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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

Not later than April 1, 2018, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and House of Representatives a report on the merits of using outcome-based services contracts within the Department of Defense. Such report shall include a comparison of the use of outcome-based services contracts by the Department of Defense compared to input-based services contracts, the limitations of outcome-based services contracts, and an analysis of the cost implications of both approaches.

The Senate amendment contained a provision (sec. 818) that would require a justification requirement for use of personnel and labor hours for the procurement of services valued in excess of $10.0 million unless the program manager and contracting officer first submit to the Under Secretary of Defense for Acquisition and Sustainment a written justification including the reasons for basing the contract on those requirements instead of outcome- or performance-based requirements. This authority would sunset at the close of September 20, 2022.

The House bill contained no similar provision.

The House recedes with an amendment that would require the Secretary of Defense to submit to the Committees on Armed Services of the Senate and House of Representatives, no later than April 1, 2018, a report on the merits of using outcome based services contracts within the Department of Defense.