Sec. 938. CONVERSION OF CERTAIN FUNCTIONS FROM CONTRACTOR PERFORMANCE TO PERFORMANCE BY DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES
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## SEC. 938 CONVERSION OF CERTAIN FUNCTIONS FROM CONTRACTOR PERFORMANCE TO PERFORMANCE BY DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES Section 2463 of title 10, United States Code, is amended— ####
(1)in subsection (b)(1)— #####
(A)by redesignating subparagraphs (B), (C), and
(D)as subparagraphs (C), (E), and (F), respectively; #####
(B)by striking subparagraph
(A)and inserting the following new subparagraphs
(A)and (B): > > ##### “(A) > > is a critical function that— > > > ###### “(i) > > is necessary to maintain sufficient Government expertise and technical capabilities; or > > > ###### “(ii) > > entails operational risk associated with contractor performance; > > > ##### “(B) > > is an acquisition workforce function;” > ; and #####
(C)by inserting after subparagraph (C), as redesignated by subparagraph (A), the following new subparagraph (D): > > ##### “(D) > > has been performed by Department of Defense civilian employees at any time during the previous 10-year period;” > ; ####
(2)by redesignating subsection
(e)as subsection (g); ####
(3)by inserting after subsection
(d)the following new subsections
(e)and (f): > > ### “(e) Determinations Relating to the Conversion of Certain Functions > > > ####
(1)> > Except as provided in paragraph (2), in determining whether a function should be converted to performance by Department of Defense civilian employees, the Secretary of Defense shall— > > > ##### “(A) > > develop methodology for determining costs based on the guidance outlined in the Directive-Type Memorandum 09-007 entitled ‘Estimating and Comparing the Full Costs of Civilian and Military Manpower and Contractor Support’ or any successor guidance for the determination of costs when costs are the sole basis for the determination; > > > ##### “(B) > > take into consideration any supplemental guidance issued by the Secretary of a military department for determinations affecting functions of that military department; and > > > ##### “(C) > > ensure that the difference in the cost of performing the function by a contractor compared to the cost of performing the function by Department of Defense civilian employees would be equal to or exceed the lesser of— > > > ###### “(i) > > 10 percent of the personnel-related costs for performance of that function; or > > > ###### “(ii) > > $10,000,000. > > > #### “(2) > > Paragraph
(1)shall not apply to any function that is inherently governmental or any function described in subparagraph (A), (B), or
(C)of subsection (b)(1). > > > ### “(f) Notification Relating to the Conversion of Certain Functions > > The Secretary of Defense shall establish procedures for the timely notification of any contractor who performs a function that the Secretary plans to convert to performance by Department of Defense civilian employees pursuant to subsection (a). The Secretary shall provide a copy of any such notification to the congressional defense committees.” > ; and ####
(4)in subsection (g), as redesignated by paragraph (2)— #####
(A)by striking “this section” and all that follows and inserting “this section:”; and #####
(B)by adding at the end the following new paragraphs: > > #### “(1) > > The term ‘functions closely associated with inherently governmental functions’ has the meaning given that term in section 2383(b)(3) of this title. > > > #### “(2) > > The term ‘acquisition function’ has the meaning given that term under section 1721(a) of this title. > > > #### “(3) > > The term ‘inherently governmental function’ has the meaning given that term in the Federal Activities Inventory Reform Act of 1998 (Public Law 105-270; 31 U.S.C. 501 note).” > . ## Subtitle E Quadrennial Roles and Missions and Related Matters
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Sec. 938
CONVERSION OF CERTAIN FUNCTIONS FROM CONTRACTOR PERFORMANCE TO PERFORMANCE BY DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES
Pub. L.Pub. L. 105-270
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