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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5618 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5618

         To promote defense innovation, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

            December 19 (legislative day, December 16), 2024

  Mr. Wicker introduced the following bill; which was read twice and 
              referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL

 
         To promote defense innovation, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Fostering Reform 
and Government Efficiency in Defense Act'' or ``FoRGED Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 101. Repeals of existing law to streamline the defense acquisition 
                            process.
Sec. 102. Modifications to current defense acquisition requirements.
Sec. 103. Automatic sunset for future statutory reporting requirements.
      TITLE II--DEFENSE ACQUISITION ROLES, RESPONSIBILITIES, AND 
                             ORGANIZATIONS

Sec. 201. Transition of program executive officer role to portfolio 
                            acquisition executive.
Sec. 202. Amendments to the Joint Requirements Oversight Council.
Sec. 203. Matters relating to the Director of Cost Assessment and 
                            Program Evaluation.
Sec. 204. Establishment of Joint Requirements and Programming Board.
Sec. 205. Capstone requirements.
        TITLE III--RAPID ACQUISITION AND COMMERCIAL CONTRACTING

Sec. 301. Milestone A.
Sec. 302. Modification to acquisition strategy.
Sec. 303. Exemptions for nontraditional defense contractors.
Sec. 304. Modifications to treatment of certain products and services 
                            as commercial products and commercial 
                            services.
Sec. 305. Modification to nontraditional defense contractor 
                            definitions.
Sec. 306. Alternative capability based pricing.
Sec. 307. Modifications to certain procurement thresholds.
Sec. 308. Modifications to commercial solutions openings.
Sec. 309. Modifications to other transactions.
Sec. 310. Modifications to commercial product and commercial service 
                            determinations by Department of Defense.
Sec. 311. Commercially acceptable transaction and payment methods.
Sec. 312. Transparency and accountability of contract awards.
Sec. 313. Limitation on required flowdown of contract clauses to 
                            subcontractors providing commercial 
                            products or commercial services.
Sec. 314. Modifications to relationship of other provisions of law to 
                            procurement of commercial products and 
                            commercial services.
Sec. 315. Nontraditional defense contractor commercial solutions 
                            opening.
Sec. 316. Program management office competition.
Sec. 317. Middle tier of acquisition for rapid prototyping and rapid 
                            fielding.
Sec. 318. Revision and codification of software acquisition pathways.
Sec. 319. Modifications to steps to identify and address potential 
                            unfair competitive advantage of technical 
                            advisors to acquisition officials.
Sec. 320. Modifications to procurement for experimental purposes.
Sec. 321. Consumption-based solutions.
   TITLE IV--PROMOTION OF COMPETITION IN THE DEFENSE INDUSTRIAL BASE

Sec. 401. Program for enhancing secondary sources and supply chain 
                            management for the Department of Defense.
Sec. 402. Administration of the industrial expansion program.
                  TITLE V--DEFENSE BUDGETING PROCESSES

Sec. 501. Review of structure of the budget and appropriations for 
                            funding of defense acquisition programs.
Sec. 502. Modifications to the Defense Modernization Account.
Sec. 503. Amendments and repeals to budgetary requirements for defense 
                            acquisition.

SEC. 101. REPEALS OF EXISTING LAW TO STREAMLINE THE DEFENSE ACQUISITION 
              PROCESS.

    (a) In General.--The following provisions are hereby repealed:
            (1) Section 3067 of title 10, United States Code.
            (2) Section 3070 of title 10, United States Code.
            (3) Section 3072 of title 10, United States Code.
            (4) Section 874 of the National Defense Authorization Act 
        for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. note prec. 
        3101).
            (5) Section 913 of the National Defense Authorization Act 
        for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. note prec. 
        3101).
            (6) Section 810 of the National Defense Authorization Act 
        for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. note prec. 
        3101).
            (7) Chapter 205 of title 10, United States Code.
            (8) Section 8669b of title 10, United States Code.
            (9) Section 8669c of title 10, United States Code.
            (10) Section 8688 of title 10, United States Code.
            (11) Section 8696 of title 10, United States Code.
            (12) Section 3135 of title 10, United States Code.
            (13) Section 3138 of title 10, United States Code.
            (14) Section 843 of the National Defense Authorization Act 
        for Fiscal Year 2013 (Public Law 112-239; 10 U.S.C. note prec. 
        3151).
            (15) Section 3152 of title 10, United States Code.
            (16) Section 3153 of title 10, United States Code.
            (17) Section 3154 of title 10, United States Code.
            (18) Section 1281 of the National Defense Authorization Act 
        for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. 3153 note).
            (19) Section 153 of the National Defense Authorization Act 
        for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. note prec. 
        3201).
            (20) Subsections (a)-(c) of section 804 of the Duncan 
        Hunter National Defense Authorization Act for Fiscal Year 2009 
        (Public Law 110-417; 122 Stat. 4356).
            (21) Section 822 of the National Defense Authorization Act 
        for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. note prec. 
        3201).
            (22) Section 892 of the National Defense Authorization Act 
        for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. 3201 note).
            (23) Section 805 of the National Defense Authorization Act 
        for Fiscal Year 2004 (Public Law 108-136; 10 U.S.C. 3201 note).
            (24) Section 823 of the National Defense Authorization Act 
        for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 3204 note).
            (25) Section 802 of the National Defense Authorization Act 
        for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 3206 note).
            (26) Section 3207 of title 10, United States Code.
            (27) Section 807 of the National Defense Authorization Act 
        for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 3207 note).
            (28) Section 3208 of title 10, United States Code.
            (29) Section 3222 of title 10, United States Code.
            (30) Section 3223 of title 10, United States Code.
            (31) Section 3224 of title 10, United States Code.
            (32) Section 3225 of title 10, United States Code.
            (33) Section 856 of the National Defense Authorization Act 
        for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. note prec. 
        3241).
            (34) Section 1513 of the National Defense Authorization Act 
        for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. note prec. 
        3241).
            (35) Section 219 of the James M. Inhofe National Defense 
        Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10 
        U.S.C. note prec. 3241).
            (36) Section 220 of the James M. Inhofe National Defense 
        Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10 
        U.S.C. note prec. 3241).
            (37) Section 334 of the National Defense Authorization Act 
        for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. note prec. 
        3241).
            (38) Section 231 of the National Defense Authorization Act 
        for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. note prec. 
        3241).
            (39) Section 852 of the Carl Levin and Howard P. ``Buck'' 
        McKeon National Defense Authorization Act for Fiscal Year 2015 
        (Public Law 113-291; 10 U.S.C. note prec. 3241).
            (40) Section 127 of the Ike Skelton National Defense 
        Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10 
        U.S.C. note prec. 3241).
            (41) Subsections (a)-(f) of section 866 of the Ike Skelton 
        National Defense Authorization Act for Fiscal Year 2011 (Public 
        Law 111-383; 10 U.S.C. note prec. 3241).
            (42) Section 143 of the Duncan Hunter National Defense 
        Authorization Act for Fiscal Year 2009 (Public Law 110-417; 10 
        U.S.C. note prec. 3241).
            (43) Section 254 of the Duncan Hunter National Defense 
        Authorization Act for Fiscal Year 2009 (Public Law 110-417; 10 
        U.S.C. note prec. 3241).
            (44) Section 886 of the National Defense Authorization Act 
        for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. note prec. 
        3241).
            (45) Section 890 of the National Defense Authorization Act 
        for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. note prec. 
        3241).
            (46) Subsections (a)-(c) of section 130 of the John Warner 
        National Defense Authorization Act for Fiscal Year 2007 (Public 
        Law 109-364; 10 U.S.C. note prec. 3241).
            (47) Section 851 of the Ronald W. Reagan National Defense 
        Authorization Act for Fiscal Year 2005 (Public Law 108-375; 10 
        U.S.C. note prec. 3241).
            (48) Subsection (a)-(c) of section 802 of the National 
        Defense Authorization Act for Fiscal Year 2004 (Public Law 108-
        136; 10 U.S.C. note prec. 3241).
            (49) Section 314 of the Bob Stump National Defense 
        Authorization Act for Fiscal Year 2003 (Public Law 107-314; 10 
        U.S.C. note prec. 3241).
            (50) Section 826 of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (Public Law 106-398; 10 
        U.S.C. note prec. 3241).
            (51) Section 806 of the Strom Thurmond National Defense 
        Authorization Act for Fiscal Year 1999 (Public Law 105-261; 10 
        U.S.C. note prec. 3241).
            (52) Section 797 of the Department of Defense Appropriation 
        Act, 1983 (96 Stat. 1865)(as enacted into law by section 101(c) 
        of the Further Continuing Appropriations Act, 1983 (Public Law 
        97-377; 96 Stat. 1833).
            (53) Section 3241 of title 10, United States Code.
            (54) Section 368 of the National Defense Authorization Act 
        for Fiscal Year 2012 (Public Law 112-81; 10 U.S.C. 3303 note).
            (55) Section 818(a) of the National Defense Authorization 
        Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 3304 
        note).
            (56) Section 3247 of title 10, United States Code.
            (57) Section 3323 of title 10, United States Code.
            (58) Section 875 of the National Defense Authorization Act 
        for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. note prec. 
        3344 ).
            (59) Section 822 of the John S. McCain National Defense 
        Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10 
        U.S.C. note prec. 3344 ).
            (60) Section 816 of the National Defense Authorization Act 
        for Fiscal Year 2006 (Public Law 109-163; 10 U.S.C. note prec. 
        3344).
            (61) Section 809 of the National Defense Authorization Act 
        for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. note prec. 
        3371).
            (62) Section 3371 of title 10, United States Code.
            (63) Section 3373 of title 10, United States Code.
            (64) Section 3374 of title 10, United States Code.
            (65) Section 883 of the James M. Inhofe National Defense 
        Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10 
        U.S.C. 3372 note).
            (66) Section 13004 of the Coronavirus Aid, Relief, and 
        Economic Security Act (Public Law 116-136; 10 U.S.C. 3372 
        note).
            (67) Section 3375 of title 10, United States Code.
            (68) Section 3455 of title 10, United States Code.
            (69) Section 803(a)(3) of the National Defense 
        Authorization Act for Fiscal Year 2022 (Public Law 117-81; 10 
        U.S.C. 3458).
            (70) Section 8008 of the Department of Defense 
        Appropriations Act, 1998 (Public Law 105-56; 10 U.S.C. 3501).
            (71) Section 318 of the National Defense Authorization Act 
        for Fiscal Year 2002 (Public Law 107-107; 10 U.S.C. note prec. 
        3671).
            (72) Section 1018 of the John Warner National Defense 
        Authorization Act for Fiscal Year 2007 (Public Law 109-364; 10 
        U.S.C. note prec. 3671).
            (73) Section 3678 of title 10, United States Code.
            (74) Section 133 of the Bob Stump National Defense 
        Authorization Act for Fiscal Year 2003 (Public Law 107-314; 10 
        U.S.C. 3678 note).
            (75) Chapter 258 of title 10, United States Code.
            (76) Section 308 of the 2002 Supplemental Appropriations 
        Act for Further Recovery From and Response To Terrorist Attacks 
        on the United States (Public Law 107-206, 10 U.S.C. 3678 note).
            (77) Section 831 of the National Defense Authorization Act 
        for Fiscal Year 2013 (Public Law 112-239; 10 U.S.C. note prec. 
        3701).
            (78) Section 817 of the Bob Stump National Defense 
        Authorization Act for Fiscal Year 2003 (Public Law 107-314; 10 
        U.S.C. note prec. 3701).
            (79) Chapter 273 of title 10, United States Code.
            (80) Section 891 of the William M. (Mac) Thornberry 
        National Defense Authorization Act for Fiscal Year 2021 (Public 
        Law 116-283; 10 U.S.C. 3804 note).
            (81) Section 231 of the National Defense Authorization Act 
        for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 4001 note).
            (82) Section 1544 of the National Defense Authorization Act 
        for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 4001 note).
            (83) Section 225 of the James M. Inhofe National Defense 
        Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10 
        U.S.C. 4001 note).
            (84) Section 233 of the James M. Inhofe National Defense 
        Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10 
        U.S.C. 4001 note).
            (85) Section 236 of the James M. Inhofe National Defense 
        Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10 
        U.S.C. 4001 note).
            (86) Section 1513 of the James M. Inhofe National Defense 
        Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10 
        U.S.C. 4001 note).
            (87) Section 226 of the National Defense Authorization Act 
        for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4001 note).
            (88) Section 229 of the National Defense Authorization Act 
        for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4001 note).
            (89) Section 380 of the National Defense Authorization Act 
        for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4001 note).
            (90) Section 823 of the National Defense Authorization Act 
        for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4001 note).
            (91) Section 833 of the National Defense Authorization Act 
        for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4001 note).
            (92) Section 220 of the William M. (Mac) Thornberry 
        National Defense Authorization Act for Fiscal Year 2021 (Public 
        Law 116-283; 10 U.S.C. 4001 note).
            (93) Section 226 of the William M. (Mac) Thornberry 
        National Defense Authorization Act for Fiscal Year 2021 (Public 
        Law 116-283; 10 U.S.C. 4001 note).
            (94) Section 233 of the William M. (Mac) Thornberry 
        National Defense Authorization Act for Fiscal Year 2021 (Public 
        Law 116-283; 10 U.S.C. 4001 note).
            (95) Section 236 of the William M. (Mac) Thornberry 
        National Defense Authorization Act for Fiscal Year 2021 (Public 
        Law 116-283; 10 U.S.C. 4001 note).
            (96) Section 249 of the William M. (Mac) Thornberry 
        National Defense Authorization Act for Fiscal Year 2021 (Public 
        Law 116-283; 10 U.S.C. 4001 note).
            (97) Section 223 of the National Defense Authorization Act 
        for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4001 note).
            (98) Section 228 of the National Defense Authorization Act 
        for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4001 note).
            (99) Section 229 of the National Defense Authorization Act 
        for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4001 note).
            (100) Section 232 of the National Defense Authorization Act 
        for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4001 note).
            (101) Section 227 of the John S. McCain National Defense 
        Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10 
        U.S.C. 4001 note).
            (102) Section 217 of the National Defense Authorization Act 
        for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 4001 note).
            (103) Section 1056 of the National Defense Authorization 
        Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4001 
        note).
            (104) Section 802 of the Cooperative Threat Reduction Act 
        of 1993 (Public Law 103-160; 10 U.S.C. 4001 note).
            (105) Section 231 of the National Defense Authorization Act 
        for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4007 note).
            (106) Section 1603 of the National Defense Authorization 
        Act for Fiscal Year 2014 (Public Law 113-66; 10 U.S.C. 4007 
        note).
            (107) Section 4010 of title 10, United States Code.
            (108) Section 222 of the John S. McCain National Defense 
        Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10 
        U.S.C. 4014 note).
            (109) Section 873 of the John S. McCain National Defense 
        Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10 
        U.S.C. 4021 note).
            (110) Section 13006 of the Coronavirus Aid, Relief, and 
        Economic Security Act (Public Law 116-136; 10 U.S.C. 4022 
        note).
            (111) Section 1543 of the National Defense Authorization 
        Act for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 4025 
        note).
            (112) Section 1089 of the National Defense Authorization 
        Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 4025 
        note).
            (113) Section 4027 of title 10, United States Code.
            (114) Section 220 of the John S. McCain National Defense 
        Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10 
        U.S.C. note prec. 4061).
            (115) Section 230 of the John S. McCain National Defense 
        Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10 
        U.S.C. note prec. 4061).
            (116) Section 225 of the National Defense Authorization Act 
        for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. note prec. 
        4061).
            (117) Section 812 of the National Defense Authorization Act 
        for Fiscal Year 2000 (Public Law 106-65; 10 U.S.C. note prec. 
        4061).
            (118) Section 4066 of title 10, United States Code.
            (119) Section 4067 of title 10, United States Code.
            (120) Section 1708(b) of the William M. (Mac) Thornberry 
        National Defense Authorization Act for Fiscal Year 2021 (Public 
        Law 116-283; 10 U.S.C. 4092 note).
            (121) Section 250 of the William M. (Mac) Thornberry 
        National Defense Authorization Act for Fiscal Year 2021 (Public 
        Law 116-283; 10 U.S.C. 4093 note).
            (122) Sectional 1104(f) of the National Defense 
        Authorization Act for Fiscal Year 2006 (Public Law 109-163; 10 
        U.S.C. 4093 note).
            (123) Section 4957 of title 10, United States Code.
            (124) Section 905 of the John S. McCain National Defense 
        Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10 
        U.S.C. 4125 note).
            (125) Section 235 of the National Defense Authorization Act 
        for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. 4126 note).
            (126) Section 227 of the National Defense Authorization Act 
        for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. note prec. 
        4141).
            (127) Section 252 of the National Defense Authorization Act 
        for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. note prec. 
        4141).
            (128) Section 233 of the National Defense Authorization Act 
        for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. note prec. 
        4141).
            (129) Section 4142 of title 10, United States Code.
            (130) Section 4143 of title 10, United States Code.
            (131) Section 843 of the John S. McCain National Defense 
        Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10 
        U.S.C. note prec. 4171).
            (132) Section 839 of the National Defense Authorization Act 
        for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. note prec. 
        4171).
            (133) Section 242 of the National Defense Authorization Act 
        for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. note prec. 
        4172).
            (134) Section 223 of the National Defense Authorization Act 
        for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4172 note).
            (135) Section 1043 of the National Defense Authorization 
        Act for Fiscal Year 2010 (Public Law 111-84; 10 U.S.C. 4174 
        note).
            (136) Section 828 of the National Defense Authorization Act 
        for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. note prec. 
        4201).
            (137) Section 4203 of title 10, United States Code.
            (138) Section 4204 of title 10, United States Code.
            (139) Section 1676(b) of the National Defense Authorization 
        Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 4205 
        note).
            (140) Section 1683 of the National Defense Authorization 
        Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 4205 
        note).
            (141) Section 1685 of the National Defense Authorization 
        Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 4205 
        note).
            (142) Section 1686 of the National Defense Authorization 
        Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 4205 
        note).
            (143) Section 1688 of the National Defense Authorization 
        Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 4205 
        note).
            (144) Section 1681(b) of the National Defense Authorization 
        Act for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4205 
        note).
            (145) Section 1687 of the National Defense Authorization 
        Act for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. 4205 
        note).
            (146) Section 1689 of the National Defense Authorization 
        Act for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. 4205 
        note).
            (147) Section 1692 of the National Defense Authorization 
        Act for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. 4205 
        note).
            (148) Section 1618 of the National Defense Authorization 
        Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4205 
        note).
            (149) Section 1675 of the National Defense Authorization 
        Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4205 
        note).
            (150) Section 1680 of the National Defense Authorization 
        Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4205 
        note).
            (151) Section 1681 of the National Defense Authorization 
        Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4205 
        note).
            (152) Section 1682 of the National Defense Authorization 
        Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4205 
        note).
            (153) Section 1684 of the National Defense Authorization 
        Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4205 
        note).
            (154) Section 1684 of the National Defense Authorization 
        Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4205 
        note).
            (155) Section 1687 of the National Defense Authorization 
        Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4205 
        note).
            (156) Section 1662 of the Carl Levin and Howard P. ``Buck'' 
        McKeon National Defense Authorization Act for Fiscal Year 2015 
        (Public Law 113-291; 10 U.S.C. 4205 note).
            (157) Section 1663 of the Carl Levin and Howard P. ``Buck'' 
        McKeon National Defense Authorization Act for Fiscal Year 2015 
        (Public Law 113-291; 10 U.S.C. 4205 note).
            (158) Section 235 of the National Defense Authorization Act 
        for Fiscal Year 2014 (Public Law 113-66; 10 U.S.C. 4205 note).
            (159) Section 237 of the National Defense Authorization Act 
        for Fiscal Year 2014 (Public Law 113-66; 10 U.S.C. 4205 note).
            (160) Section 223(a)-(d) of the Ike Skelton National 
        Defense Authorization Act for Fiscal Year 2011 (Public Law 111-
        383; 10 U.S.C. 4205 note).
            (161) Section 233 of the Duncan Hunter National Defense 
        Authorization Act for Fiscal Year 2009 (Public Law 110-417; 10 
        U.S.C. 4205 note).
            (162) Section 223 of the John Warner National Defense 
        Authorization Act for Fiscal Year 2007 (Public Law 109-364; 10 
        U.S.C. 4205 note).
            (163) Section 234 of the National Defense Authorization Act 
        for Fiscal Year 2006 (Public Law 109-163; 10 U.S.C. 4205 note).
            (164) Section 232 of the Ronald W. Reagan National Defense 
        Authorization Act for Fiscal Year 2005 (Public Law 108-375; 10 
        U.S.C. 4205 note).
            (165) Section 234 of the Ronald W. Reagan National Defense 
        Authorization Act for Fiscal Year 2005 (Public Law 108-375; 10 
        U.S.C. 4205 note).
            (166) Section 224 of the Bob Stump National Defense 
        Authorization Act for Fiscal Year 2003 (Public Law 107-314; 10 
        U.S.C. 4205 note).
            (167) Section 234 of the National Defense Authorization Act 
        for Fiscal Year 2002 (Public Law 107-107; 10 U.S.C. 4205 note).
            (168) Section 3132 of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (Public Law 106-398; 10 
        U.S.C. 4205 note).
            (169) Section 235 of the Cooperative Threat Reduction Act 
        of 1993 (Public Law 103-160; 10 U.S.C. 4205 note).
            (170) Section 243 of the Cooperative Threat Reduction Act 
        of 1993 (Public Law 103-160; 10 U.S.C. 4205 note).
            (171) Section 231 of the Armament Retooling and 
        Manufacturing Support Act of 1992 (Public Law 102-484; 10 
        U.S.C. 4205 note).
            (172) Section 224 of the Department of Energy National 
        Security and Military Applications of Nuclear Energy 
        Authorization Act of 1988 (Public Law 100-180; 10 U.S.C. 4205 
        note).
            (173) Section 227 of the Department of Energy National 
        Security and Military Applications of Nuclear Energy 
        Authorization Act of 1988 (Public Law 100-180; 10 U.S.C. 4205 
        note).
            (174) Section 213 of the Barry Goldwater Scholarship and 
        Excellence in Education Act (Public Law 99-661; 10 U.S.C. 4205 
        note).
            (175) Section 1252 of the Defense Procurement Reform Act of 
        1984 (Public Law 98-525; 10 U.S.C. 4205 note).
            (176) Section 8104 of the Department of Defense 
        Appropriations Act, 1985 (10 U.S.C. 4205 note) (as enacted into 
        law by section 101(h) of the Joint Resolution entitled ``Joint 
        Resolution continuing appropriations for the fiscal year 1985, 
        and for other purposes'', approved October 12, 1984 (Public Law 
        98-473; 98 Stat. 1837).
            (177) Section 208 of the Department of Energy National 
        Security and Military Applications of Nuclear Energy 
        Authorization Act of 1988 (Public Law 100-180; 10 U.S.C. 4205 
        note).
            (178) Section 802 of the Military Construction 
        Authorization Act, 1981 (Public Law 96-418; 10 U.S.C. 4205 
        note).
            (179) Section 202 of the Department of Defense 
        Authorization Act, 1981 (Public Law 96-342; 10 U.S.C. 4205 
        note).
            (180) Section 202 of the Department of Defense Supplemental 
        Appropriation Authorization Act, 1979 (Public Law 96-29; 10 
        U.S.C. 4205 note).
            (181) Section 608 of the Military Construction 
        Authorization Act, 1975 (Public Law 93-552; 10 U.S.C. 4205 
        note).
            (182) Section 837 of the National Defense Authorization Act 
        for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. note prec. 
        4211).
            (183) Section 812 of the Ike Skelton National Defense 
        Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10 
        U.S.C. note prec. 4211).
            (184) Section 806 of the National Defense Authorization Act 
        for Fiscal Year 2006 (Public Law 109-163; 10 U.S.C. note prec. 
        4211).
            (185) Section 4212 of title 10, United States Code.
            (186) Section 4214 of title 10, United States Code.
            (187) Section 818(b)-(f) of the John Warner National 
        Defense Authorization Act for Fiscal Year 2007 (Public Law 109-
        364; 10 U.S.C. note prec. 4231).
            (188) Section 4231 of title 10, United States Code.
            (189) Section 832 of the National Defense Authorization Act 
        for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4251 note).
            (190) Section 802(d)(2) of the National Defense 
        Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10 
        U.S.C. 4251 note).
            (191) Section 838(a)(3)-(4) of the National Defense 
        Authorization Act for Fiscal Year 2018 (Public Law 115-91; 10 
        U.S.C. 4252 note).
            (192) Section 1047(d) of the Duncan Hunter National Defense 
        Authorization Act for Fiscal Year 2009 (Public Law 110-417; 10 
        U.S.C. 4252 note).
            (193) Subchapter IV of chapter 322 of title 10, United 
        States Code.
            (194) Section 814 of the Duncan Hunter National Defense 
        Authorization Act for Fiscal Year 2009 (Public Law 110-417; 10 
        U.S.C. 4271 note).
            (195) Section 925(b) of the National Defense Authorization 
        Act for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. 4271 
        note).
            (196) Section 802 of the National Defense Authorization Act 
        for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. 4292 note).
            (197) Section 4321 of title 10, United States Code.
            (198) Section 4323 of title 10, United States Code.
            (199) Section 4325 of title 10, United States Code.
            (200) Section 4328 of title 10, United States Code.
            (201) Section 812 of the John Warner National Defense 
        Authorization Act for Fiscal Year 2007 (Public Law 109-364; 10 
        U.S.C. 4325 note).
            (202) Section 4372 of title 10, United States Code.
            (203) Section 4373 of title 10, United States Code.
            (204) Section 4376 of title 10, United States Code.
            (205) Section 4377 of title 10, United States Code.
            (206) Section 4402 of title 10, United States Code.
            (207) Subchapter II of chapter 327 of title 10, United 
        States Code.
            (208) Section 224 of the National Defense Authorization Act 
        for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. note prec. 
        4501).
            (209) Section 833 of the Ike Skelton National Defense 
        Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10 
        U.S.C. note prec. 4501).
            (210) Section 831(b) of the Ike Skelton National Defense 
        Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10 
        U.S.C. note prec. 4501).
            (211) Section 846 of the National Defense Authorization Act 
        for Fiscal Year 2013 (Public Law 112-239; 10 U.S.C. note prec. 
        4501).
            (212) Section 863(a)-(h) of the Ike Skelton National 
        Defense Authorization Act for Fiscal Year 2011 (Public Law 111-
        383; 10 U.S.C. note prec. 4501).
            (213) Section 808 of the National Defense Authorization Act 
        for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. note prec. 
        4501).
            (214) Section 832 of the John Warner National Defense 
        Authorization Act for Fiscal Year 2007 (Public Law 109-364; 10 
        U.S.C. note prec. 4501).
            (215) Section 4505 of title 10, United States Code.
            (216) Section 4506 of title 10, United States Code.
            (217) Section 883(e) of the National Defense Authorization 
        Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. note 
        prec. 4571).
            (218) Section 938 of the National Defense Authorization Act 
        for Fiscal Year 2014 (Public Law 113-66; 10 U.S.C. note prec. 
        4571).
            (219) Section 1526 of the National Defense Authorization 
        Act for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 4571 
        note).
            (220) Section 221 of the James M. Inhofe National Defense 
        Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10 
        U.S.C. 4571 note).
            (221) Section 233 of the National Defense Authorization Act 
        for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4571 note).
            (222) Section 224 of the William M. (Mac) Thornberry 
        National Defense Authorization Act for Fiscal Year 2021(Public 
        Law 116-283;10 U.S.C. 4571 note).
            (223) Section 225 of the William M. (Mac) Thornberry 
        National Defense Authorization Act for Fiscal Year 2021(Public 
        Law 116-283;10 U.S.C. 4571 note).
            (224) Section 835 of the William M. (Mac) Thornberry 
        National Defense Authorization Act for Fiscal Year 2021(Public 
        Law 116-283;10 U.S.C. 4571 note).
            (225) Section 226 of the National Defense Authorization Act 
        for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4571 note).
            (226) Section 231 of the National Defense Authorization Act 
        for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4571 note).
            (227) Section 254 of the National Defense Authorization Act 
        for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4571 note).
            (228) Section 255 of the National Defense Authorization Act 
        for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4571 note).
            (229) Section 1651 of the National Defense Authorization 
        Act for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4571 
        note).
            (230) Section 1755 of the National Defense Authorization 
        Act for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4571 
        note).
            (231) Section 868 of the John S. McCain National Defense 
        Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10 
        U.S.C. 4571 note).
            (232) Section 1064 of the John S. McCain National Defense 
        Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10 
        U.S.C. 4571 note).
            (233) Section 1272 of the National Defense Authorization 
        Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 4571 
        note).
            (234) Section 854 of the Carl Levin and Howard P. `Buck' 
        McKeon National Defense Authorization Act for Fiscal Year 2015 
        (Public Law 113-291; 10 U.S.C. 4571 note).
            (235) Section 2867 of the National Defense Authorization 
        Act for Fiscal Year 2012 (Public Law 112-81; 10 U.S.C. 4571 
        note).
            (236) Section 215 of the Ike Skelton National Defense 
        Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10 
        U.S.C. 4571 note).
            (237) Section 881 of the National Defense Authorization Act 
        for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. 4571 note).
            (238) Section 804 of the Bob Stump National Defense 
        Authorization Act for Fiscal Year 2003 (Public Law 107-314; 10 
        U.S.C. 4571 note).
            (239) Chapter 345 of title 10, United States Code.
            (240) Section 4703 of title 10, United States Code.
            (241) Section 334 of the National Defense Authorization Act 
        for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 113 note).
            (242) Section 378 of the National Defense Authorization Act 
        for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 113 note).
            (243) Section 846(a) of the William M. (Mac) Thornberry 
        National Defense Authorization Act for Fiscal Year 2021 (Public 
        Law 116-283; 10 U.S.C. 4811 note).
            (244) Section 4813 of title 10, United States Code.
            (245) Section 4814 of title 10, United States Code.
            (246) Section 4815 of title 10, United States Code.
            (247) Section 4816 of title 10, United States Code.
            (248) Section 4173 of title 10, United States Code.
            (249) Section 2228 of title 10, United States Code.
            (250) Section 3249 of title 10, United States Code.
            (251) Section 932 of the Ike Skelton National Defense 
        Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10 
        U.S.C. 2224 note).
            (252) Section 849 of the National Defense Authorization Act 
        for Fiscal Year 2018 (Public Law 115-91; 131 Stat. 1487).
            (253) Section 839 of the John S. McCain National Defense 
        Authorization Act for Fiscal Year 2019 (Public Law 115-232; 132 
        Stat. 1876).
            (254) Section 387(c) of the National Defense Authorization 
        Act for Fiscal Year 1998 (Public Law 105-85, 10 U.S.C. 195 
        note).
            (255) Section 804 of the National Defense Authorization Act 
        for Fiscal Year 2010 (Public Law 111-84; 123 Stat. 2402).
            (256) Section 881 of the National Defense Authorization Act 
        for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. note prec. 
        4601).
            (257) Section 802 of the Ronald W. Reagan National Defense 
        Authorization Act for Fiscal Year 2005 (Public Law 108-375; 10 
        U.S.C. note prec. 3062).
            (258) Section 326 of the National Defense Authorization Act 
        for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 3201 note).
            (259) Section 913 of the Department of Defense 
        Authorization Act, 1986 (Public Law 99-145; 10 U.S.C. note 
        prec. 3201).
            (260) Section 821 of the National Defense Authorization Act 
        for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. note prec. 
        3451).
            (261) Section 207(a)-(c) of the Weapon Systems Acquisition 
        Reform Act of 2009 (Public Law 111-23; 10 U.S.C. note prec. 
        4292).
            (262) Section 824(a) of the Ike Skelton National Defense 
        Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10 
        U.S.C. 3774 note).
            (263) Section 805 of the National Defense Authorization Act 
        for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. note prec. 
        3451).
            (264) Section 844(b) of the National Defense Authorization 
        Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 3453 
        note).
            (265) Section 328 of the National Defense Authorization Act 
        for Fiscal Year 2010 (Public Law 111-84; 10 U.S.C. 2458 note).
            (266) Section 325 of the Ronald W. Reagan National Defense 
        Authorization Act for Fiscal Year 2005 (Public Law 108-375; 10 
        U.S.C. 2461 note).
            (267) Section 356 of the National Defense Authorization Act 
        for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. 2461 note).
            (268) Section 256 of the Duncan Hunter National Defense 
        Authorization Act for Fiscal Year 2009 (Public Law 110-417; 10 
        U.S.C. 4811 note).
            (269) Section 238(b) of the National Defense Authorization 
        Act for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. 4841 
        note).
            (270) Subtitle D of title II of the National Defense 
        Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
        Stat. 3175).
            (271) Section 8062 of the Department of Defense 
        Appropriations Act, 2004 (Public Law 108-87; 10 U.S.C. 4841 
        note).
            (272) Section 214 of the National Defense Authorization Act 
        for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. 4841 note).
            (273) Section 227 of the National Defense Authorization Act 
        for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4841 note).
            (274) Section 215 of the James M. Inhofe National Defense 
        Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10 
        U.S.C. 4841 note).
            (275) Section 223 of the National Defense Authorization Act 
        for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 4841 note).
            (276) Section 846 of the John S. McCain National Defense 
        Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10 
        U.S.C. 4811 note).
            (277) Section 849 of the William M. (Mac) Thornberry 
        National Defense Authorization Act for Fiscal Year 2021 (Public 
        Law 116-283; 10 U.S.C. 4811 note).
            (278) Section 847 of the National Defense Authorization Act 
        for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4811 note).
            (279) Section 844 of the National Defense Authorization Act 
        for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4811 note).
            (280) Section 8133 of the Department of Defense 
        Appropriations Act, 2000 (Public Law 106-79; 113 Stat. 1267).
            (281) Section 867 of the National Defense Authorization Act 
        for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 221 note).
            (282) Section 322 of the National Defense Authorization Act 
        for Fiscal Year 2017 (Public 114-328; 10 U.S.C. 2228 note).
            (283) Section 813 of the National Defense Authorization Act 
        for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 3458 note).
            (284) Section 323 of the National Defense Authorization Act 
        for Fiscal Year 2014 (Public Law 113-66; 10 U.S.C. 4551).
            (285) Section 218 of the William M. (Mac) Thornberry 
        National Defense Authorization Act for Fiscal Year 2021 (Public 
        Law 116-283; 10 U.S.C. 8013 note).
    (b) Clerical Amendments.--
            (1) The table of sections at the beginning of chapter 131 
        of title 10, United States Code, is amended by striking the 
        item related to section 2228.
            (2) The table of sections at the beginning of chapter 203 
        of title 10, United States Code, is amended by striking the 
        items related to sections 3067, 3070, and 3072.
            (3) The table of sections at the beginning of chapter 207 
        of title 10, United States Code, is amended by striking the 
        items related to sections 3135 and 3138.
            (4) The table of sections at the beginning of subchapter I 
        of chapter 209 of title 10, United States Code, is amended by 
        striking the items related to sections 3152, 3153, and 3154.
            (5) The table of sections at the beginning of chapter 221 
        of title 10, United States Code, is amended by striking the 
        items related to sections 3207 and 3208.
            (6) The table of sections at the beginning of chapter 222 
        of title 10, United States Code, is amended by striking the 
        items related to sections 3222, 3223, 3224, and 3225.
            (7) The table of sections at the beginning of chapter 223 
        of title 10, United States Code, is amended by striking the 
        items related to sections 3241, 3247, and 3249.
            (8) The table of sections at the beginning of chapter 242 
        of title 10, United States Code, is amended by striking the 
        item related to section 3323.
            (9) The table of sections at the beginning of chapter 244 
        of title 10, United States Code, is amended by striking the 
        items related to sections 3371, 3373, 3374, and 3375.
            (10) The table of sections at the beginning of chapter 247 
        of title 10, United States Code, is amended by striking the 
        item related to section 3455.
            (11) The table of sections at the beginning of chapter 257 
        of title 10, United States Code, is amended by striking the 
        item related to section 3678.
            (12) The table of sections at the beginning of chapter 301 
        of title 10, United States Code, is amended by striking the 
        items related to sections 4010 and 4027.
            (13) The table of sections at the beginning of chapter 303 
        of title 10, United States Code, is amended by striking the 
        items related to sections 4066, 4067, 4142, and 4143.
            (14) The table of sections at the beginning of chapter 307 
        of title 10, United States Code, is amended by striking the 
        item related to section 4173.
            (15) The table of sections at the beginning of chapter 321 
        of title 10, United States Code, is amended by striking the 
        items related to sections 4203 and 4204.
            (16) The table of sections at the beginning of subchapter I 
        of chapter 322 of title 10, United States Code is amended by 
        striking the item related to section 4231.
            (17) The table of sections at the beginning of subchapter 
        II of chapter 322 of title 10, United States Code is amended by 
        striking the items related to sections 4212 and 4214.
            (18) The table of subchapters at the beginning of chapter 
        322 of title 10, United States Code is amended by striking the 
        item related to subchapter IV.
            (19) The table of sections at the beginning of chapter 323 
        of title 10, United States Code is amended by striking the item 
        related to sections 4321, 4323, 4325, and 4328.
            (20) The table of sections at the beginning of chapter 325 
        of title 10, United States Code is amended by striking the item 
        related to sections 4372, 4373, 4376, and 4377.
            (21) The table of subchapters at the beginning of chapter 
        327 of title 10, United States Code is amended by striking the 
        item related to subchapter II.
            (22) The table of sections at the beginning of subchapter I 
        of chapter 327 of title 10, United States Code is amended by 
        striking the item related to section 4402.
            (23) The table of sections at the beginning of chapter 341 
        of title 10, United States Code is amended by striking the 
        items related to sections 4505 and 4506.
            (24) The table of chapters for part V of title 10, United 
        States Code, is amended by striking the items related to 
        chapters 205, 258, 273, and 345.
            (25) The table of sections at the beginning of chapter 365 
        of title 10, United States Code is amended by striking the item 
        related to section 4703.
            (26) The table of sections at the beginning of chapter 382 
        of title 10, United States Code is amended by striking the 
        items related to sections 4813, 4814, 4815, and 4816.
            (27) The table of sections at the beginning of chapter 388 
        of title 10, United States Code, is amended by striking the 
        item related to section 4957.
            (28) The table of sections at the beginning of chapter 863 
        of title 10, United States Code, is amended by striking the 
        items related to sections 8669b, 8669c, 8688, and 8696.

SEC. 102. MODIFICATIONS TO CURRENT DEFENSE ACQUISITION REQUIREMENTS.

    (a) Modifications to Title 40.--Section 11101 of title 40, United 
States Code, is amended by striking paragraph (2) and inserting the 
following:
            ``(2) Executive agency.--The term `executive agency' 
        means--
                    ``(A) an executive department specified in section 
                101 of title 5, other than the Department of Defense;
                    ``(B) an independent establishment as defined in 
                section 104(1) of title 5; and
                    ``(C) a wholly owned Government corporation fully 
                subject to chapter 91 of title 31.''.
    (b) Modifications to Title 10.--Title 10, United States Code, is 
amended--
            (1) in section 2222--
                    (A) by striking subsections (e) through (g); and
                    (B) by redesignating subsections (h) and (i) as 
                subsections (e) and (f), respectively; and
                    (C) in subsection (f), as redesignated by 
                subparagraph (B) by striking paragraphs (9), (10), and 
                (11);
            (2) in section 3012(3)(B), by striking ``lowest overall 
        cost alternative'' and inserting ``best value'';
            (3) in section 3069--
                    (A) in subsection (a), by striking ``if that head 
                of an agency'' and all that follows through ``a 
                complete end item'';
                    (B) by striking subsections (b) through (d); and
                    (C) by redesignating subsection (e) as subsection 
                (b);
            (4) in section 3204--
                    (A) in subsection (a)--
                            (i) by redesignating paragraphs (2) through 
                        (7) as paragraphs (3) through (8), 
                        respectively;
                            (ii) by inserting after paragraph (1), the 
                        following:
            ``(2) market research indicates that the property or 
        service needed by the agency provides differentiated 
        capabilities, accelerated delivery schedules, or continuous 
        improvements;''.
                    (B) by striking subsections (b), (c), (d), and (g);
                    (C) by redesignating subsections (e) and (f) as 
                subsections (b) and (c), respectively;
                    (D) in subsection (b), as redesignated by 
                subparagraph (C)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A), by 
                                striking ``and certifies the accuracy 
                                and completeness of the justification'' 
                                and inserting ``in a manner that 
                                provides an accurate and complete 
                                justification''; and
                                    (II) in subparagraph (B)--
                                            (aa) by striking 
                                        ``$10,000,000'' each place it 
                                        appears and inserting 
                                        ``$100,000,000'';
                                            (bb) in clause (i), by 
                                        striking ``$500,000'' and 
                                        inserting ``$10,000,000''; and
                                            (cc) in clause (iii), by 
                                        striking ``$75,000,000'' and 
                                        inserting ``$500,000,000'';
                            (ii) in paragraph (3), by striking ``by 
                        subsection (a)(2)'' and inserting ``by 
                        paragraphs (3) or (4)(A) of subsection (a)''; 
                        and
                            (iii) in paragraph (4)--
                                    (I) in subparagraph (C), by 
                                striking ``subsection (a)(7)'' and 
                                inserting ``subsection (a)(8)''; and
                                    (II) in subparagraph (E), by 
                                striking ``subsection (a)(4)'' and 
                                inserting ``subsection (a)(5)''; and
                    (E) in paragraph (1) of subsection (c), as 
                redesignated by subparagraph (C)--
                            (i) in subparagraph (A), by striking 
                        ``subsection (e)(1)'' and inserting 
                        ``subsection (b)(1)''; and
                            (ii) in subparagraph (B), by striking 
                        ``subsection (a)(2)'' and inserting 
                        ``subsection (a)(3)'';
            (5) in section 3226--
                    (A) in subsection (a), by striking ``and other 
                program purposes conducted pursuant to subsection 
                (b)(6) of such section''; and
                    (B) by striking subsection (d);
            (6) in section 3243(d)--
                    (A) by striking paragraph (2);
                    (B) by redesignating paragraph (3) as paragraph 
                (2); and
                    (C) in paragraph (1)(B), by striking ``subject to 
                paragraph (2),'';
            (7) in section 3374, by inserting ``with significant 
        contract financing'' after ``undefinitized contractual action'' 
        each place it appears.;
            (8) in section 3601(c)(3)--
                    (A) in subparagraph (A), by striking ``Subject to 
                subparagraph (C), in any'' and inserting ``In any'';
                    (B) in subparagraph (B), by striking ``acquire 
                capability'' and all that follows through ``$50,000,000 
                during any fiscal year'' and inserting ``acquire 
                capability in an amount aggregating not more than 
                $3,000,000,000''; and
                    (C) by striking subparagraph (C);
            (9) in section 3703--
                    (A) in subsection (a)(1)(A), by striking ``that 
                results in at least two or more responsive and viable 
                competing bids'';
                    (B) in subsection (c), by striking ``or 5 percent'' 
                and inserting ``or 25 percent''; and
                    (C) in subsection (f), by striking ``under 
                subsection (a)(1) from such requirement'' and inserting 
                ``from such requirement under paragraphs (1) or (2) of 
                subsection (a)'';
            (10) in section 3705--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsection (c) as subsection 
                (b);
            (11) by amending section 3774 to read as follows:
``Sec. 3774. Preference for specially negotiated licenses
    ``The Secretary of Defense shall, to the maximum extent 
practicable, negotiate and enter into a contract with a contractor for 
a specially negotiated license for technical data to support the 
product support strategy of a major weapon system or subsystem of a 
major weapon system.'';
            (12) in the table of sections for subchapter I of chapter 
        275, by striking the item relating to section 3774 and 
        inserting the following new item:

``3774. Preference for specially negotiated licenses.'';
            (13) in section 3805(c), by striking ``15 percent'' and 
        inserting ``50 percent'';
            (14) in section 4201--
                    (A) in subsection (a)(2)--
                            (i) in subparagraph (A), by striking 
                        ``$300,000,000 (based on fiscal year 1990 
                        constant dollars)'' and inserting 
                        ``$1,000,000,000 (based on fiscal year 2024 
                        constant dollars)''; and
                            (ii) in subparagraph (B), by striking 
                        ``$1,800,000,000 (based on fiscal year 1990 
                        constant dollars)'' and inserting 
                        ``$5,000,000,000 (based on fiscal year 2024 
                        constant dollars)''; and
                    (B) in subsection (b), by adding at the end the 
                following:
            ``(3) An acquisition program for a defense software program 
        as described by section 800 of the National Defense 
        Authorization Act for Fiscal Year 2020 (Public Law 116-92; 10 
        U.S.C. 4571 note).'';
            (15) in section 4202(a)(2)--
                    (A) by striking subparagraph (B); and
                    (B) redesignating subparagraphs (C) and (D) as 
                subparagraphs (B) and (C), respectively;
            (16) in section 4882, by striking ``the President, through 
        the head of any department'' each place it appears and 
        inserting ``the Secretary of Defense'';
            (17) in section 4884, by striking ``The President'' and 
        inserting ``The Secretary of Defense''; and
            (18) in section 8683--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking ``(1) 
                        Appropriations'' and inserting 
                        ``Appropriations''; and
                            (ii) by striking paragraph (2); and
                    (B) in subsection (c), by striking ``$10,000,000'' 
                and inserting ``$50,000,000''.
    (c) Modifications to National Defense Authorization Acts.--
            (1) Section 229(c)(2)(A)(ii) of the National Defense 
        Authorization Act for Fiscal Year 2024 (Public Law 118-31; 10 
        U.S.C. 3601 note) is amended by striking ``$100,000,000'' and 
        inserting ``$300,000,000''.
            (2) Section 890 of the John S. McCain National Defense 
        Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10 
        U.S.C. note prec. 3701) is amended--
                    (A) in subsection (b)(2), by striking ``minimal 
                reporting'' and inserting ``no unique reporting''; and
                    (B) by striking subsection (d).
            (3) Section 873 of the National Defense Authorization Act 
        for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 3702 note) 
        is amended--
                    (A) in subsection (a)--
                            (i) by striking ``valued at less than 
                        $7,500,000''; and
                            (ii) by striking ``pursuant to'' and all 
                        that follows through ``Transfer Program,'';
                    (B) in subsection (b), by striking ``pursuant to'' 
                and all that follows through ``Research Program,'';
                    (C) by striking subsections (c) and (f); and
                    (D) by redesignating subsections (d), (e), and (g) 
                as subsection (c), (d), and (e), respectively.

SEC. 103. AUTOMATIC SUNSET FOR FUTURE STATUTORY REPORTING REQUIREMENTS.

    (a) In General.--Chapter 23 of title 10, United States Code, is 
amended by inserting after section 480 the following new section:
``Sec. 480a. Reports to Congress: Termination of indefinite-duration 
              reports after five years
    ``(a) In General.--Any provision of law enacted after the date of 
the enactment of this section that includes an indefinite-duration 
report requirement shall cease to be effective, with respect to that 
requirement, five years after the date of the enactment of that 
provision of law unless that provision of law expressly states that 
this section is inapplicable to that requirement or that provision of 
law.
    ``(b) Indefinite-Duration Report Requirement Defined.--In this 
section, the term `indefinite-duration report requirement' means a 
requirement in any provision of law for the Secretary of Defense (or 
any other officer or employee of the Department of Defense) to submit 
to Congress (or any committee of Congress) a periodic report for which 
the law does not--
            ``(1) state a specific period of time as the period during 
        which that report is required to be submitted or that provision 
        of law is in effect; or
            ``(2) state a specific termination date for the requirement 
        to submit the report or for that provision of law.
    ``(c) Periodic Report Defined.--In this section, the term `periodic 
report' means a report required to be submitted on an annual, 
semiannual, or other regular periodic basis.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
480 the following new item:

``480a. Reports to Congress: Termination of indefinite-duration reports 
                            after five years.''.

      TITLE II--DEFENSE ACQUISITION ROLES, RESPONSIBILITIES, AND 
                             ORGANIZATIONS

SEC. 201. TRANSITION OF PROGRAM EXECUTIVE OFFICER ROLE TO PORTFOLIO 
              ACQUISITION EXECUTIVE.

    (a) Definition.--Section 1737(a) of title 10, United States Code, 
is amended by striking paragraph (4) and inserting the following:
            ``(4) The term `portfolio acquisition executive' means the 
        primary stakeholder and member of the acquisition workforce 
        with overall management of requirements, programming, and 
        acquisition of defense acquisition programs assigned by the 
        service acquisition executive or component acquisition 
        executive and shall have all the necessary officials and 
        functional support directly under the control portfolio 
        acquisition executive, including responsibility for performance 
        evaluations, to the maximum extent practicable to develop, 
        procure, and transition programs into an operational 
        capability.''.
    (b) Critical Acquisition Positions.--Section 1731(a)(1)(B)(i) of 
title 10, United States Code, is amended by striking ``Program 
executive officer'' and inserting ``Portfolio acquisition executive''.
    (c) Position Qualifications.--Section 1735(c) of title 10, United 
States Code, is amended--
            (1) in the subsection heading, by striking ``Program 
        Executive Officers'' and inserting ``Portfolio Acquisition 
        Executive''; and
            (2) by striking ``program executive officer'' and inserting 
        ``portfolio acquisition executive''.
    (d) Government Performance of Certain Acquisition Functions.--
Section 1706(a) of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking ``Program executive 
        officer'' and inserting ``Portfolio acquisition executive''; 
        and
            (2) in paragraph (2), by striking ``Deputy program 
        executive officer'' and inserting ``Deputy portfolio 
        acquisition executive''.
    (e) Duties Related to Cadre of Intellectual Property Experts.--
Section 1707(c) of title 10, United States Code, is amended by striking 
``program executive officer'' and inserting ``portfolio acquisition 
executive''.
    (f) Portfolio Acquisition Executive Office .--Section 1509 of the 
James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 
(Public Law 117-263; 10 U.S.C. 167b) is amended--
            (1) by striking ``program executive office'' each place 
        that it appears and inserting ``portfolio acquisition executive 
        office''; and
            (2) in subsection (c), by striking ``Program Executive 
        Office'' in the subsection heading and inserting ``Portfolio 
        Acquisition Executive Office''.
    (g) Technology Release and Foreign Disclosure Reform Initiative.--
Section 918(a)(2)(D)(ii) of the National Defense Authorization Act for 
Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 301 note) is amended by 
striking ``program executive officer'' and inserting ``portfolio 
acquisition executive''.
    (h) Software Development and Software Acquisition Training and 
Management Programs.--Section 862 of the National Defense Authorization 
Act for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 1741 note) is 
amended--
            (1) in subsection (a)(2)(A), by striking ``program 
        executive officers'' and inserting ``portfolio acquisition 
        executives''; and
            (2) in subsection (c)(1)--
                    (A) in the paragraph heading, by striking ``program 
                executive officer'' and inserting ``portfolio 
                acquisition executive''; and
                    (B) by striking ``program executive officer'' and 
                inserting ``portfolio acquisition executive''.
    (i) Authority To Establish Different Minimum Requirements.--Section 
1764(b)(2) of title 10, United States Code, is amended by striking 
``Program executive officer'' and inserting ``Portfolio acquisition 
executive''.
    (j) Prizes for Advanced Technology Achievements.--Section 
4025(g)(2)(C) of title 10, United States Code, is amended by striking 
``program executive11 officer'' both places it appears and inserting 
``portfolio acquisition executive''.
    (k) Rating Chains for System Program Managers.--Section 323 of the 
National Defense Authorization Act for Fiscal Year 2013 (Public Law 
112-239; 126 Stat. 1696) is amended by striking ``program executive 
officer'' and inserting ``portfolio acquisition executive''.
    (l) Space System Acquisition and the Adaptive Acquisition 
Framework.--Section 807 of the William M. (Mac) Thornberry National 
Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283; 10 
U.S.C. 9081 note) is amended--
            (1) in subsection (b)(1)--
                    (A) in the paragraph heading, by striking ``Program 
                executive officer'' and inserting ``Portfolio 
                acquisition executive''; and
                    (B) by striking ``program executive officer'' and 
                inserting ``portfolio acquisition executive''; and
            (2) in subsection (e)(6)--
                    (A) in the paragraph heading, by striking ``Program 
                executive officer'' and inserting ``Portfolio 
                acquisition executive''; and
                    (B) by striking ``program executive officer'' and 
                inserting ``portfolio acquisition executive''.

SEC. 202. AMENDMENTS TO THE JOINT REQUIREMENTS OVERSIGHT COUNCIL.

    (a) Modified Responsibilities.--Section 181 of title 10, United 
States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``, approving, 
                and prioritizing'';
                    (B) in paragraph (2), by striking ``validate joint 
                requirements'' and inserting ``review joint 
                requirements'';
                    (C) in paragraph (3), by striking ``and 
                validating'';
                    (D) in paragraph (4), by striking ``and 
                approving'';
                    (E) in paragraph (5), by striking the semicolon at 
                the end and inserting ``; and'';
                    (F) in paragraph (6), by striking ``; and'' and 
                inserting a period; and
                    (G) by striking paragraph (7);
            (2) in subsection (c)(3), by striking ``provide the 
        chairman any dissenting view of members of the council under 
        paragraph (1) with respect to such recommendation'' and 
        inserting ``first seek concurrence from the Joint Requirements 
        and Programming Board of the Department of Defense''.
            (2) in subsection (e), by striking ``, except for 
        performance requirements specified in subsections (b)(4) and 
        (b)(5),''.
    (b) Technical and Conforming Amendments.--(1) Section 
225(b)(2)(C)(ii) of title 10, United States Code, is amended by 
striking ``approved'' and inserting ``reviewed''.
    (2) Section 3136(e)(1)(A) of title 10, United States Code, is 
amended--
            (A) by striking ``in excess of--'' and all that follows 
        through ``(i) a specific limitation'' and inserting ``in excess 
        of a specific limitation''; and
            (B) by striking clause (ii).

SEC. 203. MATTERS RELATING TO THE DIRECTOR OF COST ASSESSMENT AND 
              PROGRAM EVALUATION.

    (a) Role.--Section 139a of title 10, United States Code, is 
amended--
            (1) in subsection (b)(2), by striking ``without obtaining 
        the approval or concurrence of any other official within the 
        Department of Defense'' and inserting ``only with concurrence 
        from the Joint Requirements and Programming Board of the 
        Department of Defense''; and
            (2) in subsection (d)(4), by striking `` and performance of 
        such analyses, as directed by the Secretary of Defense''.
    (b) Functions.--Section 3221(b) of title 10, United States Code, is 
amended--
            (1) by striking paragraph (6); and
            (2) by redesignating paragraphs (7) and (8) as paragraphs 
        (6) and (7), respectively.
    (c) Annual Aircraft Procurement Plan.--Section 231a(c)(2) of title 
10, United States Code, is amended--
            (1) by striking subparagraph (E); and
            (2) by redesignating subparagraph (F) as subparagraph (E).

SEC. 204. ESTABLISHMENT OF JOINT REQUIREMENTS AND PROGRAMMING BOARD.

    (a) In General.--Chapter 7 of title 10, United States Code, is 
amended by inserting after section 185 the following new section:
``Sec. 186. Joint Requirements and Programming Board
    ``(a) Establishment.--There is established in the Department of 
Defense a Joint Requirements and Programming Board (in this section 
referred to as the `Board').
    ``(b) Leadership.--The Director of Cost Assessment and Program 
Evaluation and the Chairman of the Joint Requirements Oversight Council 
shall serve as co-chairpersons of the Board.
    ``(c) Responsibilities.--The Board shall--
            ``(1) be the forum through which shall be exercised all 
        duties and responsibilities of--
                    ``(A) the Joint Requirements Oversight Council with 
                respect to joint military capabilities requirements; 
                and
                    ``(B) the Director of Cost Assessment and Program 
                Evaluation with respect to program evaluation;
            ``(2) be the forum for the review for recommendation of--
                    ``(A) all requirements documents referred to the 
                Joint Requirements Oversight Council; and
                    ``(B) all program issue papers referred to the 
                Director of Cost Assessment and Program Evaluation; and
            ``(3) be the single point of interface--
                    ``(A) between the Chairman of the Joint 
                Requirements Oversight Council and the Chairman of the 
                Joint Chiefs of Staff with respect to recommendations 
                relating to joint military capabilities requirements 
                under section 181 of this title; and
                    ``(B) between the Director of Cost Assessment and 
                Program Evaluation and the Deputy Secretary of Defense 
                and the Secretary of Defense with respect to functions 
                described in section 139a of this title.
    ``(d) Recommendations.--
            ``(1) Majority vote required.--The Board shall make a 
        recommendation with respect to an issue only if the 
        recommendation is agreed to by a majority vote of the members 
        of the functional committees established under subsection 
        (e)(2).
            ``(2) Status of recommendations.--A recommendation agreed 
        to as described in paragraph (1) shall be treated as an 
        official policy recommendation of the Board unless the 
        executive committee established under subsection (e)(1) 
        unanimously votes to reject the recommendation.
            ``(3) Dissenting opinions.--The co-chairpersons of the 
        Board may write dissenting opinions to accompany a 
        recommendation of the Board agreed to as described in paragraph 
        (1) for consideration by the Deputy Secretary of Defense or the 
        Secretary of Defense.
    ``(e) Organization.--The Board shall be composed of--
            ``(1) an executive committee that supports the co-
        chairpersons in carrying out their responsibilities; and
            ``(2) functional committees established by the co-
        chairpersons to consider portfolios of joint military 
        capabilities, mission areas, or functions in terms of their 
        requirements, programs, and resourcing.
    ``(f) Membership.--
            ``(1) Executive committee.--The executive committee 
        established under subsection (e)(1) shall be composed of the 
        co-chairpersons of the Board and all other members of the Joint 
        Requirements Oversight Council.
            ``(2) Functional committees.--Each functional committee 
        established under subsection (e)(2) shall be composed of--
                    ``(A) one member designated by each portfolio 
                acquisition executive or similar portfolio manager who 
                is likely to execute a recommendation made by the 
                functional committee;
                    ``(B) one member designated by each commander of a 
                combatant command, if matters related to the area of 
                responsibility or functions of that command are likely 
                to be considered by the functional committee;
                    ``(C) one member designated by the Director of Cost 
                Assessment and Program Evaluation; and
                    ``(D) one member designated by the Chairman of the 
                Joint Requirements Oversight Council.
    ``(g) Procedures.--
            ``(1) Identification and prioritization of issues.--
                    ``(A) In general.--The co-chairpersons of the Board 
                are responsible for identifying and prioritizing issues 
                to be considered by each of the functional committees 
                established under subsection (e)(2).
                    ``(B) Nomination of issues.--Any member of the 
                executive committee or a functional committee 
                established under subsection (e) may nominate an issue 
                for consideration by the co-chairpersons under 
                subparagraph (A).
            ``(2) Quorum for functional committees.--
                    ``(A) In general.--For a meeting of a functional 
                committee established under subsection (e)(2) to have a 
                quorum--
                            ``(i) two-thirds of the members of the 
                        functional committee are required to be present 
                        or voting by proxy; and
                            ``(ii) both members identified in 
                        subparagraphs (C) and (D) of subsection (f)(2), 
                        and any member described in subsection 
                        (f)(2)(A) with responsibility for execution 
                        related to the issue under consideration, are 
                        required to be present or voting by proxy.
                    ``(B) Quorum and votes by proxy.--Any member 
                described in subsection (f)(2) may establish a quorum 
                or vote by proxy.
    ``(h) Support.--The Secretary of Defense shall ensure that the 
executive committee established under subsection (e)(1) has adequate 
staff directly responsible to the co-chairpersons of the Board to 
assist in identifying, reviewing, coordinating, and analyzing all 
matters brought before the Board.''.
    (b) Clerical Amendment.--The table of sections for such title is 
amended by inserting after the item relating to section 185 the 
following new item:

``186. Joint Requirements and Programming Board.''.
    (c) Technical and Conforming Amendments.--
            (1) Joint requirements oversight council.--Section 181(b) 
        of such title is amended, in the matter preceding paragraph 
        (1), by inserting ``, subject to section 186 of this title,'' 
        after ``shall assist''.
            (2) Director of cost assessment and program evaluation.--
        Section 139a of such title is amended--
                    (A) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) in the matter preceding 
                                subparagraph (A), by inserting ``, 
                                subject to section 186 of this title,'' 
                                after ``shall provide''; and
                                    (II) in subparagraph (A), by 
                                striking ``section 2334'' and inserting 
                                ``section 3221''; and
                            (ii) in paragraph (2), by striking ``The 
                        Director'' and inserting ``Subject to section 
                        186 of this title, the Director''; and
                    (B) in subsection (d)--
                            (i) in paragraph (1), by striking ``section 
                        2334'' and inserting ``section 3221''; and
                            (ii) by striking paragraph (9).

SEC. 205. CAPSTONE REQUIREMENTS.

    (a) In General.--Chapter 221 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 3209. Capstone requirements
    ``(a) In General.--The Secretary of each military department and 
the Director of one more defense agencies designated by the Secretary 
of Defense for purposes of this section shall establish a capstone 
requirement approach for each portfolio acquisition executive for which 
that official has responsibility to enable greater speed, agility, and 
innovation in fielding military capabilities. Each such capstone 
requirement shall be established in consultation with the Joint 
Requirements and Programming Board.
    ``(b) Elements.--Under the capstone requirements for an acquisition 
portfolio, the Secretary of the military department, or Director of the 
defense agency shall--
            ``(1) develop a general set of requirements for the 
        acquisition portfolio in accordance with subsection (c) under 
        which programs or projects may be initiated;
            ``(2) authorize the portfolio acquisition executive or 
        similar portfolio manager for the portfolio to change the scope 
        and requirements for programs within the portfolio, subject to 
        subsection (d);
            ``(3) assign representatives of operational forces to the 
        acquisition portfolio and authorize them to perform the 
        functions specified in subsection (e);
            ``(4) maximize the use of prototyping, experimentation, and 
        minimum viable products to shape capability scope and 
        requirements;
            ``(5) authorize the portfolio acquisition executive or 
        similar portfolio manager to resource and acquire commercial or 
        nondevelopmental items under the capstone requirement by 
        validating the need with the representatives assigned under 
        paragraph (3);
            ``(6) manage information technology requirements using 
        dynamically prioritized lists of user needs rather than large 
        static requirements documents; and
            ``(7) iteratively define, prioritize, and refine 
        requirements at the portfolio, program, and iteration levels 
        based on user input and previous deliveries.
    ``(c) Capstone Set of Requirements.--The capstone set of 
requirements for an acquisition portfolio developed under subsection 
(b)(1) shall be designed--
            ``(1) to guide the iterative delivery of an integrated 
        suite of capabilities to maximize operational impact;
            ``(2) to provide enduring themes based on strategic needs 
        and relevant concepts of operation, not system-specific;
            ``(3) to include measures of force effectiveness for a 
        force mix of capabilities to be measured against; and
            ``(4) to include kill chains, effects chains, vignettes of 
        operational scenarios, and related mission engineering 
        initiatives across the Department of Defense.
    ``(d) Authority to Revise Programs Within a Portfolio.--The 
authority under subsection (b)(2)--
            ``(1) shall be carried out in consultation with operational 
        commands and the Joint Requirements and Programming Board; and
            ``(2) does not include authority to change key performance 
        parameters for a major defense acquisition program.
    ``(e) Functions of Operational Representatives.--An operational 
representative assigned to an acquisition portfolio under subsection 
(b)(3) shall be provided authority--
            ``(1) to shape the vision and priorities for key capability 
        areas;
            ``(2) to provide the acquisition community and developers 
        insights into operations;
            ``(3) to provide feedback on interim developments;
            ``(4) to validate the need for commercial or 
        nondevelopmental items;
            ``(5) to foster collaboration among the acquisition 
        community, developers, and users of the capability to be 
        fielded; and
            ``(6) to provide advice to the portfolio acquisition 
        executive or similar portfolio manager.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 221 of title 10, United States Code, is amended by inserting 
after the item relating to section 3208 the following new item:

``3209. Capstone requirements.''.

        TITLE III--RAPID ACQUISITION AND COMMERCIAL CONTRACTING

SEC. 301. MILESTONE A.

    (a) Elimination of Requirement for Determination Prior to Milestone 
A Approval.--
            (1) In general.--Section 4251 of title 10, United States 
        Code, is hereby repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of subchapter III of chapter 322 of title 10, United 
        States Code, is amended by striking the item relating to 
        section 4251.
    (b) Director of Cost Assessment and Program Evaluation Functions.--
Section 3221(b)(6)(A)(i) of title 10, United States Code, is amended by 
striking ``4251 or''.
    (c) Independent Cost Estimate Required Before Approval.--Section 
3222(a) of title 10, United States Code, is amended--
            (1) by striking ``a milestone phase'' and inserting ``the 
        engineering and manufacturing development phase, or production 
        and deployment phase,''; and
            (2) by striking ``authority that--'' and all that follows 
        through ``(2) for the engineering and manufacturing development 
        phase, or production and deployment phase, includes a cost 
        estimate'' and inserting ``authority that includes a cost 
        estimate''.

SEC. 302. MODIFICATION TO ACQUISITION STRATEGY.

    Section 4211 of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``, each major automated 
        information system,'';
            (2) in subsection (b), by striking ``the Under Secretary of 
        Defense for Acquisition and Sustainment, or the milestone 
        decision authority, when the milestone decision authority is 
        the service acquisition executive of the military department 
        that is managing the program,'' and inserting ``the portfolio 
        acquisition executive, or the decision authority, when the 
        decision authority is the service acquisition executive of the 
        military department or the Under Secretary of Defense for 
        Acquisition and Sustainment,'';
            (3) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) by striking ``, each major automated 
                        information system,'';
                            (ii) by striking ``the Under Secretary, or 
                        the milestone decision authority, when the 
                        milestone decision authority is the service 
                        acquisition executive of the military 
                        department that is managing the program,'' and 
                        inserting ``the portfolio acquisition 
                        executive, or the decision authority, when the 
                        decision authority is the service acquisition 
                        executive of the military department or the 
                        Under Secretary of Defense for Acquisition and 
                        Sustainment,'';
                            (iii) by amending subparagraph (A) to read 
                        as follows:
            ``(A) the strategy clearly describes the proposed top-level 
        business and capability management approach for the program or 
        system, and to the maximum extent practicable, describes how a 
        portfolio of capabilities within an enduring set of 
        requirements will be developed, procured, and fielded rather 
        than detailing a specific end-item;''; and
                            (iv) in subparagraph (B), by striking 
                        ``with available resources'' and inserting 
                        ``within a general set of resources''; and
                    (B) by amending paragraph (2) to read as follows:
    ``(2) Each strategy shall, where appropriate, consider the 
following:
            ``(A) An approach that delivers required capabilities in 
        increments, each depending on available mature technology, and 
        that recognizes up front the need for future capability 
        improvements or transitions to alternative end-items through 
        use of continuous competition.
            ``(B) Requirements related to logistics, maintenance, and 
        sustainment in accordance with sections 2464 and 2466 of this 
        title, and the acquisition of technical data and computer 
        software data to enable such requirements in accordance with 
        sections 3771 through 3775 of this title.
            ``(C) A process for collaborative interaction and market 
        research with the science and technology community, including 
        Department of Defense science and technology reinvention 
        laboratories, government innovation cells, academia, small 
        businesses, nontraditional defense contractors, and other 
        contractors.
            ``(D) Identification of enterprise-wide designs and 
        standards in support of an architecture that provides for an 
        integrated suite of capabilities that focuses on simplicity of 
        implementation and speed of delivery.
            ``(E) Overarching roadmaps that created integrated 
        strategic schedules of legacy systems and new capabilities and 
        a mapping of enduring requirements to elements of the portfolio 
        of capabilities.
            ``(F) A contracting strategy that develops long-term 
        partnerships with multiple companies to actively contribute to 
        architectures, development, production, and sustainment across 
        the portfolio of capabilities by decomposing large systems into 
        smaller sets of projects across time and technical component.
            ``(G) An assignment of roles and responsibilities to the 
        acquisition workforce within the portfolio acquisition 
        executive, identification of external stakeholder dependencies, 
        and the need for subject matter expert inputs at critical 
        points in the program, including the need for special hiring 
        authority or advisory and assistance services.
            ``(H) A process of testing and experimentation with the 
        test community and end users to ensure continuous user 
        feedback, acceptance, and development of concepts of 
        operations.''; and
            (4) by striking subsections (d) and (e) and inserting the 
        following:
    ``(d) Review.--The decision authority shall review and approve, as 
appropriate, the acquisition strategy for a major defense acquisition 
program or major system prior to the acquisition decision memorandum 
and ensure that the strategy is updated at regular intervals to 
incorporate significant changes to program requirements, resourcing, or 
acquisition decisions.
    ``(e) Decision Authority Defined.--In this section, the term 
`decision authority', with respect to a major defense acquisition 
program or major system, means the official within the Department of 
Defense designated with the overall responsibility and authority for 
acquisition decisions for the program or system, including authority to 
approve entry of the program or system into the next phase of the 
acquisition process.''.

SEC. 303. EXEMPTIONS FOR NONTRADITIONAL DEFENSE CONTRACTORS.

    Nontraditional defense contractors, as defined by section 3014 of 
title 10, United States Code, shall not be subject to any of the 
following requirements:
            (1) Defense Federal Acquisition Regulation Supplement 
        252.242-7006.
            (2) Defense Federal Acquisition Regulation Supplement 
        252.234-7002.
            (3) Defense Federal Acquisition Regulation Supplement 
        252.242-7002.
            (4) Defense Federal Acquisition Regulation Supplement 
        252.242-7004.
            (5) Defense Federal Acquisition Regulation Supplement 
        252.242-7003.
            (6) Defense Federal Acquisition Regulation Supplement 
        252.242-7001.
            (7) Defense Federal Acquisition Regulation Supplement 
        252.242-7005.
            (8) Defense Federal Acquisition Regulation Supplement 
        215.407.
            (9) Section 3702 of title 10, United States Code.
            (10) Part 31 of the Federal Acquisition Regulation.

SEC. 304. MODIFICATIONS TO TREATMENT OF CERTAIN PRODUCTS AND SERVICES 
              AS COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES.

    Section 3457 of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1)'' before 
                ``Nothwithstanding'';
                    (A) by striking ``may be treated'' and inserting 
                ``shall be treated''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) The requirement under paragraph (1) may be waived with a 
written determination approved by the head of contracting activity, 
including an explanation of why commercial procedures should not be 
used or tailored and market research demonstrating that no other 
supplier could provide the required product or services under 
commercial procedures.'';
            (2) by striking subsection (b); and
            (3) by redesignating subsection (c) as subsection (b).

SEC. 305. MODIFICATION TO NONTRADITIONAL DEFENSE CONTRACTOR 
              DEFINITIONS.

    Section 3014 of title 10, United States Code, is amended--
            (1) by striking ``means an entity that is not currently 
        performing'' and inserting the following: ``means an entity 
        that--
            ``(1) is not currently performing''; and
            (2) by striking ``such section.'' and inserting the 
        following: ``such section;
            ``(2) certifies that, for the ultimate parent company's 
        three audited annual financial statements preceding the 
        solicitation of sources by the Department of Defense for the 
        procurement or transaction, has--
                    ``(A) achieved more than 30 percent year-over-year 
                revenue growth; or
                    ``(B) has reinvested back into the business more 
                than 10 percent of its revenue through non-reimbursable 
                research and development; or
            ``(3) certifies that it has raised funding through third-
        party sources in exchange for equity amounting to a minimum of 
        5 percent of the value of the company's total outstanding 
        shares within the last two years.''.

SEC. 306. ALTERNATIVE CAPABILITY BASED PRICING.

    (a) Program.--The head of an agency (as that term is defined in 
section 3004 of title 10, United States Code) may use alternative 
capability-based analysis to determine whether the proposed price or 
fee for a commercial product or commercial service offered by a 
nontraditional defense contractor (as that term is defined in section 
3014 of such title) is fair and reasonable.
    (b) Alternative Capacity-Based Analysis Defined.--In this section, 
the term ``alternative capability-based analysis'' means an analysis of 
the value to the Federal Government of a commercial product or 
commercial service that considers one or more of the following 
elements:
            (1) The fitness of the product or service for the 
        particular purpose such product or service is being procured.
            (2) The unique nature of technical expertise required to 
        produce or provide and the non-Federal resources expended to 
        develop such product or service.
            (3) The business model or financial projections of the 
        nontraditional defense contractor, commensurate with the scale 
        of the potential investment by the Secretary of Defense, which 
        may include cost information, self-funded risk, financial 
        projections, expenditure rates, estimates of total sales 
        market, and other financial, technical, or management data.
            (4) The estimated total cost avoidance or increased 
        capacity afforded by the offered product or service in relation 
        to current and future costs of programs and operations that 
        provide the same or similar capabilities.
            (5) Input from the military user on the potential value 
        added by the improved capabilities or production processes.
            (6) An analysis of competitive capabilities offered within 
        a fixed budget or price set by the government in a 
        solicitation.

SEC. 307. MODIFICATIONS TO CERTAIN PROCUREMENT THRESHOLDS.

    (a) Simplified Procedures for Small Purchases.--Section 3205(a) of 
title 10, United States Code, is amended--
            (1) in paragraph (1), by striking ``simplified acquisition 
        threshold'' and inserting ``threshold specified in section 
        3571(a) of this title''; and
            (2) in paragraph (2), by striking ``$5,000,000'' and 
        inserting ``$50,000,000''.
    (b) Simplified Acquisition Threshold.--Section 3571 of title 10, 
United States Code, is amended--
            (1) in subsection (a), by striking ``as specified in 
        section 134 of title 41'' and inserting ``$10,000,000''; and
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' before ``No law''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) For purposes of acquisitions by agencies named in section 
3063 of this title, the small business reservation established in 
section 15(j) of the Small Business Act (15 U.S.C. 644(j)) shall be 
$500,000.''.
    (c) Micro-Purchase Threshold.--Section 3573 of title 10, United 
States Code, is amended by striking ``$10,000'' and inserting 
``$100,000''.
    (d) Deductions From Amounts Due Carriers.--Section 2636(b)(1) of 
title 10, United States Code, is amended by striking ``simplified 
acquisition threshold'' and inserting ``threshold specified in section 
3571(a) of this title''.
    (e) Planning and Solicitation Requirements.--Section 3206(b) of 
title 10, United States Code, is amended in subsection (b) by striking 
``simplified acquisition threshold'' and inserting ``threshold 
specified in section 3205(a)(2) of this title''.
    (f) Contracts Awarded Using Procedures Other Than Sealed-bid 
Procedures.--Section 3321(b)(3) of title 10, United States Code, is 
amended by striking ``simplified acquisition threshold'' and inserting 
``threshold specified in section 3571(a) of this title''.
    (g) Cost Contracts.--Section 3322(c)(1)(B) of title 10, United 
States Code, is amended by striking ``simplified acquisition 
threshold'' and inserting ``threshold specified in section 3571(a) of 
this title''.
    (h) Preference for Commercial Products and Commercial Services.--
Section 3453(c)(1) of title 10, United States Code, is amended by 
striking ``simplified acquisition threshold'' each place it appears and 
inserting ``threshold specified in section 3571(a) of this title''.
    (i) Preference for Commercial Services.--Section 876 of the 
National Defense Authorization Act for Fiscal Year 2017 (Public Law 
114-328; 10 U.S.C. 3453 note) is amended--
            (1) by striking ``$10,000,000'' each place it appears and 
        inserting ``$50,000,000''; and
            (2) in paragraph (2), by striking ``simplified acquisition 
        threshold'' and inserting ``threshold specified in section 
        3571(a) of this title''.
    (j) Market Research and Preference for Commercial Items.--Section 
855(a)(1) of the National Defense Authorization Act for Fiscal Year 
2016 (Public Law 116-92; 10 U.S.C.3453 note) is amended by striking 
``simplified acquisition threshold'' and inserting ``threshold 
specified in section 3571(a) of this title''.
    (k) Examination of Records of Contractors.--Section 3841(g)(2) of 
title 10, United States Code, is amended by striking ``simplified 
acquisition threshold'' and inserting ``threshold specified in section 
3571(a) of this title''.
    (l) Contractors Inventory Accounting Systems: Standards.--Section 
3845(b) of title 10, United States Code, is amended by striking 
``simplified acquisition threshold'' and inserting ``threshold 
specified in section 3571(a) of this title''.
    (m) Requests for Equitable Adjustment or Other Relief.--Section 
3862 of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``simplified acquisition 
        threshold'' and inserting ``threshold specified in section 
        3571(a) of this title''; and
            (2) in subsection (d)--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2) and (3) as 
                paragraphs (1) and (2), respectively.
    (n) Expenditure of Appropriations: Limitation.--Section 4651(b) of 
title 10, United States Code, is amended by striking ``as defined in 
section 134 of title 41'' and inserting ``as defined in section 3571(a) 
of this title''.
    (o) Prohibition Against Doing Business With Certain Offerors or 
Contractors.--Section 4654(d) of title 10, United States Code, is 
amended by striking ``as defined in section 134 of title 41'' and 
inserting ``as defined in section 3571(a) of this title''.
    (p) Prohibition of Contractors Limiting Subcontractor Sales 
Directly to the United States.--Section 4655(c) of title 10, United 
States Code, is amended by striking ``as defined in section 134 of 
title 41'' and inserting ``as defined in section 3571(a) of this 
title''.
    (q) Prohibition on Persons Convicted of Defense-Contract Related 
Felonies and Related Criminal Penalty on Defense Contractors.--Section 
4656(a)(4)(A) of title 10, United States Code, is amended by striking 
``as defined in section 134 of title 41'' and inserting ``as defined in 
section 3571(a) of this title''.
    (r) Prohibition on Contracting With Entities That Comply With the 
Secondary Arab Boycott of Israel.--Section 4659(b) of title 10, United 
States Code, is amended by striking ``as defined in section 134 of 
title 41'' and inserting ``as defined in section 3571(a) of this 
title''.
    (s) Supplies: Identification of Supplier and Sources.--Section 
4753(b)(3) of title 10, United States Code, is amended striking ``as 
defined in section 134 of title 41'' and inserting ``as defined in 
section 3571(a) of this title''.
    (t) Miscellaneous Limitations on the Procurement of Goods Other 
Than United States Goods.--Section 4864 of title 10, United States 
Code, is amended in paragraph by striking ``simplified acquisition 
threshold'' each place it appears and inserting ``threshold specified 
in section 3571(a) of this title''.

SEC. 308. MODIFICATIONS TO COMMERCIAL SOLUTIONS OPENINGS.

    Section 3458 of title 10, United States Code, is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Authority.--The Secretary of Defense and the Secretaries of 
the military departments may acquire commercial products, commercial 
services, and nondevelopmental items through a competitive selection of 
proposals resulting from a general solicitation and the peer review, 
technical review, or operational review (as appropriate) of such 
proposals, and may issue, without further justification, follow-on 
contract awards or agreements, including sole source awards or 
agreements, to the recipient.'';
            (2) by redesignating subsection (c), (d), and (e) as 
        subsections (d), (e), and (h), respectively;
            (3) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Sole-Source Follow-On.--The Secretary of Defense and the 
Secretaries of the military departments may issue, without further 
justification, follow-on contract awards or agreements, including sole 
source awards or agreements, to a recipient competitively selected 
under subsection (a).'';
            (3) in paragraph (1) of subsection (d), as redesignated by 
        paragraph (2) of this section, by striking ``the Under 
        Secretary of Defense for Acquisition and Sustainment or the 
        relevant service acquisition executive'' and inserting ``the 
        head of the contracting activity (or the head of the 
        contracting activity's designated delegate)'';
            (4) in subsection (e), as so redesignated--
                    (A) by striking ``(1)''; and
                    (B) by striking paragraph (2); and
            (5) by inserting after such subsection, as so redesignated, 
        the following new subsections:
    ``(f) Limitation on Delegations of Authority.--The authority of the 
head of the contracting activity under subsection (d)(1) may be 
delegated only to an officer or employee who--
            ``(1) if a member of the Armed Forces, is a general, or 
        flag officer; or
            ``(2) if a civilian, is serving in a position with a grade 
        under the General Schedule (or any other schedule for civilian 
        officers or employees) that is comparable to or higher than the 
        grade of brigadier general or rear admiral (lower half).
    ``(g) Nontraditional Vehicle.--(1) The Secretary of Defense shall 
establish an open topic and enduring general solicitation described in 
subsection (a) for each systems command, science and technology 
reinvention laboratory, and portfolio acquisition executive.
    ``(2) Only nontraditional defense contractors (as defined in 
section 3014 of this title) may submit proposals and be eligible for an 
award or agreement under the general solicitations established pursuant 
to paragraph (1).
    ``(3) The preferred model for developing and producing operational 
military capabilities using general solicitations in paragraph (1) 
shall be the urgent capability acquisition, middle tier of acquisition, 
software acquisition, or services acquisition pathways of the 
Department of Defense Adaptive Acquisition Framework described in 
Department of Defense Instructions 5000.85 and 5000.2.''.

SEC. 309. MODIFICATIONS TO OTHER TRANSACTIONS.

    (a) In General.--Section 4022 of title 10, United States Code, is 
amended--
            (1) in subsection (a)--
                    (A) by amending paragraph (2) to read as follows:
    ``(2) The authority of this section may be exercised for a 
transaction for a prototype project, or for a transaction for a follow-
on production contract or transaction that is awarded pursuant to 
subsection (f) or (g), that is expected to cost the Department of 
Defense in excess of $100,000,000 (including all options) only upon a 
written determination that the requirements of subsection (d) will be 
met by a head of the contracting activity, or, for the Defense Advanced 
Research Projects Agency, the Defense Innovation Unit, or the Missile 
Defense Agency, the director of the agency.''; and
                    (B) by amending paragraph (3) to read as follows:
    ``(3) The authority of the head of the contracting activity, the 
director of the Defense Advanced Research Projects Agency, the director 
of the Defense Innovation Unit, the director of the Missile Defense 
Agency, or the senior procurement executive, as applicable, under 
paragraph (2), may not be delegated.'';
            (2) in subsection (e)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) The term `head of the contracting activity' means 
        those officials within the organization who have responsibility 
        for and manage an acquisition organization and usually hold 
        unlimited procurement authority.''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(6) The term `follow-on production' means a contract or 
        transaction that is intended to further develop, test, produce, 
        deploy, operate, or sustain a capability that was successfully 
        prototyped under the authority established in subsection 
        (a).'';
            (3) by redesignating subsections (h) and (i) as subsections 
        (i) and (j), respectively; and
            (4) by inserting after subsection (g) the following new 
        subsection:
    ``(h) Authority To Award a Production Transaction To Rapidly Field 
an Existing Capability.--A production transaction may be awarded, with 
or without the use of competitive procedures, to acquire emergent and 
proven technologies and field production quantities of new or upgraded 
systems that do not require additional development and have been 
demonstrated in a relevant environment when the appropriate service or 
component acquisition executive determines in writing that exceptional 
circumstances justify the use of such a transaction to address a high 
priority warfighter need.''.

SEC. 310. MODIFICATIONS TO COMMERCIAL PRODUCT AND COMMERCIAL SERVICE 
              DETERMINATIONS BY DEPARTMENT OF DEFENSE.

    Section 3456 of title 10, United States Code, is amended by 
striking subsections (a) through (c) and inserting the following new 
subsections:
    ``(a) In General.--The Secretary of Defense shall create a default 
determination that products and services acquired by the Department of 
Defense are commercial and shall be acquired using commercial 
procedures, and, to the maximum extent practicable, general 
solicitation procedures under section 3458 of this title, unless 
determined to be non-commercial by the Department of Defense 
contracting officer.
    ``(b) Determinations Regarding the Non-Commercial Nature of 
Products or Services.--A defense-unique development product or service 
may not be procured if there is a commercial product or service, with 
or without customization, that meets the minimum requirements of the 
Department of Defense. In making a determination whether a particular 
product or service offered by a contractor is non-commercial and does 
not meet any definition for commercial products or commercial services, 
a contracting officer of the Department of Defense shall submit a 
written memorandum summarizing the determination for approval by the 
head of contracting activity, prior to awarding the contract, and 
provide it to the contractor or subcontractor offering the product or 
service for which such determination is summarized in such memorandum. 
The memorandum shall include--
            ``(1) a detailed justification why the product or 
        commercial service was determined to be noncommercial including 
        the results of market research; and
            ``(2) a signed determination by the program manager that 
        the requirement could not be reasonably changed to accommodate 
        a commercial product or commercial service.
    ``(c) Definition.--The term `defense-unique development' means a 
Department of Defense-financed development, either to repurpose a 
commercial product or solution or to develop a new product or solution, 
to provide a defense-unique capability.''.

SEC. 311. COMMERCIALLY ACCEPTABLE TRANSACTION AND PAYMENT METHODS.

    (a) In General.--In the case contracts using commercial procedures 
or other transactions, procurement officials of the Department of 
Defense shall use the most efficient, expeditious, and commercially 
acceptable transaction and payment methods practicable.
    (b) Government Purchase Card.--In the case of an acquisition of 
commercial products, commercial services, nondevelopmental items, or 
other transactions agreements up to $25,000,000, a procurement 
official--
            (1) may use the Government purchase card as a transaction 
        and payment method subject to the limitations of the 
        contracting officer's warrant and Department of Defense 
        purchase card procedures and limitations;
            (2) may not use flexibly priced contracts that require the 
        application of the Government's cost accounting standards or 
        cost principles; and
            (3) may not provide for advance payments or contract 
        financing greater than 15 percent.
    (c) Micro-Purchase Procedures.--Nothing in this section shall 
affect the ability of the Department of Defense to use micro-purchase 
procedures for acquisitions below the micro-purchase threshold.

SEC. 312. TRANSPARENCY AND ACCOUNTABILITY OF CONTRACT AWARDS.

    Notice of all contract awards or other agreements shall be publicly 
posted within a reasonable period of time after the award or agreement 
is made, taking into consideration operational security. The notice of 
award or agreement shall include the purchase order or other record of 
the transaction that includes quantities and prices of the individual 
products or services being acquired.

SEC. 313. LIMITATION ON REQUIRED FLOWDOWN OF CONTRACT CLAUSES TO 
              SUBCONTRACTORS PROVIDING COMMERCIAL PRODUCTS OR 
              COMMERCIAL SERVICES.

    (a) Contract Clauses Required in the Federal Acquisition 
Regulation.--
            (1) In general.--Chapter 247 of title 10, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 3459. Limitation on required flowdown of contract clauses to 
              subcontractors providing commercial products or 
              commercial services
    ``(a) In General.--The Secretary of Defense may not require that a 
clause be included in a subcontract for commercial products and 
services other than a clause required by a provision of law that is on 
the list required by section 3452 of this title.
    ``(b) Single Clause Requirement.--The Secretary of Defense shall 
provide for implementation of all provisions of law applicable to 
subcontracts for commercial products and services through--
            ``(1) a single clause applicable to contracts for 
        commercial products and services; and
            ``(2) a single clause applicable to contracts for 
        noncommercial products and services.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 247 of title 10, United States Code, is 
        amended by inserting after the item relating to section 3458 
        the following new item:

``3459. Limitation on required flowdown of contract clauses to 
                            subcontractors providing commercial 
                            products or commercial services.''.
    (b) Effective Dates.--
            (1) In general.--The requirements under section 3459 of 
        title 10, United States Code, as added by subsection (a), shall 
        apply with respect to solicitations issued by the Department of 
        Defense after the end of the 120-day period beginning on the 
        date of the enactment of this Act.
            (2) Regulations.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Defense shall amend 
        the Defense Federal Acquisition Regulation Supplement to 
        implement section 3459 of title 10, United States Code, as 
        added by subsection (a).

SEC. 314. MODIFICATIONS TO RELATIONSHIP OF OTHER PROVISIONS OF LAW TO 
              PROCUREMENT OF COMMERCIAL PRODUCTS AND COMMERCIAL 
              SERVICES.

    Section 3452 of title 10, United States Code, is amended by 
striking subsections (b) through (f) and inserting the following new 
subsections:
    ``(b) Applicability of Defense-Unique Statutes to Contracts for 
Commercial Products and Commercial Services.--(1) The Defense Federal 
Acquisition Regulation Supplement shall include a list of defense-
unique provisions of law and of contract clause requirements based on 
government-wide acquisition regulations, policies, or executive orders 
expressly required in law that are applicable to contracts for the 
procurement of commercial products and commercial services by the 
Department of Defense.
    ``(2) A provision of law or contract clause requirement described 
in subsection (e) that is enacted after October 13, 1994, shall not be 
included on the list of applicable provisions of law and contract 
clause requirements required by paragraph (1) unless the Under 
Secretary of Defense for Acquisition and Sustainment makes a written 
determination that it would be in the best interest of the Department 
of Defense to apply the provision or contract clause requirement to the 
contract for the procurement of commercial products and commercial 
services.
    ``(c) Applicability of Defense-Unique Statutes to Subcontracts for 
Commercial Products and Commercial Services.--(1) The Defense Federal 
Acquisition Regulation Supplement shall include a list of defense-
unique provisions of law and of contract clause requirements based on 
government-wide acquisition regulations, policies, or executive orders 
expressly required in law that are applicable to subcontracts for the 
procurement of commercial products and commercial services. A provision 
of law or contract clause requirement properly included on the list 
pursuant to paragraph (2) must apply to purchases of commercial 
products and commercial services by the Department of Defense.
    ``(2) A provision of law or contract clause requirement described 
in subsection (e) that is enacted after October 13, 1994, shall not be 
included on the list of applicable provisions of law and contract 
clause requirements required by paragraph (1) unless the Under 
Secretary of Defense for Acquisition and Sustainment makes a written 
determination that it would be in the best interest of the Department 
of Defense to apply the provision or contract clause requirement to the 
subcontract for the procurement of commercial products and commercial 
services.
    ``(3) In this subsection, the term `subcontract'--
            ``(A) includes a transfer of commercial products and 
        commercial services between divisions, subsidiaries, or 
        affiliates of a contractor or subcontractor; and
            ``(B) does not include agreements entered into by a 
        contractor for the supply of commodities that are intended for 
        use in the performance of multiple contracts with the 
        Department of Defense and other parties and are not 
        identifiable to any particular contract.
    ``(4) This subsection does not authorize the waiver of the 
applicability of any provision of law or contract clause requirement 
with respect to any first-tier subcontract under a contract with a 
prime contractor reselling or distributing commercial products and 
commercial services of another contractor without adding value.
    ``(d) Applicability of Defense-Unique Statutes to Contracts for 
Commercially Available, Off-the-Shelf Items.--(1) The Defense Federal 
Acquisition Regulation Supplement shall include a list of defense-
unique provisions of law and of contract clause requirements based on 
government-wide acquisition regulations, policies, or executive orders 
expressly required in law that are applicable to subcontracts for the 
procurement of commercially available off-the-shelf items by the 
Department of Defense.
    ``(2) A provision of law or contract clause requirement described 
in subsection (e) that is enacted after October 13, 1994, shall not be 
included on the list of applicable provisions of law and contract 
clause requirements required by paragraph (1) unless the Under 
Secretary of Defense for Acquisition and Sustainment makes a written 
determination that it would be in the best interest of the Department 
of Defense to apply the provision or contract clause requirement to the 
procurement of commercially available off-the-shelf items.
    ``(e) Covered Provision of Law or Contract Clause Requirement.--A 
provision of law or contract clause requirement referred to in 
subsections (b)(2), (c)(2), and (d)(2) is a provision of law or 
contract clause requirement that the Under Secretary of Defense for 
Acquisition and Sustainment determines sets forth policies, procedures, 
requirements, or restrictions for the procurement of property or 
services by the Federal Government, except for a provision of law or 
contract clause requirement that--
            ``(1) provides for criminal or civil penalties;
            ``(2) requires that certain articles be bought from United 
        States sources pursuant to section 4862 of this title, or 
        requires that strategic materials critical to national security 
        be bought from United States sources pursuant to section 4863 
        of this title; or
            ``(3) specifically refers to this section and provides 
        that, notwithstanding this section, it shall be applicable to 
        contracts for the procurement of commercial products and 
        commercial services.''.

SEC. 315. NONTRADITIONAL DEFENSE CONTRACTOR COMMERCIAL SOLUTIONS 
              OPENING.

    Section 3458 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(j) Nontraditional Vehicle.--(1) The Secretary of Defense shall 
establish consortia to conduct prototype projects and follow-on 
production under the authority of section 4022 of this title for each 
systems command and each portfolio acquisition executive.
    ``(2) Of the consortia established pursuant to paragraph (1), the 
membership of the consortia shall be limited to nontraditional defense 
contractors (as defined in section 3014 of this title).
    ``(3) The preferred model for developing and producing operational 
military capabilities using the consortia in paragraph (1) shall be the 
urgent capability acquisition, middle tier of acquisition, software 
acquisition, or services acquisition pathways of the Department of 
Defense Adaptive Acquisition Framework described in Department of 
Defense Instruction 5000.2.''.

SEC. 316. PROGRAM MANAGEMENT OFFICE COMPETITION.

    (a) Authorization.--Not later than April 1, 2025, the service and 
component acquisition executives shall establish guidance requiring 
separate program managers and contracting officers within the 
Department of Defense to compete alternative prototypes for a program 
with an independent down-select to determine the winner.
    (b) Selection of Programs.--Each service and component acquisition 
executive shall designate not less than three programs annually for use 
of the procedures established under subsection (a).
    (c) Selection of Personnel.--For each program selected under 
subsection (b), the service or component acquisition executive shall 
select not less than two separate program managers and contracting 
officers who shall--
            (1) assume management of distinct prime contractors that do 
        not share ownership from the same ultimate parent company;
            (2) sign a tenure agreement through the end of the 
        competitive down-select under subsection (e); and
            (3) be selected from existing personnel of the Department 
        of Defense.
    (d) Prototype Phase.--Each program manager and contracting officer 
selected under subsection (c) for a specific program shall be provided 
equal funding and scheduling constraints to deliver a prototype 
demonstration for the program requirement.
    (e) Competitive Down-Select.--The service or component acquisition 
executives, in coordination with operational test and evaluation 
activities and the commanders of the combatant commands, shall--
            (1) evaluate the prototypes delivered under subsection (d) 
        with direct input from military users;
            (2) regard any program manager-approved deviation from the 
        program requirement under subsection (f)(2) to be valid; and
            (3) select a winner eligible for a sole source follow-on 
        contract or other agreement under subsection (f)(1).
    (f) Exemptions and Special Procedures.--
            (1) Competitive procedures exemption.--Contracts awarded 
        under the procedures established in subsection (a) shall be 
        considered use of competitive procedures established for the 
        purposes of chapter 221 of this title.
            (2) Joint capabilities integration and development system 
        exemption.--The requirement for the program under subsection 
        (b) shall be exempt from the Joint Capabilities Integration and 
        Development System and a program manager may deviate from the 
        requirement without additional approval.
            (3) Test and evaluation master plan.--The program under 
        subsection (b) shall utilize a streamlined Test and Evaluation 
        Master Plan that must be submitted prior to the competitive 
        down-select phrase described in subsection (e).
            (4) Acquisition strategy.--Each program manager and 
        contracting officer shall submit a streamlined acquisition 
        strategy of no more than 20 pages prior to the start of the 
        prototype phase under subsection (d).
    (g) Delegation.--The service or component acquisition executive may 
delegate the down-selection described in subsection (e) to personnel 
other than personnel selected under subsection (c) or personnel that 
may have a conflict of interest.

SEC. 317. MIDDLE TIER OF ACQUISITION FOR RAPID PROTOTYPING AND RAPID 
              FIELDING.

    (a) In General.--Chapter 253 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 3602. Middle tier of acquisition for rapid prototyping and rapid 
              fielding
    ``(a) Guidance Required.--The Under Secretary of Defense for 
Acquisition and Sustainment shall establish pathways as described under 
subsection (b) to establish a process for conducting middle tier 
acquisitions for programs or projects that are intended to be completed 
in a period of two to five years.
    ``(b) Acquisition Pathways.--The Under Secretary of Defense for 
Acquisition and Sustainment shall establish the following two 
acquisition pathways:
            ``(1) Rapid prototyping.--The rapid prototyping pathway 
        shall provide for the use of innovative technologies to rapidly 
        develop fieldable prototypes to demonstrate new capabilities 
        and meet emerging military needs. The objective of an 
        acquisition program or project under this pathway shall be to 
        field a prototype that can be demonstrated in an operational 
        environment and provide for a residual operational capability 
        within five years of initiation.
            ``(2) Rapid fielding.--The rapid fielding pathway shall 
        provide for the use of proven technologies to field production 
        quantities of new or upgraded systems with minimal development 
        required. The objective of an acquisition program or project 
        under this pathway shall be to begin production within six 
        months and complete fielding within five years of initiation.
    ``(c) Expedited Process.--
            ``(1) In general.--Before using the authority under this 
        section, the Under Secretary shall develop a streamlined and 
        coordinated requirements, budget, and acquisition process that 
        results in the development of an approved requirement for each 
        acquisition program or project in a period of not more than six 
        months from the time that process is initiated. Programs of 
        projects carried out under the authority of this section shall 
        not be subject to the Joint Capabilities Integration and 
        Development System Manual and Department of Defense Directive 
        5000.01.
            ``(2) Rapid prototyping.--With respect to the rapid 
        prototyping pathway, the process described in paragraph (1) 
        shall include--
                    ``(A) a merit-based process for considering 
                innovative technologies and new capabilities to meet 
                needs communicated the Joint Chiefs of Staff or the 
                combatant commanders;
                    ``(B) a process for developing and implementing 
                acquisition and funding strategies for a program or 
                project to be carried out under such pathway;
                    ``(C) a process for demonstrating and evaluating 
                the performance of fieldable prototypes developed 
                pursuant to such program or project in an operational 
                environment;
                    ``(D) a process for transitioning successful 
                prototypes into new or existing acquisition programs 
                for production and fielding under the rapid fielding or 
                major capability acquisition pathway (as defined under 
                Department of Defense Instruction 5000.85 or successor 
                instruction); and
                    ``(E) a process for iterating prototyping and 
                fielding within the rapid prototyping pathway that may 
                use a process described in paragraph (4)(E).
            ``(3) Rapid fielding.--With respect to the rapid fielding 
        pathway, the process described in paragraph (1) shall include--
                    ``(A) a merit-based process for considering 
                innovative technologies and new capabilities to meet 
                needs communicated the Joint Chiefs of Staff or the 
                combatant commanders;
                    ``(B) a process for developing and implementing 
                acquisition and funding strategies for a program or 
                project to be carried out under such pathway;
                    ``(C) a process for demonstrating performance and 
                evaluating for current operational purposes and the 
                proposed products and technologies;
                    ``(D) a process for considering lifecycle costs and 
                addressing issues of logistics support and system 
                interoperability; and
                    ``(E) a process for identifying and exploiting 
                opportunities to use the rapid fielding pathway to 
                reduce total ownership costs.
            ``(4) Streamlined procedures.--The process described in 
        paragraph (1) shall provide for all of the following 
        streamlined procedures:
                    ``(A) A program manager shall be provided staff 
                positions for a technical staff, including experts in 
                business management, cost estimation, contracting, 
                auditing, engineering, certification, testing, cyber, 
                and logistics, to enable the program manager to manage 
                the program or project without the technical assistance 
                of another element of the Department of Defense to the 
                maximum extent practicable.
                    ``(B) A program manager shall, in coordination with 
                the users of the good or service to be acquired under 
                such a program or project and the test community, have 
                the authority to make trade-offs among lifecycle costs, 
                requirements, and schedules to meet the goals of the 
                program or project.
                    ``(C) Each service acquisition executive, acting in 
                coordination with the defense acquisition executive, 
                may serve as the decision authority for a program or 
                project for which the authority under this section is 
                used or shall delegate such decision authority.
                    ``(D) A program manager may seek an expedited 
                waiver from any regulatory requirement, or in the case 
                of a statutory requirement, a waiver from Congress, 
                that the program manager determines adds cost, 
                schedule, or performance delays with little or no value 
                to the management of such program or project.
                    ``(E) If an operational capability is demonstrated 
                for a program or project for which the authority under 
                this section is used, the appropriate service 
                acquisition executive may permit continuous iterative 
                prototyping and fielding under the same program or 
                project for an unlimited number of subsequent periods, 
                where each period is intended to be five years.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 253 of title 10, United States Code, is amended by inserting 
after the item relating to section 3601 the following new item:

``3602. Middle tier of acquisition for rapid prototyping and rapid 
                            fielding.''.
    (c) Repeal of Superseded Authority.--Section 804 of the National 
Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10 
U.S.C. 3201 note prec.) is repealed.
    (d) Conforming Amendments.--
            (1) Section 3601 of title 10, United States Code, is 
        amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1)(B), by striking 
                        ``section 804 rapid acquisition pathway'' and 
                        inserting ``rapid acquisition pathway''; and
                            (ii) by amending paragraph (2) to read as 
                        follows:
            ``(2) Rapid acquisition pathway defined.--In this section, 
        the term `rapid acquisition pathway' means the rapid 
        prototyping or the rapid fielding acquisition pathway 
        authorized under section 3602 of this title.'';
                    (B) in subsection (b)(4), by striking ``the 
                guidance developed under section 804(a) of the National 
                Defense Authorization Act for Fiscal Year 2016 (Public 
                Law 114-92; 10 U.S.C. 3201 note prec.)'' and inserting 
                ``section 3602 of this title''; and
                    (C) in subsection (c), by striking ``section 804 
                rapid acquisition pathway'' each place it appears and 
                inserting ``rapid acquisition pathway''.
            (2) Section 4201(b)(1) of title 10, United States Code, is 
        amended by striking ``section 804 of the National Defense 
        Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10 
        U.S.C. 3201 note prec.)'' and inserting ``section 3602 of this 
        title''.
            (3) Section 4324(d)(5)(B) of title 10, United States Code, 
        is amended by striking ``section 804 of the National Defense 
        Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10 
        U.S.C. 2302 note)'' and inserting ``section 3602 of this 
        title''.
            (4) Section 4423(e) of title 10, United States Code, is 
        amended by striking ``section 804 of the National Defense 
        Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10 
        U.S.C. 2302 note)'' and inserting ``section 3602 of this 
        title''.
            (5) Section 810(a) of the National Defense Authorization 
        Act for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 4067 
        note) is amended by striking ``section 804 of the National 
        Defense Authorization Act for Fiscal Year 2016 (Public Law 114-
        92; 10 U.S.C. 3201 note prec.)'' and inserting ``section 3602 
        of title 10, United States Code''.
            (6) Section 1608(e) of the National Defense Authorization 
        Act for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 2271 
        note) is amended by striking ``section 804 of the National 
        Defense Authorization Act for Fiscal Year 2016 (Public Law 114-
        92; 10 U.S.C. 3201 note prec.)'' and inserting ``section 3602 
        of title 10, United States Code''.
            (7) Section 807(e)(4) of the William M. (Mac) Thornberry 
        National Defense Authorization Act for Fiscal Year 2021 (Public 
        Law 116-283; 10 U.S.C. 9081 note) is amended by striking 
        ``section 804 of the National Defense Authorization Act for 
        Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 2302 note)'' and 
        inserting ``section 3602 of title 10, United States Code''.
            (8) Section 884(c)(2)(E) of the National Defense 
        Authorization Act for Fiscal Year 2017 (Public Law 114-328; 10 
        U.S.C. 4291 note prec.) is amended by striking ``section 804 of 
        the National Defense Authorization Act for Fiscal Year 2016 
        (Public Law 114-92; 10 U.S.C. 2302 note)'' and inserting 
        ``section 3602 of title 10, United States Code''.

SEC. 318. REVISION AND CODIFICATION OF SOFTWARE ACQUISITION PATHWAYS.

    (a) In General.--Chapter 253 of title 10, United States Code, as 
amended by section 318, is further amended by adding at the end the 
following new section:
``Sec. 3603. Software acquisition pathways
    ``(a) Software Acquisition and Development Pathways.--The Secretary 
of Defense shall establish pathways as described under subsection (b) 
to provide for the efficient and effective acquisition, development, 
integration, and timely delivery of software and covered hardware.
    ``(b) Pathways.--The Secretary of Defense may establish as many 
pathways under this section as the Secretary determines appropriate and 
shall establish the following pathways:
            ``(1) Applications.--The applications pathway shall provide 
        for the use of rapid development and implementation of 
        applications and other software or software improvements 
        operated by the Department of Defense, which may include 
        applications and associated procurement of covered hardware 
        (including modifications of a type not customarily available in 
        the commercial marketplace to meet Department requirements), 
        commercially available cloud computing platforms, and other 
        nondevelopmental items.
            ``(2) Embedded systems.--The embedded systems pathway shall 
        provide for the rapid development and insertion of upgrades and 
        improvements for software and covered hardware embedded in 
        weapon systems and other hardware systems unique to the 
        Department of Defense.
    ``(c) Requirements for Pathways.--A pathway established under this 
section shall provide for the use of proven technologies and solutions 
to continuously engineer and deliver capabilities for software and 
covered hardware.
    ``(d) Considerations for Use of Authority.--In using the authority 
under this section, the Secretary shall consider how such use will--
            ``(1) initiate the engineering of new software capabilities 
        quickly, and, if applicable, the integration of such 
        capabilities into covered hardware;
            ``(2) demonstrate the viability and effectiveness of such 
        capabilities for operational use not later than one year after 
        the date on which funds are first obligated to acquire or 
        develop software; and
            ``(3) allow for the continuous updating and delivery of new 
        capabilities not less frequently than annually to iteratively 
        meet a user need.
    ``(e) Treatment Not as Major Defense Acquisition Program.--Software 
and covered hardware acquired or developed using the authority under 
this section shall not be treated as a major defense acquisition 
program for purposes of section 4201 of this title.
    ``(f) Risk-Based Approach.--The Secretary of Defense shall use a 
risk-based approach for the consideration of innovative technologies 
and new capabilities for software and covered hardware to be acquired 
or developed under this authority to meet needs communicated by the 
Joint Chiefs of Staff or the combatant commanders.
    ``(g) Expedited Process.--
            ``(1) In general.--A pathway established under this section 
        shall provide for--
                    ``(A) a streamlined and coordinated requirements, 
                budget, and acquisition process to support rapid 
                fielding of software applications and of software 
                upgrades to embedded systems for operational use in a 
                period of not more than one year from the time that the 
                process is initiated; and
                    ``(B) continuous engagement with the users of 
                software and covered hardware to support--
                            ``(i) engineering activities of the 
                        Department of Defense; and
                            ``(ii) delivery of software and covered 
                        hardware for operational use in periods of not 
                        more than one year.
            ``(2) Expedited software requirements process.--
                    ``(A) Inapplicability of joint capabilities 
                integration and development system manual.--Software 
                and covered hardware acquisition or development 
                conducted under the authority of this section shall not 
                be subject to the Joint Capabilities Integration and 
                Development System Manual.
                    ``(B) Inapplicability of defense acquisition system 
                directive.--Software and covered hardware acquisition 
                or development conducted under the authority of this 
                section shall not be subject to Department of Defense 
                Directive 5000.01.
    ``(h) Elements.--In implementing a pathway established under the 
authority of this section, the Secretary shall tailor streamlined 
policies and processes relating to--
            ``(1) approval initial user needs statements and user 
        agreements;
            ``(2) establishing and maintaining a prioritized list of 
        work for development;
            ``(3) engaging with product users on a regular basis;
            ``(4) approving acquisition strategies;
            ``(5) awarding contracts;
            ``(6) iteratively developing, integrating, testing, and 
        fielding capability; and
            ``(7) ensuring the delivery of cyber secure systems.
    ``(i) Definitions.--In this section:
            ``(1) Covered hardware.--The term `covered hardware' means 
        hardware--
                    ``(A) that is a commercial product (as defined in 
                section 103 of title 41) or a nondevelopmental item; 
                and
                    ``(B) in which software acquired under this section 
                is embedded.
            ``(2) Nondevelopmental item.--The term `nondevelopmental 
        item' has the meaning given the term in section 110 of title 
        41.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 253 of title 10, United States Code, as amended by section 318, 
is further amended by inserting after the item relating to section 3602 
the following new item:

``3603. Software acquisition pathways.''.
    (c) Repeal of Superseded Authority.--
            (1) Repeal.--Section 800 of the National Defense 
        Authorization Act for Fiscal Year 2020 (Public Law 116-92; 10 
        U.S.C. 4571 note) is repealed.
            (2) Conforming amendment.--Section 807(e)(1) of the William 
        M. (Mac) Thornberry National Defense Authorization Act for 
        Fiscal Year 2021 (Public Law 116-283; 10 U.S.C. 9081 note) is 
        amended by striking ``section 800 of the National Defense 
        Authorization Act for Fiscal Year 2020 (Public Law 116-92; 133 
        Stat. 1478; 10 U.S.C. 2223a note)'' and inserting ``section 
        3603 of title 10, United States Code''.

SEC. 319. MODIFICATIONS TO STEPS TO IDENTIFY AND ADDRESS POTENTIAL 
              UNFAIR COMPETITIVE ADVANTAGE OF TECHNICAL ADVISORS TO 
              ACQUISITION OFFICIALS.

    (a) Guidance Required.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall issue 
guidance on steps to identify and prevent the potentially unfair 
competitive advantage of entities providing technical advice to 
acquisition officials in the award of research and development work by 
such officials.
    (b) Definitions.--For the purposes of this section--
            (1) the term ``potentially unfair competitive advantage'' 
        means unequal access to acquisition officials responsible for 
        award decisions or allocation of resources or to acquisition 
        information relevant to award decisions or allocation of 
        resources; and
            (2) the term ``entity providing technical advice to 
        acquisition officials'' means a science and technology 
        reinvention laboratory or a federally funded research and 
        development center or another nonprofit entity that provides 
        systems engineering and technical direction, participates in 
        technical evaluations, helps prepare specifications or work 
        statements, or otherwise provides technical advice to 
        acquisition officials on the conduct of defense acquisition 
        programs.
    (c) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on the policies 
established under this section. The report shall--
            (1) describe how any employee or assigned personnel of an 
        entity defined in subsection (b)(2) will be--
                    (A) prevented from performing acquisition 
                functions, including the development, award, or 
                administration of contracts of the program offices;
                    (B) prevented from formulating, overseeing, or 
                evaluating performance on developmental or operational 
                testing, or experimentation; and
                    (C) allowed to request a waiver to provide 
                technical advice to acquisition officials if--
                            (i) the individual has never supported a 
                        product, service, or development of a modular 
                        open system architecture that may compete or be 
                        required by the acquisition effort of the 
                        acquisition official;
                            (ii) a process is established to report any 
                        potentially unfair competitive advantage 
                        violations by such an employee or assigned 
                        personnel to the program manager or contracting 
                        officer as soon as it is identified;
                            (iii) a process is established to maintain 
                        effective oversight to verify compliance with 
                        this section; and
                            (iv) appropriate disciplinary actions are 
                        established in the case of employees or 
                        assigned personnel who fail to comply with 
                        policies established pursuant to this section; 
                        and
            (2) provide information on pass-through charges that the 
        science and technology reinvention laboratories charge 
        acquisition officials when receiving funded work from 
        Department of Defense program offices, including the values 
        charged by each science and technology reinvention laboratory 
        and the ultimate uses of the funds.
    (d) Repeal of Obsolete Authority.--The National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 Stat. 
942) is amended by striking section 881.

SEC. 320. MODIFICATIONS TO PROCUREMENT FOR EXPERIMENTAL PURPOSES.

    Section 4023 of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``ordnance, signal, 
        chemical activity, transportation, energy, medical, space 
        flight, telecommunications, and aeronautical supplies, 
        including parts and accessories, and designs thereof,'' and 
        inserting ``demonstrations, prototypes, products, supplies, 
        parts, accessories, auxiliary services, and design for defense-
        related articles'';
            (2) in subsection (b)--
                    (A) by inserting ``or modified'' after ``may be 
                made''; and
                    (B) by inserting ``prototyping,'' after ``greater 
                than necessary for''; and
            (3) by adding at the end the following new subsection:
    ``(c) Follow-On Production Contracts or Transactions.--Purchases 
under this section may allow for follow-on production contracts or 
transactions without the use of competitive procedures or further 
justification, even if explicit notification was not provided, if a 
combatant command submits a written determination that the purchased 
item successfully completed the experiment and intends to field the 
item.''.

SEC. 321. CONSUMPTION-BASED SOLUTIONS.

    (a) Authority.--Chapter 247 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 3459. Authority to acquire consumption-based solutions
    ``(a) Authority.--The Secretary of Defense and the Secretaries of 
the military departments may acquire technology-supported capabilities 
through consumption-based solutions.
    ``(b) Guidance Required.--The Secretary of Defense shall amend the 
Defense Federal Acquisition Regulation Supplement to implement the 
authority under subsection (a), including--
            ``(1) creating a new subcategory of services under part 37 
        of the Federal Acquisition Regulation, entitled `Consumption-
        based solutions' that--
                    ``(A) is any combination of hardware, equipment, 
                software, labor, or services that together provides a 
                seamless capability;
                    ``(B) has the ability to be metered and billed 
                based on actual usage;
                    ``(C) has predetermined pricing at fixed price 
                units;
                    ``(D) requires the awardee to notify the Department 
                of Defense contracting officer when consumption under 
                the contract reaches 75 percent and 90 percent of the 
                funded amount, respectively, of the contract; and
                    ``(E) treats modifications to a contract entered 
                into under the authority established in subsection (a) 
                to add new features or capabilities in an amount less 
                than or equal to 25 percent of the total value of such 
                contract as competitive procurements under chapter 221 
                of this title; and
            ``(2) creating a new contract type under part 16 of the 
        Federal Acquisition Regulation, entitled `Fixed-price resource 
        units' that establishes fixed price per unit of measure as the 
        preferred contract type for the authority established under 
        subsection (a).
    ``(c) Funding.--Amounts authorized to be appropriated for 
acquisitions using the authority under subsection (a)--
            ``(1) may be used for expenses for--
                    ``(A) research, development, test and evaluation;
                    ``(B) procurement;
                    ``(C) production;
                    ``(D) modification; and
                    ``(E) operation and maintenance; and
            ``(2) may be used to enter into incrementally funded 
        contracts or other agreements.
    ``(d) Consumption-Based Solution Defined.--In this section, the 
term `consumption-based solution' means a model under which a 
technology-supported capability is provided to the Department of 
Defense and may utilize any combination of software, hardware or 
equipment, data, and labor or services that provides a capability that 
is metered and billed based on actual usage at fixed price units.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 247 of title 10, United States Code, is amended by inserting 
after the item relating to section 3458 the following new item:

``3459. Authority to acquire consumption-based solutions.''.

   TITLE IV--PROMOTION OF COMPETITION IN THE DEFENSE INDUSTRIAL BASE

SEC. 401. PROGRAM FOR ENHANCING SECONDARY SOURCES AND SUPPLY CHAIN 
              MANAGEMENT FOR THE DEPARTMENT OF DEFENSE.

    (a) Program Established.--The Secretary of Defense shall establish 
policy, regulations, and guidance to enhance the creation and 
utilization of secondary sources for Department of Defense systems. The 
program shall--
            (1) define qualification, testing, evaluation, and 
        airworthiness determinations for secondary sources;
            (2) create prepackaged templates, including Source Approval 
        Request (SAR) and Parts Manufacturer Approval (PMA), for 
        various categories of parts and systems; and
            (3) address part availability problems, obsolescence 
        management, and supply chain cost inflation.
    (b) Objectives.--The objectives of the program established under 
subsection (a) are--
            (1) to develop a streamlined process for secondary source 
        qualification that can be rapidly deployed in both wartime and 
        peacetime conditions;
            (2) to ensure that the qualification process during wartime 
        can be completed within weeks, rather than months or years, to 
        maintain operational readiness and support rapid deployment; 
        and
            (3) to maintain a robust and flexible supply chain that 
        adopt advanced manufacturing techniques and can quickly adapt 
        to changing conditions and requirements.
    (c) Templates.--The Secretary of Defense shall develop a process 
and detailed templates for qualification, testing, certification, and 
airworthiness determinations as follows:
            (1) Not later than 180 days after the date of the enactment 
        of this Act, the establishment of policies implementing the 
        process to encourage and support the delegation of material 
        review board authorities, processes, and approvals to the 
        contractor or subcontractor (at any tier) with respect to non-
        safety critical items for industrial capabilities described in 
        subsection (b).
            (2) The implementation, where feasible and advisable, of 
        commercial processes and procedures, including forms and 
        templates such as Sources Approval Requests and Alternative 
        Offers, for the evaluation and qualification of vendors, 
        including manufacturers and distributors, that are part of the 
        program established under subsection (a).
            (3) The implementation of processes and, if necessary, the 
        development of military specifications or other similar 
        requirements documents to pre-qualify vendors to supply safety 
        critical items or mission critical items for industrial 
        capabilities based on--
                    (A) an assessment of the vendor's material and 
                process controls to assure conformance to specification 
                and contractual requirements; and
                    (B) audit and inspection requirements of the 
                Department of Defense.
            (4) The review of test reports and, not later than 45 days 
        after a test is completed, notification of approval decisions 
        to requesting member of the acquisition workforce (as defined 
        in section 101 of title 10, United States Code).
            (5) The establishment of processes for qualification of 
        safety critical or flight critical end items produced through 
        advanced processes and technologies, such as additive 
        manufacturing.
            (6) The consideration for evaluation and qualification of 
        alternative material types that could be viable replacements or 
        interchangeable sources of material using streamlined 
        requirements;
            (7) Where appropriate, the development of processes for 
        qualification of a system or subsystem by a designated approval 
        authority within a military department in order to avoid the 
        need for qualification of individual parts while ensuring the 
        performance of parts and the interactions of the parts in the 
        system or subsystem.
            (8) The development of pathways to streamline and 
        consolidate the approval authority of the process established 
        pursuant to subsection (a).
            (9) Minimization of the need for military-unique 
        specifications and test procedures, and when required, the use 
        of procedures that--
                    (A) detail the performance or functions required by 
                the item requiring qualification and do not constrain 
                implementation of such process; and
                    (B) is completed upon request by a member of the 
                acquisition workforce--
                            (i) not later than 30 days after the date 
                        of such request, for unmanned items, non-safety 
                        critical items, or non-mission critical items; 
                        and
                            (ii) not later than 180 days after the date 
                        of such request, for safety critical items or 
                        mission critical items.
    (d) Transition Planning.--The program established under subsection 
(a) shall incorporate ASME Y.14.24 Original Design Activity (ODA) and 
Current Design Activity (CDA) transition planning and templates, 
including--
            (1) standardized templates for transitioning from ODA to 
        CDA; and
            (2) comprehensive guidelines for planning and executing 
        transitions between ODA and CDA.
    (e) Part Availability and Obsolescence Management.--The pilot 
program shall include strategies--
            (1) to implement improved inventory tracking systems;
            (2) to identify and pre-qualify alternative sources for 
        critical parts, including Federal Aviation Administration-
        certified parts; and
            (3) to develop proactive obsolescence management 
        strategies.
    (f) Cost Management.--The program established under subsection (a) 
shall include measures--
            (1) to conduct regular benchmarking of Department of 
        Defense part costs against commercial sector costs; and
            (2) to perform cost-benefit analyses to identify 
        inefficiencies and areas for cost reduction.
    (g) Business Rules and Waiver Procedures.--The program established 
under subsection (a) shall establish more effective exception or waiver 
procedures for business rules. These procedures shall--
            (1) allow for alternative design reviews; and
            (2) designate activities and roles in decision-making 
        processes to ensure accountability and best value outcomes.
    (h) Licensing Royalty Plan.--The program established under 
subsection (a) shall establish a licensing royalty plan similar to the 
intellectual property (IP) rights royalty payments made during World 
War II by the predecessors to the Department of Defense, including--
            (1) fair and reasonable royalty payments to ODAs and CDAs 
        for the use of intellectual property necessary for secondary 
        source development; and
            (2) mechanisms to ensure timely and equitable distribution 
        of royalty payments.
    (i) Workforce Development.--The Secretary of Defense shall 
establish an engineering workforce development program to provide 
hands-on exposure for government engineers, manufacturing or repair 
staff, and software developers. The program shall--
            (1) equip participants with the skills necessary to 
        effectively plan and execute secondary sourcing initiatives;
            (2) include training on qualification, testing, evaluation, 
        and airworthiness determinations; and
            (3) provide opportunities for practical experience in 
        working with secondary sources and supply chain management.
    (j) Cost Savings Exemption.--Activities under the program 
established under subsection (a) shall not require a determination of 
cost savings be met before creating an alternative source and obtaining 
technical data or software needed for replenishment parts or software, 
including by reverse engineering. The purpose of the exemption is to 
enable wartime logistics, point-of-use manufacturing at operating 
locations, alternative sourcing for suppliers or original equipment 
manufacturers (OEMs) unable to meet demand within accelerated wartime 
or contingency logistics demand schedules, or when mission readiness 
rates are adversely impacted, or when value engineering determines that 
alternative sourcing is a better option than OEM or current supplier 
value.
    (k) Level of Repair Analysis.--The program established under 
subsection (a) shall include Level of Repair Analysis (LORA) that 
considers non-economic factors such as battle damage repair, logistics 
under attack, and supply chain disruption factors in determining repair 
or replacement decisions.
    (l) Exemptions From Certain Investigations.--Items approved under 
the process developed pursuant to subsection (a) that do not present a 
safety risk to human life--
            (1) shall be exempt from Class A and Class B mishap 
        investigations, as defined by the Secretary of Defense; and
            (2) shall be subject to streamlined investigation 
        procedures, as determined by the Secretary of Defense, with 
        respect to a mishap.
    (m) Liability Protections.--Approval authorities responsible for 
the process developed pursuant to subsection (a) shall not be held 
liable by the Department of Defense for mishaps with respect to items 
approved pursuant to the process, absent evidence of willful 
misconduct, gross negligence, or intentional fraud.

SEC. 402. ADMINISTRATION OF THE INDUSTRIAL EXPANSION PROGRAM.

    (a) Requirement.--The Secretary of Defense shall establish an 
industrial expansion program that funds activities under subsection (b) 
according to the prioritization of property or services under 
subsection (c).
    (b) Activities Permitted.--The industrial expansion program 
established under subsection (a) shall include the following 
activities:
            (1) The development, updating, or refinement of military 
        specifications, to include military details, military 
        performance specifications, and technical publications, and 
        test procedures.
            (2) Activities associated with the mitigation of 
        diminishing manufacturing sources and material shortages.
            (3) Reverse engineering or re-engineering property to 
        create a technical data package or manufacturing capabilities.
            (4) Review and validation of technical data rights, 
        ordering, inspection, and enforcement, including the challenge 
        of improper markings and rights assertions.
            (5) Qualification, certification, testing, and associated 
        oversight.
            (6) Advertising, loaning, or transferring required 
        replenishment parts or data to potential sources of supply.
            (7) Procurement of organic equipment and development of 
        organic information systems associated with activities 
        described in paragraphs (1) through (6) that support 
        capabilities described under section 2464 of title 10, United 
        States Code.
            (8) Life-of-type buys if there is reasonable expectation 
        that a manufacturing source will have to be created and 
        qualified within the next three years.
    (c) Prioritization.--The Secretary of Defense shall ensure that 
funding for activities under subsection (b) shall be prioritized for 
the following needs:
            (1) Shortages in sustainment impacting a system's mission 
        capable rates below required objectives.
            (2) Items that are sequence critical or on the driving path 
        for production schedules.
            (3) Items that have no qualified sources of supply.
            (4) Items for which a contracting officer cannot ascertain 
        a fair and reasonable price, or for which a contractor has 
        refused to provide cost or pricing data.
            (5) Items required to retain core logistics capabilities.
            (6) Items identified by combatant commanders as critical 
        for point-of-use manufacturing under conditions of contested 
        logistics.
    (d) Expenditure Amounts.--The Department of Defense shall expend in 
connection with the program required under subsection (a)--
            
                    (A) not less than 2 percent of its extramural 
                procurement and sustainment budget in each of fiscal 
                years 2026 and 2027; and
                    (B) not less than 3 percent of its extramural 
                procurement and sustainment budget in fiscal year 2028 
                and each fiscal year thereafter.
    (e) Exemptions.--The requirements, approvals, and order of 
preference in subpart 217.75 of the Defense Federal Acquisition 
Regulation Supplement and related procedures and guidance shall not 
apply.
    (f) Preference.--The prototype authority under section 4022 of 
title 10, United States Code, shall be the preferred mechanism for 
procuring activities under the program required under subsection (a), 
including with respect to a transition to production.
    (g) Definitions.--In this section:
            (1) Extramural budget.--The term ``extramural budget'' 
        means the sum of the total obligations minus amounts obligated 
        for such activities by employees of the agency in or through 
        Government-owned, Government-operated facilities, except that 
        for the Department of Energy it shall not include amounts 
        obligated for atomic energy defense programs solely for weapons 
        activities or for naval reactor programs.
            (2) Reverse engineering.--The term ``reverse engineering'' 
        means a process by which parts are examined and analyzed to 
        determine how they were manufactured, for the purpose of 
        developing a complete technical data package, typically for 
        purposes of enabling manufacture of an item by new sources.

                  TITLE V--DEFENSE BUDGETING PROCESSES

SEC. 501. REVIEW OF STRUCTURE OF THE BUDGET AND APPROPRIATIONS FOR 
              FUNDING OF DEFENSE ACQUISITION PROGRAMS.

    (a) Review Required.--The Secretary of Defense shall conduct a 
comprehensive review of the appropriation account, budget line item, 
and program element structure for the budget of the Department of 
Defense, with the objectives of--
            (1) identifying cases in which management of a program or 
        system has been made more difficult due to the program or 
        system having been subdivided into multiple budget line items 
        or program elements;
            (2) identifying cases in which the budget line items or 
        program elements for multiple programs or systems intended to 
        provide a common set of capabilities, missions, or functions 
        could be combined into a single budget line item or a single 
        program element;
            (3) identifying steps that could be taken to address the 
        cases identified under paragraphs (1) and (2) including a 
        cross-walk of the existing budget structure to the new 
        structure;
            (4) alignment, to the maximum extent possible, of budget 
        line items or program elements to portfolio acquisition 
        executives or similar portfolio managers; and
            (5) removal of appropriation titles for research, 
        development, test and evaluation; procurement; and operation 
        and maintenance, and reorganization based on military service 
        and major capability and activity areas as recommended by the 
        final report of the Commission on Planning, Programming, 
        Budgeting, and Execution Reform.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report providing the results of the 
review under subsection (a), together with the Secretary's plan for any 
changes to be made within the Department of Defense resulting from the 
review and such recommendations for legislative action as the Secretary 
considers appropriate as a result of the review.

SEC. 502. MODIFICATIONS TO THE DEFENSE MODERNIZATION ACCOUNT.

    Section 3136 of title 10, United States Code, is amended--
            (1) in subsection (b)(1), by striking ``out of savings 
        derived from such projects'';
            (2) in subsection (e)--
                    (A) by striking paragraphs (1) and (2); and
                    (B) by striking ``(3) Funds'' and inserting 
                ``Funds'';
            (3) in subsection (f), by striking paragraph (3); and
            (4) in subsection (h)(2)--
                    (A) in subparagraph (A), by inserting the semicolon 
                and inserting ``; and'';
                    (B) in subparagraph (B), by striking the semicolon 
                and inserting a period; and
                    (B) by striking subparagraphs (C) and (D).

SEC. 503. AMENDMENTS AND REPEALS TO BUDGETARY REQUIREMENTS FOR DEFENSE 
              ACQUISITION.

    (a) Amendments to Existing Law.--
            (1) Defense intelligence business management systems.--
        Section 1624 of the John S. McCain National Defense 
        Authorization Act for Fiscal Year 2019 (Public Law 115-232; 132 
        Stat. 2120) is amended by striking subsection (b).
            (2) Assignment of certain budget control responsibilities 
        to commander of united states cyber command.--Section 
        1507(c)(2) of the National Defense Authorization Act for Fiscal 
        Year 2022 (Public Law 117-81; 10 U.S.C. 167b note) is amended--
                    (A) by striking subparagraphs (C) and (D); and
                    (B) by redesignating subparagraph (E) as 
                subparagraph (C).
            (3) Limitation and reporting requirements for unmanned 
        carrier-launched surveillance and strike system program.--
        Section 213 of the National Defense Authorization Act for 
        Fiscal Year 2014 (Public Law 113-66; 10 U.S.C. 22 note) is 
        amended--
                    (A) by striking subsection (c); and
                    (B) by redesignating subsection (d) as subsection 
                (c).
            (4) Body armor procurement.--Section 141 of the National 
        Defense Authorization Act for Fiscal Year 2010 (Public Law 111-
        84; 10 U.S.C. 221 note) is amended to read as follows:

``SEC. 141. BODY ARMOR PROCUREMENT.

    ``The Secretary of Defense shall ensure that body armor is procured 
using funds authorized to be appropriated by this title.''.
            (5) Rapid response to emergent technology advancements or 
        threats.--Section 229(c)(2) of the National Defense 
        Authorization Act for Fiscal Year 2024 (Public Law 118-31; 10 
        U.S.C. 3601 note) is amended by striking subparagraph (C).
            (6) Annual primary prevention research agenda.--Section 
        549A of the National Defense Authorization Act for Fiscal Year 
        2022 (Public Law 117-81; 10 U.S.C. 1561 note) is amended by 
        striking subsection (d).
            (7) Explosive ordnance disposal defense program.--Section 
        2284 of title 10, United States Code, is amended--
            (8) by striking subsection (c); and
            (9) by redesignating subsection (d) as subsection (c).
    (b) Repeals of Existing Law.--
            (1) In general.--The following provisions are hereby 
        repealed:
                    (A) Evaluation and assessment of the distributed 
                common ground system.--Section 219 of the National 
                Defense Authorization Act for Fiscal Year 2013 (Public 
                Law 113-66; 10 U.S.C. 221 note).
                    (B) Weapon system component or technology prototype 
                projects: display of budget information.--Section 4421 
                of title 10, United States Code.
                    (C) Assessing capabilities to counter adversary use 
                of ransomware, capabilities, and infrastructure.--
                Section 1510 of the National Defense Authorization Act 
                for Fiscal Year 2022 (117-81; 135 Stat. 2036).
                    (D) Separate program elements required for research 
                and development of joint light tactical vehicle..--
                Section 213 of the Ike Skelton National Defense 
                Authorization Act for Fiscal Year 2011 (Public Law 111-
                383; 10 U.S.C. 221 note).
                    (E) Separate program elements required for research 
                and development of individual body armor and associated 
                components.--Section 216 of the National Defense 
                Authorization Act for Fiscal Year 2010 (Public Law 111-
                84; 10 U.S.C. 221 note).
                    (F) Separate procurement and research, development, 
                test, and evaluation line items and program elements 
                for the f-35b and f-35c joint strike fighter 
                aircraft.--Section 217 of the National Defense 
                Authorization Act for Fiscal Year 2010 (Public Law 111-
                84; 10 U.S.C. 221 note).
                    (G) Separate program elements required for 
                significant systems development and demonstration 
                projects for armored systems modernization program.--
                Section 214 of the National Defense Authorization Act 
                for Fiscal Year 2006 (Public Law 109-163; 10 U.S.C. 221 
                note).
                    (H) Ballistic missile defense programs: program 
                elements.--Section 223 of title 10, United States Code.
                    (I) Acquisition accountability reports on the 
                ballistic missile defense system.--Section 225 of title 
                10, United States Code.
                    (J) Programs for combating terrorism: display of 
                budget information.--Section 229 of title 10, United 
                States Code.
                    (K) POW/MIA activities: display of budget 
                information.--Section 234 of title 10, United States 
                Code.
                    (L) Personal protection equipment procurement: 
                display of budget information.--Section 236 of title 
                10, United States Code.
                    (M) Embedded mental health providers of the reserve 
                components: display of budget information.--Section 237 
                of title 10, United States Code.
                    (N) Cyber mission forces: program elements.--
                Section 238 of title 10, United States Code.
                    (O) Certain intelligence-related programs: budget 
                justification materials.--Section 239b of title 10, 
                United States Code.
                    (P) Cooperative ballistic missile defense 
                program.--Section 233 of the National Defense 
                Authorization Act for Fiscal Year 1998 (Public Law 105-
                85; 10 U.S.C. 221 note).
                    (Q) Budgeting of department of defense relating to 
                operational energy improvement.--Section 322 of the 
                William M. (Mac) Thornberry National Defense 
                Authorization Act for Fiscal Year 2021 (Public Law 116-
                283; 10 U.S.C. 221 note).
                    (R) Budgeting of department of defense relating to 
                extreme weather.--Section 328 of the National Defense 
                Authorization Act for Fiscal Year 2020 (Public Law 116-
                92; 10 U.S.C. 221 note).
                    (S) System management plan and matrix for the f-35 
                joint strike fighter aircraft program.--Section 122 of 
                the Ike Skelton National Defense Authorization Act for 
                Fiscal Year 2011 (Public Law 111-383; 124 Stat. 4157).
                    (T) Separate procurement line items for future 
                combat systems program.--Section 111 of the Duncan 
                Hunter National Defense Authorization Act for Fiscal 
                Year 2009 (Public Law 110-417; 10 U.S.C. 221 note).
                    (U)  Separate procurement and research, 
                development, test, and evaluation line items and 
                program elements for sky warrior unmanned aerial 
                systems project.--Section 214 of the Duncan Hunter 
                National Defense Authorization Act for Fiscal Year 2009 
                (Public Law 110-417; 10 U.S.C. 221 note).
                    (V) Requirement for separate display of budgets for 
                afghanistan and iraq.--Section 1502 of the Duncan 
                Hunter National Defense Authorization Act for Fiscal 
                Year 2009 (Public Law 110-417; 10 U.S.C. 221 note).
            (2) Clerical amendments.--(A) The table of sections at the 
        beginning of subchapter II of chapter 327 of title 10, United 
        States Code, is amended by striking the item related to section 
        4421.
            (B) The table of sections at the beginning of chapter 9 of 
        title 10, United States Code, is amended by striking the items 
        related to sections 223, 225, 229, 234, 236, 237, 238, and 
        239b.
                                 <all>
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