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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle F Improve Acquisition Act

P. L. 111-

Joint Explanatory Statement of the Committees on Armed Services of the U. S. Senate and House of Representatives on H. R. 6523

From H. R. 6523

SEC. 883. DISCLOSURE AND TRACEABILITY OF THE COST OF DEPARTMENT OF DEFENSE HEALTH CARE CONTRACTS.

    (a) Report-

      (1) REQUIREMENT- Not later than September 30, 2011, the Comptroller General of the United States shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a detailed report on the additional cost to the Department of Defense associated with compliance with the Patient Protection and Affordable Care Act (Public Law 111-148) and the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152).

      (2) MATTERS COVERED- The report required by paragraph (1) shall include an estimate of--

        (A) the additional costs, if any, incurred on health care contracts to comply with such Acts; and

        (B) any other additional costs to the Department of Defense to comply with such Acts.

    (b) Health Care Contract Defined- In this section, the term `health care contract' means a contract awarded by the Department of Defense in an amount greater than the simplified acquisition threshold for the acquisition of any of the following:

      (1) Medical supplies.

      (2) Health care services and administration, including the services of medical personnel.

      (3) Durable medical equipment.

      (4) Pharmaceuticals.

      (5) Health care-related information technology.


From H.R. 5136:  National Defense Authorization Act for Fiscal Year 2011

SEC. 304. DISCLOSURE AND TRACEABILITY OF THE COST OF DEPARTMENT OF DEFENSE HEALTH CARE CONTRACTS.

    (a) Disclosure Requirement- The Secretary of Defense shall require--

      (1) an offeror that submits a bid or proposal in response to an invitation for bids or a request for proposals issued by a component of the Department of Defense for a health care contract to submit with the bid or proposal a disclosure of the additional cost, if any, contained in such bid or proposal associated with compliance with the Patient Protection and Affordable Care Act (Public Law 111-148) and the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152); and

      (2) a contractor for a health care contract awarded following the date of the enactment of this Act to disclose on an annual basis the additional cost, if any, incurred for such contract associated with compliance with the Patient Protection and Affordable Care Act (Public Law 111-148) and the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152).

    (b) Report-

      (1) REQUIREMENT- Not later than April 1, 2011, and each April 1st thereafter until April 1, 2016, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a detailed report on the additional cost to the Department of Defense associated with compliance with the Patient Protection and Affordable Care Act (Public Law 111-148) and the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152).

      (2) MATTERS COVERED- The report required by paragraph (1) shall include--

        (A) the projected costs of compliance for all health care contracts awarded during the preceding year, as disclosed in a bid or proposal in accordance with subsection (a)(1);

        (B) for all other health care contracts, the incurred cost of compliance for the preceding year, as disclosed in accordance with subsection (a)(2); and

        (C) any additional costs to the Department of Defense necessary to comply with such Acts.

    (c) Health Care Contract Defined- In this section, the term `health care contract' means a contract in an amount greater than the simplified acquisition threshold for the acquisition of any of the following:

      (1) Medical supplies.

      (2) Health care services and administration, including the services of medical personnel.

      (3) Durable medical equipment.

      (4) Pharmaceuticals.

      (5) Health care-related information technology.


From H. R. 5013:  Implementing Management for Performance and Related Reforms to Obtain Value in Every Acquisition Act of 2010

SEC. 304. DISCLOSURE AND TRACEABILITY OF THE COST OF DEPARTMENT OF DEFENSE HEALTH CARE CONTRACTS.

    (a) Disclosure Requirement- The Secretary of Defense shall require--

      (1) an offeror that submits a bid or proposal in response to an invitation for bids or a request for proposals issued by a component of the Department of Defense for a health care contract to submit with the bid or proposal a disclosure of the additional cost, if any, contained in such bid or proposal associated with compliance with the Patient Protection and Affordable Care Act (Public Law 111-148) and the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152); and

      (2) a contractor for a health care contract awarded following the date of the enactment of this Act to disclose on an annual basis the additional cost, if any, incurred for such contract associated with compliance with the Patient Protection and Affordable Care Act (Public Law 111-148) and the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152).

    (b) Report-

      (1) REQUIREMENT- Not later than April 1, 2011, and each April 1st thereafter until April 1, 2016, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a detailed report on the additional cost to the Department of Defense associated with compliance with the Patient Protection and Affordable Care Act (Public Law 111-148) and the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152).

      (2) MATTERS COVERED- The report required by paragraph (1) shall include--

        (A) the projected costs of compliance for all health care contracts awarded during the preceding year, as disclosed in a bid or proposal in accordance with subsection (a)(1);

        (B) for all other health care contracts, the incurred cost of compliance for the preceding year, as disclosed in accordance with subsection (a)(2); and

        (C) any additional costs to the Department of Defense necessary to comply with such Acts.

    (c) Health Care Contract Defined- In this section, the term `health care contract' means a contract in an amount greater than the simplified acquisition threshold for the acquisition of any of the following:

      (1) Medical supplies.

      (2) Health care services and administration, including the services of medical personnel.

      (3) Durable medical equipment.

      (4) Pharmaceuticals.

      (5) Health care-related information technology.

Disclosure and traceability of the cost of Department of Defense health care contracts (sec. 883)

The House bill contained a provision (sec. 304 of division D) that would require each offeror on a Department of Defense health care contract to submit with its bid or proposal a disclosure of the additional cost contained in the bid or 81 proposal as a result of health care reform legislation.

The Senate committee-reported bill contained no similar provision.

The agreement includes the House provision with an amendment to require a one-time study and report on added costs.


No section analysis in H. Rpt. 111-465, accompanying H. R. 5013.

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