PUBLIC LAW 104-106—FEB. 10, 1996 110 STAT. 267 (1) Food and clothing. (2) Medical and pharmaceutical supplies. (3) Automotive, electrical, fuel, and construction supplies. (4) Other consumable inventory items the Secretary considers appropriate. SEC. 353. PAYROLL, FINANCE, AND ACCOUNTING FUNCTIONS OF THE DEPARTMENT OF DEFENSE. (a) PLAN FOR PRIVATE OPERATION OF CERTAIN FUNCTIONS. — lo use 2461 (1) Not later than October 1, 1996, the Secretary of Defense shall note, submit to Congress a plan for the performance by private-sector sources of payroll functions for civilian employees of the Department of Defense other than employees paid from nonappropriated funds. (2)(A) The Secretary shall implement the plan referred to in paragraph (1) if the Secretary determines that the cost of performance by private-sector sources of the functions referred to in that paragraph does not exceed the cost of performance of those functions by employees of the Federal Government. (B) In computing the total cost of performance of such functions by employees of the Federal Government, the Secretary shall include the following: (i) Managerial and administrative costs. (ii) Personnel costs, including the cost of providing retirement benefits for such personnel. (iii) Costs associated with the provision of facilities and other support by Federal agencies. (C) The Defense Contract Audit Agency shall verify the costs computed for the Secretary under this paragraph by others. (3) At the same time the Secretary submits the plan required Reports, by paragraph (1), the Secretary shall submit to Congress a report on other accounting and finance functions of the Department that are appropriate for performance by private-sector sources. (b) PILOT PROGRAM FOR PRIVATE OPERATION OF NAFI FUNG- IOUSC 246I TIONS.— (1) The Secretary shall carry out a pilot program to test note. the performance by private-sector sources of payroll and other accounting and finance functions of nonappropriated fund instrumentalities and to evaluate the extent to which cost savings and efficiencies would result from the performance of such functions by those sources. (2) The payroll and other accounting and finance functions designated by the Secretary for performance by private-sector sources under the pilot program shall include at least one major payroll, accounting, or finance function. (3) To carry out the pilot program, the Secretary shall enter into discussions with private-sector sources for the purpose of developing a request for proposals to be issued for performance by those sources of functions designated by the Secretary under paragraph (2). The discussions shall be conducted on a schedule that accommodates issuance of a request for proposals within 60 days after the date of the enactment of this Act. (4) A goal of the pilot program is to reduce by at least 25 percent the total costs incurred by the Department annually for the performance of a function referred to in paragraph (2) through the performance of that function by a private-sector source. (5) Before conducting the pilot program, the Secretary shall develop a plan for the program that addresses the following: (A) The purposes of the program.
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