689 
HR 2500 PCS
best practices identified through the use of the ‘‘middle 
tier’’ of acquisition programs described under section 804 
of the National Defense Authorization Act for Fiscal Year 
2016 (Public Law 114–92; 10 U.S.C. 2302 note). The 
briefing shall be accompanied by a written analysis— 
(1) identifying which lessons learned can be ap-
plied to— 
(A) ‘‘middle tier’’ acquisition programs; 
and 
(B) any major defense acquisition program 
(as defined under section 2430 of title 10, 
United States Code); 
(2) describing the extent to which covered risk 
should be a factor in determining which acquisition 
authority to use, including— 
(A) an acquisition pathway as described 
under subsection (b) of section 804 of the Na-
tional Defense Authorization Act for Fiscal 
Year 2016 (Public Law 114–92; 10 U.S.C. 
2302 note); 
(B) the authority described under section 
2371b of title 10, United States Code; 
(C) acquisition authority relating to urgent 
operational needs; 
(D) a traditional acquisition process; or 
VerDate Sep 11 2014 
20:18 Aug 11, 2020
Jkt 099200
PO 00000
Frm 00689
Fmt 6652
Sfmt 6201
E:\BILLS\H2500.PCS
H2500
690 
HR 2500 PCS
(E) any other acquisition authority, as de-
termined by the Secretary; 
(3) describing whether any requirements appli-
cable to major defense acquisition programs should 
be applicable to ‘‘middle tier’’ acquisition programs 
under such section; and 
(4) recommending amendments or revisions (as 
applicable) to law or regulation, and including avail-
able data to support such recommendations. 
(b) COVERED RISK DEFINED.—In this section, the 
term ‘‘covered risk’’ shall have the meaning given by the 
Secretary of Defense, and shall include a consideration of 
cost, schedule, performance, risk to operational success. 
SEC. 823. RATES FOR PROGRESS PAYMENTS OR PERFORM-
ANCE-BASED PAYMENTS. 
(a) CONSISTENCY
IN ESTABLISHMENT
OF RATES 
FOR PROGRESS PAYMENTS
OR PERFORMANCE-BASED 
PAYMENTS.—Section 2307(a) of title 10, United States 
Code, is amended by inserting the following new para-
graph: 
‘‘(3) Except as provided in subsection (g), the 
Secretary of Defense shall not establish a rate for 
progress payments or a rate for performance-based 
payments that is lower than the rate for progress 
payments or a rate for performance-based payments, 
VerDate Sep 11 2014 
20:18 Aug 11, 2020
Jkt 099200
PO 00000
Frm 00690
Fmt 6652
Sfmt 6201
E:\BILLS\H2500.PCS
H2500
691 
HR 2500 PCS
as applicable, established by another head of an 
agency.’’. 
(b) PAYMENT AUTHORITY.—Section 2307(a)(1) of 
title 10, United States Code, is amended in the matter 
preceding subparagraph (A) by striking ‘‘The head of any 
agency may’’ and inserting ‘‘The head of an agency 
may—’’. 
(c) NOTICE OF REVISION TO RATES FOR PROGRESS 
PAYMENTS OR PERFORMANCE-BASED PAYMENTS.— 
(1) TO CONGRESS.—The Secretary of Defense 
may not issue rules to revise the rate for progress 
payments or the rate for performance-based pay-
ments unless the Secretary provides the congres-
sional defense committees with a notice of deter-
mination of need for such revision. This notice shall 
include— 
(A) a justification, including the data and 
analysis supporting the justification, for the re-
vision; and 
(B) an assessment of how the revision will 
create a more effective acquisition process and 
benefit the defense industrial base. 
(2) PUBLICATION.—The Secretary shall publish 
the notice required by paragraph (1) in the Federal 
Register not later than five business days after pro-
VerDate Sep 11 2014 
20:18 Aug 11, 2020
Jkt 099200
PO 00000
Frm 00691
Fmt 6652
Sfmt 6201
E:\BILLS\H2500.PCS
H2500
692 
HR 2500 PCS
viding such notice to the congressional defense com-
mittees. 
SEC. 824. ADDITIONAL REQUIREMENTS FOR NEGOTIATIONS 
FOR 
NONCOMMERCIAL 
COMPUTER 
SOFT-
WARE. 
Section 2322a of title 10, United States Code, is 
amended by adding at the end the following new sub-
sections: 
‘‘(c) RIGHTS TO NONCOMMERCIAL COMPUTER SOFT-
WARE.—As part of any negotiation for the acquisition of 
noncommercial computer software, the Secretary of De-
fense may not require a contractor to sell or otherwise re-
linquish to the Federal Government any rights to non-
commercial computer software developed exclusively at 
private expense, except for rights related to— 
‘‘(1) corrections or changes to such software or 
related materials for such software furnished to the 
contractor by the Department of Defense; 
‘‘(2) such software or related materials for such 
software that is otherwise publicly available or that 
has been released or disclosed by the contractor or 
subcontractor without restrictions on further use, re-
lease, or disclosure, other than a release or disclo-
sure resulting from the sale, transfer, or other as-
VerDate Sep 11 2014 
20:18 Aug 11, 2020
Jkt 099200
PO 00000
Frm 00692
Fmt 6652
Sfmt 6201
E:\BILLS\H2500.PCS
H2500
693 
HR 2500 PCS
signment of interest in such software or related ma-
terials to another party; 
‘‘(3) such software or related materials for such 
software obtained with unlimited rights under an-
other contract with the Federal Government or as a 
result of such a negotiation; or 
‘‘(4) such software or related materials for such 
software furnished to the Department of Defense 
under a contract or subcontract that includes— 
‘‘(A) restricted rights in such software, 
limited rights in technical data, or government 
purpose rights, where such restricted rights, 
limited rights, or government purpose rights 
have expired; or 
‘‘(B) government purpose rights, where the 
contractor’s exclusive right to use such software 
or related materials for commercial purposes 
has expired. 
‘‘(d) CONSIDERATION OF SPECIALLY NEGOTIATED 
LICENSES.—The Secretary of Defense shall, to the max-
imum extent practicable, negotiate and enter into a con-
tract with a contractor for a specially negotiated license 
for noncommercial computer software or related materials 
for such software necessary to support the product sup-
VerDate Sep 11 2014 
20:18 Aug 11, 2020
Jkt 099200
PO 00000
Frm 00693
Fmt 6652
Sfmt 6201
E:\BILLS\H2500.PCS
H2500
694 
HR 2500 PCS
port strategy of a major weapon system or subsystem of 
a major weapon system.’’. 
SEC. 825. RESPONSIBILITY FOR DATA ANALYSIS AND RE-
QUIREMENTS VALIDATION FOR SERVICES 
CONTRACTS. 
Section 2329 of title 10, United States Code, is 
amended— 
(1) in subsection (a), by inserting ‘‘, acting 
through the Under Secretary of Defense (Comp-
troller) and Director of Cost Assessment and Pro-
gram Evaluation,’’ after ‘‘Secretary of Defense’’; 
(2) in subsection (b), in the matter preceding 
paragraph (1), by inserting ‘‘, acting through the 
Under Secretary of Defense (Comptroller) and Di-
rector of Cost Assessment and Program Evalua-
tion,’’ after ‘‘Secretary of Defense’’; and 
(3) in subsection (c)(2)(A), by inserting ‘‘, act-
ing through the Under Secretary of Defense (Comp-
troller) and Director of Cost Assessment and Pro-
gram Evaluation,’’ after ‘‘Secretary of Defense’’. 
SEC. 826. ANNUAL REPORTS ON AUTHORITY TO CARRY OUT 
CERTAIN PROTOTYPE PROJECTS. 
(a) IN GENERAL.—Section 2371b of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new subsections: 
VerDate Sep 11 2014 
20:18 Aug 11, 2020
Jkt 099200
PO 00000
Frm 00694
Fmt 6652
Sfmt 6201
E:\BILLS\H2500.PCS
H2500