REQUIREMENTS FOR CERTAIN CIRCULAR A–76 PROCEDURES

SEC. 331. REQUIREMENTS FOR CERTAIN CIRCULAR A–76 PROCEDURES (a) In General.—Chapter 146 of title 10, United States Code, as amended by section 326, is further amended by adding at the end the following new section: “§ 2467. Cost comparisons; requirements with respect to retirement costs and consultation with employees “(a) Requirement To Include Retirement Costs.—(1) In any comparison conducted by the Department of Defense under Office of Management and Budget Circular A–76 (or any successor administrative regulation or policy) of the cost of performing commercial activities by Department of Defense personnel and the cost of performing such activities by contractor personnel, the Secretary of Defense shall include retirement system costs (as described in paragraphs (2) and (3)) of both the Department of Defense and the contractor. “(2) The retirement system costs of the Department of Defense shall include (to the extent applicable) the following: “(A) The cost of the Federal Employees’ Retirement System, valued by using the normal-cost percentage (as defined by section 8401(23) of title 5, United States Code). “(B) The cost of the Civil Service Retirement System under subchapter III of chapter 83 of such title 5. “(C) The cost of the thrift savings plan under subchapter III of chapter 84 of such title 5. “(D) The cost of the old age, survivors, and disability insurance taxes imposed under section 3111(a) of the Internal Revenue Code of 1986. “(3) The retirement system costs of the contractor shall include the cost of the old age, survivors, and disability insurance taxes imposed under section 3111(a) of the Internal Revenue Code of 1986, the cost of thrift or other retirement savings plans, and other relevant retirement costs. “(b) Requirement To Consult DOD Employees.—(1) Each officer or employee of the Department of Defense responsible for determining under Office of Management and Budget Circular A–76 whether to convert to contractor performance any commercial activity of the Department— “(A) shall, at least monthly during the development and preparation of the performance work statement and the management efficiency study used in making that determination, consult with civilian employees who will be affected by that determination and consider the views of such employees on the development and preparation of that statement and that study; and 102 STAT. 1958 “(B) may consult with such employees on other matters relating to that determination. “(2)(A) In the case of employees represented by a labor organization accorded exclusive recognition under section 7111 of title 5, United States Code, consultation with representatives of that labor organization shall satisfy the consultation requirement in paragraph (1). “(B) In the case of employees other than employees referred to in subparagraph (A), consultation with appropriate representatives of those employees shall satisfy the consultation requirement in paragraph (1). “(3) The Secretary of Defense shall prescribe regulations to carry out this subsection. The regulations shall include provisions for the selection or designation of appropriate representatives of employees referred to in paragraph (2)(B) for purposes of consultation required by paragraph (1).”. (b) Clerical Amendment.—The table of sections at the beginning of such chapter is amended by adding at the end the following new item: “2467. Cost comparisons: requirements with respect to retirement costs and consultation with employees.”.