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and Defense Agencies, in coordination with the Direc-
tor of the Defense Digital Service, shall ensure that 
program offices pursuing Agile Acquisition methods 
have access to an Agile Acquisition coach. 
(2) EXPERTISE.—The Agile Acquisition coach 
shall possess expertise in— 
(A) commercial Agile Acquisition methods; 
and 
(B) the acquisition system and processes of 
the Department of Defense. 
(3) 
DUTIES.—The 
Agile 
Acquisition 
coach 
shall— 
(A) assist program offices, supporting stake-
holder organizations, and personnel in properly 
applying Agile Acquisition methods; and 
(B) notify the appropriate acquisition au-
thorities if programs are deviating from best 
practices or are not receiving appropriate sup-
port from stakeholder organizations, in a man-
ner or to a degree that threatens the success of 
the program. 
(e) AGILE ACQUISITION RESEARCH PROGRAM.—The 
President of the Defense Acquisition University shall estab-
lish a research program to conduct research on and develop-
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ment of Agile Acquisition practices and tools best tailored 
to meet the mission needs of the Department of Defense. 
(f) DEFINITIONS.—In this section the term ‘‘Agile Ac-
quisition’’— 
(1) means acquisition pursuant to a methodology 
for delivering multiple, rapid, incremental capabili-
ties to the user for operational use, evaluation, and 
feedback; and 
(2) involves— 
(A) the incremental development and field-
ing of capabilities, commonly called ‘‘spirals’’, 
‘‘spins’’, or ‘‘sprints’’, which can be measured in 
a few weeks or months; and 
(B) continuous participation and collabora-
tion by users, testers, and requirements authori-
ties. 
SEC. 844. CREDITS TO DEPARTMENT OF DEFENSE ACQUISI-
TION WORKFORCE DEVELOPMENT FUND. 
Section 1705(d)(2)(D) of title 10, United States Code, 
is amended to read as follows: 
‘‘(D) The Secretary of Defense may adjust the 
amount specified in subparagraph (C) for a fiscal 
year if the Secretary determines that the amount is 
greater or less than reasonably needed for purposes of 
the Fund for such fiscal year. The Secretary may not
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adjust the amount for a fiscal year to an amount that 
is 
more 
than 
$600,000,000 
or 
less 
than 
$400,000,000.’’. 
Subtitle E—Provisions Related to 
Commercial Items 
SEC. 851. MODIFICATION TO DEFINITION OF COMMERCIAL 
ITEMS. 
Section 2376 of title 10, United States Code, is amend-
ed— 
(1) in paragraph (1), by striking ‘‘ ‘commercial 
item’,’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(4) The term ‘commercial item’ has the mean-
ing given the term in section 103 of title 41, except 
that it does not include an item referred to in para-
graph (3)(B) of such section if, after the minor modi-
fications made to meet Federal Government require-
ments referred to in such paragraph, the item in-
cludes a preponderance of government-unique func-
tions or essential characteristics.’’. 
SEC. 852. REVISION TO DEFINITION OF COMMERCIAL ITEM. 
Section 103(8) of title 41, United States Code, is 
amended by striking ‘‘to multiple State and local govern-
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ments’’ and inserting ‘‘to multiple State, local, or foreign 
governments’’. 
SEC. 853. COMMERCIAL ITEM DETERMINATIONS. 
Section 2380 of title 10, United States Code, is amend-
ed— 
(1) by striking ‘‘The Secretary’’ and inserting 
‘‘(a) IN GENERAL.—The Secretary’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) ITEMS PREVIOUSLY ACQUIRED USING COMMER-
CIAL ITEM ACQUISITION PROCEDURES.— 
‘‘(1) DETERMINATIONS.—A contract or sub-
contract for an item using commercial item acquisi-
tion procedures under part 12 of the Federal Acquisi-
tion Regulation shall serve as a prior commercial 
item determination with respect to such item for pur-
poses of this chapter unless the Secretary of Defense 
determines in writing that it is no longer cost-effec-
tive to procure the item using commercial item acqui-
sition procedures. 
‘‘(2) LIMITATION.—(A) Except as provided under 
subparagraph (B), funds appropriated or otherwise 
made available to the Department of Defense may not 
be used for the procurement under part 15 of the Fed-
eral Acquisition Regulation of an item that was pre-
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viously acquired using commercial item acquisition 
procedures under part 12 of the Federal Acquisition 
Regulation. 
‘‘(B) The limitation under subparagraph (A) 
does not apply to the procurement of an item that 
was previously acquired using commercial item ac-
quisition procedures under part 12 of the Federal Ac-
quisition Regulation following— 
‘‘(i) a written determination by the head of 
contracting 
activity 
pursuant 
to 
section 
2306a(b)(4)(B) of this title that the use of such 
procedures was improper; or 
‘‘(ii) a written determination by the Sec-
retary of Defense that it is no longer cost-effec-
tive to procure the item using such procedures.’’. 
SEC. 854. PREFERENCE FOR ACQUISITION OF COMMERCIAL 
ITEMS. 
Section 2377(b) of title 10, United States Code, is 
amended— 
(1) by redesignating paragraphs (1) through (6) 
as subparagraphs (A) through (F), respectively, and 
moving such subparagraphs, as so redesignated, two 
ems to the right; 
(2) by striking ‘‘The head’’ and inserting ‘‘(1) 
The head’’; and
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(3) by adding at the end the following new para-
graph: 
‘‘(2) The preference for the acquisition of commercial 
items and nondevelopmental items under this section shall 
take priority over any small business set-aside program, 
and shall require, to the maximum extent practicable, the 
acquisition of commercial items or nondevelopmental items 
other than commercial items in accordance with the terms 
of this section. If the requirements of an agency with respect 
to a procurement of supplies or services can be met with 
commercial items or nondevelopmental items other than 
commercial items provided by a small business concern, the 
small business concern may be awarded the contract in ac-
cordance with the requirements of a set-aside program.’’. 
SEC. 855. INAPPLICABLE LAWS AND REGULATIONS. 
(a) REVIEW OF DETERMINATIONS NOT TO EXEMPT 
DEPARTMENT OF DEFENSE CONTRACTS FOR COMMERCIAL 
ITEMS AND COMMERCIALLY AVAILABLE OFF-THE-SHELF 
ITEMS FROM CERTAIN LAWS
AND REGULATIONS.—Not 
later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense shall— 
(1) review each determination of the Federal Ac-
quisition Regulatory Council pursuant to section 
1906(b)(2), section 1906(c)(3), or section 1907(a)(2) 
of title 41, United States Code, not to exempt con-
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tracts and subcontracts described in subsection (a) of 
section 2375 of title 10, United States Code, from 
laws such contracts and subcontracts would otherwise 
be exempt from under section 1906(d) of title 41, 
United States Code; and 
(2) revise the Department of Defense Supplement 
to the Federal Acquisition Regulation to provide an 
exemption from each law subject to such determina-
tion unless the Secretary determines there is a specific 
reason not to provide the exemption. 
(b) ELIMINATION OF CERTAIN CONTRACT CLAUSE RE-
QUIREMENTS APPLICABLE
TO COMMERCIAL ITEM CON-
TRACTS.—Not later than 180 days after the date of the en-
actment of this Act, the Secretary of Defense shall revise 
the Department of Defense Supplement to the Federal Ac-
quisition Regulation to eliminate all regulations promul-
gated after the date of the enactment of the Federal Acquisi-
tion Streamlining Act of 1994 (Public Law 103–355) that 
require a specific contract clause for a contract using com-
mercial item acquisition procedures under part 12 of the 
Federal Acquisition Regulation, except for regulations re-
quired by law or that the Secretary determines are vital 
to national security. 
(c) ELIMINATION OF CERTAIN CONTRACT CLAUSE RE-
QUIREMENTS APPLICABLE TO COMMERCIALLY AVAILABLE
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OFF-THE-SHELF ITEM SUBCONTRACTS.—Not later than 
180 days after the date of the enactment of this Act, the 
Secretary of Defense shall revise the Department of Defense 
Supplement to the Federal Acquisition Regulation to elimi-
nate all requirements for a prime contractor to include a 
specific contract clause in a subcontract for commercially 
available off-the-shelf items unless the inclusion of such 
clause is required by law or is necessary for the contractor 
to meet the requirements of the prime contract. 
Subtitle F—Industrial Base Matters 
SEC. 861. REVIEW REGARDING APPLICABILITY OF FOREIGN 
OWNERSHIP, CONTROL, OR INFLUENCE RE-
QUIREMENTS OF NATIONAL SECURITY INDUS-
TRIAL PROGRAM TO NATIONAL TECHNOLOGY 
AND INDUSTRIAL BASE COMPANIES. 
(a) REVIEW.—The Secretary of Defense, with the con-
currence of the Secretary of State, shall review whether com-
panies whose ownership or majority control is based in 
countries that are part of the national technology and in-
dustrial base should be exempted from the foreign owner-
ship, control, or influence (FOCI) requirements of the Na-
tional Security Industrial Program. 
(b) AUTHORITY.— 
(1) IN GENERAL.—The Secretary of Defense may 
establish a program to carry out the exemption proc-
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ess described under subsection (a). Under the pro-
gram, the Secretary, with the concurrence of the Sec-
retary of State, shall maintain a list of companies 
owned or controlled by countries that are part of the 
national technology and industrial base that are eligi-
ble for exemption from the requirements described 
under such subsection. 
(2) DETERMINATIONS OF ELIGIBILITY.—The Sec-
retary of Defense, with the concurrence of the Sec-
retary of State, may designate a company under 
paragraph (1) as exempt from the requirements de-
scribed under subsection (a) upon a determination 
that such exemption— 
(A) is beneficial to improving collaboration 
within countries participating in the national 
technology and industrial base; 
(B) is in the United States national secu-
rity interest; and 
(C) will not result in a greater risk of the 
disclosure of classified or sensitive information 
consistent with the National Security Industrial 
Program. 
(3) EXERCISE
OF
AUTHORITY.—The authority 
under paragraph (1) to exempt a listed company 
from the requirements described under subsection (a)
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may be exercised beginning on the date that is the 
later of— 
(A) the date that is 60 days after the Sec-
retary of Defense, in consultation with the Sec-
retary of State, submits to the congressional de-
fense committees a report summarizing the re-
view conducted under such subsection; and 
(B) the date that is 30 days after the Sec-
retary of Defense, in consultation with the Sec-
retary of State, submits to the congressional de-
fense committees a written notification of a de-
termination under paragraph (2) to exempt the 
company from such requirements, including a 
discussion of the issues related to the foreign 
ownership or control of the company that were 
considered as part of the determination. 
(c) NATIONAL TECHNOLOGY AND INDUSTRIAL BASE 
DEFINED.—In this section, the term ‘‘national technology 
and industrial base’’ has the meaning given the term in 
section 2500 of title 10, United States Code. 
SEC. 862. PILOT PROGRAM ON STRENGTHENING MANUFAC-
TURING IN DEFENSE INDUSTRIAL BASE. 
(a) PILOT PROGRAM REQUIRED.—The Secretary of 
Defense shall carry out a pilot program to assess the feasi-
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bility and advisability of increasing the capability of the 
defense industrial base to support— 
(1) production needs to meet military require-
ments; and 
(2) manufacturing and production of emerging 
defense and commercial technologies of military value. 
(b) AUTHORITIES.—The Secretary shall carry out the 
pilot program under the following: 
(1) The Defense Production Act of 1950 (50 
U.S.C. 4501 et seq.). 
(2) Chapters 137 and 139 and sections 2371, 
2371b, and 2373 of title 10, United States Code. 
(3) Such other legal authorities as the Secretary 
considers applicable to carrying out the pilot pro-
gram. 
(c) ACTIVITIES.—Activities under the pilot program 
may include the following: 
(1) Use of contracts, grants, or other transaction 
authorities to support manufacturing and production 
capabilities in small and medium sized manufactur-
ers. 
(2) Purchases of quantities of goods or equipment 
for testing and qualification purposes. 
(3) Purchase commitments to create incentives 
for industry to develop manufacturing and produc-
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tion capabilities of interest to national security, in-
cluding cost sharing with funding from nongovern-
mental sources. 
(4) Issuing loans directly to small and medium 
sized enterprises to support manufacturing and pro-
duction capabilities. 
(5) Guaranteeing loans to enable small and me-
dium sized manufacturers to obtain private sector 
loans to support manufacturing and production capa-
bilities in areas of national security interest. 
(6) Giving awards to third party entities to sup-
port investments in small and medium sized manu-
facturers working in areas of national security inter-
est, including activities to support debt and equity 
investments that would benefit missions of the De-
partment of Defense. 
(7) Such other activities as the Secretary deter-
mines necessary. 
(d) TERMINATION.—The pilot program shall terminate 
on the date that is five years after the date of the enactment 
of this Act. 
SEC. 863. SUNSET OF CERTAIN PROVISIONS RELATING TO 
THE INDUSTRIAL BASE. 
(a) MISCELLANEOUS LIMITATIONS ON THE PROCURE-
MENT OF GOODS OTHER THAN UNITED STATES GOODS.—
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Section 2534 of title 10, United States Code, is amended 
by adding at the end the following new subsection: 
‘‘(k) SUNSET ON CERTAIN RESTRICTIONS.—The re-
striction under subsection (a) relative to the procurement 
of the items set forth in paragraphs (1) through (4) of such 
subsection shall terminate on the close of September 30, 
2018.’’. 
(b) PHOTOVOLTAIC DEVICES.—Section 858 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. 2534 note) is amended by adding at the 
end the following new subsection: 
‘‘(c) SUNSET.—This section shall terminate on the 
close of September 30, 2018.’’. 
Subtitle G—International 
Contracting Matters 
SEC. 865. PROCUREMENT EXCEPTION RELATING TO AGREE-
MENTS WITH FOREIGN GOVERNMENTS. 
Section 2533a of title 10, United States Code, is 
amended— 
(1) in subsection (a), by striking ‘‘subsections (c) 
through (h)’’ and inserting ‘‘subsections (c) through 
(i)’’; 
(2) by redesignating subsections (i), (j), and (k) 
as subsections (j), (k), and (l), respectively; and
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(3) by inserting after subsection (h) the following 
new subsection: 
‘‘(i) EXCEPTION RELATING TO AGREEMENTS WITH 
FOREIGN GOVERNMENTS.—Subsection (a) does not preclude 
the acquisition of items described in subsection (b) as part 
of a weapon system if the acquisition is necessary in fur-
therance of an agreement with a foreign government in 
which both governments agree to remove barriers to pur-
chases of supplies produced in the other country or services 
performed by sources of the other country.’’. 
SEC. 866. APPLICABILITY OF COST AND PRICING DATA CER-
TIFICATION REQUIREMENTS. 
Section 2306a(b)(1) of title 10, United States Code, is 
amended— 
(1) in subparagraph (C), by striking ‘‘; or’’ and 
inserting a semicolon; 
(2) in subparagraph (D)(ii), by striking the pe-
riod at the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(E) for a foreign military sale where there 
is already an existing Government contract— 
‘‘(i) for the same or similar item or 
service; and
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‘‘(ii) for which the Government has 
current cost and pricing data and insights 
into the reasonableness of price.’’. 
SEC. 867. ENHANCING PROGRAM LICENSING. 
(a) IN GENERAL.—Not later than September 30, 2019, 
the Secretary of Defense, with the concurrence of the Sec-
retary of State, shall establish a structure for implementing 
a revised program export licensing framework intended to 
provide comprehensive export licensing authorization to 
support large international cooperative defense programs 
between multiple nations and determine what, if any, regu-
latory authorities require modification. 
(b) SUSTAINMENT.—The licensing framework estab-
lished under subsection (a) shall require a program license 
for the future sustainment of all international cooperative 
defense programs comprised of more than five nations. The 
program license shall be finalized prior to the sustainment 
phase of that program’s acquisition lifecycle. 
Subtitle H—Other Transactions 
SEC. 871. OTHER TRANSACTION AUTHORITY. 
(a) 
EXPANDED
AUTHORITY
FOR
PROTOTYPE 
PROJECTS.—Subsection (a) of section 2371b of title 10, 
United States Code, is amended— 
(1) by striking ‘‘(1) Subject’’ and inserting 
‘‘Subject’’; and
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† HR 2810 PAP
(2) by striking paragraphs (2) and (3). 
(b) MODIFICATION OF COST SHARING REQUIREMENT 
FOR USE
OF OTHER TRANSACTION AUTHORITY.—Sub-
section (d)(1) of such section is amended by striking sub-
paragraph (C) and inserting the following new subpara-
graph: 
‘‘(C) At least one third of the total cost of the 
prototype project is to be paid out of funds provided 
by sources other than the Federal Government.’’. 
(c) USE OF OTHER TRANSACTION AUTHORITY FOR ON-
GOING PROTOTYPE PROJECTS.—Subsection (f)(1) of such 
section is amended by adding at the end the following: ‘‘A 
transaction includes all individual prototype sub-projects 
awarded under the transaction to a consortium of United 
States industry and academic institutions.’’. 
SEC. 872. EDUCATION AND TRAINING FOR TRANSACTIONS 
OTHER THAN CONTRACTS AND GRANTS. 
Section 2371 of title 10, United States Code, is amend-
ed— 
(1) by redesignating subsection (g) as subsection 
(h); and 
(2) by inserting after subsection (f) the following 
new subsection: 
‘‘(g) EDUCATION AND TRAINING.—The Secretary of 
Defense shall ensure that management, technical, and con-
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† HR 2810 PAP
tracting personnel of the Department involved in the award 
and administration of transactions under this section or 
other innovative forms of contracting are afforded adequate 
education and training.’’. 
SEC. 873. PREFERENCE FOR USE OF OTHER TRANSACTIONS 
AND EXPERIMENTAL AUTHORITY. 
In the execution of science and technology and proto-
typing programs, the Secretary of Defense shall establish 
a preference for using transactions other than contracts, co-
operative agreements, and grants entered into pursuant to 
sections 2371 and 2371b of title 10, United States Code, 
and authority for procurement for experimental purposes 
pursuant to section 2373 of title 10, United States Code. 
SEC. 874. METHODS FOR ENTERING INTO RESEARCH 
AGREEMENTS. 
Section 2358(b) of title 10, United States Code, is 
amended— 
(1) in paragraph (3), by striking ‘‘or’’; 
(2) in paragraph (4), by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following new para-
graphs: 
‘‘(5) by transactions other than contracts, cooper-
ative agreements, and grants entered into pursuant to 
sections 2371 and 2371b of this title; or
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‘‘(6) by procurement for experimental purposes 
pursuant to section 2373 of this title.’’. 
Subtitle I—Development and Acqui-
sition of Software Intensive and 
Digital Products and Services 
SEC. 881. RIGHTS IN TECHNICAL DATA. 
(a) MODIFICATION
OF DEFINITION
OF TECHNICAL 
DATA.—Paragraph (4) of section 2302 of title 10, United 
States Code, is amended to read as follows: 
‘‘(4) The term ‘technical data’— 
‘‘(A) means recorded information (regard-
less of the form or method of the recording) of a 
scientific or technical nature relating to supplies 
procured by an agency; 
‘‘(B) with respect to software, includes ev-
erything required to reproduce, build/recompile, 
test, and deploy working system binaries on sys-
tem hardware, including all source code, revision 
histories, build scripts, build/compilation/modi-
fication instructions/procedures, documentation, 
test cases, expected test results, compilers, inter-
preters, test harnesses, specialized build and test 
hardware, connectors, cables, and library de-
pendencies; and
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‘‘(C) does not include computer software in-
cidental to contract administration or financial, 
administrative, cost or pricing, or management 
data or other information incidental to contract 
administration.’’. 
(b) RIGHTS IN TECHNICAL DATA.—Section 2320(a)(2) 
of title 10, United States Code, is amended by adding at 
the end the following new subparagraph: 
‘‘(J) The Secretary of Defense shall require the 
following with respect to software delivery: 
‘‘(i) Software shall be delivered in native 
electronic format. 
‘‘(ii) Builds must not be dependent upon 
pre-defined build directories. 
‘‘(iii) In the case of licensing restrictions 
that do not allow library dependency inclusion, 
verified accessible repositories and revision his-
tory shall be documented and included. 
‘‘(iv) Commercial Off-The Shelf/Non-Devel-
opment Item (COTS/NDI) shall be delivered on 
original Licensed Media. If firmware is part of 
the delivery, then a Firmware Support Manual 
should be included as an Appendix.’’.
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SEC. 882. DEFENSE INNOVATION BOARD ANALYSIS OF 
SOFTWARE ACQUISITION REGULATIONS. 
(a) STUDY.— 
(1) IN GENERAL.—Not later than 30 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall task the Defense Innovation Board to 
undertake a study on streamlining software develop-
ment and acquisition regulations. 
(2) MEMBER PARTICIPATION.—The Chairman of 
the Defense Innovation Board shall select appropriate 
members from the membership of the Board to par-
ticipate in this study, and may recommend addi-
tional temporary members or contracted support per-
sonnel to the Secretary of Defense for the purposes of 
this study. In considering additional appointments to 
the study, the Secretary of Defense shall ensure that 
members have significant technical, legislative, or reg-
ulatory expertise and reflect diverse experiences in the 
public and private sector. 
(3) SCOPE.—The study conducted pursuant to 
paragraph (1) shall— 
(A) review the acquisition regulations ap-
plicable to the Department of Defense with a 
view toward streamlining and improving the ef-
ficiency and effectiveness of software acquisition
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in order to maintain defense technology advan-
tage; 
(B) produce specific and detailed rec-
ommendations for any legislation, including the 
amendment or repeal of regulations, that the 
members of the Board conducting the study de-
termine necessary to— 
(i) streamline development and pro-
curement of software; 
(ii) adopt best practices from the pri-
vate sector applicable to government use; 
(iii) promote rapid adoption of new 
technology; 
(iv) ensure continuing financial and 
ethical integrity in procurement; and 
(v) protect the best interests of the De-
partment of Defense; and 
(C) produce such additional recommenda-
tions for legislation as such members consider 
appropriate. 
(4) CONSULTATION
ON
MAJOR
PROGRAM
RE-
ALIGNMENT.—The Secretary of Defense shall consult 
with the Defense Innovation Board in conducting ac-
tivities under the major program realignment pilot 
program established pursuant to section 873. The Sec-
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retary shall provide the Board with timely access to 
all information necessary for the Board to provide 
such consultation and report on the major program 
realignment. 
(5) ACCESS TO INFORMATION.—The Secretary of 
Defense shall provide the Defense Innovation Board 
with timely access to appropriate information, data, 
resources, and analysis so that the Board may con-
duct a thorough and independent analysis as required 
under this subsection. 
(b) REPORTS.— 
(1) INTERIM REPORTS.—Not later than 150 days 
after the date of the enactment of this Act, the Sec-
retary of Defense shall submit a report to or brief the 
congressional defense committees on the interim find-
ings of the study conducted pursuant to subsection 
(a). The Defense Innovation Board shall provide reg-
ular updates to the Secretary of Defense and the con-
gressional defense committees for purposes of pro-
viding the interim report. 
(2) FINAL
REPORT.—Not later than one year 
after the Secretary of Defense tasks the Defense Advi-
sory Board to conduct the study, the Board shall 
transmit a final report of the study to the Secretary. 
Not later than 30 days after receiving the final re-
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port, the Secretary of Defense shall transmit the final 
report, together with such comments as the Secretary 
determines appropriate, to the congressional defense 
committees. 
SEC. 883. PILOT TO TAILOR SOFTWARE-INTENSIVE MAJOR 
PROGRAMS TO USE AGILE METHODS. 
(a) IN GENERAL.—Not later than 30 days after the 
date of the enactment of this Act, the Secretary of Defense, 
in consultation with the Secretaries and Chiefs of the mili-
tary services, shall identify one major program per service 
and one defense-wide program for tailoring into smaller in-
crements. The programs shall be selected from among those 
designated as major defense acquisition programs and those 
formerly designated as major automated information sys-
tems (excluding defense business systems). 
(b) PROGRAM SELECTION CRITERIA.—In identifying 
candidate programs, the Secretary shall prioritize pro-
grams that— 
(1) are software intensive; 
(2) have identified software development as a 
risk; 
(3) have experienced cost growth and schedule 
delay; and 
(4) did not deliver any operational capability 
within the prior calendar year.
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(c) REALIGNMENT PLAN.—The Secretary of Defense 
shall finalize a realignment plan within 60 days of pro-
grams being identified under subsection (a) that provides 
for the realigned program increments having a cost below 
the cost threshold for designation as a major acquisition. 
(d) REALIGNMENT EXECUTION.—Each realigned pro-
gram increment shall— 
(1) be designed to deliver a meaningfully useful 
capability within the first 180 days following realign-
ment; 
(2) be designed to deliver subsequent meaning-
fully useful capabilities on timeframes of less than 
180 days; 
(3) incorporate cross-functional teams focused on 
software production that prioritize user needs and 
control of total cost of ownership; 
(4) be staffed with highly qualified technically 
trained staff and personnel with management and 
business process expertise in leadership positions to 
support requirements modification, acquisition strat-
egy, and program decisionmaking; 
(5) ensure that realigned acquisition strategies 
are broad enough to allow offerors to propose a serv-
ice, system, modified business practice, configuration 
of personnel, or combination thereof as a solution;
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† HR 2810 PAP
(6) include periodic engagement with the user 
community, as well as representation by the user 
community in program management and software 
production activity; 
(7) ensure realigned acquisition strategies favor 
outcomes-based requirements definition and capa-
bility as a service, including the establishment of tech-
nical evaluation criteria as outcomes to be used to 
drive service-level agreements with vendors; and 
(8) consider options for termination of the rela-
tionship with any vendor unable or unwilling to offer 
terms that meet the requirements of this section. 
(e) CONSULTATION.—In conducting the program selec-
tion and tailoring under this section, the Secretary shall— 
(1) use the tools, resources, and expertise of dig-
ital and innovation organizations resident in the De-
partment, such as the Defense Innovation Board, the 
Defense Innovation Unit Experimental, the Defense 
Science Board, the Defense Digital Services, federally 
funded research and development centers, research 
laboratories, and other technical, management, and 
acquisition experts; 
(2) use the digital development and acquisition 
expertise of the General Services Administration’s 
Technology Transition Service, Office of 18F; and
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(3) leverage the science, technology, and innova-
tion activities established pursuant to section 217 of 
the National Defense Authorization Act for Fiscal 
Year 2016 (Public Law 114–92; 10 U.S.C. 2445a 
note). 
(f) AGILE ACQUISITION DEFINED.—In this section, the 
term ‘‘agile acquisition’’— 
(1) means acquisition pursuant to a methodology 
for delivering multiple, rapid, incremental capabili-
ties to the user for operational use, evaluation, and 
feedback; and 
(2) involves— 
(A) the incremental development and field-
ing of capabilities, commonly called ‘‘spirals’’, 
‘‘spins’’, or ‘‘sprints’’, which can be measured in 
a few weeks or months; and 
(B) continuous participation and collabora-
tion by users, testers, and requirements authori-
ties. 
SEC. 884. REVIEW AND REALIGNMENT OF DEFENSE BUSI-
NESS SYSTEMS TO EMPHASIZE AGILE METH-
ODS. 
(a) IN GENERAL.—Not later than 30 days after the 
date of the enactment of this Act, the Secretary of Defense, 
in consultation with the Chief Information Officers and
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Chief Management Officers of the military services, shall 
conduct a comprehensive assessment of investments in de-
fense business systems and prioritize no fewer than four and 
up to eight such systems for realignment and restructuring 
into smaller increments and the incorporation of agile ac-
quisition methods. 
(b) PROGRAM ASSESSMENT ELEMENTS.—The assess-
ment under subsection (a) shall include the following: 
(1) A comparison of investments in business sys-
tems across the Department of Defense within each 
business system portfolio category, such as personnel 
and pay systems, accounting and financial systems, 
and contracting and procurement systems. 
(2) Identification of opportunities to rationalize 
requirements across investments within a business 
system portfolio. 
(3) Identification of programs within business 
system portfolio categories that are most closely fol-
lowing the best acquisition practices for software in-
tensive systems. 
(c) PROGRAM REALIGNMENT SELECTION CRITERIA.— 
In identifying programs for potential realignment, the Sec-
retary of Defense shall prioritize programs that— 
(1) did not deliver any operational capability 
within the prior calendar year;
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(2) have experienced cost growth and schedule 
delay; and 
(3) have similar user requirements to a better 
performing program within the same business system 
portfolio category. 
(d) REALIGNMENT PLAN.—The Secretary of Defense 
shall finalize a realignment plan within 60 days of pro-
grams being identified under subsection (c). 
(e) REALIGNMENT EXECUTION.—Each realigned pro-
gram increment shall— 
(1) be designed to deliver a meaningfully useful 
capability within the first 180 days following realign-
ment; 
(2) be designed to deliver subsequent meaning-
fully useful capabilities on timeframes of less than 
180 days; 
(3) incorporate cross-functional teams focused on 
software production that prioritize user needs and 
control of total cost of ownership; 
(4) be staffed with highly qualified technically 
trained staff and personnel with management and 
business process expertise in leadership positions to 
support requirements modification, acquisition strat-
egy, and program decision making;
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(5) ensure that realigned acquisition strategies 
are broad enough to allow offerors to propose a serv-
ice, system, modified business practice, configuration 
of personnel, or combination thereof as a solution; 
(6) include periodic engagement with the user 
community as well as representation by the user com-
munity in program management and software pro-
duction activity; 
(7) ensure realigned acquisition strategies favor 
outcomes-based requirements definition and capa-
bility as a service, including the establishment of tech-
nical evaluation criteria as outcomes to be used to 
drive service-level-agreements with vendors; and 
(8) consider options for termination of the rela-
tionship with any vendor unable or unwilling to offer 
terms that meet the requirements of this section. 
(f) CONSULTATION.—In conducting the program selec-
tion and realignments under this section, the Secretary 
shall— 
(1) use the tools, resources, and expertise of dig-
ital and innovation organizations resident in the De-
partment, such as the Defense Innovation Board, the 
Defense Innovation Unit Experimental, the Defense 
Science Board, the Defense Business Board, the De-
fense Digital Services, federally funded research and
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development centers, research laboratories, and other 
technical, management, and acquisition experts; 
(2) use the digital development and acquisition 
expertise of the General Services Administration’s 
Technology Transition Service, Office of 18F; and 
(3) leverage the science, technology, and innova-
tion activities established pursuant to section 217 of 
the National Defense Authorization Act for Fiscal 
Year 2016 (Public Law 114–92; 10 U.S.C. 2445a 
note). 
(g) AGILE ACQUISITION DEFINED.—In this section, the 
term ‘‘agile acquisition’’— 
(1) means acquisition pursuant to a methodology 
for delivering multiple, rapid, incremental capabili-
ties to the user for operational use, evaluation, and 
feedback; and 
(2) involves— 
(A) the incremental development and field-
ing of capabilities, commonly called ‘‘spirals’’, 
‘‘spins’’, or ‘‘sprints’’, which can be measured in 
a few weeks or months; and 
(B) continuous participation and collabora-
tion by users, testers, and requirements authori-
ties.
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SEC. 885. SOFTWARE DEVELOPMENT PILOT USING AGILE 
BEST PRACTICES. 
(a) IN GENERAL.—Not later than 30 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall identify no fewer than four and up to eight software 
development activities within the Department of Defense or 
military departments to be developed using modern agile 
acquisition methods. 
(b) STREAMLINED
PROCESSES.—Software develop-
ment activities identified under subsection (a) shall be de-
veloped without incorporation of the following contract or 
transaction requirements: 
(1) Earned Value Management (EVM) or EVM- 
like reporting. 
(2) Development of Integrated Master Schedule. 
(3) Development of Integrated Master Plan. 
(4) Development of Technical Requirement Docu-
ment. 
(5) Development of Systems Requirement Docu-
ments. 
(6) Use of Information Technology Infrastructure 
Library agreements. 
(7) Use of Software Development Life Cycle 
(methodology). 
(c) ROLES AND RESPONSIBILITIES.—
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(1) IN GENERAL.—Selected activities shall in-
clude the following roles and responsibilities: 
(A) A program manager that is empowered 
to make all programmatic decisions within the 
overarching activity objectives, including re-
sources, funding, personnel, and contract or 
transaction termination recommendations. 
(B) A product owner that reports directly to 
the program manager and is responsible for the 
overall design of the product, prioritization of 
roadmap elements and interpretation of their ac-
ceptance criteria, and prioritization of the list of 
all features desired in the product. 
(C) An engineering lead that reports di-
rectly to the program manager and is responsible 
for the implementation and operation of the soft-
ware. 
(D) A design lead that reports directly to 
the program manager and is responsible for 
identifying, communicating, and visualizing 
user needs through a human centered design 
process. 
(2) QUALIFICATIONS.—The Secretary shall estab-
lish qualifications for personnel filling these positions 
prior to their selection. The qualifications may not
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include a positive education requirement and must be 
based on technical expertise or experience in delivery 
of software products, to include agile concepts. 
(3) COORDINATION PLAN FOR TESTING AND CER-
TIFICATION ORGANIZATIONS.—The program manager 
shall ensure resources for test and certification orga-
nizations support of iterative development processes. 
(d) PLAN.—The Secretary of Defense or designee shall 
develop a plan for each selected activity under the pilot to 
include the following elements: 
(1) Definition of a product vision, identifying a 
succinct, clearly defined need the software will ad-
dress. 
(2) Definition of a product road map, outlining 
a noncontractual plan that identifies short-term and 
long-term product goals and specific technology solu-
tions to help meet those goals and adjusts to mission 
and user needs at the product owner’s discretion. 
(3) The use of a Broad Agency Announcement, 
Other Transaction Authority, or other rapid merit- 
based solicitation procedure. 
(4) Identification of, and continuous engagement 
with, end users.
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(5) Frequent and iterative end user validation of 
features and usability consistent with the principles 
outlined in the Digital Services Playbook. 
(6) Use of commercial best practices for ad-
vanced computing systems, including, where applica-
ble— 
(A) Automated Testing, Integration, and 
Deployment; 
(B) compliance with applicable commercial 
accessibility standards; 
(C) capability to support modern versions 
of multiple, common web browsers; 
(D) capability to be viewable across com-
monly used end user devices, including mobile 
devices; and 
(E) built-in application monitoring. 
(e) PROGRAM SCHEDULE.—The Secretary shall ensure 
that each selected activity includes— 
(1) award processes that take no longer than 3 
months after a requirement is identified; 
(2) planned frequent and iterative end user vali-
dation of implemented features and their usability; 
(3) delivery of a functional prototype or mini-
mally viable product in 3 months or less from award; 
and
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(4) follow-on delivery of iterative development 
cycles no longer than 4 weeks apart, including secu-
rity testing and configuration management as appli-
cable. 
(f) OVERSIGHT METRICS.—The Secretary shall ensure 
that the selected activities— 
(1) use a modern tracking tool to execute require-
ments backlog tracking; and 
(2) use agile development metrics that, at a min-
imum, track— 
(A) pace of work accomplishment; 
(B) completeness of scope of testing activi-
ties (such as code coverage, fault tolerance, and 
boundary testing); 
(C) product quality attributes (such as 
major and minor defects and measures of key 
performance attributes and quality attributes); 
(D) delivery progress relative to the current 
product roadmap; and 
(E) goals for each iteration. 
(g) DATA RIGHTS.— 
(1) UNCLASSIFIED SOFTWARE.— 
(A) DEPARTMENT OF DEFENSE RIGHTS.— 
The Department of Defense shall obtain suffi-
cient data rights for unclassified software so that
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all custom computer software developed under 
the pilot activities are managed as open source 
software. 
(B) PUBLIC AVAILABILITY.—The contractor 
shall publicly develop and release the source code 
for unclassified custom software in a public re-
pository with a license through which the copy-
right holder provides the rights to use, study, 
reuse, modify, enhance, and distribute the soft-
ware to anyone and for any purpose. 
(2) OTHER
SOFTWARE.—For all other custom 
software delivered under the pilot activities, the De-
partment of Defense shall obtain sufficient data rights 
to enable a third party, other than the pilot con-
tractor, to continue development and maintenance ac-
tivities throughout the program lifecycle. 
(h) RESTRICTIONS.— 
(1) USE OF FUNDS.—No funds made available 
for the selected activities may be expended on esti-
mation or evaluation using source lines of code meth-
odologies. 
(2) CONTRACT TYPES.—The Secretary of Defense 
may not use lowest price technically acceptable con-
tracting methods or cost plus contracts to carry out 
selected activities under this section, and shall encour-
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† HR 2810 PAP
age the use of existing streamlined and flexible con-
tracting arrangements. 
(i) CONSULTATION.—In executing the software devel-
opment activities under subsection (a), the Secretary 
shall— 
(1) use the tools, resources, and expertise of dig-
ital and innovation organizations resident in the De-
partment, such as the Defense Innovation Board, the 
Defense Innovation Unit Experimental, the Defense 
Science Board, the Defense Business Board, the De-
fense Digital Services, federally funded research and 
development centers, research laboratories, and other 
technical, management, and acquisition experts; and 
(2) use, as appropriate, the digital development 
and acquisition expertise of the General Services Ad-
ministration. 
(j) REPORTS.— 
(1) SOFTWARE
DEVELOPMENT
ACTIVITY
COM-
MENCEMENT.— 
(A) IN GENERAL.—Not later than 30 days 
before the commencement of a software develop-
ment activity under subsection (a), the Secretary 
shall submit to the congressional defense commit-
tees a report on the pilot activity.
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(B) ELEMENTS.—The report on a pilot ac-
tivity under this paragraph shall set forth a de-
scription of the pilot activity, including the fol-
lowing information: 
(i) The purpose of the pilot activity. 
(ii) The duration of the pilot activity. 
(iii) The efficiencies and benefits an-
ticipated to accrue to the Government under 
the pilot program. 
(2) SOFTWARE DEVELOPMENT ACTIVITY COMPLE-
TION.— 
(A) IN GENERAL.—Not later than 60 days 
after the completion of a pilot activity, the Sec-
retary shall submit to the congressional defense 
committees a report on the pilot activity. 
(B) ELEMENTS.—The report on a pilot ac-
tivity under this paragraph shall include the fol-
lowing elements: 
(i) A description of results of the pilot 
activity. 
(ii) Such recommendations for legisla-
tive or administrative action as the Sec-
retary considers appropriate in light of the 
pilot activity.
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(k) AGILE ACQUISITION DEFINED.—In this section, the 
term ‘‘agile acquisition’’— 
(1) means acquisition pursuant to a methodology 
for delivering multiple, rapid, incremental capabili-
ties to the user for operational use, evaluation, and 
feedback; and 
(2) involves— 
(A) the incremental development and field-
ing of capabilities, commonly called ‘‘spirals’’, 
‘‘spins’’, or ‘‘sprints’’, which can be measured in 
a few weeks or months; and 
(B) continuous participation and collabora-
tion by users, testers, and requirements authori-
ties. 
SEC. 886. USE OF OPEN SOURCE SOFTWARE. 
(a) OPEN SOURCE SOFTWARE.— 
(1) IN
GENERAL.—Chapter 137 of title 10, 
United States Code, is amended by inserting after sec-
tion 2320 the following new section: 
‘‘§ 2320a. Use of open source software 
‘‘(a) SOFTWARE DEVELOPMENT.—All unclassified cus-
tom-developed computer software and related technical data 
that is not a defense article regulated pursuant to section 
38 of the Arms Export Control Act (22 U.S.C. 2778) and 
that is developed under a contract or other transaction
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† HR 2810 PAP
awarded by the Department of Defense on or after the date 
that is 180 days after the date of the enactment of this sec-
tion shall be managed as open source software unless spe-
cifically waived by the service acquisition executive. 
‘‘(b) RELEASE
OF SOFTWARE
IN PUBLIC REPOSI-
TORY.—The Secretary of Defense shall require the con-
tractor to release source code and related technical data de-
scribed under subsection (a) in a public repository approved 
by the Department of Defense, subject to a license through 
which the copyright holder provides the rights to use, study, 
reuse, modify, enhance, and distribute the software to any-
one and for any purpose. 
‘‘(c) APPLICABILITY TO EXISTING SOFTWARE.—The 
Secretary of Defense shall, where appropriate— 
‘‘(1) seek to negotiate open source licenses to ex-
isting custom-developed computer software with con-
tractors that developed it; and 
‘‘(2) release related source code and technical 
data in a public repository location approved by the 
Department of Defense. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) 
CUSTOM-DEVELOPED
COMPUTER
SOFT-
WARE.—The term ‘custom-developed computer soft-
ware’—
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‘‘(A) means human-readable source code, in-
cluding segregable portions thereof, that is— 
‘‘(i) first produced in the performance 
of a Department of Defense contract, grant, 
cooperative agreement, or other transaction; 
or 
‘‘(ii) developed by a contractor or sub-
contractor exclusively with Federal funds 
(other than an item or process developed 
under a contract or subcontract to which 
regulations under section 9(j)(2) of the 
Small Business Act (15 U.S.C. 638(j)(2)) 
apply); and 
‘‘(B) does not include Commercial Off-The- 
Shelf software, or packaged software developed 
exclusively at private expense, whether delivered 
as a Cloud Service, in binary form, or by any 
other means of software delivery. 
‘‘(2) TECHNICAL
DATA.—The term ‘technical 
data’ has the meaning given the term in section 2302 
of this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended by 
adding after the item relating to section 2320 the fol-
lowing new item: 
‘‘2320a. Use of open source software.’’.
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(b) PRIZE COMPETITION.—The Secretary of Defense 
shall create a prize for a research and develop program or 
other activity for identifying, capturing, and storing exist-
ing Department of Defense custom-developed computer soft-
ware and related technical data. The Secretary of Defense 
shall create an additional prize for improving, repurposing, 
or reusing software to better support the Department of De-
fense mission. The prize programs shall be conducted in ac-
cordance with section 2374a of title 10, United States Code. 
(c) REVERSE ENGINEERING.—The Secretary of De-
fense shall task the Defense Advanced Research Program 
Agency with a project to identify methods to locate and re-
verse engineer Department of Defense custom-developed 
computer software and related technical data for which 
source code is unavailable. 
(d) DEFINITIONS.—In this section: 
(1) 
CUSTOM-DEVELOPED
COMPUTER
SOFT-
WARE.—The term ‘‘custom-developed computer soft-
ware’’— 
(A) means human-readable source code, in-
cluding segregable portions thereof, that is— 
(i) first produced in the performance of 
a Department of Defense contract, grant, co-
operative agreement, or other transaction; 
or
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(ii) developed by a contractor or sub-
contractor exclusively with Federal funds 
(other than an item or process developed 
under a contract or subcontract to which 
regulations under section 9(j)(2) of the 
Small Business Act (15 U.S.C. 638(j)(2)) 
apply); and 
(B) does not include Commercial Off-The- 
Shelf software, or packaged software developed 
exclusively at private expense, whether delivered 
as a Cloud Service, in binary form, or by any 
other means of software delivery. 
(2) TECHNICAL
DATA.—The term ‘‘technical 
data’’ has the meaning given the term in section 2302 
of title 10, United States Code. 
(e) 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 carry out this section and the amendments 
made by this section.
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Subtitle J—Other Matters 
SEC. 891. IMPROVED TRANSPARENCY AND OVERSIGHT 
OVER DEPARTMENT OF DEFENSE RESEARCH, 
DEVELOPMENT, TEST, AND EVALUATION EF-
FORTS AND PROCUREMENT ACTIVITIES RE-
LATED TO MEDICAL RESEARCH. 
The Secretary of Defense may not enter into a con-
tract, grant, or cooperative agreement for congressional spe-
cial interest medical research programs under the congres-
sionally directed medical research program of the Depart-
ment of Defense unless the contract, grant, or cooperative 
agreement meets the following conditions: 
(1) Compliance with the cost and price data re-
quirements under section 2306a of title 10, United 
States Code. 
(2) Compliance with the cost accounting stand-
ards under section 1502 of title 41, United States 
Code. 
(3) Compliance with requirements for full and 
open competition under section 2304 of title 10, 
United States Code, without reliance on one of the ex-
ceptions set forth in subsection (c) of such section.
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SEC. 892. RIGHTS IN TECHNICAL DATA RELATED TO MED-
ICAL RESEARCH. 
The Secretary of Defense may not enter into a con-
tract, grant, or cooperative agreement for congressional spe-
cial interest medical research programs under the congres-
sionally directed medical research program of the Depart-
ment of Defense unless the contract, grant, or cooperative 
agreement provides that the United States Government will 
have the same rights to the technical data to an item or 
process developed under the contract, grant, or cooperative 
agreement as applicable under section 2320(a)(2)(A) of title 
10, United States Code, to items and processes developed 
exclusively with Federal funds where the medical research 
results in medicines and other treatments that will be pro-
cured or otherwise paid for by the Federal Government 
through the Department of Defense, the Department of Vet-
erans Affairs, Medicare, Medicaid, or other Federal Govern-
ment health programs. 
SEC. 893. OVERSIGHT, AUDIT, AND CERTIFICATION FROM 
THE DEFENSE CONTRACT AUDIT AGENCY FOR 
PROCUREMENT 
ACTIVITIES 
RELATED 
TO 
MEDICAL RESEARCH. 
The Secretary of Defense may not enter into a con-
tract, grant, or cooperative agreement for congressional spe-
cial interest medical research programs under the congres-
sionally directed medical research program of the Depart-
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† HR 2810 PAP
ment of Defense unless the contract, grant, or cooperative 
agreement meets the following conditions: 
(1) Prior to obligation of any funds, review by 
and certification from the Defense Contract Audit 
Agency regarding the adequacy of the accounting sys-
tems of the proposed awardee, including a forward 
pricing review of the awardee’s proposal. 
(2) Prior to any payment on the contract, grant, 
or cooperative agreement, performance by the Defense 
Contract Audit Agency of an incurred cost audit. 
SEC. 894. REQUIREMENTS FOR DEFENSE CONTRACT AUDIT 
AGENCY REPORT. 
Subparagraph (E) of section 2313a(a)(2) of title 10, 
United States Code, is amended to read as follows: 
‘‘(E) the total number and dollar value of 
audits that are pending for a period longer than 
18 months as of the end of the fiscal year covered 
by the report, including a breakdown by type of 
audit;’’. 
SEC. 895. PROTOTYPE PROJECTS TO DIGITIZE DEFENSE AC-
QUISITION 
REGULATIONS, 
POLICIES, 
AND 
GUIDANCE, AND EMPOWER USER TAILORING 
OF ACQUISITION PROCESS. 
(a) IN GENERAL.—The Secretary of Defense, acting 
through the Under Secretary of Defense for Research and
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Engineering, shall conduct development efforts to develop 
prototypes to digitize defense acquisition regulations, poli-
cies, and guidance and to develop a digital decision support 
tool that facilitates the ability of users to tailor programs 
in accordance with existing laws, regulations, and guid-
ance. 
(b) ELEMENTS.—Under the prototype projects, the Sec-
retary shall— 
(1) convert existing acquisition policies, guides, 
memos, templates, and reports to an online, inter-
active digital format to create a dynamic, integrated, 
and authoritative knowledge environment for pur-
poses of assisting program managers and the acquisi-
tion workforce of the Department of Defense to navi-
gate the complex lifecycle for each major type of ac-
quisition program or activity of the Department; 
(2) as part of this digital environment, create a 
digital decision support capability that uses decision 
trees and tailored acquisition models to assist users to 
develop strategies and facilitate coordination and ap-
provals; and 
(3) as part of this environment, establish a 
foundational data layer to enable advanced data ana-
lytics on the acquisition enterprise of the Department,
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to include business process reengineering to improve 
productivity. 
(c) USE
OF PROTOTYPES
IN ACQUISITION ACTIVI-
TIES.—The Under Secretary of Defense for Research and 
Engineering shall encourage the use of these prototypes to 
model, develop, and test any procedures, policies, instruc-
tions, or other forms of direction and guidance that may 
be required to support acquisition training, practices, and 
policies of the Department of Defense. 
(d) FUNDING.—The Secretary may use the authority 
under section 1705(e)(4)(B) of title 10, United States Code, 
to develop acquisition support prototypes and tools under 
this program. 
SEC. 896. PILOT PROGRAM FOR ADOPTION OF ACQUISITION 
STRATEGY FOR DEFENSE BASE ACT INSUR-
ANCE. 
(a) IN GENERAL.—The Secretary of Defense shall es-
tablish a pilot program for the United States Army Corps 
of Engineers (USACE) for purposes of adopting an acquisi-
tion strategy for insurance required by the Defense Base 
Act (42 U.S.C. 1651 et seq.) in order to minimize the cost 
of such insurance to the Department of Defense. 
(b) CRITERIA.—The pilot program acquisition strat-
egy developed pursuant to subsection (a) shall address the 
following criteria:
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† HR 2810 PAP
(1) Minimize overhead costs associated with ob-
taining insurance required by the Defense Base Act, 
such as direct or indirect costs for contract manage-
ment and contract administration. 
(2) Minimize costs for coverage of such insurance 
consistent with realistic assumptions regarding the 
likelihood of incurred claims by contractors of the De-
partment and USACE. 
(3) Provide for a correlation of premiums paid 
in relation to claims incurred that is modeled on best 
practices in government and industry for similar 
kinds of insurance. 
(4) Provide for a competitive marketplace for in-
surance required by the Defense Base Act to the max-
imum extent practicable. 
(c) SINGLE CONTRACT.— 
(1) IN GENERAL.—In adopting the pilot program 
acquisition strategy pursuant to subsection (a), the 
Secretary shall enter into a single Defense Base Act 
insurance contract for USACE for contracts involving 
performance in all theaters, and potentially including 
combat operations. 
(2) SCOPE.—The contract shall extend to all cat-
egories of insurance coverage, including construction, 
aviation, security, and services contracts.
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† HR 2810 PAP
(3) TERM.—The contract entered into under this 
subsection shall be in effect for at least 3 years, or as 
considered appropriate by the Secretary. 
(d) REPORT.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary 
shall submit to the congressional defense committees a 
report on the pilot program and the acquisition strat-
egy adopted pursuant to subsection (a). 
(2) ELEMENTS.—The report required under 
paragraph (1) shall include— 
(A) a discussion of each of the options con-
sidered and the extent to which each option ad-
dresses the criteria identified under subsection 
(b); and 
(B) a plan to implement within 18 months 
after the date of enactment of this Act the acqui-
sition strategy adopted by the Secretary. 
(e) REVIEW AND RENEWAL OF PILOT PROGRAM AND 
ACQUISITION STRATEGY.—The Secretary shall review the 
pilot program and may renew the program, provided that 
the objectives have been reached.
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SEC. 897. PHASE III AWARDS. 
Section 9(r)(4) of the Small Business Act (15 U.S.C. 
638(r)(4)) is amended by striking ‘‘shall issue Phase III 
awards’’ and inserting the following: ‘‘shall— 
‘‘(A) consider an award under the SBIR 
program or the STTR program to satisfy the re-
quirements under section 2304 of title 10, United 
States Code, and any other applicable competi-
tion requirements; and 
‘‘(B) issue, without further justification, 
Phase III awards’’. 
SEC. 898. PILOT PROGRAM FOR STREAMLINED TECH-
NOLOGY TRANSITION FROM THE SBIR AND 
STTR PROGRAMS OF THE DEPARTMENT OF 
DEFENSE. 
(a) DEFINITIONS.—In this section— 
(1) the terms ‘‘commercialization’’, ‘‘Federal 
agency’’, ‘‘Phase I’’, ‘‘Phase II’’, ‘‘Phase III’’, 
‘‘SBIR’’, and ‘‘STTR’’ have the meanings given those 
terms in section 9(e) of the Small Business Act (15 
U.S.C. 638(e)); 
(2) the term ‘‘covered small business concern’’ 
means— 
(A) a small business concern that completed 
a Phase II award under the SBIR or STTR pro-
gram of the Department; or
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† HR 2810 PAP
(B) a small business concern that— 
(i) completed a Phase I award under 
the SBIR or STTR program of the Depart-
ment; and 
(ii) a contracting officer for the De-
partment recommends for inclusion in a 
multiple award contract described in sub-
section (b); 
(3) the term ‘‘Department’’ means the Depart-
ment of Defense; 
(4) the term ‘‘multiple award contract’’ has the 
meaning given the term in section 3302(a) of title 41, 
United States Code; 
(5) the term ‘‘pilot program’’ means the pilot 
program established under subsection (b); and 
(6) the term ‘‘small business concern’’ has the 
meaning given the term in section 3 of the Small 
Business Act (15 U.S.C. 632). 
(b) ESTABLISHMENT.—Not later than 180 days after 
the date of enactment of this Act, the Secretary of Defense 
shall establish a pilot program under which the Department 
shall award multiple award contracts to covered small busi-
ness concerns for the purchase of technologies, supplies, or 
services that the covered small business concern has devel-
oped through the SBIR or STTR program.
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† HR 2810 PAP
(c) WAIVER OF COMPETITION IN CONTRACTING ACT 
REQUIREMENTS.—The Secretary of Defense may establish 
procedures to waive provisions of section 2304 of title 10, 
United States Code, for purposes of carrying out the pilot 
program. 
(d) USE OF CONTRACT VEHICLE.—A multiple award 
contract described in subsection (b) may be used by any 
service or component of the Department. 
(e) TERMINATION.—The pilot program established 
under this section shall terminate on September 30, 2023. 
(f) RULE OF CONSTRUCTION.—Nothing in this section 
shall be construed to prevent the commercialization of prod-
ucts and services produced by a small business concern 
under an SBIR or STTR program of a Federal agency 
through— 
(1) direct awards for Phase III of an SBIR or 
STTR program; or 
(2) any other contract vehicle. 
SEC. 899. ANNUAL REPORT ON LIMITATION OF SUBCON-
TRACTOR INTELLECTUAL PROPERTY RIGHTS. 
Not later than 180 days after the date of the enactment 
of this Act, and annually thereafter for five years, the Sec-
retary of Defense shall submit to the congressional defense 
committees a report listing all contracts entered into during 
the previous fiscal year using procedures under part 15 of
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the Federal Acquisition Regulation where the prime con-
tractor limited the intellectual property rights of one or 
more subcontractors without being required to do so by the 
United States Government. 
SEC. 899A. EXTENSION FROM 20 TO 30 YEARS OF MAXIMUM 
TOTAL PERIOD FOR DEPARTMENT OF DE-
FENSE 
CONTRACTS 
FOR 
STORAGE, 
HAN-
DLING, OR DISTRIBUTION OF LIQUID FUELS 
AND NATURAL GAS. 
(a) EXTENSION.—Section 2922(b) of title 10, United 
States Code, is amended by striking ‘‘a total of 20 years’’ 
and inserting ‘‘a total of 30 years’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2027, and shall 
apply with respect to contracts entered into on or after such 
date. 
SEC. 899B. EXCEPTION FOR DEPARTMENT OF DEFENSE 
CONTRACTS 
FROM 
REQUIREMENT 
THAT 
BUSINESS OPERATIONS CONDUCTED UNDER 
GOVERNMENT CONTRACTS ACCEPT AND DIS-
PENSE $1 COINS. 
Section 5112(p)(1) of title 31, United States Code, is 
amended by inserting ‘‘, with the exception of business oper-
ations conducted by any entity under a contract with the 
Department of Defense,’’ before ‘‘shall take such action’’.
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SEC. 899C. INVESTING IN RURAL SMALL BUSINESSES. 
(a) FLEXIBILITY FOR RESIDENCY IN HUBZONES.— 
Section 3(p)(5)(A)(i)(I) of the Small Business Act (15 
U.S.C. 632(p)(5)(A)(i)(I)) is amended by striking ‘‘35 per-
cent’’ each place that term appears and inserting ‘‘33 per-
cent’’. 
(b) ENABLING LOCAL COMMUNITIES TO MAXIMIZE 
ECONOMIC
POTENTIAL.—The Small Business Act (15 
U.S.C. 631 et seq.) is amended— 
(1) in section 3(p)(1) (15 U.S.C. 632(p)(1))— 
(A) in subparagraph (E), by striking ‘‘or’’ 
at the end; 
(B) by redesignating subparagraph (F) as 
subparagraph (G); and 
(C) by inserting after subparagraph (E) the 
following: 
‘‘(F) another qualified area designated by 
the Administrator under section 31(d); or’’; and 
(2) in section 31 (15 U.S.C. 657a)— 
(A) by redesignating subsection (d) as sub-
section (e); and 
(B) by inserting after subsection (c) the fol-
lowing: 
‘‘(d) OTHER QUALIFIED AREAS.— 
‘‘(1) DEFINITIONS.—In this subsection—
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‘‘(A) the term ‘covered area’ means an area 
in a State— 
‘‘(i) that is located outside of an ur-
banized area, as determined by the Bureau 
of the Census; and 
‘‘(ii) with a population of not more 
than 50,000; 
‘‘(B) the term ‘governor’ means the chief ex-
ecutive of a State; and 
‘‘(C) the term ‘State’ means each of the sev-
eral States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Virgin Islands, 
Guam, the Commonwealth of the Northern Mar-
iana Islands, and American Samoa. 
‘‘(2) DESIGNATION.—A governor may petition 
the Administrator to designate one or more covered 
areas as a HUBZone if the average unemployment 
rate of each covered area is not less than 120 percent 
of the average unemployment rate of the United 
States or of the State in which the covered area is lo-
cated, whichever is less, based on the most recent data 
available from the American Community Survey con-
ducted by the Bureau of the Census.
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‘‘(3) CRITERIA.—In reviewing a petition sub-
mitted by a governor under paragraph (2), the Ad-
ministrator may consider— 
‘‘(A) the potential for job creation and in-
vestment; 
‘‘(B) the demonstrated interest of small 
business concerns in the covered area to partici-
pate in the HUBZone program established under 
section 31; and 
‘‘(C) the consideration by State and local 
government officials of a HUBZone as part of 
an economic development strategy. 
‘‘(4) PETITION.—With respect to a petition sub-
mitted by a governor to the Administrator under 
paragraph (2)— 
‘‘(A) the governor may submit not more 
than 1 petition in a fiscal year unless the Ad-
ministrator determines that an additional peti-
tion from the State of the governor is appro-
priate; 
‘‘(B) the governor may not submit a peti-
tion for more than 10 percent of the total num-
ber of covered areas in the State of the governor; 
and
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‘‘(C) if the Administrator grants the peti-
tion and designates one or more covered areas as 
a HUBZone, the governor shall, not less fre-
quently than annually, submit data to the Ad-
ministrator certifying that each covered area 
continues to meet the requirements of clauses (i) 
and (ii) of paragraph (1)(A). 
‘‘(5) PROCESS.—The Administrator shall estab-
lish procedures— 
‘‘(A) to ensure that the Administration ac-
cepts petitions under paragraph (2) from all 
States each fiscal year; and 
‘‘(B) to provide technical assistance, before 
the filing of a petition under paragraph (2), to 
a governor who is interested in filing such a pe-
tition.’’. 
(c) ENSURING TIMELY CONSIDERATION OF HUBZONE 
APPLICATIONS.—Section 3(p)(5) of the Small Business Act 
(15 U.S.C. 632(p)(5)) is amended by adding at the end the 
following: 
‘‘(C) REVIEW OF APPLICATIONS.—Not later 
than 60 days after the date on which the Admin-
istrator receives an application from a small 
business concern to be certified as a qualified 
HUBZone small business concern under sub-
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paragraph (A)(i), the Administrator shall ap-
prove or deny the application.’’. 
TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND 
MANAGEMENT 
Subtitle A—Office of the Secretary 
of Defense and Related Matters 
SEC. 901. CHIEF MANAGEMENT OFFICER OF THE DEPART-
MENT OF DEFENSE. 
(a) CHIEF MANAGEMENT OFFICER.— 
(1) IN GENERAL.—Effective February 1, 2018, 
section 132a of title 10, United States Code, is 
amended to read as follows: 
‘‘§ 132a. Chief Management Officer 
‘‘(a) APPOINTMENT.—There is a Chief Management 
Officer of the Department of Defense, appointed from civil-
ian life by the President, by and with the advice and con-
sent of the Senate. The Chief Management Officer shall be 
appointed from among persons who have an extensive man-
agement or business background and experience with man-
aging large or complex organizations. A person may not 
be appointed as Chief Management Officer within seven 
years after relief from active duty as a commissioned officer 
of a regular component of an armed force.
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‘‘(b) RESPONSIBILITIES.—Subject to the authority, di-
rection, and control of the Secretary of Defense, the Chief 
Management Officer shall perform such duties and exercise 
such powers as the Secretary may prescribe, including— 
‘‘(1) serving as the chief management officer of 
the Department of Defense with the mission of man-
aging the business operations of the Department; 
‘‘(2) serving as the principal advisor to the Sec-
retary on establishing policies for, and directing, all 
business operations of the Department, including 
business transformation, business planning and proc-
esses, performance management, and business infor-
mation technology management and improvement ac-
tivities and programs, including the allocation of re-
sources for business operations and unifying business 
management efforts across the Department; 
‘‘(3) exercising authority, direction, and control 
over the Defense Agencies and Department of Defense 
Field Activities providing shared business services for 
the Department that are designated by the Secretary 
for purposes of this paragraph; 
‘‘(4) as of January 1, 2019— 
‘‘(A) serving as the Chief Information Offi-
cer of the Department for purposes of section 
2222 of this title;
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‘‘(B) administering the responsibilities and 
duties specified in sections 11315 and 11319 of 
title 40, section 3506(a)(2) of title 44, and sec-
tion 2223(a) of this title for business systems and 
management; and 
‘‘(C) any responsibilities, duties, and pow-
ers relating to business systems or management 
that are exercisable by a chief information officer 
for the Department, other than those responsibil-
ities, duties, and powers of a chief information 
officer that are vested in the Chief Information 
Warfare Officer by section 142 of this title; 
‘‘(5) serving as the official with principal re-
sponsibility in the Department for providing for the 
availability of common, usable, Defense-wide data sets 
with applications such as improving acquisition out-
comes and personnel management; and 
‘‘(6) the authority to direct the Secretaries of the 
military departments and the heads of all other ele-
ments of the Department with regard to matters for 
which the Chief Management Officer has responsi-
bility under this section. 
‘‘(c) PRECEDENCE.—The Chief Management Officer 
takes precedence in the Department of Defense after the Sec-
retary of Defense and the Deputy Secretary of Defense.’’.
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(2) CLERICAL AMENDMENT.—Effective February 
1, 2018, the table of sections at the beginning of chap-
ter 4 of such title is amended by striking the item re-
lating to section 132a and inserting the following new 
item: 
‘‘132a. Chief Management Officer.’’. 
(b) CONFORMING REPEAL OF PRIOR AUTHORITIES ON 
CMO.— 
(1) IN
GENERAL.—Effective on January 31, 
2018, subsection (c) of section 901 of the National De-
fense Authorization Act for Fiscal Year 2017 (Public 
Law 114–328; 130 Stat. 2341; 10 U.S.C. 131 note) is 
repealed, and the amendments to be made by para-
graph (4) of that subsection shall not be made. 
(2) FURTHER CONFORMING AMENDMENTS.—Ef-
fective on February 1, 2018, section 132 of title 10, 
United States Code, is amended— 
(A) by striking subsection (c); and 
(B) by redesignating subsection (d) as sub-
section (c). 
(c) CONFORMING AMENDMENTS ON PRECEDENCE IN 
DOD.—Effective on February 1, 2018, and immediately 
after the coming into effect of the amendments made by sec-
tion 901 of the National Defense Authorization Act for Fis-
cal Year 2017—
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(1) section 131(b) of title 10, United States Code, 
is amended— 
(A) 
by 
redesignating 
paragraphs 
(2) 
through (9) as paragraphs (3) through (10), re-
spectively; and 
(B) by inserting after paragraph (1) the fol-
lowing new paragraph (2): 
‘‘(2) The Chief Management Officer of the De-
partment of Defense.’’; 
(2) section 133a(c) of such title is amended— 
(A) in paragraph (1), by striking ‘‘and the 
Deputy Secretary of Defense’’ and inserting ‘‘, 
the Deputy Secretary of Defense, and the Chief 
Management Officer of the Department of De-
fense’’; and 
(B) in paragraph (2), by inserting ‘‘the 
Chief Management Officer,’’ after ‘‘the Deputy 
Secretary,’’; and 
(3) section 133b(c) of such title is amended— 
(A) in paragraph (1), by inserting ‘‘the 
Chief Management Officer of the Department of 
Defense,’’ after ‘‘the Deputy Secretary of De-
fense,’’; and
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(B) in paragraph (2), by inserting ‘‘the 
Chief Management Officer,’’ after ‘‘the Deputy 
Secretary,’’. 
(d) EXECUTIVE SCHEDULE LEVEL II.—Effective on 
February 1, 2018, and immediately after the coming into 
effect of the amendment made by section 901(h) of the Na-
tional Defense Authorization Act for Fiscal Year 2017, sec-
tion 5313 of title 5, United States Code, is amended by in-
serting before the item relating to the Under Secretary of 
Defense for Research and Engineering the following new 
item: 
‘‘Chief Management Officer of the Department of 
Defense.’’. 
(e) SERVICE OF INCUMBENT DEPUTY CHIEF MANAGE-
MENT OFFICER AS CHIEF MANAGEMENT OFFICER UPON 
COMMENCEMENT
OF LATTER POSITION WITHOUT FUR-
THER APPOINTMENT.—The individual serving in the posi-
tion of Deputy Chief Management Officer of the Department 
of Defense as of February 1, 2018, may continue to serve 
as Chief Management Officer of the Department of Defense 
under section 132a of title 10, United States Code (as 
amended by subsection (a)), commencing as of that date 
without further appointment pursuant to such section 132a. 
(f) REPORT ON DEFENSE AGENCIES AND FIELD AC-
TIVITIES PROVIDING SHARED BUSINESS SERVICES.—Not
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later than January 15, 2018, the Secretary of Defense shall 
submit to the congressional defense committees a report 
specifying each Defense Agency and Department of Defense 
Field Activity providing shared business services for the De-
partment of Defense that is to be designated by the Sec-
retary for purposes of subsection (b)(3) of section 132a of 
title 10, United States Code (as so amended), as of the com-
ing into effect of such section 132a. 
(g) NOTICE TO CONGRESS ON TRANSFER OF OVER-
SIGHT
OF DEFENSE AGENCIES
AND FIELD ACTIVITIES 
WITH BUSINESS-SUPPORT FUNCTIONS TO CMO.—Upon the 
transfer of responsibility for oversight of a Defense Agency 
or Department of Defense Field Activity specified in sub-
section (c) of section 132a of title 10, United States Code 
(as so amended), to the Chief Management Officer of the 
Department of Defense, the Secretary of Defense shall sub-
mit to the congressional defense committees a notice on the 
transfer, including the Defense Agency or Field Activity 
subject to the transfer and a description of the nature and 
scope of the responsibility for oversight transferred. 
SEC. 902. REALIGNMENT OF RESPONSIBILITIES, DUTIES, 
AND POWERS OF CHIEF INFORMATION OFFI-
CER OF THE DEPARTMENT OF DEFENSE. 
(a) IN GENERAL.—Effective on January 1, 2019, the 
responsibilities, duties, and powers vested in the Chief In-
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† HR 2810 PAP
formation Officer of the Department of Defense as of Decem-
ber 31, 2018, are realigned as follows: 
(1) There is vested in the Chief Information 
Warfare Officer of the Department of Defense the re-
sponsibilities, duties, and powers provided for by sec-
tion 142 of title 10, United States Code (as amended 
by subsection (b)). 
(2) There is vested in the Chief Management Of-
ficer of the Department of Defense any responsibil-
ities, duties, and powers vested in the Chief Informa-
tion Officer of the Department of Defense as of De-
cember 31, 2018, that are not vested in the Chief In-
formation Warfare Officer by paragraph (1) and such 
section 142. 
(b) CHIEF INFORMATION WARFARE OFFICER.— 
(1) IN
GENERAL.—Section 142 of title 10, 
United States Code, is amended to read as follows: 
‘‘§ 142. Chief Information Warfare Officer 
‘‘(a) IN GENERAL.—(1) There is a Chief Information 
Warfare Officer of the Department of Defense, who shall be 
appointed from among civilians who are qualified to serve 
as the Chief Information Warfare Officer by the President, 
by and with the advice and consent of the Senate.
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‘‘(2) The Chief Information Warfare Officer shall re-
port directly to the Secretary of Defense in the performance 
of duties under this section. 
‘‘(b) RESPONSIBILITY AND AUTHORITY.—(1) Subject 
to the authority, direction, and control of the Secretary of 
Defense, the Chief Information Warfare Officer is respon-
sible for all matters relating to the information environment 
of the Department of Defense and has the authority to estab-
lish policy for, and direct the Secretaries of the military 
departments and the heads of all other elements of the De-
partment relating to, the matters as follow: 
‘‘(A) Space and space launch systems. 
‘‘(B) Communications networks and information 
technology (other than business systems). 
‘‘(C) National security systems. 
‘‘(D) Information assurance and cybersecurity. 
‘‘(E) Electronic warfare and cyber warfare. 
‘‘(F) Nuclear command and control and senior 
leadership communications systems. 
‘‘(G) Command and control systems and net-
works. 
‘‘(H) The electromagnetic spectrum. 
‘‘(I) Positioning, navigation, and timing. 
‘‘(J) Any other matters assigned to the Chief In-
formation Officer of the Department of Defense, not
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relating to business systems or management, in sec-
tions 2223 and 2224 of this title, sections 11315 and 
11319 of title 40, and sections 3506 and 3544 of title 
44. 
‘‘(2) In addition to the responsibilities in paragraph 
(1), the responsibilities of the Chief Information Warfare 
Officer include— 
‘‘(A) exercising authority, direction, and control 
over the missions, programs, and organizational ele-
ments pertaining to information assurance (formally 
Information Assurance Directorate) of the National 
Security Agency; 
‘‘(B) exercising authority, direction, and control 
over the Defense Information Systems Agency, or any 
successor organization, for the matters described in 
paragraph (1); and 
‘‘(C) responsibilities for policy, oversight, guid-
ance, and coordination for all Department matters re-
lating to the electromagnetic spectrum, including— 
‘‘(i) coordination with other Federal agen-
cies and the private sector; 
‘‘(ii) coordination for classified programs; 
and
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† HR 2810 PAP
‘‘(iii) in coordination with the Under Sec-
retary for Personnel and Health, the spectrum 
management workforce. 
‘‘(3) Notwithstanding the exemptions for the Depart-
ment of Defense in section 11319 of title 40, the authority 
of the Chief Information Warfare Officer to direct the secre-
taries of the military departments for information warfare 
matters as provided in paragraph (1) shall include— 
‘‘(A) playing a significant and directive role in 
the decision processes for all annual and multi-year 
planning, programming, budgeting, and execution de-
cisions, including the authority to realign the ele-
ments of the budgets and budget requests of the mili-
tary departments that pertain to the responsibilities 
of the Chief Information Warfare Officer; 
‘‘(B) reviewing and approving any funding re-
quest or reprogramming request; 
‘‘(C) ensuring that the military departments 
comply with Government and Department standards 
on a matter described in paragraph (1) or (2); 
‘‘(D) reviewing and approving the appointment 
of any other employee who functions in the capacity 
of a Chief Information Officer or a Chief Information 
Warfare Officer for any component within the De-
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† HR 2810 PAP
partment, except for the Chief Management Officer of 
the Department of Defense; and 
‘‘(E) participating in all meetings, management, 
and decision-making forums on issues pertaining to 
any matter described in paragraph (1) or (2). 
‘‘(4) The Chief Information Warfare Officer shall over-
see and may require that programs of the military depart-
ments comply with such direction and standards as the 
Chief Information Warfare Officer may establish relating 
to a matter described in paragraph (1) or (2). 
‘‘(5) The Chief Information Warfare Officer shall per-
form such additional duties and exercise such additional 
powers as the Secretary may prescribe. 
‘‘(c) CHIEF INFORMATION OFFICER
FOR CERTAIN 
PURPOSES.—The Chief Information Warfare Officer— 
‘‘(1) is the Chief Information Officer of the De-
partment of Defense for purposes of 3554(a)(3) of title 
44 and section 2224 of this title; and 
‘‘(2) in coordination with the Chief Management 
Officer of the Department of Defense, is the Chief In-
formation Officer of the Department of Defense for 
purposes of section 11315 of title 40 and section 2223 
of this title. 
‘‘(d) PRINCIPAL CYBER ADVISOR.—In addition to any 
other duties under this section, the Chief Information War-
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† HR 2810 PAP
fare Officer shall serve as Principal Cyber Advisor under 
section 932(c) of the National Defense Authorization Act for 
Fiscal Year 2014 (10 U.S.C. 2224 note). 
‘‘(e) PRINCIPAL DEPARTMENT OF DEFENSE SPACE 
ADVISOR.—In addition to any other duties under this sec-
tion, the Chief Information Warfare Officer shall perform 
the duties of the Principal Department of Defense Space 
Advisor in accordance with Department of Defense Direc-
tive 5100.96 and any succeeding directive. 
‘‘(f) COLLABORATIVE MECHANISMS.—(1) The Sec-
retary of Defense shall establish collaboration mechanisms 
between the Chief Information Warfare Officer and the 
Under Secretary of Defense for Intelligence, the Under Sec-
retary of Defense for Policy, the Chairman of the Joint 
Chiefs of Staff, and the Assistant Secretary of Defense for 
Public Affairs for purposes of developing and overseeing the 
execution of offensive and defensive information warfare 
strategies, plans, programs, and operations. 
‘‘(2) The strategies, plans, programs and operations 
shall appropriately integrate cyber, electronic, and electro-
magnetic spectrum warfare, military deception, military 
information support operations, and public affairs to con-
duct, counter, and deter information warfare. 
‘‘(g) PRECEDENCE IN DOD.—(1) The Chief Informa-
tion Warfare Officer shall take precedence in the Depart-
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† HR 2810 PAP
ment of Defense with the officials serving in positions speci-
fied in section 131(b)(2) of this title. 
‘‘(2) The officials serving in positions specified in such 
section and the Chief Information Warfare Officer take 
precedence among themselves in the order prescribed by the 
Secretary.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 4 of such title is 
amended by striking the item relating to section 142 
and inserting the following new item: 
‘‘142. Chief Information Warfare Officer.’’. 
(3) EXECUTIVE
SCHEDULE
LEVEL
II.—Section 
5313 of title 5, United States Code, is amended by in-
serting after the item relating to the Deputy Secretary 
of Defense the following new item: 
‘‘Chief Information Warfare Officer of the De-
partment of Defense.’’. 
(4) REFERENCES.—Any reference to the Chief 
Information Officer of the Department of Defense in 
any law, regulation, map, document, record, or other 
paper of the United States in that official’s capacity 
as the official responsible for the information security 
and information dominance of the Department of De-
fense shall be deemed to be a reference to Chief Infor-
mation Warfare Officer of the Department of Defense.
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(5) PRINCIPAL CYBER ADVISOR.—Paragraph (1) 
of section 932(c) of the National Defense Authoriza-
tion Act for Fiscal Year 2014 (Public Law 113–66; 
127 Stat. 829; 10 U.S.C. 2224 note) is amended to 
read as follows: 
‘‘(1) IN GENERAL.—The Chief Information War-
fare Officer of the Department of Defense under sec-
tion 142 of title 10, United States Code, shall serve 
as the Principal Cyber Advisor to act as the principal 
advisor to the Secretary on military cyber forces and 
activities.’’. 
(6) STANDARDS FOR NETWORKS.—A military de-
partment may not develop or procure a network that 
does not fully comply with such standards as the 
Chief Information Warfare Officer under section 142 
of title 10, United States Code (as amended by para-
graph (1)), may establish relating to a matter de-
scribed in subsection (b) of such section. 
(7) ALTERNATIVE
PROPOSAL.—Not later than 
March 1, 2018, the Secretary of Defense shall submit 
to the congressional defense committees a proposal for 
such alternatives or modifications to the realignment 
of responsibilities required by section 142 of title 10, 
United States Code (as so amended), as the Secretary 
considers appropriate, together with an implementa-
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† HR 2810 PAP
tion plan for such proposal. The proposal may not be 
carried out unless approved by statute. 
(8) QUARTERLY
BRIEFING
ON
IMPLEMENTA-
TION.—Not later than January 30, 2018, and every 
90 days thereafter through January 1, 2019, the Sec-
retary shall provide to the congressional defense com-
mittees a briefing on the status of the implementation 
of the Chief Information Warfare Officer of the De-
partment of Defense under section 142 of title 10, 
United States Code (as so amended), during the pre-
ceding 90 days. 
(9) EFFECTIVE DATE.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), this subsection and the 
amendments made by this subsection shall take 
effect on January 1, 2019. 
(B) INTERIM
MATTERS.—Paragraphs (7) 
and (8) of this subsection shall take effect on the 
date of the enactment of this Act.
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† HR 2810 PAP
SEC. 903. CLARIFICATION OF AUTHORITY OF UNDER SEC-
RETARY OF DEFENSE FOR ACQUISITION AND 
SUSTAINMENT WITH RESPECT TO SERVICE 
ACQUISITION PROGRAMS FOR WHICH THE 
SERVICE ACQUISITION EXECUTIVE IS THE 
MILESTONE DECISION AUTHORITY. 
Effective on February 1, 2018, and immediately after 
the coming into effect of the amendment made by section 
901(b) of the National Defense Authorization Act for Fiscal 
Year 2017 (Public Law 114–328), subsection (b)(6) of sec-
tion 133b of title 10, United States Code, as added by such 
section 901(b), is amended by striking ‘‘supervisory author-
ity’’ and inserting ‘‘advisory authority’’. 
SEC. 904. EXECUTIVE SCHEDULE MATTERS RELATING TO 
UNDER SECRETARY OF DEFENSE FOR ACQUI-
SITION AND SUSTAINMENT. 
(a) INAPPLICABILITY OF PENDING AMENDMENT.—The 
amendment to be made by section 901(h) of the National 
Defense Authorization Act for Fiscal Year 2017 (Public 
Law 114–328; 130 Stat. 2342) with regard to the Under 
Secretary of Defense for Acquisition and Sustainment shall 
not be made. 
(b) EXECUTIVE SCHEDULE LEVEL III.—Effective on 
February 1, 2018, section 5314 of title 5, United States 
Code, is amended by inserting before the item relating to 
the Under Secretary of Defense for Policy the following:
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† HR 2810 PAP
‘‘Under Secretary of Defense for Acquisition and 
Sustainment.’’. 
SEC. 905. TECHNICAL AMENDMENT. 
Section 901(a) of the National Defense Authorization 
Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 
2339; 10 U.S.C. 133a note) is amended— 
(1) by striking ‘‘RESEARCH
AND ENGINEER-
ING.—’’ and all that follows through ‘‘Effective on 
February 1, 2018’’ and inserting ‘‘RESEARCH AND 
ENGINEERING.—Effective on February 1, 2018’’; and 
(2) by striking paragraph (2). 
SEC. 906. REDESIGNATION OF UNDER SECRETARY OF DE-
FENSE FOR PERSONNEL AND READINESS AS 
UNDER SECRETARY OF DEFENSE FOR PER-
SONNEL AND HEALTH. 
(a) REDESIGNATION.— 
(1) IN
GENERAL.—Section 136 of title 10, 
United States Code, is amended by striking ‘‘and 
Readiness’’ each place it appears and inserting ‘‘and 
Health’’. 
(2) HEADING AMENDMENT.—The heading of such 
section is amended to read as follows:
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† HR 2810 PAP
‘‘§ 136. Under Secretary of Defense for Personnel and 
Health’’. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 4 of such title is 
amended by striking the item relating to section 136 
and inserting the following new item: 
‘‘136. Under Secretary of Defense for Personnel and Health.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) TITLE 10.— 
(A) Subparagraph (D) of section 131(b)(2) 
of title 10, United States Code, is amended to 
read as follows: 
‘‘(D) The Under Secretary of Defense for 
Personnel and Health.’’. 
(B) Section 137(c) of such title is amended 
by striking ‘‘and Readiness’’ and inserting ‘‘and 
Health’’. 
(2) EXECUTIVE SCHEDULE LEVEL III.—Section 
5314 of title 5, United States Code, is amended by 
striking the item relating to the Under Secretary of 
Defense for Personnel and Readiness and inserting 
the following new item: 
‘‘Under Secretary of Defense for Personnel and 
Health.’’. 
(c) REFERENCES.—Any reference to the Under Sec-
retary of Defense for Personnel and Readiness in any law,
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† HR 2810 PAP
regulation, map, document, record, or other paper of the 
United States shall be deemed to be a reference to the Under 
Secretary of Defense for Personnel and Health. 
SEC. 907. QUALIFICATIONS FOR APPOINTMENT AND ADDI-
TIONAL DUTIES AND POWERS OF CERTAIN 
OFFICIALS WITHIN THE OFFICE OF THE 
UNDER 
SECRETARY 
OF 
DEFENSE 
(COMP-
TROLLER). 
(a) 
UNDER
SECRETARY
OF
DEFENSE
(COMP-
TROLLER).— 
(1) QUALIFICATION
FOR
APPOINTMENT.—Sub-
section (a) of section 135 of title 10, United States 
Code, is amended— 
(A) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2)(A) Any individual appointed as Under Secretary 
of Defense (Comptroller) shall be an individual who— 
‘‘(i) has significant financial management serv-
ice in— 
‘‘(I) a Federal or State agency that received 
an audit with an unqualified opinion on such 
agency’s financial statements during the time of 
such individual’s service; or
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† HR 2810 PAP
‘‘(II) a public company that received an 
audit with an unqualified opinion on such com-
pany’s financial statements during the time of 
such individual’s service; or 
‘‘(ii) has served as chief financial officer, deputy 
chief financial officer, or an equivalent executive-level 
position with direct authority for financial manage-
ment in a large public or private sector organization. 
‘‘(B) In this paragraph, the term ‘public company’ has 
the meaning given the term ‘issuer’ in section 2(7) of the 
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(7)).’’. 
(2) DUTIES AND POWERS.—Such section is fur-
ther amended— 
(A) by redesignating subsections (d) and (e) 
as subsections (e) and (f), respectively; and 
(B) by inserting after subsection (c) the fol-
lowing new subsection (d): 
‘‘(d) In addition to any duties under subsection (c), 
the Under Secretary of Defense (Comptroller) shall, subject 
to the authority, direction, and control of the Secretary of 
Defense, do the following: 
‘‘(1) Provide guidance and instruction on an-
nual performance plans and evaluations to the fol-
lowing:
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‘‘(A) The Assistant Secretaries of the mili-
tary departments for financial management. 
‘‘(B) Any other official of an agency, orga-
nization, or element of the Department of De-
fense with responsibility for financial manage-
ment. 
‘‘(2) Give directions to the military departments, 
Defense Agencies, and other organizations and ele-
ments of the Department of Defense regarding their 
financial statements and the audit and audit readi-
ness of such financial statements.’’. 
(b) DEPUTY CHIEF FINANCIAL OFFICER.— 
(1) QUALIFICATION FOR APPOINTMENT.—Any in-
dividual appointed as Deputy Chief Financial Officer 
of the Department of Defense shall be an individual 
who— 
(A) has significant financial management 
service in— 
(i) a Federal or State agency that re-
ceived an audit with an unqualified opin-
ion on such agency’s financial statements 
during the time of such individual’s service; 
or 
(ii) a public company that received an 
audit with an unqualified opinion on such
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company’s financial statements during the 
time of such individual’s service; or 
(B) has served as chief financial officer, 
deputy chief financial officer, or an equivalent 
executive-level position with direct authority for 
financial management in a large public or pri-
vate sector organization. 
(2) PUBLIC
COMPANY
DEFINED.—In this sub-
section, the term ‘‘public company’’ has the meaning 
given the term ‘‘issuer’’ in section 2(7) of the Sar-
banes-Oxley Act of 2002 (15 U.S.C. 7201(7)). 
(c) APPLICABILITY.—This section and the amendments 
made by this section shall take effect on the date of the en-
actment of this Act, and shall apply with respect to ap-
pointments that are made on or after that date. 
SEC. 908. FIVE-YEAR PERIOD OF RELIEF FROM ACTIVE 
DUTY AS A COMMISSIONED OFFICER OF A 
REGULAR 
COMPONENT 
OF 
THE 
ARMED 
FORCES FOR APPOINTMENT TO UNDER SEC-
RETARY OF DEFENSE POSITIONS. 
(a) UNDER SECRETARY OF DEFENSE FOR RESEARCH 
AND ENGINEERING.—Effective on February 1, 2018, and 
immediately after the coming into effect of the amendments 
made by subsection (a) of the National Defense Authoriza-
tion Act for Fiscal Year 2017 (130 Stat. 2339), section
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133a(a) of title 10, United States Code (as added by such 
subsection (a)), is amended by striking ‘‘seven years’’ and 
inserting ‘‘five years’’. 
(b) UNDER SECRETARY OF DEFENSE FOR ACQUISI-
TION AND SUSTAINMENT.—Effective on February 1, 2018, 
and immediately after the coming into effect of the amend-
ments made by subsection (b) of the National Defense Au-
thorization Act for Fiscal Year 2017 (130 Stat. 2340), sec-
tion 133b(a) of title 10, United States Code (as added by 
such subsection (b)), is amended by striking ‘‘seven years’’ 
and inserting ‘‘five years’’. 
(c) UNDER SECRETARY OF DEFENSE FOR POLICY.— 
Section 134(a) of title 10, United States Code, is amended 
by striking ‘‘seven years’’ and inserting ‘‘five years’’. 
(d) 
UNDER
SECRETARY
OF
DEFENSE
(COMP-
TROLLER).—Section 135(a) of such title is amended by add-
ing at the end the following new sentence: ‘‘A person may 
not be appointed as Under Secretary within five years after 
relief from active duty as a commissioned officer of a reg-
ular component of the armed forces.’’. 
(e) UNDER SECRETARY OF DEFENSE FOR PERSONNEL 
AND HEALTH.—Subsection (a) of section 136 of such title, 
as amended by section 906(a) of this Act, is further amend-
ed by adding at the end the following new sentence: ‘‘A per-
son may not be appointed as Under Secretary within five
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years after relief from active duty as a commissioned officer 
of a regular component of the armed forces.’’. 
(f) UNDER SECRETARY
OF DEFENSE
FOR INTEL-
LIGENCE.—Section 137(a) of such title is amended by add-
ing at the end the following new sentence: ‘‘A person may 
not be appointed as Under Secretary within five years after 
relief from active duty as a commissioned officer of a reg-
ular component of the armed forces.’’. 
SEC. 909. REDESIGNATION OF PRINCIPAL DEPUTY UNDER 
SECRETARIES 
OF 
DEFENSE 
AS 
DEPUTY 
UNDER SECRETARIES OF DEFENSE AND RE-
LATED MATTERS. 
(a) REDESIGNATION.—Section 137a of title 10, United 
States Code, is amended by striking ‘‘Principal’’ each place 
it appears. 
(b) INCREASE IN AUTHORIZED NUMBER.—Subsection 
(a)(1) of such section is amended by striking ‘‘five’’ and 
inserting ‘‘six’’. 
(c) REPLACEMENT OF ATL POSITION WITH TWO PO-
SITIONS IN CONNECTION WITH OSD REFORM.—Subsection 
(c) of such section is amended— 
(1) by redesignating paragraphs (2) through (5) 
as paragraphs (3) through (6), respectively; and 
(2) by striking paragraph (1) and inserting the 
following new paragraphs:
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‘‘(1) One of the Deputy Under Secretaries is the Dep-
uty Under Secretary of Defense for Research and Engineer-
ing. 
‘‘(2) One of the Deputy Under Secretaries is the Dep-
uty Under Secretary of Defense for Acquisition and 
Sustainment.’’. 
(d) REDESIGNATION OF DUSD FOR PERSONNEL AND 
READINESS AS DUSD FOR PERSONNEL AND HEALTH.— 
Paragraph (4) of subsection (c) of such section, as amended 
and redesignated by this section, is further amended by 
striking ‘‘Personnel and Readiness’’ and inserting ‘‘Per-
sonnel and Health’’. 
(e) CONFORMING AMENDMENTS.— 
(1) OSD.—Paragraph (6) of section 131(b) of 
title 10, United States Code, is amended to read as 
follows: 
‘‘(6) The Deputy Under Secretaries of Defense.’’. 
(2) PRECEDENCE.—Section 138(d) of such title 
is amended by striking ‘‘Principal’’. 
(f) EXECUTIVE SCHEDULE LEVEL IV.— 
(1) IN
GENERAL.—Section 5315 of title 5, 
United States Code, is amended— 
(A) by striking ‘‘Principal’’ in the items re-
lating to the Principal Deputy Under Secretary 
of Defense for Policy, the Principal Deputy
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† HR 2810 PAP
Under Secretary of Defense (Comptroller), and 
the Principal Deputy Under Secretary of Defense 
for Intelligence; and 
(B) by striking the item relating to the 
Principal Deputy Under Secretary of Defense for 
Personnel and Readiness and inserting the fol-
lowing new item: 
‘‘Deputy Under Secretary of Defense for Per-
sonnel and Health.’’. 
(2) OSD REFORM.—Section 5315 of such title is 
further amended by inserting before the item relating 
to the Deputy Under Secretary of Defense for Policy, 
as amended by paragraph (1)(A), the following new 
items: 
‘‘Deputy Under Secretary of Defense for Re-
search and Engineering. 
‘‘Deputy Under Secretary of Defense for Acquisi-
tion and Sustainment.’’. 
(g) CLERICAL AMENDMENTS.— 
(1) HEADING AMENDMENT.—The heading of sec-
tion 137a of such title is amended to read as follows: 
‘‘§ 137a. Deputy Under Secretaries of Defense’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 4 of such title is
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† HR 2810 PAP
amended by striking the item relating to section 137a 
and inserting the following new item: 
‘‘137a. Deputy Under Secretaries of Defense.’’. 
(h) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall 
take effect on the date of the enactment of this Act. 
(2) ATL POSITION AMENDMENTS.—The amend-
ments made by subsections (b), (c), and (f)(2) of this 
section shall take effect on February 1, 2018, imme-
diately after the coming into effect of the amendments 
made by subsections (a) and (b) of section 901 of the 
National Defense Authorization Act for Fiscal Year 
2017 (Public Law 114–328; 130 Stat. 2339), to which 
the amendments made by subsections (b), (c), and 
(f)(2) of this section relate. 
SEC. 910. REDUCTION OF NUMBER AND ELIMINATION OF 
SPECIFIC DESIGNATIONS OF ASSISTANT SEC-
RETARIES OF DEFENSE. 
(a) REDUCTION
OF AUTHORIZED NUMBER.—Sub-
section (a)(1) of section 138 of title 10, United States Code, 
is amended by striking ‘‘14’’ and inserting ‘‘13’’. 
(b) ELIMINATION
OF CERTAIN SPECIFIC DESIGNA-
TIONS.—Subsection (b) of such section is amended— 
(1) by striking paragraphs (2), (3), and (5); and
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(2) by redesignating paragraphs (4) and (6) as 
paragraphs (2) and (3), respectively. 
SEC. 911. LIMITATION ON MAXIMUM NUMBER OF DEPUTY 
ASSISTANT SECRETARIES OF DEFENSE. 
The maximum number of Deputy Assistant Secretaries 
of Defense after the date of the enactment of this Act may 
not exceed 46. 
SEC. 912. MODIFICATION OF DEFINITION OF OSD PER-
SONNEL FOR PURPOSES OF LIMITATION ON 
NUMBER OF OFFICE OF SECRETARY OF DE-
FENSE PERSONNEL. 
(a) MODIFICATION.— 
(1) IN
GENERAL.—Section 143(b) of title 10, 
United States Code, as amended by section 903(a) of 
the National Defense Authorization Act for Fiscal 
Year 2017 (Public Law 114–328), is further amended 
by striking ‘‘and detailed personnel’’ and inserting 
‘‘detailed, and contractor personnel’’. 
(2) EFFECTIVE DATE.—The amendment made by 
paragraph (1) shall take effect on October 1, 2018. 
(b) REPORT ON NUMBER OF CONTRACTOR PERSONNEL 
IN OSD AND EACH SECRETARIATE OF THE MILITARY DE-
PARTMENTS.—Not later than December 31, 2017, the Sec-
retary of Defense shall submit to the congressional defense 
committees a report specifying the following:
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† HR 2810 PAP
(1) The number of contractor personnel in the 
Office of the Secretary of Defense as of October, 1, 
2017. 
(2) The number of contractor personnel in each 
office of a Secretary of a military department as of 
October 1, 2017. 
Subtitle B—Organization of Other 
Department of Defense Offices 
and Elements 
SEC. 921. REDUCTION IN AUTHORIZED NUMBER OF ASSIST-
ANT SECRETARIES OF THE MILITARY DE-
PARTMENTS. 
(a) ASSISTANT SECRETARIES OF THE ARMY.—Section 
3016(a) of title 10, United States Code, is amended by strik-
ing ‘‘five’’ and inserting ‘‘four’’. 
(b) ASSISTANT SECRETARIES OF THE NAVY.—Section 
5016(a) of such title is amended by striking ‘‘four’’ and in-
serting ‘‘three’’. 
(c) ASSISTANT SECRETARIES OF THE AIR FORCE.— 
Section 8016(a) of such title is amended by striking ‘‘four’’ 
and inserting ‘‘three’’.
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† HR 2810 PAP
SEC. 922. QUALIFICATIONS FOR APPOINTMENT OF ASSIST-
ANT SECRETARIES OF THE MILITARY DE-
PARTMENTS FOR FINANCIAL MANAGEMENT. 
(a) ASSISTANT SECRETARY OF THE ARMY.—Section 
3016(b)(4) of title 10, United States Code, is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(4)’’; 
(2) by striking ‘‘The Assistant Secretary shall 
have as his principal responsibility’’ and inserting 
the following: 
‘‘(C) The principal responsibility of the Assistant Sec-
retary shall be’’; and 
(3) by inserting after subparagraph (A), as des-
ignated by paragraph (1), the following new subpara-
graph (B): 
‘‘(B)(i) Any individual appointed as Assistant Sec-
retary shall be an individual who— 
‘‘(I) has significant financial management serv-
ice in— 
‘‘(aa) a Federal or State agency that re-
ceived an audit with an unqualified opinion on 
such agency’s financial statements during the 
time of such individual’s service; or 
‘‘(bb) a public company that received an 
audit with an unqualified opinion on such com-
pany’s financial statements during the time of 
such individual’s service; or
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† HR 2810 PAP
‘‘(II) has served as chief financial officer, deputy 
chief financial officer, or an equivalent executive-level 
position with direct authority for financial manage-
ment in a large public or private sector organization. 
‘‘(ii) In this subparagraph, the term ‘public company’ 
has the meaning given the term ‘issuer’ in section 2(7) of 
the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(7)).’’. 
(b) ASSISTANT SECRETARY OF THE NAVY.—Section 
5016(b)(3) of such title is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(3)’’; 
(2) by striking ‘‘The Assistant Secretary shall 
have as his principal responsibility’’ and inserting 
the following: 
‘‘(C) The principal responsibility of the Assistant Sec-
retary shall be’’; and 
(3) by inserting after subparagraph (A), as des-
ignated by paragraph (1), the following new subpara-
graph (B): 
‘‘(B)(i) Any individual appointed as Assistant Sec-
retary shall be an individual who— 
‘‘(I) has significant financial management serv-
ice in— 
‘‘(aa) a Federal or State agency that re-
ceived an audit with an unqualified opinion on
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† HR 2810 PAP
such agency’s financial statements during the 
time of such individual’s service; or 
‘‘(bb) a public company that received an 
audit with an unqualified opinion on such com-
pany’s financial statements during the time of 
such individual’s service; or 
‘‘(II) has served as chief financial officer, deputy 
chief financial officer, or an equivalent executive-level 
position with direct authority for financial manage-
ment in a large public or private sector organization. 
‘‘(ii) In this subparagraph, the term ‘public company’ 
has the meaning given the term ‘issuer’ in section 2(7) of 
the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(7)).’’. 
(c) ASSISTANT SECRETARY OF THE AIR FORCE.—Sec-
tion 8016(b)(3) of such title is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(3)’’; 
(2) by striking ‘‘The Assistant Secretary shall 
have as his principal responsibility’’ and inserting 
the following: 
‘‘(C) The principal responsibility of the Assistant Sec-
retary shall be’’; and 
(3) by inserting after subparagraph (A), as des-
ignated by paragraph (1), the following new subpara-
graph (B):
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† HR 2810 PAP
‘‘(B)(i) Any individual appointed as Assistant Sec-
retary shall be an individual who— 
‘‘(I) has significant financial management serv-
ice in— 
‘‘(aa) a Federal or State agency that re-
ceived an audit with an unqualified opinion on 
such agency’s financial statements during the 
time of such individual’s service; or 
‘‘(bb) a public company that received an 
audit with an unqualified opinion on such com-
pany’s financial statements during the time of 
such individual’s service; or 
‘‘(II) has served as chief financial officer, deputy 
chief financial officer, or an equivalent executive-level 
position with direct authority for financial manage-
ment in a large public or private sector organization. 
‘‘(ii) In this subparagraph, the term ‘public company’ 
has the meaning given the term ‘issuer’ in section 2(7) of 
the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(7)).’’. 
(d) APPLICABILITY.—The amendments made by this 
section shall take effect on the date of the enactment of this 
Act, and shall apply with respect to appointments that are 
made on or after that date.
441 
† HR 2810 PAP
Subtitle C—Organization and Man-
agement of the Department of 
Defense Generally 
SEC. 931. REDUCTION IN LIMITATION ON NUMBER OF DE-
PARTMENT OF DEFENSE SES POSITIONS. 
Section 1109(a)(1) of the National Defense Authoriza-
tion Act for Fiscal Year 2017 (Public Law 114–328) is 
amended by striking ‘‘1,260’’ and inserting ‘‘1,140’’. 
SEC. 932. MANNER OF CARRYING OUT REDUCTIONS IN 
MAJOR DEPARTMENT OF DEFENSE HEAD-
QUARTERS ACTIVITIES. 
Section 346(b) of the National Defense Authorization 
Act for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 
796; 10 U.S.C. 111 note) is amended by adding at the end 
the following new paragraph: 
‘‘(5) MANNER OF CARRYING OUT REDUCTIONS.— 
Reductions in major Department of Defense head-
quarters activities pursuant to the headquarters re-
duction plan referred to in paragraph (1), as modi-
fied pursuant to that paragraph, shall be carried out 
after a consideration of the current manpower levels, 
historic manpower levels, mission requirements, and 
anticipated staffing needs of such headquarters activi-
ties necessary to meet national defense objectives. Fur-
ther, the plan required by subsection (a) shall be
442 
† HR 2810 PAP
modified to take into account the requirement in the 
preceding sentence.’’. 
SEC. 933. CERTIFICATIONS ON COST SAVINGS ACHIEVED BY 
REDUCTIONS IN MAJOR DEPARTMENT OF DE-
FENSE HEADQUARTERS ACTIVITIES. 
Section 346(b) of the National Defense Authorization 
Act for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 
796 10 U.S.C. 111 note), as amended by section 932 of this 
Act, is further amended by adding at the end the following 
new paragraph: 
‘‘(6) 
CERTIFICATIONS
ON
COST
SAVINGS 
ACHIEVED.—Not later than 60 days after close of each 
of fiscal years 2017 through 2020, the Director of Cost 
Assessment and Program Evaluation shall certify to 
the Secretary of Defense, and to the congressional de-
fense committees, the following: 
‘‘(A) The validity of the cost savings 
achieved for each major Department of Defense 
headquarters activity during the fiscal year con-
cerned. 
‘‘(B) Whether the cost savings achieved for 
each major Department of Defense headquarters 
activity during the fiscal year concerned met the 
savings objective for such activity for such fiscal 
year, as established pursuant to paragraph (1).’’.
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† HR 2810 PAP
SEC. 934. DIRECT HIRE AUTHORITY FOR THE DEPARTMENT 
OF DEFENSE FOR PERSONNEL TO ASSIST IN 
BUSINESS TRANSFORMATION AND MANAGE-
MENT INNOVATION. 
(a) AUTHORITY.—The Secretary of Defense may ap-
point in the Department of Defense individuals described 
in subsection (b) without regard to the provisions of sub-
chapter I of chapter 33 of title 5, United States Code, for 
the purpose of assisting and facilitating the efforts of the 
Department in business transformation and management 
innovation. 
(b) COVERED
INDIVIDUALS.—The individuals de-
scribed in this subsection are individuals who have all of 
the following: 
(1) A management or business background. 
(2) Experience working with large or complex 
organizations. 
(3) Expertise in management and organizational 
change, data analytics, or business process design. 
(c) LIMITATION ON NUMBER.—The number of individ-
uals appointed pursuant to this section at any one time 
may not exceed 25 individuals. 
(d) NATURE
OF APPOINTMENT.—Any appointment 
under this section shall be on a term basis. The term of 
any such appointment shall be specified by the Secretary 
at the time of the appointment.
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† HR 2810 PAP
SEC. 935. DATA ANALYTICS CAPABILITY FOR SUPPORT OF 
ENHANCED OVERSIGHT AND MANAGEMENT 
OF THE DEFENSE AGENCIES AND DEPART-
MENT OF DEFENSE FIELD ACTIVITIES. 
(a) DATA ANALYTICS CAPABILITY REQUIRED.— 
(1) IN GENERAL.—By not later than September 
30, 2020, the Deputy Chief Management Officer of the 
Department of Defense shall establish and maintain 
within the Department of Defense a data analytics 
capability for purposes of supporting enhanced over-
sight and management of the Defense Agencies and 
Department of Defense Field Activities. 
(2) DISCHARGE
THROUGH
SUCCESSOR
POSI-
TION.—If the position of Deputy Chief Management 
Officer of the Department of Defense is succeeded by 
another position in the Department, the duties of the 
Deputy Chief Management Officer under this section 
shall be discharged by the occupant of such succeeding 
position. 
(b) ELEMENTS.—The data analytics capability shall 
permit the following: 
(1) The maintenance on a continuing basis of an 
accurate tabulation of the amounts being expended by 
the Defense Agencies and Department of Defense Field 
Activities on their personnel.
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† HR 2810 PAP
(2) The maintenance on a continuing basis of an 
accurate number of the personnel currently sup-
porting the Defense Agencies and Field Activities, in-
cluding the following: 
(A) Members of the regular components of 
the Armed Forces. 
(B) Members of the reserve components of 
the Armed Forces. 
(C) Civilian employees of the Department of 
Defense. 
(D) Employees of contractors of the Depart-
ment, including federally funded research and 
development centers. 
(E) Detailees, whether from another organi-
zation or element of the Department or from an-
other department or agency of the Federal Gov-
ernment. 
(3) The maintenance of a continuing basis of the 
following: 
(A) An identification of the functions being 
performed by each Defense Agency and Field Ac-
tivity. 
(B) An accurate tabulation of the amounts 
being expended by each Defense Agency and 
Field Activity on its functions.
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† HR 2810 PAP
(4) The streamlined assembly and analysis of 
data for purposes of the capability, including through 
appropriate automated processes. 
(c) RESOURCES.—In establishing the data analytics 
capability, the Deputy Chief Management Officer may use 
the following: 
(1) Data and information from each of the De-
fense Agencies and Department of Defense Field Ac-
tivities. 
(2) Data and information from the Defense Man-
power Data Center (DMDC). 
(3) Subject to the direction and control of the 
Secretary of Defense, any other resources of the De-
partment the Deputy Chief Management Officer con-
siders appropriate. 
(d) REPORTS.— 
(1) INTERIM REPORT.—Not later than one year 
after the date of the enactment of this Act, the Deputy 
Chief Management Officer shall submit to the congres-
sional defense committees a report on the progress of 
the Deputy Chief Management Officer in establishing 
the data analytics capability. The report shall include 
the following: 
(A) A description and assessment of the ef-
forts of the Deputy Chief Management Officer
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† HR 2810 PAP
through the date of the report to establish the 
data analytics capability. 
(B) A description of current gaps in the 
data required to establish the data analytics ca-
pability, and a description of the efforts to be 
undertaken to eliminate such gaps. 
(C) Any other matters in connection with 
the establishment of the data analytics capability 
that the Deputy Chief Management Officer con-
siders appropriate. 
(2) FINAL REPORT.—Not later than December 
31, 2020, the Deputy Chief Management Officer shall 
submit to the congressional defense committees a re-
port on the data analytics capability as established 
pursuant to this section. The report shall include the 
following: 
(A) A description and assessment of the 
data analytics capability. 
(B) Any other matters in connection with 
the data analytics capability that the Deputy 
Chief Management Officer considers appropriate. 
SEC. 936. ENHANCED USE OF DATA ANALYTICS TO IMPROVE 
ACQUISITION PROGRAM OUTCOMES. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Secretary of Defense
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† HR 2810 PAP
shall, acting jointly through the Deputy Chief Management 
Officer and the Chief Information Officer of the Department 
of Defense, and in coordination with the Under Secretary 
of Defense for Acquisition, Technology, and Logistics and 
the Armed Forces, establish a set of activities that use data 
analysis, measurement, and other evaluation-related meth-
ods to improve the acquisition outcomes of the Department 
of Defense and enhance organizational learning. 
(b) ACTIVITIES.— 
(1) IN
GENERAL.—The set of activities estab-
lished under subsection (a) may include the following: 
(A) Establishment of data analytics capa-
bilities and organizations within the appropriate 
military service. 
(B) Development of capabilities in Depart-
ment of Defense laboratories, test centers, and 
Federally funded research and development cen-
ters to provide technical support for data ana-
lytics activities that support acquisition pro-
gram management and business process re-engi-
neering activities. 
(C) Increased use of existing analytical ca-
pabilities available to acquisition programs and 
offices to support improved acquisition outcomes.
449 
† HR 2810 PAP
(D) Funding of intramural and extramural 
research and development activities to develop 
and implement data analytics capabilities in 
support of improved acquisition outcomes. 
(E) Publication, to the maximum extent 
practicable, and in a manner that protects clas-
sified and proprietary information, of data col-
lected by the Department related to acquisition 
program costs and activities for access and anal-
yses by the general public. 
(F) Clarification by the Chief of Staff of the 
Army, the Chief of Naval Operations, the Chief 
of Staff of the Air Force, and the Commandant 
of the Marine Corps, in coordination with the 
Under Secretary of Defense for Acquisition, 
Technology, and Logistics, of a consistent policy 
as to the role of data analytics in establishing 
budgets and making milestone decisions for 
major defense acquisition programs. 
(G) Continual assessment, in consultation 
with the private sector, of the efficiency of cur-
rent data collection and analyses processes, so as 
to minimize the requirement for collection and 
delivery of data by, from, and to government or-
ganizations.
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† HR 2810 PAP
(H) Promulgation of guidance to acquisi-
tion programs and activities on the efficient use 
and sharing of data between programs and orga-
nizations to improve acquisition program ana-
lytics and outcomes. 
(I) Promulgation of guidance on assessing 
and enhancing quality of data and data anal-
yses to support improved acquisition outcomes. 
(2) GAP ANALYSIS OF CURRENT ACTIVITIES.— 
The Secretary shall, in coordination with the Armed 
Forces, identify the current activities, organizations, 
and groups of personnel that are pursuing tasks simi-
lar to those described in paragraph (1) that are being 
carried out as of the date of the enactment of this Act. 
The Secretary shall consider such current activities, 
organizations, and personnel in determining the set of 
activities to establish pursuant to subsection (a). 
(3) TRAINING AND EDUCATION.—The Secretary 
shall, acting through the Under Secretary of Defense 
for Acquisition, Technology, and Logistics, conduct a 
review of the curriculum taught at the National De-
fense University, the Defense Acquisition University, 
and appropriate private sector academic institutions 
to determine the extent to which the curricula include 
appropriate courses on data analytics and other eval-
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† HR 2810 PAP
uation-related methods and their application to de-
fense acquisitions. 
(c) DISCHARGE OF CERTAIN DUTIES.—After January 
31, 2018— 
(1) any duties under this section to be discharged 
by the Deputy Chief Management Officer of the De-
partment of Defense shall be discharged by the Chief 
Management Officer of the Department of Defense; 
and 
(2) any duties under this section to be discharged 
by the Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall be discharged by the 
Under Secretary of Defense for Acquisition and 
Sustainment. 
SEC. 937. PILOT PROGRAMS ON DATA INTEGRATION STRAT-
EGIES FOR THE DEPARTMENT OF DEFENSE. 
(a) PILOT PROGRAMS REQUIRED.—The Secretary of 
Defense shall, acting through the Chief Management Officer 
of the Department of Defense, carry out pilot programs to 
develop data integration strategies for the Department of 
Defense to address high-priority challenges of the Depart-
ment. 
(b) SCOPE OF PILOT PROGRAMS.—The pilot programs 
required by subsection (a) shall involve data integration
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† HR 2810 PAP
strategies to address challenges of the Department with re-
spect to the following: 
(1) The budget of the Department. 
(2) Logistics. 
(3) Personnel security and insider threats. 
(4) At least two other high-priority challenges of 
the Department identified by the Secretary for pur-
poses of this section. 
(c) ELEMENTS.—In developing a data integration 
strategy to address a challenge of the Department for pur-
poses of a pilot program under this section, the Secretary 
shall do the following: 
(1) Identify the elements of the Department, and 
the officials of such elements, to be involved in car-
rying out the data integration strategy. 
(2) Specify the elements of the data integration 
strategy. 
(3) Specify the policies of the Department, if 
any, to be modified or waived in order to facilitate 
the carrying out of the data integration strategy by 
enabling timely and continuous sharing of informa-
tion needed to solve the challenge concerned. 
(d) REPORT.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary
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shall submit to the congressional defense committees a 
report on the pilot programs to be carried out under 
this section. 
(2) ELEMENTS.—The report shall include the fol-
lowing: 
(A) A description of each pilot program, in-
cluding the challenge of the Department to be ad-
dressed by such pilot program and the manner 
in which the data integration strategy under 
such pilot program will address the challenge. 
(B) If the carrying out of any pilot pro-
gram requires legislative action for the waiver or 
modification of a statutory requirement that pre-
vents or impedes the carrying out of the pilot 
program, a recommendation for legislative action 
to waive or modify such statutory requirement. 
SEC. 938. BACKGROUND AND SECURITY INVESTIGATIONS 
FOR DEPARTMENT OF DEFENSE PERSONNEL. 
(a) TRANSITION TO DISCHARGE BY DEFENSE SECU-
RITY SERVICE.— 
(1) IN GENERAL.—The Secretary of Defense has 
the authority to conduct security, suitability, and 
credentialing background investigations. In carrying 
out such authority, the Secretary may use such au-
thority, or may delegate such authority to another en-
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tity. As part of providing for the conduct of back-
ground investigations initiated by the Department of 
Defense through the Defense Security Service by not 
later than the deadline specified in subsection (b), the 
Secretary shall, in consultation with the Director of 
the Office of Personnel Management, provide for a 
phased transition from the conduct of such investiga-
tions by the National Background Investigations Bu-
reau (NBIB) of the Office of Personnel Management 
to the conduct of such investigations by the Defense 
Security Service by that deadline. 
(2) PHASED
TRANSITION.—The phased transi-
tion required by paragraph (1) shall— 
(A) provide for the transition of the conduct 
of investigations to the Defense Security Service 
using a risk management approach; and 
(B) be consistent with the transition from 
legacy information technology operated by the 
Office of Personnel Management to the new in-
formation technology, including the National 
Background Investigations System, as described 
in subsection (f). 
(b) COMMENCEMENT OF IMPLEMENTATION PLAN FOR 
ONGOING
DISCHARGE
OF
INVESTIGATIONS
THROUGH 
DSS.—Not later than October 1, 2020, the Secretary of De-
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fense shall commence carrying out the implementation plan 
developed pursuant to section 951(a)(1) of the National De-
fense Authorization Act for Fiscal Year 2017 (Public Law 
114–328; 130 Stat. 2371). 
(c) TRANSFER OF CERTAIN FUNCTIONS WITHIN DOD 
TO DSS.— 
(1) IN GENERAL.—For purposes of meeting the 
requirements in subsections (a) and (b), the Secretary 
of Defense shall transfer the functions, personnel, and 
associated resources of the organizations specified in 
paragraph (2) to the Defense Security Service. 
(2) ORGANIZATIONS.—The organizations speci-
fied in this paragraph are the following: 
(A) The Consolidated Adjudications Facil-
ity. 
(B) The Personnel Security Assurance Divi-
sion of the Defense Manpower Data Center. 
(C) Other organizations identified by the 
Secretary for purposes of this subsection. 
(3) SUPPORTING ORGANIZATIONS.—In addition 
to the organizations identified pursuant to (2), the 
following organizations shall prioritize resources to 
directly support the execution of requirements in sub-
sections (a) and (b):
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(A) The Office of Cost Analysis and Pro-
gram Evaluation. 
(B) The Defense Digital Services. 
(C) Other organizations designated by the 
Secretary for purposes of this paragraph. 
(4) TIMING AND MANNER OF TRANSFER.—The 
Secretary— 
(A) may carry out the transfer required by 
paragraph (1) at any time before the date speci-
fied in subsection (b) that the Secretary considers 
appropriate for purposes of this section; and 
(B) shall carry out the transfer in a man-
ner designed to minimize disruptions to the con-
duct of background investigations for personnel 
of the Department of Defense. 
(d) TRANSFER OF CERTAIN FUNCTIONS IN OPM TO 
DSS.— 
(1) IN GENERAL.—For purposes of meeting the 
requirements in subsections (a) and (b), the Secretary 
of Defense shall, in consultation with the Director of 
the Office of Personnel Management, provide for the 
transfer of the functions described in paragraph (2), 
and any associated personnel and resources, to the 
Department of Defense.
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(2) FUNCTIONS.—The functions described in this 
paragraph are the following: 
(A) Any personnel security investigations 
functions transferred by the Secretary to the Di-
rector pursuant to section 906 of the National 
Defense Authorization Act for Fiscal Year 2004 
(5 U.S.C. 1101 note). 
(B) Any other functions of the Office of Per-
sonnel Management in connection with back-
ground investigations initiated by the Depart-
ment of Defense that the Secretary and the Di-
rector jointly consider appropriate. 
(3) LOCATION
WITHIN
DOD.—Any functions 
transferred to the Department pursuant to this sub-
section shall be located within the Defense Security 
Service. 
(e) CONDUCT OF CERTAIN ACTIONS.—For purposes of 
the conduct of background investigations following the com-
mencement of the carrying out of the implementation plan 
referred to in subsection (b), the Secretary of Defense shall 
provide for the following: 
(1) A single capability for the centralized fund-
ing, submissions, and processing of all background in-
vestigations, from within the Defense Security Serv-
ice.
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(2) The discharge by the Consolidated Adjudica-
tions Facility, from within the Defense Security Serv-
ice pursuant to transfer under subsection (c), of adju-
dications in connection with the following: 
(A) Background investigations. 
(B) Continuous evaluation and vetting 
checks. 
(f) ENHANCEMENT OF INFORMATION TECHNOLOGY CA-
PABILITIES OF NBIS.— 
(1) IN
GENERAL.—The Secretary of Defense 
shall, in consultation with the Director of the Office 
of Personnel Management, conduct a review of the in-
formation technology capabilities of the National 
Background Investigations System (NBIS) in order to 
determine whether enhancements to such capabilities 
are required for the following: 
(A) Support for background investigations 
pursuant to this section and section 951 of the 
National Defense Authorization Act for Fiscal 
Year 2017. 
(B) Support of the National Background 
Investigations Bureau. 
(C) Execution of the conduct of background 
investigations initiated by the Department of
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Defense pursuant to this section, including sub-
missions and adjudications. 
(2) COMMON COMPONENT.—In providing for the 
transition and operation of the System as described 
in paragraph (1)(C), the Secretary shall, in consulta-
tion with the Director, develop a common component 
of the System usable for background investigations by 
both the Defense Security Service and the National 
Background Investigations Bureau. 
(3) ENHANCEMENTS.—If the review pursuant to 
paragraph (1) determines that enhancements de-
scribed in that paragraph are required, the Secretary 
shall, in consultation with the Director, carry out 
such enhancements. 
(g) USE OF CERTAIN PRIVATE INDUSTRY DATA.—In 
carrying out background and security investigations pursu-
ant to this section and section 951 of the National Defense 
Authorization Act for Fiscal Year 2017, the Secretary of 
Defense may use background materials collected on individ-
uals by the private sector, in accordance with national poli-
cies and standards, that are applicable to such investiga-
tions, including materials as follows: 
(1) Financial information, including credit 
scores and credit status. 
(2) Criminal records.
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(3) Drug screenings. 
(4) Verifications of information on resumes and 
employment applications (such as previous employers, 
educational achievement, and educational institutions 
attended). 
(5) Other publicly available electronic informa-
tion. 
(h) SECURITY CLEARANCES FOR CONTRACTOR PER-
SONNEL.— 
(1) IN GENERAL.—The Secretary of Defense shall 
review the requirements of the Department of Defense 
relating to position sensitivity designations for con-
tractor personnel in order to determine whether such 
requirements may be reassessed or modified to reduce 
the number and range of contractor personnel who are 
issued security clearances in connection with work 
under contracts with the Department. 
(2) GUIDANCE.—The Secretary shall issue guid-
ance to program managers, contracting officers, and 
security personnel of the Department specifying re-
quirements for the review of contractor position sensi-
tivity designations and the number of contractor per-
sonnel of the Department who are issued security 
clearances for the purposes of determining whether the
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number of such personnel who are issued security 
clearances should and can be reduced. 
(i) PERSONNEL TO SUPPORT
THE TRANSFER
OF 
FUNCTIONS.—The Secretary of Defense shall authorize the 
Director of the Defense Security Service to promptly in-
crease personnel for the purpose of beginning the establish-
ment and expansion of investigative capacity to support the 
phased transfer of investigative functions from the Office 
of Personnel Management to the Department of Defense 
under this section. The Director of Cost Analysis and Pro-
gram Assessment shall advise the Secretary on the size of 
the initial investigative workforce and the rate of growth 
of that workforce. 
(j) BRIEFINGS AND REPORTS.— 
(1) REPORT ON FUTURE PERIODIC REINVESTIGA-
TIONS, INSIDER
THREAT, AND
CONTINUOUS
VET-
TING.—Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall, 
in consultation with the Director of National Intel-
ligence and the Director of the Office of Personnel 
Management, submit to Congress a report that in-
cludes the following: 
(A) An assessment of the feasibility and ad-
visability of periodic reinvestigations of back-
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grounds of Government and contractor personnel 
with security clearances. 
(B) A plan to provide the Government with 
an enhanced risk management model which re-
duces the gaps in coverage perpetuated by the 
current 
time-based 
periodic 
reinvestigations 
model, particularly in light of the increasing use 
of continuous background evaluations of such 
personnel. 
(C) A plan for expanding continuous back-
ground vetting capabilities such as the Installa-
tion Matching Engine for Security and Analysis 
to the broader population, including those at the 
lowest Tiers and levels of access, which plan shall 
include details to ensure that all individuals 
credentialed for physical access to Department of 
Defense facilities and installations are vetted to 
the same level of fitness determinations and sub-
ject to appropriate continuous vetting. 
(D) A plan to fully integrate and incor-
porate insider threat data, tools, and capabilities 
into the new end-to-end vetting processes and 
supporting information technology established by 
the Defense Security Service to ensure a holistic 
and transformational approach to detecting, de-
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† HR 2810 PAP
terring, and mitigating threats posed by trusted 
insiders. 
(2) QUARTERLY BRIEFINGS.—Not later than the 
end of each calendar year quarter after the date of the 
enactment of this Act, the Secretary of Defense shall 
provide the Committees on Armed Services of the Sen-
ate and the House of Representatives a briefing on the 
progress of the Secretary in carrying out the require-
ments of this section during such calendar year quar-
ter. Until the backlog of security clearance applica-
tions at the National Background Investigations Bu-
reau is eliminated, each quarterly briefing shall also 
include the current status of the backlog and the re-
sulting mission and resource impact to the Depart-
ment of Defense and the defense industrial base. 
(3) ANNUAL REPORTS.—Not later than the end of 
each calendar year after the date of the enactment of 
this Act, the Secretary shall submit to the committees 
of Congress referred to in paragraph (2) a report on 
the following for the calendar year in which such re-
port is to be submitted: 
(A) The status of the Secretary in meeting 
the requirements in subsections (a), (b), and (c) 
as of the end of such calendar year.
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(B) The status as of the end of such cal-
endar year of any transfers to be carried out 
pursuant to subsection (d). 
(C) An assessment of the personnel security 
capabilities of the Department of Defense as of 
the end of such calendar year. 
(4) TERMINATION.—No briefing or report is re-
quired pursuant to paragraph (2) or (3) after Decem-
ber 31, 2020. 
Subtitle D—Other Matters 
SEC. 951. TRANSFER OF LEAD OF GUAM OVERSIGHT COUN-
CIL FROM THE DEPUTY SECRETARY OF DE-
FENSE TO THE SECRETARY OF THE NAVY. 
(a) TRANSFER.—Section 5013 of title 10, United 
States Code, is amended by adding at the end the following 
new subsection: 
‘‘(h) Until September 30, 2020, the Secretary of the 
Navy shall lead the Guam Oversight Council and shall be 
the principal representative of the Department of Defense 
for coordinating the interagency efforts in matters relating 
to Guam, including the following executive orders: 
‘‘(1) Executive Order No. 13299 of May 12, 2003 
(68 Fed. Reg. 25477; 48 U.S.C. note prec. 1451; relat-
ing to the Interagency Group on Insular Affairs).
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† HR 2810 PAP
‘‘(2) Executive Order No. 12788 of January 15, 
1992, as amended (57 Fed. Reg. 2213; relating to the 
Defense Economic Adjustment Program).’’. 
(b) REPEAL OF SUPERSEDED AUTHORITY.—Section 
132 of such title is amended by striking subsection (e). 
SEC. 952. CORROSION CONTROL AND PREVENTION EXECU-
TIVES MATTERS. 
(a) SCOPE AND LEVEL OF POSITIONS.—Subsection (a) 
of section 903 of the Duncan Hunter National Defense Au-
thorization Act for Fiscal Year 2009 (10 U.S.C. 2228 note) 
is amended— 
(1) by striking ‘‘shall be the senior official’’ and 
inserting ‘‘shall be a senior official’’; and 
(2) by adding at the end the following new sen-
tence: ‘‘Each individual so designated shall be a sen-
ior civilian employee of the military department con-
cerned in pay grade GS–15 or higher.’’. 
(b) QUALIFICATIONS.—Such section is further amend-
ed— 
(1) by redesignating subsection (b) as subsection 
(c); and 
(2) by inserting after subsection (a) the following 
new subsection (b):
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‘‘(b) QUALIFICATIONS.—Any individual designated as 
a corrosion control and prevention executive of a military 
department pursuant to subsection (a) shall— 
‘‘(1) have a working knowledge of corrosion pre-
vention and control; 
‘‘(2) have strong program management and com-
munication skills; and 
‘‘(3) understand the acquisition, research, devel-
opment, test, and evaluation, and sustainment poli-
cies and procedures of the military department, in-
cluding for the sustainment of infrastructure.’’. 
SEC. 953. REQUIREMENT FOR NATIONAL LANGUAGE SERV-
ICE CORPS. 
(a) IN GENERAL.—Subsection (a)(1) of 813 of the 
David L. Boren National Security Education Act of 1991 
(50 U.S.C. 1913) is amended by striking ‘‘may establish 
and maintain’’ and inserting ‘‘shall establish and main-
tain’’. 
(b) CONFORMING AMENDMENT.—Subsection (b) of such 
section is amended by striking ‘‘If the Secretary establishes 
the Corps, the Secretary’’ and inserting ‘‘The Secretary’’. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
SEC. 1001. GENERAL TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—
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† HR 2810 PAP
(1) AUTHORITY.—Upon determination by the 
Secretary of Defense that such action is necessary in 
the national interest, the Secretary may transfer 
amounts of authorizations made available to the De-
partment of Defense in this division for fiscal year 
2018 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and 
be available for the same purposes as the authoriza-
tion to which transferred. 
(2) LIMITATION.—Except as provided in para-
graph (3), the total amount of authorizations that the 
Secretary may transfer under the authority of this 
section may not exceed $4,000,000,000. 
(3) EXCEPTION FOR TRANSFERS BETWEEN MILI-
TARY
PERSONNEL
AUTHORIZATIONS.—A transfer of 
funds between military personnel authorizations 
under title IV shall not be counted toward the dollar 
limitation in paragraph (2). 
(b) LIMITATIONS.—The authority provided by sub-
section (a) to transfer authorizations— 
(1) may only be used to provide authority for 
items that have a higher priority than the items from 
which authority is transferred; and
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† HR 2810 PAP
(2) may not be used to provide authority for an 
item that has been denied authorization by Congress. 
(c) EFFECT ON AUTHORIZATION AMOUNTS.—A trans-
fer made from one account to another under the authority 
of this section shall be deemed to increase the amount au-
thorized for the account to which the amount is transferred 
by an amount equal to the amount transferred. 
(d) NOTICE
TO
CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under sub-
section (a). 
SEC. 1002. CALCULATIONS FOR PAYMENTS INTO DEPART-
MENT OF DEFENSE MILITARY RETIREMENT 
FUND USING SINGLE LEVEL PERCENTAGE OF 
BASIC PAY DETERMINED ON ARMED FORCE- 
WIDE RATHER THAN ARMED FORCES-WIDE 
BASIS. 
Section 1465 of title 10, United States Code, is amend-
ed— 
(1) in subsection (c)(1), in the flush matter at 
the end of paragraph (1), by striking ‘‘Such single 
level’’ and inserting ‘‘Except as otherwise provided in 
subsection (d), such single level’’; 
(2) by redesignating subsections (d) and (e) as 
subsections (e) and (f), respectively; and
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† HR 2810 PAP
(3) by inserting after subsection (c) the following 
new subsection (d): 
‘‘(d)(1) Notwithstanding subsection (c), in any actu-
arial valuation of Department of Defense military retire-
ment and survivor benefits programs for purposes of a fiscal 
year beginning after fiscal year 2018— 
‘‘(A) the determination made pursuant to sub-
section (c)(1)(A) shall be a single level percentage of 
basic pay for active duty for each armed force (other 
than the Coast Guard) and for each of the Army Na-
tional Guard and the Air National Guard for full- 
time National Guard duty (rather than the single 
level percentage of basic pay otherwise required by 
that subsection); and 
‘‘(B) the determination made pursuant to sub-
section (c)(1)(B) shall be a single level percentage of 
basic pay and of compensation for members of the Se-
lected Reserve of each armed force (other than the 
Coast Guard) (rather than the single level percentage 
of basic pay and of compensation otherwise required 
by that subsection). 
‘‘(2) In making calculations for purposes of subsection 
(b)(1) for fiscal years after fiscal year 2018— 
‘‘(A) the Secretary of Defense—
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† HR 2810 PAP
‘‘(i) shall not use the single level percentage 
of basic pay determined under subsection 
(c)(1)(A) 
as 
provided 
for 
in 
subsection 
(b)(1)(A)(i); but 
‘‘(ii) shall use for purposes of subsection 
(b)(1)(A)(i) each separate single level percentage 
of basic pay determined under paragraph (1)(A) 
for each armed force and for each of the Army 
National Guard and the Air National Guard; 
and 
‘‘(B) the Secretary of Defense— 
‘‘(i) shall not use the single level percentage 
of basic pay and of compensation determined 
under subsection (c)(1)(B) as provided for in 
subsection (b)(1)(B)(i); but 
‘‘(ii) shall use for purposes of subsection 
(b)(1)(B)(i) each separate single level percentage 
of basic pay and of compensation determined 
under paragraph (1)(B) for each armed force. 
‘‘(3) In making calculations for purposes of section 
1466(a) of this title for purposes of deposits into the Fund 
for months in fiscal years after fiscal year 2018— 
‘‘(A) the Secretary of Defense— 
‘‘(i) shall not use the single level percentage 
of basic pay determined under subsection
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† HR 2810 PAP
(c)(1)(A) 
as 
provided 
for 
in 
section 
1466(a)(1)(A) of this title; but 
‘‘(ii) shall use for purposes of section 
1466(a)(1)(A) of this title each separate single 
level percentage of basic pay determined under 
paragraph (1)(A) for each armed force and for 
each of the Army National Guard and the Air 
National Guard; and 
‘‘(B) the Secretary of Defense— 
‘‘(i) shall not use the single level percentage 
of basic pay and of compensation determined 
under subsection (c)(1)(B) as provided for in sec-
tion 1466(a)(2)(A) of this title; but 
‘‘(ii) shall use for purposes of section 
1466(a)(2)(A) each separate single level percent-
age of basic pay and of compensation determined 
under paragraph (1)(B) for each armed force.’’. 
SEC. 1003. CERTIFICATIONS ON AUDIT READINESS OF THE 
DEPARTMENT OF DEFENSE AND THE MILI-
TARY DEPARTMENTS, DEFENSE AGENCIES, 
AND OTHER ORGANIZATIONS AND ELEMENTS 
OF THE DEPARTMENT OF DEFENSE. 
(a) DEPARTMENT OF DEFENSE.—Not later than Sep-
tember 30, 2017, and each year thereafter, the Secretary 
of Defense shall certify to the congressional defense commit-
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† HR 2810 PAP
tees whether or not the full financial statements of the De-
partment of Defense are audit ready as of the date of such 
certification. 
(b) MILITARY DEPARTMENTS, DEFENSE AGENCIES, 
AND OTHER ORGANIZATIONS AND ELEMENTS.— 
(1) IN GENERAL.—Not later than September 30, 
2017, and each year thereafter, each Secretary of a 
military department, each head of a Defense Agency, 
and each head of any other organization or element 
of the Department of Defense designated by the Sec-
retary of Defense for purposes of this subsection shall 
certify to the congressional defense committees whether 
or not the full financial statements of the military de-
partment, the Defense Agency, or the organization or 
element concerned became audit ready during the fis-
cal year in which such certification is to be sub-
mitted. 
(2) TRANSMITTAL THROUGH SECRETARY OF DE-
FENSE.—The individual certifications required by 
this subsection shall be transmitted to the congres-
sional defense committees collectively by the Secretary 
under procedures established by the Secretary for pur-
poses of this subsection. 
(c) TERMINATION ON RECEIPT OF AUDIT OPINION ON 
FULL FINANCIAL STATEMENTS.—A certification is no
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† HR 2810 PAP
longer required under subsection (a) or (b) with respect to 
the Department of Defense, or a military department, De-
fense Agency, or organization or element of the Department, 
as applicable, after the Department of Defense or such mili-
tary department, Defense Agency, or organization or ele-
ment receives an audit opinion on its full financial state-
ments. 
(d) AUDIT READY DEFINED.—In this section, the term 
‘‘audit ready’’, with respect to the full financial statements 
of the Department of Defense, a military department, a De-
fense Agency, or another organization or element of the De-
partment of Defense, means that the Department of Defense, 
the military department, the Defense Agency, or the organi-
zation or element has in place critical audit capabilities 
and associated infrastructure to successfully start and sup-
port a financial audit of its full financial statements. 
SEC. 1004. FAILURE TO OBTAIN AUDIT OPINION ON FISCAL 
YEAR FULL FINANCIAL STATEMENTS OF THE 
DEPARTMENT OF DEFENSE. 
(a) REDUCTION IN BASIC PAY OF MILITARY SECRE-
TARIES FOR FAILURE TO OBTAIN AUDIT OPINION ON FULL 
FINANCIAL STATEMENTS FOR FISCAL YEARS 2018 AND 
THEREAFTER.—If the Department of Defense does not ob-
tain an audit opinion on its full financial statements for 
fiscal year 2018, or any fiscal year thereafter, by March
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† HR 2810 PAP
31 of the succeeding calendar year, the annual rate of basic 
pay payable for each Secretary of a military department 
for the calendar year next following such succeeding cal-
endar year shall be the annual rate of basic pay for posi-
tions at level III of the Executive Schedule pursuant to sec-
tion 5313 of title 5, United States Code, rather than the 
annual rate of basic pay otherwise provided for the posi-
tions of Secretary of a military department by law. 
(b) REVIEW AND RECOMMENDATIONS ON EFFORTS TO 
OBTAIN AUDIT OPINION ON FULL FINANCIAL STATEMENTS 
FOR FISCAL YEAR 2018 BY MARCH 31, 2019.— 
(1) IN GENERAL.—If the Department does not 
obtain an audit opinion on its full financial state-
ments for fiscal year 2018 by March 31, 2019, the 
Secretary of Defense shall establish within the De-
partment a team of distinguished, private sector ex-
perts with experience conducting financial audits of 
large public or private sector organizations to review 
and make recommendations to improve the efforts of 
the Department to obtain an audit opinion on its full 
financial statements. 
(2) SCOPE OF ACTIVITIES.—The team established 
pursuant to paragraph (1) shall— 
(A) identify impediments to the progress of 
the Department in obtaining an audit opinion
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† HR 2810 PAP
on its full financial statements, including an 
identification of the organizations or elements 
that are lagging in their efforts toward obtaining 
such audit opinion; 
(B) estimate when an audit opinion on the 
full financial statements of the Department will 
be obtained; and 
(C) consider mechanisms and incentives to 
support efficient achievement by the Department 
of its audit goals, including organizational 
mechanisms to transfer direction and manage-
ment control of audit activities from subordinate 
organizations to the Office of the Secretary of 
Defense, individual personnel incentives, work-
force improvements (including in senior leader-
ship positions), business process, technology, and 
systems improvements (including the use of data 
analytics), and metrics by which the Secretary 
and Congress may measure and assess progress 
toward achievement of the audit goals of the De-
partment. 
(3) REPORT.—If the Secretary takes action pur-
suant to paragraph (1), the Secretary shall, not later 
than September 30, 2019, submit to the congressional 
defense committees a report on the team established
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† HR 2810 PAP
pursuant to that paragraph, including a description 
of the actions taken and to be taken by the team pur-
suant to paragraph (2). 
SEC. 1005. IMPROPER PAYMENT MATTERS. 
Subject to the authority, direction, and control of the 
Secretary of Defense, the Under Secretary of Defense 
(Comptroller) shall take the following actions: 
(1) With regard to estimating improper pay-
ments: 
(A) Establish and implement key quality 
assurance procedures, such as reconciliations, to 
ensure the completeness and accuracy of sampled 
populations. 
(B) Revise the procedures for the sampling 
methodologies of the Department of Defense so 
that such procedures— 
(i) comply with Office of Management 
and Budget guidance and generally accept-
ed statistical standards; 
(ii) produce statistically valid im-
proper payment error rates, statistically 
valid improper payment dollar estimates, 
and appropriate confidence intervals for 
both; and
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† HR 2810 PAP
(iii) in meeting clauses (i) and (ii), 
take into account the size and complexity of 
the transactions being sampled. 
(2) With regard to identifying programs suscep-
tible to significant improper payments, conduct a risk 
assessment that complies with the Improper Payments 
Elimination and Recovery Act of 2010 (Public Law 
111–204) and the amendments made by that Act (in 
this section collectively referred to as ‘‘IPERA’’). 
(3) With regard to reducing improper payments, 
establish procedures that produce corrective action 
plans that— 
(A) comply fully with IPERA and associ-
ated Office of Management and Budget guidance, 
including by holding individuals responsible for 
implementing corrective actions and monitoring 
the status of corrective actions; and 
(B) are in accordance with best practices, 
such as those recommended by the Chief Finan-
cial Officers Council, including by providing 
for— 
(i) measurement of the progress made 
toward remediating root causes of improper 
payments; and
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† HR 2810 PAP
(ii) communication to the Secretary of 
Defense and the heads of departments, agen-
cies, and organizations and elements of the 
Department of Defense, and key stake-
holders, on the progress made toward reme-
diating the root causes of improper pay-
ments. 
(4) With regard to implementing recovery audits 
for improper payments, develop and implement proce-
dures to— 
(A) identify costs related to the recovery au-
dits and recovery efforts of the Department of 
Defense; and 
(B) evaluate improper payment recovery ef-
forts in order to ensure that they are cost effec-
tive. 
(5) Monitor the implementation of the revised 
chapter of the Financial Management Regulations on 
recovery audits in order to ensure that the Depart-
ment of Defense, the military departments, the De-
fense Agencies, and the other organizations and ele-
ments of the Department of Defense either conduct re-
covery audits or demonstrate that it is not cost effec-
tive to do so.
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(6) Develop and submit to the Office of Manage-
ment and Budget for approval a payment recapture 
audit plan that fully complies with Office of Manage-
ment and Budget guidance. 
(7) With regard to reporting on improper pay-
ments, design and implement procedures to ensure 
that the annual improper payment and recovery 
audit reporting of the Department of Defense is com-
plete, accurate, and complies with IPERA and associ-
ated Office of Management and Budget guidance. 
SEC. 1006. FINANCIAL OPERATIONS DASHBOARD FOR THE 
DEPARTMENT OF DEFENSE. 
(a) FINANCIAL OPERATIONS DASHBOARD.— 
(1) IN GENERAL.—The Under Secretary of De-
fense (Comptroller) shall develop and maintain on an 
Internet website available to Federal Government 
agencies a tool (commonly referred to as a ‘‘dash-
board)’’ to permit Federal Government officials to 
track key indicators of the financial performance of 
the Department of Defense, including outstanding ac-
counts payable, abnormal accounts payable, out-
standing advances, unmatched disbursements, abnor-
mal undelivered orders, negative unliquidated obliga-
tions, violations of sections 1341 and 1517(a) of title 
31, United States Code (commonly referred to as the
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‘‘Anti-Deficiency Act’’), costs deriving from payment 
delays, interest penalty payments, and improper pay-
ments, and actual savings realized through interest 
payments made, discounts for timely or advanced 
payments, and other financial management and im-
provement initiatives. 
(2) INFORMATION
COVERED.—The tool shall 
cover financial performance information for the mili-
tary departments, the defense agencies, and any other 
organizations or elements of the Department of De-
fense. 
(3) TRACKING OF PERFORMANCE OVER TIME.— 
The tool shall permit the tracking of financial per-
formance over time, including by month, quarter, and 
year, and permit users of the tool to export both cur-
rent and historical data on financial performance. 
(4) UPDATES.—The information covered by the 
tool shall be updated not less frequently than monthly. 
(b) ANNUAL REPORT ON VALUE CREATED BY IM-
PROVED FINANCIAL MANAGEMENT.—Not later than Decem-
ber 31 each year, the Secretary of Defense shall submit to 
Congress a report setting forth, for each military depart-
ment, defense agency, and other organization or element of 
the Department of Defense, the following:
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(1) A description of the value, if any, that ac-
crued as a result of improved financial management 
and related cost-savings initiatives during the most 
recent fiscal year. 
(2) A description of the manner in which such 
value, if any, was applied, and will be applied, to 
provide mission value. 
(3) A target for the savings to be achieved as a 
result of improved financial management and related 
cost-savings initiatives during the fiscal year in 
which such report is submitted. 
SEC. 1007. COMPTROLLER GENERAL OF THE UNITED 
STATES RECOMMENDATIONS ON AUDIT CAPA-
BILITIES AND INFRASTRUCTURE AND RE-
LATED MATTERS. 
(a) BI-MONTHLY SUMMARY OF STATUS OF AUDIT COR-
RECTIVE ACTION PLAN.—The Under Secretary of Defense 
(Comptroller) shall assemble on a bi-monthly basis a man-
agement summary of the current status of actions under 
the consolidated audit corrective action plan (CAP) with 
respect to the critical audit capabilities and associated in-
frastructure of the Department of Defense, the military de-
partments, the Defense Agencies, and other organizations 
and elements of the Department of Defense.
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(b) CENTRALIZED
MONITORING
AND
REPORTING 
PROCESS.—The Under Secretary of Defense (Comptroller) 
shall develop and implement a centralized monitoring and 
reporting process that captures and maintains up-to-date 
information, including the standard data elements rec-
ommended in the Implementation Guide for OMB Circular 
A–123, for all corrective action plans Department of De-
fense-wide that pertain to critical audit capabilities and 
associated infrastructure. 
SEC. 1008. INFORMATION ON DEPARTMENT OF DEFENSE 
FUNDING IN DEPARTMENT PRESS RELEASES 
AND RELATED PUBLIC STATEMENTS ON PRO-
GRAMS, PROJECTS, AND ACTIVITIES FUNDED 
BY THE DEPARTMENT. 
(a) INFORMATION REQUIRED.— 
(1) IN GENERAL.—Subchapter II of chapter 134 
of title 10, United States Code, is amended by insert-
ing after section 2257 the following new section: 
‘‘§ 2258. Department of Defense press releases and re-
lated public statements on Department 
funded programs, projects, and activities 
‘‘Any press release, statement, or other document 
issued to the public by the Department of Defense that de-
scribes a program, project, or activity funded, whether in 
whole or in part, by amounts provided by the Department,
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including any project, project, or activity of a foreign, 
State, or local government, shall clearly state the following: 
‘‘(1) That the program, project, or activity is 
funded, in whole or in part (as applicable), by funds 
provided by the Department. 
‘‘(2) An estimate of the amount of funding from 
the Department that the program, project, or activity 
currently receives.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of subchapter II of chapter 134 
of such title is amended by inserting after the item 
relating to section 2257 the following new item: 
‘‘2258. Department of Defense press releases and related public statements on De-
partment funded programs, projects, and activities.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the date of the enactment of this 
Act, and shall apply with respect to programs, projects, and 
activities funded by the Department of Defense with 
amounts authorized to be appropriated for fiscal years after 
fiscal year 2018.
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Subtitle B—Counterdrug Activities 
SEC. 1011. EXTENSION AND MODIFICATION OF AUTHORITY 
TO SUPPORT A UNIFIED COUNTERDRUG AND 
COUNTERTERRORISM CAMPAIGN IN COLOM-
BIA. 
(a) EXTENSION.—Section 1021 of the Ronald W. 
Reagan National Defense Authorization Act for Fiscal Year 
2005 (Public Law 108–375; 118 Stat. 2042), as most re-
cently amended by section 1013 of the National Defense Au-
thorization Act for Fiscal Year 2017 (Public Law 114–328; 
130 Stat. 2385), is further amended— 
(1) in subsection (a)(1), by striking ‘‘2019’’ and 
inserting ‘‘2022’’; and 
(2) in subsection (c), by striking ‘‘2019’’ and in-
serting ‘‘2022’’. 
(b) SCOPE OF AUTHORITY.—Subsection (a) of such sec-
tion 1021 is further amended— 
(1) in paragraph (1), by striking ‘‘organizations 
designated as’’ and all that follows and inserting 
‘‘terrorist organizations and other illegally armed 
groups determined by the Secretary of Defense to pose 
a significant threat to the national security interests 
of the United States.’’; and
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(2) in paragraph (2), by striking ‘‘authority’’ 
and all that follows and inserting ‘‘authority as fol-
lows: 
‘‘(A) To protect human health and welfare in 
emergency circumstances, including the undertaking 
of rescue operations. 
‘‘(B) To support efforts to demobilize, disarm, 
and reintegrate members of illegally armed groups.’’. 
Subtitle C—Naval Vessels and 
Shipyards 
SEC. 1016. POLICY OF THE UNITED STATES ON MINIMUM 
NUMBER OF BATTLE FORCE SHIPS. 
(a) POLICY.—It shall be the policy of the United States 
to have available, as soon as practicable, not fewer than 
355 battle force ships, comprised of the optimal mix of plat-
forms, with funding subject to the availability of appropria-
tions or other funds. 
(b) BATTLE FORCE SHIPS DEFINED.—In this section, 
the term ‘‘battle force ships’’ has the meaning given the term 
in Secretary of the Navy Instruction 5030.8C. 
SEC. 1017. OPERATIONAL READINESS OF LITTORAL COM-
BAT SHIPS ON EXTENDED DEPLOYMENT. 
(a) IN GENERAL.—Subsection (a) of section 7310 of 
title 10, United States Code, is amended—
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(1) by inserting ‘‘UNDER JURISDICTION OF THE 
SECRETARY OF THE NAVY’’ in the subsection heading 
after ‘‘VESSELS’’; 
(2) by striking ‘‘A naval vessel (or any other ves-
sel under the jurisdiction of the Secretary of the 
Navy)’’ and inserting ‘‘(1) Except as provided in 
paragraph (2), a naval vessel’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(2)(A) Subject to subparagraph (B), in the case of 
a naval vessel classified as a Littoral Combat Ship and op-
erating on deployment, corrective and preventive mainte-
nance or repair (whether intermediate or depot level) and 
facilities maintenance may be performed on the vessel— 
‘‘(i) in a foreign shipyard; 
‘‘(ii) at a facility outside of a foreign shipyard; 
or 
‘‘(iii) at any other facility convenient to the ves-
sel. 
‘‘(B)(i) Corrective and preventive maintenance or re-
pair may be performed on a vessel as described in subpara-
graph (A) if the work is performed by United States Gov-
ernment personnel or United States contractor personnel.
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‘‘(ii) Facilities maintenance may be performed by a 
foreign contractor on a vessel as described in subparagraph 
(A) only as approved by the Secretary of the Navy.’’. 
(b) DEFINITIONS.—Such section is further amended by 
adding at the end the following new subsection: 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘corrective and preventive mainte-
nance or repair’ means— 
‘‘(A) maintenance or repair actions per-
formed as a result of a failure in order to return 
or restore equipment to acceptable performance 
levels; and 
‘‘(B) scheduled maintenance or repair ac-
tions to prevent or discover functional failures. 
‘‘(2) The term ‘facilities maintenance’ means 
preservation or corrosion control efforts and cleaning 
services.’’. 
(c) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of such sec-
tion is amended to read as follows: 
‘‘§ 7310. Overhaul, repair, and maintenance of vessels 
in foreign shipyards and facilities: re-
strictions; exceptions’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 633 of such title is
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amended by striking the item relating to section 7310 
and inserting the following new item: 
‘‘7310. Overhaul, repair, and maintenance of vessels in foreign shipyards and fa-
cilities: restrictions; exceptions.’’. 
SEC. 1018. AUTHORITY TO PURCHASE USED VESSELS TO RE-
CAPITALIZE THE READY RESERVE FORCE 
AND 
THE 
MILITARY 
SEALIFT 
COMMAND 
SURGE FLEET. 
(a) DEPOSIT OF ADDITIONAL FUNDS IN NATIONAL DE-
FENSE SEALIFT FUND.— 
(1) OTHER FUNDS MADE AVAILABLE TO DEPART-
MENT OF THE NAVY.—Subsection (d) of section 2218 
of title 10, United States Code, is amended by adding 
at the end the following new paragraph: 
‘‘(4) Any other funds made available to the De-
partment of the Navy for carrying out the purposes 
of the Fund set forth in subsection (c).’’. 
(2) EXPIRATION OF FUNDS AFTER 5 YEARS.— 
Subsection (g) of such section is amended by striking 
‘‘subsection (d)(1)’’ and inserting ‘‘paragraph (1) or 
(4) of subsection (d)’’. 
(b) AUTHORITY TO PURCHASE USED VESSELS.—Sub-
section (f) of such section is amended by adding at the end 
the following new paragraph: 
‘‘(3)(A) Notwithstanding the limitations in paragraph 
(1) and subsection (c)(1)(E), the Secretary of Defense may,
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as part of a program to recapitalize the Ready Reserve 
Force component of the National Defense Reserve Fleet and 
the Military Sealift Command surge fleet, purchase used 
vessels, regardless of where constructed, from among vessels 
previously participating in the Maritime Security Fleet, if 
available at a reasonable cost (as determined by the Sec-
retary). If such previously participating vessels are not 
available at a reasonable cost, used vessels comparable to 
such previously participating vessels may be purchased 
from any source, regardless of where constructed, if avail-
able at a reasonable cost (as determined by the Secretary). 
‘‘(B) In exercising the authority in subparagraph (A), 
the Secretary shall purchase used vessels constructed in the 
United States, if available at a reasonable cost (as deter-
mined by the Secretary). 
‘‘(C) In exercising the authority in subparagraph (A), 
the Secretary shall ensure that any conversion, moderniza-
tion, maintenance, or repair of vessels occurs in shipyards 
located in the United States, except in emergency situations 
(as determined by the Secretary).’’. 
(c) DEFINITION OF MARITIME SECURITY FLEET.— 
Subsection (k) of such section is amended by adding at the 
end the following new paragraph:
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‘‘(5) The term ‘Maritime Security Fleet’ means 
the fleet established under section 53102(a) of title 
46.’’. 
(d) TECHNICAL AMENDMENT.—Subsection (i) of such 
section is amended by striking ‘‘(50 U.S.C. App. 1744)’’ 
and inserting ‘‘(50 U.S.C. 4405)’’. 
SEC. 1019. SURVEYING SHIPS. 
(a) SURVEYING SHIP REQUIREMENT.—Not later than 
120 days after the date of the enactment of this Act, the 
Chief of Naval Operations shall submit to the congressional 
defense committees a report setting forth a force structure 
assessment that establishes a surveying ship requirement. 
The Chief of Naval Operations shall conduct the assessment 
for purposes of the report, and may limit the assessment 
to surveying ships. 
(b) DEFINITIONS.—In this section: 
(1) The term ‘‘surveying ship’’ has the meaning 
given the term in Secretary of the Navy Instruction 
5030.8C. 
(2) The term ‘‘force structure assessment’’ has the 
meaning given the term in Chief of Naval Operations 
Instruction 3050.27.
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SEC. 1020. PILOT PROGRAM ON FUNDING FOR NATIONAL 
DEFENSE SEALIFT VESSELS. 
(a) IN GENERAL.—The Secretary of the Navy may 
carry out a pilot program to assess the feasability and ad-
visability of the use of the authorities specified in subsection 
(b) in connection with research and development and oper-
ation, maintenance, and lease or charter of national defense 
sealift vessels. 
(b) AUTHORITIES.—The authorities specified in this 
subsection are authorities as follows: 
(1) To derive funds for obligations and expendi-
tures for research and development relating to na-
tional defense sealift vessels from the Research, Devel-
opment, Test, and Evaluation, Navy account. 
(2) To derive funds for obligations and expendi-
tures for operation, maintenance, and lease or charter 
of national defense sealift vessels from the Operation 
and Maintenance, Navy account. 
(3) To use funds in the account referred to in 
paragraph (1) for obligations and expenditures de-
scribed in that paragraph, and to use funds in the ac-
count referred to in paragraph (2) for obligations and 
expenditures described in that paragraph, without the 
transfer of such funds to the National Defense Sealift 
Fund.
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(c) LIMITATION.—The authorities in subsection (b) 
may be used under the pilot program only with respect to 
applicable amounts authorized to be appropriated for the 
Department of Defense for fiscal years 2018 and 2019. 
(d) CONTINUING AVAILABILITY OF NDSF FUNDS.— 
Nothing in this section shall be construed to prohibit the 
use of amounts available in the National Defense Sealift 
Fund for fiscal years 2018 and 2019 for use for the purposes 
of the Fund under section 2218(c) of title 10, United States 
Code, in such fiscal years. 
(e) REPORTS.— 
(1) IN GENERAL.—Not later than 120 days after 
the conclusion of the pilot program, the Secretary, the 
Commander of the United States Transportation 
Command, and the Administrator of the Maritime 
Administration each shall submit to the congressional 
defense committees an independent report on the pilot 
program. 
(2) ELEMENTS.—Each report shall include the 
following: 
(A) A description of lessons learned from 
the pilot program regarding the efficacy of fund-
ing national defense sealift vessel requirements 
using the accounts specified in paragraphs (1)
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† HR 2810 PAP
and (2) of subsection (b) rather than the Na-
tional Defense Sealift Fund. 
(B) An assessment of potential operational, 
financial, and other significant impacts if the 
pilot program is made permanent. 
(C) Such recommendations as the official 
submitting such report considers appropriate re-
garding modifications of section 2218 of title 10, 
United States Code, in light of the pilot pro-
gram. 
(f) DEFINITIONS.—In this section: 
(1) The term ‘‘national defense sealift vessel’’ has 
the meaning given the term in section 2218(k)(3) of 
title 10, United States Code. 
(2) The term ‘‘National Defense Sealift Fund’’ 
means the Fund established by section 2218 of title 
10, United States Code. 
Subtitle D—Counterterrorism 
SEC. 1031. EXTENSION OF PROHIBITION ON USE OF FUNDS 
FOR TRANSFER OR RELEASE OF INDIVIDUALS 
DETAINED AT UNITED STATES NAVAL STA-
TION, GUANTANAMO BAY, CUBA, TO THE 
UNITED STATES. 
Section 1032 of the National Defense Authorization 
Act for Fiscal Year 2017 (Public Law 114–328) is amended
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by striking ‘‘December 31, 2017’’ and inserting ‘‘December 
31, 2018’’. 
SEC. 1032. EXTENSION OF PROHIBITION ON USE OF FUNDS 
TO CONSTRUCT OR MODIFY FACILITIES IN 
THE UNITED STATES TO HOUSE DETAINEES 
TRANSFERRED FROM UNITED STATES NAVAL 
STATION, GUANTANAMO BAY, CUBA. 
Section 1033(a) of the National Defense Authorization 
Act for Fiscal Year 2017 (Public Law 114–328) is amended 
by striking ‘‘December 31, 2017’’ and inserting ‘‘December 
31, 2018’’. 
SEC. 1033. EXTENSION OF PROHIBITION ON USE OF FUNDS 
FOR TRANSFER OR RELEASE TO CERTAIN 
COUNTRIES OF INDIVIDUALS DETAINED AT 
UNITED STATES NAVAL STATION, GUANTA-
NAMO BAY, CUBA. 
Section 1034 of the National Defense Authorization 
Act for Fiscal Year 2017 (Public Law 114–328) is amended 
by striking ‘‘December 31, 2017’’ and inserting ‘‘December 
31, 2018’’.
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SEC. 1034. EXTENSION OF PROHIBITION ON USE OF FUNDS 
FOR REALIGNMENT OF FORCES AT OR CLO-
SURE OF UNITED STATES NAVAL STATION, 
GUANTANAMO BAY, CUBA. 
Section 1035 of the National Defense Authorization 
Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 
2391) is amended by striking ‘‘fiscal year 2017’’ and insert-
ing ‘‘any of fiscal years 2017 through 2021’’. 
SEC. 1035. AUTHORITY TO TRANSFER INDIVIDUALS DE-
TAINED AT UNITED STATES NAVAL STATION, 
GUANTANAMO BAY, CUBA, TO THE UNITED 
STATES TEMPORARILY FOR EMERGENCY OR 
CRITICAL MEDICAL TREATMENT. 
(a) TEMPORARY TRANSFER
FOR MEDICAL TREAT-
MENT.—Notwithstanding section 1032 of the National De-
fense Authorization Act for Fiscal Year 2017 (Public Law 
114–328), as amended by section 1031 of this Act, or any 
similar provision of law enacted after September 30, 2015, 
the Secretary of Defense may, after consultation with the 
Secretary of Homeland Security, temporarily transfer an 
individual detained at Guantanamo to a Department of 
Defense medical facility in the United States for the sole 
purpose of providing the individual medical treatment if 
the Secretary of Defense determines that—
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† HR 2810 PAP
(1) the medical treatment of the individual is 
necessary to prevent death or imminent significant 
injury or harm to the health of the individual; 
(2) the necessary medical treatment is not avail-
able to be provided at United States Naval Station, 
Guantanamo Bay, Cuba, without incurring excessive 
and unreasonable costs; and 
(3) the Department of Defense has provided for 
appropriate security measures for the custody and 
control of the individual during any period in which 
the individual is temporarily in the United States 
under this section. 
(b) LIMITATION ON EXERCISE OF AUTHORITY.—The 
authority of the Secretary of Defense under subsection (a) 
may be exercised only by the Secretary of Defense or another 
official of the Department of Defense at the level of Under 
Secretary of Defense or higher. 
(c) CONDITIONS OF TRANSFER.—An individual who is 
temporarily transferred under the authority in subsection 
(a) shall— 
(1) while in the United States, remain in the 
custody and control of the Secretary of Defense at all 
times; and 
(2) be returned to United States Naval Station, 
Guantanamo Bay, Cuba, as soon as feasible after a
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† HR 2810 PAP
Department of Defense physician determines, in con-
sultation with the Commander, Joint Task Force- 
Guantanamo Bay, Cuba, that any necessary follow- 
up medical care may reasonably be provided the indi-
vidual at United States Naval Station, Guantanamo 
Bay. 
(d) STATUS WHILE IN UNITED STATES.—An indi-
vidual who is temporarily transferred under the authority 
in subsection (a), while in the United States— 
(1) shall be deemed at all times and in all re-
spects to be in the uninterrupted custody of the Sec-
retary of Defense, as though the individual remained 
physically at United States Naval Station, Guanta-
namo Bay, Cuba; 
(2) shall not at any time be subject to, and may 
not apply for or obtain, or be deemed to enjoy, any 
right, privilege, status, benefit, or eligibility for any 
benefit under any provision of the immigration laws 
(as defined in section 101(a)(17) of the Immigration 
and Nationality Act (8 U.S.C. 1101(a)(17)), or any 
other law or regulation; 
(3) shall not be permitted to avail himself of any 
right, privilege, or benefit of any law of the United 
States beyond those available to individuals detained
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† HR 2810 PAP
at United States Naval Station, Guantanamo Bay; 
and 
(4) shall not, as a result of such transfer, have 
a change in any designation that may have attached 
to that detainee while detained at United States 
Naval Station, Guantanamo Bay, pursuant to the 
Authorization for Use of Military Force (Public Law 
107–40), as determined in accordance with applicable 
law and regulations. 
(e) NO CAUSE OF ACTION.—Any decision to transfer 
or not to transfer an individual made under the authority 
in subsection (a) shall not give rise to any claim or cause 
of action. 
(f) LIMITATION ON JUDICIAL REVIEW.— 
(1) LIMITATION.—Except as provided in para-
graph (2), no court, justice, or judge shall have juris-
diction to hear or consider any claim or action 
against the United States or its departments, agen-
cies, officers, employees, or agents arising from or re-
lating to any aspect of the detention, transfer, treat-
ment, or conditions of confinement of an individual 
transferred under this section. 
(2) EXCEPTION
FOR
HABEAS
CORPUS.—The 
United States District Court for the District of Co-
lumbia shall have exclusive jurisdiction to consider an
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application for writ of habeas corpus seeking release 
from custody filed by or on behalf of an individual 
who is in the United States pursuant to a temporary 
transfer under the authority in subsection (a). Such 
jurisdiction shall be limited to that required by the 
Constitution, and relief shall be only as provided in 
paragraph (3). In such a proceeding the court may 
not review, halt, or stay the return of the individual 
who is the object of the application to United States 
Naval Station, Guantanamo Bay, Cuba, pursuant to 
subsection (c). 
(3) RELIEF.—A court order in a proceeding cov-
ered by paragraph (2)— 
(A) may not order the release of the indi-
vidual within the United States; and 
(B) shall be limited to an order of release 
from custody which, when final, the Secretary of 
Defense shall implement in accordance with sec-
tion 1034 of the National Defense Authorization 
Act for Fiscal Year 2016 (10 U.S.C. 801 note). 
(g) NOTIFICATION.—Whenever a temporary transfer of 
an individual detained at Guantanamo is made under the 
authority of subsection (a), the Secretary of Defense shall 
notify the Committees on Armed Services of the Senate and
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† HR 2810 PAP
the House of Representatives of the transfer not later than 
five days after the date on which the transfer is made. 
(h) INDIVIDUAL DETAINED
AT GUANTANAMO DE-
FINED.—In this section, the term ‘‘individual detained at 
Guantanamo’’ means an individual located at United 
States Naval Station, Guantanamo Bay, Cuba, as of Octo-
ber 1, 2009, who— 
(1) is not a national of the United States (as de-
fined in section 101(a)(22) of the Immigration and 
Nationality Act (8 U.S.C. 1101(a)(22)) or a member 
of the Armed Forces of the United States; and 
(2) is— 
(A) in the custody or under the control of 
the Department of Defense; or 
(B) otherwise detained at United States 
Naval Station, Guantanamo Bay. 
(i) APPLICABILITY.—This section shall apply to an in-
dividual temporarily transferred under the authority in 
subsection (a) regardless of the status of any pending or 
completed proceeding or detention on the date of the enact-
ment of this Act.
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Subtitle E—Miscellaneous 
Authorities and Limitations 
SEC. 1041. MATTERS RELATING TO THE SUBMITTAL OF FU-
TURE-YEARS DEFENSE PROGRAMS. 
(a) TIMING OF SUBMITTAL TO CONGRESS.—Subsection 
(a) of section 221 of title 10, United States Code, is amend-
ed by striking ‘‘at or about the same time’’ and inserting 
‘‘not later than five days after the date on which’’. 
(b) MANNER AND FORM OF SUBMITTAL.—Such section 
is further amended— 
(1) in subsection (a) by inserting ‘‘make avail-
able to United States Government entities and’’ before 
‘‘submit to Congress’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(d)(1) The Secretary of Defense shall make available 
to United States Government entities and submit to Con-
gress each future-years defense program under this section 
as follows: 
‘‘(A) By making such program available on an 
Internet website of the Under Secretary of Defense 
(Comptroller) available to United States Government 
in the form of an unclassified electronic database. 
‘‘(B) By delivering printed copies of such pro-
gram to the congressional defense committee.
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‘‘(2) In the event inclusion of classified material in 
a future-years defense program would otherwise render the 
totality of the program classified for purposes of this sub-
section— 
‘‘(A) such program shall be made available to 
United States Government entities and submitted to 
Congress in unclassified form, with such material at-
tached as a classified annex; and 
‘‘(B) such annex shall be submitted to the con-
gressional defense committees, the Congressional 
Budget Office, the Comptroller General of the United 
States, and the Congressional Research Service.’’. 
(c) ACCURACY OF INFORMATION.—Such section is fur-
ther amended by adding at the end the following new sub-
section: 
‘‘(e) Each future-years defense program under this sub-
section shall be accompanied by a certification by the Under 
Secretary of Defense (Comptroller), in the case of the De-
partment of Defense, and the comptroller of each military 
department, in the case of such military department, that 
any information entered into the Standard Data Collection 
System of the Department of Defense, the Comptroller Infor-
mation System, or any other data system, as applicable, 
for purposes of assembling such future-years defense pro-
gram was accurate.’’.
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† HR 2810 PAP
(d) CONFORMING AMENDMENTS.— 
(1) HEADING AMENDMENT.—The heading of sec-
tion 221 of such title is amended to read as follows: 
‘‘§ 221. Future-years defense program: consistency in 
budgeting; availability to United States 
Government entities and submittal to Con-
gress’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 9 of such title is amended 
by striking the item relating to section 221 and in-
serting the following new item: 
‘‘221. Future-years defense program: consistency in budgeting; availability to 
United States Government entities and submittal to Congress.’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the date of the enactment of this 
Act, and shall apply to future-years defense programs sub-
mitted at the time of budgets of the President for fiscal years 
beginning after fiscal year 2018. 
(f) DOD GUIDANCE.—The Secretary of Defense shall, 
in coordination with the Under Secretary of Defense 
(Comptroller), update Department of Defense Financial 
Management Regulation 7000.14–R, and any other appro-
priate instructions and guidance, to ensure that the Depart-
ment of Defense takes appropriate actions to comply with 
the amendments made by this section in the submittal of
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future-years defense programs in calendar years after cal-
endar year 2017. 
SEC. 1042. DEPARTMENT OF DEFENSE INTEGRATION OF IN-
FORMATION 
OPERATIONS 
AND 
CYBER-EN-
ABLED INFORMATION OPERATIONS. 
(a) INTEGRATION OF DEPARTMENT OF DEFENSE IN-
FORMATION OPERATIONS AND CYBER-ENABLED INFORMA-
TION OPERATIONS.— 
(1) 
ESTABLISHMENT
OF
CROSS-FUNCTIONAL 
TASK FORCE.— 
(A) IN GENERAL.—The Secretary of Defense 
shall establish a cross-functional task force con-
sistent with section 911(c)(1) of the National De-
fense Authorization Act for Fiscal Year 2017 
(114–328; 10 U.S.C. 111 note) to integrate 
across the organizations of the Department of 
Defense responsible for information operations, 
military deception, public affairs, electronic war-
fare, and cyber operations to produce integrated 
strategy, planning, and budgeting to counter, 
deter, and conduct strategic information oper-
ations and cyber-enabled information operations. 
(B) DUTIES.—The task force shall carry out 
the following:
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(i) Development of a strategic frame-
work for the conduct by the Department of 
Defense of information operations, includ-
ing cyber-enabled information operations, 
coordinated across all relevant Department 
of Defense entities, including both near-term 
and long-term guidance for the conduct of 
such coordinated operations. 
(ii) Development and dissemination of 
a common operating paradigm across the 
organizations specified in subparagraph (A) 
of the influence, deception, and propaganda 
activities of key malign actors, including in 
cyberspace. 
(iii) Development of guidance for, and 
promotion of, the liaison capability of the 
Department to interact with the private sec-
tor, including social media, on matters re-
lated to the influence activities of malign 
actors. 
(2) HEAD OF CROSS-FUNCTIONAL TASK FORCE.— 
(A) IN GENERAL.—The Secretary of Defense 
shall appoint as the head of the task force such 
individual as the Secretary considers appro-
priate from among individuals serving in the
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Department as an Under Secretary of Defense or 
in such other position within the Department of 
lesser order of precedence. 
(B) RESPONSIBILITIES.—The responsibil-
ities of the head of the task force are as follows: 
(i) Oversight of strategic policy and 
guidance. 
(ii) Overall resource allocation for the 
integration of information operations and 
cyber operations of the Department. 
(iii) Ensuring the task force faithfully 
pursues the purpose set forth in subpara-
graph (A) of paragraph (1) and carries out 
its duties as set forth in subparagraph (B) 
of such paragraph. 
(iv) Carrying out such activities as are 
required of the head of the task force under 
subsections (b) and (c). 
(b) REQUIREMENTS AND PLANS FOR INFORMATION 
OPERATIONS.— 
(1) COMBATANT COMMAND PLANNING.—The Sec-
retary shall require each commander of a combatant 
command to develop such requirements and specific 
plans as may be necessary for the conduct of informa-
tion operations, including plans for deterring infor-
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mation operations, particularly in the cyber domain, 
by malign actors against the United States, allies of 
the United States, and interests of the United States. 
(2) IMPLEMENTATION PLAN FOR DEPARTMENT OF 
DEFENSE STRATEGY FOR OPERATIONS IN THE INFOR-
MATION ENVIRONMENT.— 
(A) IN GENERAL.—Not later than 90 days 
after the date of the enactment of this Act, the 
head of the task force shall— 
(i) review the Department of Defense 
Strategy for Operations in the Information 
Environment, dated June 2016; and 
(ii) submit to the congressional defense 
committees a plan for implementation of 
such strategy. 
(B) ELEMENTS.—The implementation plan 
shall include, at a minimum, the following: 
(i) An accounting of the efforts under-
taken in support of the strategy described in 
subparagraph (A)(i) since it was issued in 
June 2016. 
(ii) A description of any updates or 
changes to such strategy that have been 
made since it was first issued, as well as
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any expected updates or changes in light of 
the establishment of the task force. 
(iii) A description of the role of the De-
partment as part of a broader whole-of-gov-
ernment strategy for strategic communica-
tions, including assumptions about the roles 
and contributions of other Government de-
partments and agencies to such a strategy. 
(iv) 
Defined 
actions, 
performance 
metrics, and projected timelines to achieve 
the following specified tasks: 
(I) Train, educate, and prepare 
commanders and their staffs, and the 
Joint Force as a whole, to lead, man-
age, and conduct operations in the in-
formation environment. 
(II) Train, educate, and prepare 
information operations professionals 
and practitioners to enable effective op-
erations in the information environ-
ment. 
(III) Manage information oper-
ations professionals, practitioners, and 
organizations to meet emerging oper-
ational needs.
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(IV) Establish a baseline assess-
ment of current ability of the Depart-
ment to conduct operations in the in-
formation environment, including an 
identification of the types of units and 
organizations currently responsible for 
building and employing information- 
related capabilities and an assignment 
of appropriate roles and missions for 
each type of unit or organization. 
(V) Develop the ability of the De-
partment and operating forces to en-
gage, assess, characterize, forecast, and 
visualize the information environment. 
(VI) Develop and maintain the 
proper capabilities and capacity to op-
erate effectively in the information en-
vironment in coordination with imple-
mentation of related cyber and other 
strategies. 
(VII) Develop and maintain the 
capability to assess accurately the ef-
fect of operations in the information 
environment.
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(VIII) Adopt, adapt, and develop 
new science and technology for the De-
partment to operate effectively in the 
information environment. 
(IX) Develop and adapt informa-
tion 
environment-related 
concepts, 
policies, and guidance. 
(X) Ensure doctrine relevant to 
operations in the information environ-
ment remains current and responsive 
based on lessons learned and best prac-
tices. 
(XI) Develop, update, and de-con-
flict authorities and permissions, as 
appropriate, to enable effective oper-
ations in the information environment. 
(XII) Establish and maintain 
partnerships among Department and 
interagency partners to enable more ef-
fective whole-of-government operations 
in the information environment. 
(XIII) Establish and maintain 
appropriate interaction with entities 
that are not part of the Federal Gov-
ernment, including entities in indus-
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try, entities in academia, Federally 
funded research and development cen-
ters, and other organizations, to enable 
operations in the information environ-
ment. 
(XIV) Establish and maintain 
collaboration between and among the 
Department and international part-
ners, including partner countries and 
nongovernmental organizations, to en-
able more effective operations in the in-
formation environment. 
(XV) Foster, enhance, and lever-
age partnership capabilities and ca-
pacities. 
(v) An analysis of any personnel, 
resourcing, capability, authority, or other 
gaps that will need to be addressed to en-
sure effective implementation of the strategy 
described in subparagraph (A)(i) across all 
relevant elements of the Department. 
(vi) An investment framework and 
projected timeline for addressing any gaps 
identified under clause (v).
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(vii) Such other matters as the Sec-
retary of Defense considers relevant. 
(C) PERIODIC STATUS REPORTS.—Not later 
than 90 days after the date on which the imple-
mentation plan is submitted under subpara-
graph (A)(ii) and not less frequently than once 
every 90 days thereafter until the date that is 
three years after the date of such submittal, the 
head of the task force shall submit to the congres-
sional defense committees a report describing the 
status of the efforts of the Department to accom-
plish the tasks specified under clauses (iv) and 
(vi) of subparagraph (B). 
(c) TRAINING AND EDUCATION.—Consistent with the 
elements of the implementation plan required under clauses 
(i) and (ii) of subsection (b)(2)(B)(4), the head of the task 
force shall establish programs to provide training and edu-
cation to such members of the Armed Forces and civilian 
employees of the Department of Defense as the Secretary 
considers appropriate to ensure understanding of the role 
of information in warfare, the central goal of all military 
operations to affect the perceptions, views, and decision- 
making of adversaries, and the effective management and 
conduct of operations in the information environment.
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(d) ESTABLISHMENT OF DEFENSE INTELLIGENCE OF-
FICER FOR INFORMATION OPERATIONS AND CYBER OPER-
ATIONS.—The Secretary shall establish a position within 
the Department of Defense known as the ‘‘Defense Intel-
ligence Officer for Information Operations and Cyber Oper-
ations’’. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘head of the task force’’ means the 
head appointed under subsection (a)(2)(A). 
(2) The term ‘‘implementation plan’’ means the 
plan required by subsection (b)(2)(A)(ii). 
(3) The term ‘‘task force’’ means the cross-func-
tional 
task 
force 
established 
under 
subsection 
(a)(1)(A). 
SEC. 1043. PROHIBITION ON LOBBYING ACTIVITIES WITH 
RESPECT TO THE DEPARTMENT OF DEFENSE 
BY 
CERTAIN 
OFFICERS 
OF 
THE 
ARMED 
FORCES AND CIVILIAN EMPLOYEES OF THE 
DEPARTMENT WITHIN TWO YEARS OF SEPA-
RATION FROM MILITARY SERVICE OR EM-
PLOYMENT WITH THE DEPARTMENT. 
(a) PROHIBITION.—An individual described in sub-
section (b) may not engage in lobbying activities with re-
spect to the Department of Defense during the two-year pe-
riod beginning on the date of retirement or separation from
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service in the Armed Forces or the date of retirement or 
separation from service with the Department, as applicable. 
(b) COVERED INDIVIDUALS.—An individual described 
in this section is the following: 
(1) An officer of the Armed Forces in grade O– 
7 or higher at the time of retirement or separation 
from the Armed Forces. 
(2) A civilian employee of the Department of De-
fense at the Senior Executive Service (SES) level or 
higher at the time of retirement or separation from 
service with the Department. 
(c) LOBBYING ACTIVITIES WITH RESPECT TO THE DE-
PARTMENT OF DEFENSE DEFINED.—In this section: 
(1) The term ‘‘lobbying activities with respect to 
the Department of Defense’’ means the following: 
(A) Lobbying contacts and other lobbying 
activities with covered executive branch officials 
and covered legislative branch officials with re-
spect to the Department of Defense. 
(B) Lobbying contacts with covered execu-
tive branch officials described in subparagraphs 
(C) through (F) of section 3(3) of the Lobbying 
Disclosure Act of 1995 (2 U.S.C. 1602(3)) in the 
Department of Defense.
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(2) The term ‘‘lobbying activities’’ has the mean-
ing given that term in section 3(7) of the Lobbying 
Disclosure Act of 1995 (2 U.S.C. 1602(7)). 
(3) The term ‘‘covered executive branch official’’ 
has the meaning given that term in section 3(3) of the 
Lobbying Disclosure Act of 1995 (2 U.S.C. 1602(3)). 
(4) The term ‘‘covered legislative branch official’’ 
has the meaning given that term in section 3(4) of the 
Lobbying Disclosure Act of 1995 (2 U.S.C. 1602(4)). 
SEC. 1044. DEFINITION OF ‘‘UNMANNED AERIAL VEHICLE’’ 
FOR PURPOSES OF TITLE 10, UNITED STATES 
CODE. 
Section 101(e) of title 10, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(6) UNMANNED
AERIAL
VEHICLE.—The term 
‘unmanned aerial vehicle’— 
‘‘(A) means an aerial vehicle that is not 
controlled by a human being after launch, such 
as a cruise missile; and 
‘‘(B) does not include a remotely piloted 
aerial vehicle if the vehicle is controlled by a 
human being after launch.’’.
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SEC. 1045. TECHNICAL AMENDMENT RELATING TO MANAGE-
MENT OF MILITARY TECHNICIANS. 
Section 1053(a)(1) of the National Defense Authoriza-
tion Act for Fiscal Year 2016 (10 U.S.C. 10216 note) is 
amended by striking ‘‘20 percent’’ and inserting ‘‘12.6 per-
cent’’. 
SEC. 1046. EXTENSION OF PROHIBITION ON USE OF FUNDS 
FOR 
RETIREMENT 
OF 
LEGACY 
MARITIME 
MINE COUNTERMEASURE PLATFORMS. 
Section 1045(a) of the National Defense Authorization 
Act for Fiscal Year 2017 (Public Law 114–328) is amended 
in the matter preceding paragraph (1) by striking ‘‘author-
ized to be appropriated by this Act or otherwise made avail-
able for fiscal year 2017 for the Navy’’ and inserting ‘‘au-
thorized to be appropriated or otherwise made available for 
the Navy for fiscal year 2017 or 2018’’. 
SEC. 1047. SENSE OF CONGRESS ON THE BASING OF KC–46A 
AIRCRAFT 
OUTSIDE 
THE 
CONTINENTAL 
UNITED STATES. 
(a) FINDING.—Congress finds that the Department of 
Defense is continuing its process of permanently stationing 
KC–46A aircraft at installations in the continental United 
States (CONUS) and forward-basing outside the conti-
nental United States (OCONUS). 
(b) SENSE OF CONGRESS.—It is the sense of Congress 
that the Secretary of the Air Force, as part of the strategic
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basing process for KC–46A aircraft, should continue to 
place emphasis on and consider the benefits derived from 
locations outside the continental United States that— 
(1) support day-to-day air refueling operations, 
operations plans of the combatant commands, and 
flexibility for contingency operations, and have— 
(A) a strategic location that is essential to 
the defense of the United States and its interests; 
(B) receivers for boom or probe-and-drogue 
training opportunities with joint and inter-
national partners; and 
(C) sufficient airfield and airspace avail-
ability and capacity to meet requirements; and 
(2) possess facilities that— 
(A) take full advantage of existing infra-
structure to provide— 
(i) runway, hangars, and aircrew and 
maintenance operations; and 
(ii) sufficient fuels receipt, storage, and 
distribution capacities for a 5-day peace-
time operating stock; and 
(B) minimize overall construction and oper-
ational costs.
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SEC. 1048. AUTHORIZATION TO PROCURE UP TO SIX POLAR- 
CLASS ICEBREAKERS. 
(a) AUTHORITY TO PROCURE ICEBREAKERS.— 
(1) IN GENERAL.—The Secretary of the depart-
ment in which the Coast Guard is operating may, in 
consultation with the Secretary of the Navy, enter 
into a contract or contracts for the procurement of up 
to six polar-class icebreakers, including— 
(A) polar-class heavy icebreakers; and 
(B) polar-class medium icebreakers. 
(2) CONDITION FOR OUT-YEAR CONTRACT PAY-
MENTS.—A contract entered into under paragraph (1) 
shall provide that any obligation of the United States 
to make a payment under the contract for a fiscal 
year after fiscal year 2018 is subject to the avail-
ability of appropriations or funds for that purpose for 
such later fiscal year. 
(b) COMPTROLLER GENERAL OF THE UNITED STATES 
REPORT.— 
(1) IN GENERAL.—Not later than 45 days after 
the date of the enactment of this Act, the Comptroller 
General of the United States shall submit to the Com-
mittees on Armed Services of the Senate and the 
House of Representatives, the Committee on Com-
merce, Science, and Transportation of the Senate, 
and the Committee on Transportation and Infrastruc-
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† HR 2810 PAP
ture of the House of Representatives a report assessing 
the cost and procurement schedule for new United 
States icebreakers. 
(2) ELEMENTS.—The report required in para-
graph (1) shall include an analysis of the following: 
(A) The current status of the efforts of the 
Coast Guard to acquire new icebreaking capa-
bility, including coordination through the Inte-
grated Program Office. 
(B) Actions being taken by the Coast Guard 
to incorporate key practices from other nations 
that procure icebreakers to increase knowledge 
and reduce costs and risks. 
(C) The extent by which the cost and sched-
ule for building Coast Guard icebreakers differs 
from those in other countries, if known. 
(D) The extent that innovative acquisition 
practices (such as multiyear funding and block 
buys) may be applied to icebreaker acquisition to 
reduce the cost and accelerate the schedule. 
(E) A capacity replacement plan to miti-
gate a potential icebreaker capability gap if the 
Polar Star cannot remain in service. 
(F) Any other matters the Comptroller Gen-
eral considers appropriate.
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SEC. 1049. SENSE OF CONGRESS ON USE OF TEST SITES 
FOR 
RESEARCH 
AND 
DEVELOPMENT 
ON 
COUNTERING 
UNMANNED 
AIRCRAFT 
SYS-
TEMS. 
It is the sense of Congress that— 
(1) the armed unmanned aircraft systems de-
ployed by adversaries for military purposes pose a 
threat to military installations, critical infrastruc-
ture, and members of the Armed Forces in conflict 
areas like Iraq and Syria; 
(2) the unmanned aircraft systems test sites des-
ignated by the Federal Aviation Administration offer 
unique capabilities, expertise, and airspace for re-
search and development related to unmanned aircraft 
systems; and 
(3) the Armed Forces should, as appropriate and 
to the extent practicable, seek to leverage the test sites 
described in paragraph (2), as well as existing De-
partment of Defense facilities with appropriate exper-
tise, for research and development on capabilities to 
counter the nefarious use of unmanned aircraft sys-
tems. 
Subtitle F—Studies and Reports 
SEC. 1061. ASSESSMENT OF GLOBAL FORCE POSTURE. 
(a) ASSESSMENT REQUIRED.—The Secretary of De-
fense shall, in consultation with the Chairman of the Joint
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Chiefs of Staff and the commanders of the combatant com-
mands, provide for and oversee an assessment of the global 
force posture of the Armed Forces. 
(b) REPORT.—Not later than the earlier of 180 days 
after the production of the 2018 National Defense Strategy 
(which is intended to be closely coordinated with and com-
plementary to a new National Security Strategy) or Decem-
ber 31, 2018, the Secretary shall submit to the Committees 
on Armed Services of the Senate and the House of Rep-
resentatives a report on the assessment required by sub-
section (a). The report shall include the following: 
(1) Recommendations for force size, structure, 
and basing in Europe, the Middle East, and Asia Pa-
cific that reflect and complement the force sizing con-
struct included in the 2018 National Defense Strategy 
in order to guide the growth of the force structure of 
the Armed Forces, which recommendations shall be 
based on an evaluation of the relative costs of rota-
tional and forward-based forces as well as impacts to 
deployment timelines of threats to lines of commu-
nication and anti-access area denial capabilities of 
potential adversaries. 
(2) An assessment by each commander of a geo-
graphic combatant command of the capability and 
force structure gaps within the context of an evalua-
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tion of the potential threats in the theater of oper-
ations of the combatant command concerned and the 
operation plans that such combatant command are 
expected to execute. 
(3) An evaluation of the concept of operations 
and the sources of manpower for headquarters re-
quired to oversee and direct execution of current oper-
ations plans. 
SEC. 1062. ARMY MODERNIZATION STRATEGY. 
(a) STRATEGY REQUIRED.—The Secretary of the 
Army shall develop a modernization strategy for the total 
Army. 
(b) ELEMENTS.—The strategy required by subsection 
(a) shall include the following: 
(1) A comprehensive description of the future 
total Army, including key objectives, war fighting 
challenges, and risks, sufficient to establish require-
ments, set priorities, identify opportunity costs, and 
establish acquisition time lines for the total Army 
over a period beyond the period of the current future- 
years defense program under section 221 of title 10, 
United States Code. 
(2) Mechanisms for identifying programs of the 
Army that may be unnecessary, or do not perform ac-
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cording to expectations, in achieving the future total 
Army. 
(3) A comprehensive description of the manner 
in which the future total Army intends to fight and 
win as part of a joint force engaged in combat across 
all operational domains. 
(4) A comprehensive description of the mecha-
nisms required by the future total Army to maintain 
command, 
control, 
and 
communications 
and 
sustainment. 
(c) PARTICULAR CONSIDERATIONS.—In developing the 
strategy required by subsection (a), the Secretary shall take 
into particular account the following: 
(1) Current trends and developments in weapons 
and equipment technologies. 
(2) New tactics and force design of peer adver-
saries, including the rapid pace of development of 
such tactics and force design by such adversaries. 
(d) REPORT.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary 
shall submit to the congressional defense committees 
the strategy required by subsection (a).
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(2) FORM.—If the report is submitted in classi-
fied form, the report shall be accompanied by an un-
classified summary. 
SEC. 1063. REPORT ON ARMY PLAN TO IMPROVE OPER-
ATIONAL UNIT READINESS BY REDUCING 
NUMBER OF NON-DEPLOYABLE SOLDIERS AS-
SIGNED TO OPERATIONAL UNITS. 
Not later than 90 days after the date of the enactment 
of this Act, the Secretary of the Army shall submit to the 
congressional defense committees a report on the plans of 
the Army to improve operational unit readiness in the 
Army by reducing the number of non-deployable soldiers 
assigned to operational units of the Army and replacing 
such soldiers with soldiers capable of world-wide deploy-
ment. 
SEC. 1064. EFFORTS TO COMBAT PHYSIOLOGICAL EPISODES 
ON CERTAIN NAVY AIRCRAFT. 
(a) IN GENERAL.—Not later than 30 days after the 
date of the enactment of this Act, and every 90 days there-
after until January 1, 2020, the Secretary of the Navy shall 
provide to the congressional defense committees information 
on efforts by the Navy’s Physiological Episode Team to com-
bat the prevalence of physiological episodes in F/A–18 Hor-
net and Super Hornet, EA–18G Growler, and T–45 Gos-
hawk aircraft.
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(b) ELEMENTS.—The information required under sub-
section (a) shall include the following elements: 
(1) A description of Naval Aviation Enterprise 
activities addressing physiological episodes during the 
reporting period. 
(2) An estimate of funding expended in support 
of the activities described under paragraph (1). 
(3) A description of any planned or executed 
changes to Physiological Episode Team structure or 
processes. 
(4) A description of activities planned for the 
upcoming two quarters. 
(c) FORM.—The information required under subsection 
(a) may be provided in a written report or a briefing. 
SEC. 1065. STUDIES ON AIRCRAFT INVENTORIES FOR THE 
AIR FORCE. 
(a) INDEPENDENT STUDIES.— 
(1) IN GENERAL.—The Secretary of Defense shall 
provide for the performance of three independent stud-
ies of alternative aircraft inventories through 2030, 
and an associated force-sizing construct, for the Air 
Force. 
(2) SUBMITTAL TO CONGRESS.—Not later than 
March 1, 2019, the Secretary shall submit the results 
of each study to the congressional defense committees.
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(3) FORM.—The result of each study shall be sub-
mitted in unclassified form, but may include a classi-
fied annex. 
(b) ENTITIES TO PERFORM STUDIES.—The Secretary 
shall provide for the studies under subsection (a) to be per-
formed as follows: 
(1) One study shall be performed by the Sec-
retary of the Air Force, in consultation with the Di-
rector of the Office of Net Assessment. 
(2) One study shall be performed by a federally 
funded research and development center. 
(3) One study shall be conducted by an inde-
pendent, nongovernmental institute which is described 
in section 501(c)(3) of the Internal Revenue Code of 
1986 and exempt from taxation under section 501(a) 
of such Code, and has recognized credentials and ex-
pertise in national security and military affairs. 
(c) PERFORMANCE OF STUDIES.— 
(1) INDEPENDENT
PERFORMANCE.—The Sec-
retary shall require the studies under this section to 
be conducted independently of one another. 
(2) MATTERS
TO
BE
CONSIDERED.—In per-
forming a study under this section, the organization 
performing the study, while being aware of current 
and projected aircraft inventories for the Air Force,
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shall not be limited by such current or projected air-
craft inventories, and shall consider the following 
matters: 
(A) The national security and national de-
fense strategies of the United States. 
(B) Potential future threats to the United 
States and to United States air and space forces 
through 2030. 
(C) Traditional roles and missions of the 
Air Force. 
(D) Alternative roles and missions for the 
Air Force. 
(E) The force-sizing methodology and ra-
tionale used to calculated aircraft inventory lev-
els. 
(F) Other government and nongovernment 
analyses that would contribute to the study 
through variations in study assumptions or po-
tential scenarios. 
(G) The role of evolving technology on fu-
ture air forces, including unmanned and space 
systems. 
(H) Opportunities for reduced operation 
and sustainment costs.