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by inserting after the item relating to section 2462 
the following new item: 
‘‘2463. Guidelines for use of civilian employees to perform Department of De-
fense functions.’’. 
(3) DEADLINE
FOR
ISSUANCE
OF
GUIDE-
LINES.— 
(A) DEADLINE.—The Secretary of Defense 
shall implement the guidelines required under 
section 2463 of title 10, United States Code, as 
added by paragraph (1), by not later than 60 
days after the date of the enactment of this 
Act. 
(B) 
MORATORIUM
ON
COMPETITIONS 
UNTIL
GUIDELINES
ARE
IMPLEMENTED.—No 
study or competition may be begun or an-
nounced pursuant to section 2461 of title 10, 
United States Code, or otherwise pursuant to 
Office of Management and Budget Circular A– 
76 relating to the possible conversion to per-
formance by a contractor of any Department of 
Defense function until the guidelines required 
under section 2463 of such title, as added by 
paragraph (1) are implemented. 
(b) ESTABLISHMENT OF INVENTORY OF WORK PER-
FORMED BY CONTRACTORS.—Section 115a of title 10, 
United States Code is amended—
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(1) in subsection (a)— 
(A) by striking ‘‘and’’ at the end of para-
graph (1); 
(B) by striking the period at the end of 
paragraph (2) and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(3) the estimated manpower requirements of 
each component of the Department of Defense pro-
jected to be met by contractor performance of De-
partment of Defense functions and the estimated 
funding requirements associated with such con-
tractor performance for the next fiscal year.’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(i) In each report, the Secretary shall include for 
each military department, combatant command, and 
major defense organization, a separate report describing 
contractor performance of Department of Defense func-
tions during the preceding fiscal year. Chapter 35 of title 
44 shall not apply to such report. In each such report, 
the Secretary shall— 
‘‘(1) specify the number of work-year equiva-
lents performed by contractors in performing func-
tions for each Department;
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‘‘(2) identify the contracting organization, the 
component of the Department of Defense admin-
istering the contract, and the organization whose re-
quirements are being met through the contractor 
performance of the function, with an explanation in 
the event these organizational elements are distinct. 
‘‘(3) identify each organization specified under 
paragraph (2) at the unit level of detail, as main-
tained in the Department’s manpower documenta-
tion systems; 
‘‘(4) identify the funding source for the con-
tract under which the function is performed by ap-
propriation and operating agency, and the associated 
funding levels obligated and disbursed for the re-
ported work-year equivalents; 
‘‘(5) identify the functions and missions per-
formed by the contractor; 
‘‘(6) specify whether the contract for the func-
tion was entered into pursuant to a public-private 
competition; and 
‘‘(7) describe the process by which the Depart-
ment of Defense validates the contractor perform-
ance of such functions under section 2463 of this 
title.’’.
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(c) CONFORMING REPEAL.—The National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109– 
163) is amended by striking section 343. 
(d) INSPECTOR GENERAL REPORT.—Not later than 
90 days after the date of the enactment of this Act, the 
Inspector General of the Department of Defense shall sub-
mit to the congressional defense committees a report on 
the implementation of this section and the amendments 
made by this section. The report shall contain the assess-
ment of the Inspector General of whether— 
(1) the guidelines required under section 
2463(a) of title 10, United States Code, as added by 
subsection (a), have been implemented; 
(2) such guidelines, if developed, conform to the 
requirements of that section; 
(3) a contractor inventory has been established 
pursuant to subsections (a)(3) and (i) of section 
115a of such title, as added by subsection (b); 
(4) functions for which the performance of 
which the Secretary of Defense has entered into a 
contract are being reviewed on a regular basis for 
possible conversion to performance by civilian em-
ployees of the Department of Defense; and 
(5) performance by civilian employees of the 
Department of Defense is being considered to the
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maximum extent practicable for all new functions of 
the Department of Defense. 
SEC. 327. ADDITIONAL REQUIREMENTS FOR ANNUAL RE-
PORT ON PUBLIC-PRIVATE COMPETITIONS. 
Paragraph (1) of subsection (b) of section 2462 is 
amended by adding at the end the following new para-
graphs: 
‘‘(4) For any function converted to performance 
by a contractor, the effect of such conversion on the 
quality of the performance of the function. 
‘‘(5) For any function for which a public-pri-
vate competition is anticipated during any subse-
quent fiscal year, an assessment of whether any 
method of business reform or reengineering other 
than a public-private competition, including a deci-
sion to consolidate, restructure, or reengineer an or-
ganization, function, or activity covered under sec-
tion 2475 of this title, could, if implemented in the 
future, achieve any anticipated or budgeted sav-
ings.’’. 
SEC. 328. RESTRICTION ON OFFICE OF MANAGEMENT AND 
BUDGET INFLUENCE OVER DEPARTMENT OF 
DEFENSE PUBLIC-PRIVATE COMPETITIONS. 
(a) RESTRICTION ON OFFICE OF MANAGEMENT AND 
BUDGET.—The Office of Management and Budget may
100 
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not direct or require the Secretary of Defense or the Sec-
retary of a military department to prepare for, undertake, 
continue, or complete a public-private competition or di-
rect conversion of a Department of Defense function to 
performance by a contractor under Office of Management 
and Budget Circular A–76, or any other successor regula-
tion, directive, or policy. 
(b) RESTRICTION ON SECRETARY OF DEFENSE.— 
The Secretary of Defense or the Secretary of a military 
department may not prepare for, undertake, continue, or 
complete a public-private competition or direct conversion 
of a Department of Defense function to performance by 
a contractor under Office of Management and Budget Cir-
cular A–76, or any other successor regulation, directive, 
or policy by reason of any direction or requirement pro-
vided by the Office of Management and Budget. 
(c) SUSPENSION AND REVIEW OF ONGOING PUBLIC- 
PRIVATE COMPETITIONS.— 
(1) SUSPENSION.—During the 90-day period 
that begins on the date of the enactment of this Act, 
the Secretary of Defense shall suspend any review or 
public-private competition pursuant to Office of 
Management and Budget Circular A–76 that is 
being carried out on the date of the enactment of 
this Act.