article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Department of Defense Privatization and Outsourcing Moratorium Act''. SEC. 2. MORATORIUM ON PRIVATIZATION AND OUTSOURCING OF DEPARTMENT OF DEFENSE FUNCTIONS. (a) Findings.--Congress finds the following: (1) There is conflicting evidence that the current privatization and outsourcing efforts of the Department of Defense, including the Departments of the Army, Navy, and Air Force, are reducing the cost of support functions within the Department. (2) Typically, these privatization and outsourcing efforts result in contractors simply replacing civilian employees of the Department at lower initial costs, but higher longer-term costs, while stagnating organizational improvements that would otherwise result in greater efficiencies and effectiveness. (3) Recent and current privatization and outsourcing efforts in some cases appear to have created serious oversight and accountability problems for the Department. (4) The Department, as a general practice, has adjusted the operating budgets of the Armed Forces and specific military installations to reflect savings anticipated as a result of Office of Management and Budget Circular A-76 studies and subsequent privatization and outsourcing activities. (5) The massive drawdowns in the size of the Armed Forces during the 1990's and the restructuring of military installations through the base closure process have created a climate in which making accurate decisions concerning privatization and outsourcing are further complicated due to the dynamic nature of the civilian workforce of the Department. (6) The Department should pursue alternatives to the privatization and outsourcing approach conducted under the A-76 process, such as ``Strategic Sourcing'', to find its most efficient organization to perform commercial or industrial type functions. (b) Moratorium.--(1) Chapter 146 of title 10, United States Code, is amended by adding at the end the following new section: ``Sec. 2475. Moratorium on privatization and outsourcing ``(a) Moratorium.--(1) During the period specified in subsection (b), any commercial or industrial type function of the Department of Defense that, as of the date of the enactment of this section, is being performed by Department of Defense civilian employees may not be changed to performance by the private sector. ``(2) The moratorium applies to a function even though, as of the date of the enactment of this section, the function-- ``(A) is the subject of a study or report under section 2461 of this title for conversion to contractor performance; or ``(B) is being considered for such conversion under the procedures and requirements of Office of Management and Budget Circular A-76. ``(3) As part of the moratorium, the Secretary of Defense shall order the suspension of any study being conducted under section 2461 of this title or Office of Management and Budget Circular A-76 regarding a commercial or industrial type function of the Department. New studies regarding such a function at a military installation may not be commenced under such section or circular during the period of the moratorium. ``(b) Duration of Moratorium.--The moratorium imposed under subsection (a) begins on the date of the enactment of this section and shall continue until the end of the five-year period beginning on the date the Secretary of Defense certifies to Congress that all actions necessary to carry out the 1995 round of base closures and realignments have been completed under the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note). ``(c) Exception.--The moratorium imposed under subsection (a) does not apply to a commercial or industrial type function of the Department of Defense that is being converted, or is being considered for conversion, to performance by the private sector under a Strategic Sourcing or Business Process and Re-engineering plan of the Department. ``(d) Report Evaluating Conversion to Contractor Performance.--(1) Not later than 18 months after the date of the enactment of this section, the Secretary of Defense shall submit to Congress a report evaluating-- ``(A) each conversion of a commercial or industrial type function of the Department of Defense to contractor performance that was carried out, in whole or in part, since October 1, 1996; and ``(B) each commercial or industrial type function of the Department that was considered, since that date, for conversion to contractor performance under section 2461 of this title or Office of Management and Budget Circular A-76, but that was not converted. ``(2) At a minimum, the report shall contain the following information for each function covered by the report: ``(A) The code, title, and actual functions performed by civilian employees of the Department. ``(B) The cost to study the function for possible conversion. ``(C) The number of civilian employees affected. ``(D) The personnel cost of the conversion, including costs resulting from reduction in force, retirement, retraining and other movement and separation costs. ``(E) The cost and identity of materials, equipment and facilities provided contractors in conversion to contractor performance. ``(F) The cost of the initial contract, the number of employees expected to perform the function, and variants in each thereafter. ``(3) The report shall also contain the following aggregate information for the functions covered by the report: ``(A) The average annual costs or savings associated with all Department conversions to contractor performance. ``(B) The overall average annual costs or savings resulting from efficiencies achieved in Department functions described in paragraph (1)(B). ``(e) Effect of Moratorium on Operating Budgets.--On account of the moratorium imposed under subsection (a), the Secretary of Defense shall provide for an adjustment in the operating budgets of the armed forces and military installations to compensate for the fact that the operating budgets of the armed forces and many military installations were reduced, before the start of the moratorium, to reflect future savings anticipated as a result of completing the A-76 competitive study process and converting to contractor performance those commercial and industrial type functions of the Department of Defense that are now subject to the moratorium.''. (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: ``2475. Moratorium on privatization and outsourcing.''.
summary: Requires the Secretary to report to Congress evaluating: (1) each conversion that was carried out since October 1, 1996; and (2) each function that was considered for conversion since such date, but not converted. Directs the Secretary, on account of such moratorium, to provide for an adjustment in the operating budgets of the armed forces and military installations to compensate for the fact that such budgets were previously reduced to reflect savings anticipated from the conversion of such functions to private sector performance.