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vanced extremely high frequency program being 
considered by the Secretary of the Air Force. 
(3) ELEMENTS.—An assessment described in 
paragraph (2) shall include, with respect to each al-
ternative to the space-based infrared system program 
of record and each alternative to the advanced ex-
tremely high frequency program of record being con-
sidered by the Secretary of the Air Force, the fol-
lowing: 
(A) The requirements for resilience and 
mission assurance. 
(B) The criteria to measure such resilience 
and mission assurance. 
(C) How the alternative affects— 
(i) 
deterrence 
and 
full 
spectrum 
warfighting; 
(ii) warfighter requirements and rel-
ative costs to include ground station and 
user terminals; 
(iii) the potential order of battle of ad-
versaries; and 
(iv) the required capabilities of the 
broader space security and defense enter-
prise. 
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(4) EXCEPTION.—The limitation in paragraph 
(1) shall not apply to efforts to examine and develop 
technology insertion opportunities for the space-based 
infrared system program of record or the satellite 
communications programs of record. 
(c) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means the following: 
(1) With respect to the submission of the assess-
ment described in subparagraph (A) of subsection 
(b)(2), the— 
(A) the congressional defense committees; 
and 
(B) the Permanent Select Committee on In-
telligence of the House of Representatives. 
(2) With respect to the submission of the assess-
ment described in subparagraph (B) of subsection 
(b)(2), the congressional defense committees. 
SEC. 1609. PLANS ON TRANSFER OF ACQUISITION AND 
FUNDING AUTHORITY OF CERTAIN WEATHER 
MISSIONS TO NATIONAL RECONNAISSANCE 
OFFICE. 
(a) LIMITATION.— 
(1) IN GENERAL.—Of the funds authorized to be 
appropriated or otherwise made available for fiscal 
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year 2017 for research, development, test, and evalua-
tion, Air Force, for the weather satellite follow-on sys-
tem, not more than 50 percent may be obligated or 
expended until the date on which the Secretary of the 
Air Force submits to the appropriate congressional 
committees the plan under paragraph (2). 
(2) AIR FORCE PLAN.—The Secretary shall de-
velop a plan for the Air Force to transfer, beginning 
with fiscal year 2018, the acquisition authority and 
the funding authority for covered space-based environ-
mental monitoring missions from the Air Force to the 
National Reconnaissance Office, including a descrip-
tion of the amount of funds that would be necessary 
to be transferred from the Air Force to the National 
Reconnaissance Office during fiscal years 2018 
through 2022 to carry out such plan. 
(b) NRO PLAN.— 
(1) IN GENERAL.—The Director of the National 
Reconnaissance Office shall develop a plan for the Na-
tional Reconnaissance Office to address how to carry 
out covered space-based environmental monitoring 
missions. Such plan shall include— 
(A) a description of the related national se-
curity requirements for such missions; 
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(B) a description of the appropriate man-
ner to meet such requirements; and 
(C) the amount of funds that would be nec-
essary to be transferred from the Air Force to the 
National Reconnaissance Office during fiscal 
years 2018 through 2022 to carry out such plan. 
(2) ACTIVITIES.—In developing the plan under 
paragraph (1), the Director may conduct pre-acquisi-
tion activities, including with respect to requests for 
information, analyses of alternatives, study contracts, 
modeling and simulation, and other activities the Di-
rector determines necessary to develop such plan. 
(3) SUBMISSION.—Not later than the date on 
which the President submits to Congress the budget 
for fiscal year 2018 under section 1105(a) of title 31, 
United States Code, the Director shall submit to the 
appropriate congressional committees the plan under 
paragraph (1). 
(c) INDEPENDENT COST ESTIMATE.—The Director of 
the Cost Assessment Improvement Group of the Office of the 
Director of National Intelligence, in coordination with the 
Director of Cost Assessment and Program Evaluation, shall 
certify to the appropriate congressional committees that the 
amounts of funds identified under subsections (a)(2) and 
(b)(1)(C) as being necessary to transfer are appropriate and 
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include funding for positions and personnel to support pro-
gram office costs. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the congressional defense committees; 
(B) the Permanent Select Committee on In-
telligence of the House of Representatives; and 
(C) the Select Committee on Intelligence of 
the Senate. 
(2) The term ‘‘covered space-based environmental 
monitoring missions’’ means the acquisition programs 
necessary to meet the national security requirements 
for cloud characterization and theater weather im-
agery. 
SEC. 1610. PILOT PROGRAM ON COMMERCIAL WEATHER 
DATA. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall establish a pilot program to assess the viability of 
commercial satellite weather data to support requirements 
of the Department of Defense. 
(b) COMMERCIAL WEATHER DATA.—Of the funds au-
thorized to be appropriated by this Act or otherwise made 
available for fiscal year 2017 for the Secretary of Defense 
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to carry out the pilot program under subsection (a), not 
more than $3,000,000 may be obligated or expended to 
carry out such pilot program by purchasing and evaluating 
commercial weather data that meets the standards and 
specifications set by the Department of Defense. 
(c) DURATION.—The Secretary may carry out the pilot 
program under subsection (a) for a period not exceeding 
one year. 
(d) BRIEFINGS.— 
(1) INTERIM BRIEFING.—Not later than 60 days 
after the date of the enactment of this Act, the Sec-
retary of Defense shall provide a briefing to the Com-
mittees on Armed Services of the House of Represent-
atives and the Senate (and to any other congressional 
defense committee upon request) demonstrating how 
the Secretary plans to implement the pilot program 
under subsection (a). 
(2) FINAL BRIEFING.—Not later than 90 days 
after the pilot program under subsection (a) is com-
pleted, the Secretary shall provide a briefing to the 
Committees on Armed Services of the House of Rep-
resentatives and the Senate (and to any other congres-
sional defense committee upon request) on the utility, 
cost, and other considerations regarding the purchase 
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of commercial satellite weather data to support the re-
quirements of the Department of Defense. 
SEC. 1611. ORGANIZATION AND MANAGEMENT OF NA-
TIONAL SECURITY SPACE ACTIVITIES OF THE 
DEPARTMENT OF DEFENSE. 
(a) FINDINGS.—Congress finds the following: 
(1) National security space capabilities are a 
vital element of the national defense of the United 
States. 
(2) The advantages of the United States in na-
tional security space are now threatened to an un-
precedented 
degree 
by 
growing 
and 
serious 
counterspace capabilities of potential foreign adver-
saries, and the space advantages of the United States 
must be protected. 
(3) The Department of Defense has recognized 
the threat and has taken initial steps necessary to de-
fend space, however the organization and manage-
ment may not be strategically postured to fully ad-
dress this changed domain of operations over the long 
term. 
(4) The defense of space is currently a priority 
for the leaders of the Department, however the space 
mission is managed within competing priorities of 
each of the Armed Forces. 
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(5) Space elements provide critical capabilities 
to all of the Armed Forces in the joint fight, however 
the disparate activities throughout the Department 
have no single leader that is empowered to make deci-
sions affecting the space forces of the Department. 
(b) SENSE OF CONGRESS.—It is the sense of Congress 
that, to modernize and fully address the growing threat to 
the national security space advantage of the United States, 
the Secretary of Defense must evaluate the range of options 
and take further action to strengthen the leadership, man-
agement, and organization of the national security space 
activities of the Department of Defense, including with re-
spect to— 
(1) unifying, integrating, and de-conflicting ac-
tivities to provide for stronger prioritization, account-
ability, coherency, focus, strategy, and integration of 
the joint space program of the Department; 
(2) streamlining decision-making, limiting un-
necessary bureaucracy, and empowering the appro-
priate level of authority, while enabling effective over-
sight; 
(3) maintaining the involvement of each of the 
Armed Forces and adapting the culture and improv-
ing the capabilities of the workforce to ensure the 
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workforce has the appropriate training, experience, 
and tools to accomplish the mission; and 
(4) reviewing authorities and preparing for a 
conflict that could extend to space. 
(c) RECOMMENDATIONS.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense and the Director of the Office of Management 
and Budget shall each separately submit to the appropriate 
congressional committees recommendations, in accordance 
with subsection (b), to strengthen the leadership, manage-
ment, and organization of the Department of Defense with 
respect to the national security space activities of the De-
partment. 
(d) APPROPRIATE CONGRESSIONAL COMMITTEES.—In 
this section, the term ‘‘appropriate congressional commit-
tees’’ means the following: 
(1) The congressional defense committees. 
(2) The Permanent Select Committee on Intel-
ligence of the House of Representatives and the Select 
Committee on Intelligence of the Senate. 
SEC. 1612. REVIEW OF CHARTER OF OPERATIONALLY RE-
SPONSIVE SPACE PROGRAM OFFICE. 
(a) REVIEW.—The Secretary of Defense shall conduct 
a review of charter of the Operationally Responsive Space 
Program Office established by section 2273a of title 10, 
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United States Code (in this section referred to as the ‘‘Of-
fice’’). 
(b) ELEMENTS.—The review under subsection (a) shall 
include the following: 
(1) A review of the key operationally responsive 
space needs with respect to the warfighter and with 
respect to national security. 
(2) How the Office could fit into the broader re-
silience and space security strategy of the Department 
of Defense. 
(3) An assessment of the potential of the Office 
to focus on the reconstitution capabilities with small 
satellites using low-cost launch vehicles and existing 
infrastructure. 
(4) An assessment of the potential of the Office 
to leverage existing or planned commercial capabili-
ties. 
(5) A review of the necessary workforce special-
ties and acquisition authorities of the Office. 
(6) A review of the funding profile of the Office. 
(7) A review of the organizational placement and 
reporting structure of the Office. 
(c) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary shall submit to 
the congressional defense committees a report containing the 
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review under subsection (a), including any recommenda-
tions for legislative actions based on such review. 
SEC. 1613. BACKUP AND COMPLEMENTARY POSITIONING, 
NAVIGATION, AND TIMING CAPABILITIES OF 
GLOBAL POSITIONING SYSTEM. 
(a) STUDY.— 
(1) IN GENERAL.—The covered Secretaries shall 
jointly conduct a study to assess and identify the 
technology-neutral requirements to backup and com-
plement the positioning, navigation, and timing ca-
pabilities of the Global Positioning System for na-
tional security and critical infrastructure. 
(2) REPORT.—Not later than one year after the 
date of the enactment of this Act, the covered Secre-
taries shall submit to the appropriate congressional 
committees a report on the study under paragraph 
(1). Such report shall include— 
(A) with respect to the Department of each 
covered Secretary, the identification of the re-
spective requirements to backup and complement 
the positioning, navigation, and timing capabili-
ties of the Global Positioning System for na-
tional security and critical infrastructure; 
(B) an analysis of alternatives to meet such 
requirements, including, at a minimum— 
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(i) an analysis of the viability of a 
public-private partnership to establish a 
complementary positioning, navigation, and 
timing system; and 
(ii) an analysis of the viability of serv-
ice level agreements to operate a com-
plementary positioning, navigation, and 
timing system; and 
(C) a plan and estimated costs, schedule, 
and system level technical considerations, includ-
ing end user equipment and integration consid-
erations, to meet such requirements. 
(b) SINGLE DESIGNATED OFFICIAL.—Each covered 
Secretary shall designate a single senior official of the De-
partment of the Secretary to act as the primary representa-
tive of such Department for purposes of conducting the 
study under subsection (a)(1). 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the congressional defense committees; 
(B) the Committee on Science, Space, and 
Technology, the Committee on Transportation 
and Infrastructure, and the Committee on 
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Homeland Security of the House of Representa-
tives; and 
(C) the Committee on Commerce, Science, 
and Transportation and the Committee on 
Homeland Security and Governmental Affairs of 
the Senate. 
(2) The term ‘‘covered Secretaries’’ means the 
Secretary of Defense, the Secretary of Transportation, 
and the Secretary of Homeland Security. 
Subtitle B—Defense Intelligence 
and Intelligence-Related Activities 
SEC. 1621. LIMITATION ON AVAILABILITY OF FUNDS FOR IN-
TELLIGENCE MANAGEMENT. 
(a) LIMITATION.—Of the funds authorized to be appro-
priated by this Act or otherwise made available for fiscal 
year 2017 for operation and maintenance, Defense-wide, for 
intelligence management, not more than 95 percent may be 
obligated or expended until the date on which the Under 
Secretary of Defense for Intelligence submits to the appro-
priate congressional committees the reports on counterintel-
ligence activities described in any classified annex accom-
panying this Act. 
(b) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means the following: 
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(1) The congressional defense committees. 
(2) The Permanent Select Committee on Intel-
ligence of the House of Representatives. 
SEC. 1622. LIMITATIONS ON AVAILABILITY OF FUNDS FOR 
UNITED STATES CENTRAL COMMAND INTEL-
LIGENCE FUSION CENTER. 
(a) LIMITATIONS.—Of the funds authorized to be ap-
propriated by this Act or otherwise made available for fiscal 
year 2017 for the Intelligence Fusion Center of the United 
States Central Command— 
(1) 25 percent may not be obligated or expended 
until— 
(A) the Commander of the United States 
Central Command submits to the appropriate 
congressional committees the report under sub-
section (b); and 
(B) a period of 15 days has elapsed fol-
lowing the date of such submission; and 
(2) 25 percent may not be obligated or expended 
until— 
(A) the Commander submits to such com-
mittees the report under subsection (c); and 
(B) a period of 15 days has elapsed fol-
lowing the date of such submission. 
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(b) REPORT ON PROCEDURES.—The Commander shall 
submit to the appropriate congressional committees a report 
on the steps taken by the Commander to formalize and dis-
seminate procedures for establishing, staffing, and oper-
ating the Intelligence Fusion Center of the United States 
Central Command. 
(c) REPORT ON IG FINDINGS.—The Commander shall 
submit to the appropriate congressional committees a report 
on the steps taken by the Commander to address the find-
ings of the final report of the Inspector General of the De-
partment of Defense regarding the processing of intelligence 
information by the Intelligence Directorate of the United 
States Central Command. 
(d) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means— 
(1) the congressional defense committees; and 
(2) the Permanent Select Committee on Intel-
ligence of the House of Representatives. 
SEC. 1623. LIMITATION ON AVAILABILITY OF FUNDS FOR 
JOINT INTELLIGENCE ANALYSIS COMPLEX. 
(a) LIMITATION.—Of the funds authorized to be appro-
priated by this Act or otherwise made available for fiscal 
year 2017 for increased intelligence manpower positions for 
operation of the Joint Intelligence Analysis Complex at 
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Royal Air Force Molesworth, United Kingdom, not more 
than 85 percent may be obligated or expended during fiscal 
year 2017 until the date on which the Secretary of Defense 
submits to the appropriate congressional committees the 
analysis under subsection (b)(1). 
(b) ANALYSIS.— 
(1) IN GENERAL.—Not later than 120 days after 
the date of the enactment of this Act, the Secretary of 
Defense, in coordination with the Director of National 
Intelligence, shall submit to the appropriate congres-
sional committees a revised analysis of alternatives 
for the basing of a new Joint Intelligence Analysis 
Complex that is— 
(A) based on the analysis of the operational 
requirements and costs of the United States; and 
(B) informed by the findings of the report 
of the Comptroller General of the United States 
on the cost estimating and basing decision proc-
ess of the Joint Intelligence Analysis Complex. 
(2) REQUIREMENTS.—The analysis under para-
graph (1) shall, at a minimum— 
(A) be conducted in a manner that— 
(i) uses best practices; 
(ii) appropriately accounts for non-re-
curring and life cycle costs, including with 
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respect to cost of living and projected 
growth in cost of living; 
(iii) uses objective and measurable cri-
teria for evaluating alternative locations 
against mission requirements; and 
(iv) uses reasonable and verifiable as-
sumptions; 
(B) include the identification and assess-
ments of— 
(i) possible alternative locations for the 
Joint Intelligence Analysis Complex at ex-
isting military installations used by the 
United States; and 
(ii) other possible cost-saving alter-
natives; 
(C) evaluate alternative practices to mini-
mize the number of support personnel required; 
(D) evaluate alternatives to building a new 
facility, including modifying existing facilities 
and using prefabricated facilities; and 
(E) evaluate the possibility of separating 
the European Command Intelligence Analytic 
Center, the Africa Command Intelligence Ana-
lytic Center, or the NATO Intelligence Fusion 
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Center from the rest of the Joint Intelligence 
Analysis Complex at other viable locations. 
(c) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means— 
(1) the congressional defense committees; and 
(2) the Permanent Select Committee on Intel-
ligence of the House of Representatives. 
Subtitle C—Cyberspace-Related 
Matters 
SEC. 1631. SPECIAL EMERGENCY PROCUREMENT AUTHOR-
ITY TO FACILITATE THE DEFENSE AGAINST 
OR RECOVERY FROM A CYBER ATTACK. 
Section 1903(a)(2) of title 41, United States Code, is 
amended by inserting ‘‘cyber,’’ before ‘‘nuclear,’’. 
SEC. 1632. CHANGE IN NAME OF NATIONAL DEFENSE UNI-
VERSITY’S INFORMATION RESOURCES MAN-
AGEMENT COLLEGE TO COLLEGE OF INFOR-
MATION AND CYBERSPACE. 
Section 2165(b)(5) of title 10, United States Code, is 
amended by striking ‘‘Information Resources Management 
College’’ and inserting ‘‘College of Information and Cyber-
space’’. 
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SEC. 1633. REQUIREMENT TO ENTER INTO AGREEMENTS 
RELATING TO USE OF CYBER OPPOSITION 
FORCES. 
(a) REQUIREMENT FOR AGREEMENTS.—Not later than 
September 30, 2017, the Secretary of Defense shall enter 
into an agreement with each combatant command relating 
to the use of cyber opposition forces. Each agreement shall 
require the command— 
(1) to support a high state of mission readiness 
in the command through the use of one or more cyber 
opposition forces in continuous exercises and other 
training activities as considered appropriate by the 
commander of the command; and 
(2) in conducting such exercises and training ac-
tivities, meet the standard required under subsection 
(b). 
(b) JOINT
STANDARD
FOR
CYBER
OPPOSITION 
FORCES.—Not later than March 31, 2017, the Secretary of 
Defense shall issue a joint training and certification stand-
ard for use by all cyber opposition forces within the Depart-
ment of Defense. 
(c) BRIEFING REQUIRED.—Not later than September 
30, 2017, the Secretary of Defense shall provide to the con-
gressional defense committees a briefing on— 
(1) a list of each combatant command that has 
entered into an agreement required by subsection (a); 
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(2) with respect to each such agreement— 
(A) special conditions in the agreement 
placed on any cyber opposition force used by the 
command; 
(B) the process for making decisions about 
deconfliction and risk mitigation of cyber oppo-
sition force activities in continuous exercises and 
training; 
(C) identification of cyber opposition forces 
trained and certified to operate at the joint 
standard, as issued under subsection (b); 
(D) identification of the annual exercises 
that will include participation of the cyber oppo-
sition forces; 
(E) identification of any shortfalls in re-
sources that may prevent annual exercises using 
cyber opposition forces; and 
(3) any other matters the Secretary of Defense 
considers appropriate. 
SEC. 1634. LIMITATION ON AVAILABILITY OF FUNDS FOR 
CRYPTOGRAPHIC SYSTEMS AND KEY MAN-
AGEMENT INFRASTRUCTURE. 
(a) LIMITATION.—Of the funds authorized to be appro-
priated by this Act or otherwise made available for fiscal 
year 2017 for cryptographic systems and key management 
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infrastructure, not more than 75 percent may be obligated 
or expended until the date on which the Secretary of De-
fense, in consultation with the Director of the National Se-
curity Agency, submits to the appropriate congressional 
committees a report on the integration of the cryptographic 
modernization and key management infrastructure pro-
grams of the military departments, including a description 
of how the military departments have implemented stronger 
leadership, increased integration, and reduced redundancy 
with respect to such modernization and programs. 
(b) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means the following: 
(1) The congressional defense committees. 
(2) The Permanent Select Committee on Intel-
ligence of the House of Representatives. 
Subtitle D—Nuclear Forces 
SEC. 1641. IMPROVEMENTS TO COUNCIL ON OVERSIGHT OF 
NATIONAL 
LEADERSHIP 
COMMAND, 
CON-
TROL, AND COMMUNICATIONS SYSTEM. 
(a) RESPONSIBILITIES.—Subsection (d) of section 
171a of title 10, United States Code, is amended— 
(1) in paragraph (1), by inserting before the pe-
riod the following: ‘‘, and including with respect to 
the integrated tactical warning and attack assessment 
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systems, processes, and enablers, and continuity of the 
governmental functions of the Department of De-
fense’’; and 
(2) in paragraph (2)(C), by inserting before the 
period the following: ‘‘(including space system archi-
tectures and associated user terminals and ground 
segments)’’. 
(b) ENSURING CAPABILITIES.—Such section is further 
amended— 
(1) by redesignating subsection (i) as subsection 
(k); and 
(2) by inserting after subsection (h) the following 
new subsections: 
‘‘(i) REPORTS ON SPACE ARCHITECTURE DEVELOP-
MENT.—(1) Not less than 90 days before each of the dates 
on which a system described in paragraph (2) achieves 
Milestone A or Milestone B approval, the Under Secretary 
of Defense for Acquisitions, Technology, and Logistics shall 
submit to the congressional defense committees a report pre-
pared by the Council detailing the implications of any 
changes to the architecture of such a system with respect 
to the systems, capabilities, and programs covered under 
subsection (d). 
‘‘(2) A system described in this paragraph is any of 
the following: 
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‘‘(A) Advanced extremely high frequency sat-
ellites. 
‘‘(B) The space-based infrared system. 
‘‘(C) The integrated tactical warning and attack 
assessment system and its command and control sys-
tem. 
‘‘(D) The enhanced polar system. 
‘‘(3) In this subsection, the terms ‘Milestone A ap-
proval’ and ‘Milestone B approval’ have the meanings given 
such terms in section 2366(e) of this title. 
‘‘(j) NOTIFICATION OF REDUCTION OF CERTAIN WARN-
ING TIME.—(1) None of the funds authorized to be appro-
priated or otherwise made available to the Department of 
Defense for any fiscal year may be used to change any com-
mand, control, and communications system described in 
subsection (d)(1) in a manner that reduces the warning 
time provided to the national leadership of the United 
States with respect to a warning of a strategic missile at-
tack on the United States unless— 
‘‘(A) the Secretary of Defense notifies the con-
gressional defense committees of such proposed change 
and reduction; and 
‘‘(B) a period of one year elapses following the 
date of such notification. 
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‘‘(2) Not later than March 1, 2017, and each year 
thereafter, the Council shall determine whether the inte-
grated tactical warning and attack assessment system and 
its command and control system have met all warfighter 
requirements for operational availability, survivability, 
and endurability. If the Council determines that such sys-
tems have not met such requirements, the Secretary of De-
fense and the Chairman shall jointly submit to the congres-
sional defense committees— 
‘‘(A) an explanation for such negative deter-
mination; 
‘‘(B) a description of the mitigations that are in 
place or being put in place as a result of such nega-
tive determination; and 
‘‘(C) the plan of the Secretary and the Chairman 
to ensure that the Council is able to make a positive 
determination in the following year.’’. 
(d) REPORTING REQUIREMENTS.—Subsection (e) of 
such section is amended by striking ‘‘At the same time’’ 
and all that follows through ‘‘title 31,’’ and inserting the 
following: ‘‘During the period preceding January 31, 2021, 
at the same time each year that the budget of the President 
is submitted to Congress pursuant to section 1105(a) of title 
31, and from time to time after such period at the discretion 
of the Council,’’. 
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SEC. 1642. TREATMENT OF CERTAIN SENSITIVE INFORMA-
TION BY STATE AND LOCAL GOVERNMENTS. 
(a) SPECIAL NUCLEAR MATERIAL.—Section 128 of 
title 10, United States Code, is amended by adding at the 
end the following new subsection: 
‘‘(d) Information that the Secretary prohibits to be dis-
seminated pursuant to subsection (a) that is provided to 
a State or local government shall remain under the control 
of the Department of Defense, and a State or local law au-
thorizing or requiring a State or local government to dis-
close such information shall not apply to such informa-
tion.’’. 
(b) CRITICAL INFRASTRUCTURE SECURITY INFORMA-
TION.—Section 130e of such title is amended— 
(1) by redesignating subsection (c) as subsection 
(f) and moving such subsection, as so redesignated, to 
appear after subsection (e); and 
(2) by striking subsection (b) and inserting the 
following new subsections: 
‘‘(b) DESIGNATION
OF DEPARTMENT
OF DEFENSE 
CRITICAL INFRASTRUCTURE SECURITY INFORMATION.—In 
addition to any other authority or requirement regarding 
protection from dissemination of information, the Secretary 
may designate information as being Department of Defense 
critical infrastructure security information, including dur-
ing the course of creating such information, to ensure that 
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such information is not disseminated without authoriza-
tion. Information so designated is subject to the determina-
tion process under subsection (a) to determine whether to 
exempt such information from disclosure described in such 
subsection. 
‘‘(c) INFORMATION PROVIDED TO STATE AND LOCAL 
GOVERNMENTS.—(1) Department of Defense critical infra-
structure security information covered by a written deter-
mination under subsection (a) or designated under sub-
section (b) that is provided to a State or local government 
shall remain under the control of the Department of De-
fense. 
‘‘(2)(A) A State or local law authorizing or requiring 
a State or local government to disclose Department of De-
fense critical infrastructure security information that is 
covered by a written determination under subsection (a) 
shall not apply to such information. 
‘‘(B) If a person requests pursuant to a State or local 
law that a State or local government disclose information 
that is designated as Department of Defense critical infra-
structure security information under subsection (b), the 
State or local government shall provide the Secretary an 
opportunity to carry out the determination process under 
subsection (a) to determine whether to exempt such informa-
tion from disclosure pursuant to subparagraph (A).’’. 
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(c) CONFORMING AMENDMENTS.— 
(1) SECTION 128.—Section 128 of such title is 
further amended in the section heading by striking 
‘‘Physical’’ and inserting ‘‘Control and phys-
ical’’. 
(2) SECTION 130E.—Section 130e of such title is 
further amended— 
(A) by striking the section heading and in-
serting the following new section heading: 
‘‘Control and protection of critical in-
frastructure security information’’; 
(B) in subsection (a), by striking the sub-
section heading and inserting the following new 
subsection heading; ‘‘EXEMPTION FROM FREE-
DOM OF INFORMATION ACT.—’’; 
(C) in subsection (d), by striking the sub-
section heading and inserting the following new 
subsection heading: ‘‘DELEGATION
OF DETER-
MINATION AUTHORITY.—’’; and 
(D) in subsection (e), by striking the sub-
section heading and inserting the following new 
subsection heading: ‘‘TRANSPARENCY OF DETER-
MINATIONS.—’’. 
(d) CLERICAL AMENDMENTS.—The table of sections at 
the beginning of chapter 3 of such title is amended— 
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(1) by striking the item relating to section 128 
and inserting the following new item: 
‘‘128. Control and physical protection of special nuclear material: limitation on 
dissemination of unclassified information.’’; and 
(2) by striking the item relating to section 130e 
and inserting the following new item: 
‘‘130e. Control and protection of critical infrastructure security information.’’. 
SEC. 1643. PROCUREMENT AUTHORITY FOR CERTAIN PARTS 
OF INTERCONTINENTAL BALLISTIC MISSILE 
FUZES. 
(a) AVAILABILITY OF FUNDS.—Notwithstanding sec-
tion 1502(a) of title 31, United States Code, of the amount 
authorized to be appropriated for fiscal year 2017 by sec-
tion 101 and available for Missile Procurement, Air Force, 
as specified in the funding table in section 4101, 
$17,095,000 shall be available for the procurement of cov-
ered parts pursuant to contracts entered into under section 
1645(a) of the Carl Levin and Howard P. ‘‘Buck’’ Mckeon 
National Defense Authorization Act for Fiscal Year 2015 
(Public Law 113–291; 128 Stat. 3651). 
(b) COVERED PARTS DEFINED.—In this section, the 
term ‘‘covered parts’’ means commercially available off-the- 
shelf items as defined in section 104 of title 41, United 
States Code. 
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SEC. 1644. PROHIBITION ON AVAILABILITY OF FUNDS FOR 
MOBILE VARIANT OF GROUND-BASED STRA-
TEGIC DETERRENT MISSILE. 
None of the funds authorized to be appropriated by this 
Act or otherwise made available for any of fiscal years 2017 
or 2018 may be obligated or expended to retain the option 
for, or develop, a mobile variant of the ground-based stra-
tegic deterrent missile. 
SEC. 1645. LIMITATION ON AVAILABILITY OF FUNDS FOR 
EXTENSION OF NEW START TREATY. 
(a) LIMITATION.—None of the funds authorized to be 
appropriated by this Act or otherwise made available for 
fiscal year 2017 or any other fiscal year for the Department 
of Defense may be obligated or expended to extend the New 
START Treaty unless— 
(1) the Chairman of the Joint Chiefs of Staff 
submits the report under subsection (b); 
(2) the Director of National Intelligence submits 
the National Intelligence Estimate under subsection 
(c)(2); and 
(3) a period of 180 days elapses following the 
submission of both the report and the National Intel-
ligence Estimate. 
(b) REPORT.—The Chairman of the Joint Chiefs of 
Staff shall submit to the appropriate congressional commit-
tees a report detailing the following: 
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(1) The impacts on the nuclear forces and force 
planning of the United States with respect to a State 
Party to the New START Treaty developing a capa-
bility to conduct a rapid reload of its ballistic mis-
siles. 
(2) Whether any State Party to the New START 
Treaty has significantly increased its upload capa-
bility with non-deployed nuclear warheads and the 
degree to which such developments impact crisis sta-
bility and the nuclear forces, force planning, use con-
cepts, and deterrent strategy of the United States. 
(3) The extent to which non-treaty-limited nu-
clear or strategic conventional systems pose a threat 
to the United States or the allies of the United States. 
(4) The extent to which violations of arms con-
trol treaty and agreement obligations pose a risk to 
the national security of the United States and the al-
lies of the United States, including the perpetuation 
of violations ongoing as of the date of the enactment 
of this Act, as well as potential further violations. 
(5) The extent to which— 
(A) the ‘‘escalate-to-deescalate’’ nuclear use 
doctrine of the Russian Federation is deterred 
under the current nuclear force structure, weap-
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ons capabilities, and declaratory policy of the 
United States; and 
(B) deterring the implementation of such a 
doctrine has been integrated into the warplans of 
the United States. 
(6) The status of the nuclear weapons, nuclear 
weapons infrastructure, and nuclear command and 
control modernization activities of the United States, 
and the impact such status has on plans to— 
(A) implement the reduction of the nuclear 
weapons of the United States; or 
(B) further reduce the numbers and types of 
such weapons. 
(7) Whether, and if so, the reasons that, the New 
START Treaty, and the extension of the treaty as of 
the date of the report, is in the national security in-
terests of the United States. 
(c) NATIONAL INTELLIGENCE ESTIMATE.— 
(1) PRODUCTION.—The Director of National In-
telligence shall produce a National Intelligence Esti-
mate on the following: 
(A) The nuclear forces and doctrine of the 
Russian Federation. 
(B) The nuclear weapons research and pro-
duction capability of Russia. 
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(C) The compliance of Russia with respect 
to arms control obligations (including treaties, 
agreements, and other obligations). 
(D) The doctrine of Russia with respect to 
targeting adversary critical infrastructure and 
the relationship between such doctrine and other 
Russian war planning, including, at a min-
imum, ‘‘escalate-to-deescalate’’ concepts. 
(2) SUBMISSION.—The Director of National In-
telligence shall submit. consistent with the protection 
of sources and methods, to the appropriate congres-
sional committees the National Intelligence Estimate 
produced under paragraph (1). 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committees on Armed Services of 
the House of Representatives and the Senate; 
(B) the Committee on Foreign Affairs of the 
House of Representatives and the Committee on 
Foreign Relations of the Senate; and 
(C) the Permanent Select Committee on In-
telligence of the House of Representatives and the 
Select Committee on Intelligence of the Senate. 
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(2) The term ‘‘New START Treaty’’ means the 
Treaty between the United States of America and the 
Russian Federation on Measures for the Further Re-
duction and Limitation of Strategic Offensive Arms, 
signed on April 8, 2010, and entered into force on 
February 5, 2011. 
SEC. 1646. CONSOLIDATION OF NUCLEAR COMMAND, CON-
TROL, AND COMMUNICATIONS FUNCTIONS OF 
THE AIR FORCE. 
(a) ROLE OF MAJOR COMMAND.— 
(1) CONSOLIDATION.—Not later than March 31, 
2017, the Secretary of the Air Force shall consolidate 
under a major command commanded by a single gen-
eral officer the responsibility, authority, account-
ability, and resources for carrying out the nuclear 
command, control, and communications functions of 
the Air Force, including, at a minimum, with respect 
to the following: 
(A) All terrestrial and aerial components of 
the nuclear command and control system that 
are survivable and endurable. 
(B) All terrestrial and aerial components of 
the integrated tactical warning and attack as-
sessment system that are survivable and endur-
able. 
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(2) OVERSIGHT
AND
BUDGET
APPROVAL.—Not 
later than March 31, 2017, in addition to the respon-
sibility, authority, accountability, and resources for 
carrying out the nuclear command, control, and com-
munications functions of the Air Force provided to a 
commander of a major command under paragraph 
(1), the Secretary shall provide to the commander the 
responsibility, authority, accountability, and re-
sources to— 
(A) conduct oversight over all components of 
the nuclear command and control system and the 
integrated tactical warning and attack assess-
ment system, regardless of the location or the 
endurability of such components; and 
(B) approve or disapprove of any budgetary 
actions related to all components of the nuclear 
command and control system and the integrated 
tactical warning and attack assessment system, 
regardless of the location or the endurability of 
such components. 
(b) REPORT.—Not later than January 15, 2017, the 
Secretary shall submit to the congressional defense commit-
tees a report on the plans and actions taken by the Sec-
retary to carry out subsection (a), including any guidance, 
directives, and orders that have been or will be issued by 
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the Secretary, the Chief of Staff of the Air Force, or other 
elements of the Air Force to carry out subsection (a). 
SEC. 1647. REPORT ON RUSSIAN AND CHINESE POLITICAL 
AND MILITARY LEADERSHIP SURVIVABILITY, 
COMMAND AND CONTROL, AND CONTINUITY 
OF GOVERNMENT PROGRAMS AND ACTIVI-
TIES. 
(a) REPORT.—Not later than January 15, 2017, the 
Director of National Intelligence shall submit to the appro-
priate congressional committees, consistent with the protec-
tion of sources and methods, a report on the leadership sur-
vivability, command and control, and continuity of govern-
ment programs and activities with respect to the People’s 
Republic of China and the Russian Federation, respectively. 
The report shall include the following: 
(1) The goals and objectives of such programs 
and activities of each respective country. 
(2) An assessment of how such programs and ac-
tivities fit into the political and military doctrine 
and strategy of each respective country. 
(3) An assessment of the size and scope of such 
activities, including the location and description of 
above-ground and underground facilities important to 
the political and military leadership survivability, 
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command and control, and continuity of government 
programs and activities of each respective country. 
(4) An identification of which facilities various 
senior political and military leaders of each respective 
country are expected to operate out of during crisis 
and wartime. 
(5) A technical assessment of the political and 
military means and methods for command and con-
trol in wartime of each respective country. 
(6) An identification of key officials and organi-
zations of each respective country involved in man-
aging and operating such facilities, programs and ac-
tivities, including the command structure for each or-
ganization involved in such programs and activities. 
(7) An assessment of how senior leaders of each 
respective country measure the effectiveness of such 
programs and activities. 
(8) An estimate of the annual cost of such pro-
grams and activities. 
(9) An assessment of the degree of enhanced sur-
vivability such programs and activities can be ex-
pected to provide in various military scenarios rang-
ing from limited conventional conflict to strategic nu-
clear employment. 
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(10) An assessment of the type and extent of for-
eign assistance, if any, in such programs and activi-
ties. 
(11) An assessment of the status and the effec-
tiveness of the intelligence collection of the United 
States on such programs and capabilities, and any 
gaps in such collection. 
(12) Any other matters the Director determines 
appropriate. 
(b) COUNCIL ASSESSMENT.—Not later than 90 days 
after the date on which the Director submits the report 
under subsection (a), the Council on Oversight of the Na-
tional Leadership Command, Control, and Communica-
tions System established by section 171a of title 10, United 
States Code, shall submit to the appropriate congressional 
committees an assessment of how the command, control, and 
communications systems for the national leadership of the 
People’s Republic of China and the Russian Federation, re-
spectively, compare to such system of the United States. 
(c) STRATCOM.—Together with the assessment sub-
mitted under subsection (b), the Commander of the United 
States Strategic Command shall submit to the appropriate 
congressional committees the views of the Commander on 
the report under subsection (a), including a detailed de-
scription for how the leadership survivability, command 
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and control, and continuity of government programs and 
activities of the People’s Republic of China and the Russian 
Federation, respectively, are considered in the plans and 
options under the responsibility of the Commander under 
the unified command plan. 
(d) FORMS.—Each report or assessment submitted 
under this section may be submitted in unclassified form, 
but may include a classified annex. 
(e) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means— 
(1) the congressional defense committees; and 
(2) the Permanent Select Committee on Intel-
ligence of the House of Representatives and the Select 
Committee on Intelligence of the Senate. 
SEC. 1648. SENSE OF CONGRESS ON IMPORTANCE OF INDE-
PENDENT NUCLEAR DETERRENT OF UNITED 
KINGDOM. 
It is the sense of Congress that— 
(1) the United States believes that the inde-
pendent nuclear deterrent and decision-making of the 
United Kingdom provides a crucial contribution to 
international stability, the North Atlantic Treaty Or-
ganization alliance, and the national security of the 
United States; 
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(2) nuclear deterrence is and will continue to be 
the highest priority mission of the Department of De-
fense and the United States benefits when the closest 
ally of the United States clearly and unequivocally 
sets similar priorities; 
(3) the United States sees the nuclear deterrent 
of the United Kingdom as central to trans-Atlantic 
security and to the commitment of the United King-
dom to NATO to spend two percent of gross domestic 
product on defense; 
(4) the commitment of the United Kingdom to 
maintain a continuous at-sea deterrence posture 
today and in the future complements the deterrent ca-
pabilities of the United States and provides a credible 
‘‘second center of decision making’’ which ensures po-
tential attackers cannot discount the solidarity of the 
mutual relationship of the United States and the 
United Kingdom; 
(5) the United States Navy must execute the 
Ohio-class replacement submarine program on time 
and within budget, seeking efficiencies and cost sav-
ings wherever possible, to ensure that the program de-
livers a Common Missile Compartment, the Trident 
II (D5) Strategic Weapon System, and associated 
equipment and production capabilities, that support 
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the successful development and deployment of the 
Vanguard-successor submarines of the United King-
dom; and 
(6) the close technical collaboration, especially 
expert mutual scientific peer review, provides valuable 
resilience and cost effectiveness to the respective deter-
rence programs of the United States and the United 
Kingdom. 
Subtitle E—Missile Defense 
Programs 
SEC. 1651. EXTENSIONS OF PROHIBITIONS RELATING TO 
MISSILE DEFENSE INFORMATION AND SYS-
TEMS. 
(a) PROHIBITION ON INTEGRATION OF CERTAIN MIS-
SILE DEFENSE SYSTEMS.— 
(1) IN
GENERAL.—Section 130h of title 10, 
United States Code, is amended— 
(A) by redesignating subsection (d) as sub-
section (e); 
(B) by inserting after subsection (c) the fol-
lowing new subsection (d): 
‘‘(d) INTEGRATION.—None of the funds authorized to 
be appropriated or otherwise made available for any fiscal 
year for the Department of Defense may be obligated or ex-
pended to integrate a missile defense system of the Russian 
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Federation or a missile defense system of the People’s Re-
public of China into any missile defense system of the 
United States.’’; and 
(C) by striking the section heading and in-
serting the following: ‘‘Prohibitions relat-
ing to missile defense information and 
systems’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 3 of title 10, United 
States Code, is amended by striking the item relating 
to section 130h and inserting the following new item: 
‘‘130h. Prohibitions relating to missile defense information and systems.’’. 
(3) CONFORMING REPEALS.—Sections 1672 and 
1673 of the National Defense Authorization Act for 
Fiscal Year 2016 (Public Law 114–92; 129 Stat. 
1130) are repealed. 
(b) EXTENSION OF SUNSET.—Section 130h(e) of title 
10, United States Code, as redesignated by subsection 
(a)(1), is amended to read as follows: 
‘‘(e) SUNSET.—The prohibitions in subsections (a), 
(b), and (d) shall expire on January 1, 2027.’’. 
SEC. 1652. REVIEW OF THE MISSILE DEFEAT POLICY AND 
STRATEGY OF THE UNITED STATES. 
(a) NEW REVIEW.—The Secretary of Defense and the 
Chairman of the Joint Chiefs of Staff shall jointly conduct 
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a new review of the missile defeat capability, policy, and 
strategy of the United States, with respect to— 
(1) left- and right-of-launch ballistic missile de-
fense for— 
(A) both regional and homeland purposes; 
and 
(B) the full range of active, passive, kinetic, 
and nonkinetic defense measures across the full 
spectrum of land-, air-, sea-, and space-based 
platforms; 
(2) the integration of offensive and defensive 
forces for the defeat of ballistic missiles, including 
against weapons initially deployed on ballistic mis-
siles, such as hypersonic glide vehicles; and 
(3) cruise missile defense of the homeland. 
(b) ELEMENTS.—The review under subsection (a) shall 
address the following: 
(1) The missile defeat policy, strategy, and objec-
tives of the United States in relation to the national 
security strategy of the United States and the mili-
tary strategy of the United States. 
(2) The role of deterrence in the missile defeat 
policy and strategy of the United States. 
(3) The missile defeat posture, capability, and 
force structure of the United States. 
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(17) The role of multi-mission defense and other 
assets of the United States, including space and ter-
restrial sensors and plans to achieve multi-mission 
capability in current, planned, and other future as-
sets and acquisition programs. 
(18) The indications and warning required to 
meet the missile defeat strategy and objectives of the 
United States described in paragraph (1) and the key 
enablers and programs to achieve such indications 
and warning. 
(19) The impact of the mobility, counter-
measures, and denial and deception capabilities of 
adversaries on the indications and warning described 
in paragraph (16) and the consequences of such im-
pact for the missile defeat capability, objectives, and 
military options of the United States and the plans 
of the combatant commanders. 
(20) Any other matters the Secretary determines 
relevant. 
(c) REPORTS.— 
(1) RESULTS.—Not later than January 31, 
2018, the Secretary shall submit to the congressional 
defense committees a report setting forth the results of 
the review under subsection (a). 
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(2) FORM.—The report required by paragraph 
(1) shall be submitted in unclassified form, but may 
include a classified annex. 
(3) ANNUAL IMPLEMENTATION UPDATES.—Dur-
ing the five-year period beginning on the date of the 
submission of the report under paragraph (1), the Di-
rector of Cost Assessment and Program Evaluation 
shall submit to the Secretary of Defense, the Chair-
man of the Joint Chiefs of Staff, and the congres-
sional defense committees annual status updates de-
tailing the progress of the Secretary in implementing 
the missile defeat strategy of the United States. 
(4) THREAT REPORT.—Not later than 180 days 
after the date of the enactment of this Act, the Direc-
tor of National Intelligence shall submit to the con-
gressional defense committees, the Permanent Select 
Committee on Intelligence of the House of Representa-
tives, and the Select Committee on Intelligence of the 
Senate a report containing an unclassified summary, 
consistent with the protection of intelligence sources 
and methods, of— 
(A) as of the date of the report, the ballistic 
and cruise missile threat to the United States, 
deployed forces of the United States, and friends 
and allies of the United States from short-, me-
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dium-, intermediate-, and long-range nuclear 
and non-nuclear ballistic and cruise missile 
threats; and 
(B) an assessment of such threat in 2026. 
(d) NOTIFICATION.— 
(1) IN GENERAL.—None of the funds authorized 
to be appropriated by this Act or otherwise made 
available for fiscal year 2017 or any fiscal year there-
after for the Secretary of Defense may be obligated or 
expended to change the non-standard acquisition 
processes and responsibilities described in paragraph 
(2) until— 
(A) the Secretary notifies the congressional 
defense committees of such proposed change; and 
(B) a period of 180 days has elapsed fol-
lowing the date of such notification. 
(2) NON-STANDARD ACQUISITION PROCESSES AND 
RESPONSIBILITIES
DESCRIBED.—The non-standard 
acquisition processes and responsibilities described in 
this paragraph are such processes and responsibilities 
described in— 
(A) the memorandum of the Secretary of 
Defense titled ‘‘Missile Defense Program Direc-
tion’’ signed on January 2, 2002; and 
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(B) 
Department 
of 
Defense 
Directive 
5134.09, as in effect on the date of the enactment 
of this Act. 
(e) DESIGNATION REQUIRED.— 
(1) AUTHORITY.—Not later than March 31, 
2018, the Secretary of Defense shall designate a mili-
tary department or Defense Agency with acquisition 
authority with respect to— 
(A) the capability to defend the homeland 
from cruise missiles; and 
(B) left-of-launch ballistic missile defeat ca-
pability. 
(2) VALIDATION.—In making such designation 
under paragraph (1), the Secretary shall include a 
description of the manner in which the military re-
quirements for such capabilities will be validated. 
SEC. 1653. IRON DOME SHORT-RANGE ROCKET DEFENSE 
SYSTEM AND ISRAELI COOPERATIVE MISSILE 
DEFENSE PROGRAM CODEVELOPMENT AND 
COPRODUCTION. 
(a) IRON DOME SHORT-RANGE ROCKET DEFENSE 
SYSTEM.— 
(1) AVAILABILITY OF FUNDS.—Of the funds au-
thorized to be appropriated by section 101 for pro-
curement, Defense-wide, and available for the Missile 
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Defense Agency, not more than $62,000,000 may be 
provided to the Government of Israel to procure 
Tamir interceptors for the Iron Dome short-range 
rocket defense system, as specified in the funding table 
in division D, through coproduction of such intercep-
tors in the United States by industry of the United 
States. 
(2) CONDITIONS.— 
(A) 
AGREEMENT.—Funds 
described 
in 
paragraph (1) for the Iron Dome short-range 
rocket defense program shall be available subject 
to the terms and conditions in the Agreement Be-
tween the Department of Defense of the United 
States of America and the Ministry of Defense of 
the State of Israel Concerning Iron Dome De-
fense System Procurement, signed on March 5, 
2014, subject to an amended bilateral inter-
national agreement for coproduction for Tamir 
interceptors. In negotiations by the Missile De-
fense Agency and the Missile Defense Organiza-
tion of the Government of Israel regarding such 
production, the goal of the United States is to 
maximize opportunities for coproduction of the 
Tamir interceptors described in paragraph (1) 
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in the United States by industry of the United 
States. 
(B) CERTIFICATION.—Not later than 30 
days prior to the initial obligation of funds de-
scribed in paragraph (1), the Director of the 
Missile Defense Agency and the Under Secretary 
of Defense for Acquisition, Technology, and Lo-
gistics shall jointly submit to the appropriate 
congressional committees— 
(i) a certification that the bilateral 
international agreement specified in sub-
paragraph (A) is being implemented as pro-
vided in such bilateral international agree-
ment; and 
(ii) an assessment detailing any risks 
relating to the implementation of such bilat-
eral international agreement. 
(b) COOPERATIVE MISSILE DEFENSE PROGRAM CODE-
VELOPMENT AND COPRODUCTION.— 
(1) IN GENERAL.—Subject to paragraph (2), of 
the funds authorized to be appropriated for fiscal year 
2017 for procurement, Defense-wide, and available for 
the Missile Defense Agency— 
(A) not more than $150,000,000 may be 
provided to the Government of Israel to procure 
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the David’s Sling Weapon System, including for 
coproduction of parts and components in the 
United States by United States industry; and 
(B) not more than $120,000,000 may be 
provided to the Government of Israel for the 
Arrow 3 Upper Tier Interceptor Program, in-
cluding for coproduction of parts and compo-
nents in the United States by United States in-
dustry. 
(2) CERTIFICATION.— 
(A) CRITERIA.—Except as provided by 
paragraph (3), the Under Secretary of Defense 
for Acquisition, Technology, and Logistics shall 
submit to the appropriate congressional commit-
tees a certification that— 
(i) the Government of Israel has dem-
onstrated the successful completion of the 
knowledge points, technical milestones, and 
production readiness reviews required by 
the research, development, and technology 
agreements for the David’s Sling Weapon 
System and the Arrow 3 Upper Tier Devel-
opment Program, respectively; 
(ii) funds specified in subparagraphs 
(A) and (B) of paragraph (1) will be pro-
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vided on the basis of a one-for-one cash 
match made by Israel for such respective 
systems or in another matching amount 
that otherwise meets best efforts (as mutu-
ally agreed to by the United States and 
Israel); 
(iii) the United States has entered into 
a bilateral international agreement with 
Israel that establishes, with respect to the 
use of such funds— 
(I) in accordance with clause (iv), 
the terms of coproduction of parts and 
components of such respective systems 
on the basis of the greatest practicable 
coproduction of parts, components, and 
all-up rounds (if appropriate) by 
United States industry and minimizes 
nonrecurring 
engineering 
and 
facilitization expenses to the costs need-
ed for coproduction; 
(II) complete transparency on the 
requirement of Israel for the number of 
interceptors and batteries of such re-
spective systems that will be procured, 
including with respect to the procure-
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ment plans, acquisition strategy, and 
funding profiles of Israel; 
(III) technical milestones for co-
production of parts and components 
and procurement of such respective sys-
tems; and 
(IV) joint approval processes for 
third-party sales of such respective sys-
tems and the components of such re-
spective systems; 
(iv) the level of coproduction described 
in clause (iii)(I) for the Arrow 3 and Da-
vid’s Sling Weapon System is not less than 
50 percent; and 
(v) such funds may not be obligated or 
expended to cover costs related to any 
delays, including delays with respect to ex-
changing technical data or specifications. 
(B) NUMBER.—In carrying out subpara-
graph (A), the Under Secretary may submit— 
(i) one certification covering both the 
David’s Sling Weapon System and the 
Arrow 3 Upper Tier Interceptor Program; 
or 
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(ii) separate certifications for each 
such respective system. 
(C) TIMING.—The Under Secretary shall 
submit to the congressional defense committees 
the certification under subparagraph (A) by not 
later than 60 days before the funds specified in 
paragraph (1) for the respective system covered 
by the certification are provided to the Govern-
ment of Israel. 
(3) WAIVER.—The Under Secretary may waive 
the certification required by paragraph (2) if the 
Under Secretary certifies to the appropriate congres-
sional committees that the Under Secretary has re-
ceived sufficient data from the Government of Israel 
to demonstrate— 
(A) the funds specified in subparagraphs 
(A) and (B) of paragraph (1) are provided to 
Israel solely for funding the procurement of long- 
lead components in accordance with a produc-
tion plan, including a funding profile detailing 
Israeli contributions for production, including 
long-lead production, of either David’s Sling 
Weapon System or the Arrow 3 Upper Tier In-
terceptor Program; 
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(B) such long-lead components have success-
fully completed knowledge points, technical mile-
stones, and production readiness reviews; and 
(C) the long-lead procurement will be con-
ducted in a manner that maximizes coproduc-
tion in the United States without incurring ad-
ditional nonrecurring engineering activity or 
cost. 
(c) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means the following: 
(1) The congressional defense committees. 
(2) The Committee on Foreign Affairs of the 
House of Representatives and the Committee on For-
eign Relations of the Senate. 
SEC. 1654. MAXIMIZING AEGIS ASHORE CAPABILITY. 
(a) ANTI-AIR
WARFARE
CAPABILITY
OF
AEGIS 
ASHORE SITES.— 
(1) EVALUATION.—The Secretary of Defense shall 
conduct a complete evaluation of the optimal anti-air 
warfare capability— 
(A) for each current Aegis Ashore site by 
not later than 180 days after the date of the en-
actment of this Act; and 
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(B) as part of any future deployment by the 
United States of an Aegis Ashore site after the 
date of such enactment. 
(2) ASSESSMENTS INCLUDED.—Each evaluation 
under paragraph (1) shall include an assessment of 
the potential deployment of enhanced sea sparrow 
missiles, standard missile block 2 missiles, standard 
missile block 6 missiles, or the SeaRAM missile sys-
tem. 
(3) CONSISTENCY WITH ANNEX.—The Secretary 
shall carry out this subsection consistent with any 
classified annex accompanying this Act. 
(b) AEGIS ASHORE CAPABILITY EVALUATION.—Not 
later than 120 days after the date of the enactment of this 
Act, the Secretary of Defense and the Chairman of the Joint 
Chiefs of Staff shall jointly submit to the congressional de-
fense committees an evaluation of each of the following: 
(1) The ballistic missile and air threat against 
the continental United States and the efficacy (in-
cluding with respect to cost, ideal and optimal de-
ployment locations, and potential deployment sched-
ule) of deploying one or more Aegis Ashore sites and 
Aegis Ashore components for the ballistic and cruise 
missile defense of the continental United States. 
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(2) The ballistic missile and air threat against 
the Armed Forces on Guam and the efficacy (includ-
ing with respect to cost and schedule) of deploying an 
Aegis Ashore site on Guam. 
(c) AEGIS ASHORE SITE ON THE PACIFIC MISSILE 
RANGE FACILITY.— 
(1) LIMITATION.—The Secretary of Defense may 
not reduce the manning levels or test capability, as 
such levels and capability existed on January 1, 
2015, of the Aegis Ashore site at the Pacific Missile 
Range Facility in Hawaii, including by putting such 
site into a ‘‘cold’’ or ‘‘stand by’’ status. 
(2) ENVIRONMENTAL IMPACT STATEMENT.— 
(A) Not later than 60 days after the date on 
which the Director of the Missile Defense Agency 
submits to the congressional defense committees 
the report under section 1689(b)(2) of the Na-
tional Defense Authorization Act for Fiscal Year 
2016 (Public Law 114–92; 129 Stat. 1144), the 
Director shall notify such committees on whether 
the preferred alternative for fielding a medium 
range ballistic missile defense sensor for the de-
fense of Hawaii identified by such report would 
require an update to the environmental impact 
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statement required for constructing the Aegis 
Ashore site at the Pacific Missile Range Facility. 
(B) If the Director determines that an up-
dated environmental impact statement, a new 
environmental impact statement, or another ac-
tion is required or recommended pursuant to the 
National Environmental Policy Act of 1969 (42 
U.S.C. et seq.), the Director shall commence such 
action by not later than 60 days after the date 
on which the Director makes the notification 
under subparagraph (A). 
(3) EVALUATION.—Not later than 60 days after 
the date of the enactment of this Act, the Secretary of 
Defense and the Chairman of the Joint Chiefs of Staff 
shall jointly submit to the congressional defense com-
mittees an evaluation of the ballistic missile and air 
threat against Hawaii (including with respect to 
threats to the Armed Forces and installations located 
in Hawaii) and the efficacy (including with respect 
to cost and potential alternatives) of— 
(A) making the Aegis Ashore site at the Pa-
cific Missile Range Facility operational; 
(B) deploying the preferred alternative for 
fielding a medium range ballistic missile defense 
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sensor for the defense of Hawaii described in 
paragraph (2)(A); and 
(C) any other alternative the Secretary and 
the Chairman determine appropriate. 
(d) FORMS.—The evaluations submitted under sub-
sections (b) and (c)(3) shall each be submitted in unclassi-
fied form, but may each include a classified annex. 
SEC. 1655. TECHNICAL AUTHORITY FOR INTEGRATED AIR 
AND MISSILE DEFENSE ACTIVITIES AND PRO-
GRAMS. 
(a) AUTHORITY.— 
(1) IN GENERAL.—The Director of the Missile 
Defense Agency is the technical authority of the De-
partment of Defense for integrated air and missile de-
fense activities and programs, including joint engi-
neering and integration efforts for such activities and 
programs, including with respect to defining and con-
trolling the interfaces of such activities and programs 
and the allocation of technical requirements for such 
activities and programs. 
(2) DETAILEES.— 
(A) In carrying out the technical authority 
under paragraph (1), the Director may seek to 
have staff detailed to the Missile Defense Agency 
from the Joint Functional Component Command 
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for Integrated Missile Defense and the Joint In-
tegrated Air and Missile Defense Organization 
in a number the Director determines necessary 
in accordance with subparagraph (B). 
(B) In detailing staff under subparagraph 
(A) to carry out the technical authority under 
paragraph (1), the total number of staff, includ-
ing detailees, of the Missile Defense Agency who 
carry out such authority may not exceed the 
number that is twice the number of such staff 
carrying out such authority as of January 1, 
2016. 
(b) ASSESSMENTS AND PLANS.— 
(1) BIENNIAL SUBMISSION.—Not later than Jan-
uary 31, 2017, and biennially thereafter through 
2021, the Director shall submit to the congressional 
defense committees an assessment of the state of inte-
gration and interoperability of the integrated air and 
missile defense capabilities of the Department of De-
fense. 
(2) ELEMENTS.—Each assessment under para-
graph (1) shall include the following: 
(A) Identification of any gaps in the inte-
gration and interoperability of the integrated air 
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and missile defense capabilities of the Depart-
ment. 
(B) A description of the options to improve 
such capabilities and remediate such gaps. 
(C) A plan to carry out such improvements 
and remediations, including milestones and costs 
for such plan. 
(3) FORM.—Each assessment under paragraph 
(1) shall be submitted in classified form unless the Di-
rector determines that submitting such assessment in 
unclassified form is useful and expedient. 
SEC. 1656. DEVELOPMENT AND RESEARCH OF NON-TERRES-
TRIAL MISSILE DEFENSE LAYER. 
(a) DEVELOPMENT.— 
(1) IN GENERAL.—Not later than 30 days after 
the date of the enactment of this Act, the Director of 
the Missile Defense Agency, with the support of feder-
ally funded research and development centers with 
subject matter expertise, shall commence the planning 
for concept definition, design, research, development, 
engineering evaluation, and test of a space-based bal-
listic missile intercept and defeat layer to the ballistic 
missile defense system that— 
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(A) shall provide defense options to ballistic 
missiles and re-entry vehicles, independent of ad-
versary country size and threat trajectory; and 
(B) may provide a boost-phase missile de-
fense capability, as well as additional defensive 
options against direct ascent anti-satellite weap-
ons, hypersonic boost glide vehicles, and maneu-
vering re-entry vehicles. 
(2) ACTIVITIES.—The planning activities author-
ized under paragraph (1) shall include, at a min-
imum, the following: 
(A) The initiation of formal steps for poten-
tial integration into the ballistic missile defense 
system architecture. 
(B) Mature planning for early proof of con-
cept component demonstrations. 
(C) Draft operation concepts in the context 
of a multi-layer architecture. 
(D) Identification of proof of concept vendor 
sources for demo components and subassemblies. 
(E) The development of multi-year tech-
nology and risk reduction investment plan. 
(F) The commencement of the development 
of a proof of concept master program phasing 
schedule. 
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(G) Identification of proof of concept long 
lead items. 
(H) Initiation of requests for proposals 
from industry with significant commercial, civil, 
and national security space experience, includ-
ing for space launch services. 
(I) Mature options for an aggressive but 
low-risk acquisition strategy. 
(b) SPACE TEST BED.—Not later than 60 days after 
the date of the enactment of this Act, the Director shall com-
mence planning for research, development, test, and evalua-
tion activities with respect to a space test bed for a missile 
interceptor capability. 
(c) BUDGET SUBMISSIONS.—The Director shall submit 
with the budget of the President submitted to Congress 
under section 1105(a) of title 31, United States Code, for 
fiscal year 2018 a detailed budget and development plan, 
irrespective of planned budgetary total obligation authority, 
for the activities described in subsections (a) and (b), as-
suming initial demonstration, on-orbit, of such the capa-
bilities described in such subsections by 2025. 
SEC. 1657. HYPERSONIC BOOST GLIDE VEHICLE DEFENSE. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Director of 
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the Missile Defense Agency shall establish a program 
of record in the ballistic missile defense system to de-
velop and field a defensive system to defeat hypersonic 
boost-glide and maneuvering ballistic missiles. Such 
defense system may be a new system, a modification 
of an existing system, or developed by integrating ex-
isting systems. 
(2) CODEVELOPMENT.— In developing the pro-
gram of record for the defensive system under para-
graph (1), the Director shall consider opportunities 
for codevelopment, including through financial sup-
port, with allies and partners of the United States. 
(b) LIMITATION.—Of the funds authorized to be appro-
priated by this Act or otherwise made available for fiscal 
year 2017 for the headquarters operations of the Under Sec-
retary of Defense for Policy and the headquarters operations 
of the Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics, $25,000,000 may not be obligated or 
expended for each such headquarters operations until— 
(1) the Director certifies to the congressional de-
fense committees that the Director has established the 
program of record under paragraph (1) of subsection 
(a), including a discussion of— 
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(A) the options for codevelopment considered 
by the Director under paragraph (2) of such sub-
section; 
(B) such options the Director has assessed; 
and 
(C) such options the Director recommends 
be pursued in the program of record; and 
(2) the Chairman of the Joint Chiefs of Staff 
submits to the congressional defense committees a re-
port on the military capability or capabilities and 
capability gaps relating to the threat posed by 
hypersonic boost-glide and maneuvering ballistic mis-
siles to the United States, the forces of the United 
States, and the allies of the United States; and 
(3) a period of 30 days has elapsed following the 
date on which the congressional defense committees 
has received both the certification and the report. 
(c) REPORT ON MTCR.—Not later than 120 days after 
the date of the enactment of this Act, the Secretary of De-
fense, with the concurrence of the Secretary of State, shall 
submit to the congressional defense committees and the 
Committee on Foreign Relations of the Senate and the Com-
mittee on Foreign Affairs of the House of Representatives 
a report on the implications for the Missile Technology Con-
trol Regime regarding the development of a defensive sys-
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tem, including with respect to partnering with allies and 
partners of the United States, to counter hypersonic boost- 
glide and maneuvering ballistic missiles. 
(d) PLAN.—Not later than 30 days after the date on 
which the budget of the President for fiscal year 2018 is 
submitted to Congress under section 1105 of title 31, Unites 
States Code, the Director shall submit to the congressional 
defense committees a plan to field the defensive system 
under paragraph (1) of subsection (a) by 2021, including— 
(1) a schedule of required ground, flight, and 
intercept tests; and 
(2) the estimated budget for such plan, including 
a budget with codevelopment described in paragraph 
(2) of such subsection and a budget without such code-
velopment, required for each year beginning with fis-
cal year 2018. 
SEC. 1658. LIMITATION ON AVAILABILITY OF FUNDS FOR 
PATRIOT LOWER TIER AIR AND MISSILE DE-
FENSE CAPABILITY OF THE ARMY. 
Of the funds authorized to be appropriated by this Act 
or otherwise made available for fiscal year 2017 for the Pa-
triot lower tier air and missile defense capability of the 
Army, not more than 50 percent may be obligated or ex-
pended until each of the following occurs: 
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(1) The Director of the Missile Defense Agency 
certifies to the congressional defense committees that 
such capability, upon the completion of the mod-
ernization process addressed by the analysis of alter-
natives regarding such capability, will be fully inter-
operable with the ballistic missile defense system and 
other air and missile defense capabilities deployed 
and planned to be deployed by the United States. 
(2) The Chairman of the Joint Chiefs of Staff 
certifies to the congressional defense committees that 
such capability, upon the completion of the mod-
ernization process addressed by the analysis of alter-
natives regarding such capability, will meet— 
(A) the desired attributes for modularity 
sought by the geographic combatant commands; 
and 
(B) the validated and objective warfighter 
requirements for air and missile defense capa-
bility. 
(3) The Chief of Staff of the Army, in coordina-
tion with the Secretary of the Army, submits to the 
congressional defense committees— 
(A) a determination as to whether the re-
quirements of the lower tier air and missile de-
fense program are appropriate for acquisition 
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through the Army Rapid Capabilities Office, and 
if the determination is that such requirements 
are not so appropriate, an evaluation of why; 
(B) the terms of the competition planned for 
the lower tier air and missile defense program to 
ensure fair competition for all competitors; and 
(C) either— 
(i) certification that— 
(I) the requirements of the lower 
tier air and missile defense program 
can only be met through a multi-year 
development and acquisition program, 
rather than through more expedient 
modification 
of 
existing 
or 
dem-
onstrated capabilities of the Depart-
ment of Defense; and 
(II) the lower tier air and missile 
defense acquisition program as de-
signed as of the date of the certification 
will provide the most rapid deployment 
of a modernized capability to the 
warfighter at reasonable risk levels (as 
compared to systems with similar 
amounts of complexity and techno-
logical readiness); or 
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(ii) a revised acquisition strategy for 
the lower tier air and missile defense acqui-
sition program, including a schedule to 
carry out such strategy. 
(4) If the Chief of Staff of the Army submits the 
revised 
acquisition 
strategy 
under 
paragraph 
(3)(C)(ii), a period of 30 days has elapsed following 
the date of such submission. 
SEC. 1659. LIMITATION ON AVAILABILITY OF FUNDS FOR 
CONVENTIONAL 
PROMPT 
GLOBAL 
STRIKE 
WEAPONS SYSTEM. 
Of the funds authorized to be appropriated by this Act 
or otherwise made available for fiscal year 2017 for re-
search, development, test, and evaluation, Defense-wide, for 
the conventional prompt global strike weapons system, not 
more than 75 percent may be obligated or expended until 
the date on which the Chairman of the Joint Chiefs of Staff, 
in consultation with the Commander of the United States 
European Command, the Commander of the United States 
Pacific Command, and the Commander of the United States 
Strategic Command, submits to the congressional defense 
committees a report on— 
(1) whether there are warfighter requirements or 
integrated priorities list submitted needs for a limited 
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operational conventional prompt strike capability; 
and 
(2) whether the program plan and schedule pro-
posed by the program office in the Office of the Under 
Secretary of Defense for Acquisition, Technology, and 
Logistics supports such requirements and integrated 
priorities lists submissions. 
SEC. 1660. PILOT PROGRAM ON LOSS OF UNCLASSIFIED, 
CONTROLLED TECHNICAL INFORMATION. 
(a) PILOT PROGRAM.—Beginning not later than 90 
days after the date of the enactment of this Act, the Director 
of the Missile Defense Agency shall carry out a pilot pro-
gram to implement improvements to the data protection op-
tions in the programs of the Missile Defense Agency (includ-
ing the contractors of the Agency), particularly with respect 
to unclassified, controlled technical information and con-
trolled unclassified information. 
(b) PRIORITY.—In carrying out the pilot program 
under subsection (a), the Director shall give priority to im-
plementing data protection options that are used by the pri-
vate sector and have been proven successful. 
(c) DURATION.—The Director shall carry out the pilot 
program under subsection (a) for not more than a 5-year 
period. 
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(d) NOTIFICATION.—Not later than 30 days before the 
date on which the Director commences the pilot program 
under subsection (a), the Director shall notify the congres-
sional defense committees, the Committee on Oversight and 
Government Reform of the House of Representatives, and 
the Committee on Homeland Security and Government Af-
fairs of the Senate of— 
(1) the data protection options that the Director 
is considering to implement under the pilot program 
and the potential costs of such options; and 
(2) such option that is the preferred option of the 
Director. 
(e) DATA PROTECTION OPTIONS.—In this section, the 
term ‘‘data protection options’’ means actions to improve 
processes, practices, and systems that relate to the safe-
guarding, hygiene, and data protection of information. 
SEC. 1661. REVIEW OF MISSILE DEFENSE AGENCY BUDGET 
SUBMISSIONS 
FOR 
GROUND-BASED 
MID-
COURSE DEFENSE AND EVALUATION OF AL-
TERNATIVE 
GROUND-BASED 
INTERCEPTOR 
DEPLOYMENTS. 
(a) BUDGET SUFFICIENCY.— 
(1) REPORT.—Not later than 180 days after the 
date of the enactment of this Act, the Director of Cost 
Assessment and Program Evaluation shall submit to 
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the congressional defense committees a report on the 
ground-based midcourse defense system. 
(2) ELEMENTS.—The report under paragraph 
(1) shall include an evaluation of each of the fol-
lowing: 
(A) The modernization requirements for the 
ground-based midcourse system, including all 
command and control, ground systems, sensors 
and sensor interfaces, boosters and kill vehicles, 
and integration of known future systems and 
components. 
(B) The obsolescence of such systems and 
components. 
(C) The industrial base requirements relat-
ing to the ground-based midcourse system. 
(D) The extent to which the estimated levels 
of annual funding included in the most recent 
budget and the future-years defense program sub-
mitted under section 221 of this title fully fund 
the requirements under clause (i). 
(3) UPDATES.—Not later than 30 days after the 
date on which each budget is submitted through Janu-
ary 31, 2021, the Director shall submit to the congres-
sional defense committees an update to the report 
under paragraph (1). 
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(4) CERTIFICATION.—Not later than 60 days 
after the date on which each budget is submitted 
through January 31, 2021, the Commander of the 
United States Northern Command shall certify to the 
congressional defense committees that the most recent 
defense budget materials include a sufficient level of 
funding for the ground-based midcourse defense sys-
tem to modernize the system to remain paced ahead 
of the developing limited ballistic missile threat to the 
homeland, including from an accidental or unauthor-
ized ballistic missile attack. 
(b) EVALUATION OF TRANSPORTABLE GROUND-BASED 
INTERCEPTOR.—Not later than 180 days after the date of 
the enactment of this Act, the Director of the Missile Defense 
Agency shall submit to the congressional defense committees 
a report on transportable ground-based interceptors. Such 
report shall detail the views of the Director regarding— 
(1) the cost that is unconstrained by current pro-
jected budget levels for the Missile Defense Agency (in-
cluding a detailed program development production 
and deployment cost and schedule for the earliest tech-
nically possible deployment), the associated manning, 
and the comparative cost (including as compared to 
developing a fixed ground-based interceptor site), 
technical readiness, and feasibility of a transportable 
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ground-based interceptor as a means to deploy addi-
tional ground-based interceptors for the defense of the 
United States and the operational value of a trans-
portable ground-based interceptor for the defense of 
the homeland against a limited ballistic missile at-
tack, including from accidental or unauthorized bal-
listic missile launch; 
(2) the type and number of flight and or inter-
cept tests that would be required to validate the capa-
bility and compatibility of a transportable ground- 
based interceptor in the ballistic missile defense sys-
tem; 
(3) the enabling capabilities, and the cost of such 
capabilities, to support such a system; 
(4) any safety consideration of a transportable 
ground-based interceptor; and 
(5) other matters that the Director determines 
pertinent to such a system. 
(c) FORM.—The report submitted under subsection (b) 
shall be submitted in unclassified form, but may include 
a classified annex. 
(d) DEFINITIONS.—In this section, the terms ‘‘budget’’ 
and ‘‘defense budget materials’’ have the meanings given 
those terms in section 231 of title 10, United States Code. 
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SEC. 1662. DECLARATORY POLICY, CONCEPT OF OPER-
ATIONS, AND EMPLOYMENT GUIDELINES FOR 
LEFT-OF-LAUNCH CAPABILITY. 
Not later than 120 days after the date of the enactment 
of this Act, the Secretary of Defense and the Chairman of 
the Joint Chiefs of Staff shall jointly submit to the congres-
sional defense committees the following: 
(1) Both the classified and unclassified declara-
tory policy of the United States regarding the use of 
the left-of-launch capability of the United States 
against potential targets and how the Secretary and 
the Chairman intend to ensure that such capability 
is a deterrent to attacks by adversaries. 
(2) Both the classified and unclassified concept 
of operations for the use of such capability across and 
between the combatant commands. 
(3) Both the classified and unclassified employ-
ment strategy, plans, and options for such capability. 
SEC. 1663. PROCUREMENT OF MEDIUM-RANGE DISCRIMINA-
TION RADAR TO IMPROVE HOMELAND MIS-
SILE DEFENSE. 
(a) The Director of the Missile Defense Agency shall 
issue a request for proposals for such radar by not later 
than October 1, 2017. 
(b) The Director shall plan to procure a medium-range 
discrimination radar or equivalent sensor for a location the 
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Director determines will improve homeland missile defense 
for the defense of Hawaii from the limited ballistic missile 
threat (including accidental or unauthorized launch) and 
plan for such radar to be fielded by not later than December 
31, 2021. 
SEC. 1664. SEMIANNUAL NOTIFICATIONS ON MISSILE DE-
FENSE TESTS AND COSTS. 
(a) NOTIFICATIONS.—Not less than once every 180-day 
period beginning 90 days after the date of the enactment 
of this Act and ending on January 31, 2021, the Director 
of the Missile Defense Agency shall submit to the congres-
sional defense committees a notification on— 
(1) the outcome of each planned flight test, in-
cluding intercept tests, occurring during the period 
covered by the notification; and 
(2) flight tests, including intercept tests, planned 
to occur after the date of the notification. 
(b) ELEMENTS.—Each notification shall include the 
following: 
(1) With respect to each test described in sub-
section (a)(1)— 
(A) the cost; 
(B) any changes made to the scope or objec-
tives of the test, or future tests, and an expla-
nation for such changes; 
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(C) in the event of a failure of the test or 
a decision to delay or cancel the test— 
(i) the reasons such test did not succeed 
or occur; 
(ii) the funds expended on such at-
tempted test; and 
(iii) in the case of a test failure or 
cancelled test that is the result of contractor 
performance, the contractor liability, if ap-
propriate, as compared to the cost of such 
test and potential retest; and 
(D) the plan to conduct a retest, if nec-
essary, and an estimate of the cost of such retest. 
(2) With respect to each test described in sub-
section (a)(2)— 
(A) any changes made to the scope of the 
test; 
(B) whether the test was to occur earlier but 
was delayed; and 
(C) an explanation for any such changes or 
delays. 
(3) The status of any open failure review boards 
or any failure review boards completed during the pe-
riod covered by the notification. 
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(c) FORM.—Each notification submitted under sub-
section (a) shall be submitted in unclassified form, but may 
include a classified annex. 
SEC. 1665. NATIONAL MISSILE DEFENSE POLICY. 
(a) POLICY.—It is the policy of the United States to 
maintain and improve a robust layered missile defense sys-
tem capable of defending the territory of the United States, 
allies, deployed forces, and capabilities against the devel-
oping and increasingly complex ballistic missile threat with 
funding subject to the annual authorization of appropria-
tions and the annual appropriation of funds for National 
Missile Defense. 
(b) CONFORMING REPEAL.—Section 2 of the National 
Missile Defense Act of 1999 (Public Law 106–38; 10 U.S.C. 
2431 note) is repealed. 
SEC. 1666. SENSE OF CONGRESS ON INITIAL OPERATING 
CAPABILITY 
OF 
PHASE 
OF 
EUROPEAN 
PHASED ADAPTIVE APPROACH TO MISSILE 
DEFENSE. 
(a) FINDINGS.—Congress finds the following: 
(1) President Obama, during his announcement 
of the European Phased Adaptive Approach on Sep-
tember 17, 2009, stated, ‘‘This approach is based on 
an assessment of the Iranian missile threat,’’ and 
‘‘the best way to responsibly advance our security and 
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the security of our allies is to deploy a missile defense 
system that best responds to the threats we face and 
that utilizes technology that is both proven and cost- 
effective.’’. 
(2) The 2010 Ballistic Missile Defense review 
stated that ‘‘The [European] Phased Adaptive Ap-
proach utilizes existing and proven capabilities to 
meet current threats and then will improve upon 
these capabilities over time by integrating new tech-
nology.’’. 
(3) Secretary of Defense Leon Panetta, during a 
speech in Brussels on October 5, 2011, stated, ‘‘The 
United States is fully committed to building a missile 
defense capability for the full coverage and protection 
of all our NATO European populations, their terri-
tory and their forces against the growing threat posed 
by ballistic missiles.’’. 
(4) Secretary of Defense Chuck Hagel, during a 
press conference on March 15, 2013, stated, ‘‘The mis-
sile deployments the United States is making in 
phases one through three of the European Phased 
Adaptive Approach, including sites in Romania and 
Poland, will still be able to provide coverage of all 
European NATO territory as planned by 2018.’’. 
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(b) SENSE OF CONGRESS.—It is the sense of Congress 
that— 
(1) the United States is committed to the defense 
of deployed members of the Armed Forces of the 
United States and to the defense of the European al-
lies of the Unites States by increasing the ballistic 
missile defense capability of the North Atlantic Trea-
ty Organization (in this section referred to as 
‘‘NATO’’); 
(2) phase 2 of the European Phased Adaptive 
Approach will provide NATO with a substantial in-
crease in ballistic missile defense capability since 
NATO declared Interim Ballistic Missile Defense Ca-
pability at the Chicago Summit in 2012, and such 
phase consists of— 
(A) Aegis Ashore in Romania; 
(B) four Aegis ballistic missile defense capa-
ble ships homeported at Rota, Spain; and 
(C) a more capable SM–3 interceptor; 
(3) NATO is moving forward with the mod-
ernization of the defense capabilities of NATO that is 
responsive to 21st century threats to the territory and 
populations of member states of NATO; 
(4) the member states of NATO recognize the im-
portance of this contribution, which sends a clear sig-
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nal that NATO will not allow potential adversaries to 
threaten the use of ballistic missile strikes to coerce 
NATO or deter NATO from responding to aggression 
against the interests of NATO; and 
(5) phase 2 of the European Phased Adaptive 
Approach is ready for 24-hour-a-day, seven-day-a- 
week operation, with proven military systems and 
command and control capability, and should be so de-
clared at the July 2016 NATO Summit in Warsaw, 
Poland. 
Subtitle F—Other Matters 
SEC. 1671. PROTECTION OF CERTAIN FACILITIES AND AS-
SETS FROM UNMANNED AIRCRAFT. 
(a) IN GENERAL.—Chapter 3 of title 10, United States 
Code, as amended by section 1255, is further amended by 
adding at the end the following new section: 
‘‘§ 130j. Protection of certain facilities and assets from 
unmanned aircraft 
‘‘(a) AUTHORITY.—The Secretary of Defense may take, 
and may authorize the armed forces to take, such actions 
described in subsection (b)(1) that are necessary to mitigate 
the threat of an unmanned aircraft system or unmanned 
aircraft that poses an imminent threat (as defined by the 
Secretary of Defense, in coordination with the Secretary of 
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Transportation) to the safety or security of a covered facil-
ity or asset. 
‘‘(b) ACTIONS DESCRIBED.—(1) The actions described 
in this paragraph are the following: 
‘‘(A) Disrupt control of the unmanned aircraft 
system or unmanned aircraft. 
‘‘(B) Seize and exercise control of the unmanned 
aircraft system or unmanned aircraft. 
‘‘(C) Seize or otherwise confiscate the unmanned 
aircraft system or unmanned aircraft. 
‘‘(D) Use reasonable force to disable or destroy 
the unmanned aircraft system or unmanned aircraft. 
‘‘(2) The Secretary of Defense shall develop the actions 
described in paragraph (1) in coordination with the Sec-
retary of Transportation, consistent with the protection of 
information regarding sensitive defense capabilities. 
‘‘(c) FORFEITURE.—(1) Any unmanned aircraft sys-
tem or unmanned aircraft described in subsection (a) shall 
be subject to seizure and forfeiture to the United States. 
‘‘(2) The Secretary of Defense may prescribe regula-
tions to establish reasonable exceptions to paragraph (1), 
including in cases where— 
‘‘(A) the operator of the unmanned aircraft sys-
tem or unmanned aircraft obtained the control and 
possession of such system or aircraft illegally; or 
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‘‘(B) the operator of the unmanned aircraft sys-
tem or unmanned aircraft is an employee of a com-
mon carrier acting in manner described in subsection 
(a) without the knowledge of the common carrier. 
‘‘(d) REGULATIONS.—The Secretary of Defense and the 
Secretary of Transportation shall prescribe regulations and 
issue guidance in the respective areas of each Secretary to 
carry out this section. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘covered facility or asset’ means 
any facility or asset that is— 
‘‘(A) identified by the Secretary of Defense 
for purposes of this section; 
‘‘(B) located in the United States (including 
the territories and possessions of the United 
States); and 
‘‘(C) relating to— 
‘‘(i) the nuclear deterrence mission of 
the Department of Defense, including with 
respect to nuclear command and control, in-
tegrated tactical warning and attack assess-
ment, and continuity of government; 
‘‘(ii) the missile defense mission of the 
Department; or 
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‘‘(iii) the national security space mis-
sion of the Department. 
‘‘(2) The terms ‘unmanned aircraft’ and ‘un-
manned aircraft system’ have the meaning given those 
terms in section 331 of the FAA Modernization and 
Reform Act of 2012 (Public Law 112–95; 49 U.S.C. 
40101 note).’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by inserting after 
the item relating to section 130i, as added by section 1255, 
the following new item: 
‘‘130j. Protection of certain facilities and assets from unmanned aircraft.’’. 
SEC. 1672. IMPROVEMENT OF COORDINATION BY DEPART-
MENT OF DEFENSE OF ELECTROMAGNETIC 
SPECTRUM USAGE. 
Not later than December 31, 2016, the Secretary of De-
fense shall submit to the congressional defense committees 
a report evaluating whether establishing an intra-depart-
mental council in the Department of Defense on the use elec-
tromagnetic spectrum by the Department would improve co-
ordination within the Department on— 
(1) the use of such spectrum; 
(2) the acquisition cycle with respect to such 
spectrum; 
(3) training by the Armed Forces, including 
with respect to electronic and cyber warfare; and 
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(4) other purposes the Secretary considers useful. 
TITLE XVII—DEPARTMENT OF 
DEFENSE ACQUISITION AGILITY 
SEC. 1701. MODULAR OPEN SYSTEM APPROACH IN DEVEL-
OPMENT OF MAJOR WEAPON SYSTEMS. 
(a) IN GENERAL.—Part IV of subtitle A of title 10, 
United States Code, is amended by inserting after chapter 
144A the following new chapter: 
‘‘CHAPTER 144B—WEAPON SYSTEMS 
DEVELOPMENT AND RELATED MATTERS 
‘‘Subchapter  
Sec. 
‘‘I. Modular Open System Approach in Development of 
Weapon Systems .......................................................... 2446a 
‘‘II. Development, Prototyping, and Deployment of Weap-
on System Components and Technology ......... 2447a 
‘‘III. Cost, Schedule, and Performance of Major Defense 
Acquisition Programs .............................................. 2448a 
‘‘SUBCHAPTER I—MODULAR OPEN SYSTEM AP-
PROACH IN DEVELOPMENT OF WEAPON SYS-
TEMS 
‘‘Sec. 
‘‘2446a. Requirement for modular open system approach in major defense acquisi-
tion programs; definitions. 
‘‘2446b. Requirement to address modular open system approach in program capa-
bilities development and acquisition weapon system design. 
‘‘2446c. Requirements relating to availability of major system interfaces and sup-
port for modular open system approach. 
‘‘2446d. Requirement to include modular open system approach in Selected Acqui-
sition Reports. 
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‘‘§ 2446a. Requirement for modular open system ap-
proach in major defense acquisition pro-
grams; definitions 
‘‘(a) MODULAR OPEN SYSTEM APPROACH REQUIRE-
MENT.—A major defense acquisition program initiated 
after January 1, 2019, shall be designed and developed, to 
the maximum extent practicable, with a modular open sys-
tem approach to enable incremental development. 
‘‘(b) DEFINITIONS.—In this chapter: 
‘‘(1) The term ‘modular open system approach’ 
means, with respect to a major defense acquisition 
program, an integrated business and technical strat-
egy that— 
‘‘(A) employs a modular design that uses 
major system interfaces between a major system 
platform and a major system component or be-
tween major system components; 
‘‘(B) is subjected to verification to ensure 
major system interfaces comply with, if available 
and suitable, widely supported and consensus- 
based standards; 
‘‘(C) uses a system architecture that allows 
severable major system components at the appro-
priate level to be incrementally added, removed, 
or replaced throughout the life cycle of a major 
system platform to afford opportunities for en-
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hanced competition and innovation while yield-
ing— 
‘‘(i) significant cost savings or avoid-
ance; 
‘‘(ii) schedule reduction; 
‘‘(iii) opportunities for technical up-
grades; 
‘‘(iv) increased interoperability; or 
‘‘(v) 
other 
benefits 
during 
the 
sustainment phase of a major weapon sys-
tem; and 
‘‘(D) complies with the technical data rights 
set forth in section 2320 of this title. 
‘‘(2) The term ‘major system platform’ means the 
highest level structure of a major weapon system that 
is not physically mounted or installed onto a higher 
level structure and on which a major system compo-
nent can be physically mounted or installed. 
‘‘(3) The term ‘major system component’— 
‘‘(A) means a high level subsystem or as-
sembly, including hardware, software, or an in-
tegrated assembly of both, that can be mounted 
or installed on a major system platform through 
well-defined major system interfaces; and 
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‘‘(B) includes a subsystem or assembly that 
is likely to have additional capability require-
ments, is likely to change because of evolving 
technology or threat, is needed for interoper-
ability, facilitates incremental deployment of ca-
pabilities, or is expected to be replaced by an-
other major system component. 
‘‘(4) The term ‘major system interface’ means a 
shared boundary between a major system platform 
and a major system component or between major sys-
tem components, defined by various physical, logical, 
and functional characteristics, such as electrical, me-
chanical, fluidic, optical, radio frequency, data, net-
working, or software elements. 
‘‘(5) The term ‘program capability document’ 
means, with respect to a major defense acquisition 
program, a document that specifies capability re-
quirements for the program, such as a capability de-
velopment document or a capability production docu-
ment. 
‘‘(6) The terms ‘program cost target’ and ‘field-
ing target’ have the meanings provided in section 
2448a(a) of this title. 
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‘‘(7) The term ‘major defense acquisition pro-
gram’ has the meaning provided in section 2430 of 
this title. 
‘‘(8) The term ‘major weapon system’ has the 
meaning provided in section 2379(f) of this title. 
‘‘§ 2446b. Requirement to address modular open sys-
tem approach in program capabilities de-
velopment and acquisition weapon system 
design 
‘‘(a) PROGRAM CAPABILITY DOCUMENT.—A program 
capability document for a major defense acquisition pro-
gram shall identify and characterize— 
‘‘(1) the extent to which requirements for system 
performance are likely to evolve during the life cycle 
of the system because of evolving technology, threat, or 
interoperability needs; and 
‘‘(2) for requirements that are expected to evolve, 
the minimum acceptable capability that is necessary 
for initial operating capability of the major defense 
acquisition program. 
‘‘(b) ANALYSIS OF ALTERNATIVES.—The Director of 
Cost Assessment and Performance Evaluation, in formu-
lating study guidance for analyses of alternatives for major 
defense acquisition programs and performing such analyses 
under section 139a(d)(4) of this title, shall ensure that any 
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such analysis for a major defense acquisition program in-
cludes consideration of evolutionary acquisition, proto-
typing, and a modular open system approach. 
‘‘(c) ACQUISITION STRATEGY.—In the case of a major 
defense acquisition program that uses a modular open sys-
tem approach, the acquisition strategy required under sec-
tion 2431a of this title shall— 
‘‘(1) clearly describe the modular open system 
approach to be used for the program; 
‘‘(2) differentiate between the major system plat-
form and major system components being developed 
under the program, as well as major system compo-
nents developed outside the program that will be inte-
grated into the major defense acquisition program; 
‘‘(3) clearly describe the evolution of major sys-
tem components that are anticipated to be added, re-
moved, or replaced in subsequent increments; 
‘‘(4) identify additional major system compo-
nents that may be added later in the life cycle of the 
major system platform; and 
‘‘(5) clearly describe how intellectual property 
and related issues, such as technical data deliverables, 
that are necessary to support a modular open system 
approach, will be addressed. 
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‘‘(d) REQUEST FOR PROPOSALS.—The milestone deci-
sion authority for a major defense acquisition program that 
uses a modular open system approach shall ensure that a 
request for proposals for the development or production 
phases of the program shall describe the modular open sys-
tem approach and the minimum set of major system compo-
nents that must be included in the design of the major de-
fense acquisition program. 
‘‘(e) MILESTONE B.—A major defense acquisition pro-
gram may not receive Milestone B approval under section 
2366b of this title until the milestone decision authority de-
termines in writing that— 
‘‘(1) in the case of a program that uses a mod-
ular open system approach— 
‘‘(A) the program incorporates clearly de-
fined major system interfaces between the major 
system platform and major system components 
and between major system components; 
‘‘(B) such major system interfaces are con-
sistent with the widely supported and consensus- 
based standards that exist at the time of the 
milestone decision, unless such standards are un-
available or unsuitable for particular major sys-
tem interfaces; and 
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‘‘(C) the Government has arranged to obtain 
appropriate and necessary intellectual property 
rights with respect to such major system inter-
faces upon completion of the development of the 
major system platform; or 
‘‘(2) in the case of a program that does not use 
a modular open system approach, that the use of a 
modular open system approach is not practicable. 
‘‘§ 2446c. Requirements relating to availability of 
major system interfaces and support for 
modular open system approach 
‘‘The Secretary of each military department shall— 
‘‘(1) coordinate with the other military depart-
ments, the defense agencies, defense and other private 
sector entities, national standards-setting organiza-
tions, and, when appropriate, with elements of the in-
telligence community with respect to the specification, 
identification, development, and maintenance of 
major system interfaces and standards for use in 
major system platforms, where practicable; 
‘‘(2) ensure that major system interfaces incor-
porate commercial standards and other widely sup-
ported consensus-based standards that are validated, 
published, and maintained by recognized standards 
organizations to the maximum extent practicable; 
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‘‘(3) ensure that sufficient systems engineering 
and development expertise and resources are available 
to support the use of a modular open system approach 
in requirements development and acquisition program 
planning; 
‘‘(4) ensure that necessary planning, program-
ming, and budgeting resources are provided to speci-
fy, identify, develop, and sustain the modular open 
system approach, associated major system interfaces, 
and any additional program activities necessary to 
sustain innovation and interoperability; and 
‘‘(5) ensure that adequate training in the use of 
a modular open system approach is provided to mem-
bers of the requirements and acquisition workforce. 
‘‘§ 2446d. Requirement to include modular open sys-
tem approach in Selected Acquisition Re-
ports 
‘‘For each major defense acquisition program that re-
ceives Milestone B approval after January 1, 2019, a brief 
summary description of the key elements of the modular 
open system approach or, if a modular open system ap-
proach was not used, the rationale for not using such an 
approach, shall be submitted to the congressional defense 
committees with the first Selected Acquisition Report re-
quired under section 2432 of this title for the program.’’. 
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(b) CLERICAL AMENDMENT.—The table of chapters for 
title 10, United States Code, is amended by adding after 
the item relating to chapter 144A the following new item: 
‘‘144B. Weapon Systems Development and Related Mat-
ters .....................................................................................2446a’’. 
(c) CONFORMING AMENDMENT.—Section 2366b(a)(3) 
of such title is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (K); and 
(2) by inserting after subparagraph (L) the fol-
lowing new subparagraph: 
‘‘(M) the requirements of section 2446b(e) of 
this title are met; and’’. 
(d) EFFECTIVE DATE.—Subchapter I of chapter 144B 
of title 10, United States Code, as added by subsection (a), 
shall take effect on October 1, 2016. 
SEC. 1702. DEVELOPMENT, PROTOTYPING, AND DEPLOY-
MENT OF WEAPON SYSTEM COMPONENTS OR 
TECHNOLOGY. 
(a) IN GENERAL.—Chapter 144B of title 10, United 
States Code, as added by section 1701, is further amended 
by adding at the end the following new subchapter: 
‘‘SUBCHAPTER 
II—DEVELOPMENT, 
PROTO-
TYPING, AND DEPLOYMENT OF WEAPON SYS-
TEM COMPONENTS OR TECHNOLOGY 
‘‘Sec. 
‘‘2447a. Technology development in the acquisition of major weapon systems. 
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‘‘2447b. Weapon system component or technology prototype projects: display of 
budget information. 
‘‘2447c. Weapon system component or technology prototype projects: oversight. 
‘‘2447d. Requirements and limitations for weapon system component or tech-
nology prototype projects. 
‘‘2447e. Mechanisms to speed deployment of successful weapon system component 
or technology prototypes. 
‘‘2447f. Definition of weapon system component. 
‘‘§ 2447a. Technology development in the acquisition 
of major weapon systems 
‘‘Technology shall be developed in a major defense ac-
quisition program that is initiated after January 1, 2019, 
only if the milestone decision authority for the program de-
termines with a high degree of confidence that such develop-
ment will not delay the fielding target of the program. If 
the milestone decision authority does not make such deter-
mination for a major system component being developed 
under the program, the milestone decision authority shall 
ensure that technology related to the major system compo-
nent shall be sufficiently matured separate from the major 
defense acquisition program using the prototyping authori-
ties of this section or other authorities, as appropriate. 
‘‘§ 2447b. Weapon system component or technology pro-
totype projects: display of budget informa-
tion 
‘‘(a) REQUIREMENTS FOR BUDGET DISPLAY.—In the 
defense budget materials for any fiscal year after fiscal year 
2017, the Secretary of Defense shall, with respect to ad-
vanced component development and prototype activities 
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(within the research, development, test, and evaluation 
budget), set forth the amounts requested for each of the fol-
lowing: 
‘‘(1) Acquisition programs of record. 
‘‘(2) Development, prototyping, and experimen-
tation of weapon system components or other tech-
nologies separate from acquisition programs of record. 
‘‘(3) Other budget line items as determined by 
the Secretary of Defense. 
‘‘(b) ADDITIONAL REQUIREMENTS.—For purposes of 
subsection (a)(2), the amounts requested for development, 
prototyping, and experimentation of weapon system compo-
nents or other technologies shall be— 
‘‘(1) structured into either capability, weapon 
system component, or technology portfolios that reflect 
the priority areas for prototype projects; and 
‘‘(2) justified with general descriptions of the 
types of capability areas and technologies being fund-
ed or expected to be funded during the fiscal year con-
cerned. 
‘‘(c) DEFINITIONS.—In this section, the terms ‘budget’ 
and ‘defense budget materials’ have the meaning given those 
terms in section 234 of this title. 
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‘‘§ 2447c. Weapon system component or technology pro-
totype projects: oversight 
‘‘(a) ESTABLISHMENT.—The Secretary of each mili-
tary department shall establish an oversight board or iden-
tify a similar group of senior advisors for managing proto-
type projects for weapon system components and other tech-
nologies and subsystems, including the use of funds for such 
projects, within the military department concerned. 
‘‘(b) MEMBERSHIP.—Each oversight board shall be 
comprised of senior officials with— 
‘‘(1) expertise in requirements; research, develop-
ment, test, and evaluation; acquisition; or other rel-
evant areas within the military department con-
cerned; 
‘‘(2) awareness of technology development activi-
ties and opportunities in the Department of Defense, 
industry, and other sources; and 
‘‘(3) awareness of the component capability re-
quirements of major weapon systems, including sched-
uling and fielding goals for such component capabili-
ties. 
‘‘(c) FUNCTIONS.—The functions of each oversight 
board are as follows: 
‘‘(1) To issue a strategic plan every three years 
that prioritizes the capability and weapon system 
component portfolio areas for conducting prototype 
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projects, based on assessments of high priority 
warfighter needs, capability gaps on existing major 
weapon systems, opportunities to incrementally inte-
grate new components into major weapon systems, 
and technologies that are expected to be sufficiently 
mature to prototype within three years. 
‘‘(2) To annually recommend funding levels for 
weapon system component or technology development 
and prototype projects across capability or weapon 
system component portfolios. 
‘‘(3) To annually recommend to the service ac-
quisition executive of the military department con-
cerned specific weapon system component or tech-
nology development and prototype projects, subject to 
the requirements and limitations in section 2447d of 
this title. 
‘‘(4) To ensure projects are managed by experts 
within the Department of Defense who are knowledge-
able in research, development, test, and evaluation 
and who are aware of opportunities for incremental 
deployment of component capabilities and other tech-
nologies to major weapon systems or directly to sup-
port warfighting capabilities. 
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‘‘(5) To ensure projects are conducted in a man-
ner that allows for appropriate experimentation and 
technology risk. 
‘‘(6) To ensure necessary technical, contracting, 
and financial management resources are available to 
support each project. 
‘‘(7) To submit to the congressional defense com-
mittees a semiannual notification that includes the 
following: 
‘‘(A) A description of each weapon system 
component or technology prototype project initi-
ated during the preceding six months, including 
an explanation of each project and its required 
funding. 
‘‘(B) A description of the results achieved 
from weapon system component prototype and 
technology projects completed and tested during 
the preceding six months. 
‘‘§ 2447d. Requirements and limitations for weapon 
system component or technology prototype 
projects 
‘‘(a) LIMITATION
ON PROTOTYPE PROJECT DURA-
TION.—A prototype project shall be completed within three 
years of its initiation. 
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‘‘(b) MERIT-BASED SELECTION PROCESS.—A proto-
type project shall be selected by the service acquisition exec-
utive of the military department concerned through a merit- 
based selection process that identifies the most promising 
and cost-effective prototypes that address a high priority 
warfighter need and are expected to be successfully dem-
onstrated in a relevant environment. 
‘‘(c) TYPE OF TRANSACTION.—Prototype projects shall 
be funded through contracts, cooperative agreements, or 
other transactions. 
‘‘(d) FUNDING LIMIT.—(1) Each prototype project 
may not exceed a total amount of $10,000,000 (based on 
fiscal year 2017 constant dollars), unless— 
‘‘(A) the Secretary of the military department, 
or the Secretary’s designee, approves a larger amount 
of funding for the project, not to exceed $50,000,000; 
and 
‘‘(B) the Secretary, or the Secretary’s designee, 
submits to the congressional defense committees, with-
in 30 days after approval of such funding for the 
project, a notification that includes— 
‘‘(i) a description of the project; 
‘‘(ii) expected funding for the project; and 
‘‘(iii) a statement of the anticipated out-
come of the project. 
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‘‘(2) The Secretary of Defense may adjust the amounts 
(and the base fiscal year) provided in paragraph (1) on 
the basis of Department of Defense escalation rates. 
‘‘§ 2447e. Mechanisms to speed deployment of success-
ful weapon system component or tech-
nology prototypes 
‘‘(a) SELECTION OF RAPID FIELDING PROJECT FOR 
PRODUCTION.—A weapon system component or technology 
rapid fielding project may be selected by the service acquisi-
tion executive of the military department concerned for a 
follow-on production contract or other transaction without 
the use of competitive procedures, notwithstanding the re-
quirements of section 2304 of this title, if— 
‘‘(1) a rapid fielding project addresses a high 
priority warfighter need; 
‘‘(2) competitive procedures were used for the se-
lection of parties for participation in the rapid field-
ing project; 
‘‘(3) the participants in the project successfully 
completed the project provided for in the transaction; 
and 
‘‘(4) a prototype of the system to be procured in 
the rapid fielding project was demonstrated in a rel-
evant environment. 
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‘‘(b) SPECIAL TRANSFER AUTHORITY.—(1) The Sec-
retary of a military department may transfer funds that 
remain available for obligation in procurement appropria-
tion accounts of the military department to fund the low- 
rate initial production of the rapid fielding project until 
required funding for full-rate production can be submitted 
and approved through the regular budget process of the De-
partment of Defense. 
‘‘(2) The funds transferred under this subsection to 
fund the low-rate initial production of a rapid fielding 
project shall be for a period not to exceed two years, the 
amount for such period may not exceed $50,000,000, and 
the special transfer authority provided in this subsection 
may not be used more than once to fund procurement of 
a particular new or upgraded system. 
‘‘(3) The special transfer authority provided in this 
subsection is in addition to any other transfer authority 
available to the Department of Defense. 
‘‘(c) NOTIFICATION TO CONGRESS.—Within 30 days 
after the service acquisition executive of a military depart-
ment selects a weapon system component or technology 
rapid fielding project for a follow-on production contract 
or other transaction, the service acquisition executive shall 
notify the congressional defense committees of the selection 
and provide a brief description of the rapid fielding project. 
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‘‘§ 2447f. Definition of weapon system component 
‘‘In this subchapter, the term ‘weapon system compo-
nent’ has the meaning given the term ‘major system compo-
nent’ in section 2446a of this title.’’. 
(b) EFFECTIVE DATE.—Subchapter II of chapter 144B 
of title 10, United States Code, as added by subsection (a), 
shall take effect on October 1, 2016. 
SEC. 1703. COST, SCHEDULE, AND PERFORMANCE OF 
MAJOR DEFENSE ACQUISITION PROGRAMS. 
(a) IN GENERAL.—Chapter 144B of title 10, United 
States Code, as added by section 1701, is amended by add-
ing at the end the following new subchapter: 
‘‘SUBCHAPTER III—COST, SCHEDULE, AND PER-
FORMANCE OF MAJOR DEFENSE ACQUISI-
TION PROGRAMS 
‘‘Sec. 
‘‘2448a. Program cost, fielding, and performance goals in planning major defense 
acquisition programs. 
‘‘2448b. Independent technical risk assessments. 
‘‘2448c. Adherence to requirements and thresholds in major defense acquisition 
programs. 
‘‘§ 2448a. Program cost, fielding, and performance 
goals in planning major defense acquisi-
tion programs 
‘‘(a) PROGRAM COST AND FIELDING TARGETS.—(1) 
Before a major defense acquisition program receives Mile-
stone A approval or is otherwise initiated prior to Milestone 
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B, the Secretary of Defense shall ensure, by establishing the 
goals described in paragraph (2), that— 
‘‘(A) the program will be affordable; 
‘‘(B) program planning anticipates evolution of 
capabilities to meet changing threats, technology in-
sertion, and interoperability; and 
‘‘(C) the program will be fielded when needed. 
‘‘(2) The goals described in this paragraph are goals 
for— 
‘‘(A) the program acquisition unit cost (referred 
to in this section as the ‘program cost target’); 
‘‘(B) the date for initial operational capability 
(referred to in this section as the ‘fielding target’); 
and 
‘‘(C) technology maturation, prototyping, and a 
modular open system approach to evolve system capa-
bilities and improve interoperability. 
‘‘(b) CONSIDERATIONS.—In establishing goals under 
subsection (a) for the program, the Secretary of Defense 
shall consider each of the following: 
‘‘(1) The capability needs and timeframe speci-
fied in the initial capabilities document, opportuni-
ties for evolution of capabilities, and minimum ac-
ceptable capability increments. 
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‘‘(2) Resources available to fund the development, 
production, and life cycle of the program, using a 
reasonable estimate of future defense budgets. 
‘‘(3) The number of end items expected to be pro-
cured under the program. 
‘‘(4) Trade-offs among cost, schedule, technical 
risk, and performance objectives identified in the 
analysis of alternatives required under section 2366a 
of this title. 
‘‘(5) The independent cost estimate established 
pursuant to section 2334(a)(6) of this title. 
‘‘(6) The independent technical risk assessment 
conducted or approved under section 2448b of this 
title. 
‘‘(c) DELEGATION.—The responsibilities of the Sec-
retary of Defense in subsection (a) may be delegated only 
to the Deputy Secretary of Defense or the Under Secretary 
of Defense for Acquisition, Technology, and Logistics. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘program acquisition unit cost’ 
has the meaning provided in section 2432(a) of this 
title. 
‘‘(2) The term ‘initial capabilities document’ has 
the meaning provided in section 2366a(d)(2) of this 
title. 
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‘‘§ 2448b. Independent technical risk assessments 
‘‘(a) IN GENERAL.—With respect to a major defense 
acquisition program, the Under Secretary of Defense for Ac-
quisition, Technology, and Logistics shall— 
‘‘(1) before any decision to grant Milestone A ap-
proval for the program pursuant to section 2366a of 
this title, identify critical technologies that need to be 
matured in the program; and 
‘‘(2) before any decision to grant Milestone B ap-
proval for the program pursuant to section 2366b of 
this title, any decision to enter into low-rate initial 
production or full-rate production, or at any other 
time considered appropriate by the Under Secretary, 
conduct or approve an independent technical risk as-
sessment for the program, including the identification 
of any critical technologies that have not been success-
fully demonstrated in a relevant environment. 
‘‘(b) CATEGORIZATION
OF TECHNICAL RISK LEV-
ELS.—The Under Secretary shall issue guidance and a 
framework for categorizing the degree of technical risk in 
a major defense acquisition program. 
‘‘§ 2448c. Adherence to requirements and thresholds in 
major defense acquisition programs 
‘‘(a) CAPABILITIES DETERMINATION.—The Secretary 
of the military department concerned shall ensure that the 
program capability document supporting a Milestone B or 
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subsequent milestone for a major defense acquisition pro-
gram may not be submitted to the Joint Requirements 
Oversight Council for approval until the Chief of the armed 
force concerned determines in writing that the requirements 
in the document are necessary and realistic in relation to 
the program cost and fielding targets established under sec-
tion 2448a(a) of this title. 
‘‘(b) COMPLIANCE WITH TARGETS BEFORE MILE-
STONE B APPROVAL.—A major defense acquisition program 
may not receive Milestone B approval until the milestone 
decision authority for the program determines in writing 
that the estimated program acquisition unit cost and the 
estimated date for initial operational capability for the 
baseline description for the program (established under sec-
tion 2435) do not exceed the program cost and fielding tar-
gets established under section 2448a(a) of this title. If such 
estimated cost is higher than the program cost target or if 
such estimated date is later than the fielding target, the 
milestone decision authority may request that the Secretary 
of Defense increase the program cost target or delay the 
fielding target, as applicable.’’. 
(b) EFFECTIVE DATE.—Subchapter III of chapter 
144B of title 10, United States Code, as added by subsection 
(a), shall apply with respect to major defense acquisition 
programs that reach Milestone A after October 1, 2016. 
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(c) MODIFICATION OF MILESTONE DECISION AUTHOR-
ITY.—Effective October 1, 2016, subsection (d) of section 
2430 of title 10, United States Code, as added by section 
825(a) of the National Defense Authorization Act for Fiscal 
Year 2016 (Public Law 114–92; 129 Stat. 907), is amend-
ed— 
(1) in paragraph (2)(A), by inserting ‘‘subject to 
paragraph (5),’’ before ‘‘the Secretary determines’’; 
and 
(2) by adding at the end the following new para-
graph: 
‘‘(5) The authority of the Secretary of Defense to des-
ignate an alternative milestone decision authority for a 
program with respect to which the Secretary determines 
that the program is addressing a joint requirement, as set 
forth in paragraph (2)(A), shall apply only for a major 
defense acquisition program that reaches Milestone A after 
October 1, 2016, and before October 1, 2019.’’. 
SEC. 1704. TRANSPARENCY IN MAJOR DEFENSE ACQUISI-
TION PROGRAMS. 
(a) REPORTS ON MILESTONE DECISION METRICS.— 
Subchapter III of chapter 144B of title 10, United States 
Code, as added by section 1703, is amended by adding at 
the end the following new section: 
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‘‘§ 2448d. Reports on milestone decision metrics 
‘‘(a) REPORT ON MILESTONE A.—Not later than 15 
days after granting Milestone A approval for a major de-
fense acquisition program, the milestone decision authority 
for the program shall provide to the congressional defense 
committees and, in the case of intelligence or intelligence- 
related activities, the congressional intelligence committees 
a brief summary report that contains the following ele-
ments: 
‘‘(1) The program cost and fielding targets estab-
lished by the Secretary of Defense under section 
2448a(a) of this title. 
‘‘(2) The estimated cost and schedule for the pro-
gram established by the military department con-
cerned, including— 
‘‘(A) the dollar values estimated for the pro-
gram acquisition unit cost and total life-cycle 
cost; and 
‘‘(B) the planned dates for each program 
milestone and initial operational capability. 
‘‘(3) The independent estimated cost for the pro-
gram established pursuant to section 2334(a)(6) of 
this title, and any independent estimated schedule for 
the program, including— 
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‘‘(A) the dollar values estimated for the pro-
gram acquisition unit cost and total life-cycle 
cost; and 
‘‘(B) the planned dates for each program 
milestone and initial operational capability. 
‘‘(4) A summary of the technical risks associated 
with the program, as determined by the military de-
partment concerned, including identification of any 
critical technologies that need to be matured. 
‘‘(5) A summary of the independent technical 
risk assessment conducted or approved under section 
2448b of this title, including identification of any 
critical technologies that need to be matured. 
‘‘(6) A summary of any sufficiency review con-
ducted by the Director of Cost Assessment and Pro-
gram Evaluation of the analysis of alternatives per-
formed for the program (as referred to in section 
2366a(b)(6) of this title). 
‘‘(7) Any other information the milestone deci-
sion authority considers relevant. 
‘‘(b) REPORT ON MILESTONE B.—Not later than 15 
days after granting Milestone B approval for a major de-
fense acquisition program, the milestone decision authority 
for the program shall provide to the congressional defense 
committees and, in the case of intelligence or intelligence- 
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related activities, the congressional intelligence committees 
a brief summary report that contains the following ele-
ments: 
‘‘(1) The program cost and fielding targets estab-
lished by the Secretary of Defense under section 
2448a(a) of this title. 
‘‘(2) The estimated cost and schedule for the pro-
gram established by the military department con-
cerned, including— 
‘‘(A) the dollar values estimated for the pro-
gram acquisition unit cost, average procurement 
unit cost, and total life-cycle cost; and 
‘‘(B) the planned dates for each program 
milestone, initial operational test and evalua-
tion, and initial operational capability. 
‘‘(3) The independent estimated cost for the pro-
gram established pursuant to section 2334(a)(6) of 
this title, and any independent estimated schedule for 
the program, including— 
‘‘(A) the dollar values estimated for the pro-
gram acquisition unit cost, average procurement 
unit cost, and total life-cycle cost; and 
‘‘(B) the planned dates for each program 
milestone, initial operational test and evalua-
tion, and initial operational capability. 
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‘‘(4) A summary of the technical risks associated 
with the program, as determined by the military de-
partment concerned, including identification of any 
critical technologies that have not been successfully 
demonstrated in a relevant environment. 
‘‘(5) A summary of the independent technical 
risk assessment conducted or approved under section 
2448b of this title, including identification of any 
critical technologies that have not been successfully 
demonstrated in a relevant environment. 
‘‘(6) A statement of whether a modular open sys-
tem approach is being used for the program. 
‘‘(7) Any other information the milestone deci-
sion authority considers relevant. 
‘‘(c) REPORT ON MILESTONE C.—Not later than 15 
days after granting Milestone C approval for a major de-
fense acquisition program, the milestone decision authority 
for the program shall provide to the congressional defense 
committees and, in the case of intelligence or intelligence- 
related activities, the congressional intelligence committees 
a brief summary report that contains the following: 
‘‘(1) The estimated cost and schedule for the pro-
gram established by the military department con-
cerned, including— 
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‘‘(A) the dollar values estimated for the pro-
gram acquisition unit cost, average procurement 
unit cost, and total life-cycle cost; and 
‘‘(B) the planned dates for initial oper-
ational test and evaluation and initial oper-
ational capability. 
‘‘(2) The independent estimated cost for the pro-
gram established pursuant to section 2334(a)(6) of 
this title, and any independent estimated schedule for 
the program, including— 
‘‘(A) the dollar values estimated for the pro-
gram acquisition unit cost, average procurement 
unit cost, and total life-cycle cost; and 
‘‘(B) the planned dates for initial oper-
ational test and evaluation and initial oper-
ational capability. 
‘‘(3) A summary of any production, manufac-
turing, and fielding risks associated with the pro-
gram. 
‘‘(d) ADDITIONAL INFORMATION.—At the request of 
any of the congressional defense committees or, in the case 
of intelligence or intelligence-related activities, the congres-
sional intelligence committees, the milestone decision au-
thority shall submit to the committee further information 
or underlying documentation for the information in a re-
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port submitted under subsection (a), (b), or (c), including 
the independent cost and schedule estimates and the inde-
pendent technical risk assessments referred to in those sub-
sections. 
‘‘(e) CONGRESSIONAL
INTELLIGENCE
COMMITTEES 
DEFINED.—In this section, the term ‘congressional intel-
ligence committees’ has the meaning given that term in sec-
tion 437(c) of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such subchapter is amended by adding at 
the end the following new item: 
‘‘2448d. Reports on milestone decision metrics.’’. 
SEC. 1705. AMENDMENTS RELATING TO TECHNICAL DATA 
RIGHTS. 
(a) RIGHTS RELATING TO ITEM OR PROCESS DEVEL-
OPED EXCLUSIVELY
AT PRIVATE EXPENSE.—Subsection 
(a)(2)(C)(iii) of section 2320 of title 10, United States Code, 
is amended by inserting after ‘‘or process data’’ the fol-
lowing: ‘‘, including such data pertaining to a major system 
component’’. 
(b) RIGHTS RELATING TO INTERFACE OR MAJOR SYS-
TEM INTERFACE.—Subsection (a)(2) of section 2320 of such 
title is further amended— 
(1) by redesignating subparagraphs (E), (F), 
and (G) as subparagraphs (F), (I), and (J), respec-
tively; 
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(2) in subparagraph (B), by striking ‘‘Except as 
provided in subparagraphs (C) and (D),’’ and insert-
ing ‘‘Except as provided in subparagraphs (C), (D), 
and (E),’’; 
(3) in subparagraph (D)(i), by striking sub-
clause (II) and inserting the following: 
‘‘(II) is a release, disclosure, or use of 
technical data pertaining to an interface be-
tween an item or process and other items or 
processes; or’’; 
(4) by inserting after subparagraph (D) the fol-
lowing new subparagraph (E): 
‘‘(E) Notwithstanding subparagraph (B), the 
United States shall have government purpose rights 
in technical data pertaining to a major system inter-
face developed exclusively at private expense and used 
in a modular open system approach pursuant to sec-
tion 2446a of this title.’’; 
(5) in subparagraph (F), as redesignated by 
paragraph (1), by striking ‘‘In the case of’’ and in-
serting ‘‘Except as provided in subparagraphs (G) 
and (H), in the case of’’; 
(6) by inserting after subparagraph (F), as so 
redesignated, the following new subparagraphs (G) 
and (H): 
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‘‘(G) Notwithstanding subparagraph (F), the 
United States shall have government purpose rights 
in technical data pertaining to an interface between 
an item or process and other items or processes that 
was developed in part with Federal funds and in part 
at private expense, except in any case in which the 
Secretary of Defense determines, on the basis of cri-
teria established in the regulations, that negotiation 
of different rights in such technical data would be in 
the best interest of the United States. 
‘‘(H) Notwithstanding subparagraph (F), the 
United States shall have government purpose rights 
in technical data pertaining to a major system inter-
face developed in part with Federal funds and in part 
at private expense and used in a modular open sys-
tem approach pursuant to section 2446a of this 
title.’’; and 
(7) in subparagraph (J), as redesignated by 
paragraph (1), by striking ‘‘provided under subpara-
graph (C) or (D),’’ and inserting ‘‘provided under 
subparagraph (C), (D), (E), or (H),’’. 
(c) AMENDMENT RELATING TO NEGOTIATED RIGHTS 
FOR ITEM OR PROCESS DEVELOPED WITH MIXED FUND-
ING.—Section (a)(2)(F) of section 2320 of such title, as re-
designated by subsection (b)(1) of this section, is further 
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amended by striking the period at the end of the first sen-
tence in the matter preceding clause (i) and all that follows 
through ‘‘establishment of any such negotiated rights shall’’ 
and inserting ‘‘and shall be based on negotiations between 
the United States and the contractor, except in any case 
in which the Secretary of Defense determines, on the basis 
of criteria established in the regulations, that negotiations 
would not be practicable. The establishment of such rights 
shall’’. 
(d) AMENDMENT RELATING TO DEFERRED ORDER-
ING.—Subsection (b)(9) of section 2320 of such title is 
amended— 
(1) by striking ‘‘at any time’’ and inserting ‘‘, 
until the date occurring six years after acceptance of 
the last item (other than technical data) under a con-
tract or the date of contract termination, whichever is 
later,’’; 
(2) by striking ‘‘or utilized in the performance of 
a contract’’ and inserting ‘‘in the performance of the 
contract’’; and 
(3) by striking clause (ii) of subparagraph (B) 
and inserting the following: 
‘‘(ii) is described in subparagraphs 
(D)(i)(II), (E), (G), and (H) of subsection 
(a)(2); and’’. 
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(e) DEFINITIONS.—Section 2320 of such title is further 
amended— 
(1) in subsection (f), by inserting ‘‘COVERED 
GOVERNMENT SUPPORT CONTRACTOR DEFINED.—’’ 
before ‘‘In this section’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(g) ADDITIONAL DEFINITIONS.—In this section, the 
terms ‘major system component’, ‘major system interface’, 
and ‘modular open system approach’ have the meanings 
provided in section 2446a of this title.’’. 
(f) AMENDMENTS TO ADD CERTAIN HEADINGS FOR 
READABILITY.—Section 2320(a) of such title is further 
amended— 
(1) in subparagraph (A) of paragraph (2), by 
inserting after ‘‘(A)’’ the following: ‘‘DEVELOPMENT 
EXCLUSIVELY WITH FEDERAL FUNDS.—’’; 
(2) in subparagraph (B) of such paragraph, by 
inserting after ‘‘(B)’’ the following: ‘‘DEVELOPMENT 
EXCLUSIVELY AT PRIVATE EXPENSE.—’’; and 
(3) in subparagraph (F) of such paragraph, as 
redesignated by subsection (b) of this section, by in-
serting after ‘‘(F)’’ the following: ‘‘DEVELOPMENT IN 
PART WITH FEDERAL FUNDS AND IN PART AT PRI-
VATE EXPENSE.—’’. 
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TITLE XVIII—MATTERS RELAT-
ING 
TO 
SMALL 
BUSINESS 
PROCUREMENT 
Subtitle 
A—Improving 
Trans-
parency and Clarity for Small 
Businesses 
SEC. 1801. PLAIN LANGUAGE REWRITE OF REQUIREMENTS 
FOR SMALL BUSINESS PROCUREMENTS. 
Section 15(a) of the Small Business Act (15 U.S.C. 
644(a)) is amended to read as follows: 
‘‘(a) SMALL BUSINESS PROCUREMENTS.— 
‘‘(1) IN
GENERAL.—For purposes of this Act, 
small business concerns shall receive any award or 
contract if such award or contract is, in the deter-
mination of the Administrator and the contracting 
agency, in the interest of— 
‘‘(A) maintaining or mobilizing the full 
productive capacity of the United States; 
‘‘(B) war or national defense programs; or 
‘‘(C) assuring that a fair proportion of the 
total purchase and contracts for goods and serv-
ices of the Government in each industry category 
(as described under paragraph (2)) are awarded 
to small business concerns. 
‘‘(2) INDUSTRY CATEGORY DEFINED.— 
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‘‘(A) IN GENERAL.—In this subsection, the 
term ‘industry category’ means a discrete group 
of similar goods and services, as determined by 
the Administrator in accordance with the North 
American Industry Classification System codes 
used to establish small business size standards, 
except that the Administrator shall limit an in-
dustry category to a greater extent than provided 
under the North American Industry Classifica-
tion codes if the Administrator receives evidence 
indicating that further segmentation of the in-
dustry category is warranted— 
‘‘(i) due to special capital equipment 
needs; 
‘‘(ii) due to special labor requirements; 
‘‘(iii) due to special geographic re-
quirements, except as provided in subpara-
graph (B); 
‘‘(iv) due to unique Federal buying 
patterns or requirements; or 
‘‘(v) to recognize a new industry. 
‘‘(B) EXCEPTION
FOR
GEOGRAPHIC
RE-
QUIREMENTS.—The Administrator may not fur-
ther segment an industry category based on geo-
graphic requirements unless— 
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‘‘(i) the Government typically des-
ignates the geographic area where work for 
contracts for goods or services is to be per-
formed; 
‘‘(ii) Government purchases comprise 
the major portion of the entire domestic 
market for such goods or services; and 
‘‘(iii) it is unreasonable to expect com-
petition from business concerns located out-
side of the general geographic area due to 
the fixed location of facilities, high mobili-
zation costs, or similar economic factors. 
‘‘(3) 
DETERMINATIONS
WITH
RESPECT
TO 
AWARDS OR CONTRACTS.—Determinations made pur-
suant to paragraph (1) may be made for individual 
awards or contracts, any part of an award or con-
tract or task order, or for classes of awards or con-
tracts or task orders. 
‘‘(4) INCREASING PRIME CONTRACTING OPPORTU-
NITIES FOR SMALL BUSINESS CONCERNS.— 
‘‘(A) DESCRIPTION OF COVERED PROPOSED 
PROCUREMENTS.—The 
requirements 
of 
this 
paragraph shall apply to a proposed procure-
ment that includes in its statement of work goods 
or services currently being supplied or performed 
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by a small business concern and, as determined 
by the Administrator— 
‘‘(i) is in a quantity or of an estimated 
dollar value which makes the participation 
of a small business concern as a prime con-
tractor unlikely; 
‘‘(ii) in the case of a proposed procure-
ment for construction, if such proposed pro-
curement seeks to bundle or consolidate dis-
crete construction projects; or 
‘‘(iii) is a solicitation that involves an 
unnecessary or unjustified bundling of con-
tract requirements. 
‘‘(B) NOTICE
TO
PROCUREMENT
CENTER 
REPRESENTATIVES.—With respect to proposed 
procurements described in subparagraph (A), at 
least 30 days before issuing a solicitation and 
concurrent with other processing steps required 
before issuing the solicitation, the contracting 
agency shall provide a copy of the proposed pro-
curement to the procurement center representa-
tive of the contracting agency (as described in 
subsection (l)) along with a statement explain-
ing— 
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‘‘(i) why the proposed procurement 
cannot be divided into reasonably small lots 
(not less than economic production runs) to 
permit offers on quantities less than the 
total requirement; 
‘‘(ii) why delivery schedules cannot be 
established on a realistic basis that will en-
courage the participation of small business 
concerns in a manner consistent with the 
actual requirements of the Government; 
‘‘(iii) why the proposed procurement 
cannot be offered to increase the likelihood 
of the participation of small business con-
cerns; 
‘‘(iv) in the case of a proposed procure-
ment for construction, why the proposed 
procurement cannot be offered as separate 
discrete projects; or 
‘‘(v) why the agency has determined 
that the bundling of contract requirements 
is necessary and justified. 
‘‘(C) ALTERNATIVES
TO
INCREASE
PRIME 
CONTRACTING OPPORTUNITIES FOR SMALL BUSI-
NESS CONCERNS.—If the procurement center rep-
resentative believes that the proposed procure-
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ment will make the participation of small busi-
ness concerns as prime contractors unlikely, the 
procurement center representative, within 15 
days after receiving the statement described in 
subparagraph (B), shall recommend to the con-
tracting agency alternative procurement methods 
for increasing prime contracting opportunities 
for small business concerns. 
‘‘(D) FAILURE
TO
AGREE
ON
AN
ALTER-
NATIVE PROCUREMENT METHOD.—If the procure-
ment center representative and the contracting 
agency fail to agree on an alternative procure-
ment method, the Administrator shall submit the 
matter to the head of the appropriate department 
or agency for a determination. 
‘‘(5) CONTRACTS
FOR
SALE
OF
GOVERNMENT 
PROPERTY.—With respect to a contract for the sale of 
Government property, small business concerns shall 
receive any such contract if, in the determination of 
the Administrator and the disposal agency, the award 
of such contract is in the interest of assuring that a 
fair proportion of the total sales of Government prop-
erty be made to small business concerns. 
‘‘(6) SALE OF ELECTRICAL POWER OR OTHER 
PROPERTY.—Nothing in this subsection shall be con-
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strued to change any preferences or priorities estab-
lished by law with respect to the sale of electrical 
power or other property by the Federal Government. 
‘‘(7) COSTS EXCEEDING FAIR MARKET PRICE.— 
A contract may not be awarded under this subsection 
if the cost of the contract to the awarding agency ex-
ceeds a fair market price.’’. 
SEC. 1802. IMPROVING REPORTING ON SMALL BUSINESS 
GOALS. 
(a) IN GENERAL.—Section 15(h)(2)(E) of the Small 
Business Act (15 U.S.C. 644(h)(2)(E)) is amended— 
(1) in clause (i)— 
(A) in subclause (III), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclauses: 
‘‘(V) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns for purposes 
of the initial contract; and 
‘‘(VI) that were awarded using a 
procurement method that restricted 
competition to small business concerns 
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owned and controlled by service-dis-
abled veterans, qualified HUBZone 
small business concerns, small business 
concerns owned and controlled by so-
cially and economically disadvantaged 
individuals, small business concerns 
owned and controlled by women, or a 
subset of any such concerns;’’; 
(2) in clause (ii)— 
(A) in subclause (IV), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclauses: 
‘‘(VI) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns owned and 
controlled by service-disabled veterans 
for purposes of the initial contract; 
and 
‘‘(VII) that were awarded using a 
procurement method that restricted 
competition to qualified HUBZone 
small business concerns, small business 
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concerns owned and controlled by so-
cially and economically disadvantaged 
individuals, small business concerns 
owned and controlled by women, or a 
subset of any such concerns;’’; 
(3) in clause (iii)— 
(A) in subclause (V), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclauses: 
‘‘(VII) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be qualified HUBZone small business 
concerns for purposes of the initial 
contract; and 
‘‘(VIII) that were awarded using 
a procurement method that restricted 
competition to small business concerns 
owned and controlled by service-dis-
abled veterans, small business concerns 
owned and controlled by socially and 
economically disadvantaged individ-
uals, small business concerns owned 
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and controlled by women, or a subset 
of any such concerns;’’; 
(4) in clause (iv)— 
(A) in subclause (V), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclauses: 
‘‘(VII) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns owned and 
controlled by socially and economically 
disadvantaged individuals for purposes 
of the initial contract; and 
‘‘(VIII) that were awarded using 
a procurement method that restricted 
competition to small business concerns 
owned and controlled by service-dis-
abled veterans, qualified HUBZone 
small business concerns, small business 
concerns owned and controlled by 
women, or a subset of any such con-
cerns;’’; 
(5) in clause (v)— 
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(A) in subclause (IV), by striking ‘‘and’’ at 
the end; 
(B) in subclause (V), by inserting ‘‘and’’ at 
the end; and 
(C) by adding at the end the following new 
subclause: 
‘‘(VI) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns owned by 
an Indian tribe other than an Alaska 
Native Corporation for purposes of the 
initial contract;’’; 
(6) in clause (vi)— 
(A) in subclause (IV), by striking ‘‘and’’ at 
the end; 
(B) in subclause (V), by inserting ‘‘and’’ at 
the end; and 
(C) by adding at the end the following new 
subclause: 
‘‘(VI) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
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be small business concerns owned by a 
Native Hawaiian Organization for 
purposes of the initial contract;’’; 
(7) in clause (vii)— 
(A) in subclause (IV), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclause: 
‘‘(VI) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns owned by 
an Alaska Native Corporation for pur-
poses of the initial contract; and’’; and 
(8) in clause (viii)— 
(A) in subclause (VII), by striking ‘‘and’’ at 
the end; 
(B) in subclause (VIII), by striking ‘‘and’’ 
at the end; and 
(C) by adding at the end the following new 
subclauses: 
‘‘(IX) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
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purchase, would no longer be deemed to 
be small business concerns owned and 
controlled by women for purposes of the 
initial contract; and 
‘‘(X) that were awarded using a 
procurement method that restricted 
competition to small business concerns 
owned and controlled by service-dis-
abled veterans, qualified HUBZone 
small business concerns, small business 
concerns owned and controlled by so-
cially and economically disadvantaged 
individuals, or a subset of any such 
concerns; and’’. 
(b) EFFECTIVE DATE.—The Administrator of the 
Small Business Administration shall be required to report 
on the information required by sections 15(h)(2)(E)(i)(V), 
15(h)(2)(E)(ii)(VI), 
15(h)(2)(E)(iii)(VII), 
15(h)(2)(E)(iv)(VII), 
15(h)(2)(E)(v)(VI), 
15(h)(2)(E)(vi)(VI), 
15(h)(2)(E)(vii)(VI), 
and 
15(h)(2)(E)(viii)(IX) only beginning on the date that the 
Federal Procurement Data System, System for Award 
Management or any new or successor system is able to re-
port such data. 
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SEC. 1803. TRANSPARENCY IN SMALL BUSINESS GOALS. 
Section 15(h)(3) of the Small Business Act (15 U.S.C. 
644(h)(3)) is amended to read as follows:: 
‘‘(3) PROCUREMENT DATA.— 
‘‘(A) FEDERAL
PROCUREMENT
DATA
SYS-
TEM.— 
‘‘(i) IN
GENERAL.—To assist in the 
implementation of this section, the Admin-
istrator shall have access to information col-
lected through the Federal Procurement 
Data System, Federal Subcontracting Re-
porting System, or any new or successor 
system. 
‘‘(ii) GSA REPORT.—On the date that 
the Administrator makes available the re-
port required by paragraph (2), the Admin-
istrator of the General Services Administra-
tion shall submit a report to the President 
and Congress, and to make available on a 
public Web site, a report in the same form 
and manner, and including the same infor-
mation, as the report under paragraph (2). 
Such report shall include all procurements 
made for the period covered by the report 
and may not exclude any contract awarded. 
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‘‘(B) 
AGENCY
PROCUREMENT
DATA 
SOURCES.—To assist in the implementation of 
this section, the head of each contracting agency 
shall provide, upon request of the Administrator, 
procurement information collected through agen-
cy data collection sources in existence at the time 
of the request. Contracting agencies shall not be 
required to establish new data collection systems 
to provide such data.’’. 
SEC. 1804. UNIFORMITY IN PROCUREMENT TERMINOLOGY. 
(a) IN GENERAL.—Section 15(j)(1) of the Small Busi-
ness Act (15 U.S.C. 644(j)(1)) is amended by striking 
‘‘greater than $2,500 but not greater than $100,000’’ and 
inserting ‘‘greater than the micro-purchase threshold, but 
not greater than the simplified acquisition threshold’’. 
(b) TECHNICAL AMENDMENT.—Section 3(m) of the 
Small Business Act (15 U.S.C. 632(m)) is amended to read 
as follows: 
‘‘(m) DEFINITIONS PERTAINING TO CONTRACTING.— 
In this Act: 
‘‘(1) PRIME CONTRACT.—The term ‘prime con-
tract’ has the meaning given such term in section 
8701(4) of title 41, United States Code. 
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‘‘(2) PRIME CONTRACTOR.—The term ‘prime con-
tractor’ has the meaning given such term in section 
8701(5) of title 41, United States Code. 
‘‘(3) SIMPLIFIED
ACQUISITION
THRESHOLD.— 
The term ‘simplified acquisition threshold’ has the 
meaning given such term in section 134 of title 41, 
United States Code. 
‘‘(4) MICRO-PURCHASE THRESHOLD.—The term 
‘micro-purchase threshold’ has the meaning given such 
term in section 1902(a) of title 41, United States 
Code. 
‘‘(5) TOTAL
PURCHASE
AND
CONTRACTS
FOR 
PROPERTY AND SERVICES.—The term ‘total purchases 
and contracts for property and services’ shall mean 
total number and total dollar amount of contracts 
and orders for property and services.’’. 
Subtitle B—Clarifying the Roles of 
Small Business Advocates 
SEC. 1811. SCOPE OF REVIEW BY PROCUREMENT CENTER 
REPRESENTATIVES. 
Section 15(l) of the Small Business Act (15 U.S.C. 
644(l)) is amended by adding at the end the following: 
‘‘(9) SCOPE OF REVIEW.—The Administrator— 
‘‘(A) may not limit the scope of review by 
the Procurement Center Representative for any 
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solicitation of a contract or task order without 
regard to whether the contract or task order or 
part of the contract or task order is set aside for 
small business concerns, whether 1 or more con-
tract or task order awards are reserved for small 
business concerns under a multiple award con-
tract, or whether or not the solicitation would re-
sult in a bundled or consolidated contract (as de-
fined in subsection (s)) or a bundled or consoli-
dated task order; and 
‘‘(B) may, unless the contracting agency re-
quests a review, limit the scope of review by the 
Procurement Center Representative for any solic-
itation of a contract or task order if such pro-
curement is conducted pursuant to section 22 of 
the Foreign Military Sales Act (22 U.S.C. 2762), 
is a humanitarian operation as defined in sec-
tion 401(e) of title 10, United States Code, or is 
for a contingency operation, as defined in section 
101(a)(13) of title 10, United States Code.’’. 
SEC. 1812. RESPONSIBILITIES OF COMMERCIAL MARKET 
REPRESENTATIVES. 
Section 4(h) of the Small Business Act (as added by 
section 865 of the National Defense Authorization Act for 
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Fiscal Year 2016 (Public Law 114–92)) is amended to read 
as follows: 
‘‘(h) COMMERCIAL MARKET REPRESENTATIVES.— 
‘‘(1) DUTIES.—The principal duties of a Com-
mercial Market Representative employed by the Ad-
ministrator and reporting to the senior official ap-
pointed by the Administrator with responsibilities 
under sections 8, 15, 31, and 36 (or the designee of 
such official) shall be to advance the policies estab-
lished in section 8(d)(1) relating to subcontracting. 
Such duties shall include— 
‘‘(A) helping prime contractors to find 
small business concerns that are capable of per-
forming subcontracts; 
‘‘(B) for contractors awarded contracts con-
taining the clause described in section 8(d)(3), 
providing— 
‘‘(i) counseling on the contractor’s re-
sponsibility to maximize subcontracting op-
portunities for small business concerns; 
‘‘(ii) instruction on methods and tools 
to identify potential subcontractors that are 
small business concerns; and 
‘‘(iii) assistance to increase awards to 
subcontractors that are small business con-
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cerns through visits, training, and reviews 
of past performance; 
‘‘(C) providing counseling on how a small 
business concern may promote its capacity to 
contractors awarded contracts containing the 
clause described in section 8(d)(3); and 
‘‘(D) conducting periodic reviews of con-
tractors awarded contracts containing the clause 
described in section 8(d)(3) to assess compliance 
with subcontracting plans required under section 
8(d)(6). 
‘‘(2) CERTIFICATION REQUIREMENTS.— 
‘‘(A) IN GENERAL.—Consistent with the re-
quirements of subparagraph (B), a commercial 
market representative referred to in section 
15(q)(3) shall have a Level I Federal Acquisition 
Certification in Contracting (or any successor 
certification) or the equivalent Department of 
Defense certification, except that a commercial 
market representative who was serving on or be-
fore the date of the enactment of the National 
Defense Authorization Act for Fiscal Year 2016 
may continue to serve as a commercial market 
representative for a period of 5 years beginning 
on such date without such a certification. 
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‘‘(B) DELAY OF CERTIFICATION REQUIRE-
MENT.— 
‘‘(i) TIMING.—The certification de-
scribed in subparagraph (A) is not required 
for any person serving as a commercial 
market representative until the date that is 
one calendar year after the date such person 
is appointed as a commercial market rep-
resentative. 
‘‘(ii) APPLICATION.—The requirements 
of clause (i) shall be included in any initial 
job posting for the position of a commercial 
market representative and shall apply to 
any person appointed as a commercial 
market representative after November 25, 
2015.’’. 
SEC. 1813. DUTIES OF THE OFFICE OF SMALL AND DIS-
ADVANTAGED BUSINESS UTILIZATION. 
Section 15(k) of the Small Business Act (15 U.S.C. 
644(k)), as amended by section 870 of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114– 
92), is amended— 
(1) by striking ‘‘section 8, 15 or 44’’ and insert-
ing ‘‘section 8, 15, 31, 36, or 44’’; 
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(2) by striking ‘‘sections 8 and 15’’ each place 
such term appears and inserting ‘‘sections 8, 15, 31, 
36, and 44’’; 
(3) in paragraph (10), by striking ‘‘section 8(a)’’ 
and inserting ‘‘section 8, 15, 31, or 36’’; 
(4) in paragraph (17)(C), by striking the period 
at the end, and inserting ‘‘; and’’; 
(5) by inserting after paragraph (17) the fol-
lowing new paragraph: 
‘‘(18) shall review summary data provided by 
purchase card issuers of purchases made by the agen-
cy greater than the micro-purchase threshold, and less 
than the simplified acquisition threshold to ensure 
that the purchases have been made in compliance 
with the provisions of this Act and have been properly 
recorded in the Federal Procurement Data System, if 
the method of payment is a purchase card issued by 
the Department of Defense pursuant to section 2784 
of title 10, United States Code, or by the head of an 
executive agency pursuant to section 1909 of title 41, 
United States Code;’’; and 
(6) in paragraph (16)— 
(A) in subparagraph (B), by striking ‘‘and’’ 
at the end; and 
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(B) by adding at the end the following new 
subparagraph: 
‘‘(D) any failure of the agency to comply 
with section 8, 15, 31, or 36;’’. 
SEC. 1814. IMPROVING CONTRACTOR COMPLIANCE. 
(a) REQUIREMENTS FOR THE OFFICE OF SMALL AND 
DISADVANTAGED BUSINESS UTILIZATION.—Section 15(k) 
of the Small Business Act (15 U.S.C. 644(k)(8)), as amend-
ed by this Act, is further amended by inserting after para-
graph (18) (as inserted by section 1813 of this Act) the fol-
lowing: 
‘‘(19) shall provide assistance to a small business 
concern awarded a contract or subcontract under this 
Act or under title 10 or title 41, United States Code, 
in finding resources for education and training on 
compliance with contracting regulations (including 
the Federal Acquisition Regulation) after award of 
such a contract or subcontract; and’’. 
(b) REQUIREMENTS UNDER THE MENTOR-PROTEGE 
PROGRAM OF THE DEPARTMENT OF DEFENSE.—Section 
831(e)(1) of the National Defense Authorization Act for Fis-
cal Year 1991 (Public Law 101–510; 104 Stat. 1607; 10 
U.S.C. 2302 note) is amended— 
(1) in subparagraph (B), by striking ‘‘and’’ at 
the end; 
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(2) in subparagraph (C), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by inserting at the end the following new 
subparagraph: 
‘‘(D) the assistance the mentor firm will 
provide to the protege firm in understanding 
contract regulations of the Federal Government 
and the Department of Defense (including the 
Federal Acquisition Regulation and the Defense 
Federal Acquisition Regulation Supplement) 
after award of a subcontract under this section, 
if applicable.’’. 
(c) RESOURCES FOR SMALL BUSINESS CONCERNS.— 
Section 15 of the Small Business Act (15 U.S.C. 644) is 
amended by adding at the end the following new subsection: 
‘‘(t) POST-AWARD
COMPLIANCE
RESOURCES.—The 
Administrator shall provide to small business development 
centers and entities participating in the Procurement Tech-
nical Assistance Cooperative Agreement Program under 
chapter 142 of title 10, United States Code, and shall make 
available on the website of the Administration, a list of re-
sources for small business concerns seeking education and 
assistance on compliance with contracting regulations (in-
cluding the Federal Acquisition Regulation) after award of 
a contract or subcontract.’’. 
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(d) REQUIREMENTS FOR PROCUREMENT CENTER REP-
RESENTATIVES.—Section 15(l)(2) of the Small Business Act 
(15 U.S.C. 644(l)(2)) is amended— 
(1) by redesignating subparagraph (I) as sub-
paragraph (J); 
(2) in subparagraph (H), by striking ‘‘and’’ at 
the end; and 
(3) by inserting after subparagraph (H) the fol-
lowing new subparagraph: 
‘‘(I) assist small business concerns with 
finding resources for education and training on 
compliance with contracting regulations (includ-
ing the Federal Acquisition Regulation) after 
award of a contract or subcontract; and’’. 
(e) REQUIREMENTS UNDER THE MENTOR-PROTEGE 
PROGRAM OF THE SMALL BUSINESS ADMINISTRATION.— 
Section 45(b)(3) of the Small Business Act (15 U.S.C. 
657r(b)(3)) is amended by adding at the end the following 
new subparagraph: 
‘‘(K) The extent to which assistance with 
compliance with the requirements of contracting 
with the Federal Government after award of a 
contract or subcontract under this section.’’. 
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SEC. 1815. RESPONSIBILITIES OF BUSINESS OPPORTUNITY 
SPECIALISTS. 
Section 4(g) of the Small Business Act (as added by 
section 865 of the National Defense Authorization Act for 
Fiscal Year 2016 (Public Law 114–92)) is amended to read 
as follows: 
‘‘(g) BUSINESS OPPORTUNITY SPECIALISTS.— 
‘‘(1) DUTIES.—The exclusive duties of a Business 
Opportunity Specialist employed by the Adminis-
trator and reporting to the senior official appointed 
by the Administrator with responsibilities under sec-
tions 8, 15, 31, and 36 (or the designee of such offi-
cial) shall be to implement sections 7, 8, and 45 and 
to complete other duties related to contracting pro-
grams under this Act. Such duties shall include— 
‘‘(A) with respect to small business concerns 
eligible to receive contracts and subcontracts pur-
suant to section 8(a)— 
‘‘(i) providing guidance, counseling, 
and referrals for assistance with technical, 
management, financial, or other matters 
that will improve the competitive viability 
of such concerns; 
‘‘(ii) identifying causes of success or 
failure of such concerns; 
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‘‘(iii) providing comprehensive assess-
ments of such concerns, including identi-
fying the strengths and weaknesses of such 
concerns; 
‘‘(iv) monitoring and documenting 
compliance with the requirements of sec-
tions 7 and 8 and any regulations imple-
menting those sections; 
‘‘(v) explaining the requirements of sec-
tions 7, 8, 15, 31, 36 and 45; and 
‘‘(vi) advising on compliance with con-
tracting regulations (including the Federal 
Acquisition Regulation) after award of such 
a contract or subcontract; 
‘‘(B) reviewing and monitoring compliance 
with mentor-protege agreements under section 
45; 
‘‘(C) representing the interests of the Ad-
ministrator and small business concerns in the 
award, modification, and administration of con-
tracts and subcontracts awarded pursuant to sec-
tion 8(a); and 
‘‘(D) reporting fraud or abuse under section 
7, 8, 15, 31, 36 or 45 or any regulations imple-
menting such sections. 
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‘‘(2) CERTIFICATION REQUIREMENTS.— 
‘‘(A) IN GENERAL.—Consistent with the re-
quirements of subparagraph (B), a Business Op-
portunity Specialist described under section 
7(j)(10)(D) shall have a Level I Federal Acquisi-
tion Certification in Contracting (or any suc-
cessor certification) or the equivalent Depart-
ment of Defense certification, except that a Busi-
ness Opportunity Specialist who was serving on 
or before January 3, 2013, may continue to serve 
as a Business Opportunity Specialist for a pe-
riod of 5 years beginning on such date without 
such a certification. 
‘‘(B) DELAY OF CERTIFICATION REQUIRE-
MENT.— 
‘‘(i) TIMING.—The certification de-
scribed in subparagraph (A) is not required 
for any person serving as a Business Op-
portunity Specialist until the date that is 
one calendar year after the date such person 
is appointed as a Business Opportunity 
Specialist. 
‘‘(ii) APPLICATION.—The requirements 
of clause (i) shall be included in any initial 
job posting for the position of a Business 
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Opportunity Specialist and shall apply to 
any person appointed as a Business Oppor-
tunity Specialist after January 3, 2013’’. 
Subtitle C—Strengthening Opportu-
nities for Competition in Sub-
contracting 
SEC. 1821. GOOD FAITH IN SUBCONTRACTING. 
(a) TRANSPARENCY
IN SUBCONTRACTING GOALS.— 
Section 8(d)(9) of the Small Business Act (15 U.S.C. 
637(d)(9)) is amended— 
(1) by striking ‘‘(9) The failure’’ and inserting 
the following: 
‘‘(9) MATERIAL BREACH.—The failure’’; 
(2) in subparagraph (A), by striking ‘‘or’’ at the 
end; 
(3) in subparagraph (B), by inserting ‘‘or’’ at 
the end; 
(4) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) assurances provided under paragraph 
(6)(E),’’; and 
(5) by moving the margins of subparagraphs (A) 
and (B), and the matter after subparagraph (C) (as 
inserted by paragraph (4)), 2 ems to the right. 
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(b) REVIEW
OF SUBCONTRACTING PLANS.—Section 
15(k) of the Small Business Act (15 U.S.C. 644(k)) is 
amended by inserting after paragraph (19) (as inserted by 
section 1814 of this Act) the following: 
‘‘(20) shall review all subcontracting plans re-
quired by section 8(d)(4) or 8(d)(5) to ensure that the 
plan provides maximum practicable opportunity for 
small business concerns to participate in the perform-
ance of the contract to which the plan applies.’’. 
(c) GOOD FAITH COMPLIANCE.—Not later than 270 
days after the date of enactment of this title, the Adminis-
trator of the Small Business Administration shall provide 
examples of activities that would be considered a failure to 
make a good faith effort to comply with the requirements 
imposed on an entity (other than a small business concern 
as defined under section 3 of the Small Business Act (15 
U.S.C. 632)) that is awarded a prime contract containing 
the clauses required under paragraph (4) or (5) of section 
8(d) of the Small Business Act (15 U.S.C. 637(d)). 
SEC. 1822. PILOT PROGRAM TO PROVIDE OPPORTUNITIES 
FOR QUALIFIED SUBCONTRACTORS TO OB-
TAIN PAST PERFORMANCE RATINGS. 
Section 8(d) of the Small Business Act (15 U.S.C. 
637(d)), as amended by this Act, is further amended by 
adding at the end the following new paragraph: 
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‘‘(18) PILOT
PROGRAM
PROVIDING
PAST
PER-
FORMANCE
RATINGS
FOR
OTHER
SMALL
BUSINESS 
SUBCONTRACTORS.— 
‘‘(A) ESTABLISHMENT.—The Administrator 
shall establish a pilot program for a small busi-
ness concern without a past performance rating 
as a prime contractor performing as a first tier 
subcontractor for a covered contract (as defined 
in paragraph 13(A)) to request a past perform-
ance rating in the system used by the Federal 
Government to monitor or record contractor past 
performance. 
‘‘(B) APPLICATION.—A small business con-
cern described in subparagraph (A) shall submit 
an application to the appropriate official for a 
past performance rating. Such application shall 
include written evidence of the past performance 
factors for which the small business concern seeks 
a rating and a suggested rating. 
‘‘(C) DETERMINATION.—The appropriate of-
ficial shall submit the application from the small 
business concern to the Office of Small and Dis-
advantaged Business Utilization for the covered 
contract and to the prime contractor for review. 
The Office of Small and Disadvantaged Business 
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Utilization and the prime contractor shall, not 
later than 30 days after receipt of the applica-
tion, submit to the appropriate official a re-
sponse regarding the application. 
‘‘(i) AGREEMENT ON RATING.—If the 
Office of Small and Disadvantaged Business 
Utilization and the prime contractor agree 
on a past performance rating, or if either 
the Office of Small and Disadvantaged 
Business Utilization or the prime con-
tractor fail to respond and the responding 
individual agrees with the rating of the ap-
plicant small business concern, the appro-
priate official shall enter the agreed-upon 
past performance rating in the system de-
scribed in subparagraph (A). 
‘‘(ii) DISAGREEMENT ON RATING.—If 
the Office of Small and Disadvantaged 
Business Utilization and the prime con-
tractor fail to respond within 30 days or if 
they disagree about the rating, or if either 
the Office of Small and Disadvantaged 
Business Utilization or the prime con-
tractor fail to respond and the responding 
individual disagrees with the rating of the 
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applicant small business concern, the Office 
of Small and Disadvantaged Business Utili-
zation or the prime contractor shall submit 
a notice contesting the application to the 
appropriate official. The appropriate offi-
cial shall follow the requirements of sub-
paragraph (D). 
‘‘(D) PROCEDURE FOR RATING.—Not later 
than 14 calendar days after receipt of a notice 
under subparagraph (C)(ii), the appropriate offi-
cial shall submit such notice to the applicant 
small business concern. Such concern may sub-
mit comments, rebuttals, or additional informa-
tion relating to the past performance of such 
concern not later 14 calendar days after receipt 
of such notice. The appropriate official shall 
enter into the system described in subparagraph 
(A) a rating that is neither favorable nor unfa-
vorable along with the initial application from 
the small business concern, the responses of the 
Office of Small and Disadvantaged Business 
Utilization and the prime contractor, and any 
additional information provided by the small 
business concern. A copy of the information sub-
mitted shall be provided to the contracting officer 
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(or designee of such officer) for the covered con-
tract. 
‘‘(E) USE OF INFORMATION.—A small busi-
ness subcontractor may use a past performance 
rating given under this paragraph to establish 
its past performance for a prime contract. 
‘‘(F) DURATION.—The pilot program estab-
lished under this paragraph shall terminate 3 
years after the date on which the first small 
business concern receives a past performance rat-
ing for performance as a first tier subcontractor. 
‘‘(G) REPORT.—The Comptroller General of 
the United States shall begin an assessment of 
the pilot program 1 year after the establishment 
of such program. Not later than 6 months after 
beginning such assessment, the Comptroller Gen-
eral shall submit a report to the Committee on 
Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of 
the House of Representatives, which shall in-
clude— 
‘‘(i) the number of small business con-
cerns that have received past performance 
ratings under the pilot program; 
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‘‘(ii) the number of applications in 
which the contracting officer (or designee) 
or the prime contractor contested the appli-
cation of the small business concern; 
‘‘(iii) any suggestions or recommenda-
tions the Comptroller General or the small 
business concerns participating in the pro-
gram have to address disputes between the 
small business concern, the contracting offi-
cer (or designee), and the prime contractor 
on past performance ratings; 
‘‘(iv) the number of small business con-
cerns awarded prime contracts after receiv-
ing a past performance rating under this 
pilot; and 
‘‘(v) any suggestions or recommenda-
tion the Comptroller General has to improve 
the operation of the pilot program. 
‘‘(H) APPROPRIATE OFFICIAL DEFINED.—In 
this paragraph, the term ‘appropriate official’ 
means a Commercial Market Representative or 
other individual designated by the senior official 
appointed by the Administrator with responsibil-
ities under sections 8, 15, 31, and 36.’’. 
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Subtitle D—Mentor-Protege 
Programs 
SEC. 1831. AMENDMENTS TO THE MENTOR-PROTEGE PRO-
GRAM OF THE DEPARTMENT OF DEFENSE. 
Section 831 of the National Defense Authorization Act 
for Fiscal Year 1991 (Public Law 101–510; 104 Stat. 1607; 
10 U.S.C. 2302 note) is amended— 
(1) in subsection (d)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) prior to the approval of that agreement, the 
Administrator of the Small Business Administration 
had made no finding of affiliation between the mentor 
firm and the protege firm;’’; 
(B) by redesignating paragraph (2) as 
paragraph (3); and 
(C) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2)(A) the Administrator of the Small Business 
Administration does not have a current finding of af-
filiation between the mentor firm and protege firm; or 
‘‘(B) the Secretary, after considering the regula-
tions promulgated by the Administrator of the Small 
Business Administration regarding affiliation— 
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‘‘(i) does not have reason to believe that the 
mentor firm affiliated with the protege firm; or 
‘‘(ii) has received a formal determination of 
no affiliation between the mentor firm and pro-
tege firm from the Administrator after having 
submitted a question of affiliation to the Admin-
istrator; and’’; 
(2) in subsection (n), by amending paragraph 
(9) to read as follows: 
‘‘(9) The term ‘affiliation’, with respect to a rela-
tionship between a mentor firm and a protege firm, 
means a relationship described under section 121.103 
of title 13, Code of Federal Regulations (or any suc-
cessor regulation).’’; and 
(3) in subsection (f)(6)— 
(A) in subparagraph (B), by striking ‘‘or’’ 
at the end; 
(B) in subparagraph (C), by striking the 
period at the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(D) women’s business centers described in 
section 29 of the Small Business Act (15 U.S.C. 
656).’’. 
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SEC. 1832. IMPROVING COOPERATION BETWEEN THE MEN-
TOR-PROTEGE PROGRAMS OF THE SMALL 
BUSINESS ADMINISTRATION AND THE DE-
PARTMENT OF DEFENSE. 
Section 45(b)(4) of the Small Business Act (15 U.S.C. 
657r(b)(4)) is amended by striking subparagraph (A) and 
redesignating subparagraphs (B) and (C) as subparagraphs 
(A) and (B), respectively. 
Subtitle E—Women’s Business 
Programs 
SEC. 1841. OFFICE OF WOMEN’S BUSINESS OWNERSHIP. 
Section 29(g) of the Small Business Act (15 U.S.C. 
656(g)) is amended— 
(1) in paragraph (2), by striking subparagraphs 
(B) and (C) and inserting the following: 
‘‘(B) RESPONSIBILITIES.—The responsibil-
ities of the Assistant Administrator shall be to 
administer the programs and services of the Of-
fice of Women’s Business Ownership. 
‘‘(C) DUTIES.—The Assistant Adminis-
trator shall perform the following functions with 
respect to the Office of Women’s Business Owner-
ship: 
‘‘(i) Recommend the annual adminis-
trative and program budgets of the Office 
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and eligible entities receiving a grant under 
the Women’s Business Center Program. 
‘‘(ii) Review the annual budgets sub-
mitted by each eligible entity receiving a 
grant under the Women’s Business Center 
Program. 
‘‘(iii) Select applicants to receive 
grants to operate a women’s business center 
after reviewing information required by this 
section, including the budget of each appli-
cant. 
‘‘(iv) Collaborate with other Federal 
departments and agencies, State and local 
governments, not-for-profit organizations, 
and for-profit enterprises to maximize utili-
zation of taxpayer dollars and reduce (or 
eliminate) any duplication among the pro-
grams overseen by the Office of Women’s 
Business Ownership and those of other enti-
ties that provide similar services to women 
entrepreneurs. 
‘‘(v) Maintain a clearinghouse to pro-
vide for the dissemination and exchange of 
information between women’s business cen-
ters. 
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‘‘(vi) Serve as the vice chairperson of 
the Interagency Committee on Women’s 
Business Enterprise and as the liaison for 
the National Women’s Business Council.’’; 
and 
(2) by adding at the end the following: 
‘‘(3) MISSION.—The mission of the Office of 
Women’s Business Ownership shall be to assist women 
entrepreneurs to start, grow, and compete in global 
markets by providing quality support with access to 
capital, access to markets, job creation, growth, and 
counseling by— 
‘‘(A) fostering participation of women en-
trepreneurs in the economy by overseeing a net-
work of women’s business centers throughout 
States and territories; 
‘‘(B) creating public-private partnerships to 
support women entrepreneurs and conduct out-
reach and education to startup and existing 
small business concerns owned and controlled by 
women; and 
‘‘(C) working with other programs overseen 
by the Administrator to ensure women are well- 
represented and being served and to identify 
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gaps where participation by women could be in-
creased. 
‘‘(4) ACCREDITATION PROGRAM.— 
‘‘(A) ESTABLISHMENT.—Not later than 270 
days after the date of enactment of this para-
graph, the Administrator shall establish stand-
ards for an accreditation program for accred-
iting eligible entities receiving a grant under 
this section. 
‘‘(B) TRANSITION
PROVISION.—Before the 
date on which standards are established under 
subparagraph (A), the Administrator may not 
terminate a grant under this section absent evi-
dence of fraud or other criminal misconduct by 
the recipient. 
‘‘(C) CONTRACTING
AUTHORITY.—The Ad-
ministrator may provide financial assistance, by 
contract or otherwise, to a relevant national 
women’s business center representative associa-
tion to provide assistance in establishing the 
standards required under subparagraph (A) or 
for carrying out an accreditation program pur-
suant to such standards.’’. 
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SEC. 1842. WOMEN’S BUSINESS CENTER PROGRAM. 
(a) DEFINITIONS.—Section 29(a) of the Small Busi-
ness Act (15 U.S.C. 656(a)) is amended— 
(1) by striking paragraph (4); 
(2) by redesignating paragraphs (2) and (3) as 
paragraphs (3) and (4), respectively; 
(3) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) the term ‘eligible entity’ means— 
‘‘(A) an organization described in section 
501(c) of the Internal Revenue Code of 1986 and 
exempt from taxation under section 501(a) of 
such Code; 
‘‘(B) a State, regional, or local economic de-
velopment organization, so long as the organiza-
tion certifies that grant funds received under this 
section will not be commingled with other funds; 
‘‘(C) an institution of higher education, un-
less such institution is currently receiving a 
grant under section 21; 
‘‘(D) a development, credit, or finance cor-
poration chartered by a State, so long as the cor-
poration certifies that grant funds received under 
this section will not be commingled with other 
funds; or 
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‘‘(E) any combination of entities listed in 
subparagraphs (A) through (D);’’; and 
(4) by adding at the end the following: 
‘‘(5) the term ‘women’s business center’ means 
the location at which counseling and training on the 
management, operations (including manufacturing, 
services, and retail), access to capital, international 
trade, Government procurement opportunities, and 
any other matter is needed to start, maintain, or ex-
pand a small business concern owned and controlled 
by women.’’. 
(b) AUTHORITY.—Section 29(b) of the Small Business 
Act (15 U.S.C. 656(b)) is amended— 
(1) by redesignating paragraphs (1), (2), and (3) 
as subparagraphs (A), (B), and (C), respectively, and 
adjusting the margins accordingly; 
(2) by striking ‘‘The Administration’’ and all 
that follows through ‘‘5-year projects’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—There is established a Wom-
en’s Business Center Program under which the Ad-
ministrator may provide a grant to any eligible enti-
ty to operate one or more women’s business centers’’; 
(3) by striking ‘‘The projects shall’’ and insert-
ing the following: 
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‘‘(2) USE OF FUNDS.—The women’s business cen-
ters shall be designed to provide counseling and train-
ing that meets the needs of women, especially socially 
or economically disadvantaged women, and shall’’; 
and 
(4) by adding at the end the following: 
‘‘(3) AMOUNT OF GRANTS.— 
‘‘(A) IN GENERAL.—The amount of a grant 
provided under this subsection to an eligible en-
tity per project year shall be not more than 
$185,000 (as such amount is annually adjusted 
by the Administrator to reflect the change in in-
flation). 
‘‘(B) ADDITIONAL GRANTS.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraph (A), with respect to an eligi-
ble entity that has received $185,000 in 
grants under this subsection in a project 
year, the Administrator may award an ad-
ditional grant under this subsection of up to 
$65,000 during such project year if the Ad-
ministrator determines that the eligible en-
tity— 
‘‘(I) agrees to obtain, after its ap-
plication has been approved and notice 
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