REPORT ON ALLOCATION OF CORE LOGISTICS ACTIVITIES AMONG DEPARTMENT OF DEFENSE FACILITIES AND PRIVATE SECTOR FACILITIES.

SEC. 365. REPORT ON ALLOCATION OF CORE LOGISTICS ACTIVITIES AMONG DEPARTMENT OF DEFENSE FACILITIES AND PRIVATE SECTOR FACILITIES. (a) Report.—Not later than May 31, 1998, the Secretary of Defense shall submit to Congress a report on the allocation among facilities of the Department of Defense and facilities in the private sector of the logistics activities that are necessary to maintain and repair the weapon systems and other military equipment identified by the Secretary, in consultation with the Chairman of the Joint Chiefs of Staff, as being necessary to enable the Armed Forces to conduct a strategic or major theater war. (b) Elements.—The report under subsection (a) shall set forth the following: (1) The systems or equipment identified under subsection (a) that must be maintained and repaired in Government-owned, Government-operated facilities, using personnel and equipment of the Department, as a result of the Secretary’s determination that— (A) the work involves unique or valuable workforce skills that should be maintained in the public sector in the national interest; (B) the base of private sector sources having the capability to perform the workloads includes industry sectors that are vulnerable to work stoppages; (C) the private sector sources having the capability to perform the workloads have insufficient workforce levels 111 STAT. 1703or skills to perform the depot-level maintenance and repair workloads— (i) in the quantity necessary, or as rapidly as the Secretary considers necessary, to enable the armed forces to fulfill the national military strategy; or (ii) without a significant disruption or delay in the maintenance and repair of equipment; (D) the need for performance of workloads is too infrequent, cyclical, or variable to sustain a reliable base of private sector sources having the workforce levels or skills to perform the workloads; (E) the market conditions or workloads are insufficient to ensure that the price of private sector performance of the workloads can be controlled through competition or other means; (F) private sector sources are not adequately responsive to the requirements of the Department for rapid, costeffective, and flexible response to surge requirements or other contingency situations, including changes in the mix or priority of previously scheduled workloads and reassignment of employees to different workloads without the requirement for additional contractual negotiations; (G) private sector sources are less willing to assume responsibility for performing the workload as a result of the possibility of direct military or terrorist attack; or (H) private sector sources cannot maintain continuity of workforce expertise as a result of high rates of employee turnover. (2) The systems or equipment identified under subsection (a) that must be maintained and repaired in Government-owned facilities, whether Government-operated or contractor-operated, as a result of the Secretary’s determination that— (A) the work involves facilities, technologies, or equipment that are unique and sufficiently valuable that the facilities, technologies, or equipment must be maintained in the public sector in the national interest; (B) the private sector sources having the capability to perform the workloads have insufficient facilities, technology, or equipment to perform the depot-level maintenance and repair workloads— (i) in the quantity necessary, or as rapidly as the Secretary considers necessary, to enable the armed forces to fulfill the national military strategy; or (ii) without a significant disruption or delay in the maintenance and repair of equipment; or (C) the need for performance of workloads is too infrequent, cyclical, or variable to sustain a reliable base of private sector sources having the facilities, technology, or equipment to perform the workloads. (3) The systems or equipment identified under subsection (a) that may be maintained and repaired in private sector facilities. (4) The approximate percentage of the total maintenance and repair workload of the Department of Defense necessary for the systems and equipment identified under subsection (a) that would be performed at Department of Defense facilities, 111 STAT. 1704and at private sector facilities, as a result of the determinations made for purposes of paragraphs (1), (2), and (3).