THE FEDERAL ACQUISITION ACT OF 1977, S-12649N

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80S01268A000500030041-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: December 19, 2016
• Document Release Date: January 4, 2006
• Sequence Number: 41
• Publication Date: June 6, 1977
• Content Type: MF

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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
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 [^ 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-
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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
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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
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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
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