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TITLE X GENERAL PROVISIONS

P. L. 108-375

House Conference Report 108-767

SEC. 1073. EVALUATION OF PROCUREMENT PRACTICES RELATING TO TRANSPORTATION OF SECURITY- SENSITIVE CARGO.

(a) EVALUATION REQUIREMENT. The Secretary of Defense shall evaluate the procurement practices of the Department of Defense in the award of service contracts for domestic freight transportation for security-sensitive cargo (such as arms, ammunitions, explosives, and classified material) to determine whether such practices are in the best interests of the Department of Defense.

(b) REPORT. Not later than January 1, 2005, the Secretary of Defense shall submit to the Committees on Armed Services of the House of Representatives and the Senate a report on the results of the evaluation conducted under subsection (a).

The House bill contained a provision (sec. 1064) that would require the Secretary of Defense to evaluate whether, and under what conditions, in the award of service contracts for domestic freight transportation for security-sensitive cargo, the Secretary should not consider an offer or tender from more than one motor carrier that is a part of a group of motor carriers under common financial or administrative control.  The provision would also direct the Secretary to submit a report to the Committees on Armed Services of the Senate and the House of Representatives with the results of the evaluation not later than January 1, 2005.

The Senate amendment contained no similar provision.

The Senate recedes with an amendment that would direct the Secretary to evaluate the award of service contracts for domestic freight transportation for security-sensitive cargo (such as arms, ammunition, explosives, and classified material) to determine whether such practices are in the best interest of the Department of Defense, and would direct the Secretary to submit a report to the Committees on Armed Services of the Senate and the House of Representatives with the results of the evaluation not later than January 1, 2005.

House Report 108-491

This section would require the Secretary of Defense to evaluate whether, and under what circumstances, it would be appropriate to limit competition for domestic freight transportation of security-sensitive cargo to motor carriers that are not part of a group of motor carriers under common financial or administrative control. The Secretary would be required to submit the evaluation to the Senate Armed Services Committee and the House Armed Services Committee by January 1, 2005.

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