[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1850 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1850

    To require the Secretary of Defense to plan and carry out pilot 
   projects to test various ``best business practices'' for defense 
                         inventory management.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 10, 1997

  Mrs. Maloney of New York (for herself, Mr. DeFazio, Mr. Barrett of 
 Wisconsin, Ms. Slaughter, Ms. McKinney, Mr. Jackson of Illinois, Mr. 
 McGovern, Ms. Norton, and Mr. Rothman) introduced the following bill; 
        which was referred to the Committee on National Security

_______________________________________________________________________

                                 A BILL


 
    To require the Secretary of Defense to plan and carry out pilot 
   projects to test various ``best business practices'' for defense 
                         inventory management.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PILOT PROJECTS TO TEST ``BEST BUSINESS PRACTICES'' FOR 
              DEFENSE INVENTORY MANAGEMENT.

    (a) Requirement To Conduct Pilot Projects.--The Secretary of 
Defense shall conduct pilot projects for the purpose of testing various 
techniques to improve the inventory management of the Department of 
Defense. The Secretary shall conduct the projects in accordance with 
the plan developed under subsection (b) and shall begin implementation 
of the projects not later than October 1, 1998.
    (b) Plan.--The Secretary of Defense shall develop a plan for 
carrying out the pilot projects. The plan shall contain specific goals, 
including a schedule, for improving inventory management, and shall 
provide for the following pilot projects:
            (1) A pilot project to be carried out by each military 
        department to test in an integrated manner (where feasible) the 
        following techniques for depot-level maintenance and repair 
        workloads at one depot-level activity of the department:
                    (A) The use of cellular manufacturing techniques, 
                which involves bringing all the resources (including 
                mechanics, equipment, support personnel, and inventory) 
                needed to complete repairs to one location.
                    (B) The elimination of excess spare parts inventory 
                and the rapid initiation of repair actions.
                    (C) The use of private entities for logistics 
                services such as warehousing, distribution, and 
                delivery of spare parts.
            (2) A pilot project to be carried out at each military 
        department to test, with respect to hardware items (such as 
        bolts, valves, and fuses), the use of innovative supplier 
        partnerships that give a supplier the responsibility to manage, 
        store, and distribute inventory on a frequent, regular basis 
        (sometimes referred to as a ``prime vendor'' technique).
    (c) Access by Comptroller General.--The Secretary of Defense shall 
provide representatives of the Comptroller General with access to 
information available during the development of the plan under 
subsection (b).
    (d) Submission of Plan to Congress.--Not later than 180 days after 
the date of the enactment of this Act, the Secretary of Defense--
            (1) shall submit the plan developed under subsection (b) to 
        the Committees on Government Reform and Oversight and on 
        National Security of the House of Representatives and the 
        Committees on Governmental Affairs and on Armed Services of the 
        Senate; and
            (2) shall provide a copy of the plan to the Comptroller 
        General.
    (e) Assessment by Comptroller General.--Not later than 60 days 
after receipt of the plan, the Comptroller General shall transmit to 
the committees referred to in subsection (d)(1) an assessment of the 
plan, including such recommendations as the Comptroller General 
considers appropriate.
    (f) Reports on Results of Projects.--Not later than six months 
after the pilot projects begin to be implemented, the Secretary of 
Defense shall submit to the committees referred to in subsection (d)(1) 
a progress report on the pilot projects. Not later than one year after 
the pilot projects begin to be implemented, the Secretary of Defense 
shall submit to such committees a final report on the pilot projects. 
Both the progress report and the final report shall include--
            (1) an estimate of cost savings and other benefits achieved 
        by each pilot project;
            (2) an analysis of the feasibility of using the techniques 
        demonstrated in each pilot project throughout the Department of 
        Defense; and
            (3) such recommendations as the Secretary of Defense 
        considers appropriate.
                                 <all>