10 U.S.C. § 4505 — Procurement of services: tracking of pur-

Page 2778 TITLE 10—ARMED FORCES § 4505 Defense Authorization Act for Fiscal Year 1999 (31 U.S.C. 1535 note), and the regulations im- plementing such sections; (3) dedicate full-time commodity managers to coordinate the procurement of key cat- egories of services; (4) ensure that contract services are pro- cured 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 procure- ment of contract services; and (6) monitor data collection under section 4505 of this title, and periodically conduct spending analyses, to ensure that funds ex- pended for the procurement of contract serv- ices 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 pur- chase 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 con- struction. (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.) Editorial Notes REFERENCES IN TEXT Section 854 of the Ronald W. Reagan National De- fense Authorization Act for Fiscal Year 2005, referred to in subsec. (c)(2), is section 854 of div. A of Pub. L. 108–375, which is set out as a note under section 2304 of this title. Section 814 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999, referred to in subsec. (c)(2), is section 814 of div. A of Pub. L. 105–261, which was formerly set out as a note under section 1535 of Title 31, Money and Finance. CODIFICATION The text of subsecs. (a)(2), (3), (b), and (c) of section 4501 of this title, which was transferred to this section by Pub. L. 116–283, § 1856(d), was based on Pub. L. 107–107, div. A, title VIII, § 801(b)(1), Dec. 28, 2001, 115 Stat. 1174, § 2330; 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)(B)–(D), Dec. 20, 2019, 133 Stat. 1549; renumbered § 4501, Pub. L. 116–283, div. A, title XVIII, § 1856(c), Jan. 1, 2021, 134 Stat. 4274. Amendment notes prior to 2021 relevant to this section can be found under section 4501 of this title. PRIOR PROVISIONS A prior section 4502, act Aug. 10, 1956, ch. 1041, 70A Stat. 252, which related to maintenance by Secretary of the Army of lists of plants equipped to manufacture arms or ammunition and of plants convertible into am- munition factories and provided for a Board on Mobili- zation of Industries Essential for Military Prepared- ness, was repealed by Pub. L. 103–160, div. A, title VIII, § 822(a)(2), Nov. 30, 1993, 107 Stat. 1705. See sections 4883 and 4884 of this title. Prior sections 4503 and 4504 were repealed by Pub. L. 103–160, div. A, title VIII, §§ 822(c)(2), 827(c), Nov. 30, 1993, 107 Stat. 1707, 1713. Section 4503, act Aug. 10, 1956, ch. 1041, 70A Stat. 252, related to research and development programs of the Army. Section 4504, act Aug. 10, 1956, ch. 1041, 70A Stat. 252, related to procurement of ordnance, signal, and chem- ical warfare supplies for experimental purposes by Sec- retary of the Army. See section 4004 of this title. AMENDMENTS 2021—Pub. L. 116–283, § 1856(d), transferred subsecs. (a)(2), (3), (b), and (c) of section 4501 of this title to this section and inserted subsec. (a) designation, heading, and introductory provisions. Subsec. (a). Pub. L. 116–283, § 1856(f)(1), redesignated pars. (2) and (3) as (1) and (2), respectively. Subsec. (b)(1). Pub. L. 116–283, § 1856(f)(2)(A), sub- stituted ‘‘section 4501(d) of this title’’ for ‘‘subsection (a)(1)(C)’’. Subsec. (b)(2). Pub. L. 116–283, § 1856(f)(2)(B), sub- stituted ‘‘section 4501 of this title’’ for ‘‘subsection (a)(1)’’. Subsec. (b)(3). Pub. L. 116–283, § 1856(f)(4), redesignated par. (3) as subsec. (c). Subsec. (c). Pub. L. 116–283, § 1856(f)(5)(A), as amended by Pub. L. 117–81, § 1701(b)(19)(A), inserted heading and substituted ‘‘In carrying out subsection (b)(1)’’ for ‘‘In carrying out paragraph (1)’’ in introductory provisions. Pub. L. 116–283, § 1856(f)(4), redesignated par. (3) of subsec. (b) as subsec. (c) and subpars. (A) to (F) as pars. (1) to (6), respectively. Pub. L. 116–283, § 1856(f)(3), redesignated subsec. (c) as (d). Subsec. (c)(1). Pub. L. 116–283, § 1856(f)(5)(B), inserted ‘‘and section 4501 of this title’’ after ‘‘of this section’’ and substituted ‘‘section 4501(b) of this title’’ for ‘‘sub- section (a)(1)(A)’’. Subsec. (c)(6). Pub. L. 116–283, § 1856(f)(5)(C), sub- stituted ‘‘section 4505’’ for ‘‘section 2330a’’. Subsec. (d). Pub. L. 116–283, § 1856(f)(3), redesignated subsec. (c) as (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 117–81 applicable as if in- cluded in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Ef- fective Date note below. EFFECTIVE DATE Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed im- plementation and applicability of existing law, see sec- tion 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 note preceding section 3001 of this title. § 4505. Procurement of services: tracking of pur- chases (a) DATA COLLECTION REQUIRED.—The Sec- retary of Defense shall establish a data collec- tion system to provide management information with regard to each purchase of services by a military department or Defense Agency in ex- cess of $3,000,000, regardless of whether such a purchase is made in the form of a contract, task order, delivery order, military interdepart- Page 2779 TITLE 10—ARMED FORCES § 4505 mental purchase request, or any other form of interagency agreement, for services in the fol- lowing 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, per- formance-based task order, or other per- formance-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 perform- ance-based arrangement; or (C) any contract, task order, or other ar- rangement that is not performance based. (5) In the case of a purchase made through an agency other than the Department of De- fense, 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 dis- advantaged 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 aug- mentation contracts and contracts closely asso- ciated 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 Per- sonnel and Readiness, as supported by the Under Secretary of Defense (Comptroller), shall be responsible for developing guidance for— (i) the collection of data regarding func- tions and missions performed by contractors in a manner that is comparable to the man- power data elements used in inventories of functions performed by Department of De- fense 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 an- nual review required under subsection (e)(1). (B) The Under Secretary of Defense for Ac- quisition and Sustainment shall be responsible for developing guidance on other data ele- ments and implementing procedures for re- quirements 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 com- ponent of the Department of Defense admin- istering 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 ap- propriation and operating agency. (D) The fiscal year for which the activity first appeared on an inventory under this sec- tion. (E) The number of contractor employees, ex- pressed 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 sub- section 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 inven- tory is submitted under subsection (c), the Sec- retary 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 tele- communications. (C) Support, including professional, admin- istrative, and management; (2) ensure that— (A) each contract on the list that is a per- sonal services contract has been entered into, and is being performed, in accordance with applicable statutory and regulatory re- quirements; (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 Page 2780 TITLE 10—ARMED FORCES § 4505 1 See References in Text note below. (3) identify activities that should be consid- ered 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 inven- tory shall develop a plan, including an enforce- ment 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 compli- ance with section 235 1 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 congres- sional defense committees a report on the status of the data collection required in subsection (a) and an assessment of the efforts by the Depart- ment of Defense to implement subsection (e). (g) RULE OF CONSTRUCTION.—Nothing in this section shall be construed to authorize the per- formance of personal services by a contractor except where expressly authorized by a provi- sion of law other than this section. (h) DEFINITIONS.—In this section: (1) PERFORMANCE-BASED.—The term ‘‘per- formance-based’’, with respect to a contract, task order, or arrangement, means that the contract, task order, or arrangement, respec- tively, includes the use of performance work statements that set forth contract require- ments in clear, specific, and objective terms with measurable outcomes. (2) FUNCTION CLOSELY ASSOCIATED WITH IN- HERENTLY GOVERNMENTAL FUNCTIONS.—The term ‘‘function closely associated with inher- ently governmental functions’’ has the mean- ing given that term in section 4508(b)(3) of this title. (3) INHERENTLY GOVERNMENTAL FUNCTIONS.— The term ‘‘inherently governmental func- tions’’ has the meaning given that term in sec- tion 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 condi- tions or the manner of its administration dur- ing performance, contractor personnel are sub- ject to the relatively continuous supervision and control of one or more Government offi- cers 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 De- partment of Defense Instruction 5000.74, De- fense 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 phys- ically 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, includ- ing authorized personal services contracts. (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 eco- nomically disadvantaged individuals’’ and ‘‘small business concern owned and con- trolled 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; re- numbered § 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; Pub. L. 118–159, div. A, title XVII, § 1701(a)(40), Dec. 23, 2024, 138 Stat. 2206.) Editorial Notes REFERENCES IN TEXT Section 235 of this title, referred to in subsec. (e)(3), was repealed by Pub. L. 117–81, div. A, title VIII, § 815(b)(1), Dec. 27, 2021, 135 Stat 1825. PRIOR PROVISIONS A prior section 4505, act Aug. 10, 1956, ch. 1041, 70A Stat. 252, which related to procurement by Secretary of the Army of production equipment, was repealed by Pub. L. 103–160, div. A, title VIII, § 823(1), Nov. 30, 1993, 107 Stat. 1707. AMENDMENTS 2024—Subsec. (h)(6). Pub. L. 118–159 struck out ‘‘(as that term is defined in section 4505(g)(5) of this title)’’ after ‘‘personal services contracts’’. 2021—Pub. L. 116–283, § 1856(g), renumbered section 2330a of this title as this section. Subsec. (h)(2). Pub. L. 117–81, § 1701(d)(13), which di- rected the substitution of ‘‘section 4508(b)(3)’’ for ‘‘sec- Page 2781 TITLE 10—ARMED FORCES § 4505 tion 2383(b)(3)’’, could not be executed because of the in- tervening amendment by Pub. L. 116–283, § 1883(b)(2). See note below. Pub. L. 116–283, § 1883(b)(2), substituted ‘‘section 4508(b)(3)’’ for ‘‘section 2383(b)(3)’’. Subsec. (h)(3). Pub. L. 116–283, § 1856(h), as amended by Pub. L. 117–81, § 1701(b)(19)(B), substituted ‘‘section 4508(b)(2)’’ for ‘‘section 2383(b)(2)’’. Subsec. (h)(6). Pub. L. 116–283, § 1883(b)(2), substituted ‘‘section 4505(g)(5)’’ for ‘‘section 2330a(g)(5)’’. 2018—Subsec. (c)(1). Pub. L. 115–232, in introductory provisions, inserted ‘‘and contracts closely associated with inherently governmental functions’’ after ‘‘staff augmentation contracts’’ and substituted ‘‘Under Sec- retary of Defense for Acquisition and Sustainment’’ for ‘‘Under Secretary of Defense for Acquisition, Tech- nology, and Logistics’’. Subsec. (c)(1)(B). Pub. L. 115–232, § 819(2), substituted ‘‘Under Secretary of Defense for Acquisition and Sustainment’’ for ‘‘Under Secretary of Defense for Ac- quisition, Technology, and Logistics’’. 2017—Subsec. (d)(1)(C). Pub. L. 115–91, § 1081(a)(30)(A), struck out period before semicolon at end. Subsec. (h)(1). Pub. L. 115–91, § 1081(a)(30)(B)(i), in- serted heading. Subsec. (h)(2) to (4). Pub. L. 115–91, § 1081(d)(6)(A), amended directory language of Pub. L. 114–328, § 833(b)(2)(C)(ii). See 2016 Amendment notes below. Subsec. (h)(5). Pub. L. 115–91, § 1081(a)(30)(B)(iii), in- serted heading. Pub. L. 115–91, § 1081(a)(30)(B)(ii), redesignated par. (6) defining ‘‘service acquisition portfolio groups’’ as (5). Former par. (5) redesignated (7). Pub. L. 115–91, § 1081(d)(6)(A), amended directory lan- guage of Pub. L. 114–328, § 833(b)(2)(C)(ii). See 2016 Amendment note below. Subsec. (h)(6). Pub. L. 115–91, § 1081(a)(30)(B)(iv), in- serted heading. Pub. L. 115–91, § 1081(a)(30)(B)(ii), redesignated par. (7) as (6). Former par. (6) defining ‘‘service acquisition portfolio groups’’ redesignated (5) and former par. (6) relating to Small Business Act definitions redesignated (8). Pub. L. 115–91, § 1081(d)(6)(A), amended directory lan- guage of Pub. L. 114–328, § 833(b)(2)(C)(ii). See 2016 Amendment note below. Subsec. (h)(7). Pub. L. 115–91, § 1081(a)(30)(B)(ii), redes- ignated par. (5) as (7). Former par. (7) redesignated (6). Subsec. (h)(8). Pub. L. 115–91, § 1081(a)(30)(B)(ii), redes- ignated par. (6) relating to Small Business Act defini- tions as (8). 2016—Subsec. (a). Pub. L. 114–328, § 812(a), (b), sub- stituted ‘‘in excess of $3,000,000’’ for ‘‘in excess of the simplified acquisition threshold’’ and ‘‘, for services in the following service acquisition portfolio groups:’’ for period at end and added pars. (1) to (4). Subsec. (c). Pub. L. 114–328, § 812(c)(1), substituted ‘‘Inventory Summary’’ for ‘‘Inventory’’ in heading. Subsec. (c)(1). Pub. L. 114–328, § 812(c)(2), substituted ‘‘prepare an annual inventory, and submit to Congress a summary of the inventory, of activities performed during the preceding fiscal year pursuant to staff aug- mentation contracts on behalf’’ for ‘‘submit to Con- gress an annual inventory of the activities performed during the preceding fiscal year pursuant to contracts for services (and pursuant to contracts for goods to the extent services are a significant component of perform- ance as identified in a separate line item of a contract) for or on behalf’’. Subsec. (d). Pub. L. 114–328, § 812(d), redesignated sub- sec. (e) as (d) and struck out former subsec. (d). Prior to amendment, text of subsec. (d) read as follows: ‘‘Not later than 30 days after the date on which an inventory under subsection (c) is required to be submitted to Con- gress, the Secretary shall— ‘‘(1) make the inventory available to the public; and ‘‘(2) publish in the Federal Register a notice that the inventory is available to the public.’’ Subsec. (d)(1). Pub. L. 114–328, § 812(e), inserted ‘‘, with particular focus and attention on the following categories of high-risk product service codes (also re- ferred to as Federal supply codes):’’ after ‘‘responsible’’ and added subpars. (A) to (C). Subsec. (e). Pub. L. 114–328, § 812(d)(2), redesignated subsec. (f) as (e). Former subsec. (e) redesignated (d). Subsec. (f). Pub. L. 114–328, § 812(f), added subsec. (f). Former subsec. (f) redesignated (e). Subsecs. (g), (h). Pub. L. 114–328, § 812(d), redesignated subsecs. (i) and (j) as (g) and (h), respectively, and struck out former subsecs. (g) and (h) which related to Inspector General reports and Comptroller General re- ports, respectively. Subsec. (h)(2). Pub. L. 114–328, § 833(b)(2)(C)(ii)(I), (II), as amended by Pub. L. 115–91, § 1081(d)(6)(A), redesig- nated par. (3) as (2) and struck out former par. (2). Prior to amendment, par. (2) read as follows: ‘‘The definitions set forth in section 2225(f) of this title for the terms ‘simplified acquisition threshold’, ‘small business con- cern’, ‘small business concern owned and controlled by socially and economically disadvantaged individuals’, and ‘small business concern owned and controlled by women’ shall apply.’’ Subsec. (h)(3), (4). Pub. L. 114–328, § 833(b)(2)(C)(ii)(II), as amended by Pub. L. 115–91, § 1081(d)(6)(A), redesig- nated pars. (4) and (5) as (3) and (4), respectively. Former par. (3) redesignated (2). Subsec. (h)(5). Pub. L. 114–328, § 833(b)(2)(C)(ii)(III), as amended by Pub. L. 115–91, § 1081(d)(6)(A), added par. (5). Former par. (5) redesignated (4). Subsec. (h)(6). Pub. L. 114–328, § 833(b)(2)(C)(ii)(III), as amended by Pub. L. 115–91, § 1081(d)(6)(A), added par. (6) relating to Small Business Act definitions. Pub. L. 114–328, § 812(g), added par. (6) defining ‘‘serv- ice acquisition portfolio groups’’. Subsec. (h)(7). Pub. L. 114–328, § 812(g), added par. (7). Subsecs. (i), (j). Pub. L. 114–328, § 812(d)(2), redesig- nated subsecs. (i) and (j) as (g) and (h), respectively. 2013—Subsecs. (g) to (j). Pub. L. 113–66 added subsecs. (g) and (h) and redesignated former subsecs. (g) and (h) as (i) and (j), respectively. 2011—Subsec. (c). Pub. L. 111–383, § 321(2) to (4), sub- stituted ‘‘The guidance for compiling the inventory shall be issued by the Under Secretary of Defense for Personnel and Readiness, the Under Secretary of De- fense (Comptroller), and the Under Secretary of De- fense for Acquisition, Technology, and Logistics, as fol- lows:’’ for ‘‘The entry for an activity on an inventory under this subsection shall include, for the fiscal year covered by such entry, the following:’’ in par. (1), added new subpars. (A) and (B) to par. (1), inserted par. (2) designation and introductory provisions before former subpars. (A) to (G) of par. (1) thereby making them part of par. (2), added subpar. (E), and struck out former subpar. (E) which read as follows: ‘‘The number of full- time contractor employees (or its equivalent) paid for the performance of the activity.’’ Subsec. (c)(1). Pub. L. 112–81, § 936(a)(1), inserted ‘‘(and pursuant to contracts for goods to the extent services are a significant component of performance as identi- fied in a separate line item of a contract)’’ after ‘‘pur- suant to contracts for services’’ in introductory provi- sions. Subsec. (c)(1)(A)(ii), (iii). Pub. L. 112–81, § 936(a)(2), added cls. (ii) and (iii) and struck out former cl. (ii) which read as follows: ‘‘the calculation of contractor manpower equivalents in a manner that is comparable to the calculation of full-time equivalents for use in in- ventories of functions performed by Department of De- fense employees.’’ Subsec. (c)(1)(B). Pub. L. 112–81, § 936(a)(3), inserted ‘‘for requirements relating to acquisition’’ before pe- riod at end. Subsec. (c)(2), (3). Pub. L. 111–383, § 321(1), redesig- nated par. (2) as (3). Subsec. (e)(2) to (4). Pub. L. 112–81, § 936(b), inserted ‘‘and’’ at end of par. (2), substituted period for ‘‘; and’’ at end of par. (3), and struck out par. (4) which read as follows: ‘‘develop a plan, including an enforcement mechanism and approval process, to provide for appro- priate consideration of the conversion of activities Page 2782 TITLE 10—ARMED FORCES § 4506 identified under paragraph (3) within a reasonable pe- riod of time.’’ Subsec. (f) to (h). Pub. L. 112–81, § 936(c), added subsec. (f) and redesignated former subsecs. (f) and (g) as (g) and (h), respectively. 2009—Subsec. (e)(4). Pub. L. 111–84 inserted ‘‘, including an enforcement mechanism and approval process,’’ after ‘‘plan’’. 2008—Subsecs. (c) to (g). Pub. L. 110–181, § 807(a)(1), (2), added subsecs. (c) to (f), redesignated former subsec. (d) as (g), and struck out heading and text of former sub- sec. (c). Former text read as follows: ‘‘To the maximum extent practicable, a single data collection system shall be used to collect data under this section and in- formation under section 2225 of this title.’’ Subsec. (g)(3) to (5). Pub. L. 110–181, § 807(a)(3), added pars. (3) to (5). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by section 1701(b)(19)(B) of Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and note below. Amendment by section 1701(d)(13) of Pub. L. 117–81 to take effect immediately after the amendments made by title XVIII of Pub. L. 116–283 have taken effect, see sec- tion 1701(a)(3) of Pub. L. 117–81, set out in a note pre- ceding section 3001 of this title and note below. 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. EFFECTIVE DATE OF 2017 AMENDMENT Pub. L. 115–91, div. A, title X, § 1081(d), Dec. 12, 2017, 131 Stat. 1599, provided that the amendment made by section 1081(d)(6)(A) is effective as of Dec. 23, 2016, and as if included in Pub. L. 114–328 as enacted. EFFECTIVE DATE OF 2008 AMENDMENT Pub. L. 110–181, div. A, title VIII, § 807(b), Jan. 28, 2008, 122 Stat. 215, provided that: ‘‘(1) The amendments made by subsection (a) [amend- ing this section] shall be effective upon the date of the enactment of this Act [Jan. 28, 2008]. ‘‘(2) The first inventory required by section 2330a(c) of title 10, United States Code [now 10 U.S.C. 4505(c)], as added by subsection (a), shall be submitted not later than the end of the third quarter of fiscal year 2008.’’ § 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 vali- dation of requirements for services contracts and inform the planning, programming, budg- eting, and execution process of the Depart- ment of Defense; (2) requirements for services contracts are evaluated appropriately and in a timely man- ner to inform decisions regarding the procure- ment 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 Sec- retary of Defense, acting through the Under Sec- retary 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 cat- egory of services to be procured for each Defense Agency, Department of Defense Field Activity, command, or military installation. Such infor- mation shall— (1) be submitted at or before the time of the budget submission by the President under sec- tion 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 esti- mated expenditures and proposed appropria- tions 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 inven- tory 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 pro- curement of contract services for each Defense Agency, Department of Defense Field Activ- ity, command, or military installation for the budget year and the subsequent four fiscal years in the future-years defense program sub- mitted 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 (Comp- troller) 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 Depart- ment of Defense Field Activity; and (ii) across military departments, Defense Agencies, and Department of Defense Field Activities. (B) The Secretaries of the military depart- ments shall make data on services contracts available to the Secretary of Defense for pur- poses of conducting the analysis required under subparagraph (A). (3) The analyses conducted under this sub- section shall— (A) identify contracts for similar services that are procured for three or more consecu- tive years at each Defense Agency, Depart- ment of Defense Field Activity, command, or military installation; (B) evaluate patterns in the procurement of services, to the extent practicable, at each De- fense 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