Primary Functional Area : Life Cycle Logistics
10 USC 2469 is a statute that prohibits the Secretary of Defense from reassigning organically-performed depot maintenance workloads without some form of competition that is open to DoD depot-level maintenance activities. The statute is sometimes referred to as the "$3 Million Law" or the "$3 Million Rule."
Key aspects of the statute are:
- The Secretary of Defense may not change the performance of depot-level workload currently being performed by a DoD depot maintenance activity to another source, unless the change is made using:
- Merit-based selection procedures for competitions among all DoD depot-level activities (i.e., public-public competition).
- Competitive procedures for competitions among private and public sector entities (i.e., public-private competition).
- In either case, the thrust of the statute is to mandate that a depot maintenance workload may not be transferred out of an organic depot to another source without some type of competitive process that is open to organic depots.
- This requirement applies to any depot maintenance workload with a value of not less than $3 Million. (This has been interpreted to mean an annual value of $3M, including labor & materials.)
- A waiver may be granted for workloads reassigned to a contract source performed at a Center of Industrial and Technical Excellence pursuant to a public-private partnership entered into under the provisions of 10 USC 2474.
- The provisions Office of Management and Budget Circular A-76 do not apply to depot workloads reassigned in accordance with this statute.
- Although not explicitly stated, the statute, in effect, applies to both core and non-core workload.
- Although not explicitly stated, the distinction between "competitive procedures" for organic-to-contract transfers and "merit-based" procedures for organic-to-organic transfers would seem to imply that public-public competitions may be conducted on a less formal--though not necessarily less rigorous--basis than public-private competitions. In fact, the common practice has been to conduct public-private competitions in accordance with the Defense Federal Acquisition Regulation Supplement, while public-public competitions have been governed by Service-level regulations.
Defense Acquisition Guidebook, Policies, Directives, Regulations,
Laws
[Suggest Change]
- 10 USC 2460, Definition of depot-Level maintenance and repair
- 10 USC 2464, Core logistics capabilities
- 10 USC 2466, Limitations on the performance of depot-level maintenance of materiel.
- 10 USC 2469, Contracts to perform workloads previously performed by depot-level activities of the Department of Defense; requirement of competition
- 10 USC 2470, Depot-level activities of the Department of Defense, authority to compete for maintenance and repair workloads of other Federal agencies
- 10 USC 2472, Prohibition on management of depot employees by end strength
- 10 USC 2474, Centers of Industrial Technical Excellence: designation; public-private partnerships
- 10 USC 2476, Minimum capital investment for certain depots
- 10 USC 153a, Chairman functions
- DoD Directive 4151.18, Maintenance of Materiel
- DoD Instruction 4151.20, Depot Maintenance Core Capabilities Determination Process
- DoD Instruction 4141.21, Public-Private Partnerships
- DoD 7000.14-R, Vol 6A, Chapter 14, Depot Maintenance Reporting
Best Practices, Lessons Learned, Stories, Guides,
Handbooks, Templates, Examples, Tools
[Suggest Change]
- CLL 006, Depot Partnering
- CLL 022, Title 10 Depot Maintenance Statute Overview
- CLL 023, Title 10 USC 2464 Core Statute Implementation
- CLL 024, Title 10 Limitations on Performance of Depot Level Maintenance (50-50)
- CLL 025, Depot Maintenance Interservice Agreements
- CLL 026, Depot Maintenance Capacity Measurement
- LOG 101, Acquisition Logistics Fundamentals
- LOG 102, Fundamentals of System Sustainment Management
- LOG 103, Reliability, Availability, and Maintainability
- LOG 200, Product Support Strategy Development, Part A
- LOG 201, Product Support Strategy Development, Part B
- LOG 211, Supportability Analysis
- LOG 235, Performance-Based Logistics
- LOG 340, Life Cycle Product Support
- LOG 350, Enterprise Life Cycle Logistics Management
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Page Information
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Page Views
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4,217
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Created on
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1/9/2012
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Modified on
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10/27/2016
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Last Reviewed
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1/13/2016
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