I 
114TH CONGRESS 
1ST SESSION H. R. 1735 
To authorize appropriations for fiscal year 2016 for military activities of 
the Department of Defense and for military construction, to prescribe 
military personnel strengths for such fiscal year, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 13, 2015 
Mr. THORNBERRY (for himself and Mr. SMITH of Washington) introduced the 
following bill; which was referred to the Committee on Armed Services 
A BILL 
To authorize appropriations for fiscal year 2016 for military 
activities of the Department of Defense and for military 
construction, to prescribe military personnel strengths 
for such fiscal year, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Defense Au-
thorization Act for Fiscal Year 2016’’. 
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SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF 
CONTENTS. 
(a) DIVISIONS.—This Act is organized into two divi-
sions as follows: 
(1) Division A—Department of Defense Au-
thorizations. 
(2) Division B—Military Construction Author-
izations. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Organization of Act into divisions; table of contents. 
TITLE I—PROCUREMENT 
Sec. 101. Army. 
Sec. 102. Navy and Marine Corps. 
Sec. 103. Air Force. 
Sec. 104. Defense-wide activities. 
Sec. 105. Multiyear procurement authority for Standard Missile-3 Block IB 
guided missiles. 
Sec. 106. Availability of Air Force procurement funds for certain commercial- 
off-the-shelf parts for intercontinental ballistic missile fuzes. 
TITLE II—RESEARCH, DEVELOPMENT, TEST, AND EVALUATION 
Sec. 201. Authorization of appropriations. 
Sec. 202. Repeal of requirement for initial operating capability of a conven-
tional long-range standoff weapon before retirement of the con-
ventionally Armed AGM–86 Missile. 
TITLE III—OPERATION AND MAINTENANCE 
Sec. 301. Operation and maintenance funding. 
TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS 
Subtitle A—Active Forces 
Sec. 401. End strengths for active forces. 
Subtitle B—Reserve Forces 
Sec. 411. End strengths for Selected Reserve. 
Sec. 412. End strengths for reserves on active duty in support of the reserves. 
Sec. 413. End strengths for military technicians (dual status). 
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Sec. 414. Fiscal year 2016 limitation on number of non-dual status technicians. 
Sec. 415. Maximum number of reserve personnel authorized to be on active 
duty for operational support. 
TITLE V—MILITARY PERSONNEL POLICY 
Subtitle E—Other Matters 
Sec. 545. Required provision of preseparation counseling. 
TITLE VI—COMPENSATION AND OTHER PERSONNEL BENEFITS 
Subtitle B—Bonuses and Special and Incentive Pays 
Sec. 611. One-year extension of certain expiring bonus and special pay authori-
ties. 
TITLE VIII—ACQUISITION POLICY, ACQUISITION MANAGEMENT, 
AND RELATED MATTERS 
Subtitle A—Acquisition Policy and Management 
Sec. 801. Program fraud civil remedies statute for the Department of Defense 
and the National Aeronautics and Space Administration. 
Sec. 802. Improvements to the operation of the Defense Acquisition Workforce 
Development Fund. 
Subtitle B—Amendments to General Contract Authorities, Procedures, and 
Limitations 
Sec. 811. Revision to method of rounding of acquisition-related dollar thresh-
olds when adjusting for inflation. 
Sec. 812. Extension of authority to acquire products and services produced in 
countries along a major route of supply to Afghanistan. 
Sec. 813. Exception to requirement to include cost or price to the Government 
as a factor in the evaluation of proposals for certain task or 
delivery order contracts. 
Subtitle C—Acquisition Reform Proposals 
Sec. 821. Modification to requirements relating to determination of contract 
type for major development programs. 
Sec. 822. Repeal of requirement for stand-alone manpower estimates for major 
defense acquisition programs. 
Sec. 823. Revision of Milestone Decision Authority responsibilities for major de-
fense acquisition programs. 
Sec. 824. Streamlining of requirements relating to defense business systems. 
Sec. 825. Revision to life-cycle management and product support requirements. 
Sec. 826. Acquisition strategy required for each major defense acquisition pro-
gram. 
Sec. 827. Revision to requirements relating to risk reduction in development of 
major defense acquisition programs. 
Subtitle D—Other Matters 
Sec. 831. Extension of the Department of Defense mentor-prote´ge´e pilot pro-
gram. 
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Sec. 832. Streamlining of reporting requirements applicable to Assistant Sec-
retary of Defense for Research and Engineering regarding 
major defense acquisition programs. 
Sec. 833. Revision to required distribution of assistance under Procurement 
Technical Assistance Cooperative Agreement Program. 
TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION AND 
MANAGEMENT 
Sec. 901. Change of period for Chairman of the Joint Chiefs of Staff review 
of the unified command plan to not less than every four years. 
Sec. 902. Update of statutory specification of functions of the chairman of the 
Joint Chiefs of Staff relating to advice on requirements, pro-
grams, and budget. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
Sec. 1001. Enhancement of interagency support during contingency operations 
and transition periods. 
Subtitle C—Naval Vessels and Shipyards 
Sec. 1021. Extension of authority for reimbursement of expenses for certain 
Navy mess operations afloat. 
Sec. 1022. Refueling and complex overhaul of Nimitz-class aircraft carriers. 
Subtitle D—Other Matters 
Sec. 1041. Transfer of functions of the Veterans’ Advisory Board on Dose Re-
construction to the Secretaries of Veterans Affairs and De-
fense. 
TITLE XI—CIVILIAN PERSONNEL MATTERS 
Sec. 1101. One-year extension of temporary authority to grant allowances, ben-
efits, and gratuities to civilian personnel on official duty in a 
combat zone. 
Sec. 1102. Authority to provide additional allowances and benefits for defense 
clandestine service employees. 
Sec. 1103. Extension of rate of overtime pay for Department of the Navy em-
ployees performing work aboard or dockside in support of the 
nuclear-powered aircraft carrier forward deployed in Japan. 
TITLE XII—MATTERS RELATING TO FOREIGN NATIONS 
Sec. 1201. Extension of authority to support operations and activities of the 
Office of Security Cooperation-Iraq. 
Sec. 1202. Extension of authority for reimbursement of certain coalition na-
tions for support provided to United States military operations. 
Sec. 1203. Extension of authority to transfer defense articles and provide de-
fense services to the military and security forces of Afghani-
stan. 
Sec. 1204. Authority for acceptance and use of contributions from Kuwait for 
certain mutually beneficial projects. 
Sec. 1205. Extension of commanders’ emergency response program in Afghani-
stan. 
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Sec. 1206. Increase in thresholds for definition of major defense equipment for 
purposes of Arms Export Control Act. 
Sec. 1207. Maintenance of prohibition on procurement by Department of De-
fense of communist Chinese-origin items that meet the defini-
tion of goods and services controlled as munitions items when 
moved to the ‘‘600 series’’ of the commerce control list. 
Sec. 1208. Modification of global lift and sustain to support partners and allies. 
Sec. 1209. Reimbursements for certain counterinsurgency, counterterrorism 
and stabilization operations carried out by Pakistan. 
Sec. 1210. NATO Special Operations Headquarters. 
Sec. 1211. Afghanistan Security Forces Fund. 
TITLE XIV—OTHER AUTHORIZATIONS 
Subtitle A—Military Programs 
Sec. 1401. Working capital funds. 
Sec. 1402. Joint urgent operational needs fund. 
Sec. 1403. Chemical agents and munitions destruction, Defense. 
Sec. 1404. Drug interdiction and counter-drug activities, Defense-wide. 
Sec. 1405. Defense Inspector General. 
Sec. 1406. Defense health program. 
Subtitle B—Other Matters 
Sec. 1411. Authority for transfer of funds to joint Department of Defense–De-
partment of Veterans Affairs Medical Facility Demonstration 
Fund for Captain James A. Lovell Health Care Center, Illi-
nois. 
Sec. 1412. Authorization of appropriations for Armed Forces Retirement 
Home. 
TITLE XV—AUTHORIZATION OF ADDITIONAL APPROPRIATIONS 
FOR OVERSEAS CONTINGENCY OPERATIONS 
Sec. 1501. Purpose. 
Sec. 1502. Army procurement. 
Sec. 1503. Joint Improvised Explosive Device Defeat Fund. 
Sec. 1504. Navy and Marine Corps procurement. 
Sec. 1505. Air Force procurement. 
Sec. 1506. Defense-wide activities procurement. 
Sec. 1507. Research, development, test, and evaluation. 
Sec. 1508. Operation and maintenance. 
Sec. 1509. Military personnel. 
Sec. 1510. Working capital funds. 
Sec. 1511. Defense health program. 
Sec. 1512. Drug interdiction and counter-drug activities, Defense-wide. 
Sec. 1513. Defense Inspector General. 
DIVISION B—MILITARY CONSTRUCTION AUTHORIZATIONS 
TITLE XXVIII—MILITARY CONSTRUCTION GENERAL PROVISIONS 
Sec. 2801. Change in authorities relating to scope of work variations for mili-
tary construction projects. 
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Sec. 2802. Enhanced authority to carry out emergency military construction 
projects when necessary to support requirements of combatant 
commanders. 
Sec. 2803. Annual locality adjustment of dollar thresholds applicable to unspec-
ified minor military construction authorities. 
TITLE I—PROCUREMENT 
SEC. 101. ARMY. 
Funds are hereby authorized to be appropriated for 
fiscal year 2016 for procurement for the Army as follows: 
(1) For aircraft, $5,689,357,000. 
(2) For missiles, $1,419,957,000. 
(3) For weapons and tracked combat vehicles, 
$1,887,073,000. 
(4) For ammunition, $1,233,378,000. 
(5) For other procurement, $5,899,028,000. 
SEC. 102. NAVY AND MARINE CORPS. 
Funds are hereby authorized to be appropriated for 
fiscal year 2016 for procurement for the Navy and Marine 
Corps as follows: 
(1) For aircraft, $16,126,405,000. 
(2) For weapons, including missiles and tor-
pedoes, $3,154,154,000. 
(3) For ammunition procurement, Navy and 
Marine Corps, $723,741,000. 
(4) 
For 
shipbuilding 
and 
conversion, 
$16,597,457,000. 
(5) For other procurement, $6,614,715,000. 
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‘‘(B) made to a recipient of property, serv-
ices, or money received directly or indirectly 
from the head of an agency or to a party to a 
contract with the head of an agency— 
‘‘(i) for property or services if the 
United States— 
‘‘(I) provided such property or 
services; 
‘‘(II) provided any portion of the 
funds for the purchase of such prop-
erty or services; or 
‘‘(III) will reimburse such recipi-
ent or party for the purchase of such 
property or services; or 
‘‘(ii) for the payment of money (in-
cluding money representing grants, loans, 
insurance, or benefits) if the United 
States— 
‘‘(I) provided any portion of the 
money requested or demanded; or 
‘‘(II) will reimburse such recipi-
ent or party for any portion of the 
money paid on such request or de-
mand; or 
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‘‘(C) made to the head of an agency which 
has the effect of decreasing an obligation to pay 
or account for property, services, or money. 
‘‘(3) KNOWS OR HAS REASON TO KNOW.—The 
term ‘knows or has reason to know’, for purposes of 
establishing liability under section 2752 of this title, 
means that a person, with respect to a claim or 
statement— 
‘‘(A) has actual knowledge that the claim 
or statement is false, fictitious, or fraudulent; 
‘‘(B) acts in deliberate ignorance of the 
truth or falsity of the claim or statement; or 
‘‘(C) acts in reckless disregard of the truth 
or falsity of the claim or statement, and no 
proof of specific intent to defraud is required. 
‘‘(4) RESPONSIBLE OFFICIAL.—The term ‘re-
sponsible official’ means a designated debarring and 
suspending official of the agency named in sub-
section (a). 
‘‘(5) RESPONDENT.—The term ‘respondent’ 
means a person who has received notice from a re-
sponsible official asserting liability under section 
2752 of this title. 
‘‘(6) 
STATEMENT.—The 
term 
‘statement’ 
means any representation, certification, affirmation, 
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document, record, or an accounting or bookkeeping 
entry made— 
‘‘(A) with respect to a claim or to obtain 
the approval or payment of a claim (including 
relating to eligibility to make a claim); or 
‘‘(B) with respect to (including relating to 
eligibility for)— 
‘‘(i) a contract with, or a bid or pro-
posal for a contract with the head of an 
agency; or 
‘‘(ii) a grant, loan, or benefit from the 
head of an agency. 
‘‘(c) CLAIMS.—For purposes of paragraph (2) of sub-
section (b)— 
‘‘(1) each voucher, invoice, claim form, or other 
individual request or demand for property, services, 
or money constitutes a separate claim; 
‘‘(2) each claim for property, services, or money 
is subject to this chapter regardless of whether such 
property, services, or money is actually delivered or 
paid; and 
‘‘(3) a claim shall be considered made, pre-
sented, or submitted to the head of an agency, re-
cipient, or party when such claim is actually made 
to an agent, fiscal intermediary, or other entity act-
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ing for or on behalf of such authority, recipient, or 
party. 
‘‘(d) STATEMENTS.—For purposes of paragraph (6) 
of subsection (b)— 
‘‘(1) each written representation, certification, 
or affirmation constitutes a separate statement; and 
‘‘(2) a statement shall be considered made, pre-
sented, or submitted to the head of an agency when 
such statement is actually made to an agent, fiscal 
intermediary, or other entity acting for or on behalf 
of such authority. 
‘‘§ 2752. False claims and statements; liability 
‘‘(a) FALSE CLAIMS.—Any person who makes, pre-
sents, or submits, or causes to be made, presented, or sub-
mitted, to the head of an agency a claim that the person 
knows or has reason to know— 
‘‘(1) is false, fictitious, or fraudulent; 
‘‘(2) includes or is supported by any written 
statement which asserts a material fact this is false, 
fictitious, or fraudulent; 
‘‘(3) includes or is supported by any written 
statement that— 
‘‘(A) omits a material fact; 
‘‘(B) is false, fictitious, or fraudulent as a 
result of such omission; and 
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‘‘(C) the person making, presenting, or 
submitting such statement has a duty to in-
clude such material fact; or 
‘‘(4) is for payment for the provision of prop-
erty or services which the person has not provided 
as claimed, shall, in addition to any other remedy 
that may be prescribed by law, be subject to a civil 
penalty of not more than $5,000 for each such 
claim. Such person shall also be subject to an as-
sessment of not more than twice the amount of such 
claim, or the portion of such claim which is deter-
mined by the responsible official to be in violation of 
the preceding sentence. 
‘‘(b) FALSE STATEMENTS.—Any person who makes, 
presents, submits, or causes to be made, presented, or sub-
mitted, a written statement in conjunction with a procure-
ment program or acquisition of the an agency named in 
section 2751(a) of this title that— 
‘‘(1) the person knows or has reason to know— 
‘‘(A) asserts a material fact that is false, 
fictitious, or fraudulent; or 
‘‘(B)(i) omits a material fact; and 
‘‘(ii) is false, fictitious, or fraudulent as a 
result of such omission; 
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entitled to a copy of the entire record before the respon-
sible official. 
‘‘(f) HEARINGS.—Any hearing commenced under this 
section shall be conducted by the responsible official, or 
a fact-finder designated by the responsible official, solely 
to resolve genuinely disputed material facts identified by 
the responsible official and set forth in the notice to the 
respondent. 
‘‘(g) PROCEDURES FOR HEARINGS.—(1) Each hear-
ing shall be conducted under procedures prescribed by the 
head of the agency. Such procedures shall include the fol-
lowing: 
‘‘(A) The provision of written notice of the 
hearing to the respondent, including written notice 
of— 
‘‘(i) the time, place, and nature of the 
hearing; 
‘‘(ii) the legal authority under which the 
hearing is to be held; 
‘‘(iii) the material facts determined by the 
responsible official to be genuinely in dispute 
that will be the subject of the hearing; and 
‘‘(iv) a description of the procedures for 
the conduct of the hearing. 
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‘‘(B) The opportunity for the respondent to 
present facts and arguments through oral or docu-
mentary evidence, to submit rebuttal evidence, and 
to conduct such cross-examination as may be re-
quired to resolve any genuinely disputed material 
facts identified by the responsible official. 
‘‘(C) The opportunity for the respondent to be 
accompanied, represented, and advised by counsel or 
such other qualified representative as the Secretary 
may specify in such regulations. 
‘‘(2) For the purpose of conducting hearings under 
this section, the responsible official is authorized to admin-
ister oaths or affirmations. 
‘‘(3) Hearings shall be held at the responsible offi-
cial’s office, or at such other place as may be agreed upon 
by the respondent and the responsible official. 
‘‘(h) DECISION FOLLOWING HEARING.—The respon-
sible official shall issue a written decision within 60 days 
after the conclusion of the hearing. That decision shall set 
forth specific findings of fact resolving the genuinely dis-
puted material facts that were the subject of the hearing. 
The written decision shall also dispose of the matters 
raised in the notice required under paragraph (1) of sub-
section (d). If the responsible official concludes that the 
respondent is liable under section 2752 of this title, the 
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decision shall include the findings of fact and conclusions 
of law which the responsible official relied upon in deter-
mining that the respondent is liable, and the amount of 
any penalty or assessment to be imposed on the respond-
ent. Any decisions issued under this subparagraph shall 
be based on the record before the responsible official and 
shall be supported by a preponderance of the evidence. 
The responsible official shall promptly send to the re-
spondent a copy of the decision by registered or certified 
mail, or other similar commercial means, or shall hand 
deliver a copy of the decision. 
‘‘§ 2754. Payment; interest on late payments 
‘‘(a) PAYMENT OF ASSESSMENTS AND PENALTIES.— 
A respondent shall render payment of any assessment and 
penalty imposed by a responsible official, or any amount 
otherwise agreed to as part of a settlement or adjustment, 
not later than the date— 
‘‘(1) that is 30 days after the date of the re-
ceipt by the respondent of the responsible official’s 
decision; or 
‘‘(2) as otherwise agreed to by the respondent 
and the responsible official. 
‘‘(b) INTEREST.—If there is an unpaid balance as of 
the date determined under paragraph (1), interest shall 
accrue from that date on any unpaid balance. The rate 
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of interest charged shall be the rate in effect as of that 
date that is published by the Secretary of the Treasury 
under section 3717 of title 31. 
‘‘(c) TREATMENT OF RECEIPTS.—All penalties, as-
sessments, or interest paid, collected, or otherwise recov-
ered under this chapter shall be deposited into the Treas-
ury as miscellaneous receipts as provided in section 3302 
of title 31. 
‘‘§ 2755. Judicial review 
‘‘A decision by a responsible official under section 
2753(d) or 2753(h) of this title shall be final. Any such 
final decision is subject to judicial review only under chap-
ter 7 of title 5. 
‘‘§ 2756. Collection of civil penalties and assessments 
‘‘(a) JUDICIAL ENFORCEMENT OF CIVIL PENALTIES 
AND ASSESSMENTS.—The Attorney General shall be re-
sponsible for judicial enforcement of any civil penalty or 
assessment imposed under this chapter. 
‘‘(b) CIVIL ACTIONS FOR RECOVERY.—Any penalty 
or assessment imposed in a decision by a responsible offi-
cial, or amounts otherwise agreed to as part of a settle-
ment or adjustment, along with any accrued interest, may 
be recovered in a civil action brought by the Attorney Gen-
eral. In any such action, no matter that was raised or that 
could have been raised in a proceeding under this chapter 
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or pursuant to judicial review under section 2755 of this 
title may be raised as a defense, and the determination 
of liability and the determination of amounts of penalties 
and assessments shall not be subject to review. 
‘‘(c) JURISDICTION OF UNITED STATES DISTRICT 
COURTS.—The district courts of the United States shall 
have jurisdiction of any action commenced by the United 
States under subsection (b). 
‘‘(d) JOINING AND CONSOLIDATING ACTIONS.—Any 
action under subsection (b) may, without regard to venue 
requirements, be joined and consolidated with or asserted 
as a counterclaim, cross-claim, or setoff by the United 
States in any other civil action which includes as parties 
the United States, and the person against whom such ac-
tion may be brought. 
‘‘(e) JURISDICTION OF UNITED STATES COURT OF 
FEDERAL CLAIMS.—The United States Court of Federal 
Claims shall have jurisdiction of any action under sub-
section (b) to recover any penalty or assessment, or 
amounts otherwise agreed to as part of a settlement or 
adjustment, along with any accrued interest, if the cause 
of action is asserted by the United States as a counter-
claim in a matter pending in such court. The counterclaim 
need not relate to the subject matter of the underlying 
claim. 
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‘‘§ 2757. Right to administrative offset 
‘‘The amount of any penalty or assessment that has 
been imposed by a responsible official, or any amount 
agreed upon in a settlement or compromise, along with 
any accrued interest, may be collected by administrative 
offset. 
‘‘§ 2758. Limitations 
‘‘(a) LIMITATION ON PERIOD FOR INITIATION OF AD-
MINISTRATIVE ACTION.—An action under section 2752 of 
this title with respect to a claim or statement shall be com-
menced within six years after the date on which such claim 
or statement is made, presented, or submitted. 
‘‘(b) LIMITATION PERIOD FOR INITIATION OF CIVIL 
ACTION FOR RECOVERY OF ADMINISTRATIVE PENALTY 
OR ASSESSMENT.—A civil action to recover a penalty or 
assessment under section 2756 of this title shall be com-
menced within three years after the date of the decision 
of the responsible official imposing the penalty or assess-
ment. 
‘‘§ 2759. Effect on other laws 
‘‘(a) RELATIONSHIP TO TITLE 44 AUTHORITIES.— 
This chapter does not diminish the responsibility of the 
head of an agency to comply with the provisions of chapter 
35 of title 44, relating to coordination of Federal informa-
tion policy. 
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‘‘(b) RELATIONSHIP TO TITLE 31 AUTHORITIES.— 
The procedures set forth in this chapter apply to the agen-
cies named in section 2751(a) of this title in lieu of the 
procedures under chapter 38 of title 31, relating to admin-
istrative remedies for false claims and statements. 
‘‘(c) RELATIONSHIP TO OTHER AUTHORITIES.—Any 
action, inaction, or decision under this chapter shall be 
based solely upon the information before the responsible 
official and shall not limit or restrict any agency of the 
Government from instituting any other action arising out-
side this chapter, including suspension or debarment, 
based upon the same information. Any action, inaction or 
decision under this chapter shall not restrict the ability 
of the Attorney General to bring judicial action, based 
upon the same information as long as such action is not 
otherwise prohibited by law.’’. 
(2) CLERICAL
AMENDMENT.—The tables of 
chapters at the beginning of subtitle A, and at the 
beginning of part IV of subtitle A, of such title are 
each amended by inserting after the item relating to 
chapter 163 the following new item: 
‘‘164. Administrative Remedies for False Claims and Statements ......... 2751’’. 
(c) 
CONFORMING
AMENDMENTS.—Section 
3801(a)(1) of title 31, United States Code, is amended— 
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(1) by inserting ‘‘(other than the Department of 
Defense)’’ in subparagraph (A) after ‘‘executive de-
partment’’; 
(2) by striking subparagraph (B); 
(3) by redesignating subparagraph (C) as sub-
paragraph (B) and by inserting ‘‘(other than the 
National Aeronautics and Space Administration)’’ in 
that subparagraph after ‘‘not an executive depart-
ment’’; and 
(4) by redesignating subparagraphs (D), (E), 
and (F) as subparagraphs (C), (D), and (E), respec-
tively. 
(d) EFFECTIVE DATE.—Chapter 164 of title 10, 
United States Code, as added by subsection (b), and the 
amendments made by subsection (c), shall apply to any 
claim or statement made, presented, or submitted on or 
after the date of the enactment of this Act. 
SEC. 802. IMPROVEMENTS TO THE OPERATION OF THE DE-
FENSE ACQUISITION WORKFORCE DEVELOP-
MENT FUND. 
(a) ELEMENTS OF THE FUND.—Subsection (d) of 
section 1705 of title 10, United States Code, is amended— 
(1) in paragraph (1)— 
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(A) in subparagraph (A), by striking 
‘‘credited to the Fund under paragraph (2)’’ 
and inserting ‘‘appropriated to the Fund’’; 
(B) in subparagraph (B), by striking 
‘‘paragraph (3)’’ and inserting ‘‘paragraph 
(2)’’; and 
(C) by striking subparagraph (C); 
(2) by striking paragraphs (2) and (4); 
(3) by redesignating paragraph (3) as para-
graph (2); 
(4) in paragraph (2), as so redesignated— 
(A) in the first sentence, by striking ‘‘24- 
month period’’ and inserting ‘‘36-month pe-
riod’’; and 
(B) in the second sentence, by striking 
‘‘credited to the Fund’’ and inserting ‘‘credited 
to amounts appropriated to the Fund for the 
fiscal year in which such funds are trans-
ferred’’; and 
(5) by inserting after paragraph (2), as so re-
designated, the following new paragraph (3): 
‘‘(3) PRIOR NOTICE TO CONGRESSIONAL COM-
MITTEES OF CERTAIN TRANSFERS.—The Secretary 
of Defense may make a transfer to the Fund pursu-
ant to paragraph (2) that increases to an amount 
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greater than $500,000,000 the total amount made 
available to the Fund for a fiscal year only after the 
Secretary submits to the congressional defense com-
mittees notice of the Secretary’s intent to make such 
transfer and a period of 10 days has elapsed fol-
lowing the date of the notification.’’. 
(b) AVAILABILITY
OF FUNDS.—Subsection (e) of 
such section is amended— 
(1) in paragraph (1), by inserting ‘‘appropria-
tions available to’’ after ‘‘for transfer to’’; and 
(2) in paragraph (6)— 
(A) by striking ‘‘credited to the Fund in 
accordance with subsection (d)(2),’’; 
(B) by striking ‘‘subsection (d)(3),’’ and 
inserting ‘‘subsection (d)(2) or’’; 
(C) by striking ‘‘, or deposited to the 
Fund’’; and 
(D) by striking ‘‘for which credited’’ and 
all that follows and inserting ‘‘in which trans-
ferred, or for which appropriated, and the suc-
ceeding fiscal year.’’. 
(c) ANNUAL REPORT.—Subsection (f)(1) of such sec-
tion is amended by striking ‘‘remitted’’ and all that follows 
through ‘‘credited’’ and inserting ‘‘transferred to the 
Fund in such fiscal year or appropriated’’. 
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Subtitle B—Amendments to Gen-
eral Contract Authorities, Pro-
cedures, and Limitations 
SEC. 811. REVISION TO METHOD OF ROUNDING OF ACQUI-
SITION-RELATED 
DOLLAR 
THRESHOLDS 
WHEN ADJUSTING FOR INFLATION. 
Section 1908(e)(2) of title 41, United States Code, 
is amended— 
(1) in the matter preceding subparagraph (A), 
by striking ‘‘on the day before the adjustment’’ and 
inserting ‘‘as calculated under paragraph (1)’’; 
(2) by striking ‘‘and’’ at the end of subpara-
graph (C); and 
(3) by striking subparagraph (D) and inserting 
the following: 
‘‘(D) not less than $1,000,000, but less 
than $10,000,000, to the nearest $500,000; 
‘‘(E) not less than $10,000,000, but less 
than $100,000,000, to the nearest $5,000,000; 
‘‘(F) not less than $100,000,000, but less 
than 
$1,000,000,000, 
to 
the 
nearest 
$50,000,000; and 
‘‘(G) $1,000,000,000 or more, to the near-
est $500,000,000.’’. 
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SEC. 812. EXTENSION OF AUTHORITY TO ACQUIRE PROD-
UCTS AND SERVICES PRODUCED IN COUN-
TRIES ALONG A MAJOR ROUTE OF SUPPLY 
TO AFGHANISTAN. 
Section 801(f) of the National Defense Authorization 
Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 
2399), as most recently amended by section 832 of the 
National Defense Authorization Act for Fiscal Year 2014 
(Public Law 113–66; 127 Stat. 814), is further amended 
by striking ‘‘December 31, 2015’’ and inserting ‘‘Decem-
ber 31, 2018’’. 
SEC. 813. EXCEPTION TO REQUIREMENT TO INCLUDE COST 
OR PRICE TO THE GOVERNMENT AS A FAC-
TOR IN THE EVALUATION OF PROPOSALS 
FOR CERTAIN TASK OR DELIVERY ORDER 
CONTRACTS. 
(a) CONTRACTING
UNDER
TITLE
41, UNITED 
STATES CODE.—Section 3306(c) of title 41, United States 
Code, is amended— 
(1) in paragraph (1), by inserting ‘‘except as 
provided in paragraph (3),’’ in subparagraphs (B) 
and (C) after the subparagraph designation; and 
(2) by adding at the end the following new 
paragraphs: 
‘‘(3) EXCEPTIONS
FOR
CERTAIN
INDEFINITE 
DELIVERY, INDEFINITE QUANTITY CONTRACTS.—If 
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the head of an agency issues a solicitation for mul-
tiple task or delivery order contracts under section 
4103(d) of this title for the same or similar services 
and intends to make a contract award to each quali-
fying offeror— 
‘‘(A) cost or price to the Federal Govern-
ment need not, at the Government’s discretion, 
be considered under subparagraph (B) of para-
graph (1) as an evaluation factor for the con-
tract award; and 
‘‘(B) if, pursuant to subparagraph (A), 
cost or price to the Federal Government is not 
considered as an evaluation factor for the con-
tract award— 
‘‘(i) the disclosure requirement of sub-
paragraph (C) of paragraph (1) shall not 
apply; and 
‘‘(ii) cost or price to the Federal Gov-
ernment shall be considered in conjunction 
with the issuance pursuant to section 
4106(c) of this title of a task or delivery 
order under any contract resulting from 
the solicitation. 
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‘‘(4) 
QUALIFYING
OFFEROR
DEFINED.—In 
paragraph (3), the term ‘qualifying offeror’ means 
an offeror that— 
‘‘(A) is determined to be a responsible 
source; 
‘‘(B) submits a proposal that conforms to 
the requirements of the solicitation; and 
‘‘(C) the contracting officer has no reason 
to believe would likely offer other than fair and 
reasonable pricing.’’. 
(b) CONTRACTING
UNDER
TITLE
10, UNITED 
STATES CODE.—Section 2305(a)(3) of title 10, United 
States Code, is amended— 
(1) in subparagraph (A), by inserting ‘‘(except 
as provided in subparagraph (C))’’ in clauses (ii) 
and (iii) after ‘‘shall’’; and 
(2) by adding at the end the following new sub-
paragraphs: 
‘‘(C) If the head of an agency issues a solicitation 
for multiple task or delivery order contracts under section 
2304a(d)(1)(B) of this title for the same or similar serv-
ices and intends to make a contract award to each quali-
fying offeror— 
‘‘(i) cost or price to the Federal Government 
need not, at the Government’s discretion, be consid-
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ered under clause (ii) of subparagraph (A) as an 
evaluation factor for the contract award; and 
‘‘(ii) if, pursuant to clause (i), cost or price to 
the Federal Government is not considered as an 
evaluation factor for the contract award— 
‘‘(I) the disclosure requirement of clause 
(iii) of subparagraph (A) shall not apply; and 
‘‘(II) cost or price to the Federal Govern-
ment shall be considered in conjunction with 
the issuance pursuant to section 2304c(b) of 
this title of a task or delivery order under any 
contract resulting from the solicitation. 
‘‘(D) In subparagraph (C), the term ‘qualifying offer-
or’ means an offeror that— 
‘‘(i) is determined to be a responsible source; 
‘‘(ii) submits a proposal that conforms to the 
requirements of the solicitation; and 
‘‘(iii) the contracting officer has no reason to 
believe would likely offer other than fair and reason-
able pricing.’’. 
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Subtitle C—Acquisition Reform 
Proposals 
SEC. 821. MODIFICATION TO REQUIREMENTS RELATING TO 
DETERMINATION OF CONTRACT TYPE FOR 
MAJOR DEVELOPMENT PROGRAMS. 
(a) DETERMINATION OF CONTRACT TYPE.—Section 
2306 of title 10, United States Code, is amended by add-
ing at the end the following new subsection: 
‘‘(i) REQUIRED ELEMENTS OF GUIDANCE RELATING 
TO CONTRACT TYPE.—(1) The Secretary of Defense shall 
ensure that the guidance of the Department of Defense 
relating to major defense acquisition programs and major 
automated information systems includes— 
‘‘(A) a requirement that the acquisition 
strategy for such a program or system include 
identification of the contract type for develop-
ment of the program or system; and 
‘‘(B) a justification of the contract type 
identified. 
‘‘(2) The contract type identified in accordance with 
paragraph (1)(A) may be— 
‘‘(A) a fixed-price type contract (including a 
fixed-price incentive contract); or 
‘‘(B) a cost-type contract (including a cost-plus- 
incentive-fee contract). 
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‘‘(3) The guidance referred to in paragraph (1) shall 
require that the justification for the contract type selected 
explain— 
‘‘(A) how the level of program risk relates to 
the contract type selected; and 
‘‘(B) how the use of incentives (especially cost 
incentives) in the contract, if any, supports the ob-
jectives of the development program. 
‘‘(4) The guidance shall also specify that the use of 
contracts with target costs, target profits or fees, and 
profit or fee adjustment formulas, during development, 
where applicable, is ordinarily in the interest of the Gov-
ernment.’’. 
(b) REPEAL.—Section 818 of the John Warner Na-
tional Defense Authorization Act for Fiscal Year 2007 
(Public Law 109–364; 10 U.S.C. 2306 note) is amended 
by striking subsections (b), (c), (d), and (e). 
(c) MODIFICATION
OF REGULATIONS.—Not later 
than 120 days after the date of the enactment of this Act, 
the Secretary of Defense shall modify the regulations of 
the Department of Defense regarding the determination 
of contract type for development programs to be consistent 
with the amendments made by this section. 
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SEC. 822. REPEAL OF REQUIREMENT FOR STAND-ALONE 
MANPOWER 
ESTIMATES 
FOR 
MAJOR 
DE-
FENSE ACQUISITION PROGRAMS. 
(a) REPEAL OF REQUIREMENT.—Subsection (a)(1) 
of section 2434 of title 10, United States Code, is amend-
ed by striking ‘‘and a manpower estimate for the program 
have’’ and inserting ‘‘has’’. 
(b) CONFORMING AMENDMENTS RELATING TO REG-
ULATIONS.—Subsection (b) of such section is amended— 
(1) by striking paragraph (2); 
(2) by striking ‘‘shall require—’’ and all that 
follows through ‘‘that the independent’’ and insert-
ing ‘‘shall require that the independent’’; 
(3) by redesignating subparagraphs (A) and 
(B) as paragraphs (1) and (2), respectively, and re-
aligning those paragraphs so as to be two ems from 
the left margin; and 
(4) in paragraph (2), as so redesignated— 
(A) by striking ‘‘and operations and sup-
port,’’ and inserting ‘‘operations and support, 
and manpower to operate, maintain, and sup-
port the program upon full operational deploy-
ment,’’; and 
(B) by striking ‘‘; and’’ at the end and in-
serting a period. 
(c) CLERICAL AMENDMENTS.— 
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(1) SECTION HEADING.—The heading of such 
section is amended to read as follows: 
‘‘§ 2434. Independent cost estimates’’. 
(2) TABLE OF SECTIONS.—The item relating to 
such section in the table of sections at the beginning 
of chapter 144 of such title is amended to read as 
follows: 
‘‘2434. Independent cost estimates.’’. 
SEC. 823. REVISION OF MILESTONE DECISION AUTHORITY 
RESPONSIBILITIES FOR MAJOR DEFENSE AC-
QUISITION PROGRAMS. 
(a) REVISION.— 
(1) IN GENERAL.—Sections 2366a and 2366b 
of title 10, United States Code, are amended to read 
as follows: 
‘‘§ 2366a. Major defense acquisition programs: re-
sponsibilities at Milestone A approval 
‘‘(a) RESPONSIBILITIES.—Before granting Milestone 
A approval for a major defense acquisition program or a 
major subprogram, the Milestone Decision Authority for 
the program or subprogram shall ensure— 
‘‘(1) that information about the program or 
subprogram is sufficient to warrant entry of the pro-
gram or subprogram into the risk reduction phase; 
and 
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‘‘(2) that there are sound plans for progression 
of the program or subprogram to the development 
phase. 
‘‘(b) CONSIDERATIONS.—In carrying out subsection 
(a), the Milestone Decision Authority shall consider to 
what extent the program or subprogram— 
‘‘(1) meets a joint military requirement; 
‘‘(2) responds to an anticipated or likely threat; 
‘‘(3) has been developed in light of a review of 
alternative approaches; 
‘‘(4) is affordable; 
‘‘(5) has (A) identified areas of risk and, (B) 
for each such identified area of risk, has a plan to 
reduce the risk that is documented in the acquisition 
strategy for the program or subprogram; 
‘‘(6) addresses planning for sustainment; and 
‘‘(7) meets any other considerations the Mile-
stone Decision Authority considers relevant. 
‘‘(c) RELATIONSHIP TO OTHER STATUTES.—In as-
sessing the considerations in subsection (b), the Milestone 
Decision Authority shall include consideration of the fol-
lowing: 
‘‘(1) With respect to joint military require-
ments, the requirements of section 181 of this title. 
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‘‘(2) With respect to alternative approaches, the 
requirements of section 201 of the Weapon Systems 
Acquisition Reform Act of 2009 (Public Law 111– 
23; 10 U.S.C. 2302 note). 
‘‘(3) With respect to affordability and cost esti-
mates and analyses, the requirements of section 
2334 of this title. 
‘‘(4) With respect to risk, the requirements 
of— 
‘‘(A) section 138b of this title; and 
‘‘(B) section 203 of the Weapon Systems 
Acquisition Reform Act of 2009 (Public Law 
111–23; 10 U.S.C. 2430 note). 
‘‘(5) With respect to sustainment, the require-
ments of section 2337 and section 2464 of this title. 
‘‘(d) NOTIFICATION.—Not later than 30 days after 
granting Milestone A approval for a major defense acquisi-
tion program or major subprogram, the Milestone Deci-
sion Authority for that program or subprogram shall sub-
mit to the congressional defense committees notice of such 
approval in writing. The Milestone Decision Authority’s 
decision memorandum with respect to such approval shall 
be available to the congressional defense committees upon 
request, consistent with any relevant classification require-
ments. 
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‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘major defense acquisition pro-
gram’ means a Department of Defense acquisition 
program that is a major defense acquisition program 
for purposes of section 2430 of this title. 
‘‘(2) The term ‘major subprogram’ means a 
major subprogram of a major defense acquisition 
program designated under section 2430a(a)(1) of 
this title. 
‘‘(3) The term ‘Milestone Decision Authority’, 
with respect to a major defense acquisition program 
or a major subprogram, means the official within the 
Department of Defense designated with the overall 
responsibility and authority for acquisitions decisions 
for the program or subprogram, including authority 
to approve entry of the program or subprogram into 
the next phase of the acquisition process. 
‘‘(4) The term ‘Milestone A approval’ means a 
decision to enter into a risk reduction phase pursu-
ant to guidance prescribed by the Secretary of De-
fense for the management of Department of Defense 
acquisition programs. 
‘‘(5) The term ‘joint military requirement’ has 
the meaning given that term in section 181(g)(1) of 
this title. 
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‘‘§ 2366b. Major defense acquisition programs: re-
sponsibilities at Milestone B approval 
‘‘(a) RESPONSIBILITIES.—Before granting Milestone 
B approval for a major defense acquisition program or a 
major subprogram, the Milestone Decision Authority for 
the program or subprogram shall ensure— 
‘‘(1) that information about the program or 
subprogram is sufficient to warrant entry of the pro-
gram or subprogram into the development phase; 
and 
‘‘(2) that there are sound plans in place for the 
program or subprogram to deliver the required capa-
bility. 
‘‘(b) CONSIDERATIONS.—In carrying out subsection 
(a), the Milestone Decision Authority shall consider to 
what extent the program or subprogram will do each of 
the following: 
‘‘(1) Provide a capability that is affordable. 
‘‘(2) Identify and mitigate programmatic risks. 
‘‘(3) Deliver a capability with acceptable per-
formance to fulfill a joint military requirement. 
‘‘(4) Utilize technologies assessed to be mature. 
‘‘(5) Effectively utilize competition. 
‘‘(6) Enable sustainment of the capability that 
is provided by the program or subprogram. 
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‘‘(7) Continue to address, as necessary, the con-
siderations for Milestone A approval (or in the case 
that the program has not previously been granted 
Milestone A approval, address such considerations). 
‘‘(8) Respond to anticipated or likely threats. 
‘‘(9) Meet any other considerations the Mile-
stone Decision Authority considers relevant. 
‘‘(c) RELATIONSHIP TO OTHER STATUTES.—In ad-
dressing the considerations in subsection (b), the Mile-
stone Decision Authority shall include consideration of the 
following: 
‘‘(1) With respect to affordability, the require-
ments of section 2334 of this title. 
‘‘(2) With respect to risk, the requirements 
of— 
‘‘(A) section 203 of the Weapon Systems 
Acquisition Reform Act of 2009 (Public Law 
111–23; 10 U.S.C. 2430 note); and 
‘‘(B) section 138b of this title. 
‘‘(3) With respect to fulfilling a joint military 
requirement, the requirements of section 181 of this 
title. 
‘‘(4) With respect to competition, the require-
ments of— 
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‘‘(A) section 202 of the Weapon Systems 
Acquisition Reform Act of 2009 (Public Law 
111–23; 10 U.S.C. 2430 note); and 
‘‘(B) section 2304 of this title. 
‘‘(5) With respect to sustainment, the require-
ments of section 2337 and section 2464 of this title. 
‘‘(d) NOTIFICATION.—Not later than 30 days after 
granting Milestone B approval for a major defense acqui-
sition program or major subprogram, the Milestone Deci-
sion Authority for the program or subprogram shall sub-
mit to the congressional defense committees notice of such 
approval in writing. The Milestone Decision Authority’s 
decision memorandum with respect to such approval shall 
be available to the congressional defense committees upon 
request, consistent with any relevant classification require-
ments. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘major defense acquisition pro-
gram’ means a Department of Defense acquisition 
program that is a major defense acquisition program 
for purposes of section 2430 of this title. 
‘‘(2) The term ‘major subprogram’ means a 
major subprogram of a major defense acquisition 
program designated under section 2430a(a)(1) of 
this title. 
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‘‘(3) The term ‘Milestone Decision Authority’, 
with respect to a major defense acquisition program 
or a major subprogram, means the official within the 
Department of Defense designated with the overall 
responsibility and authority for acquisition decisions 
for the program or subprogram, including authority 
to approve entry of the program or subprogram into 
the next phase of the acquisition process. 
‘‘(4) The term ‘Milestone A approval’ means a 
decision to enter into a risk reduction phase pursu-
ant to guidance prescribed by the Secretary of De-
fense for the management of Department of Defense 
acquisition programs. 
‘‘(5) The term ‘Milestone B approval’ means a 
decision to enter into a development phase pursuant 
to guidance prescribed by the Secretary of Defense 
for the management of Department of Defense ac-
quisition programs. 
‘‘(6) The term ‘joint military requirement’ has 
the meaning given that term in section 181(g)(1) of 
this title.’’. 
(2) CLERICAL AMENDMENT.—The items relat-
ing to such sections in the table of sections at the 
beginning of chapter 139 of such title are amended 
to read as follows: 
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‘‘2366a. Major defense acquisition programs: responsibilities at Milestone A ap-
proval. 
‘‘2366b. Major defense acquisition programs: responsibilities at Milestone B ap-
proval.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 139b of this title is amended— 
(A) in subsection (a)(5)— 
(i) in subparagraph (B), by striking 
‘‘review and approve or disapprove’’ and 
inserting ‘‘advise the milestone decision au-
thority regarding review and approval of’’; 
and 
(ii) in subparagraph (C), by inserting 
‘‘in order to advise relevant technical au-
thorities for such programs on the incorpo-
ration of best practices for developmental 
test from across the Department’’ after 
‘‘programs’’; and 
(B) in subsection (b)(5)— 
(i) in subparagraph (B), by striking 
‘‘review and approve’’ and inserting ‘‘ad-
vise the milestone decision authority re-
garding review and approval of’’; and 
(ii) in subparagraph (C), by inserting 
‘‘in order to advise relevant technical au-
thorities for such programs on the incorpo-
ration of best practices for systems engi-
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