Tuisicaasano nantes rout
ear SIME on Congress of the United States i aaaone
Surcomret on ROONEEE ‘Mouse of Representatives
‘oumirreon FOREN aera recat
September 19, 2016
‘The Honorable Mac Thomberry ‘The Honorabe John McCain
Chairman Chairman
House Armed Services Committee Senate Armed Services Committee
2216 Rayburn Building 208 Russell Building
‘Washington, D.C. 20515 ‘Washington, D.C. 20810
‘The Honorable Adam Smith ‘The Honorabe Jack Reed
Ranking Member Ranking Member
House Armed Services Committee Senate Armed Services Committee
2216 Rayburn Building 228 Russell Building
‘Washington, D.C, 20515 ‘Washington, D.C. 20510
Dear Chairmen and Ranking Members,
‘Thank you for your continuing efforts to enact a National Defense Authorization Act (NDAA)
{or Fiscal Year 2017 (FY17). As you move into conference deliberations forthe NDAA for
FY17, | respectilly ask thatthe Senate recede tothe House position on the following issues:
‘+ Maintaining the Moratorium on A-76 Privatization Studies. A-76 studies proseribe a
methodology forthe U.S. government to determine whether job functions should be
performed by the public or the private sector. The studies evaluate the 20st savings from
privatizing job functions, among other factors. However, reports from the Government
‘Accountability Office (GAO) and from the DoD’s Office ofthe Inspector General have
shown the A-76 studies to be unreliable in estimating those savings. Fer that reason,
‘among o*hers, Congress has placed a moratorium on the A-76 studies,
‘The language in the Senate version (Section 806) would lift the moraterum on
conducting A-76 privatization studies atthe Department of Defense (DoD). The
prohibition on A-76 studies was implemented as part of the FY2010 NDAA. One of the
Act's reeuirements for lifting the prohibition is that the DoD submit a eport to Congress.
‘outlining the Department's inventory of service contractors. The DoD has yet not
‘deliverec that report. Congress cannot properly conduct oversight ofthe A-76 studies
without a baseline inventory ofthe contractors the DOD is curently using, We cannot
and should not lift the prohibition on A-76 studies until that inventory s delivered,
Furtherrore iting the moratorium now would send the wrong signalto the DoD and
‘other Federal agencies about the importance of responding to Congressional mandates.‘+ Completing the DoD Service Contractor Inventory. The Senate version of the
NDAA- Section 820, in paricular—does away with a requirement tasking the DoD with
compiling a service contractor-inventory list In place of that inventory lst, Section 820
requires the DoD have to account for “staff augmentation” contracts. However, few
contractors are employed under “staff augmentation” contracts—particulrly when
compared to the hundreds of thousands of DoD contractors.
tis vital to know how many contractors DoD employs. They oflen serve side-by-side
\with DoD's military and civilian personnel, and their companies receive billions of
dollars In FY2014, for instance, more than half ofthe DoD acausitions obligation—
bout $285 billion went to pay contractors fr services, rather than simply
acquisition, Congress must havea fll accounting of DeD contractors in order to oversee
that spending
‘+ Protecting DoD’s Per Diem Rates for Long-Term Official Travel: In 2014 the DoD
implemented a policy that cut government and military personnel per diem rates for those
‘on temporary duty assignments lasting 31 to 180 days. The policy reduced DoD civilian
and military personnel's per diems by 25% for travel of more than 30 days and by 45%
for travel of more than 180 days,
Cost cutting is meant to reduce inefficiencies and redundancies—not penalize
‘government civil servants and military personnel. The DoD policy has harmed morale,
and has negatively affected many businesses catering to the DoD's civilian and military
employees. Already, in the House, abill (H.R. 1193) to reverse the DoD’ per diem cuts
has received widespread and bipartisan suppor.
‘Thank you for taking my concerns on these important issues into consideration,
Sincerely.
Yul Caldard)