237.102-71 Limitation on service contracts for military flight simulators.

(a) Definitions. As used in this subsection— (1) Military flight simulator means any system to simulate the form, fit, and function of a military aircraft that has no commonly available commercial variant. (2) Service contract means any contract entered into by DoD, the principal purpose of which is to furnish services in the United States through the use of service employees as defined in 41 U.S.C. 6701. (b) Under Section 832 of Public Law 109-364, as amended by Section 883(b) of Public Law 110-181, DoD is prohibited from entering into a service contract to acquire a military flight simulator. However, the Secretary of Defense may waive this prohibition with respect to a contract, if the Secretary— (1) Determines that a waiver is in the national interest; and (2) Provides an economic analysis to the congressional defense committees at least 30 days before the waiver takes effect. This economic analysis shall include, at a minimum— (i) A clear explanation of the need for the contract; and (ii) An examination of at least two alternatives for fulfilling the requirements that the contract is meant to fulfill, including the following with respect to each alternative: (A) A rationale for including the alternative. (B) A cost estimate of the alternative and an analysis of the quality of each cost estimate. (C) A discussion of the benefits to be realized from the alternative. (D) A best value determination of each alternative and a detailed explanation of the life-cycle cost calculations used in the determination. (c) When reviewing requirements or participating in acquisition planning that would result in a military department or defense agency acquiring a military flight simulator, the contracting officer shall notify the program officials of the prohibition in paragraph (b) of this subsection. If the program officials decide to request a waiver from the Secretary of Defense under paragraph (b) of this subsection, the contracting officer shall follow the procedures at PGI 237.102-71.