text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Department of Defense Privatization 
  and Outsourcing Moratorium Act''.
  
  SEC. 2. MORATORIUM ON PRIVATIZATION AND OUTSOURCING OF DEPARTMENT OF 
                DEFENSE FUNCTIONS.
  
      (a) Findings.--Congress finds the following:
              (1) There is conflicting evidence that the current 
          privatization and outsourcing efforts of the Department of 
          Defense, including the Departments of the Army, Navy, and Air 
          Force, are reducing the cost of support functions within the 
          Department.
              (2) Typically, these privatization and outsourcing efforts 
          result in contractors simply replacing civilian employees of 
          the Department at lower initial costs, but higher longer-term 
          costs, while stagnating organizational improvements that would 
          otherwise result in greater efficiencies and effectiveness.
              (3) Recent and current privatization and outsourcing 
          efforts in some cases appear to have created serious oversight 
          and accountability problems for the Department.
              (4) The Department, as a general practice, has adjusted the 
          operating budgets of the Armed Forces and specific military 
          installations to reflect savings anticipated as a result of 
          Office of Management and Budget Circular A-76 studies and 
          subsequent privatization and outsourcing activities.
              (5) The massive drawdowns in the size of the Armed Forces 
          during the 1990's and the restructuring of military 
          installations through the base closure process have created a 
          climate in which making accurate decisions concerning 
          privatization and outsourcing are further complicated due to 
          the dynamic nature of the civilian workforce of the Department.
              (6) The Department should pursue alternatives to the 
          privatization and outsourcing approach conducted under the A-76 
          process, such as ``Strategic Sourcing'', to find its most 
          efficient organization to perform commercial or industrial type 
          functions.
      (b) Moratorium.--(1) Chapter 146 of title 10, United States Code, 
  is amended by adding at the end the following new section:
  ``Sec. 2475. Moratorium on privatization and outsourcing
      ``(a) Moratorium.--(1) During the period specified in subsection 
  (b), any commercial or industrial type function of the Department of 
  Defense that, as of the date of the enactment of this section, is being 
  performed by Department of Defense civilian employees may not be 
  changed to performance by the private sector.
      ``(2) The moratorium applies to a function even though, as of the 
  date of the enactment of this section, the function--
              ``(A) is the subject of a study or report under section 
          2461 of this title for conversion to contractor performance; or
              ``(B) is being considered for such conversion under the 
          procedures and requirements of Office of Management and Budget 
          Circular A-76.
      ``(3) As part of the moratorium, the Secretary of Defense shall 
  order the suspension of any study being conducted under section 2461 of 
  this title or Office of Management and Budget Circular A-76 regarding a 
  commercial or industrial type function of the Department. New studies 
  regarding such a function at a military installation may not be 
  commenced under such section or circular during the period of the 
  moratorium.
      ``(b) Duration of Moratorium.--The moratorium imposed under 
  subsection (a) begins on the date of the enactment of this section and 
  shall continue until the end of the five-year period beginning on the 
  date the Secretary of Defense certifies to Congress that all actions 
  necessary to carry out the 1995 round of base closures and realignments 
  have been completed under the Defense Base Closure and Realignment Act 
  of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
  note).
      ``(c) Exception.--The moratorium imposed under subsection (a) does 
  not apply to a commercial or industrial type function of the Department 
  of Defense that is being converted, or is being considered for 
  conversion, to performance by the private sector under a Strategic 
  Sourcing or Business Process and Re-engineering plan of the Department.
      ``(d) Report Evaluating Conversion to Contractor Performance.--(1) 
  Not later than 18 months after the date of the enactment of this 
  section, the Secretary of Defense shall submit to Congress a report 
  evaluating--
              ``(A) each conversion of a commercial or industrial type 
          function of the Department of Defense to contractor performance 
          that was carried out, in whole or in part, since October 1, 
          1996; and
              ``(B) each commercial or industrial type function of the 
          Department that was considered, since that date, for conversion 
          to contractor performance under section 2461 of this title or 
          Office of Management and Budget Circular A-76, but that was not 
          converted.
      ``(2) At a minimum, the report shall contain the following 
  information for each function covered by the report:
              ``(A) The code, title, and actual functions performed by 
          civilian employees of the Department.
              ``(B) The cost to study the function for possible 
          conversion.
              ``(C) The number of civilian employees affected.
              ``(D) The personnel cost of the conversion, including costs 
          resulting from reduction in force, retirement, retraining and 
          other movement and separation costs.
              ``(E) The cost and identity of materials, equipment and 
          facilities provided contractors in conversion to contractor 
          performance.
              ``(F) The cost of the initial contract, the number of 
          employees expected to perform the function, and variants in 
          each thereafter.
      ``(3) The report shall also contain the following aggregate 
  information for the functions covered by the report:
              ``(A) The average annual costs or savings associated with 
          all Department conversions to contractor performance.
              ``(B) The overall average annual costs or savings resulting 
          from efficiencies achieved in Department functions described in 
          paragraph (1)(B).
      ``(e) Effect of Moratorium on Operating Budgets.--On account of the 
  moratorium imposed under subsection (a), the Secretary of Defense shall 
  provide for an adjustment in the operating budgets of the armed forces 
  and military installations to compensate for the fact that the 
  operating budgets of the armed forces and many military installations 
  were reduced, before the start of the moratorium, to reflect future 
  savings anticipated as a result of completing the A-76 competitive 
  study process and converting to contractor performance those commercial 
  and industrial type functions of the Department of Defense that are now 
  subject to the moratorium.''.
      (2) The table of sections at the beginning of such chapter is 
  amended by adding at the end the following new item:
  
  ``2475. Moratorium on privatization and outsourcing.''.
target: Requires the Secretary to report to Congress evaluating: (1) each conversion that was carried out since October 1, 1996; and (2) each function that was considered for conversion since such date, but not converted.
  Directs the Secretary, on account of such moratorium, to provide for an adjustment in the operating budgets of the armed forces and military installations to compensate for the fact that such budgets were previously reduced to reflect savings anticipated from the conversion of such functions to private sector performance.
feat_title: Department of Defense Privatization and Outsourcing Moratorium Act