380 
† HR 2810 EAS 
(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
381 
† HR 2810 EAS 
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.
382 
† HR 2810 EAS 
(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
383 
† HR 2810 EAS 
(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
384 
† HR 2810 EAS 
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-
385 
† HR 2810 EAS 
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.
386 
† HR 2810 EAS 
(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.
387 
† HR 2810 EAS 
(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
388 
† HR 2810 EAS 
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’—
389 
† HR 2810 EAS 
‘‘(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.’’.
390 
† HR 2810 EAS 
(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
391 
† HR 2810 EAS 
(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.
392 
† HR 2810 EAS 
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.
393 
† HR 2810 EAS 
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-
394 
† HR 2810 EAS 
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
395 
† HR 2810 EAS 
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,
396 
† HR 2810 EAS 
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:
397 
† HR 2810 EAS 
(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.
398 
† HR 2810 EAS 
(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.
399 
† HR 2810 EAS 
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
400 
† HR 2810 EAS 
(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.
401 
† HR 2810 EAS 
(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
402 
† HR 2810 EAS 
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’’.
403 
† HR 2810 EAS 
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—
404 
† HR 2810 EAS 
‘‘(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.
405 
† HR 2810 EAS 
‘‘(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
406 
† HR 2810 EAS 
‘‘(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-
407 
† HR 2810 EAS 
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.
408 
† HR 2810 EAS 
‘‘(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;
409 
† HR 2810 EAS 
‘‘(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.’’.
411 
† HR 2810 EAS 
(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
412 
† HR 2810 EAS 
(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
413 
† HR 2810 EAS 
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-
414 
† HR 2810 EAS 
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.
415 
† HR 2810 EAS 
‘‘(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
416 
† HR 2810 EAS 
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
417 
† HR 2810 EAS 
‘‘(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-
418 
† HR 2810 EAS 
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-
419 
† HR 2810 EAS 
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-
420 
† HR 2810 EAS 
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.
421 
† HR 2810 EAS 
(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-
422 
† HR 2810 EAS 
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.
423 
† HR 2810 EAS 
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:
424 
† HR 2810 EAS 
‘‘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:
425 
† HR 2810 EAS 
‘‘§ 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,
426 
† HR 2810 EAS 
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
427 
† HR 2810 EAS 
‘‘(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:
428 
† HR 2810 EAS 
‘‘(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
447 
† HR 2810 EAS 
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