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P. L. 107-107

House Conference Report 107-333

SEC. 802. SAVINGS GOALS FOR PROCUREMENTS OF SERVICES.

(a) GOALS- (1) It shall be an objective of the Department of Defense to achieve savings in expenditures for procurements of services through the use of--

(A) performance-based services contracting;

(B) appropriate competition for task orders under services contracts; and

(C) program review, spending analyses, and improved management of services contracts.

(2) In furtherance of such objective, the Department of Defense shall have goals to use improved management practices to achieve, over 10 fiscal years, reductions in the total amount that would otherwise be expended by the Department for the procurement of services (other than military construction) in a fiscal year by the amount equal to 10 percent of the total amount of the expenditures of the Department for fiscal year 2000 for procurement of services (other than military construction), as follows:

(A) By fiscal year 2002, a three percent reduction.

(B) By fiscal year 2003, a four percent reduction.

(C) By fiscal year 2004, a five percent reduction.

(D) By fiscal year 2011, a ten percent reduction.

(b) ANNUAL REPORT- Not later than March 1, 2002, and annually thereafter through March 1, 2006, the Secretary of Defense shall submit to the congressional defense committees a report on the progress made toward meeting the objective and goals established in subsection (a). Each report shall include, at a minimum, the following information:

(1) A summary of the steps taken or planned to be taken in the fiscal year of the report to improve the management of procurements of services.

(2) A summary of the steps planned to be taken in the following fiscal year to improve the management of procurements of services.

(3) An estimate of the amount that will be expended by the Department of Defense for procurements of services in the fiscal year of the report.

(4) An estimate of the amount that will be expended by the Department of Defense for procurements of services in the following fiscal year.

(5) An estimate of the amount of savings that, as a result of improvement of the management practices used by the Department of Defense, will be achieved for the procurement of services by the Department in the fiscal year of the report and in the following fiscal year.

The Senate bill contained a provision (sec. 802) that would establish savings goals for the Department of Defense to achieve through the use of improved management practices for procurements of services, including performance-based services contracting; competition for task orders under services contracts; and program review, spending analyses, and other best practices commonly used in the commercial sector.

The House amendment contained no similar provision.

The House recedes with an amendment deleting the requirement for a report by the Comptroller General. The conferees note that this provision directs the Department to achieve savings through improved management practices. It is not intended to require the Department to reduce needed support services provided by contractors.