375 
noncommercial computer software, the Secretary of Defense 
may not require a contractor to sell or otherwise relinquish 
to the Federal Government any rights to noncommercial 
computer software developed exclusively at private expense, 
except for rights related to— 
‘‘(1) corrections or changes to such software or 
documentation related to such software furnished to 
the contractor by the Department of Defense; 
‘‘(2) such software or documentation related to 
such software that is otherwise publicly available or 
that has been released or disclosed by the contractor 
or subcontractor without restrictions on further use, 
release, or disclosure, other than a release or disclo-
sure resulting from the sale, transfer, or other assign-
ment of interest in such software or documentation to 
another party. 
‘‘(3) such software or documentation related to 
such software obtained with unlimited rights under 
another contract with the Federal Government or as 
a result of such a negotiation; or 
‘‘(4) such software or documentation related to 
such software furnished to the Department of Defense 
under a contract or subcontract that includes— 
‘‘(A) restricted rights in such software, lim-
ited rights in technical data, or government pur-
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pose rights, where such restricted rights, limited 
rights, or government purpose rights have ex-
pired; or 
‘‘(B) government purpose rights, where the 
contractor’s exclusive right to use such software 
or documentation for commercial purposes has 
expired. 
‘‘(d) CONSIDERATION OF SPECIALLY NEGOTIATED LI-
CENSES.—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 non-
commercial computer software or documentation related to 
such software necessary to support the product support 
strategy of a major weapon system or subsystem of a major 
weapon system.’’. 
SEC. 872. REMOVAL OF REQUIREMENT FOR RISK AND SEN-
SITIVITY ANALYSIS OF BASELINE ESTIMATES 
IN SELECTED ACQUISITION REPORTS. 
Section 2432(c)(1)(B) of title 10, United States Code, 
is amended by striking ‘‘, along with the associated risk 
and sensitivity analysis of that estimate’’ each place it ap-
pears. 
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SEC. 873. PROHIBITION ON ACQUISITION OF SENSITIVE MA-
TERIALS FROM NON-ALLIED FOREIGN NA-
TIONS. 
(a) IN GENERAL.—Subchapter V of chapter 148 of title 
10, United States Code, is amended by inserting after sec-
tion 2533b the following new section: 
‘‘§ 2533c. Prohibition on acquisition of sensitive mate-
rials from non-allied foreign nations 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(c), the Secretary of Defense may not— 
‘‘(1) procure any end item containing a covered 
material from any covered nation, except as provided 
by subsection (c); or 
‘‘(2) sell any covered material from the National 
Defense Stockpile, if the National Defense Stockpile 
Manager determines that such a sale is not in the na-
tional interests of the United States, to— 
‘‘(A) any covered nation; or 
‘‘(B) any third party that the Secretary 
reasonably believes is acting as a broker or agent 
for a covered nation or an entity in a covered 
nation. 
‘‘(b) EXTENSION.—Subsection (a) shall apply to prime 
contracts and subcontracts at any tier. 
‘‘(c) EXCEPTIONS.—Subsection (a) does not apply 
under the following circumstances: 
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‘‘(1) If the Secretary of Defense determines that 
covered materials of satisfactory quality and quan-
tity, in the required form, cannot be procured as and 
when needed. 
‘‘(2) To the procurement of an end item de-
scribed in subsection (a)(1) or the sale of any covered 
material described under subsection (a)(1) by the Sec-
retary outside of the United States for use outside of 
the United States. 
‘‘(3) To the purchase by the Secretary of an end 
item containing a covered material that is— 
‘‘(A) a commercially available off-the-shelf 
item (as defined in section 104 of title 41); or 
‘‘(B) an electronic device, unless the Sec-
retary of Defense, upon the recommendation of 
the Strategic Materials Protection Board pursu-
ant to section 187 of this title, determines that 
the domestic availability of a particular elec-
tronic device is critical to national security. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) COVERED
MATERIAL.—The term ‘covered 
material’ means— 
‘‘(A) samarium-cobalt magnets; 
‘‘(B) neodymium-iron-boron magnets; 
‘‘(C) tungsten penetrators; and 
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‘‘(D) tungsten or tungsten alloy spheres and 
cubes. 
‘‘(2) COVERED NATION.—The term ‘covered na-
tion’ means— 
‘‘(A) the Democratic People’s Republic of 
North Korea; 
‘‘(B) the People’s Republic of China; 
‘‘(C) the Russian Federation; and 
‘‘(D) the Islamic Republic of Iran. 
‘‘(3) END ITEM.—The term ‘end item’ has the 
meaning given in section 2533b(m) of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of contents at 
the beginning of such subchapter is amended by inserting 
after the item relating to section 2533b the following item: 
‘‘2533c. Prohibition on acquisition of sensitive materials from non-allied foreign 
nations.’’. 
SEC. 874. TRANSFER OR POSSESSION OF DEFENSE ITEMS 
FOR NATIONAL DEFENSE PURPOSES. 
(a) TRANSFER AND POSSESSION EXCEPTIONS.—Sec-
tion 922(o)(2) of title 18, United States Code, is amended— 
(1) in subparagraph (A), by striking ‘‘or by’’ 
and inserting ‘‘, by, or under the authority of’’; 
(2) by striking ‘‘or’’ at the end of subparagraph 
(A); 
(3) by striking the period at the end of subpara-
graph (B) and inserting a semicolon; and 
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(4) by inserting after subparagraph (B) the fol-
lowing new subparagraphs: 
‘‘(C) a transfer to, or possession by, a licensed 
manufacturer or licensed importer (if, with respect to 
a transfer, such transfer has been approved by the At-
torney General in accordance with law) for purposes 
of— 
‘‘(i) joint production of a weapon, or inte-
gration or incorporation into another article or 
device; 
‘‘(ii) calibration, testing, or research and 
development; 
‘‘(iii) permanent or temporary export, or 
temporary import, otherwise in accordance with 
law; or 
‘‘(iv) training of Federal, State, local, or 
foreign government personnel; 
‘‘(D) a transfer to, or possession by, a licensee 
for the purpose of repair and return of the same to 
a lawful possessor; or 
‘‘(E) notwithstanding subsection (g)(5)(B), pos-
session by foreign government personnel for official 
training purposes under the direct and continuous su-
pervision of an authorized Federal, State, or local 
government official, or a licensee as described in sub-
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paragraph (C), provided that, upon completion of the 
training, such foreign government personnel shall re-
linquish possession of the same to such official or li-
censee.’’. 
(b) IMPORTATION REQUIREMENTS.—Section 925(d) of 
such title is amended— 
(1) in paragraph (3)— 
(A) by inserting ‘‘except as provided in 
paragraph (5),’’ before ‘‘is of’’; and 
(B) by striking ‘‘or’’ at the end; 
(2) in paragraph (4), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by inserting after paragraph (4) the fol-
lowing new paragraph: 
‘‘(5) is being imported or brought in by a li-
censed manufacturer or licensed importer in con-
formity with, and solely for a purpose described in 
subparagraph (A), (C), (D), or (E) of section 
922(o)(2).’’. 
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect 30 days after 
the date of the enactment of this Act. 
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SEC. 875. EXPEDITED HIRING AUTHORITY FOR SHORTAGE 
CATEGORY POSITIONS IN THE ACQUISITION 
WORKFORCE. 
Section 1703(j) of title 41, United States Code, is 
amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘sections 3304, 5333, and 
5753 of title 5’’ and inserting ‘‘section 3304 of 
title 5’’; 
(B) by striking ‘‘authorities in those sec-
tions’’ and inserting ‘‘authority in such section’’; 
and 
(C) by striking ‘‘certain Federal acquisition 
positions (as described in subsection (g)(1)(A))’’ 
and inserting ‘‘the Federal acquisition provisions 
described in paragraph (2)’’; and 
(2) by redesignating paragraph (2) as para-
graph (3); 
(3) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) POSITIONS
DESCRIBED.—The Federal ac-
quisition positions described in this paragraph are 
the following: 
‘‘(A) Any position listed in (g)(1)(A). 
‘‘(B) All positions in the General Schedule 
Realty series (GS–1170).’’; and 
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(4) in paragraph (3) (as so redesignated), by 
striking ‘‘September 30, 2017’’ and inserting ‘‘Sep-
tember 30, 2021’’. 
SEC. 876. EXTENSION OF PROHIBITION ON PROVIDING 
FUNDS TO THE ENEMY. 
Section 841(n) of the Carl Levin and Howard P. 
‘‘Buck’’ McKeon National Defense Authorization Act for 
Fiscal Year 2015 (Public Law 113–291; 127 Stat. 3455; 
10 U.S.C. 2302 note) is amended by striking ‘‘December 
31, 2019’’ and inserting ‘‘December 31, 2021’’. 
SEC. 877. REPEAL OF CERTAIN DETERMINATIONS RE-
QUIRED FOR GRANTS OF EXCEPTIONS TO 
COST OR PRICING DATA CERTIFICATION RE-
QUIREMENTS AND WAIVERS OF COST AC-
COUNTING STANDARDS. 
Section 817(b) of the Bob Stump National Defense Au-
thorization Act for Fiscal Year 2003 (Public Law 107–314; 
10 U.S.C. 2306a note) is amended— 
(1) by striking paragraph (1); and 
(2) by redesignating paragraphs (2) and (3) as 
paragraphs (1) and (2), respectively. 
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384 
SEC. 
878. 
REPORTING 
ON 
PROJECTS 
PERFORMED 
THROUGH TRANSACTIONS OTHER THAN CON-
TRACTS, COOPERATIVE AGREEMENTS, AND 
GRANTS. 
(a) REPORT REQUIRED.—Not later than December 31, 
2018, and each December 31 thereafter through December 
31, 2021, the Secretary of Defense shall submit to the con-
gressional defense committees a report covering the pre-
ceding fiscal year on projects described in subsection (b). 
(b) CONTENTS.—Each report under subsection (a) 
shall include— 
(1) for each project performed through a trans-
action (other than contracts, cooperative agreements, 
and grants) entered into pursuant to section 2371 or 
2371b of title 10, United States Code, for which pay-
ments made by the Department of Defense exceeded 
$5,000,000 for such transaction— 
(A) an identification of the element of the 
Department of Defense and the person or entity 
outside of the Department of Defense entering 
into such transaction; 
(B) the date of entry into such transaction; 
(C) the amount of the payments made by 
the Department of Defense for such transaction; 
(D) the goals and status of each project car-
ried out under such transaction; and 
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(E) the start date and anticipated end date 
of each project carried out under such trans-
action; and 
(2) a description of the mechanisms, including 
any policies, guidance, and reporting requirements, 
established by the Secretary of Defense to regulate the 
use of authority relating to a transaction (other than 
contracts, cooperative agreements, and grants) entered 
into pursuant to section 2371 or 2371b of title 10, 
United States Code. 
SEC. 879. STANDARDIZATION OF FORMATTING AND PUBLIC 
ACCESSIBILITY 
OF 
DEPARTMENT 
OF 
DE-
FENSE REPORTS TO CONGRESS. 
(a) BRIEFING REQUIRED.—Not later than March 1, 
2019, the Secretary of Defense shall provide a briefing to 
the Committee on Armed Services of the House of Represent-
atives on a plan to standardize the formatting and public 
accessibility of unclassified Department of Defense reports 
required by Congress. Such briefing shall include a descrip-
tion of the method— 
(1) for ensuring that reports are created in a 
platform-independent, machine-readable format that 
can be retrieved, downloaded, indexed, and searched 
by commonly used web search applications; and 
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(2) for providing a publically accessible online 
repository of unclassified reports of the Department of 
Defense issued since January 1, 2010, including pro-
tocols for inclusion of unclassified reports that, as de-
termined by the Secretary, may not be appropriate 
for public release in their entirety. 
(b) IMPLEMENTATION.—Such plan shall be imple-
mented not later than March 1, 2020. 
SEC. 880. DEFENDING UNITED STATES GOVERNMENT COM-
MUNICATIONS. 
(a) FINDINGS.—Congress makes the following findings: 
(1) In its 2011 ‘‘Annual Report to Congress on 
Military and Security Developments Involving the 
People’s Republic of China’’, the Department of De-
fense stated that, ‘‘China’s defense industry has bene-
fitted from integration with a rapidly expanding ci-
vilian economy and science and technology sector, 
particularly elements that have access to foreign tech-
nology. Progress within individual defense sectors ap-
pears linked to the relative integration of each, 
through China’s civilian economy, into the global pro-
duction and R&D chain . . . Information technology 
companies in particular, including Huawei, Datang, 
and Zhongxing, maintain close ties to the PLA.’’. 
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(2) In a 2011 report titled ‘‘The National Secu-
rity Implications of Investments and Products from 
the People’s Republic of China in the Telecommuni-
cations Sector’’, the United States China Commission 
stated that ‘‘[n]ational security concerns have accom-
panied the dramatic growth of China’s telecom sector. 
. . . Additionally, large Chinese companies—particu-
larly those ‘national champions’ prominent in Chi-
na’s ‘going out’ strategy of overseas expansion—are 
directly subject to direction by the Chinese Com-
munist Party, to include support for PRC state poli-
cies and goals.’’. 
(3) The Commission further stated in its report 
that ‘‘[f]rom this point of view, the clear economic 
benefits of foreign investment in the U.S. must be 
weighed against the potential security concerns re-
lated to infrastructure components coming under the 
control of foreign entities. This seems particularly ap-
plicable in the telecommunications industry, as Chi-
nese companies continue systematically to acquire 
significant holdings in prominent global and U.S. 
telecommunications and information technology com-
panies.’’. 
(4) In its 2011 Annual Report to Congress, the 
United States China Commission stated that ‘‘[t]he 
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extent of the state’s control of the Chinese economy is 
difficult to quantify . . . There is also a category of 
companies that, though claiming to be private, are 
subject to state influence. Such companies are often in 
new markets with no established SOE leaders and 
enjoy favorable government policies that support their 
development while posing obstacles to foreign competi-
tion. Examples include Chinese telecoms giant 
Huawei and such automotive companies as battery 
maker BYD and vehicle manufacturers Geely and 
Chery.’’. 
(5) General Michael Hayden, who served as Di-
rector of the Central Intelligence Agency and Director 
of the National Security Agency, stated in July 2013 
that Huawei had ‘‘shared with the Chinese state inti-
mate and extensive knowledge of foreign telecommuni-
cations systems it is involved with.’’. 
(6) The Federal Bureau of Investigation, in a 
February 2015 Counterintelligence Strategy Partner-
ship Intelligence Note stated that, ‘‘[w]ith the ex-
panded use of Huawei Technologies Inc. equipment 
and services in U.S. telecommunications service pro-
vider networks, the Chinese Government’s potential 
access to U.S. business communications is dramati-
cally increasing. Chinese Government-supported tele-
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389 
communications equipment on U.S. networks may be 
exploited through Chinese cyber activity, with China’s 
intelligence services operating as an advanced per-
sistent threat to U.S. networks.’’. 
(7) The Federal Bureau of Investigation further 
stated in its February 2015 counterintelligence note 
that, ‘‘China makes no secret that its cyber warfare 
strategy is predicated on controlling global commu-
nications network infrastructure.’’. 
(8) At a hearing before the Committee on Armed 
Services of the House of Representatives on September 
30, 2015, Deputy Secretary of Defense Robert Work, 
responding to a question about the use of Huawei 
telecommunications equipment, stated, ‘‘In the Office 
of the Secretary of Defense, absolutely not. And I 
know of no other—I don’t believe we operate in the 
Pentagon, any [Huawei] systems in the Pentagon.’’. 
(9) At such hearing, the Commander of the 
United States Cyber Command, Admiral Mike Rog-
ers, responding to a question about why such Huawei 
telecommunications equipment is not used, stated, ‘‘as 
we look at supply chain and we look at potential 
vulnerabilities within the system, that it is a risk we 
felt was unacceptable.’’. 
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(10) In March 2017, ZTE Corporation pled 
guilty to conspiring to violate the International 
Emergency Economic Powers Act by illegally ship-
ping United States-origin items to Iran, paying the 
United States Government a penalty of $892,360,064 
dollars for activity between January 2010 and Janu-
ary 2016. 
(11) The Treasury Department’s Office of For-
eign Assets Control issued a subpoena to Huawei as 
part of a Federal investigation of alleged violations of 
trade restrictions on Cuba, Iran, Sudan, and Syria. 
(12) In the bipartisan Permanent Select Com-
mittee on Intelligence of the House of Representatives 
‘‘Investigative Report on the United States National 
Security Issues Posed by Chinese Telecommunication 
Companies Huawei and ZTE’’ released in 2012, it 
was recommended that ‘‘U.S. government systems, 
particularly sensitive systems, should not include 
Huawei or ZTE equipment, including in component 
parts. Similarly, government contractors—particu-
larly those working on contracts for sensitive U.S. 
programs—should exclude ZTE or Huawei equipment 
in their systems.’’. 
(13) Christopher Wray, who serves as Director of 
the Federal Bureau of Investigation, stated in Feb-
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391 
ruary 2018 during a hearing of the Select Committee 
on Intelligence of the Senate that he was ‘‘deeply con-
cerned about the risks of allowing any company or 
entity that is beholden to foreign governments that 
don’t share our values to gain positions of power in-
side our telecommunications networks. That provides 
the capacity to exert pressure or control over our tele-
communications infrastructure. It provides the capac-
ity to maliciously modify or steal information. And 
it provides the capacity to conduct undetected espio-
nage.’’ Admiral Mike Rogers, who served as Director 
of the National Security Agency, agreed with Director 
Wray’s characterization, and added that Government 
programs need ‘‘to look long and hard at companies 
like this’’. 
(14) Director of National Intelligence Dan Coats, 
Federal Bureau of Investigation Director Christopher 
Wray, Director of the Defense Intelligence Agency 
General Robert Ashley, Director of the National 
Geospatial-Intelligence Agency Robert Cardillo, Direc-
tor of the National Security Agency Admiral Michael 
Rogers, and Director of the Central Intelligence Agen-
cy Michael Pompeo all indicated by show of hands in 
February 2018 at a hearing of the Select Committee 
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on Intelligence of the Senate that they would not ‘‘use 
products or services from Huawei or ZTE’’. 
(15) General Paul Nakasone, who served as the 
Commanding General of United States Army Cyber 
Command, stated during his confirmation hearing to 
be National Security Agency director in March 2018 
before the Select Committee on Intelligence of the Sen-
ate that he ‘‘would not’’ use any Huawei, China 
Unicom, or China Telecom products nor would he rec-
ommend his family do so. 
(b) PROHIBITION ON CERTAIN TELECOMMUNICATIONS 
SERVICES OR EQUIPMENT.— 
(1) PROHIBITION ON AGENCY USE OR PROCURE-
MENT.—Except as provided in paragraph (3), begin-
ning not later than January 1, 2021, the head of an 
agency may not procure or obtain, may not extend or 
renew a contract to procure or obtain, and may not 
enter into a contract (or extend or renew a contract) 
with an entity that uses any equipment, system, or 
service that uses covered telecommunications equip-
ment or services as a substantial or essential compo-
nent of any system, or as critical technology as part 
of any system. 
(2) IMPLEMENTATION PLAN.—By not later than 
180 days after the date of the enactment of this Act, 
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393 
each agency shall develop a plan to implement para-
graph (1) throughout the agency’s supply chain and 
shall submit such plan to the appropriate congres-
sional committees. Each such plan shall be submitted 
in unclassified form, but may contain a classified 
annex. The plan for an agency shall include, but not 
be limited to, how the agency plans to deal with the 
impact of white label technology on its supply chain 
whereby the original manufacturer of technology is 
not readily apparent to a purchaser or user. 
(3) WAIVER.—The head of an agency may, on a 
one time basis, waive the requirement under para-
graph (1) with respect to an entity that requests such 
a waiver. Such a waiver may be provided for a pe-
riod of not more than two years if the entity seeking 
the waiver— 
(A) can demonstrate a compelling justifica-
tion for additional time to implement such para-
graph; 
(B) submits to the head of the agency, who 
then submits to the appropriate congressional 
committees within 30 days, a full and complete 
laydown of the presence of covered telecommuni-
cations equipment or services in the entity’s sup-
ply chain and a phase-out plan to eliminate 
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such covered telecommunications equipment or 
services from its systems; 
(C) does not permit real-time access to its 
networks to an entity located or substantially lo-
cated in a covered foreign country; and 
(D) provides a written guarantee to the 
head of the agency that it will not procure such 
covered telecommunications equipment or serv-
ices again. 
(4) COVERED COMPONENTS.—With respect to a 
covered component of an entity for which such entity 
reasonably believes will not need to be replaced during 
the 5-year period beginning on the date of the enact-
ment of this Act, such entity shall provide a written 
assurance to the head of the agency for which such 
covered component is in use that such entity shall re-
place such covered component, at the end of such cov-
ered component’s reasonable lifecycle, with a com-
parable component that is manufactured by a person 
other than Huawei Technologies Company or ZTE 
Corporation (or any subsidiary, successor entity, or 
affiliate of such entities). 
(5) DEFINITIONS.—In this section: 
(A) The term ‘‘appropriate congressional 
committees’’ means the Committees on Armed 
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Services of the Senate and House of Representa-
tives, the Permanent Select Committee on Intel-
ligence of the House of Representatives, the Select 
Committee on Intelligence of the Senate, the 
Committee on Oversight and Government Reform 
of the House of Representatives, and the Com-
mittee on Homeland Security and Governmental 
Affairs of the Senate. 
(B) The term ‘‘agency’’ has the meaning 
given that term in section 551 of title 5, United 
States Code. 
(C) The term ‘‘covered foreign country’’ 
means the People’s Republic of China. 
(D) The term ‘‘covered telecommunications 
equipment or services’’ means any of the fol-
lowing: 
(i) 
Telecommunications 
equipment 
produced by Huawei Technologies Company 
or ZTE Corporation (or any subsidiary, 
successor entity, or affiliate of such enti-
ties). 
(ii) Telecommunications services pro-
vided by such entities or using such equip-
ment. 
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(iii) Telecommunications equipment or 
services produced or provided by an entity 
that the head of the relevant agency reason-
ably believes to be an entity owned or con-
trolled by, or otherwise connected to, the 
government of a covered foreign country. 
(E) The term ‘‘covered component’’ means 
any component that— 
(i) is part of any equipment, system, 
or service that uses covered telecommuni-
cations equipment or services; 
(ii) is produced by Huawei Tech-
nologies Company or ZTE Corporation (or 
any subsidiary, successor entity, or affiliate 
of such entities); and 
(iii) cannot route or redirect data traf-
fic or visibility into any data or packets 
such equipment, system, or service trans-
mits or manipulates. 
(c) REPORT.— 
(1) IN GENERAL.—The Director of National In-
telligence, in coordination with the Director of the 
Federal Bureau of Investigation and the Secretaries 
of State, Homeland Security, and Defense, shall de-
velop a report outlining the national security risks of 
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use of Huawei and ZTE technology, especially as it 
relates to evidence of malicious software or hardware 
that enables unauthorized network access or control 
and the type and level of risk, and a plan to share 
such report, based on appropriate access to classified 
information, with U.S. allies, partners, and U.S. 
cleared defense contractors and telecommunications 
services providers. 
(2) UNCLASSIFIED VERSION.—In addition to the 
classified report required by paragraph (1), an un-
classified version of the report shall be made available 
for U.S. allies and partners as well as impacted tele-
communication companies that do not have access to 
classified information. 
(3) DEADLINE.—The reports required by para-
graph (1) and paragraph (2) of this subsection shall 
be submitted to the appropriate congressional commit-
tees (as defined in subsection (b)(4) of this section) 
not later than 180 days after the date of the enact-
ment of this Act. 
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TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND 
MANAGEMENT 
Subtitle A—Organization and Man-
agement of the Department of 
Defense Generally 
SEC. 901. AUTHORITY OF SECRETARY OF DEFENSE TO DE-
TERMINE COMMAND AND CONTROL RELA-
TIONSHIPS. 
Section 113 of title 10, United States Code, is amended 
by inserting after subsection (k) the following: 
‘‘(l) COMMAND AND CONTROL AUTHORITY.—The Sec-
retary of Defense shall have the authority to determine com-
mand and control relationships within the military depart-
ments, Defense Agencies, and other organizations and ele-
ments of the Department of Defense, including the United 
States Fleet Forces Command and the United States Trans-
portation Command, as necessary to fulfill the responsibil-
ities of the Secretary under this title.’’. 
SEC. 902. CIVILIAN PERSONNEL MANAGEMENT. 
Section 129 of title 10, United States Code, is amend-
ed— 
(1) in subsection (a), by striking ‘‘Any con-
straint or limitation in terms of man years, end 
strength, full-time equivalent positions, or maximum 
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number of employees shall be developed on the basis 
of those factors and shall be subject to adjustment 
solely for reasons of changed circumstances.’’ and in-
serting ‘‘The cost of the civilian workforce as pre-
scribed 
by 
Department 
of 
Defense 
Instruction 
7041.04, issued in 2013 or any successor guidance, 
shall be compared to the costs of the military and 
contract workforces, consistent with the requirements 
of section 129a, 2461, and 2463 of this title.’’; and 
(2) in subsection (c)(2)— 
(A) in each of subparagraphs (A) and (B), 
by inserting ‘‘and associated costs’’ after ‘‘pro-
jected size’’; and 
(B) in subparagraph (B), by striking ‘‘that 
have been taken to identify offsetting reductions 
and avoid unnecessary overall growth in the size 
of the civilian workforce’’ and inserting ‘‘to re-
duce the overall costs of the total force of mili-
tary, civilian, and contract workforces consistent 
with sections 129a, 2461, and 2463 of this title’’. 
SEC. 903. PERFORMANCE OF CIVILIAN FUNCTIONS BY MILI-
TARY PERSONNEL. 
Section 129a(g)(1) of title 10, United States Code, is 
amended— 
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(1) in subparagraph (A), by striking ‘‘or re-
quired by a mission’’ and inserting ‘‘pursuant to De-
partment of Defense Instruction 7041.04, issued on 
July 3, 2013, or any successor guidance, and when 
required by a mission within the military occupa-
tional specialty for which the military personnel have 
been trained’’; and 
(2) in subparagraph (B), by inserting ‘‘, and 
only if the functions to be performed by military per-
sonnel are consistent with the training requirements 
for the military occupational specialty for which such 
personnel have been trained’’ before the period at the 
end. 
SEC. 904. ROLES OF UNDER SECRETARY OF DEFENSE FOR 
POLICY AND UNDER SECRETARY OF DEFENSE 
FOR INTELLIGENCE. 
(a) UNDER SECRETARY OF DEFENSE FOR POLICY.— 
Section 134(b) of title 10, United States Code, is amend-
ed— 
(1) by redesignating paragraphs (3) and (4) as 
paragraphs (4) and (5), respectively; 
(2) by inserting after paragraph (2) the fol-
lowing new paragraph (3): 
‘‘(3) Subject to the authority, direction, and control 
of the Secretary of Defense, the Under Secretary shall be 
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responsible and have the overall direction and supervision 
for— 
‘‘(A) the development, implementation, and inte-
gration across the Department of Defense of the Na-
tional Defense Strategy and strategic policy guidance 
for the activities of the Department of Defense across 
all geographic regions and military functions and do-
mains; and 
‘‘(B) the integration of the activities of the De-
partment of Defense into the National Security Strat-
egy of the United States.’’; and 
(3) in paragraph (4), as redesignated by para-
graph (1) of this subsection, by inserting ‘‘policy 
making’’ before ‘‘activities’’. 
(b) UNDER SECRETARY
OF DEFENSE
FOR INTEL-
LIGENCE.—Section 137(b) of title 10, United States Code, 
as amended by section 1621, is further amended— 
(1) in paragraph (3), by striking ‘‘; and’’ and 
inserting a semicolon; 
(2) by redesignating paragraph (4) as para-
graph (5); and 
(3) by inserting after paragraph (3) the fol-
lowing new paragraph (4): 
‘‘(4) have responsibility for supervising and di-
recting, and overseeing Department of Defense activi-
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ties, other than policy making activities, with respect 
to technology protection relating to export controls; 
and’’. 
SEC. 905. DESIGNATION OF NAVY COMMANDERS. 
Section 5013 of title 10, United States Code, is amend-
ed by adding at the end the following new subsections: 
‘‘(h) The Secretary of the Navy shall designate a single 
commander within the Department of the Navy who shall 
serve as the official with principal responsibility in such 
Department for ensuring that forces of the Navy are avail-
able for tasking and deployment, including forces that may 
be operating from a forward deployed location. 
‘‘(i) The Secretary of the Navy shall designate a single 
commander within the Department of the Navy who shall 
serve as the official with principal responsibility in such 
Department for the oversight and management of the ship-
yards of the Navy, including shipyards outside the United 
States.’’. 
Subtitle 
B—Comprehensive 
Pen-
tagon Bureaucracy Reform and 
Reduction 
SEC. 911. AUTHORITIES AND RESPONSIBILITIES OF THE 
CHIEF MANAGEMENT OFFICER OF THE DE-
PARTMENT OF DEFENSE. 
(a) AUTHORITIES AND RESPONSIBILITIES.— 
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(1) IN GENERAL.—Section 132a(b) of title 10, 
United States Code, is amended— 
(A) by amending paragraph (3) to read as 
follows: 
‘‘(3) Exercising authority, direction, and control 
over the Defense Agencies and Department of Defense 
Field Activities with respect to the covered activi-
ties.’’; and 
(B) by adding at the end the following: 
‘‘(7) Serving as the official with principal re-
sponsibility in the Department for minimizing the 
duplication of efforts and maximizing efficiency and 
effectiveness among all organizations and elements of 
the Department (other than the military departments) 
with respect to the covered activities.’’. 
(2) BUDGET AUTHORITY.—Section 132a of title 
10, United States Code (as amended by paragraph 
(1)) is further amended— 
(A) by redesignating subsections (c) and (d) 
as subsections (d) and (e) respectively; and 
(B) by inserting after subsection (b) the fol-
lowing: 
‘‘(c) BUDGET AUTHORITY.— 
‘‘(1)(A) The Secretary of Defense, acting through 
the Under Secretary of Defense (Comptroller), shall 
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require the head of each Defense Agency and Depart-
ment of Defense Field Activity to transmit the pro-
posed budget for the covered activities of such Agency 
or Activity for a fiscal year and for the period cov-
ered by the future-years defense program submitted to 
Congress under section 221 of this title for that fiscal 
year to the Chief Management Officer for review 
under subparagraph (B) before submitting the pro-
posed budget to the Under Secretary of Defense 
(Comptroller). 
‘‘(B) The Chief Management Officer shall review 
each proposed budget transmitted under subpara-
graph (A) and, not later than January 31 of the year 
preceding the fiscal year for which the budget is pro-
posed, shall submit to the Secretary of Defense a re-
port containing the comments of the Chief Manage-
ment Officer with respect to all such proposed budg-
ets, together with the certification of the Chief Man-
agement Officer regarding whether each proposed 
budget achieves an adequate level of efficiency and ef-
fectiveness with respect to the covered activities. 
‘‘(C) Not later than March 31 of each year, the 
Secretary of Defense shall submit to Congress a report 
that includes the following: 
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‘‘(i) Each proposed budget for the covered 
activities of a Defense Agency or a Department 
of Defense Field Activity that was transmitted to 
the Chief Management Officer under subpara-
graph (A). 
‘‘(ii) Identification of each proposed budget 
contained in the most-recent report submitted 
under subparagraph (B) that the Chief Manage-
ment Officer did not certify as achieving an ade-
quate level of efficiency and effectiveness with re-
spect to the covered activities. 
‘‘(iii) A discussion of the actions that the 
Secretary proposes to take, together with any rec-
ommended legislation that the Secretary con-
siders appropriate, to address the inadequate lev-
els of efficiency and effectiveness achieved by the 
proposed budgets identified in the report. 
‘‘(iv) Any additional comments that the 
Secretary considers appropriate regarding the 
inadequate levels of efficiency and effectiveness 
achieved by the proposed budgets. 
‘‘(2) None of the funds authorized to be appro-
priated or otherwise made available for any fiscal 
year for the covered activities of a Defense Agency or 
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a Department of Defense Field Activity may be obli-
gated or expended unless— 
‘‘(A) the head of the Agency or Activity sub-
mits to the Chief Management Officer a plan for 
the obligation and expenditure of such funds; 
and 
‘‘(B) the Chief Management Officer ap-
proves the plan. 
‘‘(3) Nothing in this subsection shall be construed 
to modify or interfere with the budget-related respon-
sibilities of the Director of National Intelligence.’’. 
(3) COVERED
ACTIVITIES
DEFINED.—Section 
132a of title 10, United States Code (as amended by 
paragraphs (1) and (2)) is further amended by add-
ing at the end the following: 
‘‘(f) COVERED ACTIVITIES DEFINED.—In this section, 
the term ‘covered activities’ means any activity relating to 
civilian resources management, logistics management, serv-
ices contracting, or real estate management.’’. 
(b) STREAMLINING OF CERTAIN FUNCTIONS ACROSS 
THE DEPARTMENT OF DEFENSE.— 
(1) STREAMLINING OF FUNCTIONS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), not later than January 1, 
2021, and not less frequently than once every five 
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years thereafter, the Secretary of Defense, acting 
through the Chief Management Officer of the De-
partment Defense, shall reduce or eliminate du-
plicative functions across all organizations and 
elements of the Department of Defense with re-
spect to the covered activities. 
(B) EXCEPTION.—The military services 
shall not be included in any reductions or elimi-
nations carried out under subparagraph (A) on 
or before January 1, 2021. 
(2) CERTIFICATION AND REVIEW OF COST SAV-
INGS.— 
(A) CERTIFICATION.—Not later January 1, 
2021, the Chief Management Officer shall certify 
to the congressional defense committees that the 
reductions and eliminations carried out under 
paragraph (1) accomplished savings with respect 
to the total amount obligated and expended for 
the covered activities in fiscal year 2020 that 
were not less than 25 percent of the baseline 
amount. 
(B) GAO REVIEW.—Not later than 30 days 
after the submission of the certification under 
subparagraph (A), the Comptroller General of 
the United States shall submit to the congres-
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sional defense committees a report that verifies 
whether the savings reported by the Chief Man-
agement Officer under such subparagraph are 
accurate. 
(C) BASELINE AMOUNT.—For the purposes 
of this paragraph, the baseline amount is the 
total amount obligated and expended by organi-
zations and elements of the Department of De-
fense other than the military services for fiscal 
year 2018 for the covered activities— 
(i) increased by a credit for the 
amount of any reductions in the costs of 
such activities that are documented, as of 
the date that is 90 days after the date of the 
enactment of this Act, as having been ac-
complished in accordance with section 346 
of the National Defense Authorization Act 
for Fiscal Year 2016 (Public Law 114– 
92;.10 U.S.C. 111 note); and 
(ii) decreased by the amount of any re-
ductions in costs for such activities that are 
documented, as of the date that is 90 days 
after the date of the enactment of this Act, 
as having been accomplished in accordance 
with other sections of this subtitle. 
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(D) TREATMENT
OF
CERTAIN
COST
SAV-
INGS.—For the purposes of calculating the per-
centage cost savings accomplished by the Chief 
Management Officer under subparagraph (A), 
any reduction in costs documented, as of the date 
that is 90 days after the date of the enactment 
of this Act, as having been accomplished in ac-
cordance with section 346 of the National De-
fense Authorization Act for Fiscal Year 2016 
(Public Law 114–92;.10 U.S.C. 111 note) shall 
be treated as a reduction accomplished by the 
Chief Management Officer under paragraph (1). 
(3) PLAN AND REVIEW.— 
(A) PLAN
REQUIRED.—Not later than 
March 1, 2020, the Chief Management Officer 
shall submit to the congressional defense commit-
tees a plan for complying with paragraphs (1) 
and (2). 
(B) GAO REVIEW.—Not later than 30 days 
after the submission of the plan under subpara-
graph (A), the Comptroller General of the United 
States shall submit to the congressional defense 
committees a report that verifies— 
(i) whether the plan submitted under 
subparagraph (A) is feasible; and 
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(ii) whether any cost savings expected 
to result from the plan are accurate. 
(4) SUBSEQUENT REPORTS AND REVIEWS.— 
(A) CMO REPORTS.—Not later than Janu-
ary 1 of every fifth calendar year beginning with 
January 1, 2026, the Chief Management Officer 
shall submit to the congressional defense commit-
tees a report that describes the activities carried 
out by the Chief Management Officer under 
paragraph (1) during the preceding five years, 
including an estimate of any cost savings 
achieved as a result of such activities. 
(B) GAO REVIEW.—Not later than 30 days 
after the submission of each report under sub-
paragraph (A), the Comptroller General of the 
United States shall submit to the congressional 
defense committees a report that verifies— 
(i) whether the activities described in 
the report under subparagraph (A) were 
carried out; and 
(ii) whether any cost savings estimated 
in the report are accurate. 
(5) COVERED ACTIVITIES DEFINED.—In this sub-
section, the term ‘‘covered activities’’ has the meaning 
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given that term in section 132a(f) of title 10, United 
States Code, as added by subsection (a) of this section. 
SEC. 912. AUTHORITIES AND RESPONSIBILITIES OF THE IN-
SPECTOR GENERAL OF THE DEPARTMENT OF 
DEFENSE. 
(a) ADDITIONAL RESPONSIBILITIES
AND AUTHORI-
TIES.—Section 141 of title 10, United States Code, is 
amended by adding at the end the following: 
‘‘(c) In addition to the duties, responsibilities, and 
powers referred to in subsection (b), the Inspector General 
of the Department shall serve as the official with principal 
responsibility in the Department for minimizing the dupli-
cation of efforts and maximizing efficiency among the In-
spectors General across all organizations and elements of 
the Department with respect to the covered activities. 
‘‘(d)(1)(A) The Secretary of Defense, acting through 
the Under Secretary of Defense (Comptroller), shall require 
each Inspector General of an organization or element of the 
Department of Defense to transmit the proposed budget for 
the covered activities of the Office of such Inspector General 
for a fiscal year and for the period covered by the future- 
years defense program submitted to Congress under section 
221 of this title for that fiscal year to the Inspector General 
of the Department of Defense for review under subpara-
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graph (B) before submitting the proposed budget to the 
Under Secretary of Defense (Comptroller). 
‘‘(B) The Inspector General of the Department of De-
fense shall review each proposed budget transmitted under 
subparagraph (A) and, not later than January 31 of the 
year preceding the fiscal year for which the budget is pro-
posed, shall submit to the Secretary of Defense a report con-
taining the comments of the Inspector General with respect 
to all such proposed budgets, together with the certification 
of the Inspector General regarding whether each proposed 
budget achieves an adequate level of efficiency and effective-
ness with respect to the covered activities. 
‘‘(C) Not later than March 31 of each year, the Sec-
retary of Defense shall submit to Congress a report that in-
cludes the following: 
‘‘(i) Each proposed budget for the covered activi-
ties of an Inspector General of an organization or ele-
ment of the Department of Defense that was trans-
mitted to the Inspector General of the Department 
under subparagraph (A). 
‘‘(ii) Identification of each proposed budget con-
tained in the most-recent report submitted under sub-
paragraph (B) that the Inspector General of the De-
partment did not certify as achieving an adequate 
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level of efficiency and effectiveness with respect to the 
covered activities. 
‘‘(iii) A discussion of the actions that the Sec-
retary proposes to take, together with any rec-
ommended legislation that the Secretary considers ap-
propriate, to address the inadequate levels of effi-
ciency and effectiveness achieved by the proposed 
budgets identified in the report. 
‘‘(iv) Any additional comments that the Sec-
retary considers appropriate regarding the inadequate 
levels of efficiency and effectiveness achieved by the 
proposed budgets. 
‘‘(2) None of the funds authorized to be appropriated 
or otherwise made available for any fiscal year for the cov-
ered activities of an Inspector General of an organization 
or element of the Department of Defense may be obligated 
or expended unless— 
‘‘(A) the Inspector General of the organization or 
element submits to the Inspector General of the De-
partment of Defense a plan for the obligation and ex-
penditure of such funds; and 
‘‘(B) the Inspector General of the Department of 
Defense approves the plan. 
‘‘(e) In this section, the term ‘covered activities’ means 
any activity relating to public affairs, human resources, 
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414 
contracting, services contracting, or any other cross-enter-
prise activities of the Inspectors General of the organiza-
tions and elements of the Department of Defense, as deter-
mined by the Inspector General of the Department.’’. 
(b) STREAMLINING OF FUNCTIONS.—Not later than 
January 1, 2021, the Secretary of Defense, acting through 
the Inspector General of the Department Defense, shall re-
duce or eliminate duplicative functions among the Inspec-
tors General across all organizations and elements of the 
Department with respect to the covered activities. 
(c) PLAN REQUIRED.—Not later than March 1, 2020, 
the Inspector General of the Department of Defense shall 
submit to the congressional defense committees a plan for 
complying with subsection (b). 
(d) COVERED ACTIVITIES DEFINED.—In this section, 
the term ‘‘covered activities’’ has the meaning given that 
term in section 141(e) of title 10, United States Code, as 
added by subsection (a) of this section. 
SEC. 913. TRANSITION OF CERTAIN DEFENSE AGENCIES 
AND DEPARTMENT OF DEFENSE FIELD AC-
TIVITIES. 
(a) DEFENSE INFORMATION SYSTEMS AGENCY.— 
(1) TRANSFER OF FUNCTIONS.—Not later than 
January 1, 2021, the Secretary of Defense, acting 
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through the Chief Management Officer of the Depart-
ment of Defense, shall— 
(A) transfer all information technology con-
tracting and acquisition services of the Defense 
Information Systems Agency to other elements of 
the Department of Defense, which may include 
the transfer of such services to the military de-
partments; and 
(B) transfer all senior leader communica-
tions functions of the Agency to other elements of 
the Department of Defense. 
(2) TRANSITION PLAN.—Not later than March 1, 
2020, the Chief Management Officer shall submit to 
the congressional defense committees a plan for the 
transfers required under paragraph (1). 
(b) ELIMINATION OF WASHINGTON HEADQUARTERS 
SERVICES.— 
(1) ELIMINATION
REQUIRED.—Not later than 
January 1, 2021, the Secretary of Defense, acting 
through the Chief Management Officer of the Depart-
ment of Defense, shall eliminate the Washington 
Headquarters Services. 
(2) TRANSFER OR ELIMINATION.— 
(A) TRANSFER.—The Chief Management 
Officer shall transfer to other elements of the Of-
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