Page:United States Statutes at Large Volume 111 Part 2.djvu/638

 Ill STAT. 1718 PUBLIC LAW 105-85—NOV. 18, 1997 (2) A description of efforts, other than prime vendor and virtual prime vendor, underway or proposed to improve the efficiency, incentives, and accountabiHty in Department of Defense supply, inventory and warehousing services and rates. (3) An identification and description of the benchmarks established in the warehousing, distribution, and supply functions of the Department and the relationship of the benchmarks to performance measurement methods used in the private sector. (4) A description of the outcome-oriented performance measures that are currently being used to evaluate Inventory Control Points and Distribution Depots. (5) A specification of any legislative, regulatory, or operational impediments to achieving the requirement in subsection (a) and implementing best business practices in the warehousing, distribution, and supply functions of the Department. (c) DEFINITIONS. —For purposes of this section: (1) The term "overhead costs" means the total expenses of the Inventory Control Points, excluding— (A) annual materiel costs; and (B) military and civilian personnel related costs, defined as personnel compensation and benefits under the March 1996 Department of Defense Financial Management Regulations, Volume 2A, Chapter 1, Budget Account Title File (Object Classification Name/Code), object classifications 200, 211, 220, 221, 222, and 301. (2) The term "net sales at standard price" has the meaning given that term in the March 1996 Department of Defense Financial Management Regulations, Volume 2B, Chapter 9, and displayed in "Exhibit Fund—14 Revenue and Expenses" for the supply management business areas. 10 USC 2458 SEC. 395. INVENTORY MANAGEMENT. ^^' (a) DEVELOPMENT AND SUBMISSION OF SCHEDULE.— Not later than 180 days after the date of the enactment of this Act, the Director of the Defense Logistics Agency shall develop and submit to Congress a schedule for implementing within the agency, for the supplies and equipment described in subsection (b), inventory practices identified by the Director as being the best commercial inventory practices for the acquisition and distribution of such supplies and equipment consistent with military requirements. The schedule shall provide for the implementation of such practices to be completed not later than three years after the date of the enactment of this Act. (b) COVERED SUPPLIES AND EQUIPMENT. —Subsection (a) shall apply to the following types of supplies and equipment for the Department of Defense: (1) Medical and pharmaceutical. (2) Subsistence. (3) Clothing and textiles. (4) Commercially available electronics. (5) Construction. (6) Industrial. (7) Automotive. (8) Fuel. (9) Facilities maintenance.

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