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

Subtitle A--Acquisition Policy and Management

P. L. 112-81

House Conference Report 112-329

SEC. 807. IMPLEMENTATION OF RECOMMENDATIONS OF DEFENSE SCIENCE BOARD TASK FORCE ON IMPROVEMENTS TO SERVICE CONTRACTING.

    (a) Plan for Implementation- Not later than 180 days after the date of the enactment of this Act, the Under Secretary of Defense for Acquisition, Technology, and Logistics shall, acting pursuant to the Under Secretary's responsibility under section 2330 of title 10, United States Code, develop a plan for implementing the recommendations of the Defense Science Board Task Force on Improvements to Service Contracting.

    (b) Elements- The plan developed pursuant to subsection (a) shall include, to the extent determined appropriate by the Under Secretary for Acquisition, Technology, and Logistics, the following:

      (1) Meaningful incentives to services contractors for high performance at low cost, consistent with the objectives of the Better Buying Power Initiative established by the Under Secretary.

      (2) Improved means of communication between the Government and the services contracting industry in the process of developing requirements for services contracts.

      (3) Clear guidance for defense acquisition personnel on the use of appropriate contract types for particular categories of services contracts.

      (4) Formal certification and training requirements for services acquisition personnel, consistent with the requirements of sections 1723 and 1724 of title 10, United States Code.

      (5) Appropriate emphasis on the recruiting and training of services acquisition personnel, consistent with the strategic workforce plan developed pursuant to section 115b of title 10, United States Code, and the funds available through the Department of Defense Acquisition Workforce Development Fund established pursuant to section 1705 of title 10, United States Code.

      (6) Policies and guidance on career development for services acquisition personnel, consistent with the requirements of sections 1722a and 1722b of title 10, United States Code.

      (7) Actions to ensure that the military departments dedicate portfolio-specific commodity managers to coordinate the procurement of key categories of contract services, as required by section 2330(b)(3)(C) of title 10, United States Code.

      (8) Actions to ensure that the Department of Defense conducts realistic exercises and training that account for services contracting during contingency operations, as required by section 2333(e) of title 10, United States Code.

    (c) Comptroller General Report- Not later than 18 months after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the congressional defense committees a report on the following:

      (1) The actions taken by the Under Secretary of Defense for Acquisition, Technology, and Logistics to carry out the requirements of this section.

      (2) The actions taken by the Under Secretary to carry out the requirements of section 2330 of title 10, United States Code.

      (3) The actions taken by the military departments to carry out the requirements of section 2330 of title 10, United States Code.

      (4) The extent to which the actions described in paragraphs (1), (2), and (3) have resulted in the improved acquisition and management of contract services.

Implementation of recommendations of Defense Science Board Task Force on improvements to Service Contracting (sec. 807)

The Senate amendment contained a provision (sec. 822) that would require the Department of Defense to develop a plan to implement the recommendations of a Defense Science Board report on service contracting.

The House bill contained no similar provision.

The House recedes with an amendment striking language requiring a taxonomy and definitions for the tracking of contract services. This issue has been already addressed in previously-enacted legislation requiring an inventory of contract services.

Senate Report 112-26

Implementation of recommendations of Defense Science Board task force on service contracting (sec. 822)

The committee recommends a provision that would require the Under Secretary of Defense for Acquisition, Technology, and Logistics to develop a plan for implementing the recommendations of the Defense Science Board (DSB) Task Force on Improvements to Service Contracting, which was established pursuant to the directive of section 802 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84).

Over the last 10 years, the committee has initiated numerous legislative initiatives directed at addressing shortcomings in the acquisition of contract services by the Department of Defense (DOD). These provisions include:

Section 821 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398), which required DOD to establish a preference for the use of performance-based service contracts, establish centers for excellence in service contracting, and improve the training provided to personnel engaged in contracting for services.

Section 2330 of title 10, United States Code (enacted by section 801 of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107) and amended by section 812 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163)), which requires DOD to establish a management structure for the procurement of contract services.

Section 2330a of title 10, United States Code (enacted by section 801 of the National Defense Authorization Act for Fiscal Year 2002 and amended by section 807 of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 109[110]-181)), which requires DOD to develop and review a comprehensive inventory of contract services.

Section 806 of the National Defense Authorization Act for Fiscal Year 2008 (codified as section 235 of title 10, United States Code, by section 803 of the National Defense Authorization Act for Fiscal Year 2010), which requires DOD to specify annual amounts requested for contract services in budget justification documents submitted to Congress.

Section 808 of the National Defense Authorization Act for Fiscal Year 2008, which requires DOD to conduct regular, independent management reviews of contracts for services.

Section 863 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (Public Law 111-383), which requires DOD to establish a process for identifying, assessing, reviewing, and validating requirements for the acquisition of contract services.

As noted by the DSB task force, DOD has made significant efforts to implement these requirements. For example, each of the military departments has appointed a senior executive to oversee the management of contract services and the Director of Defense Procurement and Acquisition Policy has begun to implement independent management reviews of contracts for services. The progress made by the Air Force Program Executive Officer for Services has been particularly impressive.

Despite these efforts, however, the DSB task force reported major deficiencies in DOD's management, organization, and processes for the acquisition of contract services. For example, the task force found:

`Across the Department, there is little visibility into, and guidance for who, what, and how the DOD buys services. As a result, there is overwhelming pressure to simply execute operations and maintenance funds to the maximum amount allotted with little regard for the efficiencies that could be realized through a more centralized approach. . . .

`Across the acquisition workforce, rote compliance is rewarded and therefore, creativity is stifled. . . .

`The task force also observed an overall lack of appropriate training, education, and experience for all people involved. . . .

`Fundamentally, the entire defense workforce lacks knowledge and experience in services contracting, auditing, and oversight.'

In the current budget environment, the committee concludes that DOD must take significant additional steps to improve the management and oversight of its acquisition of contract services.

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