INDEPENDENT MANAGEMENT REVIEWS OF CONTRACTS FOR SERVICES.

SEC. 808. INDEPENDENT MANAGEMENT REVIEWS OF CONTRACTS FOR SERVICES.(a) Guidance and Instructions.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall issue guidance, with detailed implementation instructions, for the Department of Defense to provide for periodic independent management reviews of contracts for services. The independent management review guidance and instructions issued pursuant to this subsection shall be designed to evaluate, at a minimum—(1) contract performance in terms of cost, schedule, and requirements;(2) the use of contracting mechanisms, including the use of competition, the contract structure and type, the definition of contract requirements, cost or pricing methods, the award and negotiation of task orders, and management and oversight mechanisms;(3) the contractor’s use, management, and oversight of subcontractors;(4) the staffing of contract management and oversight functions; and(5) the extent of any pass-throughs, and excessive pass-through charges (as defined in section 852 of the John Warner National Defense Authorization Act for Fiscal Year 2007), by the contractor.(b) Additional Subject of Review.—In addition to the matters required by subsection (a), the guidance and instructions issued pursuant to subsection (a) shall provide for procedures for the periodic review of contracts under which one contractor provides oversight for services performed by other contractors. In particular, the procedures shall be designed to evaluate, at a minimum—(1) the extent of the agency’s reliance on the contractor to perform acquisition functions closely associated with inherently governmental functions as defined in section 2383(b)(3) of title 10, United States Code; and(2) the financial interest of any prime contractor performing acquisition functions described in paragraph (1) in any contract or subcontract with regard to which the contractor provided advice or recommendations to the agency.(c) Elements.—The guidance and instructions issued pursuant to subsection (a) shall address, at a minimum—(1) the contracts subject to independent management reviews, including any applicable thresholds and exceptions;(2) the frequency with which independent management reviews shall be conducted;122 STAT. 216(3) the composition of teams designated to perform independent management reviews;(4) any phase-in requirements needed to ensure that qualified staff are available to perform independent management reviews;(5) procedures for tracking the implementation of recommendations made by independent management review teams; and(6) procedures for developing and disseminating lessons learned from independent management reviews.(c) Reports.—(1) Report on guidance and instruction.—Not later than 270 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report setting forth the guidance and instructions issued pursuant to subsection (a).(2) GAO report on implementation.—Not later than two years after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the congressional defense committees a report on the implementation of the guidance and instructions issued pursuant to subsection (a).