How To Use the NDAA Pages

Back to NDAA Contents

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

Subtitle C — Amendments To General Contracting Authorities, Procedures, And Limitations

P. L. 114-

House Conference Report. 114-840

(a) Increased Threshold.—Subsection (a) of section 2330a of title 10, United States Code, is amended by striking “in excess of the simplified acquisition threshold” and inserting “in excess of $3,000,000”.

(b) Specification Of Services.—Subsection (a) of such section is further amended by striking the period at the end and inserting the following:“, for services in the following service acquisition portfolio groups:

“(1) Logistics management services.

“(2) Equipment related services.

“(3) Knowledge-based services.

“(4) Electronics and communications services.”.

(c) Inventory Summary.—Subsection (c) of such section is amended—

(1) by striking “(c) Inventory.—” and inserting “(c) Inventory Summary.—”; and

(2) in paragraph (1), by striking “submit to Congress an annual inventory” and all that follows through “for or on behalf” and inserting “prepare an annual inventory, and submit to Congress a summary of the inventory, of activities performed during the preceding fiscal year pursuant to staff augmentation contracts on behalf”.

(d) Elimination Of Certain Requirements.—Such section is further amended—

(1) by striking subsections (d), (g), and (h); and

(2) by redesignating subsections (e), (f), (i), and (j) as subsections (d), (e), (g), and (h), respectively.

(e) Specification Of Services To Be Reviewed.—Subsection (d), as so redesignated, of such section, is amended in paragraph (1) by inserting after “responsible” the following:“, with particular focus and attention on the following categories of high-risk product service codes (also referred to as Federal supply codes):

“(A) Special studies or analysis that is not research and development.

“(B) Information technology and telecommunications.

“(C) Support, including professional, administrative, and management.”.

(f) Comptroller General Report.—Such section is further amended by inserting after subsection (e), as so redesignated, the following new subsection (f):

“(f) Comptroller General Report.—Not later than March 31, 2018, the Comptroller General of the United States shall submit to the congressional defense committees a report on the status of the data collection required in subsection (a) and an assessment of the efforts by the Department of Defense to implement subsection (e).”.

(g) Definitions.—Subsection (h), as so redesignated, of such section is amended by adding at the end the following new paragraphs:

“(6) The term ‘service acquisition portfolio groups’ means the groups identified in Department of Defense Instruction 5000.74, Defense Acquisition of Services (January 5, 2016) or successor guidance.

“(7) The term ‘staff augmentation contracts’ means services contracts for personnel who are physically present in a Government work space on a full-time or permanent part-time basis, for the purpose of advising on, providing support to, or assisting a Government agency in the performance of the agency's missions, including authorized personal services contracts (as that term is defined in section 2330a(g)(5) of this title).”.

The Senate bill contained a provision (sec. 820) that would amend section 2330a of title 10, United States Code, to clarify the applicability of the contractor inventory requirement to staff augmentation contracts and to reduce data collection and unnecessary reporting requirements.

The House amendment contained a provision (sec. 803) that would amend section 2330a of title 10, United States Code, to revise the current requirement related to how the Department of Defense accounts for and reports contracts for services.

The Senate recedes with an amendment that would set the inventory collection threshold at contracts for services in excess of $3.0 million and would narrow the focus of the inventory collection requirement to staff augmentation contracts as informed by the specified Service Acquisition Portfolio Groups. Rather than providing the inventory itself to the Congress, the amendment would require the Secretary of Defense to provide to Congress an annual summary of the inventory activities performed during the past year pursuant to staff augmentation contracts as defined in the amendment. Additionally, the amendment removes the Department of Defense Office of the Inspector General reporting requirement and reduces the annual Comptroller General reporting requirement to a one-time review in 2018 that would cover the changes implemented by this Act.

In performing the review and planning requirements in (d), the conferees direct the Secretary of the military department or the head of the Defense Agency to focus on the 17 Product Service Codes identified by the Office of Federal Procurement Policy and the Government Accountability Office in report GAO-16-46 as high risk for including services that are closely associated with inherently governmental functions.

The conferees direct the Secretary of Defense to brief the Committees on Armed Services of the Senate and House of Representatives, no later than February 1, 2017, on the plan to implement the inventory and reporting changes required by this Act, particularly implementation of the inventory of Product Service Codes and staff augmentation contracts. The briefing shall include information on differences in the number and value of contracts captured before and after the changes made by this Act.