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

Subtitle A — Acquisition Policy and Management

NDAA Section

House Conference Report 110-477

SEC. 806. SPECIFICATION OF AMOUNTS REQUESTED FOR PROCUREMENT OF CONTRACT SERVICES.

(a) Specification of Amounts Requested- The budget justification materials submitted to Congress in support of the budget of the Department of Defense for any fiscal year after fiscal year 2009 shall identify clearly and separately the amounts requested in each budget account for the procurement of contract services.

(b) Information Provided- For each budget account, the materials submitted shall clearly identify--

(1) the amount requested for each Department of Defense component, installation, or activity; and

(2) the amount requested for each type of service to be provided.

(c) Contract Services Defined- In this section, the term `contract services'--

(1) means services from contractors; but

(2) excludes services relating to research and development and services relating to military construction.

The Senate amendment contained a provision (sec. 843) that would require the Department of Defense (DOD) to clearly and separately identify in its budget justification materials the amounts requested in each budget account for the procurement of contract services.

The House bill contained no similar provision.

The House recedes with an amendment that would: (1) require that the materials submitted clearly identify amounts requested for each category of service for each DOD component, installation, or activity; and (2) provide that the provision takes effect for fiscal years after fiscal year 2009.

The conferees note that the military services currently identify certain categories of services--such as engineering and technical services and advisory and assistance services--in their budget justification documents. The conferees expect that these and other categories of services will be identified separately in the budget justification materials submitted in accordance with this provision. In addition, the conferees expect the budget justification materials to identify the total amount in each account for contract services for each DOD component, installation, or activity for which funding for such services is requested.

The conferees further note that section 2330a of title 10, United States Code requires the Secretary of Defense to establish a data collection system to provide management information on DOD purchases of contract services. The conferees encourage the Department to utilize the required data collection system and ensure that budget information is collected and reported in a manner that is consistent with the collection and reporting of information on expenditures.

Senate Armed Services Committee Report 110-77

The committee recommends a provision that would require the Department of Defense to clearly and separately identify in its budget justification materials the amounts requested in each budget account for the procurement of contract services.