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travel that begins after the travel authorities transition ex-
piration date.’’. 
(12) Section 478a(e) is amended by striking 
‘‘December 31, 2011’’ and inserting ‘‘the travel au-
thorities transition expiration date’’. 
(13) Section 479 is amended by adding at the 
end the following new subsection: 
‘‘(e) No transportation of a house trailer or mobile 
home, or storage or payment in connection therewith, may 
be provided under this section for transportation that begins 
after the travel authorities transition expiration date.’’. 
(14) Section 480 is amended by adding at the 
end the following new subsection: 
‘‘(c) No travel or transportation allowance may be pro-
vided under this section for travel that begins after the trav-
el authorities transition expiration date.’’. 
(15) Section 481 is amended by adding at the 
end the following new subsection: 
‘‘(e) The regulations prescribed under this section shall 
cease to be in effect as of the travel authorities transition 
expiration date.’’. 
(16) Section 481a is amended by adding at the 
end the following new subsection:
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† HR 1540 EAS 
‘‘(c) No travel and transportation allowance may be 
provided under this section for travel that is authorized 
after the travel authorities transition expiration date.’’. 
(17) Section 481b is amended by adding at the 
end the following new subsection: 
‘‘(d) TERMINATION.—No travel and transportation al-
lowance may be provided under this section for travel that 
is authorized after the travel authorities transition expira-
tion date.’’. 
(18) Section 481c is amended by adding at the 
end the following new subsection: 
‘‘(c) No transportation may be provided under this sec-
tion after the travel authorities transition expiration date, 
and no payment may be made under this section for trans-
portation that begins after that date.’’. 
(19) Section 481d is amended by adding at the 
end the following new subsection: 
‘‘(d) No transportation may be provided under this 
section after the travel authorities transition expiration 
date.’’. 
(20) Section 481e is amended by adding at the 
end the following new subsection: 
‘‘(c) No travel and transportation allowance or reim-
bursement may be provided under this section for travel
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† HR 1540 EAS 
that begins after the travel authorities transition expiration 
date.’’. 
(21) Section 481f is amended by adding at the 
end the following new subsection: 
‘‘(h) TERMINATION.—No travel and transportation al-
lowance or reimbursement may be provided under this sec-
tion for travel that begins after the travel authorities transi-
tion expiration date.’’. 
(22) Section 481h is amended by adding at the 
end the following new subsection: 
‘‘(e) TERMINATION.—No transportation, allowance, re-
imbursement, or per diem may be provided under this sec-
tion for travel that begins after the travel authorities transi-
tion expiration date.’’. 
(23) Section 481i is amended by adding at the 
end the following new subsection: 
‘‘(c) TERMINATION.—No reimbursement may be pro-
vided under this section for expenses incurred after the trav-
el authorities transition expiration date.’’. 
(24) Section 481j is amended by adding at the 
end the following new subsection: 
‘‘(e) TERMINATION.—No transportation, allowance, re-
imbursement, or per diem may be provided under this sec-
tion for travel that begins after the travel authorities transi-
tion expiration date.’’.
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† HR 1540 EAS 
(25) Section 481k is amended by adding at the 
end the following new subsection: 
‘‘(e) TERMINATION.—No transportation, allowance, re-
imbursement, or per diem may be provided under this sec-
tion for travel that begins after the travel authorities transi-
tion expiration date.’’. 
(26) Section 481l is amended by adding at the 
end the following new subsection: 
‘‘(e) TERMINATION.—No transportation, allowance, re-
imbursement, or per diem may be provided under this sec-
tion for travel that begins after the travel authorities transi-
tion expiration date.’’. 
(27) Section 484 is amended by adding at the 
end the following new subsection: 
‘‘(k) No transportation, allowance, or reimbursement 
may be provided under this section for a move that begins 
after the travel authorities transition expiration date.’’. 
(28) Section 488 is amended— 
(A) by inserting ‘‘(a) AUTHORITY.—’’ before 
‘‘In addition’’; and 
(B) by adding at the end the following new 
subsection: 
‘‘(b) TERMINATION.—No reimbursement may be pro-
vided under this section for expenses incurred after the trav-
el authorities transition expiration date.’’.
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† HR 1540 EAS 
(29) Section 489 is amended— 
(A) by inserting ‘‘(a) AUTHORITY.—’’ before 
‘‘In addition’’; and 
(B) by adding at the end the following new 
subsection: 
‘‘(b) TERMINATION.—No transportation or allowance 
may be provided under this section for travel that begins 
after the travel authorities transition expiration date.’’. 
(30) Section 490 is amended by adding at the 
end the following new subsection: 
‘‘(g) TERMINATION.—No transportation, allowance, re-
imbursement, or per diem may be provided under this sec-
tion for travel that begins after the travel authorities transi-
tion expiration date.’’. 
(31) Section 492 is amended by adding at the 
end the following new subsection: 
‘‘(c) No transportation or allowance may be provided 
under this section for travel that begins after the travel au-
thorities transition expiration date.’’. 
(32) Section 494 is amended by adding at the 
end the following new subsection: 
‘‘(d) TERMINATION.—No reimbursement may be pro-
vided under this section for expenses incurred after the trav-
el authorities transition expiration date.’’.
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† HR 1540 EAS 
(33) Section 495 is amended by adding at the 
end the following new subsection: 
‘‘(c) TERMINATION.—No allowance may be paid under 
this section for any day after the travel authorities transi-
tion expiration date.’’. 
(f) TECHNICAL AND CLERICAL AMENDMENTS.— 
(1) CHAPTER HEADING.—The heading of chapter 
7 of such title is amended to read as follows: 
‘‘CHAPTER 
7—ALLOWANCES 
OTHER 
THAN TRAVEL AND TRANSPORTATION 
ALLOWANCES’’. 
(2) TABLE OF CHAPTERS.—The table of chapter 
preceding chapter 1 of such title is amended by strik-
ing the item relating to chapter 7 and inserting the 
following: 
‘‘7. Allowances Other Than Travel and Transportation Allowances ...........
401
‘‘8. Travel and Transportation Allowances ...................................................
451’’. 
(3) TABLES OF SECTIONS.— 
(A) The table of sections at the beginning of 
chapter 7 of such title is amended by striking the 
items relating to sections 404 through 412, 428 
through 432, 434, and 435. 
(B) The table of sections at the beginning of 
chapter 9 of such title is amended by striking the 
item relating to section 554. 
(4) CROSS-REFERENCES.—
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† HR 1540 EAS 
(A) Any section of title 10 or 37, United 
States Code, that includes a reference to a section 
of title 37 that is transferred and redesignated 
by subsection (c) is amended so as to conform the 
reference to the section number of the section as 
so redesignated. 
(B) Any reference in a provision of law 
other than a section of title 10 or 37, United 
States Code, to a section of title 37 that is trans-
ferred and redesignated by subsection (c) is 
deemed to refer to the section as so redesignated. 
SEC. 622. TRANSITION PROVISIONS. 
(a) IMPLEMENTATION PLAN.—The Secretary of De-
fense shall develop a plan to implement subchapters I and 
II of chapter 8 of title 37, United States Code (as added 
by section 621(b) of this Act), and to transition all of the 
travel and transportation programs for members of the uni-
formed services under chapter 7 of title 37, United States 
Code, solely to provisions of those subchapters by the end 
of the transition period. 
(b) AUTHORITY FOR MODIFICATIONS TO OLD-LAW AU-
THORITIES DURING TRANSITION PERIOD.—During the 
transition period, the Secretary of Defense and the Secre-
taries concerned, in using the authorities under subchapter 
III of chapter 8 of title 37, United States Code (as so
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† HR 1540 EAS 
added), may apply those authorities subject to the terms of 
such provisions and such modifications as the Secretary of 
Defense may include in the implementation plan required 
under subsection (a) or in any subsequent modification to 
that implementation plan. 
(c) COORDINATION.—The Secretary of Defense shall 
prepare the implementation plan under subsection (a) and 
any modification to that plan under subsection (b) in co-
ordination with— 
(1) the Secretary of Homeland Security, with re-
spect to the Coast Guard; 
(2) the Secretary of Health and Human Serv-
ices, with respect to the commissioned corps of the 
Public Health Service; and 
(3) the Secretary of Commerce, with respect to 
the National Oceanic and Atmospheric Administra-
tion. 
(d) PROGRAM OF COMPLIANCE.—The Secretary of De-
fense and the other administering Secretaries shall com-
mence the operation of the programs of compliance required 
by section 463 of title 37, United States Code (as so added), 
by not later than one year after the date of the enactment 
of this Act. 
(e) TRANSITION PERIOD.—In this section, the term 
‘‘transition period’’ means the 10-year period beginning on
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† HR 1540 EAS 
the first day of the first month beginning after the date of 
the enactment of this Act. 
Subtitle C—Disability, Retired Pay, 
and Survivor Benefits 
SEC. 631. REPEAL OF AUTOMATIC ENROLLMENT IN FAMILY 
SERVICEMEMBERS’ GROUP LIFE INSURANCE 
FOR MEMBERS OF THE ARMED FORCES MAR-
RIED TO OTHER MEMBERS. 
Section 1967(a)(1) of title 38, United States Code, is 
amended— 
(1) in subparagraph (A)(ii), by inserting after 
‘‘insurable dependent of the member’’ the following: 
‘‘(other than a dependent who is also a member of a 
uniformed service and, because of such membership, 
automatically insured under this paragraph)’’; and 
(2) in subparagraph (C)(ii), by inserting after 
‘‘insurable dependent of the member’’ the following: 
‘‘(other than a dependent who is also a member of a 
uniformed service and, because of such membership, 
automatically insured under this paragraph)’’.
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† HR 1540 EAS 
SEC. 632. LIMITATION ON AVAILABILITY OF CERTAIN 
FUNDS PENDING REPORT ON PROVISION OF 
SPECIAL COMPENSATION FOR MEMBERS OF 
THE UNIFORMED SERVICES WITH INJURY OR 
ILLNESS REQUIRING ASSISTANCE IN EVERY-
DAY LIVING. 
(a) 
LIMITATION
ON
FUNDS
FOR
TRAVEL
OF 
USD(PR).—Of the amount authorized to be appropriated 
for fiscal year 2012 for the Department of Defense for oper-
ation and maintenance for defense-wide activities as speci-
fied in the funding table in section 4301 and available for 
purposes of travel of the Office of the Under Secretary of 
Defense for Personnel and Readiness, not more than 50 per-
cent of such amount may be obligated or expended for such 
purposes until the Under Secretary of Defense for Personnel 
and Readiness submits to the congressional defense commit-
tees a report on the implementation by the Department of 
Defense of the authorities in section 439 of title 37, United 
States Code, for payment of special compensation for mem-
bers of the uniformed services with catastrophic injuries or 
illnesses requiring assistance in everyday living. 
(b) ELEMENTS.—The report described in subsection (a) 
shall include a detailed description of the implementation 
by the Department of the authorities in section 439 of title 
37, United States Code, including the following:
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† HR 1540 EAS 
(1) A description of the criteria established pur-
suant to such section for the payment of special com-
pensation under that section. 
(2) An assessment of the training needs of care-
givers of members paid special compensation under 
that section, including— 
(A) a description of the types of training 
currently provided; 
(B) a description of additional types of 
training that could be provided; and 
(C) an assessment whether current Depart-
ment programs are adequate to meet such train-
ing needs. 
SEC. 633. REPEAL OF SENSE OF CONGRESS ON AGE AND 
SERVICE REQUIREMENTS FOR RETIRED PAY 
FOR NON-REGULAR SERVICE. 
Section 635 of the Ike Skelton National Defense Au-
thorization Act for Fiscal Year 2011 (Public Law 111–383; 
124 Stat. 4241) is repealed. 
SEC. 634. DEATH GRATUITY AND RELATED BENEFITS FOR 
RESERVES WHO DIE DURING AN AUTHORIZED 
STAY AT THEIR RESIDENCE DURING OR BE-
TWEEN SUCCESSIVE DAYS OF INACTIVE DUTY 
TRAINING. 
(a) DEATH GRATUITY.—
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† HR 1540 EAS 
(1) PAYMENT AUTHORIZED.—Section 1475(a)(3) 
of title 10, United States Code, is amended by insert-
ing before the semicolon the following: ‘‘or while stay-
ing at the Reserve’s residence, when so authorized by 
proper authority, during the period of such inactive 
duty training or between successive days of inactive 
duty training’’. 
(2) TREATMENT
AS
DEATH
DURING
INACTIVE 
DUTY
TRAINING.—Section 1478(a) of such title is 
amended— 
(A) 
by 
redesignating 
paragraphs 
(4) 
through (8) as paragraphs (5) through (9), re-
spectively; and 
(B) by inserting after paragraph (3) the fol-
lowing new paragraph (4): 
‘‘(4) A person covered by subsection (a)(3) of sec-
tion 1475 of this title who died while on authorized 
stay at the person’s residence during a period of inac-
tive duty training or between successive days of inac-
tive duty training is considered to have been on inac-
tive duty training on the date of his death.’’. 
(b) RECOVERY, CARE, AND DISPOSITION OF REMAINS 
AND RELATED BENEFITS.—Section 1481(a)(2) of such title 
is amended—
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† HR 1540 EAS 
(1) by redesignating subparagraph (E) and (F) 
as subparagraphs (F) and (G), respectively; and 
(2) by inserting after subparagraph (D) the fol-
lowing new subparagraph (E): 
‘‘(E) staying at the member’s residence, 
when so authorized by proper authority, during 
a period of inactive duty training or between 
successive days of inactive duty training;’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on January 1, 2010, and shall apply 
with respect to deaths that occur on or after that date. 
SEC. 635. REPEAL OF REQUIREMENT OF REDUCTION OF 
SURVIVOR BENEFITS PLAN SURVIVOR ANNU-
ITIES BY DEPENDENCY AND INDEMNITY COM-
PENSATION. 
(a) REPEAL.— 
(1) IN GENERAL.—Subchapter II of chapter 73 of 
title 10, United States Code, is amended as follows: 
(A) In section 1450, by striking subsection 
(c). 
(B) In section 1451(c)— 
(i) by striking paragraph (2); and 
(ii) by redesignating paragraphs (3) 
and (4) as paragraphs (2) and (3), respec-
tively.
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† HR 1540 EAS 
(2) 
CONFORMING
AMENDMENTS.—Such 
sub-
chapter is further amended as follows: 
(A) In section 1450— 
(i) by striking subsection (e); 
(ii) by striking subsection (k); and 
(iii) by striking subsection (m). 
(B) In section 1451(g)(1), by striking sub-
paragraph (C). 
(C) In section 1452— 
(i) in subsection (f)(2), by striking 
‘‘does not apply—’’ and all that follows and 
inserting ‘‘does not apply in the case of a 
deduction made through administrative 
error.’’; and 
(ii) by striking subsection (g). 
(D) In section 1455(c), by striking ‘‘, 
1450(k)(2),’’. 
(b) PROHIBITION ON RETROACTIVE BENEFITS.—No 
benefits may be paid to any person for any period before 
the effective date provided under subsection (f) by reason 
of the amendments made by subsection (a). 
(c) PROHIBITION
ON
RECOUPMENT
OF
CERTAIN 
AMOUNTS PREVIOUSLY REFUNDED TO SBP RECIPIENTS.— 
A surviving spouse who is or has been in receipt of an an-
nuity under the Survivor Benefit Plan under subchapter
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† HR 1540 EAS 
II of chapter 73 of title 10, United States Code, that is in 
effect before the effective date provided under subsection (f) 
and that is adjusted by reason of the amendments made 
by subsection (a) and who has received a refund of retired 
pay under section 1450(e) of title 10, United States Code, 
shall not be required to repay such refund to the United 
States. 
(d) REPEAL OF AUTHORITY FOR OPTIONAL ANNUITY 
FOR DEPENDENT CHILDREN.—Section 1448(d) of such title 
is amended— 
(1) in paragraph (1), by striking ‘‘Except as 
provided in paragraph (2)(B), the Secretary con-
cerned’’ and inserting ‘‘The Secretary concerned’’; 
and 
(2) in paragraph (2)— 
(A) by striking ‘‘DEPENDENT CHILDREN.— 
’’ and all that follows through ‘‘In the case of a 
member described in paragraph (1),’’ and insert-
ing ‘‘DEPENDENT CHILDREN ANNUITY WHEN NO 
ELIGIBLE SURVIVING SPOUSE.—In the case of a 
member described in paragraph (1),’’; and 
(B) by striking subparagraph (B). 
(e) RESTORATION OF ELIGIBILITY FOR PREVIOUSLY 
ELIGIBLE SPOUSES.—The Secretary of the military depart-
ment concerned shall restore annuity eligibility to any eli-
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† HR 1540 EAS 
gible surviving spouse who, in consultation with the Sec-
retary, previously elected to transfer payment of such annu-
ity to a surviving child or children under the provisions 
of section 1448(d)(2)(B) of title 10, United States Code, as 
in effect on the day before the effective date provided under 
subsection (f). Such eligibility shall be restored whether or 
not payment to such child or children subsequently was ter-
minated due to loss of dependent status or death. For the 
purposes of this subsection, an eligible spouse includes a 
spouse who was previously eligible for payment of such an-
nuity and is not remarried, or remarried after having at-
tained age 55, or whose second or subsequent marriage has 
been terminated by death, divorce or annulment. 
(f) EFFECTIVE DATE.—The sections and the amend-
ments made by this section shall take effect on the later of— 
(1) the first day of the first month that begins 
after the date of the enactment of this Act; or 
(2) the first day of the fiscal year that begins in 
the calendar year in which this Act is enacted.
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† HR 1540 EAS 
(1) by redesignating subsections (c), (d), (e), and 
(f) as subsections (d), (e), (f), and (g), respectively; 
and 
(2) by inserting after subsection (b) the following 
new subsection (c): 
‘‘(c) COST-OF-LIVING ADJUSTMENT IN ENROLLMENT 
FEE.—(1) Whenever after September 30, 2012, the Sec-
retary of Defense increases the retired pay of members and 
former members of the armed forces pursuant to section 
1401a of this title, the Secretary shall increase the amount 
of the fee payable for enrollment in TRICARE Prime by 
an amount equal to the percentage of such fee payable on 
the day before the date of the increase of such fee that is 
equal to the percentage increase in such retired pay. In de-
termining the amount of the increase in such retired pay 
for purposes of this subsection, the Secretary shall use the 
amount computed pursuant to section 1401a(b)(2) of this 
title. The increase in such fee shall be effective as of January 
1 following the date of the increase in such retired pay. 
‘‘(2) The Secretary shall publish in the Federal Reg-
ister the amount of the fee payable for enrollment in 
TRICARE Prime whenever increased pursuant to this sub-
section.’’. 
(b) CONFORMING AND CLERICAL AMENDMENTS.—
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† HR 1540 EAS 
(1) HEADING AMENDMENT.—The heading of such 
section is amended to read as follows: 
‘‘§ 1097a. TRICARE Prime: automatic enrollment; en-
rollment fee; payment options’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 55 of such title is 
amended by striking the item relating to section 
1097a and inserting the following new item: 
‘‘1097a. TRICARE Prime: automatic enrollment; enrollment fee; payment op-
tions.’’. 
SEC. 702. MAINTENANCE OF THE ADEQUACY OF PROVIDER 
NETWORKS UNDER THE TRICARE PROGRAM. 
Section 1097b(a) of title 10, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(3) In establishing rates and procedures for reim-
bursement of providers and other administrative require-
ments, including those contained in provider network agree-
ments, the Secretary shall to the extent practicable main-
tain adequate networks of providers, including institu-
tional, professional, and pharmacy. Network providers 
under such provider network agreements are not considered 
subcontractors for purposes of the Federal Acquisition Reg-
ulation or any other law.’’.
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† HR 1540 EAS 
SEC. 703. TRANSITION ENROLLMENT OF UNIFORMED SERV-
ICES FAMILY HEALTH PLAN MEDICARE-ELIGI-
BLE RETIREES TO TRICARE FOR LIFE. 
Section 724(e) of the National Defense Authorization 
Act for Fiscal Year 1997 (10 U.S.C. 1073 note) is amend-
ed— 
(1) by striking ‘‘If a covered beneficiary’’ and in-
serting ‘‘(1) Except as provided in paragraph (2), if 
a covered beneficiary’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) After September 30, 2011, a covered beneficiary 
(other than a beneficiary under section 1079 of title 10, 
United States Code) who is also entitled to hospital insur-
ance benefits under part A of title XVIII of the Social Secu-
rity Act due to age may not enroll in the managed care 
program of a designated provider unless the beneficiary was 
enrolled in that program on September 30, 2011.’’. 
SEC. 704. MODIFICATION OF AUTHORITIES ON SURVEYS ON 
CONTINUED VIABILITY OF TRICARE STAND-
ARD AND TRICARE EXTRA. 
(a) 
SCOPE
OF
CERTAIN
SURVEYS.—Subsection 
(a)(3)(A) of section 711 of the National Defense Authoriza-
tion Act for Fiscal Year 2008 (Public Law 110–181; 122 
Stat. 190; 10 U.S.C. 1073 note) by striking ‘‘2011’’ and 
inserting ‘‘2015’’.
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† HR 1540 EAS 
(b) FREQUENCY OF SUBMITTAL OF GAO REVIEWS.— 
Subsection (b)(2) of such section is amended by striking ‘‘bi- 
annual basis’’ and inserting ‘‘biennial basis’’. 
SEC. 705. EXTENSION OF TIME LIMIT FOR SUBMITTAL OF 
CLAIMS UNDER THE TRICARE PROGRAM FOR 
CARE 
PROVIDED 
OUTSIDE 
THE 
UNITED 
STATES. 
Section 1106(b) of title 10, United States Code, is 
amended by striking ‘‘not later than’’ and all that follows 
and inserting the following: ‘‘as follows: 
‘‘(1) In the case of services provided outside the 
United States, the Commonwealth of Puerto Rico, or 
the possessions of the United States, by not later than 
three years after the services are provided. 
‘‘(2) In the case of any other services, by not 
later than one year after the services are provided.’’. 
Subtitle B—Other Health Care 
Benefits 
SEC. 711. TRAVEL FOR ANESTHESIA SERVICES FOR CHILD-
BIRTH FOR COMMAND-SPONSORED DEPEND-
ENTS OF MEMBERS ASSIGNED TO REMOTE 
LOCATIONS 
OUTSIDE 
THE 
CONTINENTAL 
UNITED STATES. 
Section 1040(a) of title 10, United States Code, is 
amended—
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† HR 1540 EAS 
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(2)(A) For purposes of paragraph (1), required med-
ical attention of a dependent includes, in the case of a de-
pendent authorized to accompany a member at a location 
described in that paragraph, obstetrical anesthesia services 
for childbirth equivalent to the obstetrical anesthesia serv-
ices for childbirth available in a military treatment facility 
in the United States. 
‘‘(B) In the case of a dependent at a remote location 
outside the continental United States who elects services de-
scribed in subparagraph (A) and for whom air transpor-
tation would be needed to travel under paragraph (1) to 
the nearest appropriate medical facility in which adequate 
medical care is available, the Secretary may authorize the 
dependent to receive transportation under that paragraph 
to the continental United States and be treated at the mili-
tary treatment facility that can provide appropriate obstet-
rical services that is nearest to the closest port of entry into 
the continental United States from such remote location. 
‘‘(C) The second through sixth sentences of paragraph 
(1) shall apply to a dependent provided transportation by 
reason of this paragraph.
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† HR 1540 EAS 
‘‘(D) The total cost incurred by the United States for 
the provision of transportation and expenses (including per 
diem) with respect to a dependent by reason of this para-
graph may not exceed the cost the United States would oth-
erwise incur for the provision of transportation and ex-
penses with respect to that dependent under paragraph (1) 
if the transportation and expenses were provided to that 
dependent without regard to this paragraph. 
‘‘(E) The authority under this paragraph shall expire 
on September 30, 2016.’’. 
SEC. 712. TRANSITIONAL HEALTH BENEFITS FOR CERTAIN 
MEMBERS WITH EXTENSION OF ACTIVE DUTY 
FOLLOWING ACTIVE DUTY IN SUPPORT OF A 
CONTINGENCY OPERATION. 
Section 1145(a)(4) of title 10, United States Code, is 
amended by adding at the end the following new sentence: 
‘‘For purposes of the preceding sentence, in the case of a 
member on active duty as described in subparagraph (B), 
(C), or (D) of paragraph (2) who, without a break in serv-
ice, is extended on active duty for any reason, the 180-day 
period shall begin on the date on which the member is sepa-
rated from such extended active duty.’’.
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† HR 1540 EAS 
SEC. 713. CODIFICATION AND IMPROVEMENT OF PROCE-
DURES FOR MENTAL HEALTH EVALUATIONS 
FOR MEMBERS OF THE ARMED FORCES. 
(a) CODIFICATION
AND IMPROVEMENT
OF PROCE-
DURES.— 
(1) IN GENERAL.—Chapter 55 of title 10, United 
States Code, is amended by inserting after section 
1090 the following new section: 
‘‘§ 1090a. Commanding officer and supervisor refer-
rals of members for mental health evalua-
tions 
‘‘(a) REGULATIONS.—The Secretary of Defense shall 
prescribe and maintain regulations relating to com-
manding officer and supervisor referrals of members of the 
armed forces for mental health evaluations. The regulations 
shall incorporate the requirements set forth in subsections 
(b), (c), and (d) and such other matters as the Secretary 
considers appropriate. 
‘‘(b) REDUCTION OF PERCEIVED STIGMA.—The regula-
tions required by subsection (a) shall, to the greatest extent 
possible— 
‘‘(1) seek to eliminate perceived stigma associ-
ated with seeking and receiving mental health serv-
ices, promoting the use of mental health services on 
a basis comparable to the use of other medical and 
health services; and
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† HR 1540 EAS 
‘‘(2) clarify the appropriate action to be taken 
by commanders or supervisory personnel who, in good 
faith, believe that a subordinate may require a mental 
health evaluation. 
‘‘(c) PROCEDURES FOR INPATIENT EVALUATIONS.— 
The regulations required by subsection (a) shall provide 
that, when a commander or supervise determines that it 
is necessary to refer a member of the armed forces for a 
mental health evaluation— 
‘‘(1) the mental health evaluation shall only be 
conducted on an inpatient basis if and when such an 
evaluation cannot appropriately or reasonably be con-
ducted on an outpatient basis, in accordance with the 
least restrictive alternative principle; and 
‘‘(2) only a psychiatrist, or, in cases in which a 
psychiatrist is not available, another mental health 
professional or a physician, may admit the member 
pursuant to the referral for a mental health evalua-
tion to be conducted on an inpatient basis. 
‘‘(d) PROHIBITION ON USE OF REFERRALS FOR MEN-
TAL HEALTH EVALUATIONS TO RETALIATE AGAINST WHIS-
TLEBLOWERS.—(1) The regulations required by subsection 
(a) shall provide that no person may refer a member of 
the armed forces for a mental health evaluation as a re-
prisal for making or preparing a lawful communication of
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† HR 1540 EAS 
the type described in section 1034(c)(2) of this title, and 
applicable regulations. For purposes of this subsection, such 
communication also shall include a communication to any 
appropriate authority in the chain of command of the mem-
ber. 
‘‘(2) Such regulations shall provide that a referral for 
a mental health evaluation by a commander or supervisor, 
when taken as a reprisal for a communication referred to 
in paragraph (1), may be the basis for a proceeding under 
section 892 of this title (article 92 of the Uniform Code of 
Military Justice). Persons not subject to chapter 47 of this 
title (the Uniform Code of Military Justice) who fail to 
comply with the provisions of this section are subject to ad-
verse administrative action. 
‘‘(3)(A) No person may restrict a member of the armed 
forces in communicating with an Inspector General, attor-
ney, member of Congress, or others about the referral of a 
member of the armed forces for a mental health evaluation. 
‘‘(B) Subparagraph (A) does not apply to a commu-
nication that is unlawful. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘Inspector General’ means the fol-
lowing:
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‘‘(A) An Inspector General appointed under 
the Inspector General Act of 1978 (5 U.S.C. 
App.). 
‘‘(B) An officer of the armed forces assigned 
or detailed under regulations of the Secretary 
concerned to serve as an Inspector General at 
any command level in one of the armed forces. 
‘‘(2) The term ‘mental health professional’ means 
a psychiatrist or clinical psychologist, a person with 
a doctorate in clinical social work, or a psychiatric 
clinical nurse specialist. 
‘‘(3) The term ‘mental health evaluation’ means 
a psychiatric examination or evaluation, a psycho-
logical examination or evaluation, an examination 
for psychiatric or psychological fitness for duty, or 
any other means of assessing the state of mental 
health of a member of the armed forces. 
‘‘(4) The term ‘least restrictive alternative prin-
ciple’ means a principle under which a member of the 
armed forces committed for hospitalization and treat-
ment shall be placed in the most appropriate and 
therapeutic available setting— 
‘‘(A) that is no more restrictive than is con-
ducive to the most effective form of treatment; 
and
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‘‘(B) in which treatment is available and 
the risks of physical injury or property damage 
posed by such placement are warranted by the 
proposed plan of treatment.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 55 of such title is 
amended by inserting after the item relating to sec-
tion 1090 the following new item: 
‘‘1090a. Commanding officer and supervisor referrals of members for mental 
health evaluations.’’. 
(b) CONFORMING REPEAL.—Section 546 of the Na-
tional Defense Authorization Act for Fiscal Year 1993 (Pub-
lic Law 102–484; 106 Stat. 2416; 10 U.S.C. 1074 note) is 
repealed. 
Subtitle C—Health Care 
Administration 
SEC. 721. EXPANSION OF STATE LICENSURE EXCEPTIONS 
FOR CERTAIN MENTAL HEALTH-CARE PRO-
FESSIONALS. 
Section 1094(d) of title 10, United States Code, is 
amended— 
(1) in paragraph (1)— 
(A) by inserting ‘‘(A)’’ after ‘‘(1)’’; and 
(B) by adding at the end the following new 
subparagraph:
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‘‘(B) Notwithstanding any law regarding the licensure 
of health care providers, a health-care professional described 
in paragraph (4) may perform the duties relating to mental 
health care specified in the regulations under subparagraph 
(B) of that paragraph at any location in any State, the 
District of Columbia, or a Commonwealth, territory or pos-
session of the United States, regardless of where such health- 
care professional or the patient are located, so long as the 
practice is within the scope of the authorized Federal duties 
specified in that subparagraph.’’; 
(2) in paragraphs (2) and (3), by striking 
‘‘paragraph (1)’’ and inserting ‘‘paragraph (1)(A)’’; 
and 
(3) by adding at the end the following new para-
graph: 
‘‘(4) A health-care professional referred to in para-
graph (1)(B) is a member of the armed forces, civilian em-
ployee of the Department of Defense, personal services con-
tractor under section 1091 of this title, or other health-care 
professional credentialed and privileged at a Federal health 
care institution or location specially designated by the Sec-
retary for purposes of that paragraph who— 
‘‘(A) has a current license to practice medicine, 
osteopathic medicine, or another health profession; 
and
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‘‘(B) is performing such authorized duties relat-
ing to mental health care for the Department of De-
fense as the Secretary shall prescribe in regulations 
for purposes of this paragraph.’’. 
SEC. 722. CLARIFICATION ON CONFIDENTIALITY OF MED-
ICAL QUALITY ASSURANCE RECORDS. 
(a) IN GENERAL.—Section 1102(j) of title 10, United 
States Code, is amended— 
(1) in paragraph (1), by striking ‘‘any activity 
carried out’’ and inserting ‘‘any peer review activity 
carried out’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(4) The term ‘peer review’ means an assessment 
of professional performance by professionally-equiva-
lent health care providers.’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on January 1, 2012.
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TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS 
Subtitle A—Provisions Relating to 
Major Defense Acquisition Pro-
grams 
SEC. 801. WAIVER OF REQUIREMENTS RELATING TO NEW 
MILESTONE APPROVAL FOR CERTAIN MAJOR 
DEFENSE ACQUISITION PROGRAMS EXPERI-
ENCING CRITICAL COST GROWTH DUE TO 
CHANGE IN QUANTITY PURCHASED. 
Section 2433a(c) of title 10, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(3)(A) The requirements of subparagraphs (B) and 
(C) of paragraph (1) shall not apply to a program or sub-
program if— 
‘‘(i) the Milestone Decision Authority determines 
in writing, on the basis of a cost assessment and root 
cause analysis conducted pursuant to subsection (a), 
that— 
‘‘(I) but for a change in the quantity of 
items to be purchased under the program or sub-
program, the program acquisition unit cost or 
procurement unit cost for the program or subpro-
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gram would not have increased by a percentage 
equal to or greater than the cost growth thresh-
olds for the program or subprogram set forth in 
subparagraph (B); and 
‘‘(II) the change in quantity of items de-
scribed in subclause (I) was not made as a result 
of an increase in program cost, a delay in the 
program, or a problem meeting program require-
ments; 
‘‘(ii) the Secretary determines in writing that 
the cost to the Department of Defense of complying 
with such requirements is likely to exceed the benefits 
to the Department of complying with such require-
ments; and 
‘‘(iii) the Secretary submits to Congress, before 
the end of the 60-day period beginning on the day the 
Selected Acquisition Report containing the informa-
tion described in section 2433(g) of this title is re-
quired to be submitted under section 2432(f) of this 
title— 
‘‘(I) a copy of the written determination 
under clause (i) and an explanation of the basis 
for the determination; and
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‘‘(II) a copy of the written determination 
under clause (ii) and an explanation of the basis 
for the determination. 
‘‘(B) The cost growth thresholds specified in this sub-
paragraph are as follows: 
‘‘(i) In the case of a major defense acquisition 
program or designated major defense subprogram, a 
percentage increase in the program acquisition unit 
cost for the program or subprogram of— 
‘‘(I) 5 percent over the program acquisition 
unit cost for the program or subprogram as 
shown in the current Baseline Estimate for the 
program or subprogram; and 
‘‘(II) 10 percent over the program acquisi-
tion unit cost for the program or subprogram as 
shown in the original Baseline Estimate for the 
program or subprogram. 
‘‘(ii) In the case of a major defense acquisition 
program or designated major defense subprogram that 
is a procurement program, a percentage increase in 
the procurement unit cost for the program or subpro-
gram of— 
‘‘(I) 5 percent over the procurement unit 
cost for the program or subprogram as shown in
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the current Baseline Estimate for the program or 
subprogram; and 
‘‘(II) 10 percent over the procurement unit 
cost for the program or subprogram as shown in 
the original Baseline Estimate for the program 
or subprogram.’’. 
SEC. 802. MODIFICATION OF CERTAIN REQUIREMENTS OF 
THE WEAPON SYSTEMS ACQUISITION RE-
FORM ACT OF 2009. 
(a) REPEAL OF CERTIFICATION OF COMPLIANCE OF 
CERTAIN MAJOR DEFENSE ACQUISITION PROGRAMS WITH 
ACTIONS ON TREATMENT OF SYSTEMIC PROBLEMS BEFORE 
MILESTONE APPROVAL.—Subsection (c) of section 204 of 
the Weapon Systems Acquisition Reform Act of 2009 (Pub-
lic Law 111–23; 123 Stat. 1723; 10 U.S.C. 2366a note) is 
repealed. 
(b) WAIVER OF REQUIREMENT TO REVIEW PROGRAMS 
RECEIVING WAIVER OR CERTAIN CERTIFICATION REQUIRE-
MENTS.—Section 2366b(d) of title 10, United States Code, 
is amended by adding the following new paragraph: 
‘‘(3) The requirement in paragraph (2)(B) shall not 
apply to a program for which a certification was required 
pursuant to section 2433a(c) of this title if the milestone 
decision authority— 
‘‘(A) determines in writing that—
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‘‘(i) the program has reached a stage in the 
acquisition process at which it would not be 
practicable to meet the certification component 
that was waived; and 
‘‘(ii) the milestone decision authority has 
taken appropriate alternative actions to address 
the underlying purposes of such certification 
component; and 
‘‘(B) submits the written determination, and an 
explanation of the basis for the determination, to the 
congressional defense committees.’’. 
SEC. 803. ASSESSMENT, MANAGEMENT, AND CONTROL OF 
OPERATING 
AND 
SUPPORT 
COSTS 
FOR 
MAJOR WEAPON SYSTEMS. 
(a) GUIDANCE REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall issue guidance on actions to be taken to 
assess, manage, and control Department of Defense costs for 
the operation and support of major weapon systems. 
(b) ELEMENTS.—The guidance required by subsection 
(a) shall, at a minimum— 
(1) require the military departments to retain 
each estimate of operating and support costs that is 
developed at any time during the life cycle of a major
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weapon system, together with supporting documenta-
tion used to develop the estimate; 
(2) require the military departments to update 
estimates of operating and support costs periodically 
throughout the life cycle of a major weapon system, 
to determine whether preliminary information and 
assumptions remain relevant and accurate, and iden-
tify and record reasons for variances; 
(3) establish standard requirements for the collec-
tion of data on operating and support costs for major 
weapon systems and require the military departments 
to revise their Visibility and Management of Oper-
ating and Support Costs (VAMOSC) systems to en-
sure that they collect complete and accurate data in 
compliance with such requirements and make such 
data available in a timely manner; 
(4) establish standard requirements for the collec-
tion and reporting of data on operating and support 
costs for major weapon systems by contractors per-
forming weapon system sustainment functions in an 
appropriate format, and develop contract clauses to 
ensure that contractors comply with such require-
ments; 
(5) require the military departments—
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(A) to collect and retain data from oper-
ational and developmental testing and evalua-
tion on the reliability and maintainability of 
major weapon systems; and 
(B) to use such data to inform system de-
sign decisions, provide insight into sustainment 
costs, and inform estimates of operating and 
support costs for such systems; 
(6) require the military departments to ensure 
that sustainment factors are fully considered at key 
life cycle management decision points and that ap-
propriate measures are taken to reduce operating and 
support costs by influencing system design early in 
development, developing sound sustainment strategies, 
and addressing key drivers of costs; 
(7) require the military departments to conduct 
an independent logistics assessment of each major 
weapon system prior to key acquisition decision 
points (including milestone decisions) to identify fea-
tures that are likely to drive future operating and 
support costs, changes to system design that could re-
duce such costs, and effective strategies for managing 
such costs; 
(8) include—
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(A) reliability metrics for major weapon 
systems; and 
(B) requirements on the use of metrics 
under subparagraph (A) as triggers— 
(i) to conduct further investigation and 
analysis into drivers of those metrics; and 
(ii) to develop strategies for improving 
reliability, 
availability, 
and 
maintain-
ability of such systems at an affordable cost; 
and 
(9) require the military departments to conduct 
periodic reviews of operating and support costs of 
major weapon systems after such systems achieve ini-
tial operational capability to identify and address 
factors resulting in growth in operating and support 
costs and adapt support strategies to reduce such 
costs. 
(c) RETENTION OF DATA ON OPERATING AND SUPPORT 
COSTS.— 
(1) IN GENERAL.—The Director of Cost Assess-
ment and Program Evaluation shall be responsible 
for developing and maintaining a database on oper-
ating and support estimates, supporting documenta-
tion, and actual operating and support costs for 
major weapon systems.
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(2) SUPPORT.—The Secretary of Defense shall 
ensure that the Director, in carrying out such respon-
sibility— 
(A) promptly receives the results of all cost 
estimates and cost analyses conducted by the 
military departments with regard to operating 
and support costs of major weapon systems; 
(B) has timely access to any records and 
data of the military departments (including clas-
sified and proprietary information) that the Di-
rector considers necessary to carry out such re-
sponsibility; and 
(C) with the concurrence of the Under Sec-
retary of Defense for Acquisition, Technology, 
and Logistics, may direct the military depart-
ments to collect and retain information nec-
essary to support the database. 
(d) MAJOR WEAPON SYSTEM DEFINED.—In this sec-
tion, the term ‘‘major weapon system’’ has the meaning 
given that term in section 2379(f) of title 10, United States 
Code.
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SEC. 804. CLARIFICATION OF RESPONSIBILITY FOR COST 
ANALYSES AND TARGETS FOR CONTRACT NE-
GOTIATION PURPOSES. 
Section 2334(e) of title 10, United States Code, is 
amended— 
(1) by redesignating paragraphs (2), (3), and (4) 
as paragraphs (3), (4), and (5), respectively; 
(2) in paragraph (1)— 
(A) by striking ‘‘shall provide that—’’ and 
all that follows through ‘‘cost estimates’’ and in-
serting ‘‘shall provide that cost estimates’’; and 
(B) by striking ‘‘; and’’ and inserting a pe-
riod; 
(3) by redesignating subparagraph (B) as para-
graph (2) and indenting such paragraph two ems 
from the left margin; 
(4) in paragraph (2) as redesignated by para-
graph (3) of this section, by striking ‘‘cost analyses 
and targets’’ and inserting ‘‘The Under Secretary of 
Defense for Acquisition, Technology, and Logistics 
shall, in consultation with the Director of Cost Assess-
ment and Program Evaluation, develop policies, pro-
cedures, and guidance to ensure that cost analyses 
and targets’’; 
(5) in paragraph (3), as redesignated by para-
graph (1) of this section, by striking ‘‘issued by the
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† HR 1540 EAS 
Director of Cost Assessment and Program Evalua-
tion’’ and inserting ‘‘issued by the Under Secretary of 
Defense for Acquisition, Technology, and Logistics 
under paragraph (2)’’; and 
(6) in paragraph (5), as redesignated by para-
graph (1) of this section, by striking ‘‘paragraph (3)’’ 
and inserting ‘‘paragraph (4)’’. 
SEC. 805. MODIFICATION OF REQUIREMENTS FOR GUID-
ANCE ON MANAGEMENT OF MANUFACTURING 
RISK IN MAJOR DEFENSE ACQUISITION PRO-
GRAMS. 
Section 812(b) of the Ike Skelton National Defense Au-
thorization Act for Fiscal Year 2011 (Public Law 111–383; 
124 Stat. 4264; 10 U.S.C. 2430 note) is amended— 
(1) by striking ‘‘manufacturing readiness levels’’ 
each place it appears and inserting ‘‘manufacturing 
readiness levels or other manufacturing readiness 
standards’’; 
(2) by redesignating paragraphs (4) and (5) as 
paragraphs (5) and (6), respectively; and 
(3) by inserting after paragraph (3) the fol-
lowing new paragraph (4): 
‘‘(4) provide for the tailoring of manufacturing 
readiness levels or other manufacturing readiness
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† HR 1540 EAS 
standards to address the unique characteristics of spe-
cific industry sectors or weapon system portfolios;’’. 
SEC. 806. MANAGEMENT OF DEVELOPMENTAL TEST AND 
EVALUATION FOR MAJOR DEFENSE ACQUISI-
TION PROGRAMS. 
(a) CHIEF DEVELOPMENTAL TESTER.—Section 820(a) 
of the John Warner National Defense Authorization Act for 
Fiscal Year 2007 (Public Law 109–364; 120 Stat. 2330), 
as amended by section 805(c) of the National Defense Au-
thorization Act for Fiscal Year 2010 (Public Law 110–181; 
123 Stat. 2403), is further amended— 
(1) by redesignating paragraph (6) as para-
graph (7); and 
(2) by inserting after paragraph (5) the fol-
lowing new paragraph (6): 
‘‘(6) Chief developmental tester.’’. 
(b) RESPONSIBILITIES
OF CHIEF DEVELOPMENTAL 
TESTER AND LEAD DEVELOPMENTAL TEST AND EVALUA-
TION ORGANIZATION.—Section 139b 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 inserting after subsection (b) the following 
new subsection (c):
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‘‘(c) SUPPORT OF MDAPS BY CHIEF DEVELOPMENTAL 
TESTER AND LEAD DEVELOPMENTAL TEST AND EVALUA-
TION ORGANIZATION.— 
‘‘(1) SUPPORT.—The Secretary of Defense shall 
require that each major defense acquisition program 
be supported by— 
‘‘(A) a chief developmental tester; and 
‘‘(B) a governmental test agency, serving as 
lead developmental test and evaluation organiza-
tion for the program. 
‘‘(2) RESPONSIBILITIES
OF
CHIEF
DEVELOP-
MENTAL TESTER.—The chief developmental tester for 
a major defense acquisition program shall be respon-
sible for— 
‘‘(A) coordinating the planning, manage-
ment, and oversight of all developmental test and 
evaluation activities for the program; 
‘‘(B) maintaining insight into contractor 
activities under the program and overseeing the 
test and evaluation activities of other partici-
pating government activities under the program; 
and 
‘‘(C) helping program managers make tech-
nically informed, objective judgments about con-
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tractor developmental test and evaluation results 
under the program. 
‘‘(3) RESPONSIBILITIES
OF
LEAD
DEVELOP-
MENTAL TEST AND EVALUATION ORGANIZATION.—The 
lead developmental test and evaluation organization 
for a major defense acquisition program shall be re-
sponsible for— 
‘‘(A) providing technical expertise on test-
ing and evaluation issues to the chief develop-
mental tester for the program; 
‘‘(B) conducting developmental testing and 
evaluation activities for the program, as directed 
by the chief developmental tester; and 
‘‘(C) assisting the chief developmental tester 
in providing oversight of contractors under the 
program and in reaching technically informed, 
objective judgments about contractor develop-
mental test and evaluation results under the pro-
gram.’’. 
SEC. 807. ASSESSMENT OF RISK ASSOCIATED WITH DEVEL-
OPMENT OF MAJOR WEAPON SYSTEMS TO BE 
PROCURED UNDER COOPERATIVE PROJECTS 
WITH FRIENDLY FOREIGN COUNTRIES. 
(a) ASSESSMENT OF RISK REQUIRED.—
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(1) IN GENERAL.—Not later than two days after 
the President transmits a certification to Congress 
pursuant to section 27(f) of the Arms Export Control 
Act (22 U.S.C. 2767(f)) regarding a proposed cooper-
ative project agreement that is expected to result in 
the award of a Department of Defense contract for the 
engineering and manufacturing development of a 
major weapon system, the Secretary of Defense shall 
submit to the Chairmen of the Committees on Armed 
Services of the Senate and the House of Representa-
tives a report setting forth a risk assessment of the 
proposed cooperative project. 
(2) PREPARATION.—The Secretary shall prepare 
each report required by paragraph (1) in consultation 
with the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, the Assistant Secretary of 
Defense for Research and Engineering, and the Direc-
tor of Cost Assessment and Program Evaluation of 
the Department of Defense. 
(b) ELEMENTS.—The risk assessment on a cooperative 
project under subsection (a) shall include the following: 
(1) An assessment of the design, technical, manu-
facturing, and integration risks associated with devel-
oping and procuring the weapon system to be pro-
cured under the cooperative project.
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† HR 1540 EAS 
(2) A statement identifying any termination li-
ability that would be incurred under the development 
contract to be entered into under subsection (a)(1), 
and a statement of the extent to which such termi-
nation liability would not be fully funded by appro-
priations available or sought in the fiscal year in 
which the agreement for the cooperative project is 
signed on behalf of the United States. 
(3) An assessment of the advisability of incur-
ring any unfunded termination liability identified 
under paragraph (2) given the risks identified in the 
assessment under paragraph (1). 
(4) A listing of which, if any, requirements asso-
ciated with the oversight and management of a major 
defense acquisition program (as prescribed under De-
partment of Defense Instruction 5000.02 or related 
authorities) will be waived, or in any way modified, 
in carrying out the development contract to be entered 
into under (a)(1), and a full explanation why such 
requirements need to be waived or modified. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘engineering and manufacturing 
development’’ has the meaning given that term in De-
partment of Defense Instruction 5000.02.
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(2) The term ‘‘major weapon system’’ has the 
meaning given that term in section 2379(f) of title 10, 
United States Code. 
Subtitle B—Acquisition Policy and 
Management 
SEC. 821. INCLUSION OF DATA ON CONTRACTOR PERFORM-
ANCE IN PAST PERFORMANCE DATABASES 
FOR SOURCE SELECTION DECISIONS. 
(a) STRATEGY ON INCLUSION REQUIRED.—Not later 
than 180 days after the date of the enactment of this Act, 
the Under Secretary of Defense for Acquisition, Technology, 
and Logistics shall develop a strategy for ensuring that 
timely, accurate, and complete information on contractor 
performance is included in past performance databases used 
for making source selection decisions. 
(b) ELEMENTS.—The strategy required by subsection 
(a) shall, at a minimum— 
(1) establish standards for the timeliness and 
completeness of past performance submissions for pur-
poses of databases described in subsection (a); 
(2) assign responsibility and management ac-
countability for the completeness of past performance 
submissions for such purposes; and 
(3) ensure that past performance submissions for 
such purposes are consistent with award fee evalua-
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† HR 1540 EAS 
tions in cases where such evaluations have been con-
ducted. 
(c) CONTRACTOR COMMENTS.—Not later than 180 
days after the date of the enactment of this Act, the Under 
Secretary of Defense for Acquisition, Technology, and Lo-
gistics shall revise the Defense Supplement to the Federal 
Acquisition Regulation to require the following: 
(1) That agency evaluations of contractor past 
performance are included in the relevant past per-
formance database as soon as such evaluations are 
completed. 
(2) That affected contractors are notified in a 
timely manner when such agency evaluations are en-
tered into such database. 
(3) That such contractors are afforded a reason-
able opportunity to submit comments, rebutting state-
ments, or additional information pertaining to such 
agency evaluations for inclusion in such database. 
(d) COMPTROLLER GENERAL REPORT.—Not later than 
18 months after the date of the enactment of this Act, the 
Comptroller General of the United States shall submit to 
the congressional defense committees a report on the actions 
taken by the Under Secretary of Defense for Acquisition, 
Technology, and Logistics pursuant to this section, includ-
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ing an assessment of the extent to which such actions have 
achieved the objectives of this section. 
SEC. 822. IMPLEMENTATION OF RECOMMENDATIONS OF DE-
FENSE SCIENCE BOARD TASK FORCE ON 
SERVICE CONTRACTING. 
(a) PLAN FOR IMPLEMENTATION.—Not later than 180 
days after the date of the enactment of this Act, the Under 
Secretary of Defense for Acquisition, Technology, and Lo-
gistics shall, acting pursuant to the Under Secretary’s re-
sponsibility under section 2330 of title 10, United States 
Code, develop a plan for implementing the recommenda-
tions of the Defense Science Board Task Force on Improve-
ments to Service Contracting. 
(b) ELEMENTS.—The plan developed pursuant to sub-
section (a) shall include, to the extent determined appro-
priate by the Under Secretary for Acquisition, Technology, 
and Logistics, the following: 
(1) A meaningful taxonomy to track services, 
which can be built into the inventory of contract serv-
ices required by section 2330a(c) of title 10, United 
States Code. 
(2) Standards, definitions, and performance 
measures for each portfolio of contract services which 
can be used for the purposes of performance assess-
ments conducted pursuant to section 2548 of title 10,
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United States Code, and independent management re-
views conducted pursuant to section 808 of the Na-
tional Defense Authorization Act for Fiscal Year 2008 
(Public Law 110–181; 122 Stat. 215; 10 U.S.C. 2330 
note). 
(3) Meaningful incentives to service contractors 
for high performance at low cost, consistent with the 
objectives of the Better Buying Power Initiative estab-
lished by the Under Secretary. 
(4) Improved means of communication between 
the Government and the services contracting industry 
in the process of developing requirements for services 
contracts. 
(5) Clear guidance for defense acquisition per-
sonnel on the use of appropriate contract types for 
particular categories of services contracts. 
(6) Formal certification and training require-
ments for services acquisition personnel, consistent 
with the requirements of sections 1723 and 1724 of 
title 10, United States Code. 
(7) Appropriate emphasis on the recruiting and 
training of services acquisition personnel, consistent 
with the strategic workforce plan developed pursuant 
to section 115b of title 10, United States Code, and 
the funds available through the Department of Defense
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Acquisition Workforce Development Fund established 
pursuant to section 1705 of title 10, United States 
Code. 
(8) Policies and guidance on career development 
for services acquisition personnel, consistent with the 
requirements of sections 1722a and 1722b of title 10, 
United States Code. 
(9) Actions to ensure that the military depart-
ments dedicate portfolio-specific commodity managers 
to coordinate the procurement of key categories of con-
tract services, as required by section 2330(b)(3)(C) of 
title 10, United States Code. 
(10) Actions to ensure that the Department of 
Defense conducts realistic exercises and training that 
account for services contracting during contingency 
operations, as required by section 2333(e) of title 10, 
United States Code. 
(c) COMPTROLLER GENERAL REPORT.—Not later than 
18 months after the date of the enactment of this Act, the 
Comptroller General of the United States shall submit to 
the congressional defense committees a report on the fol-
lowing: 
(1) The actions taken by the Under Secretary of 
Defense for Acquisition, Technology, and Logistics to 
carry out the requirements of this section.
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(2) The actions taken by the Under Secretary to 
carry out the requirements of section 2330 of title 10, 
United States Code. 
(3) The actions taken by the military depart-
ments to carry out the requirements of section 2330 
of title 10, United States Code. 
(4) The extent to which the actions described in 
paragraphs (1), (2), and (3) have resulted in the im-
proved acquisition and management of contract serv-
ices. 
SEC. 823. TEMPORARY LIMITATION ON AGGREGATE AN-
NUAL AMOUNT AVAILABLE FOR CONTRACT 
SERVICES. 
(a) LIMITATION.—Except as provided in subsection 
(b), the total amount obligated by the Department of De-
fense for contract services in fiscal year 2012 or 2013 may 
not exceed the total amount requested for the Department 
for contract services in the budget of the President for fiscal 
year 2010 (as submitted to Congress pursuant to section 
1105(b) of title 31, United States Code) adjusted for net 
transfers from funding for overseas contingency operations. 
(b) EXCEPTION.—Notwithstanding the limitation in 
subsection (a), the total amount obligated by the Depart-
ment for contract services in fiscal year 2012 or 2013 may 
exceed the amount otherwise provided pursuant to sub-
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section (a) by an amount elected by the Secretary that is 
not greater than the cost of any increase in such fiscal year 
in the number of civilian billets at the Department that 
has been approved by the Secretary over the number of such 
billets at the Department in fiscal year 2010. 
(c) GUIDANCE.—Not later than 60 days after the date 
of the enactment of this Act, the Secretary shall issue guid-
ance to the military departments and the Defense Agencies 
on implementation of this section during fiscal years 2012 
and 2013. The guidance shall, at a minimum— 
(1) establish a negotiation objective that labor 
rates and overhead rates in any contract or task order 
for contract services with an estimated value in excess 
of $10,000,000 awarded to a contractor in fiscal year 
2012 or 2013 shall not exceed labor rates and over-
head rates paid to the contractor for contract services 
in fiscal year 2010; 
(2) require the Secretaries of the military de-
partments and the heads of the Defense Agencies to 
approve in writing any contract or task order for 
contract services with an estimated value in excess of 
$10,000,000 awarded to a contractor in fiscal year 
2012 or 2013 that provides for continuing services at 
an annual cost that exceeds the annual cost paid by
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the military department or Defense Agency concerned 
for the same or similar services in fiscal year 2010; 
(3) require the Secretaries of the military de-
partments and the heads of the Defense Agencies to 
eliminate any contractor positions identified by the 
military department or Defense Agency concerned as 
being responsible for the performance of inherently 
governmental functions; 
(4) require the Secretaries of the military de-
partments and the heads of the Defense Agencies to re-
duce by 10 percent per fiscal year in each of fiscal 
years 2012 and 2013 the funding of the military de-
partment or Defense Agency concerned for— 
(A) staff augmentation contracts; and 
(B) contracts for the performance of func-
tions closely associated with inherently govern-
mental functions; and 
(5) assign responsibility to the management offi-
cials designated pursuant to section 2330 of title 10, 
United States Code, and section 812(b) of the Na-
tional Defense Authorization Act for Fiscal Year 2006 
(Public Law 109–163; 119 Stat. 3378; 10 U.S.C. 
2330 note) to provide oversight and ensure the imple-
mentation of the requirements of this section during 
fiscal years 2012 and 2013.
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(d) DEFINITIONS.—In this section: 
(1) The term ‘‘contract services’’ has the meaning 
given that term in section 235 of title 10, United 
States Code, except that the term does not include 
services that are funded out of amounts available for 
overseas contingency operations. 
(2) The term ‘‘function closely associated with 
inherently governmental functions’’ has the meaning 
given that term in section 2383(b)(3) of title 10, 
United States Code. 
(3) The term ‘‘staff augmentation contracts’’ 
means contracts for personnel who are subject to the 
direction of a government official other than the con-
tracting officer for the contract, including, but not 
limited to, contractor personnel who perform personal 
services contracts (as that term is defined in section 
2330a(g)(5) of title 10, United States Code). 
(4) The term ‘‘transfers from funding for over-
seas contingency operations’’ means amounts funded 
out of amounts available for overseas contingency op-
erations in fiscal year 2010 that are funded out of 
amounts other than amounts so available in fiscal 
year 2012 or 2013.
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SEC. 824. ANNUAL REPORT ON SINGLE-AWARD TASK AND 
DELIVERY ORDER CONTRACTS. 
(a) ANNUAL REPORT.— 
(1) IN
GENERAL.—Paragraph (2) of section 
817(d) of the Bob Stump National Defense Authoriza-
tion Act for Fiscal Year 2003 (Public Law 107–314; 
116 Stat. 2611; 10 U.S.C. 2306a note) is amended— 
(A) in subparagraph (A), by striking ‘‘and’’ 
at the end; 
(B) in subparagraph (B), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(C) with respect to any determination pursuant 
to section 2304a(d)(3)(D) of title 10, United States 
Code, that because of exceptional circumstances it is 
necessary in the public interest to award a task or de-
livery order contract with an estimated value in ex-
cess of $100,000,000 to a single source, an expla-
nation of the basis for the determination.’’. 
(2) CONFORMING AMENDMENT.—The heading of 
such section is amended by striking ‘‘WITH PRICE OR 
VALUE GREATER THAN $15,000,000’’. 
(b) REPEAL OF CASE-BY-CASE REPORTING REQUIRE-
MENT.—Section 2304a(d)(3) of title 10, United States Code, 
is amended—
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(1) by striking subparagraph (B); 
(2) by striking ‘‘(A)’’; 
(3) by redesignating clauses (i), (ii), (iii), and 
(iv) as subparagraphs (A), (B), (C), and (D), respec-
tively, of paragraph (1); and 
(4) in subparagraph (B), as redesignated by 
paragraph (3), by redesignating subclauses (I) and 
(II) as clauses (i) and (ii), respectively. 
SEC. 825. INCORPORATION OF CORROSION PREVENTION 
AND CONTROL INTO REQUIREMENTS APPLI-
CABLE TO DEVELOPMENT AND ACQUISITION 
OF WEAPON SYSTEMS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Under Secretary of 
Defense for Acquisition, Technology, and Logistics, in con-
sultation with the Director of Corrosion Policy and Over-
sight, shall, for purposes of ensuring that corrosion preven-
tion and control are addressed early in the development and 
acquisition of weapon systems— 
(1) identify and disseminate throughout the De-
partment of Defense recommendations from the 2010 
Corrosion Evaluation of the F–22 Raptor and F–35 
Lightning II Joint Strike Fighter that are applicable 
Department-wide;
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(2) commence implementation of any modifica-
tions of policies and practices that the Under Sec-
retary considers appropriate in light of such rec-
ommendations to improve corrosion prevention and 
control in new weapon systems; and 
(3) establish a process for monitoring and assess-
ing the effectiveness of the actions taken by the De-
partment pursuant to paragraph (2) to improve cor-
rosion prevention and control in new weapon systems. 
(b) PLAN.—In carrying out subsection (a), the Under 
Secretary of Defense for Acquisition, Technology, and Lo-
gistics shall develop a plan to achieve, to the extent and 
in a manner the Under Secretary determines to be feasible 
and appropriate, the following: 
(1) Investment in research and development that 
increases the understanding of corrosion on materials 
and processes for weapon systems. 
(2) Development and dissemination of expertise 
on corrosion in the acquisition programs for weapon 
systems and in the processes for developing require-
ments for weapon systems. 
(3) Reestablishment of appropriate military 
specifications and standards regarding corrosion re-
sistance in weapon systems.
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(4) Establishment of new test protocols and 
methodologies with respect to corrosion in new mate-
rials and processes for weapon systems. 
(5) Development of contract language, metrics, 
and incentives to improve the emphasis on corrosion 
prevention and control and the effects of corrosion on 
life cycle costs in weapon systems. 
(6) Development of a corrosion-focused design de-
cision methodology to support acquisition programs 
for weapon systems when required to evaluate alter-
native designs and help quantify future operation and 
sustainment costs. 
(c) CORROSION CONTROL IN CERTAIN FIGHTER AIR-
CRAFT PROGRAMS.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Under Sec-
retary of Defense for Acquisition, Technology, and Lo-
gistics shall— 
(A) identify in the Corrosion Evaluation re-
ferred to in subsection (a) specific recommenda-
tions on corrosion prevention and control that 
are applicable to the F–22 Raptor aircraft and 
to the F–35 Lightning II Joint Strike Fighter 
aircraft;
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(B) commence implementation of appro-
priate actions to put the recommendations de-
scribed in subparagraph (A) into effect; and 
(C) establish and implement processes for 
monitoring and assessing the effectiveness of the 
actions put into effect under subparagraph (B). 
(2) ACTIONS ON F–22 RAPTOR AIRCRAFT.—The 
actions implemented under paragraph (1) with re-
spect to the F–22 Raptor aircraft shall include a plan 
and actions to manage cumulative corrosion damage 
to F–22 Raptor aircraft in order to mitigate long- 
term structural risk to such aircraft. 
(3) ACTIONS
ON
F–35
LIGHTNING
II
JOINT 
STRIKE
FIGHTER
AIRCRAFT.—The actions imple-
mented under paragraph (1) with respect to the F– 
35 Lightning II Joint Strike Fighter aircraft shall 
include actions as follows: 
(A) The updating of the F–35 Corrosion 
Prevention and Control Plan with lessons 
learned from corrosion prevention and control 
for the F–22 Raptor aircraft, guidelines for con-
ducting trade studies, and appropriate test and 
verification methods. 
(B) Planning for a full climatic test earlier 
in the acquisition schedule, and ensuring that—
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(i) such test robustly addresses the ef-
fects of severe wet weather, temperature ex-
tremes, and high humidity; and 
(ii) enclosed areas of the aircraft are 
opened and inspected for water or moisture 
intrusion. 
(C) Developing an appropriate corrosion 
risk mitigation follow-on plan, including the 
management of the corrosion risk of parts quali-
fied by similarity. 
(D) Expanding the involvement of the 
Naval Air Systems Command (NAVAIR) corro-
sion testing capability and the Air Force Reserve 
Laboratory (AFRL) low observable testing capa-
bility as a means to independently test and as-
sess materials and components. 
(E) Reconsidering the selection of materials 
and coating for corrosion risks. 
(F) Specifying responsibility for manage-
ment of the Autonomic Logistics Information 
System (ALIS) link with the Aircraft Structural 
Integrity Program (ASIP). 
(G) Ensuring that the officials covered by 
subparagraph (F) are involved in the develop-
ment of the Autonomic Logistics Information
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System and are capable of receiving and ana-
lyzing the information to support the Aircraft 
Structural Integrity Program sustainment activ-
ity. 
(d) CORROSION CERTIFICATION AND ASSESSMENT FOR 
MAJOR DEFENSE ACQUISITION PROGRAMS.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall revise Department of Defense Instruc-
tion 5000.02 to ensure that the Milestone Decision 
Authority for a major defense acquisition program is 
required to consider issues of corrosion and materials 
degradation for the purpose of any certification under 
sections 2366a and 2366b of title 10, United States 
Code. 
(2) TEST
AND
EVALUATION.—In carrying out 
section 2399 of title 10, United States Code, the Di-
rector of Operational Test and Evaluation shall— 
(A) consider corrosion, environmental sever-
ity, and duration in the adequacy of operational 
test and evaluation plans; 
(B) include in the annual report under sub-
section (g) of that section an assessment of the 
adequacy of the consideration of material deg-
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radation and corrosion in each major defense ac-
quisition program. 
SEC. 826. PROHIBITION ON USE OF FUNDS FOR CERTAIN 
PROGRAMS. 
No amounts authorized to be appropriated by this Act 
may be obligated or expended to implement or carry out 
any program that creates a price evaluation adjustment as 
described in section 2323(e)(3) of title 10, United States 
Code, or any other authority, that is inconsistent with the 
holdings in the following: 
(1) Adarand Constructors, Inc. v. Pen˜a, 515 
U.S. 200 (1995). 
(2) Rothe Development Corporation. v. Depart-
ment of Defense, 545 F.3d 1023 (2008). 
SEC. 827. APPLICABILITY OF BUY AMERICAN ACT TO PRO-
CUREMENT OF PHOTOVOLTAIC DEVICES BY 
DEPARTMENT OF DEFENSE. 
(a) IN GENERAL.—Section 2534 of title 10, United 
States Code, is amended by adding at the end the following 
new subsection: 
‘‘(k) PROCUREMENT OF PHOTOVOLTAIC DEVICES.— 
‘‘(1) CONTRACT REQUIREMENT.—The Secretary 
of Defense shall ensure that each contract described in 
paragraph (2) awarded by the Department of Defense 
includes a provision requiring any photovoltaic de-
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vices installed pursuant to the contract, or pursuant 
to a subcontract under the contract, to comply with 
the provisions of chapter 83 of title 41 (commonly 
known as the ‘Buy American Act’), without regard to 
whether the contract results in ownership of the pho-
tovoltaic devices by the Department. 
‘‘(2) CONTRACTS DESCRIBED.—The contracts de-
scribed in this paragraph include energy savings per-
formance contracts, utility service contracts, power 
purchase agreements, land leases, and private housing 
contracts pursuant to which any photovoltaic devices 
are— 
‘‘(A) installed on property or in a facility 
owned by the Department of Defense; and 
‘‘(B) generate power consumed predomi-
nantly by the Department of Defense and count-
ed toward federal renewable energy purchase re-
quirements. 
‘‘(3) CONSISTENCY WITH INTERNATIONAL OBLI-
GATIONS.—Paragraph (1) shall be applied in a man-
ner consistent with the obligations of the United 
States under international agreements. 
‘‘(4) DEFINITION OF PHOTOVOLTAIC DEVICES.— 
In this subsection, the term ‘photovoltaic devices’
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means devices that convert light directly into elec-
tricity. 
‘‘(5) EFFECTIVE DATE.—This subsection applies 
to photovoltaic devices procured or installed on or 
after the date that is 30 days after the date of the en-
actment of the National Defense Authorization Act for 
Fiscal Year 2012 pursuant to contracts entered into 
or after such date of enactment.’’. 
(b) CONFORMING REPEAL.—Section 846 of the Ike 
Skelton National Defense Authorization Act for Fiscal Year 
2011 (10 U.S.C. 2534 note) is repealed. 
Subtitle C—Amendments Relating 
to General Contracting Authori-
ties, Procedures, and Limita-
tions 
SEC. 841. TREATMENT FOR TECHNICAL DATA PURPOSES OF 
INDEPENDENT 
RESEARCH 
AND 
DEVELOP-
MENT AND BID AND PROPOSAL COSTS. 
(a) TREATMENT.—Section 2320(a) of title 10, United 
States Code, is amended— 
(1) in paragraph (2)(E), by striking ‘‘the respec-
tive rights’’ and inserting ‘‘the Government may use, 
modify, release, reproduce, perform, display, or dis-
close the data pertaining to such item or process with-
in the Government without restriction, but may re-
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lease or disclose the data outside the Government only 
for Government purposes. The respective rights’’; 
(2) in paragraph (3), by striking ‘‘and shall 
specify that amounts spent for independent research 
and development and bid and proposal costs shall not 
be considered to be Federal funds for the purposes of 
paragraph (2)(B), but shall be considered to be Fed-
eral funds for the purposes of paragraph (2)(A)’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(4)(A) Except as provided in subparagraph (B), 
amounts spent for independent research and development 
and bid and proposal costs shall not be treated as Federal 
funds for the purposes of this section. 
‘‘(B) An item or process that is developed in whole or 
in part with amounts described in subparagraph (A) shall 
be treated as having been developed in part with Federal 
funds and in part at private expense in the following cir-
cumstances: 
‘‘(i) In the case of an item or process for which 
the total amount of costs referred to in subparagraph 
(A) allocable to contracts other than Federal contracts 
and any other contractor funds expended is less than 
10 percent of the total funds provided for the develop-
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ment of such item or process (including all sources of 
Federal funding). 
‘‘(ii) In the case an item or process that is inte-
grated into a major system for which the rights in 
technical data are otherwise described under para-
graph (2)(A) or (2)(E) and for which— 
‘‘(I) the total amount of such costs allocable 
to contracts other than Federal contracts and 
any other contractor funds expended is less than 
50 percent of the total funds provided for the de-
velopment of such item or process (including all 
sources of Federal funding); or 
‘‘(II) such item or process cannot be seg-
regated from other elements of the major system 
in a practicable manner in order to allow the 
system to be procured using competition.’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on January 7, 2011, imme-
diately after the enactment of section 824(b)(2) of the Ike 
Skelton National Defense Authorization Act for Fiscal Year 
2011 (Public Law 111–383; 124 Stat. 4269), to which such 
amendments relate.
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SEC. 842. LIMITATION ON DEFENSE CONTRACTOR COM-
PENSATION. 
Section 2324(e)(1)(P) of title 10, United States Code, 
is amended to read as follows: 
‘‘(P) Costs of compensation of contractor and 
subcontractor employees for a fiscal year, regardless of 
the contract funding source, to the extent that such 
compensation exceeds the annual amount paid to the 
President of the United States in accordance with sec-
tion 102 of title 3.’’. 
SEC. 843. COVERED CONTRACTS FOR PURPOSES OF RE-
QUIREMENTS ON CONTRACTOR BUSINESS 
SYSTEMS. 
Paragraph (3) of section 893(f) of the Ike Skelton Na-
tional Defense Authorization Act for Fiscal Year 2011 (Pub-
lic Law 111–383; 124 Stat. 4312; 10 U.S.C. 2302 note) is 
amended to read as follows: 
‘‘(3) The term ‘covered contract’ means a con-
tract that is subject to the cost accounting standards 
promulgated pursuant to section 1502 of title 41, 
United States Code, that could be affected if the data 
produced by a contractor business system has a sig-
nificant deficiency.’’.
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be fined not more than $15,000,000, impris-
oned not more than 30 years, or both. 
‘‘(ii) PERSON OTHER THAN AN INDI-
VIDUAL.—A person other than an indi-
vidual that commits an offense described in 
subparagraph (A) after the person is con-
victed of an offense under subparagraph (A) 
shall be fined not more than $30,000,000.’’; 
and 
(2) in subsection (e)— 
(A) in paragraph (1), by striking the period 
at the end and inserting a semicolon; 
(B) in paragraph (3), by striking ‘‘and’’ at 
the end; 
(C) in paragraph (4), by striking the period 
at the end and inserting a semicolon; and 
(D) by adding at the end the following: 
‘‘(5) the term ‘falsely identified as meeting mili-
tary standards’ relating to a good or service means 
there is a material misrepresentation that the good or 
service meets a standard, requirement, or specifica-
tion issued by the Department of Defense, an Armed 
Force, or a reserve component; and 
‘‘(6) the term ‘use in a military or national se-
curity application’ means the use of a good or service,