110 STAT. 272 PUBLIC LAW 104-106—FEB. 10, 1996 (b) APPLICABILITY. — (1) Subsection (a) shall not apply to any commercial product or service with respect to which the Secretary determines that production, manufacture, or provision of that product or service by the Government is necessary for reasons of national security. (2) A determination under paragraph (1) shall be made in accordance with regulations prescribed under subsection (c). (c) REGULATIONS. —The Secretary shall prescribe regulations to carry out this section. Such regulations shall be prescribed in consultation with the Director of the Office of Management and Budget. (d) REPORT.—(1) The Secretary shall identify activities of the Department (other than activities specified by the Secretary pursuant to subsection (b)) that are carried out by employees of the Department to provide commercial-type products or services for the Department. (2) Not later than April 15, 1996, the Secretary shall transmit to the congressional defense committees a report on opportunities for increased use of private-sector sources to provide commercial products and services for the Department. (3) The report required by paragraph (2) shall include the following: (A) A list of activities identified under paragraph (1) indicating, for each activity, whether the Secretary proposes to convert the performance of that activity to performance by private-sector sources and, if not, the reasons why. (B) An assessment of the advantages and disadvantages of using private-sector sources, rather than employees of the Department, to provide commercial products and services for the Department that are not essential to the warflghting mission of the Armed Forces. (C) A specification of all legislative and regulatory impediments to converting the performance of activities identified under paragraph (1) to performance by private-sector sources. (D) The views of the Secretary on the desirability of terminating the applicability of OMB Circular A-76 to the Department. (4) The Secretary shall carry out paragraph (1) in consultation with the Director of the Office of Management and Budget and the Comptroller General of the United States. In carrying out that paragraph, the Secretary shall consult with, and seek the views of, representatives of the private sector, including organizations representing small businesses. Subtitle F—Miscellaneous Reviews, Studies, and Reports SEC. 361. QUARTERLY READINESS REPORTS. (a) IN GENERAL.—(1) Chapter 22 of title 10, United States Code, is amended by adding at the end the following new section: "§ 452. Quarterly readiness reports "(a) REQUIREMENT.— Not later than 30 days after the end of each calendar-year quarter, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report
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