359 
posals for major systems that could contain strategic 
materials clearly specify that an evaluation criteria 
for such proposals will be the extent to which each 
prospective strategic material supplier demonstrates a 
record of sustained reinvestment in processes, infra-
structure, workforce training, and facilities for domes-
tic production of such a material, as well as a plan 
for continued reinvestment. 
(2) FLOW
DOWN
REQUIRED.—Guidance issued 
under this subsection shall require that the evaluation 
criteria be incorporated by reference into any solicita-
tion for sources of strategic materials at any contrac-
tual tier. 
(b) REVIEW AND REPORT.— 
(1) REVIEW REQUIRED.—The Strategic Mate-
rials Protection Board, established under section 187 
of title 10, United States Code, shall, on an annual 
basis— 
(A) review the number of proposals sub-
mitted for major systems that could contain stra-
tegic materials; and 
(B) as part of the Board’s duties under 
paragraph (2) and (3) of section 187(b) of such 
title, determine the following: 
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(i) The percentage of proposals that 
were found to be responsive to the reinvest-
ment evaluation criteria required under 
subsection (a). 
(ii) The percentage of responsive pro-
posals that were awarded. 
(iii) The percentage of non-responsive 
proposals that were awarded. 
(iv) The long-term viability of strategic 
materials suppliers, based upon the past 
and future reinvestment planned by the 
suppliers. 
(2) INCLUSION
IN BOARD REPORT.—The Strategic 
Materials Protection Board shall include its findings in the 
next report submitted to Congress under section 187(d) of 
title 10, United States Code, after the date of the enactment 
of this Act. The Board shall include the findings of subse-
quent annual reviews in subsequent reports submitted under 
such section. 
(c) DEFINITIONS.—In this section: 
(1) STRATEGIC MATERIAL.—The term ‘‘strategic 
material’’ means— 
(A) a material designated as critical to na-
tional security by the Strategic Materials Protec-
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361 
tion Board in accordance with the section 187 of 
title 10, United States Code; 
(B) a specialty metal as defined by section 
2533b of title 10, United States Code; or 
(C) steel. 
(2) MAJOR SYSTEM.—The term ‘‘major system’’ 
has the meaning provided in section 2302 of title 10, 
United States Code. 
SEC. 809. CLARIFICATION OF THE PROTECTION OF STRA-
TEGIC MATERIALS CRITICAL TO NATIONAL 
SECURITY. 
(a) DEFINITION OF REQUIRED FORM.—Subsection (b) 
of section 2533b of title 10, United States Code, is amended 
by striking the period at the end and inserting the fol-
lowing: ‘‘and the term ‘required form’ means mill products, 
such as slab, plate and sheet, in the required form necessary. 
The term ‘required form’ shall not apply to end items or 
to their components at any tier.’’. 
(b) APPLICABILITY TO PROCUREMENTS OF COMMER-
CIAL ITEMS.—Subsection (h) of section 2533b of title 10, 
United States Code, is amended by inserting ‘‘or 35’’ after 
‘‘This section applies to procurements of commercial items 
notwithstanding section 34.’’ 
(c) REVISION OF DOMESTIC NON-AVAILABILITY DE-
TERMINATIONS.—Any Domestic Non-Availability Deter-
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362 
mination made by the Department of Defense between De-
cember 6, 2006 and the date 60 days after the date of the 
enactment of this Act shall be reviewed and amended, if 
necessary, to comply with subsection (a) and (b). 
(d) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall apply with respect to contracts 
entered into 60 days after the date of the enactment of this 
Act. 
SEC. 810. DEBARMENT OF CONTRACTORS CONVICTED OF 
CRIMINAL VIOLATIONS OF THE ARMS EXPORT 
CONTROL ACT. 
(a) DEBARMENT.—Except as provided in subsection 
(b), if the Secretary of Defense determines that a contractor 
or prospective contractor has been convicted of a criminal 
violation of any provision of the Arms Export Control Act 
(22 U.S.C. 2751 et seq.), the Secretary shall debar such con-
tractor or prospective contractor from contracting with the 
Department of Defense for a period not to exceed 5 years, 
not later than 90 days after determining that the contractor 
has been so convicted. 
(b) EXCEPTION.— 
(1) IN GENERAL.—Subsection (a) does not apply 
in any case in which the Secretary determines that 
there is a compelling reason to solicit an offer from, 
award a contract to, extend a contract with, or ap-
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363 
prove a subcontract with such contractor or prospec-
tive contractor. 
(2) PUBLIC NOTICE.—The Secretary shall trans-
mit to the Administrator of General Services a notice 
of any determination made under paragraph (1) at 
the time of the determination. The Administrator of 
General Services shall maintain each such notice in 
a file available for public inspection. 
(c) DEFINITION.—In this section, the term ‘‘debar’’ has 
the meaning given that term by section 2393(c) of title 10, 
United States Code. 
Subtitle B—Amendments to General 
Contracting Authorities, Proce-
dures, and Limitations 
SEC. 811. CHANGE TO THE TRUTH IN NEGOTIATIONS ACT 
EXCEPTION FOR THE ACQUISITION OF A COM-
MERCIAL ITEM. 
Section 2306a(b) of title 10, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(4) CERTAIN SOLE SOURCE PROCUREMENTS.— 
The exception in paragraph (1)(C) does not apply in 
the case of a contract, subcontract, or modification of 
a contract or subcontract that is for a commercial 
item to be procured using procedures other than com-
petitive procedures— 
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364 
‘‘(A) if the contracting officer determines 
that commercial sales data are insufficient to de-
termine a fair and reasonable price; and 
‘‘(B) if the contractor’s business segment has 
submitted certified cost or pricing data in con-
nection with at least one contract award or con-
tract modification.’’. 
SEC. 812. CLARIFICATION OF SUBMISSION OF COST OR 
PRICING DATA ON NONCOMMERCIAL MODI-
FICATIONS OF COMMERCIAL ITEMS. 
(a) MEASUREMENT OF PERCENTAGE AT CONTRACT 
AWARD.—Section 2306a(b)(3)(A) of title 10, United States 
Code, is amended by inserting after ‘‘total price of the con-
tract’’ the following: ‘‘(at the time of contract award)’’. 
(b) ADJUSTMENT
OF
DOLLAR
AMOUNT.—Section 
2306a(b)(3)(A) of such title is amended by striking 
‘‘$500,000’’ and inserting ‘‘$650,000’’. 
SEC. 813. PLAN FOR RESTRICTING GOVERNMENT-UNIQUE 
CONTRACT CLAUSES ON COMMERCIAL CON-
TRACTS. 
(a) PLAN.—The Under Secretary of Defense for Acqui-
sition, Technology, and Logistics shall develop and imple-
ment a plan to minimize the number of Government-unique 
contract clauses used in commercial contracts by restricting 
the clauses to the following: 
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365 
(1) Government-unique clauses authorized by 
law or regulation. 
(2) Any additional clauses that are relevant and 
necessary to a specific contract. 
(b) COMMERCIAL CONTRACT.—In this section: 
(1) The term ‘‘commercial contract’’ means a 
contract awarded by the Federal Government for the 
procurement of a commercial item. 
(2) The term ‘‘commercial item’’ has the mean-
ing provided by section 4(12) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(12)). 
SEC. 814. EXTENSION OF AUTHORITY FOR USE OF SIM-
PLIFIED 
ACQUISITION 
PROCEDURES 
FOR 
CERTAIN COMMERCIAL ITEMS. 
Section 4202(e) of the Clinger-Cohen Act of 1996 (divi-
sion D of Public Law 104–106; 110 Stat. 652; 10 U.S.C. 
2304 note) is amended by striking ‘‘January 1, 2008’’ and 
inserting ‘‘January 1, 2010’’. 
SEC. 815. EXTENSION OF AUTHORITY TO FILL SHORTAGE 
CATEGORY POSITIONS FOR CERTAIN FED-
ERAL ACQUISITION POSITIONS. 
Section 1413(b) of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108–136; 117 Stat. 
1665) is amended by striking ‘‘September 30, 2007’’ and 
inserting ‘‘September 30, 2012’’. 
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366 
SEC. 816. EXTENSION OF AUTHORITY TO CARRY OUT CER-
TAIN PROTOTYPE PROJECTS. 
Section 845(i) of the National Defense Authorization 
Act for Fiscal Year 1994 (10 U.S.C. 2371 note) is amended 
by striking ‘‘September 30, 2008’’ and inserting ‘‘September 
30, 2013’’. 
SEC. 817. CLARIFICATION OF LIMITED ACQUISITION AU-
THORITY FOR SPECIAL OPERATIONS COM-
MAND. 
Section 167(e)(4) of title 10, United States Code, is 
amended— 
(1) by redesignating subparagraph (C) as sub-
paragraph (D); and 
(2) by inserting after subparagraph (B) the fol-
lowing new subparagraph: 
‘‘(C)(i) The staff of the commander shall include an 
acquisition executive, who shall be responsible for the same 
functions and duties, and have the same authorities, as the 
service acquisition executives for the military departments. 
‘‘(ii) The staff of the commander shall include a senior 
procurement executive, who shall be responsible for pro-
viding management direction of the procurement system of 
the command, advising and assisting the commander and 
other officials of the combatant command to ensure that ac-
tivities and missions of the command are achieved through 
the management of the procurement system of the command, 
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367 
and otherwise being responsible for the same functions and 
duties, and having the same authorities, as the senior pro-
curement executive for the military departments. 
‘‘(iii) The commander of the special operations com-
mand may designate the same individual to the position 
of acquisition executive and the position of senior procure-
ment executive. 
‘‘(iv) Any reference to service acquisition executive or 
senior procurement executive of a military department in 
any Federal law, Executive order, or regulation is deemed 
to include the acquisition executive or senior procurement 
executive of the special operations command unless such 
law, order, or regulation explicitly excludes such positions 
by reference to this section.’’. 
SEC. 818. EXEMPTION OF SPECIAL OPERATIONS COMMAND 
FROM CERTAIN REQUIREMENTS FOR CON-
TRACTS RELATING TO VESSELS, AIRCRAFT, 
AND COMBAT VEHICLES. 
Subsection (e) of section 167 of title 10, United States 
Code, is amended by adding at the end the following new 
paragraph: 
‘‘(5) The commander of the command, in carrying out 
his functions under this subsection, may carry out such 
functions with respect to a contract covered by section 2401 
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368 
of this title without regard to subsection (b) of that section 
if— 
‘‘(A) the contract is for a term of not more than 
5 years (including all options to renew or extend the 
contract); and 
‘‘(B) funds are available and obligated for the 
full cost of the contract (including termination costs) 
on or before the date the contract is awarded.’’. 
SEC. 819. PROVISION OF AUTHORITY TO MAINTAIN EQUIP-
MENT TO UNIFIED COMBATANT COMMAND 
FOR JOINT WARFIGHTING. 
Section 167a of title 10, United States Code, is amend-
ed— 
(1) in subsection (a), by striking ‘‘and acquire’’ 
and inserting ‘‘, acquire, and maintain’’; 
(2) by redesignating subsection (f) as subsection 
(g); and 
(3) by inserting after subsection (e) the following 
new subsection: 
‘‘(f) LIMITATION ON AUTHORITY TO MAINTAIN EQUIP-
MENT.—The authority delegated under subsection (a) to 
maintain equipment is subject to the availability of funds 
authorized and appropriated specifically for that purpose.’’. 
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369 
SEC. 820. MARKET RESEARCH. 
(a) MARKET RESEARCH.—Subsection (c) of section 
2377 of title 10, United States Code, is amended as follows: 
(1) The subsection heading is amended by strik-
ing ‘‘PRELIMINARY’’. 
(2) Paragraph (1) is amended— 
(A) by striking ‘‘research appropriate to the 
circumstances—’’ and inserting ‘‘research—’’; 
(B) by striking ‘‘and’’ at the end of sub-
paragraph (A); 
(C) by striking the period at the end of sub-
paragraph (B) and inserting ‘‘; and’’; and 
(D) by adding at the end the following: 
‘‘(C) before awarding a task order in excess of 
the simplified acquisition threshold.’’. 
(3) The subsection is amended by adding at the 
end the following new paragraphs: 
‘‘(4) The Secretary of Defense shall ensure that 
market research under this subsection includes use of 
an appropriately tailored search engine to access the 
world wide web in order to identify readily available 
capabilities in the commercial market place. 
‘‘(5) For programs with a value in excess of 
$1,000,000, the contracting officer must certify that 
market research was performed before award of the 
contract or task order.’’. 
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370 
(b) EVALUATION
OF
CERTAIN
INCENTIVES.—The 
Under Secretary of Defense for Acquisition, Technology, 
and Logistics shall evaluate options for preferences or eco-
nomic incentives for contractors that maximize the use of 
readily available and proven capabilities in the commercial 
market place. 
Subtitle C—Accountability in 
Contracting 
SEC. 821. LIMITATION ON LENGTH OF NONCOMPETITIVE 
CONTRACTS. 
(a) REVISION OF FAR.—Not later than one year after 
the date of the enactment of this Act, the Federal Acquisi-
tion Regulation shall be revised to restrict the contract pe-
riod of any contract described in subsection (c) to the min-
imum contract period necessary— 
(1) to meet the urgent and compelling require-
ments of the work to be performed under the contract; 
and 
(2) to enter into another contract for the re-
quired goods or services through the use of competitive 
procedures. 
(b) CONTRACT PERIOD.—The regulations promulgated 
under subsection (a) shall require the contract period to not 
exceed one year, unless the head of the executive agency con-
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371 
cerned determines that the Government would be seriously 
injured by the limitation on the contract period. 
(c) COVERED CONTRACTS.—This section applies to 
any contract in an amount greater than $1,000,000 entered 
into by an executive agency using procedures other than 
competitive procedures pursuant to the exception provided 
in section 303(c)(2) of the Federal Property and Adminis-
trative Services Act of 1949 (41 U.S.C. 253(c)(2)) or section 
2304(c)(2) of title 10, United States Code. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘executive agency’’ has the mean-
ing provided in section 4(1) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(1)). 
(2) The term ‘‘head of the executive agency’’ 
means the head of an executive agency except that, in 
the case of the Department of Defense, the term 
means— 
(A) in the case of a military department, 
the Secretary of the military department; 
(B) in the case of a Defense Agency, the 
head of the Defense Agency; and 
(C) in the case of any part of the Depart-
ment of Defense other than a military depart-
ment or Defense Agency, the Under Secretary of 
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372 
Defense for Acquisition, Technology, and Logis-
tics. 
SEC. 822. MAXIMIZING FIXED-PRICE PROCUREMENT CON-
TRACTS. 
(a) PLANS REQUIRED.—Subject to subsection (c), the 
head of each executive agency covered by title III of the Fed-
eral Property and Administrative Services Act of 1949 (41 
U.S.C. 251 et seq.) or, in the case of the Department of 
Defense, the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, shall develop and implement a 
plan to maximize, to the fullest extent practicable, the use 
of fixed-price type contracts for the procurement of goods 
and services by the agency or department concerned. The 
plan shall contain measurable goals and shall be completed 
and submitted to the Committee on Oversight and Govern-
ment Reform of the House of Representatives, the Com-
mittee on Homeland Security and Governmental Affairs of 
the Senate, and the Committees on Appropriations of the 
House of Representatives and the Senate and, in the case 
of the Department of Defense and the Department of En-
ergy, the Committees on Armed Services of the Senate and 
the House of Representatives, with a copy provided to the 
Comptroller General, not later than 1 year after the date 
of the enactment of this Act. 
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373 
(b) COMPTROLLER GENERAL REVIEW.—The Comp-
troller General shall review the plans provided under sub-
section (a) and submit a report to Congress on the plans 
not later than 18 months after the date of the enactment 
of this Act. 
(c) REQUIREMENT LIMITED TO CERTAIN AGENCIES.— 
The requirement of subsection (a) shall apply only to those 
agencies that awarded contracts in a total amount of at 
least $1,000,000,000 in the fiscal year preceding the fiscal 
year in which the report is submitted. 
SEC. 823. PUBLIC DISCLOSURE OF JUSTIFICATION AND AP-
PROVAL DOCUMENTS FOR NONCOMPETITIVE 
CONTRACTS. 
(a) CIVILIAN AGENCY CONTRACTS.— 
(1) IN GENERAL.—Section 303 of the Federal 
Property and Administrative Services Act of 1949 (41 
U.S.C. 253) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(j)(1)(A) Except as provided in subparagraph (B), in 
the case of a procurement permitted by subsection (c), the 
head of an executive agency shall make publicly available, 
within 14 days after the award of the contract, the docu-
ments containing the justification and approval required 
by subsection (f)(1) with respect to the procurement. 
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374 
‘‘(B) In the case of a procurement permitted by sub-
section (c)(2), subparagraph (A) shall be applied by sub-
stituting ‘30 days’ for ‘14 days’. 
‘‘(2) The documents shall be made available on the 
website of the agency and through the Federal Procurement 
Data System. 
‘‘(3) This subsection does not require the public avail-
ability of information that is exempt from public disclosure 
under section 552(b) of title 5, United States Code.’’. 
(2) CONFORMING
AMENDMENT.—Section 303(f) 
of such Act is amended— 
(A) by striking paragraph (4); and 
(B) by redesignating paragraph (5) as 
paragraph (4). 
(b) DEFENSE AGENCY CONTRACTS.— 
(1) IN
GENERAL.—Section 2304 of title 10, 
United States Code, is amended by adding at the end 
the following new subsection: 
‘‘(l)(1)(A) Except as provided in subparagraph (B), in 
the case of a procurement permitted by subsection (c), the 
head of an agency shall make publicly available, within 14 
days after the award of the contract, the documents con-
taining the justification and approval required by sub-
section (f)(1) with respect to the procurement. 
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375 
‘‘(B) In the case of a procurement permitted by sub-
section (c)(2), subparagraph (A) shall be applied by sub-
stituting ‘30 days’ for ‘14 days’. 
‘‘(2) The documents shall be made available on the 
website of the agency and through the Federal Procurement 
Data System. 
‘‘(3) This subsection does not require the public avail-
ability of information that is exempt from public disclosure 
under section 552(b) of title 5.’’. 
(2) CONFORMING AMENDMENT.—Section 2304(f) 
of such title is amended— 
(A) by striking paragraph (4); and 
(B) by redesignating paragraphs (5) and 
(6) as paragraphs (4) and (5), respectively. 
SEC. 824. DISCLOSURE OF GOVERNMENT CONTRACTOR 
AUDIT FINDINGS. 
(a) QUARTERLY REPORT TO CONGRESS.— 
(1) REQUIREMENT.—The head of each Federal 
agency or department or, in the case of the Depart-
ment of Defense, the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, shall submit 
to the chairman and ranking member of each com-
mittee specified in paragraph (2) on a quarterly basis 
a report that includes the following: 
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(A) A list of completed audits performed by 
such agency or department issued during the ap-
plicable quarter that describe contractor costs in 
excess of $10,000,000 that have been identified as 
unjustified, unsupported, questioned, or unrea-
sonable under any contract, task or delivery 
order, or subcontract. 
(B) The specific amounts of costs identified 
as unjustified, unsupported, questioned, or un-
reasonable and the percentage of their total value 
of the contract, task or delivery order, or sub-
contract. 
(C) A list of completed audits performed by 
such agency or department issued during the ap-
plicable quarter that identify material defi-
ciencies in the performance of any contractor or 
in any business system of any contractor under 
any contract, task or delivery order, or sub-
contract. 
(2) COMMITTEES.—The report described in para-
graph (1) shall be submitted to— 
(A) the Committee on Oversight and Gov-
ernment Reform of the House of Representatives; 
(B) the Committee on Homeland Security 
and Governmental Affairs of the Senate; 
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377 
(C) the Committees on Appropriations of 
the House of Representatives and the Senate; 
(D) in the case of reports from the Depart-
ment of Defense or the Department of Energy, 
the Committees on Armed Services of the Senate 
and the House of Representatives; and 
(E) the committees of primary jurisdiction 
over the agency or department submitting the re-
port. 
(3) EXCEPTION.—Paragraph (1) shall not apply 
to an agency or department with respect to a cal-
endar quarter if no audits described in paragraph (1) 
were issued during that quarter. 
(b) SUBMISSION OF INDIVIDUAL AUDITS.— 
(1) REQUIREMENT.—The head of each Federal 
agency or department shall provide, within 14 days 
after a request in writing by the chairman or ranking 
member of any committee listed in paragraph (2), a 
full and unredacted copy of any audit described in 
subsection (a)(1). Such copy shall include an identi-
fication of information in the audit exempt from pub-
lic disclosure under section 552(b) of title 5, United 
States Code. 
(2) COMMITTEES.—The committees listed in this 
paragraph are the following: 
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378 
(A) The Committee on Oversight and Gov-
ernment Reform of the House of Representatives. 
(B) The Committee on Homeland Security 
and Governmental Affairs of the Senate. 
(C) The Committees on Appropriations of 
the House of Representatives and the Senate. 
(D) In the case of the Department of De-
fense or the Department of Energy, the Commit-
tees on Armed Services of the Senate and House 
of Representatives. 
(E) The committees of primary jurisdiction 
over the agency or department to which the re-
quest is made. 
SEC. 825. STUDY OF ACQUISITION WORKFORCE. 
(a) REQUIREMENT FOR STUDY.—The Administrator 
for Federal Procurement Policy shall conduct a study of 
the composition, scope, and functions of the Government- 
wide acquisition workforce and develop a comprehensive 
definition of, and method of measuring the size of, such 
workforce. 
(b) REPORT.—Not later than 1 year after the date of 
the enactment of this Act, the Administrator shall submit 
to the relevant congressional committees a report on the re-
sults of the study required by subsection (a), with such find-
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379 
ings and recommendations as the Administrator determines 
appropriate. 
SEC. 826. REPORT TO CONGRESS. 
(a) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Director of the Office of 
Government Ethics shall submit a report to Congress that 
contains the Director’s recommendations on requiring Gov-
ernment contractors that advise one or more Federal agen-
cies on procurement policy, and requiring federally funded 
research and development centers, to comply with restric-
tions relating to personal financial interests, such as those 
that apply to Federal employees. 
(b) DEFINITION.—In this section: 
(1) 
GOVERNMENT
CONTRACTOR.—The 
term 
‘‘Government contractor’’ means any person (other 
than a Federal agency) with which a Federal agency 
has entered into a contract to acquire goods or serv-
ices. 
(2) FEDERAL AGENCY.—The term ‘‘Federal agen-
cy’’ means— 
(A) any executive department or inde-
pendent establishment in the executive branch of 
the Government, including any wholly owned 
Government corporation; and 
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(B) any establishment in the legislative or 
judicial branch of the Government (except the 
Senate, the House of Representatives, and the 
Architect of the Capitol and any activities under 
the Architect’s direction). 
(3) FEDERALLY FUNDED RESEARCH AND DEVEL-
OPMENT
CENTER.—The term ‘‘federally funded re-
search and development center’’ means a federally 
funded research and development center as identified 
by the National Science Foundation in accordance 
with the Federal Acquisition Regulation. 
Subtitle D—Contracts Relating to 
Iraq and Afghanistan 
SEC. 831. MEMORANDUM OF UNDERSTANDING ON MATTERS 
RELATING TO CONTRACTING. 
(a) MEMORANDUM OF UNDERSTANDING REQUIRED.— 
The Secretary of Defense, the Secretary of State, and the 
Administrator of the United States Agency for Inter-
national Development shall enter into a memorandum of 
understanding regarding matters relating to contracting for 
contracts in Iraq or Afghanistan. 
(b) RESTRICTIONS ON CONTRACTING UNTIL MEMO-
RANDUM SIGNED.— 
(1) RESTRICTION.—Except as provided in para-
graph (2), on and after January 1, 2008, no contracts 
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in Iraq or Afghanistan may be awarded by the De-
partment of Defense, the Department of State, or the 
United States Agency for International Development 
(A) unless the memorandum required by subsection 
(a) has been signed by the Secretary of Defense, the 
Secretary of State, or the Administrator of the United 
States Agency for International Development, respec-
tively; and (B) the department or agency concerned 
has initiated use of the common database identified 
in such memorandum to track contracts in Iraq or 
Afghanistan. 
(2) WAIVER.— 
(A) The restriction in paragraph (1) may 
be waived by the President for a period of 30 
days if the President submits to the relevant 
committees of Congress a notification of the 
waiver and the reasons for the waiver at least 15 
days before issuing the waiver. 
(B) Such waiver may be renewed for any 
number of additional 30-day periods if the 
President submits to the relevant committees of 
Congress a notification of the renewal of the 
waiver and the reasons for renewing the waiver 
at least 15 days before issuing the renewal of the 
waiver. 
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382 
(c) MATTERS COVERED.—The memorandum of under-
standing required by subsection (a) shall address, at a min-
imum, the following: 
(1) Identification of the major categories of con-
tracts in Iraq or Afghanistan being awarded by the 
Department of Defense, the Department of State, or 
the United States Agency for International Develop-
ment. 
(2) Identification of the roles and responsibilities 
of each department or agency for matters relating to 
contracting for contracts in Iraq or Afghanistan. 
(3) Responsibility for authorizing the carrying of 
weapons in performance of such contracts. 
(4) Responsibility for establishing minimum 
qualifications, including background checks, for per-
sonnel carrying weapons in performance of such con-
tracts. 
(5) Responsibility for setting rules of engagement 
for personnel carrying weapons in performance of 
such contracts. 
(6) Responsibility for establishing procedures for, 
and the coordination of, movement of contractor per-
sonnel in Iraq or Afghanistan. 
(7) Identification of a common database that 
will serve as a repository of information on all con-
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383 
tracts in Iraq or Afghanistan, and agreement on the 
elements to be included in the database, including, at 
a minimum, with respect to each contract— 
(A) a brief description of the contract; 
(B) the value of the contract; 
(C) the amount of cost ascribed to overhead 
for the contract; 
(D) the amount of cost ascribed to security 
for the contract; 
(E) the total number of personnel employed 
on the contract; and 
(F) the total number of personnel employed 
on the contract who provide security in Iraq or 
Afghanistan. 
(8) Responsibility for maintaining and updating 
information in the common database identified under 
paragraph (7). 
(9) Responsibility for the collection and referral 
to the appropriate Government agency of any infor-
mation relating to offenses under chapter 47 of title 
10, United States Code (the Uniform Code of Military 
Justice), or chapter 212 of title 18, United States 
Code 
(commonly 
referred 
to 
as 
the 
Military 
Extraterritorial Jurisdiction Act). 
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384 
(d) COPIES PROVIDED TO CONGRESS.—Copies of the 
memorandum of understanding required by subsection (a) 
shall be provided to the relevant committees of Congress 
within 30 days after the memorandum is signed. 
SEC. 832. COMPTROLLER GENERAL REVIEWS AND REPORTS 
ON CONTRACTING IN IRAQ AND AFGHANI-
STAN. 
(a) REVIEWS AND REPORTS REQUIRED.— 
(1) IN GENERAL.—Every six months, the Comp-
troller General shall review contracts in Iraq or Af-
ghanistan and submit to the relevant committees of 
Congress a report on such review. 
(2) MATTERS
COVERED.—A report under this 
subsection shall cover the following with respect to the 
contracts in Iraq or Afghanistan reviewed for the re-
port: 
(A) Total number of contracts awarded dur-
ing the period covered by the report. 
(B) Total number of active contracts. 
(C) Total value of all contracts awarded 
during the reporting period. 
(D) Total value of active contracts. 
(E) Total number of contractor personnel 
working on contracts during the reporting pe-
riod. 
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(F) Total number of contractor personnel 
who have provided security in Iraq or Afghani-
stan for contracts during the reporting period. 
(G) Categories of activities undertaken in 
reviewed contracts. 
(H) The extent to which such contracts have 
used competitive procedures. 
(I) The extent to which such contracts have 
achieved the initial scope of requirements in-
cluded in the contracts. 
(J) The effect of costs for security on such 
contracts and whether contracting for security on 
such contracts rather than government-provided 
security is more effective, efficient, and consistent 
with the United States policy goals. 
(K) Information on any specific contract or 
class of contracts that the Comptroller General 
determines raises issues of significant concern. 
(3) SUBMISSION OF REPORTS.—The Comptroller 
General shall submit an initial report under this sub-
section not later than March 1, 2008, and shall sub-
mit an updated report every six months thereafter 
until March 1, 2010. 
(b) ACCESS TO DATABASE ON CONTRACTS.—The Sec-
retary of Defense and the Secretary of State shall provide 
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full access to the database described in section 831(c)(7) to 
the Comptroller General for purposes of the reviews carried 
out under this section. 
SEC. 833. DEFINITIONS. 
In this subtitle: 
(1) MATTERS RELATING TO CONTRACTING.—The 
term ‘‘matters relating to contracting’’, with respect 
to contracts in Iraq and Afghanistan, means all mat-
ters relating to awarding, funding, managing, track-
ing, monitoring, and providing oversight to contracts 
and contractor personnel. 
(2) CONTRACTS IN IRAQ OR AFGHANISTAN.—The 
term ‘‘contracts in Iraq and Afghanistan’’ means a 
contract with the Department of Defense, the Depart-
ment of State, or the United States Agency for Inter-
national Development, a subcontract at any tier 
issued under such a contract, or a task order at any 
tier issued under such a contract (including a con-
tract, subcontract, or task order issued by another 
Government agency for the Department of Defense, 
the Department of State, or the United States Agency 
for International Development), if the contract, sub-
contract, or task order involves worked performed in 
Iraq or Afghanistan for a period longer than 14 days. 
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387 
(3) RELEVANT COMMITTEES OF CONGRESS.—The 
term ‘‘relevant committees of Congress’’ means each of 
the following committees: 
(A) The Committees on Armed Services of 
the Senate and the House of Representatives. 
(B) The Committee on Homeland Security 
and Governmental Affairs of the Senate and the 
Committee on Oversight and Government Reform 
of the House of Representatives. 
(C) The Committee on Foreign Relations of 
the Senate and the Committee on Foreign Affairs 
of the House of Representatives. 
SEC. 834. COMPETITION FOR EQUIPMENT SUPPLIED TO 
IRAQ AND AFGHANISTAN. 
(a) COMPETITION REQUIREMENT.—For the procure-
ment of pistols and other weapons described in subsection 
(b), the Secretary of Defense shall ensure, consistent with 
the provisions of section 2304 of title 10, United States 
Code, that— 
(1) full and open competition is obtained to the 
maximum extent practicable; 
(2) no responsible United States manufacturer is 
excluded from competing for such procurements; and 
(3) products manufactured in the United States 
are not excluded from the competition. 
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(b) PROCUREMENTS COVERED.—This section applies 
to the procurement of the following: 
(1) Pistols and other weapons less than 0.50 cal-
iber for assistance to the Army of Iraq, the Iraqi Po-
lice Forces, and other Iraqi security organizations. 
(2) Pistols and other weapons less than 0.50 cal-
iber for assistance to the Army of Afghanistan, the 
Afghani Police Forces, and other Afghani security or-
ganizations. 
Subtitle E—Other Matters 
SEC. 841. RAPID COMMERCIAL INFORMATION TECHNOLOGY 
IDENTIFICATION DEMONSTRATION PROJECT. 
(a) DEMONSTRATION PROJECT.—The Secretary of De-
fense, acting through the Assistant Secretary of Defense for 
Networks and Information Integration, shall establish a 
demonstration project to develop, implement, and assess the 
effectiveness of a comprehensive approach to identifying, as-
sessing, stimulating investment in, rapidly acquiring, and 
coordinating the use of commercial information technologies 
(with an emphasis on commercial off-the-shelf information 
technologies). The demonstration project shall be known as 
the ‘‘Rapid Commercial Information Technology Identifica-
tion Demonstration Pilot.’’ 
(b) MATTERS COVERED.—The demonstration project 
shall include the following: 
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(1) Developing a process to rapidly assess and 
set priorities for significant needs of the Department 
of Defense that could be met by commercial informa-
tion technology, including a process for— 
(A) aligning needs with the requirements of 
the combatant commanders; and 
(B) evaluating commercial products of in-
terest against those needs. 
(2) Providing for the hiring and support of em-
ployees (including the ability to request detailees from 
other military or Federal organizations) who can 
identify and assess promising commercial informa-
tion technologies and serve as intermediaries to the 
Department. 
(3) Enhancing internal Department data and 
communications about promising or existing commer-
cial information technology or federally funded infor-
mation technologies projects. 
(4) Identifying key commercial information tech-
nologies and using existing mechanisms to make them 
available to the Armed Forces. 
(5) Developing and operating a suitable Web 
portal or other significant virtual environment to fa-
cilitate communications with industry. 
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(6) Providing for acquisition guides for small in-
formation technology companies with promising tech-
nologies, to help them understand and navigate the 
funding and acquisition processes of the Department 
of Defense. 
(7) Developing methods to measure program per-
formance and collecting data on an ongoing basis to 
assess the effects of the process being used by the dem-
onstration program. 
(c) PERIOD OF DEMONSTRATION PROJECT.—The dem-
onstration project shall be conducted for a period of three 
years. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary of Defense 
$10,000,000 for fiscal year 2008 to carry out the demonstra-
tion project under this section, to be derived from amounts 
provided in section 201(4) for research, development, test, 
and evaluation, Defense-wide activities. 
(e) REPORT TO CONGRESS.—Not later than 12 months 
after the date of the enactment of this Act, the Secretary 
of Defense shall submit to the congressional defense commit-
tees a report on the implementation of the demonstration 
project required under this section. 
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SEC. 842. REPORT TO CONGRESS REQUIRED ON DELAYS IN 
MAJOR PHASES OF ACQUISITION PROCESS 
FOR MAJOR AUTOMATED INFORMATION SYS-
TEM PROGRAMS. 
(a) REPORT REQUIRED FOR CERTAIN DELAYS.—In 
the case of any major automated information system pro-
gram, if there is a delay in meeting any deadline for a 
phase of the acquisition process for the program specified 
in subsection (b), the Secretary of Defense, acting through 
the Under Secretary of Defense for Acquisition, Technology, 
and Logistics, shall submit to the congressional defense com-
mittees a report on the delay. The report shall be submitted 
not later than 30 days after the delay occurs. 
(b) DEADLINES.—The deadlines for a phase of the ac-
quisition process referred to in subsection (a) are the fol-
lowing: 
(1) With respect to approval of any analysis of 
alternatives, within one year from the date each anal-
ysis began. 
(2) With respect to achieving Milestone B in ac-
cordance with section 2366a of title 10, United States 
Code, within 18 months after the date of Milestone A 
approval. 
(3) With respect to completion of any capability 
development document, within six months from the 
time of determined need to the time of approval. 
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(c) MATTERS COVERED BY REPORT.—The report re-
quired by subsection (a)— 
(1) shall set forth the reason or reasons the De-
partment of Defense was unable to complete the de-
layed process or processes on time; and 
(2) shall include a written certification with a 
supporting explanation stating that— 
(A) the program is necessary for the effi-
cient management of the Department; and 
(B) the most current estimates of the costs, 
schedule, and performance parameters with re-
spect to the program and system are reasonable; 
and the management structure for the program 
is adequate to manage and control program 
costs. 
SEC. 843. REQUIREMENT FOR LICENSING OF CERTAIN MILI-
TARY DESIGNATIONS AND LIKENESSES OF 
WEAPONS SYSTEMS TO TOY AND HOBBY MAN-
UFACTURERS. 
(a) REQUIREMENT TO LICENSE CERTAIN ITEMS.— 
Section 2260 of title 10, United States Code, is amended— 
(1) by redesignating subsections (c), (d), and (e) 
as subsections (d), (e), and (f), respectively; and 
(2) by adding after subsection (b) the following 
new subsection: 
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