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and rapid acquisition. The review shall also involve the 
service acquisition executives of each military department. 
(b) ANALYSIS
OF FUNDING REQUIREMENTS
FOR 
TRAINING.—Following the review conducted under sub-
section (a), the Secretary of Defense shall analyze the 
most recent future-years defense program to determine 
the amounts of estimated expenditures and proposed ap-
propriations necessary to support the training require-
ments of the amendments made by section 205 of this Act, 
including any new training requirements determined after 
the review conducted under subsection (a). The Secretary 
shall identify any additional funding needed for such 
training requirements in the separate chapter on the de-
fense acquisition workforce required in the next annual 
strategic workforce plan under 115b of title 10, United 
States Code. 
(c) REQUIREMENT FOR ONGOING CURRICULUM DE-
VELOPMENT WITH CERTAIN SCHOOLS.— 
(1) REQUIREMENT.—Section 1746 of title 10, 
United States Code, is amended by adding at the 
end the following new subsection: 
‘‘(c) CURRICULUM DEVELOPMENT.—The President 
of the Defense Acquisition University shall work with the 
relevant professional schools and degree-granting institu-
tions of the Department of Defense and military depart-
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ments to ensure that best practices are used in curriculum 
development to support acquisition workforce positions.’’. 
(2) AMENDMENT TO SECTION HEADING.—(A) 
The heading of section 1746 of such title is amended 
to read as follows: 
‘‘§ 1746. Defense Acquisition University’’. 
(B) The item relating to section 1746 in the 
table of sections at the beginning of subchapter IV 
of chapter 87 of such title is amended to read as fol-
lows: 
‘‘1746. Defense Acquisition University.’’. 
SEC. 209. COST ESTIMATING INTERNSHIP AND SCHOLAR-
SHIP PROGRAMS. 
(a) PURPOSE.—The purpose of this section is to re-
quire the Department of Defense to develop internship 
and scholarship programs in cost estimating to underscore 
the importance of cost estimating, as a core acquisition 
function, to the acquisition process. 
(b) REQUIREMENT.—The Secretary of Defense shall 
develop intern and scholarship programs in cost esti-
mating for purposes of improving education and training 
in cost estimating and providing an opportunity to meet 
any certification requirements in cost estimating. 
(c) IMPLEMENTATION.—Such programs shall be es-
tablished not later than 270 days after the date of the 
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enactment of this Act and shall be implemented for a 4- 
year period following establishment of the programs. 
SEC. 210. PROHIBITION ON PERSONAL SERVICES CON-
TRACTS FOR SENIOR MENTORS. 
(a) PROHIBITION.—The Secretary of Defense shall 
prohibit the award of a contract for personal services by 
any component of the Department of Defense for the pur-
pose of obtaining the services of a senior mentor. 
(b) INTERPRETATION.—Nothing in this section shall 
be interpreted to prohibit the employment of a senior men-
tor as a highly qualified expert pursuant to section 9903 
of title 5, United States Code, subject to the pay and term 
limitations of that section. A senior mentor employed as 
a highly qualified expert shall be required to submit a fi-
nancial disclosure report and comply with all conflict of 
interest laws and regulations applicable to other Federal 
employees with similar conditions of service. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘contract for personal services’’ 
means a contract awarded under the authority of 
section 129b(a) of title 10, United States Code, or 
section 3109 of title 5, United States Code. 
(2) The term ‘‘component of the Department of 
Defense’’ means a military department, a defense 
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agency, a Department of Defense field activity, a 
unified combatant command, or the joint staff. 
(3) The term ‘‘senior mentor’’ means any per-
son— 
(A)(i) who has served as a general or flag 
officer in the Armed Forces; or 
(ii) who has served in a position at a level 
at or above the level of the senior executive 
service; 
(B) has retired within the 10 years pre-
ceding the award of a contract; and 
(C) who serves as a mentor, teacher, train-
er, or advisor to government personnel on mat-
ters pertaining to the former official duties of 
such person. 
TITLE III—FINANCIAL 
MANAGEMENT 
SEC. 301. INCENTIVES FOR ACHIEVING AUDITABILITY. 
(a) PREFERENTIAL TREATMENT AUTHORIZED.—The 
Under Secretary of Defense (Comptroller) shall ensure 
that any component of the Department of Defense that 
the Under Secretary determines has financial statements 
validated as ready for audit earlier than September 30, 
2017, shall receive preferential treatment, as the Under 
Secretary determines appropriate— 
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(1) in financial matter matters, including— 
(A) consistent with the need to fund ur-
gent warfighter requirements and operational 
needs, priority in the release of appropriated 
funds to such component; 
(B) relief from the frequency of financial 
reporting of such component in cases in which 
such reporting is not required by law; 
(C) relief from departmental obligation and 
expenditure thresholds to the extent that such 
thresholds establish requirements more restric-
tive than those required by law; or 
(D) such other measures as the Under 
Secretary considers appropriate; and 
(2) in the availability of personnel management 
incentives, including— 
(A) the size of the bonus pool available to 
the financial and business management work-
force of the component; 
(B) the rates of promotion within the fi-
nancial and business management workforce of 
the component; 
(C) awards for excellence in financial and 
business management; or 
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(D) the scope of work assigned to the fi-
nancial and business management workforce of 
the component. 
(b) INCLUSION OF INFORMATION IN REPORT.—The 
Under Secretary shall include information on any measure 
initiated pursuant to this section in the next semiannual 
report pursuant to section 1003(b) of the National De-
fense Authorization Act for Fiscal Year 2010 (Public Law 
111–84; 123 Stat. 2439; 10 U.S.C. 2222 note) after such 
measure is initiated. 
(c) EXPIRATION.—This section shall expire on Sep-
tember 30, 2017. 
(d) DEFINITION.—In this section, the term ‘‘compo-
nent of the Department of Defense’’ means any organiza-
tion within the Department of Defense that is required 
to submit an auditable financial statement to the Sec-
retary of Defense. 
SEC. 302. MEASURES REQUIRED AFTER FAILURE TO 
ACHIEVE AUDITABILITY. 
(a) IN GENERAL.—The Secretary of Defense shall 
ensure that corrective measures are immediately taken to 
address the failure of a component of the Department of 
Defense to achieve a financial statement validated as 
ready for audit by September 30, 2017. 
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(b) MEASURES REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
shall develop and issue guidance detailing measures to be 
taken in accordance with subsection (a). Such measures 
shall include— 
(1) the development of a remediation plan to 
ensure the component can achieve a financial state-
ment validated as ready for audit within 1 year; 
(2) additional reporting requirements that may 
be necessary to mitigate financial risk to the compo-
nent; 
(3) delaying the release of appropriated funds 
to such component, consistent with the need to fund 
urgent warfighter requirements and operational 
needs, until such time as the Secretary is assured 
that the component will achieve a financial state-
ment validated as ready for audit within 1 year; 
(4) specific consequences for key personnel in 
order to ensure accountability within the leadership 
of the component; and 
(5) such other measures as the Secretary con-
siders appropriate. 
(c) DEFINITION.—The term ‘‘component’’ of the De-
partment of Defense means any organization within the 
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Department of Defense that is required to submit an 
auditable financial statement to the Secretary of Defense. 
SEC. 303. REVIEW OF OBLIGATION AND EXPENDITURE 
THRESHOLDS. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) Department of Defense program managers 
should be encouraged to place a higher priority on 
seeking the best value for the Government than on 
meeting arbitrary benchmarks for spending; and 
(2) actions to carry out paragraph (1) should 
be supported by the Department’s leadership at 
every level. 
(b) POLICY REVIEW.—Not later than 180 days after 
the date of the enactment of this Act, the Chief Manage-
ment Officer of the Department of Defense, in coordina-
tion with the Chief Management Officer of each military 
department, shall review and update as necessary all rel-
evant policy and instruction regarding obligation and ex-
penditure benchmarks to ensure that such guidance does 
not inadvertently prevent achieving the best value for the 
Government in the obligation and expenditure of funds. 
(c) PROCESS REVIEW.—Not later than 1 year after 
the date of the enactment of this Act, the Chief Manage-
ment Officer, in coordination with the Chief Management 
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Officer of each military department, the Director of the 
Office of Performance Assessment and Root Cause Anal-
ysis, the Under Secretary of Defense (Comptroller), and 
the Comptrollers of the military departments, shall con-
duct a comprehensive review of the use and value of obli-
gation and expenditure benchmarks and propose new 
benchmarks or processes for tracking financial perform-
ance, including, as appropriate— 
(1) increased reliance on individual obligation 
and expenditure plans for measuring program finan-
cial performance; 
(2) mechanisms to improve funding stability 
and to increase the predictability of the release of 
funding for obligation and expenditure; and 
(3) streamlined mechanisms for a program 
manager to submit an appeal for funding changes 
and to have such appeal evaluated promptly. 
(d) TRAINING.—The Under Secretary of Defense for 
Acquisition, Technology, and Logistics and the Under Sec-
retary of Defense (Comptroller) shall ensure that as part 
of the training required for program managers and busi-
ness managers, an emphasis is placed on obligating and 
expending appropriated funds in a manner that achieves 
the best value for the Government and that the purpose 
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and limitations of obligation and expenditure benchmarks 
are made clear. 
SEC. 304. DISCLOSURE AND TRACEABILITY OF THE COST 
OF DEPARTMENT OF DEFENSE HEALTH CARE 
CONTRACTS. 
(a) DISCLOSURE REQUIREMENT.—The Secretary of 
Defense shall require— 
(1) an offeror that submits a bid or proposal in 
response to an invitation for bids or a request for 
proposals issued by a component of the Department 
of Defense for a health care contract to submit with 
the bid or proposal a disclosure of the additional 
cost, if any, contained in such bid or proposal associ-
ated with compliance with the Patient Protection 
and Affordable Care Act (Public Law 111–148) and 
the Health Care and Education Reconciliation Act of 
2010 (Public Law 111–152); and 
(2) a contractor for a health care contract 
awarded following the date of the enactment of this 
Act to disclose on an annual basis the additional 
cost, if any, incurred for such contract associated 
with compliance with the Patient Protection and Af-
fordable Care Act (Public Law 111–148) and the 
Health Care and Education Reconciliation Act of 
2010 (Public Law 111–152). 
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(b) REPORT.— 
(1) REQUIREMENT.—Not later than April 1, 
2011, and each April 1st thereafter until April 1, 
2016, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Rep-
resentatives a detailed report on the additional cost 
to the Department of Defense associated with com-
pliance with the Patient Protection and Affordable 
Care Act (Public Law 111–148) and the Health 
Care and Education Reconciliation Act of 2010 
(Public Law 111–152). 
(2) MATTERS COVERED.—The report required 
by paragraph (1) shall include— 
(A) the projected costs of compliance for 
all health care contracts awarded during the 
preceding year, as disclosed in a bid or proposal 
in accordance with subsection (a)(1); 
(B) for all other health care contracts, the 
incurred cost of compliance for the preceding 
year, as disclosed in accordance with subsection 
(a)(2); and 
(C) any additional costs to the Department 
of Defense necessary to comply with such Acts. 
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(c) HEALTH CARE CONTRACT DEFINED.—In this 
section, the term ‘‘health care contract’’ means a contract 
in an amount greater than the simplified acquisition 
threshold for the acquisition of any of the following: 
(1) Medical supplies. 
(2) Health care services and administration, in-
cluding the services of medical personnel. 
(3) Durable medical equipment. 
(4) Pharmaceuticals. 
(5) Health care-related information technology. 
TITLE IV—INDUSTRIAL BASE 
SEC. 401. EXPANSION OF THE INDUSTRIAL BASE. 
(a) PROGRAM TO EXPAND INDUSTRIAL BASE RE-
QUIRED.—The Secretary of Defense shall establish a pro-
gram to expand the industrial base of the Department of 
Defense to increase the Department’s access to innovation 
and the benefits of competition. The program shall be lim-
ited to firms within the national technology and industrial 
base (as defined in section 2500(1) of title 10, United 
States Code). 
(b) IDENTIFYING AND COMMUNICATING WITH NON-
TRADITIONAL
SUPPLIERS.—The program established 
under subsection (a) shall use tools and resources available 
within the Federal Government and available from the pri-
vate sector, to provide a capability for identifying and 
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communicating with nontraditional suppliers, including 
commercial firms and firms of all business sizes, that are 
engaged in markets of importance to the Department of 
Defense. 
(c) OUTREACH TO LOCAL FIRMS NEAR DEFENSE IN-
STALLATIONS.—The program established under sub-
section (a) shall include outreach, using procurement tech-
nical assistance centers, to notify firms of all business 
sizes in the vicinity of Department of Defense installations 
of opportunities to obtain contracts and subcontracts to 
perform work at such installations. 
(d) INDUSTRIAL BASE REVIEW.—The program re-
quired by subsection (a) shall include a continuous effort 
to review the industrial base supporting the Department 
of Defense, including the identification of markets of im-
portance to the Department of Defense. 
(e) DEFINITION.—In this section: 
(1) NONTRADITIONAL
SUPPLIERS.—The term 
‘‘nontraditional suppliers’’ means firms that have re-
ceived contracts from the Department of Defense 
with a total value of not more than $100,000 in the 
previous 5 years. 
(2) MARKETS
OF
IMPORTANCE
TO
THE
DE-
PARTMENT
OF
DEFENSE.—The term ‘‘markets of 
importance to the Department of Defense’’ means 
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industrial sectors in which the Department of De-
fense spends more than $500,000,000 annually. 
(3) PROCUREMENT
TECHNICAL
ASSISTANCE 
CENTER.—The term ‘‘procurement technical assist-
ance center’’ means a center operating under a coop-
erative agreement with the Defense Logistics Agency 
to provide procurement technical assistance pursu-
ant to the authority provided in chapter 142 of title 
10, United States Code. 
SEC. 402. COMMERCIAL PRICING ANALYSIS. 
Section 803(c) of the Strom Thurmond National De-
fense Authorization Act for Fiscal Year 1999 (Public Law 
105–261; 10 U.S.C. 2306a note) is amended to read as 
follows: 
‘‘(c) COMMERCIAL PRICE TREND ANALYSIS.— 
‘‘(1) The Secretary of Defense shall develop and 
implement procedures that, to the maximum extent 
practicable, provide for the collection and analysis of 
information on price trends for categories of exempt 
commercial items described in paragraph (2). 
‘‘(2) A category of exempt commercial items re-
ferred to in paragraph (1) consists of exempt com-
mercial items that are in a single Federal Supply 
Group or Federal Supply Class, are provided by a 
single contractor, or are otherwise logically grouped 
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for the purpose of analyzing information on price 
trends. 
‘‘(3) The analysis of information on price 
trends under paragraph (1) shall include, in any cat-
egory in which significant escalation in prices is 
identified, a more detailed examination of the causes 
of escalation for such prices within the category and 
whether such price escalation is consistent across the 
Department of Defense. 
‘‘(4) The head of a Department of Defense 
agency or the Secretary of a military department 
shall take appropriate action to address any unjusti-
fied escalation in prices being paid for items pro-
cured by that agency or military department as iden-
tified in an analysis conducted pursuant to para-
graph (1). 
‘‘(5) Not later than April 1 of each of year, the 
Secretary of Defense shall submit to the Committee 
on Armed Services of the Senate and the Committee 
on Armed Services of the House of Representatives 
a report on the analyses of price trends that were 
conducted for categories of exempt commercial items 
during the preceding fiscal year under the proce-
dures prescribed pursuant to paragraph (1). The re-
port shall include a description of the actions taken 
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to identify and address any unjustified price esca-
lation for the categories of items. 
‘‘(6) This subsection shall not be in effect on 
and after April 1, 2013.’’. 
SEC. 403. CONTRACTOR AND GRANTEE DISCLOSURE OF DE-
LINQUENT FEDERAL TAX DEBTS. 
(a) REQUIREMENT.— 
(1) IN
GENERAL.—Chapter 37 of title 31, 
United States Code, is amended by adding at the 
end of subchapter II the following new section: 
‘‘§ 3720F. Contractor and grantee disclosure of delin-
quent Federal tax debts 
‘‘(a) REQUIREMENT RELATING
TO CONTRACTS.— 
The head of any executive agency that issues an invitation 
for bids or a request for proposals for a contract in an 
amount greater than the simplified acquisition threshold 
shall require each person that submits a bid or proposal 
to submit with the bid or proposal a form— 
‘‘(1) certifying that the person does not have a 
seriously delinquent tax debt; and 
‘‘(2) authorizing the Secretary of the Treasury 
to disclose to the head of the agency information 
strictly limited to verifying whether the person has 
a seriously delinquent tax debt. 
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‘‘(b) REQUIREMENT RELATING
TO GRANTS.—The 
head of any executive agency that offers a grant in excess 
of an amount equal to the simplified acquisition threshold 
may not award such grant to any person unless such per-
son submits with the application for such grant a form— 
‘‘(1) certifying that the person does not have a 
seriously delinquent tax debt; and 
‘‘(2) authorizing the Secretary of the Treasury 
to disclose to the head of the executive agency infor-
mation strictly limited to verifying whether the per-
son has a seriously delinquent tax debt. 
‘‘(c) FORM FOR RELEASE OF INFORMATION.—The 
Secretary of the Treasury shall make available to all exec-
utive agencies a standard form for the certification and 
authorization described in subsections (a) and (b). 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) CONTRACT.—The term ‘contract’ means a 
binding agreement entered into by an executive 
agency for the purpose of obtaining property or serv-
ices, but does not include— 
‘‘(A) a contract for property or services 
that is intended to be entered into through the 
use of procedures other than competitive proce-
dures by reason of section 2304(c)(2) of this 
title; or 
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