325 
‘‘§ 2380b. Treatment of commingled items purchased 
by contractors as commercial products’’. 
(H) The table of sections at the beginning of 
such chapter is amended to read as follows: 
‘‘2375. Relationship of other provisions of law to procurement of commercial prod-
ucts and commercial services. 
‘‘2376. Definitions. 
‘‘2377. Preference for commercial products and commercial services. 
‘‘2379. Procurement of a major weapon system as a commercial product: require-
ment for prior determination by Secretary of Defense and notifi-
cation to Congress. 
‘‘2380. Commercial product and commercial service determinations by Depart-
ment of Defense. 
‘‘2380a. Treatment of certain products and services as commercial products and 
commercial services. 
‘‘2380b. Treatment of commingled items purchased by contractors as commercial 
products.’’. 
(e) OTHER AMENDMENTS
TO TITLE 10, UNITED 
STATES CODE.—Title 10, United States Code, is further 
amended as follows: 
(1) Section 2226(b) is amended by striking ‘‘for 
services’’ and all that follows through ‘‘deliverable 
items’’ and inserting ‘‘for services or deliverable 
items’’. 
(2) Section 2384(b)(2) is amended by striking 
‘‘commercial items’’ and inserting ‘‘commercial prod-
ucts’’. 
(3) Section 2393(d) is amended by striking 
‘‘commercial items (as defined in section 103 of title 
41)’’ and inserting ‘‘commercial products or commer-
cial services (as defined in sections 103 and 103a, re-
spectively, of title 41)’’. 
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(4) Section 2402(d) is amended— 
(A) in paragraph (1), by striking ‘‘commer-
cial items’’ both places it appears and inserting 
‘‘commercial products or commercial services’’; 
and 
(B) in paragraph (2), by striking ‘‘the 
term’’ and all that follows and inserting ‘‘the 
terms ‘commercial product’ and ‘commercial 
service’ have the meanings given those terms in 
sections 103 and 103a, respectively, of title 41.’’. 
(5) Section 2408(a)(4)(B) is amended by strik-
ing ‘‘commercial items (as defined in section 103 of 
title 41)’’ and inserting ‘‘commercial products or 
commercial services (as defined in sections 103 and 
103a, respectively, of title 41)’’. 
(6) Section 2410b(c) is amended by striking 
‘‘commercial items’’ and inserting ‘‘commercial prod-
ucts’’. 
(7) Section 2410g(d)(1) is amended by striking 
‘‘Commercial items (as defined in section 103 of title 
41)’’ and inserting ‘‘Commercial products or commer-
cial services (as defined in sections 103 and 103a, re-
spectively, of title 41)’’. 
(8) Section 2447a is amended— 
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(A) in subsection (a)(2), by striking ‘‘com-
mercial items and technologies’’ and inserting 
‘‘commercial products and technologies’’; and 
(B) in subsection (c), by inserting before the 
period at the end the following: ‘‘and the term 
‘commercial product’ has the meaning given that 
term in section 103 of title 41’’. 
(9) Section 2451(d) is amended by striking 
‘‘commercial items’’ and inserting ‘‘commercial prod-
ucts (as defined in section 103 of title 41)’’. 
(10) Section 2464 is amended— 
(A) in subsection (a)— 
(i) in paragraph (3), by striking ‘‘com-
mercial items’’ and inserting ‘‘commercial 
products or commercial services’’; and 
(ii) in paragraph (5), by striking ‘‘The 
commercial items covered by paragraph (3) 
are commercial items’’ and inserting ‘‘The 
commercial products or commercial services 
covered by paragraph (3) are commercial 
products (as defined in section 103 of title 
41) or commercial services (as defined in 
section 103a of such title)’’; and 
(B) in subsection (c)— 
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(i) by striking ‘‘COMMERCIAL ITEMS’’ 
in the subsection heading and inserting 
‘‘COMMERCIAL PRODUCTS OR COMMERCIAL 
SERVICES’’; and 
(ii) by striking ‘‘commercial item’’ and 
inserting ‘‘commercial product or commer-
cial service’’. 
(11) Section 2484(f) is amended— 
(A) by striking ‘‘COMMERCIAL ITEMS’’ in 
the subsection heading and inserting ‘‘COMMER-
CIAL PRODUCTS’’; and 
(B) by striking ‘‘commercial item’’ and in-
serting ‘‘commercial product’’. 
(12) The items relating to chapter 140 in the ta-
bles of chapters at the beginning of subtitle A, and at 
the beginning of part IV of subtitle A, are amended 
to read as follows: 
‘‘140. Procurement of Commercial Products and Commer-
cial Services .................................................................. 2377’’. 
(f) AMENDMENTS TO PROVISIONS OF NATIONAL DE-
FENSE AUTHORIZATION ACTS.— 
(1) Section 806(b) of the National Defense Au-
thorization Act for Fiscal Years 1992 and 1993 (Pub-
lic Law 102–190; 10 U.S.C. 2302 note) is amended 
by striking ‘‘commercial items (as defined in section 
103 of title 41, United States Code)’’ and inserting 
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329 
‘‘commercial products or commercial services (as de-
fined in sections 103 and 103a, respectively, of title 
41, United States Code)’’. 
(2) Section 821(e) of the Floyd D. Spence Na-
tional Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106–398; 10 
U.S.C. 2302 note) is amended— 
(A) by striking paragraph (2); and 
(B) by redesignating paragraph (3) as 
paragraph (2). 
(3) Section 821(b) of the National Defense Au-
thorization Act for Fiscal Year 2008 (Public Law 
110–181; 10 U.S.C. 2304 note) is amended— 
(A) in paragraph (1), by striking ‘‘a com-
mercial item’’ and inserting ‘‘a commercial 
product or a commercial service’’; 
(B) in paragraph (2), by striking ‘‘commer-
cial item’’ and inserting ‘‘commercial product’’; 
and 
(C) by adding at the end the following new 
paragraph: 
‘‘(3) The term ‘commercial service’ has the mean-
ing provided by section 103a of title 41, United 
States Code.’’. 
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(4) Section 817(d) of the Bob Stump National 
Defense Authorization Act for Fiscal Year 2003 (Pub-
lic Law 107–314; 10 U.S.C. 2306a note) is amend-
ed— 
(A) in paragraph (1), by striking ‘‘commer-
cial item exceptions’’ and inserting ‘‘commercial 
product-commercial service exceptions’’; and 
(B) in paragraph (2), by striking ‘‘commer-
cial item exception’’ and inserting ‘‘commercial 
product-commercial service exception’’; 
(5) Section 852(b)(2)(A)(ii) of the National De-
fense Authorization Act for Fiscal Year 2007 (Public 
Law 109–364; 10 U.S.C. 2324 note) is amended by 
striking ‘‘a commercial item, as defined in section 
103 of title 41’’ and inserting ‘‘a commercial product 
or a commercial service, as defined in sections 103 
and 103a, respectively, of title 41’’. 
(6) Section 805 of the National Defense Author-
ization Act for Fiscal Year 2008 (Public Law 110– 
181; 10 U.S.C. 2330 note) is amended— 
(A) in subsection (b), by striking ‘‘commer-
cial items’’ in paragraphs (1) and (2)(A) and 
inserting ‘‘commercial services’’; and 
(B) in subsection (c)— 
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333 
(ii) by striking ‘‘commercial items’’ 
and inserting ‘‘commercial products or com-
mercial services’’; and 
(D) in subsection (e)(2), by striking ‘‘item’’ 
in subparagraphs (A) and (B) and inserting 
‘‘products’’. 
(10) Section 880 of the National Defense Author-
ization Act for Fiscal Year 2017 (Public Law 114– 
328; 41 U.S.C. 3301 note) is amended by striking 
‘‘commercial items’’ in subsection (a)(1) and insert-
ing ‘‘commercial products’’. 
(g) CONFORMING AMENDMENTS
TO OTHER STAT-
UTES.— 
(1) Section 604(g) of the American Recovery and 
Reinvestment Act of 2009 (6 U.S.C. 453b(g)) is 
amended— 
(A) by striking ‘‘COMMERCIAL ITEMS’’ in 
the subsection heading and inserting ‘‘COMMER-
CIAL PRODUCTS’’; 
(B) by striking ‘‘procurement of commer-
cial’’ in the first sentence and all that follows 
through ‘‘items listed’’ and inserting ‘‘procure-
ment of commercial products notwithstanding 
section 1906 of title 41, United States Code, with 
the exception of commercial products listed’’; and 
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(C) in the second sentence— 
(i) by inserting ‘‘product’’ after ‘‘com-
mercial’’; and 
(ii) by striking ‘‘in the’’ and all that 
follows and inserting ‘‘in section 103 of title 
41, United States Code.’’. 
(2) Section 142 of the Higher Education Act of 
1965 (20 U.S.C. 1018a) is amended— 
(A) in subsection (e)— 
(i) by striking ‘‘COMMERCIAL ITEMS’’ 
in the subsection heading and inserting 
‘‘COMMERCIAL
PRODUCTS
AND
COMMER-
CIAL SERVICES’’; 
(ii) by striking ‘‘that commercial 
items’’ and inserting ‘‘that commercial 
products or commercial services’’; 
(iii) by striking ‘‘special rules for com-
mercial items’’ and inserting ‘‘special rules 
for commercial products and commercial 
services’’; 
(iv) by striking ‘‘without regard to—’’ 
and all that follows through ‘‘dollar limita-
tion’’ and inserting ‘‘without regard to any 
dollar limitation’’; 
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(v) by striking ‘‘; and’’ and inserting 
a period; and 
(vi) by striking paragraph (2); 
(B) in subsection (f)— 
(i) by striking ‘‘ITEMS’’ in the sub-
section heading and inserting ‘‘PRODUCTS 
AND SERVICES’’; 
(ii) by striking ‘‘ITEMS’’ in the head-
ing of paragraph (2) and inserting ‘‘PROD-
UCTS AND SERVICES’’; and 
(iii) by striking ‘‘a commercial item’’ 
in paragraph (2) and inserting ‘‘a commer-
cial product or a commercial service’’; 
(C) in subsection (h)— 
(i) by striking ‘‘ITEMS’’ in the sub-
section heading and inserting ‘‘SERVICES’’; 
and 
(ii) by striking ‘‘commercial items’’ in 
paragraph (1) and inserting ‘‘commercial 
services’’; and 
(D) in subsection (l)— 
(i) by redesignating paragraphs (2), 
(3), (4), and (5) as paragraphs (3), (4), (5), 
and (6), respectively; 
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(ii) by striking paragraph (1) and in-
serting the following new paragraphs: 
‘‘(1) COMMERCIAL
PRODUCT.—The term ‘com-
mercial product’ has the meaning given the term in 
section 103 of title 41, United States Code. 
‘‘(2) COMMERCIAL SERVICE.—The term ‘commer-
cial service’ has the meaning given the term in section 
103a of title 41, United States Code.’’; 
(iii) in paragraph (3), as so redesig-
nated, by striking ‘‘in section’’ and all that 
follows and inserting ‘‘in section 152 of title 
41, United States Code.’’; 
(iv) in paragraph (5), as so redesig-
nated— 
(I) by striking ‘‘COMMERCIAL 
ITEMS’’ in the paragraph heading and 
inserting 
‘‘COMMERCIAL
PRODUCTS 
AND COMMERCIAL SERVICES’’; 
(II) 
by 
striking 
‘‘commercial 
items’’ 
and 
inserting 
‘‘commercial 
products and commercial services’’; 
and 
(III) by striking ‘‘pursuant to’’ 
and all that follows and inserting 
‘‘pursuant 
to 
sections 
1901 
and 
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3305(a) of title 41, United States 
Code.’’; and 
(v) in paragraph (6), as so redesig-
nated, by striking ‘‘pursuant to’’ and all 
that follows and inserting ‘‘pursuant to sec-
tions 1901(a)(1) and 3305(a)(1) of title 41, 
United States Code.’’. 
(3) Section 3901(a)(4)(A)(ii)(II) of title 31, 
United States Code, is amended by striking ‘‘commer-
cial item’’ and inserting ‘‘commercial product’’. 
(4) Section 2455(c)(1) of the Federal Acquisition 
Streamlining Act of 1994 (31 U.S.C. 6101 note) is 
amended by striking ‘‘commercial items’’ and insert-
ing ‘‘commercial products’’. 
(5) Section 508(f) of the Federal Water Pollution 
Control Act (33 U.S.C. 1368(f)) is amended— 
(A) in paragraph (1), by striking ‘‘commer-
cial items’’ and inserting ‘‘commercial products 
or commercial services’’; and 
(B) in paragraph (2), by striking ‘‘the 
term’’ and all that follows and inserting ‘‘the 
terms ‘commercial product’ and ‘commercial 
service’ have the meanings given those terms in 
sections 103 and 103a, respectively, of title 41, 
United States Code.’’. 
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(6) Section 3707 of title 40, United States Code, 
is amended by striking ‘‘a commercial item (as de-
fined in section 103 of title 41)’’ and inserting ‘‘a 
commercial product (as defined in section 103 of title 
41) or a commercial service (as defined in section 
103a of title 41)’’. 
(7) Subtitle III of title 40, United States Code, 
is amended— 
(A) in section 11101(1), by striking ‘‘COM-
MERCIAL
ITEM.—The term ‘commercial item’ 
has’’ and inserting ‘‘COMMERCIAL PRODUCT.— 
The term ‘commercial product’ has’’; and 
(B) in section 11314(a)(3), by striking 
‘‘items’’ each place it appears and inserting 
‘‘products’’. 
(8) Section 8301(g) of the Federal Acquisition 
Streamlining Act of 1994 (42 U.S.C. 7606 note) is 
amended by striking ‘‘commercial items’’ and insert-
ing ‘‘commercial products or commercial services’’. 
(9) Section 40118(f) of title 49, United States 
Code, is amended— 
(A) in paragraph (1), by striking ‘‘commer-
cial items’’ and inserting ‘‘commercial prod-
ucts’’; and 
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339 
(B) in paragraph (2), by striking ‘‘commer-
cial item’’ and inserting ‘‘commercial product’’. 
(10) Chapter 501 of title 51, United States Code, 
is amended— 
(A) in section 50113(c)— 
(i) by striking ‘‘COMMERCIAL ITEM’’ in 
the subsection heading and inserting ‘‘COM-
MERCIAL PRODUCT OR COMMERCIAL SERV-
ICE’’; and 
(ii) by striking ‘‘commercial item’’ in 
the second sentence and inserting ‘‘commer-
cial product or commercial service’’; and 
(B) in section 50115(b)— 
(i) by striking ‘‘COMMERCIAL ITEM’’ in 
the subsection heading and inserting ‘‘COM-
MERCIAL PRODUCT OR COMMERCIAL SERV-
ICE’’; and 
(ii) by striking ‘‘commercial item’’ in 
the second sentence and inserting ‘‘commer-
cial product or commercial service’’; and 
(C) in section 50132(a)— 
(i) by striking ‘‘COMMERCIAL ITEM’’ in 
the subsection heading and inserting ‘‘COM-
MERCIAL SERVICE’’; and 
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(ii) by striking ‘‘commercial item’’ in 
the second sentence and inserting ‘‘commer-
cial service’’. 
(h) SAVINGS PROVISION.—Any provision of law that 
on the day before the effective date of this section is on a 
list of provisions of law included in the Federal Acquisition 
Regulation pursuant to section 1907 of title 41, United 
States Code, shall be deemed as of that effective date to be 
on a list of provisions of law included in the Federal Acqui-
sition Regulation pursuant to section 1906 of such title. 
SEC. 832. DEFINITION OF SUBCONTRACT. 
(a) STANDARD DEFINITION
IN TITLE 41, UNITED 
STATES CODE.— 
(1) IN GENERAL.—Chapter 1 of title 41, United 
States Code, is amended— 
(A) by redesignating sections 115 and 116 
as sections 116 and 117, respectively; and 
(B) by inserting after section 114 the fol-
lowing new section 115: 
‘‘§ 115. Subcontract 
‘‘(a) IN GENERAL.—In this subtitle, the term ‘sub-
contract’ means a contract entered into by a prime con-
tractor or subcontractor for the purpose of obtaining sup-
plies, materials, equipment, or services of any kind under 
a prime contract. The term includes a transfer of a commer-
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341 
cial product or commercial service between divisions, sub-
sidiaries, or affiliates of a contractor or subcontractor. 
‘‘(b) MATTERS NOT INCLUDED.—In this subtitle, the 
term ‘subcontract’ does not include— 
‘‘(1) a contract the costs of which are applied to 
general and administrative expenses or indirect costs; 
or 
‘‘(2) an agreement entered into by a contractor 
or subcontractor for the supply of a commodity, a 
commercial product, or a commercial service that is 
intended for use in the performance of multiple con-
tracts.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 1 of title 41, United 
States Code, is amended by striking the items relating 
to sections 115 and 116 and inserting the following 
new items: 
‘‘115. Subcontract. 
‘‘116. Supplies. 
‘‘117. Technical data.’’. 
(b) CONFORMING AMENDMENTS TO TITLE 41, UNITED 
STATES CODE.—Title 41, United States Code, is further 
amended as follows: 
(1) Section 1502(b)(1) is amended— 
(A) by striking subparagraph (A); 
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342 
(B) by redesignating subparagraphs (B) 
and (C) as subparagraphs (A) and (B), respec-
tively; and 
(C) in subparagraph (B), as so redesig-
nated, by striking ‘‘Subparagraph (B)’’ and in-
serting ‘‘Subparagraph (A)’’. 
(2) Section 1906 is amended— 
(A) in subsection (c)— 
(i) by striking paragraph (1); 
(ii) by redesignating paragraphs (2), 
(3), and (4) as paragraphs (1), (2), and (3), 
respectively; 
(iii) in paragraph (1), as so redesig-
nated, by striking ‘‘paragraph (3)’’ and in-
serting ‘‘paragraph (2)’’; and 
(iv) in paragraph (2), as so redesig-
nated, by striking ‘‘paragraph (2)’’ and in-
serting ‘‘paragraph (1)’’; and 
(B) in subsection (e), by striking ‘‘(c)(3)’’ 
both places it appears and inserting ‘‘(c)(2)’’. 
(3) Section 3307(e)(2) is amended— 
(A) by striking subparagraph (A); 
(B) by redesignating subparagraphs (B), 
(C), (D), and (E) as subparagraphs (A), (B), 
(C), and (D), respectively; 
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(C) in subparagraph (C), as so redesig-
nated— 
(i) by striking ‘‘subparagraph (B)’’ 
and inserting ‘‘subparagraph (A)’’; and 
(ii) by striking ‘‘subparagraph (C)’’ 
and inserting ‘‘subparagraph (B)’’; and 
(D) in subparagraph (D), as so redesig-
nated, by striking ‘‘subparagraph (B)’’ and in-
serting ‘‘subparagraph (A)’’. 
(4) Section 3501(a) is amended by striking 
paragraph (3). 
(c) INCORPORATION
OF TITLE 41 DEFINITION
IN 
CHAPTERS 137 AND 140 OF TITLE 10, UNITED STATES 
CODE.— 
(1) DEFINITIONS FOR PURPOSES OF CHAPTER 
137.—Section 2302(3) of title 10, United States Code, 
is amended by adding at the end the following new 
subparagraph: 
‘‘(N) The term ‘subcontract’.’’. 
(2) DEFINITIONS FOR PURPOSES OF CHAPTER 
140.— 
(A) Section 2375(c) of title 10, United 
States Code, is amended— 
(i) by striking paragraph (3); and 
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(ii) by redesignating paragraph (4) as 
paragraph (3). 
(B) Section 2376(1) of such title is amended 
by striking ‘‘and ‘commercial component’ have’’ 
and inserting ‘‘ ‘commercial component’, and 
‘subcontract’ have’’. 
SEC. 833. LIMITATION ON APPLICABILITY TO DEPARTMENT 
OF DEFENSE COMMERCIAL CONTRACTS OF 
CERTAIN PROVISIONS OF LAW AND CERTAIN 
EXECUTIVE ORDERS AND REGULATIONS. 
(a) INAPPLICABILITY
OF CERTAIN PROVISIONS
OF 
LAW.— 
(1) SECTION
2375.—Section 2375 of title 10, 
United States Code, is amended— 
(A) in subsection (b)(2), by striking ‘‘Janu-
ary 1, 2015’’ and inserting ‘‘October 13, 1994’’; 
and 
(B) in subsections (b)(2), (c)(2), and (d)(2), 
by striking ‘‘unless the’’ and all that follows and 
inserting a period. 
(2) SECTION
2533A.—Section 2533a(i) of such 
title is amended— 
(A) in the subsection heading, by striking 
‘‘ITEMS’’ and inserting ‘‘PRODUCTS’’; and 
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(B) by striking ‘‘commercial items’’ and in-
serting ‘‘commercial products’’. 
(3) SECTION 2533B.—Section 2533b(h) of such 
title is amended— 
(A) the subsection heading, by striking 
‘‘ITEMS’’ and inserting ‘‘PRODUCTS’’; and 
(B) by striking ‘‘commercial items’’ each 
place it appears and inserting ‘‘commercial 
products’’. 
(b) INAPPLICABILITY OF CERTAIN EXECUTIVE ORDERS 
AND REGULATIONS.—Chapter 140 of title 10, United States 
Code, is amended by inserting after section 2375 the fol-
lowing new section: 
‘‘§ 2375a. Applicability of certain Executive orders 
and regulations 
‘‘(a) EXECUTIVE ORDERS.— 
‘‘(1) COMMERCIAL CONTRACTS.—No Department 
of Defense commercial contract shall be subject to an 
Executive order issued after the date of the enactment 
of this section unless the Executive order specifically 
provides that it is applicable to contracts for the pro-
curement of commercial products and commercial 
services by the Department of Defense. 
‘‘(2) SUBCONTRACTS UNDER COMMERCIAL CON-
TRACTS.—No subcontract under a Department of De-
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fense commercial contract shall be subject to an Exec-
utive order issued after the date of the enactment of 
this section unless the Executive order specifically 
provides that it is applicable to subcontracts under 
Department of Defense contracts for the procurement 
of commercial products and commercial services. 
‘‘(b) REGULATIONS AND POLICIES.— 
‘‘(1) COMMERCIAL CONTRACTS.—No Department 
of Defense commercial contract shall be subject to any 
Department of Defense regulation or policy prescribed 
after the date of the enactment of this section unless 
the regulation or policy specifically provides that it 
is applicable to contracts for the procurement of com-
mercial products and commercial services by the De-
partment of Defense. 
‘‘(2) SUBCONTRACTS UNDER COMMERCIAL CON-
TRACTS.—No subcontract under a Department of De-
fense commercial contract shall be subject to any De-
partment of Defense regulation or order prescribed 
after the date of the enactment of this section unless 
the regulation or policy specifically provides that it 
is applicable to subcontracts under Department of De-
fense contracts for the procurement of commercial 
products and commercial services. 
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347 
‘‘(c) DEPARTMENT OF DEFENSE COMMERCIAL CON-
TRACTS.—In this section, the term ‘Department of Defense 
commercial contract’ means a contract for the procurement 
of a commercial product or commercial service entered into 
by the Secretary of Defense.’’. 
(c) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by inserting after 
the item relating to section 2375 the following new item: 
‘‘2375a. Applicability of certain Executive orders and regulations.’’. 
SEC. 834. MODIFICATIONS TO PROCUREMENT THROUGH 
COMMERCIAL E-COMMERCE PORTALS. 
Section 846 of the National Defense Authorization Act 
for Fiscal Year 2018 (Public Law 115–91; 41 U.S.C. 1901 
note) is amended— 
(1) in subsection (f), by adding at the end the 
following new paragraph: 
‘‘(5) A procurement of a product made through 
a commercial e-commerce portal under the program 
established pursuant to subsection (a) is deemed to 
satisfy requirements for full and open competition 
pursuant to section 2304 of title 10, United States 
Code, and section 3301 of title 41, United States 
Code, if— 
‘‘(A) there are offers from two or more sup-
pliers of such a product or similar product with 
substantially the same physical, functional, or 
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performance characteristics on the online mar-
ketplace; and 
‘‘(B) the Administrator establishes proce-
dures to implement subparagraph (A) and noti-
fies Congress at least 30 days before imple-
menting such procedures.’’. 
(2) by redesignating subsections (j) and (k) as 
subsections (k) and (l), respectively; and 
(3) by inserting after subsection (i) the following 
new subsection: 
‘‘(j) 
MICRO-PURCHASE
THRESHOLD.—Notwith-
standing section 2338 of title 10, United States Code, and 
section 1902 of title 41, United States Code, the micro-pur-
chase threshold for a procurement of a product through a 
commercial e-commerce portal used under the program es-
tablished under subsection (a) is $25,000.’’. 
Subtitle D—Industrial Base Matters 
SEC. 841. REQUIREMENT THAT CERTAIN SHIP COMPO-
NENTS 
BE 
MANUFACTURED 
IN 
THE 
NA-
TIONAL 
TECHNOLOGY 
AND 
INDUSTRIAL 
BASE. 
(a) ADDITIONAL PROCUREMENT LIMITATION.—Section 
2534(a) of title 10, United States Code, is amended by add-
ing at the end the following new paragraph: 
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‘‘(6) COMPONENTS FOR AUXILIARY SHIPS.—Sub-
ject to subsection (k), the following components: 
‘‘(A) 
Auxiliary 
equipment, 
including 
pumps, for all shipboard services. 
‘‘(B) Propulsion system components, includ-
ing engines, reduction gears, and propellers. 
‘‘(C) Shipboard cranes. 
‘‘(D) Spreaders for shipboard cranes.’’. 
(b) IMPLEMENTATION.—Such section is further amend-
ed by adding at the end the following new subsection: 
‘‘(k) IMPLEMENTATION OF AUXILIARY SHIP COMPO-
NENT LIMITATION.—Subsection (a)(6) applies only with re-
spect to contracts awarded by the Secretary of a military 
department for new construction of an auxiliary ship after 
the date of the enactment of the National Defense Authoriza-
tion Act for Fiscal Year 2019 using funds available for Na-
tional Defense Sealift Fund programs or Shipbuilding and 
Conversion, Navy. For purposes of this subsection, the term 
‘auxiliary ship’ does not include an icebreaker.’’. 
SEC. 842. REPORT ON DOMESTIC SOURCING OF SPECIFIC 
COMPONENTS FOR ALL NAVAL VESSELS. 
Not later than March 1, 2019, the Secretary of the 
Navy shall submit to the congressional defense committees 
a report that provides a market survey and cost assessment 
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associated with limiting competition to domestic sources 
for— 
(1) naval vessel components listed in section 
2534(a)(3) of title 10, United States Code; 
(2) expanding such list to include all ships au-
thorized using funds available for Shipbuilding and 
Conversion, Navy and Other Procurement, Navy; and 
(3) expanding such list to include waterjet ma-
rine propulsion systems, azimuth thrusters, and bow 
thrusters for all ships authorized using funds avail-
able for Shipbuilding and Conversion, Navy and 
Other Procurement, Navy. 
SEC. 843. REMOVAL OF NATIONAL INTEREST DETERMINA-
TION REQUIREMENTS FOR CERTAIN ENTI-
TIES. 
(a) IN GENERAL.—Effective October 1, 2020, a covered 
NTIB entity operating under a special security agreement 
pursuant to the National Industrial Security Program shall 
not be required to obtain a national interest determination 
as a condition for access to proscribed information. 
(b) ACCELERATION AUTHORIZED.—Notwithstanding 
the effective date of this section, the Secretary of Defense, 
in consultation with the Director of the Information Secu-
rity Oversight Office, may waive the requirement to obtain 
a national interest determination for a covered NTIB entity 
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operating under such a special security agreement that 
has— 
(1) a demonstrated successful record of compli-
ance with the National Industrial Security Program; 
and 
(2) previously been approved for access to pro-
scribed information. 
(c) DEFINITIONS.—In this section: 
(1) COVERED NTIB ENTITY.—The term ‘‘covered 
NTIB entity’’ means a person that is a subsidiary lo-
cated in the United States— 
(A) for which the ultimate parent company 
and any intermediate parent companies of such 
subsidiary are located in a country that is part 
of the national technology and industrial base 
(as defined in section 2500 of title 10, United 
States Code); and 
(B) that is subject to the foreign ownership, 
control, or influence requirements of the National 
Industrial Security Program. 
(2) PROSCRIBED INFORMATION.—The term ‘‘pro-
scribed information’’ means information that is— 
(A) classified at the level of top secret; 
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(B) communications security information 
(excluding controlled cryptographic items when 
un-keyed or utilized with unclassified keys); 
(C) restricted data (as defined in section 11 
of the Atomic Energy Act of 1954 (42 U.S.C. 
2014)); 
(D) special access program information 
under section 4.3 of Executive Order No. 13526 
(75 Fed. Reg. 707; 50 U.S.C. 3161 note) or suc-
cessor order; or 
(E) designated as sensitive compartmented 
information. 
SEC. 844. PILOT PROGRAM TO TEST MACHINE-VISION TECH-
NOLOGIES TO DETERMINE THE AUTHEN-
TICITY AND SECURITY OF MICROELECTRONIC 
PARTS IN WEAPON SYSTEMS. 
(a) PILOT PROGRAM AUTHORIZED.—The Undersecre-
tary of Defense for Research and Engineering, in coordina-
tion with the Defense Microelectronics Activity, shall estab-
lish a pilot program to test the feasibility and reliability 
of using machine-vision technologies to determine the au-
thenticity and security of microelectronic parts in weapon 
systems. 
(b) OBJECTIVES OF PILOT PROGRAM.—The Undersec-
retary of Defense for Research and Engineering, in coordi-
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nation with the Defense Microelectronics Activity, shall de-
sign any pilot program conducted under this section to de-
termine the following: 
(1) The effectiveness and technology readiness 
level of machine-vision technologies to determine the 
authenticity of microelectronic parts at the time of 
the creation of such part through final insertion of 
such part into weapon systems. 
(2) The best method of incorporating machine-vi-
sion technologies into the process of developing, trans-
porting, and inserting microelectronics into weapon 
systems. 
(3) The rules, regulations, or processes that 
hinder the development and incorporation of ma-
chine-vision technologies, and the application of such 
rules, regulations, or processes to mitigate counterfeit 
microelectronics proliferation throughout the Depart-
ment of Defense. 
(c) CONSULTATION.—To develop the pilot program 
under this section, the Undersecretary of Defense for Re-
search and Engineering, in coordination with the Defense 
Microelectronics Activity, may consult with the following 
entities: 
(1) Manufacturers of semiconductors or elec-
tronics. 
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(2) Industry associations relating to semiconduc-
tors or electronics. 
(3) Original equipment manufacturers of prod-
ucts for the Department of Defense. 
(4) Nontraditional defense contractors (as de-
fined in section 2302(9) of title 10, United States 
Code) that are machine vision companies. 
(5) Federal laboratories (as defined in section 
2500(5) of title 10, United States Code). 
(6) Other elements of the Department of Defense 
that fall under the authority of the Undersecretary of 
Defense for Research and Engineering. 
(d) COMMENCEMENT AND DURATION.—The pilot pro-
gram established under this section shall be established not 
later than April 1, 2019, and all activities under such pilot 
program shall terminate not later than December 31, 2020. 
Subtitle E—Small Business Matters 
SEC. 851. DEPARTMENT OF DEFENSE SMALL BUSINESS 
STRATEGY. 
(a) IN GENERAL.—Chapter 136 of title 10, United 
States Code, is amended by adding at the end the following 
new section: 
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‘‘§ 2283. Department of Defense small business strat-
egy 
‘‘(a) IN GENERAL.—The Secretary of Defense shall im-
plement a small business strategy for the Department of De-
fense that meets the requirements of this section. 
‘‘(b) UNIFIED MANAGEMENT STRUCTURE.—As part of 
the small business strategy described in subsection (a), the 
Secretary shall ensure that there is a unified management 
structure within the Department for the functions of the De-
partment relating to— 
‘‘(1) programs and activities related to small 
business concerns (as defined in section 3 of the Small 
Business Act); 
‘‘(2) manufacturing and industrial base policy; 
and 
‘‘(3) any procurement technical assistance pro-
gram established under chapter 142 of this title. 
‘‘(c) PURPOSE OF SMALL BUSINESS PROGRAMS.—The 
Secretary shall ensure that programs and activities of the 
Department of Defense related to small business concerns 
are carried out so as to further national defense programs 
and priorities and the statements of purpose for Depart-
ment of Defense acquisition set forth in section 801 of the 
National Defense Authorization Act for Fiscal Year 2018 
(Public Law 115–91; 131 Stat. 1449). 
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‘‘(d) POINTS OF ENTRY INTO DEFENSE MARKET.—The 
Secretary shall ensure— 
‘‘(1) that opportunities for small business con-
cerns to contract with the Department of Defense are 
identified clearly; and 
‘‘(2) that small business concerns are able to 
have access to program managers, contracting officers, 
and other persons using the products or services of 
such concern to the extent necessary to inform such 
persons of emerging and existing capabilities of such 
concerns. 
‘‘(e) ENHANCED OUTREACH UNDER PROCUREMENT 
TECHNICAL ASSISTANCE PROGRAM MARKET.—The Sec-
retary shall enable and promote activities to provide coordi-
nated outreach to small business concerns through any pro-
curement technical assistance program established under 
chapter 142 of this title to facilitate small business con-
tracting with the Department of Defense.’’. 
(b) IMPLEMENTATION.— 
(1) DEADLINE.—The Secretary of Defense shall 
develop the small business strategy required by section 
2283 of title 10, United States Code, as added by sub-
section (a), not later than 180 days after the date of 
the enactment of this Act. 
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(2) NOTICE TO CONGRESS AND PUBLICATION.— 
Upon completion of the development of the small busi-
ness strategy pursuant to paragraph (1), the Sec-
retary shall— 
(A) transmit the strategy to Congress; and 
(B) publish the strategy on a public website 
of the Department of Defense. 
(c) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item: 
‘‘2283. Department of Defense small business strategy.’’. 
SEC. 852. PROMPT PAYMENTS OF SMALL BUSINESS CON-
TRACTORS. 
Section 2307(a) of title 10, United States Code, is 
amended— 
(1) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively; 
(2) by striking ‘‘The head of any agency may— 
’’ and inserting ‘‘(1) The head of any agency may’’; 
and 
(3) by adding at the end the following new para-
graph: 
‘‘(2)(A) For a prime contractor (as defined in section 
8701 of title 41) that is a small business concern (as defined 
in section 3 of the Small Business Act (15 U.S.C. 632)), 
the head of an agency shall, to the fullest extent permitted 
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by law, establish an accelerated payment date with a goal 
of 15 days after receipt of a proper invoice for the amount 
due if a specific payment date is not established by contract. 
‘‘(B) For a prime contractor that subcontracts with 
a small business concern, the head of an agency shall, to 
the fullest extent permitted by law, establish an accelerated 
payment date with a goal of 15 days after receipt of a prop-
er invoice for the amount due if— 
‘‘(i) a specific payment date is not established by 
contract; and 
‘‘(ii) the prime contractor agrees to make pay-
ments to the subcontractor in accordance with the ac-
celerated payment date, to the maximum extent prac-
ticable, without any further consideration from or fees 
charged to the subcontractor.’’. 
SEC. 853. INCREASED PARTICIPATION IN THE SMALL BUSI-
NESS 
ADMINISTRATION 
MICROLOAN 
PRO-
GRAM. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘intermediary’’ has the meaning 
given that term in section 7(m)(11) of the Small 
Business Act (15 U.S.C. 636(m)(11)); and 
(2) the term ‘‘microloan program’’ means the 
program established under section 7(m) of the Small 
Business Act (15 U.S.C. 636(m)). 
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(b) MICROLOAN INTERMEDIARY LENDING LIMIT IN-
CREASED.—Section 7(m)(3)(C) of the Small Business Act 
(15 U.S.C. 636(m)(3)(C)) is amended by striking 
‘‘$5,000,000’’ and inserting ‘‘$6,000,000’’. 
(c) MICROLOAN
TECHNICAL
ASSISTANCE.—Section 
7(m)(4)(E) of the Small Business Act (15 U.S.C. 
636(m)(4)(E)) is amended by striking ‘‘25 percent’’ each 
place such term appears and inserting ‘‘50 percent’’. 
(d) SBA STUDY OF MICROENTERPRISE PARTICIPA-
TION.—Not later than 1 year after the date of enactment 
of this section, the Administrator of the Small Business Ad-
ministration shall conduct a study and submit to the Com-
mittee on Small Business and Entrepreneurship of the Sen-
ate and the Committee on Small Business of the House of 
Representatives a report on— 
(1) the operations (including services provided, 
structure, size, and area of operation) of a representa-
tive sample of— 
(A) intermediaries that are eligible to par-
ticipate in the microloan program and that do 
participate; and 
(B) intermediaries that are eligible to par-
ticipate in the microloan program and that do 
not participate; 
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(2) the reasons why eligible intermediaries de-
scribed in paragraph (1)(B) choose not to participate 
in the microloan program; 
(3) recommendations on how to encourage in-
creased participation in the microloan program by el-
igible intermediaries described in paragraph (1)(B); 
and 
(4) recommendations on how to decrease the costs 
associated with participation in the microloan pro-
gram for eligible intermediaries. 
(e) GAO STUDY ON MICROLOAN INTERMEDIARY PRAC-
TICES.—Not later than 1 year after the date of enactment 
of this section, the Comptroller General of the United States 
shall submit to the Committee on Small Business and En-
trepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives a report evalu-
ating— 
(1) oversight of the microloan program by the 
Small Business Administration, including oversight 
of intermediaries participating in the microloan pro-
gram; and 
(2) the specific processes used by the Small Busi-
ness Administration to ensure— 
(A) compliance by intermediaries partici-
pating in the microloan program; and 
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(B) 
the 
overall 
performance 
of 
the 
microloan program. 
SEC. 854. AMENDMENTS TO SMALL BUSINESS INNOVATION 
RESEARCH PROGRAM AND SMALL BUSINESS 
TECHNOLOGY TRANSFER PROGRAM. 
(a) USE OF SBIR OR STTR FUNDING FOR ADMINIS-
TRATIVE COSTS.—Section 9 of the Small Business Act (15 
U.S.C. 638) is amended— 
(1) in subsection (f)— 
(A) in paragraph (2), by striking ‘‘shall 
not’’ and all that follows through ‘‘make avail-
able’’ and inserting ‘‘shall not make available’’; 
and 
(B) by adding at the end the following new 
paragraph: 
‘‘(5) ADMINISTRATIVE COSTS.—A Federal agency 
may use up to 3 percent of its SBIR budget estab-
lished pursuant to paragraph (1) for the purpose of 
funding administrative costs of the program.’’; and 
(2) in subsection (n)— 
(A) in paragraph (2), by striking ‘‘shall 
not’’ and all that follows through ‘‘make avail-
able’’ and inserting ‘‘shall not make available’’; 
and 
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(B) by adding at the end the following new 
paragraph: 
‘‘(4) ADMINISTRATIVE COSTS.—A Federal agency 
may use up to 3 percent of its SBIR budget estab-
lished pursuant to paragraph (1) for the purpose of 
funding administrative costs of the program.’’. 
(b) EXPANSION
OF PHASE FLEXIBILITY.—Section 
9(cc) of such Act (15 U.S.C. 638(cc)) is amended by striking 
‘‘During fiscal years’’ and all that follows through ‘‘may 
each provide’’ and inserting ‘‘During fiscal years 2018 
through 2022, all agencies participating in the SBIR pro-
gram may provide’’. 
SEC. 855. CONSTRUCTION CONTRACT ADMINISTRATION. 
Section 15 of the Small Business Act (15 U.S.C. 644) 
is amended by adding at the end the following new sub-
section: 
‘‘(w) SOLICITATION NOTICE REGARDING ADMINISTRA-
TION OF CHANGE ORDERS FOR CONSTRUCTION.— 
‘‘(1) IN GENERAL.—With respect to any solicita-
tion for the award of a contract for construction an-
ticipated to be awarded to a small business concern, 
the agency administering such contract shall provide 
a notice along with the solicitation to prospective bid-
ders and offerors that includes— 
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‘‘(A) information about the agency’s policies 
or practices in complying with the requirements 
of the Federal Acquisition Regulation relating to 
the timely definitization of requests for an equi-
table adjustment; and 
‘‘(B) information about the agency’s past 
performance in definitizing requests for equitable 
adjustments in accordance with paragraph (2). 
‘‘(2) REQUIREMENTS FOR AGENCIES.—An agen-
cy shall provide the past performance information de-
scribed under paragraph (1)(B) as follows: 
‘‘(A) For the 3-year period preceding the 
issuance of the notice, to the extent such informa-
tion is available. 
‘‘(B) With respect to an agency that, on the 
date of the enactment of this subsection, has not 
compiled the information described under para-
graph (1)(B)— 
‘‘(i) beginning 1 year after the date of 
the enactment of this subsection, for the 1- 
year period preceding the issuance of the 
notice; 
‘‘(ii) beginning 2 years after the date 
of the enactment of this subsection, for the 
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2-year period preceding the issuance of the 
notice; and 
‘‘(iii) beginning 3 years after the date 
of the enactment of this subsection and each 
year thereafter, for the 3-year period pre-
ceding the issuance of the notice. 
‘‘(3) FORMAT OF PAST PERFORMANCE INFORMA-
TION.—In the notice required under paragraph (1), 
the agency shall ensure that the past performance in-
formation described under paragraph (1)(B) is set 
forth separately for each definitization action that 
was completed during the following periods: 
‘‘(A) Not more than 30 days after receipt of 
a request for an equitable adjustment. 
‘‘(B) Not more than 60 days after receipt of 
a request for an equitable adjustment. 
‘‘(C) Not more than 90 days after receipt of 
a request for an equitable adjustment. 
‘‘(D) Not more than 180 days after receipt 
of a request for an equitable adjustment. 
‘‘(E) More than 365 days after receipt of a 
request for an equitable adjustment. 
‘‘(F) After the completion of the perform-
ance of the contract through a contract modifica-
tion addressing all undefinitized requests for an 
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equitable adjustment received during the term of 
the contract.’’. 
SEC. 856. BROADBAND AND EMERGING INFORMATION 
TECHNOLOGY COORDINATOR. 
(a) IN GENERAL.—The Small Business Act (15 U.S.C. 
631 et seq.) is amended— 
(1) by redesignating section 47 as section 48; 
and 
(2) by inserting after section 46 the following: 
‘‘SEC. 47. BROADBAND AND EMERGING INFORMATION 
TECHNOLOGY. 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) the term ‘OII Associate Administrator’ 
means the Associate Administrator for the Office of 
Investment and Innovation; and 
‘‘(2) the term ‘broadband and emerging informa-
tion technology coordinator’ means the employee des-
ignated to carry out the broadband and emerging in-
formation technology coordination responsibilities of 
the Administration under subsection (b)(1). 
‘‘(b) ASSIGNMENT OF COORDINATOR.— 
‘‘(1) ASSIGNMENT OF COORDINATOR.—The OII 
Associate Administrator shall designate a senior em-
ployee of the Office of Investment and Innovation to 
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serve as the broadband and emerging information 
technology coordinator, who— 
‘‘(A) shall report to the OII Associate Ad-
ministrator; 
‘‘(B) shall work in coordination with— 
‘‘(i) the chief information officer, the 
chief technology officer, and the head of the 
Office of Technology of the Administration; 
and 
‘‘(ii) any other Associate Adminis-
trator of the Administration determined ap-
propriate by the OII Associate Adminis-
trator; 
‘‘(C) has experience developing and imple-
menting telecommunications policy in the pri-
vate sector or government; and 
‘‘(D) has demonstrated significant experi-
ence in the area of broadband or emerging infor-
mation technology. 
‘‘(2) RESPONSIBILITIES OF COORDINATOR.—The 
broadband and emerging information technology coor-
dinator shall— 
‘‘(A) coordinate programs of the Adminis-
tration that assist small business concerns in 
adopting, making innovations in, and using 
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broadband and other emerging information tech-
nologies; 
‘‘(B) serve as the primary liaison of the Ad-
ministration to other Federal agencies involved 
in broadband and emerging information tech-
nology policy, including the Department of Com-
merce, the Department of Agriculture, and the 
Federal Communications Commission; 
‘‘(C) identify best practices relating to 
broadband and emerging information technology 
that may benefit small business concerns; and 
‘‘(D) identify and catalog tools and train-
ing available through the resource partners of the 
Administration that assist small business con-
cerns in adopting, making innovations in, and 
using broadband and emerging technologies. 
‘‘(3) TRAVEL.—Not more than 20 percent of the 
hours of service by the broadband and emerging infor-
mation technology coordinator during any fiscal year 
shall consist of travel outside the United States to 
perform official duties. 
‘‘(c) BROADBAND
AND
EMERGING
TECHNOLOGY 
TRAINING.— 
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‘‘(1) BIENNIAL
REPORT
ON
ACTIVITIES.—Not 
later than 2 years after the date on which the OII As-
sociate Administrator makes the first designation of 
an employee under subsection (b), and every 2 years 
thereafter, the broadband and emerging information 
technology coordinator shall submit to the Committee 
on Small Business and Entrepreneurship of the Sen-
ate and the Committee on Small Business of the 
House of Representatives a report regarding the pro-
grams and activities of the Administration relating to 
broadband and other emerging information tech-
nologies. 
‘‘(2) IMPACT OF BROADBAND SPEED AND PRICE 
ON SMALL BUSINESSES.— 
‘‘(A) IN GENERAL.—Subject to appropria-
tions, the Chief Counsel for Advocacy shall con-
duct a study evaluating the impact of broadband 
speed and price on small business concerns. 
‘‘(B) REPORT.—Not later than 3 years after 
the date of enactment of the Small Business 
Broadband and Emerging Information Tech-
nology Enhancement Act of 2017, the Chief 
Counsel for Advocacy shall submit to the Com-
mittee on Commerce, Science, and Transpor-
tation and the Committee on Small Business 
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and Entrepreneurship of the Senate and the 
Committee on Energy and Commerce and the 
Committee on Small Business of the House of 
Representatives a report on the results of the 
study under subparagraph (A), including— 
‘‘(i) a survey of broadband speeds 
available to small business concerns; 
‘‘(ii) a survey of the cost of broadband 
speeds available to small business concerns; 
‘‘(iii) 
a 
survey 
of 
the 
type 
of 
broadband technology used by small busi-
ness concerns; and 
‘‘(iv) any policy recommendations that 
may improve the access of small business 
concerns to comparable broadband services 
at comparable rates in all regions of the 
United States.’’. 
(b) 
ENTREPRENEURIAL
DEVELOPMENT.—Section 
21(c)(3)(B) of the Small Business Act (15 U.S.C. 
648(c)(3)(B)) is amended— 
(1) in the matter preceding clause (i), by insert-
ing ‘‘accessing broadband and other emerging infor-
mation technology,’’ after ‘‘technology transfer,’’; 
(2) in clause (ii), by striking ‘‘and’’ at the end; 
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(3) in clause (iii), by adding ‘‘and’’ at the end; 
and 
(4) by adding at the end the following: 
‘‘(iv) increasing the competitiveness and 
productivity of small business concerns by assist-
ing owners of such concerns in accessing 
broadband and other emerging information tech-
nology;’’. 
SEC. 857. AMENDMENTS TO THE SMALL BUSINESS INVEST-
MENT ACT OF 1958. 
(a) INVESTMENT IN SMALL BUSINESS INVESTMENT 
COMPANIES.—Section 302(b) of the Small Business Invest-
ment Act of 1958 (15 U.S.C. 682(b)) is amended— 
(1) in paragraph (1), by inserting before the pe-
riod the following: ‘‘or, subject to the approval of the 
appropriate Federal banking agency, 15 percent of 
such capital and surplus’’; 
(2) in paragraph (2), by inserting before the pe-
riod the following: ‘‘or, subject to the approval of the 
appropriate Federal banking agency, 15 percent of 
such capital and surplus’’; and 
(3) by adding at the end the following: 
‘‘(3) APPROPRIATE FEDERAL BANKING AGENCY 
DEFINED.—For purposes of this subsection, the term 
‘appropriate Federal banking agency’ has the mean-
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ing given that term under section 3 of the Federal De-
posit Insurance Act.’’. 
(b) INCREASE TO MAXIMUM LEVERAGE LIMIT.—Sec-
tion 303(b)(2)(A)(ii) of the Small Business Investment Act 
of 1958 (15 U.S.C. 683(b)(2)(A)(ii)) is amended by striking 
‘‘$150,000,000’’ and inserting ‘‘$175,000,000’’. 
SEC. 858. CONSOLIDATED BUDGET JUSTIFICATION FOR 
THE DEPARTMENT OF DEFENSE SMALL BUSI-
NESS INNOVATION RESEARCH PROGRAM AND 
SMALL BUSINESS TECHNOLOGY TRANSFER 
PROGRAM. 
(a) SUBMISSION WITH ANNUAL BUDGET JUSTIFICA-
TION
DOCUMENTS.—The Secretary of Defense, acting 
through the Under Secretary of Defense for Research and 
Engineering, shall include in the materials submitted to 
Congress by the Secretary of Defense in support of the budg-
et of the President for each fiscal year (as submitted to Con-
gress under section 1105 of title 31, United States Code) 
a budget justification for all activities conducted under a 
Small Business Innovation Research Program or Small 
Business Technology Transfer Program (as such terms are 
defined, respectively, in section 9(e) of the Small Business 
Act (15 U.S.C. 638(e))) of the Department of Defense dur-
ing the previous fiscal year. 
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(b) REQUIREMENTS
FOR
BUDGET
DISPLAY.—The 
budget justification under subsection (a) shall include— 
(1) the amount obligated or expended, by appro-
priation and functional area, for each activity con-
ducted under a Small Business Innovation Research 
Program or Small Business Technology Transfer Pro-
gram, with supporting narrative descriptions and ra-
tionale for the funding levels; and 
(2) a summary and estimate of funding required 
during the period covered by the current future-years 
defense program (as defined under section 221 of title 
10, United States Code). 
(c) TERMINATION.—The requirements of this section 
shall terminate on December 31, 2022. 
SEC. 859. FUNDING FOR PROCUREMENT TECHNICAL AS-
SISTANCE PROGRAM. 
(a) AMOUNT OF ASSISTANCE FROM SECRETARY.—Sec-
tion 2413(b) of title 10, United States Code, is amended— 
(1) by striking ‘‘not more than 65 percent’’ and 
inserting ‘‘not more than 75 percent’’; and 
(2) in paragraph (1), by striking ‘‘more than 65 
percent, but not more than 75 percent’’ and inserting 
‘‘more than 75 percent, but not more than 85 per-
cent’’. 
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(b) FUNDING
FOR
ELIGIBLE
ENTITIES.—Section 
2414(a) of such title is amended— 
(1) in paragraph (1), by striking ‘‘$750,000’’ 
and inserting ‘‘$1,000,000’’; 
(2) in paragraph (2), by striking ‘‘$450,000’’ 
and inserting ‘‘$750,000’’; 
(3) in paragraph (3), by striking ‘‘$300,000’’ 
and inserting ‘‘$450,000’’; and 
(4) in paragraph (4), by striking ‘‘$750,000’’ 
and inserting ‘‘$1,000,000’’. 
SEC. 860. EXEMPTION OF CERTAIN CONTRACTS FROM THE 
PERIODIC INFLATION ADJUSTMENTS TO THE 
ACQUISITION-RELATED DOLLAR THRESHOLD. 
Subparagraph (B) of section 1908(b)(2) of title 41, 
United States Code, is amended by inserting ‘‘3131 to 
3134,’’ after ‘‘sections’’. 
Subtitle F—Other Matters 
SEC. 871. 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 
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