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

Subtitle H—Other Matters

P. L. 117-81

Joint Explanatory Statement

SEC. 875. GUIDANCE, TRAINING, AND REPORT ON PLACE OF PERFORMANCE CONTRACT REQUIREMENTS.

(a) Guidance and Training.--Not later than July 1, 2022, the Secretary of Defense shall--

(1) issue guidance on covered contracts to ensure that, to the maximum extent practicable, the terms of such covered contract avoid specifying an unnecessarily restrictive place of performance for such covered contract; and

(2) implement any necessary training for appropriate individuals relating to the guidance required under paragraph (1).

(b) Report.--

(1) In general.--Not later than July 1, 2022, the Secretary of Defense shall submit to the congressional defense committees a report on covered contracts.

(2) Elements.--The report required under paragraph (1) shall include the following elements:

(A) A description of the criteria that is considered when the Secretary specifies a particular place of performance in a covered contract.

(B) The number of covered contracts awarded during each of fiscal years 2016 through 2020.

(C) An assessment of the extent to which revisions to guidance or regulations related to the use of covered contracts could improve the effectiveness and efficiency of the Department of Defense, including a description of such revisions.

(c) Covered Contract Defined.--In this section, the term ``covered contract'' means a contract for which the Secretary of Defense specifies the place of performance for such contract.

Guidance, training, and report on place of performance contract requirements (sec. 875)

The Senate amendment contained a provision (sec. 819) that would direct the Secretary of Defense to improve contract place of performance data and provide a report to the congressional defense committees on its use.

The House bill contained no similar provision.

The agreement includes the Senate provision with an amendment that would make clarifying edits and revise required reporting elements.


S. 2792--Senate Report117-39


Report on place of performance requirements (sec. 819)

The committee recommends a provision that would direct the Secretary of Defense to improve contract place of performance data and report on its use. The committee notes that the Government Accountability Office (GAO) raised concerns about the consistency in the interpretation and entry of place of performance contract data in a report, published November 8, 2017, titled, ``OMB, Treasury, and Agencies Need to Improve Completeness and Accuracy of Spending Data and Disclose Limitations'' (GAO-18-138). The committee directs the Secretary of Defense to review its guidance, policies, and training to ensure consistency in place of performance data. The committee also notes that the COVID-19 pandemic has changed the manner in which the Federal Government and the Department of Defense conduct business. With an increased focus on remote work, the committee believes an assessment of the Department of Defense's use of place of performance clauses is necessary.
 

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