REPORTING AND ANALYSIS REQUIREMENTS BEFORE CHANGE OF COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO PRIVATE SECTOR PERFORMANCE.

SEC. 342. REPORTING AND ANALYSIS REQUIREMENTS BEFORE CHANGE OF COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO PRIVATE SECTOR PERFORMANCE. (a) In General.— Section 2461 of title 10, United States Code, is amended— (1) by redesignating subsections (c) and (g) as subsections (g) and (h), respectively, and transferring subsection (g), as so redesignated, to appear after subsection (f); and (2) by striking out subsections (a) and (b) and inserting in lieu thereof the following new subsections: “(a) Reporting and Analysis Requirements as Precondition to Change in Performance.— A commercial or industrial type function of the Department of Defense that, as of October 1, 1980, was being performed by Department of Defense civilian employees may not be changed to performance by the private sector until the Secretary of Defense fully complies with the reporting and analysis requirements specified in subsections (b) and (c). “(b) Notification and Elements of Analysis.— (1) Before commencing to analyze a commercial or industrial type function described in subsection (a) for possible change to performance by the private sector, the Secretary of Defense shall submit to Congress a report containing the following: “(A) The function to be analyzed for possible change. “(B) The location at which the function is performed by Department of Defense civilian employees. “(C) The number of civilian employee positions potentially affected. “(D) The anticipated length and cost of the analysis. “(E) A certification that a proposed performance of the commercial or industrial type function by persons who are not civilian employees of the Department of Defense is not a result of a decision by an official of a military department or Defense Agency to impose predetermined constraints or limitations on such employees in terms of man years, end strengths, full-time equivalent positions, or maximum number of employees. “(2) The duty to prepare a report under paragraph (1) may be delegated. A report prepared below the major command or claimant level of a military department, or below the equivalent level in a Defense Agency, pursuant to any such delegation shall be reviewed at the major command, claimant level, or equivalent level, as the case may be, before submission to Congress. “(3) An analysis of a commercial or industrial type function for possible change to performance by the private sector shall include the following: “(A) An examination of the cost of performance of the function by Department of Defense civilian employees and by one or more private contractors to demonstrate whether change to performance by the private sector will result in savings to the Government over the life of the contract, including in the examination the following: “(i) The cost to the Government, estimated by the Secretary of Defense (based on offers received), for performance of the function by the private sector. “(ii) The estimated cost to the Government of Department of Defense civilian employees performing the function. 112 STAT. 1975 “(iii) In addition to the costs referred to in clause (i), an estimate of all other costs and expenditures that the Government would incur because of the award of such a contract. “(B) An examination of the potential economic effect of performance of the function by the private sector on the following: “(i) Employees of the Department of Defense who would be affected by such a change in performance. “(ii) The local community and the Government, if more than 75 employees of the Department of Defense perform the function. “(C) An examination of the effect of performance of the function by the private sector on the military mission associated with the performance of the function. “(4) (A) A representative individual or entity at a facility where a commercial or industrial type function is analyzed for possible change in performance may submit to the Secretary of Defense an objection to the analysis on the grounds that the report required by paragraph (1) has not been submitted or that the certification required by paragraph (1)(E) is not included in the report submitted as a condition for the analysis. The objection shall be in writing and shall be submitted within 90 days after the following date: “(i) In the case of a failure to submit the report when required, the date on which the representative individual or an official of the representative entity authorized to pose the objection first knew or should have known of that failure. “(ii) In the case of a failure to include the certification in a submitted report, the date on which the report was submitted to Congress. “(B) If the Secretary determines that the report required by paragraph (1) was not submitted or that the required certification was not included in the submitted report, the commercial or industrial type function covered by the analysis to which objected may not be the subject of a solicitation of offers for, or award of, a contract until, respectively, the report is submitted or a report containing the certification in full compliance with the certification requirement is submitted. “(c) Notification of Decision.— (1) If, as a result of the completion of the examinations under subsection (b)(3), a decision is made to change the commercial or industrial type function that was the subject of the analysis to performance by the private sector, the Secretary of Defense shall submit to Congress a report describing that decision. The report shall contain the following: “(A) An indication that the examinations required under subsection (b)(3) have been completed. “(B) The Secretary’s certification that the Government calculation of the cost of performance of the function by Department of Defense civilian employees is based on an estimate of the most cost effective manner for performance of the function by Department of Defense civilian employees. “(C) The Secretary’s certification that the examination required by subsection (b)(3)(A) as part of the analysis demonstrates that the performance of the function by the private sector will result in savings to the Government over the life of the contract. 112 STAT. 1976 “(D) The Secretary’s certification that the entire analysis is available for examination. “(E) A schedule for completing the change to performance of the function by the private sector. (2) The change of the function to contractor performance may not begin until after the submission of the report required by this subsection.”. (b) Definition of Small Function for Waiver Purposes.— subsection (d) of section 2461 of title 10, United States Code, is amended by striking out “20” and inserting in lieu thereof “50”. (c) Conforming Amendments.— (1) subsections (d) and (e) of section 2461 of title 10, United States Code, are amended by inserting “and subsection (g)” after “subsections (a) through (c)”. (2) subsections (e)(2) and (f)(1) of such section are amended by striking out “converted” and inserting in lieu thereof “changed”. (3) subsection (f)(2) of such section is amended by striking out “conversion” and inserting in lieu thereof “change”. (d) Effective Date.— The amendments made by this section shall take effect on the date of the enactment of this Act, but the amendments shall not apply with respect to a conversion of a function of the Department of Defense to performance by a private contractor concerning which the Secretary of Defense provided to Congress, before the date of the enactment of this Act, a notification under paragraph (1) of section 2461(a) of title 10, United States Code, as in effect on the day before the date of the enactment of this Act.