[Senate Report 117-26]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 80
117th Congress    }                                      {      Report
                                 SENATE
 1st Session      }                                      {      117-26
_______________________________________________________________________

                                     



                   PROMOTING RIGOROUS AND INNOVATIVE

                     COST EFFICIENCIES FOR FEDERAL

                     PROCUREMENT AND ACQUISITIONS 
                              ACT OF 2021

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                 S. 583

              TO PROMOTE INNOVATIVE ACQUISITION TECHNIQUES
           AND PROCUREMENT STRATEGIES, AND FOR OTHER PURPOSES














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                 June 21, 2021.--Ordered to be printed 
                             _________

                              
                 U.S. GOVERNMENT PUBLISHING OFFICE
                 
19-010                   WASHINGTON : 2021
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              RAND PAUL, Kentucky
JACKY ROSEN, Nevada                  JAMES LANKFORD, Oklahoma
ALEX PADILLA, California             MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
                                     JOSH HAWLEY, Missouri

                   David M. Weinberg, Staff Director
                    Zachary I. Schram, Chief Counsel
                  Michelle M. Benecke, Senior Counsel
                Pamela Thiessen, Minority Staff Director
  Andrew C. Dockham, Minority Chief Counsel and Deputy Staff Director
       Jeremy H. Hayes, Minority Senior Professional Staff Member
                     Laura W. Kilbride, Chief Clerk
































                                                       Calendar No. 80
117th Congress    }                                      {      Report
                                 SENATE
 1st Session      }                                      {      117-26

======================================================================



 
    PROMOTING RIGOROUS AND INNOVATIVE COST EFFICIENCIES FOR FEDERAL 
                PROCUREMENT AND ACQUISITIONS ACT OF 2021

                                _______
                                

                 June 21, 2021.--Ordered to be printed

                                _______
                                

 Mr. Peters, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 583]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 583) to promote 
innovative acquisition techniques and procurement strategies, 
and for other purposes, having considered the same, reports 
favorably thereon with amendments and recommends that the bill, 
as amended, do pass.

                                CONTENTS

                                                                     Page
  I. Purpose and Summary..............................................  1
 II. Background and Need for the Legislation..........................  2
III. Legislative History..............................................  2
 IV. Section-by-Section Analysis......................................  3
  V. Evaluation of Regulatory Impact..................................  3
 VI. Congressional Budget Office Cost Estimate........................  4
VII. Changes in Existing Law Made by the Bill, as Reported............  5

                         I. PURPOSE AND SUMMARY

    The purpose of S. 583, the Promoting Rigorous and 
Innovative Cost Efficiencies for Federal Procurement and 
Acquisitions Act of 2021, or the PRICE Act of 2021, is to 
encourage innovation in Federal procurement. The PRICE Act 
encourages reform by identifying and promoting best practices 
to modernize how the Federal Government operates, including 
with regard to small business participation in the Federal 
marketplace. S. 583 does this by requiring the Department of 
Homeland Security (DHS) to develop guidance and training to 
improve procurement methods based on the experience of its 
Procurement Innovation Lab (PIL). Additionally, S. 583 requires 
the Administrator of the Office of Federal Procurement Policy 
(OFPP) to convene the Chief Acquisition Officers Council (CAO 
Council) to identify and widely disseminate best practices in 
modernizing Federal contracting, including utilizing small 
businesses.\1\
---------------------------------------------------------------------------
    \1\On December 14, 2020, the Committee approved S. 3038, the 
Promoting Rigorous and Innovative Cost Efficiencies for Federal 
Procurement and Acquisitions Act of 2019, which is substantially 
similar to S. 583. Accordingly, this Committee report is in large part 
a reproduction of the Committee report for S. 3038, S. Rep. No. 116-
315.
---------------------------------------------------------------------------

              II. BACKGROUND AND THE NEED FOR LEGISLATION

    The PIL is housed in the DHS Office of the Chief 
Procurement Officer.\2\ The PIL's mission is to ``foster a 
culture of procurement excellence where smart risk-taking and 
innovation assure DHS mission success.''\3\ The overall 
objectives of the PIL are ``lowering barriers to entry for 
small businesses and non-traditional vendors, encouraging 
competition, shortening time to award, and increasing the 
likelihood of successful outcomes under contract 
performance.''\4\ In fiscal year 2019, the PIL supported all 
nine of the DHS components, issuing awards for 52 projects.\5\ 
It also conducted webinars to spread best practices, conducting 
43 webinars for 10,105 attendees in 2019.\6\ The PIL has been 
invited to conduct training events for OFPP and other agencies, 
as well as DHS components.\7\
---------------------------------------------------------------------------
    \2\Procurement Innovation Lab, U.S. Department of Homeland 
Security, Fiscal Year 2019 Yearbook: Coaching Innovation (June 30, 
2020) (https://www.dhs.gov/sites/default/files/publications/
pilyearbookfy19_digital.pdf).
    \3\Id. at 2.
    \4\Id. at 5.
    \5\Id. at 9.
    \6\Id. at 10.
    \7\Jason Miller, How DHS' Innovation Lab is Helping Other Offices 
Get Into Shape, Federal News Network (Sept. 18, 2018) (https://
federalnewsnetwork.com/acquisition-policy/2018/09/how-dhs-innovation-
lab-is-helping-other-acquisition-offices-get-into-shape/).
---------------------------------------------------------------------------
    In order to further improve the PIL's ability to 
communicate procurement best practices throughout the Federal 
Government, and to improve utilization of acquisition 
innovation best practices generally, the PRICE Act requires the 
PIL to issue an annual report on its business projects and 
encourages dissemination of acquisition best practices--
including those practices that improve the utilization of small 
businesses.
    The PRICE Act also requires that the Administrator of the 
OFPP convene the CAO Council to identify best practices for 
modernizing Federal contracting and disseminate that 
information across the Federal Government--again, making sure 
that small business contracting is included. The CAO Council, 
or a working group of the council, is required to report to 
Congress within one year and provide briefings on its methods 
to share innovative practices. Providing concrete examples of 
success and sharing best practices government-wide will give 
the acquisition workforce much needed practical support to 
improve the procurement process.

                        III. LEGISLATIVE HISTORY

    S. 583 was introduced on March 3, 2021, by Senators Gary 
Peters (D-MI), Joni Ernst (R-IA), and Thomas Carper (D-DE). The 
bill was referred to the Committee on Homeland Security and 
Governmental Affairs. Senator Susan M. Collins (R-ME) later 
joined as a co-sponsor.
    The Committee considered S. 583 at a business meeting on 
March 17, 2021. The legislation passed by voice vote en bloc 
with Senators Peters, Rosen, Padilla, Portman, Johnson, 
Lankford, Romney, Scott, and Hawley present.

        IV. SECTION BY SECTION ANALYSIS OF THE BILL, AS REPORTED

Section 1. Short title

    This section establishes the short title of the bill as the 
``Promoting Rigorous and Innovative Cost Efficiencies for 
Federal Procurement and Acquisitions Act of 2019'' or the 
``PRICE Act of 2019.''

Section 2. Findings

    This section contains findings regarding DHS and its 
procurement operations. These findings include that small 
business participation in the Federal marketplace is not only 
important economically, it is also required by law. Over the 
past ten years, DHS has received top ratings for small business 
utilization.

Section 3. Definitions

    This subsection establishes the definitions of terms used 
in this bill.

Section 4. Procurement Innovation Lab Report

    This section requires the PIL to issue an annual report and 
describes the contents of that report. This section also 
requires the DHS Under Secretary for Management to develop 
guidance and offer training to contracting personnel, and share 
any best practices found. This section also sunsets the report 
three years after enactment.

Section 5. Council

    This section requires the CAO Council to convene within 45 
days to examine best practices in acquisition innovation, 
including small business contracting, and disseminate this 
information. It permits, but does not require, a working group 
on these topics. The working group, or the CAO Council as a 
whole, is required to examine acquisition innovation, report to 
Congress, and brief Congressional staff. These duties terminate 
30 days after the staff briefings.

                   V. EVALUATION OF REGULATORY IMPACT

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. CONGRESSIONAL BUDGET OFFICE COST ESTIMATES

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, April 6, 2021.
Hon. Gary C. Peters,
Chairman Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 583, the PRICE Act 
of 2021.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

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    S. 583 would require the Department of Homeland Security 
(DHS) to report on innovative techniques for procurement and to 
develop guidance and training to improve procurement methods 
based on the experience of its Procurement Innovation Lab. In 
addition, the bill would require the Office of Federal 
Procurement Policy (OFPP) to convene the Chief Acquisition 
Officers Council to identify and widely disseminate best 
practices to improve federal contracting.
    CBO expects that S. 583 would codify many existing policies 
and practices. DHS currently reports and issues guidance based 
on its experience with the lab, and OFPP memoranda and policies 
have stressed innovation to make federal procurement more 
effective and efficient since 2014. Thus, although CBO expects 
that S. 583 would probably change some methods and activities 
in the procurement process across most federal agencies, we 
estimate that implementing the bill would not significantly 
affect spending subject to appropriation over the 2021-2026 
period.
    Because most federal agencies would be affected by the bill 
requirements, enacting S. 583 could affect direct spending by 
some agencies that are allowed to use fees, receipts from the 
sale of goods, and other collections to cover operating costs. 
CBO estimates that any net changes in direct spending by those 
agencies would be negligible because most of them can adjust 
amounts collected to reflect changes in operating costs.
    The CBO staff contacts for this estimate are Matthew 
Pickford (for general government) and Lindsay Wylie (for the 
Department of Homeland Security). The estimate was reviewed by 
H. Samuel Papenfuss, Deputy Director of Budget Analysis.

       VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    Because S. 583 would not repeal or amend any provision of 
current law, it would make no changes in existing law within 
the meaning of clauses (a) and (b) of paragraph 12 of rule XXVI 
of the Standing Rules of the Senate.

                                  [all]