SEC. 227. SERVICE SPECIFIC ACQUISITION AUTHORITY.
(a) ARMY.—Part IV of subtitle B of title 10, United
States Code, is amended by striking out ‘‘Secretary of
the Army’’ in sections 4540(a) and 4542 (each place it
appears) and inserting in lieu thereof ‘‘Secretary of
Defense’’.
(b) NAVY.—Part IV of subtitle C of such title is
amended as follows:
(1) The following sections are amended by
striking out ‘‘Secretary of the Navy’’ and inserting
in lieu thereof ‘‘Secretary of Defense’’: sections
7212(a), 7229, 7299a (each place it appears),
7309(c), 7310(b) (both places it appears), 7311(a)
(in the matter before paragraph (1)), 7311(b) (in
the matter before paragraph (1)), 7314, and 7361
(each place it appears).
(2) Section 7314(1)(B) is amended by striking
out ‘‘Navy supply system’’ each place it appears and
inserting in lieu thereof ‘‘Department of Defense
supply system’’.
(3) Section 7522 is amended by striking out
‘‘Secretary of the Navy’’ and all that follows through
‘‘chiefs of bureaus’’ and inserting in lieu thereof
‘‘Secretary of Defense’’.
(c) AIR FORCE.—Part IV of subtitle D of such title
is amended as follows:
(1) Sections 9511(10) and 9540(a) are amend-
ed by striking out ‘‘Secretary of the Air Force’’ and
inserting in lieu thereof ‘‘Secretary of Defense’’.
(2) Section 9513(a) is amended—
(A) in paragraph (1), by striking out ‘‘Sec-
retary of the Air Force—’’ and all that follows
and inserting in lieu thereof the following: ‘‘Sec-
retary, in consultation with the Secretary of the
military department concerned, may, by con-
tract entered into with a contractor, authorize
such contractor to use one or more Department
of Defense installations designated by the Sec-
retary of Defense.’’; and
(B) in paragraph (2), by striking out ‘‘of
the Air Force’’.
SEC. 228. OTHER LAWS.
In any other provision of law providing authority for
the Secretary of a military department or the head of a
Defense Agency of the Department of Defense to perform
a research, development, or acquisition function of the De-
partment of Defense, the reference to that official shall
be deemed to refer to the Secretary of Defense. That func-
tion shall be performed as provided in section 133(b) of
title 10, United States Code (as amended by section
201(a)), and section 232 of such title (as added by section
201(b)).
Subtitle D—Effective Date
SEC. 231. EFFECTIVE DATE.
This title and the amendments made by this title
shall take effect on the date that is one year after the
date of the enactment of this Act.
TITLE III—DEPOT-LEVEL
MAINTENANCE
SEC. 301. ELIMINATION OF 60 / 40 RULE FOR PUBLIC / PRI-
VATE DIVISION OF DEPOT-LEVEL MAINTE-
NANCE WORKLOAD.
(a) ELIMINATION OF RULE.—Section 2466 of title
10, United States Code, is amended—
(1) by striking out subsections (a), (c), (d), and
(e); and
(2) by striking out ‘‘(b) PROHIBITION ON MAN-
AGEMENT BY END STRENGTH.—’’.
(b) CONFORMING AMENDMENTS.—(1) The heading
of such section is amended to read as follows:
‘‘§ 2466. Civilian employees involved in depot-level
maintenance and repair of materiel: pro-
hibition 
on 
management 
by 
end
strength’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 146 of such title is
amended to read as follows:
‘‘2466. Civilian employees involved in depot-level maintenance and repair of ma-
teriel: prohibition on management by end strength.’’.
SEC. 302. PRESERVATION OF CORE MAINTENANCE AND RE-
PAIR CAPABILITY.
(a) IN GENERAL.—(1) Chapter 146 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 2472. Core maintenance and repair capability:
preservation
‘‘(a) NECESSITY FOR CORE MAINTENANCE AND RE-
PAIR CAPABILITIES.—It is essential for the national de-
fense that the Department of Defense preserve an organic
maintenance and repair capability (including personnel,
equipment, and facilities) to meet readiness and sustain-
ability requirements established by the Chairman of the
Joint Chiefs of Staff for the systems and equipment re-
quired for contingency plans approved by the Chairman
of the Joint Chiefs of Staff under section 153(a)(3) of
this title.
‘‘(b) IDENTIFICATION OF CORE MAINTENANCE AND
REPAIR CAPABILITIES.—The Secretary of Defense shall
identify those maintenance and repair activities of the De-
partment of Defense that are necessary to preserve the
maintenance and repair capability described in subsection
(a). The Secretary may identify for such purpose only
those activities of the Department of Defense that are nec-
essary to ensure a ready and controlled source of technical
competence for that purpose. The Secretary may not iden-
tify for such purpose any intermediate-level or depot-level
maintenance or repair activity.
‘‘(c) LIMITATION ON CONTRACTING.—The Secretary
may not contract for the performance by non-Government
personnel of a maintenance activity identified by the Sec-
retary under subsection (b) under the procedures and re-
quirements of Office of Management and Budget Circular
A–76 or any successor administrative regulation or policy
unless the Secretary of Defense determines (under regula-
tions prescribed by the Secretary) that Government per-
formance of the activity is no longer required for national
defense reasons.
‘‘(d) CONTRACTING
FOR PERFORMANCE
OF NON-
CORE FUNCTIONS.—In the case of any maintenance or
repair activity (including the making of major modifica-
tions and upgrades) that is not identified by the Secretary
under subsection (b), the Secretary concerned shall pro-
vide for the performance of that activity by an entity in
the private sector, selected through the use of competitive
procedures, unless the Secretary determines that the per-
formance of that activity by a Government entity is nec-
essary to maintain the defense industrial base.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘2472. Core maintenance and repair capability: preservation.’’.
(b) REVISION OF REGULATIONS.—The Secretary of
Defense shall revise the existing Department of Defense
regulations relating to depot level maintenance and repair
activities in order to ensure the consistency of those regu-
lations with the policy provided in section 2472(d) of title
10, United States Code, as added by subsection (a).
SEC. 303. PERFORMANCE OF DEPOT-LEVEL MAINTENANCE
WORKLOAD BY PRIVATE SECTOR WHENEVER
POSSIBLE.
(a) REQUIREMENT.—Section 2469 of title 10, United
States Code, is amended to read as follows:
‘‘§ 2469. Depot-level maintenance and repair activi-
ties: use of private sector
‘‘(a) IN GENERAL.—The Secretary of Defense shall
(except as provided in subsection (b)) provide for the per-
formance by private sector entities of all depot-level main-
100
tenance and all depot-level repair work of the Department
of Defense.
‘‘(b) EXCEPTION.—The Secretary may provide for
the performance of a particular depot-level maintenance
workload, or a particular depot-level repair workload, by
an entity of the Department of Defense if—
‘‘(1) no responsive bids for performance of that
workload are received from responsible offerors; or
‘‘(2) the Secretary makes a determination that
subsection (a) must be waived for that particular
workload for reasons of national security.’’.
(b) CLERICAL AMENDMENT.—The item relating to
section 2469 in the table of sections at the beginning of
chapter 146 of such title is amended to read as follows:
‘‘2469. Depot-level maintenance and repair activities: use of private sector.’’.
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