H. R. 2810—133 
(B) in paragraph (2), by inserting before the period 
at the end the following: ‘‘or the Department of Homeland 
Security, as applicable’’. 
(d) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of section 9314a of 
title 10, United States Code, is amended to read as follows: 
‘‘§ 9314a. United States Air Force Institute of Technology: 
admission of certain private sector civilians’’. 
(2) TABLE OF SECTIONS.—The table of sections at the begin-
ning of chapter 901 of title 10, United States Code, is amended 
by striking the item relating to section 9314a and inserting 
the following new item: 
‘‘9314a. United States Air Force Institute of Technology: admission of certain pri-
vate sector civilians.’’. 
SEC. 582. CONDITIONAL DESIGNATION OF EXPLOSIVE ORDNANCE DIS-
POSAL CORPS AS A BASIC BRANCH OF THE ARMY. 
(a) CONDITIONAL DESIGNATION.—Subject to subsection (b), sec-
tion 3063(a) of title 10, United States Code, is amended— 
(1) in paragraph (12), by striking ‘‘and’’; 
(2) by redesignating paragraph (13) as paragraph (14); 
and 
(3) by inserting after paragraph (12) the following new 
paragraph (13): 
‘‘(13) Explosive Ordnance Disposal Corps; and’’. 
(b) DELAYED EFFECTIVE DATE AND CONDITION ON EXECUTION.— 
(1) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect on October 1, 2020, but only if the report 
required by paragraph (2) is not submitted before that date 
as required by such paragraph. 
(2) REPORTING REQUIREMENT.—Not later than September 
30, 2020, the Secretary of the Army shall submit to the Commit-
tees on Armed Services of the Senate and the House of Rep-
resentatives a report containing certifications that the following 
actions have occurred as of that date: 
(A) The defense budget materials display funding 
requirements for explosive ordnance disposal separately 
and a program of record is established and maintained 
for explosive ordnance disposal. 
(B) A process has been established to ensure that, 
by not later than five years after the date of the enactment 
of this Act, there is, and will continue to be, at least 
one general officer in the Army qualified regarding issues 
involving explosive ordnance disposal to ensure officer 
professional development and upward mobility. 
(C) The Ordnance Personnel Proponency Office is, and 
will continue to be, manned with an explosive ordnance 
disposal officer to oversee explosive ordnance disposal 
officer and enlisted personnel proponency. 
(D) Explosive ordnance disposal officer education has 
been included in a basic officer leadership course, a cap-
tains career course, and a policy and planning course spe-
cific to explosive ordnance disposal as part of intermediate 
level education and pre-command courses. 
(E) The office of the Army Deputy Chief of Staff, G8, 
and the office of the Army Deputy Chief of Staff, G3,
H. R. 2810—134 
have, and will continue to be, manned with explosive ord-
nance disposal officers responsible for the decision manage-
ment 
decision 
packages, 
ammunition 
organizational 
integration, and force modernization related to explosive 
ordnance disposal. 
(F) The Army has established and maintained explosive 
ordnance disposal cells at the Army Forces Command, 
Army Service Component Commands, Army Special Oper-
ations Command, Army Training and Doctrine Command, 
and the Army Capability and Integration Center. 
(3) NOTICE OF REPORT.—The Secretary of the Army shall 
notify the Law Revision Counsel of the House of Representa-
tives of the submission of the report under paragraph (2) so 
that the Law Revision Counsel does not execute the amend-
ments made by subsection (a). 
SEC. 583. DESIGNATION OF OFFICE WITHIN OFFICE OF THE SEC-
RETARY OF DEFENSE TO OVERSEE USE OF FOOD ASSIST-
ANCE PROGRAMS BY MEMBERS OF THE ARMED FORCES 
ON ACTIVE DUTY. 
Not later than 90 days after the date of the enactment of 
this Act, the Secretary of Defense shall designate an office or 
official within the Office of the Secretary of Defense for purposes 
as follows: 
(1) To discharge responsibility for overseeing the efforts 
of the Department of Defense to collect, analyze, and monitor 
data on the use of food assistance programs by members of 
the Armed Forces on active duty. 
(2) To establish and maintain relationships with other 
departments and agencies of the Federal Government to facili-
tate the discharge of the responsibility specified in paragraph 
(1). 
TITLE VI—COMPENSATION AND OTHER 
PERSONNEL BENEFITS 
Subtitle A—Pay and Allowances 
Sec. 601. Annual adjustment of basic monthly pay. 
Sec. 602. Prohibiting collection of additional amounts from members living in units 
under Military Housing Privatization Initiative. 
Sec. 603. Limitation on modification of payment authority for Military Housing Pri-
vatization Initiative housing. 
Sec. 604. Housing treatment for certain members of the Armed Forces, and their 
spouses and other dependents, undergoing a permanent change of sta-
tion within the United States. 
Sec. 605. Extension of authority to provide temporary increase in rates of basic al-
lowance for housing under certain circumstances. 
Sec. 606. Reevaluation of BAH for the military housing area including Staten Is-
land. 
Subtitle B—Bonus and Special and Incentive Pays 
Sec. 611. One-year extension of certain bonus and special pay authorities for re-
serve forces. 
Sec. 612. One-year extension of certain bonus and special pay authorities for health 
care professionals. 
Sec. 613. One-year extension of special pay and bonus authorities for nuclear offi-
cers. 
Sec. 614. One-year extension of authorities relating to title 37 consolidated special 
pay, incentive pay, and bonus authorities. 
Sec. 615. One-year extension of authorities relating to payment of other title 37 bo-
nuses and special pays.
H. R. 2810—135 
Sec. 616. Report regarding the national pilot shortage. 
Sec. 617. Special aviation incentive pay and bonus authorities for enlisted members 
who operate remotely piloted aircraft. 
Sec. 618. Technical and conforming amendments relating to 2008 consolidation of 
special pay authorities. 
Subtitle C—Disability Pay, Retired Pay, and Survivor Benefits 
Sec. 621. Permanent extension and cost-of-living adjustments of special survivor in-
demnity allowances under the Survivor Benefit Plan. 
Sec. 622. Adjustments to Survivor Benefit Plan for members electing lump sum 
payments of retired pay under the modernized retirement system for 
members of the uniformed services. 
Sec. 623. Technical correction regarding election to participate in modernized re-
tirement system for reserve component members experiencing a break 
in service. 
Sec. 624. Technical corrections to use of member’s current pay grade and years of 
service in a division of property involving disposable retired pay. 
Sec. 625. Continuation pay for the Coast Guard. 
Subtitle D—Other Matters 
Sec. 631. Land conveyance authority, Army and Air Force Exchange Service prop-
erty, Dallas, Texas. 
Sec. 632. Authority for the Secretaries of the military departments to provide for 
care of remains of those who die on active duty and are interred in a 
foreign cemetery. 
Sec. 633. Construction of domestic source requirement for footwear furnished to en-
listed members of the Armed Forces on initial entry into the Armed 
Forces. 
Sec. 634. Review and update of regulations governing debt collectors interactions 
with unit commanders of members of the Armed Forces. 
Subtitle A—Pay and Allowances 
SEC. 601. ANNUAL ADJUSTMENT OF BASIC MONTHLY PAY. 
The adjustment in the rates of monthly basic pay required 
by subsection (a) of section 1009 of title 37, United States Code, 
to be made on January 1, 2018, shall take effect, notwithstanding 
any determination made by the President under subsection (e) 
of such section with respect to an alternative pay adjustment to 
be made on such date. 
SEC. 602. PROHIBITING COLLECTION OF ADDITIONAL AMOUNTS FROM 
MEMBERS LIVING IN UNITS UNDER MILITARY HOUSING 
PRIVATIZATION INITIATIVE. 
(a) PROHIBITION.—Subchapter IV of chapter 169 of title 10, 
United States Code, is amended by adding at the end the following 
new section: 
‘‘§ 2886. Prohibiting collection of amounts in addition to rent 
from members assigned to units 
‘‘(a) PROHIBITION.—An agreement for acquiring or constructing 
a military family housing unit or military unaccompanied housing 
unit under this subchapter which is entered into between the Sec-
retary and an eligible entity shall prohibit the entity from imposing 
on a member of the armed forces who occupies the unit a supple-
mental payment, such as an out-of-pocket fee, in addition to the 
amount of rent the eligible entity charges for a unit of similar 
size and composition, without regard to whether or not the amount 
of the member’s basic allowance for housing is less than the amount 
of the rent. 
‘‘(b) PERMITTING CERTAIN ADDITIONAL PAYMENTS.—Nothing in 
this section shall be construed to prohibit an eligible entity from
H. R. 2810—136 
imposing an additional payment for optional services provided to 
residents, such as access to a gym or a parking space, or an 
additional payment for non-essential utility services, as determined 
in accordance with regulations promulgated by the Secretary. 
‘‘(c) NO EFFECT
ON RENTAL GUARANTEES
OR DIFFERENTIAL 
LEASE PAYMENTS.—Nothing in this section shall be construed to 
limit or otherwise affect the authority of the Secretary to enter 
into rental guarantee agreements under section 2876 of this title 
or to make differential lease payments under section 2877 of this 
title, so long as such agreements or payments do not require a 
member of the armed forces who is assigned to a military family 
housing unit or military unaccompanied housing unit under this 
subchapter to pay an out-of-pocket fee or payment in addition 
to the member’s basic housing allowance.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for subchapter 
IV of chapter 169 of such title is amended by adding at the end 
the following new item: 
‘‘2886. Prohibiting collection of amounts in addition to rent from members assigned 
to units.’’. 
SEC. 603. LIMITATION ON MODIFICATION OF PAYMENT AUTHORITY 
FOR 
MILITARY 
HOUSING 
PRIVATIZATION 
INITIATIVE 
HOUSING. 
(a) IN GENERAL.—For each month during 2018, the Secretary 
of Defense shall pay to a lessor of covered housing 1 percent 
of the amount calculated under section 403(b)(3)(A)(i) of title 37, 
United States Code, for the area in which the covered housing 
exists. 
(b) DEFINITION.—In this section, the term ‘‘covered housing’’ 
means a unit of housing— 
(1) acquired or constructed under the alternative authority 
of subchapter IV of chapter 169 of title 10, United States 
Code (known as the Military Housing Privatization Initiative); 
(2) that is leased to a member of a uniformed service 
who resides in such unit; and 
(3) for which the lessor charges such member rent that 
equals or exceeds the amount calculated under section 
403(b)(3)(A) of title 37, United States Code. 
(c) GAO REVIEW.—Not later than March 1, 2018, the Comp-
troller General of the United States shall submit to the Committees 
on Armed Services of the House of Representatives and the Senate 
a review of the following: 
(1) The management of the Military Housing Privatization 
Initiative to date. 
(2) Plans for the Military Housing Privatization Initiative 
after March 1, 2018. 
(3) The viability of the Military Housing Privatization Ini-
tiative after March 1, 2018. 
(4) Alternatives to the Military Housing Privatization Ini-
tiative. 
SEC. 604. HOUSING TREATMENT FOR CERTAIN MEMBERS OF THE 
ARMED 
FORCES, 
AND 
THEIR 
SPOUSES 
AND 
OTHER 
DEPENDENTS, UNDERGOING A PERMANENT CHANGE OF 
STATION WITHIN THE UNITED STATES. 
(a) HOUSING TREATMENT.—
H. R. 2810—137 
(1) IN GENERAL.—Chapter 7 of title 37, United States Code, 
is amended by inserting after section 403 the following new 
section: 
‘‘§ 403a. Housing treatment for certain members of the armed 
forces, and their spouses and other dependents, 
undergoing a permanent change of station within 
the United States 
‘‘(a) HOUSING TREATMENT FOR CERTAIN MEMBERS WHO HAVE 
A SPOUSE OR OTHER DEPENDENTS.— 
‘‘(1) HOUSING TREATMENT REGULATIONS.—The Secretary of 
Defense shall prescribe regulations that permit a member of 
the armed forces described in paragraph (2) who is undergoing 
a permanent change of station within the United States to 
request the housing treatment described in subsection (b) 
during the covered relocation period of the member. 
‘‘(2) ELIGIBLE MEMBERS.—A member described in this para-
graph is any member who— 
‘‘(A) has a spouse who is gainfully employed or enrolled 
in a degree, certificate or license granting program at the 
beginning of the covered relocation period; 
‘‘(B) has one or more dependents attending an 
elementary or secondary school at the beginning of the 
covered relocation period; 
‘‘(C) has one or more dependents enrolled in the Excep-
tional Family Member Program; or 
‘‘(D) is caring for an immediate family member with 
a chronic or long-term illness at the beginning of the cov-
ered relocation period. 
‘‘(b) HOUSING TREATMENT.— 
‘‘(1) CONTINUATION OF HOUSING FOR THE SPOUSE AND OTHER 
DEPENDENTS.—If a spouse or other dependent of a member 
whose request under subsection (a) is approved resides in 
Government-owned or Government-leased housing at the begin-
ning of the covered relocation period, the spouse or other 
dependent may continue to reside in such housing during a 
period determined in accordance with the regulations prescribed 
pursuant to this section. 
‘‘(2) EARLY
HOUSING
ELIGIBILITY.—If a spouse or other 
dependent of a member whose request under subsection (a) 
is approved is eligible to reside in Government-owned or 
Government-leased housing following the member’s permanent 
change of station within the United States, the spouse or other 
dependent may commence residing in such housing at any 
time during the covered relocation period. 
‘‘(3) TEMPORARY USE OF GOVERNMENT-OWNED OR GOVERN-
MENT-LEASED
HOUSING
INTENDED
FOR
MEMBERS
WITHOUT
A 
SPOUSE
OR
DEPENDENT.—If a spouse or other dependent of 
a member relocates at a time different from the member in 
accordance with a request approved under subsection (a), the 
member may be assigned to Government-owned or Government- 
leased housing intended for the permanent housing of members 
without a spouse or dependent until the member’s detachment 
date or the spouse or other dependent’s arrival date, but only 
if such Government-owned or Government-leased housing is 
available without displacing a member without a spouse or 
dependent at such housing.
H. R. 2810—138 
‘‘(4) EQUITABLE
BASIC
ALLOWANCE
FOR
HOUSING.—If a 
spouse or other dependent of a member relocates at a time 
different from the member in accordance with a request 
approved under subsection (a), the amount of basic allowance 
for housing payable may be based on whichever of the following 
areas the Secretary concerned determines to be the most equi-
table: 
‘‘(A) The area of the duty station to which the member 
is reassigned. 
‘‘(B) The area in which the spouse or other dependent 
resides, but only if the spouse or other dependent resides 
in that area when the member departs for the duty station 
to which the member is reassigned, and only for the period 
during which the spouse or other dependent resides in 
that area. 
‘‘(C) The area of the former duty station of the member, 
but only if that area is different from the area in which 
the spouse or other dependent resides. 
‘‘(c) RULE
OF
CONSTRUCTION
RELATED
TO
CERTAIN
BASIC 
ALLOWANCE FOR HOUSING PAYMENTS.—Nothing in this section shall 
be construed to limit the payment or the amount of basic allowance 
for housing payable under section 403(d)(3)(A) of this title to a 
member whose request under subsection (a) is approved. 
‘‘(d) HOUSING TREATMENT EDUCATION.—The regulations pre-
scribed pursuant to this section shall ensure the relocation assist-
ance programs under section 1056 of title 10 include, as part of 
the assistance normally provided under such section, education 
about the housing treatment available under this section. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) COVERED RELOCATION PERIOD.—(A) Subject to subpara-
graph (B), the term ‘covered relocation period’, when used with 
respect to a permanent change of station of a member of the 
armed forces, means the period that— 
‘‘(i) begins 180 days before the date of the permanent 
change of station; and 
‘‘(ii) ends 180 days after the date of the permanent 
change of station. 
‘‘(B) The regulations prescribed pursuant to this section 
may provide for a shortening or lengthening of the covered 
relocation period of a member for purposes of this section. 
‘‘(2) DEPENDENT.—The term ‘dependent’ has the meaning 
given that term in section 401 of this title. 
‘‘(3) PERMANENT CHANGE OF STATION.—The term ‘perma-
nent change of station’ means a permanent change of station 
described in section 452(b)(2) of this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 7 such title is amended by inserting after 
the item relating to section 403 the following new item: 
‘‘403a. Housing treatment for certain members of the armed forces, and their 
spouses and other dependents, undergoing a permanent change of sta-
tion within the United States.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on October 1, 2018.
H. R. 2810—139 
SEC. 605. EXTENSION OF AUTHORITY TO PROVIDE TEMPORARY 
INCREASE IN RATES OF BASIC ALLOWANCE FOR HOUSING 
UNDER CERTAIN CIRCUMSTANCES. 
Section 403(b)(7)(E) of title 37, United States Code, is amended 
by striking ‘‘December 31, 2017’’ and inserting ‘‘December 31, 2018’’. 
SEC. 606. REEVALUATION OF BAH FOR THE MILITARY HOUSING AREA 
INCLUDING STATEN ISLAND. 
Not later than 90 days after the date of the enactment of 
this Act, the Secretary of Defense, using the most recent data 
available to the Secretary, shall reevaluate the basic housing allow-
ance prescribed under section 403(b) of title 37, United States 
Code, for the military housing area that includes Staten Island, 
New York. 
Subtitle B—Bonus and Special and 
Incentive Pays 
SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL 
PAY AUTHORITIES FOR RESERVE FORCES. 
The following sections of title 37, United States Code, are 
amended by striking ‘‘December 31, 2017’’ and inserting ‘‘December 
31, 2018’’: 
(1) Section 308b(g), relating to Selected Reserve reenlist-
ment bonus. 
(2) Section 308c(i), relating to Selected Reserve affiliation 
or enlistment bonus. 
(3) Section 308d(c), relating to special pay for enlisted 
members assigned to certain high-priority units. 
(4) Section 308g(f)(2), relating to Ready Reserve enlistment 
bonus for persons without prior service. 
(5) Section 308h(e), relating to Ready Reserve enlistment 
and reenlistment bonus for persons with prior service. 
(6) Section 308i(f), relating to Selected Reserve enlistment 
and reenlistment bonus for persons with prior service. 
(7) Section 478a(e), relating to reimbursement of travel 
expenses for inactive-duty training outside of normal com-
muting distance. 
(8) Section 910(g), relating to income replacement payments 
for reserve component members experiencing extended and fre-
quent mobilization for active duty service. 
SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL 
PAY AUTHORITIES FOR HEALTH CARE PROFESSIONALS. 
(a) TITLE 10 AUTHORITIES.—The following sections of title 10, 
United States Code, are amended by striking ‘‘December 31, 2017’’ 
and inserting ‘‘December 31, 2018’’: 
(1) Section 2130a(a)(1), relating to nurse officer candidate 
accession program. 
(2) Section 16302(d), relating to repayment of education 
loans for certain health professionals who serve in the Selected 
Reserve. 
(b) TITLE 37 AUTHORITIES.—The following sections of title 37, 
United States Code, are amended by striking ‘‘December 31, 2017’’ 
and inserting ‘‘December 31, 2018’’:
H. R. 2810—140 
(1) Section 302c-1(f), relating to accession and retention 
bonuses for psychologists. 
(2) Section 302d(a)(1), relating to accession bonus for reg-
istered nurses. 
(3) Section 302e(a)(1), relating to incentive special pay for 
nurse anesthetists. 
(4) Section 302g(e), relating to special pay for Selected 
Reserve health professionals in critically short wartime special-
ties. 
(5) Section 302h(a)(1), relating to accession bonus for dental 
officers. 
(6) Section 302j(a), relating to accession bonus for pharmacy 
officers. 
(7) Section 302k(f), relating to accession bonus for medical 
officers in critically short wartime specialties. 
(8) Section 302l(g), relating to accession bonus for dental 
specialist officers in critically short wartime specialties. 
SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND BONUS 
AUTHORITIES FOR NUCLEAR OFFICERS. 
The following sections of title 37, United States Code, are 
amended by striking ‘‘December 31, 2017’’ and inserting ‘‘December 
31, 2018’’: 
(1) Section 312(f), relating to special pay for nuclear-quali-
fied officers extending period of active service. 
(2) Section 312b(c), relating to nuclear career accession 
bonus. 
(3) Section 312c(d), relating to nuclear career annual incen-
tive bonus. 
SEC. 614. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO TITLE 
37 CONSOLIDATED SPECIAL PAY, INCENTIVE PAY, AND 
BONUS AUTHORITIES. 
The following sections of title 37, United States Code, are 
amended by striking ‘‘December 31, 2017’’ and inserting ‘‘December 
31, 2018’’: 
(1) Section 331(h), relating to general bonus authority for 
enlisted members. 
(2) Section 332(g), relating to general bonus authority for 
officers. 
(3) Section 333(i), relating to special bonus and incentive 
pay authorities for nuclear officers. 
(4) Section 334(i), relating to special aviation incentive 
pay and bonus authorities for officers. 
(5) Section 335(k), relating to special bonus and incentive 
pay authorities for officers in health professions. 
(6) Section 336(g), relating to contracting bonus for cadets 
and midshipmen enrolled in the Senior Reserve Officers’ 
Training Corps. 
(7) Section 351(h), relating to hazardous duty pay. 
(8) Section 352(g), relating to assignment pay or special 
duty pay. 
(9) Section 353(i), relating to skill incentive pay or pro-
ficiency bonus. 
(10) Section 355(h), relating to retention incentives for 
members qualified in critical military skills or assigned to 
high priority units.
H. R. 2810—141 
SEC. 615. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAY-
MENT OF OTHER TITLE 37 BONUSES AND SPECIAL PAYS. 
The following sections of title 37, United States Code, are 
amended by striking ‘‘December 31, 2017’’ and inserting ‘‘December 
31, 2018’’: 
(1) Section 301b(a), relating to aviation officer retention 
bonus. 
(2) Section 307a(g), relating to assignment incentive pay. 
(3) Section 308(g), relating to reenlistment bonus for active 
members. 
(4) Section 309(e), relating to enlistment bonus. 
(5) Section 316a(g), relating to incentive pay for members 
of precommissioning programs pursuing foreign language pro-
ficiency. 
(6) Section 324(g), relating to accession bonus for new offi-
cers in critical skills. 
(7) Section 326(g), relating to incentive bonus for conversion 
to military occupational specialty to ease personnel shortage. 
(8) Section 327(h), relating to incentive bonus for transfer 
between Armed Forces. 
(9) Section 330(f), relating to accession bonus for officer 
candidates. 
SEC. 616. REPORT REGARDING THE NATIONAL PILOT SHORTAGE. 
(a) IN GENERAL.—Not later than April 30, 2018, the Comptroller 
General of the United States shall submit to the Committees on 
Armed Services of the House of Representatives and the Senate 
a report regarding the extent of the national pilot shortage and 
the impact that such shortage has on the ability of the Department 
of Defense to retain pilots. 
(b) ELEMENTS.—The report under subsection (a) shall include 
assessments of the following: 
(1) The severity of the national pilot shortage, including 
which of the following are most acutely affected by such short-
age— 
(A) geographic areas of the United States; and 
(B) sectors of the commercial aviation industry; 
(2) Compensation practices within the commercial aviation 
industry, including whether and how such practices affect the 
ability of the Department of Defense to retain pilots. 
(3) The annual business case of the Secretary of the Air 
Force for aviation bonus payments under section 334(c)(2) of 
title 37, United States Code, specifically— 
(A) whether the business case meets the requirements 
under such section of title 37; 
(B) whether the business case justifies the bonus 
amount for each aircraft type category; and 
(C) whether projections indicate that the business case 
will reduce the pilot shortage, and, if so, how quickly for 
each aircraft type category. 
(4) Non-monetary incentives the Secretary of the Air Force 
has used to retain pilots. 
(5) Other incentives available under current law and poli-
cies of the Department of Defense to increase retention of 
pilots. 
(6) Such other matters as the Comptroller General con-
siders appropriate.
H. R. 2810—142 
SEC. 617. SPECIAL AVIATION INCENTIVE PAY AND BONUS AUTHORI-
TIES FOR ENLISTED MEMBERS WHO OPERATE REMOTELY 
PILOTED AIRCRAFT. 
(a) IN GENERAL.—Chapter 5 of title 37, United States Code, 
is amended by inserting after section 334 the following new section: 
‘‘§ 334a. Special aviation incentive pay and bonus authorities: 
enlisted members who operate remotely piloted 
aircraft 
‘‘(a) AVIATION INCENTIVE PAY.— 
‘‘(1) INCENTIVE PAY AUTHORIZED.—The Secretary concerned 
may pay aviation incentive pay under this section to an enlisted 
member in a regular or reserve component of a uniformed 
service who— 
‘‘(A) is entitled to basic pay under section 204 of this 
title or compensation under 206 of this title; 
‘‘(B) is designated as a remotely piloted aircraft pilot, 
or is in training leading to such a designation; 
‘‘(C) engages in, or is in training leading to, frequent 
and regular performance of operational flying duty or pro-
ficiency flying duty; 
‘‘(D) engages in or remains in aviation service for a 
specified period; and 
‘‘(E) meets such other criteria as the Secretary con-
cerned determines appropriate. 
‘‘(2) ENLISTED
MEMBERS
NOT
CURRENTLY
ENGAGED
IN 
FLYING
DUTY.—The Secretary concerned may pay aviation 
incentive pay under this section to an enlisted member who 
is otherwise qualified for such pay but who is not currently 
engaged in the performance of operational flying duty or pro-
ficiency flying duty if the Secretary determines, under regula-
tions prescribed under section 374 of this title, that payment 
of aviation pay to that enlisted member is in the best interests 
of the service. 
‘‘(b) AVIATION BONUS.—The Secretary concerned may pay an 
aviation bonus under this section to an enlisted member in a 
regular or reserve component of a uniformed service who— 
‘‘(1) is entitled to aviation incentive pay under subsection 
(a); 
‘‘(2) is within one year of completing the enlistment of 
the member; 
‘‘(3) reenlists or voluntarily extends the enlistment of the 
member— 
‘‘(A) for a period of at least one year; or 
‘‘(B) in the case of an enlisted member serving pursuant 
to an indefinite reenlistment, executes a written agree-
ment— 
‘‘(i) to remain on active duty for a period of at 
least one year; or 
‘‘(ii) to remain in an active status in a reserve 
component for a period of at least one year; and 
‘‘(4) meets such other criteria as the Secretary concerned 
determines appropriate. 
‘‘(c) MAXIMUM AMOUNT AND METHOD OF PAYMENT.— 
‘‘(1) MAXIMUM
AMOUNT.—The Secretary concerned shall 
determine the amount of a bonus or incentive pay to be paid 
under this section, except that—
H. R. 2810—143 
‘‘(A) aviation incentive pay under subsection (a) shall 
be paid at a monthly rate not to exceed $1,000 per month; 
and 
‘‘(B) an aviation bonus under subsection (b) may not 
exceed $35,000 for each 12-month period of obligated 
service agreed to under subsection (d). 
‘‘(2) LUMP
SUM
OR
INSTALLMENTS.—A bonus under this 
section may be paid in a lump sum or in periodic installments, 
as determined by the Secretary concerned. 
‘‘(3) FIXING BONUS AMOUNT.—Upon acceptance by the Sec-
retary concerned of the written agreement required by sub-
section (d), the total amount of the bonus to be paid under 
the agreement shall be fixed. 
‘‘(d) WRITTEN AGREEMENT FOR BONUS.—To receive an aviation 
bonus under this section, an enlisted member determined to be 
eligible for the bonus shall enter into a written agreement with 
the Secretary concerned that specifies— 
‘‘(1) the amount of the bonus; 
‘‘(2) the method of payment of the bonus under subsection 
(c)(2); 
‘‘(3) the period of obligated service; and 
‘‘(4) the type or conditions of the service. 
‘‘(e) RESERVE COMPONENT ENLISTED MEMBERS PERFORMING 
INACTIVE DUTY TRAINING.—An enlisted member of reserve compo-
nent who is entitled to compensation under section 206 of this 
title and who is authorized aviation incentive pay under this section 
may be paid an amount of incentive pay that is proportionate 
to the compensation received under section 206 of this title for 
inactive-duty training. 
‘‘(f) RELATIONSHIP TO OTHER PAY AND ALLOWANCES.— 
‘‘(1) AVIATION INCENTIVE PAY.—Aviation incentive pay paid 
to an enlisted member under subsection (a) shall be in addition 
to any other pay and allowance to which the enlisted member 
is entitled, except that an enlisted member may not receive 
a payment under such subsection and section 351(a)(2) or 353(a) 
of this title for the same skill and period of service. 
‘‘(2) AVIATION
BONUS.—An aviation bonus paid to an 
enlisted member under subsection (b) shall be in addition to 
any other pay and allowance to which the enlisted member 
is entitled, except that an enlisted member may not receive 
a bonus payment under such subsection and section 331 or 
353(b) of this title for the same skill and period of service. 
‘‘(g) REPAYMENT.—An enlisted member who receives aviation 
incentive pay or an aviation bonus under this section and who 
fails to fulfill the eligibility requirements for the receipt of the 
incentive pay or bonus or complete the period of service for which 
the incentive pay or bonus is paid, as specified in the written 
agreement under subsection (d) in the case of a bonus, shall be 
subject to the repayment provisions of section 373 of this title. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) AVIATION SERVICE.—The term ‘aviation service’ means 
participation in aerial flight performed, under regulations pre-
scribed by the Secretary concerned, by an eligible enlisted 
member who is a remotely piloted aircraft pilot. 
‘‘(2) OPERATIONAL
FLYING
DUTY.—The term ‘operational 
flying duty’ means flying performed under competent orders 
by enlisted members of the regular or reserve components
H. R. 2810—144 
while serving in assignments in which basic flying skills are 
normally maintained in the performance of assigned duties 
as determined by the Secretary concerned, and flying duty 
performed by members in training that leads to designation 
as a remotely piloted aircraft pilot by the Secretary concerned. 
‘‘(3) PROFICIENCY
FLYING
DUTY.—The term ‘proficiency 
flying duty’ means flying performed under competent orders 
by enlisted members of the regular or reserve components 
while serving in assignments in which such skills would nor-
mally not be maintained in the performance of assigned duties. 
‘‘(i) TERMINATION
OF
AUTHORITY.—No agreement may be 
entered into under this section after December 31, 2018.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 5 of such title is amended by inserting after the 
item relating to section 334 the following new item: 
‘‘334a. Special aviation incentive pay and bonus authorities: enlisted members who 
operate remotely piloted aircraft.’’. 
SEC. 618. TECHNICAL AND CONFORMING AMENDMENTS RELATING TO 
2008 CONSOLIDATION OF SPECIAL PAY AUTHORITIES. 
(a) REPAYMENT PROVISIONS.— 
(1) TITLE 10.—The following provisions of title 10, United 
States Code, are each amended by inserting ‘‘or 373’’ before 
‘‘of title 37’’: 
(A) Section 510(i). 
(B) Subsections (a)(3) and (c) of section 2005. 
(C) Paragraphs (1) and (2) of section 2007(e). 
(D) Section 2105. 
(E) Section 2123(e)(1)(C). 
(F) Section 2128(c). 
(G) Section 2130a(d). 
(H) Section 2171(g). 
(I) Section 2173(g)(2). 
(J) Paragraphs (1) and (2) of section 2200a(e). 
(K) Section 4348(f). 
(L) Section 6959(f). 
(M) Section 9348(f). 
(N) Subsections (a)(2) and (b) of section 16135. 
(O) Section 16203(a)(1)(B). 
(P) Section 16301(h). 
(Q) Section 16303(d). 
(R) Paragraphs (1) and (2) of section 16401(f). 
(2) TITLE
14.—Section 182(g) of title 14, United States 
Code, is amended by inserting ‘‘or 373’’ before ‘‘of title 37’’. 
(b) OFFICERS APPOINTED PURSUANT TO AN AGREEMENT UNDER 
SECTION 329 OF TITLE 37.—Section 641 of title 10, United States 
Code, is amended by striking paragraph (6). 
(c) REENLISTMENT LEAVE.—The matter preceding paragraph 
(1) of section 703(b) of title 10, United States Code, is amended 
by inserting ‘‘or paragraph (1) or (3) of section 351(a)’’ after ‘‘section 
310(a)(2)’’. 
(d) REST AND RECUPERATION ABSENCE FOR QUALIFIED MEMBERS 
EXTENDING DUTY AT DESIGNATED LOCATION OVERSEAS.—The matter 
following paragraph (4) of section 705(a) of title 10, United States 
Code, is amended by inserting ‘‘or 352’’ after ‘‘section 314’’. 
(e) REST AND RECUPERATION ABSENCE FOR CERTAIN MEMBERS 
UNDERGOING EXTENDED DEPLOYMENT TO COMBAT ZONE.—Section
H. R. 2810—145 
705a(b)(1)(B) of title 10, United States Code, is amended by 
inserting ‘‘or 352(a)’’ after ‘‘section 305’’. 
(f) ADDITIONAL INCENTIVES FOR HEALTH PROFESSIONALS OF THE 
INDIAN HEALTH SERVICE.—Section 116(a) of the Indian Health Care 
Improvement Act (25 U.S.C. 1616i(a)) is amended by inserting 
‘‘or 335(b)’’ after ‘‘section 302(b)’’. 
(g) MILITARY PAY AND ALLOWANCES CONTINUANCE WHILE IN 
A MISSING STATUS.—Section 552(a)(2) of title 37, United States 
Code, is amended by inserting ‘‘or section 351(a)(2)’’ after ‘‘section 
301’’. 
(h) MILITARY PAY AND ALLOWANCES.—Section 907(d) of title 
37, United States Code, is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A), by inserting ‘‘or 351’’ after 
‘‘section 301’’; 
(B) in subparagraph (B), by inserting ‘‘or 352’’ after 
‘‘section 301c’’; 
(C) in subparagraph (C), by inserting ‘‘or 353(a)’’ after 
‘‘section 304’’; 
(D) in subparagraph (D), by inserting ‘‘or 352’’ after 
‘‘section 305’’; 
(E) in subparagraph (E), by inserting ‘‘or 352’’ after 
‘‘section 305a’’; 
(F) in subparagraph (F), by inserting ‘‘or 352’’ after 
‘‘section 305b’’; 
(G) in subparagraph (G), by inserting ‘‘or 352’’ after 
‘‘section 307a’’; 
(H) in subparagraph (I), by inserting ‘‘or 352’’ after 
‘‘section 314’’; 
(I) in subparagraph (J), by striking ‘‘316’’ and inserting 
‘‘353(b)’’; and 
(J) in subparagraph (K), by striking ‘‘323’’ and inserting 
‘‘section 355’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (A), by inserting ‘‘or 352’’ after 
‘‘section 307’’; 
(B) in subparagraph (B), by striking ‘‘308’’ and 
inserting ‘‘331’’; 
(C) in subparagraph (C), by striking ‘‘309’’ and 
inserting ‘‘331’’; and 
(D) in subparagraph (D), by inserting ‘‘or 353’’ after 
‘‘section 320’’. 
(i) PAY AND ALLOWANCES OF OFFICERS OF THE PUBLIC HEALTH 
SERVICE.—Section 208(a)(2) of the Public Health Service Act (42 
U.S.C. 210(a)(2)) is amended by inserting ‘‘or 373’’ after ‘‘303a(b)’’. 
Subtitle C—Disability Pay, Retired Pay, 
and Survivor Benefits 
SEC. 621. PERMANENT EXTENSION AND COST-OF-LIVING ADJUST-
MENTS OF SPECIAL SURVIVOR INDEMNITY ALLOWANCES 
UNDER THE SURVIVOR BENEFIT PLAN. 
Section 1450(m) of title 10, United States Code, is amended— 
(1) in paragraph (2)— 
(A) in subparagraph (H), by striking ‘‘and’’ at the end; 
and
H. R. 2810—147 
striking ‘‘on the date of the reentry’’ and inserting ‘‘within 30 
days after the date of the reentry’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect on January 1, 2018, immediately after the coming 
into effect of the amendment made by section 631(b) of the National 
Defense Authorization Act for Fiscal Year 2016 (Public Law 114– 
92; 129 Stat. 843), to which the amendment made by subsection 
(a) relates. 
SEC. 624. TECHNICAL CORRECTIONS TO USE OF MEMBER’S CURRENT 
PAY GRADE AND YEARS OF SERVICE IN A DIVISION OF 
PROPERTY INVOLVING DISPOSABLE RETIRED PAY. 
(a) IN GENERAL.—Section 1408 of title 10, United States Code, 
is amended— 
(1) in subsection (a)(4)— 
(A) in the matter preceding clause (i) of subparagraph 
(A), by striking ‘‘(as determined pursuant to subparagraph 
(B)’’; and 
(B) by striking subparagraph (B) and inserting the 
following new subparagraph (B): 
‘‘(B) For purposes of subparagraph (A), in the case of a 
division of property as part of a final decree of divorce, dissolu-
tion, annulment, or legal separation that becomes final prior 
to the date of a member’s retirement, the total monthly retired 
pay to which the member is entitled shall be— 
‘‘(i) in the case of a member not described in clause 
(ii), the amount of retired pay to which the member would 
have been entitled using the member’s retired pay base 
and years of service on the date of the decree of divorce, 
dissolution, annulment, or legal separation, as computed 
under section 1406 or 1407 of this title, whichever is 
applicable, increased by the sum of the cost-of-living adjust-
ments that— 
‘‘(I) would have occurred under section 1401a(b) 
of this title between the date of the decree of divorce, 
dissolution, annulment, or legal separation and the 
time of the member’s retirement using the adjustment 
provisions under section 1401a of this title applicable 
to the member upon retirement; and 
‘‘(II) occur under 1401a of this title after the mem-
ber’s retirement; or 
‘‘(ii) in the case of a member who becomes entitled 
to retired pay pursuant to chapter 1223 of this title, the 
amount of retired pay to which the member would have 
been entitled using the member’s retired pay base and 
creditable service points on the date of the decree of divorce, 
dissolution, annulment, or legal separation, as computer 
under chapter 1223 of this title, increased by the sum 
of the cost-of-living adjustments as described in clause 
(i) that apply with respect to the member.’’; and 
(2) in subsection (d), by adding at the end the following 
new paragraph: 
‘‘(8) A division of property award computed as a percentage 
of a member’s disposable retired pay shall be increased by the 
same percentage as any cost-of-living adjustment made under sec-
tion 1401a after the member’s retirement.’’.
H. R. 2810—148 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect on December 23, 2016, as if enacted immediately 
following the enactment of the National Defense Authorization Act 
for Fiscal Year 2017 (Public Law 114–328) to which such amend-
ments relate. 
(c) APPLICABILITY.—The amendments made by subsection (a) 
shall apply with respect to any division of property as part of 
a final decree of divorce, dissolution, annulment, or legal separation 
involving a member of the Armed Forces to which section 1408 
of title 10, United States Code, applies that becomes final after 
December 23, 2016. 
SEC. 625. CONTINUATION PAY FOR THE COAST GUARD. 
For providing continuation pay for the United States Coast 
Guard under section 356 of title 37, United States Code, funds 
are hereby authorized to be appropriated for fiscal year 2018 in 
the amount of $3,286,277. 
Subtitle D—Other Matters 
SEC. 631. LAND CONVEYANCE AUTHORITY, ARMY AND AIR FORCE 
EXCHANGE SERVICE PROPERTY, DALLAS, TEXAS. 
(a) CONVEYANCE
AUTHORIZED.—The Army and Air Force 
Exchange Service may convey, by sale, exchange, or a combination 
thereof, all right, title, and interest of the United States in and 
to a parcel of real property, including improvements thereon, that— 
(1) is located at 8901 Autobahn Drive in Dallas, Texas; 
and 
(2) was purchased using nonappropriated funds of the Army 
and Air Force Exchange Service. 
(b) CONSIDERATION.— 
(1) IN GENERAL.—Consideration for the real property con-
veyed under subsection (a) shall be at least equal to the fair 
market value of the property, as determined by the Army 
and Air Force Exchange Service. 
(2) TREATMENT OF CASH CONSIDERATION.—Notwithstanding 
section 574 of title 40, United States Code, any cash consider-
ation received from the conveyance of the property under sub-
section (a) may be retained by the Army and Air Force 
Exchange Service because the property was acquired using 
nonappropriated funds. 
(c) DESCRIPTION OF PROPERTY.—The exact acreage and legal 
description of the real property to be conveyed under subsection 
(a) shall be determined by a survey satisfactory to the Army and 
Air Force Exchange Service. The recipient of the property shall 
be required to cover the cost of the survey. 
(d) ADDITIONAL TERMS AND CONDITIONS.—The Army and Air 
Force Exchange Service may require such additional terms and 
conditions in connection with the conveyance under subsection (a) 
as the Army and Air Force Exchange Service considers appropriate 
to protect the interests of the United States. 
(e) INAPPLICABILITY OF CERTAIN PROVISIONS OF LAW.—Section 
2696 of title 10, United States Code, shall not apply to a conveyance 
of property under this section.
H. R. 2810—149 
SEC. 632. AUTHORITY FOR THE SECRETARIES OF THE MILITARY 
DEPARTMENTS TO PROVIDE FOR CARE OF REMAINS OF 
THOSE WHO DIE ON ACTIVE DUTY AND ARE INTERRED 
IN A FOREIGN CEMETERY. 
Section 1482(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
‘‘(10) In the case of a decedent under the jurisdiction of 
a Secretary of a military department at the time of death, 
enduring care of remains interred in a foreign cemetery if 
the burial location was designated by such Secretary.’’. 
SEC. 633. CONSTRUCTION OF DOMESTIC SOURCE REQUIREMENT FOR 
FOOTWEAR FURNISHED TO ENLISTED MEMBERS OF THE 
ARMED FORCES ON INITIAL ENTRY INTO THE ARMED 
FORCES. 
Section 418(d) of title 37, United States Code, is amended 
by adding at the end the following new paragraphs: 
‘‘(4) This subsection does not apply to the furnishing of athletic 
footwear to members of the Army, the Navy, the Air Force, or 
the Marine Corps upon their initial entry into the armed forces, 
or prohibit the provision of a cash allowance to such members 
for such purpose, if the Secretary of Defense determines that compli-
ance with paragraph (2) would result in a sole source contract 
for procurement of athletic footwear for the purpose stated in para-
graph (1) because there would be only a sole certified source of 
supply for such footwear. 
‘‘(5) The Secretary of Defense shall ensure that all procurements 
of athletic footwear to which this subsection applies are made 
using firm fixed price contracts.’’. 
SEC. 634. REVIEW AND UPDATE OF REGULATIONS GOVERNING DEBT 
COLLECTORS INTERACTIONS WITH UNIT COMMANDERS OF 
MEMBERS OF THE ARMED FORCES. 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall review and update Depart-
ment of Defense Directive 1344.09 and any associated regulations 
to ensure that such regulations comply with Federal consumer 
protection laws with respect to the collection of debt. 
TITLE VII—HEALTH CARE PROVISIONS 
Subtitle A—TRICARE and Other Health Care Benefits 
Sec. 701. Continued access to medical care at facilities of the uniformed services for 
certain members of the reserve components. 
Sec. 702. Modifications of cost-sharing requirements for the TRICARE Pharmacy 
Benefits Program and treatment of certain pharmaceutical agents. 
Sec. 703. Provision of hyperbaric oxygen therapy for certain members of the Armed 
Forces. 
Sec. 704. Specification that individuals under the age of 21 are eligible for hospice 
care services under the TRICARE program. 
Sec. 705. Physical examinations for members of a reserve component who are sepa-
rating from the Armed Forces. 
Sec. 706. Mental health assessments before members separate from the Armed 
Forces. 
Sec. 707. Expansion of sexual trauma counseling and treatment for members of the 
reserve components. 
Sec. 708. Expedited evaluation and treatment for prenatal surgery under the 
TRICARE program.
H. R. 2810—150 
Subtitle B—Health Care Administration 
Sec. 711. Maintenance of inpatient capabilities of military medical treatment facili-
ties located outside the United States. 
Sec. 712. Modification of priority for evaluation and treatment of individuals at 
military treatment facilities. 
Sec. 713. Clarification of administration of military medical treatment facilities. 
Sec. 714. Regular update of prescription drug pricing standard under TRICARE re-
tail pharmacy program. 
Sec. 715. Modification of execution of TRICARE contracting responsibilities. 
Sec. 716. Additional emergency uses for medical products to reduce deaths and se-
verity of injuries caused by agents of war. 
Sec. 717. Modification of determination of average wait times at urgent care clinics 
and pharmacies at military medical treatment facilities under pilot pro-
gram. 
Sec. 718. Requirement for reimbursement by Department of Defense to entities car-
rying out State vaccination programs for costs of vaccines provided to 
covered beneficiaries. 
Sec. 719. Extension of authority for Joint Department of Defense-Department of 
Veterans Affairs Medical Facility Demonstration Fund. 
Sec. 720. Residency requirements for podiatrists. 
Sec. 721. Authorization of physical therapist assistants and occupational therapy 
assistants to provide services under the TRICARE program. 
Sec. 722. Selection of military commanders and directors of military medical treat-
ment facilities. 
Subtitle C—Reports and Other Matters 
Sec. 731. Pilot program on health care assistance system. 
Sec. 732. Feasibility study on conduct of pilot program on mental health readiness 
of part-time members of the reserve components of the Armed Forces. 
Sec. 733. Report on plan to improve pediatric care and related services for children 
of members of the Armed Forces. 
Sec. 734. Longitudinal medical study on blast pressure exposure of members of the 
Armed Forces. 
Sec. 735. Study on safe opioid prescribing practices. 
Sec. 736. Report on implementation of GAO recommendations. 
Sec. 737. Declassification by Department of Defense of certain incidents of exposure 
of members of the Armed Forces to toxic substances. 
Sec. 738. Coordination by Veterans Health Administration of efforts to understand 
effects of burn pits. 
Sec. 739. TRICARE technical amendments. 
Subtitle A—TRICARE and Other Health 
Care Benefits 
SEC. 701. CONTINUED ACCESS TO MEDICAL CARE AT FACILITIES OF 
THE UNIFORMED SERVICES FOR CERTAIN MEMBERS OF 
THE RESERVE COMPONENTS. 
(a) TRICARE RESERVE
SELECT.—Paragraph (2) of section 
1076d(f) of title 10, United States Code, is amended to read as 
follows: 
‘‘(2) The term ‘TRICARE Reserve Select’ means— 
‘‘(A) medical care at facilities of the uniformed services 
to which a dependent described in section 1076(a)(2) of 
this title is entitled; and 
‘‘(B) health benefits under the TRICARE Select self- 
managed, preferred provider network option under section 
1075 of this title made available to beneficiaries by reason 
of this section and subject to the cost-sharing requirements 
set forth in such section 1075.’’. 
(b) TRICARE RETIRED RESERVE.—Section 1076e is amended— 
(1) In subsection (b), in the subsection heading, by striking 
‘‘RETIRED RESERVE’’; 
(2) In subsection (c), by striking ‘‘Retired Reserve’’ the 
last place it appears; and
H. R. 2810—151 
(3) in subsection (f), by striking paragraph (2) and inserting 
the following: 
‘‘(2) The term ‘TRICARE Retired Reserve’ means— 
‘‘(A) medical care at facilities of the uniformed services 
to which a dependent described in section 1076(a)(2) of 
this title is entitled; and 
‘‘(B) health benefits under the TRICARE Select self- 
managed, preferred provider network option under section 
1075 of this title made available to beneficiaries by reason 
of this section and subject to the cost-sharing requirements 
set forth in such section 1075.’’. 
SEC. 702. MODIFICATIONS OF COST-SHARING REQUIREMENTS FOR THE 
TRICARE PHARMACY BENEFITS PROGRAM AND TREAT-
MENT OF CERTAIN PHARMACEUTICAL AGENTS. 
(a) IN GENERAL.—Paragraph (6) of section 1074g(a) of title 
10, United States Code, is amended to read as follows: 
‘‘(6)(A) In the case of any of the years 2018 through 2027, 
the cost-sharing amounts under this subsection for eligible covered 
beneficiaries shall be determined in accordance with the following 
table: 
‘‘For: 
The cost- 
sharing 
amount for 
a 30-day 
supply of a 
retail ge-
neric is: 
The cost- 
sharing 
amount for 
a 30-day 
supply of a 
retail for-
mulary is: 
The cost- 
sharing 
amount for 
a 90-day 
supply of a 
mail order 
generic is: 
The cost- 
sharing 
amount for 
a 90-day 
supply of a 
mail order 
formulary 
is: 
The cost- 
sharing 
amount for 
a 90-day 
supply of a 
mail order 
non-for-
mulary is: 
2018 
$11 
$28 
$7 
$24 
$53 
2019 
$11 
$28 
$7 
$24 
$53 
2020 
$13 
$33 
$10 
$29 
$60 
2021 
$13 
$33 
$10 
$29 
$60 
2022 
$14 
$38 
$12 
$34 
$68 
2023 
$14 
$38 
$12 
$34 
$68 
2024 
$16 
$43 
$13 
$38 
$76 
2025 
$16 
$43 
$13 
$38 
$76 
2026 
$16 
$48 
$14 
$44 
$85 
2027 
$16 
$48 
$14 
$44 
$85 
‘‘(B) For any year after 2027, the cost-sharing amounts under 
this subsection for eligible covered beneficiaries shall be equal to 
the cost-sharing amounts for the previous year adjusted by an 
amount, if any, determined by the Secretary to reflect changes 
in the costs of pharmaceutical agents and prescription dispensing, 
rounded to the nearest dollar. 
‘‘(C) Notwithstanding subparagraphs (A) and (B), the cost- 
sharing amounts under this subsection for a dependent of a member
H. R. 2810—152 
of the uniformed services who dies while on active duty, a member 
retired under chapter 61 of this title, or a dependent of a member 
retired under such chapter shall be equal to the cost-sharing 
amounts, if any, for 2017.’’. 
(b) TREATMENT OF CERTAIN PHARMACEUTICAL AGENTS.— 
(1) 
PHARMACY
BENEFITS
PROGRAM.—Such 
section 
is 
amended by adding at the end the following new paragraph: 
‘‘(10) Notwithstanding paragraphs (2), (5), and (6), in order 
to encourage the use by covered beneficiaries of pharmaceutical 
agents that provide the best clinical effectiveness to covered bene-
ficiaries and the Department of Defense (as determined by the 
Secretary, including considerations of better care, healthier people, 
and smarter spending), the Secretary may, upon the recommenda-
tion of the Pharmacy and Therapeutics Committee established 
under subsection (b) and review by the Uniform Formulary Bene-
ficiary Advisory Panel established under subsection (c)— 
‘‘(A) exclude from the pharmacy benefits program any 
pharmaceutical agent that the Secretary determines provides 
very little or no clinical effectiveness to covered beneficiaries 
and the Department under the program; and 
‘‘(B) give preferential status to any non-generic pharma-
ceutical agent on the uniform formulary by treating it, for 
purposes of cost-sharing under paragraph (6), as a generic 
product under the TRICARE retail pharmacy program and 
mail order pharmacy program.’’. 
(2) MEDICAL
CONTRACTS.—Section 1079 of such title is 
amended by adding at the end the following new subsection: 
‘‘(q) In the case of any pharmaceutical agent (as defined in 
section 1074g(g) of this title) provided under a contract entered 
into under this section by a physician, in an outpatient department 
of a hospital, or otherwise as part of any medical services provided 
under such a contract, the Secretary of Defense may, under regula-
tions prescribed by the Secretary, adopt special reimbursement 
methods, amounts, and procedures to encourage the use of high- 
value products and discourage the use of low-value products, as 
determined by the Secretary.’’. 
(3) REGULATIONS.—In order to implement expeditiously the 
reforms authorized by the amendments made by paragraphs 
(1) and (2), the Secretary of Defense may prescribe such changes 
to the regulations implementing the TRICARE program (as 
defined in section 1072 of title 10, United States Code) as 
the Secretary considers appropriate— 
(A) by prescribing an interim final rule; and 
(B) not later than one year after prescribing such 
interim final rule and considering public comments with 
respect to such interim final rule, by prescribing a final 
rule. 
SEC. 703. PROVISION OF HYPERBARIC OXYGEN THERAPY FOR CERTAIN 
MEMBERS OF THE ARMED FORCES. 
(a) HBOT TREATMENT.— 
(1) IN GENERAL.—Chapter 55 of title 10, United States 
Code, is amended by inserting after section 1074n the following 
new section:
H. R. 2810—153 
‘‘§ 1074o. Provision of hyperbaric oxygen therapy for certain 
members 
‘‘(a) IN
GENERAL.—The Secretary may furnish hyperbaric 
oxygen therapy available at a military medical treatment facility 
to a covered member if such therapy is prescribed by a physician 
to treat post-traumatic stress disorder or traumatic brain injury. 
‘‘(b) COVERED MEMBER DEFINED.—In this section, the term 
‘covered member’ means a member of the armed forces who is— 
‘‘(1) serving on active duty; and 
‘‘(2) diagnosed with post-traumatic stress disorder or trau-
matic brain injury.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 1074n the following new item: 
‘‘1074o. Provision of hyperbaric oxygen therapy for certain members.’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect 90 days after the date of the enactment of 
this Act. 
SEC. 704. SPECIFICATION THAT INDIVIDUALS UNDER THE AGE OF 21 
ARE ELIGIBLE FOR HOSPICE CARE SERVICES UNDER THE 
TRICARE PROGRAM. 
Section 1079(a)(15) of title 10, United States Code, is amended 
by inserting before the period at the end the following: ‘‘, except 
that hospice care may be provided to an individual under the 
age of 21 concurrently with health care services or hospitalization 
for the same condition’’. 
SEC. 705. PHYSICAL EXAMINATIONS FOR MEMBERS OF A RESERVE 
COMPONENT WHO ARE SEPARATING FROM THE ARMED 
FORCES. 
Section 1145 of title 10, United States Code, is amended— 
(1) by redesignating subsections (d) and (e) as subsections 
(e) and (f), respectively; and 
(2) by inserting after subsection (c) the following new sub-
section (d): 
‘‘(d) PHYSICAL EXAMINATIONS
FOR CERTAIN MEMBERS
OF
A 
RESERVE COMPONENT.—(1) The Secretary concerned shall provide 
a physical examination pursuant to subsection (a)(5) to each 
member of a reserve component who— 
‘‘(A) during the two-year period before the date on which 
the member is scheduled to be separated from the armed forces 
served on active duty in support of a contingency operation 
for a period of more than 30 days; 
‘‘(B) will not otherwise receive such an examination under 
such subsection; and 
‘‘(C) elects to receive such a physical examination. 
‘‘(2) The Secretary concerned shall— 
‘‘(A) provide the physical examination under paragraph 
(1) to a member during the 90-day period before the date 
on which the member is scheduled to be separated from the 
armed forces; and 
‘‘(B) issue orders to such a member to receive such physical 
examination.
H. R. 2810—154 
‘‘(3) A member may not be entitled to health care benefits 
pursuant to subsection (a), (b), or (c) solely by reason of being 
provided a physical examination under paragraph (1). 
‘‘(4) In providing to a member a physical examination under 
paragraph (1), the Secretary concerned shall provide to the member 
a record of the physical examination.’’. 
SEC. 706. MENTAL HEALTH ASSESSMENTS BEFORE MEMBERS SEPA-
RATE FROM THE ARMED FORCES. 
(a) IN GENERAL.—Section 1145(a)(5)(A) of title 10, United States 
Code, is amended by inserting ‘‘and a mental health assessment 
conducted pursuant to section 1074n of this title’’ after ‘‘a physical 
examination’’. 
(b) CONFORMING AMENDMENT.—Section 1074n(a) of such title 
is amended by inserting ‘‘(and before separation from active duty 
pursuant to section 1145(a)(5)(A) of this title)’’ after ‘‘each calendar 
year’’. 
SEC. 707. EXPANSION OF SEXUAL TRAUMA COUNSELING AND TREAT-
MENT FOR MEMBERS OF THE RESERVE COMPONENTS. 
Section 1720D(a)(2)(A) of title 38, United States Code, is 
amended— 
(1) by striking ‘‘on active duty’’; and 
(2) by inserting before the period at the end the following: 
‘‘that was suffered by the member while serving on active 
duty, active duty for training, or inactive duty training’’. 
SEC. 708. EXPEDITED EVALUATION AND TREATMENT FOR PRENATAL 
SURGERY UNDER THE TRICARE PROGRAM. 
(a) IN GENERAL.—The Secretary of Defense shall implement 
processes and procedures to ensure that a covered beneficiary under 
the TRICARE program whose pregnancy is complicated with (or 
suspected of complication with) a fetal condition may elect to receive 
expedited evaluation, nondirective counseling, and medical treat-
ment from a perinatal or pediatric specialist capable of providing 
surgical management and intervention in utero. 
(b) DEFINITIONS.—In this section, the terms ‘‘covered bene-
ficiary’’ and ‘‘TRICARE program’’ have the meanings given those 
terms in section 1072 of title 10, United States Code. 
Subtitle B—Health Care Administration 
SEC. 711. MAINTENANCE OF INPATIENT CAPABILITIES OF MILITARY 
MEDICAL TREATMENT FACILITIES LOCATED OUTSIDE THE 
UNITED STATES. 
Section 1073d of title 10, United States Code, is amended 
by adding at the end the following new subsection: 
‘‘(e) MAINTENANCE
OF INPATIENT CAPABILITIES
AT MILITARY 
MEDICAL TREATMENT FACILITIES LOCATED OUTSIDE
THE UNITED 
STATES.—(1) In carrying out subsection (a), the Secretary of Defense 
shall ensure that each covered facility maintains, at a minimum, 
inpatient capabilities that the Secretary determines are similar 
to the inpatient capabilities of such facility on September 30, 2016. 
‘‘(2) The Secretary may not eliminate the inpatient capabilities 
of a covered facility until the day that is 180 days after the Secretary 
provides a briefing to the Committees on Armed Services of the 
Senate and the House of Representatives regarding the proposed
H. R. 2810—155 
elimination. During any such briefing, the Secretary shall certify 
the following: 
‘‘(A) The Secretary has entered into agreements with hos-
pitals or medical centers in the host nation of such covered 
facility that— 
‘‘(i) replace the inpatient capabilities the Secretary pro-
poses to eliminate; and 
‘‘(ii) ensure members of the armed forces and covered 
beneficiaries who receive health care from such covered 
facility, have, within a distance the Secretary determines 
is reasonable, access to quality health care, including case 
management and translation services. 
‘‘(B) The Secretary has consulted with the commander of 
the geographic combatant command in which such covered 
facility is located to ensure that the proposed elimination would 
have no impact on the operational plan for such geographic 
combatant command. 
‘‘(C) Before the Secretary eliminates the inpatient capabili-
ties of such covered facility, the Secretary shall provide each 
member of the armed forces or covered beneficiary who receives 
health care from the covered facility with— 
‘‘(i) a transition plan for continuity of health care for 
such member or covered beneficiary; and 
‘‘(ii) a public forum to discuss the concerns of the 
member or covered beneficiary regarding the proposed 
reduction. 
‘‘(3) In this subsection, the term ‘covered facility’ means a 
military medical treatment facility located outside the United 
States.’’. 
SEC. 712. MODIFICATION OF PRIORITY FOR EVALUATION AND TREAT-
MENT OF INDIVIDUALS AT MILITARY TREATMENT FACILI-
TIES. 
Subsection (b) of section 717 of the National Defense Authoriza-
tion Act for Fiscal Year 2017 (Public Law 114–328) is amended 
to read as follows: 
‘‘(b) PRIORITY OF COVERED BENEFICIARIES.— 
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
the evaluation and treatment of covered beneficiaries at mili-
tary treatment facilities shall be prioritized ahead of the evalua-
tion and treatment of veterans and civilians at such facilities 
under subsection (a). 
‘‘(2) WAIVER.—The Secretary may waive the requirement 
under paragraph (1) in order to provide timely evaluation and 
treatment for individuals who are— 
‘‘(A) severely wounded or injured by acts of terror 
that occur in the United States; or 
‘‘(B) residents of the United States who are severely 
wounded or injured by acts of terror outside the United 
States.’’. 
SEC. 713. CLARIFICATION OF ADMINISTRATION OF MILITARY MEDICAL 
TREATMENT FACILITIES. 
Section 1073c(a) of title 10, United States Code, is amended— 
(1) in paragraph (1)(E), by striking ‘‘miliary’’ and inserting 
‘‘military’’;
H. R. 2810—156 
(2) in paragraph (2), in the matter preceding subparagraph 
(A), by striking ‘‘commander’’ and inserting ‘‘military com-
mander or director’’; and 
(3) by adding at the end the following new paragraph: 
‘‘(4) If the Secretary of Defense determines it appropriate, a 
military director (or any other senior military officer or officers) 
of a military medical treatment facility may be a commanding 
officer for purposes of chapter 47 of this title (the Uniform Code 
of Military Justice) with respect to military personnel assigned 
to the military medical treatment facility.’’. 
SEC. 714. REGULAR UPDATE OF PRESCRIPTION DRUG PRICING 
STANDARD UNDER TRICARE RETAIL PHARMACY PRO-
GRAM. 
Section 1074g(d) of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
‘‘(3) With respect to the TRICARE retail pharmacy program 
described in subsection (a)(2)(E)(ii), the Secretary shall ensure that 
a contract entered into with a TRICARE pharmacy program con-
tractor includes requirements described in section 1860D–12(b)(6) 
of the Social Security Act (42 U.S.C. 1395w–112(b)(6)) to ensure 
the provision of information regarding the pricing standard for 
prescription drugs.’’. 
SEC. 715. MODIFICATION OF EXECUTION OF TRICARE CONTRACTING 
RESPONSIBILITIES. 
Subsection (b) of section 705 of the National Defense Authoriza-
tion Act for Fiscal Year 2017 (Public Law 114–328) is amended 
to read as follows: 
‘‘(b) 
EXECUTION
OF
CONTRACTING
RESPONSIBILITY.—With 
respect to any acquisition of managed care support services under 
the TRICARE program initiated after the date of the enactment 
of the National Defense Authorization Act for Fiscal Year 2018, 
the Under Secretary of Defense for Acquisition and Sustainment 
shall be responsible for— 
‘‘(1) decisions relating to such acquisition; 
‘‘(2) approving the acquisition strategy; and 
‘‘(3) conducting pre-solicitation, pre-award, and post-award 
acquisition reviews.’’. 
SEC. 716. ADDITIONAL EMERGENCY USES FOR MEDICAL PRODUCTS 
TO REDUCE DEATHS AND SEVERITY OF INJURIES CAUSED 
BY AGENTS OF WAR. 
Section 1107a of title 10, United States Code, is amended 
by adding at the end the following new subsection: 
‘‘(d) ADDITIONAL AUTHORITY TO REDUCE DEATHS AND SEVERITY 
OF INJURIES CAUSED BY AGENTS OF WAR.—(1) In a case in which 
an emergency use of an unapproved product or an emergency 
unapproved use of an approved product cannot be authorized under 
section 564 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
360bbb–3) because the emergency does not involve an actual or 
threatened attack with a biological, chemical, radiological, or 
nuclear agent or agents, the Secretary of Defense may authorize 
an emergency use outside the United States of the product to 
reduce the number of deaths or the severity of harm to members 
of the armed forces (or individuals associated with deployed mem-
bers of the armed forces) caused by a risk or agent of war.
H. R. 2810—157 
‘‘(2) Except as otherwise provided in this subsection, an 
authorization by the Secretary under paragraph (1) shall have 
the same effect with respect to the armed forces as an emergency 
use authorization under section 564 of the Federal Food, Drug, 
and Cosmetic Act (21 U.S.C. 360bbb–3). 
‘‘(3) The Secretary may issue an authorization under paragraph 
(1) with respect to the emergency use of an unapproved product 
or the emergency unapproved use of an approved product only 
if— 
‘‘(A) the committee established under paragraph (5) has 
recommended that the Secretary issue the authorization; and 
‘‘(B) the Assistant Secretary of Defense for Health Affairs 
makes a written determination, after consultation with the 
Commissioner of Food and Drugs, that, based on the totality 
of scientific evidence available to the Assistant Secretary, cri-
teria comparable to those specified in section 564(c) of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 360bbb– 
3(c)) have been met. 
‘‘(4) With respect to the emergency use of an unapproved 
product or the emergency unapproved use of an approved product 
under this subsection, the Secretary of Defense shall establish 
such scope, conditions, and terms under this subsection as the 
Secretary considers appropriate, including scope, conditions, and 
terms comparable to those specified in section 564 of the Federal 
Food, Drug, and Cosmetic Act (21 U.S.C. 360bbb–3). 
‘‘(5)(A) There is established in the Department of Defense a 
Department of Defense Emergency Use Authorization Committee 
(in this paragraph referred to as the ‘Committee’) to advise the 
Assistant Secretary of Defense for Health Affairs on proposed 
authorizations under this subsection. 
‘‘(B) Members of the Committee shall be appointed by the 
Secretary of Defense and shall consist of prominent health care 
professionals who are not employees of the Department of Defense 
(other than for purposes of serving as a member of the Committee). 
‘‘(C) The Committee may be established as a subcommittee 
of another Federal advisory committee. 
‘‘(6) In this subsection: 
‘‘(A) The term ‘biological product’ has the meaning given 
that term in section 351(i) of the Public Health Service Act 
(42 U.S.C. 262(i)). 
‘‘(B) The terms ‘device’ and ‘drug’ have the meanings given 
those terms in section 201 of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 321). 
‘‘(C) The term ‘product’ means a drug, device, or biological 
product. 
‘‘(D) The terms ‘unapproved product’ and ‘unapproved use 
of an approved product’ have the meanings given those terms 
in section 564(a)(4) of the Federal Food, Drug, and Cosmetic 
Act (21 U.S.C. 360bbb–3(a)(4)).’’. 
SEC. 717. MODIFICATION OF DETERMINATION OF AVERAGE WAIT 
TIMES AT URGENT CARE CLINICS AND PHARMACIES AT 
MILITARY 
MEDICAL 
TREATMENT 
FACILITIES 
UNDER 
PILOT PROGRAM. 
(a) URGENT CARE CLINICS.—Subsection (c)(2) of section 744 
of the National Defense Authorization Act for Fiscal Year 2017 
(Public Law 114–328) is amended to read as follows:
H. R. 2810—158 
‘‘(2) DETERMINATION.—In carrying out paragraph (1), the 
Secretary shall determine the average wait time to display 
under such paragraph by using a formula derived from best 
practices in the health care industry.’’. 
(b) PHARMACIES.—Subsection (d)(2) of such section is amended 
to read as follows: 
‘‘(2) DETERMINATION.—In carrying out paragraph (1), the 
Secretary shall determine the average wait time to display 
under such paragraph by using a formula derived from best 
practices in the health care industry.’’. 
SEC. 718. REQUIREMENT FOR REIMBURSEMENT BY DEPARTMENT OF 
DEFENSE TO ENTITIES CARRYING OUT STATE VACCINA-
TION PROGRAMS FOR COSTS OF VACCINES PROVIDED TO 
COVERED BENEFICIARIES. 
Section 719 of the National Defense Authorization Act for Fiscal 
Year 2017 (Public Law 114–328; 10 U.S.C. 1074g note) is amended— 
(1) in the section heading, by striking ‘‘AUTHORIZATION 
OF
REIMBURSEMENT’’ and inserting ‘‘REIMBURSEMENT’’; and 
(2) in subsection (a)(1), by striking ‘‘may’’ and inserting 
‘‘shall’’. 
SEC. 719. EXTENSION OF AUTHORITY FOR JOINT DEPARTMENT OF 
DEFENSE-DEPARTMENT OF VETERANS AFFAIRS MEDICAL 
FACILITY DEMONSTRATION FUND. 
Section 1704(e) of the National Defense Authorization Act for 
Fiscal Year 2010 (Public Law 111–84; 123 Stat. 2573), as amended 
by section 722 of the Carl Levin and Howard P. ‘‘Buck’’ McKeon 
National Defense Authorization Act for Fiscal Year 2015 (Public 
Law 113–291), section 723 of the National Defense Authorization 
Act for Fiscal Year 2016 (Public Law 114–92), and section 741(a) 
of the National Defense Authorization Act for Fiscal Year 2017 
(Public Law 114–328), is further amended by striking ‘‘September 
30, 2018’’ and inserting ‘‘September 30, 2019’’. 
SEC. 720. RESIDENCY REQUIREMENTS FOR PODIATRISTS. 
(a) REQUIREMENT.—In addition to any other qualification 
required by law or regulation, the Secretary of Defense shall ensure 
that to serve as a podiatrist in the Armed Forces, an individual 
must have successfully completed a three-year podiatric medicine 
and surgical residency. 
(b) APPLICATION.—Subsection (a) shall apply with respect to 
an individual who is commissioned as an officer in the Armed 
Forces on or after the date that is one year after the date of 
the enactment of this Act. 
SEC. 721. AUTHORIZATION OF PHYSICAL THERAPIST ASSISTANTS AND 
OCCUPATIONAL THERAPY ASSISTANTS TO PROVIDE SERV-
ICES UNDER THE TRICARE PROGRAM. 
(a) ADDITION TO LIST OF AUTHORIZED PROFESSIONAL PROVIDERS 
OF CARE.—The Secretary of Defense shall revise section 199.6(c) 
of title 32, Code of Federal Regulations, as in effect on the date 
of the enactment of this Act, to add to the list of individual profes-
sional providers of care who are authorized to provide services 
to beneficiaries under the TRICARE program, as defined in section 
1072 of title 10, United States Code, the following types of health 
care practitioners:
H. R. 2810—159 
(1) Licensed or certified physical therapist assistants who 
meet the qualifications for physical therapist assistants speci-
fied in section 484.4 of title 42, Code of Federal Regulations, 
or any successor regulation, to furnish services under the super-
vision of a physical therapist. 
(2) Licensed or certified occupational therapy assistants 
who meet the qualifications for occupational therapy assistants 
specified in such section 484.4, or any successor regulation, 
to furnish services under the supervision of an occupational 
therapist. 
(b) SUPERVISION.—The Secretary of Defense shall establish in 
regulations requirements for the supervision of physical therapist 
assistants and occupational therapy assistants, respectively, by 
physical therapists and occupational therapists, respectively. 
(c) MANUALS AND OTHER GUIDANCE.—The Secretary of Defense 
shall update the CHAMPVA Policy Manual and other relevant 
manuals and subregulatory guidance of the Department of Defense 
to carry out the revisions and requirements of this section. 
SEC. 722. SELECTION OF MILITARY COMMANDERS AND DIRECTORS 
OF MILITARY MEDICAL TREATMENT FACILITIES. 
(a) IN GENERAL.—Not later than January 1, 2019, the Secretary 
of Defense, in consultation with the Secretaries of the military 
departments, shall establish the common qualifications and core 
competencies required for an individual to serve as a military 
commander or director of a military medical treatment facility. 
(b) OBJECTIVE.—The objective of the Secretary under this sec-
tion shall be to ensure that each individual selected to serve as 
a military commander or director of a military medical treatment 
facility is highly qualified to serve as health system executive. 
(c) STANDARDS.—In establishing common qualifications and core 
competencies under subsection (a), the Secretary shall include 
standards with respect to the following: 
(1) Professional competence. 
(2) Moral and ethical integrity and character. 
(3) Formal education in health care executive leadership 
and in health care management. 
(4) Such other matters the Secretary determines to be 
appropriate. 
Subtitle C—Reports and Other Matters 
SEC. 731. PILOT PROGRAM ON HEALTH CARE ASSISTANCE SYSTEM. 
(a) PILOT PROGRAM.—The Secretary of Defense shall carry out 
a pilot program to provide a health care assistance service to 
certain covered beneficiaries enrolled in TRICARE Select using 
purchased care to improve the health outcomes and patient experi-
ence for covered beneficiaries with complex medical conditions. 
(b) ELEMENTS.—The pilot program under subsection (a) may 
include the following elements: 
(1) Assisting beneficiaries with complex medical conditions 
to understand and use the health benefits under the TRICARE 
program. 
(2) Supporting such beneficiaries in accessing and navi-
gating the purchased care health care delivery system.
H. R. 2810—160 
(3) Providing such beneficiaries with information to allow 
the beneficiaries to make informed decisions regarding the 
quality, safety, and cost of available health care services. 
(4) Improving the health outcomes for such beneficiaries. 
(c) DURATION.—The Secretary shall carry out the pilot program 
for an amount of time determined appropriate by the Secretary 
during the five-year period beginning 180 days after the date of 
the enactment of this Act. 
(d) REPORT.—Not later than January 1, 2021, the Secretary 
shall submit to the Committees on Armed Services of the House 
of Representatives and the Senate a report containing an evaluation 
of the success of the pilot program under subsection (a), including— 
(1) an analysis of the implementation of the elements under 
subsection (b); and 
(2) the feasibility of incorporating such elements into 
TRICARE support contracts. 
(e) DEFINITIONS.—In this section, the terms ‘‘covered bene-
ficiary’’, ‘‘TRICARE program’’, and ‘‘TRICARE Select’’ have the 
meaning given those terms in section 1072 of title 10, United 
States Code. 
SEC. 732. FEASIBILITY STUDY ON CONDUCT OF PILOT PROGRAM ON 
MENTAL HEALTH READINESS OF PART-TIME MEMBERS OF 
THE RESERVE COMPONENTS OF THE ARMED FORCES. 
(a) IN GENERAL.—Not later than one year after the date of 
the enactment of this Act, the Secretary of Defense shall conduct 
a feasibility study and cost estimate for a pilot program that uses 
predictive analytics and screening to identify mental health risk 
and provide early, targeted intervention for part-time members 
of the reserve components of the Armed Forces to improve readiness 
and mission success. 
(b) ELEMENTS.—The feasibility study conducted under sub-
section (a) shall include elements to assess the following with 
respect to the pilot program studied under such subsection: 
(1) The anticipated improvement in quality of behavioral 
health services for part-time members of the reserve compo-
nents of the Armed Forces and the impact of such improvement 
in quality of behavioral health services on their families and 
employers. 
(2) The anticipated impact on the culture surrounding 
behavioral health treatment and help-seeking behavior. 
(3) The feasibility of embedding mental health professionals 
with units that— 
(A) perform core mission sets and capabilities; and 
(B) carry out high-risk and high-demand missions. 
(4) The particular preventative mental health needs of 
units at different states of their operational readiness cycle. 
(5) The need for additional personnel of the Department 
of Defense to implement the pilot program. 
(6) The cost of implementing the pilot program throughout 
the reserve components of the Armed Forces. 
(7) The benefits of an integrated operational support team 
for the Air National Guard and Army National Guard units. 
(c) COMPARISON TO FULL-TIME MEMBERS OF RESERVE COMPO-
NENTS.—As part of the feasibility study conducted under subsection 
(a), the Secretary shall assess the mental health risk of part- 
time members of the reserve components of the Armed Forces
H. R. 2810—161 
as compared to full-time members of the reserve components of 
the Armed Forces. 
(d) USE OF EXISTING MODELS.—In conducting the feasibility 
study under subsection (a), the Secretary, to the extent practicable, 
shall make use of existing models for preventative mental health 
care. 
SEC. 733. REPORT ON PLAN TO IMPROVE PEDIATRIC CARE AND 
RELATED SERVICES FOR CHILDREN OF MEMBERS OF THE 
ARMED FORCES. 
(a) IN GENERAL.—Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall submit 
to the Committees on Armed Services of the Senate and the House 
of Representatives a report setting forth a plan of the Department 
of Defense to improve pediatric care and related services for children 
of members of the Armed Forces. 
(b) ELEMENTS.—The report required by subsection (a) shall 
include the following: 
(1) In order to ensure that children receive developmentally 
appropriate and age-appropriate health care services from the 
Department, a plan to align preventive pediatric care under 
the TRICARE program with— 
(A) standards for such care as required by the Patient 
Protection and Affordable Care Act (Public Law 111–148); 
(B) guidelines established for such care by the Early 
and Periodic Screening, Diagnosis, and Treatment program 
under the Medicaid program carried out under title XIX 
of the Social Security Act (42 U.S.C. 1396 et seq.); and 
(C) recommendations by organizations that specialize 
in pediatrics. 
(2) A plan to develop a uniform definition of ‘‘pediatric 
medical necessity’’ for the Department that aligns with rec-
ommendations of organizations that specialize in pediatrics in 
order to ensure that a consistent definition of such term is 
used in providing health care in military treatment facilities 
and by health care providers under the TRICARE program. 
(3) A plan to develop measures to evaluate and improve 
access to pediatric care, coordination of pediatric care, and 
health outcomes for such children. 
(4) A plan to include an assessment of access to pediatric 
specialty care in the annual report to Congress on the effective-
ness of the TRICARE program. 
(5) A plan to improve the quality of and access to behavioral 
health care under the TRICARE program for children of mem-
bers of the Armed Forces, including intensive outpatient and 
partial hospitalization services. 
(6) A plan to mitigate the impact of permanent changes 
of station and other service-related relocations of members of 
the Armed Forces on the continuity of health care services 
received by such children who have special medical or behav-
ioral health needs. 
(7) A plan to mitigate deficiencies in data collection, data 
utilization, and data analysis to improve pediatric care and 
related services for children of members of the Armed Forces. 
(c) TRICARE PROGRAM DEFINED.—In this section, the term 
‘‘TRICARE program’’ has the meaning given such term in section 
1072 of title 10, United States Code.
H. R. 2810—162 
SEC. 734. LONGITUDINAL MEDICAL STUDY ON BLAST PRESSURE EXPO-
SURE OF MEMBERS OF THE ARMED FORCES. 
(a) IN GENERAL.—The Secretary of Defense shall conduct a 
longitudinal medical study on blast pressure exposure of members 
of the Armed Forces during combat and training, including members 
who train with any high overpressure weapon system, such as 
anti-tank recoilless rifles or heavy-caliber sniper rifles. 
(b) ELEMENTS.—The study required under subsection (a) shall— 
(1) monitor, record, and analyze data on blast pressure 
exposure for any member of the Armed Forces who is likely 
to be exposed to a blast in training or combat; 
(2) assess the feasibility and advisability of including blast 
exposure history as part of the service record of a member, 
as a blast exposure log, in order to ensure that, if medical 
issues arise later, the member receives care for any service- 
connected injuries; and 
(3) review the safety precautions surrounding heavy 
weapons training to account for emerging research on blast 
exposure and the effects of such exposure on cognitive perform-
ance of members of the Armed Forces. 
(c) REPORTS.— 
(1) INTERIM REPORT.—Not later than one year after the 
date of the enactment of this Act, the Secretary shall submit 
to the Committees on Armed Services of the Senate and the 
House of Representatives an interim report on the study 
methods and action plan for the study under subsection (a). 
(2) FINAL REPORT.—Not later than four years after the 
date the Secretary begins the study under subsection (a), the 
Secretary shall submit to the Committees on Armed Services 
of the Senate and the House of Representatives a report on 
the results of such study. 
SEC. 735. STUDY ON SAFE OPIOID PRESCRIBING PRACTICES. 
(a) STUDY.—The Secretary of Defense shall conduct a study 
on the effectiveness of the training provided to military health 
care providers regarding opioid prescribing practices, initiatives 
in opioid safety, the use of the VA/DOD Clinical Practice Guideline 
for Management of Opioid Therapy for Chronic Pain, and other 
related training. 
(b) ELEMENTS.—The study under subsection (a) shall address 
the effectiveness of training with respect to the following: 
(1) Identifying and treating individuals with chronic pain. 
(2) Reducing the total number of prescription opioids dis-
pensed by the Department of Defense to beneficiaries of health 
care furnished by the Department. 
(3) Prescribing practices for opioid analgesic therapy, 
including— 
(A) reducing average dosage sizes; 
(B) reducing the average number of dosages; 
(C) reducing initial and average durations of opioid 
analgesic therapy; 
(D) reducing dose escalation when opioid analgesic 
therapy results in adequate pain reduction; and 
(E) reducing the average number of prescription opioid 
analgesics dispensed by the Department of Defense.
H. R. 2810—163 
(4) Reducing the number of overdoses due to prescription 
opioids for patients with acute pain and patients undergoing 
opioid therapy for chronic pain. 
(5) Providing counseling and referrals to treatment alter-
natives to opioid analgesics. 
(6) Providing education on the risks of opioid medications 
to individuals for whom such medications are prescribed, and 
to their families, with special consideration given to raising 
awareness among adolescents on such risks. 
(7) Effectiveness in communicating to military health care 
providers changes in policies of the Department of Defense 
regarding opioid safety and prescribing practices. 
(c) ASSESSMENT.—The Secretary of Defense shall also consider 
the feasibility and advisability of further strengthening opioid pre-
scribing practices by means of the following: 
(1) Developing and implementing a physician advisory com-
mittee of the Department of Defense regarding education pro-
grams for prescribers of opioid analgesics. 
(2) Developing methods to encourage health care providers 
of the Department to use physical therapy or alternative 
methods to treat acute or chronic pain. 
(3) Developing curricula regarding pain management and 
safe opioid analgesic prescription practices that incorporate 
opioid analgesic prescribing guidelines issued by the Centers 
for Disease Control and Prevention. 
(d) BRIEFING.—Not later than one year after the date of the 
enactment of this Act, the Secretary shall provide to the Committees 
on Armed Services of the House of Representatives and the Senate 
a briefing on the results of the study under subsection (a) and 
the assessment under subsection (c). 
SEC. 736. REPORT ON IMPLEMENTATION OF GAO RECOMMENDATIONS. 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit a report to the 
congressional defense committees on the implementation by the 
Department of Defense of the recommendations from the Govern-
ment Accountability Office report entitled ‘‘Actions Needed to 
Ensure Post-Traumatic Stress Disorder and Traumatic Brain Injury 
Are Considered in Misconduct Separations’’ and published May 
16, 2017. 
SEC. 737. DECLASSIFICATION BY DEPARTMENT OF DEFENSE OF CER-
TAIN INCIDENTS OF EXPOSURE OF MEMBERS OF THE 
ARMED FORCES TO TOXIC SUBSTANCES. 
(a) IN GENERAL.—The Secretary of Defense shall conduct a 
declassification review of documents related to any known incident 
in which not fewer than 100 members of the Armed Forces were 
intentionally exposed to a toxic substance that resulted in at least 
one case of a disability that a member of the medical profession 
has determined to be associated with that toxic substance. 
(b) LIMITATION.—The declassification required by subsection 
(a) shall be limited to information necessary for an individual 
who was potentially exposed to a toxic substance to determine 
the following: 
(1) Whether that individual was exposed to that toxic sub-
stance. 
(2) The potential severity of the exposure of that individual 
to that toxic substance.
H. R. 2810—164 
(3) Any potential health conditions that may have resulted 
from exposure to that toxic substance. 
(c) EXCEPTION.—The Secretary of Defense is not required to 
declassify documents under subsection (a) if the Secretary deter-
mines that declassification of those documents would materially 
and immediately threaten the security of the United States. 
(d) DEFINITIONS.—In this section: 
(1) ARMED
FORCES.—The term ‘‘Armed Forces’’ has the 
meaning given that term in section 101 of title 10, United 
States Code. 
(2) EXPOSED.—The term ‘‘exposed’’ means, with respect to 
a toxic substance, that an individual came into contact with 
that toxic substance in a manner that could be hazardous 
to the health of that individual, that may include if that toxic 
substance was inhaled, ingested, or touched the skin or eyes. 
(3) EXPOSURE.—The term ‘‘exposure’’ means, with respect 
to a toxic substance, an event during which an individual 
was exposed to that toxic substance. 
(4) TOXIC SUBSTANCE.—The term ‘‘toxic substance’’ means 
any substance determined by the Administrator of the Environ-
mental Protection Agency to be harmful to the environment 
or hazardous to the health of an individual if inhaled or 
ingested by or absorbed through the skin of that individual. 
SEC. 738. COORDINATION BY VETERANS HEALTH ADMINISTRATION 
OF EFFORTS TO UNDERSTAND EFFECTS OF BURN PITS. 
The Under Secretary for Health of the Department of Veterans 
Affairs, acting through the Office of Public Health of the Veterans 
Health Administration, shall coordinate efforts related to furthering 
understanding of burn pits, the effect of burn pits on veterans, 
and effective treatments relating to such effects, including with 
respect to research efforts and training of clinical staff on related 
matters. 
SEC. 739. TRICARE TECHNICAL AMENDMENTS. 
(a) DEFINITION
OF TRICARE STANDARD.—Paragraph (15) of 
section 1072 of title 10, United States Code, is amended to read 
as follows: 
‘‘(15) The term ‘TRICARE Standard’ means the TRICARE 
program made available prior to January 1, 2018, covering 
health benefits contracted for under the authority of section 
1079(a) or 1086(a) of this title and subject to the same rates 
and conditions as apply to persons covered under those sec-
tions.’’. 
(b) COST-SHARING AMOUNTS.— 
(1) TRICARE SELECT.— 
(A) ALLOWANCE OF COST-SHARING AMOUNTS AS DETER-
MINED BY THE SECRETARY.—Subsection (d) of section 1075 
of such title is amended by adding at the end the following 
new paragraph: 
‘‘(4) The cost-sharing requirements applicable to services not 
specifically addressed in the table set forth in paragraph (1) shall 
be established by the Secretary.’’. 
(B) MODIFICATION
OF
REFERENCE
TO
AMBULANCE 
CIVILIAN NETWORK.—Paragraph (1) of such subsection is 
amended, in the first column of the table, by striking 
‘‘Ambulance civilian network’’ and inserting ‘‘Ground ambu-
lance civilian network’’.
H. R. 2810—165 
(2) TRICARE PRIME.— 
(A) ALLOWANCE OF COST-SHARING AMOUNTS AS DETER-
MINED BY THE SECRETARY.—Subsection (b) of section 1075a 
of such title is amended by adding at the end the following 
new paragraph: 
‘‘(4) The cost-sharing requirements applicable to services not 
specifically addressed in the table set forth in paragraph (1) shall 
be established by the Secretary.’’. 
(B) MODIFICATION
OF
REFERENCE
TO
AMBULANCE 
CIVILIAN
NETWORK.—Paragraph (1) of such section is 
amended, in the first column of the table, by striking 
‘‘Ambulance civilian network’’ and inserting ‘‘Ground ambu-
lance civilian network’’. 
(c) MEDICAL CARE FOR DEPENDENTS.— 
(1) REFERENCE TO MEDICALLY NECESSARY VITAMINS.—Para-
graphs (3) and (18) of section 1077(a) of such title are amended 
by striking ‘‘subsection (g)’’ each place it appears and inserting 
‘‘subsection (h)’’. 
(2) ELIGIBILITY
OF
DEPENDENTS
TO
PURCHASE
HEARING 
AIDS.—Section 1077(g) of such title is amended by striking 
‘‘of former members of the uniformed services’’ and inserting 
‘‘eligible for care under this section’’. 
(d) MODIFICATION OF REFERENCE TO FISCAL YEAR.— 
(1) CONTRACTS FOR MEDICAL CARE FOR SPOUSES AND CHIL-
DREN.—Section 1079(b) such title is amended by striking ‘‘fiscal 
year’’ each place it appears and inserting ‘‘calendar year’’. 
(2) CONTRACTS FOR HEALTH BENEFITS FOR CERTAIN MEM-
BERS, FORMER
MEMBERS, AND
THEIR
DEPENDENTS.—Section 
1086(b) of such title is amended by striking ‘‘fiscal year’’ each 
place it appears and inserting ‘‘calendar year’’. 
(e) 
REFERRALS
AND
PREAUTHORIZATIONS
FOR
TRICARE 
PRIME.— 
(1) PREAUTHORIZATION FOR CARE AT RESIDENTIAL TREAT-
MENT CENTERS.—Section 1095f(b) of such title is amended by 
adding at the end the following new paragraph: 
‘‘(4) Inpatient care at a residential treatment center.’’. 
(2) REFERENCE.—Section 1075a(c) of such title is amended 
by striking ‘‘section 1075f(a)’’ and inserting ‘‘section 1095f(a)’’. 
(f) APPLICABILITY OF PREMIUM FOR DEPENDENT COVERAGE.— 
Section 1110b(c)(1) of such title is amended by striking ‘‘section 
1075 of this section’’ and inserting ‘‘section 1075 or 1075a of this 
title, as appropriate’’. 
TITLE VIII—ACQUISITION POLICY, AC-
QUISITION MANAGEMENT, AND RE-
LATED MATTERS 
Subtitle A—Acquisition Policy and Management 
Sec. 801. Statements of purpose for Department of Defense acquisition. 
Sec. 802. Management of intellectual property matters within the Department of 
Defense. 
Sec. 803. Performance of incurred cost audits. 
Sec. 804. Repeal of certain auditing requirements. 
Sec. 805. Increased simplified acquisition threshold. 
Sec. 806. Requirements related to the micro-purchase threshold. 
Sec. 807. Process for enhanced supply chain scrutiny. 
Sec. 808. Defense policy advisory committee on technology.
H. R. 2810—166 
Sec. 809. Report on extension of development, acquisition, and sustainment au-
thorities of the military departments to the United States Special Oper-
ations Command. 
Sec. 810 . Technical and conforming amendments related to program management 
provisions. 
Subtitle B—Amendments to General Contracting Authorities, Procedures, and 
Limitations 
Sec. 811. Modifications to cost or pricing data and reporting requirements. 
Sec. 812. Applicability of cost and pricing data certification requirements. 
Sec. 813. Sunset of certain provisions relating to the procurement of goods other 
than United States goods. 
Sec. 814. Comptroller General report on health and safety records. 
Sec. 815. Limitation on unilateral definitization. 
Sec. 816. Amendment to sustainment reviews. 
Sec. 817. Use of program income by eligible entities that carry out procurement 
technical assistance programs. 
Sec. 818. Enhanced post-award debriefing rights. 
Sec. 819. Amendments relating to information technology. 
Sec. 820. Change to definition of subcontract in certain circumstances. 
Sec. 821. Amendment relating to applicability of inflation adjustments. 
Sec. 822. Use of lowest price technically acceptable source selection process. 
Sec. 823. Exemption from design-build selection procedures. 
Sec. 824. Contract closeout authority. 
Sec. 825. Elimination of cost underruns as factor in calculation of penalties for cost 
overruns. 
Sec. 826. Modification to annual meeting requirement of Configuration Steering 
Boards. 
Sec. 827. Pilot program on payment of costs for denied Government Accountability 
Office bid protests. 
Subtitle C—Provisions Relating to Major Defense Acquisition Programs 
Sec. 831. Revisions to definition of major defense acquisition program. 
Sec. 832. Prohibition on use of lowest price technically acceptable source selection 
process for major defense acquisition programs. 
Sec. 833. Role of the Chief of the armed force in material development decision and 
acquisition system milestones. 
Sec. 834. Requirement to emphasize reliability and maintainability in weapon sys-
tem design. 
Sec. 835. Licensing of appropriate intellectual property to support major weapon 
systems. 
Sec. 836. Codification of requirements pertaining to assessment, management, and 
control of operating and support costs for major weapon systems. 
Sec. 837. Should-cost management. 
Sec. 838. Improvements to test and evaluation processes and tools. 
Sec. 839. Enhancements to transparency in test and evaluation processes and data. 
Subtitle D—Provisions Relating to Acquisition Workforce 
Sec. 841. Enhancements to the civilian program management workforce. 
Sec. 842. Credits to Department of Defense Acquisition Workforce Development 
Fund. 
Sec. 843. Improvements to the hiring and training of the acquisition workforce. 
Sec. 844. Extension and modifications to acquisition demonstration project. 
Subtitle E—Provisions Relating to Commercial Items 
Sec. 846. Procurement through commercial e-commerce portals. 
Sec. 847. Revision to definition of commercial item. 
Sec. 848. Commercial item determinations. 
Sec. 849. Review of regulations on commercial items. 
Sec. 850. Training in commercial items procurement. 
Subtitle F—Provisions Relating to Services Contracting 
Sec. 851. Improvement of planning for acquisition of services. 
Sec. 852. Standard guidelines for evaluation of requirements for services contracts. 
Sec. 853. Report on outcome-based services contracts. 
Sec. 854. Pilot program for longer term multiyear service contracts. 
Subtitle G—Provisions Relating to Other Transaction Authority and Prototyping 
Sec. 861. Contract authority for advanced development of initial or additional pro-
totype units.
H. R. 2810—167 
Sec. 862. Methods for entering into research agreements. 
Sec. 863. Education and training for transactions other than contracts and grants. 
Sec. 864. Other transaction authority for certain prototype projects. 
Sec. 865. Amendment to nontraditional and small contractor innovation proto-
typing program. 
Sec. 866. Middle tier of acquisition for rapid prototype and rapid fielding. 
Sec. 867. Preference for use of other transactions and experimental authority. 
Sec. 868. Prototype projects to digitize defense acquisition regulations, policies, and 
guidance, and empower user tailoring of acquisition process. 
Subtitle H—Provisions Relating to Software Acquisition 
Sec. 871. Noncommercial computer software acquisition considerations. 
Sec. 872. Defense Innovation Board analysis of software acquisition regulations. 
Sec. 873. Pilot program to use agile or iterative development methods to tailor 
major software-intensive warfighting systems and defense business sys-
tems. 
Sec. 874. Software development pilot program using agile best practices. 
Sec. 875. Pilot program for open source software. 
Subtitle I—Other Matters 
Sec. 881. Extension of maximum duration of fuel storage contracts. 
Sec. 882. Procurement of aviation critical safety items. 
Sec. 883. Modifications to the advisory panel on streamlining and codifying acquisi-
tion regulations. 
Sec. 884. Repeal of expired pilot program for leasing commercial utility cargo vehi-
cles. 
Sec. 885. Exception for business operations from requirement to accept $1 coins. 
Sec. 886. Development of Procurement Administrative Lead Time. 
Sec. 887. Notional milestones and standard timelines for contracts for foreign mili-
tary sales. 
Sec. 888. Assessment and authority to terminate or prohibit contracts for procure-
ment from Chinese companies providing support to the Democratic Peo-
ple’s Republic of Korea. 
Sec. 889. Report on defense contracting fraud. 
Sec. 890. Comptroller General report on contractor business system requirements. 
Sec. 891. Training on agile or iterative development methods. 
Subtitle A—Acquisition Policy and 
Management 
SEC. 801. STATEMENTS OF PURPOSE FOR DEPARTMENT OF DEFENSE 
ACQUISITION. 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall revise the Defense Federal 
Acquisition Regulation Supplement to include the following state-
ments of purpose: 
(1) The defense acquisition system (as defined in section 
2545 of title 10, United States Code) exists to manage the 
investments of the United States in technologies, programs, 
and product support necessary to achieve the national security 
strategy prescribed by the President pursuant to section 108 
of the National Security Act of 1947 (50 U.S.C. 3043) and 
to support the United States Armed Forces. 
(2) The investment strategy of the Department of Defense 
shall be postured to support not only the current United States 
Armed Forces, but also future Armed Forces of the United 
States. 
(3) The primary objective of Department of Defense acquisi-
tion is to acquire quality products that satisfy user needs with 
measurable improvements to mission capability and operational 
support, in a timely manner, and at a fair and reasonable 
price.
H. R. 2810—168 
SEC. 802. MANAGEMENT OF INTELLECTUAL PROPERTY MATTERS 
WITHIN THE DEPARTMENT OF DEFENSE. 
(a) MANAGEMENT OF INTELLECTUAL PROPERTY.— 
(1) IN GENERAL.—Chapter 137 of title 10, United States 
Code, is amended by inserting after section 2321 the following 
new section: 
‘‘§ 2322. Management of intellectual property matters within 
the Department of Defense 
‘‘(a) POLICY
REQUIRED.—The Secretary of Defense, acting 
through the Under Secretary of Defense for Acquisition and 
Sustainment, shall develop policy on the acquisition or licensing 
of intellectual property— 
‘‘(1) to enable coordination and consistency across the mili-
tary departments and the Department of Defense in strategies 
for acquiring or licensing intellectual property and commu-
nicating with industry; 
‘‘(2) to ensure that program managers are aware of the 
rights afforded the Federal Government and contractors in 
intellectual property and that program managers fully consider 
and use all available techniques and best practices for acquiring 
or licensing intellectual property early in the acquisition 
process; and 
‘‘(3) to encourage customized intellectual property strate-
gies for each system based on, at a minimum, the unique 
characteristics of the system and its components, the product 
support strategy for the system, the organic industrial base 
strategy of the military department concerned, and the commer-
cial market. 
‘‘(b) CADRE OF INTELLECTUAL PROPERTY EXPERTS.—(1) The Sec-
retary of Defense, acting through the Under Secretary of Defense 
for Acquisition and Sustainment, shall establish a cadre of per-
sonnel who are experts in intellectual property matters. The purpose 
of the cadre is to ensure a consistent, strategic, and highly 
knowledgeable approach to acquiring or licensing intellectual prop-
erty by providing expert advice, assistance, and resources to the 
acquisition workforce on intellectual property matters, including 
acquiring or licensing intellectual property. 
‘‘(2) The Under Secretary shall establish an appropriate leader-
ship structure and office within which the cadre shall be managed, 
and shall determine the appropriate official to whom members 
of the cadre shall report. 
‘‘(3) The cadre of experts shall be assigned to a program office 
or an acquisition command within a military department to advise, 
assist, and provide resources to a program manager or program 
executive officer on intellectual property matters at various stages 
of the life cycle of a system. In performing such duties, the experts 
shall— 
‘‘(A) interpret and provide counsel on laws, regulations, 
and policies relating to intellectual property; 
‘‘(B) advise and assist in the development of an acquisition 
strategy, product support strategy, and intellectual property 
strategy for a system; 
‘‘(C) conduct or assist with financial analysis and valuation 
of intellectual property; 
‘‘(D) assist in the drafting of a solicitation, contract, or 
other transaction;
H. R. 2810—169 
‘‘(E) interact with or assist in interactions with contractors, 
including communications and negotiations with contractors 
on solicitations and awards; and 
‘‘(F) conduct or assist with mediation if technical data 
delivered pursuant to a contract is incomplete or does not 
comply with the terms of agreements. 
‘‘(4)(A) In order to achieve the purpose set forth in paragraph 
(1), the Under Secretary shall ensure the cadre has the appropriate 
number of staff and such staff possesses the necessary skills, knowl-
edge, and experience to carry out the duties under paragraph (2), 
including in relevant areas of law, contracting, acquisition, logistics, 
engineering, financial analysis, and valuation. The Under Secretary, 
in coordination with the Defense Acquisition University and in 
consultation with academia and industry, shall develop a career 
path, including development opportunities, exchanges, talent 
management programs, and training, for the cadre. The Under 
Secretary may use existing authorities to staff the cadre, including 
those in subparagraphs (B), (C), (D), and (F). 
‘‘(B) Civilian personnel from within the Office of the Secretary 
of Defense, Joint Staff, military departments, Defense Agencies, 
and combatant commands may be assigned to serve as members 
of the cadre, upon request of the Director. 
‘‘(C) The Under Secretary may use the authorities for highly 
qualified experts under section 9903 of title 5, to hire experts 
as members of the cadre who are skilled professionals in intellectual 
property and related matters. 
‘‘(D) The Under Secretary may enter into a contract with a 
private-sector entity for specialized expertise to support the cadre. 
Such entity may be considered a covered Government support con-
tractor, as defined in section 2320 of this title. 
‘‘(E) In establishing the cadre, the Under Secretary shall give 
preference to civilian employees of the Department of Defense, 
rather than members of the armed forces, to maintain continuity 
in the cadre. 
‘‘(F) The Under Secretary is authorized to use amounts in 
the Defense Acquisition Workforce Development Fund for the pur-
pose of recruitment, training, and retention of the cadre, including 
paying salaries of newly hired members of the cadre for up to 
three years.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such chapter is amended by adding at the end 
the following new item: 
‘‘2322. Management of intellectual property matters within the Department of De-
fense.’’. 
(b) ADDITIONAL ACQUISITION POSITION.—Subsection 1721(b) of 
title 10, United States Code, is amended by adding at the end 
the following new paragraph: 
‘‘(12) Intellectual property.’’. 
SEC. 803. PERFORMANCE OF INCURRED COST AUDITS. 
(a) IN GENERAL.—Chapter 137 of title 10, United States Code, 
is amended by inserting after section 2313a the following new 
section: 
‘‘§ 2313b. Performance of incurred cost audits 
‘‘(a) COMPLIANCE WITH STANDARDS OF RISK AND MATERIALITY.— 
Not later than October 1, 2020, the Secretary of Defense shall
H. R. 2810—170 
comply with commercially accepted standards of risk and materi-
ality in the performance of each incurred cost audit of costs associ-
ated with a contract of the Department of Defense. 
‘‘(b) CONDITIONS FOR THE USE OF QUALIFIED AUDITORS TO PER-
FORM INCURRED COST AUDITS.—(1) To support the need of the 
Department of Defense for timely and effective incurred cost audits, 
and to ensure that the Defense Contract Audit Agency is able 
to allocate resources to higher-risk and more complex audits, the 
Secretary of Defense shall use qualified private auditors to perform 
a sufficient number of incurred cost audits of contracts of the 
Department of Defense to— 
‘‘(A) eliminate, by October 1, 2020, any backlog of incurred 
cost audits of the Defense Contract Audit Agency; 
‘‘(B) ensure that incurred cost audits are completed not 
later than one year after the date of receipt of a qualified 
incurred cost submission; 
‘‘(C) maintain an appropriate mix of Government and pri-
vate sector capacity to meet the current and future needs 
of the Department of Defense for the performance of incurred 
cost audits; 
‘‘(D) ensure that qualified private auditors perform incurred 
cost audits on an ongoing basis to improve the efficiency and 
effectiveness of the performance of incurred cost audits; and 
‘‘(E) limit multiyear auditing to ensure that multiyear 
auditing is conducted only— 
‘‘(A) to address outstanding incurred cost audits for 
which a qualified incurred cost submission was submitted 
to the Defense Contract Audit Agency more than 12 months 
before the date of the enactment of this section; or 
‘‘(B) when the contractor being audited submits a writ-
ten request, including a justification for the use of 
multiyear auditing, to the Under Secretary of Defense 
(Comptroller). 
‘‘(2) The Secretary of Defense shall consult with Federal agen-
cies that have awarded contracts or task orders to qualified private 
auditors to ensure that the Department of Defense is using, as 
appropriate, best practices relating to contracting with qualified 
private auditors. 
‘‘(3) The Secretary of Defense shall ensure that a qualified 
private auditor performing an incurred cost audit under this sec-
tion— 
‘‘(A) has no conflict of interest in performing such an audit, 
as defined by generally accepted government auditing stand-
ards; 
‘‘(B) possesses the necessary independence to perform such 
an audit, as defined by generally accepted government auditing 
standards; 
‘‘(C) signs a nondisclosure agreement, as appropriate, to 
protect proprietary or nonpublic data; 
‘‘(D) accesses and uses proprietary or nonpublic data fur-
nished to the qualified private auditor only for the purposes 
stated in the contract; 
‘‘(E) takes all reasonable steps to protect proprietary and 
nonpublic data furnished during the audit; and 
‘‘(F) does not use proprietary or nonpublic data provided 
to the qualified private auditor under the authority of this 
section to compete for Government or nongovernment contracts.
H. R. 2810—171 
‘‘(c) PROCEDURES FOR THE USE OF QUALIFIED PRIVATE AUDI-
TORS.—(1) Not later than October 1, 2018, the Secretary of Defense 
shall submit to the congressional defense committees a plan to 
implement the requirements of subsection (b). Such plan shall 
include, at a minimum— 
‘‘(A) a description of the incurred cost audits that the 
Secretary determines are appropriate to be conducted by quali-
fied private auditors, including the approximate number and 
dollar value of such incurred cost audits; 
‘‘(B) an estimate of the number and dollar value of incurred 
cost audits to be conducted by qualified private auditors for 
each of the fiscal years 2019 through 2025 necessary to meet 
the requirements of subsection (b); and 
‘‘(C) all other elements of an acquisition plan as required 
by the Federal Acquisition Regulation. 
‘‘(2) Not later than April 1, 2019, the Secretary of Defense 
or a Federal department or agency authorized by the Secretary 
shall award a contract or issue a task order under an existing 
contract to two or more qualified private auditors to perform 
incurred cost audits of costs associated with contracts of the Depart-
ment of Defense. The Defense Contract Management Agency or 
a contract administration office of a military department shall use 
a contract or a task order awarded or issued pursuant to this 
paragraph for the performance of an incurred cost audit, if doing 
so will assist the Secretary in meeting the requirements in sub-
section (b). 
‘‘(3) To improve the quality of incurred cost audits and reduce 
duplication of performance of such audits, the Secretary of Defense 
may provide a qualified private auditor with information on past 
or ongoing audit results or other relevant information on the entities 
the qualified private auditor is auditing. 
‘‘(4) The Secretary of Defense shall consider the results of 
an incurred cost audit performed under this section without regard 
to whether the Defense Contract Audit Agency or a qualified private 
auditor performed the audit. 
‘‘(5) The contracting officer for a contract that is the subject 
of an incurred cost audit shall have the sole discretion to determine 
what action should be taken based on an audit finding on direct 
costs of the contract. 
‘‘(d) QUALIFIED PRIVATE AUDITOR REQUIREMENTS.—(1) A quali-
fied private auditor awarded a contract or issued an task order 
under subsection (c)(2) shall conduct an incurred cost audit in 
accordance with the generally accepted government auditing stand-
ards. 
‘‘(2) A qualified private auditor awarded a contract or issued 
an task order under subsection (c)(2) shall develop and maintain 
complete and accurate working papers on each incurred cost audit. 
All working papers and reports on the incurred cost audit prepared 
by such qualified private auditor shall be the property of the Depart-
ment of Defense, except that the qualified private auditor may 
retain a complete copy of all working papers to support such reports 
made pursuant to this section. 
‘‘(3) A breach of contract by a qualified private auditor with 
respect to use of proprietary or nonpublic data may subject the 
qualified private auditor to—
H. R. 2810—172 
‘‘(A) criminal, civil, administrative, and contractual actions 
for penalties, damages, and other appropriate remedies by the 
United States; and 
‘‘(B) civil actions for damages and other appropriate rem-
edies by the contractor or subcontractor whose data are affected 
by the breach. 
‘‘(e) PEER REVIEW.—(1) Effective October 1, 2022, the Defense 
Contract Audit Agency may issue unqualified audit findings for 
an incurred cost audit only if the Defense Contract Audit Agency 
is peer reviewed by a commercial auditor and passes such peer 
review. Such peer review shall be conducted in accordance with 
the peer review requirements of generally accepted government 
auditing standards, including the requirements related to frequency 
of peer reviews, and shall be deemed to meet the requirements 
of the Defense Contract Audit Agency for a peer review under 
such standards. 
‘‘(2) Not later than October 1, 2019, the Secretary of Defense 
shall provide to the Committees on Armed Services of the Senate 
and the House of Representatives an update on the process of 
securing a commercial auditor to perform the peer review referred 
to in paragraph (1). 
‘‘(f) NUMERIC MATERIALITY STANDARDS
FOR INCURRED COST 
AUDITS.—(1) Not later than October 1, 2020, the Department of 
Defense shall implement numeric materiality standards for incurred 
cost audits to be used by auditors that are consistent with commer-
cially accepted standards of risk and materiality. 
‘‘(2) Not later than October 1, 2019, the Secretary of Defense 
shall submit to the congressional defense committees a report con-
taining proposed numeric materiality standards required under 
paragraph (1). In developing such standards, the Secretary shall 
consult with commercial auditors that conduct incurred cost audits, 
the advisory panel authorized under section 809 of the National 
Defense Authorization Act for Fiscal Year 2016 (Public Law 114– 
92; 129 Stat. 889), and other governmental and nongovernmental 
entities with relevant expertise. 
‘‘(g) TIMELINESS OF INCURRED COST AUDITS.—(1) The Secretary 
of Defense shall ensure that all incurred cost audits performed 
by qualified private auditors or the Defense Contract Audit Agency 
are performed in a timely manner. 
‘‘(2) The Secretary of Defense shall notify a contractor of the 
Department of Defense within 60 days after receipt of an incurred 
cost submission from the contractor whether the submission is 
a qualified incurred cost submission. 
‘‘(3) With respect to qualified incurred cost submissions received 
on or after the date of the enactment of this section, audit findings 
shall be issued for an incurred cost audit not later than one year 
after the date of receipt of such qualified incurred cost submission. 
‘‘(4) Not later than October 1, 2020, and subject to paragraph 
(5), if audit findings are not issued within one year after the 
date of receipt of a qualified incurred cost submission, the audit 
shall be considered to be complete and no additional audit work 
shall be conducted. 
‘‘(5) The Under Secretary of Defense (Comptroller) may waive 
the requirements of paragraph (4) on a case-by-case basis if the 
Director of the Defense Contract Audit Agency submits a written 
request. The Director of the Defense Contract Audit Agency shall 
include in the report required under section 2313a of this title
H. R. 2810—173 
the total number of waivers issued and the reasons for issuing 
each such waiver. 
‘‘(h) REVIEW OF AUDIT PERFORMANCE.—Not later than April 
1, 2025, the Comptroller General of the United States shall submit 
to the congressional defense committees a report that evaluates 
for the period beginning on October 1, 2019, and ending on August 
31, 2023— 
‘‘(1) the timeliness, individual cost, and quality of incurred 
cost audits, set forth separately by incurred cost audits per-
formed by the Defense Contract Audit Agency and by qualified 
private auditors; 
‘‘(2) the cost to contractors of the Department of Defense 
for incurred cost audits, set forth separately by incurred cost 
audits performed by the Defense Contract Audit Agency and 
by qualified private auditors; 
‘‘(3) the effect, if any, on other types of audits conducted 
by the Defense Contract Audit Agency that results from 
incurred cost audits conducted by qualified private auditors; 
and 
‘‘(4) the capability and capacity of qualified private auditors 
to conduct incurred cost audits for the Department of Defense. 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1) The term ‘commercial auditor’ means a private entity 
engaged in the business of performing audits. 
‘‘(2) The term ‘incurred cost audit’ means an audit of 
charges to the Government by a contractor under a flexibly 
priced contract. 
‘‘(3) The term ‘flexibly priced contract’ has the meaning 
given the term ‘flexibly-priced contracts and subcontracts’ in 
part 30 of the Federal Acquisition Regulation (section 30.001 
of title 48, Code of Federal Regulations). 
‘‘(4) The term ‘generally accepted government auditing 
standards’ means the generally accepted government auditing 
standards of the Comptroller General of the United States. 
‘‘(5) The term ‘numeric materiality standard’ means a dollar 
amount of misstatements, including omissions, contained in 
an incurred cost audit that would be material if the 
misstatements, individually or in the aggregate, could reason-
ably be expected to influence the economic decisions of the 
Government made on the basis of the incurred cost audit. 
‘‘(6) The term ‘qualified incurred cost submission’ means 
a submission by a contractor of costs incurred under a flexibly 
priced contract that has been qualified by the Department 
of Defense as sufficient to conduct an incurred cost audit. 
‘‘(7) The term ‘qualified private auditor’ means a commer-
cial auditor— 
‘‘(A) that performs audits in accordance with generally 
accepted government auditing standards; and 
‘‘(B) that has received a passing peer review rating, 
as defined by generally accepted government auditing 
standards.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by inserting after the item relating 
to section 2313a the following new item: 
‘‘2313b. Performance of incurred cost audits.’’.
H. R. 2810—174 
(c) AMENDMENT TO DUTIES OF THE ADVISORY PANEL ON STREAM-
LINING
AND
CODIFYING
ACQUISITION
REGULATIONS.—Subsection 
(c)(2) of section 809 of the National Defense Authorization Act 
for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 889), as amended 
by section 863(d) of the National Defense Authorization Act for 
Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2303), is 
amended— 
(1) in subparagraph (D) by striking ‘‘and’’ at the end; 
(2) by redesignating subparagraph (E) as subparagraph 
(F); 
(3) by adding after subparagraph (D) the following new 
subparagraph: 
‘‘(E) improve the efficiency of the contract auditing 
process, including through the development of risk-based 
materiality standards; and’’; and 
(4) in subparagraph (F) (as so redesignated), by striking 
‘‘subparagraphs (A) through (D)’’ and inserting ‘‘subparagraphs 
(A) through (E)’’. 
SEC. 804. REPEAL OF CERTAIN AUDITING REQUIREMENTS. 
Section 190 of title 10, United States Code, as proposed to 
be added by section 820(b)(1) of the National Defense Authorization 
Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2274), 
is amended by striking subsection (f). 
SEC. 805. INCREASED SIMPLIFIED ACQUISITION THRESHOLD. 
Section 134 of title 41, United States Code, is amended by 
striking ‘‘$100,000’’ and inserting ‘‘$250,000’’. 
SEC. 806. REQUIREMENTS RELATED TO THE MICRO-PURCHASE 
THRESHOLD. 
(a) INCREASE IN THRESHOLD.—Section 1902(a)(1) of title 41, 
United States Code, is amended by striking ‘‘$3,000’’ and inserting 
‘‘$10,000’’. 
(b) CONVENIENCE CHECKS.—A convenience check may not be 
used for an amount in excess of one half of the micro-purchase 
threshold under section 1902(a) of title 41, United States Code, 
or a lower amount established by the head of the agency. 
SEC. 807. PROCESS FOR ENHANCED SUPPLY CHAIN SCRUTINY. 
(a) PROCESS.—Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall establish 
a process for enhancing scrutiny of acquisition decisions in order 
to improve the integration of supply chain risk management into 
the overall acquisition decision cycle. 
(b) ELEMENTS.—The process under subsection (a) shall include 
the following elements: 
(1) Designation of a senior official responsible for overseeing 
the development and implementation of the process. 
(2) Development or integration of tools to support commer-
cial due-diligence, business intelligence, or otherwise analyze 
and monitor commercial activity to understand business rela-
tionships with entities determined to be threats to the United 
States. 
(3) Development of risk profiles of products or services 
based on commercial due-diligence tools and data services. 
(4) Development of education and training curricula for 
the acquisition workforce that supports the process.
H. R. 2810—175 
(5) Integration, as needed, with intelligence sources to 
develop threat profiles of entities determined to be threats 
to the United States. 
(6) Periodic review and assessment of software products 
and services on computer networks of the Department of 
Defense to remove prohibited products or services. 
(7) Synchronization of the use of current authorities for 
making supply chain decisions, including section 806 of Public 
Law 111–383 (10 U.S.C. 2304 note) or improved use of suspen-
sion and debarment officials. 
(8) Coordination with interagency, industrial, and inter-
national partners, as appropriate, to share information, develop 
Government-wide strategies for dealing with significant entities 
determined to be significant threats to the United States, and 
effectively use authorities in other departments and agencies 
to provide consistent, Government-wide approaches to supply 
chain threats. 
(9) Other matters as the Secretary considers necessary. 
(c) NOTIFICATION.—Not later than 90 days after establishing 
the process required by subsection (a), the Secretary shall provide 
a written notification to the Committees on Armed Services of 
the Senate and House of Representatives that the process has 
been established. The notification also shall include the following: 
(1) Identification of the official designated under subsection 
(b)(1). 
(2) Identification of tools and services currently available 
to the Department of Defense under subsection (b)(2). 
(3) Assessment of additional tools and services available 
under subsection (b)(2) that the Department of Defense should 
evaluate. 
(4) Identification of, or recommendations for, any statutory 
changes needed to improve the effectiveness of the process. 
(5) Projected resource needs for implementing any rec-
ommendations made by the Secretary. 
SEC. 808. DEFENSE POLICY ADVISORY COMMITTEE ON TECHNOLOGY. 
(a) ESTABLISHMENT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense, acting 
through the Chief Management Officer, shall form a committee 
of senior executives from United States firms in the national tech-
nology and industrial base to meet with the Secretary, the Secre-
taries of the military departments, and members of the Joint Chiefs 
of Staff to exchange information, including, as appropriate, classified 
information, on technology threats to the national security of the 
United States and on the emerging technologies from the national 
technology and industrial base that may become available to counter 
such threats in a timely manner. 
(b) MEETINGS.—The defense policy advisory committee on tech-
nology formed pursuant to subsection (a) shall meet with the Sec-
retary and the other Department of Defense officials specified in 
such subsection collectively at least once annually in each of fiscal 
years 2018 through 2022. The Secretary of Defense shall provide 
the congressional defense committees annual briefings on the 
meetings. 
(c) FEDERAL ADVISORY COMMITTEE ACT.—The Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the defense policy
H. R. 2810—176 
advisory committee on technology established pursuant to this sec-
tion. 
SEC. 809. REPORT ON EXTENSION OF DEVELOPMENT, ACQUISITION, 
AND SUSTAINMENT AUTHORITIES OF THE MILITARY 
DEPARTMENTS TO THE UNITED STATES SPECIAL OPER-
ATIONS COMMAND. 
(a) REVIEW.—The Secretary of Defense shall carry out a review 
of the authorities available to the Secretaries of the military depart-
ments and the acquisition executives of the military departments 
for the development, acquisition, and sustainment of technology, 
equipment, and services for the military departments in order to 
determine the feasibility and advisability of the provision of such 
authorities to the Commander of the United States Special Oper-
ations Command and the acquisition executive of the Command 
for the development, acquisition, and sustainment of special oper-
ations-peculiar technology, equipment, and services. 
(b) REPORT.—Not later than 120 days after the date of the 
enactment of this Act, the Secretary shall submit to the Committees 
on Armed Services of the Senate and the House of Representatives 
a report on the review required by subsection (a). The report shall 
include the following: 
(1) A description of the review. 
(2) An identification of the authorities the Secretary rec-
ommends for provision to the Commander of the United States 
Special Operations Command and the acquisition executive 
of the Command as described in subsection (a), and rec-
ommendations for any modifications of such authorities that 
the Secretary considers appropriate for purposes of the United 
States Special Operations Command. 
(3) Such recommendations for legislative or administrative 
action as the Secretary considers appropriate for the provision 
of authorities identified pursuant to paragraph (2) as described 
in subsection (a). 
(4) Such other matters as the Secretary considers appro-
priate in light of the review. 
SEC. 810. TECHNICAL AND CONFORMING AMENDMENTS RELATED TO 
PROGRAM MANAGEMENT PROVISIONS. 
(a) REPEAL OF DUPLICATIVE PROVISION RELATED TO PROGRAM 
AND PROJECT MANAGEMENT.—Subsection (c) of section 503 of title 
31, United States Code, as added by section 861(a)(1) of the National 
Defense Authorization Act for Fiscal Year 2017 (Public Law 114– 
328; 130 Stat. 2298), is repealed. 
(b) REPEAL OF DUPLICATIVE PROVISION RELATED TO PROGRAM 
MANAGEMENT
OFFICERS
AND
PROGRAM
MANAGEMENT
POLICY 
COUNCIL.—Section 1126 of title 31, United States Code, as added 
by section 861(b)(1) of the National Defense Authorization Act for 
Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2299), is repealed. 
(c) REPEAL
OF OBSOLETE PROVISIONS.—Section 861 of the 
National Defense Authorization Act for Fiscal Year 2017 (Public 
Law 114–328; 130 Stat. 2299) is repealed.
H. R. 2810—178 
implementation and effect of the amendments made by subsections 
(a) and (b). 
(d) REQUIREMENTS
FOR DEFENSE CONTRACT AUDIT AGENCY 
REPORT.— 
(1) IN GENERAL.—Section 2313a of title 10, United States 
Code, is amended— 
(A) in subsection (a)(2)— 
(i) in subparagraph (A)— 
(I) by inserting ‘‘and dollar value’’ after 
‘‘number’’; and 
(II) by inserting ‘‘, set forth separately by type 
of audit’’ after ‘‘pending’’; 
(ii) in subparagraph (C), by inserting ‘‘, both from 
the date of receipt of a qualified incurred cost submis-
sion and from the date the audit begins’’ after ‘‘audit’’; 
(iii) by amending subparagraph (D) to read as 
follows: 
‘‘(D) the sustained questioned costs, set forth separately 
by type of audit, both as a total value and as a percentage 
of the total questioned costs for the audit;’’; 
(iv) by striking subparagraph (E); and 
(v) by inserting after subparagraph (D) the fol-
lowing new subparagraphs: 
‘‘(E) the total number and dollar value of incurred 
cost audits completed, and the method by which such 
incurred cost audits were completed; 
‘‘(F) the aggregate cost of performing audits, set forth 
separately by type of audit; 
‘‘(G) the ratio of sustained questioned costs to the 
aggregate costs of performing audits, set forth separately 
by type of audit; and 
‘‘(H) the total number and dollar value of audits that 
are pending for a period longer than one year as of the 
end of the fiscal year covered by the report, and the fiscal 
year in which the qualified submission was received, set 
forth separately by type of audit;’’; and 
(B) by adding at the end the following new subsection: 
‘‘(d) DEFINITIONS.— 
‘‘(1) The terms ‘incurred cost audit’ and ‘qualified incurred 
cost submission’ have the meaning given those terms in section 
2313b of this title. 
‘‘(2) The term ‘sustained questioned costs’ means questioned 
costs that were recovered by the Federal Government as a 
result of contract negotiations related to such questioned costs.’’. 
(2) EXEMPTION TO REPORT TERMINATION REQUIREMENTS.— 
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), as amended by section 1061(j) of the National 
Defense Authorization Act for Fiscal Year 2017 (Public Law 
114–328; 130 Stat. 2405; 10 U.S.C. 111 note), does not apply 
to the report required to be submitted to Congress under section 
2313a of title 10, United States Code. 
(e) ADJUSTMENT
TO
VALUE
OF
COVERED
CONTRACTS
FOR 
REQUIREMENTS RELATING
TO ALLOWABLE COSTS.—Subparagraph 
(B) of section 2324(l)(1) of title 10, United States Code, is amended 
by striking ‘‘to the equivalent’’ and all that follows through ‘‘higher
H. R. 2810—179 
multiple of $50,000.’’ and inserting ‘‘in accordance with section 
1908 of title 41.’’. 
SEC. 812. APPLICABILITY OF COST AND PRICING DATA CERTIFICATION 
REQUIREMENTS. 
Section 830(d) of the National Defense Authorization Act for 
Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2286) is amended— 
(1) in paragraph (1)(A), by striking ‘‘same product’’ and 
inserting ‘‘same or similar product’’; 
(2) by redesignating paragraph (2) as paragraph (4); and 
(3) by inserting after paragraph (1) the following new para-
graphs: 
‘‘(2) DETERMINATION OF SAME OR SIMILAR PRODUCT.—The 
Secretary of Defense and the Secretary of State shall jointly 
determine whether a product is considered to be a similar 
product for the purposes of this pilot program. 
‘‘(3) WAIVER OF COST OR PRICING CERTIFICATION.—The Sec-
retary of Defense may waive the certification requirement under 
section 2306a(a)(2) of title 10, United States Code, if the Sec-
retary determines that the Federal Government has sufficient 
data and information regarding the reasonableness of the 
price.’’. 
SEC. 813. SUNSET OF CERTAIN PROVISIONS RELATING TO THE 
PROCUREMENT OF GOODS OTHER THAN UNITED STATES 
GOODS. 
(a) CHEMICAL WEAPONS ANTIDOTE.—Section 2534(c) of title 10, 
United States Code, is amended by adding at the end the following 
new paragraph: 
‘‘(5) CHEMICAL WEAPONS ANTIDOTE.—Subsections (a)(2) and 
(b)(2) shall cease to be effective on October 1, 2018.’’. 
(b) PHOTOVOLTAIC DEVICES.—Effective October 1, 2018, section 
858 of the Carl Levin and Howard P. ‘‘Buck’’ McKeon National 
Defense Authorization Act for Fiscal Year 2015 (Public Law 113– 
291; 10 U.S.C. 2534 note) is repealed. 
SEC. 814. COMPTROLLER GENERAL REPORT ON HEALTH AND SAFETY 
RECORDS. 
(1) IN GENERAL.—Not later than one year after the date 
of the enactment of this Act, the Comptroller General of the 
United States shall submit to the Secretary of Defense and 
the congressional defense committees a report on the safety 
and health records of Department of Defense contractors. 
(2) ELEMENTS.—The report required under paragraph (1) 
shall include the following elements: 
(A) A description of the existing procedures of the 
Department of Defense to evaluate the safety and health 
records of current and prospective contractors. 
(B) An evaluation of the adherence of the Department 
of Defense to such procedures. 
(C) An assessment of the current incidence of safety 
and health violations by Department of Defense contrac-
tors. 
(D) An assessment of whether the Secretary of Labor 
has the resources to investigate and identify safety and 
health violations by Department of Defense contractors. 
(E) An assessment of whether the Secretary of Labor 
should consider assuming an expanded investigatory role
H. R. 2810—180 
or a targeted enforcement program for ensuring the safety 
and health of individuals working under Department of 
Defense contracts. 
SEC. 815. LIMITATION ON UNILATERAL DEFINITIZATION. 
(a) LIMITATION.—Section 2326 of title 10, United States Code, 
is amended— 
(1) by redesignating subsections (c), (d), (e), (f), (g), (h), 
and (i) as subsections (d), (e), (f), (g), (h), (i), and (j) respectively; 
and 
(2) by inserting after subsection (b) the following new sub-
section (c): 
‘‘(c) LIMITATION
ON
UNILATERAL
DEFINITIZATION
BY
CON-
TRACTING OFFICER.—With respect to any undefinitized contractual 
action with a value greater than $50,000,000, if agreement is not 
reached on contractual terms, specifications, and price within the 
period or by the date provided in subsection (b)(1), the contracting 
officer may not unilaterally definitize those terms, specifications, 
or price over the objection of the contractor until— 
‘‘(1) the service acquisition executive for the military 
department that awarded the contract, or the Under Secretary 
of Defense for Acquisition and Sustainment if the contract 
was awarded by a Defense Agency or other component of the 
Department of Defense, approves the definitization in writing; 
‘‘(2) the contracting officer provides a copy of the written 
approval to the contractor; and 
‘‘(3) a period of 30 calendar days has elapsed after the 
written approval is provided to the contractor.’’. 
(b) CONFORMING AMENDMENT.—Section 2326(b)(3) of such title 
is amended by striking ‘‘subsection (g)’’ and inserting ‘‘subsection 
(h)’’. 
(c) CONFORMING REGULATIONS.—Not later than 120 days after 
the date of the enactment of this Act, the Secretary of Defense 
shall revise the Department of Defense Supplement to the Federal 
Acquisition Regulation to implement section 2326 of title 10, United 
States Code, as amended by this section. 
SEC. 816. AMENDMENT TO SUSTAINMENT REVIEWS. 
Section 2441(a) of title 10, United States Code, is amended 
by adding at the end the following: ‘‘The Secretary concerned shall 
make the memorandum and supporting documentation for each 
sustainment review available to the Under Secretary of Defense 
for Acquisition and Sustainment within 30 days after the review 
is completed.’’. 
SEC. 817. USE OF PROGRAM INCOME BY ELIGIBLE ENTITIES THAT 
CARRY OUT PROCUREMENT TECHNICAL ASSISTANCE PRO-
GRAMS. 
Section 2414 of title 10, United States Code, is amended— 
(1) in the section heading, by striking ‘‘LIMITATION’’ and 
inserting ‘‘FUNDING’’; and 
(2) by adding at the end the following new subsection: 
‘‘(d) USE OF PROGRAM INCOME.— 
‘‘(1) An eligible entity that earned income in a specified 
fiscal year from activities carried out pursuant to a procurement 
technical assistance program funded under this chapter may 
expend an amount of such income, not to exceed 25 percent 
of the cost of furnishing procurement technical assistance in
H. R. 2810—181 
such specified fiscal year, during the fiscal year following such 
specified fiscal year, to carry out a procurement technical assist-
ance program funded under this chapter. 
‘‘(2) An eligible entity that does not enter into a cooperative 
agreement with the Secretary for a fiscal year— 
‘‘(A) shall notify the Secretary of the amount of any 
income the eligible entity carried over from the previous 
fiscal year; and 
‘‘(B) may retain an amount of such income equal to 
10 percent of the value of assistance furnished by the 
Secretary under this section during the previous fiscal year. 
‘‘(3) In determining the value of assistance furnished by 
the Secretary under this section for any fiscal year, the Sec-
retary shall account for the amount of any income the eligible 
entity carried over from the previous fiscal year.’’. 
SEC. 818. ENHANCED POST-AWARD DEBRIEFING RIGHTS. 
(a) RELEASE
OF CONTRACT AWARD INFORMATION.—Not later 
than 180 days after the date of the enactment of this Act, the 
Secretary of Defense shall revise the Department of Defense Supple-
ment to the Federal Acquisition Regulation to require that all 
required post-award debriefings, while protecting the confidential 
and proprietary information of other offerors, include, at a min-
imum, the following: 
(1) In the case of a contract award in excess of 
$100,000,000, a requirement for disclosure of the agency’s writ-
ten source selection award determination, redacted to protect 
the confidential and proprietary information of other offerors 
for the contract award, and, in the case of a contract award 
in excess of $10,000,000 and not in excess of $100,000,000 
with a small business or nontraditional contractor, an option 
for the small business or nontraditional contractor to request 
such disclosure. 
(2) A requirement for a written or oral debriefing for all 
contract awards and task or delivery orders valued at 
$10,000,000 or higher. 
(3) Provisions ensuring that both unsuccessful and winning 
offerors are entitled to the disclosure described in paragraph 
(1) and the debriefing described in paragraph (2). 
(4) Robust procedures, consistent with section 2305(b)(5)(D) 
of title 10, United States Code, and provisions implementing 
that section in the Federal Acquisition Regulation, to protect 
the confidential and proprietary information of other offerors. 
(b) 
OPPORTUNITY
FOR
FOLLOW-UP
QUESTIONS.—Section 
2305(b)(5) of title 10, United States Code, is amended— 
(1) by redesignating subparagraphs (C), (D), and (E) as 
subparagraphs (D), (E), and (F), respectively; 
(2) in subparagraph (B)— 
(A) in clause (v), by striking ‘‘; and’’ and inserting 
a semicolon; 
(B) in clause (vi), by striking the period at the end 
and inserting ‘‘; and’’; and 
(C) by adding at the end the following new clause: 
‘‘(vii) an opportunity for a disappointed offeror to submit, 
within two business days after receiving a post-award 
debriefing, additional questions related to the debriefing.’’; and
H. R. 2810—182 
(3) by inserting after subparagraph (B) the following new 
subparagraph: 
‘‘(C) The agency shall respond in writing to any additional 
question submitted under subparagraph (B)(vii) within five business 
days after receipt of the question. The agency shall not consider 
the debriefing to be concluded until the agency delivers its written 
responses to the disappointed offeror.’’. 
(c) 
COMMENCEMENT
OF
POST-BRIEFING
PERIOD.—Section 
3553(d)(4) of title 31, United States Code, is amended— 
(1) by redesignating subparagraphs (A) and (B) as clauses 
(i) and (ii) respectively; 
(2) by striking ‘‘The period’’ and inserting ‘‘(A) The period’’; 
and 
(3) by adding at the end the following new subparagraph: 
‘‘(B) For procurements conducted by any component of the 
Department of Defense, the 5-day period described in subparagraph 
(A)(ii) does not commence until the day the Government delivers 
to a disappointed offeror the written responses to any questions 
submitted pursuant to section 2305(b)(5)(B)(vii) of title 10.’’. 
SEC. 819. AMENDMENTS RELATING TO INFORMATION TECHNOLOGY. 
(a) ELIMINATION OF SUNSET RELATING TO TRANSPARENCY AND 
RISK MANAGEMENT OF MAJOR INFORMATION TECHNOLOGY INVEST-
MENTS.—Subsection (c) of section 11302 of title 40, United States 
Code, is amended by striking the first paragraph (5). 
(b) ELIMINATION OF SUNSET RELATING TO INFORMATION TECH-
NOLOGY PORTFOLIO, PROGRAM, AND RESOURCE REVIEWS.—Section 
11319 of title 40, United States Code, is amended— 
(1) by redesignating the second subsection (c) as subsection 
(d); and 
(2) in subsection (d), as so redesignated, by striking para-
graph (6). 
(c) EXTENSION OF SUNSET RELATING TO FEDERAL DATA CENTER 
CONSOLIDATION INITIATIVE.—Subsection (e) of section 834 of the 
National Defense Authorization Act for Fiscal Year 2015 (Public 
Law 113–291; 44 U.S.C. 3601 note) is amended by striking ‘‘2018’’ 
and inserting ‘‘2020’’. 
SEC. 820. CHANGE TO DEFINITION OF SUBCONTRACT IN CERTAIN CIR-
CUMSTANCES. 
Section 1906(c)(1) of title 41, United States Code, is amended 
by adding at the end the following: ‘‘The term does not include 
agreements entered into by a contractor for the supply of commod-
ities that are intended for use in the performance of multiple 
contracts with the Federal Government and other parties and are 
not identifiable to any particular contract.’’. 
SEC. 821. AMENDMENT RELATING TO APPLICABILITY OF INFLATION 
ADJUSTMENTS. 
Section 1908(d) of title 41, United States Code, is amended 
by inserting before the period at the end the following: ‘‘and shall 
apply, in the case of the procurement of property or services by 
contract, to a contract, and any subcontract at any tier under 
the contract, in effect on that date without regard to the date 
of award of the contract or subcontract.’’.
H. R. 2810—183 
SEC. 822. USE OF LOWEST PRICE TECHNICALLY ACCEPTABLE SOURCE 
SELECTION PROCESS. 
(a) ADDITIONAL REQUIREMENTS.—Subsection (b) of section 813 
of the National Defense Authorization Act for Fiscal Year 2017 
(Public Law 114–328; 130 Stat 2270; 10 U.S.C. 2305 note) is 
amended— 
(1) in paragraph (5), by striking ‘‘; and’’ and inserting 
a semicolon; 
(2) in paragraph (6), by striking the period at the end 
and inserting a semicolon; and 
(3) by adding at the end the following new paragraphs: 
‘‘(7) the Department of Defense would realize no, or 
minimal, additional innovation or future technological advan-
tage by using a different methodology; and 
‘‘(8) with respect to a contract for procurement of goods, 
the goods procured are predominantly expendable in nature, 
nontechnical, or have a short life expectancy or short shelf 
life.’’. 
(b) REPORTING REQUIREMENT.— 
(1) IN GENERAL.—Subsection (d) of such section is amended 
by striking ‘‘contract exceeding $10,000,000’’ and inserting ‘‘con-
tract exceeding $5,000,000’’. 
(2) APPLICABILITY.—The amendment made by this sub-
section shall apply with respect to the second, third, and fourth 
reports submitted under subsection (d) of section 813 of the 
National Defense Authorization Act for Fiscal Year 2017 (Public 
Law 114–328; 130 Stat 2271; 10 U.S.C. 2305 note). 
SEC. 823. EXEMPTION FROM DESIGN-BUILD SELECTION PROCEDURES. 
Subsection (d) of section 2305a of title 10, United States Code, 
is amended by striking the second and third sentences and inserting 
the following: ‘‘If the contract value exceeds $4,000,000, the max-
imum number specified in the solicitation shall not exceed 5 
unless— 
‘‘(1) the solicitation is issued pursuant to a indefinite 
delivery-indefinite quantity contract for design-build construc-
tion; or 
‘‘(2)(A) the head of the contracting activity, delegable to 
a level no lower than the senior contracting official within 
the contracting activity, approves the contracting officer’s jus-
tification with respect to an individual solicitation that a max-
imum number greater than 5 is in the interest of the Federal 
Government; and 
‘‘(B) the contracting officer provides written documentation 
of how a maximum number greater than 5 is consistent with 
the purposes and objectives of the two-phase selection proce-
dures.’’. 
SEC. 824. CONTRACT CLOSEOUT AUTHORITY. 
Section 836(b)(1) of the National Defense Authorization Act 
for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2286) is 
amended by striking ‘‘entered into prior to fiscal year 2000’’ and 
inserting ‘‘entered into on a date that is at least 17 fiscal years 
before the current fiscal year’’.
H. R. 2810—184 
SEC. 825. ELIMINATION OF COST UNDERRUNS AS FACTOR IN CALCULA-
TION OF PENALTIES FOR COST OVERRUNS. 
(a) IN
GENERAL.—Section 828 of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114–92; 10 
U.S.C. 2430 note) is amended— 
(1) in subsection (a), by striking ‘‘each fiscal year beginning 
with fiscal year 2015’’ and inserting ‘‘each of fiscal years 2018 
through 2022’’; 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘or underrun’’; 
(B) in paragraph (2)— 
(i) by striking ‘‘or underruns’’; and 
(ii) by striking ‘‘,Technology, and Logistics’’ and 
inserting ‘‘and Sustainment’’; 
(C) in paragraph (3)— 
(i) by striking ‘‘and cost underruns’’; and 
(ii) by striking ‘‘or underruns’’; and 
(D) in paragraph (4), by striking ‘‘, except that the 
cost overrun penalty may not be a negative amount’’; 
(3) by redesignating subsections (c) and (d) as subsections 
(d) and (e), respectively; 
(4) by inserting after subsection (b) the following new sub-
section: 
‘‘(c) TOTAL COST OVERRUN PENALTY.—Notwithstanding the 
amount of a cost overrun penalty determined in (b), the total 
cost overrun penalty for a military department (including any cost 
overrun penalty for joint programs of military departments) for 
a fiscal year may not exceed $50,000,000.’’; and 
(5) in subsection (d) (as so redesignated)— 
(A) in paragraph (1)— 
(i) in the paragraph heading, by inserting ‘‘OR 
PROCUREMENT’’ after ‘‘EVALUATION’’; 
(ii) by striking ‘‘each fiscal year beginning with 
fiscal year 2015’’ and inserting ‘‘each of fiscal years 
2018 through 2022’’; 
(iii) by striking ‘‘each research’’ and inserting ‘‘the 
research’’; 
(iv) by striking ‘‘evaluation account’’ and inserting 
‘‘evaluation or procurement accounts’’; and 
(v) 
by 
striking 
‘‘percentage’’ 
and 
inserting 
‘‘amount’’; and 
(B) in paragraph (2)— 
(i) in the paragraph heading, by striking ‘‘AMOUNT’’ 
and inserting ‘‘AMOUNTS’’; 
(ii) 
by 
striking 
‘‘percentage 
reduction’’ 
and 
inserting ‘‘reductions’’; 
(iii) by striking ‘‘evaluation accounts’’ and inserting 
‘‘evaluation or procurement accounts’’; 
(iv) by striking ‘‘paragraph (1) is the percentage 
reduction’’ and inserting ‘‘paragraph (1) are the reduc-
tions’’; and 
(v) by inserting ‘‘, when combined,’’ after ‘‘equal’’. 
(b) PRIOR FISCAL YEARS.—The requirements of section 828 of 
the National Defense Authorization Act for Fiscal Year 2016 (Public 
Law 114–92; 10 U.S.C. 2430 note), as in effect on the day before 
the date of the enactment of this Act, shall continue to apply 
with respect to fiscal years beginning on or before October 1, 2016.
H. R. 2810—185 
SEC. 826. MODIFICATION TO ANNUAL MEETING REQUIREMENT OF 
CONFIGURATION STEERING BOARDS. 
Section 814(c)(4) of the Duncan Hunter National Defense 
Authorization Act for Fiscal Year 2009 (Public Law 110–417; 122 
Stat. 4529; 10 U.S.C. 2430 note) is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
‘‘(A) ANNUAL MEETING.—Except as provided in subpara-
graph (B), the Secretary’’; and 
(2) by adding at the end the following new subparagraph: 
‘‘(B) EXCEPTION.—If the service acquisition executive 
of the military department concerned determines, in 
writing, that there have been no changes to the program 
requirements of a major defense acquisition program 
during the preceding year, the Configuration Steering 
Board for such major defense acquisition program is not 
required to meet as described in subparagraph (A).’’. 
SEC. 827. PILOT PROGRAM ON PAYMENT OF COSTS FOR DENIED 
GOVERNMENT ACCOUNTABILITY OFFICE BID PROTESTS. 
(a) PILOT PROGRAM REQUIRED.—The Secretary of Defense shall 
carry out a pilot program to determine the effectiveness of requiring 
contractors to reimburse the Department of Defense for costs 
incurred in processing covered protests. 
(b) DURATION.—The pilot program shall— 
(1) begin on the date that is two years after the date 
of the enactment of this Act; and 
(2) end on the date that is five years after the date of 
the enactment of this Act. 
(c) REPORT.—Not later than 90 days after the date on which 
the pilot program under subsection (a) ends, the Secretary shall 
provide a report to the Committees on Armed Services of the House 
of Representatives and the Senate assessing the feasibility of 
making permanent such pilot program. 
(d) COVERED PROTEST DEFINED.—In this section, the term ‘‘cov-
ered protest’’ means a bid protest that was— 
(1) denied in an opinion issued by the Government Account-
ability Office; 
(2) filed by a party with revenues in excess of $250,000,000 
(based on fiscal year 2017 constant dollars) during the previous 
year; and 
(3) filed on or after October 1, 2019 and on or before 
September 30, 2022. 
Subtitle C—Provisions Relating to Major 
Defense Acquisition Programs 
SEC. 831. REVISIONS TO DEFINITION OF MAJOR DEFENSE ACQUISI-
TION PROGRAM. 
Section 2430(a) of title 10, United States Code, is amended— 
(1) in paragraph (1)(B), by inserting ‘‘in the case of a 
program that is not a program for the acquisition of an auto-
mated information system (either a product or a service),’’ after 
‘‘(B)’’; and 
(2) in paragraph (2)— 
(A) by striking ‘‘does not include an acquisition pro-
gram’’ and inserting the following: ‘‘does not include—
H. R. 2810—186 
‘‘(A) an acquisition program’’; and 
(B) by striking the period at the end and inserting 
the following: ‘‘; or 
‘‘(B) an acquisition program for a defense business system 
(as defined in section 2222(i)(1) of this title) carried out using 
the acquisition guidance issued pursuant to section 883(e) of 
the National Defense Authorization Act for Fiscal Year 2016 
(Public Law 114–92; 10 U.S.C. 2223a note).’’. 
SEC. 832. PROHIBITION ON USE OF LOWEST PRICE TECHNICALLY 
ACCEPTABLE SOURCE SELECTION PROCESS FOR MAJOR 
DEFENSE ACQUISITION PROGRAMS. 
(a) PROHIBITION.— 
(1) IN GENERAL.—Chapter 144 of title 10, United States 
Code, is amended by inserting after section 2441 the following 
new section: 
‘‘§ 2442. Prohibition on use of lowest price technically accept-
able source selection process 
‘‘(a) IN GENERAL.—The Department of Defense shall not use 
a lowest price technically acceptable source selection process for 
the engineering and manufacturing development contract of a major 
defense acquisition program. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) LOWEST
PRICE
TECHNICALLY
ACCEPTABLE
SOURCE 
SELECTION PROCESS.—The term ‘lowest price technically accept-
able source selection process’ has the meaning given that term 
in part 15 of the Federal Acquisition Regulation. 
‘‘(2) MAJOR
DEFENSE
ACQUISITION
PROGRAM.—The term 
‘major defense acquisition program’ has the meaning given 
that term in section 2430 of this title. 
‘‘(3) ENGINEERING AND MANUFACTURING DEVELOPMENT CON-
TRACT.—The term ‘engineering and manufacturing development 
contract’ means a prime contract for the engineering and manu-
facturing development of a major defense acquisition program.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 2441 the following new item: 
‘‘2442. Prohibition on use of lowest price technically acceptable source selection proc-
ess.’’. 
(b) APPLICABILITY.—The requirements of section 2442 of title 
10, United States Code, as added by subsection (a), shall apply 
to major defense acquisition programs for which budgetary 
authority is requested for fiscal year 2019 or a subsequent fiscal 
year. 
SEC. 833. ROLE OF THE CHIEF OF THE ARMED FORCE IN MATERIAL 
DEVELOPMENT 
DECISION 
AND 
ACQUISITION 
SYSTEM 
MILESTONES. 
Section 2547(b) of title 10, United States Code, is amended— 
(1) by striking ‘‘The Secretary’’ and inserting ‘‘(1) The Sec-
retary’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(2) Consistent with the performance of duties under subsection 
(a), the Chief of the armed force concerned, or in the case of 
a joint program the chiefs of the armed forces concerned, with 
respect to major defense acquisition programs, shall—
H. R. 2810—187 
‘‘(A) concur with the need for a material solution as identi-
fied in the Material Development Decision Review prior to 
entry into the Material Solution Analysis Phase under Depart-
ment of Defense Instruction 5000.02; 
‘‘(B) concur with the cost, schedule, technical feasibility, 
and performance trade-offs that have been made with regard 
to the program before Milestone A approval is granted under 
section 2366a of this title; 
‘‘(C) concur that appropriate trade-offs among cost, 
schedule, technical feasibility, and performance objectives have 
been made to ensure that the program is affordable when 
considering the per unit cost and the total life-cycle cost before 
Milestone B approval is granted under section 2366b of this 
title; and 
‘‘(D) concur that the requirements in the program capability 
document are necessary and realistic in relation to program 
cost and fielding targets as required by paragraph (1) before 
Milestone C approval is granted.’’. 
SEC. 834. REQUIREMENT TO EMPHASIZE RELIABILITY AND MAINTAIN-
ABILITY IN WEAPON SYSTEM DESIGN. 
(a) SUSTAINMENT FACTORS IN WEAPON SYSTEM DESIGN.— 
(1) IN GENERAL.—Chapter 144 of title 10, United States 
Code, as amended by section 832, is further amended by adding 
at the end the following new section: 
‘‘§ 2443. Sustainment factors in weapon system design 
‘‘(a) IN GENERAL.—The Secretary of Defense shall ensure that 
the defense acquisition system gives ample emphasis to sustainment 
factors, particularly those factors that are affected principally by 
the design of a weapon system, in the development of a weapon 
system. 
‘‘(b) REQUIREMENTS PROCESS.—The Secretary shall ensure that 
reliability and maintainability are included in the performance 
attributes of the key performance parameter on sustainment during 
the development of capabilities requirements. 
‘‘(c) SOLICITATION AND AWARD OF CONTRACTS.— 
‘‘(1) REQUIREMENT.—The program manager of a weapon 
system shall include in the solicitation for and terms of a 
covered contract for the weapon system clearly defined and 
measurable requirements for engineering activities and design 
specifications for reliability and maintainability. 
‘‘(2) EXCEPTION.—If the program manager determines that 
engineering activities and design specifications for reliability 
or maintainability should not be a requirement in a covered 
contract or a solicitation for such a contract, the program man-
ager shall document in writing the justification for the decision. 
‘‘(3) SOURCE
SELECTION
CRITERIA.—The Secretary shall 
ensure that sustainment factors, including reliability and 
maintainability, are given ample emphasis in the process for 
source selection. The Secretary shall encourage the use of objec-
tive reliability and maintainability criteria in the evaluation 
of competitive proposals. 
‘‘(d) CONTRACT PERFORMANCE.— 
‘‘(1) IN
GENERAL.—The Secretary shall ensure that the 
Department of Defense uses best practices for responding to 
the positive or negative performance of a contractor in meeting
H. R. 2810—188 
the sustainment requirements of a covered contract for a 
weapon system. The Secretary shall encourage the use of incen-
tive fees and penalties as appropriate and authorized in para-
graph (2) in all covered contracts for weapons systems. 
‘‘(2) AUTHORITY FOR INCENTIVE FEES AND PENALTIES.—The 
Secretary of Defense is authorized to include in any covered 
contract provisions for the payment of incentive fees to the 
contractor based on achievement of design specification require-
ments for reliability and maintainability of weapons systems 
under the contract, or the imposition of penalties to be paid 
by the contractor to the Government for failure to achieve 
such design specification requirements. Information about such 
fees or penalties shall be included in the solicitation for any 
covered contract that includes such fees or penalties. 
‘‘(3) MEASUREMENT OF RELIABILITY AND MAINTAINABILITY.— 
In carrying out paragraph (2), the program manager shall 
base determinations of a contractor’s performance on reliability 
and maintainability data collected during the program. Such 
data collection and associated evaluation metrics shall be 
described in detail in the covered contract. To the maximum 
extent practicable, such data shall be shared with appropriate 
contractor and government organizations. 
‘‘(4) NOTIFICATION.—The Secretary of Defense shall notify 
the congressional defense committees upon entering into a cov-
ered contract that includes incentive fees or penalties author-
ized in paragraph (2). 
‘‘(e) COVERED CONTRACT DEFINED.—In this section, the term 
‘covered contract’, with respect to a weapon system, means a con-
tract— 
‘‘(1) for the engineering and manufacturing development 
of a weapon system, including embedded software; or 
‘‘(2) for the production of a weapon system, including 
embedded software.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of subchapter I of such chapter, as amended by 
section 832, is further amended by adding at the end the 
following new item: 
‘‘2443. Sustainment factors in weapon system design.’’. 
(b) EFFECTIVE DATE FOR CERTAIN PROVISIONS.—Subsections (c) 
and (d) of section 2443 of title 10, United States Code, as added 
by subsection (a), shall apply with respect to any covered contract 
(as defined in that section) for which the contract solicitation is 
issued on or after the date occurring one year after the date of 
the enactment of this Act. 
(c) ENGINEERING CHANGE AUTHORIZED.—Subject to the avail-
ability of appropriations, the Secretary of Defense may fund 
engineering changes to the design of a weapon system in the 
engineering and manufacturing development phase or in the produc-
tion phase of an acquisition program to improve reliability or 
maintainability of the weapon system and reduce projected oper-
ating and support costs. 
SEC. 835. LICENSING OF APPROPRIATE INTELLECTUAL PROPERTY TO 
SUPPORT MAJOR WEAPON SYSTEMS. 
(a) NEGOTIATION
OF PRICE
FOR TECHNICAL DATA BEFORE 
DEVELOPMENT OR PRODUCTION OF MAJOR WEAPON SYSTEM.—
H. R. 2810—189 
(1) REQUIREMENT.—Chapter 144 of title 10, United States 
Code, is amended by inserting after section 2438 the following 
new section: 
‘‘§ 2439. Negotiation of price for technical data before 
development or production of major weapon sys-
tems 
‘‘The Secretary of Defense shall ensure that the Department 
of Defense, before selecting a contractor for the engineering and 
manufacturing development of a major weapon system, or for the 
production of a major weapon system, negotiates a price for tech-
nical data to be delivered under a contract for such development 
or production.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 2438 the following new item: 
‘‘2439. Negotiation of price for technical data before development or production of 
major weapon systems.’’. 
(3) EFFECTIVE
DATE.—Section 2439 of title 10, United 
States Code, as added by paragraph (1), shall apply with respect 
to any contract for engineering and manufacturing development 
of a major weapon system, or for the production of a major 
weapon system, for which the contract solicitation is issued 
on or after the date occurring one year after the date of the 
enactment of this Act. 
(b) WRITTEN DETERMINATION FOR MILESTONE B APPROVAL.— 
(1) IN GENERAL.—Subsection (a)(3) of section 2366b of title 
10, United States Code, is amended— 
(A) by striking ‘‘and’’ at the end of subparagraph (M); 
and 
(B) by inserting after subparagraph (N) the following 
new subparagraph: 
‘‘(O) appropriate actions have been taken to negotiate 
and enter into a contract or contract options for the tech-
nical data required to support the program; and’’. 
(2) EFFECTIVE
DATE.—Section 2366b(a)(3)(O) of title 10, 
United States Code, as added by paragraph (1), shall apply 
with respect to any major defense acquisition program receiving 
Milestone B approval on or after the date occurring one year 
after the date of the enactment of this Act. 
(c) PREFERENCE
FOR NEGOTIATION
OF CUSTOMIZED LICENSE 
AGREEMENTS.—Section 2320 of title 10, United States Code, is 
amended— 
(1) by redesignating subsections (f) and (g) as subsections 
(g) and (h), respectively; and 
(2) by inserting after subsection (e) the following new sub-
section (f): 
‘‘(f) PREFERENCE FOR SPECIALLY NEGOTIATED LICENSES.—The 
Secretary of Defense shall, to the maximum extent practicable, 
negotiate and enter into a contract with a contractor for a specially 
negotiated license for technical data to support the product support 
strategy of a major weapon system or subsystem of a major weapon 
system. In performing the assessment and developing the cor-
responding strategy required under subsection (e) for such a system 
or subsystem, a program manager shall consider the use of specially
H. R. 2810—190 
negotiated licenses to acquire customized technical data appropriate 
for the particular elements of the product support strategy.’’. 
SEC. 836. CODIFICATION OF REQUIREMENTS PERTAINING TO ASSESS-
MENT, MANAGEMENT, AND CONTROL OF OPERATING AND 
SUPPORT COSTS FOR MAJOR WEAPON SYSTEMS. 
(a) CODIFICATION AND AMENDMENT.— 
(1) IN GENERAL.—Chapter 137 of title 10, United States 
Code, is amended by inserting after section 2337 the following 
new section: 
‘‘§ 2337a. Assessment, management, and control of operating 
and support costs for major weapon systems 
‘‘(a) GUIDANCE REQUIRED.—The Secretary of Defense shall issue 
and maintain guidance on actions to be taken to assess, manage, 
and control Department of Defense costs for the operation and 
support of major weapon systems. 
‘‘(b) ELEMENTS.—The guidance required by subsection (a) shall, 
at a minimum— 
‘‘(1) be issued in conjunction with the comprehensive guid-
ance on life-cycle management and the development and 
implementation of product support strategies for major weapon 
systems required by section 2337 of this title; 
‘‘(2) require the military departments to retain each esti-
mate of operating and support costs that is developed at any 
time during the life cycle of a major weapon system, together 
with supporting documentation used to develop the estimate; 
‘‘(3) require the military departments to update estimates 
of operating and support costs periodically throughout the life 
cycle of a major weapon system, to determine whether prelimi-
nary information and assumptions remain relevant and 
accurate, and identify and record reasons for variances; 
‘‘(4) establish policies and procedures for the collection, 
organization, maintenance, and availability of standardized 
data on operating and support costs for major weapon systems 
in accordance with section 2222 of this title; 
‘‘(5) establish standard requirements for the collection and 
reporting of data on operating and support costs for major 
weapon systems by contractors performing weapon system 
sustainment functions in an appropriate format, and develop 
contract clauses to ensure that contractors comply with such 
requirements; 
‘‘(6) require the military departments— 
‘‘(A) to collect and retain data from operational and 
developmental testing and evaluation on the reliability and 
maintainability of major weapon systems; and 
‘‘(B) to use such data to inform system design decisions, 
provide insight into sustainment costs, and inform esti-
mates of operating and support costs for such systems; 
‘‘(7) require the military departments to ensure that 
sustainment factors are fully considered at key life-cycle 
management decision points and that appropriate measures 
are taken to reduce operating and support costs by influencing 
system design early in development, developing sound 
sustainment strategies, and addressing key drivers of costs; 
‘‘(8) require the military departments to conduct an inde-
pendent logistics assessment of each major weapon system prior
H. R. 2810—191 
to key acquisition decision points (including milestone decisions) 
to identify features that are likely to drive future operating 
and support costs, changes to system design that could reduce 
such costs, and effective strategies for managing such costs; 
‘‘(9) include— 
‘‘(A) reliability metrics for major weapon systems; and 
‘‘(B) requirements on the use of metrics under subpara-
graph (A) as triggers— 
‘‘(i) to conduct further investigation and analysis 
into drivers of those metrics; and 
‘‘(ii) to develop strategies for improving reliability, 
availability, and maintainability of such systems at 
an affordable cost; and 
‘‘(10) require the military departments to conduct periodic 
reviews of operating and support costs of major weapon systems 
after such systems achieve initial operational capability to iden-
tify and address factors resulting in growth in operating and 
support costs and adapt support strategies to reduce such costs. 
‘‘(c) RETENTION OF DATA ON OPERATING AND SUPPORT COSTS.— 
‘‘(1) IN GENERAL.—The Director of Cost Assessment and 
Program Evaluation shall be responsible for developing and 
maintaining a database on operating and support estimates, 
supporting documentation, and actual operating and support 
costs for major weapon systems. 
‘‘(2) SUPPORT.—The Secretary of Defense shall ensure that 
the Director, in carrying out such responsibility— 
‘‘(A) promptly receives the results of all cost estimates 
and cost analyses conducted by the military departments 
with regard to operating and support costs of major weapon 
systems; 
‘‘(B) has timely access to any records and data of the 
military departments (including classified and proprietary 
information) that the Director considers necessary to carry 
out such responsibility; and 
‘‘(C) with the concurrence of the Under Secretary of 
Defense for Acquisition and Sustainment, may direct the 
military departments to collect and retain information nec-
essary to support the database. 
‘‘(d) MAJOR WEAPON SYSTEM DEFINED.—In this section, the 
term ‘major weapon system’ has the meaning given that term 
in section 2379(f) of title 10, United States Code.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 137 of such title is amended by adding 
after the item relating to section 2337 the following new item: 
‘‘2337a. Assessment, management, and control of operating and support costs for 
major weapon systems.’’. 
(b) REPEAL OF SUPERSEDED SECTION.— 
(1) 
REPEAL.—Section 
832 
of 
the 
National 
Defense 
Authorization Act for Fiscal Year 2012 (Public Law 112–81; 
10 U.S.C. 2430 note) is repealed. 
(2) CONFORMING AMENDMENT.—Section 2441(c) of title 10, 
United States Code, is amended by striking ‘‘section 2337 of 
this title’’ and all that follows through the period and inserting 
‘‘sections 2337 and 2337a of this title.’’.
H. R. 2810—192 
SEC. 837. SHOULD-COST MANAGEMENT. 
(a) REQUIREMENT FOR REGULATIONS.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall amend the Defense Supplement to the Federal Acquisition 
Regulation to provide for the appropriate use of the should-cost 
review process of a major weapon system in a manner that is 
transparent, objective, and provides for the efficiency of the systems 
acquisition process in the Department of the Defense. 
(b) REQUIRED ELEMENTS.—The regulations required under sub-
section (a) shall incorporate, at a minimum, the following elements: 
(1) A description of the features of the should-cost review 
process. 
(2) Establishment of a process for communicating with 
the prime contractor on the program the elements of a proposed 
should-cost review. 
(3) A method for ensuring that identified should-cost 
savings opportunities are based on accurate, complete, and 
current information and can be quantified and tracked. 
(4) A description of the training, skills, and experience 
that Department of Defense and contractor officials carrying 
out a should-cost review in subsection (a) should possess. 
(5) A method for ensuring appropriate collaboration with 
the contractor throughout the review process. 
(6) Establishment of review process requirements that pro-
vide for sufficient analysis and minimize any impact on program 
schedule. 
SEC. 838. IMPROVEMENTS TO TEST AND EVALUATION PROCESSES AND 
TOOLS. 
(a) DEVELOPMENTAL TEST PLAN SUFFICIENCY ASSESSMENTS.— 
(1) ADDITION TO MILESTONE B BRIEF SUMMARY REPORT.— 
Section 2366b(c)(1) of title 10, United States Code, is amended— 
(A) by redesignating subparagraph (G) as subpara-
graph (H); and 
(B) by inserting after subparagraph (F) the following 
new subparagraph (G): 
‘‘(G) An assessment of the sufficiency of developmental 
test and evaluation plans, including the use of automated 
data analytics or modeling and simulation tools and meth-
odologies.’’. 
(2) ADDITION TO MILESTONE C BRIEF SUMMARY REPORT.— 
Section 2366c(a) of such title is amended by inserting after 
paragraph (3) the following new paragraph: 
‘‘(4) An assessment of the sufficiency of the developmental 
test and evaluation completed, including the use of automated 
data analytics or modeling and simulation tools and methodolo-
gies.’’. 
(3) RESPONSIBILITY
FOR
CONDUCTING
ASSESSMENTS.—For 
purposes of the sufficiency assessments required by section 
2366b(c)(1) and section 2366c(a)(4) of such title, as added by 
paragraphs (1) and (2), with respect to a major defense acquisi-
tion program— 
(A) if the milestone decision authority for the program 
is the service acquisition executive of the military depart-
ment that is managing the program, the sufficiency assess-
ment shall be conducted by the senior official within the
H. R. 2810—193 
military department with responsibility for developmental 
testing; and 
(B) if the milestone decision authority for the program 
is the Under Secretary of Defense for Acquisition and 
Sustainment, the sufficiency assessment shall be conducted 
by the senior Department of Defense official with responsi-
bility for developmental testing. 
(4) GUIDANCE REQUIRED.—Within one year after the date 
of the enactment of this Act, the senior Department of Defense 
official with responsibility for developmental testing shall 
develop guidance for the sufficiency assessments required by 
section 2366b(c)(1) and section 2366c(a)(4) of title 10, United 
States Code, as added by paragraphs (1) and (2). At a minimum, 
the guidance shall require— 
(A) for the sufficiency assessment required by section 
2366b(c)(1) of such title, that the assessment address the 
sufficiency of— 
(i) the developmental test and evaluation plan; 
(ii) 
the 
developmental 
test 
and 
evaluation 
schedule, including a comparison to historic analogous 
systems; 
(iii) 
the 
developmental 
test 
and 
evaluation 
resources (facilities, personnel, test assets, data ana-
lytics tools, and modeling and simulation capabilities); 
(iv) the risks of developmental test and production 
concurrency; and 
(v) the developmental test criteria for entering the 
production phase; and 
(B) for the sufficiency assessment required by section 
2366c(a)(4) of such title, that the assessment address— 
(i) the sufficiency of the developmental test and 
evaluation completed; 
(ii) the sufficiency of the plans and resources avail-
able for remaining developmental test and evaluation; 
(iii) the risks identified during developmental 
testing to the production and deployment phase; 
(iv) the sufficiency of the plans and resources for 
remaining developmental test and evaluation; and 
(v) the readiness of the system to perform sched-
uled initial operational test and evaluation. 
(b) EVALUATION OF DEPARTMENT OF DEFENSE NEED FOR CEN-
TRALIZED TOOLS
FOR DEVELOPMENTAL TEST
AND EVALUATION.— 
The Secretary of Defense shall evaluate the strategy of the Depart-
ment of Defense for developing and expanding the use of tools 
designed to facilitate the cost effectiveness and efficiency of develop-
mental testing, including automated test methods and tools, mod-
eling and simulation tools, and data analytics technologies. The 
evaluation shall include a determination of the appropriate role 
of the senior Department of Defense official with responsibility 
for developmental testing in developing enterprise level strategies 
related to such types of testing tools. 
SEC. 839. ENHANCEMENTS TO TRANSPARENCY IN TEST AND EVALUA-
TION PROCESSES AND DATA. 
(a) ADDITIONAL TEST AND EVALUATION DUTIES OF MILITARY 
SECRETARIES AND DEFENSE AGENCY HEADS.—
H. R. 2810—194 
(1) REPORT
ON
COMPARISON
OF
OPERATIONAL
TEST
AND 
EVALUATION
RESULTS
TO
LEGACY
ITEMS
OR
COMPONENTS.— 
Concurrent with the submission of a report required under 
section 2399(b)(2) of title 10, United States Code, the Secretary 
of a military department or the head of a Defense Agency 
may provide to the congressional defense committees and the 
Secretary of Defense a report describing of the performance 
of the items or components evaluated as part of the operational 
test and evaluation for each major defense acquisition program 
conducted under such section by the Director of Operational 
Test and Evaluation in relation to comparable legacy items 
or components, if such items or components exist and relevant 
data are available without requiring additional testing. 
(2) ADDITIONAL REPORT ON OPERATIONAL TEST AND EVALUA-
TION ACTIVITIES.—Within 45 days after the submission of an 
annual report required by section 139(h) of title 10, United 
States Code, the Secretaries of the military departments may 
each submit to the congressional defense committees a report 
addressing any concerns related to information included in 
the annual report, or providing updated or additional informa-
tion, as appropriate. 
(b) REQUIREMENTS FOR COLLECTION OF COST DATA ON TEST 
AND EVALUATION.— 
(1) IN GENERAL.—Not later than one year after the date 
of the enactment of this Act and subject to paragraph (2), 
the Director of Operational Test and Evaluation, the senior 
official of the Department of Defense with responsibility for 
developmental testing, and the Director of the Test Resource 
Management Center shall jointly develop policies, procedures, 
guidance, and a method to collect data that ensures that con-
sistent and high quality data are collected on the full range 
of estimated and actual developmental, live fire, and operational 
testing costs for major defense acquisition programs. 
(2) CONCURRENCE AND COORDINATION REQUIRED.—Before 
implementing the policies, procedures, guidance, and method 
developed under paragraph (1), the Director of Operational 
Test and Evaluation, the senior official of the Department 
of Defense with responsibility for developmental testing, and 
the Director of the Test Resource Management Center shall— 
(A) obtain the concurrence of the Director for Cost 
Assessment and Program Evaluation; and 
(B) coordinate with the Secretaries of the military 
departments. 
(3) DATA REQUIREMENTS.— 
(A) ELECTRONIC
DATABASE.—Data on estimated and 
actual developmental, live fire, and operational testing 
costs shall be maintained in an electronic database main-
tained by the Director for Cost Assessment and Program 
Evaluation or another appropriate official of the Depart-
ment of Defense, and shall be made available for analysis 
by testing, acquisition, and other appropriate officials of 
the Department of Defense, as determined by the Director 
of Operational Test and Evaluation, the senior official of 
the Department of Defense with responsibility for develop-
mental testing, or the Director of the Test Resource 
Management Center.
H. R. 2810—195 
(B) DIAGGREGATION
BY
COSTS.—To the maximum 
extent practicable, data collected under this subsection 
shall be set forth separately by costs for developmental 
testing, operational testing, and training. 
(c) MAJOR DEFENSE ACQUISITION PROGRAM DEFINED.—In this 
section, the term ‘‘major defense acquisition program’’ has the 
meaning provided in section 2430 of title 10, United States Code. 
Subtitle D—Provisions Relating to 
Acquisition Workforce 
SEC. 841. ENHANCEMENTS TO THE CIVILIAN PROGRAM MANAGEMENT 
WORKFORCE. 
(a) ESTABLISHMENT OF PROGRAM MANAGER DEVELOPMENT PRO-
GRAM.— 
(1) IN GENERAL.—The Secretary of Defense, in consultation 
with the Secretaries of the military departments, shall imple-
ment a program manager development program to provide for 
the professional development of high-potential, experienced 
civilian personnel. Personnel shall be competitively selected 
for the program based on their potential to become a program 
manager of a major defense acquisition program, as defined 
in section 2430 of title 10, United States Code. The program 
shall be administered and overseen by the Secretary of each 
military department, acting through the service acquisition 
executive for the department concerned. 
(2) PLAN REQUIRED.—Not later than one year after the 
date of the enactment of this Act, the Secretary of Defense 
shall provide to the Committees on Armed Services of the 
Senate and the House of Representatives a comprehensive plan 
to implement the program established under paragraph (1). 
In developing the plan, the Secretary of Defense shall seek 
the input of relevant external parties, including professional 
associations, other government entities, and industry. The plan 
shall include the following elements: 
(A) An assessment of the minimum level of subject 
matter experience, education, years of experience, certifi-
cations, and other qualifications required to be selected 
into the program, set forth separately for current Depart-
ment of Defense employees and for personnel hired into 
the program from outside the Department of Defense. 
(B) A description of hiring flexibilities to be used to 
recruit qualified personnel from outside the Department 
of Defense. 
(C) A description of the extent to which mobility agree-
ments will be required to be signed by personnel selected 
for the program during their participation in the program 
and after their completion of the program. The use of 
mobility agreements shall be applied to help maximize 
the flexibility of the Department of Defense in assigning 
personnel, while not inhibiting the participation of the 
most capable candidates. 
(D) A description of the tenure obligation required 
of personnel selected for the program.
H. R. 2810—196 
(E) A plan for training during the course of the pro-
gram, including training in leadership, program manage-
ment, engineering, finance and budgeting, market research, 
business acumen, contracting, supplier management, 
requirement setting and tradeoffs, intellectual property 
matters, and software. 
(F) A description of career paths to be followed by 
personnel in the program in order to ensure that personnel 
in the program gain expertise in the program management 
functional career field competencies identified by the 
Department in existing guidance and the topics listed in 
subparagraph (E), including— 
(i) a determination of the types of advanced edu-
cational degrees that enhance program management 
skills and the mechanisms available to the Department 
of Defense to facilitate the attainment of those degrees 
by personnel in the program; 
(ii) a determination of required assignments to 
positions within acquisition programs, including posi-
tion type and acquisition category of the program office; 
(iii) a determination of required or encouraged 
rotations to career broadening positions outside of 
acquisition programs; and 
(iv) a determination of how the program will 
ensure the opportunity for a required rotation to 
industry of at least six months to develop an under-
standing of industry motivation and business acumen, 
such as by developing an industry exchange program 
for civilian program managers, similar to the Corporate 
Fellows Program of the Secretary of Defense. 
(G) A general description of the number of personnel 
anticipated to be selected into the program, how frequently 
selections will occur, how long personnel selected into the 
program will participate in the program, and how personnel 
will be placed into an assignment at the completion of 
the program. 
(H) A description of benefits that will be offered under 
the program using existing human capital flexibilities to 
retain qualified employees, such as student loan repay-
ments, bonuses, or pay banding. 
(I) An assessment of personnel flexibilities needed to 
allow the military departments and the Defense Agencies 
to reassign or remove program managers that do not per-
form effectively. 
(J) A description of how the program will be adminis-
tered and overseen by the Secretaries of each military 
department, acting through the service acquisition execu-
tive for the department concerned. 
(K) A description of how the program will be integrated 
with existing program manager development efforts at each 
military department. 
(3) USE OF DEFENSE ACQUISITION WORKFORCE DEVELOPMENT 
FUND.—Amounts in the Department of Defense Acquisition 
Workforce Development Fund (established under section 1705 
of title 10, United States Code) may be used to pay the base 
salary of personnel in the program established under paragraph 
(1) during the period of time such personnel are temporarily
H. R. 2810—197 
assigned to a developmental rotation or training program antici-
pated to last at least six months. 
(4) IMPLEMENTATION.—The program established under 
paragraph (1) shall be implemented not later than September 
30, 2019. 
(b) INDEPENDENT STUDY OF INCENTIVES FOR PROGRAM MAN-
AGERS.— 
(1) REQUIREMENT FOR STUDY.—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 research entity 
described in paragraph (2) to carry out a comprehensive study 
of incentives for Department of Defense civilian and military 
program managers for major defense acquisition programs, 
including— 
(A) additional pay options for program managers to 
provide incentives to senior civilian employees and military 
officers to accept and remain in program manager roles; 
(B) a financial incentive structure to reward program 
managers for delivering capabilities on budget and on time; 
and 
(C) a comparison between financial and non-financial 
incentive structures for program managers in the Depart-
ment of Defense and an appropriate comparison group 
of private industry companies. 
(2) INDEPENDENT RESEARCH ENTITY.—The entity described 
in this subsection is an independent research entity that is 
a not-for-profit entity or a federally funded research and 
development center with appropriate expertise and analytical 
capability. 
(3) REPORTS.— 
(A) TO SECRETARY.—Not later than nine months after 
the date of the enactment of this Act, the independent 
research entity shall provide to the Secretary a report 
containing— 
(i) the results of the study required by paragraph 
(1); and 
(ii) such recommendations to improve the financial 
incentive structure of program managers for major 
defense acquisition programs as the independent 
research entity considers to be appropriate. 
(B) TO CONGRESS.—Not later than 30 days after receipt 
of the report under subparagraph (A), the Secretary of 
Defense shall submit such report, together with any addi-
tional views or recommendations of the Secretary, to the 
congressional defense committees. 
SEC. 842. CREDITS TO DEPARTMENT OF DEFENSE ACQUISITION 
WORKFORCE DEVELOPMENT FUND. 
Section 1705(d)(2)(D) of title 10, United States Code, is amended 
to read as follows: 
‘‘(D) The Secretary of Defense may adjust the amount speci-
fied in subparagraph (C) for a fiscal year if the Secretary 
determines that the amount is greater or less than reasonably 
needed for purposes of the Fund for such fiscal year. The 
Secretary may not adjust the amount for a fiscal year to an 
amount that is more than $600,000,000 or less than 
$400,000,000.’’.
H. R. 2810—198 
SEC. 843. IMPROVEMENTS TO THE HIRING AND TRAINING OF THE 
ACQUISITION WORKFORCE. 
(a) USE OF FUNDS FROM THE DEFENSE ACQUISITION WORKFORCE 
DEVELOPMENT FUND TO PAY SALARIES OF PERSONNEL TO MANAGE 
THE FUND.— 
(1) IN GENERAL.—Subsection 1705(e) of title 10, United 
States Code, is amended— 
(A) in paragraph (1)— 
(i) by inserting ‘‘(A)’’ before ‘‘Subject to the provi-
sions of this subsection’’; and 
(ii) by adding at the end the following new 
subparagraph: 
‘‘(B) Amounts in the Fund also may be used to pay salaries 
of personnel at the Office of the Secretary of Defense, military 
departments, and Defense Agencies to manage the Fund.’’; and 
(B) in paragraph (3)— 
(i) by striking ‘‘and’’ at the end of subparagraph 
(C); 
(ii) by striking the period and inserting ‘‘; and’’ 
at the end of subparagraph (D); and 
(iii) by adding at the end the following new 
subparagraph: 
‘‘(E) describing the amount from the Fund that may 
be used to pay salaries of personnel at the Office of the 
Secretary of Defense, military departments, and Defense 
Agencies to manage the Fund and the circumstances under 
which such amounts may be used for such purpose.’’. 
(2) GUIDANCE.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
issue, and submit to the congressional defense committees, 
the policy guidance required by subparagraph (E) of section 
1705(e)(3) of title 10, United States Code, as added by para-
graph (1). 
(b) COMPTROLLER GENERAL REVIEW
OF EFFECTIVENESS
OF 
HIRING AND RETENTION FLEXIBILITIES FOR ACQUISITION WORKFORCE 
PERSONNEL.— 
(1) IN GENERAL.—Not later than June 30, 2019, the Comp-
troller General of the United States shall submit to the congres-
sional defense committees a report on the effectiveness of hiring 
and retention flexibilities for the acquisition workforce. 
(2) ELEMENTS.—The report under this subsection shall 
include the following: 
(A) A determination of the extent to which the Depart-
ment of Defense experiences challenges with recruitment 
and retention of the acquisition workforce, such as post- 
employment restrictions. 
(B) A description of the hiring and retention flexibilities 
available to the Department to fill civilian acquisition posi-
tions and the extent to which the Department has used 
the flexibilities available to it to target critical or under-
staffed career fields. 
(C) A determination of the extent to which the Depart-
ment has the necessary data and metrics on its use of 
hiring and retention flexibilities for the civilian acquisition 
workforce to strategically manage the use of such flexibili-
ties.
H. R. 2810—199 
(D) An identification of the factors that affect the use 
of hiring and retention flexibilities for the civilian acquisi-
tion workforce. 
(E) Recommendations for any necessary changes to 
the hiring and retention flexibilities available to the 
Department to fill civilian acquisition positions. 
(F) A description of the flexibilities available to the 
Department to remove underperforming members of the 
acquisition workforce and the extent to which any such 
flexibilities are used. 
(c) ASSESSMENT AND REPORT REQUIRED ON BUSINESS-RELATED 
TRAINING FOR THE ACQUISITION WORKFORCE.— 
(1) ASSESSMENT.—The Under Secretary of Defense for 
Acquisition and Sustainment shall conduct an assessment of 
the following: 
(A) The effectiveness of industry certifications, other 
industry training programs, including fellowships, and 
training and education programs at educational institutions 
outside of the Defense Acquisition University available to 
defense acquisition workforce personnel. 
(B) Gaps in knowledge of industry operations, industry 
motivation, and business acumen in the acquisition 
workforce. 
(2) REPORT.—Not later than December 31, 2018, the Under 
Secretary shall submit to the Committees on Armed Services 
of the Senate and the House of Representatives a report con-
taining the results of the assessment conducted under this 
subsection. 
(3) ELEMENTS.—The assessment and report under para-
graphs (1) and (2) shall address the following: 
(A) Current sources of training and career development 
opportunities, industry rotations, and other career develop-
ment opportunities related to knowledge of industry oper-
ations, industry motivation, and business acumen for each 
acquisition position, as designated under section 1721 of 
title 10, United States Code. 
(B) Gaps in training, industry rotations, and other 
career development opportunities related to knowledge of 
industry operations, industry motivation, and business acu-
men for each such acquisition position. 
(C) Plans to address those gaps for each such acquisi-
tion position. 
(D) Consideration of the role industry-taught classes 
and classes taught at educational institutions outside of 
the Defense Acquisition University could play in addressing 
gaps. 
(d) COMPTROLLER GENERAL REVIEW OF ACQUISITION TRAINING 
FOR NON-ACQUISITION WORKFORCE PERSONNEL.— 
(1) IN GENERAL.—Not later than June 30, 2019, the Comp-
troller General of the United States shall submit to the congres-
sional defense committees a report on acquisition-related 
training for personnel working on acquisitions but not consid-
ered to be part of the acquisition workforce (as defined in 
section 101(18) of title 10, United States Code) (hereafter in 
this subsection referred to as ‘‘non-acquisition workforce per-
sonnel’’). 
(2) ELEMENTS.—The report shall address the following:
H. R. 2810—200 
(A) The extent to which non-acquisition workforce per-
sonnel play a significant role in defining requirements, 
conducting market research, participating in source selec-
tion and contract negotiation efforts, and overseeing con-
tract performance. 
(B) The extent to which the Department is able to 
identify and track non-acquisition workforce personnel per-
forming the roles identified in subparagraph (A). 
(C) The extent to which non-acquisition workforce per-
sonnel are taking acquisition training. 
(D) The extent to which the Defense Acquisition 
Workforce Development Fund has been used to provide 
acquisition training to non-acquisition workforce personnel. 
(E) A description of sources of funding other than 
the Fund that are available to and used by the Department 
to provide non-acquisition workforce personnel with 
acquisition training. 
(F) The extent to which additional acquisition training 
is needed for non-acquisition workforce personnel, including 
the types of training needed, the positions that need the 
training, and any challenges to delivering necessary addi-
tional training. 
SEC. 844. EXTENSION AND MODIFICATIONS TO ACQUISITION DEM-
ONSTRATION PROJECT. 
(a) EXTENSION.—Section 1762(g) of title 10, United States Code, 
is amended by striking ‘‘December 31, 2020’’ and inserting 
‘‘December 31, 2023’’. 
(b) INCREASE IN LIMIT ON NUMBER OF PARTICIPANTS.—Section 
1762(c) of title 10, United States Code, is amended by striking 
‘‘the demonstration project under this section may not exceed 
120,000’’ and inserting ‘‘at any one time the demonstration project 
under this section may not exceed 130,000’’. 
(c) IMPLEMENTATION STRATEGY FOR IMPROVEMENTS IN ACQUISI-
TION DEMONSTRATION PROJECT.— 
(1) STRATEGY REQUIRED.—The Secretary of Defense shall 
develop an implementation strategy to address areas for 
improvement in the demonstration project required by section 
1762 of title 10, United States Code, as identified in the second 
assessment of such demonstration project required by section 
1762(e) of such title. 
(2) ELEMENTS.—The strategy shall include the following 
elements: 
(A) Actions that have been or will be taken to assess 
whether the flexibility to set starting salaries at different 
levels is being used appropriately by supervisors and man-
agers to compete effectively for highly skilled and motivated 
employees. 
(B) Actions that have been or will be taken to assess 
reasons for any disparities in career outcomes across race 
and gender for employees in the demonstration project. 
(C) Actions that have been or will be taken to 
strengthen the link between employee contribution and 
compensation for employees in the demonstration project. 
(D) Actions that have been or will be taken to enhance 
the transparency of the pay system for employees in the 
demonstration project.
H. R. 2810—201 
(E) A time frame and individual responsible for each 
action identified under subparagraphs (A) through (D). 
(3) BRIEFING
REQUIRED.—Not later than one year after 
the date of the enactment of this Act, the Secretary of Defense 
shall provide a briefing to the Committees on Armed Services 
of the Senate and House of Representatives and the Committee 
on Oversight and Government Reform of the House of Rep-
resentatives on the implementation strategy required by para-
graph (1). 
Subtitle E—Provisions Relating to 
Commercial Items 
SEC. 846. PROCUREMENT THROUGH COMMERCIAL E-COMMERCE POR-
TALS. 
(a) ESTABLISHMENT
OF PROGRAM.—The Administrator shall 
establish a program to procure commercial products through 
commercial e-commerce portals for purposes of enhancing competi-
tion, expediting procurement, enabling market research, and 
ensuring reasonable pricing of commercial products. The Adminis-
trator shall carry out the program in accordance with this section, 
through multiple contracts with multiple commercial e-commerce 
portal providers, and shall design the program to be implemented 
in phases with the objective of enabling Government-wide use of 
such portals. 
(b) USE OF PROGRAM.—The head of a department or agency 
may procure, as appropriate, commercial products for the depart-
ment or agency using the program established pursuant to sub-
section (a). 
(c) IMPLEMENTATION
AND
REPORTING
REQUIREMENTS.—The 
Director of the Office of Management and Budget, in consultation 
with the Administrator and the heads of other relevant departments 
and agencies, shall carry out the implementation phases set forth 
in, and submit to the appropriate congressional committees the 
items of information required by, the following paragraphs: 
(1) PHASE I: IMPLEMENTATION PLAN.—Not later than 90 
days after the date of the enactment of this Act, an implementa-
tion plan and schedule for carrying out the program established 
pursuant to subsection (a), including a discussion and rec-
ommendations regarding whether any changes to, or exemp-
tions from, laws that set forth policies, procedures, require-
ments, or restrictions for the procurement of property or serv-
ices by the Federal Government are necessary for effective 
implementation of this section. 
(2) PHASE II: MARKET ANALYSIS AND CONSULTATION.—Not 
later than one year after the date of the submission of the 
implementation plan and schedule required under paragraph 
(1), recommendations for any changes to, or exemptions from, 
laws necessary for effective implementation of this section, 
and information on the results of the following actions: 
(A) Market analysis and initial communications with 
potential commercial e-commerce portal providers on tech-
nical considerations of how the portals function (including 
the use of standard terms and conditions of the portals 
by the Government), the degree of customization that can 
occur without creating a Government-unique portal, the
H. R. 2810—202 
measures necessary to address the considerations for sup-
plier and product screening specified in subsection (e), secu-
rity of data, considerations pertaining to nontraditional 
Government contractors, and potential fees, if any, to be 
charged by the Administrator, the portal provider, or the 
suppliers for participation in the program established 
pursuant to subsection (a). 
(B) Consultation with affected departments and agen-
cies about their unique procurement needs, such as supply 
chain risks for health care products, information tech-
nology, software, or any other category determined nec-
essary by the Administrator. 
(C) An assessment of the products or product categories 
that are suitable for purchase on the commercial e-com-
merce portals. 
(D) An assessment of the precautions necessary to 
safeguard any information pertaining to the Federal 
Government, especially precautions necessary to protect 
against national security or cybersecurity threats. 
(E) A review of standard terms and conditions of 
commercial e-commerce portals in the context of Govern-
ment requirements. 
(F) An assessment of the impact on existing programs, 
including schedules, set-asides for small business concerns, 
and other preference programs. 
(3) PHASE III: PROGRAM IMPLEMENTATION GUIDANCE.—Not 
later than two years after the date of the submission of the 
implementation plan and schedule required under paragraph 
(1), guidance to implement and govern the use of the program 
established pursuant to subsection (a), including protocols for 
oversight of procurement through the program, and compliance 
with laws pertaining to supplier and product screening require-
ments, data security, and data analytics. 
(4) ADDITIONAL
IMPLEMENTATION
PHASES.—A description 
of additional implementation phases, as determined by the 
Administrator, that includes a selection of agencies to partici-
pate in any such additional implementation phase (which may 
include the award of contracts to multiple commercial e-com-
merce portal providers). 
(d) CONSIDERATIONS FOR COMMERCIAL E-COMMERCE PORTALS.— 
The Administrator shall consider commercial e-commerce portals 
for use under the program established pursuant to subsection (a) 
that are widely used in the private sector and have or can be 
configured to have features that facilitate the execution of program 
objectives, including features related to supplier and product selec-
tion that are frequently updated, an assortment of product and 
supplier reviews, invoicing payment, and customer service. 
(e) INFORMATION ON SUPPLIERS, PRODUCTS, AND PURCHASES.— 
(1) SUPPLIER
PARTICIPATION
AND
PRODUCT
SCREENING.— 
The Administrator shall provide or ensure electronic avail-
ability to a commercial e-commerce portal provider awarded 
a contract pursuant to subsection (a) on a periodic basis 
information necessary to ensure compliance with laws per-
taining to supplier and product screening as identified during 
implementation phase III, as described in subsection (c)(3). 
(2) PROVISION OF ORDER INFORMATION.—The Administrator 
shall require each commercial e-commerce portal provider