10 U.S.C. § 4501 — Procurement of contract services: man-

Page 2776 TITLE 10—ARMED FORCES § 4501 simulator, or to any renewal or extension of, or follow- on contract to, such a contract, if— ‘‘(1) the contract was in effect as of October 17, 2006; ‘‘(2) the number of flight simulators to be acquired under the contract (or renewal, extension, or follow- on) will not result in the total number of flight sim- ulators acquired by the military department con- cerned through service contracts to exceed the total number of flight simulators to be acquired under all service contracts of such department for such simula- tors in effect as of October 17, 2006; and ‘‘(3) in the case of a renewal or extension of, or fol- low-on contract to, the contract, the Secretary of the military department concerned provides to the con- gressional defense committees a written notice of the decision to exercise an option to renew or extend the contract, or to issue a solicitation for bids or pro- posals using competitive procedures for a follow-on contract, and an economic analysis as described in subsection (c) supporting the decision, at least 30 days before carrying out such decision.’’ IMPROVEMENTS IN PROCUREMENTS OF SERVICES Pub. L. 106–398, § 1 [[div. A], title VIII, § 821], Oct. 30, 2000, 114 Stat. 1654, 1654A–217, as amended by Pub. L. 108–136, div. A, title XIV, § 1431(c), Nov. 24, 2003, 117 Stat. 1672; Pub. L. 115–232, div. A, title VIII, § 836(f)(2), Aug. 13, 2018, 132 Stat. 1871, provided that: ‘‘(a) PREFERENCE FOR PERFORMANCE-BASED SERVICE CONTRACTING.—Not later than 180 days after the date of the enactment of this Act [Oct. 30, 2000], the Federal Acquisition Regulation issued in accordance with sec- tions 6 and 25 of the Office of Federal Procurement Pol- icy Act ([former] 41 U.S.C. 405 and 421) [see 41 U.S.C. 1121 and 1303] shall be revised to establish a preference for use of contracts and task orders for the purchase of services in the following order of precedence: ‘‘(1) A performance-based contract or performance- based task order that contains firm fixed prices for the specific tasks to be performed. ‘‘(2) Any other performance-based contract or per- formance-based task order. ‘‘(3) Any contract or task order that is not a per- formance-based contract or a performance-based task order. ‘‘[(b) Repealed. Pub. L. 108–136, div. A, title XIV, § 1431(c), Nov. 24, 2003, 117 Stat. 1672.] ‘‘(c) CENTERS OF EXCELLENCE IN SERVICE CON- TRACTING.—Not later than 180 days after the date of the enactment of this Act [Oct. 30, 2000], the Secretary of each military department shall establish at least one center of excellence in contracting for services. Each center of excellence shall assist the acquisition com- munity by identifying, and serving as a clearinghouse for, best practices in contracting for services in the public and private sectors. ‘‘(d) ENHANCED TRAINING IN SERVICE CONTRACTING.— (1) The Secretary of Defense shall ensure that classes focusing specifically on contracting for services are of- fered by the Defense Acquisition University and the De- fense Systems Management College and are otherwise available to contracting personnel throughout the De- partment of Defense. ‘‘(2) The Secretary of each military department and the head of each Defense Agency shall ensure that the personnel of the department or agency, as the case may be, who are responsible for the awarding and manage- ment of contracts for services receive appropriate training that is focused specifically on contracting for services. ‘‘(e) DEFINITIONS.—In this section: ‘‘(1) The term ‘performance-based’, with respect to a contract, a task order, or contracting, means that the contract, task order, or contracting, respectively, includes the use of performance work statements that set forth contract requirements in clear, spe- cific, and objective terms with measurable outcomes. ‘‘(2) The term ‘Defense Agency’ has the meaning given the term in section 101(a)(11) of title 10, United States Code.’’ § 4501. Procurement of contract services: man- agement structure (a) REQUIREMENT FOR MANAGEMENT STRUC- TURE.—The Secretary of Defense shall establish and implement a management structure for the procurement of contract services for the Depart- ment 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 imple- mented pursuant to subsection (a) shall provide that the Under Secretary of Defense for Acquisi- tion and Sustainment shall develop and main- tain (in consultation with the service acquisi- tion executives) policies, procedures, and best practices guidelines addressing the procurement of contract services, including policies, proce- dures, and best practices guidelines for— (1) acquisition planning; (2) solicitation and contract award; (3) requirements development and manage- ment; (4) contract tracking and oversight; (5) performance evaluation; and (6) risk management. (c) PERSONNEL AND SUPPORT.—The manage- ment structure implemented pursuant to sub- section (a) shall provide that the Under Sec- retary shall work with the service acquisition executives and other appropriate officials of the Department of Defense— (1) to identify the critical skills and com- petencies needed to carry out the procurement of contract services on behalf of the Depart- ment 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 adminis- trative support that are adequate to effec- tively perform their duties under this section and section 4502 of this title. (d) CONTRACT SERVICES ACQUISITION CAT- EGORIES.—The management structure imple- mented pursuant to subsection (a) shall provide that the Under Secretary shall establish con- tract services acquisition categories, based on dollar thresholds, for the purpose of establishing the level of review, decision authority, and ap- plicable procedures in such categories. (e) OVERSIGHT OF IMPLEMENTATION.—The man- agement structure implemented pursuant to subsection (a) shall provide that the Under Sec- retary 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 sub- section (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, Page 2777 TITLE 10—ARMED FORCES § 4502 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.) Editorial Notes PRIOR PROVISIONS A prior section 4501, act Aug. 10, 1956, ch. 1041, 70A Stat. 251, which related to industrial mobilization by the President in time of war, was repealed by Pub. L. 103–160, div. A, title VIII, § 822(a)(2), Nov. 30, 1993, 107 Stat. 1705. See section 4882 of this title. AMENDMENTS 2021—Pub. L. 116–283, § 1856(e)(2), redesignated par. (1) of subsec. (a) as subsec. (b) and subpars. (B) to (D) of former par. (1) as subsecs. (c) to (e), respectively. Pub. L. 116–283, § 1856(d), transferred subsecs. (a)(2), (3), (b), and (c) to section 4502 of this title. Amendment notes below prior to 2021 relate to section as it read be- fore such provisions were transferred. Pub. L. 116–283, § 1856(c), renumbered section 2330 of this title as this section. Subsec. (a). Pub. L. 116–283, § 1856(e)(1), substituted ‘‘for the matters specified in subsections (b), (c), (d), and (e).’’ for ‘‘for the following:’’. Subsec. (b). Pub. L. 116–283, § 1856(e)(3), inserted head- ing, substituted ‘‘The management structure imple- mented pursuant to subsection (a) shall provide that the Under Secretary of Defense for Acquisition and Sustainment shall develop and maintain’’ for ‘‘The Under Secretary of Defense for Acquisition and Sustainment shall—(A) develop and maintain’’, redesig- nated cls. (i) to (vi) as pars. (1) to (6), respectively, sub- stituted period for semicolon at end of par. (6), and re- aligned margins. Subsec. (c). Pub. L. 116–283, § 1856(e)(4)(A)–(C), inserted heading, substituted ‘‘The management structure im- plemented pursuant to subsection (a) shall provide that the Under Secretary shall work with’’ for ‘‘work with’’ in introductory provisions, redesignated cls. (i) to (iii) as pars. (1) to (3), respectively, and realigned margins. Subsec. (c)(3). Pub. L. 116–283, § 1856(e)(4)(D), (E), sub- stituted ‘‘under this section and section 4502 of this title.’’ for ‘‘under this section;’’. Subsec. (d). Pub. L. 116–283, § 1856(e)(5), inserted head- ing, substituted ‘‘The management structure imple- mented pursuant to subsection (a) shall provide that the Under Secretary shall establish contract’’ for ‘‘es- tablish contract’’ and period for ‘‘; and’’, and realigned margins. Subsec. (e). Pub. L. 116–283, § 1856(e)(6), inserted head- ing, substituted ‘‘The management structure imple- mented pursuant to subsection (a) shall provide that the Under Secretary shall oversee the’’ for ‘‘oversee the’’ and ‘‘subsection (b)’’ for ‘‘subparagraph (A)’’, in- serted ‘‘and section 4502 of this title’’ after ‘‘of this sec- tion’’, and realigned margins. Subsec. (f). Pub. L. 116–283, § 1856(e)(7), added subsec. (f). 2019—Subsecs. (a)(1), (3), (b)(2), (3)(A). Pub. L. 116–92 substituted ‘‘Under Secretary of Defense for Acquisi- tion and Sustainment’’ for ‘‘Under Secretary of Defense for Acquisition, Technology, and Logistics’’. 2013—Subsec. (c)(2). Pub. L. 112–239 substituted ‘‘in- cluding services in support of contingency operations. The term does not include services relating to research and development or military construction.’’ for ‘‘other than services relating to research and development or military construction.’’ 2006—Pub. L. 109–163 amended section generally. Prior to amendment, section consisted of subsecs. (a) to (c) relating to requirement for management structure, contracting responsibilities of designated officials, and definitions. 2002—Subsec. (c). Pub. L. 107–314 inserted comma after ‘‘a task order’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title. § 4502. Procurement of contract services: senior officials responsible for management of ac- quisition 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 offi- cial responsible for the management of acqui- sition of contract services for or on behalf of the military department. (2) The Under Secretary of Defense for Ac- quisition and Sustainment shall be the senior official responsible for the management of ac- quisition of contract services for or on behalf of the Defense Agencies and other components of the Department of Defense outside the mili- tary departments. (b) DUTIES AND RESPONSIBILITIES OF SENIOR OF- FICIALS 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 es- tablished 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 De- partment of Defense the primary mission of which is the acquisition of products and serv- ices, such acquisition shall be conducted in ac- cordance with policies, procedures, and best practices guidelines developed and maintained by the Under Secretary of Defense for Acquisi- tion and Sustainment pursuant to section 4501 of this title, subject to oversight by the senior offi- cials referred to in paragraph (1). (c) DUTIES AND RESPONSIBILITIES.—In carrying out subsection (b)(1), each senior official respon- sible for the management of acquisition of con- tract services shall— (1) implement the requirements of this sec- tion and section 4501 of this title and the poli- cies, 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