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(B) The contracting officer should not re-
quest more information than is necessary to de-
termine that an offered price is reasonable. 
(2) OPTION 2.—Part 15 of the Federal Acquisi-
tion Regulation, relating to contracting by negotia-
tion, as in effect on the date of the enactment of this 
Act. 
SEC. 802. ACQUISITION WORKFORCE PROVISIONS. 
(a) REPEAL OF SUNSET OF ACQUISITION WORK-
FORCE TRAINING FUND.—Section 37(h)(3) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 433(h)(3)) 
is amended by striking subparagraph (H). 
(b) REQUIREMENT FOR SECTION ON ACQUISITION 
WORKFORCE IN STRATEGIC HUMAN CAPITAL PLAN.— 
(1) IN GENERAL.—In the update of the stra-
tegic human capital plan for 2008, and in each sub-
sequent update, the Secretary of Defense shall in-
clude a separate section focused on the defense ac-
quisition workforce, including both military and civil-
ian personnel. 
(2) FUNDING.—The section shall contain— 
(A) an identification of the funding pro-
grammed for acquisition workforce training in 
the future years defense program;
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(B) a determination by the Secretary of 
whether such funding is adequate; and 
(C) an evaluation of how such funding can 
be protected from being diverted to other uses. 
(3) AREAS OF NEED.—The section also shall 
identify any areas of need in the acquisition work-
force, including— 
(A) changes to the types of skills needed in 
the acquisition workforce; 
(B) incentives to retain in the acquisition 
workforce qualified, experienced acquisition 
workforce personnel; and 
(C) incentives for attracting new, high- 
quality personnel to the acquisition workforce. 
(c) STRATEGIC HUMAN CAPITAL PLAN DEFINED.— 
In this section, the term ‘‘strategic human capital plan’’ 
means the strategic human capital plan required under 
section 1122 of the National Defense Authorization Act 
for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 
3452; 10 U.S.C. prec. 1580 note). 
SEC. 803. GUIDANCE ON DEFENSE PROCUREMENTS MADE 
THROUGH CONTRACTS OF OTHER AGENCIES. 
(a) GUIDANCE.—The Under Secretary of Defense for 
Acquisition, Technology, and Logistics shall issue guid-
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ance on the use of interagency contracting by the Depart-
ment of Defense. 
(b) MATTERS COVERED.—The guidance shall in-
clude, at a minimum, the following provisions: 
(1) Items unique to the Department of Defense 
may not be acquired by interagency contracting. 
(2) Acquisition officials should make a good 
faith effort, including through the conduct of market 
research, if appropriate, to identify whether an item 
considered for interagency contracting is already 
being provided under a contract awarded by the De-
partment of Defense. 
(3) Acquisition officials shall ensure that, with 
respect to the outside agency involved in any pro-
curement through interagency contracting, any re-
quirements related to the procurement that are spe-
cific to the Department of Defense shall be identi-
fied and communicated to the agency, including rel-
evant requirements of the following: 
(A) The Federal Acquisition Regulation. 
(B) The Department of Defense Supple-
ment to the Federal Acquisition Regulation. 
(C) Appropriations laws. 
(D) Provisions in law or regulation that 
are unique to defense procurement and that
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apply to the specific contract under consider-
ation, but that may not be included under sub-
paragraph (A), (B), or (C). 
(c) DEFINITIONS.—In this section: 
(1) INTERAGENCY
CONTRACTING.—The term 
‘‘interagency contracting’’ means the procurement of 
goods or services (under section 1535 of title 31, 
United States Code) through a contract entered into 
by an agency outside the Department of Defense. 
(2) ACQUISITION OFFICIAL.—The term ‘‘acqui-
sition official’’ means— 
(A) in the case of a direct acquisition, the 
contracting officer for the acquisition; and 
(B) in the case of an assisted acquisition, 
the program manager coordinating the acquisi-
tion for the Department of Defense. 
(3) DIRECT
ACQUISITION.—The term ‘‘direct 
acquisition’’ means the type of interagency con-
tracting through which the Department of Defense 
orders an item or service from a government-wide 
acquisition contract maintained by an agency outside 
the Department. 
(4) ASSISTED
ACQUISITION.—The term ‘‘as-
sisted acquisition’’ means the type of interagency 
contracting through which an agency outside the De-
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partment of Defense awards a contract for the pro-
curement of goods or services. 
SEC. 804. PROHIBITION ON PROCUREMENT FROM BENE-
FICIARIES OF FOREIGN SUBSIDIES. 
(a) PROHIBITION.—The Secretary of Defense may 
not enter into a contract for the procurement of goods 
or services from any foreign person to which the govern-
ment of a foreign country that is a member of the World 
Trade Organization has provided a subsidy if— 
(1) the United States has requested consulta-
tions with that foreign country under the Agreement 
on Subsidies and Countervailing Measures on the 
basis that the subsidy is a prohibited subsidy under 
that Agreement; and 
(2) either— 
(A) the issue before the World Trade Or-
ganization has not been resolved; or 
(B) the World Trade Organization has 
ruled that the subsidy provided by the foreign 
country is a prohibited subsidy under the 
Agreement on Subsidies and Countervailing 
Measures. 
(b) JOINT VENTURES.—The prohibition under sub-
section (a) with respect to a foreign person also applies 
to any joint venture, cooperative organization, partner-
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ship, or contracting team of which that foreign person is 
a member. 
(c) SUBCONTRACTS AND TASK ORDERS.—The prohi-
bition under subsection (a) with respect to a contract also 
applies to any subcontracts at any tier entered into under 
the contract and any task orders at any tier issued under 
the contract. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘Agreement on Subsidies and 
Countervailing Measures’’ means the agreement de-
scribed in section 101(d)(12) of the Uruguay Round 
Agreements Act (19 U.S.C. 3501(d)(12)). 
(2) The term ‘‘foreign person’’ means— 
(A) an individual who is not a United 
States person or an alien lawfully admitted for 
permanent residence into the United States; or 
(B) a corporation, partnership, or other 
nongovernmental entity which is not a United 
States person. 
(3) The term ‘‘United States person’’ means— 
(A) a natural person who is a citizen of the 
United States or who owes permanent alle-
giance to the United States; and 
(B) a corporation or other legal entity 
which is organized under the laws of the United
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States, any State or territory thereof, or the 
District of Columbia, if natural persons de-
scribed in subparagraph (A) own, directly or in-
directly, more than 50 percent of the out-
standing capital stock or other beneficial inter-
est in such legal entity. 
(e) APPLICABILITY.— 
(1) PROGRAMS WITH MILESTONE B APPROVAL 
NOT
COVERED.—The prohibition under subsection 
(a) shall not apply to any contract under a major 
defense acquisition program that has received Mile-
stone B approval as of the date of the enactment of 
this Act. 
(2) DEFINITIONS.—In this subsection: 
(A) The term ‘‘major defense acquisition 
program’’ means a Department of Defense ac-
quisition program that is a major defense ac-
quisition program for purposes of section 2430 
of title 10, United States Code. 
(B) The term ‘‘Milestone B approval’’ has 
the meaning provided that term in section 
2366(e)(7) of such title.
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SEC. 805. PROHIBITION ON PROCUREMENT FROM COMPA-
NIES IN VIOLATION OF THE IRAN AND SYRIA 
NONPROLIFERATION ACT. 
(a) PROHIBITION.—Except as provided in subsection 
(c), funds appropriated or otherwise available to the De-
partment of Defense may not be used for the procurement 
of goods or services from a source subject to sanctions 
for violations of the Iran and Syria Nonproliferation Act 
(Public Law 106–178; 50 U.S.C. 1701 note) or from any 
source that is owned or controlled by a sanctioned entity. 
(b) CONTRACTS COVERED.—This section applies to 
prime contracts and subcontracts at any tier under such 
contracts. 
(c) EXCEPTION.— 
(1) IN
GENERAL.—Subsection (a) does not 
apply in any case in which the Secretary of Defense 
determines that there is a compelling reason to so-
licit an offer from, award a contract or subcontract 
to, or extend a contract or subcontract with a source 
described in that subsection. The exception in the 
preceding sentence may not be used if the same or 
reasonably equivalent products or services are avail-
able from a non-sanctioned source. 
(2) NOTICE
TO
CONGRESS.—The Secretary 
shall transmit to the Committees on Armed Services 
of the Senate and the House of Representatives a