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TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle D—Total Force Management

P. L. 112-81

House Conference Report 112-329

(a) Amendments Relating to Inventory- Section 2330a(c)(1) of title 10, United States Code, is amended--

(1) by inserting after `pursuant to contracts for services' the following: `(and pursuant to contracts for goods to the extent services are a significant component of performance as identified in a separate line item of a contract)';

(2) in subparagraph (A)--

(A) by striking `and' at the end of clause (i); and

(B) by striking clause (ii) and inserting the following:

`(ii) the calculation of contractor full-time equivalents for direct labor, using direct labor hours in a manner that is comparable to the calculation of Department of Defense civilian full-time employees; and

`(iii) the conduct and completion of the annual review required under subsection (e)(1).'; and

(3) in subparagraph (B), by inserting `for requirements relating to acquisition' before the period.

(b) Amendments Relating to Review and Planning Requirements- Section 2330a(e) of such title is amended--

(1) by inserting `and' at the end of paragraph (2);

(2) by striking `; and' at the end of paragraph (3) and inserting a period; and

(3) by striking paragraph (4).

(c) Development of Plan and Enforcement and Approval Mechanisms- Section 2330a of such title is further amended--

(1) by redesignating subsections (f) and (g) as subsections (g) and (h), respectively; and

(2) by inserting after subsection (e) the following new subsection (f):

`(f) Development of Plan and Enforcement and Approval Mechanisms- The Secretary of the military department or head of the Defense Agency responsible for activities in the inventory shall develop a plan, including an enforcement mechanism and approval process, to--

`(1) provide for the use of the inventory by the military department or Defense Agency to implement the requirements of section 129a of this title;

`(2) ensure the inventory is used to inform strategic workforce planning;

`(3) facilitate use of the inventory for compliance with section 235 of this title; and

`(4) provide for appropriate consideration of the conversion of activities identified under subsection (e)(3) within a reasonable period of time.'.

The House bill contained a provision (sec. 936) that would make clarifying amendments to section 2330a of title 10, United States Code, which requires the Department to develop an inventory of contract services.

The Senate amendment contained no similar provision.

The Senate recedes with a clarifying amendment.

The conferees note that the inventory, when fully developed in accordance with statutory requirements, will provide the Department with useful workforce information for identifying inherently governmental functions inappropriately performed under contract, informing strategic human capital planning, and facilitating an appropriate mix of military, civilian, and contractor personnel. At the same time, a compliant inventory will be an important acquisition tool, enabling the Department to better leverage its buying power, rationalize its supplier base, foster competitive procurements, and ensure the best value for the taxpayers' dollar.

The conferees are disappointed that the Department has yet to take the steps needed to achieve full compliance with the statutory requirements. The conferees are encouraged by the Department's recent development of a plan to achieve such compliance and urge the Department to implement this plan as rapidly and completely as practicable.

House Report 112-078

This section would amend section 2330a(c) of title 10, United States Code, to provide additional clarity regarding the types of contracted services to be inventoried and the manner in which contractor full-time equivalents are captured. In addition, this section would more clearly delineate the statutory responsibilities and roles in developing guidance and implementing particular aspects of the statute. This section also would direct the Under Secretary of Defense for Personnel and Readiness and the Under Secretary of Defense (Comptroller) to develop and promulgate guidance specific to the review requirements outlined in paragraph (e) of 2330a of title 10, United States Code. This clarification is intended to ensure that the Department of Defense's total force manpower management equities are fully represented.