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5 years and should begin immediately to avoid fu-
ture weapon system delivery disruption. 
(b) REQUIREMENT.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary shall sub-
mit to the Committees on Armed Services of the House 
of Representatives and the Senate a plan to establish a 
domestic source of sintered neodymium iron boron 
magnets for use in the defense supply chain. 
(c) 
SINTERED
NEODYMIUM
IRON
BORON 
MAGNETS.—For the purposes of subsection (b), the capa-
bility to manufacture sintered neodymium iron boron 
magnets includes the alloying, pressing, and sintering of 
magnet materials. It does not include manufacturing 
magnets from standard shapes or imported blocks of neo-
dymium. The Secretary’s plan shall not allow the grinding 
or reprocessing of neodymium to be considered a ‘‘domes-
tic source of sintered neodymium iron boron magnets’’. 
SEC. 841. SENSE OF CONGRESS REGARDING COST SAVINGS 
THROUGH REDUCTIONS IN WASTE, FRAUD, 
AND ABUSE. 
(a) FINDINGS.—Congress finds the following: 
(1) The Secretary of Defense has undertaken 
meaningful efforts to eliminate waste, fraud, and 
abuse through contractor oversight and new policies 
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and procedures aimed at increasing emphasis on eth-
ics, governance, and fraud prevention. 
(2) The Government Accountability Office re-
port dated December 16, 2009, on the status of 
3,099 recommendations made to the Department of 
Defense by the Government Accountability Office be-
tween 2001 and 2008, indicates that the Depart-
ment of Defense has implemented 1,871, or 61 per-
cent, of the recommendations. 
(3) The Government Accountability Office esti-
mates that the implementation of these rec-
ommendations yielded the Federal Government a 
savings of $89 billion from 2001 through 2007, 
averaging $12.7 billion in annual financial benefit. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) there is potential for additional and signifi-
cant cost savings through further reductions by the 
Secretary of Defense in waste, fraud, and abuse, 
particularly with regard to contracting processes; 
and 
(2) the Secretary of Defense should make im-
plementation of the remaining Government Account-
ability Office recommendations an utmost priority of 
the Department of Defense. 
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SEC. 842. PROCUREMENT OF ARTICLES, MATERIALS, AND 
SUPPLIES FOR USE OUTSIDE THE UNITED 
STATES. 
(a) REQUIREMENT.—In procuring articles, materials, 
or supplies for use outside of the United States, including 
procurements for military construction projects, the De-
partment of Defense shall solicit bids from United States 
sources. 
(b) EXCEPTION.—Subsection (a) shall not apply if 
the articles, materials, or supplies to be procured are— 
(1) not mined, produced, or manufactured in 
the United States in sufficient and reasonably avail-
able quantities; 
(2) needed on an urgent basis and not acquired 
on a regular basis; or 
(3) perishable, or will otherwise degrade be-
cause of the time involved in shipping. 
SEC. 843. ADDITIONAL INFORMATION ON WAIVERS UNDER 
BUY AMERICAN ACT BY DEPARTMENT OF DE-
FENSE REQUIRED TO BE INCLUDED IN AN-
NUAL REPORT. 
Section 812 of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108–136; 10 U.S.C. 
2501 note) is amended in subsection (c)(2)(A) by striking 
clause (vi) and inserting the following: 
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‘‘(v) An itemized list of all waivers granted 
with respect to such articles, materials, or sup-
plies under the Buy American Act (41 U.S.C. 
10a et seq.), including— 
‘‘(I) an analysis of the domestic ca-
pacity to supply the articles, materials, or 
supplies; and 
‘‘(II) an analysis of the reasons for an 
increase or decrease in the number of 
waivers granted from fiscal year to fiscal 
year.’’. 
SEC. 844. REQUIREMENT TO INCLUDE EFFECTS ON DOMES-
TIC JOBS IN PERIODIC ASSESSMENTS OF DE-
FENSE CAPABILITY. 
Section 2505(b)(4) of title 10, United States Code, 
is amended by inserting after ‘‘title)’’ the following: ‘‘, in-
cluding the effects on domestic jobs,’’. 
SEC. 845. EXTENSION OF REGULATIONS ON CONTRACTORS 
PERFORMING 
PRIVATE 
SECURITY 
FUNC-
TIONS. 
(a) EXTENSION OF REGULATIONS.— 
(1) IN GENERAL.—The Secretary of Defense, in 
coordination with the Secretary of State, shall issue 
regulations to extend and apply the requirements of 
section 862 of the National Defense Authorization 
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Act for Fiscal Year 2008 (Public Law 110–181; 10 
U.S.C. 2302 note) to additional areas as designated 
under paragraph (2) and as listed in paragraph (3). 
(2) ADDITIONAL
AREAS
DESIGNATED.—The 
Secretary of Defense shall designate as additional 
areas for purposes of this section any area— 
(A) that is an area within a foreign coun-
try or an area covering all or part of more than 
one foreign country; 
(B) that is not an area of combat oper-
ations as designated under subsection (c) of 
section 862 of such Act; and 
(C) in which significant military oper-
ations, as designated by the Secretary, are 
being carried out by United States Armed 
Forces. 
(3) ADDITIONAL AREAS LISTED.—In addition 
to any areas designated by the Secretary under 
paragraph (2), the following areas shall be consid-
ered additional areas listed in this paragraph for 
purposes of this section: 
(A) The Horn of Africa region. 
(B) Yemen. 
(C) The Philippines. 
(D) Haiti. 
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(b) EXTENSION TIMELINES.—The Secretary shall 
prescribe regulations applicable to the additional areas— 
(1) designated under subsection (a)(2), not 
later than March 1, 2012; and 
(2) listed in subsection (a)(3), not later than 
March 1, 2011. 
(c) REPORT ON IMPLEMENTATION.—Not later than 
90 days after the dates specified in subsection (b), the 
Secretary of Defense, in coordination with the Secretary 
of State, shall submit to Congress a report on the imple-
mentation of the regulations prescribed under this section. 
The report shall include— 
(1) a complete list of additional areas des-
ignated by the Secretary under subsection (a)(2), 
and a detailed description of the criteria used to 
make the designation; 
(2) the total number of contractors performing 
private security functions in each additional area 
designated under subsection (a)(2) or listed in sub-
jection (a)(3); and 
(3) an assessment of the long-term options for 
reducing the use of contractors for private security 
functions, including the use of Government per-
sonnel to provide such functions. 
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(d) 
PRIVATE
SECURITY
FUNCTIONS.—Notwith-
standing section 864 of the National Defense Authoriza-
tion Act for Fiscal Year 2008 (Public Law 110–181), as 
amended by section 813 of the National Defense Author-
ization Act for Fiscal Year 2010 (Public Law 111–84), 
in this section, the term ‘‘private security functions’’ 
means activities engaged in by a contractor as follows: 
(1) Guarding of personnel, facilities, or prop-
erty of a Federal agency. 
(2) Any other activity for which personnel are 
required to carry weapons in the performance of 
their duties. 
SEC. 846. PROCUREMENT OF PHOTOVOLTAIC DEVICES. 
(a) CONTRACT REQUIREMENT.—The Secretary of 
Defense shall ensure that each contract awarded by the 
Department of Defense that includes the procurement of 
photovoltaic devices, including contracts described in sub-
section (b), includes a provision requiring the photovoltaic 
devices to comply with the Buy American Act (41 U.S.C. 
10a et seq.). 
(b) CONTRACTS DESCRIBED.—The contracts de-
scribed in this subsection include, but are not limited to, 
energy savings performance contracts, utility service con-
tracts, land leases, and private housing contracts. 
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(c) DEFINITION
OF PHOTOVOLTAIC DEVICES.—In 
this section, the term ‘‘photovoltaic devices’’ means devices 
that convert light directly into electricity through a solid- 
state, semiconductor process. 
SEC. 847. REQUIREMENT FOR CONTRACTS IN IRAQ AND AF-
GHANISTAN TO USE EMPLOYEES AND NOT 
INDEPENDENT CONTRACTORS FOR PRIVATE 
SECURITY SERVICES. 
(a) REQUIREMENT.—Any contract in Iraq or Afghan-
istan for the procurement of private security services shall 
contain a requirement that, in the case of any contractor 
using individuals who are United States citizens and re-
quired to have a United States security clearance to per-
form private security services under the contract, the con-
tractor shall use employees and not independent contrac-
tors for the provision of such services. 
(b) CONTRACT IN IRAQ OR AFGHANISTAN.—In this 
section, the term ‘‘contract in Iraq or Afghanistan’’ means 
a contract with the Department of Defense, the Depart-
ment of State, or the United States Agency for Inter-
national Development, a subcontract at any tier issued 
under such a contract, or a task order or delivery order 
at any tier issued under such a contract (including a con-
tract, subcontract, or task order or delivery order issued 
by another Government agency for the Department of De-
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fense, the Department of State, or the United States 
Agency for International Development), if the contract, 
subcontract, or task order or delivery order involves work 
performed in Iraq or Afghanistan for a period longer than 
14 days. 
(c) PRIVATE SECURITY SERVICES.—In this section, 
the term ‘‘private security services’’ means activities en-
gaged in by a contractor under a contract in Iraq or Af-
ghanistan and includes— 
(1) guarding of personnel, facilities, or property 
of a Federal agency, the contractor or subcontractor, 
or a third party; 
(2) any other activity for which personnel are 
required to carry weapons in the performance of 
their duties; and 
(3) training in any activity covered by para-
graph (1) or (2). 
(d) WAIVER AUTHORITY.—The Secretary of Defense, 
the Secretary of State, or the Administrator of the United 
States Agency for International Development may waive 
the requirement in subsection (a) with respect to a con-
tract of the Department of Defense, the Department of 
State, or the United States Agency for International De-
velopment, respectively, if the Secretary concerned or the 
Administrator— 
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(1) determines in writing that a waiver is nec-
essary in the interests of national security; and 
(2) submits to Congress a notification of such 
waiver. 
SEC. 848. CONSIDERATION OF UNFAIR COMPETITIVE AD-
VANTAGE IN EVALUATION OF OFFERS FOR 
KC–X AERIAL REFUELING AIRCRAFT PRO-
GRAM. 
(a) REQUIREMENT TO CONSIDER UNFAIR COMPETI-
TIVE ADVANTAGE.—In awarding a contract for the KC– 
X aerial refueling aircraft program (or any successor to 
that program), the Secretary of Defense shall, in evalu-
ating any offers submitted to the Department of Defense 
in response to a solicitation for offers for such program, 
consider any unfair competitive advantage that an offeror 
may possess. 
(b) REPORT.—Not later than 60 days after submis-
sion of offers in response to any such solicitation, the Sec-
retary of Defense shall submit to the congressional defense 
committees a report on any unfair competitive advantage 
that any offeror may possess. 
(c) REQUIREMENT TO TAKE FINDINGS INTO AC-
COUNT IN AWARD OF CONTRACT.—In awarding a contract 
for the KC–X aerial refueling aircraft program (or any 
successor to that program), the Secretary of Defense shall 
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take into account the findings of the report submitted 
under subsection (b). 
(d) UNFAIR COMPETITIVE ADVANTAGE.—In this sec-
tion, the term ‘‘unfair competitive advantage’’, with re-
spect to an offer for a contract, means a situation in which 
the cost of development, production, or manufacturing is 
not fully borne by the offeror for such contract. 
SEC. 849. DEBARMENT OF BP AND ITS SUBSIDIARIES. 
(a) CONTRACTS WITH BP AND ITS SUBSIDIARIES.— 
If the Secretary of Defense determines that BP or any 
of its subsidiaries performing any contract with the De-
partment of Defense is no longer a responsible source (as 
defined in section 2302 of title 10, United States Code), 
the Secretary shall determine, not later than 90 days after 
making such determination, whether BP or its subsidi-
aries should be debarred from contracting with the De-
partment of Defense. 
(b) DEBAR.—In this section, the term ‘‘debar’’ has 
the meaning given that term by section 2393(c) of title 
10, United States Code. 
SEC. 850. OFFICE OF FEDERAL PROCUREMENT POLICY ACT 
AMENDMENTS. 
(a) SERVICE
CONTRACT
INVENTORY
REQUIRE-
MENT.— 
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(1) IN GENERAL.—The Office of Federal Pro-
curement Policy Act (41 U.S.C. 403 et seq.) is 
amended by adding at the end the following new sec-
tion: 
‘‘SEC. 45. SERVICE CONTRACT INVENTORY REQUIREMENT. 
‘‘(a) SERVICE
CONTRACT
INVENTORY
REQUIRE-
MENT.— 
‘‘(1) GUIDANCE.—The Director of the Office of 
Management and Budget shall develop and dissemi-
nate guidance to aid executive agencies in estab-
lishing systems for the collection of information re-
quired to meet the requirements of this section and 
to ensure consistency of inventories across agencies. 
‘‘(2) REPORT.—The Director of the Office of 
Management and Budget shall submit a report to 
Congress on the status of efforts to enable executive 
agencies to prepare the inventories required under 
paragraph (3), including the development, as appro-
priate, of guidance, methodologies, and technical 
tools. 
‘‘(3) INVENTORY
CONTENTS.—Not later than 
December 31, 2010, and annually thereafter, the 
head of each executive agency required to submit an 
inventory in accordance with the Federal Activities 
Inventory Reform Act of 1998 (Public Law 105– 
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270; 31 U.S.C. 501 note), other than the Depart-
ment of Defense, shall submit to the Office of Man-
agement and Budget an annual inventory of service 
contracts awarded or extended through the exercise 
of an option or a task order, for or on behalf of such 
agency. For each service contract, the entry for an 
inventory under this section shall include, for the 
preceding fiscal year, the following: 
‘‘(A) A description of the services pur-
chased by the executive agency and the role the 
services played in achieving agency objectives, 
regardless of whether such a purchase was 
made through a contract or task order. 
‘‘(B) The organizational component of the 
executive agency administering the contract, 
and the organizational component of the agency 
whose requirements are being met through con-
tractor performance of the service. 
‘‘(C) The total dollar amount obligated for 
services under the contract and the funding 
source for the contract. 
‘‘(D) The total dollar amount invoiced for 
services under the contract. 
‘‘(E) The contract type and date of award. 
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‘‘(F) The name of the contractor and place 
of performance. 
‘‘(G) The number and work location of 
contractor and subcontractor employees, ex-
pressed as full-time equivalents for direct labor, 
compensated under the contract, using direct 
labor hours and associated cost data collected 
from contractors. 
‘‘(H) Whether the contract is a personal 
services contract. 
‘‘(I) Whether the contract was awarded on 
a noncompetitive basis, regardless of date of 
award. 
‘‘(b) FORM.—Reports required under this section 
shall be submitted in unclassified form, but may include 
a classified annex. 
‘‘(c) PUBLICATION.—Not later than 30 days after the 
date on which the inventory under subsection (a)(3) is re-
quired to be submitted to the Office of Management and 
Budget, the head of each executive agency shall— 
‘‘(1) make the inventory available to the public; 
and 
‘‘(2) publish in the Federal Register a notice 
that the inventory is available to the public. 
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‘‘(d) GOVERNMENT-WIDE INVENTORY REPORT.—Not 
later than 90 days after the deadline for submitting inven-
tories under subsection (a)(3), and annually thereafter, 
the Director of the Office of Management and Budget 
shall submit to Congress and make publicly available on 
the Office of Management and Budget website a report 
on the inventories submitted. The report shall identify 
whether each agency required to submit an inventory 
under subsection (a)(3) has met such requirement and 
summarize the information submitted by each executive 
agency required to have a Chief Financial Officer pursu-
ant to section 901 of title 31, United States Code. 
‘‘(e) REVIEW AND PLANNING REQUIREMENTS.—Not 
later than 180 days after the deadline for submitting in-
ventories under subsection (a)(3) for an executive agency, 
the head of the executive agency, or an official designated 
by the agency head shall— 
‘‘(1) review the contracts and information in 
the inventory; 
‘‘(2) ensure that— 
‘‘(A) each contract in the inventory that is 
a personal services contract has been entered 
into, and is being performed, in accordance with 
applicable laws and regulations; 
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‘‘(B) the contracts do not include to the 
maximum extent practicable functions that are 
closely associated with inherently governmental 
functions; 
‘‘(C) the agency is not using contractor 
employees to perform inherently governmental 
functions; 
‘‘(D) the agency has specific safeguards 
and monitoring systems in place to ensure that 
work being performed by contractors has not 
changed or expanded during performance to be-
come an inherently governmental function; 
‘‘(E) the agency is not using contractor 
employees to perform critical functions in such 
a way that could affect the ability of the agency 
to maintain control of its mission and oper-
ations; and 
‘‘(F) there are sufficient internal agency 
resources to manage and oversee contracts ef-
fectively; 
‘‘(3) identify contracts that have been poorly 
performed, as determined by a contracting officer, 
because of excessive costs or inferior quality; and 
‘‘(4) identify contracts that should be consid-
ered for conversion to— 
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‘‘(A) performance by Federal employees of 
the executive agency in accordance with agency 
insourcing guidelines required under section 
736 of the Financial Services and General Gov-
ernment Appropriations Act, 2009 (Public Law 
111–8, division D) and section 46 of this Act; 
or 
‘‘(B) an alternative acquisition approach 
that would better enable the agency to effi-
ciently utilize its assets and achieve its public 
mission. 
‘‘(f) REPORT ON ACTIONS TAKEN IN RESPONSE TO 
ANNUAL INVENTORY.—Not later than one year after sub-
mitting an annual inventory under subsection (a)(3), the 
head of each executive agency submitting such an inven-
tory shall submit to the Office of Management and Budget 
a report summarizing the actions taken pursuant to sub-
section (e), including any actions taken to consider and 
convert functions from contractor to Federal employee 
performance. The report shall be included as an attach-
ment to the next annual inventory and made publicly 
available in accordance with subsection (c). 
‘‘(g) SUBMISSION OF SERVICE CONTRACT INVEN-
TORY
BEFORE
PUBLIC-PRIVATE
COMPETITION.—Not-
withstanding any other provision of law, beginning in fis-
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HR 5136 RHUC 
cal year 2011, if an executive agency has not submitted 
to the Office of Management and Budget the inventory 
required under subsection (a)(3) for the prior fiscal year, 
the agency may not begin, plan for, or announce a study 
or public-private competition regarding the conversion to 
contractor performance of any function performed by Fed-
eral employees pursuant to Office of Management and 
Budget Circular A–76 or any other administrative regula-
tion or directive until such time as the inventory is sub-
mitted for the prior fiscal year. 
‘‘(h) GAO REPORTS ON IMPLEMENTATION.— 
‘‘(1) REPORT ON GUIDANCE.—Not later than 
120 days after submission of the report by the Di-
rector of the Office of Management and Budget re-
quired under subsection (a)(2), the Comptroller Gen-
eral of the United States shall report on the guid-
ance issued and actions taken by the Director. The 
report shall be submitted to the Committee on 
Homeland Security and Governmental Affairs and 
the Committee on Appropriations of the Senate and 
the Committee on Oversight and Government Re-
form and the Committee on Appropriations of the 
House of Representatives. 
‘‘(2) REPORTS ON INVENTORIES.— 
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‘‘(A) INITIAL INVENTORY.—Not later than 
September 30, 2011, the Comptroller General 
of the United States shall submit a report to 
the Committees named in the preceding para-
graph on the initial implementation by executive 
agencies of the inventory requirement in sub-
section (a)(3) with respect to inventories re-
quired to be submitted by December 31, 2010. 
‘‘(B) SECOND INVENTORY.—Not later than 
September 30, 2012, the Comptroller General 
shall submit a report to the same Committees 
on annual inventories required to be submitted 
by December 31, 2011. 
‘‘(3) PERIODIC
BRIEFINGS.—The Comptroller 
General shall provide periodic briefings, as may be 
requested by the Committees, on matters related to 
implementation of this section. 
‘‘(i) EXECUTIVE AGENCY DEFINED.—In this section, 
the term ‘executive agency’ has the meaning given the 
term in section 4 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403).’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions in section 1 of such Act is amended by adding 
at the end the following new item: 
‘‘Sec. 45. Service contract inventory requirement.’’. 
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(3) REPEAL
OF
SUPERSEDED
LAW.—Section 
743(c) of the Financial Services and General Gov-
ernment Appropriations Act, 2010 (Public Law 
111–117; 123 Stat. 3216) is amended by striking 
‘‘and annually thereafter,’’. 
(b) PROHIBITION AGAINST DIRECT CONVERSIONS.— 
(1) IN GENERAL.—Section 43(a)(1) of the Of-
fice of Federal Procurement Policy Act (41 U.S.C. 
439) is amended by striking ‘‘10 or more’’. 
(2) GUIDANCE.—Not later than 60 days after 
the date of the enactment of this Act, the Director 
of the Office of Management and Budget shall issue 
guidance to all Federal agencies other than the De-
partment of Defense to ensure that no function last 
performed by Federal employees is converted to con-
tractor performance without complying with the re-
quirements of section 43 of such Act, as amended by 
this section. 
(c) GUIDELINES ON INSOURCING NEW AND CON-
TRACTED OUT FUNCTIONS.— 
(1) IN GENERAL.—The Office of Federal Pro-
curement Policy Act (41 U.S.C. 403 et seq.), as 
amended by subsection (a), is further amended by 
adding at the end the following new section: 
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‘‘SEC. 46. GUIDELINES ON INSOURCING NEW AND CON-
TRACTED OUT FUNCTIONS. 
‘‘(a) GUIDELINES REQUIRED.—(1) The heads of ex-
ecutive agencies subject to the Federal Activities Inventory 
Reform Act of 1998 (Public Law 105–270; 31 U.S.C. 501 
note) shall devise and implement guidelines and proce-
dures to ensure that consideration is given to using, on 
a regular basis, Federal employees to perform new func-
tions and functions that are performed by contractors and 
could be performed by Federal employees. 
‘‘(2) The guidelines and procedures required under 
subparagraph (A) may not include any specific limitation 
or restriction on the number of functions or activities that 
may be converted to performance by Federal employees. 
‘‘(b) SPECIAL CONSIDERATION FOR CERTAIN FUNC-
TIONS.—The guidelines and procedures required under 
paragraph (1) shall provide for special consideration to be 
given to using Federal employees to perform any function 
that— 
‘‘(1) is performed by a contractor and— 
‘‘(A) has been performed by Federal em-
ployees at any time during the previous 10 
years; 
‘‘(B) is a function closely associated with 
the performance of an inherently governmental 
function; 
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‘‘(C) has been performed pursuant to a 
contract awarded on a non-competitive basis; or 
‘‘(D) has been performed poorly, as deter-
mined by a contracting officer during the 5- 
year period preceding the date of such deter-
mination, because of excessive costs or inferior 
quality; or 
‘‘(2) is a new requirement, with particular em-
phasis given to a new requirement that is similar to 
a function previously performed by Federal employ-
ees or is a function closely associated with the per-
formance of an inherently governmental function. 
‘‘(c) EXCLUSION
OF CERTAIN FUNCTIONS FROM 
COMPETITIONS.—The head of an executive agency may 
not conduct a public-private competition under Office of 
Management and Budget Circular A–76 or any other pro-
vision of law or regulation before— 
‘‘(1) in the case of a new agency function, as-
signing the performance of the function to Federal 
employees; 
‘‘(2) in the case of any agency function de-
scribed in paragraph (2), converting the function to 
performance by Federal employees; or 
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‘‘(3) in the case of an agency function per-
formed by Federal employees, expanding the scope 
of the function. 
‘‘(d) DEADLINE.—(1) The head of each executive 
agency shall implement the guidelines and procedures re-
quired under this subsection by not later than 120 days 
after the date of the enactment of this subsection. 
‘‘(2) Not later than 210 days after the date of 
the enactment of this subsection, the Government 
Accountability Office shall submit a report on the 
implementation of this subsection to the Committees 
on Appropriations of the House of Representatives 
and the Senate, the Committee on Oversight and 
Government Reform of the House of Representa-
tives, and the Committee on Homeland Security and 
Governmental Affairs of the Senate. 
‘‘(e) DEFINITIONS.—In this subsection: 
‘‘(1) The term ‘inherently governmental func-
tions’ has the meaning given such term in subpart 
7.5 of part 7 of the Federal Acquisition Regulation. 
‘‘(2) The term ‘functions closely associated with 
inherently governmental functions’ means the func-
tions described in section 7.503(d) of the Federal 
Acquisition Regulation. 
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‘‘(f) APPLICABILITY.—This subsection shall not apply 
to the Department of Defense.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions in section 1 of such Act, as amended by sub-
section (a), is further amended by adding at the end 
the following new item: 
‘‘Sec. 46. Guidelines on insourcing new and contracted out functions.’’. 
(3) REPEAL OF SUPERSEDED LAW.—Subsection 
(b) of section 739 of division D of the Consolidated 
Appropriations Act, 2008 (Public Law 110–161; 
121 Stat. 2030) is repealed. 
(d) CONVERSION OF FUNCTIONS TO PERFORMANCE 
BY FEDERAL EMPLOYEES.— 
(1) DECISION
TO
INSOURCE.—The Office of 
Management and Budget shall not establish any nu-
merical goal, target, or quota for the conversion to 
performance by Federal employees of functions pre-
viously performed by contractors unless such goal, 
target, or quota is based on considered research and 
analysis. 
(2) REPORTS.— 
(A) REPORT TO CONGRESS.—The Office of 
Management and Budget shall submit to Con-
gress a report on the aggregate results of the 
efforts of each Federal agency to convert func-
tions from contractor performance to perform-
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ance by Federal agency employees made during 
fiscal year 2010. Such report shall include— 
(i) agency decisions for converting 
such functions to Federal employee per-
formance; 
(ii) the basis and rationale for the 
agency decisions; and 
(iii) the number of contractor employ-
ees whose functions were converted to per-
formance by Federal employees. 
(B) COMPTROLLER
GENERAL
REPORT.— 
Not later than 120 days after the submittal of 
the report under paragraph (1), the Comp-
troller General of the United States shall sub-
mit to the Committee on Oversight and Govern-
ment Reform of the House of Representatives, 
and the Committee on Homeland Security and 
Governmental Affairs of the Senate an assess-
ment of the report. 
(3) DEPARTMENT
OF
DEFENSE.—Nothing in 
this subsection shall apply to the Department of De-
fense. 
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SEC. 851. REQUIREMENT TO JUSTIFY THE USE OF FACTORS 
OTHER THAN COST OR PRICE AS THE PRE-
DOMINATE FACTORS IN EVALUATING COM-
PETITIVE PROPOSALS FOR DEFENSE PRO-
CUREMENT CONTRACTS. 
(a) REQUIREMENT.—Subparagraph (A) of section 
2305(a)(2) of title 10, United States Code, is amended— 
(1) by striking ‘‘and’’ at the end of clause (i); 
and 
(2) by inserting after clause (ii) the following 
new clause: 
‘‘(iii) in the case of a solicitation in which 
factors other than cost or price when combined 
are more important than cost or price, the rea-
sons why assigning at least equal importance to 
cost or price would not better serve the Govern-
ment’s interest; and’’. 
(b) REPORT.—Section 2305(a)(3) of such title is 
amended by adding at the end the following new subpara-
graph: 
‘‘(C) Not later than 180 days after the end of each 
fiscal year, the Secretary of Defense shall submit to Con-
gress, and post on a publicly available website of the De-
partment of Defense, a report describing the solicitations 
for which a statement pursuant to paragraph (2)(A)(iii) 
was included.’’. 
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SEC. 852. PENALTIES ON CONTRACTORS NOT PROVIDING 
INFORMATION 
TO 
DATABASES 
ON 
CON-
TRACTS IN IRAQ AND AFGHANISTAN. 
Section 861 of the National Defense Authorization 
Act for Fiscal Year 2008 (Public Law 110–181; 10 U.S.C. 
2302 note) is amended by adding at the end the following 
new subsection: 
‘‘(e) PENALTIES.—Any contract in Iraq or Afghani-
stan entered into or modified after September 1, 2011, 
shall include a clause requiring the imposition of a pen-
alty, by the department or agency awarding the contract, 
on any contractor that does not comply with requirements 
under this section, including requirements in the memo-
randum of understanding required by subsection (a), to 
provide information for the common databases identified 
under subsection (b)(4), including updating the informa-
tion required. The penalty shall consist of the withholding 
of award and incentive fees.’’. 
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TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—Department of Defense 
Management 
SEC. 901. REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY 
AND MARINE CORPS. 
(a) REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY AND MARINE 
CORPS.— 
(1) REDESIGNATION
OF
MILITARY
DEPART-
MENT.—The military department designated as the 
Department of the Navy is redesignated as the De-
partment of the Navy and Marine Corps. 
(2) 
REDESIGNATION
OF
SECRETARY
AND 
OTHER STATUTORY OFFICES.— 
(A) SECRETARY.—The position of the Sec-
retary of the Navy is redesignated as the Sec-
retary of the Navy and Marine Corps. 
(B) OTHER
STATUTORY
OFFICES.—The 
positions of the Under Secretary of the Navy, 
the four Assistant Secretaries of the Navy, and 
the General Counsel of the Department of the 
Navy are redesignated as the Under Secretary 
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Secretaries of the Navy’’ and inserting ‘‘Assist-
ant Secretaries of the Navy and Marine Corps’’. 
(ii) The heading of section 5016 of such 
title, and the item relating to such section in 
the table of sections at the beginning of chapter 
503 of such title, are each amended by insert-
ing ‘‘and Marine Corps’’ after ‘‘of the Navy’’, 
with the matter inserted in each case to be in 
the same typeface and typestyle as the matter 
amended. 
(c) OTHER PROVISIONS OF LAW AND OTHER REF-
ERENCES.— 
(1) TITLE 37, UNITED STATES CODE.—Title 37, 
United States Code, is amended by striking ‘‘De-
partment of the Navy’’ and ‘‘Secretary of the Navy’’ 
each place they appear and inserting ‘‘Department 
of the Navy and Marine Corps’’ and ‘‘Secretary of 
the Navy and Marine Corps’’, respectively. 
(2) OTHER
REFERENCES.—Any reference in 
any law other than in title 10 or title 37, United 
States Code, or in any regulation, document, record, 
or other paper of the United States, to the Depart-
ment of the Navy shall be considered to be a ref-
erence to the Department of the Navy and Marine 
Corps. Any such reference to an office specified in 
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subsection (b)(2) shall be considered to be a ref-
erence to that officer as redesignated by that sec-
tion. 
(d) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the first 
day of the first month beginning more than 60 days after 
the date of the enactment of this Act. 
SEC. 902. REALIGNMENT OF THE ORGANIZATIONAL STRUC-
TURE OF THE OFFICE OF THE SECRETARY OF 
DEFENSE TO CARRY OUT THE REDUCTION 
REQUIRED BY LAW IN THE NUMBER OF DEP-
UTY UNDER SECRETARIES OF DEFENSE. 
(a) REDESIGNATION OF CERTAIN POSITIONS IN THE 
OFFICE OF THE SECRETARY OF DEFENSE.—Positions in 
the Office of the Secretary of Defense of the Department 
of Defense are hereby redesignated as Assistant Secre-
taries of Defense as follows: 
(1) The Director of Defense Research and En-
gineering is redesignated as the Assistant Secretary 
of Defense for Research and Engineering. 
(2) The Director of Operational Energy Plans 
and Programs is redesignated as the Assistant Sec-
retary of Defense for Operational Energy Plans and 
Programs. 
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(3) The Director of Cost Assessment and Pro-
gram Evaluation is redesignated as the Assistant 
Secretary of Defense for Cost Assessment and Pro-
gram Evaluation. 
(4) The Assistant to the Secretary of Defense 
for Nuclear and Chemical and Biological Defense 
Programs is redesignated as the Assistant Secretary 
of Defense for Nuclear, Chemical, and Biological 
Defense Programs. 
(b) AMENDMENTS TO CHAPTER 4 OF TITLE 10 RE-
LATING TO REALIGNMENT.—Chapter 4 of title 10, United 
States Code, is amended as follows: 
(1) REPEAL OF SEPARATE DEPUTY UNDER SEC-
RETARY PROVISIONS.—The following sections are re-
pealed: 133a, 134a, and 136a. 
(2) COMPONENTS OF OSD.—Section 131(b) is 
amended to read as follows: 
‘‘(b) The Office of the Secretary of Defense is com-
posed of the following: 
‘‘(1) The Deputy Secretary of Defense. 
‘‘(2) The Under Secretaries of Defense, as fol-
lows: 
‘‘(A) The Under Secretary of Defense for 
Acquisition, Technology, and Logistics. 
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‘‘(B) The Under Secretary of Defense for 
Policy. 
‘‘(C) The Under Secretary of Defense 
(Comptroller). 
‘‘(D) The Under Secretary of Defense for 
Personnel and Readiness. 
‘‘(E) The Under Secretary of Defense for 
Intelligence. 
‘‘(3) The Deputy Chief Management Officer of 
the Department of Defense. 
‘‘(4) The Principal Deputy Under Secretaries of 
Defense. 
‘‘(5) The Assistant Secretaries of Defense. 
‘‘(6) Other officers who are appointed by the 
President, by and with the advice and consent of the 
Senate, as follows: 
‘‘(A) The Director of Operational Test and 
Evaluation. 
‘‘(B) The General Counsel of the Depart-
ment of Defense. 
‘‘(C) The Inspector General of the Depart-
ment of Defense. 
‘‘(7) Other officials provided for by law, as fol-
lows: 
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‘‘(A) The official designated under section 
1501(a) of this title to have responsibility for 
Department of Defense matters relating to 
missing persons as set forth in section 1501 of 
this title. 
‘‘(B) The official designated under section 
2228(a)(2) of this title to have responsibility for 
Department of Defense policy related to the 
prevention and mitigation of corrosion of the 
military equipment and infrastructure of the 
Department of Defense and for directing the 
activities of the Office of Corrosion Policy and 
Oversight. 
‘‘(C) The officials designated under sub-
sections (a) and (b) of section 2438(a) of this 
title to have responsibility, respectively, for de-
velopmental test and evaluation and for systems 
engineering. 
‘‘(D) The official designated under section 
2438a(a) of this title to have responsibility for 
conducting and overseeing performance assess-
ments and root cause analyses for major de-
fense acquisition programs. 
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‘‘(E) The Director of Small Business Pro-
grams, provided for under section 2508 of this 
title. 
‘‘(8) Such other offices and officials as may be 
established by law or the Secretary of Defense may 
establish or designate in the Office.’’. 
(3) PRINCIPAL
DEPUTY
UNDER
SECRETARIES 
OF DEFENSE.—Section 137a is amended— 
(A) in subsections (a)(1), (b), and (d), by 
striking ‘‘Deputy Under’’ each place it appears 
and inserting ‘‘Principal Deputy Under’’; 
(B) in subsection (a)(2), by striking ‘‘(A) 
The’’ and all that follows through ‘‘(5) of sub-
section (c)’’ and inserting ‘‘The Principal Dep-
uty Under Secretaries of Defense’’; 
(C) in subsection (c)— 
(i) by striking ‘‘One of the Deputy’’ in 
paragraphs (1), (2), (3), (4), and (5) and 
inserting ‘‘One of the Principal Deputy’’; 
(ii) by striking ‘‘appointed’’ and all 
that follows through ‘‘this title’’ in para-
graphs (1), (2), and (3); 
(iii) by striking ‘‘shall be’’ in para-
graphs (4) and (5) and inserting ‘‘is’’; and 
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(iv) by adding at the end of para-
graph (5) the following new sentence: ‘‘Any 
individual nominated for appointment as 
the Principal Deputy Under Secretary of 
Defense for Intelligence shall have exten-
sive intelligence expertise.’’; and 
(D) by adding at the end of subsection (d) 
the following new sentence: ‘‘The Principal 
Deputy Under Secretaries take precedence 
among themselves in the order prescribed by 
the Secretary of Defense.’’. 
(4) ASSISTANT SECRETARIES OF DEFENSE.— 
Section 138 is amended— 
(A) in subsection (a)— 
(i) by striking ‘‘12’’ and inserting 
‘‘17’’; and 
(ii) by striking ‘‘(A) The’’ and all that 
follows through ‘‘The other’’ and inserting 
‘‘The’’; 
(B) in subsection (b)— 
(i) by striking ‘‘shall be’’ in para-
graphs (2), (3), (4), (5), and (6) and in-
serting ‘‘is’’; 
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(ii) by striking ‘‘appointed pursuant 
to section 138a of this title’’ in paragraph 
(7); and 
(iii) by adding at the end the fol-
lowing new paragraphs: 
‘‘(8) One of the Assistant Secretaries is the Assistant 
Secretary of Defense for Research and Engineering. In 
addition to any duties and powers prescribed under para-
graph (1), the Assistant Secretary of Defense for Research 
and Engineering shall have the duties specified in section 
138b of this title. 
‘‘(9) One of the Assistant Secretaries is the Assistant 
Secretary of Defense for Operational Energy Plans and 
Programs. In addition to any duties and powers prescribed 
under paragraph (1), the Assistant Secretary of Defense 
for Operational Energy Plans and Programs shall have 
the duties specified in section 138c of this title. 
‘‘(10) One of the Assistant Secretaries is the Assist-
ant Secretary of Defense for Cost Assessment and Pro-
gram Evaluation. In addition to any duties and powers 
prescribed under paragraph (1), the Assistant Secretary 
of Defense for Cost Assessment and Program Evaluation 
shall have the duties specified in section 138d of this title. 
‘‘(11) One of the Assistant Secretaries is the Assist-
ant Secretary of Defense for Nuclear, Chemical, and Bio-
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logical Defense Programs. In addition to any duties and 
powers prescribed under paragraph (1), the Assistant Sec-
retary of Defense for Nuclear, Chemical, and Biological 
Defense Programs shall have the duties specified in sec-
tion 138e of this title.’’; and 
(C) in subsection (d), by striking ‘‘and the 
Director of Defense Research and Engineering’’ 
and inserting ‘‘the Deputy Chief Management 
Officer of the Department of Defense, and the 
Principal Deputy Under Secretaries of De-
fense’’. 
(5) ASSISTANT SECRETARY FOR LOGISTICS AND 
MATERIEL READINESS.—Section 138a(a) is amend-
ed— 
(A) by striking ‘‘There is a’’ and inserting 
‘‘The’’; and 
(B) by striking ‘‘, appointed from civilian 
life by the President, by and with the advice 
and consent of the Senate. The Assistant Sec-
retary’’. 
(6) ASSISTANT SECRETARY FOR RESEARCH AND 
ENGINEERING.—Section 139a is transferred so as to 
appear after section 138a, redesignated as section 
138b, and amended— 
(A) by striking subsection (a); 
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(B) by redesignating subsections (b) and 
(c) as subsections (a) and (b), respectively; 
(C) in subsection (a), as so redesignated, 
by striking ‘‘Director of Defense’’ and inserting 
‘‘Assistant Secretary of Defense for’’; and 
(D) in subsection (b), as so redesignated— 
(i) in paragraph (1), by striking ‘‘Di-
rector of Defense Research and Engineer-
ing, in consultation with the Director of 
Developmental Test and Evaluation’’ and 
inserting ‘‘Assistant Secretary of Defense 
for Research and Engineering, in consulta-
tion with the official designated under sec-
tion 2438(a) of this title to have responsi-
bility for developmental test and evaluation 
functions’’; and 
(ii) in paragraph (2), by striking ‘‘Di-
rector’’ and inserting ‘‘Assistant Sec-
retary’’. 
(7) ASSISTANT SECRETARY FOR OPERATIONAL 
ENERGY PLANS AND PROGRAMS.—Section 139b is 
transferred so as to appear after section 138b (as 
transferred and redesignated by paragraph (6)), re-
designated as section 138c, and amended— 
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(A) in subsection (a), by striking ‘‘There is 
a’’ and all that follows through ‘‘The Director’’ 
and inserting ‘‘The Assistant Secretary of De-
fense for Operational Energy Plans and Pro-
grams’’; 
(B) by striking ‘‘Director’’ each place it 
appears and inserting ‘‘Assistant Secretary’’; 
(C) in subsection (d)(2)— 
(i) by striking ‘‘Not later than’’ and 
all that follows through ‘‘military depart-
ments’’ and inserting ‘‘The Secretary of 
each military department’’; 
(ii) by striking ‘‘who will’’ and insert-
ing ‘‘who shall’’; and 
(iii) by inserting ‘‘so designated’’ after 
‘‘The officials’’; and 
(D) in subsection (d)(4), by striking ‘‘The 
initial’’ and all that follows through ‘‘updates to 
the strategy’’ and inserting ‘‘Updates to the 
strategy required by paragraph (1)’’. 
(8) ASSISTANT SECRETARY FOR COST ASSESS-
MENT AND PROGRAM EVALUATION.—Section 139c is 
transferred so as to appear after section 138c (as 
transferred and redesignated by paragraph (7)), re-
designated as section 138d, and amended— 
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(A) by striking subsection (a); 
(B) by redesignating subsection (b) as sub-
section (a) and in that subsection— 
(i) striking ‘‘Director of’’ in para-
graph (1) and inserting ‘‘Assistant Sec-
retary of Defense for’’; and 
(ii) striking ‘‘Director’’ each place it 
appears in paragraphs (1)(A), (1)(B), and 
(2) and inserting ‘‘Assistant Secretary’’; 
(C) by striking subsection (c) and inserting 
the following: 
‘‘(b) RESPONSIBILITY FOR SPECIFIED FUNCTIONS.— 
There shall be within the office of the Assistant Secretary 
the following: 
‘‘(1) An official with primary responsibility for 
cost assessment. 
‘‘(2) An official with primary responsibility for 
program evaluation.’’; and 
(D) by redesignating subsection (d) as sub-
section (c) and in that subsection striking ‘‘Di-
rector of’’ in the matter preceding paragraph 
(1) and inserting ‘‘Assistant Secretary of De-
fense for’’. 
(9) ASSISTANT
SECRETARY
FOR
NUCLEAR, 
CHEMICAL, AND BIOLOGICAL DEFENSE PROGRAMS.— 
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Section 142 is transferred so as to appear after sec-
tion 138d (as redesignated and transferred by para-
graph (8)), redesignated as section 138e, and 
amended— 
(A) by striking subsection (a); 
(B) by striking ‘‘(b) The Assistant to the 
Secretary’’ and inserting ‘‘The Assistant Sec-
retary of Defense for Nuclear, Chemical, and 
Biological Defense Programs’’; and 
(C) by striking subsection (c). 
(c) OTHER AMENDMENTS TO CHAPTER 4 OF TITLE 
10.—Chapter 4 of title 10, United States Code, is further 
amended as follows: 
(1) OFFICE
OF
THE
SECRETARY
OF
DE-
FENSE.—Section 131(a) is amended by striking 
‘‘his’’ and inserting ‘‘the Secretary’s’’. 
(2) DEPUTY
SECRETARY.—Section 132 is 
amended by striking the second sentence of sub-
section (c). 
(3) DEPUTY CHIEF MANAGEMENT OFFICER.— 
Such chapter is further amended by inserting after 
section 132 the following new section: 
‘‘§ 132a. Deputy Chief Management Officer 
‘‘(a) There is a Deputy Chief Management Officer of 
the Department of Defense, appointed from civilian life 
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by the President, by and with the advice and consent of 
the Senate. 
‘‘(b) The Deputy Chief Management Officer assists 
the Deputy Secretary of Defense in the Deputy Sec-
retary’s capacity as Chief Management Officer of the De-
partment of Defense under section 132(c) of this title. 
‘‘(c) The Deputy Chief Management Officer takes 
precedence in the Department of Defense after the Sec-
retary of Defense, the Deputy Secretary of Defense, the 
Secretaries of the military departments, and the Under 
Secretaries of Defense.’’. 
(4) UNDER
SECRETARY
OF
DEFENSE
(COMP-
TROLLER).—Section 135(c) is amended by striking 
‘‘clauses’’ and inserting ‘‘paragraphs’’. 
(d) REPEAL
OF POSITION TITLES SPECIFIED
BY 
LAW FOR STATUTORY POSITIONS RELATING TO DEVEL-
OPMENTAL TEST AND EVALUATION AND SYSTEMS ENGI-
NEERING.— 
(1) TRANSFER OF SECTION FROM CHAPTER 4 
TO PROGRAMMATIC CHAPTER.—Section 139d of title 
10, United States Code, is transferred to chapter 
144, inserted after section 2437, and redesignated 
as section 2438. 
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(2) DIRECTOR OF DEVELOPMENTAL TEST AND 
EVALUATION.—Subsection (a) of such section is 
amended— 
(A) by striking ‘‘(a) DIRECTOR OF’’ and all 
that follows through paragraph (3) and insert-
ing the following: 
‘‘(a) DEVELOPMENTAL TEST AND EVALUATION.— 
‘‘(1) DESIGNATION
OF
RESPONSIBLE
OFFI-
CIAL.—The Secretary of Defense shall designate, 
from among individuals with expertise in test and 
evaluation, an official to be responsible to the Sec-
retary and the Under Secretary of Defense for Ac-
quisition, Technology, and Logistics for develop-
mental test and evaluation in the Department of De-
fense. 
‘‘(2) SUPERVISION.—The official designated 
under paragraph (1) shall report directly to an offi-
cial of the Department appointed from civilian life 
by the President, by and with the advice and consent 
of the Senate.’’; 
(B) by redesignating paragraphs (4), (5), 
(6), and (7) as paragraphs (3), (4), (5), and 
(6), respectively; 
(C) in paragraph (3), as so redesignated, 
by striking DIRECTOR OF SYSTEMS ENGINEER-
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ING’’ and all that follows through ‘‘Director of 
Systems Engineering’’ and inserting ‘‘SYSTEMS 
ENGINEERING.—The official designated under 
paragraph (1) shall closely coordinate with the 
official designated under subsection (b)’’; 
(D) in paragraph (4), as so redesignated, 
by striking ‘‘Director’’ in the matter preceding 
subparagraph (A) and inserting ‘‘official des-
ignated under paragraph (1)’’; 
(E) in paragraph (5), as so redesignated— 
(i) by striking ‘‘Director has’’ and in-
serting ‘‘official designated under para-
graph (1) has’’; 
(ii) by striking ‘‘Director considers’’ 
and inserting ‘‘designated official con-
siders’’; and 
(iii) by striking ‘‘the Director’s du-
ties’’ and inserting ‘‘that official’s duties’’; 
and 
(F) in paragraph (6), as so redesignated, 
by striking ‘‘serving as the Director of Develop-
mental Test and Evaluation’’ and inserting ‘‘of-
ficial designated under paragraph (1)’’. 
(3) DIRECTOR
OF
SYSTEMS
ENGINEERING.— 
Subsection (b) of such section is amended— 
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(A) by striking ‘‘(b) DIRECTOR OF’’ and all 
that follows through paragraph (3) and insert-
ing the following: 
‘‘(b) SYSTEMS ENGINEERING.— 
‘‘(1) DESIGNATION
OF
RESPONSIBLE
OFFI-
CIAL.—The Secretary of Defense shall designate, 
from among individuals with expertise in systems en-
gineering, an official to be responsible to the Sec-
retary and the Under Secretary of Defense for Ac-
quisition, Technology, and Logistics for systems en-
gineering and development planning in the Depart-
ment of Defense. 
‘‘(2) SUPERVISION.—The official designated 
under paragraph (1) shall report directly to an offi-
cial of the Department appointed from civilian life 
by the President, by and with the advice and consent 
of the Senate.’’; 
(B) by redesignating paragraphs (4), (5), 
and (6) as paragraphs (3), (4), and (5), respec-
tively; 
(C) in paragraph (3), as so redesignated, 
by striking ‘‘DIRECTOR
OF
DEVELOPMENTAL 
TEST AND EVALUATION’’ and all that follows 
through ‘‘Director of Developmental Test And 
Evaluation’’ and inserting ‘‘DEVELOPMENTAL 
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TEST
AND
EVALUATION.—The official des-
ignated under paragraph (1) shall closely co-
ordinate with the official designated under sub-
section (a)’’; 
(D) in paragraph (4), as so redesignated, 
by striking ‘‘Director’’ in the matter preceding 
subparagraph (A) and inserting ‘‘official des-
ignated under paragraph (1)’’; and 
(E) in paragraph (5), as so redesignated— 
(i) by striking ‘‘Director shall’’ and 
inserting ‘‘official designated under para-
graph (1) shall’’; 
(ii) by striking ‘‘Director considers’’ 
and inserting ‘‘designated official con-
siders’’; and 
(iii) by striking ‘‘the Director’s du-
ties’’ and inserting ‘‘that official’s duties’’. 
(4) JOINT ANNUAL REPORT.—Subsection (c) of 
such section is amended in the matter preceding 
paragraph (1)— 
(A) by striking ‘‘beginning in 2010,’’; 
(B) by striking ‘‘Director of Developmental 
Test and Evaluation and the Director of Sys-
tems Engineering’’ and inserting ‘‘officials des-
ignated under subsections (a) and (b)’’; 
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(C) by striking ‘‘subsections (a) and (b)’’ 
and inserting ‘‘those subsections’’; and 
(D) by inserting ‘‘such’’ after ‘‘Each’’. 
(5) JOINT GUIDANCE.—Subsection (d) of such 
section is amended in the matter preceding para-
graph (1)— 
(A) by striking ‘‘Director of Developmental 
Test and Evaluation and the Director of Sys-
tems Engineering’’ and inserting ‘‘officials des-
ignated under subsections (a) and (b)’’; and 
(B) by striking ‘‘section 103 of the Weap-
on Systems Acquisition Reform Act of 2009’’ 
and inserting ‘‘section 2438a of this title’’. 
(6) REPEAL
OF
REDUNDANT
DEFINITION.— 
Subsection (e) of such section is repealed. 
(e) CODIFICATION OF SECTION 103 OF WEAPON SYS-
TEMS ACQUISITION REFORM ACT OF 2009.— 
(1) CODIFICATION.—Chapter 144 of title 10, 
United States Code, is amended by inserting after 
section 2438 (as transferred and redesignated by 
subsection (d)), a new section 2438a consisting of— 
(A) a section heading as follows: 
‘‘§ 2438a. Performance assessments and root cause 
analyses’’; 
and 
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(B) a text consisting of the text of section 
103 of the Weapon Systems Acquisition Reform 
Act of 2009 (Public Law 111–23; 123 Stat. 
1715; 10 U.S.C. 2430 note), modified as speci-
fied in paragraph (2). 
(2) TECHNICAL AMENDMENTS DUE TO CODI-
FICATION.—The modifications referred to in para-
graph (1)(B) to the text specified in that paragraph 
are— 
(A) in subsection (b)(2), by striking ‘‘sec-
tion 2433a(a)(1) of title 10, United States Code 
(as added by section 206(a) of this Act)’’ and 
inserting ‘‘section 2433a(a)(1) of this title’’; 
(B) in subsection (b)(5)— 
(i) by striking ‘‘section 2433a of title 
10, United States Code (as so added)’’ and 
inserting ‘‘section 2433a of this title’’; and 
(ii) by striking ‘‘prior to’’ both places 
it appears and inserting ‘‘before’’; 
(C) in subsection (d), by striking ‘‘section 
2433a of title 10, United States Code (as so 
added)’’ and inserting ‘‘section 2433a of this 
title’’; and 
(D) in subsection (f), by striking ‘‘begin-
ning in 2010,’’. 
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(f) TRANSFER OF SECTION PROVIDING FOR DIREC-
TOR OF SMALL BUSINESS PROGRAMS.—Section 144 of 
title 10, United States Code, is transferred to chapter 148, 
inserted after section 2507, and redesignated as section 
2508. 
(g) REPEAL OF STATUTORY REQUIREMENT FOR OF-
FICE
FOR
MISSING
PERSONNEL
IN
OSD.—Section 
1501(a) of title 10, United States Code, is amended— 
(1) by striking the subsection heading and in-
serting the following: ‘‘RESPONSIBILITY FOR MISS-
ING PERSONNEL.—’’; 
(2) in paragraph (1)— 
(A) by striking ‘‘establish within the Office 
of the Secretary of Defense an office to have re-
sponsibility for Department of Defense policy’’ 
in the first sentence and inserting ‘‘designate 
within the Office of the Secretary of Defense an 
official as the Deputy Assistant Secretary of 
Defense for Prisoner of War/Missing Personnel 
Affairs to have responsibility for Department of 
Defense matters’’; 
(B) by striking the second sentence; 
(C) by striking ‘‘of the office’’ and insert-
ing ‘‘of the official designated under this para-
graph’’; 
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(D) by striking ‘‘and’’ at the end of sub-
paragraph (A); 
(E) by redesignating subparagraph (B) as 
subparagraph (C); and 
(F) by inserting after subparagraph (A) 
the following new subparagraph (B): 
‘‘(B) policy, control, and oversight of the pro-
gram established under section 1509 of this title, as 
well as the accounting for missing persons (including 
locating, recovering, and identifying missing persons 
or their remains after hostilities have ceased); and’’; 
(3) by redesignating paragraphs (2), (3), (4), 
and (5) as paragraphs (3), (4), (5), and (6), respec-
tively; 
(4) by inserting after paragraph (1) the fol-
lowing new paragraph (2): 
‘‘(2) The official designated under paragraph 
(1) shall also serve as the Director, Defense Pris-
oner of War/Missing Personnel Office, as established 
under paragraph (6)(A), exercising authority, direc-
tion, and control over that activity.’’. 
(5) in paragraph (3), as so redesignated— 
(A) by striking ‘‘of the office’’ the first 
place it appears; and 
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(B) by striking ‘‘head of the office’’ and 
inserting ‘‘official designated under paragraph 
(1) and (2)’’; 
(6) in paragraph (4), as so redesignated— 
(A) by striking ‘‘office’’ and inserting ‘‘des-
ignated official’’; and 
(B) by inserting after ‘‘evasion)’’ the fol-
lowing: ‘‘and for personnel accounting (includ-
ing locating, recovering, and identifying missing 
persons or their remains after hostilities have 
ceased)’’; 
(7) in paragraph (5), as so redesignated, by 
striking ‘‘office’’ and inserting ‘‘designated official’’; 
and 
(8) in paragraph (6), as so redesignated— 
(A) in subparagraph (A)— 
(i) by inserting after ‘‘(A)’’ the fol-
lowing: ‘‘The Secretary of Defense shall es-
tablish an activity to account for personnel 
who are missing or whose remains have 
not been recovered from the conflict in 
which they were lost. This activity shall be 
known as the Defense Prisoner of War/ 
Missing Personnel Office.’’; and 
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‘‘official designated under subsection (a)(2)’’; 
and 
(B) by striking ‘‘Director’’ in paragraphs 
(2), (3), (4), and (5) and inserting ‘‘designated 
official’’; 
(3) in subsection (c), by striking ‘‘ADDITIONAL 
AUTHORITIES’’ and all that follows through ‘‘author-
ized to—’’ and inserting ‘‘ADDITIONAL DUTIES.— 
The official designated under subsection (a) shall— 
’’; and 
(4) in subsection (e), by striking ‘‘beginning 
with the budget for fiscal year 2009,’’. 
(i) REPEAL OF STATUTORY LIMITATION ON NUMBER 
OF DEPUTY UNDER SECRETARIES OF DEFENSE.—Sec-
tion 906(a)(2) of the National Defense Authorization Act 
for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 
2426; 10 U.S.C. 137a note) is repealed. 
(j) CONFORMING AMENDMENTS TO TITLE 10.—Title 
10, United States Code, is amended as follows: 
(1) The following sections are amended by 
striking ‘‘Director of Cost Assessment and Program 
Evaluation’’ and inserting ‘‘Assistant Secretary of 
Defense for Cost Assessment and Program Evalua-
tion’’: sections 181(d), 2306b(i)(1)(B), 2366a(a)(4), 
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2366a(a)(5), 
2366b(a)(1)(C), 
2433a(a)(2), 
2433a(b)(2)(C), 2434(b)(1)(A), and 2445c(f)(3). 
(2) Section 179(c) is amended— 
(A) by striking ‘‘Assistant to the Secretary 
of Defense for Nuclear and Chemical and Bio-
logical Defense Programs’’ in paragraphs (2) 
and (3) and inserting ‘‘Assistant Secretary of 
Defense for Nuclear, Chemical, and Biological 
Defense Programs’’; and 
(B) by striking ‘‘to the’’ in paragraph (3). 
(3) Section 2272 is amended by striking ‘‘Di-
rector of Defense Research and Engineering’’ each 
place it appears and inserting ‘‘Assistant Secretary 
of Defense for Research and Engineering’’. 
(4) Section 2334 is amended— 
(A) by striking ‘‘Director of Cost Assess-
ment and Program Evaluation’’ each place it 
appears and inserting ‘‘Assistant Secretary of 
Defense for Cost Assessment and Program 
Evaluation’’; and 
(B) by striking ‘‘Director’’ each place it 
appears (other than as specified in subpara-
graph (A)) and inserting ‘‘Assistant Secretary’’. 
(5) Section 2365 is amended— 
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(A) in subsection (a), by striking ‘‘Director 
of Defense Research and Engineering’’ and in-
serting ‘‘Assistant Secretary of Defense for Re-
search and Engineering’’; 
(B) in subsection (d)(1), by striking ‘‘Di-
rector’’ and inserting ‘‘Assistant Secretary’’; 
(C) in subsection (d)(2)— 
(i) by striking ‘‘Director of Defense 
Research and Engineering’’ and inserting 
‘‘Assistant Secretary of Defense for Re-
search and Engineering’’; and 
(ii) by striking ‘‘Director may’’ and 
inserting ‘‘Assistant Secretary may’’; and 
(D) in subsection (e), by striking ‘‘Direc-
tor’’ and inserting ‘‘Assistant Secretary’’. 
(6) 
Sections 
2350a(g)(3), 
2366b(a)(3)(D), 
2374a(a), and 2517(a) are amended by striking ‘‘Di-
rector of Defense Research and Engineering’’ and 
inserting ‘‘Assistant Secretary of Defense for Re-
search and Engineering’’. 
(7) Section 2902(b) is amended— 
(A) in paragraph (1), by striking ‘‘Deputy 
Under Secretary of Defense for Science and 
Technology’’ and inserting ‘‘official within the 
Office of the Assistant Secretary of Defense for 
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Research and Engineering who is responsible 
for science and technology’’; and 
(B) in paragraph (3), by striking ‘‘Deputy 
Under Secretary of Defense’’ and inserting ‘‘of-
ficial within the Office of the Under Secretary 
of Defense for Acquisition, Technology, and Lo-
gistics who is’’. 
(k) OTHER CONFORMING AMENDMENTS.— 
(1) Section 214 of the National Defense Au-
thorization Act of Fiscal Year 2008 (10 U.S.C. 2521 
note) is amended by striking ‘‘Director of Defense 
Research and Engineering’’ and inserting ‘‘Assistant 
Secretary of Defense for Research and Engineer-
ing’’. 
(2) Section 201(d) of the Weapon Systems Ac-
quisition Reform Act of 2009 (10 U.S.C. 181 note) 
is amended— 
(A) by striking ‘‘The Director of Cost As-
sessment and Program Evaluation’’ and insert-
ing ‘‘The Assistant Secretary of Defense for 
Cost Assessment and Program Evaluation’’; 
and 
(B) by striking ‘‘the Director’’ and insert-
ing ‘‘the Assistant Secretary’’. 
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(l) SECTION
HEADING
AND
CLERICAL
AMEND-
MENTS.— 
(1) SECTION
HEADING
AMENDMENTS.—Title 
10, United States Code, is amended as follows: 
(A) The heading of section 137a is amend-
ed to read as follows: 
‘‘§ 137a. Principal Deputy Under Secretaries of De-
fense’’. 
(B) The heading of section 138b, as trans-
ferred and redesignated by subsection (b)(6), is 
amended to read as follows: 
‘‘§ 138b. Assistant Secretary of Defense for Research 
and Engineering’’. 
(C) The heading of section 138c, as trans-
ferred and redesignated by subsection (b)(7), is 
amended to read as follows: 
‘‘§ 138c. Assistant Secretary of Defense for Oper-
ational Energy Plans and Programs’’. 
(D) The heading of section 138d, as trans-
ferred and redesignated by subsection (b)(8), is 
amended to read as follows: 
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