- § 4501. Procurement of contract services: management structure
- § 4502. Procurement of contract services: senior officials responsible for management of acquisition of contract services
- § 4505. Procurement of services: tracking of purchases
- § 4506. Procurement of services: data analysis and requirements validation
- § 4507. Procurement of services: contracts for professional and technical services
- § 4508. Contractor performance of acquisition functions closely associated with inherently governmental functions
- § 4509. Contracts for advisory and assistance services: cost comparison studies
§ 4501. Procurement of contract services: management structure
(a)Requirement for Management Structure.—The Secretary of Defense shall establish and implement a management structure for the procurement of contract services for the Department of Defense. The management structure shall provide, at a minimum, for the matters specified in subsections (b), (c), (d), and (e).
(b)Policies, Procedures, and Best Practices Guidelines.—The management structure implemented pursuant to subsection (a) shall provide that the Under Secretary of Defense for Acquisition and Sustainment shall develop and maintain (in consultation with the service acquisition executives) policies, procedures, and best practices guidelines addressing the procurement of contract services, including policies, procedures, and best practices guidelines for—
(1) acquisition planning;
(2) solicitation and contract award;
(3) requirements development and management;
(4) contract tracking and oversight;
(5) performance evaluation; and
(6) risk management.
(c)Personnel and Support.—The management structure implemented pursuant to subsection (a) shall provide that the Under Secretary shall work with the service acquisition executives and other appropriate officials of the Department of Defense—
(1) to identify the critical skills and competencies needed to carry out the procurement of contract services on behalf of the Department of Defense;
(2) to develop a comprehensive strategy for recruiting, training, and deploying employees to meet the requirements for such skills and competencies; and
(3) to ensure that the military departments and Defense Agencies have staff and administrative support that are adequate to effectively perform their duties under this section and
(d)Contract Services Acquisition Categories.—The management structure implemented pursuant to subsection (a) shall provide that the Under Secretary shall establish contract services acquisition categories, based on dollar thresholds, for the purpose of establishing the level of review, decision authority, and applicable procedures in such categories.
(e)Oversight of Implementation.—The management structure implemented pursuant to subsection (a) shall provide that the Under Secretary shall oversee the implementation of the requirements of this section and section 4502 of this title and the policies, procedures, and best practices guidelines established pursuant to subsection (b).
(f)Contract Services.—In this section, the term “contract services” has the meaning given that term in section 4502(d)(2) of this title.
(Added Pub. L. 107–107, div. A, title VIII, § 801(b)(1), Dec. 28, 2001, 115 Stat. 1174, § 2330; amended Pub. L. 107–314, div. A, title X, § 1062(a)(8), Dec. 2, 2002, 116 Stat. 2650; Pub. L. 109–163, div. A, title VIII, § 812(a)(1), Jan. 6, 2006, 119 Stat. 3376; Pub. L. 112–239, div. A, title VIII, § 845(d), Jan. 2, 2013, 126 Stat. 1848; Pub. L. 116–92, div. A, title IX, § 902(51), Dec. 20, 2019, 133 Stat. 1548; renumbered § 4501 and amended Pub. L. 116–283, div. A, title XVIII, § 1856(c)–(e), Jan. 1, 2021, 134 Stat. 4274.)
§ 4502. Procurement of contract services: senior officials responsible for management of acquisition of contract services
(a)Senior Officials.—The management structure implemented pursuant to section 4501 of this title shall provide for the following:
(1) The service acquisition executive of each military department shall be the senior official responsible for the management of acquisition of contract services for or on behalf of the military department.
(2) The Under Secretary of Defense for Acquisition and Sustainment shall be the senior official responsible for the management of acquisition of contract services for or on behalf of the Defense Agencies and other components of the Department of Defense outside the military departments.
(b)Duties and Responsibilities of Senior Officials Responsible for the Management of Acquisition of Contract Services.—
(1) Except as provided in paragraph (2), the senior officials responsible for the management of acquisition of contract services shall assign responsibility for the review and approval of procurements in each contract services acquisition category established under section 4501(d) of this title to specific Department of Defense officials, subject to the direction, supervision, and oversight of such senior officials.
(2) With respect to the acquisition of contract services by a component or command of the Department of Defense the primary mission of which is the acquisition of products and services, such acquisition shall be conducted in accordance with policies, procedures, and best practices guidelines developed and maintained by the Under Secretary of Defense for Acquisition and Sustainment pursuant to section 4501 of this title, subject to oversight by the senior officials referred to in paragraph (1).
(c)Duties and Responsibilities.—In carrying out subsection (b)(1), each senior official responsible for the management of acquisition of contract services shall—
(1) implement the requirements of this section and section 4501 of this title and the policies, procedures, and best practices guidelines developed by the Under Secretary of Defense for Acquisition and Sustainment pursuant to section 4501(b) of this title;
(2) authorize the procurement of contract services through contracts entered into by agencies outside the Department of Defense in appropriate circumstances, in accordance with the requirements of section 854 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (10 U.S.C. 2304 note), section 814 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (31 U.S.C. 1535 note), and the regulations implementing such sections;
(3) dedicate full-time commodity managers to coordinate the procurement of key categories of services;
(4) ensure that contract services are procured by means of procurement actions that are in the best interests of the Department of Defense and are entered into and managed in compliance with applicable laws, regulations, directives, and requirements;
(5) ensure that competitive procedures and performance-based contracting are used to the maximum extent practicable for the procurement of contract services; and
(6) monitor data collection under section 4505 of this title, and periodically conduct spending analyses, to ensure that funds expended for the procurement of contract services are being expended in the most rational and economical manner practicable.
(d)Definitions.—In this section:
(1) The term “procurement action” includes the following actions:
(A) Entry into a contract or any other form of agreement.
(B) Issuance of a task order, delivery order, or military interdepartmental purchase request.
(2) The term “contract services” includes all services acquired from private sector entities by or for the Department of Defense, including services in support of contingency operations. The term does not include services relating to research and development or military construction.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1856(d), (f), Jan. 1, 2021, 134 Stat. 4274, 4275; Pub. L. 117–81, div. A, title XVII, § 1701(b)(19)(A), Dec. 27, 2021, 135 Stat. 2135.)
§ 4505. Procurement of services: tracking of purchases
(a)Data Collection Required.—The Secretary of Defense shall establish a data collection system to provide management information with regard to each purchase of services by a military department or Defense Agency in excess of $3,000,000, regardless of whether such a purchase is made in the form of a contract, task order, delivery order, military interdepartmental purchase request, or any other form of interagency agreement, for services in the following service acquisition portfolio groups:
(1) Logistics management services.
(2) Equipment related services.
(3) Knowledge-based services.
(4) Electronics and communications services.
(b)Data To Be Collected.—The data required to be collected under subsection (a) includes the following:
(1) The services purchased.
(2) The total dollar amount of the purchase.
(3) The form of contracting action used to make the purchase.
(4) Whether the purchase was made through—
(A) a performance-based contract, performance-based task order, or other performance-based arrangement that contains firm fixed prices for the specific tasks to be performed;
(B) any other performance-based contract, performance-based task order, or performance-based arrangement; or
(C) any contract, task order, or other arrangement that is not performance based.
(5) In the case of a purchase made through an agency other than the Department of Defense, the agency through which the purchase is made.
(6) The extent of competition provided in making the purchase and whether there was more than one offer.
(7) Whether the purchase was made from—
(A) a small business concern;
(B) a small business concern owned and controlled by socially and economically disadvantaged individuals; or
(C) a small business concern owned and controlled by women.
(c)Inventory Summary.—
(1) Not later than the end of the third quarter of each fiscal year, the Secretary of Defense shall prepare an annual inventory, and submit to Congress a summary of the inventory, of activities performed during the preceding fiscal year pursuant to staff augmentation contracts and contracts closely associated with inherently governmental functions on behalf of the Department of Defense. The guidance for compiling the inventory shall be issued by the Under Secretary of Defense for Personnel and Readiness, the Under Secretary of Defense (Comptroller), and the Under Secretary of Defense for Acquisition and Sustainment, as follows:
(A) The Under Secretary of Defense for Personnel and Readiness, as supported by the Under Secretary of Defense (Comptroller), shall be responsible for developing guidance for—
(i) the collection of data regarding functions and missions performed by contractors in a manner that is comparable to the manpower data elements used in inventories of functions performed by Department of Defense employees;
(ii) the calculation of contractor full-time equivalents for direct labor, using direct labor hours in a manner that is comparable to the calculation of Department of Defense civilian full-time employees; and
(iii) the conduct and completion of the annual review required under subsection (e)(1).
(B) The Under Secretary of Defense for Acquisition and Sustainment shall be responsible for developing guidance on other data elements and implementing procedures for requirements relating to acquisition.
(2) The entry for an activity on an inventory under this subsection shall include, for the fiscal year covered by such entry, the following:
(A) The functions and missions performed by the contractor.
(B) The contracting organization, the component of the Department of Defense administering the contract, and the organization whose requirements are being met through contractor performance of the function.
(C) The funding source for the contract under which the function is performed by appropriation and operating agency.
(D) The fiscal year for which the activity first appeared on an inventory under this section.
(E) The number of contractor employees, expressed as full-time equivalents for direct labor, using direct labor hours and associated cost data collected from contractors (except that estimates may be used where such data is not available and cannot reasonably be made available in a timely manner for the purpose of the inventory).
(F) A determination whether the contract pursuant to which the activity is performed is a personal services contract.
(G) A summary of the data required to be collected for the activity under subsection (a).
(3) The inventory required under this subsection shall be submitted in unclassified form, but may include a classified annex.
(d)Review and Planning Requirements.—Within 90 days after the date on which an inventory is submitted under subsection (c), the Secretary of the military department or head of the Defense Agency responsible for activities in the inventory shall—
(1) review the contracts and activities in the inventory for which such Secretary or agency head is responsible, with particular focus and attention on the following categories of high-risk product service codes (also referred to as Federal supply codes):
(A) Special studies or analysis that is not research and development.
(B) Information technology and telecommunications.
(C) Support, including professional, administrative, and management;
(2) ensure that—
(A) each contract on the list that is a personal services contract has been entered into, and is being performed, in accordance with applicable statutory and regulatory requirements;
(B) the activities on the list do not include any inherently governmental functions; and
(C) to the maximum extent practicable, the activities on the list do not include any functions closely associated with inherently governmental functions; and
(3) identify activities that should be considered for conversion—
(A) to performance by civilian employees of the Department of Defense pursuant to section 2463 of this title; or
(B) to an acquisition approach that would be more advantageous to the Department of Defense.
(e)Development of Plan and Enforcement and Approval Mechanisms.—The Secretary of the military department or head of the Defense Agency responsible for activities in the inventory shall develop a plan, including an enforcement mechanism and approval process, to—
(1) provide for the use of the inventory by the military department or Defense Agency to implement the requirements of section 129a of this title;
(2) ensure the inventory is used to inform strategic workforce planning;
(3) facilitate use of the inventory for compliance with section 235 1
1 See References in Text note below.
of this title; and(4) provide for appropriate consideration of the conversion of activities identified under subsection (e)(3) within a reasonable period of time.
(f)Comptroller General Report.—Not later than March 31, 2018, the Comptroller General of the United States shall submit to the congressional defense committees a report on the status of the data collection required in subsection (a) and an assessment of the efforts by the Department of Defense to implement subsection (e).
(g)Rule of Construction.—Nothing in this section shall be construed to authorize the performance of personal services by a contractor except where expressly authorized by a provision of law other than this section.
(h)Definitions.—In this section:
(1)Performance-based.—The term “performance-based”, with respect to a contract, task order, or arrangement, means that the contract, task order, or arrangement, respectively, includes the use of performance work statements that set forth contract requirements in clear, specific, and objective terms with measurable outcomes.
(2)Function closely associated with inherently governmental functions.—The term “function closely associated with inherently governmental functions” has the meaning given that term in section 4508(b)(3) of this title.
(3)Inherently governmental functions.—The term “inherently governmental functions” has the meaning given that term in section 4508(b)(2) of this title.
(4)Personal services contract.—The term “personal services contract” means a contract under which, as a result of its terms or conditions or the manner of its administration during performance, contractor personnel are subject to the relatively continuous supervision and control of one or more Government officers or employees, except that the giving of an order for a specific article or service, with the right to reject the finished product or result, is not the type of supervision or control that makes a contract a personal services contract.
(5)Service acquisition portfolio groups.—The term “service acquisition portfolio groups” means the groups identified in Department of Defense Instruction 5000.74, Defense Acquisition of Services (January 5, 2016) or successor guidance.
(6)Staff augmentation contracts.—The term “staff augmentation contracts” means services contracts for personnel who are physically present in a Government work space on a full-time or permanent part-time basis, for the purpose of advising on, providing support to, or assisting a Government agency in the performance of the agency’s missions, including authorized personal services contracts (as that term is defined in section 4505(g)(5) 1 of this title).
(7)Simplified acquisition threshold.—The term “simplified acquisition threshold” has the meaning given the term in section 134 of title 41.
(8)Small business act definitions.—
(A) The term “small business concern” has the meaning given such term under section 3 of the Small Business Act (15 U.S.C. 632).
(B) The terms “small business concern owned and controlled by socially and economically disadvantaged individuals” and “small business concern owned and controlled by women” have the meanings given such terms, respectively, in section 8(d)(3) of the Small Business Act (15 U.S.C. 637(d)(3)).
(Added Pub. L. 107–107, div. A, title VIII, § 801(c), Dec. 28, 2001, 115 Stat. 1176, § 2330a; amended Pub. L. 110–181, div. A, title VIII, § 807(a), Jan. 28, 2008, 122 Stat. 213; Pub. L. 111–84, div. A, title VIII, § 803(b), Oct. 28, 2009, 123 Stat. 2402; Pub. L. 111–383, div. A, title III, § 321, Jan. 7, 2011, 124 Stat. 4183; Pub. L. 112–81, div. A, title IX, § 936, Dec. 31, 2011, 125 Stat. 1545; Pub. L. 113–66, div. A, title IX, § 951(a), Dec. 26, 2013, 127 Stat. 839; Pub. L. 114–328, div. A, title VIII, §§ 812, 833(b)(2)(C)(ii), Dec. 23, 2016, 130 Stat. 2269, 2284; Pub. L. 115–91, div. A, title X, § 1081(a)(30), (d)(6)(A), Dec. 12, 2017, 131 Stat. 1595, 1600; Pub. L. 115–232, div. A, title VIII, § 819, Aug. 13, 2018, 132 Stat. 1853; renumbered § 4505 and amended Pub. L. 116–283, div. A, title XVIII, §§ 1856(g), (h), 1883(b)(2), Jan. 1, 2021, 134 Stat. 4275, 4294; Pub. L. 117–81, div. A, title XVII, § 1701(b)(19)(B), (d)(13), Dec. 27, 2021, 135 Stat. 2135, 2137.)
§ 4506. Procurement of services: data analysis and requirements validation
(a)In General.—The Secretary of Defense, acting through the Under Secretary of Defense (Comptroller) and Director of Cost Assessment and Program Evaluation, shall ensure that—
(1) appropriate and sufficiently detailed data are collected and analyzed to support the validation of requirements for services contracts and inform the planning, programming, budgeting, and execution process of the Department of Defense;
(2) requirements for services contracts are evaluated appropriately and in a timely manner to inform decisions regarding the procurement of services; and
(3) decisions regarding the procurement of services consider available resources and total force management policies and procedures.
(b)Specification of Amounts Requested in Budget.—Effective February 1, 2023, the Secretary of Defense, acting through the Under Secretary of Defense (Comptroller) and Director of Cost Assessment and Program Evaluation, shall annually submit to Congress information on services contracts that clearly and separately identifies the amount requested for each category of services to be procured for each Defense Agency, Department of Defense Field Activity, command, or military installation. Such information shall—
(1) be submitted at or before the time of the budget submission by the President under section 1105(a) of title 31 or on the date on which the future-years defense program is submitted to Congress under section 221 of this title;
(2) cover the fiscal year covered by such budget submission by the President;
(3) be consistent with total amounts of estimated expenditures and proposed appropriations necessary to support the programs, projects, and activities of the Department of Defense included in such budget submission by the President for that fiscal year;
(4) be informed by the review of the inventory required by section 4505(c) using standard guidelines developed under subsection (d); and
(5) clearly and separately identify the amount requested and projected for the procurement of contract services for each Defense Agency, Department of Defense Field Activity, command, or military installation for the budget year and the subsequent four fiscal years in the future-years defense program submitted to Congress under section 221.
(c)Data Analysis.—
(1) Each Secretary of a military department shall regularly analyze past spending patterns and anticipated future requirements with respect to the procurement of services within such military department.
(2)
(A) The Secretary of Defense, acting through the Under Secretary of Defense (Comptroller) and Director of Cost Assessment and Program Evaluation, shall regularly analyze past spending patterns and anticipated future requirements with respect to the procurement of services—
(i) within each Defense Agency and Department of Defense Field Activity; and
(ii) across military departments, Defense Agencies, and Department of Defense Field Activities.
(B) The Secretaries of the military departments shall make data on services contracts available to the Secretary of Defense for purposes of conducting the analysis required under subparagraph (A).
(3) The analyses conducted under this subsection shall—
(A) identify contracts for similar services that are procured for three or more consecutive years at each Defense Agency, Department of Defense Field Activity, command, or military installation;
(B) evaluate patterns in the procurement of services, to the extent practicable, at each Defense Agency, Department of Defense Field Activity, command, or military installation and by category of services procured;
(C) be used to validate requirements for services contracts entered into after the date of the enactment of this subsection; and
(D) be used to inform decisions on the award of and funding for such services contracts.
(d)Requirements Evaluation.—
(1) Each Services Requirements Review Board shall evaluate each requirement for a services contract, taking into consideration total force management policies and procedures, available resources, the analyses conducted under subsection (c), and contracting efficacy and efficiency. An evaluation of a services contract for compliance with contracting policies and procedures may not be considered to be an evaluation of a requirement for such services contract.
(2) The Secretary of Defense shall establish and issue standard guidelines within the Department of Defense for the evaluation of requirements for services contracts. Any such guidelines issued—
(A) shall be consistent with the “Handbook of Contract Function Checklists for Services Acquisition” issued by the Department of Defense in May 2018, or a successor or other appropriate policy; and
(B) shall be updated as necessary to incorporate applicable statutory changes to total force management policies and procedures and any other guidelines or procedures relating to the use of Department of Defense civilian employees to perform new functions and functions that are performed by contractors.
(3) The acquisition decision authority for each services contract shall certify—
(A) that a task order or statement of work being submitted to a contracting office is in compliance with the standard guidelines;
(B) that all appropriate statutory risk mitigation efforts have been made; and
(C) that such task order or statement of work does not include requirements formerly performed by Department of Defense civilian employees.
(4) The Inspector General of the Department of Defense may conduct annual audits to ensure compliance with this subsection.
(e)Timely Planning to Avoid Bridge Contracts.—
(1) Effective October 1, 2018, the Secretary of Defense shall ensure that a requirements owner shall, to the extent practicable, plan appropriately before the date of need of a service at a Defense Agency, Department of Defense Field Activity, command, or military installation to avoid the use of a bridge contract to provide for continuation of a service to be performed through a services contract. Such planning shall include allowing time for a requirement to be validated, a services contract to be entered into, and funding for the services contract to be secured.
(2)
(A) Upon the first use, due to inadequate planning (as determined by the Secretary of Defense), of a bridge contract to provide for continuation of a service to be performed through a services contract, the requirements owner, along with the contracting officer or a designee of the contracting officer for the contract, shall—
(i) for a services contract in an amount less than $10,000,000, provide an update on the status of the bridge contract (including the rationale for using the bridge contract) to the commander or the senior civilian official of the Defense Agency concerned, Department of Defense Field Activity concerned, command concerned, or military installation concerned, as applicable; or
(ii) for a services contract in an amount equal to or greater than $10,000,000, provide an update on the status of the bridge contract (including the rationale for using the bridge contract) to the service acquisition executive for the military department concerned, the head of the Defense Agency concerned, the combatant commander concerned, or the Under Secretary of Defense for Acquisition and Sustainment, as applicable.
(B) Upon the second use, due to inadequate planning (as determined by the Secretary of Defense), of a bridge contract to provide for continuation of a service to be performed through a services contract in an amount less than $10,000,000, the commander or senior civilian official referred to in subparagraph (A)(i) shall provide notification of such second use to the Vice Chief of Staff of the armed force concerned and the service acquisition executive of the military department concerned, the head of the Defense Agency concerned, the combatant commander concerned, or the Under Secretary of Defense for Acquisition and Sustainment, as applicable.
(f)Definitions.—In this section:
(1) The term “bridge contract” means—
(A) an extension to an existing contract beyond the period of performance to avoid a lapse in service caused by a delay in awarding a subsequent contract; or
(B) a new short-term contract awarded on a sole-source basis to avoid a lapse in service caused by a delay in awarding a subsequent contract.
(2) The term “requirements owner” means a member of the armed forces (other than the Coast Guard) or a civilian employee of the Department of Defense responsible for a requirement for a service to be performed through a services contract.
(3) The term “Services Requirements Review Board” has the meaning given in Department of Defense Instruction 5000.74, titled “Defense Acquisition of Services” and dated January 10, 2020, or a successor instruction.
(4) The term “acquisition decision authority” means the designated decision authority for each designated special interest services acquisition category, described in such Department of Defense Instruction.
(Added Pub. L. 115–91, div. A, title VIII, § 851(a)(1), Dec. 12, 2017, 131 Stat. 1489, § 2329; amended Pub. L. 115–232, div. A, title VIII, § 818(a), Aug. 13, 2018, 132 Stat. 1852; Pub. L. 116–92, div. A, title VIII, § 817(a), title XVII, § 1731(a)(42), Dec. 20, 2019, 133 Stat. 1488, 1814; renumbered § 4506 and amended Pub. L. 116–283, div. A, title XVIII, §§ 1856(g), 1883(b)(2), Jan. 1, 2021, 134 Stat. 4275, 4294; Pub. L. 117–81, div. A, title VIII, § 815(a), Dec. 27, 2021, 135 Stat. 1824.)
§ 4507. Procurement of services: contracts for professional and technical services
(a)In General.—The Secretary of Defense shall prescribe regulations to ensure, to the maximum extent practicable, that professional and technical services are acquired on the basis of the task to be performed rather than on the basis of the number of hours of services provided.
(b)Content of Regulations.—With respect to contracts to acquire services on the basis of the number of hours of services provided, the regulations described in subsection (a) shall—
(1) include standards and approval procedures to minimize the use of such contracts;
(2) establish criteria to ensure that proposals for contracts for technical and professional services are evaluated on a basis which does not encourage contractors to propose uncompensated overtime;
(3) ensure appropriate emphasis on technical and quality factors in the source selection process;
(4) require identification of any hours in excess of 40-hour weeks included in a proposal;
(5) ensure that offerors are notified that proposals which include unrealistically low labor rates or which do not otherwise demonstrate cost realism will be considered in a risk assessment and evaluated appropriately; and
(6) provide guidance to contracting officers to ensure that any use of uncompensated overtime will not degrade the level of technical expertise required to perform the contract.
(Added Pub. L. 101–510, div. A, title VIII, § 834(a)(1), Nov. 5, 1990, 104 Stat. 1613, § 2331; amended Pub. L. 102–25, title VII, § 701(a), Apr. 6, 1991, 105 Stat. 113; Pub. L. 103–355, title I, § 1004(c), Oct. 13, 1994, 108 Stat. 3253; Pub. L. 107–107, div. A, title VIII, § 801(g)(1), Dec. 28, 2001, 115 Stat. 1177; renumbered § 4507, Pub. L. 116–283, div. A, title XVIII, § 1856(g), Jan. 1, 2021, 134 Stat. 4275.)
§ 4508. Contractor performance of acquisition functions closely associated with inherently governmental functions
(a)Limitation.—The head of an agency may enter into a contract for the performance of acquisition functions closely associated with inherently governmental functions only if the contracting officer for the contract ensures that—
(1) appropriate military or civilian personnel of the Department of Defense cannot reasonably be made available to perform the functions;
(2) appropriate military or civilian personnel of the Department of Defense are—
(A) to supervise contractor performance of the contract; and
(B) to perform all inherently governmental functions associated with the functions to be performed under the contract; and
(3) the agency addresses any potential organizational conflict of interest of the contractor in the performance of the functions under the contract, consistent with subpart 9.5 of part 9 of the Federal Acquisition Regulation and the best interests of the Department of Defense.
(b)Definitions.—In this section:
(1) The term “head of an agency” does not include the Secretary of Homeland Security or the Administrator of the National Oceanic and Atmospheric Administration.
(2) The term “inherently governmental functions” has the meaning given such term in subpart 7.5 of part 7 of the Federal Acquisition Regulation.
(3) The term “functions closely associated with inherently governmental functions” means the functions described in section 7.503(d) of the Federal Acquisition Regulation.
(4) The term “organizational conflict of interest” has the meaning given such term in subpart 9.5 of part 9 of the Federal Acquisition Regulation.
(Added Pub. L. 108–375, div. A, title VIII, § 804(a)(1), Oct. 28, 2004, 118 Stat. 2007, § 2383; renumbered § 4508 and amended Pub. L. 116–283, div. A, title XVIII, § 1856(g), (i), Jan. 1, 2021, 134 Stat. 4275.)
§ 4509. Contracts for advisory and assistance services: cost comparison studies
(a)Requirement.—
(1)
(A) Before the Secretary of Defense enters into a contract described in subparagraph (B), the Secretary shall determine whether Department of Defense personnel have the capability to perform the services proposed to be covered by the contract.
(B) Subparagraph (A) applies to any contract of the Department of Defense for advisory and assistance services that is expected to have a value in excess of $100,000.
(2) If the Secretary determines that Department of Defense personnel have the capability to perform the services to be covered by the contract, the Secretary shall conduct a study comparing the cost of performing the services with Department of Defense personnel and the cost of performing the services with contractor personnel.
(b)Waiver.—The Secretary of Defense may, pursuant to guidelines prescribed by the Secretary, waive the requirement to perform a cost comparison study under subsection (a)(2) based on factors that are not related to cost.
(Added Pub. L. 103–337, div. A, title III, § 363(a)(1), Oct. 5, 1994, 108 Stat. 2733, § 2410l; renumbered § 4509, Pub. L. 116–283, div. A, title XVIII, § 1856(g), Jan. 1, 2021, 134 Stat. 4275.)