any increases in a wage schedule or rate that is required by the terms of a contract entered into before the date of enactment of this Act.

Restores a provision inserted by the House but stricken by the Senate regarding the closing of certain Customs officers.

Restores a provision inserted by the House but stricken by the Senate regarding the eligibility of a certain organization to participate in the 1986 Combined Federal Campaign.

Inserts a provision proposed by the Senate regarding regulations dealing with participation in the Combined Federal Campaign. Deletes a provision proposed by the House regarding 48 CFR Subpart 19.5 which relates to small business set asides.

Modifies an amendment inserted by the Senate regarding small business set-asides.

Deletes a provision proposed by the House prohibiting the implementation of changes to OMB Circular A21 prior to April 1, 1987. Deletes a provision proposed by the House imposing a 9.75% across the board reduction to certain appropriations.

Inserts a general provision proposed by the Senate which amends section 202 of Title 3 of the United States Code. The provision deals with security of the Treasury Building and grounds.

Inserts a general provision which establishes a privitization demonstration program to allow electric and telephone borrowers under the Rural Electrification Act to prepay with private capital all their loans guaranteed or otherwise made by and through the Rural Electrification Administration (REA), so long as the borrower agrees to forego any future loan or other financial assistance under the Act. Borrowers electing to participate in the privitization demonstration program will not be assessed any premium as a result of prepaying of their guaranteed loans, and will be allowed to prepay their direct or insured loans at the lesser of the outstanding principal balance or at a discounted rate to be set by the REA Administrator. In selecting a discount rate the Administrator shall use the cost of money to double a rated utility or a similar financial benchmark, rather than the Federal Treasury rate.

If a borrower elects the prepayment option under Section 311, that borrower must prepay all of their outstanding REA loans within one year after the first loan is prepaid. With respect to prepayment of guaranteed loans, the guarantee shall be 90 percent of the outstanding balance plus accrued interest, but shall not otherwise be limited in its transferability or assignability. There will be no guarantee or other financial assistance associated with prepayment of direct or insured loans. Nothing in Section 311 shall prohibit borrowers who elect to prepay their loans and borrower who remain eligible for and utilize REA financing from participating together in generation and transmission projects or in power purchase or exchange agreements or other arrangements as are traditional in the electric utility industry to promote greater system efficiencies and consumer benefits, so long as the borrowers which has prepaid utilizes private capital. Where a borrower prepaying under Section 311 uses a majority of its generating capacity to serve its retail consumers, other borrowers who purchase power as of September 30, 1986 from the prepaying borrowers shall continue to be eligible under the Act for their service and needs.

"Private Capital" as used in this section includes any form of private financing otherwise available including financing through the Banks for Cooperatives, tax exempt bonds or other sources of capital, but does not include Federal Financing Bank loans. Nothing in Section 311 shall prevent a prepaying borrower from selling power to any party, including REA borrowers, or from purchasing REA-financed facilities with private capital. Short-term power purchases as used in Section 311 mean arrangements of no more than ten years.

TITLE VII-TRANSFER OF ANNUAL LEAVE AND SICK

LEAVE

The conferees agree that the Office of Personnel Management is to make a study of the desirability, feasibility, and costs, if any, of permitting employees to donate annual and sick leave for the use of other employees who need such leave for medical, or family emergency or other hardship situations. The Office shall submit a report to Congress, including any legislative recommendations, no later than one year after date of enactment of this Act.

This Title authorizes not to exceed three such demonstration projects which can be conducted throughout the country to test the feasibility of this leave bank concept.

TITLE VIII—THE PAPERWORK REDUCTION
REAUTHORIZATION ACT OF 1986

The Congress enacted the Paperwork Reduction Act of 1980, Public Law 96-511, on December 11, 1986. The Act establishes an information management framework for the Government with primary responsibilities centered in the Office of Information and Regulatory Affairs (OIRA) within the Office of Management and Budget. The objectives of the Paperwork Act are to (1) reduce the information burden imposed on the public by requiring the development and implementation of uniform and consistent information policies and practices, (2) increase the availability and accuracy of agency data and information, (3) expand and strengthen Federal information management activities, and (4) decrease the paperwork burden on individuals, businesses, State and local governments, and others.

OIRA's initial authorization expired in October 1983. While the House passed a reauthorization bill, the Paperwork Reduction Act Amendments of 1983 (H.R. 2718, House Report 98-147), the full Senate, despite committee passage, failed to act on its companion piece, S. 2433 (Senate Report 98-576). Since that time, OIRA has been operating without an authorization; it has been funded from OMB's general appropriations on a year-to-year basis. The Paperwork Reduction Reauthorization Act of 1986 provides funding for three additional years (fiscal years 1987-1989) at $5.5 million per year. This year the Senate committee reported S. 2230 containing title 6 with provisions similar to S. 2433 (Senate Report 99-347).

To help ensure that the functions assigned to the Office are carried out, the Reauthorization Act would establish a separate line item account for only those functions contained in the Paperwork Act and assigned to ŎIRA. The Office may perform other functions provided it obtains separate funding for these activities. The bill requires that all future Administrators be appointed by the President and confirmed by the Senate. It also combines the existing Federal Telecommunications Fund and the Automatic Data Processing Fund into a new Information Technology Fund managed by the General Services Administration (GSA) for the purposes of financing the acquisition of technology for use by Federal agencies.

Further, the bill establishes new goals for paperwork reduction and requires OMB to appoint a qualified chief statistician to develop and oversee statistical policies and programs. A new definition

of automatic data processing equipment (ADPE) is provided under Public Law 89-306 (Brooks Act), which recognizes the merging of ADP, telecommunications, and other technical resources used in the management of information. The bill also clarifies the roles and authorities of the OMB Director, the GSA Administrator, and the GSA Board of Contract Appeals. Additionally, it resolves the confusion that has resulted from recent court decisions regarding the application of the Brooks Act.

INFORMATION TECHNOLOGY FUND

The Paperwork Reduction Act of 1980 recognized the convergence of ADP and telecommunications technologies and the importance of these technologies to the management of information. In keeping with the committee's interest in the efficient and effective acquisition, management, and utilization of information technology and information technology resources, the Reauthorization Act combines the existing Automatic Data Processing Fund and the Telecommunications Fund into a new Information Technology Fund. The establishment of a single fund will accomplish several objectives. It will (1) alleviate what has become an artificial distinction between two merging technologies; (2) create a practical ap proach to funding communications linked computer systems; (3) provide a more businesslike approach to obligating available resources; (4) provide greater management opportunities and flexibility to take advantage of the most cost effective procurement opportunities; and (5) provide for more streamlined financial management of information technology programs.

The Reauthorization Act also provides authority to ensure that reimbursements to the fund are adequate to provide for the capital requirements of the fund. This is in keeping with the desires of the House Committee on Appropriations, as noted in its Report No. 961090 accompanying H.R. 7583 for the fiscal year 1981 budget.

The bill also provides GSA authority to contract for information technology resources for periods not in excess of 5 years, providing that funds are available and adequate for payment of the cost of such contracts for the first fiscal year and any termination costs. This will allow GSA to consider, in addition to lease and purchase, a third procurement alternative, that of multiyear leasing.

The consolidation of the two existing funds and the ability to enter into multiyear leasing contracts will provide substantial benefits to the Government. Rather than having to bear the administrative burden of managing two separate funds with rapidly converging technologies and uses, GSA will now be able to concentrate its efforts on the administration of the Technology Fund. Further, substantial cost savings and other benefits will accrue from a central agency being able to take advantage of quantity purchases and other discounts.

ROLES OF GSA AND OMB UNDER THE BROOKS ACT

Several disputes have recently arisen as to the application of the Brooks Act to specific procurements and the role OMB is to play in the process. While certain forum and agencies have fairly consistently interpreted the Brooks Act in accordance with its intended

meaning, others have advanced contrary interpretations that have prevailed in other areas. In order to alleviate the discrepancies and disputes that exist, legislation is necessary.

The present statutory amendments are necessary to clarify the roles placed upon the Administrator of General Services and ŎMB. Such authority directly impacts on the ability of the Government to be assured that it is awarding contracts involving ADP in the most economically efficient manner, and in its best interests.

The General Services Administration is vested with centralized authority for the Federal Government's use of automatic data processing resources. Through regulations and otherwise, the Administrator is to ensure that all agencies, with few exceptions, procure, lease, and maintain automatic data processing resources in the manner which is in the best interests of the Government.

OMB continues to have a role under the amended statute, although the role is now more circumscribed than previously. OMB may exercise "fiscal and policy control" over the Administrator and the Secretary of Commerce. In conjunction with this authority, agencies may appeal a denial by the Administrator for an agency procurement request (APR) to the Director of OMB.

In exercising its fiscal control. OMB is to formulate approaches for the economic expenditure of funds for ADP equipment, so as to assure that policy principles are realized. OMB is to exercise its policy control by establishing broad principles and approaches that secure an economic and efficient procurement system. Thus, for example, under its "fiscal and policy" authority, OMB may prohibit the procurement of a small number of microcomputers, because it has determined that such small procurements are not economical. It may insist that agencies bundle their similar requirements into a single procurement. OMB should not make determinations as to whether or not a given procurement falls within the scope of the Brooks Act. This is particularly true since the passage of the Competition in Contracting Act (CICA), Public Law 98-369, which placed protest authority in both the General Accounting Office and the General Services Administration Board of Contract Appeals. Each of these forums, which are to resolve protests under strict statutory time frames, have the expertise and ability to make such determinations based on the record presented before them.

The ability of OMB to play a role in the procurement process when automatic data processing equipment is involved is specifically limited by this statute. While OMB retains its "fiscal and policy" controls, which apply as noted above, the authority of OMB in its determination of April 9, 1986, and the decision of the United States Court of Appeals for the Federal Circuit in Electronic Data Systems Federal Corp. v. General Services Administration Board of Contract Appeals, 792 F.2d 1569 (Fed. Cir. 1986), is expressly limited, and-in the case of the Federal Circuit's decision-overruled, by the revision of the statute. The Administrator of General Services "shall provide adequate notice to all agencies and other users concerned with respect to each proposed determination whether or not the automatic data processing equipment will be provided by the Administrator or whether or not the authority to lease, purchase, or maintain the equipment will be delegated." 40 U.S.C. 759(e), as amended. OMB's determination authority is limited to