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

E--Industrial Base Matters

P. L. 118-31

Conference Report

SEC. 855. EXTENSION OF PILOT PROGRAM FOR DISTRIBUTION SUPPORT AND SERVICES FOR WEAPONS SYSTEMS CONTRACTORS.

Section 883 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. 4292 note prec.) is amended--

(1) in subsection (a), by striking ``seven-year pilot program'' and inserting ``eight-year pilot program''; and

(2) in subsection (g), by striking ``seven years'' and inserting ``eight years''.

Sec. 855--Extension of pilot program for distribution support and services for weapons systems contractors

The Senate amendment contained a provision (sec. 862) that would extend a pilot program for distribution support and services for weapons systems contractors to 8 years.

The House bill contained no similar provision.

The House recedes.


S. Rept. 118-58

Extension of pilot program for distribution support and services for weapons systems contractors (sec. 862)

The committee recommends a provision that would amend section 883 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114-328) to extend a pilot program for distribution support and services for weapons systems contractors to 8 years.

The committee notes that the Comptroller General of the United States completed a report on the warehousing pilot program titled, ``Weapon Systems Sustainment: DOD Needs to Improve Its Reporting for Warehousing Pilot Program'' (GAO-23-105929), and made several compelling recommendations. The Comptroller General found that the Department of Defense's (DOD) assessment of cost-effectiveness was incomplete, and it did not follow the relevant Department instruction. Without a complete and accurate cost-effectiveness analysis, the
committee cannot adequately evaluate the existing pilot program.

Therefore, the committee directs the Office of the Assistant Secretary of Defense for Sustainment to perform a complete cost-effectiveness analysis of the pilot program that follows the guidelines established in DOD Instruction 7041.03 (or any successor instructions) and provide such analysis to the congressional defense committees, not later than March 1, 2024. 

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