Annual report on supervision, inspection, and overhead costs for military construction projects

2861. Annual report on supervision, inspection, and overhead costs for military construction projects Subchapter III of chapter 169 of title 10, United States Code, is amended by inserting after section 2851a the following new section: 2851b. Annual report on supervision, inspection, and overhead costs of military construction projects (a) In general Not later than the date on which the budget of the President for fiscal year 2028 is submitted to Congress pursuant to section 1105 of title 31, and on an annual basis thereafter, the Secretary of Defense, in coordination with the Assistant Secretary of Defense for Energy, Installations, and Environment, shall submit to the congressional defense committees a report with respect to supervision, inspection, and overhead costs for military construction projects during the fiscal year immediately preceding the fiscal year in which the report is submitted. (b) Elements Each report required under subsection (a) shall include, with respect to the period covered by the report, the following: (1) The total amount of supervision, inspection, and overhead costs accrued, disaggregated by— (A) military department; and (B) construction agent. (2) A description of how amounts appropriated for supervision, inspection, and overhead for military construction projects were expended during such period, disaggregated by— (A) direct project supervision and inspection costs; (B) field office overhead; (C) regional office overhead; and (D) headquarters overhead. (3) The supervision, inspection, and overhead rate in effect during the fiscal year immediately preceding such period. (4) If the supervision, inspection, and overhead rate in effect as of the date of the submission of the report is different than the rate described in paragraph (3)— (A) a summary of the changes to such rate; and (B) the justification for such changes. (5) A summary that compares the total amount of supervision, inspection, and overhead costs accrued to the total amount of supervision, inspection, and overhead funds expended, including— (A) an identification of any surplus or shortfall in such funds; and (B) a description of how any surplus of such funds was used. (6) The total amount of any similar overhead cost assessed on operation and maintenance funds used for facility sustainment, restoration, and modernization projects, disaggregated by military department, and a description of the facility sustainment, restoration, and modernization projects for which such operation and maintenance funds were expended. (7) Any recommendations of the Secretary with respect to adjustments to the supervision, inspection, and overhead rate for the fiscal year immediately succeeding the fiscal year during which such report is submitted, including the justification for any such recommendations. (c) Data submission by construction agents Not later than 90 days before the deadline for each report required under subsection (a), the Chief of Engineers of the United States Army Corps of Engineers and the Commander of the Naval Facilities Engineering Systems Command shall submit to the Secretary of Defense such data as the Secretary determines necessary to prepare such report, in such form as the Secretary determines appropriate. (d) Construction agent defined In this section, the term construction agent means— (1) the United States Army Corps of Engineers; (2) the Naval Facilities Engineering Systems Command; or (3) any other entity designated to supervise a military construction project pursuant to section 2851 of this title. .