Section 2466 of title 10, U.S. Code, stipulates that not more than 50 percent of annual depot maintenance funding provided to the military departments and defense agencies can be used for work accomplished by private sector contractors. It also provides that the Secretary of a military department may waive the 50-50 requirement if the Secretary determines a waiver is necessary for reasons of national security and notifies Congress regarding the reasons for the waiver. Further, section 2466 provides that the Department of Defense (DOD) shall submit two reports on public- and private-sector depot maintenance workloads to the Congress every year. The first report is to provide the percentages of funds expended in the public and private sectors during the 2 preceding fiscal years (the prior-years report), and the second report is to project this same information for the current and 4 succeeding fiscal years (the future-years report). For 2001, the prior-years report was issued on February 1, 2001, and the future-years report on April 1, 2001.

GAO-02-95 Depot Maintenance: Management Attention Required to Further Improve Workload Allocation Data