A BILL
To amend the Act of May 13, 1954, P.L. 358 (33 U.S.C. 981, et
seq.), as amended, to improve the operation, maintenance, and
safety of the St. Lawrence Seaway, within the territorial limits
of the United States, by establishing the Saint Lawrence Seaway
Development Corporation as a performance based organization in
the Department of Transportation, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled
SHORT TITLE
Section. 1. This Act may be cited as the "Saint Lawrence
Seaway Development Corporation Performance Based Organization Act
of 1999".
TITLE I--MANAGEMENT AND CHIEF OPERATING OFFICER
MANAGEMENT OF THE SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION
AND CHIEF OPERATING OFFICER
Sec. 101. Section 1 of the Act of May 13, 1954 (33 U.S.C.
981), is amended by striking "subject to the direction and
supervision of the Secretary" and inserting in lieu thereof
"within the Department".
Sec. 102. (a) Section 2 of the Act of May 13, 1954 (33
U.S.C. 982), is amended to read as follows:
"Sec. 2. Management of Corporation; Chief Operating Officer;
Advisory Board
"(a) The management of the Corporation is vested in a Chief
Operating Officer, who shall be appointed by the Secretary of
Transportation to a five year term and compensated without regard
to chapters 33, 51, and 53 of title 5, United States Code. The
appointment shall be made on the basis of demonstrated ability in
management. The Secretary may reappoint the Chief Operating
Officer to subsequent terms so long as performance, as set forth
in the annual performance agreement specified by subsection (c)
of this section, is satisfactory. The Chief Operating Officer
shall be removable--
"(1) by the President; or
"(2) by the Secretary, for misconduct, delinquency, or non-
satisfactory performance under the performance agreement
described in subsection (c).
"(b) On the effective date of this section, the
Administrator of the Saint Lawrence Seaway Development
Corporation serving an unexpired term shall become the Chief
Operating Officer to serve for a period of time equal to not less
than the remainder of the term for which he or she was originally
appointed to the Corporation. When the time period of the
remainder of that term has expired, he or she shall remain in
that position until such time as the Secretary appoints a Chief
Operating Officer under this section.
"(c) The Secretary of Transportation and the Chief Operating
Officer shall enter into an annual performance agreement which
shall set forth measurable organization and individual goals for
the Chief Operating Officer in key operational areas. The
agreement shall be subject to review and renegotiation at least
on an annual basis.
"(d)(1) The Chief Operating Officer is authorized to be paid
at an annual rate of basic pay not to exceed the maximum rate of
basic pay for the Senior Executive Service under section 5382 of
title 5, United States Code, including any applicable locality-
based comparability payment that may be authorized under section
5304(h)(2)(C) of such title. The Chief Operating Officer may
receive a bonus in an amount up to, but not in excess of, the
equivalent of fifty percent of such basic pay, based upon the
Secretary's evaluation of the Chief Operating Officer's
performance in relation to the performance goals set forth in the
performance agreement described in subsection (c).
"(2) Payment of a bonus under this subsection may be made to
the Chief Operating officer only to the extent that such payment
does not cause the Chief Operating Officer's aggregate
compensation in a calendar year to equal or exceed the amount of
the President's salary under section 102 of title 3, United
States Code.
"(e) The Chief Operating Officer shall prepare and submit to
the Secretary and the Congress an annual management report
containing such information as the Director of the Office of
Management and Budget may prescribe.
"(f) There is hereby established the Saint Lawrence Seaway
Development Corporation Advisory Board to advise the Secretary
and the Chief Operating Officer on general policies of the
Corporation, including its policies in connection with design and
construction of facilities and the establishment of rules of
measurement for vessels and cargo and rates of charges or tolls,
and on such additional matters as the Secretary or Chief
Operating Officer may seek advice. The Board shall meet at the
call of the Chief Operating Officer.
"(g) The Board shall consist of five members appointed by
the Secretary for staggered five-year terms. The term of each
member shall begin when the term of the predecessor of that
individual ends. An individual appointed to fill a vacancy
occurring before the expiration of the term for which the
predecessor of that individual was appointed, shall be appointed
for the remainder of that term. Not more than three of the
Board's members may belong to the same political party.
"(h) The members of the Saint Lawrence Seaway Development
Corporation Advisory Board in place on the effective date of this
section shall remain on the Board until January 20, 2001. The
Secretary in appointing new members shall ensure that the terms
of the new members are for descending terms of years so as not to
coincide with the term of the first new appointee set at five
years.
"(i) Members of the Advisory Board shall receive necessary
traveling expenses while going to and coming from meetings.".
Sec. 103. Section 3 of the Act of May 13, 1954 (33 U.S.C.
983), is amended by inserting a new subsection (c) following
subsection (b) to read as follows:
"(c) The Corporation shall perform such additional duties of
the Secretary as the Secretary deems to be related to the St.
Lawrence Seaway and as may be delegated to it by the Secretary.".
TITLE II--PERSONNEL PROVISIONS
PERSONNEL FLEXIBILITIES; GENERAL
Sec. 201. Section 4 of the Act of May 13, 1954 (33 U.S.C.
984), is amended by striking the language of paragraph (a)(7) and
substituting "may appoint and fix the compensation of employees
as provided in section 14 of this Act".
Sec. 202. The Act of May 13, 1954 (33 U.S.C. 981, et seq.),
is amended by adding the following after section 13:
"Sec. 14. Personnel of the Corporation
"(a) In General.-- The Corporation, except as otherwise
specified by this Act, may, through the Chief Operating Officer,
appoint and fix the compensation, in accordance with the
provisions of chapter 51 and subchapter III of Chapter 53 of
title 5, United States Code, and including the setting of wages
for prevailing rate employees through negotiation as provided by
section 9(b) of Public Law 92-392 (5 U.S.C. 5343 note), of such
officers and employees as may be necessary for the conduct of its
business, define their authority and duties, and delegate to them
such of the powers vested in the Corporation as the Chief
Operating Officer may determine. The Corporation shall not be
subject to any ceiling relating to the number or grade of its
employees.
"(b) Effect of Personnel Flexibilities.--(1) Any
flexibilities provided by sections 15 through 17 of this Act
shall be exercised in a manner consistent with the following
provisions of title 5, United States Code:
"(A) chapter 23, relating to merit system principles and
prohibited personnel practices;
"(B) provisions relating to preference eligibles;
"(C) section 5307, relating to the aggregate limitation on
pay; and
"(D) chapter 71, relating to labor-management relations,
except to the extent provided by subsection (c) of this section.
"(2) The exercise of any authorities provided by sections 15
through 17 of this Act shall be subject to subsections (b) and
(c) of section 1104 of title 5, United States Code, as though
such authorities were delegated to the Corporation under
subsection (a)(2) of such section 1104. The Corporation shall
provide the Office of Personnel Management with any information
the Office requires in carrying out its responsibilities under
this paragraph.
"(c) Written Agreements Governing Personnel Flexibilities.--
(1) Except as provided in paragraph (2) of this subsection,
employees within a unit to which a labor organization is accorded
exclusive recognition under chapter 71 of title 5, United States
Code, shall not be subject to any flexibility provided by
sections 15 through 17 of this Act or any demonstration project
under subsection (f) of this section, unless the exclusive
representative and the Corporation have entered into a written
agreement which specifically provides for the exercise of that
flexibility or demonstration project implementation.
"(2) Notwithstanding paragraph (1) of this subsection--
"(A) if the exercise of any flexibility provided in sections
15 through 17 of this Act or any demonstration project under
subsection (f) of this section would affect employees who are in
more than one bargaining unit affiliated with the same national
labor organization and who are covered by more than one
collective bargaining agreement, such flexibility may be
exercised or demonstration project implemented if there is a
written agreement permitting such exercise between the
Corporation and the national labor organization; and
"(B) if the exercise of any flexibility provided in sections
15 through 17 of this Act or any demonstration project under
subsection (f) of this section would affect employees who are in
more than one bargaining unit and whose exclusive representatives
are affiliated with more than one national labor organization,
such flexibility may be exercised or demonstration project
implemented if there is a written agreement permitting such
exercise between the Corporation and all of such national labor
organizations.
"(d) The written agreements referred to in paragraphs (1)
and (2) of subsection (c) may not be imposed by the Federal
Services Impasses Panel under section 7119 of title 5, United
States Code.
"(e) Limits on Prior Approval by the Office of Personnel
Management.--(1) The Corporation may exercise any of the
flexibilities provided by sections 15, 16(a) and (b), and 17 of
this Act without prior approval of the Office of Personnel
Management.
"(2) The Corporation may exercise the flexibilities
described in subsections 16(c)-(e) of this Act only after a
specific plan for implementation of those flexibilities is
submitted to and approved by the Director of the Office of
Personnel Management.
"(f) Demonstration Projects Under Chapter 47 of Title 5
U.S.C.--(1) The exercise of any flexibilities under sections 15
through 17 of this Act does not affect the authority of the
Corporation to implement a demonstration project, subject to
chapter 47 of title 5, United States Code, and as provided in
paragraph (2) of this subsection.
"(2)(A) In applying section 4701(a)(1) of such title 5 to a
demonstration project referred to in paragraph (1) of this
subsection, subparagraph (A) of such section 4701(a)(1) shall be
disregarded.
"(B) In applying section 4703 of such title 5 to a project
described in paragraph (1) of this subsection--
"(i) subsection (b)(1) shall be deemed to read as follows:
'(1) develop a plan for such project which describes its
purpose, the employees to be covered, the project itself, its
anticipated outcomes, and the method of evaluating the project';
"(ii) subsection (b)(3) shall be disregarded;
"(iii) in subsection (b)(4), '180 days' shall be deemed to
be '30 days';
"(iv) subsection (b)(6) shall be deemed to state:
" '(6) provide each House of the Congress with the final
version of the plan';
"(v) subsection (c)(1) shall be deemed to read as follows:
" '(1) subchapter V of chapter 63 or subpart G of part III
of this title';
"(vi) subsection (d) shall be disregarded, and
"(vii) subsection (f) shall be disregarded and, in lieu
thereof, subsection (c) of this section shall apply as though the
demonstration project were a flexibility authorized by sections
15 through 17 of this Act.
(g) Officers and employees of the Corporation are officers
and employees of the United States as defined by sections 2104
and 2105, title 5, United States Code.".
PERFORMANCE MANAGEMENT
Sec. 203. The Act of May 13, 1954 (33 U.S.C. 981, et seq.),
is amended by adding the following after section 14 (as added by
this Act):
"Sec. 15. Performance management
"(a) Establishment of Performance Management System.--The
Corporation shall establish a performance management system that-
-
"(1) maintains individual accountability by--
"(A) establishing one or more retention standards for each
employee related to the work of the employee and expressed in
terms of individual performance, and communicating such retention
standards to employees;
"(B) making periodic determinations of whether each employee
meets or does not meet the employee's established retention
standards; and
"(C) with respect to any employee whose performance does not
meet established retention standards--
"(i) in accordance with applicable provisions of law and
regulation, denying any increases in basic pay, promotions, and
credit for performance under section 3502 of title 5, United
States Code; and
"(ii) taking one or more of the following actions:
"(I) reassignment;
"(II) an action under chapter 43 or chapter 75 of title 5,
United States Code; or
"(III) any other appropriate action to resolve the
performance problem; and
"(2) strengthens its effectiveness by providing for--
"(A) establishing goals or objectives for individual, group,
or organizational performance (or any combination thereof),
consistent with the annual performance agreement described in
section 2(c) of this Act and the Corporation's performance
planning procedures, including those established under the
Government Performance and Results Act of 1993, and communicating
such goals or objectives to employees;
"(B) using such goals and objectives to make performance
distinctions among employees or groups of employees; and
"(C) using performance assessments as a basis for granting
employee awards, adjusting an employee's rate of basic pay, and
other appropriate personnel actions, in accordance with
applicable provisions of law and regulation. For purposes of this
subparagraph, 'performance assessment' means a determination of
whether or not retention standards established under paragraph
(1)(A) of this subsection are met, and any additional performance
determination made on the basis of performance goals and
objectives established under subparagraph (A) of this paragraph.
For purposes of title 5, United States Code, 'unacceptable
performance' with respect to an employee of the Corporation means
performance of the employee which fails to meet a retention
standard established under paragraph (1)(A) of this subsection.
"(b) Personnel Awards Program.-- (1) The Corporation shall
establish an awards program designed to provide incentives for
and recognition of organizational, group, and individual
achievements by providing for granting awards to employees who,
as individuals or members of a group, contribute to meeting the
performance goals and objectives established under this section
by such means as a superior individual or group accomplishment, a
documented productivity gain, or sustained superior performance.
"(2) Notwithstanding section 4502(b) of title 5, United
States Code, the Corporation may grant a cash award in an amount
not exceeding $25,000, with the approval of the Chief Operating
Officer.".
CLASSIFICATION AND PAY FLEXIBILITIES
Sec. 204. The Act of May 13, 1954 (33 U.S.C. 981, et seq.),
is amended by adding the following after section 15 (as added by
this Act):
"Sec. 16. Classification and pay flexibilities
"(a) Broad-banded Classification System.--(1) The
Corporation may, subject to criteria to be prescribed by the
Office of Personnel Management, establish one or more broad-
banded systems covering all or any portion of its workforce. For
purposes of this subsection, 'broad-banded system' means a system
for grouping positions for pay, job evaluation, and other
purposes that is different from the system established under
chapter 51 and subchapter III of chapter 53 of title 5, United
States Code, as a result of combining grades and related ranges
of rates of pay in one or more occupational series. The Office
may require the Corporation to submit to the Office such
information relating to its broad-banded systems as the Office
may require. Except to the extent provided in subsections (d)
and (e), laws and regulations pertaining to General Schedule
employees (other than chapter 51 and subchapter III of chapter 53
of title 5, United States Code) shall continue to apply to
employees under a broad-banded system.
"(2) The criteria to be prescribed by the Office of
Personnel Management shall, at a minimum--
"(A) ensure that the structure of any broad-banded system
maintains, through linkage to the General Schedule, the principle
of equal pay for substantially equal work;
"(B) establish the minimum and maximum number of grades that
may be combined into pay bands;
"(C) establish requirements for adjusting the pay of an
employee within a pay band;
"(D) establish requirements for setting the pay of a
supervisory employee whose position is in a pay band or who
supervises employees whose positions are in pay bands; and
"(E) establish requirements and methodologies for setting
the pay of an employee upon conversion to a broad-banded system,
initial appointment, change of position or type of appointment
(including promotion, demotion, transfer, reassignment,
reinstatement, placement in another pay band, or movement to a
different geographic location), and movement between a broad-
banded system and another pay system.
"(b) Alternative Pay Flexibility.--(1) The Corporation may
determine that, with respect to its employees who remain subject
to chapter 51 and subchapter III of chapter 53 of title 5, United
States Code, rather than being under a broad-banded system
established under subsection (a), the General Schedule does not
have 10 fixed rates of pay for each grade. On and after the date
such a determination is made, an employee who is otherwise
subject to subchapter III of chapter 53 of title 5, and who is
promoted or transferred to a position in a higher grade, shall be
entitled to basic pay at a rate determined under criteria
prescribed by the Office of Personnel Management.
"(2) In lieu of periodic step-increases under section 5335
of title 5, United States Code, such employees who meet retention
standards established under section 15(a)(1)(A) of this Act shall
be entitled to performance increases under criteria prescribed by
the Office. A performance increase shall be equal to one-ninth of
the difference between the minimum and maximum rates of pay for
the applicable grade of the General Schedule. In lieu of
additional step-increases under section 5336 of title 5, such
employees shall be eligible for exceptional performance increases
under criteria prescribed by the Office. An exceptional
performance increase shall be equal to any amount up to, but not
in excess of, a performance increase.
"(c) Alternative Job Evaluation Systems.--(1) With the
approval of the Office of Personnel Management in accordance with
section 14(d)(2) of this Act, the Corporation may establish one
or more alternative job evaluation systems that include any
positions or groups of positions that the Corporation determines,
for reasons of effective administration--
"(A) should not be classified under chapter 51 of title 5,
United States Code, or paid under the General Schedule;
"(B) should not be classified or paid under subchapter IV of
chapter 53 of such title 5; or
"(C) should not be paid under section 5376 of such title 5.
"(2)(A) An alternative job evaluation system established
under this subsection that includes positions described in
subparagraph (A) or (B), or both, of paragraph (1) of this
subsection may not provide a rate of basic pay for any employee
in excess of the maximum rate of pay under the General Schedule.
"(B) An alternative job evaluation system established under
this subsection that includes positions described in subparagraph
(C) of paragraph (1) of this subsection may not provide a rate of
basic pay for any employee in excess of the annual rate of basic
pay of the Chief Operating Officer under the first sentence of
section 2(d) of this Act.
"(3) An alternative job evaluation system established under
this subsection shall be implemented in such a way as to ensure
the maintenance of the principle of equal pay for substantially
equal work.
"(4) Except as otherwise provided under this section,
employees under an alternative job evaluation system shall
continue to be subject to the laws and regulations covering
employees under the pay system that would otherwise apply to
them. If the alternative job evaluation system combines
employees from different pay systems into a single pay system,
the plan described in section 14(d)(2) shall address the
applicability of the laws and regulations for the different pay
systems.
"(d) Certain Variations from Title 5 U.S.C.--With the
approval of the Office of Personnel Management in accordance with
section 14(d)(2) of this Act, the Corporation may, with respect
to employees who are covered by a broad-banded system established
under subsection (a) of this section or an alternative job
evaluation system established under subsection (c) of this
section, provide for variations from the provisions of subchapter
VI of chapter 53 of title 5, United States Code.
"(e) Certain Variations from sections 5753 and 5754 of Title
5 U.S.C.--With the approval of the Office of Personnel Management
in accordance with section 14(d)(2) of this Act, the Corporation
may, with respect to its employees, provide for variations from
the provisions of sections 5753 and 5754 of title 5, United
States Code.".
STAFFING FLEXIBILITIES
Sec. 205. The Act of May 13, 1954 (33 U.S.C. 981, et seq.),
is amended by adding the following after section 16 (as added by
this Act):
"Sec. 17. Staffing flexibilities
"(a) Permanent Appointments of Employees in the Corporation.-
-(1) Except as otherwise provided by this subsection, an employee
of the Corporation may be selected for a permanent appointment in
the competitive service in the Corporation through internal
competitive promotion procedures when the following conditions
are met:
"(A) the employee has completed, in the competitive service,
2 years of current continuous service under a term appointment or
any combination of term appointments;
"(B) such term appointment or appointments were made under
competitive procedures prescribed for permanent appointments;
"(C) the employee's performance under such term appointment
or appointments met established retention standards; and
"(D) the vacancy announcement for the term appointment from
which the conversion is made stated that there was a potential
for subsequent conversion to a permanent appointment.
"(2) An appointment under this subsection may be made only
to a position in the same line of work as a position to which the
employee received a term appointment under competitive
procedures.
"(b) Category Rating Systems.--(1) Notwithstanding
subchapter I of chapter 33 of title 5, United States Code, the
Corporation may establish category rating systems for evaluating
job applicants for positions in the competitive service, under
which qualified candidates are divided into two or more quality
categories on the basis of relative degrees of merit, rather than
assigned individual numerical ratings. Each applicant who meets
the minimum qualification requirements for the position to be
filled shall be assigned to an appropriate category based on an
evaluation of the applicant's knowledge, skills, and abilities
relative to those needed for successful performance in the job to
be filled.
"(2) Within each quality category established under
paragraph (1) of this subsection, preference eligibles shall be
listed ahead of individuals who are not preference eligibles. For
other than scientific and professional positions at or higher
than GS-9 (or equivalent), preference eligibles who have a
compensable service-connected disability of 10 percent or more,
and who meet the minimum qualification standards, shall be listed
in the highest quality category.
"(3) An appointing authority may select any applicant from
the highest quality category or, if fewer than three candidates
have been assigned to the highest quality category, from a merged
category consisting of the highest and second highest quality
categories. Notwithstanding the preceding sentence, the
appointing authority may not pass over a preference eligible in
the same or higher category from which selection is made, unless
the requirements of section 3317(b) or 3318(b) of title 5, United
States Code, as applicable, are satisfied.
"(c) Employee Details.--The Chief Operating Officer of the
Corporation may detail employees among the offices of the
Corporation without regard to the 120-day limitation in section
3341(b) of title 5, United States Code.
"(d) Probabationary Periods.--Notwithstanding any other
provision of law or regulation, the Corporation may establish a
probationary period under section 3321 of title 5, United States
Code, of up to 3 years for positions where the Corporation
determines that the nature of the work is such that a shorter
period is insufficient to demonstrate complete proficiency in the
position.
"(e) Limitations on Staffing Flexibility.--Notwithstanding
the preceding subsections of this section, no provision of this
section exempts the Corporation from--
"(1) any employment priorities established under direction
of the President for the placement of surplus or displaced
employees; or
"(2) its obligations under any court order or decree
relating to the employment practices of the Corporation or the
Department of Transportation.".
TITLE III--PROCUREMENT
ACQUISITIONS
Sec. 301. The Act of May 13, 1954 (33 U.S.C. 981, et seq.),
is amended by adding the following after section 17 (as added by
this Act):
"Sec. 18. Acquisitions
"(a) In General.--Except as otherwise provided in this
section, the Corporation shall abide by all applicable Federal
procurement laws and regulations when procuring property and
services.
"(b) Additional Authorities. -- When procuring property or
services, the Corporation may use any of the following
authorities, consistent with guidance provided by the
Administrator for Federal Procurement Policy pursuant to
subsection (c) of this section:
"(1) Two-phase Selection Procedures.--(A) The Corporation
may conduct a competition, which shall be considered to be a
competitive procedure for purposes of this or any other Act, in
which--
"(i) sources submit basic information, such as the offeror's
qualifications, the proposed conceptual approach, costs likely to
be associated with the proposed conceptual approach, past
performance information, and such additional information
requested by the contracting officer in the first phase; and
"(ii) a limited number of sources are selected to
participate in a competition in the second phase in accordance
with sections 303A and 303B of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253a and 253b), as
applicable.
"(B) Prior to the first-phase competition, a notice shall be
published in accordance with section 18 of the Office of Federal
Procurement Policy Act (41 U.S.C. 416) and sections 8(e), (f) and
(g) of the Small Business Act (15 U.S.C. 637(e), (f), and (g)),
except that, in lieu of section 18(b) of the Office of Federal
Procurement Policy Act and section 8(f) of the Small Business
Act, the notice need only include--
"(i) a general description of the scope or purpose of the
procurement that is sufficient for sources to make an informed
business decision whether to participate in the procurement;
"(ii) a description of the basis on which sources will be
selected to submit offers in the second phase; and
"(iii) any additional information the contracting officer
determines is appropriate.
"(C) Only those sources selected in the first-phase
competition shall be eligible to compete in the second phase,
which may include a single procurement or multiple procurements
within the general scope for the purpose stated in the notice.
"(D) The number of sources selected to compete in the second
phase shall be limited to that number of sources as the
contracting officer determines is appropriate and in the best
interest of the government.
"(2) Application of Simplified Procedures to Commercial
Items.-- Whenever the Corporation anticipates that commercial
items will be offered, the Corporation may acquire commercial
items by using the special simplified procedures for purchases of
commercial items set forth in the Federal Acquisition Regulation
without regard to any dollar limitations or expiration date of
the test of such procedures set forth in section 4202 of Public
Law 104-106 (Clinger-Cohen Act of 1996).
"(3) Flexible Wait Periods and Deadlines for Submission of
Offers.-- Consistent with international agreements, whenever the
Corporation is acquiring property or services that do not meet
the definition of commercial item set forth in section 4(12) of
the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)),
the Corporation may--
"(A) reduce the minimum period of time specified in section
18(a)(3)(A) of that Act (41 U.S.C. 416(a)(3)(A)) and section
8(e)(3)(B) of the Small Business Act (15 U.S.C. 637(e)(3)(B) that
an agency must wait after publication of notice before
solicitation is issued; and
"(B) establish flexible deadlines for the submission of bids
or proposals notwithstanding any deadlines set forth in section
18(a)(3)(B) of that Act (41 U.S.C. 416(a)(3)(B)) and section
8(e)(3)(B) of the Small Business Act (15 U.S.C. 637(e)(3)(B)).
Deadlines shall afford potential offerors a reasonable
opportunity to respond.
"(4) Modular Contracting.--(A) The Corporation's system
needs may be satisfied in successive acquisitions of modules,
each of which must be useful in itself or in combination with
other completed modules without the completion of subsequent
modules.
"(B) If the original module was awarded using competitive
procedures, the Corporation may award a contract for an
additional module by one of the following procedures, subject to
the requirements in paragraphs (4)(C), (4)(D), and (4)(E), or by
any other procedure authorized by law:
"(i) Make an award on a sole-source basis to a contractor
who was awarded a contract for an earlier module on the basis of
either a competition conducted pursuant to subparagraph (B)(ii)
or other competitive procedure; or
"(ii) Make an award on the basis of adequate competition
between a contractor who was awarded a contract for an earlier
module on the basis of either a competition conducted pursuant to
this subparagraph or other competitive procedure and at least one
offeror that has previously participated in competitions for
either the initial module or any subsequent follow-on module and
is expected to be competitive based on that participation.
"(C) The Corporation may exercise the authority
provided in paragraph (4)(B) to award a contract for a module
only if the solicitation for the initial module included--
"(i) a general description of the entire system to be
acquired that was sufficient to put potential offerors on notice
of the general scope of future modules and to enable them to make
an informed business judgment whether to submit a bid or a
proposal for the initial module; and
"(ii) a statement that the head of the Corporation reserves
the right to award subsequent modules pursuant to the authority
provided in paragraph (4)(B).
"(D)(i) Except as provided in subparagraph (D)(ii), the
Corporation shall publish a notice stating the Corporation's
intent to award a contract pursuant to the authority provided in
paragraph (4)(B)(i) or (4)(B)(ii) consistent with section 18 of
the Office of Federal Procurement Policy Act (41 U.S.C. 416) not
less than 30 days prior to the issuance of a solicitation for the
contract. The notice shall contain the information required by
Section 18(b) of the Office of Federal Procurement Policy Act (41
U.S.C. 416(b)), with the exception of the statement required by
paragraph (4) of such section, and shall invite persons who
believe that the proposed procurement approach is not in the best
interest of the Government to submit information supporting that
view.
"(ii) Notice is not required pursuant to subparagraph (D)(i)
if the contractor referred to in paragraph (4)(B) performed on a
module that contained cost, schedule, and performance goals and
the contractor met those goals.
"(E) The basis for award shall be documented. However, a
justification pursuant to section 303(f) of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 253(f)) or
section 8(h) of the Small Business Act (15 U.S.C. 637(h)) is not
required.
"(F) The Corporation may prescribe simplified source
selection procedures for the acquisition of modules, other than
the initial module, that are not to be acquired on a sole source
basis.
"(5) Streamlined Acquisition of Services from Small
Businesses.--(A) Whenever the Corporation is acquiring services
that do not meet the definition of 'commercial item' set forth in
section 4(12) of the Office of Federal Procurement Policy Act, 41
U.S.C. 403(12), the Corporation may use the special simplified
procedures applicable to procurements below the simplified
acquisition threshold as set forth in the Federal Acquisition
Regulation if--
"(i) the procurement is in an amount not greater than
$1,000,000;
"(ii) the procurement is conducted as a small business set-
aside pursuant to section 15(a) of the Small Business Act (15
U.S.C. 644(a)); and
"(iii) supply items are expected to constitute less than 20
percent of the total value of the contract.
"(B) The authority set forth in this paragraph--
"(i) may not be used to make an award on a sole
source basis; and
"(ii) does not apply to the procurement of
construction.
"(c) Implementation. -- The head of the Corporation, in
consultation with the Administrator for Federal Procurement
Policy, shall issue guidance to implement the authorities set
forth in this section. As part of the consultation, the
Administrator shall provide guidance to the Corporation, which
shall be designed to ensure, to the maximum extent practicable,
consistent implementation of these authorities by other
performance-based organizations with the same authorities.
"(d) Provisions Not Affected. -- Nothing in this section
shall be construed to waive civil rights or labor standards laws
applicable to federal contracts.".
TITLE IV -- OPERATIONS AND FINANCE
Sec. 401. Section 4 of the Act of May 13, 1954 (33 U.S.C.
984), is amended--
(1) in subsection (a), by striking both paragraphs
designated "(13)" and inserting the following after paragraph
(12):
"(13) shall accept such amounts as may be transferred to the
Corporation under section 9505(c)(1) of title 26, except that
such amounts shall be available only for the purpose of operating
and maintaining those works which the Corporation is obligated to
operate and maintain under subsection (a) of section 983 of this
title;
"(14) may enter into agreements with other Federal, state,
local and Canadian agencies to provide goods and services within
the scope of their mission, (except that no Federal agency may
purchase goods and services under contracts entered into or
administered by the Saint Lawrence Seaway Development Corporation
using any authority provided by section 18(b) of this Act unless
the purchase is approved in advance by the senior procurement
official responsible for purchasing by the ordering agency) and
the Corporation shall include overhead, allocated direct costs,
modernization, and system enhancements as costs to be factored
into the prices it charges agencies for such goods and services;
"(15) may procure the services of experts and consultants
when necessary in the conduct of its activities;
"(16) may accept services from the Department of
Transportation provided they are agreed to in advance by the
Chief Operating Officer and the appropriate Departmental officer;
and
"(17) is subject to only those regulations, orders, and
other directives of the Department of Transportation that the
Secretary specifically makes applicable to it after the date of
enactment of this paragraph."; and
(2) by striking subsection (b) and substituting the
following:
"(b) The Corporation may retain and use, without fiscal year
limitation, its revenues and receipts from whatever source,
including the annual base payment from the Harbor Services Fund,
or another source of funding authorized by law, and interest from
its emergency cash reserves, in performing its activities,
including modernization, purchasing capital equipment, and
handling inventory, except as specifically provided in paragraph
(a)(12) of this section.".
Sec. 402. Section 5 of the Act of May 13, 1954 (33 U.S.C.
985), is amended to read as follows:
"Sec. 5. Financing
"(a) In General.--To finance its activities, the Corporation
may issue revenue bonds payable from corporate revenue to the
Secretary of the Treasury subject to approval of the Secretary of
the Treasury. The total face value of all bonds so issued shall
not be greater than $3,200,000. Not more than fifty percent of
the bonds may be issued during any one year. Such bonds shall be
in such forms and denominations and be subject to such terms and
conditions as may be prescribed by the Secretary of the Treasury.
Such obligations shall have maturities agreed upon by the
Corporation and the Secretary of the Treasury, not in excess of
fifty years. Such bonds shall bear interest at a rate determined
by the Secretary of the Treasury, taking into consideration
current yields on outstanding marketable obligations of the
United States of comparable maturities. Such obligations may be
redeemable at the option of the Corporation before maturity in
such manner as may be stipulated in such obligations, but the
obligations thus redeemed shall not be refinanced by the
Corporation. The Secretary of the Treasury is authorized to
purchase any obligations of the Corporation to be issued
hereunder and for such purpose the Secretary of the Treasury is
authorized to use as a public debt transaction the proceeds from
the sale of any securities issued under chapter 31 of title 31,
United States Code, and the purposes for which securities may be
issued under chapter 31 of title 31 are extended to include any
purchases of the Corporation's obligations hereunder.
"(b) Annual Base Payment.--Beginning in fiscal year 2000, or
concurrent with implementation of the performance agreement,
whichever is later in time, and in each fiscal year thereafter,
the Secretary of the Treasury shall transfer to the Corporation
from the Harbor Services Fund, or another source of funding
authorized by law, a dollar amount equal to the number
representing the five year average of United States international
tonnage, in metric tons, moved through the Seaway, multiplied by
a factor of 1.076, and adjusted for inflation by the percentage
difference between the Consumer Price Index for all urban
consumers (CPI-U) for the first quarter of calendar year 1996,
and the CPI-U for the first quarter of the calendar year in which
an annual payment is determined, subject to the following:
"(1) the first base five year average will be the average
tonnage for the calendar year period 1994 through 1998 and, for
subsequent fiscal years, the five calendar year period will begin
with the year succeeding the first year of the previous base
period;
"(2) United States international tonnage means United
States non-Canadian imports and exports moving between United
States and overseas origins and destinations, including
transhipments through Canada;
"(3) the Secretary of the Treasury shall make the transfer
to the Corporation on the first day of each quarter and in equal
quarterly amounts;
"(4) the amount of the annual base payment and method of
computation shall remain in effect unless changed by an Act of
Congress made expressly applicable to the Corporation; and
"(5) the level of the multiplier shall remain in effect
unless changed by an Act of Congress made expressly applicable to
the Corporation.
"(c) Use of Payment.--The Chief Operating Officer is
authorized to use the annual payments from the Harbor Services
Fund, or another source of funding authorized by law, to carry
out the mission of the Corporation and shall consider, among
other factors, the operational and capital needs of the
Corporation, and other revenues available to the Corporation.
"(d) Use of Emergency Cash Reserves.--The Chief Operating
Officer is authorized to use the Corporation's emergency cash
reserves to:
"(1) finance costs associated with unanticipated events that
could threaten the safe and uninterrupted use of the Seaway;
"(2) finance capital expenses; and
"(3) finance other necessary costs when the Chief Operating
Officer determines that annual payments from the Harbor Services
Fund, or another source of funding authorized by law, and other
available revenue, are insufficient to meet other necessary
expenses of the Corporation.
"(e) Deposit of Emergency Cash Reserves and Other Revenues.-
-The Corporation may deposit funds from the Corporation's
emergency cash reserves and other revenues in the Treasury's
Minority Bank Deposit Program, except that the aggregate amount
of the funds deposited shall not exceed the aggregate amount of
the Corporation's deposits under that program on June 30, 1999.
"(f) Investment of Cash Reserves.--Upon the request of the
Corporation, the Secretary of the Treasury shall invest the
Corporation's cash reserves in public debt securities with
maturities suitable to the needs of the Corporation, as
determined by the Corporation, and bearing interest at rates
determined by the Secretary of the Treasury, taking into
consideration current market yields on outstanding marketable
obligations of the United States of comparable maturities,
provided that no portion of the amounts transferred to the
Corporation under subsection (b) of this section shall be used to
purchase such public debt securities.".
TITLE V--CONFORMING AND TECHNICAL AMENDMENTS
Sec. 501. Section 311 of the Department of Transportation
and Related Agencies Appropriations Act, 1983 (33 U.S.C. 985a) is
repealed.
Sec. 502. Section 4 of the Act of May 13, 1954 (33 U.S.C.
984), is amended by substituting "Chief Operating Officer" for
"Administrator" in paragraph (a)(8).
Sec. 503. Section 8 of the Act of May 13, 1954 (33 U.S.C.
987), is amended by substituting "Chief Operating Officer" for
"Administrator" in subsection (a).
Sec. 504. Section 5315 of title 5, United States Code, is
amended by deleting "Administrator of the Saint Lawrence Seaway
Development Corporation".
Sec. 505. Section 1132 of P.L. 99-662 (33 U.S.C. 2309) is
amended by substituting "Chief Operating Officer" for
"Administrator" in paragraph (b)(3)(E).
Sec. 506. Section 110 of title 49, United States Code, is
amended by striking subsections (a) and (b) and substituting the
following:
"The Chief Operating Officer of the Saint Lawrence Seaway
Development Corporation appointed under section 2 of the Act of
May 13, 1954 (33 U.S.C. 982), reports directly to the Secretary
of Transportation.".
Sec. 507. This Act shall take effect on October 1, 1999,
except that the authority of the Secretary to appoint the Chief
Operating Officer shall take effect on the date of enactment;
provided, however that the amendments made by section 402(b)
(financing) shall take effect only after the amendments made by
section 102(b) (performance agreement) have been implemented.
TITLE VI - - ASSESSMENT AND REPORTING PROVISIONS
Sec. 601. Section 10 of the Act of May 13, 1954 (33 U.S.C.
989), is amended--
(1) by striking "Annual and special reports" in the section
heading and substituting "Report"; and
(2) by inserting a new paragraph (a) to read as follows:
"(a) Not later than five years after the effective date of
this section, the Secretary of Transportation shall provide to
the President and the Congress a report on the operation and
effectiveness of the provisions of this Act and the costs
associated therewith. As part of the report, the Secretary shall
include any recommendations for legislation the Secretary deems
necessary or appropriate as a result of his or her analysis of
the operation and effectiveness of the Act and the costs
associated therewith.".