Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
December 19, 2016
Document Release Date: 
January 4, 2006
Sequence Number: 
Case Number: 
Publication Date: 
June 6, 1977
Content Type: 
PDF icon CIA-RDP80S01268A000500030041-1.pdf300.28 KB
Approved For Release 2006/02/07: CIA-RDP80S01268A000,5OO030041--'F C Jm, 1977 MEMORANDUM FOR: Office of Legislative Counsel FROM: SUBJECT: Chief, Procurement Management Staff, OL The Federal Acquisition Act of 1977, S-1264 REFERENCES: a. Telephonic conversation F- I 1 June 1977, same subject b. Routing Sheet, dated 28 April 1977, fm OLC to D/OL, same subject Attac men I (OL 7 1919) c. Routing Sheet, dated 26 May 1977, fm OLC to DDA, same subject, Attachment II 1. Per reference a and pursuant to reference b, please find attachment III, a Memorandum for the Record, dated 25 May 1977, relating to a telephonic conversation between a representative of this office and Mr. Brian Walsh of Senator Lawton Chiles' staff concerning the subject legislation. 2. It is our understanding that attachment III will satisfy reference c (attachment II) request for an Office of Logistics comment concerning the proposed legislation. 13 Approved For Release 2006/02/07 : CIA-RDP80SO1268A000500030041-1 STAT Approved For Release 2006/02/07 : CIA-RDP80SO1268A000500030041-1 Approved For Release 2006/02/07 : CIA-RDP80SO1268A000500030041-1 [^ UNCLASSI,F,D INTERNd1L SECRET ROUTING AND RECORD SHEET SUBJECT: (Optional) FROM: EXTENSION NO. Legislative Counsel 6C19 HQ DATE 28 April 1977 TO: (Officer designation, room number, and building) DATE OFFICER'S COMMENTS (Number each comment to show from whom RECEIVED FORWARDED INITIALS to whom. Draw a line across column after each comment.) 1. Director o Logistics ! Per our conversation yesterday 2 20B Page here is a copy of H.R. 1264, Senato 2. Chilest bill on Federal procurement ?.7 After I talked with you, I spoke wi Brian Walsh, on Senator Chiles' 3. staff (his phone number is 224-0211 and alerted him that you would be calling him. He said he would be 4. specifically interested in our view on sections 201 and 304(a)(3) of the bill, and in addition would s. have some general questions regardi Agency procurement. Please bear in mind that we should not impart any 6. official Agency position on this bill since we expect to be submitti a formal views letter to the 7. Committee on Governmental Affairs, which will be coordinated with OMB Please review this bill to begin B. developing our position for a views letter. I would be interested in hearing about your conversation wit 9. Brian Walsh. Thanks for your help. 10. 11. Office of Legislative Counsel 12. 13. 14. iji-.. ls. h g g FORM j USE PREVIOUS INTERNAL 3-62 610 EDITIONS F-1 SECRET ^ CONFIDENTIAL ^ USE ONLY ^ UNCLASSIFIED - 'CSER iW C CLA T A - " Y v IA S1~sC'3411:T OFFICIAL OUTING SLIP. TO NAME AD ADDRESS DATE INITIALS I DDA X78 HQ 2 3 4 6 ACTION DIRECT REPLY PREPARE REPLY APPROVAL DISPATCH RECOMMENDATION X COMMENT FILE RETURN C2IRCURRENCE INFORMATION SIGNATURE Remarki t S 3 ~ ~ ! The Office of Legislative Counsel has reviewed the attached piece of legislation and determined it is necessary to evaluate it more comprehensive) because of its direct or indirect impact on the Ager It is requested that your office review this material advise the Office of Legislative Counsel, Legislatio Staff, as to its actual or potential effect(s) on the Agency, in terms of your office's area of expertise Please provide written comments by close of business 6 June 77 We have received a formal request for our comments from the Senate Governmental Affairs Committee. FOLD HERE TO RETURN TO SENDER PROMS NAME, ADDRESS AND PHONE NO. DATE OLC~, PW16'RoI[ Release 2006/02/07 0 -RDP t 1 6&R 4 UNCLASSIFIED CONFIDENTIAL SECRET 0500030041- Approved For Release 2006/02/07 : CIA-RDP80S01268A000500030041-1 25 May 1977 MEMORANDUM FOR THE RECORD STAT FROM: Procurement Management Staff, O/L SUBJECT: "The Federal Acquisition Act of 1977," 5.1264 (Attachment 1) 1. On 11 May 1977, the undersigned telephonically con- tacted a Mr. Brian Walsh of Senator Lawton Chiles' staff concerning the subject proposed legislation. Mr. Walsh was specifically interested in comments relating to Sections 201 and 304 (a) (3) of the Bill. 2. The following comments were proffered: a. TITLE II - ACQUISITION BY COMPETITIVE SEALED BIDS Section 201 Criteria For Use (1) Criteria (2) - "the public need can be practicably defined in terms not restricted by security or proprietary design." Comment: [,In the majority of Agency procurements, securlt ty considerations preclude public acknowledgement of this Agency's contractual relationship whether or not the "public need" requirement is classified per se. Thus, there is justification under this criteria to forgo this acquisition method. Even in those instances where the Agency employs vouchered funds to effect an unclassified procurement, it is a condition precedent of contract award that the contractor will abide by a so-called NON PUBLICITY clause, which is set forth in the contract's General Provisions. Thus, all contracts of this Agency are treated in a confidential manner in order to maintain a low profile and to preclude a hostile service from acquiring data co ernin areas of technical interest or financial expenditure Approved For Release 2006/02/07 : CIA-RDP80S01268A000500030041-1 Approved For Release 2006/02/07 : CIA-RDP80SO1268A000500030041-1 SUBJECT: "The Federal Acquisition Act,of 1977," S.1264 (Attachment 1) Mr. Walsh appeared to be receptive to the above comment. Ile agreed that there may be valid security considerations which entirely preclude this Agency's procurements from formal advertising. (2) Criteria (4) - "suitable products or services have been fully developed and previously supplied in comparable forms so to warrant the award of a fixed price contract to a successful bidder selected primarily on the basis of price." Comment: This criteria appears to exclude all pro- curements which require any level of development; i.e., RFD, engineering development, prototyping, or a pilot production run. Mr. Walsh concurred in the above assumption. He stated the thrust of the criteria is to exclude items which are knot based on Federal or Military Specifications and Standards. (3) The balance of the section appears relatively straightforward. It does not appear to complicate the pro- curement process. b. TITLE III - ACQUISITION BY COMPETITIVE NEGOTIATION Section 304 - Single Source Exceptions (1) Subsection (a)(3) - "notice of intent to award such a contract is publicized in advance of the award, pur- suant to section 637(e) of title 15, United States Code, and includes a description of the property or service to be acquired and the name of the prospective source." Comment: "Both the above quoted subsection and Section 302(a) for solicitation of offers for award by competitive negotiation require publication in the "United States Department of Commerce Synopsis of the United States Government Proposed. Procurements, Sales, and Contract Awards" (Commerce Business Daily) pursuant to 15 USC 637(e). However, the cited statute provides that: ". . nothing herein shall require publication of such notices with respect to those procurements (1) which for Approved For Release 2006/02/07 : CIA-RDP80SO1268A000500030041-1 Approved For Release 2006/02/07 : CIA-RDP80SO1268A000500030041-1 SUBJECT: "The Federal Acquisition Act of 1977," S.1264 (Attachment 1) security reasons are of a classified nature, and (10) for which it is determined in writing by the procuring agency, with the concurrence of the Administrator, that advance publicity is not appropriate or reasonable." The cited statutory language appears to permit this Agency from publicizing the majority of its procurement actions. In the case of unclassified procurements, it appears that some coordination with the Administrator of the Small Business Administration is required. Mr. Walsh concurred in the above assumptions. 3. Mr. Walsh appeared sympathetic to this Agency's need for confidential methods to procure supplies and services in support of its operations. He stated that a formal letter requesting executive agency comments on the subject legislation will be issued in the near future. The letter will also request a description of the procurement procedures employed in each agency. An annotated copy of the subject legislation appears at attachment 2. Attachments: 1 & 2 Approved For Release 2006/02/07 : CIA-RDP80SO1268A000500030041-1