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tices and achieve cost savings in the acquisition and management of inventory items.

(Added P.L. 101-510, §323(a)(1), Nov. 5, 1990, 104 Stat. 1530; amended P.L. 102-190, § 347(a), Dec. 5, 1991, 105 Stat. 1347.)

CHAPTER 146-CONTRACTING FOR PERFORMANCE OF CIVILIAN COMMERCIAL OR INDUSTRIAL TYPE FUNCTIONS

Sec.

2460. Definition of depot-level maintenance and repair.

2461.

2461a.

2462. 2463.

2464.

2465.

2466.

2467.

[2468.

2469.

[2469a. 2470.

[2471.

2472.

2473.

2474.

2475.

Commercial or industrial type functions: required studies and reports before conversion to contractor performance.

Development of system for monitoring cost savings resulting from workforce reductions.

Contracting for certain supplies and services required when cost is lower. Collection and retention of cost information data on converted services and functions.

Core logistics capabilities.

Prohibition on contracts for performance of firefighting or security-guard functions.

Limitations on the performance of depot-level maintenance of materiel. Cost comparisons: inclusion of retirement costs; consultation with employees; waiver of comparison.

Repealed.]

Contracts to perform workloads previously performed by depot-level activi-
ties of the Department of Defense: requirement of competition.
Repealed.]

Depot-level activities of the Department of Defense: authority to compete
for maintenance and repair workloads of other Federal agencies.
Repealed.]

Management of depot employees.

Procurements from the small arms production industrial base.

Centers of Industrial and Technical Excellence: designation; public-private partnerships.

Consolidation, restructuring, or reengineering of organizations, functions, or activities: notification requirements.

§ 2460. Definition of depot-level maintenance and repair

(a) IN GENERAL.-In this chapter, the term "depot-level maintenance and repair" means (except as provided in subsection (b)) material maintenance or repair requiring the overhaul, upgrading, or rebuilding of parts, assemblies, or subassemblies, and the testing and reclamation of equipment as necessary, regardless of the source of funds for the maintenance or repair or the location at which the maintenance or repair is performed. The term includes (1) all aspects of software maintenance classified by the Department of Defense as of July 1, 1995, as depot-level maintenance and repair, and (2) interim contractor support or contractor logistics support (or any similar contractor support), to the extent that such support is for the performance of services described in the preceding sentence.

(b) EXCEPTIONS. (1) The term does not include the procurement of major modifications or upgrades of weapon systems that are designed to improve program performance or the nuclear refueling of an aircraft carrier. A major upgrade program covered by this exception could continue to be performed by private or public sector activities.

(2) The term also does not include the procurement of parts for safety modifications. However, the term does include the installation of parts for that purpose.

(Added P.L. 105-85, § 355(a), Nov. 18, 1997, 111 Stat. 1693; amended P.L. 105-261, § 341, Oct. 17, 1998, 112 Stat. 1973.)

§ 2461. Commercial or industrial type functions: required studies and reports before conversion to tractor performance

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(a) REPORTING AND ANALYSIS REQUIREMENTS AS PRECONDITION TO CHANGE IN PERFORMANCE.-A commercial or industrial type function of the Department of Defense that, as of October 1, 1980, was being performed by Department of Defense civilian employees may not be changed to performance by the private sector until the Secretary of Defense fully complies with the reporting and analysis requirements specified in subsections (b) and (c).

(b) NOTIFICATION AND ELEMENTS OF ANALYSIS. (1) Before commencing to analyze a commercial or industrial type function described in subsection (a) for possible change to performance by the private sector, the Secretary of Defense shall submit to Congress a report containing the following:

(A) The function to be analyzed for possible change.

(B) The location at which the function is performed by Department of Defense civilian employees.

(C) The number of civilian employee positions potentially affected.

(D) The anticipated length and cost of the analysis, and a specific identification of the budgetary line item from which funds will be used to cover the cost of the analysis.

(E) A certification that a proposed performance of the commercial or industrial type function by persons who are not civilian employees of the Department of Defense is not a result of a decision by an official of a military department or Defense Agency to impose predetermined constraints or limitations on such employees in terms of man years, end strengths, full-time equivalent positions, or maximum number of employees.

(2) The duty to prepare a report under paragraph (1) may be delegated. A report prepared below the major command or claimant level of a military department, or below the equivalent level in a Defense Agency, pursuant to any such delegation shall be reviewed at the major command, claimant level, or equivalent level, as the case may be, before submission to Congress.

(3) An analysis of a commercial or industrial type function for possible change to performance by the private sector shall include the following:

(A) An examination of the cost of performance of the function by Department of Defense civilian employees and by one or more private contractors to demonstrate whether change to performance by the private sector will result in savings to the Government over the life of the contract, including in the examination the following:

(i) The cost to the Government, estimated by the Secretary of Defense (based on offers received), for performance of the function by the private sector.

(ii) The estimated cost to the Government of Department of Defense civilian employees performing the function.

(iii) In addition to the costs referred to in clause (i), an estimate of all other costs and expenditures that the Government would incur because of the award of such a contract.

(B) An examination of the potential economic effect of performance of the function by the private sector on the following: (i) Employees of the Department of Defense who would be affected by such a change in performance.

(ii) The local community and the Government, if more than 50 employees of the Department of Defense perform the function.

(C) An examination of the effect of performance of the function by the private sector on the military mission associated with the performance of the function.

(4)(A) A representative individual or entity at a facility where a commercial or industrial type function is analyzed for possible change in performance may submit to the Secretary of Defense an objection to the analysis on the grounds that the report required by paragraph (1) has not been submitted or that the certification required by paragraph (1)(E) is not included in the report submitted as a condition for the analysis. The objection shall be in writing and shall be submitted within 90 days after the following date:

(i) In the case of a failure to submit the report when required, the date on which the representative individual or an official of the representative entity authorized to pose the objection first knew or should have known of that failure.

(ii) In the case of a failure to include the certification in a submitted report, the date on which the report was submitted to Congress.

(B) If the Secretary determines that the report required by paragraph (1) was not submitted or that the required certification was not included in the submitted report, the commercial or industrial type function covered by the analysis to which objected may not be the subject of a solicitation of offers for, or award of, a contract until, respectively, the report is submitted or a report containing the certification in full compliance with the certification requirement is submitted.

(c) SUBMISSION OF ANALYSIS RESULTS.-(1) Upon the completion of an analysis of a commercial or industrial type function described in subsection (a) for possible change to performance by the private sector, the Secretary of Defense shall submit to Congress a report containing the results of the analysis, including the results of the examinations required by subsection (b)(3).

(2) The report shall also contain the following:

(A) The date when the analysis of the function was commenced.

(B) The Secretary's certification that the Government calculation of the cost of performance of the function by Department of Defense civilian employees is based on an estimate of

the most cost effective manner for performance of the function by Department of Defense civilian employees.

(C) The number of Department of Defense civilian employees who were performing the function when the analysis was commenced and the number of such employees whose employment was or will be terminated or otherwise affected by changing to performance of the function by the private sector or by implementation of the most efficient organization of the func

tion.

(D) The Secretary's certification that the factors considered in the examinations performed under subsection (b)(3), and in the making of the decision regarding changing to performance of the function by the private sector or retaining performance in the most efficient organization of the function, did not include any predetermined personnel constraint or limitation in terms of man years, end strength, full-time equivalent positions, or maximum number of employees.

(E) A statement of the potential economic effect of implementing the decision regarding changing to performance of the function by the private sector or retaining performance in the most efficient organization of the function on each affected local community, as determined in the examination under subsection (b)(3)(B)(ii).

(F) A schedule for completing the change to performance of the function by the private sector or implementing the most efficient organization of the function.

(G) In the case of a commercial or industrial type function performed at a Center of Industrial and Technical Excellence designated under section 2474(a) of this title or an Army ammunition plant, a description of the effect that the manner of performance of the function, and administration of the resulting contract if any, will have on the overhead costs of the center or ammunition plant, as the case may be.

(H) The Secretary's certification that the entire analysis is available for examination.

(3)(A) If a decision is made to change the commercial or industrial type function that was the subject of the analysis to performance by the private sector, the change of the function to contractor performance may not begin until after the submission of the report required by paragraph (1).

(B) Notwithstanding subparagraph (A), in the case of a commercial or industrial type function performed at a Center of Industrial and Technical Excellence designated under section 2474(a) of this title or an Army ammunition plant, the change of the function to contractor performance may not begin until at least 60 days after the submission of the report.

(d) WAIVER FOR SMALL FUNCTIONS.-Subsections (a) through (c) and subsection (g) shall not apply to a commercial or industrial type function of the Department of Defense that is being performed by 50 or fewer Department of Defense civilian employees.

(e) WAIVER FOR THE PURCHASE OF PRODUCTS AND SERVICES OF THE BLIND AND OTHER SEVERELY HANDICAPPED PERSONS.-Subsections (a) through (c) and subsection (g) shall not apply to a com

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