
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC1091]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                           PART II--PERSONNEL
 
                   CHAPTER 55--MEDICAL AND DENTAL CARE
 
Sec. 1091. Personal services contracts

    (a) Authority.--(1) The Secretary of Defense, with respect to 
medical treatment facilities of the Department of Defense, and the 
Secretary of Transportation, with respect to medical treatment 
facilities of the Coast Guard when the Coast Guard is not operating as a 
service in the Navy, may enter into personal services contracts to carry 
out health care responsibilities in such facilities, as determined to be 
necessary by the Secretary. The authority provided in this subsection is 
in addition to any other contract authorities of the Secretary, 
including authorities relating to the management of such facilities and 
the administration of this chapter.
    (2) The Secretary of Defense, and the Secretary of Transportation 
with respect to the Coast Guard when it is not operating as a service in 
the Navy, may also enter into personal services contracts to carry out 
other health care responsibilities of the Secretary (such as the 
provision of medical screening examinations at Military Entrance 
Processing Stations) at locations outside medical treatment facilities, 
as determined necessary pursuant to regulations prescribed by the 
Secretary. The Secretary may not enter into a contract under this 
paragraph after December 31, 2002.
    (b) Limitation on Amount of Compensation.--In no case may the total 
amount of compensation paid to an individual in any year under a 
personal services contract entered into under subsection (a) exceed the 
amount of annual compensation (excluding the allowances for expenses) 
specified in section 102 of title 3.
    (c) Procedures.--(1) The Secretary shall establish by regulation 
procedures for entering into personal services contracts with 
individuals under subsection (a). At a minimum, such procedures shall 
assure--
        (A) the provision of adequate notice of contract opportunities 
    to individuals residing in the area of the medical treatment 
    facility involved; and
        (B) consideration of interested individuals solely on the basis 
    of the qualifications established for the contract and the proposed 
    contract price.

    (2) Upon the establishment of the procedures under paragraph (1), 
the Secretary may exempt contracts covered by this section from the 
competitive contracting requirements specified in section 2304 of this 
title or any other similar requirements of law.
    (d) Exceptions.--The procedures and exemptions provided under 
subsection (c) shall not apply to personal services contracts entered 
into under subsection (a) with entities other than individuals or to any 
contract that is not an authorized personal services contract under 
subsection (a).

(Added Pub. L. 98-94, title IX, Sec. 932(a)(1), Sept. 24, 1983, 97 Stat. 
649; amended Pub. L. 101-510, div. A, title VII, Sec. 714, Nov. 5, 1990, 
104 Stat. 1584; Pub. L. 103-160, div. A, title VII, Sec. 712(a)(1), Nov. 
30, 1993, 107 Stat. 1688; Pub. L. 104-106, div. A, title VII, 
Sec. 733(a), Feb. 10, 1996, 110 Stat. 381; Pub. L. 105-85, div. A, title 
VII, Sec. 736(a), Nov. 18, 1997, 111 Stat. 1814; Pub. L. 105-261, div. 
A, title VII, Sec. 733(a), Oct. 17, 1998, 112 Stat. 2072; Pub. L. 106-
398, Sec. 1 [[div. A], title VII, Sec. 705], Oct. 30, 2000, 114 Stat. 
1654, 1654A-175.)


                               Amendments

    2000--Subsec. (a)(2). Pub. L. 106-398 substituted ``December 31, 
2002'' for ``December 31, 2000''.
    1998--Subsec. (a)(2). Pub. L. 105-261 substituted ``December 31, 
2000'' for ``the end of the one-year period beginning on the date of the 
enactment of this paragraph''.
    1997--Subsec. (a). Pub. L. 105-85 designated existing provisions as 
par. (1) and added par. (2).
    1996--Subsec. (a). Pub. L. 104-106 inserted ``, with respect to 
medical treatment facilities of the Department of Defense, and the 
Secretary of Transportation, with respect to medical treatment 
facilities of the Coast Guard when the Coast Guard is not operating as a 
service in the Navy,'' after ``Secretary of Defense'' and substituted 
``such facilities'' for ``medical treatment facilities of the Department 
of Defense''.
    1993--Pub. L. 103-160 substituted ``Personal services contracts'' 
for ``Contracts for direct health care providers'' in section catchline 
and amended text generally. Prior to amendment, text read as follows:
    ``(a) The Secretary concerned may contract with persons for services 
(including personal services) for the provision of direct health care 
services determined by the Secretary concerned to be required for the 
purposes of this chapter.
    ``(b) A person with whom the Secretary contracts under this section 
for the provision of direct health care services under this chapter may 
be compensated at a rate prescribed by the Secretary concerned, but at a 
rate not greater than the rate of basic pay, special and incentive pays 
and bonuses, and allowances authorized by chapters 3, 5, and 7 of title 
37 for a commissioned officer with comparable professional 
qualifications in pay grade O-6 with 26 or more years of service 
computed under section 205 of such title.''
    1990--Subsec. (b). Pub. L. 101-510 substituted ``basic pay, special 
and incentive pays and bonuses, and allowances authorized by chapters 3, 
5, and 7 of title 37 for a commissioned officer with comparable 
professional qualifications'' for ``basic pay and allowances authorized 
by chapters 3 and 7 of title 37 for a commissioned officer''.


                    Effective Date of 1996 Amendment

    Section 733(c) of Pub. L. 104-106 provided that: ``The amendments 
made by subsection (a) [amending this section] shall take effect as of 
October 1, 1995.''


                             Effective Date

    Section 932(f) of Pub. L. 98-94 provided that: ``The amendments made 
by this section [enacting this section, amending section 201 of Title 
37, Pay and Allowances of the Uniformed Services, and repealing sections 
4022 and 9022 of this title and section 421 of Title 37] shall take 
effect on October 1, 1983. Any contract of employment entered into under 
the authority of section 4022 or 9022 of title 10, United States Code, 
before the effective date of this section and which is in effect on such 
date shall remain in effect in accordance with the terms of such 
contract.''


   Test of Alternative Process for Conducting Medical Screenings for 
                        Enlistment Qualification

    Pub. L. 105-261, div. A, title VII, Sec. 733(b), Oct. 17, 1998, 112 
Stat. 2072, as amended by Pub. L. 106-65, div. A, title X, Sec. 1067(3), 
Oct. 5, 1999, 113 Stat. 774, provided that:
    ``(1) The Secretary of Defense shall conduct a test to--
        ``(A) determine whether the use of an alternative to the system 
    currently used by the Department of Defense of employing fee-basis 
    physicians for determining the medical qualifications for enlistment 
    of applicants for military service would reduce the number of 
    disqualifying medical conditions that are detected during the 
    initial entry training of such applicants;
        ``(B) determine whether any savings or cost avoidance may be 
    achieved through use of an alternative system as a result of any 
    increased detection of disqualifying medical conditions before entry 
    by applicants into initial entry training; and
        ``(C) compare the capability of an alternative system to meet or 
    exceed the cost, responsiveness, and timeliness standards of the 
    system currently used by the Department.
    ``(2) The alternative system described in paragraph (1) may include 
the system used under the TRICARE system, the health-care system of the 
Department of Veterans Affairs, or any other system, or combination of 
systems, considered appropriate by the Secretary.
    ``(3) Not later than March 1, 2000, the Secretary shall submit to 
the Committee on Armed Services of the House of Representatives and the 
Committee on Armed Services of the Senate a report on the results and 
findings of the test conducted under paragraph (1).''


                   Ratification of Existing Contracts

    Section 733(b) of Pub. L. 104-106 provided that: ``Any exercise of 
authority under section 1091 of title 10, United States Code, to enter 
into a personal services contract on behalf of the Coast Guard before 
the effective date of the amendments made by subsection (a) [Oct. 1, 
1995] is hereby ratified.''


               Personal Service Contracts To Provide Care

    Pub. L. 103-337, div. A, title VII, Sec. 704(c), Oct. 5, 1994, 108 
Stat. 2799, provided that:
    ``(1) The Secretary of Defense may enter into personal service 
contracts under the authority of section 1091 of title 10, United States 
Code, with persons described in paragraph (2) to provide the services of 
clinical counselors, family advocacy program staff, and victim's 
services representatives to members of the Armed Forces and covered 
beneficiaries who require such services. Notwithstanding subsection (a) 
of such section, such services may be provided in medical treatment 
facilities of the Department of Defense or elsewhere as determined 
appropriate by the Secretary.
    ``(2) The persons with whom the Secretary may enter into a personal 
services contract under this subsection shall include clinical social 
workers, psychologists, psychiatrists, and other comparable 
professionals who have advanced degrees in counseling or related 
academic disciplines and who meet all requirements for State licensure 
and board certification requirements, if any, within their fields of 
specialization.''


               Report on Compensation by Medical Specialty

    Section 712(b) of Pub. L. 103-160 provided that: ``Not later than 30 
days after the end of the 180-day period beginning on the date on which 
the Secretary of Defense first uses the authority provided under section 
1091 of title 10, United States Code (as amended by subsection (a)(1)), 
the Secretary shall submit to Congress a report specifying--
        ``(1) the compensation, by medical specialty, provided by the 
    Secretary to individuals agreeing to enter into a personal services 
    contract under such section during that period;
        ``(2) the extent to which the amounts of such compensation 
    exceed the amounts previously provided by the Secretary for 
    individuals in such medical specialties;
        ``(3) the total number and medical specialties of individuals 
    serving in military medical treatment facilities during that period 
    pursuant to such a contract; and
        ``(4) the number of such individuals (and their medical 
    specialties) who are receiving compensation under such a contract in 
    an amount in excess of the maximum amount authorized under such 
    section, as such section was in effect on the day before the date of 
    the enactment of this Act [Nov. 30, 1993].''

                  Section Referred to in Other Sections

    This section is referred to in sections 1072, 1089 of this title.
