Model Performance-Based Organization (PBO) Bill
Short Explanation

(February 20, 1997, revised April 1997-procurement, May 1997-personnel)



Title I: Management and Chief Operating Officer (COO)

Title II: Personnel Flexibilities

Title III: Procurement Flexibilities

o Sec.7 (a) PBO are subject to all applicable federal procurement laws and regulation when procuring property and services.

o Sec. 7 (b) contains additional authorities for PBOs:

  1. Two-phase selection procedures -- allows PBOs, after reviewing a limited amount of information, to select a small number of competing suppliers. The PBOs and these suppliers, together, will work and negotiate to identify the best fit between on-going needs and commercial capabilities. Also, permits PBOs to perform repetitive purchasing among qualified sources.
  2. Application of simplified procedures to commercial items -- removes the dollar limitation for the acquisition of commercial items and makes permanent the authorities provided in the Clinger-Cohen Act that simplify the source selection of commercially-available goods and services.
  3. Flexible wait periods and deadlines for submission of offers --gives relief from the required wait periods when using a detailed synopsis for any type of product or service.
  4. Modular contracting -- builds upon the provisions in the Clinger-Cohen Act enabling the more efficient acquisition of major information technology systems through incremental contracting techniques.
  5. Streamlined acquisition of services from small businesses -- authorizes the use of simplified procedures for the acquisition of services (excluding construction) up to $1,000,000 when conducted as a small business set-aside.

o Sec. 7 (c) requires the head of the PBO, in consultation with the Administrator for Federal Procurement Policy, to issue implementing guidance for the additional authorities granted in Sec. 7 (b).

o Sec. 7 (d) states that PBOs can contract for other agencies if approved in advance by the senior procurement official of the ordering agency.

o Sec.7 (e) states that civil rights or labor standards laws applicable to federal contracts still apply.

Title IV addresses the unique requirements of each individual PBO.

Title V addresses conforming amendments if needed.

Title VI addresses the assessment and sunset provision.

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