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pacity, and technology development to help meet 
such needs; 
(4) the extent to which earned value manage-
ment should be required on acquisitions not involv-
ing the acquisition of weapon systems and whether 
measures of quality and technical performance 
should be included in any earned value management 
system; 
(5) the extent to which it is appropriate to 
apply processes primarily relating to the acquisition 
of weapon systems to the acquisition of information 
technology systems, consistent with the requirement 
to develop an alternative process for such systems 
contained in section 804 of the National Defense 
Authorization Act for Fiscal Year 2010 (Public Law 
111–84; 123 Stat. 2401; 10 U.S.C. 2225 note); and 
(6) such other matters as the Secretary con-
siders appropriate. 
(c) REPORT.—Not later than 270 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the 
Senate and of the House of Representatives a report de-
tailing any changes in the acquisition guidance of the De-
partment of Defense identified during the review required 
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by subsection (a), and any actions taken, or planned to 
be taken, to implement such changes. 
SEC. 107. REQUIREMENT TO INCLUDE REFERENCES TO 
SERVICES ACQUISITION THROUGHOUT THE 
FEDERAL ACQUISITION REGULATION. 
(a) FINDINGS.—Congress finds the following: 
(1) The acquisition of services can be extremely 
complex, and program management skills, tools, and 
processes need to be applied to services acquisitions. 
(2) An emphasis on the concept of ‘‘services’’ 
throughout the Federal Acquisition Regulation 
would enhance and support the procurement and 
project management community in all aspects of the 
acquisition planning process, including requirements 
development, assessment of reasonableness, and 
post-award management and oversight. 
(b) REQUIREMENT FOR CHANGES TO FAR.—The 
Federal Acquisition Regulation shall be revised to provide, 
throughout the Regulation, appropriate references to serv-
ices acquisition that are in addition to references provided 
in part 37 (which relates specifically to services acquisi-
tion). 
(c) DEADLINE.—This section shall be carried out 
within 270 days after the date of the enactment of this 
Act. 
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SEC. 108. PROCUREMENT OF MILITARY PURPOSE NON-
DEVELOPMENTAL ITEMS. 
(a) IN GENERAL.— 
(1) PROCUREMENT
OF
MILITARY
PURPOSE 
NONDEVELOPMENTAL ITEMS.—Chapter 141 of title 
10, United States Code, is amended by adding at 
the end the following new section: 
‘‘§ 2410r. Military purpose nondevelopmental items 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) The term ‘military purpose nondevelop-
mental item’ means an item— 
‘‘(A) developed exclusively at private ex-
pense; 
‘‘(B) that meets a validated military re-
quirement, as certified in writing by the respon-
sible program manager; 
‘‘(C) for which delivery of an initial lot of 
production-representative items may be made 
within nine months after contract award; and 
‘‘(D) for which the unit cost is less than 
$10,000,000. 
‘‘(2) The term ‘item’ has the meaning provided 
in section 2302(3) of this title. 
‘‘(b) REQUIREMENTS.—The Secretary of Defense 
shall ensure that, with respect to a contract for the acqui-
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sition of a military purpose nondevelopmental item, the 
following requirements apply: 
‘‘(1) The contract shall be awarded using com-
petitive procedures in accordance with section 2304 
of this title. 
‘‘(2) Certain contract clauses, as specified in 
regulations prescribed under subsection (c), shall be 
included in each such contract. 
‘‘(3) The type of contract used shall be a firm, 
fixed price type contract. 
‘‘(4) Nothing in the contract shall further re-
strict or otherwise affect the rights in technical data 
of the Government, the contractor, or any subcon-
tractor of the contractor for items developed by the 
contractor or any such subcontractor exclusively at 
private expense, as prescribed in regulations imple-
menting section 2320(a)(2)(B) of this title. 
‘‘(c) REGULATIONS.—The Secretary of Defense shall 
prescribe regulations to carry out this section. Such regu-
lations shall be included in regulations of the Department 
of Defense prescribed as part of the Federal Acquisition 
Regulation. At a minimum, the regulations shall include— 
‘‘(1) a list of contract clauses to be included in 
each contract for the acquisition of a military pur-
pose nondevelopmental item; 
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