What it changes

1 change to H.R. 1585

Adds a section
  1. Adds SEC. 827. INDEPENDENT MANAGEMENT REVIEWS OF CONTRACTS FOR SERVICES at the end of subtitle B of title VIII

    Adds a section

    Inserted: SEC. 827. INDEPENDENT MANAGEMENT REVIEWS OF CONTRACTS FOR SERVICES.

    Inserted: (a) Reviews Required.--Section 2330 of title 10, United States Code, is amended--

    Inserted: (1) by redesignating subsection (c) as subsection (d); and

    Inserted: (2) by inserting after subsection (b) the following new subsection (c):

    Inserted: "(c) Independent Management Reviews.--(1) Each senior official responsible for the management of acquisition of contract services shall ensure that an independent management review is conducted on an annual basis for any contract for services entered for or on behalf of the Department of Defense valued in excess of--

    Inserted: "(A) $250,000,000, in the case of a contract awarded to a single contractor; or

    Inserted: "(B) $1,000,000,000, in the case of a contract awarded to multiple contractors.

    Inserted: "(2) An independent management review under this subsection shall be conducted by a team of Department of Defense employees with an expertise in the acquisition of contract services who do not have direct responsibility for the management of the contract to be reviewed.

    Inserted: "(3) Each independent management review of a contract for services conducted under this subsection shall, at a minimum--

    Inserted: "(A) evaluate contract performance in terms of cost, schedule and requirements;

    Inserted: "(B) assess the contracting mechanisms used, including the use of competition, the contract structure and type, the definition of contract requirements, cost and pricing methods, the award and negotiation of task orders, and management and oversight mechanisms;

    Inserted: "(C) evaluate the contractor's use, management, and oversight of subcontractors;

    Show 8 more inserted paragraphs

    Inserted: "(D) review the staffing of contract management and oversight functions;

    Inserted: "(E) assess alternative contracting approaches;

    Inserted: "(F) make specific recommendations to ensure that the contract is managed and performed in a manner that is consistent with applicable requirements of law and regulation and best protects the interests of the Department of Defense; and

    Inserted: "(G) develop lessons learned that can be applied to other contracts for services entered for or on behalf of the Department of Defense.

    Inserted: "(4) An annual review shall not be required under this subsection for any contract under which the work has been substantially completed (as determined by the Secretary of Defense).".

    Inserted: (b) Effective Date.--

    Inserted: (1) In general.--The amendments made by subsection (a) shall take effect on the date of the enactment of this Act, and shall apply to contracts awarded before, on, or after that date.

    Inserted: (2) Limitation on future exercise of options under covered contracts.--Beginning on the date that is one year after the date of the enactment of this Act, no option shall be exercised under a contract that is subject to the requirements of subsection (c) of section 2330 of title 10, United States Code (as amended by subsection (a) of this section), unless an independent management review of the contract has been performed in accordance with the requirements of such subsection (c) in the previous year.

    Original wording

    At the end of subtitle B of title VIII, add the following:

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As printed

SA 2122. Mrs. McCASKILL submitted an amendment intended to be proposed by her to the bill H.R. 1585, to authorize appropriations for fiscal year 2008 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe military personnel strengths for such fiscal year, and for other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle B of title VIII, add the following:

SEC. 827. INDEPENDENT MANAGEMENT REVIEWS OF CONTRACTS FOR SERVICES.

(a) Reviews Required.--Section 2330 of title 10, United States Code, is amended--

(1) by redesignating subsection (c) as subsection (d); and

(2) by inserting after subsection (b) the following new subsection (c):

“(c) Independent Management Reviews.--(1) Each senior official responsible for the management of acquisition of contract services shall ensure that an independent management review is conducted on an annual basis for any contract for services entered for or on behalf of the Department of Defense valued in excess of--

“(A) $250,000,000, in the case of a contract awarded to a single contractor; or

“(B) $1,000,000,000, in the case of a contract awarded to multiple contractors.

“(2) An independent management review under this subsection shall be conducted by a team of Department of Defense employees with an expertise in the acquisition of contract services who do not have direct responsibility for the management of the contract to be reviewed.

“(3) Each independent management review of a contract for services conducted under this subsection shall, at a minimum--

“(A) evaluate contract performance in terms of cost, schedule and requirements;

“(B) assess the contracting mechanisms used, including the use of competition, the contract structure and type, the definition of contract requirements, cost and pricing methods, the award and negotiation of task orders, and management and oversight mechanisms;

“(C) evaluate the contractor's use, management, and oversight of subcontractors;

“(D) review the staffing of contract management and oversight functions;

“(E) assess alternative contracting approaches;

“(F) make specific recommendations to ensure that the contract is managed and performed in a manner that is consistent with applicable requirements of law and regulation and best protects the interests of the Department of Defense; and

“(G) develop lessons learned that can be applied to other contracts for services entered for or on behalf of the Department of Defense.

“(4) An annual review shall not be required under this subsection for any contract under which the work has been substantially completed (as determined by the Secretary of Defense).”.

(b) Effective Date.--

(1) In general.--The amendments made by subsection (a) shall take effect on the date of the enactment of this Act, and shall apply to contracts awarded before, on, or after that date.

(2) Limitation on future exercise of options under covered contracts.--Beginning on the date that is one year after the date of the enactment of this Act, no option shall be exercised under a contract that is subject to the requirements of subsection (c) of section 2330 of title 10, United States Code (as amended by subsection (a) of this section), unless an independent management review of the contract has been performed in accordance with the requirements of such subsection (c) in the previous year.

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Senate amendment submitted

July 11, 2007