Page:United States Statutes at Large Volume 102 Part 1.djvu/891

 PUBLIC LAW 100-370—JULY 19, 1988

102 STAT. 853

"§2462. Contracting for certain supplies and services required 10 USC 2462. when cost is lower "(a) IN GENERAL.—Except as otherwise provided by law, the Secretary of Defense shall procure each supply or service necessary for or beneficial to the accomplishment of the authorized functions of the Department of Defense (other than functions which the Secretary of Defense determines must be performed by military or Government personnel) from a source in the private sector if such a source can provide such supply or service to the Department at a cost that is lower (after including any cost differential required by law, Executive order, or regulation) than the cost at which the Department can provide the same supply or service. "(b) REAUSTIC AND FAIR COST COMPARISONS.—For the purpose of determining whether to contract with a source in the private sector for the performance of a Department of Defense function on the basis of a comparison of the costs of procuring supplies or services from such a source with the costs of providing the same supplies or services by the Department of Defense, the Secretary of Defense i shall ensure that all costs considered (including the costs of quality assurance, technical monitoring of the performance of such function, liability insurance, employee retirement and disability benefits, and all other overhead costs) are realistic and fair. "§ 2463. Reports on savings or costs from increased use of DOD lo use 2463. civilian personnel "(a) IN GENERAL.—Whenever during a fiscal year to which this Records. section applies the performance of a commercial or industrial type activity of the Department of Defense that is being performed by 50 or more employees of a private contractor is changed to performance by civilian employees of the Department of Defense, the Secretary of Defense shall maintain data in which a comparison is made of the estimated costs of (1) continued performance of such activity by private contractor employees, and (2) performance of such activity by civilian employees of the Department of Defense. "(b) SEMIANNUAL REPORT ON COSTS AND SAVINGS.—As soon as practicable after the end of the first six months, and after the end of the second six months, of a fiscal year to which this section applies, the Secretary of Defense shall submit to the Committees on Armed Services and the Committee on Appropriations of the Senate and House of Representatives a report showing the estimated savings or loss to the United States, during the preceding six-month period, that is reflected in the data maintained under subsection (a). "(c) APPLICABILITY OF SECTION.—This section applies only with respect to a fiscal year during which there is no statutory limit (commonly known as an 'end strength') on the number of civilian employees that may be employed by the Department of Defense as of the last day of that fiscal year. "§ 2464. Core logistics functions "(a) NECESSITY FOR CORE LOGISTICS CAPABILITY.—(1) It is essential

for the national defense that Department of Defense activities maintain a logistics capability (including personnel, equipment, and facilities) to ensure a ready and controlled source of technical competence and resources necessary to ensure effective and timely response to a mobilization, national defense contingency situations, and other emergency requirements.

10 USC 2464.

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