
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-107 Section 1048(a)(22)]
[CITE: 10USC2467]

 
                         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. 2467. Cost comparisons: inclusion of retirement costs; 
        consultation with employees; waiver of comparison
        
    (a) Requirement To Include Retirement Costs.--(1) In any comparison 
conducted by the Department of Defense under Office of Management and 
Budget Circular A-76 (or any successor administrative regulation or 
policy) of the cost of performing commercial activities by Department of 
Defense personnel and the cost of performing such activities by 
contractor personnel, the Secretary of Defense shall include retirement 
system costs (as described in paragraphs (2) and (3)) of both the 
Department of Defense and the contractor.
    (2) The retirement system costs of the Department of Defense shall 
include (to the extent applicable) the following:
        (A) The cost of the Federal Employees' Retirement System, valued 
    by using the normal-cost percentage (as defined by section 8401(23) 
    of title 5, United States Code).
        (B) The cost of the Civil Service Retirement System under 
    subchapter III of chapter 83 of such title 5.
        (C) The cost of the thrift savings plan under subchapter III of 
    chapter 84 of such title 5.
        (D) The cost of the old age, survivors, and disability insurance 
    taxes imposed under section 3111(a) of the Internal Revenue Code of 
    1986.

    (3) The retirement system costs of the contractor shall include the 
cost of the old age, survivors, and disability insurance taxes imposed 
under section 3111(a) of the Internal Revenue Code of 1986, the cost of 
thrift or other retirement savings plans, and other relevant retirement 
costs.
    (b) Requirement To Consult DOD Employees.--(1) Each officer or 
employee of the Department of Defense responsible for determining under 
Office of Management and Budget Circular A-76 whether to convert to 
contractor performance any commercial activity of the Department--
        (A) shall, at least monthly during the development and 
    preparation of the performance work statement and the management 
    efficiency study used in making that determination, consult with 
    civilian employees who will be affected by that determination and 
    consider the views of such employees on the development and 
    preparation of that statement and that study; and
        (B) may consult with such employees on other matters relating to 
    that determination.

    (2)(A) In the case of employees represented by a labor organization 
accorded exclusive recognition under section 7111 of title 5, United 
States Code, consultation with representatives of that labor 
organization shall satisfy the consultation requirement in paragraph 
(1).
    (B) In the case of employees other than employees referred to in 
subparagraph (A), consultation with appropriate representatives of those 
employees shall satisfy the consultation requirement in paragraph (1).
    (3) The Secretary of Defense shall prescribe regulations to carry 
out this subsection. The regulations shall include provisions for the 
selection or designation of appropriate representatives of employees 
referred to in paragraph (2)(B) for purposes of consultation required by 
paragraph (1).
    (c) Congressional Notification of Cost Comparison Waiver.--(1) Not 
later than 10 days after a decision is made to waive the cost comparison 
study otherwise required under Office of Management and Budget Circular 
A-76 as part of the process to convert to contractor performance any 
commercial activity of the Department of Defense, the Secretary of 
Defense shall submit to Congress a report describing the commercial 
activity subject to the waiver and the rationale for the waiver.
    (2) The report shall also include the following:
        (A) The total number of civilian employees or military personnel 
    currently performing the function to be converted to contractor 
    performance.
        (B) A description of the competitive procedure used to award a 
    contract for contractor performance of the commercial activity.
        (C) The anticipated savings to result from the waiver and 
    resulting conversion to contractor performance.

(Added Pub. L. 100-456, div. A, title III, Sec. 331(a), Sept. 29, 1988, 
102 Stat. 1957; amended Pub. L. 106-65, div. A, title III, Sec. 342(a), 
(b)(1), Oct. 5, 1999, 113 Stat. 569.)

                       References in Text

    Section 3111(a) of the Internal Revenue Code of 1986, referred to in 
subsec. (a)(2)(D), (3), is classified to section 3111(a) of Title 26, 
Internal Revenue Code.


                               Amendments

    1999--Pub. L. 106-65, Sec. 342(b)(1), substituted ``Cost 
comparisons: inclusion of retirement costs; consultation with employees; 
waiver of comparison'' for ``Cost comparisons: requirements with respect 
to retirement costs and consultation with employees'' in section 
catchline.
    Subsec. (c). Pub. L. 106-65, Sec. 342(a), added subsec. (c).
