I 
114TH CONGRESS 
1ST SESSION H. R. 1597 
To reform the acquisition system of the Department of Defense, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 25, 2015 
Mr. THORNBERRY (for himself and Mr. SMITH of Washington) introduced the 
following bill; which was referred to the Committee on Armed Services, 
and in addition to the Committees on Small Business, Science, Space, 
and Technology, and Oversight and Government Reform, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To reform the acquisition system of the Department of 
Defense, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Agile Acquisition to 
Retain Technological Edge Act’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
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Sec. 3. Sense of Congress on the desired tenets of the defense acquisition sys-
tem. 
TITLE I—WORKFORCE DEVELOPMENT AND RELATED MATTERS 
Sec. 101. Amendments to Department of Defense Acquisition Workforce Devel-
opment Fund. 
Sec. 102. Dual-track military professionals in operational and acquisition speci-
alities. 
Sec. 103. Provision of joint duty assignment credit for acquisition duty. 
Sec. 104. Requirement for acquisition skills assessment biennial strategic work-
force plan. 
Sec. 105. Mandatory requirement for training related to the conduct of market 
research. 
Sec. 106. Independent study of implementation of defense acquisition workforce 
improvement efforts. 
TITLE II—WEAPON SYSTEMS ACQUISITION AND RELATED 
MATTERS 
Sec. 201. Sense of Congress on the desired characteristics for the weapon sys-
tems acquisition system. 
Sec. 202. Revision to duties of the Deputy Assistant Secretary of Defense for 
Developmental Test and Evaluation and the Deputy Assistant 
Secretary of Defense for Systems Engineering. 
Sec. 203. Acquisition strategy required for each major defense acquisition pro-
gram and major system. 
Sec. 204. Revision to requirements relating to risk management in development 
of major defense acquisition programs and major systems. 
Sec. 205. Modification to requirements relating to determination of contract 
type for major defense acquisition programs and major sys-
tems. 
Sec. 206. Required determination before Milestone A approval or initiation of 
major defense acquisition programs. 
Sec. 207. Required certification and determination before Milestone B approval 
of major defense acquisition programs. 
TITLE III—SERVICES CONTRACTING AND RELATED MATTERS 
Sec. 301. Examination and guidance relating to oversight and approval of serv-
ices contracts. 
TITLE IV—INFORMATION TECHNOLOGY ACQUISITIONS AND 
RELATED MATTERS 
Sec. 401. Streamlining of requirements relating to defense business systems. 
TITLE V—INDUSTRIAL BASE MATTERS 
Sec. 501. Codification and amendment of Mentor-Protege Program. 
Sec. 502. Amendments to data quality improvement plan. 
Sec. 503. Notice of contract consolidation for acquisition strategies. 
Sec. 504. Clarification of requirements related to small business contracts for 
services. 
Sec. 505. Review of Government access to intellectual property rights of private 
sector firms. 
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Sec. 506. Modifications to the Small Business Innovative Research Program 
and the Small Business Technology Transfer Program. 
Sec. 507. Extension of defense research and development rapid innovation pro-
gram. 
TITLE VI—REPEAL OR REVISION OF REPORTING REQUIREMENTS 
Sec. 601. Repeal of certain reporting requirements. 
TITLE VII—PLANNING, BUDGETING, CONTRACTING, OVERSIGHT, 
AND OTHER RELATED MATTERS 
Sec. 701. Additional responsibility for Director of Operational Test and Evalua-
tion. 
Sec. 702. Report on linking and streamlining requirements, acquisition, and 
budget processes within Armed Forces. 
Sec. 703. Required review of acquisition-related functions of the Chiefs of Staff 
of the Armed Forces. 
Sec. 704. FAR Council membership for Administrator of Small Business Ad-
ministration. 
Sec. 705. Independent study of matters related to bid protests. 
Sec. 706. Procurement of commercial items. 
Sec. 707. Amendment relating to multiyear contract authority for acquisition of 
property. 
Sec. 708. Use of recent prices paid by the Government in the determination of 
price reasonableness. 
Sec. 709. Codification of other transaction authority for certain prototype 
projects. 
Sec. 710. Amendments to certain acquisition thresholds. 
Sec. 711. Revision of method of rounding when making inflation adjustment of 
acquisition-related dollar thresholds. 
Sec. 712. Repeal of requirement for stand-alone manpower estimates for major 
defense acquisition programs. 
SEC. 3. SENSE OF CONGRESS ON THE DESIRED TENETS OF 
THE DEFENSE ACQUISITION SYSTEM. 
(a) FINDINGS.—Congress finds the following: 
(1) The Committee on Armed Services of the 
House of Representatives held a series of hearings 
in 2013, 2014, and 2015 gathering testimony from 
key acquisition leaders and experts. It is clear that 
the acquisition reform efforts of the last 50 years 
continue to founder because they fail to address the 
motivational and environmental factors in which 
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they must be implemented. The acquisition system, 
though frustrating to all, is in one sense in equi-
librium. The acquisition system provides enough 
benefits to proponents and opponents to continue, 
with only minor changes, despite its shortcomings. 
(2) The Department of Defense still has too 
many defense acquisitions and services chasing too 
few dollars. Consequently, there remains a vast dif-
ference between the budgeting plans of the Depart-
ment and the reality of the cost of its systems or the 
services it acquires. To keep programs alive, the De-
partment develops and Congress accepts fragile ac-
quisition strategies that downplay technical issues 
and assume only successful outcomes from high-risk 
efforts. As a result, the Department often ends up 
with too few weapons, with performance that falls 
short, that are difficult and costly to maintain, deliv-
ered late at too high a cost. We have limited insight 
into the services acquired or what services need to 
be acquired in the future. Furthermore, the conven-
tional acquisition process is not agile enough for to-
day’s demands. Finally, the Department of Defense 
continues to struggle with financial management and 
auditability, affecting its ability to control costs, en-
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sure basic accountability, anticipate future costs and 
claims on the budget, and measure performance. 
(3) Too often today, all stakeholders in the De-
partment of Defense, Congress, and industry, accept 
that— 
(A) for the acquisition process, success is 
defined as maximizing technical performance or 
protecting organizational interests, without re-
gard to funding disruptions and delivery delays 
of 
needed 
capability 
or 
services 
to 
the 
warfighter; and 
(B) the acquisition process is— 
(i) reactive, meaning issues are ad-
dressed late and at great cost only after 
problems are realized; 
(ii) plodding, meaning the bureau-
cratic processes are sclerotic and cum-
bersome; 
(iii) opaque, meaning that limiting in-
formation is necessary to protect pro-
grams; and 
(iv) traditional, meaning that cus-
tomary approaches and suppliers are pre-
ferred over perceived risk of new or unique 
concepts and vendors. 
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(4) Today, the United States is at a cross- 
roads, and if changes to the acquisition system are 
not made soon, the trend of fewer and more costly 
systems and services that fall short of the needs of 
the Armed Forces will continue. Congress, the De-
partment of Defense, contractors, and the American 
people all have a stake in making positive changes. 
Each plays a role in contributing to the current sys-
tem. Each gains benefits from that system, but each 
is frustrated by it as well. 
(5) The acquisition improvement effort of the 
Committee on Armed Services of the House of Rep-
resentatives proposes a different approach from pre-
vious efforts by seeking to improve the environment 
(i.e., statutes, regulations, processes, and culture) 
driving acquisition decisions in the Department of 
Defense, industry, and Congress. The Committee 
has solicited input from industry and the Depart-
ment of Defense, as well as others in Congress, and 
will continue to do so. The Committee recognizes 
that there are no ‘‘silver bullets’’ that can imme-
diately fix the current acquisition system in a holis-
tic and long-standing manner. Therefore, the reform 
effort will be an ongoing and iterative process that 
will result in legislation not only this year, but will 
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(A) all decisionmakers should be given use-
ful, relevant, credible, and reliable information 
when making commitments; 
(B) Government and industry communica-
tion should be clear and open; and 
(C) the Department of Defense should 
produce auditable financial management state-
ments. 
(5) 
INNOVATIVE.—The 
acquisition 
system 
should be innovative, meaning that barriers should 
be removed that preclude companies from under-
taking defense business or officials from proposing 
new approaches. 
TITLE I—WORKFORCE DEVELOP-
MENT AND RELATED MAT-
TERS 
SEC. 101. AMENDMENTS TO DEPARTMENT OF DEFENSE AC-
QUISITION 
WORKFORCE 
DEVELOPMENT 
FUND. 
(a) PERMANENT EXTENSION
OF FUND.—Section 
1705(d)(2) of title 10, United States Code, is amended— 
(1) in subparagraph (C), by striking ‘‘of an 
amount as follows:’’ and all that follows through the 
end, and inserting ‘‘of an amount of not less than 
$500,000,000.’’; and 
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(2) in subparagraph (D), by striking ‘‘an 
amount that is less than’’ and all that follows 
through the end, and inserting ‘‘an amount that is 
less than $400,000,000’’. 
(b) PERMANENT EXTENSION OF EXPEDITED HIRING 
AUTHORITY.—Section 1705(g) of such title is amended— 
(1) by striking paragraph (2); 
(2) by striking ‘‘AUTHORITY.—’’ and all that 
follows through ‘‘For purposes of’’ in paragraph (1) 
and inserting ‘‘AUTHORITY.—For purposes of’’; 
(3) by striking ‘‘(A)’’ and inserting ‘‘(1)’’; and 
(4) by striking ‘‘(B)’’ and inserting ‘‘(2)’’. 
(c) CLARIFICATION
OF ACQUISITION WORKFORCE 
COVERED.—Section 1705(g) of such title, as amended by 
subsection (c), is further amended by striking ‘‘acquisition 
workforce positions’’ and inserting ‘‘of positions in the ac-
quisition workforce, as defined in subsection (h),’’. 
SEC. 102. DUAL-TRACK MILITARY PROFESSIONALS IN 
OPERATIONAL AND ACQUISITION SPECIALI-
TIES. 
(a) REQUIREMENT FOR SERVICE CHIEF INVOLVE-
MENT.—Section 1722a(a) of title 10, United States Code, 
is amended by inserting after ‘‘military department)’’ the 
following: ‘‘, in collaboration with the Chief of Staff of the 
Army, the Chief of Naval Operations, the Chief of Staff 
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of the Air Force, and the Commandant of the Marine 
Corps (with respect to the Army, Navy, Air Force, and 
Marine Corps, respectively),’’. 
(b) DUAL-TRACK CAREER PATH.—Section 1722a(b) 
of such title is amended— 
(1) by redesignating paragraphs (2) and (3) as 
paragraphs (3) and (4), respectively; 
(2) in paragraph (1), by inserting ‘‘single- 
track’’ before ‘‘career path’’; and 
(3) by inserting after paragraph (1) the fol-
lowing new paragraph (2): 
‘‘(2) A dual-track career path that attracts the 
highest quality officers and enlisted personnel and 
allows them to gain experience in and receive credit 
for a primary career in combat arms and a func-
tional secondary career in the acquisition field in 
order to more closely align the military operational, 
requirements, and acquisition workforces of each 
armed force.’’. 
SEC. 103. PROVISION OF JOINT DUTY ASSIGNMENT CREDIT 
FOR ACQUISITION DUTY. 
Section 668(a)(1) of title 10, United States Code, is 
amended— 
(1) by striking ‘‘or’’ at the end of subparagraph 
(D); 
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(2) by striking the period at the end of sub-
paragraph (E) and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(F) acquisition matters addressed by military 
personnel and covered under chapter 87 of this 
title.’’. 
SEC. 104. REQUIREMENT FOR ACQUISITION SKILLS ASSESS-
MENT 
BIENNIAL 
STRATEGIC 
WORKFORCE 
PLAN. 
(a) REQUIREMENT.—Section 115b(b)(1) of title 10, 
United States Code, is amended— 
(1) by redesignating subparagraph (D) as sub-
paragraph (E); 
(2) in subparagraph (C), by striking ‘‘and’’ at 
the end; and 
(3) by inserting after subparagraph (C) the fol-
lowing: 
‘‘(D) new or expanded critical skills and 
competencies needed by the existing civilian em-
ployee workforce of the Department to address 
new acquisition process requirements estab-
lished by law or policy during the four years 
preceding the year of submission of the plan; 
and’’. 
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(b) CONFORMING AMENDMENTS.—Section 115b of 
such title is further amended— 
(1) in subparagraph (E) of subsection (b)(1), as 
redesignated by subsection (a)(1), by striking ‘‘(C)’’ 
and inserting ‘‘(D)’’; 
(2) in paragraph (2) of subsection (b), in the 
matter preceding subparagraph (A), by striking 
‘‘(1)(D)’’ and inserting ‘‘(1)(E)’’; and 
(3) in paragraph (2)(A) of each of subsections 
(c), (d), and (e), by striking ‘‘through (D)’’ and in-
serting ‘‘through (E)’’. 
SEC. 105. MANDATORY REQUIREMENT FOR TRAINING RE-
LATED TO THE CONDUCT OF MARKET RE-
SEARCH. 
(a) MANDATORY MARKET RESEARCH TRAINING.— 
Section 2377 of title 10, United States Code, is amended 
by adding at the end the following new subsection: 
‘‘(d) MARKET RESEARCH TRAINING REQUIRED.— 
The Secretary of Defense shall provide mandatory train-
ing for members of the armed forces and employees of the 
Department of Defense responsible for the conduct of 
market research required under subsection (c). Such man-
datory training shall, at a minimum— 
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‘‘(1) provide comprehensive information on the 
subject of market research and the function of mar-
ket research in the acquisition of commercial items; 
‘‘(2) teach best practices for conducting and 
documenting market research; and 
‘‘(3) provide methodologies for establishing 
standard processes and reports for collecting and 
sharing market research across the Department.’’. 
(b) INCORPORATION INTO MANAGEMENT CERTIFI-
CATION TRAINING MANDATE.—The Chairman of the 
Joint Chiefs of Staff shall ensure that the requirements 
of section 2377(d) of title 10, United States Code, as 
added by subsection (a), are incorporated into the require-
ments management certification training mandate of the 
Joint Capabilities Integration Development System. 
SEC. 106. INDEPENDENT STUDY OF IMPLEMENTATION OF 
DEFENSE 
ACQUISITION 
WORKFORCE 
IM-
PROVEMENT EFFORTS. 
(a) REQUIREMENT FOR STUDY.—Not later than 30 
days after the date of the enactment of this Act, the Sec-
retary of Defense shall enter into a contract with an inde-
pendent research entity described in subsection (b) to 
carry out a comprehensive study of the strategic planning 
of the Department of Defense related to the defense acqui-
sition workforce. The study shall provide a comprehensive 
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examination of the Department’s efforts to recruit, de-
velop, and retain the acquisition workforce with a specific 
review of the following: 
(1) The implementation of the Defense Acquisi-
tion Workforce Improvement Act (including chapter 
87 of title 10, United States Code). 
(2) The application of the Department of De-
fense Acquisition Workforce Development Fund (as 
established under section 1705 of title 10, United 
States Code). 
(3) The effectiveness of professional military 
education programs, including fellowships and ex-
changes with industry. 
(b) INDEPENDENT RESEARCH ENTITY.—The entity 
described in this subsection is an independent research en-
tity that is a not-for-profit entity or a federally funded 
research and development center with appropriate exper-
tise and analytical capability. 
(c) REPORTS.— 
(1) TO SECRETARY.—Not later than one year 
after the date of the enactment of this Act, the inde-
pendent research entity shall provide to the Sec-
retary a report containing— 
(A) the results of the study required by 
subsection (a); and 
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(B) such recommendations to improve the 
acquisition workforce as the independent re-
search entity considers to be appropriate. 
(2) TO
CONGRESS.—Not later than 30 days 
after receipt of the report under paragraph (1), the 
Secretary of Defense shall submit such report, to-
gether with any additional views or recommendations 
of the Secretary, to the congressional defense com-
mittees. 
TITLE II—WEAPON SYSTEMS AC-
QUISITION 
AND 
RELATED 
MATTERS 
SEC. 201. SENSE OF CONGRESS ON THE DESIRED CHARAC-
TERISTICS FOR THE WEAPON SYSTEMS AC-
QUISITION SYSTEM. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) CURRENT SITUATION.—Despite significant 
and repeated attempts at acquisition reform, the De-
partment of Defense still experiences case after case 
of expensive weapon system acquisition failures. The 
Department of Defense has a track record of too 
many cancellations, schedule slippages, cost over- 
runs, and failures to deliver timely solutions to the 
requirements of the Armed Forces. This situation is 
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unacceptable. For example, according to the Final 
Report of the 2010 Army Acquisition Review, be-
tween 1996 and 2010, the Army expended approxi-
mately $1 billion to $3 billion annually on two dozen 
programs that were eventually cancelled. No military 
service and no type of weapon acquisition has been 
immune. 
(2) PROBLEMS
IN
ALL
PHASES
OF
ACQUISI-
TIONS.— 
(A) Despite detailed weapon acquisition 
processes and procedures, there is only limited 
discipline in starting programs. Many programs 
begin without a solid foundation. They have too 
many requirements deemed ‘‘critical’’, which 
are driven by too many organizations and indi-
viduals. Approved requirements are often set 
with only a limited understanding of the tech-
nical feasibility of achieving them. The resulting 
compromises of good program management and 
engineering judgment that allow the programs 
to proceed are the ‘‘spackle’’ of the acquisition 
system that covers up the risks and enables the 
system to operate. 
(B) As these weapon systems proceed into 
engineering and manufacturing development, 
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they often encounter development problems 
leading to cost growth, schedule delay, and per-
formance reductions. Industry and Government 
officials frequently respond by taking additional 
development risks to resolve basic performance 
issues by reducing the time to analyze and as-
sess development results, overlapping key devel-
opment efforts, and reducing testing. The De-
partment of Defense and Congress disrupt the 
planned funding of stable programs to find re-
sources for troubled programs or to fund 
across-the-board spending cuts. Funding insta-
bility is the inevitable price that programs pay 
for survival because funding disruptions actu-
ally keep more programs alive. 
(C) Finally, these weapons are often 
rushed into production only to encounter pro-
duction problems, and are fielded with many 
unknowns or deficiencies leading to significantly 
reduced quantities and force structure reduc-
tions. The warfighter faces the challenge of op-
erating weapons with poor reliability, high 
maintenance demands, reduced performance, 
and many capability shortfalls. 
(b) SENSE OF CONGRESS.— 
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(1) IN GENERAL.—It is the sense of Congress 
that, in accordance with the tenets described in sec-
tion 3, to improve weapon system acquisitions, the 
Department of Defense, Congress, and industry 
should develop an acquisition system characterized 
by highly disciplined program initiation coupled with 
agile program execution and balanced oversight, as 
described in paragraphs (2), (3), and (4). 
(2) HIGHLY
DISCIPLINED
PROGRAM
INITI-
ATION.—An acquisition system characterized by 
highly disciplined program initiation means that pro-
grams do not begin engineering development until 
firm requirements are matched to a flexible acquisi-
tion strategy structured to develop militarily useful 
capability that can be delivered in a relevant period 
of time with available technologies, funding, and 
management capacity. Such a highly disciplined pro-
gram initiation includes— 
(A) a workforce with smart requirements 
setters and expert buyers, with the knowledge, 
skills, and experience to successfully plan for 
and execute highly complex acquisitions; 
(B) requirements that are well-defined, 
technically feasible, and affordable; 
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(C) acquisition strategies that are designed 
to minimize time to market of militarily useful 
capability, with the program concerned being 
structured so that— 
(i) lower-risk, technically mature ca-
pabilities are matched to delivering capa-
bility to the warfighter in the near term, 
while remaining requirements are aligned 
and resources are programmed to support 
integration into later increments to meet 
the requirements of the Armed Forces; 
(ii) capabilities are approved for an 
increment only when their developmental 
risks have been appropriately reduced; and 
(iii) increments are planned to com-
plete engineering and manufacturing devel-
opment in a reasonable period of time; 
(D) a science and technology development 
enterprise that is responsive to the acquisition 
process before engineering and manufacturing 
development begins, and sufficiently resourced 
to reduce risks and enable programs to make 
smart decisions without losing critical funds; 
and 
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(E) redtape reduction in order to free up 
program and Department officials to focus on 
their mission of defining an executable program 
and understanding and addressing risks. 
(3) AGILE PROGRAM EXECUTION.—An acquisi-
tion system characterized by agile program execution 
means a system in which acquisition speed and flexi-
bility to make trade-offs are balanced with the need 
to achieve desired technical performance. Such agile 
program execution includes— 
(A) program managers and program offi-
cials who are expert buyers and negotiators who 
anticipate problems, negotiate solutions, and 
are empowered to manage; 
(B) a preference for fixed price develop-
ment, with program initiation laying the foun-
dation in which fixed price contracting is the 
appropriate contract type for product develop-
ment; 
(C) program managers who avoid increas-
ing program risk by resisting the addition of 
new requirements or the reduction of develop-
mental activities; 
(D) empowering program managers and 
senior decisionmakers to make decisions easily 
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in order to move forward with capabilities that 
mature quickly, cancel those that encounter 
greater difficulties than expected, and trade-off 
or reduce requirements to maintain cost and 
schedule; 
(E) enabling program managers to focus 
on overcoming execution challenges and deliv-
ering success rather than concentrating on com-
pliance with reporting, certifications, and other 
redtape; and 
(F) senior decisionmakers who have knowl-
edge of demonstrated performance as programs 
proceed through development, with robust de-
velopmental testing occurring before committing 
to production for operational use as a basis for 
decisionmaking. 
(4) BALANCED
OVERSIGHT.—An acquisition 
system characterized by balanced oversight means 
that the focus is on ensuring discipline initiating 
programs and that appropriate adjustments are 
made during development, so that programs have 
the best chance to succeed. Such balanced oversight 
includes— 
(A) involvement by decisionmakers early to 
ensure that an understanding of trade-offs, 
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risks, and needs are considered, resourced, and 
validated, and that agreement is reached be-
tween the executive and legislative branches; 
(B) acceptance by decisionmakers that 
complex weapon system developments are inher-
ently risky and require expertise and flexibility 
to manage effectively; 
(C) conscious decisions by decisionmakers 
regarding where to accept risk, while ensuring 
that risk mitigation plans are resourced (with 
time, funding, alternatives, and competent gov-
ernment and contractor officials); 
(D) measuring and monitoring by decision-
makers of the right factors, such as technology 
maturation progress and systems engineering 
during risk reduction, development cost growth 
during engineering and manufacturing develop-
ment, and reliability growth during system 
demonstration; 
(E) work by Congress and the Department 
of Defense, once a program has begun, to re-
solve issues by considering trade-offs among 
cost, schedule, and performance necessary to 
best support the warfighter; and 
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(F) congressional understanding of risks 
and efforts to mitigate such risks even if they 
are through non-traditional means or other 
technological advances. 
SEC. 202. REVISION TO DUTIES OF THE DEPUTY ASSISTANT 
SECRETARY OF DEFENSE FOR DEVELOP-
MENTAL TEST AND EVALUATION AND THE 
DEPUTY ASSISTANT SECRETARY OF DEFENSE 
FOR SYSTEMS ENGINEERING. 
Section 139b of title 10, United States Code, is 
amended— 
(1) in subsection (a)(5)— 
(A) in subparagraph (B), by striking ‘‘re-
view and approve or disapprove’’ and inserting 
‘‘advise in writing the milestone decision au-
thority regarding review and approval of’’; and 
(B) in subparagraph (C), by inserting ‘‘in 
order to advise relevant technical authorities for 
such programs on the incorporation of best 
practices for developmental test from across the 
Department’’ after ‘‘programs’’; and 
(2) in subsection (b)(5)— 
(A) in subparagraph (B), by striking ‘‘re-
view and approve’’ and inserting ‘‘advise in 
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writing the milestone decision authority regard-
ing review and approval of’’; and 
(B) in subparagraph (C), by inserting ‘‘in 
order to advise relevant technical authorities for 
such programs on the incorporation of best 
practices for systems engineering from across 
the Department’’ after ‘‘programs’’. 
SEC. 203. ACQUISITION STRATEGY REQUIRED FOR EACH 
MAJOR DEFENSE ACQUISITION PROGRAM 
AND MAJOR SYSTEM. 
(a) CONSOLIDATION OF REQUIREMENTS RELATING 
TO ACQUISITION STRATEGY.— 
(1) NEW TITLE 10 SECTION.—Chapter 144 of 
title 10, United States Code, is amended by insert-
ing after section 2431 the following new section: 
‘‘§ 2431a. Acquisition strategy 
‘‘(a) ACQUISITION
STRATEGY
REQUIRED.—There 
shall be an acquisition strategy for each major defense ac-
quisition program and each major system approved by a 
Milestone Decision Authority. 
‘‘(b) RESPONSIBLE OFFICIAL.—For each acquisition 
strategy required by subsection (a), the Under Secretary 
of Defense for Acquisition, Technology, and Logistics is 
responsible for issuing and maintaining the requirements 
for— 
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‘‘(1) the content of the strategy; and 
‘‘(2) the review and approval process for the 
strategy. 
‘‘(c) CONSIDERATIONS.—(1) In issuing requirements 
for the content of an acquisition strategy for a major de-
fense acquisition program or major system, the Under 
Secretary shall ensure that— 
‘‘(A) the strategy clearly describes the proposed 
business and technical management approach for the 
program or system, in sufficient detail to allow the 
Milestone Decision Authority to assess the viability 
of the proposed approach; 
‘‘(B) the strategy contains a clear explanation 
of how the strategy is designed to be implemented 
with available resources, such as time, funding, and 
management capacity; and 
‘‘(C) the strategy considers the items listed in 
paragraph (2). 
‘‘(2) Each strategy shall, at a minimum, consider the 
following: 
‘‘(A) An approach that delivers required capa-
bility in increments, each depending on available ma-
ture technology, and that recognizes up front the 
need for future capability improvements. 
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‘‘(B) Acquisition approach, including industrial 
base considerations in accordance with section 2440 
of this title. 
‘‘(C) Risk management, including such methods 
as competitive prototyping at the system, subsystem, 
or component level, in accordance with section 
2431b of this title. 
‘‘(D) Business strategy, including measures to 
ensure competition at the system and subsystem 
level throughout the life-cycle of the program or sys-
tem in accordance with section 2337 of this title. 
‘‘(E) Contracting strategy, including— 
‘‘(i) contract type and how the type se-
lected relates to level of program risk in each 
acquisition phase; 
‘‘(ii) how the plans for the program or sys-
tem to reduce risk enable the use of fixed-price 
elements in subsequent contracts and the tim-
ing of the use of those fixed price elements; 
‘‘(iii) market research; and 
‘‘(iv) consideration of small business par-
ticipation. 
‘‘(F) Intellectual property strategy in accord-
ance with section 2320 of this title. 
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‘‘(G) International involvement, including for-
eign military sales and cooperative opportunities, in 
accordance with section 2350a of this title. 
‘‘(H) Multi-year procurement in accordance 
with section 2306b of this title. 
‘‘(I) Integration of current intelligence assess-
ments into the acquisition process. 
‘‘(d) REVIEW.—(1) Subject to the authority, direc-
tion, and control of the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, the Milestone De-
cision Authority shall review and approve, as appropriate, 
the acquisition strategy for a major defense acquisition 
program or major system at each of the following times: 
‘‘(A) Milestone A approval. 
‘‘(B) The decision to release the request 
for proposals for development of the program or 
system. 
‘‘(C) Milestone B approval. 
‘‘(D) Each subsequent milestone. 
‘‘(E) Review of any decision to enter into 
full-rate production. 
‘‘(F) When there has been— 
‘‘(i) a significant change to the cost of 
the program or system; 
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‘‘(ii) a critical change to the cost of 
the program or system; 
‘‘(iii) a significant change to the 
schedule of the program or system; or 
‘‘(iv) a significant change to the per-
formance of the program or system. 
‘‘(G) Any other time considered relevant by 
the Milestone Decision Authority. 
‘‘(2) If the Milestone Decision Authority revises an 
acquisition strategy for a program or system, the Mile-
stone Decision Authority shall provide notice of the revi-
sion to the congressional defense committees. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘major defense acquisition pro-
gram’ has the meaning provided in section 2430 of 
this title. 
‘‘(2) The term ‘major system’ has the meaning 
provided in section 2302(5) of this title. 
‘‘(3) The term ‘Milestone A approval’ means a 
decision to enter into technology maturation and 
risk reduction pursuant to guidance prescribed by 
the Secretary of Defense for the management of De-
partment of Defense acquisition programs. 
‘‘(4) The term ‘Milestone B approval’ has the 
meaning provided in section 2366(e)(7) of this title. 
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‘‘(5) The term ‘Milestone Decision Authority’, 
with respect to a major defense acquisition program 
or major system, means the official within the De-
partment of Defense designated with the overall re-
sponsibility and authority for acquisition decisions 
for the program or system, including authority to 
approve entry of the program or system into the 
next phase of the acquisition process. 
‘‘(6) The term ‘management capacity’, with re-
spect to a major defense acquisition program or 
major system, means the capacity to manage the 
program or system through the use of highly quali-
fied organizations and personnel with appropriate 
experience, knowledge, and skills. 
‘‘(7) The term ‘significant change to the cost’, 
with respect to a major defense acquisition program 
or major system, means a significant cost growth 
threshold, as that term is defined in section 
2433(a)(4) of this title. 
‘‘(8) The term ‘critical change to the cost’, with 
respect to a major defense acquisition program or 
major system, means a critical cost growth thresh-
old, as that term is defined in section 2433(a)(5) of 
this title. 
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‘‘(9) The term ‘significant change to the sched-
ule’, with respect to a major defense acquisition pro-
gram or major system, means any schedule delay 
greater than six months in a reported event. 
‘‘(f) SUBMISSION
TO
CONGRESSIONAL
COMMIT-
TEES.—Upon request by the chairman or ranking member 
of the Committee on Armed Services of the Senate or the 
House of Representatives, the Secretary of Defense shall 
submit to the committee the most recently approved acqui-
sition strategy for a major defense acquisition program or 
major system. The strategy shall be submitted in unclassi-
fied form but may include a classified annex.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 2431 
the following new item: 
‘‘2431a. Acquisition strategy.’’. 
(b) ADDITIONAL AMENDMENTS.— 
(1) Section 2350a(e) of such title is amended— 
(A) in the subsection heading, by striking 
‘‘DOCUMENT’’; 
(B) in paragraph (1), by striking ‘‘the 
Under Secretary of Defense for’’ and all that 
follows through ‘‘of the Board’’ and inserting 
‘‘opportunities for such cooperative research 
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and development shall be addressed in the ac-
quisition strategy for the project’’; and 
(C) in paragraph (2)— 
(i) in the matter preceding subpara-
graph (A)— 
(I) by striking ‘‘document’’ and 
inserting ‘‘discussion’’; and 
(II) by striking ‘‘include’’ and in-
serting ‘‘consider’’; 
(ii) in subparagraph (A), by striking 
‘‘A statement indicating whether’’ and in-
serting ‘‘Whether’’; 
(iii) in subparagraph (B)— 
(I) by striking ‘‘by the Under 
Secretary of Defense for Acquisition, 
Technology, and Logistics’’; and 
(II) by striking ‘‘of the United 
States under consideration by the De-
partment of Defense’’; and 
(iv) in subparagraph (D), by striking 
‘‘The recommendation of the Under Sec-
retary’’ and inserting ‘‘A recommendation 
to the Milestone Decision Authority’’. 
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(2) Section 803 of the Bob Stump National De-
fense Authorization Act for Fiscal Year 2003 (Pub-
lic Law 107–314; 10 U.S.C. 2430 note) is repealed. 
SEC. 204. REVISION TO REQUIREMENTS RELATING TO RISK 
MANAGEMENT IN DEVELOPMENT OF MAJOR 
DEFENSE 
ACQUISITION 
PROGRAMS 
AND 
MAJOR SYSTEMS. 
(a) RISK MANAGEMENT AND MITIGATION REQUIRE-
MENTS.— 
(1) IN
GENERAL.—Chapter 144 of title 10, 
United States Code, is amended by inserting after 
section 2431a (as added by section 203) the fol-
lowing new section: 
‘‘§ 2431b. Risk management and mitigation in major 
defense acquisition programs and major 
systems 
‘‘(a) REQUIREMENT.—(1) There shall be a risk man-
agement and mitigation strategy for each major defense 
acquisition program or major system. 
‘‘(2) The Secretary of Defense shall ensure that the 
initial acquisition strategy (required under section 2431a 
of this title) approved by the Milestone Decision Authority 
and any subsequent revisions include the following: 
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‘‘(A) A comprehensive strategy for managing 
and mitigating risk (including technical, cost, and 
schedule risk) during each of the following periods: 
‘‘(i) The period preceding engineering 
manufacturing development, or its equivalent. 
‘‘(ii) The period preceding initial produc-
tion. 
‘‘(iii) The period preceding full-rate pro-
duction. 
‘‘(B) An identification of the major sources of 
risk in each of the periods listed in subparagraph 
(A). 
‘‘(3) In the case of a program or system with separate 
increments of capabilities that require Milestone Decision 
Authority approval to begin or proceed, paragraphs (1) 
and (2) shall apply to each increment. 
‘‘(b) STRATEGY
TO
MANAGE
AND
MITIGATE 
RISKS.—(1) The comprehensive strategy to manage and 
mitigate risk included in the acquisition strategy for pur-
poses of subsection (a)(2)(A) shall identify each individual 
risk and the risk management and mitigation activities to 
address each risk. For the mitigation activities identified, 
the strategy shall note whether they require cost and 
schedule margins and need to be included in funding re-
quests. 
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‘‘(2) The comprehensive strategy shall include the 
role and extent of the following: 
‘‘(A) Prototyping (including prototyping at the 
system, subsystem, or component level and competi-
tive prototyping, where appropriate) and, if proto-
typing at either the system, subsystem, or compo-
nent level is not used, an explanation of why it is 
not appropriate. 
‘‘(B) Modeling and simulation, the areas that 
modeling and simulation will assess, and identifica-
tion of the need for development of any new mod-
eling and simulation tools in order to support the 
comprehensive strategy. 
‘‘(C) Technology demonstrations and decision 
points for disciplined transition of planned tech-
nologies into programs or the selection of alternative 
technologies. 
‘‘(D) Multiple design approaches. 
‘‘(E) Alternative designs, including any designs 
that meet requirements but do so with reduced per-
formance. 
‘‘(F) Phasing of program activities or related 
technology development efforts in order to address 
high risk areas as early as feasible. 
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‘‘(c) DEFINITIONS.—In this section, the terms ‘major 
defense acquisition program’ and ‘major system’ have the 
meanings provided in section 2431a of this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 2431a, 
as so added, the following new item: 
‘‘2431b. Risk management and mitigation in major defense acquisition programs 
and major systems.’’. 
(b) REPEAL OF SUPERSEDED PROVISION.—Section 
203 of the Weapon Systems Acquisition Reform Act of 
2009 (10 U.S.C. 2430 note) is repealed. 
SEC. 205. MODIFICATION TO REQUIREMENTS RELATING TO 
DETERMINATION OF CONTRACT TYPE FOR 
MAJOR DEFENSE ACQUISITION PROGRAMS 
AND MAJOR SYSTEMS. 
(a) DETERMINATION OF CONTRACT TYPE.—Section 
2306 of title 10, United States Code, is amended by add-
ing at the end the following new subsection: 
‘‘(i) REQUIRED ELEMENTS OF GUIDANCE RELATING 
TO CONTRACT TYPE.—(1) The Secretary of Defense shall 
ensure that the guidance of the Department of Defense 
relating to major defense acquisition programs, major sys-
tems, and major automated information systems includes 
a requirement that the acquisition strategy required under 
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section 2431a of this title for such a program or system 
includes— 
‘‘(A) a separate identification of the contract 
type for each acquisition phase of the program or 
system; and 
‘‘(B) a justification of the contract type identi-
fied. 
‘‘(2) The contract type identified in accordance with 
paragraph (1)(A) may be— 
‘‘(A) a fixed-price type contract (including a 
fixed-price incentive contract); or 
‘‘(B) a cost-type contract (including a cost-plus- 
incentive-fee contract). 
‘‘(3) The guidance referred to in paragraph (1) shall 
require that the justification for the contract type selected 
explain— 
‘‘(A) how the level of program risk in each ac-
quisition phase relates to the contract type selected; 
‘‘(B) how the use of incentives (especially cost 
incentives) in the contract, if any, supports the pro-
gram or system objectives during each acquisition 
phase; and 
‘‘(C) how the plans for the program or system 
to reduce risk enable the use of fixed-price elements 
in subsequent contracts. 
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‘‘(4) The guidance shall also specify that the use of 
contracts with target costs, target profits or fees, and 
profit or fee adjustment formulas can be an appropriate 
contract type.’’. 
(b) REPEAL.—Section 818 of the John Warner Na-
tional Defense Authorization Act for Fiscal Year 2007 
(Public Law 109–364; 10 U.S.C. 2306 note) is amended 
by striking subsections (b), (c), (d), and (e). 
SEC. 206. REQUIRED DETERMINATION BEFORE MILESTONE 
A APPROVAL OR INITIATION OF MAJOR DE-
FENSE ACQUISITION PROGRAMS. 
(a) DETERMINATION RATHER THAN CERTIFICATION 
REQUIRED.—Subsection (a) of section 2366a of title 10, 
United States Code, is amended— 
(1) in the subsection heading, by striking ‘‘CER-
TIFICATION’’ and inserting ‘‘WRITTEN DETERMINA-
TION REQUIRED’’; and 
(2) in the matter preceding paragraph (1), by 
striking ‘‘certifies’’ and inserting ‘‘determines, in 
writing,’’. 
(b) SUBMISSION OF WRITTEN DETERMINATION TO 
CONGRESS.—Subsection (b) of such section is amended to 
read as follows: 
‘‘(b) SUBMISSION TO CONGRESS.—At the request of 
any of the congressional defense committees, the Secretary 
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of Defense shall submit to the committee an explanation 
of the basis for a determination made under subsection 
(a) with respect to a major defense acquisition program, 
together with a copy of the written determination. The ex-
planation shall be submitted in unclassified form, but may 
include a classified annex.’’. 
(c) REPEAL OF UNUSED DEFINITIONS.—Subsection 
(c) of such section is amended— 
(1) by striking paragraphs (2) and (4); and 
(2) by redesignating paragraphs (3), (5), (6), 
and (7) as paragraphs (2), (3), (4), and (5), respec-
tively. 
(d) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of section 
2366a of title 10, United States Code, is amended 
to read as follows: 
‘‘§ 2366a. Major defense acquisition programs: deter-
mination required before Milestone A ap-
proval’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 139 of such title is 
amended by striking the item relating to section 
2366a and inserting the following new item: 
‘‘2366a. Major defense acquisition programs: determination required before 
Milestone A approval.’’. 
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SEC. 207. REQUIRED CERTIFICATION AND DETERMINATION 
BEFORE MILESTONE B APPROVAL OF MAJOR 
DEFENSE ACQUISITION PROGRAMS. 
(a) DETERMINATION REQUIRED
IN ADDITION
TO 
CERTIFICATION.—Subsection (a) of section 2366b of title 
10, United States Code, is amended— 
(1) in the subsection heading, by striking ‘‘CER-
TIFICATION’’ and inserting ‘‘CERTIFICATION
AND 
DETERMINATION REQUIRED’’; 
(2) by redesignating paragraph (4) as para-
graph (5); and 
(3) by striking ‘‘(3) further certifies that—’’ 
and inserting the following: 
‘‘(3) further certifies that the technology in the 
program has been demonstrated in a relevant envi-
ronment, as determined by the Milestone Decision 
Authority on the basis of an independent review and 
assessment by the Assistant Secretary of Defense 
for Research and Engineering, in consultation with 
the Deputy Assistant Secretary of Defense for De-
velopmental Test and Evaluation; 
‘‘(4) determines, in writing, that—’’. 
(b) SUBMISSION OF WRITTEN DETERMINATION TO 
CONGRESS.—Subsection (c) of such section is amended by 
adding at the end the following new paragraph: 
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‘‘(3) At the request of any of the congressional de-
fense committees, the Secretary of Defense shall submit 
to the committee an explanation of the basis for a deter-
mination made under subsection (a)(4) with respect to a 
major defense acquisition program, together with a copy 
of the written determination. The explanation shall be sub-
mitted in unclassified form, but may include a classified 
annex.’’. 
(c) NATIONAL SECURITY WAIVER.—Subsection (d) of 
such section is amended— 
(1) in paragraph (1), by striking ‘‘certification 
requirement’’ and inserting ‘‘certification and deter-
mination requirements’’; and 
(2) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A) and in subparagraph (A), by inserting 
‘‘waiver’’ before ‘‘determination’’ each place it 
appears; and 
(B) in subparagraph (B), by striking ‘‘cer-
tification components’’ both places it appears 
and inserting ‘‘certification and determination 
components’’. 
(d) CONFORMING AMENDMENTS.—Section 2366b of 
title 10, United States Code, is further amended— 
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(1) in subsection (b)(1), by striking ‘‘paragraph 
(1) or (2) of subsection (a)’’ and inserting ‘‘para-
graph (1), (2), or (3) of subsection (a)’’; 
(2) in subsection (d)(1), by striking ‘‘paragraph 
(1), (2), or (3) of subsection (a)’’ and inserting 
‘‘paragraph (1), (2), (3), or (4) of subsection (a)’’; 
and 
(3) in subsection (d)(2)(B), by striking ‘‘para-
graphs (1), (2), and (3) of subsection (a)’’ and in-
serting ‘‘paragraphs (1), (2), (3), and (4) of sub-
section (a)’’. 
(e) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of section 
2366b of title 10, United States Code, is amended 
to read as follows: 
‘‘§ 2366b. Major defense acquisition programs: certifi-
cation and determination required before 
Milestone B approval’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 139 of such title is 
amended by striking the item relating to section 
2366b and inserting the following new item: 
‘‘2366b. Major defense acquisition programs: certification and determination re-
quired before Milestone B approval.’’. 
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TITLE 
III—SERVICES 
CON-
TRACTING 
AND 
RELATED 
MATTERS 
SEC. 301. EXAMINATION AND GUIDANCE RELATING TO 
OVERSIGHT AND APPROVAL OF SERVICES 
CONTRACTS. 
Not later than September 15, 2015, the Under Sec-
retary of Defense for Acquisition, Technology, and Logis-
tics shall— 
(1) complete an examination of the decision au-
thority related to acquisition of services; and 
(2) develop and issue guidance to improve capa-
bilities and processes related to requirements devel-
opment and source selection for, and oversight and 
management of, services contracts. 
TITLE IV—INFORMATION TECH-
NOLOGY ACQUISITIONS AND 
RELATED MATTERS 
SEC. 401. STREAMLINING OF REQUIREMENTS RELATING TO 
DEFENSE BUSINESS SYSTEMS. 
(a) IN GENERAL.— 
(1) REVISION.—Section 2222 of title 10, 
United States Code, is amended to read as follows: 
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‘‘§ 2222. Defense business systems: business process 
reengineering; 
enterprise 
architecture; 
management 
‘‘(a) DEFENSE BUSINESS SYSTEMS GENERALLY.— 
The Secretary of Defense shall ensure that each covered 
defense business system developed, deployed, and operated 
by the Department of Defense— 
‘‘(1) supports efficient business processes that 
have been reviewed, and as appropriate revised, 
through business process reengineering; 
‘‘(2) is integrated into a comprehensive defense 
business enterprise architecture; and 
‘‘(3) is managed in a manner that provides visi-
bility into, and traceability of, expenditures for the 
system. 
‘‘(b) ISSUANCE OF GUIDANCE.— 
‘‘(1) SECRETARY
OF
DEFENSE
GUIDANCE.— 
The Secretary shall issue guidance to provide for the 
coordination of, and decisionmaking for, the plan-
ning, programming, and control of investments in 
covered defense business systems. 
‘‘(2) SUPPORTING
GUIDANCE.—The Secretary 
shall direct the Deputy Chief Management Officer of 
the Department of Defense, the Under Secretary of 
Defense for Acquisition, Technology, and Logistics, 
the Chief Information Officer, and the Chief Man-
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agement Officer of each of the military departments 
to issue and maintain supporting guidance, as ap-
propriate, for the guidance of the Secretary issued 
under paragraph (1). 
‘‘(c) GUIDANCE ELEMENTS.—The guidance issued 
under subsection (b)(1) shall include the following ele-
ments: 
‘‘(1) Policy to ensure that the business proc-
esses of the Department of Defense are continuously 
reviewed and revised— 
‘‘(A) to implement the most streamlined 
and efficient business processes practicable; and 
‘‘(B) to enable the use of commercial off- 
the-shelf business systems with the fewest 
changes necessary to accommodate require-
ments and interfaces that are unique to the De-
partment of Defense. 
‘‘(2) A process to establish requirements for 
covered defense business systems. 
‘‘(3) Mechanisms for the planning and control 
of investments in covered defense business systems, 
including a process for the collection and review of 
programming and budgeting information for covered 
defense business systems. 
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‘‘(4) Policy requiring the periodic review of cov-
ered defense business systems that have been fully 
deployed, by portfolio, to ensure that investments in 
such portfolios are appropriate. 
‘‘(d) DEFENSE BUSINESS ENTERPRISE ARCHITEC-
TURE.— 
‘‘(1) BLUEPRINT.—The Secretary, working 
through the Deputy Chief Management Officer of 
the Department of Defense, shall develop and main-
tain a blueprint to guide the development of inte-
grated business processes within the Department of 
Defense. Such blueprint shall be known as the ‘de-
fense business enterprise architecture’. 
‘‘(2) PURPOSE.—The defense business enter-
prise architecture shall be sufficiently defined to ef-
fectively guide implementation of interoperable de-
fense business system solutions and shall be con-
sistent with the policies and procedures established 
by the Director of the Office of Management and 
Budget. 
‘‘(3) ELEMENTS.—The defense business enter-
prise architecture shall— 
‘‘(A) include policies, procedures, business 
data standards, business performance measures, 
and business information requirements that 
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apply uniformly throughout the Department of 
Defense; and 
‘‘(B) enable the Department of Defense 
to— 
‘‘(i) comply with all applicable law, in-
cluding Federal accounting, financial man-
agement, and reporting requirements; 
‘‘(ii) 
routinely 
produce 
verifiable, 
timely, accurate, and reliable business and 
financial information for management pur-
poses; and 
‘‘(iii) integrate budget, accounting, 
and program information and systems. 
‘‘(4) INTEGRATION INTO INFORMATION TECH-
NOLOGY ARCHITECTURE.—(A) The defense business 
enterprise architecture shall be integrated into the 
information technology enterprise architecture re-
quired under subparagraph (B). 
‘‘(B) The Chief Information Officer of the De-
partment of Defense shall develop an information 
technology enterprise architecture. The architecture 
shall describe a plan for improving the information 
technology and computing infrastructure of the De-
partment of Defense, including for each of the major 
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business processes conducted by the Department of 
Defense. 
‘‘(e) DEFENSE BUSINESS COUNCIL.— 
‘‘(1) REQUIREMENT FOR COUNCIL.—The Sec-
retary shall establish a Defense Business Council to 
provide advice to the Secretary on developing the de-
fense business enterprise architecture, reengineering 
the Department’s business processes, and require-
ments for defense business systems. The Council 
shall be chaired by the Deputy Chief Management 
Officer and the Chief Information Officer of the De-
partment of Defense. 
‘‘(2) MEMBERSHIP.—The membership of the 
Council shall include the following: 
‘‘(A) The Chief Management Officers of 
the military departments, or their designees. 
‘‘(B) The following officials of the Depart-
ment of Defense, or their designees: 
‘‘(i) The Under Secretary of Defense 
for Acquisition, Technology, and Logistics 
with respect to acquisition, logistics, and 
installations management processes. 
‘‘(ii) The Under Secretary of Defense 
(Comptroller) with respect to financial 
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management and planning and budgeting 
processes. 
‘‘(iii) The Under Secretary of Defense 
for Personnel and Readiness with respect 
to human resources management proc-
esses. 
‘‘(f) APPROVALS REQUIRED FOR DEVELOPMENT.— 
‘‘(1) INITIAL APPROVAL REQUIRED.—The Sec-
retary shall ensure that a covered defense business 
system program cannot proceed into development 
(or, if no development is required, into production or 
fielding) unless the appropriate approval official (as 
specified in paragraph (2)) approves the program by 
determining that the covered defense business sys-
tem concerned— 
‘‘(A) supports a business process that has 
been, or is being as a result of the acquisition 
program, reengineered to be as streamlined and 
efficient as practicable consistent with the guid-
ance issued pursuant to subsection (b), includ-
ing business process mapping; 
‘‘(B) is in compliance with the defense 
business enterprise architecture developed pur-
suant to subsection (d) or will be in compliance 
as a result of modifications planned; 
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‘‘(C) has valid, achievable requirements; 
and 
‘‘(D) is in compliance with the Depart-
ment’s auditability requirements. 
‘‘(2) APPROPRIATE OFFICIAL.—For purposes of 
paragraph (1), the appropriate approval official with 
respect to a covered defense business system is the 
following: 
‘‘(A) In the case of a system of a military 
department, the Chief Management Officer of 
that military department. 
‘‘(B) In the case of a system of a Defense 
Agency or Defense Field Activity or a system 
that will support the business process of more 
than one military department or Defense Agen-
cy or Defense Field Activity, the Deputy Chief 
Management Officer of the Department of De-
fense. 
‘‘(C) In the case of any system, such offi-
cial other than the applicable official under sub-
paragraph (A) or (B) as the Secretary des-
ignates for such purpose. 
‘‘(3) ANNUAL CERTIFICATION.—For any fiscal 
year in which funds are expended for development 
pursuant to a covered defense business system pro-
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(1) by amending the section heading to read as 
follows: 
‘‘§ 2323b. Mentor-Protege Program’’; 
(2) by striking ‘‘pilot’’ each place such term ap-
pears; 
(3) by amending subsection (e)(1) to read as 
follows: 
‘‘(1) A developmental program for the protege 
firm, in such detail as may be reasonable, includ-
ing— 
‘‘(A) factors to assess the protege firm’s 
developmental progress under the program; and 
‘‘(B) the anticipated number and type of 
subcontracts to be awarded to the protege 
firm.’’; 
(4) in subsection (g)(2)(B), by striking ‘‘under 
subsection (l)(2)’’; 
(5) in subsection (h)(1), by inserting ‘‘(15 
U.S.C. 631 et seq.)’’ after ‘‘Small Business Act’’; 
(6) by striking subsection (j) and redesignating 
subsections (k) and (l) as subsections (j) and (k), re-
spectively; 
(7) by amending subsection (j) (as so redesig-
nated) to read as follows: 
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graphs as subparagraphs (D) and (E), respec-
tively; and 
(E) by striking paragraph (4). 
(4) REPORT ON HUMANITARIAN DEMINING AS-
SISTANCE
AUTHORITY.—Section 407 of title 10, 
United States Code, is amended— 
(A) by striking subsection (d); and 
(B) by redesignating subsection (e) as sub-
section (d). 
(5) REPORT ON REGIONAL DEFENSE COUNTER-
TERRORISM FELLOWSHIP PROGRAM.—Section 2249c 
of title 10, United States Code, is amended by strik-
ing subsection (c). 
(6) REPORT
ON
SPACE
SCIENCE
AND
TECH-
NOLOGY
STRATEGY.—Section 2272(a) of title 10, 
United States Code, is amended by striking para-
graph (5). 
(7) REPORT ON DARPA.— 
(A) REPEAL.—Section 2352 of title 10, 
United States Code, is repealed. 
(B) CLERICAL AMENDMENT.—The table of 
sections at the beginning of chapter 139 of title 
10, United States Code, is amended by striking 
the item relating to section 2352. 
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