Department of Defense that is required to submit an 
auditable financial statement to the Secretary of Defense. 
SEC. 303. REVIEW OF OBLIGATION AND EXPENDITURE 
THRESHOLDS. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) Department of Defense program managers 
should be encouraged to place a higher priority on 
seeking the best value for the Government than on 
meeting arbitrary benchmarks for spending; and 
(2) actions to carry out paragraph (1) should 
be supported by the Department’s leadership at 
every level. 
(b) POLICY REVIEW.—Not later than 180 days after 
the date of the enactment of this Act, the Chief Manage-
ment Officer of the Department of Defense, in coordina-
tion with the Chief Management Officer of each military 
department, shall review and update as necessary all rel-
evant policy and instruction regarding obligation and ex-
penditure benchmarks to ensure that such guidance does 
not inadvertantly prevent achieving the best value for the 
Government in the obligation and expenditure of funds. 
(c) GUIDANCE.—Not later than one year after the 
date of the enactment of this Act, the Chief Management 
Officer, in coordination with the Chief Management Offi-
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cer of each military department, the Director of the Office 
of Performance Assessment and Root Cause Analysis, the 
Under Secretary of Defense (Comptroller), and the Comp-
trollers of the military departments, should conduct a 
comprehensive review of the use and value of obligation 
and expenditure benchmarks and propose new benchmarks 
or processes for tracking financial performance, including, 
as appropriate— 
(1) increased reliance on individual obligation 
and expenditure plans for measuring program finan-
cial performance; 
(2) mechanisms to improve funding stability 
and to increase the predictability of the release of 
funding for obligation and expenditure; and 
(3) streamlined mechanisms for a program 
manager to submit an appeal for funding changes 
and to have such appeal evaluated promptly. 
(d) TRAINING.—The Under Secretary of Defense for 
Acquisition, Technology, and Logistics and the Under Sec-
retary of Defense (Comptroller) shall ensure that as part 
of the training required for program managers and busi-
ness managers, an emphasis is placed on obligating and 
expending appropriated funds in a manner that achieves 
the best value for the Government and that the purpose 
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and limitations of obligation and expenditure benchmarks 
is made clear. 
TITLE IV—INDUSTRIAL BASE 
SEC. 401. EXPANSION OF THE INDUSTRIAL BASE. 
(a) PROGRAM TO EXPAND INDUSTRIAL BASE RE-
QUIRED.—The Secretary of Defense shall establish a pro-
gram to expand the industrial base of the Department of 
Defense to increase the Department’s access to innovation 
and the benefits of competition. 
(b) IDENTIFYING AND COMMUNICATING WITH NON-
TRADITIONAL
SUPPLIERS.—The program established 
under subsection (a) shall use tools and resources available 
within the Federal Government and available from the pri-
vate sector, to provide a capability for identifying and 
communicating with nontraditional suppliers, including 
commercial firms and firms of all business sizes, that are 
engaged in markets of importance to the Department of 
Defense. 
(c) INDUSTRIAL BASE REVIEW.—The program re-
quired by subsection (a) shall include a continuous effort 
to review the industrial base supporting the Department 
of Defense, including the identification of markets of im-
portance to the Department of Defense. 
(d) DEFINITION.—In this section: 
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