Alternative capability-based pricing

Chapter 287 of title 10, United States Code, is amended by adding at the end the following new section: 3906. Alternative capability-based pricing (a) In general Except as provided by subsection (b), the head of an agency may use alternative capability-based analysis for the acquisition of a commercial solution to determine whether the price for a commercial solution is fair and reasonable based on the value to the Government as determined under such analysis. (b) Exception Subsection (a) does not apply with respect to the acquisition of a commercial solution under a subcontract. (c) Definitions In this section: (1) The term alternative capability-based analysis means an analysis of the value to the Government of a commercial solution that determines such value based on one or more of the following criteria: (A) The suitability of the commercial solution for the particular purpose for which the Government would acquire such commercial solution. (B) The benefits obtained by the Government as a result of improvements in capability, effectiveness, efficiency, process, or speed to delivery provided by such commercial solution. (C) The estimated total cost avoidance resulting from the acquisition and use of such commercial solution, including the cost avoidance resulting from reductions to operations, sustainment, or risks to mission by replacing fielded capabilities with such commercial solution. (D) Input from the intended end users of such commercial solution on the potential value of the improvements to capabilities or processes provided by such commercial solution. (2) The term commercial solution means a product or service, including an integrated combination of products, services, or products and services— (A) that is sold, leased, or licensed in the commercial marketplace, or offered for sale, lease, or license in the commercial marketplace; and (B) the provider of which contemporaneously offers such solution or a solution that is similar to such solution to the general public or public entities, including State and local governments and foreign governments, under terms and conditions that are similar to the terms and conditions under which such solution is offered to the Federal Government..