(1) The conduct of public-private competitions 
for the performance of Department of Defense func-
tions, based on Office of Management and Budget 
Circular A–76, can lead to dramatic reductions in the 
workforce, undermining an agency’s ability to per-
form its mission. 
(2) The Army Garrison commander at the Wal-
ter Reed Army Medical Center has stated that the ex-
tended A–76 competition process contributed to the 
departure of highly skilled administrative and main-
tenance personnel, which led to the problems at the 
Walter Reed Army Medical Center. 
(b) MORATORIUM.—During the one-year period begin-
ning on the date of the enactment of this Act, no study or 
competition may be begun or announced pursuant to sec-
tion 2461 of title 10, United States Code, or otherwise pur-
suant to Office of Management and Budget Circular A–76 
relating to the possible conversion to performance by a con-
tractor of any Department of Defense function carried out 
at a military medical facility . 
(c) REPORT REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall submit to the Committee on Armed Services 
of the Senate and the Committee on Armed Services of the 
House of Representatives a report on the public-private 
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competitions being conducted for Department of Defense 
functions carried out at military medical facilities as of 
the date of the enactment of this Act by each military de-
partment and defense agency. Such report shall include— 
(1) for each such competition— 
(A) the cost of conducting the public-private 
competition; 
(B) the number of military personnel and 
civilian employees of the Department of Defense 
affected; 
(C) the estimated savings identified and the 
savings actually achieved; 
(D) an evaluation whether the anticipated 
and budgeted savings can be achieved through a 
public-private competition; and 
(E) the effect of converting the performance 
of the function to performance by a contractor on 
the quality of the performance of the function; 
(2) a description of any public-private competi-
tion the Secretary would conduct if the moratorium 
under subsection (b) were not in effect; and 
(3) an assessment of whether any method of busi-
ness reform or reengineering other than a public-pri-
vate competition could, if implemented in the future, 
achieve any anticipated or budgeted savings. 
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SEC. 302. PROHIBITION ON TRANSFER OF RESOURCES 
FROM MEDICAL CARE. 
Neither the Secretary of Defense nor the Secretaries of 
the military departments may transfer funds or personnel 
from medical care functions to administrative functions 
within the Department of Defense in order to comply with 
the new administrative requirements imposed by this Act 
or the amendments made by this Act. 
SEC. 303. INCREASE IN PHYSICIANS AT HOSPITALS OF THE 
DEPARTMENT OF VETERANS AFFAIRS. 
The Secretary of Veterans Affairs shall increase the 
number of resident physicians at hospitals of the Depart-
ment of Veterans Affairs. 
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Union Calendar No. 39 
110TH CONGRESS 
1ST SESSION 
H. R. 1538 
[Report No. 110–68, Part I] 
A BILL 
To amend title 10, United States Code, to improve 
the management of medical care, personnel ac-
tions, and quality of life issues for members of 
the Armed Forces who are receiving medical care 
in an outpatient status, and for other purposes. 
MARCH 23, 2007 
Reported from the Committee on Armed Services with an 
amendment 
MARCH 23, 2007 
Committee on Veterans’ Affairs discharged; committed to 
the Committee of the Whole House on the State of the 
Union and ordered to be printed 
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