INCREASED FLEXIBILITY FOR PERSONAL SERVICE CONTRACTS IN MILITARY MEDICAL TREATMENT FACILITIES.

SEC. 712. INCREASED FLEXIBILITY FOR PERSONAL SERVICE CONTRACTS IN MILITARY MEDICAL TREATMENT FACILITIES. (a) Personal Services Contracts Authorized.—(1) Section 1091 of title 10, United States Code, is amended to read as follows: “§ 1091. Personal services contracts “(a) Authority.—The Secretary of Defense may enter into personal services contracts to carry out health care responsibilities in medical treatment facilities of the Department of Defense, as determined to be necessary by the Secretary. The authority provided in this subsection is in addition to any other contract authorities of the Secretary, including authorities relating to the management of such facilities and the administration of this chapter. “(b) Limitation on Amount of Compensation.—In no case may the total amount of compensation paid to an individual in 107 STAT. 1689any year under a personal services contract entered into under subsection (a) exceed the amount of annual compensation (excluding the allowances for expenses) specified in section 102 of title 3. “(c) Procedures.—(1) The Secretary shall establish by regulation procedures for entering into personal services contracts with individuals under subsection (a). At a minimum, such procedures shall assure— “(A) the provision of adequate notice of contract opportunities to individuals residing in the area of the medical treatment facility involved; and “(B) consideration of interested individuals solely on the basis of the qualifications established for the contract and the proposed contract price. “(2) Upon the establishment of the procedures under paragraph (1), the Secretary may exempt contracts covered by this section from the competitive contracting requirements specified in section 2304 of this title or any other similar requirements of law. “(d) Exceptions.—The procedures and exemptions provided under subsection (c) shall not apply to personal services contracts entered into under subsection (a) with entities other than individuals or to any contract that is not an authorized personal services contract under subsection (a).”. (2) The item relating to section 1091 in the table of sections at the beginning of chapter 55 of title 10, United States Code, is amended to read as follows: “1091. Personal services contracts.”. (b) Report Required.—Not later than 30 days after the end of the 180-day period beginning on the date on which the Secretary of Defense first uses the authority provided under section 1091 of title 10, United States Code (as amended by subsection (a)(1), the Secretary shall submit to Congress a report specifying— (1) the compensation, by medical specialty, provided by the Secretary to individuals agreeing to enter into a personal services contract under such section during that period; (2) the extent to which the amounts of such compensation exceed the amounts previously provided by the Secretary for individuals in such medical specialties; (3) the total number and medical specialties of individuals serving in military medical treatment facilities during that period pursuant to such a contract; and (4) the number of such individuals (and their medical specialties) who are receiving compensation under such a contract in an amount in excess of the maximum amount authorized under such section, as such section was in effect on the day before the date of the enactment of this Act.