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Conference Report 107-772 - National Defense Authorization Act for Fiscal Year 2003

Conference Report Section

Legislative History

(a) REQUIREMENT FOR ASSESSMENT- The Secretary of Defense shall carry out an assessment of purchases by the Department of Defense of products and services through contracts entered into with other Federal departments and agencies.

(b) PERIOD COVERED BY ASSESSMENT- The assessment required by subsection (a) shall cover purchases made during fiscal years 2000 through 2002.

(c) REPORT- Not later than February 1, 2003, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the results of the assessment conducted under subsection (a). The report shall include the following:

(1) The total amount paid by the Department of Defense as fees for the acquisition of such products and services.

(2) A determination of whether such total amount paid is excessive and should be reduced.

(3) A description of the benefits received by the Department as a result of purchasing such products and services through such contracts.

Conference Report 107-772

The Senate amendment contained a provision (sec. 815) that would require the Secretary of Defense to carry out an assessment to determine the amount paid by the Department of Defense as fees for the acquisition of property and services under contracts entered by other federal departments and agencies and whether these amounts could be put to better use. (See Senate Amendment and Senate Report 107-151 below)

The House bill contained no similar provision. 

The House recedes with an amendment that would require the Department to consider both the costs and the benefits of using contracts entered by other federal departments and agencies.

Senate Amendment

SEC. 815. ASSESSMENT REGARDING FEES PAID FOR ACQUISITIONS UNDER OTHER AGENCIES' CONTRACTS.

(a) REQUIREMENT FOR ASSESSMENT AND REPORT- Not later than March 1, 2003, the Secretary of Defense shall carry out an assessment to determine the total amount paid by the Department of Defense as fees for the acquisition of property and services by the Department of Defense under contracts between other departments and agencies of the Federal Government and the sources of the property and services in each of fiscal years 2000, 2001, and 2002, and submit a report on the results of the assessment to Congress.

(b) CONTENT OF REPORT- The report shall include the Secretary's views on what, if any, actions should be taken within the Department of Defense to reduce the total amount of the annual expenditures on fees described in subsection (a) and to use the amounts saved for other authorized purposes.

Senate Report 107-151

Assessment regarding fees paid for acquisitions under other agencies' contracts (sec. 815)

The committee recommends a provision that would require the Secretary of Defense to carry out an assessment to determine the amount paid by the Department of Defense (DOD) as fees for the acquisition of property and services under contracts entered by other federal departments and agencies and whether these amounts could be put to better use.

The committee is concerned that the Department continues to order excessive quantities of products and services under contracts entered by other federal departments and agencies. In many cases, the personnel of other departments and agencies have considerably less expertise in procurement in general, and in the specific products and services to be acquired, than DOD personnel. The committee believes that the assessment required by this provision is a necessary step to ensure that the Department has appropriate management control over purchases conducted through other federal departments and agencies.