
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: 10USC2462]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
   CHAPTER 146--CONTRACTING FOR PERFORMANCE OF CIVILIAN COMMERCIAL OR 
                        INDUSTRIAL TYPE FUNCTIONS
 
Sec. 2462. Contracting for certain supplies and services 
        required when cost is lower
        
    (a) In General.--Except as otherwise provided by law, the Secretary 
of Defense shall procure each supply or service necessary for or 
beneficial to the accomplishment of the authorized functions of the 
Department of Defense (other than functions which the Secretary of 
Defense determines must be performed by military or Government 
personnel) from a source in the private sector if such a source can 
provide such supply or service to the Department at a cost that is lower 
(after including any cost differential required by law, Executive order, 
or regulation) than the cost at which the Department can provide the 
same supply or service.
    (b) Realistic and Fair Cost Comparisons.--For the purpose of 
determining whether to contract with a source in the private sector for 
the performance of a Department of Defense function on the basis of a 
comparison of the costs of procuring supplies or services from such a 
source with the costs of providing the same supplies or services by the 
Department of Defense, the Secretary of Defense shall ensure that all 
costs considered (including the costs of quality assurance, technical 
monitoring of the performance of such function, liability insurance, 
employee retirement and disability benefits, and all other overhead 
costs) are realistic and fair.

(Added Pub. L. 100-370, Sec. 2(a)(1), July 19, 1988, 102 Stat. 853.)


                      Historical and Revision Notes

    Section is based on Pub. L. 99-661, div. A, title XII, Sec. 1223, 
Nov. 14, 1986, 100 Stat. 3977.
