PUBLIC LAW 106-65 —OCT. 5, 1999 113 STAT. 711 that the Secretary determines to be necessary pursuant to paragraph (1). SEC. 814. PILOT PROGRAM FOR COMMERCIAL SERVICES. (a) PROGRAM AUTHORIZED.— The Secretary of Defense may carry out a pilot program to treat procurements of commercial services as procurements of commercial items. (b) DESIGNATION OF PILOT PROGRAM CATEGORIES.—The Secretary of Defense may designate the following categories of services as commercial services covered by the pilot program: (1) Utilities and housekeeping services. (2) Education and training services. (3) Medical services. (c) TREATMENT AS COMMERCIAL ITEMS.—A Department of Defense contract for the procurement of commercial services designated by the Secretary for the pilot program shall be treated as a contract for the procurement of commercial items, as defined in section 4(12) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)), if the source of the services provides similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government. (d) GUIDANCE.— Not later than 90 days after the date of the enactment of this Act, the Secretary shall issue guidance to procurement officials on contracting for commercial services under the pilot program. The guidance shall place particular emphasis on ensuring that negotiated prices for designated services, including prices negotiated without competition, are fair and reasonable. (e) UNIFIED MANAGEMENT OF PROCUREMENTS. — The Secretary of Defense shall develop and implement procedures to ensure that, whenever appropriate, a single item manager or contracting officer is responsible for entering into all contracts from a single contractor for commercial services under the pilot program. (f) DURATION OF PILOT PROGRAM. — (1) The pilot program shall begin on the date that the Secretary issues the guidance required by subsection (d) and may continue for a period, not in excess of five years, that the Secretary shall establish. (2) The pilot program shall cover Department of Defense contracts for the procurement of commercial services designated by the Secretary under subsection (b) that are awarded or modified during the period of the pilot program, regardless of whether the contracts are performed during the period. (g) REPORT TO CONGRESS.—(1) The Secretary shall submit to Congress a report on the impact of the pilot program on— (A) prices paid by the Federal Government under contracts for commercial services covered by the pilot program; (B) the quality and timeliness of the services provided under such contracts; and (C) the extent of competition for such contracts. (2) The Secretary shall submit the report— (A) not later than 90 days after the end of the third full fiscal year for which the pilot program is in effect; or (B) if the period established for the pilot program under subsection (f)(1) does not cover three full fiscal years, not later than 90 days after the end of the designated period. (h) PRICE TREND ANALYSIS.— The Secretary of Defense shall apply the procedures developed pursuant to section 803(c) of the Strom Thurmond National Defense Authorization Act for Fiscal 10 USC 2461 note. Deadline. Deadline.
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