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Code · BILL · 117th Congress · H.R. 4350 (Reported in House) — To authorize appropriations for fiscal year 2022 for military activities of the Department of Defense and for militar... · Sec. 852

Sec. 852. Pilot program to determine the cost competitiveness of drop-in fuels

296 words·~1 min read·/bill/117/hr/4350/rh/section-852

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The Secretary of Defense, in consultation with the Under Secretary of Defense for Acquisition and Sustainment and the Under Secretary of Defense (Comptroller), shall establish a pilot program to determine the cost competitiveness of the fully burdened cost of drop-in fuels compared with the fully burdened cost of traditional fuels using a scenario-based strategic sourcing tool as described in subsection (b). The Under Secretary of Defense (Comptroller), in coordination with the Director of Defense Logistics Agency, shall identify an aviation fuel program and use a commercially available scenario-based strategic sourcing tool to— analyze performance risks and benefits of drop-in fuels compared to traditional fuels; determine cost-competitiveness of drop-in fuels compared to traditional fuels; improve supplier performance of contracts to procure aviation fuel; and minimize risk, increase transparency, and manage unforeseen circumstances for the Department of Defense.
The Under Secretary of Defense (Comptroller) shall use the scenario-based strategic sourcing tool described in subsection
(b)to maintain documentation of the costs of each such contract in order to develop better price estimates and procurement strategies for acquiring aviation fuel. Not later than September 30, 2022, and annually thereafter until the termination date described in subsection (f), the Secretary of Defense shall submit a report to the congressional defense committees on the status and impact of the pilot program established under this section. In this section: The terms drop-in fuel , fully burdened cost , and traditional fuel have the meanings given, respectively, in section 2922h of title 10, United States Code. The term scenario-based strategic sourcing means a method for testing the supply chain effects using automated software to model various scenarios relating to— contract management; spend analysis; supplier management; sourcing; and external market variables. The pilot program established under this section shall terminate on September 30, 2027.
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