Page:United States Statutes at Large Volume 99 Part 1.djvu/709

 PUBLIC LAW 99-145—NOV. 8, 1985 SEC. 913. MINIMUM PERCENTAGE OF COMPETITIVE PROCUREMENTS

(a) ANNUAL GOAL.—The Secretary of Defense shall establish for each fiscal year a goal for the percentage of defense procurements to be made during that year (expressed in total dollar value of contracts entered into) that are to be competitive procurements. (b) ANNUAL REPORT.—(1) The Secretary shall submit to Congress a report each year on the goal for the next fiscal year. Such report shall propose means for promoting and expanding competition in Department of Defense procurement and shall summarize the accomplishments in meeting the established goals for the prior fiscal year. (2) The report shall be submitted not later than April 1 of each year with respect to the next fiscal year. (c) DEFINITION.—For the purposes of this section, the term "competitive procurements" means procurements made by the Department of Defense through the use of competitive procedures, as defined in section 2304 of title 10, United States Code. SEC. 914. REGULATIONS TO CONTROL PRICES THAT MAY BE PAID FOR SPARE PARTS (a) IDENTIFICATION OF MANAGEMENT PROBLEMS.—The Congress

determines that in the acquisition of spare parts the Department of Defense has in some instances paid unreasonably high prices due to the following management problems: (1) Some parts have been built to overly detailed specifications. (2) Some parts have been designed and fabricated in such a manner that excessive engineering and manufacturing steps have been involved resulting in a price in excess of the intrinsic value of the part. (3) Some parts have been purchased in very small, and thus highly uneconomic, quantities. (4) Some parts have had inappropriate amounts of corporate overhead assigned to them, resulting in a price in excess of the intrinsic value of the part. (5) Some parts have not been purchased directly from the manufacturer, and thus the Government has unnecessarily paid an additional profit to the seller. (6) Some parts have not been purchased through a competitive process. (7) Some parts have been sold with unreasonably high profits included in the price. (b) REPORT.—(1) The Secretary of Defense shall submit to the Committees on Armed Services of the Senate and House of Representatives a report— (A) describing the specific actions taken by the Department of Defense to address the management problems identified in subsection (a); and (B) evaluating such actions to determine whether the actions have been successful in remedying those management problems. (2) The report shall be submitted not later than January 31, 1986. (c) PROPOSALS FOR ADDITIONAL ADMINISTRATIVE OR LEGISLATIVE

REMEDIES.—If the Secretary of Defense concludes that the management problems identified in subsection (a) have not been successfully remedied by actions of the Department of Defense, the Secretary—

99 STAT. 687 10 USC 2301

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98 Stat. 1187.

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