HR 5013 RFS
business system review carried out by a military depart-
ment, a Defense Agency, or a Department of Defense 
Field Activity— 
‘‘(1) complies with generally accepted govern-
ment auditing standards issued by the Comptroller 
General; 
‘‘(2) is performed by an audit team that does 
not engage in any other official activity (audit-re-
lated or otherwise) involving the contractor con-
cerned; 
‘‘(3) is performed in a time and manner con-
sistent with a documented assessment of risk to the 
Federal Government; and 
‘‘(4) involves testing on a representative sample 
of transactions sufficient to fully examine the integ-
rity of the contractor business system concerned. 
‘‘(b) CONTRACTOR BUSINESS SYSTEM REVIEW DE-
FINED.—In this section, the term ‘contractor business sys-
tem review’ means an audit of policies, procedures, and 
internal controls relating to accounting and management 
systems of a contractor.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 131 of such title 
is amended by inserting after the item relating to 
section 2222 the following new item: 
‘‘2222a. Criteria for business system reviews.’’. 
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(c) CONTRACT AUDIT GUIDANCE.—Not later than 
180 days after the date of the enactment of this Act, the 
Secretary of Defense shall issue guidance relating to con-
tract audits carried out by a military department, a de-
fense agency, or a Department of Defense field activity 
that are not contractor business system reviews, as de-
scribed under section 2222a of title 10, United States 
Code, that— 
(1) requires that such audits comply with gen-
erally accepted government auditing standards 
issued by the Comptroller General and are per-
formed in a time and manner consistent with a doc-
umented assessment of risk to the Federal Govern-
ment; 
(2) establishes guidelines for discussions of the 
scope of the audit with the contractor concerned 
that ensure that such scope is not improperly influ-
enced by the contractor; 
(3) provides for withholding of contract pay-
ments when necessary to compel the submission of 
documentation from the contractor; and 
(4) requires that the results of contract audits 
performed on behalf of an agency of the Department 
of Defense be shared with other Federal agencies 
upon request, without reimbursement. 
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(d) EFFECTIVE DATES.— 
(1) SECTION
204.—Section 204 of title 10, 
United States Code, as added by subsection (a), 
shall take effect on the date of the enactment of this 
Act. 
(2) SECTION 2222A.—Section 2222a of title 10, 
United States Code, as added by subsection (b), 
shall take effect 180 days after the date of the en-
actment of this Act. 
SEC. 405. BLUE RIBBON PANEL ON ELIMINATING BARRIERS 
TO CONTRACTING WITH THE DEPARTMENT 
OF DEFENSE. 
(a) REQUIREMENT TO ESTABLISH.—The Secretary 
of Defense shall establish a panel consisting of owners of 
large and small businesses that are not traditional defense 
suppliers, for purposes of creating a set of recommenda-
tions on eliminating barriers to contracting with the De-
partment of Defense and its defense supply centers. 
(b) MEMBERS.—The panel shall consist of nine mem-
bers, of whom— 
(1) three shall be appointed by the Secretary of 
the Army; 
(2) three shall be appointed by the Secretary of 
the Navy; and 
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(3) three shall be appointed by the Secretary of 
the Air Force. 
(c) APPOINTMENT DEADLINE.—Members shall be 
appointed to the panel not later than 180 days after the 
date of the enactment of this Act. 
(d) DUTIES.—The panel shall be responsible for de-
veloping a set of recommendations on eliminating barriers 
to contracting with the Department of Defense and its de-
fense supply centers. 
(e) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the panel shall submit to 
Congress a report containing its recommendations. 
SEC. 406. INCLUSION OF THE PROVIDERS OF SERVICES 
AND INFORMATION TECHNOLOGY IN THE NA-
TIONAL 
TECHNOLOGY 
AND 
INDUSTRIAL 
BASE. 
(a) REVISED DEFINITIONS.—Section 2500 of title 
10, United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘or mainte-
nance’’ and inserting ‘‘integration, services, or infor-
mation technology’’; 
(2) in paragraph (4), by striking ‘‘or produc-
tion’’ and inserting ‘‘production, integration, serv-
ices, or information technology’’; 
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