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SEC. 804. PILOT PROGRAM FOR THE USE OF INNOVATIVE 
INTELLECTUAL PROPERTY STRATEGIES. 
(a) IN GENERAL.—As soon as practicable, the Sec-
retary of each military department shall designate one ac-
quisition program within their service and the Under Sec-
retary of Defense for Acquisition and Sustainment shall 
designate one acquisition program within the Department 
of Defense Agencies and Field Activities for the use of inno-
vative intellectual property strategies in order to acquire 
the necessary technical data rights required for the oper-
ations and maintenance of that system. 
(b) BRIEFING REQUIREMENT.—Not later than 180 
days after the date of the enactment of this Act, the Under 
Secretary of Defense for Acquisition and Sustainment, in 
coordination with the Secretaries of the military depart-
ments, shall provide a briefing to the Committees on Armed 
Services of the Senate and the House of Representatives 
with a detailed plan to implement the requirements of this 
section. 
(c) ANNUAL REPORT.—Upon selection of the programs 
to be covered by this section and until the termination of 
this authority, the Under Secretary of Defense for Acquisi-
tion and Sustainment, in coordination with the Secretaries 
of the military departments, shall provide an annual report 
to the Committees on Armed Services of the Senate and the 
House of Representatives on the effectiveness of the pilot
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program in acquiring the data necessary to support timely, 
cost-effective maintenance and sustainment of the system 
and any recommendations for the applicability of lessons 
learned from this pilot program to future acquisition pro-
grams. 
(d) DEFINITIONS.—In this section: 
(1) DEPARTMENT OF DEFENSE AGENCIES AND 
FIELD ACTIVITIES.—The terms ‘‘Department of De-
fense Agency’’ and ‘‘Department of Defense Field Ac-
tivity’’ have the meanings given those terms in section 
101 of title 10, United States Code. 
(2) 
INNOVATIVE
INTELLECTUAL
PROPERTY 
STRATEGIES.—The 
term 
‘‘innovative 
intellectual 
property strategies’’ includes the following: 
(A) The use of an escrow account to verify 
and hold intellectual property data. 
(B) The use of royalties or licenses. 
(C) Other innovative strategies to acquire 
the necessary level of intellectual property and 
data rights to support the operations, mainte-
nance, installation, and training (OMIT) of the 
selected program. 
(e) SUNSET.—The authority to initiate a program 
under this section shall terminate on December 31, 2028.
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SEC. 805. FOCUSED COMMERCIAL SOLUTIONS OPENINGS 
OPPORTUNITIES. 
(a) REQUIREMENT.—The Secretary of Defense, in co-
ordination with the service acquisition executives of each 
military department, shall create not less than three new 
commercial solutions opening (CSO) opportunities pursu-
ant to section 3458 of title 10, United States Code, each 
fiscal year. Each such CSO opportunities shall be dedicated 
to addressing the mission needs and integrated priority lists 
of a single geographic combatant command. 
(b) EXECUTION.—In creating the CSO opportunities 
required under subsection (a), the Secretary of Defense 
shall— 
(1) assign the responsibility for issuing a CSO 
to a single military department, with a program ex-
ecutive officer from that military department assigned 
as lead; and 
(2) ensure that any program executive office 
(PEO) assignment should be made to align the needs 
of the CSO with a PEO that has similar existing re-
quirements and funding for transitioning technologies 
within the focus area. 
(c) SUNSET.—The requirement in subsection (a) shall 
expire on September 30, 2027.
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SEC. 806. STUDY ON REDUCING BARRIERS TO ACQUISITION 
OF COMMERCIAL PRODUCTS AND SERVICES. 
(a) IN GENERAL.—The Secretary of Defense, acting 
through the Under Secretary of Defense for Acquisition and 
Sustainment, shall conduct a study on the feasibility and 
advisability of— 
(1) establishing a default determination that 
products and services acquired by the Department of 
Defense are commercial and do not require commer-
cial determination as provided under section 3456 of 
title 10, United States Code; 
(2) establishing a requirement for non-commer-
cial determinations to be made for acquisitions to use 
procedures other than part 12 of the Federal Acquisi-
tion Regulation; and 
(3) mandating use of commercial procedures 
under part 12 of the Federal Acquisition Regulation 
unless a justification of non-commerciality is deter-
mined. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to the congressional defense committees a report on 
the findings of the study conducted under subsection (a). 
The report shall include specific findings with relevant data 
and proposed recommendations, including for any nec-
essary and desirable modifications to applicable statute for
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any changes the Department seeks to make regarding para-
graphs (1) through (3) of subsection (a). 
SEC. 807. SENSE OF THE SENATE ON INDEPENDENT COST 
ASSESSMENT. 
It is the sense of the Senate that— 
(1) to implement the National Defense Strategy, 
the Department of Defense requires thoughtful and 
thorough analysis to ensure efficient and effective use 
of each taxpayer dollar to inform tradeoff analysis 
that delivers the optimum portfolio of military capa-
bilities; 
(2) the Secretary of Defense requires timely, in-
sightful, and unbiased analysis on cost estimation for 
major defense acquisition programs; and 
(3) the Office of the Director of Cost Assessment 
and Program Evaluation supports implementation of 
the National Defense Strategy by— 
(A) providing insight into the costs of major 
defense acquisition programs and other tech-
nology development initiatives that enables re-
sponsible budgeting and proactive management 
decisions so that the Department can control 
cost, drive efficiency, and achieve savings; 
(B) ensuring that the cost estimation work-
force of the Department of Defense is using the
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most modern and realistic cost estimation meth-
odologies, tools, and tradecraft, including the col-
lection and distribution of data through the Cost 
Assessment Data Enterprise; and 
(C) providing timely review and oversight 
of cost estimates performed by the defense agen-
cies and military departments. 
SEC. 808. EMERGENCY ACQUISITION AUTHORITY FOR PUR-
POSES OF REPLENISHING UNITED STATES 
STOCKPILES. 
Section 3601(a)(1) of title 10, United States Code, is 
amended— 
(1) in subparagraph (A)(iv), by striking ‘‘; or’’ 
and inserting a semicolon; 
(2) in subparagraph (B), by striking the period 
at the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(C) for purposes of— 
‘‘(i) replenishing United States stock-
piles with like defense articles when those 
stockpiles are diminished as a result of the 
United States providing defense articles in 
response to an armed attack by a country 
of concern (as that term is defined in sec-
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† HR 2670 EAS 
tion 1(m) of the State Department Basic 
Authorities 
Act 
of 
1956 
(22 
U.S.C. 
2651a(m)) against— 
‘‘(I) a United States ally (as that 
term is defined in section 201(d) of the 
Act of December 2, 1942, entitled, ‘To 
provide benefits for the injury, dis-
ability, death, or enemy detention of 
employees of contractors with the 
United States, and for other purposes’ 
(56 Stat. 1028, chapter 668; 42 U.S.C. 
1711(d))); or 
‘‘(II) a United States partner; or 
‘‘(ii) contracting for the movement or 
delivery of defense articles transferred to 
such ally or partner through the President’s 
drawdown authorities in connection with 
such response, 
provided that the United States is not a party 
to the hostilities.’’.
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Subtitle B—Amendments to General 
Contracting Authorities, Proce-
dures, and Limitations 
SEC. 811. COMMANDER INITIATED RAPID CONTRACTING AC-
TIONS. 
(a) IN GENERAL.—The commander of a combatant 
command, upon providing a written determination to a 
supporting head (or heads) of contracting activity (HCA), 
may request emergency, rapid contracting response using 
special authorities described in subsection (b)— 
(1) in support of a contingency operation (as de-
fined in section 101(a) of title 10, United States 
Code); 
(2) to facilitate the defense against or recovery 
from cyber, nuclear, biological, chemical, or radio-
logical attack against the United States; 
(3) in support of a humanitarian or peace-
keeping operation (as the term is defined in section 
3015(2) of title 10, United States Code); and 
(4) for purposes of protecting the national secu-
rity interests of the United States during directed op-
erations that fall below the level of armed conflict. 
(b) APPLICABILITY.—In carrying out subsection (a), 
the HCA may utilize the following authorities to rapidly
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† HR 2670 EAS 
respond to time-sensitive or unplanned emergency situa-
tions: 
(1) For actions taken under subsection (a) in the 
case of a contract to be awarded and performed, or 
purchase to be made, in the United States, simplified 
procedures for a single contracting action may be 
used up to $15,000. 
(2) For actions taken under subsection (a) in the 
case of a contract to be awarded and performed, or 
purchase to be made, outside the United States, sim-
plified procedures for a single contracting action may 
be used up to $25,000. 
(3) For purposes of section 3205(a)(2) of title 10, 
United States Code, the applicable threshold is 
deemed to be $10,000,000. 
(4) The property or service being procured may 
be treated as a commercial product or a commercial 
service for the purpose of carrying out the procure-
ment. 
(c) DETERMINATION.—A written determination re-
quired under subsection (a) may be used to cover more than 
one requested action, and may be directed to more than one 
HCA, and shall include:
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† HR 2670 EAS 
(1) The rationale for initiating the request in ac-
cordance with paragraphs (1) though (4) of such sub-
section. 
(2) A description of the actions being requested 
of the HCA. 
(3) A declaration that funds are available for 
such requested contracting support. 
(d) SUNSET.—The authority under subsection (a) shall 
terminate on September 30, 2028. 
(e) ANNUAL REPORT.—Not later than January 15, 
2025, and annually thereafter for four years, the Chairman 
of the Joint Chiefs of Staff, in coordination with the Under 
Secretary of Defense for Acquisition and Sustainment, shall 
provide a report to the congressional defense committees on 
the use of the authority under this section for the previous 
fiscal year. The report shall include a summary of each in-
stance of the authority being used, including— 
(1) the combatant command initiating the action 
or actions; 
(2) the supporting HCA or HCAs; and 
(3) the specific actions requested, including the 
contract performer and value of contracting action.
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† HR 2670 EAS 
SEC. 812. EXTENSION AND REVISIONS TO NEVER CON-
TRACT WITH THE ENEMY. 
(a) IN GENERAL.—Section 841 of the Carl Levin and 
Howard P. ‘‘Buck’’ McKeon National Defense Authoriza-
tion Act for Fiscal Year 2015 (Public Law 113–291; 10 
U.S.C. 4871 note prec.) is amended— 
(1) by striking the section heading and inserting 
‘‘THREAT
MITIGATION
IN
COMMERCIAL
SUP-
PORT TO OPERATIONS’’; 
(2) in subsection (a)— 
(A) by striking the subsection heading and 
inserting ‘‘PROGRAM ESTABLISHED’’; 
(B) by striking ‘‘and in consultation with 
the Secretary of State’’ and all that follows 
through the period at the end and inserting ‘‘and 
the Secretary of State, establish a program to en-
able combatant commanders to identify and 
manage risks introduced by covered persons and 
entities providing commercial support to mili-
tary operations. The Secretary of Defense shall 
publish policy establishing this program with re-
sponsibilities for program execution and over-
sight and procedures for use of available intel-
ligence, security, and law enforcement informa-
tion to identify threats and employment of a 
range of strategies, including the covered pro-
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† HR 2670 EAS 
curement actions described in this section, to 
manage risks posed by covered persons and enti-
ties that are engaged in covered activities.’’; 
(3) by amending subsection (b) to read as fol-
lows: 
‘‘(b) AUTHORITY.— 
‘‘(1) IDENTIFICATION.—The combatant com-
mander shall identify covered persons or entities en-
gaged in covered activities through the program estab-
lished under subsection (a). Upon identification of a 
covered person or entity, combatant commanders, or 
their designated deputies, shall notify and provide ra-
tionale for such an identification to the Under Sec-
retary of Defense for Acquisition and Sustainment, 
the Under Secretary of Defense for Intelligence and 
Security, and the Under Secretary of Defense for Pol-
icy. 
‘‘(2) COVERED PROCUREMENT ACTIONS.— 
‘‘(A) IN
GENERAL.—The head of a con-
tracting activity may exercise a covered procure-
ment action on a covered persons or entity. 
‘‘(B) LIMITATION
ON
COVERED
PROCURE-
MENT ACTIONS.—The head of a contracting ac-
tivity may exercise a covered procurement action 
only after receiving a notification and rec-
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ommendation from the Under Secretary of De-
fense for Acquisition and Sustainment, based on 
a risk assessment by the identifying combatant 
commander, that states that— 
‘‘(i) the person or entity identified by 
the combatant commander meets the criteria 
for a covered person or entity and was or 
is actively engaged in one or more covered 
activities; and 
‘‘(ii) less intrusive measures are not 
reasonably available to manage the risk.’’; 
(4) by amending subsection (c) to read as fol-
lows: 
‘‘(c) NOTIFICATION TO COVERED PERSON OR ENTI-
TY.— 
‘‘(1) ADVANCE
NOTICE.—Contracting activities 
shall notify covered persons and entities through cov-
ered solicitations and contracts, grants, or cooperative 
agreements of the following matters: 
‘‘(A) The program established under sub-
section (a). 
‘‘(B) The authorities established under sub-
section (b).
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‘‘(C) The responsibilities of covered persons 
or entities to exercise due diligence to mitigate 
their engagement in covered activities. 
‘‘(2) NOTICE
OF
COVERED
PROCUREMENT
AC-
TIONS.— 
‘‘(A) IN GENERAL.—Upon exercising a cov-
ered procurement action, the head of a con-
tracting activity shall notify the covered person 
or entity of the action. The covered person or en-
tity shall be permitted the opportunity to chal-
lenge the covered procurement action by request-
ing an administrative review of the action under 
the procedures of the Department of Defense not 
later than 30 days after receipt of notice of the 
action. 
‘‘(B) LIMITATION ON DISCLOSURE OF IN-
FORMATION.—Full disclosure of information to a 
covered person or entity justifying an identifica-
tion made under subsection (b)(1) or a covered 
procurement action need not be provided when 
such a disclosure would compromise national se-
curity or would pose an unacceptable threat to 
personnel of the United States or partners and 
allies.
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† HR 2670 EAS 
‘‘(C) PROTECTION OF CLASSIFIED INFORMA-
TION.—Classified information relied upon to ex-
ercise a covered procurement action may not be 
disclosed to a covered person or entity, or to 
their representatives, unless a protective order 
issued by a court of competent jurisdiction estab-
lished under article I or article III of the Con-
stitution of the United States specifically ad-
dresses the conditions under which such classified 
information may be disclosed.’’; 
(5) by amending subsection (d) to read as fol-
lows: 
‘‘(d) COVERED PROCUREMENT ACTION REPORTING.— 
All covered procurement actions shall be reported to the 
Under 
Secretary 
of 
Defense 
for 
Acquisition 
and 
Sustainment and reported in the Federal Awardee Perform-
ance and Integrity Information System (FAPIIS) or other 
formal systems or record. Exclusions shall also be reported 
in the System for Award Management (SAM).’’; 
(6) by amending subsection (e) to read as fol-
lows: 
‘‘(e) ANNUAL REVIEW.—The Secretary of Defense, in 
coordination with the Director of National Intelligence and 
the Secretary of State, shall, on an annual basis, review 
the lists of persons and entities having been subject to a
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† HR 2670 EAS 
covered procurement action under subsection (b)(2) to deter-
mine whether or not such persons and entities continue to 
warrant use of the covered procurement action.’’; 
(7) by amending subsection (f) to read as follows: 
‘‘(f) WAIVER.—The Secretary of Defense, in conjunc-
tion with the Secretary of State, may grant a waiver for 
actions taken under subsection (b) if it is in the best interest 
of national security.’’; 
(8) by amending subsection (g) to read as fol-
lows: 
‘‘(g) DELEGATION
OF AUTHORITY.—The authority 
provided by subsection (b) to make a determination to use 
a covered procurement action, in whole or in part, may 
not be delegated below the level of head of contracting activ-
ity, or equivalent official for purposes of grants or coopera-
tive agreements.’’; 
(9) by amending subsection (h) to read as fol-
lows: 
‘‘(h) UPDATING REGULATIONS.—The Federal Acquisi-
tion Regulation and the Defense Federal Acquisition Regu-
lation Supplement shall be revised to implement the provi-
sions of this subtitle.’’; 
(10) in subsection (i)— 
(A) in paragraph (1)—
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† HR 2670 EAS 
(i) by striking ‘‘Director of the Office 
of Management and Budget’’ and inserting 
‘‘Secretary of Defense’’; 
(ii) by striking ‘‘appropriate commit-
tees of Congress’’ and inserting ‘‘congres-
sional defense committees’’; 
(iii) in subparagraph (A)— 
(I) by striking ‘‘an executive 
agency exercised the authority to ter-
minate, void, or restrict a contract, 
grant, and cooperative agreement pur-
suant to subsection (c), based on a no-
tification under subsection (b)’’ and 
inserting ‘‘a head of contracting activ-
ity exercised a covered procurement ac-
tion’’; 
(II) in clause (i) by striking ‘‘ex-
ecutive agency’’ and inserting ‘‘head of 
contracting activity’’; 
(III) in clause (ii), by striking 
‘‘the action taken’’ and inserting ‘‘exer-
cising the covered procurement action’’; 
(IV) in clause (iii), by striking 
‘‘voided or terminated’’ and inserting
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† HR 2670 EAS 
‘‘subject to the covered procurement ac-
tion’’; and 
(V) in clause (iv)— 
(aa) by striking ‘‘executive 
agency in force’’ and inserting 
‘‘Department of Defense has’’ and 
(bb) by striking ‘‘concerned 
at the time the contract, grant, or 
cooperative agreement was termi-
nated or voided’’ and replacing 
with ‘‘at the time of exercise of the 
covered procurement action’’; and 
(iv) in subparagraph (B)— 
(I) by striking ‘‘an executive 
agency did not exercise the authority to 
terminate, void, or restrict a contract, 
grant, and cooperative agreement pur-
suant to subsection (c), based on a no-
tification under subsection (b)’’ and 
inserting ‘‘a head of contracting activ-
ity did not exercise a covered procure-
ment action following an identification 
from a combatant commander’’;
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† HR 2670 EAS 
partment of Defense, including any subcontractors or sub-
grantees, to the extent necessary to support the program es-
tablished under section 841 of this Act. 
‘‘(b) LIMITATION.—The examination authorized under 
subsection (a) may only take place after a written deter-
mination is made by the contracting officer, informed by 
a finding from the combatant commander, stating that this 
examination will support the program established under 
such section 841, and less intrusive measures are not rea-
sonably available to manage the risk.’’. 
(c) DEFINITIONS.—Section 843 of the Carl Levin and 
Howard P. ‘‘Buck’’ McKeon National Defense Authoriza-
tion Act for Fiscal Year 2015 is amended— 
(1) by striking paragraphs (1), (2), (3), (4), (7), 
and (9) and redesignating paragraphs (5), (6), and 
(8) as paragraphs (2), (3), and (6); 
(2) by inserting before paragraph (2), as redesig-
nated by paragraph (1) of this section, the following 
new paragraph: 
‘‘(1) COVERED ACTIVITIES.—The term ‘covered 
activities’ means activities where a covered person or 
entity is— 
‘‘(A) engaging in acts of violence against 
personnel of the United States or partners and 
allies;
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† HR 2670 EAS 
‘‘(B) providing financing, logistics, train-
ing, or intelligence to a person described in sub-
paragraph (A); 
‘‘(C) engaging in foreign intelligence activi-
ties against the United States or partners and 
allies; 
‘‘(D) engaging in transnational organized 
crime or criminal activities; or 
‘‘(E) engaging in other activities that 
present a direct or indirect risk to United States 
or partner and allied missions and forces.’’; 
(3) in paragraph (2), as so redesignated, by 
striking ‘‘with an estimated value in excess of $50,000 
that is performed outside the United States, including 
its territories and possessions, in support’’ and all 
that follows through the period at the end and insert-
ing ‘‘that is performed outside the United States, in-
cluding its territories and possessions.’’; 
(4) by amending paragraph (3), as so redesig-
nated, to read as follows: 
‘‘(3) COVERED PERSON OR ENTITY.—The term 
‘covered person or entity’ means any person, corpora-
tion, company, limited liability company, limited 
partnership, business trust, business association, or 
other similar entity outside of the United States or
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† HR 2670 EAS 
any foreign reporting company in accordance with 
section 5336(a)(11)(A)(ii) of title 31, United States 
Code, that is responding to a covered solicitation or 
performing work on a covered contract, grant, or co-
operative agreement.’’; and 
(5) by inserting after paragraph (3), as so redes-
ignated, the following new paragraphs: 
‘‘(4) COVERED
PROCUREMENT
ACTION.—The 
term ‘covered procurement action’means an action 
taken by a head of contracting activity to— 
‘‘(A) exclude a person or commercial entity 
from award with or without an existing con-
tract, grant, or cooperative agreement; 
‘‘(B) terminate an existing contract, grant, 
or cooperative agreement for default; or 
‘‘(C) void in whole or in part an existing 
contract, grant, or cooperative agreement. 
‘‘(5) COVERED SOLICITATION.—The term ‘covered 
solicitation’ means any Department of Defense solici-
tation for work for which the place of performance is 
outside of the United States.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall take effect not later than 180 days after the 
enactment of this Act, and shall apply to covered solicita-
tions issued and covered contracts, grants, or cooperative
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† HR 2670 EAS 
agreements (as that term is defined in section 843 of the 
Carl Levin and Howard P. ‘‘Buck’’ McKeon National De-
fense Authorization Act for Fiscal Year 2015, as amended 
by subsection (c)) awarded on or after such date, and to 
task and delivery orders that have been issued on or after 
such date pursuant to covered contracts, grants, or coopera-
tive agreements that are awarded before, on, or after such 
date. 
SEC. 813. ENHANCEMENT OF DEPARTMENT OF DEFENSE 
CAPABILITIES 
TO 
PREVENT 
CONTRACTOR 
FRAUD. 
(a) WITHHOLDING
OF CONTRACTUAL PAYMENTS.— 
Subsection (a) of section 4651 of title 10, United States 
Code, is amended— 
(1) in paragraph (1), by striking ‘‘; and’’ and 
inserting a semicolon; 
(2) in paragraph (2)— 
(A) by striking ‘‘clause (1)’’ and inserting 
‘‘paragraph (1)’’; and 
(B) by striking ‘‘at least three, but not more 
than 10, as determined by the Secretary or his 
designee, times the cost incurred by the con-
tractor in giving gratuities to the officer, official, 
or employee concerned.’’ and inserting ‘‘of up to 
10 percent of the total contract award amount;’’;
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† HR 2670 EAS 
(3) by inserting after paragraph (2) the fol-
lowing new paragraphs: 
‘‘(3) with respect to a contract that could have 
been terminated under paragraph (1) but for the com-
pletion of performance of the contract, the United 
States is entitled to exemplary damages as set forth 
in paragraph (2); and 
‘‘(4) the Secretary of Defense or the Secretary of 
a military department may, after providing notice to 
the contractor and pending the determination con-
cerning exemplary damages referred to in paragraph 
(2), withhold from payments otherwise due to the con-
tractor under any contract between the contractor and 
the United States an amount not to exceed 10 percent 
of the total contract award amount.’’; and 
(4) in the matter following paragraph (4), as 
added by paragraph (3) of this subsection, by striking 
‘‘clause (1)’’ and inserting ‘‘paragraph (1)’’. 
(b) BURDEN OF PROOF.—Paragraph (1) of section 
4651(a) of title 10, United States Code, as amended by sub-
section (a) of this section, is further amended by inserting 
‘‘and by a preponderance of the evidence’’ after ‘‘after notice 
and hearing’’.
338 
† HR 2670 EAS 
SEC. 814. MODIFICATION OF APPROVAL AUTHORITY FOR 
HIGH DOLLAR OTHER TRANSACTION AGREE-
MENTS FOR PROTOTYPES. 
(a) AMENDMENTS RELATING TO AUTHORITY.—Section 
4022(a)(2)(C)(i)(I) of title 10, United States Code, is 
amended by inserting after ‘‘subsection (d)’’ the following: 
‘‘were met for the prior transaction for the prototype project 
that provided for the award of the follow-on production con-
tract or transaction, and the requirements of subsection 
(f)’’. 
(b) AMENDMENT RELATING TO APPROPRIATE USE OF 
AUTHORITY.—Section 4022(d) of such title is amended by 
adding at the end the following new paragraph: 
‘‘(3) The requirements of this subsection do not apply 
to follow-on production contracts or transactions under sub-
section (f).’’. 
SEC. 815. MODIFICATIONS TO EARNED VALUE MANAGE-
MENT SYSTEM REQUIREMENTS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Under Secretary for 
Acquisition and Sustainment shall update appropriate 
policies related to Earned Value Management (EVM) as fol-
lows: 
(1) Update subpart 234.2 of the Defense Federal 
Acquisition Regulation Supplement (DFARS) to ex-
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† HR 2670 EAS 
empt all software contracts and subcontracts from 
EVM requirements. 
(2) Update sections 234.201, 234.203, 252.234– 
7001, and 252.242–7002 of the DFARS— 
(A) to increase contract value thresholds as-
sociated with requiring EVM on cost or incentive 
contracts from $20,000,000 to $50,000,000; and 
(B) to increase the contract value threshold 
for the contractor to use an EVM System from 
$50,000,000 to $100,000,000. 
(b) IMPLEMENTATION.—If the Under Secretary of De-
fense for Acquisition and Sustainment is unable to update 
the regulations specified in subsection (a) before the dead-
line specified in such subsection, the Under Secretary of De-
fense for Acquisition and Sustainment shall providing to 
the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representa-
tives a briefing explaining the timeline for implementation. 
SEC. 816. INVENTORY OF INFLATION AND ESCALATION IN-
DICES. 
(a) INVENTORY REQUIRED.— 
(1) IN GENERAL.—Not later than September 30, 
2024, the Under Secretary of Defense for Acquisition 
and Sustainment, in coordination with the Service 
Acquisition Executives, shall conduct an inventory of
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† HR 2670 EAS 
inflation and escalation indices currently used for 
contracting and pricing purposes across the Depart-
ment and make the inventory available as a resource 
for all government and industry contracting and 
pricing professionals. 
(2) ELEMENTS.—The inventory required under 
paragraph (1)— 
(A) shall include indices used for products 
and indices used for services, including accessi-
bility instructions; 
(B) may include relevant indices derived 
from or leveraged by commercial, academic, or 
nongovernmental sources; and 
(C) shall separately identify indices for 
which the Department of Defense purchases ac-
cess. 
(b) ASSESSMENT.—As part of the inventory required 
under subsection (a), the Under Secretary of Defense for Ac-
quisition and Sustainment shall also conduct an assessment 
of the available inflation and escalation indices in order 
to determine— 
(1) gaps in any available indices where identi-
fication or development of new indices may be nec-
essary; and
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† HR 2670 EAS 
(2) in instances where there are multiple indices 
being used— 
(A) whether consolidation on a single index 
or smaller subset of indices is possible or advis-
able; and 
(B) whether commercial, academic, or non-
governmental indices have any comparative ben-
efit or advantage over governmental sources. 
(c) PERIODIC UPDATES.—The Under Secretary of De-
fense for Acquisition and Sustainment shall periodically, 
and not less than once every 5 years, review and update 
the inventory required under subsection (a). 
(d) GUIDANCE.—Not later than March 30, 2025, the 
Under 
Secretary 
of 
Defense 
for 
Acquisition 
and 
Sustainment, in coordination with the Service Acquisition 
Executives, shall issue guidance providing for the consistent 
application and maintenance of data included in the inven-
tory required under subsection (a) for use by government 
contracting and pricing personnel. 
SEC. 817. PILOT PROGRAM TO INCENTIVIZE PROGRESS PAY-
MENTS. 
(a) PILOT PROGRAM.—The Under Secretary of Defense 
for Acquisition and Sustainment shall establish and imple-
ment a pilot program to incentivize large business concerns 
awarded Department of Defense contracts to qualify for
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progress payments up to 10 percentage points higher than 
the standard progress payment rate. 
(b) INCENTIVES.—The Under Secretary for Acquisi-
tion and Sustainment shall establish clear and measurable 
criteria to provide for the payment to contractors of higher 
progress payments as described in subsection (a), including 
meeting one or more of the following criteria: 
(1) Adherence to delivery dates for contract end 
items and contract data requirement lists or compli-
ance with the performance milestone schedule during 
the preceding fiscal year. 
(2) The lack of any open level III or IV correc-
tive action requests. 
(3) Acceptability of the contractor’s business sys-
tems without significant deficiencies. 
(4) Meeting small business subcontracting goals 
during the preceding fiscal year. 
(c) REPORT.—The Under Secretary for Acquisition 
and Sustainment shall submit to the Committees on Armed 
Services of the Senate and House of Representatives an an-
nual report on the implementation of the pilot program es-
tablished under subsection (a), including a comprehensive 
list of contractors and the contracts that received the in-
creased progress payments. 
(d) DEFINITIONS.—In this section:
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(1) STANDARD PROGRESS PAYMENT RATE.—The 
term ‘‘standard progress payment rate’’ refers to the 
rate of progress payments provided for under section 
3804 of title 10, United States Code, and payable in 
accordance with the applicable provisions of the Fed-
eral Acquisition Regulation and the Defense Federal 
Acquisition Regulation Supplement. 
(2) LARGE
BUSINESS
CONCERNS.—The term 
‘‘large business concerns’’ means a business concern 
that exceeds the small business size code standards es-
tablished by the Small Business Administration as set 
forth in part 121 of title 13, Code of Federal Regula-
tions. 
(e) SUNSET.—The authority to carry out the pilot pro-
gram established under subsection (a) shall terminate on 
January 1, 2026. 
SEC. 818. EXTENSION OF PILOT PROGRAM TO ACCELERATE 
CONTRACTING AND PRICING PROCESSES. 
Section 890 of the John S. McCain National Defense 
Authorization Act for Fiscal Year 2019 (Public Law 115– 
232), as most recently amended by section 818 of the James 
M. Inhofe National Defense Authorization Act for Fiscal 
Year 2023, is further amended in subsection (c) by striking 
‘‘January 2, 2024’’ and inserting ‘‘January 2, 2028’’.
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SEC. 819. PREVENTING CONFLICTS OF INTEREST FOR DE-
PARTMENT OF DEFENSE CONSULTANTS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Secretary of Defense shall 
amend the Defense Federal Acquisition Regulation— 
(1) to require any entity that provides the serv-
ices described in North American Industry Classifica-
tion System (NAICS) code 5416, prior to entering 
into the Department of Defense contract, to certify 
that— 
(A) neither the entity nor any of its subsidi-
aries or affiliates hold a contract with one or 
more covered foreign entities; or 
(B) the entity maintains a Conflict of In-
terest Mitigation Surveillance Plan described 
under subsection (b) that is auditable by contract 
oversight entities; and 
(2) to restrict Department of Defense contracts 
from being awarded to an entity that provides the 
services described under the NAICS code 5416, if the 
entity or any of its subsidiaries or affiliates are deter-
mined, based on the self-certification required under 
paragraph (1) or other information, to be a con-
tractor of, or otherwise providing services to, a cov-
ered foreign entity unless such contractor maintains
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an enforceable Conflict of Interest Mitigation Surveil-
lance Plan. 
(b) CONFLICT
OF INTEREST MITIGATION SURVEIL-
LANCE PLAN.—Contractors that are unable to certify under 
subsection (a)(1)(A) that neither they nor any of their sub-
sidiaries or affiliates hold a contract with one or more cov-
ered foreign entities shall maintain a Conflict of Interest 
Mitigation Surveillance Plan that is updated annually and 
shall be provided to applicable contract oversight entities 
upon request. The plan shall include— 
(1) identification of the contracts with the cov-
ered foreign entity (or entities) including the specific 
entity, the dollar value of the contract, and the spe-
cific personnel working on the contract; 
(2) mitigation measures being taken to prevent 
conflicts of interest (corporately as well as for indi-
viduals working on the contract) that might arise by 
also supporting Department of Defense contracts; and 
(3) notification procedures to the contract over-
sight entities within 15 days of determining an un-
mitigated conflict of interest has arisen. 
(c) WAIVER.—The Secretary of Defense, or designee, 
shall have the authority to waive conflicts of interest restric-
tions under subsection (a) on a case-by-case basis as may 
be necessary to continue contracting for certain national
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security requirements. The Secretary of Defense may not 
delegate such authority to an official below the level of a 
Presidentially appointed, Senate-confirmed official. 
(d) WAIVER NOTIFICATION.—Not later than 30 days 
after issuing a waiver under subsection (c) of this section, 
the Secretary of Defense shall provide a written notification 
to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representa-
tives regarding the use of such waiver authority. The notifi-
cation shall include— 
(1) the specific justification for providing the 
waiver; 
(2) the covered foreign entity with which the 
waiver recipient is working which gives rise to the 
conflict of interest; 
(3) the number of bidders on a contract on which 
the waiver was required; 
(4) the number of bidders on a contract for 
which a waiver would not have been required to have 
been issued; and 
(5) the total dollar value of the contract. 
(e) DEFINITIONS.—In this section: 
(1) COVERED FOREIGN ENTITY.—The term ‘‘cov-
ered foreign entity’’ means any of the following:
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† HR 2670 EAS 
(A) The Government of the People’s Repub-
lic of China, any Chinese state-owned entity, or 
other entity under the ownership, or control, di-
rectly or indirectly, of the Government of the 
People’s Republic of China or the Chinese Com-
munist Party that is engaged in one or more na-
tional security industries. 
(B) The Government of the Russian Federa-
tion, any Russian state-owned entity, or any en-
tity sanctioned by the Secretary of the Treasury 
under Executive Order 13662 titled ‘‘Blocking 
Property of Additional Persons Contributing to 
the Situation in Ukraine’’(79 Fed. Reg. 16169). 
(C) The government or any state-owned en-
tity of any country if the Secretary of State de-
termines that such government has repeatedly 
provided support for acts of international ter-
rorism pursuant to— 
(i) section 1754(c)(1)(A) of the Export 
Control Reform Act of 2018 (50 U.S.C. 
4318(c)(1)(A)); 
(ii) section 620A of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2371); 
(iii) section 40 of the Arms Export 
Control Act (22 U.S.C. 2780); or
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† HR 2670 EAS 
(iv) any other provision of law. 
(D) Any entity included on any of the fol-
lowing lists maintained by the Department of 
Commerce: 
(i) The Entity List set forth in Supple-
ment No. 4 to part 744 of the Export Ad-
ministration Regulations. 
(ii) The Denied Persons List as de-
scribed in section 764.3(a)(2) of the Export 
Administration Regulations. 
(iii) The Unverified List set forth in 
Supplement No. 6 to part 744 of the Export 
Administration Regulations. 
(iv) The Military End User List set 
forth in Supplement No. 7 to part 744 of 
the Export Administration Regulations. 
(2) CONTRACT OVERSIGHT ENTITIES.—The term 
‘‘contract oversight entities’’ means any of the fol-
lowing: 
(A) The contracting officer. 
(B) The contracting officer representative. 
(C) The Defense Contract Management 
Agency. 
(D) The Defense Contract Audit Agency.
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(E) The Office of Inspector General (OIG) 
of the Department of Defense or any subcompo-
nent of OIG. 
(F) The Government Accountability Office. 
SEC. 820. PROHIBITION ON REQUIRING DEFENSE CONTRAC-
TORS TO PROVIDE INFORMATION RELATING 
TO GREENHOUSE GAS EMISSIONS. 
(a) DEFINITIONS.—In this section: 
(1) GREENHOUSE GAS.—The term ‘‘greenhouse 
gas’’ means— 
(A) carbon dioxide; 
(B) methane; 
(C) nitrous oxide; 
(D) nitrogen trifluoride; 
(E) hydrofluorocarbons; 
(F) perfluorcarbons; or 
(G) sulfur hexafluoride. 
(2) GREENHOUSE
GAS
INVENTORY.—The term 
‘‘greenhouse gas inventory’’ means a quantified list of 
an entity’s annual greenhouse gas emissions. 
(3) NONTRADITIONAL DEFENSE CONTRACTOR.— 
The term ‘‘nontraditional defense contractor’’ has the 
meaning given the term in section 3014 of title 10, 
United States Code. 
(b) PROHIBITION ON DISCLOSURE REQUIREMENTS.—
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† HR 2670 EAS 
(1) NONTRADITIONAL DEFENSE CONTRACTORS.— 
The Secretary of Defense may not require any non-
traditional defense contractor recipient of a defense 
contract to provide a greenhouse gas inventory or to 
provide any other report on greenhouse gas emissions. 
(2) OTHER
THAN
NONTRADITIONAL
DEFENSE 
CONTRACTORS.—During the two-year period begin-
ning on the date of the enactment of this Act, the Sec-
retary of Defense may not require any other than 
nontraditional defense contractor recipient of a de-
fense contract to provide a greenhouse gas inventory 
or to provide any other report on greenhouse gas 
emissions. 
SEC. 821. PROHIBITION ON CONTRACTS FOR THE PROVI-
SION OF ONLINE TUTORING SERVICES BY EN-
TITIES OWNED BY THE PEOPLE’S REPUBLIC 
OF CHINA. 
(a) IN GENERAL.—The Secretary of Defense may not, 
on or after the date of the enactment of this Act, enter into 
or renew a contract for the provision of online tutoring serv-
ices by an entity owned or controlled by the Government 
of the People’s Republic of China. 
(b) WAIVER.— 
(1) IN GENERAL.—The Secretary may waive the 
prohibition under subsection (a).
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† HR 2670 EAS 
(2) NONDELEGATION.—The Secretary may not 
delegate the authority to issue a waiver under para-
graph (1). 
SEC. 822. MODIFICATION OF TRUTHFUL COST OR PRICING 
DATA SUBMISSIONS AND REPORT. 
Section 3705(b)(2)(B) of title 10, United States Code, 
is amended by striking ‘‘should-cost analysis.’’ and all that 
follows through ‘‘past performance.’’ and inserting ‘‘should- 
cost analysis and shall identify such offerors that incur a 
delay greater than 200 days in submitting such cost or pric-
ing data. The Secretary of Defense shall include a public 
notation on such offerors.’’. 
SEC. 823. REPEAL OF BONAFIDE OFFICE RULE FOR 8(A) 
CONTRACTS WITH THE DEPARTMENT OF DE-
FENSE. 
Section 8(a)(11) of the Small Business Act (15 U.S.C. 
637(a)(11)) is amended— 
(1) by inserting ‘‘(A)’’ before ‘‘To the max-
imum’’; and 
(2) by adding at the end the following: 
‘‘(B) Subparagraph (A) shall not apply with re-
spect to a contract entered into under this subsection 
with the Department of Defense.’’.
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Subtitle C—Industrial Base Matters 
SEC. 831. DEFENSE INDUSTRIAL BASE ADVANCED CAPA-
BILITIES PILOT PROGRAM. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—The Under Secretary of De-
fense for Acquisition and Sustainment shall carry out 
a pilot program through a public-private partnership 
to accelerate the scaling, production, and acquisition 
of advanced defense capabilities determined by the 
Under Secretary to be critical to the national security 
by creating incentives for investment in domestic 
small businesses or nontraditional businesses to create 
a robust and resilient defense industrial base. 
(2) GOALS.—The goals of the public-private 
partnership pilot program are as follows: 
(A) To bolster the defense industrial base 
through acquisition and deployment of advanced 
capabilities necessary to field Department of De-
fense modernization programs and priorities. 
(B) To strengthen domestic defense supply 
chain resilience and capacity by investing in in-
novative defense companies. 
(C) To leverage private equity capital to ac-
celerate domestic defense scaling, production, and 
manufacturing.
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† HR 2670 EAS 
(b) PUBLIC-PRIVATE PARTNERSHIPS.— 
(1) IN
GENERAL.—In carrying out subsection 
(a), the Under Secretary shall enter into one or more 
public-private 
partnerships, 
consistent 
with 
the 
phased implementation provided for in subsection (e), 
with for-profit persons using the criteria set forth in 
paragraph (2). 
(2) CRITERIA.—The Under Secretary shall estab-
lish criteria for entering into one or more public-pri-
vate partnerships and shall submit to the congres-
sional defense committees such criteria, which shall 
not take effect for the purposes of entering into any 
agreement until 30 days after submission. 
(3) OPERATING AGREEMENT.—The Under Sec-
retary and a person or persons with whom the Under 
Secretary enters a partnership under paragraph (1) 
shall enter into an operating agreement that sets forth 
the roles, responsibilities, authorities, reporting re-
quirements, term, and governance framework for the 
partnership and its operations. Such operating agree-
ments may not take effect until 30 days after they 
have been submitted to the congressional defense com-
mittees. 
(c) INVESTMENT OF EQUITY.—
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† HR 2670 EAS 
(1) IN
GENERAL.—Pursuant to public-private 
partnerships entered into under subsection (b), a per-
son or persons with whom the Under Secretary has 
entered into a partnership may invest equity in do-
mestic small businesses or nontraditional businesses 
consistent with subsection (a), with investments se-
lected based on technical merit, economic value, and 
the Department’s modernization priorities. The part-
nership shall require investment in not less than 10 
businesses, with no business representing greater than 
20 percent of total investment and no capability area 
exceeding 40 percent of total investment 
(2) AUTHORITIES.—A person or persons de-
scribed in paragraph (1) shall have sole authority to 
operate, manage, and invest. 
(d) LOAN GUARANTEE.— 
(1) IN GENERAL.—Pursuant to the authority es-
tablished under ƒsection ll≈ the Under Secretary 
shall provide an up to 80 percent loan guarantee, 
pursuant to the public-private partnerships entered 
into under subsection (b), with investment of equity 
that qualifies under subsection (c) and consistent with 
the goals set forth under subsection (a)(2). 
(2) PILOT
PROGRAM
AUTHORITY.—The tem-
porary loan guarantee authority described under
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† HR 2670 EAS 
paragraph (1) is exclusively for the public-private 
partnerships authorized under this section and may 
not be utilized for other programs or purposes. 
(3) SUBJECT TO OPERATING AGREEMENT.—The 
loan guarantee under paragraph (1) shall be subject 
to the operating agreement entered into under sub-
section (b)(3). 
(4) USE OF FUNDS.—Obligations incurred by the 
Under Secretary under this paragraph shall be sub-
ject to the availability of funds provided in advance 
specifically for the purpose of such loan guarantees. 
(e) PHASED IMPLEMENTATION SCHEDULE AND RE-
QUIRED REPORTS AND BRIEFINGS.—The program estab-
lished under subsection (a) shall be carried out in two 
phases as follows: 
(1) PHASE 1.— 
(A) IN GENERAL.—Phase 1 shall consist of 
an initial pilot program with one public-private 
partnership, consistent with subsection (b), to as-
sess the feasibility and advisability of expanding 
the scope of the program. The Under Secretary 
shall begin implementation of phase 1 not later 
than 180 days after the date of the enactment of 
this Act.
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† HR 2670 EAS 
(B) 
IMPLEMENTATION
SCHEDULE
AND 
FRAMEWORK.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary 
shall submit an implementation plan to the con-
gressional defense committees on the design of 
phase 1. The plan shall include— 
(i) an overview of, and the activities 
undertaken, to execute the public-private 
partnership; 
(ii) a description of the advanced ca-
pabilities and defense industrial base areas 
under consideration for investment; 
(iii) an overview of the operating 
agreement described in subsection (b)(3); 
and 
(iv) implementation milestones and 
metrics. 
(C) REPORT
AND
BRIEFING
REQUIRED.— 
Not later than 27 months after the date of the 
enactment of this Act, the Secretary shall provide 
to the congressional defense committees a report 
and briefing on the implementation of this sec-
tion and the feasibility and advisability of ex-
panding the scope of the pilot program. The re-
port and briefing shall include, at minimum—
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† HR 2670 EAS 
(i) an overview of program perform-
ance, and implementation and execution 
milestones and outcomes; 
(ii) an overview of progress in— 
(I) achieving new products in 
production aligned with Department of 
Defense needs; 
(II) scaling businesses aligned to 
targeted industrial base and capability 
areas; 
(III) generating defense industrial 
base job growth; 
(IV) increasing supply chain re-
silience and capacity; and 
(V) enhancing competition on ad-
vanced capability programs; 
(iii) an accounting of activities under-
taken and outline of the opportunities and 
benefits of expanding the scope of the pilot 
program; and 
(iv) a recommendation by the Sec-
retary regarding the feasibility and desir-
ability of expanding the pilot program. 
(2) PHASE 2.—
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† HR 2670 EAS 
(A) IN
GENERAL.—Not later than 30 
months after the date of the enactment of this 
Act, the Secretary may expand the scope of the 
phase 1 pilot program with the ability to in-
crease to not more than three public-private 
partnerships, consistent with subsection (b). 
(B) REPORT AND BRIEFING REQUIRED.— 
Not later than five years after the date of the en-
actment of this Act, the Secretary shall provide 
to the congressional defense committees a report 
and briefing on the outcomes of the pilot pro-
gram under subsection (a), including the ele-
ments described in paragraph (1)(C), and the 
feasibility and advisability of making the pro-
gram permanent. 
(f) TERMINATION.—The authority to enter into an 
agreement to carry out the pilot program under subsection 
(a) shall terminate on the date that is five years after the 
date of the enactment of this Act. 
(g) DEFINITIONS.—In this section: 
(1) DOMESTIC BUSINESS.—The term ‘‘domestic 
business’’ has the meaning given the term ‘‘U.S. busi-
ness’’ in section 800.252 of title 31, Code of Federal 
Regulations, or successor regulation.
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† HR 2670 EAS 
(2) DOMESTIC SMALL BUSINESSES OR NONTRADI-
TIONAL
BUSINESSES.—The term ‘‘domestic small 
businesses or nontraditional businesses’’ means— 
(A) a small business that is a domestic 
business; or 
(B) a nontraditional business that is a do-
mestic business. 
(3) 
NONTRADITIONAL
BUSINESS.—The 
term 
‘‘nontraditional business’’ has the meaning given the 
term ‘‘nontraditional defense contractor’’ in section 
3014 of title 10, United States Code. 
(4) SMALL BUSINESS.—The term ‘‘small busi-
ness’’ has the meaning given the term ‘‘small business 
concern’’ in section 3 of the Small Business Act (15 
U.S.C. 632). 
SEC. 832. DEPARTMENT OF DEFENSE NOTIFICATION OF 
CERTAIN TRANSACTIONS. 
(a) IN GENERAL.—The parties to a covered trans-
action required to file the notification and provide supple-
mentary information to the Department of Justice or the 
Federal Trade Commission under section 7A of the Clayton 
Act (15 U.S.C. 18a) shall concurrently provide such infor-
mation to the Department of Defense during the waiting 
period under section 7A of the Clayton Act (15 U.S.C. 18a). 
(b) DEFINITIONS.—In this section:
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† HR 2670 EAS 
(1) COVERED TRANSACTION.—The term ‘‘covered 
transaction’’ means an actual or proposed merger, ac-
quisition, joint venture, strategic alliance, or invest-
ment— 
(A) for which the parties are required to file 
a notification under section 7A of the Clayton 
Act (15 U.S.C. 18a); and 
(B) any party to which is, owns, or controls 
a major defense supplier. 
(2) MAJOR
DEFENSE
SUPPLIER.—The term 
‘‘major defense supplier’’ means— 
(A) a current prime contractor of a major 
defense acquisition program as defined in chap-
ter 201 of title 10, United States Code; 
(B) a current prime contractor of a middle 
tier acquisition as defined pursuant to section 
804 of the National Defense Authorization Act 
for Fiscal Year 2016 (Public Law 114–92; 129 
Stat. 882); 
(C) a current prime contractor of a software 
acquisition program described under section 800 
of the National Defense Authorization Act for 
Fiscal Year 2020 (Public Law 116–92; 133 Stat. 
1478);
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† HR 2670 EAS 
(D) a current prime contractor of a defense 
business system as defined in section 2222 of 
title 10, United States Code; or 
(E) a current prime contractor of a service 
contract with the Department of Defense, as de-
fined in part 237 of the Defense Federal Acquisi-
tion Regulation Supplement, above the sim-
plified acquisition threshold. 
SEC. 833. ANALYSES OF CERTAIN ACTIVITIES FOR ACTION 
TO ADDRESS SOURCING AND INDUSTRIAL CA-
PACITY. 
(a) ANALYSIS REQUIRED.— 
(1) IN GENERAL.—The Secretary of Defense, act-
ing through the Under Secretary of Defense for Acqui-
sition and Sustainment and other appropriate offi-
cials, shall review the items under subsection (c) to 
determine and develop appropriate actions, consistent 
with the policies, programs, and activities required 
under subpart I of part V of subtitle A of title 10, 
United States Code, chapter 83 of title 41, United 
States Code, and the Defense Production Act of 1950 
(50 U.S.C. 4501 et seq.), including— 
(A) restricting procurement, with appro-
priate waivers for cost, emergency requirements,
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† HR 2670 EAS 
and non-availability of suppliers, including re-
stricting procurement to— 
(i) suppliers in the United States; 
(ii) suppliers in the national tech-
nology and industrial base (as defined in 
section 4801 of title 10, United States 
Code); 
(iii) suppliers in other allied nations; 
or 
(iv) other suppliers; 
(B) increasing investment through use of re-
search and development or procurement activi-
ties and acquisition authorities to— 
(i) expand production capacity; 
(ii) diversify sources of supply; or 
(iii) promote alternative approaches 
for addressing military requirements; 
(C) prohibiting procurement from selected 
sources or nations; 
(D) taking a combination of actions de-
scribed under subparagraphs (A), (B), and (C); 
or 
(E) taking no action. 
(2) CONSIDERATIONS.—The analyses conducted 
pursuant to paragraph (1) shall consider national se-
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† HR 2670 EAS 
curity, economic, and treaty implications, as well as 
impacts on current and potential suppliers of goods 
and services. 
(b) REPORTING ON ANALYSES, RECOMMENDATIONS, 
AND ACTIONS.— 
(1) BRIEFING REQUIRED.—Not later than Janu-
ary 15, 2025, the Secretary of Defense shall submit to 
the congressional defense committees, in writing— 
(A) a summary of the findings of the anal-
yses undertaken for each item pursuant to sub-
section (a); 
(B) relevant recommendations resulting 
from the analyses; and 
(C) descriptions of specific activities under-
taken as a result of the analyses, including 
schedule and resources allocated for any planned 
actions. 
(2) REPORTING.—The Secretary of Defense shall 
include the analyses conducted under subsection (a), 
and any relevant recommendations and descriptions 
of activities resulting from such analyses, as appro-
priate, in each of the following during the 2025 cal-
endar year:
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† HR 2670 EAS 
(A) The annual report or quarterly brief-
ings to Congress required under section 4814 of 
title 10, United States Code. 
(B) The annual report on unfunded prior-
ities of the national technology and industrial 
base required under section 4815 of such title. 
(C) Department of Defense technology and 
industrial base policy guidance prescribed under 
section 4811(c) of such title. 
(D) Activities to modernize acquisition 
processes to ensure the integrity of the industrial 
base pursuant to section 4819 of such title. 
(E) Defense memoranda of understanding 
and related agreements considered in accordance 
with section 4851 of such title. 
(F) Industrial base or acquisition policy 
changes. 
(G) Legislative proposals for changes to rel-
evant statutes which the Department shall con-
sider, develop, and submit to the Committees on 
Armed Services of the Senate and the House of 
Representatives not less frequently than once per 
fiscal year. 
(H) Other actions as the Secretary of De-
fense determines appropriate.
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† HR 2670 EAS 
(c) LIST OF GOODS AND SERVICES FOR ANALYSES, 
RECOMMENDATIONS, AND ACTIONS.—The items described 
in this subsection are the following: 
(1) Traveling Wave Tubes and Traveling Wave 
Tube Amplifiers. 
SEC. 834. PILOT PROGRAM ON CAPITAL ASSISTANCE TO 
SUPPORT DEFENSE INVESTMENT IN THE IN-
DUSTRIAL BASE. 
(a) IN GENERAL.—The Secretary of Defense may 
carry out a pilot program under this section to use capital 
assistance to support the duties and elements of sections 901 
and 907. 
(b) ELIGIBILITY AND APPLICATION PROCESS.— 
(1) IN GENERAL.—An eligible entity seeking cap-
ital assistance for an eligible investment under this 
section shall submit to the Secretary of Defense an 
application at such time, in such manner, and con-
taining such information as the Secretary may re-
quire. 
(2) SELECTION
OF
INVESTMENTS.—The Sec-
retary shall establish criteria for selecting among eli-
gible investments for which applications are sub-
mitted under subsection (c)(2). The criteria shall in-
clude—
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† HR 2670 EAS 
(A) the extent to which an investment sup-
ports the national security of the United States; 
(B) the likelihood that capital assistance 
provided for an investment would enable the in-
vestment to proceed sooner than the investment 
would otherwise be able to proceed; and 
(C) the creditworthiness of an investment. 
(c) CAPITAL ASSISTANCE.— 
(1) LOANS AND LOAN GUARANTEES.— 
(A) IN GENERAL.—The Secretary may pro-
vide loans or loan guarantees to finance or refi-
nance the costs of an eligible investment selected 
pursuant to subsection (b)(2). 
(B) ADMINISTRATION OF LOANS.— 
(i) INTEREST RATE.— 
(I) IN GENERAL.—Except as pro-
vided under subclause (II), the interest 
rate on a loan provided under sub-
paragraph (A) shall be not less than 
the yield on marketable United States 
Treasury securities of a similar matu-
rity to the maturity of the loan on the 
date of execution of the loan agreement. 
(II) EXCEPTION.—The Secretary 
may waive the requirement under sub-
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† HR 2670 EAS 
clause (I) with respect to an invest-
ment if the investment is determined 
by the Secretary of Defense to be vital 
to the national security of the United 
States. 
(III) CRITERIA.—The Secretary 
shall establish separate and distinct 
criteria for interest rates for loan guar-
antees with private sector lending in-
stitutions. 
(ii) FINAL MATURITY DATE.—The final 
maturity date of a loan provided under sub-
paragraph (A) shall be not later than 50 
years after the date of substantial comple-
tion of the investment for which the loan 
was provided. 
(iii) PREPAYMENT.—A loan provided 
under subparagraph (A) may be paid ear-
lier than is provided for under the loan 
agreement without a penalty. 
(iv) NONSUBORDINATION.— 
(I) IN
GENERAL.—A loan pro-
vided under subparagraph (A) shall 
not be subordinated to the claims of 
any holder of investment obligations in
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† HR 2670 EAS 
the event of bankruptcy, insolvency, or 
liquidation of the obligor. 
(II) EXCEPTION.—The Secretary 
may waive the requirement under sub-
clause (I) with respect to the invest-
ment in order to mitigate risks to loan 
repayment. 
(v) SALE
OF
LOANS.—The Secretary 
may sell to another entity or reoffer into the 
capital markets a loan provided under sub-
paragraph (A) if the Secretary determines 
that the sale or reoffering can be made on 
favorable terms. 
(vi) LOAN
GUARANTEES.—Any loan 
guarantee provided under subparagraph (A) 
shall specify the percentage of the principal 
amount guaranteed. If the Secretary deter-
mines that the holder of a loan guaranteed 
by the Department of Defense defaults on 
the loan, the Secretary shall pay the holder 
as specified in the loan guarantee agree-
ment. 
(vii) INVESTMENT-GRADE
RATING.— 
The Secretary shall establish a credit rating 
system to ensure a reasonable reassurance of
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† HR 2670 EAS 
repayment. The system may include use of 
existing credit rating agencies where appro-
priate. 
(viii) TERMS AND CONDITIONS.—Loans 
and loan guarantees provided under sub-
paragraph (A) shall be subject to such other 
terms and conditions and contain such 
other covenants, representations, warranties, 
and requirements (including requirements 
for audits) as the Secretary determines ap-
propriate. 
(ix) 
APPLICABILITY
OF
FEDERAL 
CREDIT REFORM ACT OF 1990.—Loans and 
loan guarantees provided under subpara-
graph (A) shall be subject to the require-
ments of the Federal Credit Reform Act of 
1990 (2 U.S.C. 661 et seq.). 
(2) EQUITY INVESTMENTS.— 
(A) IN GENERAL.—The Secretary may, as a 
minority investor, support an eligible investment 
selected pursuant to subsection (b)(2) with funds 
or use other mechanisms for the purpose of pur-
chasing, and may make and fund commitments 
to purchase, invest in, make pledges in respect of, 
or otherwise acquire, equity or quasi-equity secu-
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† HR 2670 EAS 
rities (such as warrants), or shares or financial 
interests of the eligible entity receiving support 
for the eligible investment, including as a limited 
partner or other investor in investment funds, 
upon such terms and conditions as the Secretary 
may determine. 
(B) SALES
AND
LIQUIDATION
OF
POSI-
TION.—The Secretary shall seek to sell and liq-
uidate any support for an investment provided 
under subparagraph (A) as soon as commercially 
feasible, commensurate with other similar inves-
tors in the investment and taking into consider-
ation the national security interests of the 
United States. 
(3) TECHNICAL ASSISTANCE.—Subjection to Ap-
propriations acts, the Secretary may provide tech-
nical assistance with respect to developing and fi-
nancing investments to eligible entities seeking cap-
ital assistance for eligible investments and eligible en-
tities receiving capital assistance under this section. 
(4) TERMS AND CONDITIONS.— 
(A) AMOUNT OF CAPITAL ASSISTANCE.—The 
Secretary shall provide to an eligible investment 
selected pursuant to subsection (b)(2) the amount
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of assistance necessary to carry out the invest-
ment. 
(B) USE OF UNITED STATES DOLLARS.—All 
financial transactions conducted under this sec-
tion shall be conducted in United States dollars. 
(d) ESTABLISHMENT OF ACCOUNTS.— 
(1) CREDIT PROGRAM ACCOUNT.— 
(A) ESTABLISHMENT.—There is established 
in the Treasury of the United States a Depart-
ment of Defense Credit Program Account to exe-
cute loans and loan guarantees in accordance 
with section 502 of the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661a). 
(B) FUNDING.—The Credit Program Ac-
count shall consist of amounts appropriated pur-
suant to the authorization of appropriations and 
fees collected pursuant to subparagraph (C). 
(C) FEE AUTHORITY.—The Secretary may 
charge and collect fees for providing capital as-
sistance in amounts to be determined by the Sec-
retary. The Secretary shall establish the amount 
of such fees in regulations at an amount suffi-
cient to cover but not exceed the administrative 
costs to the Office of providing capital assistance. 
(2) EQUITY ACCOUNT.—
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† HR 2670 EAS 
(A) ESTABLISHMENT.—There is established 
in the Treasury of the United States a Depart-
ment of Defense Strategic Capital Equity Ac-
count. 
(B) FUNDING.—The Strategic Capital Eq-
uity Account shall consist of all amounts appro-
priated pursuant to the authorization of appro-
priations. 
(3) USE OF FUNDS.—Subject to appropriations 
Acts, the Secretary is authorized to pay, from the De-
partment of Defense Credit Program Account or the 
Department of Defense Strategic Capital Equity Ac-
count— 
(A) the cost, as defined in section 502 of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 
661a), of loans and loan guarantees and other 
capital assistance; 
(B) administrative expenses associated with 
activities under this section; 
(C) project-specific transaction costs; 
(D) the cost of providing support authorized 
by this section; and 
(E) the costs of equity investments. 
(e) REGULATIONS.—The Secretary of Defense shall 
prescribe such regulations as are necessary to carry out this
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† HR 2670 EAS 
section. The Secretary may not exercise the authorities 
available under this section until such time as these regula-
tions have been issued and adopted by the Department. 
(f) ANNUAL REPORT.—Not later than the first Monday 
in February of a fiscal year, the Secretary of Defense shall 
submit to the congressional defense committees an annual 
report describing activities carried out pursuant to this sec-
tion in the preceding fiscal year and the goals of the De-
partment of Defense in accordance with this section for the 
next fiscal year. 
(g) NOTIFICATION REQUIREMENT.—The Secretary of 
Defense shall notify the congressional defense committees 
not later than 30 days after a use of loans, loan guarantees, 
equity investments, insurance, or reinsurance under this 
section. 
(h) SUNSET.—The authorities provided under this sec-
tion shall expire on October 1, 2028. 
(i) DEFINITIONS.—In this section: 
(1) CAPITAL
ASSISTANCE.—The term ‘‘capital 
assistance’’ means loans, loan guarantees, equity in-
vestments, insurance and reinsurance, or technical as-
sistance provided under subsection (c). 
(2) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) an individual;
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† HR 2670 EAS 
(B) a corporation, including a limited li-
ability corporation; 
(C) a partnership, including a public-pri-
vate, limited, or general partnership; 
(D) a joint venture, including a strategic 
alliance; 
(E) a trust; 
(F) a State of the United States, including 
a political subdivision or any other instrumen-
tality of a State; 
(G) a Tribal government or consortium of 
Tribal governments; 
(H) any other governmental entity or pub-
lic agency in the United States, including a spe-
cial purpose district or public authority, includ-
ing a port authority; or 
(I) a multi-State or multi-jurisdictional 
group of public entities within the United States. 
(3) ELIGIBLE INVESTMENT.—The term ‘‘eligible 
investment’’ means an investment that facilitates the 
efforts of the Office— 
(A) to identify, accelerate, and sustain the 
establishment, research, development, construc-
tion, procurement, leasing, consolidation, alter-
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† HR 2670 EAS 
ation, improvement, or repair of tangible and 
intangible assets vital to national security; or 
(B) to protect vital tangible and intangible 
assets from theft, acquisition, and transfer by 
adversaries of the United States. 
(4) OBLIGOR.—The term ‘‘obligor’’ means a 
party that is primarily liable for payment of the 
principal of or interest on a loan. 
SEC. 835. REQUIREMENT TO BUY CERTAIN SATELLITE COM-
PONENTS 
FROM 
NATIONAL 
TECHNOLOGY 
AND INDUSTRIAL BASE. 
(a) IN GENERAL.—Section 4864(a) of title 10, United 
States Code, is amended by adding at the end the following 
new paragraph: 
‘‘(6) TRAVELING-WAVE
TUBE
AND
TRAVELING 
WAVE TUBE AMPLIFIERS.—A traveling-wave tube and 
traveling wave tube amplifier, that meets established 
technical and reliability requirements, used in a sat-
ellite weighing more than 400 pounds whose principle 
purpose is to support the national security, defense, 
or intelligence needs of the United States Govern-
ment.’’. 
(b) EXCEPTION.—Paragraph (6) of section 4864(a) of 
title 10, United States Code, as added by subsection (a), 
shall not apply with respect to programs that received Mile-
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† HR 2670 EAS 
stone A approval (as defined in section 2431a of such title) 
before October 1, 2022. 
(c) CLARIFICATION
OF DELEGATION AUTHORITY.— 
Subject to subsection (i) of section 4864 of title 10, United 
States Code, the Secretary of Defense may delegate to a serv-
ice acquisition executive the authority to make a waiver 
under subsection (d) of such section with respect to the limi-
tation under subsection (a)(6) of such section, as added by 
subsection (a) of this section. 
SEC. 836. SENSE OF CONGRESS RELATING TO RUBBER SUP-
PLY. 
It is the sense of Congress that— 
(1) the Department of Defense should take all 
appropriate action to lessen the dependence of the 
Armed Forces on adversarial nations for the procure-
ment of strategic and critical materials, and that one 
such material in short supply according to the most 
recent report from Defense Logistics Agency Strategic 
Material is natural rubber, undermining our national 
security and jeopardizing the military’s ability to 
rely on a stable source of natural rubber for tire man-
ufacturing and production of other goods; and 
(2) the Secretary of Defense should take all ap-
propriate action, pursuant with the authority pro-
vided by the Strategic and Critical Materials Stock
377 
† HR 2670 EAS 
Piling Act (50 U.S.C. 98a et seq.) to engage in activi-
ties that may include stockpiling, but shall also in-
clude research and development aspects for increasing 
the domestic supply of natural rubber. 
Subtitle D—Small Business Matters 
SEC. 841. AMENDMENTS TO DEFENSE RESEARCH AND DE-
VELOPMENT RAPID INNOVATION PROGRAM. 
Section 4061 of title 10, United States Code, is amend-
ed— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
(i) by inserting ‘‘to enable and assist 
small businesses’’ after ‘‘merit-based pro-
gram’’; 
(ii) by striking ‘‘fielding of tech-
nologies’’ and inserting ‘‘commercialization 
of various technologies, including critical 
technologies’’; and 
(iii) by inserting ‘‘capabilities devel-
oped through competitively awarded proto-
type agreements’’ after ‘‘defense labora-
tories,’’; and 
(B) in paragraph (2), by inserting ‘‘support 
full-scale integration,’’ after ‘‘evaluation out-
comes,’’;
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† HR 2670 EAS 
(2) in subsection (b)— 
(A) in paragraph (1), by inserting ‘‘pri-
marily major defense acquisition programs, but 
also other’’ after ‘‘candidate proposals in support 
of’’; and 
(B) in paragraph (2), by striking ‘‘by each 
military department’’ and inserting ‘‘by each 
component small business office of each military 
department’’; and 
(3) 
in 
subsection 
(d)(2), 
by 
striking 
‘‘$3,000,000’’ and inserting ‘‘$6,000,000’’. 
SEC. 842. DEPARTMENT OF DEFENSE MENTOR-PROTE´ GE´  
PROGRAM. 
Section 4902(e) of title 10, United States Code, is 
amended— 
(1) in paragraph (1), by redesignating subpara-
graphs (A) through (D) as clauses (i) through (iv), re-
spectively; 
(2) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively; 
(3) by striking ‘‘Before providing assistance’’ 
and inserting ‘‘(1) Before providing assistance’’; and 
(4) by adding at the end the following new para-
graph:
379 
† HR 2670 EAS 
‘‘(2) An agreement under this subsection may be a con-
tract, cooperative agreement, or a partnership intermediary 
agreement.’’. 
SEC. 843. CONSIDERATION OF THE PAST PERFORMANCE OF 
AFFILIATE 
COMPANIES 
OF 
SMALL 
BUSI-
NESSES. 
Not later than July 1, 2024, the Secretary of Defense 
shall amend section 215.305 of the Defense Federal Acquisi-
tion Supplement (or any successor regulation) to require 
that when small business concerns bid on Department of 
Defense contracts, the past performance evaluation and 
source selection processes shall consider, if relevant, the past 
performance information of affiliate companies of the small 
business concerns. 
SEC. 844. TIMELY PAYMENTS FOR DEPARTMENT OF DE-
FENSE SMALL BUSINESS SUBCONTRACTORS. 
(a) REDUCTION IN TIME FOR CONTRACTOR EXPLA-
NATION AND PAST PERFORMANCE CONSIDERATION OF UN-
JUSTIFIED WITHHOLDING OF PAYMENTS TO DEPARTMENT 
OF DEFENSE SMALL BUSINESS SUBCONTRACTORS.—Sec-
tion 8(d)(13)(B)(i) of the Small Business Act (15 U.S.C. 
637(d)(13)(B)(i)) is amended by inserting ‘‘, or, for a cov-
ered contract awarded by the Department of Defense, more 
than 30 days past due,’’ after ‘‘90 days past due’’.
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† HR 2670 EAS 
(b) CLARIFICATION THAT CONTRACTING OFFICERS OF 
THE DEPARTMENT
OF DEFENSE ARE AUTHORIZED
TO 
ENTER OR MODIFY PAST PERFORMANCE INFORMATION RE-
LATED TO UNJUSTIFIED NON-PAYMENT OR REDUCED PAY-
MENT BEFORE OR AFTER CONTRACT CLOSE-OUT.—Section 
8(d)(13)(C) of the Small Business Act (15 U.S.C. 
637(d)(13)(C)) is amended— 
(1) by striking ‘‘A contracting officer’’ and in-
serting the following: 
‘‘(i) IN GENERAL.—A contracting offi-
cer’’; and 
(2) by adding at the end the following: 
‘‘(ii) PAST
PERFORMANCE
INFORMA-
TION
FOR
DOD
CONTRACTS.—The con-
tracting officer for a covered contract 
awarded by the Department of Defense may 
enter or modify past performance informa-
tion of the prime contractor in connection 
with the unjustified failure to make a full 
or timely payment to a subcontractor before 
or after close-out of the covered contract.’’. 
(c) DUTY OF COOPERATION TO CORRECT AND MITI-
GATE UNJUSTIFIED FAILURE BY DEPARTMENT OF DE-
FENSE PRIME CONTRACTORS TO MAKE FULL OR TIMELY
381 
† HR 2670 EAS 
PAYMENTS TO SUBCONTRACTORS.—Section 8(d)(13) of the 
Small Business Act (15 U.S.C. 637(d)(13)) is amended— 
(1) by redesignating subparagraph (E) as sub-
paragraph (F); 
(2) by inserting after subparagraph (D) the fol-
lowing: 
‘‘(E) COOPERATION ON DOD CONTRACTS.— 
‘‘(i) IN GENERAL.—If a contracting of-
ficer of the Department of Defense deter-
mines, with respect to a prime contractor’s 
past performance, that there was an un-
justified failure by the prime contractor on 
a covered contract awarded by the Depart-
ment of Defense to make a full or timely 
payment to a subcontractor covered by sub-
paragraph (B) or (C), such prime con-
tractor is required to cooperate with the 
contracting officer, who shall consult with 
the Director of Small Business Programs or 
Director of Small and Disadvantaged Busi-
ness Utilization acting pursuant to section 
15(k)(6) and other representatives of the De-
partment of Defense, with regards to cor-
recting and mitigating such unjustified fail-
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† HR 2670 EAS 
ure to make a full or timely payment to the 
subcontractor. 
‘‘(ii) PERIOD.—The duty of coopera-
tion under this subparagraph continues 
until the subcontractor is made whole or the 
contracting officer’s determination is no 
longer effective, and regardless of perform-
ance or close-out status of the covered con-
tract.’’; and 
(3) in subparagraph (D), by striking ‘‘subpara-
graph (E)’’ and inserting ‘‘subparagraph (F)’’. 
(d) APPLICABILITY.—The amendments made by this 
section shall apply to any covered contract (as defined in 
section 8(d)(13)(A) of the Small Business Act (15 U.S.C. 
637(d)(13)(A)) that is entered into or modified by the De-
partment of Defense on or after the date of enactment of 
this Act. 
SEC. 845. EXTENSION OF PILOT PROGRAM FOR STREAM-
LINED TECHNOLOGY TRANSITION FROM THE 
SBIR AND STTR PROGRAMS OF THE DEPART-
MENT OF DEFENSE. 
Section 1710(e) of the National Defense Authorization 
Act for Fiscal Year 2018 (Public Law 115–91) is amended 
by striking ‘‘September 30, 2023’’ and inserting ‘‘September 
30, 2028’’.
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† HR 2670 EAS 
SEC. 846. ANNUAL REPORTS REGARDING THE SBIR PRO-
GRAM OF THE DEPARTMENT OF DEFENSE. 
Section 279(a) of the William M. (Mac) Thornberry 
National Defense Authorization Act for Fiscal Year 2021 
(Public Law 116–283; 134 Stat. 3507) is amended by strik-
ing ‘‘each fiscal years 2021, 2022, and 2023’’ and replacing 
with ‘‘each fiscal year through fiscal year 2028’’. 
SEC. 847. MODIFICATIONS TO THE PROCUREMENT TECH-
NICAL ASSISTANCE PROGRAM. 
(a) DEFINITIONS.—Section 4951 of title 10, United 
States Code, is amended— 
(1) in paragraph (1)(C), by striking ‘‘private, 
nonprofit organization’’ and inserting ‘‘nonprofit or-
ganization’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(5) The term ‘business entity’ means a corpora-
tion, association, partnership, limited liability com-
pany, limited liability partnership, consortia, not-for- 
profit, or other legal entity.’’. 
(b) COOPERATIVE AGREEMENTS.—Section 4954 of title 
10, United States Code, is amended— 
(1) in subsection (b)— 
(A) by redesignating paragraphs (1) and 
(2) as subparagraphs (A) and (B); 
(B) by inserting ‘‘(1)’’ before ‘‘Under’’; and
384 
† HR 2670 EAS 
(C) by adding at the end the following new 
paragraph: 
‘‘(2) The Secretary shall have the ability to waive or 
modify the percentages specified in paragraph (1), on a 
case-by-case basis, if the Secretary determines that it would 
be in the best interest of the program.’’; 
(2) by striking subsection (c) and redesignating 
subsections (d), (e), and (f) as subsections (e), (f), and 
(h); and 
(3) by inserting after subsection (f), as redesig-
nated by paragraph (2), the following new subsection: 
‘‘(g) WAIVER OF GOVERNMENT COST SHARE RESTRIC-
TION.—If the Secretary of Defense determines it to be in 
the best interests of the Federal Government, the Secretary 
may waive the restrictions on the percentage of eligible costs 
covered by the program under section (b). The Secretary 
shall submit to the congressional defense committees a writ-
ten justification for such determination.’’. 
(c) AUTHORITY
TO PROVIDE CERTAIN TYPES
OF 
TECHNICAL ASSISTANCE.—Section 4958(c) of title 10, 
United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘; and’’ and 
inserting a semicolon; 
(2) in paragraph (2), by striking the period at 
the end and inserting ‘‘; and’’; and
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† HR 2670 EAS 
(3) by adding at the end the following new para-
graphs: 
‘‘(3) under clause 252.204–7012 of the Defense 
Acquisition Regulation Supplement, or any successor 
regulation, and on compliance with those require-
ments (and any successor requirements); and 
‘‘(4) under section 847 of the National Defense 
Authorization Act for Fiscal Year 2020 (Public Law 
116–92; 133 Stat. 1505), and on compliance with 
those requirements (and any such successor require-
ments).’’. 
SEC. 848. EXTENSION OF PILOT PROGRAM TO INCENTIVIZE 
CONTRACTING 
WITH 
EMPLOYEE-OWNED 
BUSINESSES. 
Section 874 of the National Defense Authorization Act 
for Fiscal Year 2022 (Public Law 117–81; 10 U.S.C. 3204 
note) is amended— 
(1) in subsection (b)— 
(A) in paragraph (1), by inserting ‘‘and 
prescribe regulations’’ after ‘‘establish a pilot 
program’’; and 
(B) in paragraph (3), by striking ‘‘A quali-
fied’’ and inserting ‘‘Each contract held by a 
qualified’’;
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† HR 2670 EAS 
(2) in subsection (c)(2), by striking ‘‘expended on 
subcontracts, subject to such necessary and reasonable 
waivers’’ and inserting the following: ‘‘expended on 
subcontracts, except— 
‘‘(A) to the extent subcontracted amounts 
exceeding 50 percent are subcontracted to other 
qualified businesses wholly-owned through an 
Employee Stock Ownership Plan; 
‘‘(B) in the case of contracts for products, to 
the extent subcontracted amounts exceeding 50 
percent are for materials not available from an-
other qualified business wholly-owned through an 
Employee Stock Ownership Plan; or 
‘‘(C) pursuant to such necessary and rea-
sonable waivers’’; and 
(3) in subsection (e), by striking ‘‘five years 
after’’ and inserting ‘‘eight years after’’. 
SEC. 849. ELIMINATING SELF-CERTIFICATION FOR SERVICE- 
DISABLED 
VETERAN-OWNED 
SMALL 
BUSI-
NESSES. 
(a) DEFINITIONS.—In this section: 
(1) 
ADMINISTRATOR.—The 
term 
‘‘Adminis-
trator’’ means the Administrator of the Small Busi-
ness Administration.
387 
† HR 2670 EAS 
(2) SMALL BUSINESS CONCERN; SMALL BUSINESS 
CONCERNS OWNED AND CONTROLLED BY SERVICE-DIS-
ABLED VETERANS.—The terms ‘‘small business con-
cern’’ and ‘‘small business concerns owned and con-
trolled by service-disabled veterans’’ have the mean-
ings given those terms in section 3 of the Small Busi-
ness Act (15 U.S.C. 632). 
(b) ELIMINATING SELF-CERTIFICATION IN PRIME CON-
TRACTING AND SUBCONTRACTING FOR SDVOSBS.— 
(1) IN GENERAL.—Each prime contract award 
and subcontract award that is counted for the purpose 
of meeting the goals for participation by small busi-
ness concerns owned and controlled by service-disabled 
veterans in procurement contracts for Federal agen-
cies, as established in section 15(g)(2) of the Small 
Business Act (15 U.S.C. 644(g)(2)), shall be entered 
into with small business concerns certified by the Ad-
ministrator as small business concerns owned and 
controlled by service-disabled veterans under section 
36 of such Act (15 U.S.C. 657f). 
(2) EFFECTIVE DATE.—Paragraph (1) shall take 
effect on October 1 of the fiscal year beginning after 
the Administrator promulgates the regulations re-
quired under subsection (d).
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† HR 2670 EAS 
(c) PHASED APPROACH TO ELIMINATING SELF-CER-
TIFICATION FOR SDVOSBS.—Notwithstanding any other 
provision of law, any small business concern that self-cer-
tified as a small business concern owned and controlled by 
service-disabled veterans may— 
(1) if the small business concern files a certifi-
cation application with the Administrator before the 
end of the 1-year period beginning on the date of en-
actment of this Act, maintain such self-certification 
until the Administrator makes a determination with 
respect to such certification; and 
(2) if the small business concern does not file a 
certification application before the end of the 1-year 
period beginning on the date of enactment of this Act, 
lose, at the end of such 1-year period, any self-certifi-
cation of the small business concern as a small busi-
ness concern owned and controlled by service-disabled 
veterans. 
(d) RULEMAKING.—Not later than 180 days after the 
date of enactment of this Act, the Administrator shall pro-
mulgate regulations to carry out this section. 
SEC. 850. PAYMENT OF SUBCONTRACTORS. 
Section 8(d)(13) of the Small Business Act (15 U.S.C. 
637(d)(13)) is amended—
389 
† HR 2670 EAS 
(1) in subparagraph (B)(i), by striking ‘‘90 
days’’ and inserting ‘‘30 days’’; 
(2) in subparagraph (C)— 
(A) by striking ‘‘contractor shall’’ and in-
serting ‘‘contractor— 
‘‘(i) shall’’; 
(B) in clause (i), as so designated, by strik-
ing the period at the end and inserting ‘‘; and’’; 
and 
(C) by adding at the end the following: 
‘‘(i) may enter or modify past perform-
ance information of the prime contractor in 
connection with the unjustified failure to 
make a full or timely payment to a subcon-
tractor subject to this paragraph before or 
after close-out of the covered contract.’’. 
(3) in subparagraph (D), by striking ‘‘subpara-
graph (E)’’ and inserting ‘‘subparagraph (F)’’; 
(4) by redesignating subparagraph (E) as sub-
paragraph (F); and 
(5) by inserting after subparagraph (D) the fol-
lowing’’: 
‘‘(E) COOPERATION.— 
‘‘(i) IN GENERAL.—Once a contracting 
officer determines, with respect to the past
390 
† HR 2670 EAS 
performance of a prime contractor, that 
there was an unjustified failure by the 
prime contractor on a covered contract to 
make a full or timely payment to a subcon-
tractor covered by subparagraph (B) or (C), 
the prime contractor is required to cooper-
ate with the contracting officer, who shall 
consult with the Director of Small Business 
Programs or the Director of Small and Dis-
advantaged Business Utilization acting 
pursuant to section 15(k)(6) and other rep-
resentatives of the Government, regarding 
correcting and mitigating the unjustified 
failure to make a full or timely payment to 
a subcontractor. 
‘‘(ii) DURATION.—The duty of coopera-
tion under this subparagraph for a prime 
contractor described in clause (i) continues 
until the subcontractor is made whole or the 
determination of the contracting officer de-
termination is no longer effective, and re-
gardless of performance or close-out status 
of the covered contract.’’.
391 
† HR 2670 EAS 
SEC. 851. INCREASE IN GOVERNMENTWIDE GOAL FOR PAR-
TICIPATION 
IN 
FEDERAL 
CONTRACTS 
BY 
SMALL BUSINESS CONCERNS OWNED AND 
CONTROLLED BY SERVICE-DISABLED VET-
ERANS. 
Section 15(g)(1)(A)(ii) of the Small Business Act (15 
U.S.C. 644(g)(1)(A)(ii)) is amended by striking ‘‘3 percent’’ 
and inserting ‘‘5 percent’’. 
SEC. 852. AMENDMENTS TO CONTRACTING AUTHORITY FOR 
CERTAIN SMALL BUSINESS CONCERNS. 
(a) SOCIALLY AND ECONOMICALLY DISADVANTAGED 
SMALL BUSINESS CONCERNS.—Section 8(a)(1)(D)(i)(II) of 
the Small Business Act (15 U.S.C. 637(a)(1)(D)(i)(II)) is 
amended— 
(1) by inserting ‘‘(or $10,000,000, in the case of 
a Department of Defense contract, as adjusted for in-
flation by the Federal Acquisition Regulatory Council 
under section 1.109 of the Federal Acquisition Regu-
lation)’’ after ‘‘$7,000,000’’; and 
(2) by inserting ‘‘(or $8,000,000, in the case of 
a Department of Defense contract, as adjusted for in-
flation by the Federal Acquisition Regulatory Council 
under section 1.109 of the Federal Acquisition Regu-
lation)’’ after ‘‘$3,000,000’’.
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† HR 2670 EAS 
(b) CERTAIN SMALL BUSINESS CONCERNS OWNED AND 
CONTROLLED BY WOMEN.—Section 8(m) of the Small Busi-
ness Act (15 U.S.C.637(m)) is amended— 
(1) in paragraph (7)(B)— 
(A) in clause (i), by inserting ‘‘(or 
$10,000,000, in the case of a Department of De-
fense contract, as adjusted for inflation by the 
Federal Acquisition Regulatory Council under 
section 1.109 of the Federal Acquisition Regula-
tion)’’ after ‘‘$7,000,000’’; and 
(B) in clause (ii), by inserting ‘‘(or 
$8,000,000, in the case of a Department of De-
fense contract, as adjusted for inflation by the 
Federal Acquisition Regulatory Council under 
section 1.109 of the Federal Acquisition Regula-
tion)’’ after ‘‘$4,000,000’’; and 
(2) in paragraph (8)(B)— 
(A) in clause (i), by inserting ‘‘(or 
$10,000,000, in the case of a Department of De-
fense contract, as adjusted for inflation by the 
Federal Acquisition Regulatory Council under 
section 1.109 of the Federal Acquisition Regula-
tion)’’ after ‘‘$7,000,000’’; and 
(B) in clause (ii), by inserting ‘‘(or 
$8,000,000, in the case of a Department of De-
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fense contract, as adjusted for inflation by the 
Federal Acquisition Regulatory Council under 
section 1.109 of the Federal Acquisition Regula-
tion)’’ after ‘‘$4,000,000’’. 
(c) QUALIFIED HUBZONE SMALL BUSINESS CON-
CERNS.—Section 31(c)(2)(A)(ii) of the Small Business Act 
(15 U.S.C. 657a(c)(2)(A)(ii)) is amended— 
(1) 
in 
subclause 
(I), 
by 
inserting 
‘‘(or 
$10,000,000, in the case of a Department of Defense 
contract, as adjusted for inflation by the Federal Ac-
quisition Regulatory Council under section 1.109 of 
the 
Federal 
Acquisition 
Regulation)’’ 
after 
‘‘$7,000,000’’; and 
(2) 
in 
subclause 
(II), 
by 
inserting 
‘‘(or 
$8,000,000, in the case of a Department of Defense 
contract, as adjusted for inflation by the Federal Ac-
quisition Regulatory Council under section 1.109 of 
the 
Federal 
Acquisition 
Regulation)’’ 
after 
‘‘$3,000,000’’. 
(d) SMALL BUSINESS CONCERNS OWNED AND CON-
TROLLED
BY
SERVICE-DISABLED
VETERANS.—Section 
36(c)(2) of the Small Business Act (15 U.S.C. 657f(c)(2)) 
is amended— 
(1) in subparagraph (A), by inserting ‘‘(or 
$10,000,000, in the case of a Department of Defense
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† HR 2670 EAS 
contract, as adjusted for inflation by the Federal Ac-
quisition Regulatory Council under section 1.109 of 
the 
Federal 
Acquisition 
Regulation)’’ 
after 
‘‘$7,000,000’’; and 
(2) in subparagraph (B), by inserting ‘‘(or 
$8,000,000, in the case of a Department of Defense 
contract, as adjusted for inflation by the Federal Ac-
quisition Regulatory Council under section 1.109 of 
the 
Federal 
Acquisition 
Regulation)’’ 
after 
‘‘$3,000,000’’. 
(e) CERTAIN VETERAN-OWNED CONCERNS.—Section 
8127(c) of title 38, United States Code, is amended by strik-
ing ‘‘$5,000,000’’ and inserting ‘‘the dollar thresholds under 
section 36(c)(2) of the Small Business Act (15 U.S.C. 
657f(c)(2))’’. 
Subtitle E—Other Matters 
SEC. 861. LIMITATION ON THE AVAILABILITY OF FUNDS 
PENDING A PLAN FOR IMPLEMENTING THE 
REPLACEMENT FOR THE SELECTED ACQUISI-
TION REPORTING SYSTEM. 
Of the funds authorized to be appropriated by this Act 
for Operation and Maintenance, Defense-Wide, for travel 
for the Office of the Under Secretary of Defense for Acquisi-
tion and Sustainment, not more than 85 percent may be 
obligated or expended until the Secretary of Defense submits
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to the congressional defense committees a plan for imple-
menting the replacement for the Selected Acquisition Re-
porting system as required by section 809 of the James M. 
Inhofe National Defense Authorization Act for Fiscal Year 
2023 (Public Law 117–263), including— 
(1) a timeline and process for implementing the 
requirements of such section 809; 
(2) a timeline and process for implementing 
quarterly reporting versus annually for the replace-
ment system, including identification of policy, proce-
dural, or technical challenges to implementing that 
reporting periodicity; 
(3) a timeline and process for providing access 
to the replacement reporting system to congressional 
staff; and 
(4) a timeline and process for providing access 
to the replacement reporting system to the Govern-
ment Accountability Office, the public, and other rel-
evant stakeholders. 
SEC. 862. EXTENSION OF PILOT PROGRAM FOR DISTRIBU-
TION SUPPORT AND SERVICES FOR WEAPONS 
SYSTEMS CONTRACTORS. 
Section 883 of the National Defense Authorization Act 
for Fiscal Year 2017 (Public Law 114–328; 10 U.S.C. 4292 
note prec.) is amended—
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(1) in subsection (a), by striking ‘‘seven-year 
pilot program’’ and inserting ‘‘eight-year pilot pro-
gram’’; and 
(2) in subsection (g), by striking ‘‘seven years’’ 
and inserting ‘‘eight years’’. 
SEC. 863. MODIFICATION OF EFFECTIVE DATE FOR EXPAN-
SION ON THE PROHIBITION ON ACQUIRING 
CERTAIN METAL PRODUCTS. 
Section 844(b) of the William M. (Mac) Thornberry 
National Defense Authorization Act for Fiscal Year 2021 
(Public Law 116–283; 134 Stat. 3766) is amended by strik-
ing ‘‘5 years’’ and inserting ‘‘6 years’’. 
SEC. 864. FOREIGN SOURCES OF SPECIALTY METALS. 
Section 4863(d) of title 10, United States Code, is 
amended— 
(1) in paragraph (1), by redesignating subpara-
graphs (A) and (B) as clauses (i) and (ii), respec-
tively; 
(2) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively; 
(3) by inserting ‘‘(1)’’ before ‘‘Subsection (a)(1)’’; 
and 
(4) by adding at the end the following new para-
graph:
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‘‘(2) Any specialty metal procured as mill product or 
incorporated into a component other than an end item pur-
suant to this subsection shall be melted or produced— 
‘‘(A) in the United States; 
‘‘(B) in the country from which the mill product 
or component is procured; or 
‘‘(C) in another country covered under para-
graph (1)(A)(ii).’’. 
SEC. 865. UNIVERSITY AFFILIATED RESEARCH CENTER FOR 
CRITICAL MINERALS. 
(a) PLAN TO ESTABLISH A UNIVERSITY AFFILIATED 
RESEARCH CENTER FOR CRITICAL MINERALS.— 
(1) IN GENERAL.—The Secretary of Defense, in 
consultation with the Under Secretary of Defense for 
Research and Engineering, shall develop a plan to es-
tablish a new University Affiliated Research Center 
(UARC), or to expand a current relevant UARC or 
consortia of universities, for the purposes of contrib-
uting to the capacity of the Department to conduct 
research, development, engineering or workforce ex-
pansion related to critical minerals for national secu-
rity needs. The plan should focus on institutional ca-
pacity at a mining school or schools with expertise in 
engineering, applied research, commercial and work-
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force development activities related to critical min-
erals. 
(2) ELEMENTS.—The plan required by para-
graph (1) shall include the following: 
(A) An assessment of the engineering, ap-
plied research, commercialization, and workforce 
development capabilities relating to critical min-
erals of mining schools, including an assessment 
of the workforce and physical research infra-
structure of such schools. 
(B) An assessment of the ability of mining 
schools— 
(i) to participate in defense-related en-
gineering, applied research, commercializa-
tion, and workforce development activities 
relating to critical minerals; 
(ii) to effectively compete for defense- 
related engineering, applied research, com-
mercialization, and workforce development 
contracts and grants; and 
(iii) to support the mission of the 
Under Secretary to extend the capabilities 
of current war fighting systems, develop 
breakthrough capabilities, hedge against an 
uncertain future through a set of scientific
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and engineering options, and counter stra-
tegic surprise. 
(C) An assessment of the activities and in-
vestments necessary— 
(i) to augment facilities or educational 
programming at mining schools or a con-
sortium of mining schools— 
(I) to support the mission of the 
Under Secretary; 
(II) to access, secure, and conduct 
research relating to sensitive or classi-
fied information; and 
(III) to respond quickly to emerg-
ing engineering, applied research, com-
mercialization, and workforce needs re-
lating to critical minerals. 
(ii) to increase the participation of 
mining schools in defense-related engineer-
ing, applied research, commercialization, 
and workforce development activities; and 
(iii) to increase the ability of mining 
schools to effectively compete for defense-re-
lated engineering, applied research, com-
mercialization, and workforce development 
contracts and grants.
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(D) Recommendations identifying actions 
that may be taken by the Secretary, the Under 
Secretary, Congress, mining schools, and other 
organizations to increase the participation of 
mining schools in defense-related engineering, 
applied research, commercialization, and work-
force development activities, contracts, and 
grants. 
(E) The specific goals, incentives, and 
metrics developed by the Secretary under sub-
paragraph (D) to increase and measure the ca-
pacity of mining schools to address the engineer-
ing, applied research, commercialization, and 
workforce development needs of the Department 
of Defense. 
(3) CONSULTATIONS.—In developing the plan re-
quired by paragraph (1), the Secretary and the Under 
Secretary shall consult with such other public and 
private sector organizations as the Secretary and the 
Under Secretary determine appropriate. 
(4) REPORT
REQUIRED.—Not later than one 
year after the date of the enactment of this Act, the 
Secretary shall—
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(A) submit to the congressional defense com-
mittees a report that includes the plan developed 
under paragraph (1); and 
(B) make the plan available on a publicly 
accessible website of the Department of Defense. 
(b) ACTIVITIES TO SUPPORT THE ENGINEERING, AP-
PLIED RESEARCH, COMMERCIALIZATION, AND WORKFORCE 
DEVELOPMENT CAPACITY OF MINING SCHOOLS.— 
(1) IN GENERAL.—Subject to the availability of 
appropriations, the Under Secretary may establish a 
program to award contracts, grants, or other agree-
ments on a competitive basis, and to perform other 
appropriate activities, for the purposes described in 
paragraph (2). 
(2) PURPOSES.—The purposes described in this 
paragraph are the following: 
(A) Developing the capability, including 
workforce and research infrastructure, for min-
ing schools to more effectively compete for Fed-
eral engineering, applied research, commer-
cialization, and workforce development funding 
opportunities. 
(B) Improving the capability of mining 
schools to recruit and retain research faculty, 
and to participate in appropriate personnel ex-
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change programs and educational and career de-
velopment activities. 
(C) Any other purposes the Under Secretary 
determines appropriate for enhancing the de-
fense-related engineering, applied research, com-
mercialization, and development capabilities of 
mining schools. 
(c) INCREASING PARTNERSHIPS FOR MINING SCHOOLS 
WITH NATIONAL SECURITY RESEARCH AND ENGINEERING 
ORGANIZATIONS.— 
(1) IN
GENERAL.—Chapter 305 of title 10, 
United States Code, is amended by adding at the end 
the following new section: 
‘‘§ 4145. Research and educational programs and ac-
tivities: critical minerals 
‘‘(a) PROGRAM ESTABLISHED.— 
‘‘(1) IN
GENERAL.—The Secretary of Defense, 
acting through the Under Secretary of Defense for Re-
search and Engineering and the Secretary of each 
military department, shall carry out a program to 
provide assistance to covered educational institutions 
to assist the Department of Defense in defense-related 
critical minerals engineering, applied research, com-
mercialization, and workforce development activities.
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‘‘(2) LIMITATION
ON
DELEGATION.—The Sec-
retary of Defense may not delegate or transfer to an 
individual outside the Office of the Secretary of De-
fense the authority regarding the programming or 
budgeting of the program established by this section 
that is carried out by the Under Secretary of Defense 
for Research and Engineering. 
‘‘(b) PROGRAM OBJECTIVE.—The objective of the pro-
gram established by subsection (a)(1) is to enhance defense- 
related critical minerals research and education at covered 
educational institutions. Such objective shall be accom-
plished through initiatives designed to— 
‘‘(1) enhance the critical minerals research and 
educational capabilities of such institutions in areas 
of importance to national defense, as determined by 
the Secretary; 
‘‘(2) encourage the participation of such institu-
tions in the research, development, testing, and eval-
uation programs and activities of the Department of 
Defense relating to critical minerals; 
‘‘(3) increase the number of graduates from such 
institutions engaged in critical minerals-related dis-
ciplines important to the national security functions 
of the Department of Defense, as determined by the 
Secretary; and
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‘‘(4) encourage research and educational collabo-
rations between such institutions and other institu-
tions of higher education, Government defense organi-
zations, and the defense industry relating to critical 
minerals. 
‘‘(c) ASSISTANCE PROVIDED.—Under the program es-
tablished under subsection (a)(1), the Secretary of Defense 
may provide covered educational institutions with funding 
or technical assistance, including any of the following: 
‘‘(1) Support for research, development, testing, 
evaluation, or educational enhancements in areas im-
portant to national defense through the competitive 
awarding of grants, cooperative agreements, contracts, 
scholarships, fellowships, or the acquisition of research 
equipment or instrumentation. 
‘‘(2) Support to assist in the attraction and re-
tention of faculty in scientific disciplines important 
to the national security functions of the Department 
of Defense. 
‘‘(3) Establishing partnerships between such in-
stitutions and defense laboratories, Government de-
fense organizations, the defense industry, and other 
institutions of higher education in research, develop-
ment, testing, and evaluation in areas important to
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the national security functions of the Department of 
Defense. 
‘‘(4) Other such non-monetary assistance as the 
Secretary finds appropriate to enhance defense-related 
research, development, testing, and evaluation activi-
ties at such institutions. 
‘‘(d) INCENTIVES.— 
‘‘(1) IN
GENERAL.—The Secretary of Defense 
may develop incentives to encourage critical minerals- 
related research and educational collaborations be-
tween covered educational institutions and other in-
stitutions of higher education. 
‘‘(2) GOALS.—The Secretary of Defense shall es-
tablish goals and incentives to encourage Federally 
funded research and development centers, science and 
technology reinvention laboratories, and University 
Affiliated Research Centers funded by the Department 
of Defense— 
‘‘(A) to assess the capacity of covered edu-
cational institutions to address the critical min-
erals research and development needs of the De-
partment through partnerships and collabora-
tions; and 
‘‘(B) if appropriate, to enter into partner-
ships and collaborations with such institutions.
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‘‘(e) CRITERIA FOR FUNDING.—The Secretary of De-
fense may establish procedures under which the Secretary 
may limit funding under this section to institutions that 
have not otherwise received a significant amount of funding 
from the Department of Defense for research, development, 
testing, and evaluation programs supporting the national 
security functions of the Department. 
‘‘(f) DEFINITION OF COVERED EDUCATIONAL INSTITU-
TION.— 
‘‘(1) IN
GENERAL.—In this section, the term 
‘covered educational institution’ means— 
‘‘(A) a mining, metallurgical, geological, or 
mineral engineering program— 
‘‘(i) accredited by the Accreditation 
Board for Engineering and Technology, 
Inc.; and 
‘‘(ii) located at an institution of higher 
education; or 
‘‘(B) an institution of higher learning or 
community college with a geology or engineering 
program or department that has experience in 
mining research or work with the mining indus-
try. 
‘‘(2) INSTITUTION OF HIGHER EDUCATION.—For 
purposes of paragraph (1), the term ‘institution of
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† HR 2670 EAS 
higher education’ has the meaning given that term in 
section 101 of the Higher Education Act of 1965 (20 
U.S.C. 1001).’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 305 of such title is 
amended by adding at the end the following new item: 
‘‘4145. Research and educational programs and activities: critical minerals.’’. 
(d) MINING SCHOOL DEFINED.— 
(1) IN
GENERAL.—In this section, the term 
‘‘mining school’’ means— 
(A) a mining, metallurgical, geological, or 
mineral engineering program— 
(i) accredited by the Accreditation 
Board for Engineering and Technology, 
Inc.; and 
(ii) located at an institution of higher 
education; or 
(B) an institution of higher learning or 
community college with a geology or engineering 
program or department that has experience in 
mining research or work with the mining indus-
try. 
(2) INSTITUTION OF HIGHER EDUCATION.—For 
purposes of paragraph (1), the term ‘‘institution of 
higher education’’ has the meaning given that term in
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† HR 2670 EAS 
section 101 of the Higher Education Act of 1965 (20 
U.S.C. 1001). 
SEC. 866. ENHANCED DOMESTIC CONTENT REQUIREMENT 
FOR NAVY SHIPBUILDING PROGRAMS. 
(a) ENHANCED DOMESTIC CONTENT REQUIREMENT.— 
(1) CONTRACTING
REQUIREMENTS.—Except as 
provided in paragraph (2), for purposes of chapter 83 
of title 41, United States Code, manufactured articles, 
materials, or supplies procured as part of a Navy 
shipbuilding program are manufactured substantially 
all from articles, materials, or supplies mined, pro-
duced, or manufactured in the United States if the 
cost of such component articles, materials, or sup-
plies— 
(A) supplied during the period beginning 
January 1, 2026, and ending December 31, 
2027, exceeds 65 percent of the cost of the manu-
factured articles, materials, or supplies; 
(B) supplied during the period beginning 
January 1, 2028, and ending December 31, 
2032, exceeds 75 percent of the cost of the manu-
factured articles, materials, or supplies; and 
(C) supplied on or after January 1, 2033, 
equals 100 percent of the cost of the manufac-
tured articles, materials, or supplies.
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(2) APPLICABILITY
TO
RESEARCH, DEVELOP-
MENT, TEST, AND
EVALUATION
ACTIVITIES.—Con-
tracts related to shipbuilding programs entered into 
under paragraph (1) to carry out research, develop-
ment, test, and evaluation activities shall require that 
these activities and the components specified during 
these activities must meet the domestic content re-
quirements delineated under paragraph (1). 
(3) EXCLUSION
FOR
CERTAIN
MANUFACTURED 
ARTICLES.—Paragraph (1) shall not apply to manu-
factured articles that consist wholly or predominantly 
of iron, steel, or a combination of iron and steel. 
(4) WAIVER.—The Secretary of Defense may re-
quest a waiver from the requirements under para-
graph (1) in order to expand sourcing to members of 
the national technical industrial base (as that term is 
defined in section 4801 of title 10, United States 
Code). Any such waiver shall be subject to the ap-
proval of the Director of the Made in America Office 
and may only be requested if it is determined that 
any of the following apply: 
(A) Application of the limitation would in-
crease the cost of the overall acquisition by more 
than 25 percent or cause unreasonable delays to 
be incurred.
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† HR 2670 EAS 
(B) Satisfactory quality items manufac-
tured by a domestic entity are not available or 
domestic production of such items cannot be ini-
tiated without significantly delaying the project 
for which the item is to be acquired. 
(C) It is inconsistent with the public inter-
est. 
(5) RULEMAKING.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary of Defense, in concurrence with the Director of 
the Made in America Office, shall issue rules to deter-
mine the treatment of the lowest price offered for a 
foreign end product for which 55 percent or more of 
the component articles, materials, or supplies of such 
foreign end product are manufactured substantially 
all from articles, materials, or supplies mined, pro-
duced, or manufactured in the United States if— 
(A) the application of paragraph (1) results 
in an unreasonable cost; or 
(B) no offers are submitted to supply manu-
factured articles, materials, or supplies manufac-
tured substantially all from articles, materials, 
or supplies mined, produced, or manufactured in 
the United States.
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† HR 2670 EAS 
(6) APPLICABILITY.—The requirements of this 
subsection shall apply to contracts entered into on or 
after January 1, 2026. 
(b) REPORTING ON COUNTRY OF ORIGIN MANUFAC-
TURING.—Not later than one year after the date of the en-
actment of this Act, and annually thereafter, the Secretary 
of Defense shall submit to Congress a report on country of 
origin tracking and reporting as it relates to manufactured 
content procured as part of Navy shipbuilding programs, 
including through primary contracts and subcontracts at 
the second and third tiers. The report shall describe meas-
ures taken to ensure that the country of origin information 
pertaining to such content is reported accurately in terms 
of the location of manufacture and not determined by the 
location of sale. 
SEC. 867. ADDITION OF ADMINISTRATOR OF THE SMALL 
BUSINESS ADMINISTRATION TO THE FED-
ERAL ACQUISITION REGULATORY COUNCIL. 
Section 1302(b)(1) of title 41, United States Code, is 
amended— 
(1) in subparagraph (C), by striking ‘‘; and’’ 
and inserting a semicolon; 
(2) in subparagraph (D), by striking the period 
at the end and inserting ‘‘; and’’; and
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† HR 2670 EAS 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(E) the Administrator of the Small Busi-
ness Administration.’’. 
SEC. 868. MODIFICATIONS TO RIGHTS IN TECHNICAL DATA. 
Section 3771(b) of title 10, United States Code, is 
amended— 
(1) in paragraph (3)(C), by inserting ‘‘for which 
the United States shall have government purpose 
rights, unless the Government and the contractor ne-
gotiate different license rights’’ after ‘‘component)’’; 
and 
(2) in paragraph (4)(A)— 
(A) in clause (ii), by striking ‘‘; or’’ and in-
serting a semicolon; 
(B) by redesignating clause (iii) as clause 
(iv); and 
(C) by inserting after clause (ii) the fol-
lowing new clause (iii): 
‘‘(iii) is a release, disclosure, or use of 
detailed manufacturing or process data— 
‘‘(I) that is necessary for oper-
ation, maintenance, installation, or 
training and shall be used only for op-
eration, maintenance, installation, or
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† HR 2670 EAS 
training purposes supporting wartime 
operations or contingency operations; 
and 
‘‘(II) for which the head of an 
agency determines that the original 
supplier of such data will be unable to 
satisfy military readiness or oper-
ational requirements for such oper-
ations; or’’. 
TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND 
MANAGEMENT 
Subtitle A—Office of the Secretary 
of Defense and Related Matters 
SEC. 901. ESTABLISHMENT OF OFFICE OF STRATEGIC CAP-
ITAL. 
(a) IN GENERAL.—Chapter 4 of title 10, United States 
Code, is amended by adding at the end the following new 
section: 
‘‘§ 148. Office of Strategic Capital 
‘‘(a) ESTABLISHMENT.—There is in the Office of the 
Secretary of Defense an office to be known as the Office of 
Strategic Capital (in this section referred to as the ‘Office’). 
‘‘(b) DIRECTOR.—The Office shall be headed by a Di-
rector (in this section referred to as the ‘Director’), who
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† HR 2670 EAS 
shall be appointed by the Secretary from among employees 
of the Department of Defense in Senior Executive Service 
positions (as defined in section 3132 of title 5). 
‘‘(c) DUTIES.—The Office shall— 
‘‘(1) develop, integrate, and implement proven 
capital strategies of partners of the Department of 
Defense to shape and scale investment in critical tech-
nologies and assets; 
‘‘(2) identify and prioritize promising critical 
technologies and assets for the Department in need of 
capital assistance; and 
‘‘(3) fund investments in such technologies and 
assets, including supply chain technologies not always 
supported through direct investment. 
‘‘(d) APPLICATIONS.—An eligible entity seeking cap-
ital assistance for an eligible investment shall submit to the 
Director an application at such time, in such manner, and 
containing such information as the Director may require. 
‘‘(e) SELECTION OF INVESTMENTS.— 
‘‘(1) IN GENERAL.—The Director shall establish 
criteria for selecting among eligible investments for 
which applications are submitted under subsection 
(d). Such criteria shall include—
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† HR 2670 EAS 
‘‘(A) the extent to which an investment is 
significant to the national security of the United 
States; 
‘‘(B) the likelihood that capital assistance 
provided for an investment would enable the in-
vestment to proceed sooner than the investment 
would otherwise be able to proceed; and 
‘‘(C) the creditworthiness of an investment. 
‘‘(2) NOTICE AND WAIT REQUIREMENT.—The cri-
teria established under paragraph (1) shall not apply 
until— 
‘‘(A) the Secretary of Defense submits the 
criteria to the congressional defense committees; 
and 
‘‘(B) a period of 30 days has elapsed after 
such submission. 
‘‘(f) NOTIFICATION.—Not less than 30 days before exer-
cising the authority provided by section 834 of the National 
Defense Authorization Act for Fiscal Year 2024, the Direc-
tor, in coordination with the Under Secretary of Defense 
for Acquisition and Sustainment and the Under Secretary 
of Defense for Research and Engineering, shall notify the 
congressional defense committees of the purpose and terms 
of any capital assistance proposed to be provided under that
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† HR 2670 EAS 
section. Such notification may be made in classified form, 
if necessary. 
‘‘(g) STRATEGIC CAPITAL ADVISORY BOARD.—The 
Secretary of Defense shall establish a Strategic Capital Ad-
visory Board to advise the Director with respect to activities 
carried out under this section. 
‘‘(h) REGULATIONS.—The Secretary shall prescribe 
such regulations as are necessary to carry out this section, 
including regulations to ensure internal and external co-
ordination to avoid duplication of effort, reduce ineffi-
ciency, and ensure policy coherence across the Department. 
‘‘(i) EFFECTIVE DATE.—The authorities made avail-
able under this section may not be exercised until the date 
that is 30 days after the regulations required by subsection 
(i) have been— 
‘‘(1) prescribed and adopted by the Department; 
and 
‘‘(2) submitted to the congressional defense com-
mittees. 
‘‘(j) ANNUAL REPORT.—Not later than December 31 
of each ye ar, the Director shall submit to the congressional 
defense committees a report that— 
‘‘(1) describes the activities of the Office during 
the most recent fiscal year ending before submission 
of the report, including—
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‘‘(A) an identification of entities that re-
ceived capital assistance from the Office during 
that fiscal year; 
‘‘(B) a description of the status of the finan-
cial obligations of those entities as a result of re-
ceiving such assistance; and 
‘‘(C) any success stories as a result of such 
assistance; 
‘‘(2) assesses the status of the finances of the Of-
fice as of the end of that fiscal year; and 
‘‘(3) describes the goals of the Office for the fiscal 
year that begins after submission of the report. 
‘‘(k) DEFINITIONS.—In this section: 
‘‘(1) CAPITAL
ASSISTANCE.—The term ‘capital 
assistance’ means loans, loan guarantees, equity in-
vestments, or technical assistance provided under sec-
tion 834. 
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means— 
‘‘(A) an individual; 
‘‘(B) a corporation; 
‘‘(C) a partnership, including a public-pri-
vate partnership; 
‘‘(D) a joint venture; 
‘‘(E) a trust;
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‘‘(F) a State, including a political subdivi-
sion or any other instrumentality of a State; 
‘‘(G) a Tribal government or consortium of 
Tribal governments; 
‘‘(H) any other governmental entity or pub-
lic agency in the United States, including a spe-
cial purpose district or public authority, includ-
ing a port authority; or 
‘‘(I) a multi-State or multi-jurisdictional 
group of public entities. 
‘‘(3) ELIGIBLE INVESTMENT.—The term ‘eligible 
investment’ means an investment that facilitates the 
efforts of the Office— 
‘‘(A) to identify, accelerate, and sustain the 
establishment, research, development, construc-
tion, procurement, leasing, consolidation, alter-
ation, improvement, or repair of tangible and 
intangible assets vital to United States national 
security; or 
‘‘(B) to protect tangible and intangible as-
sets vital to United States national security from 
theft, acquisition, and transfer by countries that 
are adversaries of the United States.’’.
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(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 4 of such title is amended by add-
ing at the end the following new item: 
‘‘148. Office of Strategic Capital.’’. 
SEC. 902. REINSTATEMENT OF POSITION OF CHIEF MAN-
AGEMENT OFFICER OF DEPARTMENT OF DE-
FENSE. 
(a) REINSTATEMENT OF POSITION.— 
(1) IN GENERAL.—Chapter 4 of title 10, United 
States Code, is amended by inserting after the item 
relating to section 132 the following new item: 
‘‘§ 132a. Chief Management Officer 
‘‘(a) APPOINTMENT AND QUALIFICATIONS.—(1) There 
is a Chief Management Officer of the Department of De-
fense, appointed from civilian life by the President, by and 
with the advice and consent of the Senate. 
‘‘(2) The Chief Management Officer shall be appointed 
from among persons who have an extensive management or 
business background and experience with managing large 
or complex organizations. A person may not be appointed 
as Chief Management Officer within seven years after relief 
from active duty as a commissioned officer of a regular 
component of an armed force. 
‘‘(b) RESPONSIBILITIES.—Subject to the authority, di-
rection, and control of the Secretary of Defense and the Dep-
uty Secretary of Defense, the Chief Management Officer
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shall perform such duties and exercise such powers as the 
Secretary or the Deputy Secretary may prescribe, including 
the following: 
‘‘(1) Serving as the chief management officer of 
the Department of Defense with the mission of man-
aging enterprise business operations and shared serv-
ices of the Department of Defense. 
‘‘(2) Serving as the principal advisor to the Sec-
retary and the Deputy Secretary on establishing poli-
cies for, and directing, all enterprise business oper-
ations of the Department, including planning and 
processes, business transformation, and performance 
measurement and management activities and pro-
grams, including the allocation of resources for enter-
prise business operations and unifying business man-
agement efforts across the Department. 
‘‘(3) Exercising authority, direction, and control 
over the Defense Agencies and Department of Defense 
Field Activities providing shared business services for 
the Department. 
‘‘(4) Authority to direct the Secretaries of the 
military departments and the heads of all other ele-
ments of the Department with regard to matters for 
which the Chief Management Officer has responsi-
bility under this section.
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‘‘(5) Serving as the official with principal re-
sponsibility in the Department for minimizing the 
duplication of efforts, maximizing efficiency and effec-
tiveness, and establishing metrics for performance 
among and for all organizations and elements of the 
Department. 
‘‘(c) BUDGET AUTHORITY.—(1)(A) Beginning in fiscal 
year 2025, the Secretary of Defense, acting through the 
Under Secretary of Defense (Comptroller), shall require the 
head of each Defense Agency and Department of Defense 
Field Activity (other than such agencies and activities that 
are under the direction of the Director of National Intel-
ligence or are elements of the intelligence community) to 
transmit the proposed budget of such Agency or Activity 
for enterprise business operations for a fiscal year, and for 
the period covered by the future-years defense program sub-
mitted to Congress under section 221 of this title for that 
fiscal year, to the Chief Management Officer for review 
under subparagraph (B) at the same time the proposed 
budget is submitted to the Under Secretary of Defense 
(Comptroller). 
‘‘(B) The Chief Management Officer shall review each 
proposed budget transmitted under subparagraph (A) and, 
not later than January 31 of the year preceding the fiscal 
year for which the budget is proposed, shall submit to the
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Secretary a report containing the comments of the Chief 
Management Officer with respect to all such proposed budg-
ets, together with the certification of the Chief Management 
Officer regarding whether each such proposed budget 
achieves the required level of efficiency and effectiveness for 
enterprise business operations, consistent with guidance for 
budget review established by the Chief Management Officer. 
‘‘(C) Not later than March 31 each year, the Secretary 
shall submit to Congress a report that includes the fol-
lowing: 
‘‘(i) Each proposed budget for the enterprise 
business operations of a Defense Agency or Depart-
ment of Defense Field Activity that was transmitted 
to the Chief Management Officer under subparagraph 
(A). 
‘‘(ii) Identification of each proposed budget con-
tained in the most recent report submitted under sub-
paragraph (B) that the Chief Management Officer did 
not certify as achieving the required level of efficiency 
and effectiveness for enterprise business operations. 
‘‘(iii) A discussion of the actions that the Sec-
retary proposes to take, together with any rec-
ommended legislation that the Secretary considers ap-
propriate, to address inadequate levels of efficiency 
and effectiveness for enterprise business operations
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achieved by the proposed budgets identified in the re-
port. 
‘‘(iv) Any additional comments that the Sec-
retary considers appropriate regarding inadequate 
levels of efficiency and effectiveness for enterprise 
business operations achieved by the proposed budgets. 
‘‘(2) Nothing in this subsection shall be construed to 
modify or interfere with the budget-related responsibilities 
of the Director of National Intelligence. 
‘‘(d) PRECEDENCE.—The Chief Management Officer 
takes precedence in the Department of Defense after the Sec-
retary of Defense and the Deputy Secretary of Defense. 
‘‘(e) ENTERPRISE BUSINESS OPERATION DEFINED.— 
In this section, the term ‘enterprise business operations’ 
means those activities that constitute the cross-cutting busi-
ness operations used by multiple components of the Depart-
ment of Defense, but not those activities that are directly 
tied to a single military department or Department of De-
fense component. The term includes business-support func-
tions designated by the Secretary of Defense or the Deputy 
Secretary of Defense for purposes of this section, such as 
aspects of financial management, healthcare, acquisition 
and procurement, supply chain and logistics, certain infor-
mation technology, real property, and human resources op-
erations.’’.
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† HR 2670 EAS 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 4 of such title is 
amended by inserting after the item relating to sec-
tion 132 the following new item: 
‘‘132a. Chief Management Officer.’’. 
(b) MANAGEMENT AND OVERSIGHT OF DEFENSE BUSI-
NESS SYSTEMS.—Section 2222 of such title is amended— 
(1) in subsection (c)(2), by striking ‘‘the Chief 
Information Officer of the Department of Defense’’ 
and inserting ‘‘the Chief Management Officer of the 
Department of Defense’’; 
(2) in subsection (e)— 
(A) in paragraph (1), by striking ‘‘the Chief 
Information Officer’’ and inserting ‘‘the Chief 
Management Officer’’; and 
(B) in paragraph (6)— 
(i) in subparagraph (A), in the matter 
preceding clause (i)— 
(I) in the first sentence, by strik-
ing ‘‘The Chief Information Officer of 
the Department of Defense, in coordi-
nation with the Chief Data and Artifi-
cial Intelligence Officer,’’ and inserting 
‘‘The Chief Management Officer of the 
Department of Defense’’; and
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(II) in the second sentence, by 
striking ‘‘the Chief Information Officer 
shall’’ and inserting ‘‘the Chief Man-
agement Officer shall’’; 
(ii) in subparagraph (B), in the mat-
ter preceding clause (i), by striking ‘‘The 
Chief Information Officer’’ and inserting 
‘‘The Chief Management Officer’’; 
(3) in subsection (f)(1), in the second sentence, 
by inserting ‘‘the Chief Management Officer and’’ 
after ‘‘chaired by’’; 
(4) in subsection (g)(2), by striking ‘‘the Chief 
Information Officer of the Department of Defense’’ 
each place it appears and inserting ‘‘the Chief Man-
agement Officer of the Department of Defense’’; and 
(5) in subsection (i)(5)(B), by striking ‘‘the Chief 
Information Officer’’ and inserting ‘‘the Chief Man-
agement Officer’’. 
(c) CONFORMING AMENDMENT.—Section 131(b) of title 
10, United States Code, is amended by inserting after para-
graph (1) the following new paragraph (2): 
‘‘(2) The Chief Management Officer of the De-
partment of Defense.’’.
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† HR 2670 EAS 
(d) GUIDANCE REQUIRED.—Not later than 30 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall— 
(1) issue guidance to clearly delineate the au-
thorities and responsibilities of the Chief Management 
Officer of the Department of Defense; and 
(2) provide a charter for the position of the Chief 
Management Officer to fully vest the authority of the 
Chief Management Officer within the Department of 
Defense. 
(e) REPORT ON EFFECT OF LAPSE IN MANAGEMENT 
OVERSIGHT ON DEFENSE BUSINESS SYSTEMS.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Deputy Sec-
retary of Defense shall submit to the congressional de-
fense committees a report on the effect on defense busi-
ness systems of the abolishment of the position of 
Chief Management Officer and the failure to reassign 
the responsibilities of the Chief Management Officer 
with respect to defense business systems for two years. 
(2) DEFENSE BUSINESS SYSTEM DEFINED.—In 
this subsection, the term ‘‘defense business system’’ 
has the meaning given that term in section 2222(i) 
of title 10, United States Code.
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† HR 2670 EAS 
SEC. 903. MODIFICATION OF RESPONSIBILITIES OF DIREC-
TOR OF COST ASSESSMENT AND PROGRAM 
EVALUATION. 
(a) IN GENERAL.—Subsection (d) of section 139a of 
title 10, United States Code, is amended— 
(1) in paragraph (5)— 
(A) by striking ‘‘, ensuring’’ and inserting 
‘‘and ensuring’’; and 
(B) by striking ‘‘, and assessing’’ and all 
that follows through ‘‘economy’’; and 
(2) in paragraph (8), by inserting after ‘‘defense 
resources’’ the following: ‘‘, including the standardiza-
tion of analytical methodologies and the establishment 
and maintenance of a centralized knowledge reposi-
tory of physical attributes or other data for modeling 
and simulation purposes’’. 
(b) ANNUAL REPORTS.—Such section is amended by 
adding at the end the following new subsection: 
‘‘(e) ANNUAL REPORTS.— 
‘‘(1) IN GENERAL.—Not later than February 1, 
2024, and annually thereafter, the Director shall sub-
mit to the congressional defense committees a report 
on activities to conduct strategic and operational 
analysis under paragraphs (2), (3), (6), (7), and (8) 
of subsection (d) that includes—
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† HR 2670 EAS 
‘‘(A) a review of strategic portfolio reviews 
completed in the fiscal year preceding submis-
sion of the report and a description of such re-
views planned for the fiscal year that begins 
after submission of the report; 
‘‘(B) a review of analyses of alternatives 
completed in the fiscal year preceding submis-
sion of the report and a description of such anal-
yses planned for the fiscal year that begins after 
submission of the report; and 
‘‘(C) a review of defense program projec-
tions completed in the fiscal year preceding sub-
mission of the report and a description of such 
projections planned for the fiscal year that be-
gins after submission of the report. 
‘‘(2) FORM.—Each report required by paragraph 
(1) shall be submitted in classified form, but shall in-
clude an unclassified summary. 
‘‘(3) BRIEFINGS.—Not later than 15 days after 
submission of each report required by paragraph (1), 
the Director shall brief the congressional defense com-
mittees on the contents of the report.’’. 
(c) PROGRAM EVALUATION COMPETITIVE ANALYSIS 
CELL.—Such section is further amended by adding after
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subsection (e), as added by subsection (b), the following new 
subsection: 
‘‘(f) PROGRAM EVALUATION COMPETITIVE ANALYSIS 
CELL.— 
‘‘(1) IN GENERAL.—Not later than June 1, 2024, 
the Secretary of Defense shall— 
‘‘(A) establish a team, to be known as the 
‘Program Evaluation Competitive Analysis Cell’, 
to critically assess the analytical methodologies, 
assumptions, and data used in key strategic and 
operational analyses conducted by the Director; 
and 
‘‘(B) ensure that the team has a sufficient 
number of personnel to carry out the duties of 
the team. 
‘‘(2) INDEPENDENCE.—The Program Evaluation 
Competitive Analysis Cell shall be independent of the 
Director and shall report only to the Secretary of De-
fense.’’. 
(d) PILOT PROGRAM ON ALTERNATIVE ANALYSIS.— 
(1) IN GENERAL.—The Director of Cost Assess-
ment and Program Evaluation shall establish a pilot 
program on alternative analysis. 
(2) STRUCTURE.—The Director shall establish, 
under the pilot program established under paragraph
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† HR 2670 EAS 
(1), three analytical groups, focused on programmatic 
analysis in the following: 
(A) Year 1 of the future-years defense pro-
gram under section 221 of title 10, United States 
Code. 
(B) Years 2 through 5 of the future-years 
defense program. 
(C) Years outside the future-years defense 
program. 
(3) REQUIREMENTS.—The pilot program estab-
lished under paragraph (1) shall run at least one 
strategic portfolio review or equivalent analytical ef-
fort per year. 
(e) 
ESTABLISHMENT
OF
ANALYSIS
WORKING 
GROUP.— 
(1) IN GENERAL.—Not later than May 1, 2024, 
the Secretary of Defense shall— 
(A) establish the Analysis Working Group 
in the Department of Defense; and 
(B) ensure that the Analysis Working 
Group possesses sufficient full-time equivalent 
support personnel to carry out the duties of the 
Group.
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† HR 2670 EAS 
(2) 
MEMBERSHIP.—The 
Analysis 
Working 
Group shall be composed of representatives of the fol-
lowing components of the Department of Defense: 
(A) The Office of the Director of Cost As-
sessment and Program Evaluation. 
(B) The Directorate for Joint Force Devel-
opment (J7) of the Joint Staff. 
(C) The Directorate for Force Structure, Re-
sources, and Assessment (J8) of the Joint Staff. 
(D) The Office of the Secretary of Defense 
for Policy. 
(E) The Chief Data and Artificial Intel-
ligence Office. 
(F) The Office of the Chief Information Of-
ficer. 
(G) The United States Indo-Pacific Com-
mand. 
(H) The United States European Com-
mand. 
(3) DUTIES.—The Analysis Working Group 
shall— 
(A) establish clear priorities and standards 
to focus analysts on decision support; 
(B) improve transparency of methodologies, 
tools, and tradecraft across the analytic commu-
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† HR 2670 EAS 
nity, including testing and validation for new or 
emerging methodologies, tools, and tradecraft; 
(C) improve quality of and expand access to 
data, including evaluation of new data sets, or 
application of existing data sets in new or novel 
ways; 
(D) evolve the methodologies, tools, and 
tradecraft methods and tools used in strategic 
analysis; 
(E) resolve classified access and infrastruc-
ture challenges; 
(F) foster a workforce and organizations 
that are innovative, creative, and provide high- 
quality strategic decision support; and 
(G) conduct such other tasks as the Sec-
retary of Defense considers appropriate. 
(f) RULE OF CONSTRUCTION.—Nothing in this section 
shall be construed to interfere with the requirements of the 
Chiefs of Staff of the Armed Forces to establish military 
requirements, performance requirements, and joint perform-
ance requirements, or the requirement of the Joint Require-
ments Oversight Council to validate such requirements 
under section 181 of title 10, United States Code.
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† HR 2670 EAS 
SEC. 904. ROLES AND RESPONSIBILITIES FOR COMPO-
NENTS OF OFFICE OF SECRETARY OF DE-
FENSE FOR JOINT ALL-DOMAIN COMMAND 
AND CONTROL IN SUPPORT OF INTEGRATED 
JOINT WARFIGHTING. 
(a) IN GENERAL.—The Secretary of Defense shall es-
tablish the roles and responsibilities of components of the 
Office of the Secretary of Defense for development and deliv-
ery to combatant commands of capabilities that are essen-
tial to integrated joint warfighting capabilities, as follows: 
(1) The Deputy Chief Technology Officer for Mis-
sion Capabilities of the Office of the Under Secretary 
of Defense for Research and Engineering shall be re-
sponsible for— 
(A) identifying new technology and oper-
ational concepts for experimentation and proto-
typing for delivery to the Joint Force to address 
key operational challenges; 
(B) providing technical support for the 
Joint Force in exploring and analyzing new ca-
pabilities, operational concepts, and systems-of- 
systems composition, including through advanced 
modeling and simulation; and 
(C) executing associated experimentation, 
through the Rapid Defense Experimentation Re-
serve (RDER) or another mechanism.
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† HR 2670 EAS 
(2) The Executive Director for Acquisition, Inte-
gration, and Interoperability of the Office of the 
Under Secretary of Defense for Acquisition and 
Sustainment shall be responsible for— 
(A) enabling the acquisition of cross-do-
main, joint, and cross-system kill chains and 
mission capabilities, including resourcing of 
modifications necessary for integration and 
interoperability among kill chain and mission 
components; and 
(B) ensuring the effectiveness of cross-do-
main, joint, and cross-system kill chains and 
mission capabilities through analysis and test-
ing. 
(3) The Chief Digital and Artificial Intelligence 
Officer shall be responsible for creating and operating 
a factory-based approach for software development 
that allows for iterative, secure, and continuous de-
ployment of developmental, prototype, and oper-
ational tools and capabilities from multiple vendors 
to test networks and operational networks for combat-
ant commanders to— 
(A) gain operational awareness, make deci-
sions, and take actions;
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† HR 2670 EAS 
(B) integrate relevant data sources to sup-
port target selection, target prioritization, and 
weapon-target pairing; and 
(C) prosecute targets through military serv-
ice and combat support agency networks, tools, 
and systems. 
(b) COORDINATION.—The officials referred to in para-
graphs (1), (2), and (3) of subsection (a) shall coordinate 
and align their plans and activities to implement sub-
section (a) among themselves and with the combatant com-
manders. 
(c) INITIAL PRIORITIZATION.—In developing an ini-
tial set of capabilities described in subsection (a), the offi-
cials referred to in paragraphs (1), (2), and (3) of that sub-
section shall prioritize the requirements of the United States 
Indo-Pacific Command. 
(d) BRIEFINGS REQUIRED.—Not later than 90 days 
after the date of the enactment of this Act, and every 180 
days thereafter through December 31, 2026, the officials re-
ferred to in paragraphs (1), (2), and (3) of subsection (a) 
shall provide briefings to the congressional defense commit-
tees on their plans and activities to implement subsection 
(a). 
(e) REPORT REQUIRED.—Not later than March 1, 
2024, the Chief Data and Artificial Intelligence Officer, in
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† HR 2670 EAS 
consultation with the Deputy Chief Technology Officer for 
Mission Capabilities of the Office of the Under Secretary 
of Defense for Research and Engineering and the Executive 
Director for Acquisition, Integration, and Interoperability 
of the Office of the Under Secretary of Defense for Acquisi-
tion and Sustainment, shall submit to the congressional de-
fense committees a report that includes— 
(1) a plan and associated timelines for deploying 
and demonstrating a joint data integration layer pro-
totype in the United States Indo-Pacific Command 
area of operations; 
(2) 
a 
plan 
and 
associated 
timelines 
for 
transitioning such a prototype, upon its successful 
demonstration, to fielding as soon as practicable 
given the urgent need for a joint all-domain command 
and control (commonly referred to as ‘‘JADC2’’) ca-
pability; 
(3) a plan and associated timelines for reaching 
initial operational capability for a joint data inte-
gration layer within the United States Indo-Pacific 
Command area of operations; 
(4) a plan and associated timelines for scaling 
that capability to future areas of operation across the 
combatant commands;
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† HR 2670 EAS 
(5) an assessment of the required type and num-
ber of personnel at the United States Indo-Pacific 
Command to enable sustained growth in JADC2 ca-
pabilities; and 
(6) a plan and associated timelines for— 
(A) identifying specific critical effects 
chains necessary to overcome anti-access and 
area denial capabilities and offensive military 
operations of foreign adversaries; and 
(B) creating, demonstrating, deploying, and 
sustaining such chains. 
SEC. 905. PRINCIPAL DEPUTY ASSISTANT SECRETARIES TO 
SUPPORT ASSISTANT SECRETARY OF DE-
FENSE FOR SPECIAL OPERATIONS AND LOW 
INTENSITY CONFLICT. 
The Secretary of Defense may appoint two Principal 
Deputy Assistant Secretaries to report to the Assistant Sec-
retary of Defense for Special Operations and Low Intensity 
Conflict— 
(1) one of whom may be assigned to support the 
Assistant Secretary in the discharge of responsibilities 
specified in clause (i) of section 138(b)(2)(A) of title 
10, United States Code; and
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† HR 2670 EAS 
(2) one of whom may be assigned to support the 
Assistant Secretary in the discharge of responsibilities 
specified in clause (ii) of that section. 
SEC. 906. MODIFICATION OF CROSS-FUNCTIONAL TEAM TO 
ADDRESS EMERGING THREAT RELATING TO 
DIRECTED ENERGY CAPABILITIES. 
Section 910 of the National Defense Authorization Act 
for Fiscal Year 2022 (Public Law 117–81; 10 U.S.C. 111 
note) is amended— 
(1) in the section heading, by striking ‘‘ANOMA-
LOUS
HEALTH
INCIDENTS’’ and inserting ‘‘DI-
RECTED ENERGY CAPABILITIES’’; 
(2) in subsection (a), by striking ‘‘anomalous 
health incidents (as defined by the Secretary)’’ and 
inserting ‘‘emerging directed energy capabilities, in-
cluding such capabilities that could plausibly result 
in anomalous health incidents (as defined by the Sec-
retary),’’; 
(3) in subsection (b)— 
(A) in the matter preceding paragraph (1), 
by inserting ‘‘to assist the Secretary of Defense’’ 
after ‘‘shall be’’; 
(B) by amending paragraph (1) to read as 
follows:
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† HR 2670 EAS 
‘‘(1) to address the threat posed by emerging di-
rected energy capabilities, such as anti-personnel 
weapons, including the detection and mitigation of, 
and development of countermeasures for, such capa-
bilities;’’; 
(C) by redesignating paragraphs (2) and 
(3) as paragraphs (3) and (4), respectively; 
(D) by inserting after paragraph (1) the fol-
lowing new paragraph (2): 
‘‘(2) to conduct necessary investigation and ac-
tivities to understand the causation, attribution, miti-
gation, identification, and treatment for anomalous 
health incidents;’’; and 
(E) in paragraph (4), as redesignated by 
subparagraph (C), by striking ‘‘any other efforts 
regarding such incidents’’ and inserting ‘‘with 
any other efforts regarding emerging directed en-
ergy capabilities, hazards of electromagnetic ra-
diation to personnel, and anomalous health inci-
dents’’; 
(4) in subsection (d), by striking ‘‘in consulta-
tion with the Director of National Intelligence and’’; 
and 
(5) in subsection (e)(2)—
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† HR 2670 EAS 
(A) by striking ‘‘March 1, 2026’’ and insert-
ing ‘‘March 1, 2028’’; and 
(B) by striking ‘‘anomalous health inci-
dents’’ and inserting ‘‘emerging directed energy 
capabilities, including such capabilities that 
could plausibly result in anomalous health inci-
dents’’. 
SEC. 907. PILOT PROGRAM ON PROTECTING ACCESS TO 
CRITICAL ASSETS. 
(a) IN GENERAL.—The Secretary of Defense shall es-
tablish a pilot program within the Office of the Under Sec-
retary of Defense for Acquisition and Sustainment under 
which the Under Secretary will conduct and coordinate as-
sessments, support industrial base decision-making, and 
provide mitigation measures to counter adversarial capital 
flows into industries or businesses of interest to the Depart-
ment of Defense intended to undermine or deny— 
(1) the access of the United States to key capa-
bilities; or 
(2) the ability of the United States to place such 
capabilities in physical locations necessary for na-
tional security functions. 
(b) ELEMENTS.—
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† HR 2670 EAS 
(1) IN GENERAL.—Under the pilot program re-
quired by subsection (a), the Under Secretary may 
perform the following tasks: 
(A) Conduct coordinated and integrated 
analysis of adversarial capital flows into indus-
tries or businesses of interest to the Department 
of Defense. 
(B) Support coordination and outreach 
with technology scouting and acquisition ele-
ments of the Department to support the invest-
ment decision-making of those elements and con-
sideration of how to counteract entities employ-
ing adversarial capital flows against industries 
or businesses described in subparagraph (A), in-
cluding the employment of relevant authorities 
vested in other components of the Department 
and the Federal Government. 
(C) Identify, accelerate, and sustain the es-
tablishment, research, development, construction, 
procurement, leasing, consolidation, alteration, 
improvement, modernization, and repair of tan-
gible and intangible assets vital to the national 
security of the United States. 
(D) Protect tangible and intangible assets 
vital to the national security of the United
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† HR 2670 EAS 
States from theft, acquisition, and transfer by 
adversaries or strategic competitors of the United 
States. 
(E) Provide capital assistance to entities 
engaged in investments that facilitate the efforts 
of the Under Secretary under subparagraphs (C) 
and (D) utilizing existing authorities available 
to the Department, such as the authority pro-
vided under section 834. 
(F) Experiment, prototype, test, or validate 
Government-developed or commercially developed 
analytical tools, processes, and tradecraft to im-
prove the due diligence and investment analysis 
processes for the Department. 
(2) USE
OF
CERTAIN
FINANCIAL
INSTRU-
MENTS.—The Under Secretary may perform the tasks 
described in paragraph (1) using the authorities pro-
vided by section 834. 
(c) COORDINATION.—In establishing the pilot program 
required by subsection (a), the Secretary shall coordinate 
the activities being carried out under the pilot program 
with the following entities: 
(1) The Air Force Office of Concepts, Develop-
ment, and Management.
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† HR 2670 EAS 
(2) The Air Force Office of Commercial and Eco-
nomic Analysis. 
(3) The Special Operations Command. 
(4) The Defense Innovation Unit. 
(5) The Office of Strategic Capital established 
under section 148 of title 10, United States Code, as 
added by section 901. 
(6) Such other entities as the Secretary considers 
appropriate. 
(d) REGULATIONS.—The Secretary of Defense shall 
prescribe such regulations as are necessary to carry out this 
section. 
(e) EFFECTIVE DATE.—The Secretary may not carry 
out activities or exercise authorities under this section until 
the date that is 30 days after the date on which the Sec-
retary submits to the congressional defense committees the 
regulations required by subsection (d). 
(f) BRIEFING REQUIRED.—Not later than 90 days 
after the date of the enactment of this Act, the Under Sec-
retary shall provide a briefing to the congressional defense 
committees that details implementation of the pilot pro-
gram required by subsection (a). 
(g) TERMINATION.—The pilot program required by 
subsection (a) shall terminate on September 30, 2028. 
(h) DEFINITIONS.—In this section:
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† HR 2670 EAS 
(1) ADVERSARIAL
CAPITAL
FLOW.—The term 
‘‘adversarial capital flow’’ means an investment by— 
(A) the government of a country that is an 
adversary of the United States; or 
(B) an entity organized under the laws of, 
or otherwise subject to the jurisdiction of, such a 
country. 
(2) CAPITAL
ASSISTANCE.—The term ‘‘capital 
assistance’’ has the meaning given that term in sec-
tion 834. 
SEC. 908. EXTENSION OF MISSION MANAGEMENT PILOT 
PROGRAM. 
Section 871 of the National Defense Authorization Act 
for Fiscal Year 2022 (Public Law 117–81; 10 U.S.C. 191 
note) is amended— 
(1) in subsection (b)— 
(A) in paragraph (1)— 
(i) by striking ‘‘IN GENERAL.—Ex-
cept’’ and inserting the following: ‘‘IN GEN-
ERAL.— 
‘‘(A) SELECTION.—Except’’; and 
(ii) by adding at the end the following 
new subparagraph: 
‘‘(B) DELEGATION OF OVERSIGHT AND MAN-
AGEMENT.—The Deputy Secretary of Defense
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† HR 2670 EAS 
may delegate one or more mission managers to 
oversee the selected missions and provide man-
agement around mission outcomes.’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(4) IDENTIFICATION
OF
FUNDING.—For each 
mission selected under paragraph (1), the Deputy 
Secretary of Defense shall identify funding sources in 
detail in defense budget materials for budgets sub-
mitted to Congress pursuant to section 1105 of title 
31, United States Code, with selected missions and so-
lution detailed in materials for each budgetary item 
associated with a selected mission.’’; 
(2) in subsection (c)(2)— 
(A) in subparagraph (E), by striking ‘‘; 
and’’ and inserting a semicolon; 
(B) by redesignating subparagraph (F) as 
subparagraph (G); and 
(C) by inserting after subparagraph (E) the 
following new subparagraph: 
‘‘(F) assist the Deputy Secretary of Defense 
in the identification of funding that could con-
tribute to the mission, including through existing 
authorized methods to realign, reprogram, or 
transfer funds; and’’;
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(3) in subsection (f)(1)(A), by striking ‘‘every six 
months thereafter until the date that is five years 
after the date of the enactment of this Act’’ and in-
serting ‘‘annually thereafter until September 30, 
2031’’; and 
(4) in subsection (h), by striking ‘‘terminate on 
the date that is five years after the date of the enact-
ment of this Act’’ and inserting ‘‘terminate on Sep-
tember 30, 2031’’. 
SEC. 909. CONFORMING AMENDMENTS TO CARRY OUT 
ELIMINATION OF POSITION OF CHIEF MAN-
AGEMENT OFFICER. 
(a) REMOVAL OF REFERENCES TO CHIEF MANAGE-
MENT OFFICER
IN PROVISIONS
OF LAW RELATING
TO 
PRECEDENCE.—Chapter 4 of title 10, United States Code, 
is amended— 
(1) in section 133a(c)— 
(A) in paragraph (1), by striking ‘‘, the 
Deputy Secretary of Defense, and the Chief Man-
agement Officer of the Department of Defense’’ 
and inserting ‘‘and the Deputy Secretary of De-
fense’’; and 
(B) in paragraph (2), by striking ‘‘the Chief 
Management Officer,’’; 
(2) in section 133b(c)—
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(A) in paragraph (1), by striking ‘‘the Chief 
Management Officer of the Department of De-
fense,’’; and 
(B) in paragraph (2), by striking ‘‘the Chief 
Management Officer,’’; 
(3) in section 137a(d), by striking ‘‘the Chief 
Management Officer of the Department of Defense,’’; 
and 
(4) in section 138(d), by striking ‘‘the Chief 
Management Officer of the Department of Defense,’’. 
(b) ASSIGNMENT OF PERIODIC REVIEW OF DEFENSE 
AGENCIES AND DEPARTMENT OF DEFENSE FIELD ACTIVI-
TIES TO SECRETARY OF DEFENSE.—Section 192(c) of such 
title is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A), in the first sen-
tence, by striking ‘‘the Chief Management Officer 
of the Department of Defense’’ and inserting ‘‘the 
Secretary of Defense’’; and 
(B) in subparagraphs (B) and (C), by strik-
ing ‘‘the Chief Management Officer’’ and insert-
ing ‘‘the Secretary’’; and 
(2) in paragraph (2), by striking ‘‘the Chief 
Management Officer’’ each place it appears and in-
serting ‘‘the Secretary’’.
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(c) ASSIGNMENT OF RESPONSIBILITY FOR FINANCIAL 
IMPROVEMENT AND AUDIT REMEDIATION TO UNDER SEC-
RETARY OF DEFENSE (COMPTROLLER).—Section 240b of 
such title is amended— 
(1) in subsection (a)(1), by striking ‘‘The Chief 
Management Officer of the Department of Defense 
shall, in consultation with the Under Secretary of De-
fense (Comptroller),’’ and inserting ‘‘The Under Sec-
retary of Defense (Comptroller) shall, in consultation 
with the Performance Improvement Officer of the De-
partment of Defense,’’; and 
(2) in subsection (b)(1)(C)(ii), by striking ‘‘the 
Chief Management Officer’’ and inserting ‘‘the Per-
formance Improvement Officer’’. 
(d) REMOVAL OF CHIEF MANAGEMENT OFFICER AS 
RECIPIENT OF REPORTS OF AUDITS BY EXTERNAL AUDI-
TORS.—Section 240d(d)(1)(A) of such title is amended by 
striking ‘‘and the Chief Management Officer of the Depart-
ment of Defense’’. 
(e) CONFORMING AMENDMENTS
TO PROVISIONS
OF 
LAW RELATED TO FREEDOM OF INFORMATION ACT EXEMP-
TIONS.—Such title is further amended— 
(1) in section 130e— 
(A) by striking subsection (d);
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(B) by redesignating subsections (e) and (f) 
as subsections (d) and (e), respectively; and 
(C) in subsection (d), as so redesignated— 
(i) in the first sentence, by striking ‘‘, 
or the Secretary’s designee,’’; and 
(ii) in the second sentence, by striking 
‘‘, through the Office of the Director of Ad-
ministration and Management’’; and 
(2) in section 2254a— 
(A) by striking subsection (c); 
(B) by redesignating subsection (d) as sub-
section (c); and 
(C) in subsection (c), as so redesignated— 
(i) in the first sentence, by striking ‘‘, 
or the Secretary’s designee,’’; and 
(ii) in the second sentence, by striking 
‘‘, through the Office of the Director of Ad-
ministration and Management’’. 
(f) REMOVAL OF CHIEF MANAGEMENT OFFICER AS 
REQUIRED COORDINATOR
ON DEFENSE RESALE MAT-
TERS.—Section 631(a) of the National Defense Authoriza-
tion Act for Fiscal Year 2020 (Public Law 116–92; 10 
U.S.C. 2481 note) is amended by striking ‘‘, in coordination 
with the Chief Management Officer of the Department of 
Defense,’’.
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† HR 2670 EAS 
Subtitle B—Other Department of 
Defense Organization and Man-
agement Matters 
SEC. 921. JOINT ENERGETICS TRANSITION OFFICE. 
(a) IN GENERAL.—The Secretary of Defense shall re-
align roles, responsibilities, and resources as necessary to 
establish a Joint Energetics Transition Office (in this sec-
tion referred to as the ‘‘Office’’). 
(b) RESPONSIBILITIES.—The Office shall— 
(1) develop and periodically update an energetic 
materials strategic plan and investment strategy to 
guide current and future investments in new and leg-
acy energetic materials and technologies, including 
by— 
(A) developing or supporting the develop-
ment of strategies and roadmaps, under the fu-
ture-years defense program under section 221 of 
title 10, United States Code, and the program 
objective memorandum process, for energetic ma-
terials and technologies; and 
(B) initiating special studies or analyses to 
inform the program objective memorandum proc-
ess; 
(2) coordinate and synchronize existing research, 
development, test, and evaluation efforts in energetic
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materials across the Department of Defense to iden-
tify promising new energetic materials and tech-
nologies— 
(A) to mature, integrate, prototype, and 
demonstrate novel energetic materials and tech-
nologies, including classification and character-
ization testing of new materials and manufac-
turing technologies; 
(B) to expedite testing, evaluation, and ac-
quisition of energetic materials and technologies 
to meet the emergent needs of the Department, 
including the rapid integration of promising 
new materials and other promising energetic 
compounds into existing and planned weapons 
platforms; and 
(C) to identify existing or establish new 
prototyping demonstration venues to integrate 
advanced technologies that speed the maturation 
and deployment of future energetic materials; 
(3) oversee a process to expedite the qualification 
process for energetic materials, from discovery 
through integration into weapon systems, and rec-
ommend changes to laws, regulations, and policies 
that present barriers that extend timelines for that 
process; and
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(4) carry out such other responsibilities relating 
to energetic materials as the Secretary shall specify. 
(c) REPORT REQUIRED.—The Deputy Secretary of De-
fense shall submit to the congressional defense committees— 
(1) not later than 60 days after the date of the 
enactment of this Act, a report on the status of the 
establishment of the Office under subsection (a); and 
(2) not later than one year after such date of en-
actment, a report on the measures taken to provide 
the Office with the staff and resources necessary for 
the Office to carry out its responsibilities under sub-
section (b). 
SEC. 922. TRANSITION OF OVERSIGHT RESPONSIBILITY 
FOR THE DEFENSE TECHNOLOGY SECURITY 
ADMINISTRATION. 
(a) PLAN REQUIRED.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary of De-
fense shall develop a transition plan to realign the Defense 
Technology Security Administration under the authority, 
direction, and control of the Assistant Secretary of Defense 
for Industrial Base Policy. 
(b) SUBMISSION OF PLAN.—Not later than 7 days after 
the date on which the Secretary completes development of 
the plan required by subsection (a), the Secretary shall sub-
mit the plan to the congressional defense committees.
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(c) IMPLEMENTATION OF PLAN.—Not later than 180 
days after the date on which the Secretary completes devel-
opment of the plan required by subsection (a), the Secretary 
shall realign the Defense Technology Security Administra-
tion under the authority, direction, and control of the As-
sistant Secretary of Defense for Industrial Base Policy. 
SEC. 923. INTEGRATED AND AUTHENTICATED ACCESS TO 
DEPARTMENT OF DEFENSE SYSTEMS FOR 
CERTAIN CONGRESSIONAL STAFF FOR OVER-
SIGHT PURPOSES. 
Section 1046(a) of the James M. Inhofe National De-
fense Authorization Act for Fiscal Year 2023 (Public Law 
117–263) is amended— 
(1) in paragraph (1)(B), by striking ‘‘; and’’ 
and inserting a semicolon; 
(2) in paragraph (2), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(3) to the extent feasible, be integrated with 
software used by the Department of Defense Parking 
Management Office to validate parking requests.’’.
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† HR 2670 EAS 
SEC. 924. INTEGRATION OF PRODUCTIVITY SOFTWARE 
SUITES FOR SCHEDULING DATA. 
The Secretary of Defense shall ensure that the Depart-
ment of Defense is capable of scheduling congressional en-
gagements in a digitally interoperable manner by not later 
than February 25, 2024, either through— 
(1) integrating the productivity software suite of 
the Department of Defense with the productivity soft-
ware suite of the congressional defense committees; or 
(2) enabling the automated transmission of 
scheduling data through another software solution. 
SEC. 925. OPERATIONALIZING AUDIT READINESS. 
(a) METRICS REQUIRED.— 
(1) IN GENERAL.—The Secretary of Defense, in 
coordination with the Secretaries of the military de-
partments, shall develop a set of command audit 
metrics that link existing audit readiness goals and 
metrics for the financial management community 
with unit leadership goals and metrics to provide 
operationally relevant performance measures for use 
by unit commanders. 
(2) LEVERAGING
SUPPORT.—In developing the 
metrics required by paragraph (1), the Secretary may 
leverage support from an existing federally funded re-
search and development center or university-affiliated 
research center.
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† HR 2670 EAS 
(3) DEADLINE.—An initial set of metrics shall 
be developed and implemented under paragraph (1) 
not later than April 30, 2025. 
(b) TRAINING.— 
(1) IN GENERAL.—The President of the Defense 
Acquisition University shall develop training cur-
ricula to support the workforce of the Department of 
Defense in understanding, implementing, and uti-
lizing the metrics developed under subsection (a) in 
the day-to-day performance of their command and 
leadership duties. 
(2) DEADLINE.—An initial training curriculum 
shall be developed and implemented under paragraph 
(1) not later than April 30, 2025. 
(c) LEADER PERFORMANCE ASSESSMENTS.— 
(1) IN GENERAL.—The Secretary of Defense, in 
coordination with the Secretaries of the military de-
partments, shall evaluate means by which the metrics 
developed under subsection (a) can be used in the per-
formance evaluation of unit commanders. 
(2) BRIEFING REQUIRED.—Not later than Sep-
tember 30, 2024, the Secretary shall provide a brief-
ing to the Committees on Armed Services of the Sen-
ate and the House of Representatives on the evalua-
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tion conducted under paragraph (1). The briefing 
shall include the following elements: 
(A) Identification of the appropriate com-
mand echelon at which to assess unit leader per-
formance using the metrics developed under sub-
section (a). 
(B) Evaluations of available measures to re-
ward superior or above average performance 
with respect to such metrics. 
(C) Assessment of the potential value, and 
challenges, to integrating such measures into the 
annual performance evaluations for designated 
unit leaders. 
(D) Any other issues the Secretary considers 
appropriate. 
SEC. 926. NEXT GENERATION BUSINESS HEALTH METRICS. 
(a) METRICS REQUIRED.—The Secretary of Defense, 
acting through the Director of Administration and Manage-
ment and in coordination with the Secretaries of the mili-
tary departments, shall develop an updated set of business 
health metrics to inform decision-making by senior leaders 
of the Department of Defense. 
(b) ELEMENTS.—In developing the metrics required by 
subsection (a), the Director shall—
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† HR 2670 EAS 
(1) using the current literature on performance 
measurement, determine what additional new metrics 
should be implemented, or current metrics should be 
adapted, to reduce output-based measures and empha-
size objective, measurable indicators aligned to endur-
ing strategic goals of the Department of Defense; 
(2) assess the current business processes of the 
Department and provide recommendations to align 
the metrics with available data sources to determine 
what gaps might exist in such processes; 
(3) ensure that data can be collected automati-
cally and, on a long-term basis, in a manner that 
provides for longitudinal analysis; 
(4) link the metrics with the Strategic Manage-
ment Plan and other performance documents guiding 
the Department; 
(5) identify any shortfalls in resources, data, 
training, policy, or law that could be an impediment 
to implementing the metrics; 
(6) revise leading and lagging indicators associ-
ated with each such metric to provide a benchmark 
against which to assess progress; 
(7) improve visualization of and comprehension 
for the use of the metrics in data-driven decision-mak-
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† HR 2670 EAS 
ing, including adoption of new policies and training 
as needed; 
(8) incorporate the ability to aggregate and 
disaggregate data to provide the ability to focus on 
functional, component-level metrics; and 
(9) increase standardization of the use and col-
lection of business health metrics across the Depart-
ment. 
(c) ADDITIONAL SUPPORT.—In developing the metrics 
required by subsection (a), the Director may leverage sup-
port from an existing federally funded research and develop-
ment center or university-affiliated research center. 
(d) BRIEFING REQUIRED.—Not later than January 
30, 2025, the Director shall brief the Committees on Armed 
Services of the Senate and the House of Representatives on 
the development of the metrics required by subsection (a). 
SEC. 927. INDEPENDENT ASSESSMENT OF DEFENSE BUSI-
NESS ENTERPRISE ARCHITECTURE. 
(a) IN GENERAL.—The Secretary of Defense shall select 
a federally funded research and development center or a 
university affiliated research center to conduct an inde-
pendent assessment of the defense business enterprise archi-
tecture developed under section 2222(e) of title 10, United 
States Code.
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(b) ELEMENTS.—The assessment required by sub-
section (a) shall include the following elements: 
(1) An assessment of the effectiveness of the de-
fense business enterprise architecture as of the date of 
the enactment of this Act in providing an adequate 
and useful framework for planning, managing, and 
integrating the business systems of the Department of 
Defense. 
(2) A comparison of the defense business enter-
prise architecture with similar models in use by other 
government agencies in the United States, foreign 
governments, and major commercial entities, includ-
ing an assessment of any lessons from such models 
that might be applied to the defense business enter-
prise architecture. 
(3) An assessment of the adequacy of the defense 
business enterprise architecture in informing business 
process reengineering and being sufficiently respon-
sive to changes in business processes over time. 
(4) An identification of any shortfalls or imple-
mentation challenges in the utility of the defense busi-
ness enterprise architecture. 
(5) Recommendations for replacement of the ex-
isting defense business enterprise architecture or for 
modifications to the existing architecture to make that
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architecture and the process for updating that archi-
tecture more effective and responsive to the business 
process needs of the Department. 
(c) INTERIM BRIEFING.—Not later than April 1, 2024, 
the Secretary shall brief the Committees on Armed Services 
of the Senate and the House of Representatives on the status 
of the assessment required by subsection (a). 
(d) FINAL REPORT.—Not later than January 30, 
2025, the Secretary shall submit to the Committees on 
Armed Services of the Senate and the House of Representa-
tives a report on the results of the assessment required by 
subsection (a). 
SEC. 928. LIMITATION ON ESTABLISHMENT OF NEW DIVER-
SITY, EQUITY, AND INCLUSION POSITIONS; 
HIRING FREEZE. 
(a) IN GENERAL.—During the period described in sub-
section (b), the Secretary of Defense may not— 
(1) establish any new positions within the De-
partment of Defense with responsibility for matters 
relating to diversity, equity, and inclusion; or 
(2) fill any vacancies in positions in the Depart-
ment with responsibility for such matters. 
(b) PERIOD DESCRIBED.—The period described in this 
subsection is the period—
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(1) beginning on the date of the enactment of 
this Act; and 
(2) ending on the date on which the Comptroller 
General of the United States submits to Congress the 
review of the Department of Defense diversity, equity, 
and inclusion workforce required by the report of the 
Committee on Armed Services of the Senate accom-
panying the National Defense Authorization Act for 
Fiscal Year 2024. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
SEC. 1001. GENERAL TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.— 
(1) AUTHORITY.—Upon determination by the 
Secretary of Defense that such action is necessary in 
the national interest, the Secretary may transfer 
amounts of authorizations made available to the De-
partment of Defense in this division for fiscal year 
2024 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and 
be available for the same purposes as the authoriza-
tion to which transferred. 
(2) LIMITATION.—Except as provided in para-
graph (3), the total amount of authorizations that the
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† HR 2670 EAS 
Secretary may transfer under the authority of this 
section may not exceed $6,000,000,000. 
(3) EXCEPTION FOR TRANSFERS BETWEEN MILI-
TARY
PERSONNEL
AUTHORIZATIONS.—A transfer of 
funds between military personnel authorizations 
under title IV shall not be counted toward the dollar 
limitation in paragraph (2). 
(b) LIMITATIONS.—The authority provided by sub-
section (a) to transfer authorizations— 
(1) may only be used to provide authority for 
items that have a higher priority than the items from 
which authority is transferred; and 
(2) may not be used to provide authority for an 
item that has been denied authorization by Congress. 
(c) EFFECT ON AUTHORIZATION AMOUNTS.—A trans-
fer made from one account to another under the authority 
of this section shall be deemed to increase the amount au-
thorized for the account to which the amount is transferred 
by an amount equal to the amount transferred. 
(d) NOTICE
TO
CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under sub-
section (a).
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† HR 2670 EAS 
SEC. 1002. ANNUAL REPORT ON BUDGET PRIORITIZATION 
BY SECRETARY OF DEFENSE AND MILITARY 
DEPARTMENTS. 
(a) IN GENERAL.—Chapter 9 of title 10, United States 
Code, is amended by inserting after section 222d the fol-
lowing new section: 
‘‘§ 222e. Programs, projects, and activities that were 
internally reduced or eliminated in the 
submission of the President’s budget: an-
nual report 
‘‘(a) IN GENERAL.—The Secretary of Defense, acting 
through the Secretaries of the military departments and the 
officers of Department of Defense agencies and offices not 
under the control of a Secretary of a military department, 
shall submit to the congressional defense committees each 
year, not later than 15 days after the submission of the 
budget of the President for the fiscal year beginning in such 
year under section 1105(a) of title 31, a report that includes 
organized tabulations of programs, projects, and activities 
the total obligational authority for which was reduced or 
eliminated in the current budget year proposal compared 
to the prior-year projection for the current year. 
‘‘(b) ELEMENTS.—The tabulations required under sub-
section (a) shall include, for each program, project, or activ-
ity that was internally reduced or eliminated, the following 
elements:
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† HR 2670 EAS 
‘‘(1) Whether the program, project, or activity 
was eliminated or reduced and which fiscal year it 
was eliminated or reduced in. 
‘‘(2) Appropriations sub-account. 
‘‘(3) The appropriate program element, line item 
number, or sub-activity group. 
‘‘(4) Program, project, or activity name. 
‘‘(5) Prior year enacted appropriation. 
‘‘(6) Prior year projected current year budget. 
‘‘(7) Current year budget request. 
‘‘(8) If applicable, the amount reduced or saved 
by the current year elimination or reduction over the 
future years defense plan. 
‘‘(9) The rationale for reduction or elimination. 
‘‘(c) FORM.—The report required under subsection (a) 
shall be submitted in machine readable, electronic form.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 9 of such title is amended by in-
serting after the item relating to section 222d the following 
new item: 
‘‘222e. Programs, projects, and activities that were internally reduced or elimi-
nated in the submission of the President’s budget: annual re-
port.’’.
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† HR 2670 EAS 
SEC. 1003. ADDITIONAL REPORTING REQUIREMENTS RE-
LATED TO UNFUNDED PRIORITIES. 
Section 222a(c)(1) of title 10, United States Code, is 
amended by adding at the end the following new subpara-
graph: 
‘‘(E) For each priority— 
‘‘(i) the requirement that will be ad-
dressed which is not in the base budget re-
quest; 
‘‘(ii) the reason why the priority was 
not included in the base budget request; 
‘‘(iii) a description of previous funding 
to address the requirement; 
‘‘(iv) an assessment of the impact of 
the priority on the future years defense 
plan.’’. 
SEC. 1004. SENSE OF THE SENATE ON NEED FOR EMER-
GENCY SUPPLEMENTAL APPROPRIATIONS. 
It is the sense of the Senate that— 
(1) section 101 of the Fiscal Responsibility Act 
of 2023 (Public Law 118–5) imposes limits on discre-
tionary spending in the defense and nondefense cat-
egories; 
(2) if those spending limits for either category 
are breached, then across-the-board sequestration cuts 
are triggered on that category to eliminate the breach;
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(3) the enactment of authorization and appro-
priations legislation for the Department of Defense 
will provide inherent cost savings that continuing res-
olutions do not provide; 
(4) there are growing national security concerns 
that require additional funds beyond the revised secu-
rity spending limit, to include continued support to 
the Ukrainian armed forces, additional munitions 
production, additional large surface combatants, ship-
building industrial base modernization investments, 
submarine industrial base and supply chain manage-
ment, additional production of wheeled and tracked 
combat vehicles, and emergent capabilities and exer-
cises in the United States Indo-Pacific Command; 
(5) as the Senate Majority Leader Chuck Schu-
mer stated on June 1, 2023, ‘‘This debt ceiling deal 
does nothing to limit the Senate’s ability to appro-
priate emergency/supplemental funds to ensure our 
military capabilities are sufficient to deter China, 
Russia, and our other adversaries and respond to on-
going and growing national security threats, includ-
ing Russia’s ongoing war of aggression against 
Ukraine, our ongoing competition with China and its 
growing threat to Taiwan, Iranian threats to Amer-
ican interests and those of our partners in the Middle
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† HR 2670 EAS 
East, or any other emerging security crisis; nor does 
this debt ceiling deal limit the Senate’s ability to ap-
propriate emergency/supplemental funds to respond to 
various national issues, such as disaster relief, or 
combating the fentanyl crisis, or other issues of na-
tional importance.’’; and 
(6) the President should expeditiously send emer-
gency funding requests to the Senate for consideration 
so that those needs can receive sufficient and addi-
tional funds. 
Subtitle B—Counterdrug Activities 
SEC. 1011. DISRUPTION OF FENTANYL TRAFFICKING. 
(a) SENSE OF SENATE.—It is the sense of the Senate 
that— 
(1) fentanyl trafficking across the borders of the 
United States, and the consequences of that traf-
ficking, constitute an unprecedented, nontraditional, 
and long-term threat to the national security of the 
United States; 
(2) transnational criminal organizations have 
established effective control over significant areas 
within Mexico, which has enabled the development of 
fentanyl production and trafficking infrastructure; 
(3) combating fentanyl trafficking demands—
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† HR 2670 EAS 
(A) improved interagency command, con-
trol, communications, and intelligence sharing to 
enhance the effectiveness of the interdiction of 
fentanyl at the borders of the United States; and 
(B) whole-of-government solutions com-
prised of an integrated and synchronized inter-
agency organizational construct committed to 
dismantling the process of trafficking fentanyl 
from chemical precursor to production to deliv-
ery in the United States and enabling partner 
nations to do the same; 
(4) it is within the national security interest of 
the United States for Federal, State, and local law 
enforcement agencies, the Department of Defense, the 
Department of State, other counter-drug agencies, and 
stakeholders to effectively communicate and that the 
failure of effective communication affects the preven-
tion, interdiction, and prosecution of fentanyl traf-
ficking and distribution into and within the United 
States; and 
(5) the United States must partner with Mexico 
and Canada to combat fentanyl trafficking through 
institution building, the dismantling of cartels, and 
seizures of fentanyl in Mexico, Canada, and intra-
state transit zones.
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† HR 2670 EAS 
(b) DEVELOPMENT
OF
STRATEGY
TO
COUNTER 
FENTANYL TRAFFICKING AND REPORT.— 
(1) STRATEGY.— 
(A) IN GENERAL.—Not later than 120 days 
after the date of the enactment of this Act, the 
Secretary of Defense, in coordination with other 
Federal agencies as the Secretary considers ap-
propriate, shall develop and submit to the appro-
priate congressional committees a strategy to use 
existing authorities, including the authorities 
under section 124 of title 10, United States Code, 
as appropriate, to target, disrupt, or degrade 
threats to the national security of the United 
States caused or exacerbated by fentanyl traf-
ficking. 
(B) CONTENTS.—The strategy required by 
subparagraph (A) shall outline how the Sec-
retary of Defense will— 
(i) leverage existing authorities regard-
ing counterdrug and counter-transnational 
organized crime activities with a counter- 
fentanyl nexus to detect and monitor activi-
ties related to fentanyl trafficking; 
(ii) support operations to counter 
fentanyl trafficking carried out by other
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† HR 2670 EAS 
Federal agencies, State, Tribal, and local 
law enforcement agencies, or foreign secu-
rity forces; 
(iii) coordinate efforts of the Depart-
ment of Defense for the detection and moni-
toring of aerial, maritime, and surface traf-
fic suspected of carrying fentanyl bound for 
the United States, including efforts to unify 
the use of technology, surveillance, and re-
lated resources across air, land, and mari-
time domains to counter fentanyl traf-
ficking, including with respect to data col-
lection, data processing, and integrating 
sensors across such domains; 
(iv) provide military-unique capabili-
ties to support activities by the United 
States Government and foreign security 
forces to detect and monitor the trafficking 
of fentanyl and precursor chemicals used in 
fentanyl production, consistent with section 
284(b)(10) of title 10, United States Code; 
(v) leverage existing counterdrug and 
counter-transnational organized crime pro-
grams of the Department to counter 
fentanyl trafficking;
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† HR 2670 EAS 
(vi) assess existing training programs 
of the Department and provide training for 
Federal, State, Tribal, and local law en-
forcement agencies conducted by special op-
erations forces to counter fentanyl traf-
ficking, consistent with section 284(b) of 
title 10, United States Code; 
(vii) engage with foreign security forces 
to ensure the counterdrug and counter- 
transnational organized crime programs of 
the Department— 
(I) support efforts to counter 
fentanyl trafficking; and 
(II) build capacity to interdict 
fentanyl in foreign countries, including 
programs to train security forces in 
partner countries to counter fentanyl 
trafficking, including countering illicit 
flows of fentanyl precursors, consistent 
with sections 284(c) and 333 of title 
10, United States Code; 
(viii) use the North American Defense 
Ministerial and the bilateral defense work-
ing groups and bilateral military coopera-
tion round tables with Canada and Mexico
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† HR 2670 EAS 
to increase domain awareness to detect and 
monitor fentanyl trafficking; and 
(ix) evaluate existing policies, proce-
dures, processes, and resources that affect 
the ability of the Department to counter 
fentanyl trafficking consistent with existing 
counterdrug and counter-transnational or-
ganized crime authorities. 
(C) FORM.—The strategy required by sub-
paragraph (A) shall be submitted in unclassified 
form, but may include a classified annex. 
(D) BRIEFING.—Not later than 45 days 
after the submission of the strategy required by 
subparagraph (A), the Secretary shall provide to 
the appropriate congressional committees a brief-
ing on the strategy and plans for its implemen-
tation. 
(2) REPORT ON LAW ENFORCEMENT REIMBURSE-
MENT.—The Secretary of Defense shall submit to the 
appropriate congressional committees a report on— 
(A) any goods or services provided under 
section 1535 of title 31, United States Code 
(commonly known as the ‘‘Economy Act’’), dur-
ing the period beginning on January 1, 2010, 
and ending on the date on which the report is
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submitted, by the Department of Defense to Fed-
eral civilian law enforcement agencies for 
counterdrug and counter-transnational organized 
crime operations on the southern border of the 
United States; and 
(B) any payments made for such goods or 
services under such section during such period. 
(c) COOPERATION WITH MEXICO.— 
(1) IN GENERAL.—The Secretary of Defense shall 
seek to enhance cooperation with defense officials of 
the Government of Mexico to target, disrupt, and de-
grade transnational criminal organizations within 
Mexico that traffic fentanyl. 
(2) REPORT ON ENHANCED SECURITY COOPERA-
TION.— 
(A) IN GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the appro-
priate congressional committees a report on ef-
forts to enhance cooperation with defense officials 
of the Government of Mexico specified in para-
graph (1). 
(B) CONTENTS.—The report required by 
subparagraph (A) shall include—
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(i) an assessment of the impact of the 
efforts to enhance cooperation described in 
paragraph (1) on targeting, disrupting, and 
degrading fentanyl trafficking; 
(ii) a description of limitations on 
such efforts, including limitations imposed 
by the Government of Mexico; 
(iii) recommendations by the Secretary 
on actions to further improve cooperation 
with defense officials of the Government of 
Mexico; 
(iv) recommendations by the Secretary 
on actions of the Department of Defense to 
further improve the capabilities of the Gov-
ernment of Mexico to target, disrupt, and 
degrade fentanyl trafficking; and 
(v) any other matter the Secretary con-
siders relevant. 
(C) FORM.—The report required by sub-
paragraph (A) may be submitted in unclassified 
form but shall include a classified annex. 
(d) DEFINITIONS.—In this section: 
(1) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means—
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(A) the Committee on Armed Services of the 
Senate; and 
(B) the Committee on Armed Services of the 
House of Representatives. 
(2) FENTANYL.—The term ‘‘fentanyl’’ means 
fentanyl and any fentanyl-related substance. 
(3) FENTANYL-RELATED SUBSTANCE.—The term 
‘‘fentanyl-related substance’’— 
(A) means any substance that is struc-
turally related to fentanyl by 1 or more modi-
fications of— 
(i) replacement of the phenyl portion of 
the phenethyl group by any monocycle, 
whether or not further substituted in or on 
the monocycle; 
(ii) substitution in or on the phenethyl 
group with alkyl, alkenyl, alkoxyl, hydroxyl, 
halo, haloalkyl, amino, or nitro groups; 
(iii) substitution in or on the piper-
idine ring with alkyl, alkenyl, alkoxyl, 
ester, 
ether, 
hydroxyl, 
halo, 
haloalkyl, 
amino, or nitro groups; 
(iv) replacement of the aniline ring 
with any aromatic monocycle whether or
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not further substituted in or on the aro-
matic monocycle; and 
(v) replacement of the N-propionyl 
group with another acyl group; and 
(B) does not include a substance described 
in subparagraph (A) that is— 
(i) controlled by action of the Attorney 
General pursuant to section 201 of the Con-
trolled Substances Act (21 U.S.C. 811); 
(ii) expressly listed in Schedule I of 
section 202(c) of that Act (21 U.S.C. 812) 
or another schedule by a statutory provi-
sion; or 
(iii) removed from Schedule I, or re-
scheduled to another schedule, pursuant to 
section 201(k) of that Act (21 U.S.C. 
811(k)). 
(4) ILLEGAL MEANS.—The term ‘‘illegal means’’ 
includes the trafficking of money, human trafficking, 
illicit financial flows, illegal trade in natural re-
sources and wildlife, trade in illegal drugs and weap-
ons, and other forms of illegal means determined by 
the Secretary of Defense. 
(5) SECURITY
COOPERATION
PROGRAM.—The 
term ‘‘security cooperation program’’ has the meaning
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given that term in section 301 of title 10, United 
States Code. 
(6) TRANSNATIONAL CRIMINAL ORGANIZATION.— 
(A) IN GENERAL.—The term ‘‘transnational 
criminal organization’’ means a group, network, 
and 
associated 
individuals 
who 
operate 
transnationally for the purpose of obtaining 
power, influence, or monetary or commercial 
gain, wholly or in part by illegal means, while 
advancing their activities through a pattern of 
crime, corruption, or violence and protecting 
their illegal activities through a transnational 
organizational structure and the exploitation of 
public corruption or transnational logistics, fi-
nancial, or communication mechanisms. 
(B) 
ADDITIONAL
ORGANIZATIONS.—The 
term ‘‘transnational criminal organization’’ in-
cludes any transnational criminal organization 
identified in the most recent Drug Threat Assess-
ment of the Drug Enforcement Agency. 
SEC. 1012. ENHANCED SUPPORT FOR COUNTERDRUG AC-
TIVITIES 
AND 
ACTIVITIES 
TO 
COUNTER 
TRANSNATIONAL ORGANIZED CRIME. 
Section 284(b)(9) of title 10, United States Code, is 
amended by striking ‘‘linguist and intelligence analysis’’
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and inserting ‘‘linguist, intelligence analysis, and plan-
ning’’. 
SEC. 
1013. 
MODIFICATION 
OF 
SUPPORT 
FOR 
COUNTERDRUG ACTIVITIES AND ACTIVITIES 
TO COUNTER TRANSNATIONAL ORGANIZED 
CRIME: INCREASE IN CAP FOR SMALL SCALE 
CONSTRUCTION PROJECTS. 
Section 284(i)(3) of title 10, United States Code, is 
amended 
by 
striking 
‘‘$750,000’’ 
and 
inserting 
‘‘$1,500,000’’. 
SEC. 1014. BUILDING THE CAPACITY OF ARMED FORCES OF 
MEXICO TO COUNTER THE THREAT POSED BY 
TRANSNATIONAL CRIMINAL ORGANIZATIONS. 
(a) PILOT PROGRAM.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of De-
fense, in coordination with the Secretary of State, shall es-
tablish a pilot program to assess the feasibility and advis-
ability of building the capacity of armed forces of Mexico 
in the United States on goals, jointly agreed to by the Gov-
ernments of the United States and Mexico, to counter the 
threat posed by transnational criminal organizations, in-
cluding through— 
(1) operations designed, at least in part, by the 
United States, to counter that threat; and
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(2) in consultation with the appropriate civilian 
government 
agencies 
specializing 
in 
countering 
transnational criminal organizations— 
(A) joint network analysis; 
(B) counter threat financing; 
(C) counter illicit trafficking (including 
narcotics, weapons, and human trafficking, and 
illicit trafficking in natural resources); and 
(D) assessments of key nodes of activity of 
transnational criminal organizations. 
(b) PLAN.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall submit to the appropriate congressional 
committees a plan for implementing the pilot pro-
gram required by subsection (a) over a period of five 
years, including the costs of administering the pro-
gram during such period. 
(2) DEFINITION
OF
APPROPRIATE
CONGRES-
SIONAL COMMITTEES.—In this subsection, the term 
‘‘appropriate congressional committees’’ means— 
(A) the Committee on Armed Services, the 
Committee on Foreign Relations, and the Com-
mittee on Appropriations of the Senate; and
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(B) the Committee on Armed Services, the 
Committee on Foreign Affairs, and the Com-
mittee on Appropriations of the House of Rep-
resentatives. 
Subtitle C—Naval Vessels 
SEC. 1021. MODIFICATION OF AUTHORITY TO PURCHASE 
USED VESSELS UNDER THE NATIONAL DE-
FENSE SEALIFT FUND. 
Section 2218(f)(3) of title 10, United States Code, is 
amended— 
(1) by striking subparagraphs (C), (E) and (G); 
and 
(2) by redesignating subparagraphs (D) and (F) 
as subparagraphs (C) and (D), respectively. 
SEC. 1022. AMPHIBIOUS WARSHIP FORCE AVAILABILITY. 
Section 8062 of title 10, United States Code, is amend-
ed— 
(1) in subsection (e)— 
(A) in paragraph (2), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (3), by striking the period 
at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph:
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‘‘(4) the Navy adjusts scheduled maintenance 
and repair actions to maintain a minimum of 24 
amphibious warfare ships operationally available for 
worldwide deployment.’’; and 
(2) by redesignating the second subsection (g) 
(defining amphibious warfare ship) as subsection (h). 
SEC. 1023. PROHIBITION ON RETIREMENT OF CERTAIN 
NAVAL VESSELS. 
None of the funds authorized to be appropriated by this 
Act for fiscal year 2024 may be obligated or expended to 
retire, prepare to retire, or place in storage any of the fol-
lowing naval vessels: 
(1) USS Germantown (LSD 42). 
(2) USS Gunston Hall (LSD 44). 
(3) USS Tortuga (LSD 46). 
(4) USS Shiloh (CG 67). 
SEC. 1024. REPORT ON THE POTENTIAL FOR AN ARMY AND 
NAVY JOINT EFFORT FOR WATERCRAFT VES-
SELS. 
(a) REPORT REQUIRED.—Not later than February 29, 
2024, the Secretary of the Navy, in coordination with the 
Secretary of the Army, shall submit to the congressional de-
fense committees a report on the feasibility of conducting 
a joint Army and Navy effort to develop and field a family 
of watercraft vessels to support the implementation of the
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Marine Corps concept of expeditionary advanced base oper-
ations and Army operations in maritime environments. 
(b) ELEMENTS.—The report required by subsection (a) 
shall include an assessment of whether a shared base plat-
form could meet requirements of the Department of the 
Navy and the Department of the Army, and, if so, an as-
sessment of the benefits and challenges of procuring a tech-
nical data package to allow simultaneous construction of 
such platform by multiple builders and using block buy au-
thorities. 
Subtitle D—Counterterrorism 
SEC. 1031. EXTENSION OF PROHIBITION ON USE OF FUNDS 
TO CLOSE OR RELINQUISH CONTROL OF 
UNITED STATES NAVAL STATION, GUANTA-
NAMO BAY, CUBA. 
Section 1036 of the National Defense Authorization 
Act for Fiscal Year 2018 (Public Law 115–91; 131 Stat. 
1551), as most recently amended by section 1034 of the 
James M. Inhofe National Defense Authorization Act for 
Fiscal Year 2023 (Public Law 117–263), is further amend-
ed by striking ‘‘2023’’ and inserting ‘‘2024’’.
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SEC. 1032. EXTENSION OF PROHIBITION ON USE OF FUNDS 
FOR TRANSFER OR RELEASE OF INDIVIDUALS 
DETAINED AT UNITED STATES NAVAL STA-
TION, GUANTANAMO BAY, CUBA, TO THE 
UNITED STATES. 
Section 1033 of the John S. McCain National Defense 
Authorization Act for Fiscal Year 2019 (Public Law 115– 
232; 132 Stat. 1953), as most recently amended by section 
1031 of the James M. Inhofe National Defense Authoriza-
tion Act for Fiscal Year 2023 (Public Law 117–263), is 
further amended by striking ‘‘December 31, 2023’’ and in-
serting ‘‘December 31, 2024’’. 
SEC. 1033. EXTENSION OF PROHIBITION ON USE OF FUNDS 
TO CONSTRUCT OR MODIFY FACILITIES IN 
THE UNITED STATES TO HOUSE DETAINEES 
TRANSFERRED FROM UNITED STATES NAVAL 
STATION, GUANTANAMO BAY, CUBA. 
Section 1034(a) of the John S. McCain National De-
fense Authorization Act for Fiscal Year 2019 (Public Law 
115–232; 132 Stat. 1954), as most recently amended by sec-
tion 1032 of the James M. Inhofe National Defense Author-
ization Act for Fiscal Year 2023 (Public Law 117–263), 
is further amended by striking ‘‘December 31, 2023’’ and 
inserting ‘‘December 31, 2024’’.
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† HR 2670 EAS 
SEC. 1034. EXTENSION OF PROHIBITION ON USE OF FUNDS 
FOR TRANSFER OR RELEASE OF INDIVIDUALS 
DETAINED AT UNITED STATES NAVAL STA-
TION, GUANTANAMO BAY, CUBA, TO CERTAIN 
COUNTRIES. 
Section 1035 of the John S. McCain National Defense 
Authorization Act for Fiscal Year 2019 (Public Law 115– 
232; 132 Stat. 1954), as most recently amended by section 
1033 of the James M. Inhofe National Defense Authoriza-
tion Act for Fiscal Year 2023 (Public Law 117–263), is 
further amended by striking ‘‘December 31, 2023’’ and in-
serting ‘‘December 31, 2024’’. 
Subtitle E—Miscellaneous 
Authorities and Limitations 
SEC. 1041. EXTENSION OF ADMISSION TO GUAM OR THE 
COMMONWEALTH OF THE NORTHERN MAR-
IANA ISLANDS FOR CERTAIN NONIMMIGRANT 
H–2B WORKERS. 
Section 6(b)(1)(B) of the Joint Resolution entitled ‘‘A 
Joint Resolution to approve the ‘Covenant to Establish a 
Commonwealth of the Northern Mariana Islands in Polit-
ical Union with the United States of America’, and for 
other purposes’’, approved March 24, 1976 (48 U.S.C. 
1806(b)(1)(B)), is amended, in the matter preceding clause 
(i), by striking ‘‘December 31, 2023’’ and inserting ‘‘Decem-
ber 31, 2029’’.
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SEC. 1042. AUTHORITY TO INCLUDE FUNDING REQUESTS 
FOR THE CHEMICAL AND BIOLOGICAL DE-
FENSE PROGRAM IN BUDGET ACCOUNTS OF 
MILITARY DEPARTMENTS. 
Section 1701(d)(2) of the National Defense Authoriza-
tion Act for Fiscal Year 1994 (50 U.S.C. 1522(d)(2)) is 
amended by striking ‘‘may not be included in the budget 
accounts’’ and inserting ‘‘may be included in the budget 
accounts’’. 
SEC. 1043. UNFAVORABLE SECURITY CLEARANCE ELIGI-
BILITY DETERMINATIONS AND APPEALS. 
(a) ADMINISTRATIVE DUE PROCESS PROCEDURES FOR 
COVERED INDIVIDUALS SEEKING OR HAVING ACCESS TO 
CLASSIFIED INFORMATION OR SENSITIVE COMPARTMENT 
INFORMATION.— 
(1) IN GENERAL.—Each head of a component of 
the Department of Defense shall provide to each cov-
ered individual described in paragraph (2) of such 
component seeking or having access to classified infor-
mation or sensitive compartment information with 
administrative due process procedures described in 
paragraph (3) through the Defense Office of Hearings 
and Appeals. 
(2) COVERED INDIVIDUAL DESCRIBED.—A cov-
ered individual described in this paragraph is a 
member of the Armed Forces, a civilian employee em-
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† HR 2670 EAS 
ployed by a component of the Department of Defense, 
or a contractor employee described in Department of 
Defense Manual 5220.22, Volume 2 (relating to Na-
tional Industrial Security Program: Industrial Secu-
rity Procedures for Government Activities), or suc-
cessor manual. 
(3) ADMINISTRATIVE DUE PROCESS PROCEDURES 
DESCRIBED.—The administrative due process proce-
dures described in this paragraph are the administra-
tive due process procedures described in Department 
of Defense Directive 5220.6 (relating to Defense In-
dustrial Personnel Security Clearance Review Pro-
gram), or successor directive, and Executive Order 
10865 (50 U.S.C. 3161 note; relating to safeguarding 
classified information within industry). 
(b) HEARINGS, APPEALS, AND FINAL DENIALS AND 
REVOCATIONS OF SECURITY CLEARANCE ELIGIBILITY.—In 
order to simplify, centralize, and unify the administrative 
processes for unfavorable security clearance eligibility deter-
minations for covered individuals described in subsection 
(a)(2), the Secretary of Defense shall ensure that all hear-
ings, appeals, and final denials and revocations of security 
clearance eligibility are performed by the Defense Office of 
Hearings and Appeals with administrative due process pro-
cedures.
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† HR 2670 EAS 
(c) UPDATES TO DEPARTMENT OF DEFENSE MANU-
ALS.—The Secretary of Defense shall update Department 
of Defense Manual 5200.02 (relating to procedures for De-
partment of Defense Personnel Security Program) and De-
partment of Defense Manual 5220.22, Volume 2 (relating 
to National Industrial Security Program: Industrial Secu-
rity Procedures for Government Activities) to conform with 
the requirements of subsections (a) and (b). 
(d) AUTHORITY OF DIRECTOR OF DEFENSE OFFICE OF 
HEARINGS AND APPEALS TO RENDER ELIGIBILITY DETER-
MINATIONS FOR ACCESS TO CLASSIFIED INFORMATION AND 
SENSITIVE COMPARTMENTED INFORMATION.—The Director 
of the Defense Office of Hearings and Appeals may render 
eligibility determinations for access to classified informa-
tion and sensitive compartmented information pursuant to 
procedures and guidelines that the Director shall issue in 
consultation with the Director of National Intelligence. 
(e) DISSEMINATION OF SECURITY RELEVANT INFOR-
MATION.— 
(1) REQUEST FOR SHARING REQUIRED.—In a 
case in which a contractor or civilian employee of the 
Federal Government holding an active security clear-
ance is seeking to transfer that clearance for a new 
position in the Department of Defense and in which 
an agency or department of the Federal Government
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† HR 2670 EAS 
possesses security relevant information about that 
clearance holder that is related to eligibility for access 
to classified information and makes known the exist-
ence of such security relevant information in the com-
monly accessible security clearance databases of the 
Federal Government, but without taking any action 
to suspend or revoke that clearance holder’s security 
clearance, the Department of Defense component con-
sidering the transfer of a clearance shall promptly 
make a request to receive the security relevant infor-
mation from the agency or department in possession 
of such information. 
(2) FAILURE TO SHARE.—In a case in which an 
agency or department of the Federal Government re-
ceives a request to share security relevant information 
about a clearance holder pursuant to paragraph (1) 
but fails to do so within 30 days of the date on which 
the request is made, such failure shall trigger proce-
dural and substantive due process rights, established 
for the purposes of carrying out this section, for the 
clearance holder to challenge the security relevant in-
formation as if the information were the equivalent of 
a suspension, denial, or revocation of the underlying 
clearance.
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† HR 2670 EAS 
(f) PROTECTIONS.—Members of the Armed Forces and 
civilian employees of the Department of Defense may not 
be suspended without pay because a security clearance is 
suspended or revoked prior to the conclusion of any appeal 
process to enable such members and employee to support 
themselves during an appeal process and to support them-
selves without resigning from Government employment and 
thereby losing standing to appeal the suspension or revoca-
tion of access to classified information. 
(g) EFFECTIVE DATE; APPLICABILITY.— 
(1) EFFECTIVE DATE.—This section shall take ef-
fect on the earlier of— 
(A) the date on which the General Counsel 
of the Department of Defense certifies to the 
Committee on Armed Services of the Senate and 
the Committee on Armed Services of the House 
of Representatives that the Defense Office of 
Hearings and Appeals is prepared for the provi-
sions of this section to take effect; or 
(B) September 30, 2024. 
(2) APPLICABILITY.—This section shall apply to 
revocations of eligibility to access classified informa-
tion or sensitive compartmented information that 
occur on or after the date on which this section takes 
effect pursuant to paragraph (1).
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† HR 2670 EAS 
(h) RULE OF CONSTRUCTION.—Nothing in this section 
shall be construed to diminish or otherwise affect the au-
thority of the head of a component of the Department to 
suspend access to classified information or a special access 
program, including sensitive compartmented information, 
in exigent circumstances, should the head determine that 
continued access of a covered individual is inconsistent with 
protecting the national security of the United States. 
SEC. 1044. ASSISTANCE IN SUPPORT OF DEPARTMENT OF 
DEFENSE ACCOUNTING FOR MISSING UNITED 
STATES GOVERNMENT PERSONNEL. 
(a) IN GENERAL.—Section 408 of title 10, United 
States Code, is amended— 
(1) in the section heading, by striking ‘‘Equip-
ment and training of foreign personnel to 
assist in’’ and inserting ‘‘Assistance in sup-
port of’’; 
(2) in subsection (b), by adding at the end the 
following new paragraph: 
‘‘(5) Funds.’’; 
(3) by striking subsections (d) and (f); 
(4) by redesignating subsection (e) as subsection 
(d); and 
(5) by adding at the end the following new sub-
section:
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‘‘(e) ANNUAL REPORT.—Not later than December 31 
of each year, the Secretary of Defense shall submit to the 
congressional defense committees a report on the assistance 
provided under this section during the preceding fiscal 
year.’’. 
(b) TABLE OF SECTIONS AMENDMENT.—The table of 
sections at the beginning of chapter 20 of title 10, United 
States Code, is amended by striking the item relating to 
section 408 and inserting the following new item: 
‘‘408. Assistance in support of Department of Defense accounting for missing 
United States Government personnel.’’. 
SEC. 1045. IMPLEMENTATION OF ARRANGEMENTS TO BUILD 
TRANSPARENCY, CONFIDENCE, AND SECU-
RITY. 
Section 2241 of title 10, United States Code, is amend-
ed by adding at the end the following new subsection: 
‘‘(d) IMPLEMENTATION OF VIENNA DOCUMENT 2011.— 
Amounts appropriated for operation and maintenance may 
be used by the Secretary of Defense for travel, transpor-
tation, and subsistence expenses for meetings and dem-
onstrations hosted by the Department of Defense for the im-
plementation of the Vienna Document 2011 on Confidence 
and Security-Building Measures.’’.
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† HR 2670 EAS 
SEC. 1046. ACCESS TO AND USE OF MILITARY POST OFFICES 
BY UNITED STATES CITIZENS EMPLOYED 
OVERSEAS BY THE NORTH ATLANTIC TREATY 
ORGANIZATION WHO PERFORM FUNCTIONS 
IN SUPPORT OF MILITARY OPERATIONS OF 
THE ARMED FORCES. 
(a) REQUIREMENT TO AUTHORIZE USE OF POST OF-
FICE.—Section 406 of title 39, United States Code, is 
amended by striking ‘‘may authorize the use’’ and inserting 
‘‘shall authorize the use’’. 
(b) BRIEFING REQUIREMENT.—Not later than March 
1, 2024, the Secretary of Defense shall brief the Committees 
on Armed Services of the Senate and House of Representa-
tives on the revision of the Financial Management Regula-
tion to authorize individuals under subparagraph (A) of 
section 406(c)(1) of title 39, United States Code, as amend-
ed by subsection (a), to utilize the authority provided under 
such subparagraph. If there is a determination that this 
authority is not feasible for a legal or financial reason, the 
Secretary shall include the background for those determina-
tions in the briefing.
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† HR 2670 EAS 
SEC. 1047. REMOVAL OF TIME LIMITATIONS OF TEMPORARY 
PROTECTION AND AUTHORIZATION OF REIM-
BURSEMENT FOR SECURITY SERVICES AND 
EQUIPMENT FOR FORMER OR RETIRED DE-
PARTMENT OF DEFENSE PERSONNEL. 
(a) REMOVAL OF TIME LIMITATIONS.—Section 714(b) 
of title 10, United States Code, is amended— 
(1) by redesignating paragraph (6) as para-
graph (7); 
(2) in paragraph (5)— 
(A) by redesignating subparagraph (C) as 
paragraph (6) and moving such paragraph, as 
so redesignated, two ems to the left; and 
(B) by striking ‘‘DURATION
OF
PROTEC-
TION.—’’ and all that follows through the period 
at the end of subparagraph (B) and inserting 
‘‘DURATION OF PROTECTION.—The Secretary of 
Defense shall require periodic reviews, not less 
than once every six months, of the duration of 
protection provided to individuals under this 
subsection.’’; 
(3) in subparagraph (A) of paragraph (7), as re-
designated by paragraph (1) of this subsection, by 
striking ‘‘and of each determination under paragraph 
(5)(B) to extend such protection and security’’.
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† HR 2670 EAS 
(b) AUTHORIZATION OF REIMBURSEMENT OR ACQUISI-
TION OF SECURITY SERVICES.—Section 714 of title 10, 
United States Code, is further amended by adding at the 
end the following new subsection: 
‘‘(e) REIMBURSEMENT.—The Secretary of Defense may 
reimburse a former or retired official who faces serious and 
credible threats arising from duties performed while em-
ployed by the Department for security services and equip-
ment procured at the personal expense of the official, not 
to exceed an aggregate of $15,000,000 in any fiscal year 
for all former and retired officials authorized by the Sec-
retary of Defense for such reimbursement.’’. 
SEC. 1048. ANNUAL DEFENSE POW/MIA ACCOUNTING AGEN-
CY (DPAA) CAPABILITIES REQUIRED TO EX-
PAND ACCOUNTING FOR PERSONS MISSING 
FROM DESIGNATED PAST CONFLICTS. 
(a) IN GENERAL.—Not later than March 1, 2024, and 
annually thereafter, the Defense POW/MIA Accounting 
Agency (DPAA) shall post on a publicly available internet 
website a list of capabilities required to expand accounting 
for persons missing from designated past conflicts and pro-
vide a briefing to Congress on those capabilities. 
(b) AUTHORITY TO ENTER INTO AGREEMENTS.—The 
Defense POW/MIA Accounting Agency may enter into 
agreements with universities or research organizations to
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† HR 2670 EAS 
provide additional capabilities for specialized missions or 
research requirements. 
SEC. 1049. ACCESS TO COMMISSARY AND EXCHANGE PRIVI-
LEGES FOR REMARRIED SPOUSES. 
(a) BENEFITS.—Section 1062 of title 10, United States 
Code, is amended— 
(1) by striking ‘‘The Secretary of Defense’’ and 
inserting the following: 
‘‘(a) CERTAIN UNREMARRIED FORMER SPOUSES.— 
The Secretary of Defense’’; 
(2) by striking ‘‘commissary and exchange privi-
leges’’ and inserting ‘‘use commissary stores and 
MWR retail facilities’’; 
(3) by adding at the end the following new sub-
section: 
‘‘(b) CERTAIN REMARRIED SURVIVING SPOUSES.—The 
Secretary of Defense shall prescribe such regulations as may 
be necessary to provide that a surviving spouse of a deceased 
member of the armed forces, regardless of the marital status 
of the surviving spouse, is entitled to use commissary stores 
and MWR retail facilities to the same extent and on the 
same basis as an unremarried surviving spouse of a member 
of the uniformed services.’’; and 
(4) by adding at the end the following new sub-
section:
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† HR 2670 EAS 
‘‘(c) MWR RETAIL FACILITIES DEFINED.—In this sec-
tion, the term ‘MWR retail facilities’ has the meaning given 
that term in section 1063(e) of this title.’’. 
(b) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of section 
1062 of title 10, United States Code, is amended to 
read as follows: 
‘‘§ 1062. 
Certain 
former 
spouses 
and 
surviving 
spouses’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 54 of title 10, United 
States Code, is amended by striking the item relating 
to section 1062 and inserting the following new item: 
‘‘1062. Certain former spouses and surviving spouses.’’. 
(c) REGULATIONS.—The Secretary of Defense shall 
publish the regulations required under section 1062(b) of 
title 10, United States Code, as added by subsection (a)(3), 
by not later than October 1, 2025. 
Subtitle F—Studies and Reports 
SEC. 1051. ANNUAL REPORT AND BRIEFING ON IMPLEMEN-
TATION OF FORCE DESIGN 2030. 
(a) IN GENERAL.—Not later than March 31, 2024, and 
annually thereafter through March 31, 2030, the Com-
mandant of the Marine Corps shall submit to the congres-
sional defense committees a report detailing the pro-
grammatic choices made to implement Force Design 2030,
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† HR 2670 EAS 
including both new developmental and fielded capabilities, 
as well as capabilities and capacity divested to accelerate 
implementation of Force Design 2030. 
(b) BRIEFING REQUIREMENT.—Not later than Sep-
tember 30, 2024, and annually thereafter through Sep-
tember 30, 2030, the Commandant of the Marine Corps 
shall provide a briefing on the elements described under sub-
section (c). 
(c) ELEMENTS.—The report required under subsection 
(a) and briefing required under subsection (b) shall include 
the following elements: 
(1) An assessment of changes in the National De-
fense Strategy, Defense Planning Guidance, Joint 
Warfighting Concept (and associated Concept Re-
quired Capabilities), and other planning processes 
that informed Force Design 2030. 
(2) An inventory and assessment of Force De-
sign-related exercises and experimentation beginning 
in fiscal year 2020, including which capabilities were 
involved and the extent to which such exercises and 
experiments validated or militated against proposed 
capability investments. 
(3) An inventory of divestments of capability or 
capacity, whether force structure or equipment, start-
ing in fiscal year 2020, including—