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GAO-04-447R 1 (2004-03-31)

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  ~GAO

        Accountability - Integrity* Reliability
United States General Accounting Office
Washington, DC 20548




March 31, 2004

The Honorable Susan M. Collins
Chairman
The Honorable Joseph I. Lieberman
Ranking Minority Member
Committee on Governmental Affairs
United States Senate

The Honorable Tom Davis
Chairman
The Honorable Henry A. Waxman
Ranking Minority Member
Committee on Government Reform
House of Representatives

Subject: Agencies' Use of Procurement Flexibilities Provided in the Homeland Security
Act of 2002 (P.L. 107-296)

In the wake of September 11, 2001, Congress enacted the Homeland Security Act of 2002.
Title VIII, subtitle F, section 852 of the act provided for a temporary set of emergency
procurement flexibilities intended to address the immediate needs for procurement of
property (other than real property) or services to be used to defend against or recover
from terrorist threats, including nuclear, biological, chemical, or radiological attacks.
These flexibilities, which expired on November 24, 2003, included:

       Increasing the threshold for simplified acquisition procedures in support of
       humanitarian, peacekeeping, or contingency operations from $100,000 to $200,000
       for contracts awarded and performed within the United States. For contracts
       awarded and performed, or purchases to be made outside the United States, the
       threshold was $300,000. In addition, the small business set-aside threshold was
       raised to be consistent with the increased simplified acquisition threshold.'
       (Section 853)

 'Simplified acquisition procedures refer to the methods prescribed in the Federal Acquisition Regulation
 (FAR) Part 13 for making purchases of supplies or services valued below the simplified acquisition
 threshold. These procedures are designed to: (1) reduce administrative costs; (2) improve opportunities
 for small, disadvantaged, and women-owned businesses to obtain a fair proportion of government
 contracts; (3) promote efficiency and effectiveness in contracting; and (4) avoid unnecessary burdens for
 agencies and contractors. Federal Acquisition Regulation, at 13.002 [hereinafter FAR], (January 2004).


GAO-04-447R Homeland Security Procurement