297 
serve projected to participate in such rec-
ommended best option. 
(E) A determination of the appropriate 
cost sharing for such recommended best option 
with respect to the percentage contribution as a 
monthly premium for current members of the 
Selected Reserve. 
(F) An estimate of the cost of imple-
menting such recommended best option. 
(G) Any legislative language required to 
implement such recommended best option. 
Subtitle B—Other Health Care 
Benefits 
SEC. 721. PROVISION OF HEARING AIDS TO DEPENDENTS 
OF RETIRED MEMBERS. 
Section 1077 of title 10, United States Code, is 
amended— 
(1) in subsection (a)(16), by striking ‘‘A hear-
ing aid’’ and inserting ‘‘Except as provided by sub-
section (g), a hearing aid’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(g) In addition to the authority to provide a hearing 
aid under subsection (a)(16), hearing aids may be sold
298 
under this section to dependents of former members of 
the uniformed services at cost to the United States.’’. 
SEC. 722. EXTENDED TRICARE PROGRAM COVERAGE FOR 
CERTAIN 
MEMBERS 
OF 
THE 
NATIONAL 
GUARD AND DEPENDENTS DURING CERTAIN 
DISASTER RESPONSE DUTY. 
(a) IN GENERAL.—Chapter 55 of title 10, United 
States Code, is amended by inserting after section 1076e 
the following new section: 
‘‘§ 1076f. TRICARE program: extension of coverage 
for certain members of the National 
Guard and dependents during certain 
disaster response duty 
‘‘(a) EXTENDED COVERAGE.—During a period in 
which a member of the National Guard is performing dis-
aster response duty, the member shall be treated as being 
on active duty for a period of more than 30 days for pur-
poses of the eligibility of the member and dependents of 
the member for health care benefits under the TRICARE 
program if such period immediately follows a period in 
which the member served on full-time National Guard 
duty under section 502(f) of title 32, including pursuant 
to chapter 9 of such title, unless the Governor of the State 
(or, with respect to the District of Columbia, the mayor 
of the District of Columbia) determines that such ex-
299 
tended eligibility is not in the best interest of the member 
or the State. 
‘‘(b) CONTRIBUTION BY STATE.—(1) The Secretary 
may charge a State for the costs of providing coverage 
under the TRICARE program to members of the National 
Guard of the State and the dependents of the members 
pursuant to subsection (a). Such charges shall be paid 
from the funds of the State or from any other non-Federal 
funds. 
‘‘(2) Any amounts received by the Secretary under 
paragraph (1) shall be credited to the appropriation avail-
able for the Defense Health Program Account under sec-
tion 1100 of this title, shall be merged with sums in such 
Account that are available for the fiscal year in which col-
lected, and shall be available under subsection (b) of such 
section, including to carry out subsection (a) of this sec-
tion. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘disaster response duty’ means 
duty performed by a member of the National Guard 
in State status pursuant to an emergency declara-
tion by the Governor of the State (or, with respect 
to the District of Columbia, the mayor of the Dis-
trict of Columbia) in response to a disaster or in 
preparation for an imminent disaster.
300 
‘‘(2) The term ‘State’ means each of the several 
States, the District of Columbia, the Commonwealth 
of Puerto Rico, and any territory or possession of 
the United States.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 1076e the following new 
item: 
‘‘1076f. TRICARE program: extension of coverage for certain members of the 
National Guard and dependents during certain disaster re-
sponse duty.’’. 
Subtitle C—Health Care 
Administration 
SEC. 731. PROSPECTIVE PAYMENT OF FUNDS NECESSARY 
TO PROVIDE MEDICAL CARE FOR THE COAST 
GUARD. 
(a) IN GENERAL.—Chapter 13 of title 14, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 519. Prospective payment of funds necessary to 
provide medical care 
‘‘(a) PROSPECTIVE PAYMENT REQUIRED.—In lieu of 
the reimbursement required under section 1085 of title 10, 
the Secretary of Homeland Security shall make a prospec-
tive payment to the Secretary of Defense of an amount 
that represents the actuarial valuation of treatment or 
care—
301 
‘‘(1) that the Department of Defense shall pro-
vide to members of the Coast Guard, former mem-
bers of the Coast Guard, and dependents of such 
members and former members (other than former 
members and dependents of former members who 
are a Medicare-eligible beneficiary or for whom the 
payment for treatment or care is made from the 
Medicare-Eligible Retiree Health Care Fund) at fa-
cilities under the jurisdiction of the Department of 
Defense or a military department; and 
‘‘(2) for which a reimbursement would other-
wise be made under section 1085. 
‘‘(b) AMOUNT.—The amount of the prospective pay-
ment under subsection (a) shall be— 
‘‘(1) in the case of treatment or care to be pro-
vided to members of the Coast Guard and their de-
pendents, derived from amounts appropriated for the 
operating expenses of the Coast Guard; 
‘‘(2) in the case of treatment or care to be pro-
vided former members of the Coast Guard and their 
dependents, derived from amounts appropriated for 
retired pay; 
‘‘(3) determined under procedures established 
by the Secretary of Defense;
302 
‘‘(4) paid during the fiscal year in which treat-
ment or care is provided; and 
‘‘(5) subject to adjustment or reconciliation as 
the Secretaries determine appropriate during or 
promptly after such fiscal year in cases in which the 
prospective payment is determined excessive or in-
sufficient based on the services actually provided. 
‘‘(c) NO PROSPECTIVE PAYMENT WHEN SERVICE IN 
NAVY.—No prospective payment shall be made under this 
section for any period during which the Coast Guard oper-
ates as a service in the Navy. 
‘‘(d) RELATIONSHIP
TO TRICARE.—This section 
shall not be construed to require a payment for, or the 
prospective payment of an amount that represents the 
value of, treatment or care provided under any TRICARE 
program.’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 13 of title 14, United States Code, is amended by add-
ing at the end the following: 
‘‘519. Prospective payment of funds necessary to provide medical care.’’. 
(c) REPEAL.—Section 217 of the Coast Guard Au-
thorization Act of 2016 (Public Law 114–120), as amend-
ed by section 3504, and the item relating to that section 
in the table of contents in section 2 of such Act, are re-
pealed.
303 
SEC. 732. REQUIREMENT TO REVIEW AND MONITOR PRE-
SCRIBING PRACTICES AT MILITARY TREAT-
MENT 
FACILITIES 
OF 
PHARMACEUTICAL 
AGENTS FOR TREATMENT OF POST-TRAU-
MATIC STRESS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall— 
(1) conduct a comprehensive review of the pre-
scribing practices at military treatment facilities of 
pharmaceutical agents for the treatment of post- 
traumatic stress; 
(2) implement a process or processes to monitor 
the prescribing practices at military treatment facili-
ties of pharmaceutical agents that are discouraged 
from use under the VA/DOD Clinical Practice 
Guideline 
for 
Management 
of 
Post-Traumatic 
Stress; and 
(3) implement a plan to address any deviations 
from such guideline in prescribing practices of phar-
maceutical agents for management of post-traumatic 
stress at such facilities. 
(b) PHARMACEUTICAL AGENT DEFINED.—In this 
section, the term ‘‘pharmaceutical agent’’ has the meaning 
given that term in section 1074g(g) of title 10, United 
States Code.
304 
SEC. 733. USE OF MEFLOQUINE FOR MALARIA. 
(a) MEFLOQUINE.—In providing health care to mem-
bers of the Armed Forces, the Secretary of Defense shall 
require— 
(1) that the use of mefloquine for the prophy-
laxis of malaria be limited to members with intoler-
ance or contraindications to other chemoprophylaxis; 
(2) that mefloquine be prescribed by a licensed 
medical provider on an individual basis, and 
(3) that members prescribed mefloquine for ma-
laria prophylaxis be counseled by the medical pro-
vider about the potential side effects of the drug and 
be provided the Food and Drug Administration-re-
quired patient information handouts. 
(b) PROCESS AND REVIEW.— 
(1) PROCESS.—Not later than 180 days after 
the date of the enactment of this Act, in providing 
health care to members of the Armed Forces, the 
Secretary shall develop a standardized process to 
document the screening for contraindications and 
patient education, including a prior authorization 
form, to be used by all medical providers prescribing 
mefloquine for malaria prophylaxis. 
(2) ANNUAL REVIEW.—The Secretary shall con-
duct an annual review of each mefloquine prescrip-
tion at all military medical treatment facilities to
305 
evaluate the documentation of the assessment for 
contraindications, justification for not using other 
chemoprophylaxis, and patient education for the safe 
use of mefloquine and its side effects. 
(c) ADVERSE HEALTH EFFECTS OF MEFLOQUINE.— 
The Secretary of Defense shall expand the missions of the 
Hearing Center of Excellence, the Vision Center of Excel-
lence, the Defense Centers of Excellence for Psychological 
Health and Traumatic Brain Injury (including the De-
ployment Health Clinical Center), and the Center for De-
ployment Health Research to include, as appropriate, im-
proving the clinical evaluation, diagnosis, management, 
and epidemiological study of adverse health effects among 
members of the Armed Forces following exposure to 
mefloquine. 
SEC. 734. APPLIED BEHAVIOR ANALYSIS. 
(a) RATES OF REIMBURSEMENT.— 
(1) IN GENERAL.—In furnishing applied behav-
ior analysis under the TRICARE program to indi-
viduals described in paragraph (2) during the period 
beginning on the date of the enactment of this Act, 
and ending on December 31, 2018, the Secretary of 
Defense shall ensure that the reimbursement rates 
for providers of applied behavior analysis are not
306 
less than the rates that were in effect on March 31, 
2016. 
(2) INDIVIDUALS DESCRIBED.—Individuals de-
scribed in this paragraph are individuals who are 
covered beneficiaries (as defined in section 1072 of 
title 10, United States Code) by reason of being a 
member or former member of the Army, Navy, Air 
Force, or Marine Corps, including the reserve com-
ponents thereof, or a dependent of such a member 
or former member. 
(b) ANALYSIS.— 
(1) IN GENERAL.—Upon the completion of the 
Department of Defense Comprehensive Autism Care 
Demonstration, the Assistant Secretary of Defense 
for Health Affairs shall conduct an analysis to— 
(A) use data gathered during the dem-
onstration to set future reimbursement rates for 
providers of applied behavior analysis under the 
TRICARE program; and 
(B) review comparative commercial insur-
ance claims for purposes of setting such future 
rates, including by— 
(i) conducting an analysis of the com-
parative total of commercial insurance
307 
claims billed for applied behavior analysis; 
and 
(ii) reviewing any covered beneficiary 
limitations on access to applied behavior 
analysis services at various military instal-
lations throughout the United States. 
(2) SUBMISSION.—The Assistant Secretary 
shall submit to the congressional defense committees 
the analysis conducted under paragraph (1). 
(c) FUNDING.— 
(1) INCREASE.—Notwithstanding the amounts 
set forth in the funding tables in division D, the 
amount authorized to be appropriated in section 
1405 for the Defense Health Program, as specified 
in the corresponding funding table in section 4501, 
for Private Sector Care is hereby increased by 
$32,000,000. 
(2) OFFSET.—Notwithstanding the amounts set 
forth in the funding tables in division D, the amount 
authorized to be appropriated in section 4301 for 
operation and maintenance, as specified in the cor-
responding funding table in section 4301, for the Of-
fice of the Secretary of Defense (Line 300) is hereby 
reduced by $32,000,000.
308 
(d) SENSE OF CONGRESS.—It is the sense of Con-
gress that amounts should be appropriated for behavioral 
health treatment of TRICARE beneficiaries, including 
pursuant to this section, in a manner to ensure the appro-
priate and equitable access to such treatment by all such 
beneficiaries. 
Subtitle D—Reports and Other 
Matters 
SEC. 741. MENTAL HEALTH RESOURCES FOR MEMBERS OF 
THE MILITARY SERVICES AT HIGH RISK OF 
SUICIDE. 
(a) IN GENERAL.—The Secretary of Defense shall 
develop a methodology that identifies which members and 
units of the military services are at high risk of suicide. 
(b) MENTAL HEALTH RESOURCES.— 
(1) HIGH
RISK
MEMBERS
OF
THE
MILITARY 
SERVICES.—The Secretary of Defense shall use the 
results under subsection (c) to— 
(A) identify which units have a dispropor-
tionately high rate of suicide and suicide at-
tempts; and 
(B) provide additional preventative and 
treatment resources for mental health for mem-
bers of the military services who were deployed
309 
with the units identified under subparagraph 
(A). 
(2) PREVENTATIVE MENTAL HEALTH CARE.— 
The Secretary of Defense shall use the results under 
subsection (c) to— 
(A) identify the circumstances of deploy-
ments associated with increased vulnerability to 
suicide, including the length of deployment, the 
region and area of deployment, and the nature 
and extent to which there was contact with 
enemy forces; and 
(B) provide additional preventative mental 
health care to units who currently are, or will 
be, deployed under circumstances similar to 
those of subparagraph (A). 
(3) HIGH RISK VETERANS.—The Secretary of 
Veterans Affairs shall use the results under sub-
section (c) to provide outreach regarding the avail-
able preventative and treatment resources for mental 
health for enrolled veterans who were deployed with 
the units identified under this subsection. 
(c) METHODOLOGY.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall develop a methodology to assess the rate of 
suicide and suicide attempts of members of the military
310 
services of units that have been deployed in support of 
a contingency operation after September 11, 2001. 
(d) REPORTS.—Not later than September 30, 2017, 
the Secretary of Defense and the Secretary of Veterans 
Affairs shall submit to the Committee on Armed Services 
and the Committee on Veterans’ Affairs of the House of 
Representatives and the Committee on Armed Services 
and the Committee on Veterans’ Affairs of the Senate a 
report on the activities carried out under this section and 
the effectiveness of such activities. 
(e) RESTRICTION ON USE OF INFORMATION.—Infor-
mation disclosed or obtained pursuant to the provisions 
of this section may be used by officers, employees, and 
contractors of the Department of Defense only for the 
purposes of, and to the extent necessary in, carrying out 
this section. 
(f) DEFINITIONS.—In this section: 
(1) MILITARY SERVICES.—The term ‘‘military 
services’’ means the Army, Navy, Air Force, and the 
Marine Corps, including the reserve components 
thereof. 
(2) ENROLLED VETERAN.—The term ‘‘enrolled 
veteran’’ means a veteran enrolled in the health care 
system of the Department of Veterans Affairs.
311 
SEC. 
742. 
RESEARCH 
OF 
CHRONIC 
TRAUMATIC 
ENCEPHALOPATHY. 
Of the funds authorized to be appropriated by this 
Act or otherwise made available for fiscal year 2017 for 
advanced 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 
detection 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 
reduced circulation, including through the use of active os-
cillating 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.
312 
(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— 
(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 
medical conditions is observed among such pilots, an 
explanation 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.
313 
(c) DURATION.—The duration of the study under 
subsection (a) shall be not more than 2 years. 
(d) BRIEFING.—Not later than June 6, 2017, the 
Secretary shall provide to the Committees on Armed Serv-
ices of the Senate and House of Representatives (and 
other congressional 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 evaluate whether, in carrying out the TRICARE phar-
macy benefits program under section 1074g of title 10, 
United States Code, extending additional discounts for 
prescription drugs filled at retail pharmacies will maintain 
or reduce prescription 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 partici-
314 
pating retail pharmacy, including small business phar-
macies, 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 Sec-
retary shall have the authority to enter into a purchase 
blanket agreement with prescription drug manufactures 
for supplemental discounts for prescription drugs dis-
pensed 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 Sec-
retary carries out the pilot program under subsection (a), 
the Secretary shall commence such pilot program no later 
than October 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
315 
shall submit to the congressional defense committees, in-
cluding the House and Senate Committees on Armed 
Services, reports 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. 
(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 
describing 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
316 
(E) a comparison of immunization rates 
for beneficiaries participating in the pilot and 
those outside of the pilot. 
SEC. 746. STUDY ON DISPLAY OF WAIT TIMES AT URGENT 
CARE CLINICS, PHARMACIES, AND EMER-
GENCY 
ROOMS 
OF 
MILITARY 
MEDICAL 
TREATMENT FACILITIES. 
(a) STUDY.— 
(1) IN
GENERAL.—The Secretary of Defense 
shall conduct a study on the feasibility of placing in 
a conspicuous location at each urgent care clinic of 
a military medical treatment facility, pharmacy of 
such a facility, and emergency room of such a facil-
ity an electronic sign that displays the current aver-
age wait time for a patient to be seen by a qualified 
medical professional or to receive a filled prescrip-
tion, as the case may be. 
(2) 
DETERMINATION
OF
CERTAIN
WAIT 
TIMES.—For purposes of conducting the study under 
paragraph (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 
average length of time beginning at the time of
317 
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 
assistant, or an advanced registered nurse prac-
titioner; and 
(B) updated every 30 minutes. 
(b) REPORT.—Not later than March 1, 2017, the 
Secretary shall submit to the Committees on Armed Serv-
ices of the House of Representatives and the Senate a re-
port on the study conducted under subsection (a)(1), in-
cluding 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 
Defense shall submit to the congressional defense commit-
tees a report on the feasibility of furnishing acupuncture 
services 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).
318 
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-
mitted by the Secretary of Defense to Congress under sec-
tion 721 of the John Warner National Defense Authoriza-
tion Act for Fiscal Year 2007 (Public Law 109–364; 120 
Stat. 2294). 
SEC. 749. INCREASED COLLABORATION WITH NIH TO COM-
BAT TRIPLE NEGATIVE BREAST CANCER. 
The Office of Health of the Department of Defense 
shall work in collaboration with the National Institutes of 
Health to— 
(1) identify specific genetic and molecular tar-
gets and biomarkers for triple negative breast can-
cer; and 
(2) provide information useful in biomarker se-
lection, drug discovery, and clinical trials design that 
will enable both— 
(A) triple negative breast cancer patients 
to be identified earlier in the progression of 
their disease; and 
(B) the development of multiple targeted 
therapies for the disease.
319 
SEC. 750. DEPARTMENT OF DEFENSE STUDIES ON PRE-
VENTING THE DIVERSION OF OPIOID MEDI-
CATIONS. 
(a) STUDIES.—With respect to programs of the De-
partment of Defense that dispense drugs to patients, the 
Secretary of Defense (referred to in this section as the 
‘‘Secretary’’) shall study the feasibility, the effectiveness 
in preventing the diversion of opioid medications, and the 
cost-effectiveness of— 
(1) requiring that such programs, in appro-
priate cases, dispense opioid medications in vials 
using affordable technologies designed to prevent ac-
cess to the medications by anyone other than the in-
tended patient, such as a vial with a locking-cap clo-
sure mechanism; and 
(2) the Secretary providing education on the 
risks of opioid medications to individuals for whom 
such medications are prescribed, and to their fami-
lies, with special consideration given to raising 
awareness among adolescents on such risks. 
(b) FEEDBACK.—In conducting the studies under 
subsection (a), the Secretary shall seek feedback (on a 
confidential basis when appropriate) from the individuals 
and entities involved in the studies. 
(c) REPORT TO CONGRESS.—Not later than one year 
after the date of the enactment of this Act, the Secretary
320 
shall submit to the Congress a report on the results of 
the studies conducted under subsection (a). 
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS 
Subtitle A—Amendments to Gen-
eral 
Contracting 
Authorities, 
Procedures, 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 
amended— 
(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 fol-
lowing: ‘‘that comprise the Major Range and Test 
Facility Base and other facilities and resources used 
to support the acquisition programs of the Depart-
ment of Defense’’; 
(2) in subsection (d)(2)(E)— 
(A) by striking ‘‘plans and business case 
analyses supporting any significant modification
321 
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 
comprise the Major Range and Test Facil-
ity 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 modi-
fication’’ and inserting ‘‘an implementation 
plan and analysis, including an analysis of 
cost considerations, that supports such a 
change’’; and
322 
(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.’’.
323 
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 
paragraph: 
‘‘(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 con-
tractor submitted 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 fol-
lowing new subsection (f): 
‘‘(f) FOREIGN MILITARY SALES.—A contracting offi-
cer of the Department of Defense may not enter into an
324 
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 
contractor 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.—Sec-
tion 2330a of title 10, United States Code, is amended— 
(1) by striking subsections (c), (d), (f), and (g);
325 
(2) by redesignating subsections (e), (h), (i), 
and (j) as subsections (d), (e), (f), and (g), respec-
tively; and 
(3) by inserting after subsection (b) the fol-
lowing 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 de-
cisions and workforce planning in compliance with 
section 129a of this title; 
‘‘(B) distinguish between different types of 
services contracts, including contracts for labor or 
staff augmentation and other types of services con-
tracts; 
‘‘(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
326 
labor, using direct labor hours and associated cost 
data collected from contractors. 
‘‘(2) The Secretary shall ensure that the method im-
plemented 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 Secretary shall use methods and systems, in-
cluding time-and-attendance systems, or combinations of 
methods and systems, 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 Con-
gress a summary of the inventory reporting activities per-
formed by each military department, each combatant com-
mand, and each Defense Agency, during the preceding fis-
cal year pursuant to contracts for services (and pursuant 
to contracts for goods to the extent services are a signifi-
cant component of performance as identified in a separate
327 
line item of a contract) for or on behalf of the Department 
of Defense. 
(d) CONFORMING AMENDMENTS.— 
(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)’’;
328 
(B) by striking ‘‘; and’’ and inserting a pe-
riod; and 
(C) by striking paragraph (2). 
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 ‘‘de-
scribed 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 cri-
teria described 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.’’.
329 
SEC. 805. REVISION TO EFFECTIVE DATE OF SENIOR EXEC-
UTIVE 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 ‘‘amend-
ments made by’’ and all that follows and inserting 
‘‘amendments made by this section shall apply with re-
spect to costs of compensation incurred after January 1, 
2012, under contracts 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 
REQUIREMENTS.—’’;
330 
(B) in subparagraph (A)(i), by striking 
‘‘trusted suppliers in accordance with regula-
tions 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 
preceding clause (i), by striking ‘‘trusted sup-
pliers’’ 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 sup-
pliers that meet applicable anticounterfeiting re-
quirements’’.
331 
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 
pursuant to chapter 9 of part I of the Foreign As-
sistance 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 Emer-
gency Assistance Act (42 U.S.C. 5122)).’’.
332 
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 sub-
section: 
‘‘(d)(1) In the case of athletic footwear needed by 
members of the Army, Navy, Air Force, or Marine Corps 
upon their initial entry into the armed forces, the Sec-
retary 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 re-
gard to the applicability of any simplified acquisition 
threshold under chapter 137 of title 10 (or any other pro-
vision 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 foot-
wear— 
‘‘(A) is medically required to meet unique phys-
iological needs of the member; and
333 
‘‘(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 
subsection: 
‘‘(h) REQUEST
FOR
SERVICES
CONTRACT
AP-
PROVAL.—(1) The Under Secretary of Defense for Per-
sonnel and Readiness shall— 
‘‘(A) ensure that Department of Defense In-
struction 1100.22, Guidance for Manpower Mix, is 
modified to incorporate policies establishing a stand-
ard checklist to be completed ensuring the appro-
priate 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 Logis-
tics, ensure that such policies and checklist are in-
corporated by reference or otherwise into the Service 
Requirements Review Board processes established
334 
under Department of Defense Instruction 5000.74 
and into the pre-solicitation requirements of the De-
fense Federal Acquisition Regulation Supplement. 
‘‘(2) Such checklist shall, at minimum, consolidate 
and address workforce management and sourcing consid-
erations established under sections 129, 129a, 2461, and 
2463 of this title as well as Office of Federal Procurement 
Policy Letter 11–01.’’. 
(b) 
ARMY
MODEL.—In 
implementing 
section 
2330a(g) of title 10, United States Code, as added by sub-
section (a), the Under Secretary of Defense for Personnel 
and Readiness shall model, to the maximum extent prac-
ticable, its policies and checklist on the policies and check-
list relating to services contract approval established and 
in use by the Department 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 
section 2230a(g) of such title, as so added, shall be issued 
within one year after the date of the enactment of this 
Act.
335 
SEC. 809A. 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 amend-
ed— 
(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’’; 
(3) in subsection (d)(4), by striking ‘‘or 2015’’ 
and inserting ‘‘2015, 2016, or 2017’’; and 
(4) in subsection (e), by striking ‘‘2015’’ and 
inserting ‘‘2017’’. 
SEC. 809B. EXTENSION OF AUTHORITY FOR ENHANCED 
TRANSFER OF TECHNOLOGY DEVELOPED AT 
DEPARTMENT OF DEFENSE LABORATORIES. 
Section 801(e) of the National Defense Authorization 
Act for Fiscal Year 2014 (Public Law 113–66; 127 Stat. 
804; 10 U.S.C. 2514 note) is amended by striking ‘‘2017’’ 
and inserting ‘‘2021’’.
336 
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 
inserting ‘‘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 in-
serting ‘‘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 ‘‘Au-
thority—’’ and inserting ‘‘all major defense ac-
quisition programs, major automated informa-
tion system programs, and major subpro-
grams—’’; and
337 
(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 au-
thority;’’ 
(3) by redesignating subsections (b), (c), (d), 
(e), and (f) as subsections (c), (d), (e), (f), and (h), 
respectively; 
(4) by inserting after subsection (a) the fol-
lowing 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 acquisi-
tion program, major automated information system pro-
gram, or major subprogram unless an independent cost 
estimate of the full life-cycle cost of the program or sub-
program has been conducted or approved by the Director 
of Cost Assessment and Program Evaluation and consid-
ered by the milestone decision authority. 
‘‘(2) The regulations governing the content and sub-
mission of independent cost estimates required by sub-
section (a) shall require that the independent cost estimate
338 
of the full life-cycle cost of a program or subprogram in-
clude— 
‘‘(A) all costs of development, procurement, 
military 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 
action 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, 
and approaches to mitigate risk in cost estimates for 
major defense acquisition programs, major auto-
339 
mated information system programs, and major sub-
programs;’’; 
(C) in paragraph (2)— 
(i) by striking ‘‘such confidence level 
provides’’ and inserting ‘‘cost estimates 
provide’’; 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 re-
designated, the following new subsection: 
‘‘(g) GUIDELINES
AND
COLLECTION
OF
COST 
DATA.—(1) The Director of Cost Assessment and Pro-
gram Evaluation shall, in consultation with the Under 
Secretary of Defense for Acquisition, Technology, and Lo-
gistics, develop policies, procedures, guidance, and a col-
lection method to ensure that acquisition cost data are col-
lected in a standardized format that facilitates cost esti-
mation and comparison across acquisition programs. 
‘‘(2) The program manager and contracting officer 
for each major defense acquisition program, major auto-
mated information system program, and major subpro-
340 
gram, in consultation with the cost estimating component 
of the relevant military department or Defense Agency, 
shall ensure that cost data are collected in accordance with 
the requirements of paragraph (1) for any acquisition pro-
gram 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 sub-
section (a) and in subsection (c)(1) (as redesignated 
by subsection (a) of this section), by striking ‘‘major 
defense acquisition programs and major automated 
information system programs’’ and inserting ‘‘major 
defense acquisition programs, major automated in-
formation system programs, and major subpro-
grams’’ each place it appears; 
(3) in paragraphs (1) and (2) of subsection (d) 
(as so redesignated), and in subsection (f)(4) (as so 
redesignated), by striking ‘‘major defense acquisition 
program or major automated information system 
program’’ and inserting ‘‘major defense acquisition
341 
program, major automated information system pro-
gram, 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 
defense 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 amend-
ed— 
(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 
section. 
SEC. 813. REVISIONS TO MILESTONE B DETERMINATIONS. 
Section 2366b(a)(3) of title 10, United States Code, 
is amended— 
(1) in subparagraph (B), by striking ‘‘acquisi-
tion cost in’’ and all that follows through the semi-
colon, and inserting ‘‘life-cycle cost;’’; and
342 
(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 
program,’’. 
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 ac-
quisition 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 
processes. 
(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. 
(3) A determination of whether information re-
lated to the operation and sustainment of existing 
major weapon systems is used to forecast the oper-
343 
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 
system; 
(B) the content and completeness of such 
strategies; 
(C) the extent to which such strategies in-
fluence the planning for major defense acquisi-
tion programs; and 
(D) the extent to which such strategies in-
fluence decisions related to the life-cycle man-
344 
agement and product support of major weapon 
systems. 
(7) An assessment of how effectively the mili-
tary departments consider sustainment matters at 
key decision points for acquisition and life-cycle 
management 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 
Secretary shall provide a briefing to the Committees on 
Armed Services of the Senate and House of Representa-
tives on the preliminary findings of the independent entity.
345 
(d) SUBMISSION TO CONGRESS.—Not later than Au-
gust 1, 2017, the Secretary shall submit to the congres-
sional defense committees a copy of the report of the inde-
pendent entity, along with comments on the report, pro-
posed revisions or clarifications to laws related to life-cycle 
management 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 management 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 Secre-
taries of the military departments’’.
346 
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 
amended— 
(1) by redesignating subsection (d) as sub-
section (e), and in that subsection by striking ‘‘sub-
section (c)’’ and inserting ‘‘subsections (c) and (d)’’; 
and 
(2) by inserting after subsection (c) the fol-
lowing new subsection (d):
347 
‘‘(d) MARKET RESEARCH FOR PRICE ANALYSIS.— 
The Secretary of Defense shall ensure that procurement 
officials in the Department of Defense conduct or obtain 
market research to support the determination of the rea-
sonableness of price for commercial items contained in any 
bid or offer submitted in response to an agency solicita-
tion. To the extent necessary to support such market re-
search, the procurement 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
348 
or analysis in addition to the information submitted pur-
suant to paragraphs (1)(A) and (1)(B).’’. 
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 deter-
minations, conducting market research, and per-
forming analysis of price reasonableness for the pur-
poses of procurements by the Department of De-
fense; and 
‘‘(2) provide to officials of the Department of 
Defense access to previous Department of Defense 
commercial item determinations, market research, 
and analysis used to determine the reasonableness of 
price for the purposes of procurements by the De-
partment of Defense.’’.
349 
SEC. 825. PILOT PROGRAM FOR AUTHORITY TO ACQUIRE 
INNOVATIVE 
COMMERCIAL 
ITEMS 
USING 
GENERAL SOLICITATION COMPETITIVE PRO-
CEDURES. 
(a) AUTHORITY.—The Secretary of Defense may 
carry out a pilot program, to be known as a ‘‘commercial 
solutions opening pilot program’’, under which innovative 
commercial items may be acquired through a competitive 
selection 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 
program for a fiscal year may not exceed 
$75,000,000. 
(d) LIMITATION RELATING TO MAJOR DEFENSE AC-
QUISITION PROGRAM SYSTEMS.—The Secretary may not
350 
acquire innovative commercial items under the pilot pro-
gram to replace a system under a major defense acquisi-
tion 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 Manage-
ment and Budget and shall be posted for access by the 
public. 
(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 activi-
ties 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
351 
section 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 
general solicitations. 
(D) A recommendation on whether the au-
thority for the pilot program should be made 
permanent. 
(3) 
TERMINATION
OF
REPORT
REQUIRE-
MENT.—The requirement to submit a report under 
this subsection shall terminate on the date occurring 
five years after the date of the enactment of this 
Act. 
(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 infor-
mation system applications, programs, or networks, 
or used to improve research and development of in-
formation technology advancements; or
352 
(2) any new application of an existing tech-
nology, process, or method. 
(h) TERMINATION.—The authority to enter into a 
contract under a pilot program under this section termi-
nates on the date occurring five years after the date of 
the enactment of this Act. 
Subtitle D—Other Matters 
SEC. 831. REVIEW AND REPORT ON THE BID PROTEST 
PROCESS. 
(a) REVIEW.—The Secretary of Defense shall con-
duct a review of the bid protest processes related to major 
defense acquisition programs. The review shall examine 
the extent to which— 
(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 
outcomes of bid protests filed by incumbent and 
non-incumbent contractors; 
(4) protests filed by incumbent contractors re-
sult in extension of the period of performance of a 
contract, and whether there are benefits (monetary
353 
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 
conduct the review required in subsection (a). 
(c) BRIEFING.—Not later than March 1, 2017, the 
Secretary, or his designee, shall brief the Committees on 
Armed Services of the Senate and House of Representa-
tives on interim findings of the independent entity. 
(d) REPORT.—Not later than July 1, 2017, the Sec-
retary shall submit to the congressional defense commit-
tees a report on the findings of the independent entity, 
along with a description of any actions that the Secretary 
proposes 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
354 
of Defense of indefinite 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 de-
livery contracts entered into by the Department of 
Defense. 
(3) An assessment of the number and value of 
indefinite delivery contracts entered into by the De-
partment of Defense that included competition be-
tween multiple vendors. 
(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 
regulations to promote competition with respect to 
indefinite delivery contracts.
355 
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 De-
fense 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; 
(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 
provisions on the participation rate of small busi-
nesses and non-traditional defense contractors in de-
fense procurements.
356 
(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 
appropriate expertise to conduct the review required by 
subsection (a). 
(c) BRIEFING.—Not later than March 1, 2017, the 
Secretary, or his designee, shall brief the Committees on 
Armed Services of the Senate and the House of Represent-
atives on interim findings of the independent entity as well 
as initial recommendations of the entity on how to modify 
or eliminate contractual flow-down requirements that the 
entity considers burdensome or unnecessary. 
(d) REPORT.—Not later than August 1, 2017, the 
Secretary shall submit to the congressional defense com-
mittees a report on the findings of the independent entity, 
along with a description of any actions that the Secretary 
proposes 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 
Secretary of Defense for Acquisition, Technology, and Lo-
gistics shall conduct a review of the policy, guidance, regu-
lations, and training related to specifications included in
357 
information technology acquisitions to ensure current poli-
cies eliminate the unjustified use of potentially anti-com-
petitive specifications. In conducting the review, the Under 
Secretary shall examine the use of brand names or propri-
etary specifications or standards in solicitations for pro-
curements 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 
Secretary shall provide a briefing to the Committees on 
Armed Services of the Senate and House of Representa-
tives 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 
Secretary shall revise policies, guidance, and training to 
incorporate such recommendations as the Under Secretary 
considers appropriate from the review required by sub-
section (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:
358 
‘‘(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 
slippage; and 
‘‘(ii) requirements creep (as that term is 
defined in section 2547(c)(1) of title 10); and 
‘‘(C) ensuring that the views of the Com-
mandant regarding such programs on cost, schedule, 
technical feasibility, and performance trade-offs are 
strongly considered by program managers and pro-
gram executive officers in all phases of the acquisi-
tion process.’’. 
(b) CUSTOMER
SERVICE
MISSION
OF
DIREC-
TORATE.— 
(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;
359 
(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 
acquisition programs in the most cost-effective man-
ner 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 
maintain’’; 
(D) by adding at the end of section 564 
the following: 
‘‘(c) ACQUISITION
OF UNMANNED AERIAL SYS-
TEMS.— 
‘‘(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
360 
‘‘(B) may acquire an unmanned aerial sys-
tem only— 
‘‘(i) if such a system has been ac-
quired or has been used by the Depart-
ment of Defense or the Department of 
Homeland Security, or a component there-
of, before the date on which the Com-
mandant acquires the system; 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 limi-
tations 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-
nents and equipment on board or otherwise at-
tached to the aircraft; and 
‘‘(B) associated elements (including com-
munication links and the components that con-
trol such aircraft) that are required for the safe 
and efficient operation of such aircraft.’’;
361 
(E) in subchapter II, by adding at the end 
the following: 
‘‘§ 578. Role of Vice Commandant in major acquisi-
tion 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 ac-
quisition 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 subsections (b) and (c) of this section, the Sec-
retary may acquire additional units procured under a 
Coast Guard major acquisition program contract, by ex-
tension of such contract without competition, if the Comp-
troller General of the United States determines that the 
costs that would be saved through award of a new contract
362 
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 accordance with section 564(a)(2) for the acquisi-
tion of a number of additional units specified by the 
Secretary; 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 
(F) in section 581— 
(i) by redesignating paragraphs (7) 
through (10) as paragraphs (9) through 
(12), respectively, and by redesignating
363 
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 ac-
quisition 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 the end of the items relating to subchapter II the 
following: 
‘‘578. Role of Vice Commandant in major acquisition programs. 
‘‘579. Extension of major acquisition program contracts.’’. 
(c) REVIEW REQUIRED.—
364 
(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 
processes, and the associated budget practices; 
(B) implementation of the strategy pre-
pared in accordance with section 562(b)(2) of 
title 14, United States Code, as in effect before 
the enactment of the National Defense Author-
ization 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 
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:
365 
(A) The recommendations developed by the 
Commandant under paragraph (1) and other 
results of the review conducted under such 
paragraph. 
(B) The actions the Commandant is tak-
ing, if any, within the Commandant’s existing 
authority 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 Com-
mandant of the Coast Guard shall modify the acqui-
sition policies, directives, and regulations of the 
Coast Guard as necessary to ensure the development 
and implementation of a customer-oriented acquisi-
tion system, pursuant to the review under paragraph 
(1)(C). 
(d) 
ANALYSIS
OF
USING
MULTIYEAR
CON-
TRACTING.— 
(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 Represent-
atives and the Committee on Commerce, Science, 
and Transportation of the Senate an analysis of the
366 
use of multiyear contracting, including procurement 
authority 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 sec-
tion 150 of the Continuing Appropriations Act, 2011 
(Public Law 111–242; 124 Stat. 3519), to acquire 
any combination 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 ac-
quisitions examined would meet the tests for the use 
of multiyear procurement authorities. 
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—
367 
(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 
paragraph: 
‘‘(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 
completing further reconciliation audits or corrective ac-
tions other than those described in this section. To accom-
plish closeout of such contracts— 
(1) remaining contract balances may be offset 
with balances in other contract line items within a 
contract regardless of the year or type of appropria-
tion obligated to fund each contract line item and 
regardless of whether the appropriations for such 
contract line items have closed; and
370 
SEC. 838. REQUIREMENT THAT CERTAIN SHIP COMPO-
NENTS 
BE 
MANUFACTURED 
IN 
THE 
NA-
TIONAL 
TECHNOLOGY 
AND 
INDUSTRIAL 
BASE. 
(a) ADDITIONAL PROCUREMENT LIMITATION.—Sec-
tion 2534(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
‘‘(6) COMPONENTS
FOR
AUXILIARY
SHIPS.— 
Subject to subsection (k), the following components: 
‘‘(A) 
Auxiliary 
equipment, 
including 
pumps, for all shipboard services. 
‘‘(B) Propulsion system components, in-
cluding engines, reduction gears, and propellers. 
‘‘(C) Shipboard cranes. 
‘‘(D) Spreaders for shipboard cranes.’’. 
(b) IMPLEMENTATION.—Such section is further 
amended by adding at the end the following new sub-
section: 
‘‘(k) IMPLEMENTATION OF AUXILIARY SHIP COMPO-
NENT LIMITATION.—Subsection (a)(6) applies only with 
respect 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 Author-
ization Act for Fiscal Year 2017 using funds available for 
National Defense Sealift Fund programs or Shipbuilding 
and Conversion, Navy.’’.
371 
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 PERFORM-
ANCE OF NON-DEFENSE AUDITS BY DEFENSE 
CONTRACT AUDIT AGENCY TO EXEMPT AU-
DITS FOR NATIONAL NUCLEAR SECURITY AD-
MINISTRATION. 
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 
paragraph: 
‘‘(3) EXCEPTION.—In this subsection, the term 
‘non-Defense Agencies’ does not include the National 
Nuclear Security Administration.’’.
372 
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 serv-
ice 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.
373 
(2) 
CIVILIAN
PROCUREMENTS.—Section 
3304(e)(4) of title 41, United States Code, is 
amended— 
(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)).’’. 
SEC. 843. BRIEFING ON DESIGN-BUILD CONSTRUCTION 
PROCESS FOR DEFENSE CONTRACTS. 
Not later than February 1, 2017, the Secretary of 
Defense shall provide to the Committee on Armed Services 
of the House of Representatives a briefing on the use and 
implementation of the two-phase design-build selection 
procedures. The briefing shall address the following: 
(1) How the Department of Defense continues 
to implement the updates to the Federal Acquisition 
Regulation that implemented the 2015 amendments 
to section 2305a, title 10, United States Code.
374 
(2) A list of instances in which the Department 
awarded a design-build contract pursuant to section 
2305a of title 10, United States Code, that had 
more than five finalists for phase-two requests for 
proposals during fiscal year 2016, and the list of de-
sign-build requests for proposals that used a one- 
step process. 
(3) Any feedback the Department has received 
from industry. 
(4) Any challenges to the implementation of the 
statute. 
(5) Any additional criteria identified by the 
Secretary. 
SEC. 844. ASSESSMENT OF OUTREACH FOR SMALL BUSI-
NESS CONCERNS OWNED AND CONTROLLED 
BY WOMEN AND MINORITIES REQUIRED BE-
FORE CONVERSION OF CERTAIN FUNCTIONS 
TO CONTRACTOR PERFORMANCE. 
No Department of Defense function that is per-
formed by Department of Defense civilian employees and 
is tied to a certain military base may be converted to per-
formance by a contractor until the Secretary of Defense 
conducts an assessment to determine if the Department 
of Defense has carried out sufficient outreach programs 
to assist small business concerns owned and controlled by
375 
women (as such term is defined in section 8(d)(3)(D) of 
the Small Business Act (15 U.S.C. 637(d)(3)(D))) and 
small business concerns owned and controlled by socially 
and economically disadvantaged individuals (as such term 
is defined in section 8(d)(3)(C) of the Small Business Act 
(15 U.S.C. 637(d)(3)(C))) that are located in the geo-
graphic area near the military base. 
SEC. 845. INCLUSION OF INFORMATION ON COMMON 
GROUNDS FOR SUSTAINING BID PROTESTS IN 
ANNUAL GOVERNMENT ACCOUNTABILITY OF-
FICE REPORTS TO CONGRESS. 
The Comptroller General of the United States shall 
include in the annual report to Congress on the Govern-
ment Accountability Office each year a list of the most 
common grounds for sustaining protests relating to bids 
for contracts during such year. 
SEC. 846. REVISION OF EFFECTIVE DATE FOR AMEND-
MENTS RELATING TO UNDER SECRETARY OF 
DEFENSE FOR BUSINESS MANAGEMENT AND 
INFORMATION. 
Section 901(a)(1) of the Carl Levin and Howard P. 
‘‘Buck’’ Mckeon National Defense Authorization Act for 
Fiscal Year 2015 (Public Law 113–291; 128 Stat. 3462; 
10 U.S.C. 132a note) is amended by striking ‘‘February 
1, 2017’’ and inserting ‘‘February 1, 2018’’.
376 
SEC. 847. PROMOTION OF VALUE-BASED DEFENSE PRO-
CUREMENT. 
(a) STATEMENT OF POLICY.—It shall be the policy 
of the Department of Defense to avoid using lowest price 
technically acceptable source selection criteria in inappro-
priate circumstances that potentially deny the Department 
the benefits of cost and technical tradeoffs in the source 
selection process. 
(b) REQUIREMENT FOR SOLICITATIONS.—For new 
solicitations issued on or after the date that is 120 days 
after the date of the enactment of this Act, lowest price 
technically acceptable source selection criteria shall be 
used only in situations in which— 
(1) the Department of Defense is able to com-
prehensively and clearly describe the minimum re-
quirements expressed in term of performance objec-
tives, measures, and standards that will be used to 
determine acceptability of offers; 
(2) the Department would realize no, or mini-
mal, value from a contract proposal exceeding the 
minimum technical or performance requirements set 
forth in the request for proposal; 
(3) the proposed technical approaches will re-
quire no, or minimal, subjective judgment by the 
source selection authority as to the desirability of 
one offeror’s proposal versus a competing proposal;
377 
(4) a review of technical proposals of offerors 
other than the lowest bidder would result in no, or 
minimal, benefit to the Department; and 
(5) the contracting officer has included a jus-
tification for the use of a lowest price technically ac-
ceptable evaluation methodology in the contract file, 
if the contract to be awarded is predominately for 
the acquisition of information technology services, 
systems engineering and technical assistance serv-
ices, or other knowledge-based professional services. 
(c) AVOIDANCE OF USE OF LOWEST PRICE TECH-
NICALLY ACCEPTABLE SOURCE SELECTION CRITERIA IN 
PROCUREMENTS
OF INFORMATION TECHNOLOGY
AND 
AUDITING.—To the maximum extent practicable, the use 
of lowest price technically acceptable source selection cri-
teria shall be avoided when the procurement is predomi-
nately for the acquisition of information technology serv-
ices, systems engineering and technical assistance services, 
audit or audit readiness services, or other knowledge-based 
professional services. 
(d) REPORTING.—Not later than 180 days after the 
date of the enactment of this Act, and annually thereafter 
for 3 years, the Secretary of Defense shall submit to the 
congressional defense committees a report on the number 
of instances in which lowest-price technically acceptable
378 
source selection criteria is used, including an explanation 
of how the criteria was considered when making a deter-
mination to use lowest price technically acceptable source 
selection criteria. 
SEC. 848. STUDY AND REPORT ON CONTRACTS AWARDED 
TO MINORITY-OWNED AND WOMEN-OWNED 
BUSINESSES. 
(a) STUDY.—The Comptroller General of the United 
States shall carry out a study on the number and types 
of contracts for the procurement of goods or services for 
the Department of Defense awarded to minority-owned 
and women-owned businesses during fiscal years 2010 
through 2015. In conducting the study, the Comptroller 
General shall identify minority-owned businesses accord-
ing to the categories identified in the Federal procurement 
data system (described in section 1122(a)(4)(A) of title 
41, United States Code). 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Comptroller General shall 
submit to the congressional defense committees a report 
on the results of the study under subsection (a).
379 
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 prin-
ciples should be adhered to in any reform of the Gold-
water-Nichols Department of Defense Reorganization Act 
of 1986: 
(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 ad-
vice, as the principal military advisor to the Presi-
dent and the Secretary of Defense, must be pre-
served. 
(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.
380 
(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 
combining European Command and Africa Com-
mand, would severely degrade mission effectiveness, 
but would provide only marginal increased efficiency. 
Additionally, 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. 
(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, in-
cluding 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.
381 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 2 of such title is amended by 
striking 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 pur-
pose of the commission is to examine and make rec-
ommendations 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: 
(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 Representa-
tives. 
(C) Three members appointed by the chair 
of the Committee on Armed Services of the 
Senate.
382 
(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 Representa-
tive and the chair of the Committee on Armed 
Services 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 
minority member of the Committee on Armed 
Services of the Senate shall jointly designate 
one member of the commission to serve as vice 
chair of the commission. 
(3) PERIOD
OF
APPOINTMENT; VACANCIES.— 
Members shall be appointed for the life of the com-
mission. Any vacancy in the commission shall be 
filled in the same manner as the original appoint-
ment. 
(c) DUTIES.— 
(1) REVIEW.—The commission shall review the 
current national defense strategy of the United
383 
States, including the assumptions, missions, force 
posture and capabilities, and strategic and military 
risks associated with the strategy. 
(2) ASSESSMENT
AND
RECOMMENDATIONS.— 
The commission shall conduct a comprehensive as-
sessment of the strategic environment, the size and 
shape of the force, the readiness of the force, the 
posture and capabilities of the force, the allocation 
of resources, and strategic and military risks to pro-
vide recommendations on national defense strategy 
for the United States. 
(d) COOPERATION FROM GOVERNMENT.— 
(1) COOPERATION.—In carrying out its duties, 
the commission shall receive the full and timely co-
operation of the Secretary of Defense in providing 
the commission with analysis, briefings, and other 
information necessary for the fulfillment of its re-
sponsibilities. 
(2) LIAISON.—The Secretary of Defense shall 
designate at least one officer or employee of the De-
partment of Defense to serve as a liaison officer be-
tween the Department and the commission. 
(e) REPORT.— 
(1) FINAL REPORT.—Not later than December 
1, 2017, the commission shall submit to the Presi-
384 
dent, the Secretary of Defense, the Committee on 
Armed Services of the House of Representatives, 
and the Committee on Armed Services of the Senate 
a report on the commission’s findings, conclusions, 
and recommendations. The report shall address, but 
not be limited to, each of the following: 
(A) The strategic environment, including 
security challenges, and the national security 
interests of the United States. 
(B) The military missions for which the 
Department of Defense should prepare and the 
force planning construct. 
(C) The roles and missions of the Armed 
Forces to carry out those missions and the roles 
and capabilities provided by other United States 
Government agencies and by allies and inter-
national partners. 
(D) The force size and shape, posture and 
capabilities, readiness, infrastructure, organiza-
tion, personnel, and other elements of the de-
fense program necessary to support the strat-
egy. 
(E) The resources necessary to support the 
strategy, including budget recommendations.
385 
(F) The strategic and military risks associ-
ated with the strategy, including the relation-
ships and tradeoffs between missions, risks, and 
resources. 
(2) INTERIM BRIEFING.—Not later than June 
1, 2017, the commission shall provide to the Com-
mittee on Armed Services of the House of Rep-
resentatives, and the Committee on Armed Services 
of the Senate a briefing on the status of its review 
and assessment, and include a discussion of any in-
terim recommendations. 
(f) FUNDING.— Of the amounts authorized to be ap-
propriated or otherwise made available pursuant to this 
Act to the Department of Defense, $5,000,000 is available 
to fund the activities of the commission. 
(g) TERMINATION.—The commission shall terminate 
6 months after the date on which it submits the report 
required by subsection (e). 
SEC. 904. REFORM OF DEFENSE STRATEGIC AND POLICY 
GUIDANCE. 
Subsection (g) of section 113 of title 10, United 
States Code, is amended to read as follows: 
‘‘(g) DEFENSE
STRATEGIC
AND
POLICY
GUID-
ANCE.—
386 
‘‘(1) DEFENSE
STRATEGIC
GUIDANCE.—The 
Secretary of Defense, with the advice and assistance 
of the Chairman of the Joint Chiefs of Staff, shall 
provide every four years to the heads of the military 
departments, the unified and specified combatant 
commands, all other Defense Agencies and Depart-
ment of Defense Field Activities, and any other ele-
ments of the Department of Defense named in para-
graphs (1) to (10) of section 111(b) of this title, 
written strategic guidance expressing the national 
defense strategy of the United States. The strategic 
guidance shall— 
‘‘(A) support the most recent national se-
curity strategy report of the President under 
section 108 of the National Security Act of 
1947 (50 U.S.C. 3043); 
‘‘(B) be a mechanism for— 
‘‘(i) setting priorities for sizing and 
shaping the force, guiding the development 
and sustainment of capabilities, allocating 
resources, and adjusting the organization 
of the Department of Defense to respond 
to changes in the strategic environment; 
‘‘(ii) monitoring, assessing, and hold-
ing accountable agencies within the De-
387 
partment of Defense for the development 
of policies and programs that support the 
national defense strategy; 
‘‘(iii) integrating and supporting other 
national and related interagency security 
policies and strategies with other Depart-
ment of Defense guidance, plans, and ac-
tivities; and 
‘‘(iv) communicating such national de-
fense strategy to the American public, 
Congress, relevant United States Govern-
ment agencies, and allies and international 
partners; 
‘‘(C) provide a comprehensive discussion 
of— 
‘‘(i) the assumed strategic environ-
ment, including security challenges, and 
the assumed or defined prioritized national 
security interests and objectives of the 
United States; 
‘‘(ii) the prioritized military missions 
for which the Department of Defense must 
prepare and the assumed force planning 
scenarios and constructs;
388 
‘‘(iii) the roles and missions of the 
armed forces to carry out those missions, 
and the assumed roles and capabilities pro-
vided by other United States Government 
agencies and by allies and international 
partners; 
‘‘(iv) the force size and shape, pos-
ture, capabilities, readiness, infrastructure, 
organization, personnel, and other ele-
ments of the defense program necessary to 
support the strategy; 
‘‘(v) the resources necessary to sup-
port the strategy, including an estimated 
budget plan; and 
‘‘(vi) the strategic and military risks 
associated with the strategy, including the 
relationships and tradeoffs between mis-
sions, risks, and resources; and 
‘‘(D) include any additional or alternative 
views of the Chairman of the Joint Chiefs of 
Staff, including any military assessment of 
risks associated with the defense strategy. 
‘‘(2) POLICY GUIDANCE ON DEVELOPMENT OF 
FORCES.—In implementing the guidance in para-
graph (1), the Secretary of Defense, with the advice
389 
and assistance of the Chairman of the Joint Chiefs 
of Staff, shall provide annually to the heads of the 
military departments, the unified and specified com-
batant commands, all other Defense Agencies and 
Department of Defense Field Activities, and any 
other elements of the Department of Defense named 
in paragraphs (1) to (10) of section 111(b) of this 
title, written policy guidance for the preparation and 
review of the program recommendations and budget 
proposals of their respective components to guide the 
development of forces. Such guidance shall include— 
‘‘(A) the prioritized national security inter-
ests and objectives; 
‘‘(B) the prioritized military missions of 
the Department of Defense, including the as-
sumed force planning scenarios and constructs; 
‘‘(C) the force size and shape, posture, ca-
pabilities, readiness, infrastructure, organiza-
tion, personnel, and other elements of the de-
fense program necessary to support the strat-
egy; 
‘‘(D) the resource levels projected to be 
available for the period of time for which such 
recommendations and proposals are to be effec-
tive; and
390 
‘‘(E) a discussion of any changes in the de-
fense strategy and assumptions underpinning 
the strategy, as required by paragraph (1). 
‘‘(3) POLICY
GUIDANCE
ON
CONTINGENCY 
PLANNING.—In implementing the guidance in para-
graph (1), the Secretary of Defense, with the ap-
proval of the President and after consultation with 
the Chairman of the Joint Chiefs of Staff, shall pro-
vide, every two years or more frequently as needed, 
to the Chairman written policy guidance for the 
preparation and review of contingency plans, includ-
ing plans for providing support to civil authorities in 
an incident of national significance or a catastrophic 
incident, for homeland defense, and for military sup-
port to civil authorities. Such guidance shall include 
guidance on the employment of forces, including spe-
cific force levels and specific supporting resource lev-
els projected to be available for the period of time 
for which such plans are to be effective. 
‘‘(4) SUBMISSION TO CONGRESS.—(A) Not later 
than February 15th in any calendar year in which 
any of the written guidance in paragraphs (1), (2), 
and (3) is required, the Secretary of Defense shall 
submit to the congressional defense committees a
391 
copy of such guidance developed under such para-
graphs. 
‘‘(B) In addition, not later than February 15th 
in any calendar year in which the written guidance 
in paragraph (1) is required, the Secretary of De-
fense shall submit to the congressional defense com-
mittees a detailed summary of any classified aspects 
of the strategic guidance, including assumptions re-
garding the strategic environment; military missions; 
force planning scenarios and constructs; force size, 
shape, posture, capabilities, and readiness; and any 
additional or alternative views of the Chairman of 
the Joint Chiefs of Staff.’’. 
SEC. 905. REFORM OF THE NATIONAL MILITARY STRATEGY. 
Paragraph (1) of section 153(b) of title 10, United 
States Code, is amended to read as follows: 
‘‘(1) NATIONAL MILITARY STRATEGY.—(A) The 
Chairman shall determine each even-numbered year 
whether to prepare a new National Military Strategy 
in accordance with this subparagraph or to update 
a strategy previously prepared in accordance with 
this subsection. The Chairman shall provide such 
National Military Strategy or update to the Sec-
retary of Defense in time for transmittal to Con-
gress pursuant to paragraph (3), including in time
392 
for inclusion of the report of the Secretary of De-
fense, if any, under paragraph (4). 
‘‘(B) Each National Military Strategy (or up-
date) under this paragraph shall be based on a com-
prehensive review conducted by the Chairman in 
conjunction with the other members of the Joint 
Chiefs of Staff and the commanders of the unified 
and specified combatant commands. Each update 
shall address only those parts of the most recent Na-
tional Military Strategy for which the Chairman de-
termines, on the basis of this review, that a modi-
fication is needed. 
‘‘(C) Each National Military Strategy (or up-
date) submitted under this paragraph shall describe 
how the military will support the objectives of the 
United States as articulated in— 
‘‘(i) the most recent National Security 
Strategy prescribed by the President pursuant 
to section 108 of the National Security Act of 
1947 (50 U.S.C. 3043); 
‘‘(ii) the most recent annual report of the 
Secretary of Defense submitted to the President 
and Congress pursuant to section 113 of this 
title;
393 
‘‘(iii) the most recent defense strategic 
guidance provided by the Secretary of Defense 
pursuant to section 113 of this title; and 
‘‘(iv) any other national security or defense 
strategic guidance issued by the President or 
the Secretary of Defense. 
‘‘(D) At a minimum, each National Military 
Strategy (or update) submitted under this para-
graph shall be a mechanism for— 
‘‘(i) developing military ends, ways, and 
means to support the objectives referred to in 
subparagraph (C); 
‘‘(ii) assessing strategic and military risks, 
and developing risk mitigation options; 
‘‘(iii) establishing a strategic framework 
for the development of operational and contin-
gency plans; 
‘‘(iv) prioritizing joint force capabilities, 
capacities, and resources; and 
‘‘(v) establishing military guidance for the 
development of the joint force.’’.
394 
SEC. 906. MODIFICATION TO INDEPENDENT STUDY OF NA-
TIONAL SECURITY STRATEGY FORMULATION 
PROCESS. 
Section 1064(b)(2) of the National Defense Author-
ization Act for Fiscal Year 2016 (Public Law 114–92; 129 
Stat. 989) is amended— 
(1) in subparagraph (D), by inserting ‘‘, includ-
ing Congress,’’ after ‘‘Federal Government’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(E) The capabilities and limitations of 
the Department of Defense workforce respon-
sible for conducting strategic planning, includ-
ing recommendations for improving the work-
force through training, education, and career 
management.’’. 
SEC. 907. TERM OF OFFICE FOR THE CHAIRMAN OF THE 
JOINT CHIEFS OF STAFF. 
(a) AMENDMENTS.—Section 152(a) of title 10, 
United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘a term of two 
years’’ and all that follows through the end and in-
serting the following: ‘‘a term of four years, begin-
ning on October 1 of a year that is three years fol-
lowing a year evenly divisible by four. The limitation
395 
of this paragraph on the length of term does not 
apply in time of war.’’; and 
(2) in paragraph (3), by striking ‘‘exceeds six 
years’’ and all that follows through the end and in-
serting the following: ‘‘exceeds eight years. The limi-
tation of this paragraph does not apply in time of 
war.’’. 
(b) DELAYED EFFECTIVE DATE.—The amendments 
made by this section shall take effect on October 1, 2019. 
SEC. 908. RESPONSIBILITIES OF THE CHAIRMAN OF THE 
JOINT CHIEFS OF STAFF RELATING TO OPER-
ATIONS. 
Section 153(a) of title 10, United States Code, is 
amended— 
(1) by redesignating paragraphs (4), (5), and 
(6) as paragraphs (5), (6), and (7), respectively; 
(2) by inserting after paragraph (3) the fol-
lowing new paragraph (4): 
‘‘(4) ADVICE ON OPERATIONS.—Advising— 
‘‘(A) the President and the Secretary of 
Defense on ongoing military operations; and 
‘‘(B) the Secretary on the allocation and 
transfer of forces among geographic and func-
tional combatant commands, as necessary, to
396 
address transregional, multi-domain, and multi- 
functional threats.’’. 
SEC. 909. ASSIGNED FORCES WITHIN THE CONTINENTAL 
UNITED STATES. 
Section 162(a) of title 10, United States Code, is 
amended— 
(1) in paragraph (2), by inserting after ‘‘of this 
title’’ the following: ‘‘, other forces within the conti-
nental United States that are directed by the Sec-
retary of Defense to be assigned to a military de-
partment,’’; and 
(2) in paragraph (4), by inserting after ‘‘unified 
combatant command’’ the following: ‘‘, other than 
forces within the continental United States that are 
directed by the Secretary to be assigned to a mili-
tary department,’’. 
SEC. 910. REDUCTION IN GENERAL OFFICER AND FLAG OF-
FICER GRADES AND POSITIONS. 
(a) GRADE OF SERVICE OR FUNCTIONAL COMPO-
NENT COMMANDER.—Section 164(e) of title 10, United 
States Code, is amended by adding after paragraph (4) 
the following new paragraph: 
‘‘(5) The grade of an officer serving as a com-
mander of a service or functional component com-
mand under a commander of a combatant command
397 
shall be no higher than lieutenant general or vice ad-
miral.’’. 
(b) DEFINITIONS.—Section 164 of such title is fur-
ther amended by adding at the end the following new sub-
section: 
‘‘(h) DEFINITIONS.—For purposes of this section— 
‘‘(1) a service component command is subordi-
nate to the commander of a unified command and 
consists of the service component commander and 
the service forces (such as individuals, units, detach-
ments, and organizations, including the support 
forces), as assigned by the Secretary of Defense, 
that have been assigned to that combatant com-
mander; and 
‘‘(2) a functional component command is a 
command normally, but not necessarily, composed of 
forces of two or more military departments which 
may be established across the range of military oper-
ations to perform particular operational missions 
that may be of short duration or may extend over 
a period of time.’’. 
(c) REDUCTION IN POSITIONS.— 
(1) REDUCTION.—The Secretary of Defense 
shall reduce the total number of officers in the grade
398 
of general or admiral on active duty by five posi-
tions. 
(2) REPORT.—The Secretary of Defense shall 
submit to the congressional defense committees a re-
port on how the Department of Defense plans to im-
plement the reductions required by paragraph (1), 
including how to balance and reduce the total num-
ber of general officers and flag officers in accordance 
with sections 525 and 526 of title 10, United States 
Code. 
(d) TREATMENT OF CURRENT COMMANDERS.—An 
officer serving on the date of the enactment of this Act 
as a commander of a service or functional component com-
mand under a commander of a combatant command shall 
serve in that position until the appointment of another of-
ficer in accordance with the amendment made by sub-
section (a). 
SEC. 911. ESTABLISHMENT OF UNIFIED COMBATANT COM-
MAND FOR CYBER OPERATIONS. 
(a) ESTABLISHMENT OF CYBER COMMAND.—Chap-
ter 6 of title 10, United States Code, is amended by add-
ing at the end the following new section:
399 
‘‘§ 169. Unified combatant command for cyber oper-
ations 
‘‘(a) ESTABLISHMENT.—With the advice and assist-
ance of the Chairman of the Joint Chiefs of Staff, the 
President, through the Secretary of Defense, shall estab-
lish under section 161 of this title a unified combatant 
command for cyber operations forces (hereinafter in this 
section referred to as the ‘cyber command’). The principal 
function of the command is to prepare cyber operations 
forces to carry out assigned missions. 
‘‘(b) ASSIGNMENT OF FORCES.—Unless otherwise di-
rected by the Secretary of Defense, all active and reserve 
cyber operations forces of the armed forces stationed in 
the United States shall be assigned to the cyber command. 
‘‘(c) GRADE OF COMMANDER.—The commander of 
the cyber operations command shall hold the grade of gen-
eral or, in the case of an officer of the Navy, admiral while 
serving in that position, without vacating his permanent 
grade. The commander of such command shall be ap-
pointed to that grade by the President, by and with the 
advice and consent of the Senate, for service in that posi-
tion. 
‘‘(d) COMMAND OF ACTIVITY OR MISSION.—(1) Un-
less otherwise directed by the President or the Secretary 
of Defense, a cyber operations activity or mission shall be 
conducted in coordination with the command of the com-
400 
mander of the unified combatant command in whose geo-
graphic area the activity or mission is to be conducted. 
‘‘(2) The commander of the cyber command shall ex-
ercise command of a selected cyber operations mission if 
directed to do so by the President or the Secretary of De-
fense. 
‘‘(e) AUTHORITY OF COMBATANT COMMANDER.—(1) 
In addition to the authority prescribed in section 164(c) 
of this title, the commander of the cyber command shall 
be responsible for, and shall have the authority to conduct, 
all affairs of such command relating to cyber operations 
activities. 
‘‘(2) The commander of such command shall be re-
sponsible for, and shall have the authority to conduct, the 
following functions relating to cyber operations activities 
(whether or not relating to the cyber command): 
‘‘(A) Developing strategy, doctrine, and tactics. 
‘‘(B) Preparing and submitting to the Secretary 
of Defense program recommendations and budget 
proposals for cyber operations forces and for other 
forces assigned to the cyber command. 
‘‘(C) Exercising authority, direction, and con-
trol over the expenditure of funds— 
‘‘(i) for forces assigned directly to the 
cyber command; and
401 
‘‘(ii) for cyber operations forces assigned to 
unified combatant commands other than the 
cyber command, with respect to all matters cov-
ered by section 807 of the National Defense 
Authorization Act for Fiscal Year 2014 (Public 
Law 114–92; 129 Stat. 886; 10 U.S.C. 2224 
note) and, with respect to a matter not covered 
by such section, to the extent directed by the 
Secretary of Defense. 
‘‘(D) Training assigned forces. 
‘‘(E) Conducting specialized courses of instruc-
tion for commissioned and noncommissioned officers. 
‘‘(F) Validating requirements. 
‘‘(G) Establishing priorities for requirements. 
‘‘(H) Ensuring the interoperability of equip-
ment and forces. 
‘‘(I) Formulating and submitting requirements 
for intelligence support. 
‘‘(J) Monitoring the promotions, assignments, 
retention, training, and professional military edu-
cation of cyber operations forces officers. 
‘‘(3) The commander of the cyber command shall be 
responsible for— 
‘‘(A) ensuring the combat readiness of forces 
assigned to the cyber command; and
402 
‘‘(B) monitoring the preparedness to carry out 
assigned missions of cyber forces assigned to unified 
combatant commands other than the cyber com-
mand. 
‘‘(C) The staff of the commander shall include 
an inspector general who shall conduct internal au-
dits and inspections of purchasing and contracting 
actions through the cyber operations command and 
such other inspector general functions as may be as-
signed. 
‘‘(f) INTELLIGENCE AND SPECIAL ACTIVITIES.—This 
section does not constitute authority to conduct any activ-
ity which, if carried out as an intelligence activity by the 
Department of Defense, would require a notice to the Se-
lect Committee on Intelligence of the Senate and the Per-
manent Select Committee on Intelligence of the House of 
Representatives under title V of the National Security Act 
of 1947 (50 U.S.C. 3091 et seq.).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘169. Unified combatant command for cyber operations.’’. 
SEC. 912. REVISION OF REQUIREMENTS RELATING TO 
LENGTH OF JOINT DUTY ASSIGNMENTS. 
(a) MINIMUM LENGTH
OF ASSIGNMENT.—Section 
664(a) of title 10, United States Code, is amended by
403 
striking ‘‘assignment—’’ and paragraphs (1) and (2) and 
inserting ‘‘ assignment shall not be less than two years.’’. 
(b) REPEAL OF REQUIREMENTS RELATING TO INI-
TIAL ASSIGNMENT OF CERTAIN OFFICERS AND AVERAGE 
TOUR LENGTHS.—Section 664 of title 10, United States 
Code, is amended by striking subsections (c) and (e). 
(c) EXCLUSIONS FROM TOUR LENGTH.—Section 
664(d) of title 10, United States Code, is amended— 
(1) in paragraph (1), by striking in subpara-
graph (D) and inserting the following new subpara-
graph: 
‘‘(D) a qualifying reassignment from a 
joint duty assignment as prescribed by the Sec-
retary of Defense by regulation.’’; 
(2) by striking paragraph (2); and 
(3) by redesignating paragraph (3) as para-
graph (2). 
(d) FULL TOUR OF DUTY.—Section 664(f) of title 
10, United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘prescribed 
in’’ and inserting ‘‘prescribed under’’; 
(2) by striking paragraphs (2) and (4); 
(3) by redesignating paragraphs (3) and (5) as 
paragraphs (2) and (3), respectively; and
404 
(4) by redesignating paragraph (6) as para-
graph (4), and in that paragraph, by striking ‘‘, but 
not less than two years’’. 
(e) CONSTRUCTIVE CREDIT.—Section 664(h) of title 
10, United States Code, is amended— 
(1) by striking ‘‘(1) The Secretary of Defense 
may accord’’ and inserting ‘‘The Secretary of De-
fense may award’’; and 
(2) by striking paragraph (2). 
(f) CLERICAL AND CONFORMING AMENDMENTS.— 
Section 664 of title 10, United States Code, is further 
amended— 
(1) by redesignating subsections (d), (f), (g), 
and (h) as subsections (c), (d), (e), and (f), respec-
tively; 
(2) in subsection (c), as redesignated, by strik-
ing ‘‘subsection (f)(3)’’ and inserting ‘‘subsection 
(d)(2)’’; 
(3) in subsection (d), as redesignated, by strik-
ing ‘‘subsection (g)’’ and inserting ‘‘subsection (e)’’; 
(4) in subsection (e), as redesignated, by strik-
ing ‘‘ subsection (f)(3)’’ and inserting ‘‘ subsection 
(d)(2)’’; and
405 
(5) in subsection (f), as redesignated, by strik-
ing ‘‘paragraphs (1), (2), and (4) of subsection (f)’’ 
and inserting ‘‘subsection (d)(1)’’. 
SEC. 913. REVISION OF DEFINITIONS USED FOR JOINT OF-
FICER MANAGEMENT. 
(a) DEFINITION OF JOINT MATTERS.—Paragraph 
(1) of section 668(a) of title 10, United States Code, is 
amended to read as follows: 
‘‘(1) In this chapter, the term ‘joint matters’ means 
matters related to any of the following: 
‘‘(A) The development or achievement of stra-
tegic objectives through the synchronization, coordi-
nation, and organization of integrated forces in oper-
ations conducted across domains, such as land, sea, 
or air, in space, or in the information environment, 
including matters relating to any of the following: 
‘‘(i) National military strategy. 
‘‘(ii) Strategic planning and contingency 
planning. 
‘‘(iii) Command and control, intelligence, 
fires, movement and maneuver, protection or 
sustainment of operations under unified com-
mand. 
‘‘(iv) National security planning with other 
departments and agencies of the United States.
406 
‘‘(v) Combined operations with military 
forces of allied nations. 
‘‘(B) Acquisition matters conducted by mem-
bers of the armed forces and covered under chapter 
87 of this title involved in developing, testing, con-
tracting, producing, or fielding of multi-service pro-
grams or systems. 
‘‘(C) Other matters designated in regulation by 
the Secretary of Defense in consultation with the 
Chairman of the Joint Chiefs of Staff.’’. 
(b) DEFINITION OF INTEGRATED FORCES.—Section 
668(a)(2) of title 10, United States Code, is amended in 
the matter preceding subparagraph (A)— 
(1) by striking ‘‘integrated military forces’’ and 
inserting ‘‘integrated forces’’; and 
(2) by striking ‘‘the planning or execution (or 
both) of operations involving’’ and inserting ‘‘achiev-
ing unified action with’’. 
(c) DEFINITION OF JOINT DUTY ASSIGNMENT.—Sec-
tion 668(b)(1) of title 10, United States Code, is amended 
by striking subparagraph (A) and inserting the following 
new subparagraph: 
‘‘(A) shall be limited to assignments in which— 
‘‘(i) the preponderance of the duties of the 
officer involve joint matters and
407 
‘‘(ii) the officer gains significant experience 
in joint matters; and’’. 
(d) REPEAL OF DEFINITION OF CRITICAL OCCUPA-
TIONAL SPECIALITY.—Section 668 of title 10, United 
States Code, is amended by striking subsection (d). 
SEC. 914. INDEPENDENT ASSESSMENT OF COMBATANT 
COMMAND STRUCTURE. 
(a) ASSESSMENT REQUIRED.—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 entity with appropriate expertise to conduct an 
assessment on combatant command structure, and to pro-
vide recommendations for improving the overall effective-
ness of combatant command structures. 
(b) ELEMENTS.—The assessment shall include an ex-
amination of the following: 
(1) The evolution of combatant command re-
quirements and resources over the last 15 years of 
conflict. 
(2) The organization, composition, and size of 
combatant commands. 
(3) The resources of combatant commands, in-
cluding the degree to which combatant commands 
are adequately resourced and the degree to which
408 
combatant command requirements for forces are 
met. 
(4) The benefits, drawbacks, and resource im-
plications of eliminating, consolidating, or altering 
the structure of combatant commands. 
(5) A comparison of combatant command struc-
tures with alternative structures, including Joint 
Task Force or task-organized forces below the com-
batant command level. 
(c) REPORT.—Not later than March 1, 2017, the 
Secretary of Defense shall submit to the congressional de-
fense committees a report on the findings and rec-
ommendations of the independent entity. 
Subtitle B—Other Matters 
SEC. 921. MODIFICATIONS TO CORROSION REPORT. 
(a) MODIFICATIONS TO REPORT TO CONGRESS.— 
Section 2228(e)(1) of title 10, United States Code, is 
amended— 
(1) in the matter preceding subparagraph (A), 
by inserting after ‘‘2009’’ the following: ‘‘and ending 
with the budget submitted on or before January 31, 
2021’’; 
(2) by amending subparagraph (B) to read as 
follows:
409 
‘‘(B) The estimated composite return on invest-
ment achieved by implementing the strategy, and 
documented in the assessments by the Department 
of Defense of completed corrosion projects and ac-
tivities.’’; 
(3) by amending subparagraph (D) to read as 
follows: 
‘‘(D) If the full amount of funding require-
ments is not requested in the budget, the reasons for 
not including the full amount and a description of 
the impact on readiness, logistics, and safety of not 
fully funding required corrosion prevention and miti-
gation activities’’; and 
(4) in subparagraph (F), by striking ‘‘pilot’’. 
(b) REPORT TO DIRECTOR OF CORROSION POLICY 
AND OVERSIGHT.—Section 2228(e)(2) of such title is 
amended— 
(1) by inserting ‘‘(A)’’ before ‘‘Each report’’; 
(2) by striking ‘‘a copy of’’ and all that follows 
through the period and inserting ‘‘a summary of the 
most recent report required by subparagraph (B)’’; 
and 
(3) by adding at the end the following new sub-
paragraph:
410 
‘‘(B) Not later than December 31 of each year, 
through December 31, 2020, the corrosion control and 
prevention executive of a military department shall submit 
to the Director of Corrosion Policy and Oversight a report 
containing recommendations pertaining to the corrosion 
control and prevention program of the military depart-
ment. Such report shall include recommendations for the 
funding levels necessary for the executive to carry out the 
duties of the executive under this section. The report re-
quired under this subparagraph shall— 
‘‘(i) provide a summary of key accomplish-
ments, goals, and objectives of the corrosion control 
and prevention program of the military department; 
and 
‘‘(ii) include the performance measures used to 
ensure that the corrosion control and prevention pro-
gram achieved the goals and objectives described in 
clause (i).’’. 
(c) CONFORMING REPEAL.—Section 903(b) of Public 
Law 110–417 (10 U.S.C. 2228 note) is amended by strik-
ing paragraph (5).
411 
SEC. 922. AUTHORITY TO EMPLOY CIVILIAN FACULTY MEM-
BERS AT JOINT SPECIAL OPERATIONS UNI-
VERSITY. 
Section 1595(c) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(5) The Joint Special Operations University.’’. 
SEC. 923. GUIDELINES FOR CONVERSION OF FUNCTIONS 
PERFORMED BY CIVILIAN OR CONTRACTOR 
PERSONNEL TO PERFORMANCE BY MILITARY 
PERSONNEL. 
Section 129a of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(g) GUIDELINES FOR PERFORMANCE OF CERTAIN 
FUNCTIONS BY MILITARY PERSONNEL.—(1) Except as 
provided in paragraph (2), no functions performed by ci-
vilian personnel or contractors may be converted to per-
formance by military personnel unless— 
‘‘(A) there is a direct link between the functions 
to be performed and a military occupational spe-
cialty; and 
‘‘(B) the conversion to performance by military 
personnel is cost effective, based on Department of 
Defense instruction 7041.04 (or any successor ad-
ministrative regulation, directive, or policy).
412 
‘‘(2) Paragraph (1) shall not apply to the following 
functions: 
‘‘(A) Functions required by law or regulation to 
be performed by military personnel. 
‘‘(B) Functions related to— 
‘‘(i) missions involving operation risks and 
combatant status under the Law of War; 
‘‘(ii) specialized collective and individual 
training requiring military-unique knowledge 
and skills based on recent operational experi-
ence; 
‘‘(iii) independent advice to senior civilian 
leadership in the Department of Defense requir-
ing military-unique knowledge and skills based 
on recent operational experience; and 
‘‘(iv) command and control arrangements 
under chapter 47 of this title (the Uniform 
Code of Military Justice).’’. 
SEC. 924. PUBLIC RELEASE BY INSPECTORS GENERAL OF 
REPORTS OF MISCONDUCT. 
(a) RELEASE OF INSPECTOR GENERAL OF THE DE-
PARTMENT OF DEFENSE ADMINISTRATIVE MISCONDUCT 
REPORTS.—Section 141 of title 10, United States Code, 
is amended by adding at the end the following new sub-
section:
413 
‘‘(c) Within 60 days after issuing a final report, the 
Inspector General of the Department of Defense shall pub-
licly release any reports of administrative investigations 
that confirm misconduct, including violations of Federal 
law and violations of policies of the Department of De-
fense, of members of the Senior Executive Service, individ-
uals who are employed in positions of a confidential or 
policy-determining character under schedule C of subpart 
C of part 213 of title 5 of the Code of Federal Regula-
tions, or commissioned officers in the Armed Forces in 
pay grades O–6 promotable and above. In releasing the 
reports, the Inspector General shall ensure that informa-
tion that would be protected under section 552 of title 5 
(commonly known as the ‘Freedom of Information Act’), 
section 552a of title 5 (commonly known as the ‘Privacy 
Act of 1974’), or section 6103 of the Internal Revenue 
Code of 1986 is not disclosed.’’. 
(b) RELEASE OF INSPECTOR GENERAL OF THE ARMY 
ADMINISTRATIVE MISCONDUCT REPORTS.—Section 3020 
of such title is amended by adding at the end the following 
new subsection: 
‘‘(f) Within 60 days after issuing a final report, the 
Inspector General of the Army shall publicly release any 
reports of administrative investigations that confirm mis-
conduct, including violations of Federal law and violations
414 
of policies of the Department of Defense, of members of 
the Senior Executive Service, individuals who are em-
ployed in positions of a confidential or policy-determining 
character under schedule C of subpart C of part 213 of 
title 5 of the Code of Federal Regulations, or commis-
sioned officers in the Armed Forces in pay grades O–6 
promotable and above. In releasing the reports, the In-
spector General shall ensure that information that would 
be protected under section 552 of title 5 (commonly known 
as the ‘Freedom of Information Act’), section 552a of title 
5 (commonly known as the ‘Privacy Act of 1974’), or sec-
tion 6103 of the Internal Revenue Code of 1986 is not 
disclosed.’’. 
(c) RELEASE OF NAVAL INSPECTOR GENERAL AD-
MINISTRATIVE MISCONDUCT REPORTS.—Section 5020 of 
such title is amended by adding at the end the following 
new subsection: 
‘‘(e) Within 60 days after issuing a final report, the 
Naval Inspector General shall publicly release any reports 
of administrative investigations that confirm misconduct, 
including violations of Federal law and violations of poli-
cies of the Department of Defense, of members of the Sen-
ior Executive Service, individuals who are employed in po-
sitions of a confidential or policy-determining character 
under schedule C of subpart C of part 213 of title 5 of
415 
the Code of Federal Regulations, or commissioned officers 
in the Armed Forces in pay grades O–6 promotable and 
above. In releasing the reports, the Naval Inspector Gen-
eral shall ensure that information that would be protected 
under section 552 of title 5 (commonly known as the 
‘Freedom of Information Act’), section 552a of title 5 
(commonly known as the ‘Privacy Act of 1974’), or section 
6103 of the Internal Revenue Code of 1986 is not dis-
closed.’’. 
(d) RELEASE OF INSPECTOR GENERAL OF THE AIR 
FORCE ADMINISTRATIVE MISCONDUCT REPORTS.—Sec-
tion 8020 of such title is amended by adding at the end 
the following new subsection: 
‘‘(f) Within 60 days after issuing a final report, the 
Inspector General of the Air Force shall publicly release 
any reports of administrative investigations that confirm 
misconduct, including violations of Federal law and viola-
tions of policies of the Department of Defense, of members 
of the Senior Executive Service, individuals who are em-
ployed in positions of a confidential or policy-determining 
character under schedule C of subpart C of part 213 of 
title 5 of the Code of Federal Regulations, or commis-
sioned officers in the Armed Forces in pay grades O–6 
promotable and above. In releasing the reports, the In-
spector General shall ensure that information that would
416 
be protected under section 552 of title 5 (commonly known 
as the ‘Freedom of Information Act’), section 552a of title 
5 (commonly known as the ‘Privacy Act of 1974’), or sec-
tion 6103 of the Internal Revenue Code of 1986 is not 
disclosed.’’. 
SEC. 925. MODIFICATIONS TO REQUIREMENTS FOR AC-
COUNTING FOR MEMBERS OF THE ARMED 
FORCES AND DEPARTMENT OF DEFENSE CI-
VILIAN EMPLOYEES LISTED AS MISSING. 
(a) LIMITATION OF DEFENSE POW/MIA ACCOUNT-
ING AGENCY TO MISSING PERSONS FROM PAST CON-
FLICTS.—Section 1501(a) of title 10, United States Code, 
is amended— 
(1) in paragraph (1)(A), by inserting ‘‘from 
past conflicts’’ after ‘‘matters relating to missing 
persons’’; 
(2) in paragraph (2)— 
(A) by striking subparagraph (A); 
(B) by redesignating subparagraphs (B), 
(C), (D), (E), and (F) as subparagraphs (A), 
(B), (C), (D), and (E), respectively; and 
(C) by inserting ‘‘from past conflicts’’ after 
‘‘missing persons’’ each place it appears; 
(3) in paragraph (4)—
417 
(A) by striking ‘‘for personal recovery (in-
cluding search, rescue, escape, and evasion) 
and’’; and 
(B) by inserting ‘‘from past conflicts’’ 
after ‘‘missing persons’’; and 
(4) by striking paragraph (5). 
(b) ACTION UPON DISCOVERY OR RECEIPT OF IN-
FORMATION.—Section 1505(c) of such title is amended by 
striking ‘‘designated Agency Director’’ in paragraphs (1), 
(2), and (3) and inserting ‘‘Secretary of Defense’’. 
(c) DEFINITION
OF ‘‘ACCOUNTED
FOR’’.—Section 
1513(3)(B) of such title is amended by inserting ‘‘to the 
extent practicable’’ after ‘‘are recovered’’. 
SEC. 926. REFORM OF NATIONAL SECURITY COUNCIL. 
(a) FINDINGS.—Congress finds the following: 
(1) The National Security Council has increas-
ingly micromanaged military operations and central-
ized decisionmaking within the staff of the National 
Security Council. The size of the staff has contrib-
uted this problem. 
(2) As stated by former Secretary of Defense 
Robert M. Gates, ‘‘It was the operational micro-
management that drove me nuts of White House 
and [National Security Council] staffers calling sen-
ior commanders out in the field and asking them
418 
questions, second guessing commanders’’, and by an-
other former Secretary of Defense Leon Panetta, 
‘‘[B]ecause of that centralization of that authority at 
the White House, there are too few voices being 
heard in terms of the ability to make decisions and 
that includes members of the cabinet.’’. 
(3) Gates stated, ‘‘You have 25 people working 
on a single military problem... They are going to be 
doing things they shouldn’t be doing,’’ and Panetta 
noted, ‘‘The National Security Council has grown 
enormously, which means you have a lot more staff 
people running around at the White House on these 
foreign policy issues.’’. 
(4) Press reports indicate that National Secu-
rity Council micromanagement has included select-
ing targets in ongoing military operations, specifying 
detailed parameters and limitations on military oper-
ations, and managing military planning and the exe-
cution of plans. 
(5) As stated in section 101(a) of the National 
Security Act of 1947 (50 U.S.C. 3021(a)), the 
‘‘function of the Council shall be to advise the Presi-
dent with respect to the integration of domestic, for-
eign, and military policies relating to the national se-
curity so as to enable the military services and the
419 
other departments and agencies of the Government 
to cooperate more effectively in matters involving the 
national security’’. 
(6) As stated in the November 1961 staff re-
ports and recommendations on ‘‘Organizing for Na-
tional Security’’ submitted to the Committee on Gov-
ernment Operations of the Senate by the Sub-
committee on National Policy Machinery, ‘‘The 
Council is an interagency committee: It can inform, 
debate, review, adjust, and validate... The Council is 
not a decisionmaking body; it does not itself make 
policy. It serves only in an advisory capacity to the 
President, helping him arrive at decisions which he 
alone can make.’’. 
(7) As noted in the 1987 Report of the Presi-
dent’s Special Review Board (commonly known as 
the ‘‘Tower Commission Report’’), ‘‘As a general 
matter, the [National Security Council] staff should 
not engage in the implementation of policy or the 
conduct of operations. This compromises their over-
sight role and usurps the responsibilities of the de-
partments and agencies.’’. 
(8) As noted in the ‘‘Addendum on Structure 
and Process Analyses: Volume II – Executive Office 
of the President,’’ accompanying the February 2001
420 
U.S. Commission on National Security/21st Century 
(commonly known as the ‘‘Hart-Rudman Commis-
sion’’), ‘‘[T]he degree to which the [National Secu-
rity Council] gets involved in operational issues 
raises a question of congressional oversight. Today 
there is limited congressional oversight of the [Na-
tional Security Council]... Assigning the [National 
Security Council] greater operational responsibility 
would likely result in calls for more congressional 
oversight and legislative control...’’. 
(9) According to analysis from the Brookings 
Institution’s National Security Council Project, the 
size of the National Security Council staff from the 
early 1960s to the mid-1990s remained consistently 
under 60 personnel. Since then, it has grown signifi-
cantly in size. 
(10) As former National Security Advisor, 
Zbigniew Brzezinski, wrote in ‘‘The NSC’s Midlife 
Crisis’’ in Foreign Policy, Winter 1987–1988, 
‘‘There is no magic number, but it would appear 
that for successful strategic planning and policy co-
ordination 30-40 senior staff members are probably 
adequate. However, to ensure effective supervision 
over policy implementation as well, the size of the 
staff should be somewhat larger. An optimal figure
421 
for the senior staff probably would be about 50 sen-
ior staff members.’’. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) the function of the National Security Coun-
cil, consistent with the National Security Act of 
1947 (50 U.S.C. 3001 et seq.), is to advise the 
President as an independent honest broker on na-
tional security matters, to coordinate national secu-
rity activities across departments and agencies, and 
to make recommendations to the President regard-
ing national security objectives and policy, and the 
size of the staff of the National Security Council 
should be appropriately aligned to this function; 
(2) the President is entitled to privacy in the 
Office of the President and to a confidential rela-
tionship with the National Security Advisor and the 
National Security Council; and 
(3) however, a National Security Council, en-
abled by a large staff, that assumes a central policy-
making or operational role is no longer advisory and 
should be publicly accountable to the American peo-
ple through Senate confirmation of its leadership 
and the activities of the Council subject to direct 
oversight by Congress.
422 
(c) AMENDMENTS TO NATIONAL SECURITY ACT OF 
1947.—Section 101 of the National Security Act of 1947 
(50 U.S.C. 3021), is amended— 
(1) in subsection (a)— 
(A) in paragraph (5), by striking ‘‘and’’; 
(B) in paragraph (6), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding after paragraph (6) the fol-
lowing new paragraph: 
‘‘(7) the Assistant to the President for National 
Security Affairs.’’; 
(2) in subsection (c), by striking ‘‘shall receive 
compensation at the rate of $10,000 a year.’’ and 
inserting ‘‘shall report to, and be under the general 
supervision of, the Assistant to the President for 
National Security Affairs.’’; 
(3) by redesignating subsections (d) through (l) 
as subsections (e) through (m), respectively; and 
(4) by inserting after subsection (c) the fol-
lowing new subsection: 
‘‘(d)(1)(A) Except as provided by subparagraph (B), 
the Assistant to the President for National Security Af-
fairs shall be appointed by the President. 
‘‘(B) If the staff of the Council exceeds 100 covered 
employees at any point during a term of the President,
423 
and for the duration of such term (without regard to any 
changes to the number of such covered employees), the 
Assistant to the President for National Security Affairs 
shall be appointed by the President, by and with the advice 
and consent of the Senate. 
‘‘(2)(A) Beginning on the date on which the staff of 
the Council exceeds 100 covered employees, the person ap-
pointed as the Assistant under paragraph (1)(A), the per-
son nominated by the President to be appointed the As-
sistant under paragraph (1)(B), or any other person des-
ignated by the President to serve as the Assistant in an 
acting capacity, may serve in an acting capacity for no 
longer than 210 days. 
‘‘(B) If the person nominated by the President to be 
appointed the Assistant under paragraph (1)(B) is re-
jected by the Senate, withdrawn, or returned to the Presi-
dent by the Senate, the President shall nominate another 
person and the person serving as the acting Assistant may 
continue to serve— 
‘‘(i) until the second nomination is confirmed; 
or 
‘‘(ii) for no more than 210 days after the sec-
ond nomination is rejected, withdrawn, or returned.
424 
‘‘(3) The President shall notify Congress in writing 
not more than seven days after the date on which the staff 
of the Council exceeds 100 covered employees. 
‘‘(4) In this subsection, the term ‘covered employees’ 
means each of the following officers and employees (count-
ed without regard to full-time equivalent basis): 
‘‘(A) Officers and employees occupying a posi-
tion funded by the Executive Office of the President 
performing a function of the Council. 
‘‘(B) Officers, employees, and members of the 
Armed Forces from any department, agency, or 
independent establishment of the executive branch of 
the Government that are on detail to the Council 
performing a function of the Council.’’. 
(d) CONFORMING AMENDMENT.—Section 3(12) of 
the International Religious Freedom Act of 1998 (22 
U.S.C. 6402(12)) is amended by striking ‘‘section 101(i)’’ 
and inserting ‘‘section 101(l)’’. 
Subtitle C—Department of the 
Navy and Marine Corps 
SEC. 931. REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY 
AND MARINE CORPS. 
(a) REDESIGNATION OF MILITARY DEPARTMENT.— 
The military department designated as the Department of
425 
the Navy is redesignated as the Department of the Navy 
and Marine Corps. 
(b) REDESIGNATION
OF SECRETARY
AND OTHER 
STATUTORY OFFICES.— 
(1) SECRETARY.—The position of the Secretary 
of the Navy is redesignated as the Secretary of the 
Navy and Marine Corps. 
(2) OTHER
STATUTORY
OFFICES.—The posi-
tions 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 redesig-
nated as the Under Secretary of the Navy and Ma-
rine Corps, the Assistant Secretaries of the Navy 
and Marine Corps, and the General Counsel of the 
Department of the Navy and Marine Corps, respec-
tively. 
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.’’.
426 
(b) ORGANIZATION OF DEPARTMENT.—The text of 
section 5011 of such title is amended to read as follows: 
‘‘The Department of the Navy and Marine Corps is sepa-
rately organized under the Secretary of the Navy and Ma-
rine Corps.’’. 
(c) POSITION OF SECRETARY.—Section 5013(a)(1) of 
such title is amended by striking ‘‘There is a Secretary 
of 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 
specified in subsections (a), (b), (c), and (d) (includ-
ing in section headings, subsection captions, tables
427 
of chapters, and tables of sections) and inserting 
‘‘Department of the Navy and Marine Corps’’ and 
‘‘Secretary of the Navy and Marine Corps’’, respec-
tively, in each case with the matter inserted to be in 
the same typeface and typestyle as the matter strick-
en. 
(2)(A) Sections 5013(f), 5014(b)(2), 5016(a), 
5017(2), 5032(a), and 5042(a) of such title are 
amended by striking ‘‘Assistant Secretaries of the 
Navy’’ and inserting ‘‘Assistant Secretaries of the 
Navy and Marine Corps’’. 
(B) The heading of section 5016 of such title, 
and the item relating to such section in the table of 
sections at the beginning of chapter 503 of such 
title, are each amended by inserting ‘‘and Marine 
Corps’’ after ‘‘of the Navy’’, with the matter in-
serted in each case to be in the same typeface and 
typestyle as the matter amended. 
SEC. 933. OTHER PROVISIONS OF LAW AND OTHER REF-
ERENCES. 
(a) TITLE 37, UNITED STATES CODE.—Title 37, 
United States Code, is amended by striking ‘‘Department 
of the Navy’’ and ‘‘Secretary of the Navy’’ each place they 
appear and inserting ‘‘Department of the Navy and Ma-
428 
rine Corps’’ and ‘‘Secretary of the Navy and Marine 
Corps’’, respectively. 
(b) OTHER REFERENCES.—Any reference in any law 
other than in title 10 or title 37, United States Code, or 
in any regulation, document, record, or other paper of the 
United States, to the Department of the Navy shall be 
considered to be a reference to the Department of the 
Navy and Marine Corps. Any such reference to an office 
specified in section 2(b) shall be considered to be a ref-
erence to that officer as redesignated by that section. 
SEC. 934. EFFECTIVE DATE. 
This subtitle and the amendments made by this sub-
title shall take effect on the first day of the first month 
beginning more than 60 days after the date of the enact-
ment of this Act. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
SEC. 1001. GENERAL TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.— 
(1) AUTHORITY.—Upon determination by the 
Secretary of Defense that such action is necessary in 
the national interest, the Secretary may transfer 
amounts of authorizations made available to the De-
partment of Defense in this division for fiscal year 
2017 between any such authorizations for that fiscal
429 
year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and 
be available for the same purposes as the authoriza-
tion to which transferred. 
(2) LIMITATION.—Except as provided in para-
graph (3), the total amount of authorizations that 
the Secretary may transfer under the authority of 
this section may not exceed $5,000,000,000. 
(3) EXCEPTION
FOR
TRANSFERS
BETWEEN 
MILITARY PERSONNEL AUTHORIZATIONS.—A trans-
fer of funds between military personnel authoriza-
tions under title IV shall not be counted toward the 
dollar limitation in paragraph (2). 
(b) LIMITATIONS.—The authority provided by sub-
section (a) to transfer authorizations— 
(1) may only be used to provide authority for 
items that have a higher priority than the items 
from which authority is transferred; and 
(2) may not be used to provide authority for an 
item that has been denied authorization by Con-
gress. 
(c) EFFECT
ON
AUTHORIZATION
AMOUNTS.—A 
transfer made from one account to another under the au-
thority of this section shall be deemed to increase the 
amount authorized for the account to which the amount
430 
is transferred by an amount equal to the amount trans-
ferred. 
(d) NOTICE
TO CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under 
subsection (a). 
SEC. 1002. REQUIREMENT TO TRANSFER FUNDS FROM DE-
PARTMENT OF DEFENSE ACQUISITION WORK-
FORCE DEVELOPMENT FUND TO THE TREAS-
URY. 
(a) TRANSFER REQUIRED.—During fiscal year 2017, 
the Secretary of Defense shall transfer, from amounts 
available in the Department of Defense Acquisition Work-
force Development Fund from amounts credited to the 
Fund pursuant to section 1705(d)(2) of title 10, United 
States Code, $475,000,000 to the Secretary of the Treas-
ury for deposit in the general fund of the Treasury. 
(b) ADDITIONAL AUTHORITY.—The transfer author-
ity provided by this section is in addition to any other 
transfer authority contained in this Act. 
SEC. 1003. REPORT ON AUDITABLE FINANCIAL STATE-
MENTS. 
Not later than 30 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report ranking 
all military departments and Defense Agencies in order
431 
of how advanced they are in achieving auditable financial 
statements as required by law. The report should not in-
clude information otherwise available in other reports to 
Congress. 
Subtitle B—Counter-Drug 
Activities 
SEC. 1011. EXTENSION OF AUTHORITY TO PROVIDE ADDI-
TIONAL SUPPORT FOR COUNTER-DRUG AC-
TIVITIES OF FOREIGN GOVERNMENTS. 
Section 1033(a)(2) of the National Defense Author-
ization Act for Fiscal Year 1998 (Public Law 105–85; 111 
Stat. 1881), as most recently amended by section 1012 
of the National Defense Authorization Act for Fiscal Year 
2016 (Public Law 114–92; 129 Stat. 963), is further 
amended by striking ‘‘September 30, 2017’’ and inserting 
‘‘September 30, 2019’’. 
SEC. 1012. SECRETARY OF DEFENSE REVIEW OF CUR-
RICULA AND PROGRAM STRUCTURES OF NA-
TIONAL GUARD COUNTERDRUG SCHOOLS. 
(a) IN GENERAL.—Section 901 of the Office of Na-
tional Drug Control Policy Reauthorization Act of 2006 
(Public Law 109–469; 32 U.S.C. 112 note) is amended— 
(1) by redesignating subsections (e) through (g) 
as subsections (f) through (h), respectively; and
432 
(2) by inserting after subsection (d) the fol-
lowing new subsection (e): 
‘‘(e) CURRICULUM REVIEW.—The Secretary of De-
fense may review and approve the curriculum and program 
structure of each school established under this section.’’. 
(b) TECHNICAL AMENDMENT.—Subsection (d)(1) of 
such section is amended by striking ‘‘section 112(b) of 
that title 32’’ and inserting ‘‘section 112(b) of title 32’’. 
SEC. 1013. EXTENSION OF AUTHORITY TO SUPPORT UNI-
FIED 
COUNTERDRUG 
AND 
COUNTERTER-
RORISM CAMPAIGN IN COLOMBIA. 
Section 1021 of the Ronald W. Reagan National De-
fense Authorization Act for Fiscal Year 2005 (Public Law 
108–375; 118 Stat. 2042), as most recently amended by 
section 1011(a) of the National Defense Authorization Act 
for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 962), 
is further amended— 
(1) in subsection (a), by striking ‘‘2017’’ and 
inserting ‘‘2018’’; and 
(2) in subsection (c), by striking ‘‘2017’’ and 
inserting ‘‘2018’’. 
SEC. 1014. UNMANNED AERIAL SYSTEMS TRAINING MIS-
SIONS. 
The Secretary of Defense shall coordinate unmanned 
aerial systems training missions along the southern border
433 
of the United States in order to support the Department 
of Homeland Security’s counter-narcotic trafficking ef-
forts. 
SEC. 1015. FUNDING FOR COUNTER NARCOTICS OPER-
ATIONS. 
(a) INCREASE.—Notwithstanding the amounts set 
forth in the funding tables in division D, the amount au-
thorized to be appropriated for drug interdiction and 
counterdrug activities, Defense-wide, as specified in the 
corresponding funding table in section 4501 is hereby in-
creased by $3,000,000. 
(b) OFFSET.—Notwithstanding the amounts set forth 
in the funding tables in division D, the amount authorized 
to be appropriated for operation and maintenance, as 
specified in the corresponding funding table in section 
4301, for administration and servicewide activities, De-
fense Logistics Agency (Line 160) is hereby reduced by 
$3,000,000. 
SEC. 1016. REPORT ON EFFORTS OF UNITED STATES 
SOUTHERN COMMAND OPERATION TO DE-
TECT AND MONITOR DRUG TRAFFICKING. 
The Secretary of Defense shall submit to Congress 
a report on the effectiveness of the United States South-
ern Command Operation to limit threats to the national
434 
security of the United States by detecting and monitoring 
drug trafficking, specifically heroin and fentanyl. 
Subtitle C—Naval Vessels and 
Shipyards 
SEC. 1021. DEFINITION OF SHORT-TERM WORK WITH RE-
SPECT TO OVERHAUL, REPAIR, OR MAINTE-
NANCE OF NAVAL VESSELS. 
Section 7299a(c)(4) of title 10, United States Code, 
is amended by striking ‘‘six months’’ and inserting ‘‘10 
months’’. 
SEC. 1022. WARRANTY REQUIREMENTS FOR SHIPBUILDING 
CONTRACTS. 
(a) IN GENERAL.—Chapter 633 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 7318. Warranty requirements for shipbuilding con-
tracts 
‘‘(a) REQUIREMENT.—A contracting officer for a 
contract for which funds are expended from the Ship-
building and Conversion, Navy account shall require, as 
a condition of the contract, that the work performed under 
the contract is covered by a warranty for a period of at 
least one year. 
‘‘(b) WAIVER.—If the contracting officer for a con-
tract covered by the requirement under subsection (a) de-
435 
termines that a limited liability of warranted work is in 
the best interest of the Government, the contracting offi-
cer may agree to limit the liability of the work performed 
under the contract to a level that the contracting officer 
determines is sufficient to protect the interests of the Gov-
ernment and in keeping with historical levels of warranted 
work on similar vessels.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘7318. Warranty requirements for shipbuilding contracts.’’. 
SEC. 1023. NATIONAL SEA-BASED DETERRENCE FUND. 
(a) TRANSFER AUTHORITY.—Section 1022(b)(1) of 
the National Defense Authorization Act for Fiscal Year 
2015 (Public Law 113–291; 128 Stat. 3487), as amended 
by section 1022(b) of the National Defense Authorization 
Act for Fiscal Year 2016 (Public Law 114–92), is further 
amended by striking ‘‘or 2017’’ and inserting ‘‘2017, or 
2018’’. 
(b) AUTHORITY FOR MULTIYEAR PROCUREMENT OF 
CRITICAL COMPONENTS TO SUPPORT CONTINUOUS PRO-
DUCTION.—Section 2218a of title 10, United States Code, 
is amended— 
(1) by redesignating subsections (i) and (j) as 
subsections (j) and (k), respectively; and
436 
(2) by inserting after subsection (h) the fol-
lowing new subsection (i): 
‘‘(i) AUTHORITY FOR MULTIYEAR PROCUREMENT OF 
CRITICAL COMPONENTS TO SUPPORT CONTINUOUS PRO-
DUCTION.—(1) To implement the continuous production 
of critical components, the Secretary of the Navy may use 
funds deposited in the Fund, in conjunction with funds 
appropriated for the procurement of other nuclear-pow-
ered vessels, to enter into one or more multiyear contracts 
(including economic ordering quantity contracts), for the 
procurement of critical contractor-furnished and Govern-
ment-furnished components for national sea-based deter-
rence vessels. The authority under this subsection extends 
to the procurement of equivalent critical parts, compo-
nents, systems, and subsystems common with and re-
quired for other nuclear-powered vessels. 
‘‘(2) Any contract entered into pursuant to para-
graph (1) shall provide that any obligation of the United 
States to make a payment under the contract is subject 
to the availability of appropriations for that purpose and 
that the total liability to the Government for the termi-
nation of the contract shall be limited to the total amount 
of funding obligated for the contract as of the date of the 
termination.’’.
437 
(c) DEFINITION OF NATIONAL SEA-BASED DETER-
RENCE VESSEL.—Subsection (k)(2) of such section, as re-
designated by subsection (b), is amended— 
(1) by striking ‘‘any vessel’’ and inserting ‘‘any 
submersible vessel constructed or purchased after 
fiscal year 2016 that is’’; and 
(2) by inserting ‘‘and’’ before ‘‘that carries’’. 
SEC. 1024. AVAILABILITY OF FUNDS FOR RETIREMENT OR 
INACTIVATION 
OF 
TICONDEROGA-CLASS 
CRUISERS OR DOCK LANDING SHIPS. 
(a) LIMITATION
ON RETIREMENT
OR INACTIVA-
TION.—None of the funds authorized to be appropriated 
by this Act or otherwise made available for the Depart-
ment of Defense for fiscal year 2017 may be obligated or 
expended— 
(1) to retire, prepare to retire, or inactivate a 
cruiser or dock landing ship; or 
(2) to place in a modernization status more 
than six cruisers and one dock landing ship identi-
fied in section 1026(a)(2) of the Carl Levin and 
Howard P. ‘‘Buck’’ McKeon National Defense Au-
thorization Act for Fiscal Year 2015 (Public Law 
113–291; 128 Stat. 3490). 
(b) HULL, MECHANICAL, AND ELECTRICAL MOD-
ERNIZATION.—Not more than 75 percent of the funds
438 
made available for the Office of the Secretary of Defense 
for fiscal year 2017 may be obligated until the Secretary 
of the Navy— 
(1) enters into a contract for the modernization 
industrial period associated with four cruisers and 
one dock landing ship referred to in section 
1026(a)(2) of the Carl Levin and Howard P. 
‘‘Buck’’ McKeon National Defense Authorization 
Act for Fiscal Year 2015 (Public Law 113–291; 128 
Stat. 3490); and 
(2) enters into a contract for the procurement 
of combat systems upgrades associated with six such 
cruisers and one such dock landing ship. 
SEC. 1025. RESTRICTIONS ON THE OVERHAUL AND REPAIR 
OF VESSELS IN FOREIGN SHIPYARDS. 
(a) IN GENERAL.—Section 7310(b)(1) of title 10, 
United States Code, is amended— 
(1) by striking ‘‘In the case’’ and inserting ‘‘(A) 
Except as provided in subparagraph (B), in the 
case’’; 
(2) by striking ‘‘during the 15-month’’ and all 
that follows through ‘‘United States)’’; 
(3) by inserting before the period at the end the 
following: ‘‘, other than in the case of voyage re-
pairs’’; and
439 
(4) by adding at the end the following new sub-
paragraph: 
‘‘(B) The Secretary of the Navy may waive the appli-
cation of subparagraph (A) to a contract award if the Sec-
retary determines that the waiver is essential to the na-
tional security interests of the United States.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on the later of the following 
dates: 
(1) The date of the enactment of the National 
Defense Authorization Act for Fiscal Year 2018. 
(2) October 1, 2017. 
Subtitle D—Counterterrorism 
SEC. 1031. FREQUENCY OF COUNTERTERRORISM OPER-
ATIONS BRIEFINGS. 
(a) IN GENERAL.—Subsection (a) of section 485 of 
title 10, United States Code is amended by striking ‘‘quar-
terly’’ and inserting ‘‘monthly’’. 
(b) SECTION HEADING.—The section heading for 
such section is amended by striking ‘‘Quarterly’’ and 
inserting ‘‘Monthly’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 23 of such title is amended 
by striking the item relating to section 485 and inserting 
the following new item: 
‘‘485. Monthly counterterrorism operations briefings.’’.
440 
SEC. 1032. PROHIBITION ON USE OF FUNDS FOR TRANSFER 
OR RELEASE OF INDIVIDUALS DETAINED AT 
UNITED STATES NAVAL STATION, GUANTA-
NAMO BAY, CUBA TO THE UNITED STATES. 
No amounts authorized to be appropriated or other-
wise made available for the Department of Defense may 
be used during the period beginning on the date of the 
enactment of this Act and ending on December 31, 2017, 
to transfer, release, or assist in the transfer or release to 
or within the United States, its territories, or possessions 
of Khalid Sheikh Mohammed or any other detainee who— 
(1) is not a United States citizen or a member 
of the Armed Forces of the United States; and 
(2) is or was held on or after January 20, 
2009, at United States Naval Station, Guantanamo 
Bay, Cuba, by the Department of Defense. 
SEC. 1033. PROHIBITION ON USE OF FUNDS TO CONSTRUCT 
OR MODIFY FACILITIES IN THE UNITED 
STATES 
TO 
HOUSE 
DETAINEES 
TRANS-
FERRED FROM UNITED STATES NAVAL STA-
TION, GUANTANAMO BAY, CUBA. 
(a) IN GENERAL.—No amounts authorized to be ap-
propriated or otherwise made available to the Department 
of Defense may be used during the period beginning on 
the date of the enactment of this Act and ending on De-
cember 31, 2017, to construct or modify any facility in
441 
the United States, its territories, or possessions to house 
any individual detained at Guantanamo for the purposes 
of detention or imprisonment in the custody or under the 
control of the Department of Defense unless authorized 
by Congress. 
(b) EXCEPTION.—The prohibition in subsection (a) 
shall not apply to any modification of facilities at United 
States Naval Station, Guantanamo Bay, Cuba. 
(c) INDIVIDUAL DETAINED AT GUANTANAMO DE-
FINED.—In this section, the term ‘‘individual detained at 
Guantanamo’’ has the meaning given that term in section 
1034(f)(2) of the National Defense Authorization Act for 
Fiscal Year 2016 (Public Law 114–92; 129 Stat. 971; 10 
U.S. C. 801 note). 
SEC. 1034. PROHIBITION ON USE OF FUNDS FOR TRANSFER 
OR RELEASE TO CERTAIN COUNTRIES OF IN-
DIVIDUALS DETAINED AT UNITED STATES 
NAVAL STATION, GUANTANAMO BAY, CUBA. 
No amounts authorized to be appropriated or other-
wise made available for the Department of Defense may 
be used during the period beginning on the date of the 
enactment of this Act and ending on December 31, 2017, 
to transfer, release, or assist in the transfer or release of 
any individual detained in the custody or under the control 
of the Department of Defense at United States Naval Sta-
442 
tion, Guantanamo Bay, Cuba, to the custody or control 
of any country, or any entity within such country, as fol-
lows: 
(1) Libya. 
(2) Somalia. 
(3) Syria. 
(4) Yemen. 
SEC. 1035. PROHIBITION ON USE OF FUNDS FOR REALIGN-
MENT OF FORCES AT OR CLOSURE OF 
UNITED STATES NAVAL STATION, GUANTA-
NAMO BAY, CUBA. 
No amounts authorized to be appropriated or other-
wise made available for the Department of Defense for 
fiscal year 2017 may be used— 
(1) to close or abandon United States Naval 
Station, Guantanamo Bay, Cuba; 
(2) to relinquish control of Guantanamo Bay to 
the Republic of Cuba; or 
(3) to implement a material modification to the 
Treaty Between the United States of America and 
Cuba signed at Washington, D.C. on May 29, 1934, 
that constructively closes United States Naval Sta-
tion, Guantanamo Bay.
443 
SEC. 1036. MODIFICATION OF CONGRESSIONAL NOTIFICA-
TION OF SENSITIVE MILITARY OPERATIONS. 
Section 130f of title 10, United States Code, is 
amended— 
(1) in subsection (a)— 
(A) in the first sentence, by inserting ‘‘no 
later than 48 hours’’ after ‘‘under this title’’; 
and 
(B) in the second sentence, by inserting 
‘‘and the National Defense Authorization Act 
for Fiscal Year 2017’’ before the period at the 
end; and 
(2) by striking subsection (d) and inserting the 
following: 
‘‘(d) SENSITIVE MILITARY OPERATION DEFINED.— 
In this section, the term ‘sensitive military operation’ 
means an operation— 
‘‘(1) conducted by the United States armed 
forces outside the United States, whether conducted 
by the United States acting alone or cooperatively; 
‘‘(2) conducted pursuant to— 
‘‘(A) the Authorization for the Use of Mili-
tary Force (Public Law 107–40; 50 U.S.C. 
1541); or 
‘‘(B) any other authority except— 
‘‘(i) a declaration of war; or
444 
‘‘(ii) a specific statutory authorization 
for the use of force other than the author-
ization referred to in subparagraph (A); 
‘‘(3) conducted outside a theater of major hos-
tilities; and 
‘‘(4) that is either— 
‘‘(A) a lethal operation; 
‘‘(B) a capture operation; or 
‘‘(C) an activity of self-defense, collective 
self defense, or in defense of a foreign partner 
during a cooperative operation.’’. 
SEC. 1037. COMPREHENSIVE STRATEGY FOR DETENTION 
OF CERTAIN INDIVIDUALS. 
(a) IN GENERAL.—Not later than July 19, 2017, the 
Secretary of Defense shall, in consultation with the Attor-
ney General and the Director of National Intelligence, 
submit to the appropriate congressional committees a re-
port setting forth the details of a comprehensive strategy 
for the detention of current and future individuals cap-
tured and held pursuant to the Authorization for Use of 
Military Force (Public Law 107–40) pending the end of 
hostilities. 
(b) COMPREHENSIVE STRATEGY.—The comprehen-
sive detention strategy required by subsection (a) shall 
contain the following:
445 
(1) A policy and plan applicable to individuals 
lawfully detained under the effective control of the 
United States. 
(2) A description of how intelligence informa-
tion is currently gathered from individuals captured 
in theaters of combat operation. 
(3) A plan for the disposition of individuals 
captured in the future. 
(4) A description of how the United States will 
acquire intelligence information in the future. 
(5) A plan for the disposition of individuals 
held pursuant to the Authorization for Use of Mili-
tary Force who are currently detained at the United 
States Naval Base, Guantanamo Bay, Cuba. 
(c) FORM.—The comprehensive detention strategy re-
quired under subsection (b) shall be submitted in unclassi-
fied form, but may include a classified annex. 
(d) APPROPRIATE CONGRESSIONAL COMMITTEES.— 
In this section, the term ‘‘appropriate congressional com-
mittees’’ means— 
(1) the congressional defense committees; 
(2) the Permanent Select Committee on Intel-
ligence of the House of Representatives and the Se-
lect Committee on Intelligence of the Senate; and
446 
(3) the Committee on Foreign Affairs of the 
House of Representatives and the Committee on 
Foreign Relations of the Senate. 
SEC. 1038. DECLASSIFICATION OF INFORMATION ON PAST 
TERRORIST 
ACTIVITIES 
OF 
DETAINEES 
TRANSFERRED FROM UNITED STATES NAVAL 
STATION, GUANTANAMO BAY, CUBA. 
(a) IN GENERAL.—Not later than 120 days after the 
date of the enactment of this Act, the Director of National 
Intelligence shall— 
(1) complete a declassification review of intel-
ligence reports prepared by the National Counterter-
rorism Center prior to Periodic Review Board ses-
sions or detainee transfers on the past terrorist ac-
tivities of individuals detained at United States 
Naval Station, Guantanamo Bay, Cuba, who were 
transferred or released from United States Naval 
Station, Guantanamo Bay; 
(2) make available to the public any informa-
tion declassified as a result of the declassification re-
view; and 
(3) submit to the appropriate congressional 
committees, consistent with the protection of sources 
and methods, a report setting forth—
447 
(A) the results of the declassification re-
view; and 
(B) if any information covered by the de-
classification review was not declassified pursu-
ant to the review, a justification for the deter-
mination not to declassify such information. 
(b) PAST TERRORIST ACTIVITIES.—For purposes of 
this section, the past terrorist activities of an individual 
shall include the terrorist activities conducted by the indi-
vidual before the transfer of the individual to the detention 
facility at United States Naval Station, Guantanamo Bay, 
including, at a minimum, the following: 
(1) The terrorist organization, if any, with 
which affiliated. 
(2) The terrorist training, if any, received. 
(3) The role in past terrorist attacks against 
the interests or allies of the United States. 
(4) The direct responsibility, if any, for the 
death of citizens of the United States or members of 
the Armed Forces. 
(5) Any admission of any matter specified in 
paragraphs (1) through (4). 
(c) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means—
448 
(1) the congressional defense committees; 
(2) the Committee on Foreign Affairs of the 
House of Representatives; 
(3) the Committee on Foreign Relations of the 
Senate; 
(4) the Permanent Committee on Intelligence of 
the House of Representatives; and 
(5) the Select Committee on Intelligence of the 
Senate. 
SEC. 1039. PROHIBITION ON ENFORCEMENT OF MILITARY 
COMMISSION RULINGS PREVENTING MEM-
BERS OF THE ARMED FORCES FROM CAR-
RYING OUT OTHERWISE LAWFUL DUTIES 
BASED ON MEMBER GENDER. 
(a) PROHIBITION.—No order, ruling, finding, or 
other determination of a military commission may be con-
strued or implemented to prohibit or restrict a member 
of the Armed Forces from carrying out duties otherwise 
lawfully assigned to such member to the extent that the 
basis for such prohibition or restriction is the gender of 
such member. 
(b) APPLICABILITY TO PRIOR ORDERS, ETC.—In the 
case of an order, ruling, finding, or other determination 
described in subsection (a) that was issued before the date 
of the enactment of this Act in a military commission and
449 
is still effective as of the date of the enactment of this 
Act, such order, ruling, finding, or determination shall be 
deemed to be vacated and null and void only to the extent 
of any prohibition or restriction on the duties of members 
of the Armed Forces that is based on the gender of mem-
bers. 
(c) MILITARY COMMISSION DEFINED.—In this sec-
tion, the term ‘‘military commission’’ means a military 
commission established under chapter 47A of title 10, 
United States Code, and any military commission other-
wise established or convened by law. 
Subtitle E—Miscellaneous 
Authorities and Limitations 
SEC. 1041. EXPANDED AUTHORITY FOR TRANSPORTATION 
BY THE DEPARTMENT OF DEFENSE OF NON- 
DEPARTMENT OF DEFENSE PERSONNEL AND 
CARGO. 
(a) TRANSPORTATION
OF ALLIED
AND CIVILIAN 
PERSONNEL AND CARGO.—Subsection (c) of section 2649 
of title 10, United States Code, is amended— 
(1) in the subsection heading, by striking 
‘‘PERSONNEL’’ and inserting ‘‘AND CIVILIAN PER-
SONNEL AND CARGO’’; 
(2) by striking ‘‘Until January 6, 2016, when’’ 
and inserting ‘‘When’’; and
450 
(3) by striking ‘‘allied forces or civilians’’, and 
inserting ‘‘allied and civilian personnel and cargo’’. 
(b) COMMERCIAL INSURANCE.—Such section is fur-
ther amended by adding at the end the following new sub-
section: 
‘‘(d) COMMERCIAL INSURANCE.—The Secretary may 
enter into a contract or other arrangement with one or 
more commercial providers to make insurance products 
available to non-Department of Defense shippers using the 
Defense Transportation System to insure against the loss 
or damage of the shipper’s cargo. Any such contract or 
arrangement shall provide that— 
‘‘(1) any insurance premium is collected by the 
commercial provider; 
‘‘(2) any claim for loss or damage is processed 
and paid by the commercial provider; 
‘‘(3) the commercial provider agrees to hold the 
United States harmless and waive any recourse 
against the United States for amounts paid to an in-
sured as a result of a claim; and 
‘‘(4) the contract between the commercial pro-
vider and the insured shall contain a provision 
whereby the insured waives any claim against the 
United States for loss or damage that is within the
451 
scope of enumerated risks covered by the insurance 
product.’’. 
(c) 
CONFORMING
CROSS-REFERENCE
AMEND-
MENTS.—Subsection (b) of such section is amended by 
striking ‘‘this section’’ both places it appears and inserting 
‘‘subsection (a)’’. 
SEC. 1042. LIMITATION ON RETIREMENT, DEACTIVATION, 
OR DECOMMISSIONING OF MINE COUNTER-
MEASURES SHIPS. 
Section 1090 of the National Defense Authorization 
Act for Fiscal Year 2016 (Public Law 111–92; 129 Stat. 
1016) is amended by striking subsection (b) and inserting 
the following: 
‘‘(b) LIMITATION
ON
RETIREMENT
OF
MCM 
SHIPS.— 
‘‘(1) IN GENERAL.—None of the funds author-
ized to be appropriated by this Act or otherwise 
made available for the Department of the Navy for 
fiscal year 2017 may be obligated or expended to re-
tire, deactivate, decommission, to prepare to retire, 
deactivate, decommission, or to place in storage 
backup inventory or reduced operating status any 
MCM-1 class ship. 
‘‘(2) WAIVER AUTHORITY.—
452 
‘‘(A) IN GENERAL.—The Secretary of the 
Navy may waive the limitation under paragraph 
(1) with respect to any MCM-1 class ship if the 
Secretary provides to the congressional defense 
committees certification that the operational 
test and evaluation for replacement capabilities 
for the ship is complete and such capabilities 
are available in sufficient quantities to ensure 
sufficient mine countermeasures capacity is 
available to meet requirements as set forth in 
the Join Strategic Capabilities Plan, the cam-
paign plans of the combatant commanders, and 
the Navy’s Force Structure Assessment. 
‘‘(B) REPORT.—The first time the Sec-
retary of the Navy exercises the waiver author-
ity under subparagraph (A), the Secretary shall 
submit to the congressional defense committees 
a report that includes— 
‘‘(i) the recommendations of the Sec-
retary regarding MCM force structure; 
‘‘(ii) the recommendations of the Sec-
retary regarding how to ensure the oper-
ational effectiveness of the surface MCM 
force through 2025 based on current capa-
bilities and capacity, replacement sched-
453 
ules, and service life extensions or retire-
ment schedules; 
‘‘(iii) an assessment of the MCM ves-
sels, including the decommissioned MCM-1 
and MCM-2 ships and the potential of 
such ships for reserve operating status; 
and 
‘‘(iv) an assessment of the Littoral 
Combat Ship MCM mission package incre-
ment one performance against the initial 
operational test and evaluation criteria.’’. 
SEC. 1043. EXTENSION OF AUTHORITY OF SECRETARY OF 
TRANSPORTATION TO ISSUE NON-PREMIUM 
AVIATION INSURANCE. 
Section 44310(b) of title 49, United States Code, is 
amended by striking ‘‘December 31, 2018’’ and inserting 
‘‘December 31, 2019’’. 
SEC. 1044. EVALUATION OF NAVY ALTERNATE COMBINA-
TION COVER AND UNISEX COMBINATION 
COVER. 
(a) MANDATORY POSSESSION OR WEAR DATE.—The 
Secretary of the Navy shall change the mandatory posses-
sion or wear date of the alternate combination cover or 
the unisex combination cover from October 31, 2016, to 
October 31, 2020.
454 
(b) EVALUATION AND REPORT.—The Secretary of 
the Navy may not implement or enforce any change to 
Navy female service dress uniforms until the Secretary 
submits to the Committees on Armed Services of the Sen-
ate and House of Representatives a report on the evalua-
tion of the Navy female service dress uniforms. Such eval-
uation shall include each of the following: 
(1) An identification of the operational need ad-
dressed by the alternate combination cover or the 
unisex combination cover. 
(2) An assessment of the individual cost of 
service dress uniform items to members of the 
Armed Forces as a percentage of their monthly pay. 
(3) The composition of each uniform item’s 
wear test group. 
(4) An identification of the costs to the Navy 
and to individual members of the Armed Forces for 
uniform changes identified in the Navy administra-
tive message 236/15 dated October 9, 2015. 
(5) The opinions of female members of the 
Navy active and reserve components.
455 
SEC. 1045. PROTECTION OF CERTAIN FEDERAL SPECTRUM 
OPERATIONS. 
Section 1004 of the Bipartisan Budget Act of 2015 
(Public Law 114–74; 47 U.S.C. 921 note) is amended by 
adding at the end the following: 
‘‘(d) PROTECTION OF CERTAIN FEDERAL SPECTRUM 
OPERATIONS.—If the report required by subsection (a) de-
termines that reallocation and auction of the spectrum de-
scribed in the report would harm national security by im-
pacting existing terrestrial Federal spectrum operations at 
the Nevada Test and Training Range, the Commission, 
in coordination with the Secretary shall, prior to the auc-
tion described in subsection (c)(1)(B), establish rules for 
licensees in such spectrum sufficient to mitigate harmful 
interference to such operations. 
‘‘(e) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to affect any requirement under 
section 1062(b) of the National Defense Authorization Act 
for Fiscal Year 2000 (47 U.S.C. 921 note; Public Law 
106–65).’’. 
SEC. 1046. TRANSPORTATION ON MILITARY AIRCRAFT ON A 
SPACE-AVAILABLE BASIS FOR MEMBERS AND 
FORMER MEMBERS OF THE ARMED FORCES 
WITH DISABILITIES RATED AS TOTAL. 
(a) AVAILABILITY
OF TRANSPORTATION.—Section 
2641b of title 10, United States Code, is amended—
456 
(1) by redesignating subsection (f) as sub-
section (g); and 
(2) by inserting after subsection (e) the fol-
lowing new subsection (f): 
‘‘(f) SPECIAL PRIORITY
FOR CERTAIN DISABLED 
VETERANS.—(1) The Secretary of Defense shall provide 
transportation on scheduled and unscheduled military 
flights within the continental United States and on sched-
uled overseas flights operated by the Air Mobility Com-
mand on a space-available basis for any member or former 
member of the armed forces with a disability rated as total 
on the same basis as such transportation is provided to 
members of the armed forces entitled to retired or retainer 
pay. 
‘‘(2) The transportation priority required by para-
graph (1) for veterans described in such paragraph applies 
whether or not the Secretary establishes the travel pro-
gram authorized by this section. 
‘‘(3) In this subsection, the term ‘disability rated as 
total’ has the meanings given that term in section 
1414(e)(3) of this title.’’. 
(b) EFFECTIVE DATE.—Subsection (f) of section 
2641b of title 10, United States Code, as added by sub-
section (a), shall take effect at the end of the 90-day pe-
riod beginning on the date of the enactment of this Act.
457 
SEC. 
1047. 
NATIONAL 
GUARD 
FLYOVERS 
OF 
PUBLIC 
EVENTS. 
(a) STATEMENT OF POLICY.—It shall be the policy 
of the Department of Defense that flyovers of public 
events in support of community relations activities may 
only be flown as part of an approved training mission at 
no additional expense to the Federal Government. 
(b) NATIONAL GUARD FLYOVER APPROVAL PROC-
ESS.—The Adjutant General of a State in which an Army 
National Guard or Air National Guard unit is based will 
be the approval authority for all Air National Guard and 
Army National Guard flyovers in that State, including any 
request for a flyover in any civilian domain at a nonavia-
tion related event. 
(c) FLYOVER RECORD MAINTENANCE; REPORT.— 
(1) RECORD MAINTENANCE.—The Secretary of 
Defense shall keep and maintain records of flyover 
requests, approvals, and the total costs of all flyover 
missions, including the costs of fuel, maintenance, 
and manpower, in a publicly accessible database that 
is updated annually. 
(2) GAO REPORT.—Not later than one year 
after the date of the enactment of this Act, the 
Comptroller General of the United States shall sub-
mit to the Committee on Armed Services of the 
House of Representatives and the Committee on
458 
Armed Services of the Senate a report on flyovers 
and the process whereby flyover requests are made 
and evaluated, including— 
(A) whether there is any cost to taxpayers 
associated with flyovers; 
(B) whether there is any appreciable public 
relations or recruitment value that comes from 
flyovers; and 
(C) the impact flyovers have to aviator 
training and readiness. 
(d) FLYOVER DEFINED.—In this section, the term 
‘‘flyover’’ means aviation support— 
(1) in which a straight and level flight limited 
to one pass by a single military aircraft, or by a sin-
gle formation of four or fewer military aircraft of 
the same type, from the same military department 
over a predetermined point on the ground at a spe-
cific time; 
(2) that does not involve aerobatics or dem-
onstrations; and 
(3) uses bank angles of up to 90 degrees if re-
quired to improve the spectator visibility of the air-
craft. 
(e) STATE DEFINED.—In this section, the term 
‘‘State’’ includes the District of Columbia, the Common-
459 
wealth of Puerto Rico, Guam, the Commonwealth of the 
Northern Mariana Islands, and any territory or possession 
of the United States. 
SEC. 1048. APPLICATION OF THE FREEDOM OF INFORMA-
TION ACT TO THE NATIONAL SECURITY 
COUNCIL. 
(a) IN GENERAL.—Section 552(f)(1) of title 5, 
United States Code (commonly referred to as the Freedom 
of Information Act), is amended by inserting ‘‘and the Na-
tional Security Council’’ after ‘‘the Executive Office of the 
President’’. 
(b) EFFECTIVE DATE; APPLICATION.— 
(1) EFFECTIVE DATE.—The amendment made 
by subsection (a) shall take effect on the date on 
which the first Assistant to the President for Na-
tional Security Affairs is appointed by the President, 
by and with the advice and consent of the Senate, 
pursuant to section 101(d)(1)(B) of the National Se-
curity Act of 1947 (50 U.S.C. 3021(d)(1)(B)), as 
added by title IX of this Act. 
(2) APPLICATION.—The amendment made by 
subsection (a) shall apply with respect to any record 
created by the National Security Council on or after 
the date specified in paragraph (1).
460 
SEC. 1049. REQUIREMENT RELATING TO TRANSFER OF EX-
CESS DEPARTMENT OF DEFENSE EQUIPMENT 
TO FEDERAL AND STATE AGENCIES. 
Section 2576a of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(g) PREFERENCE
FOR BORDER SECURITY PUR-
POSES.—(1) In transferring the personal property de-
scribed in paragraph (2) under this section, the Secretary 
of Defense may give first preference to the Department 
of Homeland Security and then to Federal and State 
agencies that agree to use the property primarily for the 
purpose of strengthening border security along the south-
ern border of the United States. 
‘‘(2) The personal property described in this section 
is— 
‘‘(A) unmanned aerial vehicles; 
‘‘(B) the Aerostat radar system; 
‘‘(C) night-vision goggles; and 
‘‘(D) high mobility multi-purpose wheel vehicles 
(commonly known as ‘humvees’).’’.
461 
Subtitle F—Studies and Reports 
SEC. 1061. TEMPORARY CONTINUATION OF CERTAIN DE-
PARTMENT OF DEFENSE REPORTING RE-
QUIREMENTS. 
(a) EXCEPTIONS TO REPORTS TERMINATION PROVI-
SION.—Section 1080 of the National Defense Authoriza-
tion Act for Fiscal Year 2016 (Public Law 114–92; 129 
Stat. 1000; 10 U.S.C. 111 note) does not apply to any 
report required to be submitted to Congress by the De-
partment of Defense, or by any officer, official, compo-
nent, or element of the Department, pursuant to a provi-
sion of law specified in this section, notwithstanding the 
enactment of the reporting requirement by an annual na-
tional defense authorization Act or the inclusion of the re-
port in the list of reports prepared by the Secretary of 
Defense pursuant to subsection (c) of such section 1080. 
(b) FINAL TERMINATION DATE FOR SUBMITTAL OF 
EXEMPTED REPORTS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), each report required pursuant to a provi-
sion of law specified in this section that is still re-
quired to be submitted to Congress as of January 
31, 2021, shall no longer be required to be sub-
mitted to Congress after that date.
462 
(2) 
REPORTS
EXEMPTED
FROM
TERMI-
NATION.—The termination dates specified in para-
graph (1) and section 1080 of the National Defense 
Authorization Act for Fiscal Year 2016 do not apply 
to the following: 
(A) The submission of the reports on the 
National Military Strategy and Risk Assess-
ment under section 153(b)(3) of title 10, 
United States Code. 
(B) The submission of the future-years de-
fense program (including associated annexes) 
under section 221 of title 10, United States 
Code. 
(C) The submission of the future-years 
mission budget for the military programs of the 
Department of Defense under section 221 of 
such title. 
(D) The submission of audits of con-
tracting compliance by the Inspector General of 
the Department of Defense under section 
1601(b) of the National Defense Authorization 
Act for Fiscal Year 2014 (Public Law 113–66; 
10 U.S.C. 2533a note). 
(c) REPORTS REQUIRED
BY TITLE 10, UNITED 
STATES CODE.—Subject to subsection (b), subsection (a)
463 
applies to reporting requirements contained in the fol-
lowing sections of title 10, United States Code: 
(1) Section 127b(f), relating to a report on the 
administration of Department of Defense rewards 
program against international terrorism. 
(2) Section 127d(d), relating to a report on 
provision of logistic support, supplies, and services 
to allied forces participating in combined operations. 
(3) Section 139(h), relating to a report on oper-
ational test and evaluation activities of the Depart-
ment of Defense, including the report component re-
quired by section 2399(g) on operational test and 
evaluation of defense acquisition programs. 
(4) Section 139b(d), relating to a report on ac-
tivities of the Deputy Assistant Secretary of Defense 
for Developmental Test and Evaluation. 
(5) Sections 153(c), relating to a report on the 
requirements of the combatant commands. 
(6) Section 179(f), relating to reports and as-
sessments regarding nuclear stockpile and stockpile 
stewardship program. 
(7) Section 196(d), relating to a report on the 
strategic plan reflecting the needs of the Depart-
ment of Defense with respect to test and evaluation 
facilities and resources.
464 
(8) Section 229, relating to submission of budg-
et information regarding Department of Defense 
programs for combating terrorism. 
(9) Section 231, relating to submission of naval 
vessel construction plan and related certification. 
(10) Section 238, relating to submission of a 
budget justification display regarding cyber mission 
forces. 
(11) Section 401(d), relating to a report on the 
provision of humanitarian and civic assistance in 
conjunction with military operations. 
(12) Section 494(b), relating to a report on the 
nuclear weapons stockpile of the United States. 
(13) Section 526(j), relating to a report on gen-
eral officer and flag officer numbers. 
(14) Section 981(c), relating to a report on en-
listed aide numbers. 
(15) Section 1557(e), relating to a report on 
any failure to achieve timeliness standard for dis-
position of applications before Corrections Boards. 
(16) Section 2011(e), relating to a report on 
training of special operations forces with friendly 
foreign forces.
465 
(17) Section 2166(i), relating to a report on the 
activities of the Western Hemisphere Institute for 
Security Cooperation. 
(18) Section 2218(h), relating to submission of 
budget requests for the National Defense Sealift 
Fund. 
(19) Section 2228(e), relating to a report on 
the long-term strategy and related matters regarding 
reducing corrosion and its effects on military equip-
ment and infrastructure. 
(20) Section 2229a, relating to a report on the 
status of materiel in the prepositioned stocks. 
(21) Section 2249c(c), relating to a report on 
the administration of the Regional Defense Com-
bating Terrorism Fellowship Program. 
(22) Section 2275, relating to reports on major 
satellite acquisition programs, including report up-
dates under subsection (f) of such section. 
(23) Section 2276(e), relating to a report on 
the funds, services, and equipment accepted and 
used in connection with commercial space launch co-
operation. 
(24) Section 2445b, relating to submission of 
budget justification documents regarding major
466 
automated information system programs and other 
major information technology investment programs. 
(25) Section 2464(d), relating to a report on 
core depot-level maintenance and repair capabilities. 
(26) Section 2466(d), relating to a report on 
expenditures for performance of depot-level mainte-
nance and repair workloads. 
(27) Section 2561(c), relating to a report on 
the use of humanitarian assistance for providing 
transportation of humanitarian relief and for other 
humanitarian purposes. 
(28) Section 2684a(g), relating to a report on 
projects undertaken under agreements to limit en-
croachments and other constraints on military train-
ing, testing, and operations. 
(29) Section 2687a, relating to reports on the 
status of overseas closures and realignments and 
master plans, expenditures from the Department of 
Defense Overseas Facility Investment Recovery Ac-
count, and agreement of settlement with host coun-
tries regarding the release of facility improvements 
made by the United States. 
(30) Section 2711, relating to a report on de-
fense environmental programs.
467 
(31) Sections 2831(e) and 2884(b)(4), relating 
to reports on quarters for general or flag officers. 
(32) Sections 2884(b) and (c), relating to re-
ports on the Department of Defense Housing Funds, 
provision of a basic allowance for housing to mem-
bers of the Armed Forces living in military 
privatized housing, plans for housing privatization 
activities, and the status of oversight and account-
ability measures for military housing privatization 
projects. 
(33) Section 2912(d), relating to a statement of 
the energy cost savings available for obligation. 
(34) Section 2925, relating to reports on De-
partment of Defense energy management and oper-
ational energy. 
(35) Section 4721(e), relating to submission of 
a budget request and related materials regarding 
Army National Military Cemeteries. 
(36) Section 7310(c), relating to a report on re-
pairs and maintenance performed on certain naval 
vessels in a foreign shipyard. 
(37) Section 10541, relating to a report on 
equipment of the National Guard and other reserve 
components.
468 
(38) Section 10543, relating to a component of 
the future-years defense program regarding National 
Guard and other reserve components equipment pro-
curement and military construction funding and as-
sociated annexes and report. 
(d) REPORTS REQUIRED BY NATIONAL DEFENSE 
AUTHORIZATION ACT FOR FISCAL YEAR 2015.—Subject 
to subsection (b), subsection (a) applies to reporting re-
quirements contained in the following sections of the Carl 
Levin and Howard P. ‘‘Buck’’ McKeon National Defense 
Authorization Act for Fiscal Year 2015 (Public Law 113– 
291): 
(1) Section 232(e) (10 U.S.C. 2358 note), re-
lating to a report on the pilot program on assign-
ment to the Defense Advanced Research Projects 
Agency of certain private sector personnel. 
(2) Section 546(d) (10 U.S.C. 1561 note), re-
lating to a report on activities of the Defense Advi-
sory Committee on Investigation, Prosecution, and 
Defense of Sexual Assault in the Armed Forces. 
(3) Section 1003 (10 U.S.C. 221 note), relating 
to reporting of balances carried forward by the De-
partment of Defense at the end of each fiscal year.
469 
(4) Section 1026(d) (128 Stat. 3490), relating 
to a report on the status of the modernization of Ti-
conderoga-class cruisers and dock landing ships. 
(5) Section 1055 (128 Stat. 3498), relating to 
a report on the Air Force response to the rec-
ommendations of the National Commission on the 
Structure of the Air Force. 
(6) Section 1204(b) (10 U.S.C. 2249e note), re-
lating to a report on administration of section 2249e 
of title 10, United States Code. 
(7) Section 1205(e) (128 Stat. 3537), relating 
to a report on the assessment of programs carried 
out under section 2282(f) of title 10, United States 
Code. 
(8) Section 1206(e) (10 U.S.C. 2282 note), re-
lating to a report on the training of security forces 
and associated security ministries of foreign coun-
tries to promote respect for the rule of law and 
human rights. 
(9) Section 1207(d) (10 U.S.C. 2342 note), re-
lating to a report on loan of personnel protection 
and personnel survivability equipment to military 
forces of foreign nations. 
(10) Section 1211 (128 Stat. 3544), relating to 
a report on programs carried out by the Department
470 
of Defense to provide training, equipment, or other 
assistance or reimbursement to foreign security 
forces. 
(11) Section 1225 (128 Stat. 3550), relating to 
a report on enhancing security and stability in Af-
ghanistan. 
(12) Section 1245 (128 Stat. 3566), relating to 
a report on military and security developments in-
volving the Russian Federation. 
(13) Section 2821(a)(3) (10 U.S.C. 2687 note), 
relating to notice of any adjustment to the funding 
limitation on implementation of the Record of Deci-
sion for the relocation of Marine Corps forces to 
Guam. 
(e) REPORTS REQUIRED
BY NATIONAL DEFENSE 
AUTHORIZATION ACT FOR FISCAL YEAR 2014.—Subject 
to subsection (b), subsection (a) applies to reporting re-
quirements contained in the following sections of the Na-
tional Defense Authorization Act for Fiscal Year 2014 
(Public Law 113–66): 
(1) Section 704(e) (10 U.S.C. 1074 note), re-
lating to a report on the pilot program on investiga-
tional treatment of members of the Armed Forces 
for traumatic brain injury and post-traumatic stress 
disorder.
471 
(2) Sections 713(f), (g), and (h) (10 U.S.C. 
1071 note), relating to providing a financial sum-
mary of efforts to develop interoperable electronic 
health records, updates on the progress of data shar-
ing, and information on executive committee activi-
ties. 
(f) REPORTS REQUIRED BY NATIONAL DEFENSE AU-
THORIZATION ACT FOR FISCAL YEAR 2013.—Subject to 
subsection (b), subsection (a) applies to reporting require-
ments contained in the following sections of the National 
Defense Authorization Act for Fiscal Year 2013 (Public 
Law 112–239): 
(1) Section 1009 (126 Stat. 1906), relating to 
a report on the use of funds in the Drug Interdic-
tion and Counter-Drug Activities, Defense-wide ac-
count. 
(2) Section 1023 (126 Stat. 1911), relating to 
a report on recidivism of individuals who have been 
detained at United States Naval Station, Guanta-
namo Bay, Cuba. 
(g) REPORTS REQUIRED BY NATIONAL DEFENSE 
AUTHORIZATION ACT FOR FISCAL YEAR 2011.—Subject 
to subsection (b), subsection (a) applies to reporting re-
quirements contained in the following sections of the Ike
472 
Skelton National Defense Authorization Act for Fiscal 
Year 2011 (Public Law 111–383): 
(1) Section 123 (10 U.S.C. 167 note), relating 
to a report on use of combat mission requirements 
funds. 
(2) Section 1631(d) (10 U.S.C. 1561 note), re-
lating to a report on sexual assaults involving mem-
bers of the Armed Forces and improvement to sex-
ual assault prevention and response program. 
(h) REPORTS REQUIRED BY NATIONAL DEFENSE 
AUTHORIZATION ACT FOR FISCAL YEAR 2010.—Subject 
to subsection (b), subsection (a) applies to reporting re-
quirements contained in the following sections of the Na-
tional Defense Authorization Act for Fiscal Year 2010 
(Public Law 111–84): 
(1) Section 711(d) (10 U.S.C. 1071 note), re-
lating to a report on the comprehensive policy on 
pain management by the Military Health Care Sys-
tem. 
(2) Section 1003(b) (10 U.S.C. 2222 note), re-
lating to a report on implementation by the Depart-
ment of Defense of the Financial Improvement and 
Audit Readiness Plan. 
(3) Section 1245 (123 Stat. 2542), relating to 
a report on military power of Iran.
473 
(i) REPORTS REQUIRED BY OTHER LAWS.—Subject 
to subsection (b), subsection (a) applies to reporting re-
quirements contained in the following provisions of law: 
(1) Section 717(c) of the National Defense Au-
thorization Act for Fiscal Year 1996 (Public Law 
104–106; 10 U.S.C. 1073 note), relating to a report 
on TRICARE Program effectiveness. 
(2) Section 1202 of the National Defense Au-
thorization Act for Fiscal Year 2000 (Public Law 
106–65; 10 U.S.C. 113 note), relating to a report on 
military and security developments involving the 
People’s Republic of China. 
(3) Section 1208(f) of the Ronald W. Reagan 
National Defense Authorization Act for Fiscal Year 
2005 (Public Law 108–375; 118 Stat. 2086), relat-
ing to a report on the provision of support for spe-
cial operations to combat terrorism. 
(4) Section 1405(d) of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 
109–163; 10 U.S.C. 801 note), relating to a report 
on any modification made to the procedures for sta-
tus review of detainees outside the United States. 
(5) Section 1017(e) of the John Warner Na-
tional Defense Authorization Act for Fiscal Year 
2007 (Public Law 109–364; 10 U.S.C. 2631 note),
474 
relating to a report regarding overhaul, repair, and 
maintenance performed on certain vessels in the 
United States. 
(6) Section 1034(d) of the National Defense 
Authorization Act for Fiscal Year 2008 (Public Law 
110–181; 122 Stat. 309), relating to a report on the 
provision of support for non-Federal development 
and testing of material for chemical agent defense. 
(7) Section 1236 of the National Defense Au-
thorization Act for Fiscal Year 2012 (Public Law 
112–81; 125 Stat. 1641), relating to a report on 
military and security developments involving the 
Democratic People’s Republic of Korea. 
(8) Section 103A(b)(3) of the Sikes Act (16 
U.S.C. 670c–1(b)(3)), relating to a report on the 
disposition of certain appropriated funds provided 
under cooperative and interagency agreements for 
land management on installations. 
(9) Section 1511(h) of the Armed Forces Re-
tirement Home Act of 1991 (24 U.S.C. 411(h)), re-
lating to a report on the financial and other affairs 
of the Armed Forces Retirement Home. 
(10) Section 901(f) of the Office of National 
Drug Control Policy Reauthorization Act of 2006 
(Public Law 109–469; 32 U.S.C. 112 note), as
475 
added by section 1008 of the National Defense Au-
thorization Act for Fiscal Year 2013 (Public Law 
112–239), relating to a report on the activities of 
the National Guard counterdrug schools. 
(11) Section 14 of the Strategic and Critical 
Materials Stock Piling Act (50 U.S.C. 98h–5), relat-
ing to a report on the requirements of the National 
Defense Stockpile. 
(12) Sections 1412(i) and (j) of the National 
Defense Authorization Act, 1986 (50 U.S.C. 1521), 
as amended by section 1421 of the Ike Skelton Na-
tional Defense Authorization Act for Fiscal Year 
2011 (Public Law 111–383), relating to reports on 
destruction of existing stockpile of lethal chemical 
agents and munitions, including implementation by 
the United States of its chemical weapons destruc-
tion obligations under the Chemical Weapons Con-
vention. 
(13) Section 1703 of the National Defense Au-
thorization Act for Fiscal Year 1994 (50 U.S.C. 
1523), relating to a report on chemical and biologi-
cal warfare defense. 
(14) Section 234 of the National Defense Au-
thorization Act for Fiscal Year 1998 (50 U.S.C. 
2367), relating to a report on acquisition of tech-
476 
nology relating to weapons of mass destruction and 
their threat. 
(15) Section 105A(b) of the Uniformed and 
Overseas Citizens Absentee Voting Act (52 U.S.C. 
20308(b)), as added by section 586 of the National 
Defense Authorization Act for Fiscal Year 2010 
(Public Law 111–84), relating to a report on effec-
tiveness of activities and utilization of certain proce-
dures under Federal Voting Assistance Program. 
(j) CONFORMING AMENDMENT.—Section 1080(a) of 
the National Defense Authorization Act for Fiscal Year 
2016 (Public Law 114–92; 129 Stat. 1000; 10 U.S.C. 111 
note) is amended— 
(1) by striking ‘‘on the date that is two years 
after the date of the enactment of this Act’’ and in-
serting ‘‘November 25, 2017’’; and 
(2) by striking ‘‘effective’’. 
SEC. 1062. MATTERS FOR INCLUSION IN REPORT ON DES-
IGNATION OF COUNTRIES FOR WHICH RE-
WARDS MAY BE PAID UNDER DEPARTMENT 
OF DEFENSE REWARDS PROGRAM. 
Section 127b(h) of title 10, United States Code, is 
amended— 
(1) in paragraph (2), by inserting ‘‘and jus-
tification’’ after ‘‘reason’’; and
477 
(2) by amending paragraph (3) to read as fol-
lows: 
‘‘(3) An estimate of the amount or value of the 
rewards to be paid as monetary payment or pay-
ment-in-kind under this section.’’. 
SEC. 1063. CONGRESSIONAL NOTIFICATION OF BIOLOGICAL 
SELECT AGENT AND TOXIN THEFT, LOSS, OR 
RELEASE INVOLVING THE DEPARTMENT OF 
DEFENSE. 
(a) NOTIFICATION REQUIREMENT.—Not later than 
15 days after notice of any theft, loss, or release of a bio-
logical select agent or toxin involving the Department of 
Defense is provided to the Centers for Disease Control and 
Prevention or the Animal and Plant Health Inspection 
Service, as specified by section 331.19 of part 7 of the 
Code of Federal Regulations, the Secretary of Defense 
shall provide to the congressional defense committees no-
tice of such theft, loss, or release. 
(b) ELEMENTS.—Notice of a theft, loss, or release 
of a biological select agent or toxin under subsection (a) 
shall include each of the following: 
(1) The name of the agent or toxin and any 
identifying information, including the strain or other 
relevant characterization information.
478 
(2) An estimate of the quantity of the agent or 
toxin stolen, lost, or released. 
(3) The location or facility from which the 
theft, loss, or release occurred. 
(4) In the case of a release, any hazards posed 
by the release and the number of individuals poten-
tially exposed to the agent or toxin. 
(5) Actions taken to respond to the theft, loss, 
or release. 
SEC. 1064. REPORT ON SERVICE-PROVIDED SUPPORT TO 
UNITED 
STATES 
SPECIAL 
OPERATIONS 
FORCES. 
(a) REPORT REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall submit to the congressional defense com-
mittees a written report on common service support con-
tributed from each of the military services toward special 
operations forces. Such report shall include— 
(1) detailed information about the resources al-
located by each military service for combat support, 
combat service support, and base operating support 
for special operations forces; and 
(2) an assessment of the specific effects that fu-
ture manpower and force structure changes are like-
ly to have on the capability of each of the military
479 
services to provide common service support to special 
operations forces. 
(b) ANNUAL UPDATES.—For each of fiscal years 
2018 through 2020, the Secretary of Defense shall submit 
to the congressional defense committees an update to the 
report required under subsection (a). 
(c) FORM OF REPORT.—The report required under 
subsection (a) and each update provided under subsection 
(b) shall be submitted in unclassified form, but may con-
tain a classified annex. 
SEC. 1065. REPORT ON CITIZEN SECURITY RESPONSIBIL-
ITIES IN THE NORTHERN TRIANGLE OF CEN-
TRAL AMERICA. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
and the Secretary of State shall jointly prepare and sub-
mit to the appropriate congressional committees a report 
on military units that have been assigned to policing or 
citizen security responsibilities in Guatemala, Honduras, 
and El Salvador. 
(b) MATTERS TO BE INCLUDED.—The report re-
quired by subsection (a) shall include each of the fol-
lowing: 
(1) The following information, as of the date of 
the enactment of this Act, with respect to military
480 
units assigned to policing or citizen security respon-
sibilities in each of Guatemala, Honduras, and El 
Salvador: 
(A) The proportion of individuals in each 
such country’s military who participate in polic-
ing or citizen security activities relative to the 
total number of individuals in that country’s 
military. 
(B) Of the military units assigned to polic-
ing or citizen security responsibilities, the types 
of units conducting police activities. 
(C) The role of the Department of Defense 
and the Department of State in training indi-
viduals for purposes of participation in such 
military units. 
(D) The number of individuals who partici-
pated in such military units who received train-
ing by the Department of Defense, and the 
types of training they received. 
(2) Any other information that the Secretary of 
Defense or the Secretary of State determines to be 
necessary to help better understand the relationships 
of the militaries of Guatemala, Honduras, and El 
Salvador to public security in such countries.