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DoD is proposing to amend the Defense Federal Acquisition Regulations Supplement (DFARS) to implement section 812 of the National Defense Authorization Act for FY 2017.  Section 812 requires the Secretary of Defense to:

• Establish a data collection system with regard to each purchase of services by a military department or defense agency in excess of $3 million for the following service acquisition portfolio groups:  logistics managements services, equipment-related services, knowledge-based services, and electronics and communications services; and
• Prepare an annual inventory, and submit to Congress a summary of the inventory, of activities performed during the preceding fiscal year pursuant to staff augmentation contracts on behalf of DoD.

To create the inventory required by the statute, DoD must collect information from contractors performing such services, which will be accomplished through the use of the Enterprise-wide Contractor Manpower Reporting Application (ECMRA).  This rule amends the DFARS to provide instructions to contracting officers and contractors regarding reports to be submitted through ECMRA.  As such, the rule will increase costs for contractors, including small entities; however, the new reporting requirements are necessary for DoD to comply with the requirements of 10 U.S.C. 2330a.