263 
vanced development for research, development, test, and 
evaluation for the Defense Health Program, not more than 
$25,000,000 may be used to award grants to medical re-
searchers and universities to support research into early de-
tection of chronic traumatic encephalopathy. 
SEC. 
743. 
ACTIVE 
OSCILLATING 
NEGATIVE 
PRESSURE 
TREATMENT. 
In furnishing health care and medical treatment to 
members of the Armed Forces who have incurred injuries 
from improvised explosive devices and other blast-related 
events, the Secretary of Defense shall consider using non- 
invasive technologies that increase blood flow to areas of re-
duced circulation, including through the use of active oscil-
lating negative pressure treatment. 
SEC. 744. LONG-TERM STUDY ON HEALTH OF HELICOPTER 
AND TILTROTOR PILOTS. 
(a) STUDY REQUIRED.—The Secretary of Defense shall 
carry out a long-term study of career helicopter and 
tiltrotor pilots to assess potential links between the oper-
ation of helicopter and tiltrotor aircraft and acute and 
chronic medical conditions experienced by such pilots. 
(b) ELEMENTS.—The study under subsection (a) shall 
include the following: 
(1) A study of career helicopter and tiltrotor pi-
lots compared to a control population that— 
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(A) takes into account the amount of time 
such pilots operated aircraft; 
(B) examines the severity and rates of acute 
and chronic injuries experienced by such pilots; 
and 
(C) determines whether such pilots experi-
ence a higher degree of acute and chronic med-
ical conditions than the control population. 
(2) If a higher degree of acute and chronic med-
ical conditions is observed among such pilots, an ex-
planation of— 
(A) the specific causes of the conditions 
(such as whole body vibration, seat and cockpit 
ergonomics, landing loads, hard impacts, and 
pilot-worn gear); and 
(B) any costs associated with treating the 
conditions if the causes are not mitigated. 
(3) A review of relevant scientific literature and 
prior research. 
(4) Such other information as the Secretary de-
termines to be appropriate. 
(c) DURATION.—The duration of the study under sub-
section (a) shall be not more than 2 years. 
(d) BRIEFING.—Not later than June 6, 2017, the Sec-
retary shall provide to the Committees on Armed Services 
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of the Senate and House of Representatives (and other con-
gressional defense committees on request) a briefing on the 
progress of the Secretary in carrying out the study under 
subsection (a). 
SEC. 745. PILOT PROGRAM FOR PRESCRIPTION DRUG AC-
QUISITION COST PARITY IN THE TRICARE 
PHARMACY BENEFITS PROGRAM. 
(a) AUTHORITY TO ESTABLISH PILOT PROGRAM.—The 
Secretary of Defense may conduct a pilot program to evalu-
ate whether, in carrying out the TRICARE pharmacy bene-
fits program under section 1074g of title 10, United States 
Code, extending additional discounts for prescription drugs 
filled at retail pharmacies will maintain or reduce pre-
scription drug costs for the Department of Defense. 
(b) ELEMENTS OF PILOT PROGRAM.—In carrying out 
the pilot program under subsection (a), the Secretary shall 
require that for prescription medications, including but not 
limited to non-generic maintenance medications, that are 
dispensed to retired TRICARE beneficiaries that are not 
Medicare eligible, through any TRICARE participating re-
tail pharmacy, manufacturers shall pay rebates such that 
those medications are available to the Department at the 
lowest rate available. In addition to utilizing the authority 
under section 1074g(f) of title 10, United States Code, the 
Secretary shall have the authority to enter into a purchase 
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blanket agreement with prescription drug manufactures for 
supplemental discounts for prescription drugs dispensed in 
the pilot to be paid in the form of manufactures rebates. 
(c) CONSULTATION.—The Secretary shall develop the 
pilot program in consultation with— 
(1) the Secretaries of the military departments, 
including Army, Navy and Air Force; 
(2) the Chief, Pharmacy Operations Division, of 
the Defense Health Agency; and 
(3) stakeholders, including TRICARE bene-
ficiaries and retail pharmacies. 
(d) DURATION OF PILOT PROGRAM.—If the Secretary 
carries out the pilot program under subsection (a), the Sec-
retary shall commence such pilot program no later than Oc-
tober 1, 2017, and may terminate such program no later 
than September 30, 2018. 
(e) REPORTS.—If the Secretary carries out the pilot 
program under subsection (a), the Secretary of Defense shall 
submit to the congressional defense committees, including 
the House and Senate Committees on Armed Services, re-
ports on the pilot program as follows: 
(1) Not later than 90 days after the date of the 
enactment of this Act, a report containing an imple-
mentation plan for the pilot program. 
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(2) Not later than 180 days after the date on 
which the pilot program commences, an interim re-
port on the pilot program. 
(3) Not later than 90 days after the date on 
which the pilot program terminates, a final report de-
scribing the results of the pilot program, including 
any recommendations of the Secretary to expand such 
program. The final report will include— 
(A) an analysis of the changes in prescrip-
tion drug costs for the Department related to the 
pilot program; 
(B) an analysis of the impact on bene-
ficiary access to prescription drugs; 
(C) a survey of beneficiary satisfaction with 
the pilot program; 
(D) a summary of any fraud and abuse ac-
tivities related to the pilot and actions taken in 
response by the Department; and 
(E) a comparison of immunization rates for 
beneficiaries participating in the pilot and those 
outside of the pilot. 
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SEC. 746. STUDY ON DISPLAY OF WAIT TIMES AT URGENT 
CARE CLINICS, PHARMACIES, AND EMER-
GENCY ROOMS OF MILITARY MEDICAL TREAT-
MENT FACILITIES. 
(a) STUDY.— 
(1) IN GENERAL.—The Secretary of Defense shall 
conduct a study on the feasibility of placing in a con-
spicuous location at each urgent care clinic of a mili-
tary medical treatment facility, pharmacy of such a 
facility, and emergency room of such a facility an 
electronic sign that displays the current average wait 
time for a patient to be seen by a qualified medical 
professional or to receive a filled prescription, as the 
case may be. 
(2) DETERMINATION OF CERTAIN WAIT TIMES.— 
For purposes of conducting the study under para-
graph (1) with respect to urgent care clinics and 
emergency rooms, the average wait time that would be 
displayed shall be— 
(A) determined by calculating, for the four- 
hour period preceding the calculation, the aver-
age length of time beginning at the time of the 
arrival of a patient and ending at the time at 
which the patient is first seen by a doctor of 
medicine, a doctor of osteopathy, a physician as-
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sistant, or an advanced registered nurse practi-
tioner; and 
(B) updated every 30 minutes. 
(b) REPORT.—Not later than March 1, 2017, the Sec-
retary shall submit to the Committees on Armed Services 
of the House of Representatives and the Senate a report on 
the study conducted under subsection (a)(1), including the 
estimated costs for displaying the wait times as described 
in such subsection. 
SEC. 747. REPORT ON FEASIBILITY OF INCLUDING ACU-
PUNCTURE AND CHIROPRACTIC SERVICES 
FOR RETIREES UNDER TRICARE PROGRAM. 
Not later than November 1, 2016, the Secretary of De-
fense shall submit to the congressional defense committees 
a report on the feasibility of furnishing acupuncture serv-
ices and chiropractic services under the TRICARE program 
to beneficiaries who are retired members of the uniformed 
services (not including any dependent of such a retired 
member). 
SEC. 748. CLARIFICATION OF SUBMISSION OF REPORTS ON 
LONGITUDINAL STUDY ON TRAUMATIC BRAIN 
INJURY. 
Section 1080 of the National Defense Authorization 
Act for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 
1000; 10 U.S.C. 111 note) shall not apply to reports sub-
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mitted by the Secretary of Defense to Congress under section 
721 of the John Warner National Defense Authorization Act 
for Fiscal Year 2007 (Public Law 109–364; 120 Stat. 
2294). 
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS 
Subtitle A—Amendments to General 
Contracting Authorities, Proce-
dures, and Limitations 
SEC. 801. REVISION TO AUTHORITIES RELATING TO DE-
PARTMENT OF DEFENSE TEST RESOURCE 
MANAGEMENT CENTER. 
Section 196 of title 10, United States Code, is amend-
ed— 
(1) in subsection (c)(1)(B), by striking ‘‘of the 
Major Range and Test Facility Base, including with 
respect to the expansion, divestment, consolidation, or 
curtailment of activities,’’ and inserting the following: 
‘‘that comprise the Major Range and Test Facility 
Base and other facilities and resources used to sup-
port the acquisition programs of the Department of 
Defense’’; 
(2) in subsection (d)(2)(E)— 
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(A) by striking ‘‘plans and business case 
analyses supporting any significant modification 
of’’ and inserting ‘‘implementation plans and 
analyses supporting any significant change to’’; 
and 
(B) by striking ‘‘including with respect to 
the expansion, divestment, consolidation, or cur-
tailment of activities’’; 
(3) in subsection (f)— 
(A) in the subsection heading, by striking 
‘‘MODIFICATIONS’’ and inserting ‘‘CHANGES’’; 
(B) in paragraph (1)— 
(i) in the matter preceding subpara-
graph (A), by striking ‘‘modification of the 
test’’ and all that follows through ‘‘activi-
ties,’’ and inserting ‘‘change of the test and 
evaluation facilities and resources that com-
prise the Major Range and Test Facility 
Base and other facilities and resources used 
to support the acquisition programs of the 
Department of Defense’’; 
(ii) in subparagraph (A), by striking 
‘‘a business case analysis for such modifica-
tion’’ and inserting ‘‘an implementation 
plan and analysis, including an analysis of 
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cost considerations, that supports such a 
change’’; and 
(iii) in subparagraph (B), by striking 
‘‘analysis and approves such modification’’ 
and inserts ‘‘plan and analysis and ap-
proves such change’’; and 
(C) in paragraph (2), by striking ‘‘business 
case’’ and inserting ‘‘implementation plan and’’; 
and 
(4) in subsection (i)— 
(A) by striking ‘‘In this section, the term’’ 
and inserting ‘‘In this section: 
‘‘(1) The term’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) The term ‘significant change’ means— 
‘‘(A) any action that will limit or preclude 
a test and evaluation capability from fully per-
forming its intended purpose; 
‘‘(B) any action that affects the ability of 
the Department of Defense to conduct test and 
evaluation in a timely or cost-effective manner; 
or 
‘‘(C) any expansion or addition that devel-
ops a new significant test capability.’’. 
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SEC. 
802. 
AMENDMENTS 
TO 
RESTRICTIONS 
ON 
UNDEFINITIZED CONTRACTUAL ACTIONS. 
(a) ALLOWABLE PROFIT.—Section 2326(e) of title 10, 
United States Code, is amended— 
(1) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B); 
(2) by inserting ‘‘(1)’’ before ‘‘The head’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(2) If a contractor submits a qualifying proposal to 
definitize an undefinitized contractual action and the con-
tracting officer for such action definitized the contract after 
the end of the 180-day period beginning on the date on 
which the contractor submitted the qualifying proposal, the 
head of the agency concerned shall ensure that the profit 
allowed on the contract accurately reflects the cost risk of 
the contractor as it existed on the date the contractor sub-
mitted the qualifying proposal.’’. 
(b) FOREIGN MILITARY SALES.—Section 2326 of such 
title is further amended— 
(1) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively; 
(2) by inserting after subsection (e) the following 
new subsection (f): 
‘‘(f) FOREIGN MILITARY SALES.—A contracting officer 
of the Department of Defense may not enter into an 
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undefinitized contractual action for a foreign military sale 
unless the contractual action provides for agreement upon 
contractual terms, specifications, and price by the end of 
the 180-day period beginning on the date on which the con-
tractor submits a qualifying proposal to definitize such 
terms, specifications, and price. This subsection may be 
waived in the same manner as subsection (b) may be 
waived under subsection (b)(4).’’. 
(c) DEFINITIONS.—Subsection (h) of such section, as 
redesignated by subsection (b), is amended— 
(1) in paragraph (1)— 
(A) by striking subparagraph (A); and 
(B) by redesignating subparagraphs (B), 
(C), and (D) as subparagraphs (A), (B), and 
(C), respectively; and 
(2) in paragraph (2), by striking ‘‘complete and 
meaningful audits’’ and all that follows through the 
period and inserting ‘‘a meaningful audit of the in-
formation contained in the proposal.’’. 
SEC. 803. REVISION TO REQUIREMENTS RELATING TO IN-
VENTORY METHOD FOR DEPARTMENT OF DE-
FENSE CONTRACTS FOR SERVICES. 
(a) REVISION TO CURRENT REQUIREMENTS.—Section 
2330a of title 10, United States Code, is amended— 
(1) by striking subsections (c), (d), (f), and (g); 
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(2) by redesignating subsections (e), (h), (i), and 
(j) as subsections (d), (e), (f), and (g), respectively; 
and 
(3) by inserting after subsection (b) the following 
new subsection (c): 
‘‘(c) INVENTORY.—(1) The Secretary of Defense shall 
implement a method for inventory of Department of Defense 
contracts for services. The method implemented under this 
subsection shall provide the capability to— 
‘‘(A) make appropriate comparisons of con-
tractor and Government civilian full-time equivalent 
employees for the purpose of informing sourcing deci-
sions and workforce planning in compliance with sec-
tion 129a of this title; 
‘‘(B) distinguish between different types of serv-
ices contracts, including contracts for labor or staff 
augmentation and other types of services contracts; 
‘‘(C) provide qualitative information such as the 
nature of the work performed, the place where the 
work is actually performed (on-site or off-site), and 
the entity for which the work is performed; and 
‘‘(D) identify the number of contractor employ-
ees, expressed as full-time equivalents for direct labor, 
using direct labor hours and associated cost data col-
lected from contractors. 
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‘‘(2) The Secretary shall ensure that the method imple-
mented under this subsection is auditable at minimal 
cost.’’. 
(b) IMPLEMENTATION OF INVENTORY METHOD.—Not 
later than 90 days after the date of the enactment of this 
Act, the Secretary of Defense shall implement a method for 
inventory of Department of Defense contracts for services, 
as required by subsection (c) of section 2330a, as amended 
by subsection (a). In implementing the method, the Sec-
retary shall use methods and systems, including time-and- 
attendance systems, or combinations of methods and sys-
tems, in existence as of the date of the enactment of this 
Act, as determined appropriate by the Secretary. 
(c) SUBMISSION TO CONGRESS.—Not later than the 
end of the third quarter of each fiscal year, through fiscal 
year 2021, the Secretary of Defense shall submit to Congress 
a summary of the inventory reporting activities performed 
by each military department, each combatant command, 
and each Defense Agency, during the preceding fiscal year 
pursuant to contracts for services (and pursuant to con-
tracts for goods to the extent services are a significant com-
ponent of performance as identified in a separate line item 
of a contract) for or on behalf of the Department of Defense. 
(d) CONFORMING AMENDMENTS.— 
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(1) Section 2330a of title 10, United States 
Code, is further amended— 
(A) in subsection (d), as redesignated by 
subsection (a)(2) of this section, by striking 
‘‘Within 90 days after the date on which an in-
ventory is submitted under subsection (c),’’ and 
inserting ‘‘Not later than the end of each fiscal 
year,’’; and 
(B) in subsection (e), as so redesignated— 
(i) by striking ‘‘2014 and ending with 
2016’’ and inserting ‘‘2017 and ending with 
2018’’; and 
(ii) by striking ‘‘subsections (e) and 
(f)’’ and inserting ‘‘subsection (c)’’. 
(2) Section 235(b) of such title is amended— 
(A) by striking ‘‘and separately’’ and all 
the follows through ‘‘amount requested’’ and in-
serting ‘‘and separately identify the amount re-
quested and the number of full-time contractor 
employees (or the equivalent of full-time in the 
case of part-time contractor employees)’’; 
(B) by striking ‘‘; and’’ and inserting a pe-
riod; and 
(C) by striking paragraph (2). 
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SEC. 
804. 
PROCUREMENT 
OF 
PERSONAL 
PROTECTIVE 
EQUIPMENT. 
Section 884 of the National Defense Authorization Act 
for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 948; 
10 U.S.C. 2302 note) is amended— 
(1) by inserting ‘‘(a) REQUIREMENT.—’’ before 
‘‘The Secretary of Defense’’; 
(2) by striking ‘‘that is predominately’’ and all 
that follows through ‘‘price’’ and inserting ‘‘described 
in subsection (b)’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(b) SOURCE SELECTION CRITERIA DESCRIBED.—For 
purposes of subsection (a), the source selection criteria de-
scribed in this subsection are criteria— 
‘‘(1) that are predominately based on technical 
qualifications of the item and not predominately 
based on price; 
‘‘(2) that do not use reverse auction or lowest 
price technically acceptable contracting methods; and 
‘‘(3) that reflect a preference for best value source 
selection methods.’’. 
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SEC. 805. REVISION TO EFFECTIVE DATE OF SENIOR EXECU-
TIVE BENCHMARK COMPENSATION FOR AL-
LOWABLE COST LIMITATIONS. 
(a) REPEAL OF RETROACTIVE APPLICABILITY.—Sec-
tion 803(c) of the National Defense Authorization Act for 
Fiscal Year 2012 (Public Law 112–81; 125 Stat. 1485; 10 
U.S.C. 2324 note) is amended by striking ‘‘amendments 
made by’’ and all that follows and inserting ‘‘amendments 
made by this section shall apply with respect to costs of 
compensation incurred after January 1, 2012, under con-
tracts entered into on or after December 31, 2011.’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall take effect as of December 31, 2011, and 
shall apply as if included in the National Defense Author-
ization Act for Fiscal Year 2012 as enacted. 
SEC. 806. AMENDMENTS RELATED TO DETECTION AND 
AVOIDANCE OF COUNTERFEIT ELECTRONIC 
PARTS. 
Section 818 of the National Defense Authorization Act 
for Fiscal Year 2012 (Public Law 112–81; 10 U.S.C. 2302 
note) is amended— 
(1) in paragraph (3) of subsection (c)— 
(A) by striking the heading and inserting 
‘‘SUPPLIERS MEETING ANTICOUNTERFEITING RE-
QUIREMENTS.—’’; 
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(B) in subparagraph (A)(i), by striking 
‘‘trusted suppliers in accordance with regulations 
issued pursuant to subparagraph (C) or (D) 
who’’ 
and 
inserting 
‘‘suppliers 
that 
meet 
anticounterfeiting requirements in accordance 
with regulations issued pursuant to subpara-
graph (C) or (D) and that’’; 
(C) in subparagraphs (A)(ii) and (A)(iii), 
by striking ‘‘trusted suppliers’’ each place it ap-
pears and inserting ‘‘suppliers that meet 
anticounterfeiting requirements’’; 
(D) in subparagraph (C), by striking ‘‘as 
trusted suppliers those’’ and inserting ‘‘sup-
pliers’’; 
(E) in subparagraph (D) in the matter pre-
ceding clause (i), by striking ‘‘trusted suppliers’’ 
and 
inserting 
‘‘suppliers 
that 
meet 
anticounterfeiting requirements’’; and 
(F) in subparagraphs (D)(i) and (D)(iii), 
by striking ‘‘trusted’’ each place it appears; and 
(2) in subsection (e)(2)(A)(v), by striking ‘‘use of 
trusted suppliers’’ and inserting ‘‘the use of suppliers 
that meet applicable anticounterfeiting requirements’’. 
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SEC. 807. AMENDMENTS TO SPECIAL EMERGENCY PRO-
CUREMENT AUTHORITY. 
Section 1903(a) of title 41, United States Code, is 
amended— 
(1) by striking ‘‘or’’ at the end of paragraph (1); 
(2) by striking the period at the end of para-
graph (2) and inserting a semicolon; and 
(3) by adding after paragraph (2) the following 
new paragraphs: 
‘‘(3) in support of a request from the Secretary 
of State or the Administrator of the United States 
Agency for International Development to facilitate the 
provision of international disaster assistance pursu-
ant to chapter 9 of part I of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2292 et seq.); or 
‘‘(4) in support of an emergency or major dis-
aster (as those terms are defined in section 102 of the 
Robert T. Stafford Disaster Relief and Emergency As-
sistance Act (42 U.S.C. 5122)).’’. 
SEC. 808. COMPLIANCE WITH DOMESTIC SOURCE REQUIRE-
MENTS FOR FOOTWEAR FURNISHED TO EN-
LISTED MEMBERS OF THE ARMED FORCES 
UPON 
THEIR 
INITIAL 
ENTRY 
INTO 
THE 
ARMED FORCES. 
Section 418 of title 37, United States Code, is amended 
by adding at the end the following new subsection: 
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‘‘(d)(1) In the case of athletic footwear needed by mem-
bers of the Army, Navy, Air Force, or Marine Corps upon 
their initial entry into the armed forces, the Secretary of 
Defense shall furnish such footwear directly to the members 
instead of providing a cash allowance to the members for 
the purchase of such footwear. 
‘‘(2) In procuring athletic footwear to comply with 
paragraph (1), the Secretary of Defense shall comply with 
the requirements of section 2533a of title 10, without regard 
to the applicability of any simplified acquisition threshold 
under chapter 137 of title 10 (or any other provision of 
law). 
‘‘(3) This subsection does not prohibit the provision of 
a cash allowance to a member described in paragraph (1) 
for the purchase of athletic footwear if such footwear— 
‘‘(A) is medically required to meet unique phys-
iological needs of the member; and 
‘‘(B) cannot be met with athletic footwear that 
complies with the requirements of this subsection.’’. 
SEC. 809. REQUIREMENT FOR POLICIES AND STANDARD 
CHECKLIST IN PROCUREMENT OF SERVICES. 
(a) REQUIREMENT.—Section 2330a of title 10, United 
States Code, as amended by section 803, is further amended 
by adding by adding at the end the following new sub-
section: 
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‘‘(h) 
REQUEST
FOR
SERVICES
CONTRACT
AP-
PROVAL.—(1) The Under Secretary of Defense for Personnel 
and Readiness shall— 
‘‘(A) ensure that Department of Defense Instruc-
tion 1100.22, Guidance for Manpower Mix, is modi-
fied to incorporate policies establishing a standard 
checklist to be completed ensuring the appropriate 
alignment of workload to the private sector prior to 
the issuance of a solicitation for any new contract for 
services or exercising an option under an existing 
contract for services, including services provided 
under a contract for goods; and 
‘‘(B) in coordination with the Under Secretary 
of Defense for Acquisition, Technology, and Logistics, 
ensure that such policies and checklist are incor-
porated by reference or otherwise into the Service Re-
quirements Review Board processes established under 
Department of Defense Instruction 5000.74 and into 
the pre-solicitation requirements of the Defense Fed-
eral Acquisition Regulation Supplement. 
‘‘(2) Such checklist shall, at minimum, consolidate and 
address workforce management and sourcing considerations 
established under sections 129, 129a, 2461, and 2463 of this 
title as well as Office of Federal Procurement Policy Letter 
11-01.’’. 
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(b) ARMY MODEL.—In implementing section 2330a(g) 
of title 10, United States Code, as added by subsection (a), 
the Under Secretary of Defense for Personnel and Readiness 
shall model, to the maximum extent practicable, its policies 
and checklist on the policies and checklist relating to serv-
ices contract approval established and in use by the Depart-
ment of the Army (as set forth in the request for services 
contract approval form updated as of August 2012, or any 
successor form). 
(c) DEADLINE.—The policies required under such sec-
tion 2230a(g) of such title, as so added, shall be issued with-
in one year after the date of the enactment of this Act. 
SEC. 810. EXTENSION OF LIMITATION ON AGGREGATE AN-
NUAL AMOUNT AVAILABLE FOR CONTRACT 
SERVICES. 
Section 808 of the National Defense Authorization Act 
for Fiscal Year 2012 (Public Law 112–81; 125 Stat. 1489), 
as most recently amended by section 813 of the National 
Defense Authorization Act for Fiscal Year 2015 (Public 
Law 113–291; 128 Stat. 3429) is further amended— 
(1) in subsections (a) and (b), by striking ‘‘or 
2015’’ and inserting ‘‘2015, 2016, or 2017’’; 
(2) in subsection (c)(3), by striking ‘‘and 2015’’ 
and inserting ‘‘2015, 2016, and 2017’’; 
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(3) in subsection (d)(4), by striking ‘‘or 2015’’ 
and inserting ‘‘2015, 2016, or 2017’’; and 
(4) in subsection (e), by striking ‘‘2015’’ and in-
serting ‘‘2017’’. 
Subtitle B—Provisions Relating to 
Major Defense Acquisition Pro-
grams 
SEC. 811. CHANGE IN DATE OF SUBMISSION TO CONGRESS 
OF SELECTED ACQUISITION REPORTS. 
Section 2432(f) of title 10, United States Code, is 
amended by striking ‘‘45’’ the first place it occurs and in-
serting ‘‘10’’. 
SEC. 812. AMENDMENTS RELATING TO INDEPENDENT COST 
ESTIMATION AND COST ANALYSIS. 
(a) AMENDMENTS.—Section 2334 of title 10, United 
States Code, is amended— 
(1) in subsection (a)(3), by striking ‘‘selection of 
confidence levels’’ both places it appears and inserting 
‘‘discussion of risk’’; 
(2) in subsection (a)(6)— 
(A) by inserting ‘‘or approve’’ after ‘‘con-
duct’’; 
(B) by striking ‘‘major defense acquisition 
programs’’ and all that follows through ‘‘Author-
ity—’’ and inserting ‘‘all major defense acquisi-
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tion programs, major automated information 
system programs, and major subprograms—’’; 
and 
(C) in subparagraph (B), by striking ‘‘or 
upon the request’’ and all that follows through 
the semicolon at the end and inserting ‘‘, upon 
the request of the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, or upon 
the request of the milestone decision authority;’’ 
(3) by redesignating subsections (b), (c), (d), (e), 
and (f) as subsections (c), (d), (e), (f), and (h), respec-
tively; 
(4) by inserting after subsection (a) the following 
new subsection (b): 
‘‘(b) INDEPENDENT COST ESTIMATE REQUIRED BE-
FORE APPROVAL.—(1) A milestone decision authority may 
not approve the system development and demonstration, or 
production and deployment, of a major defense acquisition 
program, major automated information system program, or 
major subprogram unless an independent cost estimate of 
the full life-cycle cost of the program or subprogram has 
been conducted or approved by the Director of Cost Assess-
ment and Program Evaluation and considered by the mile-
stone decision authority. 
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‘‘(2) The regulations governing the content and sub-
mission of independent cost estimates required by subsection 
(a) shall require that the independent cost estimate of the 
full life-cycle cost of a program or subprogram include— 
‘‘(A) all costs of development, procurement, mili-
tary construction, operations and support, and 
trained manpower to operate, maintain, and support 
the program or subprogram upon full operational de-
ployment, without regard to funding source or man-
agement control; and 
‘‘(B) an analysis to support decision making 
that identifies and evaluates alternative courses of ac-
tion that may reduce cost, reduce risk, and result in 
more affordable programs.’’; 
(5) in subsection (d), as so redesignated, in 
paragraph (3), by striking ‘‘confidence level’’ and in-
serting ‘‘discussion of risk’’; 
(6) in subsection (e), as so redesignated— 
(A) by amending the subsection heading to 
read as follows: ‘‘DISCUSSION OF RISK IN COST 
ESTIMATES.—’’; 
(B) by amending paragraph (1) to read as 
follows: 
‘‘(1) issue guidance requiring a discussion of 
risk, the potential impacts of risk on program costs, 
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and approaches to mitigate risk in cost estimates for 
major defense acquisition programs, major automated 
information system programs, and major subpro-
grams;’’; 
(C) in paragraph (2)— 
(i) by striking ‘‘such confidence level 
provides’’ and inserting ‘‘cost estimates pro-
vide’’; and 
(ii) by inserting ‘‘or subprogram’’ after 
‘‘the program’’; and 
(D) in paragraph (3), by striking ‘‘disclo-
sure required by paragraph (1)’’ and inserting 
‘‘information required in the guidance under 
paragraph (1)’’; and 
(7) by inserting after subsection (f), as so redes-
ignated, the following new subsection: 
‘‘(g) GUIDELINES AND COLLECTION OF COST DATA.— 
(1) The Director of Cost Assessment and Program Evalua-
tion shall, in consultation with the Under Secretary of De-
fense for Acquisition, Technology, and Logistics, develop 
policies, procedures, guidance, and a collection method to 
ensure that acquisition cost data are collected in a stand-
ardized format that facilitates cost estimation and compari-
son across acquisition programs. 
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‘‘(2) The program manager and contracting officer for 
each major defense acquisition program, major automated 
information system program, and major subprogram, in 
consultation with the cost estimating component of the rel-
evant military department or Defense Agency, shall ensure 
that cost data are collected in accordance with the require-
ments of paragraph (1) for any acquisition program in an 
amount greater than $100,000,000. 
‘‘(3) The requirement under paragraph (1) may be 
waived only by the Director of Cost Assessment and Pro-
gram Evaluation.’’. 
(b) CONFORMING AMENDMENTS
TO ADD SUBPRO-
GRAMS.—Section 2334 of such title is further amended— 
(1) in subsection (a)(2), by inserting ‘‘or major 
subprogram’’ before ‘‘under chapter 144’’; 
(2) in paragraphs (3), (4), and (5) of subsection 
(a) and in subsection (c)(1) (as redesignated by sub-
section (a) of this section), by striking ‘‘major defense 
acquisition programs and major automated informa-
tion system programs’’ and inserting ‘‘major defense 
acquisition programs, major automated information 
system programs, and major subprograms’’ each place 
it appears; 
(3) in paragraphs (1) and (2) of subsection (d) 
(as so redesignated), and in subsection (f)(4) (as so 
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redesignated), by striking ‘‘major defense acquisition 
program or major automated information system pro-
gram’’ and inserting ‘‘major defense acquisition pro-
gram, major automated information system program, 
or major subprogram’’ each place it appears; 
(4) in subsection (d)(4) (as so redesignated), by 
inserting before the period ‘‘or major subprogram’’; 
(5) in subsection (e)(3)(B) (as so redesignated), 
by inserting ‘‘or major subprogram’’ after ‘‘major de-
fense acquisition program’’; and 
(6) in subsection (f)(3) (as so redesignated), by 
striking ‘‘major defense acquisition program and 
major automated information system program’’ and 
inserting ‘‘major defense acquisition program, major 
automated information system program, and major 
subprogram’’. 
(c) REPEAL.—Chapter 144 of such title is amended— 
(1) by striking section 2434; and 
(2) in the table of sections at the beginning of 
such chapter, by striking the item relating to such sec-
tion. 
SEC. 813. REVISIONS TO MILESTONE B DETERMINATIONS. 
Section 2366b(a)(3) of title 10, United States Code, is 
amended— 
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(1) in subparagraph (B), by striking ‘‘acquisi-
tion cost in’’ and all that follows through the semi-
colon, and inserting ‘‘life-cycle cost;’’; and 
(2) in subparagraph (D), by striking ‘‘funding 
is’’ and all that follows through ‘‘made,’’ and insert-
ing ‘‘funding is expected to be available to execute the 
product development and production plan for the pro-
gram,’’. 
SEC. 814. REVIEW AND REPORT ON SUSTAINMENT PLAN-
NING IN THE ACQUISITION PROCESS. 
(a) REQUIREMENT FOR REVIEW.—The Secretary of 
Defense shall conduct a review of the extent to which 
sustainment matters are considered in decisions related to 
the requirements, acquisition, cost estimating, and pro-
gramming and budgeting processes for major defense acqui-
sition programs. The review shall include the following: 
(1) A determination of whether information re-
lated to the operation and sustainment of major de-
fense acquisition programs, including cost data, is 
available to inform decisions made during those proc-
esses. 
(2) If such information exists, an evaluation of 
the completeness, timeliness, quality, and suitability 
of the information for aiding in decisions made dur-
ing those processes. 
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(3) A determination of whether information re-
lated to the operation and sustainment of existing 
major weapon systems is used to forecast the oper-
ation and sustainment needs of major weapon sys-
tems proposed for or under development. 
(4) A description of the potential benefits from 
improved completeness, timeliness, quality, and suit-
ability of data on operation and support costs and 
increased consideration of such data. 
(5) Recommendations for improving access to 
and consideration of operation and support cost data. 
(6) An assessment of product support strategies 
for major weapon systems required by section 2337 of 
title 10, United States Code, or other similar life-cycle 
sustainment strategies, including an evaluation of— 
(A) the stage at which such strategies are 
developed during the life of a major weapon sys-
tem; 
(B) the content and completeness of such 
strategies; 
(C) the extent to which such strategies influ-
ence the planning for major defense acquisition 
programs; and 
(D) the extent to which such strategies in-
fluence decisions related to the life-cycle manage-
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ment and product support of major weapon sys-
tems. 
(7) An assessment of how effectively the military 
departments consider sustainment matters at key de-
cision points for acquisition and life-cycle manage-
ment in accordance with the requirements of sections 
2431a, 2366a, 2366b, and 2337 of title 10, United 
States Code and section 832 of the National Defense 
Authorization Act for Fiscal Year 2012 (Public Law 
112–81; 10 U.S.C. 2430 note). 
(8) Recommendations for improving the consid-
eration of sustainment during the requirements, ac-
quisition, cost estimating, programming and budg-
eting processes. 
(b) CONTRACT WITH INDEPENDENT ENTITY.—Not 
later than 30 days after the date of the enactment of this 
Act, the Secretary shall enter into a contract with an inde-
pendent entity with appropriate expertise to conduct the 
review required by subsection (a). The contract also shall 
require the entity to provide to the Secretary a report on 
the findings of the entity. 
(c) BRIEFING.—Not later than March 1, 2017, the Sec-
retary shall provide a briefing to the Committees on Armed 
Services of the Senate and House of Representatives on the 
preliminary findings of the independent entity. 
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(d) SUBMISSION TO CONGRESS.—Not later than Au-
gust 1, 2017, the Secretary shall submit to the congressional 
defense committees a copy of the report of the independent 
entity, along with comments on the report, proposed revi-
sions or clarifications to laws related to life-cycle manage-
ment or sustainment planning for major weapon systems, 
and a description of any actions the Secretary may take 
to revise or clarify regulations related to life-cycle manage-
ment or sustainment planning for major weapon systems. 
SEC. 815. REVISION TO DISTRIBUTION OF ANNUAL REPORT 
ON OPERATIONAL TEST AND EVALUATION. 
Section 139(h) of title 10, United States Code, is 
amended— 
(1) in paragraph (2)— 
(A) by inserting ‘‘the Secretaries of the 
military departments,’’ after ‘‘Logistics,’’; and 
(B) by striking ‘‘10 days’’ and all that fol-
lows through ‘‘title 31’’ and inserting ‘‘January 
31 of each year, through January 31, 2021’’; and 
(2) in paragraph (5), by inserting after ‘‘Sec-
retary’’ the following: ‘‘of Defense and the Secretaries 
of the military departments’’. 
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Subtitle C—Provisions Relating to 
Commercial Items 
SEC. 821. REVISION TO DEFINITION OF COMMERCIAL ITEM. 
(a) IN GENERAL.—Section 103(8) of title 41, United 
States Code, is amended by striking ‘‘to multiple State and 
local governments’’ and inserting ‘‘to State, local, or foreign 
governments’’. 
(b) EFFECT ON SECTION 2464.—Nothing in this sec-
tion or the amendment made by this section shall affect the 
meaning of the term ‘‘commercial item’’ under section 
(a)(5) of section 2464 of title 10, United States Code, or 
any requirement under subsection (a)(3) or subsection (c) 
of such section. 
SEC. 822. MARKET RESEARCH FOR DETERMINATION OF 
PRICE REASONABLENESS IN ACQUISITION OF 
COMMERCIAL ITEMS. 
Section 2377 of title 10, United States Code, is amend-
ed— 
(1) by redesignating subsection (d) as subsection 
(e), and in that subsection by striking ‘‘subsection 
(c)’’ and inserting ‘‘subsections (c) and (d)’’; and 
(2) by inserting after subsection (c) the following 
new subsection (d): 
‘‘(d) MARKET RESEARCH FOR PRICE ANALYSIS.—The 
Secretary of Defense shall ensure that procurement officials 
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in the Department of Defense conduct or obtain market re-
search to support the determination of the reasonableness 
of price for commercial items contained in any bid or offer 
submitted in response to an agency solicitation. To the ex-
tent necessary to support such market research, the procure-
ment official for the solicitation— 
‘‘(1) in the case of items acquired under section 
2379 of this title, shall use information submitted 
under subsection (d) of that section; and 
‘‘(2) in the case of other items, may require the 
offeror to submit relevant information.’’. 
SEC. 823. VALUE ANALYSIS FOR THE DETERMINATION OF 
PRICE REASONABLENESS. 
Subsection 2379(d) of title 10, United States Code, is 
amended— 
(1) by redesignating paragraph (2) as para-
graph (3); and 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph (2): 
‘‘(2) An offeror may submit information or analysis 
relating to the value of a commercial item to aid in the 
determination of the reasonableness of the price of such 
item. A contracting officer may consider such information 
or analysis in addition to the information submitted pursu-
ant to paragraphs (1)(A) and (1)(B).’’. 
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SEC. 824. CLARIFICATION OF REQUIREMENTS RELATING TO 
COMMERCIAL ITEM DETERMINATIONS. 
Paragraphs (1) and (2) of section 2380 of title 10, 
United States Code, are amended to read as follows: 
‘‘(1) establish and maintain a centralized capa-
bility with necessary expertise and resources to pro-
vide assistance to the military departments and De-
fense Agencies in making commercial item determina-
tions, conducting market research, and performing 
analysis of price reasonableness for the purposes of 
procurements by the Department of Defense; and 
‘‘(2) provide to officials of the Department of De-
fense access to previous Department of Defense com-
mercial item determinations, market research, and 
analysis used to determine the reasonableness of price 
for the purposes of procurements by the Department 
of Defense.’’. 
SEC. 825. PILOT PROGRAM FOR AUTHORITY TO ACQUIRE IN-
NOVATIVE COMMERCIAL ITEMS USING GEN-
ERAL SOLICITATION COMPETITIVE PROCE-
DURES. 
(a) AUTHORITY.—The Secretary of Defense may carry 
out a pilot program, to be known as a ‘‘commercial solu-
tions opening pilot program’’, under which innovative com-
mercial items may be acquired through a competitive selec-
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tion of proposals resulting from a general solicitation and 
the peer review of such proposals. 
(b) TREATMENT AS COMPETITIVE PROCEDURES.—Use 
of general solicitation competitive procedures for the pilot 
program under subsection (a) shall be considered to be use 
of competitive procedures for purposes of chapter 137 of title 
10, United States Code. 
(c) LIMITATIONS ON FUNDING.— 
(1) 
LIMITATION
ON
INDIVIDUAL
CONTRACT 
AMOUNT.—The Secretary may not enter into a con-
tract under the pilot program for an amount in ex-
cess of $10,000,000. 
(2) ANNUAL LIMITATION.—The total amount that 
may be obligated or expended under the pilot pro-
gram for a fiscal year may not exceed $75,000,000. 
(d) LIMITATION RELATING TO MAJOR DEFENSE AC-
QUISITION PROGRAM SYSTEMS.—The Secretary may not 
acquire innovative commercial items under the pilot pro-
gram to replace a system under a major defense acquisition 
program in its entirety. 
(e) GUIDANCE.—The Secretary shall issue guidance for 
the implementation of the pilot program under this section 
within the Department of Defense. Such guidance shall be 
issued in consultation with the Office of Management and 
Budget and shall be posted for access by the public. 
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(f) REPORTS REQUIRED.— 
(1) IN
GENERAL.—Not later than six months 
after the initiation of the pilot program, and every 
six months thereafter, the Secretary shall submit to 
the Committees on Armed Services of the Senate and 
House of Representatives a report on the activities the 
Department of Defense carried out under the pilot 
program. 
(2) ELEMENTS OF REPORT.—The report under 
this subsection shall include the following: 
(A) An assessment of the impact of the pilot 
program on competition. 
(B) An assessment of the ability under the 
pilot program to attract proposals from non-
traditional defense contractors (as defined in sec-
tion 2302(9) of title 10, United States Code). 
(C) A comparison of acquisition timelines 
for— 
(i) procurements made using the pilot 
program; and 
(ii) procurements made using other 
competitive procedures that do not use gen-
eral solicitations. 
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(D) A recommendation on whether the au-
thority for the pilot program should be made 
permanent. 
(g) DEFINITION.—In this section, the term ‘‘innova-
tive’’ means— 
(1) any new technology, process, or method, able 
to be used to improve or replace existing information 
system applications, programs, or networks, or used 
to improve research and development of information 
technology advancements; or 
(2) any new application of an existing tech-
nology, process, or method. 
(h) TERMINATION.—The authority to enter into a con-
tract under a pilot program under this section terminates 
on the date occurring five years after the date of the enact-
ment of this Act. 
Subtitle D—Other Matters 
SEC. 831. REVIEW AND REPORT ON THE BID PROTEST 
PROCESS. 
(a) REVIEW.—The Secretary of Defense shall conduct 
a review of the bid protest processes related to major defense 
acquisition programs. The review shall examine the extent 
to which— 
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(1) the incidence and duration of bid protests 
have increased or decreased during the previous dec-
ade; 
(2) bid protests have delayed procurement of 
items or services; 
(3) there are differences in the incidence and out-
comes of bid protests filed by incumbent and non-in-
cumbent contractors; 
(4) protests filed by incumbent contractors result 
in extension of the period of performance of a con-
tract, and whether there are benefits (monetary or 
non-monetary) to incumbent contractors under such 
circumstances; and 
(5) there are alternative actions or authorities 
that could give the Government more flexibility in 
managing contracts if a bid protest is filed. 
(b) CONTRACT WITH INDEPENDENT ENTITY.—Not 
later than 30 days after the date of the enactment of this 
Act, the Secretary of Defense shall enter into a contract with 
an independent entity with appropriate expertise to con-
duct the review required in subsection (a). 
(c) BRIEFING.—Not later than March 1, 2017, the Sec-
retary, or his designee, shall brief the Committees on Armed 
Services of the Senate and House of Representatives on in-
terim findings of the independent entity. 
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(d) REPORT.—Not later than July 1, 2017, the Sec-
retary shall submit to the congressional defense committees 
a report on the findings of the independent entity, along 
with a description of any actions that the Secretary pro-
poses to address the findings of the independent entity. 
SEC. 832. REVIEW AND REPORT ON INDEFINITE DELIVERY 
CONTRACTS. 
(a) REPORT.—The Comptroller General of the United 
States shall deliver, not later than March 31, 2018, a report 
to Congress on the use by the Department of Defense of in-
definite delivery contracts entered into during fiscal years 
2015, 2016, and 2017. 
(b) ELEMENTS.—The report under subsection (a) shall 
address, at a minimum, the following: 
(1) A review of Department of Defense policies 
for using indefinite delivery contracts, including re-
quirements for competition. 
(2) The number and value of all indefinite deliv-
ery contracts entered into by the Department of De-
fense. 
(3) An assessment of the number and value of in-
definite delivery contracts entered into by the Depart-
ment of Defense that included competition between 
multiple vendors. 
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(4) Selected case studies of indefinite delivery 
contracts, including an assessment of whether any 
such contracts may have limited future opportunities 
for competition for the services or items required. 
(5) Recommendations for potential changes to 
current law or Department of Defense acquisition reg-
ulations to promote competition with respect to in-
definite delivery contracts. 
SEC. 833. REVIEW AND REPORT ON CONTRACTUAL FLOW- 
DOWN PROVISIONS. 
(a) REVIEW REQUIRED.—The Secretary of Defense 
shall conduct a review of contractual flow-down provisions 
related to major defense acquisition programs. The review 
shall— 
(1) identify the flow-down provisions that exist 
in the Federal Acquisition Regulation and the Defense 
Federal Acquisition Regulation Supplement; 
(2) identify the flow-down provisions that are 
critical for national security; 
(3) examine the extent to which clauses in con-
tracts with the Department of Defense are being ap-
plied inappropriately in subcontracts under the con-
tracts; 
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(4) assess the applicability of flow-down provi-
sions for the purchase of commodity items that are 
acquired in bulk for multiple acquisition programs; 
(5) determine the unnecessary costs or burdens, 
if any, of flow-down provisions on the supply chain; 
and 
(6) determine the effect, if any, of flow-down pro-
visions on the participation rate of small businesses 
and non-traditional defense contractors in defense 
procurements. 
(b) CONTRACT.—Not later than 30 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
enter into a contract with an independent entity with ap-
propriate expertise to conduct the review required by sub-
section (a). 
(c) BRIEFING.—Not later than March 1, 2017, the Sec-
retary, or his designee, shall brief the Committees on Armed 
Services of the Senate and the House of Representatives on 
interim findings of the independent entity as well as initial 
recommendations of the entity on how to modify or elimi-
nate contractual flow-down requirements that the entity 
considers burdensome or unnecessary. 
(d) REPORT.—Not later than August 1, 2017, the Sec-
retary shall submit to the congressional defense committees 
a report on the findings of the independent entity, along 
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with a description of any actions that the Secretary pro-
poses to address the findings of the independent entity. 
SEC. 834. REVIEW OF ANTI-COMPETITIVE SPECIFICATIONS 
IN 
INFORMATION 
TECHNOLOGY 
ACQUISI-
TIONS. 
(a) REVIEW REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Under Sec-
retary of Defense for Acquisition, Technology, and Logistics 
shall conduct a review of the policy, guidance, regulations, 
and training related to specifications included in informa-
tion technology acquisitions to ensure current policies 
eliminate the unjustified use of potentially anti-competitive 
specifications. In conducting the review, the Under Sec-
retary shall examine the use of brand names or proprietary 
specifications or standards in solicitations for procurements 
of goods and services, as well as the current acquisition 
training curriculum related to those areas. 
(b) BRIEFING REQUIRED.—Not later than 270 days 
after the date of the enactment of this Act, the Under Sec-
retary shall provide a briefing to the Committees on Armed 
Services of the Senate and House of Representatives on the 
results of the review required by subsection (a). 
(c) ADDITIONAL GUIDANCE.—Not later than one year 
after the date of the enactment of this Act, the Under Sec-
retary shall revise policies, guidance, and training to incor-
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porate such recommendations as the Under Secretary con-
siders appropriate from the review required by subsection 
(a). 
SEC. 835. COAST GUARD MAJOR ACQUISITION PROGRAMS. 
(a) FUNCTIONS OF CHIEF ACQUISITION OFFICER.— 
Section 56(c) of title 14, United States Code, is amended 
by striking ‘‘and’’ after the semicolon at the end of para-
graph (8), striking the period at the end of paragraph (9) 
and inserting ‘‘; and’’, and adding at the end the following: 
‘‘(10)(A) keeping the Commandant informed of 
the progress of major acquisition programs (as that 
term is defined in section 581); 
‘‘(B) informing the Commandant on a con-
tinuing basis of any developments on such programs 
that may require new or revisited trade-offs among 
cost, schedule, technical feasibility, and performance, 
including— 
‘‘(i) significant cost growth or schedule slip-
page; and 
‘‘(ii) requirements creep (as that term is de-
fined in section 2547(c)(1) of title 10); and 
‘‘(C) ensuring that the views of the Commandant 
regarding such programs on cost, schedule, technical 
feasibility, and performance trade-offs are strongly 
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considered by program managers and program execu-
tive officers in all phases of the acquisition process.’’. 
(b) CUSTOMER SERVICE MISSION OF DIRECTORATE.— 
(1) IN GENERAL.—Chapter 15 of title 14, United 
States Code, is amended— 
(A) in section 561(b)— 
(i) in paragraph (1), by striking ‘‘; 
and’’ and inserting a semicolon; 
(ii) in paragraph (2), by striking the 
period and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(3) to meet the needs of customers of major ac-
quisition programs in the most cost-effective manner 
practicable.’’; 
(B) in section 562, by repealing subsection 
(b) and redesignating subsections (c) through (g) 
as subsections (b) through (f), respectively; 
(C) in section 563, by striking ‘‘Not later 
than 180 days after the date of enactment of the 
Coast Guard Authorization Act of 2010, the 
Commandant shall commence implementation 
of’’ and inserting ‘‘The Commandant shall main-
tain’’; 
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(D) by adding at the end of section 564 the 
following: 
‘‘(c) ACQUISITION OF UNMANNED AERIAL SYSTEMS.— 
‘‘(1) IN GENERAL.—The Commandant— 
‘‘(A) may not award a contract for design 
of an unmanned aerial system for use by the 
Coast Guard; and 
‘‘(B) may acquire an unmanned aerial sys-
tem only— 
‘‘(i) if such a system has been acquired 
or has been used by the Department of De-
fense or the Department of Homeland Secu-
rity, or a component thereof, before the date 
on which the Commandant acquires the sys-
tem; and 
‘‘(ii) through an agreement with such 
department or component, unless the un-
manned aerial system can be obtained at 
less cost through independent contract ac-
tion. 
‘‘(2) LIMITATION ON APPLICATION.—The limita-
tions of paragraph (1)(B) shall not apply to any 
small unmanned aerial system that consists of— 
‘‘(A) an unmanned aircraft weighing less 
than 55 pounds on takeoff, including all compo-
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nents and equipment on board or otherwise at-
tached to the aircraft; and 
‘‘(B) associated elements (including commu-
nication links and the components that control 
such aircraft) that are required for the safe and 
efficient operation of such aircraft.’’; 
(E) in subchapter II, by adding at the end 
the following: 
‘‘§ 578. Role of Vice Commandant in major acquisition 
programs 
‘‘The Vice Commandant— 
‘‘(1) shall represent the customer of a major ac-
quisition program with regard to trade-offs made 
among cost, schedule, technical feasibility, and per-
formance with respect to such program; and. 
‘‘(2) shall advise the Commandant in decisions 
regarding the balancing of resources against prior-
ities, and associated trade-offs referred to in para-
graph (1), on behalf of the customer of a major acqui-
sition program. 
‘‘§ 579. Extension of major acquisition program con-
tracts 
‘‘(a) IN GENERAL.—Notwithstanding section 564(a)(2) 
of this title and section 2304 of title 10, and subject to sub-
sections (b) and (c) of this section, the Secretary may ac-
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quire additional units procured under a Coast Guard major 
acquisition program contract, by extension of such contract 
without competition, if the Comptroller General of the 
United States determines that the costs that would be saved 
through award of a new contract in accordance with such 
sections would not exceed the costs of such an award. 
‘‘(b) LIMITATION
ON
NUMBER
OF
ADDITIONAL 
UNITS.—The number of additional units acquired under a 
contract extension under this section may not exceed the 
number of additional units for which such determination 
is made. 
‘‘(c) DETERMINATION OF COSTS UPON REQUEST.— 
The Comptroller General shall, at the request of the Sec-
retary, determine for purposes of this section— 
‘‘(1) the costs that would be saved through award 
of a new major acquisition program contract in ac-
cordance with section 564(a)(2) for the acquisition of 
a number of additional units specified by the Sec-
retary; and 
‘‘(2) the costs of such award, including the costs 
that would be incurred due to acquisition schedule 
delays and asset design changes associated with such 
award. 
‘‘(d) NUMBER OF EXTENSIONS.—A contract may be 
extended under this section more than once.’’; and 
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(F) in section 581— 
(i) by redesignating paragraphs (7) 
through (10) as paragraphs (9) through 
(12), respectively, and by redesignating 
paragraphs (3) through (6) as paragraphs 
(4) through (7), respectively; 
(ii) by inserting after paragraph (2) 
the following: 
‘‘(3) CUSTOMER OF A MAJOR ACQUISITION PRO-
GRAM.—The term ‘customer of a major acquisition 
program’ means the operating field unit of the Coast 
Guard that will field the system or systems acquired 
under a major acquisition program.’’; and 
(iii) by inserting after paragraph (7), 
as so redesignated, the following: 
‘‘(8) MAJOR ACQUISITION PROGRAM.—The term 
‘major acquisition program’ means an ongoing acqui-
sition undertaken by the Coast Guard with a life- 
cycle cost estimate greater than or equal to 
$300,000,000.’’. 
(2) CONFORMING AMENDMENT.—Section 569a of 
such title is amended by striking subsection (e). 
(3) CLERICAL AMENDMENT.—The analysis at the 
beginning of such chapter is amended by adding at 
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the end of the items relating to subchapter II the fol-
lowing: 
‘‘578. Role of Vice Commandant in major acquisition programs. 
‘‘579. Extension of major acquisition program contracts.’’. 
(c) REVIEW REQUIRED.— 
(1) REQUIREMENT.—The Commandant of the 
Coast Guard shall conduct a review of— 
(A) the authorities provided to the Com-
mandant in chapter 15 of title 14, United States 
Code, and other relevant statutes and regulations 
related to Coast Guard acquisitions, including 
developing recommendations to ensure that the 
Commandant plays an appropriate role in the 
development of requirements, acquisition proc-
esses, and the associated budget practices; 
(B) implementation of the strategy prepared 
in accordance with section 562(b)(2) of title 14, 
United States Code, as in effect before the enact-
ment of the National Defense Authorization Act 
for Fiscal Year 2017; and 
(C) acquisition policies, directives, and reg-
ulations of the Coast Guard to ensure such poli-
cies, directives, and regulations establish a cus-
tomer-oriented acquisition system. 
(2) REPORT.—Not later than March 1, 2017, the 
Commandant shall submit to the Committee on 
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Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report 
containing, at a minimum, the following: 
(A) The recommendations developed by the 
Commandant under paragraph (1) and other re-
sults of the review conducted under such para-
graph. 
(B) The actions the Commandant is taking, 
if any, within the Commandant’s existing au-
thority to implement such recommendations. 
(3) MODIFICATION
OF
POLICIES, DIRECTIVES, 
AND REGULATIONS.—Not later than one year after the 
date of the enactment of this Act, the Commandant of 
the Coast Guard shall modify the acquisition policies, 
directives, and regulations of the Coast Guard as nec-
essary to ensure the development and implementation 
of a customer-oriented acquisition system, pursuant 
to the review under paragraph (1)(C). 
(d) ANALYSIS OF USING MULTIYEAR CONTRACTING.— 
(1) IN GENERAL.—No later than one year after 
the date of the enactment of this Act, the Secretary of 
the department in which the Coast Guard is oper-
ating shall submit to the Committee on Transpor-
tation and Infrastructure of the House of Representa-
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tives and the Committee on Commerce, Science, and 
Transportation of the Senate an analysis of the use 
of multiyear contracting, including procurement au-
thority provided under section 2306b of title 10, 
United States Code, and authority similar to that 
granted to the Navy under section 121(b) of the Na-
tional Defense Authorization Act for Fiscal Year 1998 
(Public Law 105–85; 111 Stat. 1648) and section 150 
of the Continuing Appropriations Act, 2011 (Public 
Law 111–242; 124 Stat. 3519), to acquire any com-
bination of at least five— 
(A) Fast Response Cutters, beginning with 
hull 43; and 
(B) Offshore Patrol Cutters, beginning with 
hull 5. 
(2) CONTENTS.—The analysis under paragraph 
(1) shall include the costs and benefits of using 
multiyear contracting, the impact of multiyear con-
tracting on delivery timelines, and whether the acqui-
sitions examined would meet the tests for the use of 
multiyear procurement authorities. 
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SEC. 836. WAIVER OF CONGRESSIONAL NOTIFICATION FOR 
ACQUISITION OF TACTICAL MISSILES AND 
MUNITIONS GREATER THAN QUANTITY SPEC-
IFIED IN LAW. 
Section 2308(c) of title 10, United States Code, is 
amended— 
(1) by inserting ‘‘(1)’’ before ‘‘The head’’; 
(2) by inserting ‘‘, except as provided in para-
graph (2),’’ after ‘‘but’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(2) A notification is not required under paragraph 
(1) if the end item being acquired in a higher quantity is 
an end item under a tactical missile program or a muni-
tion program.’’. 
SEC. 837. CLOSEOUT OF OLD DEPARTMENT OF THE NAVY 
CONTRACTS. 
(a) AUTHORITY.—Notwithstanding any other provi-
sion of law, the Secretary of the Navy may close out the 
contracts described in subsection (b) through the issuance 
of one or more modifications to such contracts without com-
pleting further reconciliation audits or corrective actions 
other than those described in this section. To accomplish 
closeout of such contracts— 
(1) remaining contract balances may be offset 
with balances in other contract line items within a 
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contract regardless of the year or type of appropria-
tion obligated to fund each contract line item and re-
gardless of whether the appropriations for such con-
tract line items have closed; and 
(2) remaining contract balances may be offset 
with balances on other contracts regardless of the year 
or type of appropriation obligated to fund each con-
tract and regardless of whether the appropriations for 
such contract line item have closed. 
(b) CONTRACTS COVERED.—The contracts covered by 
this section are a group of contracts that are with one con-
tractor and identified by the Secretary, each one of which 
is a contract— 
(1) to design, construct, repair, or support the 
construction or repair of Navy submarines that— 
(A) was entered into between fiscal years 
1974 and 1998; and 
(B) has no further supply or services 
deliverables due under the terms and conditions 
of the contract; 
(2) with respect to which the Secretary of the 
Navy has established the total final contract value; 
and 
(3) with respect to which the Secretary of the 
Navy has determined that the final allowable cost 
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may have a negative or positive unliquidated obliga-
tion balance for which it would be difficult to deter-
mine the year or type of appropriation because— 
(A) the records for the contract have been 
destroyed or lost; or 
(B) the records for the contract are avail-
able but the contracting officer, in collaboration 
with the certifying official, has determined that 
a discrepancy is of such a minimal value that 
the time and effort required to determine the 
cause of an out-of-balance condition is dis-
proportionate to the amount of the discrepancy. 
(c) CLOSEOUT.—The contracts described in subsection 
(b) may be closed out— 
(1) upon receipt of $581,803 from the contractor, 
to be deposited into the Treasury as miscellaneous re-
ceipts; and 
(2) without seeking further amounts from the 
contractor, and without payment to the contractor of 
any amounts that may be due under such contracts. 
(d) ADJUSTMENT AND CLOSURE OF RECORDS.—After 
closeout of any contract described in subsection (b) using 
the authority of this section, the payment or accounting of-
fices concerned may adjust and close any open finance and 
accounting records relating to the contract. 
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SEC. 838. 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: 
‘‘(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 2017 using funds available for Na-
tional Defense Sealift Fund programs or Shipbuilding and 
Conversion, Navy.’’. 
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SEC. 839. DEPARTMENT OF DEFENSE ACQUISITION WORK-
FORCE DEVELOPMENT FUND DETERMINA-
TION ADJUSTMENT. 
Subsection (d)(2)(D) of section 1705 of title 10, United 
States Code, is amended by inserting after ‘‘$400,000,000’’ 
the following: ‘‘except that, in the case of fiscal year 2017, 
the Secretary may reduce the amount to $0’’. 
SEC. 840. AMENDMENT TO PROHIBITION ON PERFORMANCE 
OF NON-DEFENSE AUDITS BY DEFENSE CON-
TRACT AUDIT AGENCY TO EXEMPT AUDITS 
FOR NATIONAL NUCLEAR SECURITY ADMINIS-
TRATION. 
Section 893(a) of the National Defense Authorization 
Act for Fiscal Year 2016 (Public Law 114–92; Stat. 952) 
is amended— 
(1) in paragraph (1), by striking ‘‘Effective’’ 
and inserting ‘‘Except as provided in paragraph (3), 
effective’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(3) EXCEPTION.—In this subsection, the term 
‘non-Defense Agencies’ does not include the National 
Nuclear Security Administration.’’. 
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SEC. 841. SELECTION OF SERVICE PROVIDERS FOR AUDIT-
ING SERVICES AND AUDIT READINESS SERV-
ICES. 
The Department of Defense shall select service pro-
viders for auditing services and audit readiness services 
based on the best value to the Department, as determined 
by the resource sponsor for an auditing contract, rather 
than based on the lowest price technically acceptable service 
provider. 
SEC. 842. MODIFICATIONS TO THE JUSTIFICATION AND AP-
PROVAL 
PROCESS 
FOR 
CERTAIN 
SOLE- 
SOURCE CONTRACTS FOR SMALL BUSINESS 
CONCERNS. 
(a) REPEAL OF SIMPLIFIED JUSTIFICATION AND AP-
PROVAL PROCESS.—Section 811 of the National Defense 
Authorization Act for Fiscal Year 2010 (Public Law 111- 
84; 123 Stat. 2405; 41 U.S.C. 3304 note) is repealed. 
(b) REQUIREMENTS
FOR JUSTIFICATION
AND AP-
PROVAL PROCESS.— 
(1) 
DEFENSE
PROCUREMENTS.—Section 
2304(f)(2)(D)(ii) of title 10, United States Code, is 
amended by inserting ‘‘only if such procurement is 
for property or services in an amount less than 
$20,000,000’’ before the semicolon at the end. 
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(2) 
CIVILIAN
PROCUREMENTS.—Section 
3304(e)(4) of title 41, United States Code, is amend-
ed— 
(A) in subparagraph (C), by striking ‘‘or’’ 
at the end; 
(B) in subparagraph (D), by striking ‘‘or 
section 8(a) of the Small Business Act (15 
U.S.C. 637(a)).’’ and inserting ‘‘; or’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(E) the procurement is for property or 
services in an amount less than $20,000,000 and 
is conducted under section 8(a) of the Small 
Business Act (15 U.S.C. 637(a)).’’. 
TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND 
MANAGEMENT 
Subtitle A—Goldwater-Nichols 
Reform 
SEC. 901. SENSE OF CONGRESS ON GOLDWATER-NICHOLS 
REFORM. 
It is the sense of Congress that the following principles 
should be adhered to in any reform of the Goldwater-Nichols 
Department of Defense Reorganization Act of 1986: 
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(1) Civilian control of the military and the civil-
ian chain of command must be preserved. 
(2) The role of the Chairman of the Joint Chiefs 
of Staff in providing independent military advice, as 
the principal military advisor to the President and 
the Secretary of Defense, must be preserved. 
(3) Any changes to the Goldwater-Nichols Act of 
1986 should be rooted in a clear identification and 
understanding of the issues and the objectives and 
ramifications of any changes. 
(4) Any changes to the Goldwater-Nichols Act of 
1986 should enhance the capabilities of the United 
States Armed Forces. 
(5) Each Geographical Unified Command has its 
own distinct area of emphasis and expertise, as well 
as requirements and responsibilities. Combining 
Northern Command and Southern Command, or com-
bining European Command and Africa Command, 
would severely degrade mission effectiveness, but 
would provide only marginal increased efficiency. Ad-
ditionally, consolidating Geographic Unified Com-
mands would cause unacceptable risk to both global 
strategic influence as well as regional capability, and 
would exacerbate already significant capacity chal-
lenges. 
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(6) The emphasis on strategy and planning in 
the Goldwater-Nichols Act must be sustained. 
(7) Complex security challenges will become in-
creasingly transregional, multi-domain, and multi- 
functional. 
(8) Therefore, the Department of Defense, includ-
ing streamlined headquarters staffs, must be more 
agile and adaptive. 
SEC. 902. REPEAL OF DEFENSE STRATEGY REVIEW. 
(a) REPEAL.—Section 118 of title 10, United States 
Code, is repealed. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 2 of such title is amended by strik-
ing the item relating to section 118. 
SEC. 903. COMMISSION ON THE NATIONAL DEFENSE STRAT-
EGY FOR THE UNITED STATES. 
(a) ESTABLISHMENT.—There is hereby established a 
commission to be known as the ‘‘Commission on the Na-
tional Defense Strategy for the United States’’. The purpose 
of the commission is to examine and make recommenda-
tions with respect to national defense strategy for the 
United States. 
(b) COMPOSITION.— 
(1) MEMBERSHIP.—The commission shall be 
composed of 12 members appointed as follows: 
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(A) Three members appointed by the chair 
of the Committee on Armed Services of the House 
of Representatives. 
(B) Three members appointed by the rank-
ing minority member of the Committee on 
Armed Services of the House of Representatives. 
(C) Three members appointed by the chair 
of the Committee on Armed Services of the Sen-
ate. 
(D) Three members appointed by the rank-
ing minority member of the Committee on 
Armed Services of the Senate. 
(2) CHAIR; VICE CHAIR.— 
(A) CHAIR.—The chair of the Committee on 
Armed Services of the House of Representative 
and the chair of the Committee on Armed Serv-
ices of the Senate shall jointly designate one 
member of the commission to serve as chair of 
the commission. 
(B) VICE
CHAIR.—The ranking minority 
member of the Committee on Armed Services of 
the House of Representative and the ranking mi-
nority member of the Committee on Armed Serv-
ices of the Senate shall jointly designate one 
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(2) OTHER STATUTORY OFFICES.—The positions 
of the Under Secretary of the Navy, the four Assistant 
Secretaries of the Navy, and the General Counsel of 
the Department of the Navy are redesignated as the 
Under Secretary of the Navy and Marine Corps, the 
Assistant Secretaries of the Navy and Marine Corps, 
and the General Counsel of the Department of the 
Navy and Marine Corps, respectively. 
SEC. 932. CONFORMING AMENDMENTS TO TITLE 10, UNITED 
STATES CODE. 
(a) DEFINITION
OF
‘‘MILITARY
DEPARTMENT’’.— 
Paragraph (8) of section 101(a) of title 10, United States 
Code, is amended to read as follows: 
‘‘(8) The term ‘military department’ means the 
Department of the Army, the Department of the Navy 
and Marine Corps, and the Department of the Air 
Force.’’. 
(b) ORGANIZATION OF DEPARTMENT.—The text of sec-
tion 5011 of such title is amended to read as follows: ‘‘The 
Department of the Navy and Marine Corps is separately 
organized under the Secretary of the Navy and Marine 
Corps.’’. 
(c) POSITION OF SECRETARY.—Section 5013(a)(1) of 
such title is amended by striking ‘‘There is a Secretary of 
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the Navy’’ and inserting ‘‘There is a Secretary of the Navy 
and Marine Corps’’. 
(d) CHAPTER HEADINGS.— 
(1) The heading of chapter 503 of such title is 
amended to read as follows: 
‘‘CHAPTER 503—DEPARTMENT OF THE 
NAVY AND MARINE CORPS’’. 
(2) The heading of chapter 507 of such title is 
amended to read as follows: 
‘‘CHAPTER 507—COMPOSITION OF THE DE-
PARTMENT OF THE NAVY AND MARINE 
CORPS’’. 
(e) OTHER AMENDMENTS.— 
(1) Title 10, United States Code, is amended by 
striking ‘‘Department of the Navy’’ and ‘‘Secretary of 
the Navy’’ each place they appear other than as speci-
fied in subsections (a), (b), (c), and (d) (including in 
section headings, subsection captions, tables of chap-
ters, and tables of sections) and inserting ‘‘Depart-
ment of the Navy and Marine Corps’’ and ‘‘Secretary 
of the Navy and Marine Corps’’, respectively, in each 
case with the matter inserted to be in the same type-
face and typestyle as the matter stricken. 
(2)(A) Sections 5013(f), 5014(b)(2), 5016(a), 
5017(2), 5032(a), and 5042(a) of such title are 
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subparagraph (D), the eligible entity shall 
have the opportunity to appeal such deci-
sion to the Administrator, who may dele-
gate such appeal to an appropriate officer 
of the Administration. 
‘‘(ii) 
OPPORTUNITY
FOR
EXPLA-
NATION.—Any 
appeal 
described 
under 
clause (i) shall provide an opportunity for 
the eligible entity to provide, in writing, an 
explanation of why the eligible entity’s plan 
remedies the problems identified in the an-
nual review. 
‘‘(iii) NOTICE
OF
DETERMINATION.— 
The determination of the appeal shall be 
provided to the eligible entity, in writing, 
within 15 calendar days from the eligible 
entity’s filing of the appeal. 
‘‘(iv) EFFECT OF FAILURE TO ACT.—If 
the Administrator fails to act on an appeal 
made under this subparagraph within the 
15 calendar day period specified under 
clause (iii), the eligible entity’s amended 
plan of action submitted under subpara-
graph (C) shall be deemed to be approved. 
‘‘(8) TERMINATION OF GRANT.— 
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