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

Subtitle F — Improve Acquisition Act

P. L. 111-

Joint Explanatory Statement of the Committees on Armed Services of the U. S. Senate and House of Representatives on H. R. 6523

From H. R. 6523

SEC. 892. PRICE TREND ANALYSIS FOR SUPPLIES AND EQUIPMENT PURCHASED BY THE DEPARTMENT OF DEFENSE.

(a) Price Trend Analysis Procedures-

(1) IN GENERAL- The Secretary of Defense shall develop and implement procedures that, to the maximum extent practicable, provide for the collection and analysis of information on price trends for covered supplies and equipment purchased by the Department of Defense. The procedures shall include an automated process for identifying categories of covered supplies and equipment described in paragraph (2) that have experienced significant escalation in prices.

(2) CATEGORY OF COVERED SUPPLIES AND EQUIPMENT- A category of covered supplies and equipment referred to in paragraph (1) consists of covered supplies and equipment that have the same National Stock Number, are in a single Federal Supply Group or Federal Supply Class, are provided by a single contractor, or are otherwise logically grouped for the purpose of analyzing information on price trends.

(3) REQUIREMENT TO EXAMINE CAUSES OF ESCALATION- An analysis conducted pursuant to paragraph (1) shall include, for any category in which significant escalation in prices is identified, a more detailed examination of the causes of escalation for such prices within the category and whether such price escalation is consistent across the Department of Defense.

(4) REQUIREMENT TO ADDRESS UNJUSTIFIED ESCALATION- The head of a Defense Agency or the Secretary of a military department shall take appropriate action to address any unjustified escalation in prices being paid for items procured by that agency or military department as identified in an analysis conducted pursuant to paragraph (1).

(b) Annual Report- Not later than April 1 of each year, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the analyses of price trends that were conducted for categories of covered supplies and equipment during the preceding fiscal year under the procedures implemented pursuant to paragraph (1). The report shall include a description of the actions taken to identify and address any unjustified price escalation for the categories of items.

(c) Definitions- In this section:

(1) SUPPLIES AND EQUIPMENT- The term `supplies and equipment' means items classified as supplies and equipment under the Federal Supply Classification System.

(2) COVERED SUPPLIES AND EQUIPMENT- The term `covered supplies and equipment' means all supplies and equipment purchased by the Department of Defense. The term does not include major weapon systems but does include individual parts and components purchased as spare or replenishment parts for such weapon systems.

(d) Sunset Date- This section shall not be in effect on and after April 1, 2015.

From H.R. 5136:  National Defense Authorization Act for Fiscal Year 2011

SEC. 402. COMMERCIAL PRICING ANALYSIS.

Section 803(c) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105-261; 10 U.S.C. 2306a note) is amended to read as follows:

`(c) Commercial Price Trend Analysis-

`(1) The Secretary of Defense shall develop and implement procedures that, to the maximum extent practicable, provide for the collection and analysis of information on price trends for categories of exempt commercial items described in paragraph (2).

`(2) A category of exempt commercial items referred to in paragraph (1) consists of exempt commercial items that are in a single Federal Supply Group or Federal Supply Class, are provided by a single contractor, or are otherwise logically grouped for the purpose of analyzing information on price trends.

`(3) The analysis of information on price trends under paragraph (1) shall include, in any category in which significant escalation in prices is identified, a more detailed examination of the causes of escalation for such prices within the category and whether such price escalation is consistent across the Department of Defense.

`(4) The head of a Department of Defense agency or the Secretary of a military department shall take appropriate action to address any unjustified escalation in prices being paid for items procured by that agency or military department as identified in an analysis conducted pursuant to paragraph (1).

`(5) Not later than April 1 of each of year, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the analyses of price trends that were conducted for categories of exempt commercial items during the preceding fiscal year under the procedures prescribed pursuant to paragraph (1). The report shall include a description of the actions taken to identify and address any unjustified price escalation for the categories of items.

`(6) This subsection shall not be in effect on and after April 1, 2013.'.

From H. R. 5013:  Implementing Management for Performance and Related Reforms to Obtain Value in Every Acquisition Act of 2010

SEC. 402. COMMERCIAL PRICING ANALYSIS.

Section 803(c) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105-261; 10 U.S.C. 2306a note) is amended to read as follows:

`(c) Commercial Price Trend Analysis-

`(1) The Secretary of Defense shall develop and implement procedures that, to the maximum extent practicable, provide for the collection and analysis of information on price trends for categories of exempt commercial items described in paragraph (2).

`(2) A category of exempt commercial items referred to in paragraph (1) consists of exempt commercial items that are in a single Federal Supply Group or Federal Supply Class, are provided by a single contractor, or are otherwise logically grouped for the purpose of analyzing information on price trends.

`(3) The analysis of information on price trends under paragraph (1) shall include, in any category in which significant escalation in prices is identified, a more detailed examination of the causes of escalation for such prices within the category and whether such price escalation is consistent across the Department of Defense.

`(4) The head of a Department of Defense agency or the Secretary of a military department shall take appropriate action to address any unjustified escalation in prices being paid for items procured by that agency or military department as identified in an analysis conducted pursuant to paragraph (1).

`(5) Not later than April 1 of each of year, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the analyses of price trends that were conducted for categories of exempt commercial items during the preceding fiscal year under the procedures prescribed pursuant to paragraph (1). The report shall include a description of the actions taken to identify and address any unjustified price escalation for the categories of items.

`(6) This subsection shall not be in effect on and after April 1, 2013.'.

The House bill contained a provision (sec. 402 of division D) that would amend section 803 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105- 261) to extend the requirement for commercial price trend analysis.

The Senate committee-reported bill contained no similar provision.

The agreement includes the House provision with an amendment clarifying the requirement for price trend analysis and expanding the requirement to the full range of supplies and equipment purchased by the Department of Defense.

From H. Rpt. 111-465, accompanying  H. R. 5013: Implementing Management for Performance and Related Reforms to Obtain Value in Every Acquisition Act of 2010

SECTION 402--COMMERCIAL PRICING ANALYSIS

This section would revise and extend an existing report on commercial price trends established in section 803 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105-261) to identify and evaluate cases where the Department of Defense is facing unjustified price escalation for a category of commercial items. This section would require the report to be submitted annually on April 1 to the Senate Armed Services Committee and the House Armed Services Committee. The reporting requirement would expire on April 1, 2013.