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

Subtitle F--Provisions Relating to Services Contracting

P. L. 115-

House Conference Report. 115-404

(a) Establishment.—The Secretary of Defense shall carry out a pilot program under which the Secretary may use the authority under subsection (a) of section 2306c of title 10, United States Code, to enter into up to five contracts for periods of not more than 10 years for services described in subsection (b) of such section. Each contract entered into pursuant to this subsection may be extended for up to five additional one-year terms.

(b) Study.—

(1) IN GENERAL.—Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall enter into an agreement with an independent organization with relevant expertise to study best practices and lessons learned from using services contracts for periods longer than five years by commercial companies, foreign governments, and State governments, as well as service contracts for periods longer than five years used by the Federal Government, such as energy savings performance contracts (as defined in section to section 804(3) of the National Energy Conservation Policy Act (42 U.S.C. 8287c(3)).

(2) REPORT.—Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the study conducted under paragraph (1).

(c) Comptroller General Report.—Not later than five years 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 pilot program carried out under this section.

The Senate amendment contained a provision (sec. 819) that would authorize the Secretary of Defense to use the existing authority under subsection (a) of section 2306c of title 10, United States Code, to enter into up to 5 contracts for periods of not more than 10 years for services described in subsection (b) of such section, which may be extended for up to 5 additional 1-year terms. This authority would be subject to a reporting requirement for the Secretary of Defense to submit a progress report to the Committees on Armed Services of the Senate and the House of Representatives no later than 1 year after the date of enactment of this Act. The provision would also require a review by the Comptroller General of the United States, who would be required to submit a report of to the congressional defense committees not later than 2 years after the date of enactment of this Act.

The Secretary of Defense would also be required to enter into an agreement no later than 90 days after enactment of this Act with an independent organization with relevant expertise to study best practices and lessons learned from using services contracts for periods longer than 5 years by commercial companies, foreign governments, and state governments, as well as service contracts for periods longer than 5 years used by the Federal Government, such as Energy Savings Performance Contracts. Such Energy Savings Performance Contracts provide an existing example of longer term multiyear service contracts and are an alternative financing mechanism designed to accelerate investment in cost effective energy conservation measures in existing federal buildings.

The House bill contained no similar provision.

The House recedes with a technical amendment.