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cluding the extent to which veterans are afforded 
choices with respect to modes of treatment) 
through site visits to facilities of the Veterans 
Health Administration (including at least one 
site visit in each Veterans Integrated Service 
Network), evaluating studies of patient outcomes, 
and other appropriate means; 
(C) to assess whether, and the extent to 
which, veterans who served in the Armed Forces 
in Operation Enduring Freedom, Operation 
Iraqi Freedom, or Operation New Dawn are 
being offered a full range of necessary mental 
health services at Department health care facili-
ties, including early intervention services for 
hazardous drinking, relationship problems, and 
other behaviors that create a risk for the develop-
ment of a chronic mental health condition; 
(D) to conduct surveys or have access to De-
partment-administered surveys of— 
(i) providers of Department mental 
health services; 
(ii) veterans who served in the Armed 
Forces in Operation Enduring Freedom, 
Operation Iraqi Freedom, or Operation 
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New Dawn who are receiving mental health 
care furnished by the Department; and 
(iii) eligible veterans who served in the 
Armed Forces in Operation Enduring Free-
dom, Operation Iraqi Freedom, or Oper-
ation New Dawn who are not using Depart-
ment health care services to assess those bar-
riers described in subparagraph (A); and 
(E) to provide to the Secretary, on the basis 
of its assessments as delineated in subparagraphs 
(A) through (C), specific, detailed recommenda-
tions— 
(i) for overcoming barriers, and im-
proving access, to timely, effective mental 
health care at Department health care fa-
cilities (or, where Department facilities can-
not provide such care, through contract ar-
rangements under existing law); and 
(ii) to improve the effectiveness and ef-
ficiency of mental health services furnished 
by the Secretary. 
(3) PARTICIPATION BY FORMER OFFICIALS AND 
EMPLOYEES
OF
VETERANS
HEALTH
ADMINISTRA-
TION.—The Secretary shall ensure that any contract 
entered into under paragraph (1) provides for inclu-
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sion on any subcommittee which participates in con-
ducting the assessments and formulating the rec-
ommendations provided for in paragraph (2) at least 
one former official of the Veterans Health Administra-
tion and at least two former employees of the Veterans 
Health Administration who were providers of mental 
health care. 
(4) PERIODIC REPORTS TO SECRETARY.—In en-
tering into the contract described in paragraph (1), 
the Secretary shall, with respect to paragraph (1)(A), 
include in such contract a provision for the submittal 
to the Secretary of periodic reports and provision of 
other consultation to the Secretary by the study com-
mittee to assist the Secretary in carrying out sub-
sections (a) and (b). 
(5) REPORTS TO CONGRESS.—Not later than 30 
days after receiving a report under paragraph (4), the 
Secretary shall submit to the Committee on Veterans’ 
Affairs of the Senate and the Committee on Veterans’ 
Affairs of the House of Representatives a report on 
the plans of the Secretary to implement such rec-
ommendations submitted to the Secretary by the 
study committee as the Secretary considers appro-
priate. Such report shall include a description of each 
recommendation submitted to the Secretary that the 
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Secretary does not plan to carry out and an expla-
nation of why the Secretary does not plan to carry 
out such recommendation. 
(d) PUBLICATION.— 
(1) IN
GENERAL.—The Secretary shall make 
available to the public on an Internet website of the 
Department the following: 
(A) The measures and guidelines developed 
and implemented under this section. 
(B) An assessment of the performance of the 
Department using such measures and guidelines. 
(2) QUARTERLY UPDATES.—The Secretary shall 
update the measures, guidelines, and assessment made 
available to the public under paragraph (1) not less 
frequently than quarterly. 
(e) SEMIANNUAL REPORTS.— 
(1) IN GENERAL.—Not later than June 30, 2013, 
and not less frequently than twice each year there-
after, the Secretary shall submit to the Committee on 
Veterans’ Affairs of the Senate and the Committee on 
Veterans’ Affairs of the House of Representatives a re-
port on the Secretary’s progress in developing and 
implementing the measures and guidelines required 
by this section. 
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(2) ELEMENTS.—Each report submitted under 
paragraph (1) shall include the following: 
(A) A description of the development and 
implementation of the measures required by sub-
section (a) and the guidelines required by sub-
section (b). 
(B) A description of the progress made by 
the Secretary in developing and implementing 
such measures and guidelines. 
(C) An assessment of the mental health care 
services furnished by the Department of Veterans 
Affairs, using the measures developed and imple-
mented under subsection (a). 
(D) An assessment of the effectiveness of the 
guidelines developed and implemented under sub-
section (b). 
(E) Such recommendations for legislative or 
administrative action as the Secretary may have 
to improve the effectiveness and efficiency of the 
mental health care services furnished under laws 
administered by the Secretary. 
(f) IMPLEMENTATION REPORT.— 
(1) IN GENERAL.—Not later than 30 days before 
the date on which the Secretary begins implementing 
the measures and guidelines required by this section, 
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the Secretary shall submit to the committees described 
in subsection (e)(1) a report on the Secretary’s 
planned implementation of such measures and guide-
lines. 
(2) ELEMENTS.—The report required by para-
graph (1) shall include the following: 
(A) A detailed description of the measures 
and guidelines that the Secretary plans to imple-
ment under this section. 
(B) A description of the rationale for each 
measure and guideline the Secretary plans to 
implement under this section. 
(C) A discussion of each measure and guide-
line that the Secretary considered under this sec-
tion but chose not to implement. 
(D) The number of current vacancies in 
mental health care provider positions in the De-
partment. 
(E) An assessment of how many additional 
positions are needed to meet current or expected 
demand for mental health services furnished by 
the Department. 
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SEC. 760. EXPANSION OF VET CENTER PROGRAM TO IN-
CLUDE FURNISHING COUNSELING TO CER-
TAIN MEMBERS OF THE ARMED FORCES AND 
THEIR FAMILY MEMBERS. 
Section 1712A of title 38, United States Code, is 
amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by striking 
‘‘Upon the request’’ and all that follows 
through the period at the end and inserting 
the following: ‘‘Upon the request of any in-
dividual referred to in subparagraph (C), 
the Secretary shall furnish counseling, in-
cluding by furnishing counseling through a 
Vet Center, to the individual— 
‘‘(i) in the case of an individual referred to in 
clauses (i) through (iv) of subparagraph (C), to assist 
the individual in readjusting to civilian life; and 
‘‘(ii) in the case of an individual referred to in 
clause (v) of such subparagraph who is a family 
member of a veteran or member described in such 
clause— 
‘‘(I) in the case of a member who is de-
ployed in a theater of combat operations or an 
area at a time during which hostilities are oc-
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curring in that area, during such deployment to 
assist such individual in coping with such de-
ployment; and 
‘‘(II) in the case of a veteran or member 
who is readjusting to civilian life, to the degree 
that counseling furnished to such individual is 
found to aid in the readjustment of such veteran 
or member to civilian life.’’; and 
(ii) by striking subparagraph (B) and 
inserting the following new subparagraphs: 
‘‘(B) Counseling furnished to an individual under sub-
paragraph (A) may include a comprehensive individual as-
sessment of the individual’s psychological, social, and other 
characteristics to ascertain whether— 
‘‘(i) in the case of an individual referred to in 
clauses (i) through (iv) of subparagraph (C), such in-
dividual has difficulties associated with readjusting to 
civilian life; and 
‘‘(ii) in the case of an individual referred to in 
clause (v) of such subparagraph, such individual has 
difficulties associated with— 
‘‘(I) coping with the deployment of a mem-
ber described in subclause (I) of such clause; or 
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‘‘(II) readjustment to civilian life of a vet-
eran or member described in subclause (II) of 
such clause. 
‘‘(C) Subparagraph (A) applies to the following indi-
viduals: 
‘‘(i) Any individual who is a veteran or member 
of the Armed Forces, including a member of a reserve 
component of the Armed Forces, who served on active 
duty in a theater of combat operations or an area at 
a time during which hostilities occurred in that area. 
‘‘(ii) Any individual who is a veteran or member 
of the Armed Forces, including a member of a reserve 
component of the Armed Forces, who provided direct 
emergency medical or mental health care, or mor-
tuary services to the causalities of combat operations 
or hostilities, but who at the time was located outside 
the theater of combat operations or area of hostilities. 
‘‘(iii) Any individual who is a veteran or mem-
ber of the Armed Forces, including a member of a re-
serve component of the Armed Forces, who engaged in 
combat with an enemy of the United States or 
against an opposing military force in a theater of 
combat operations or an area at a time during which 
hostilities occurred in that area by remotely control-
ling an unmanned aerial vehicle, notwithstanding 
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† HR 4310 PP
whether the physical location of such veteran or mem-
ber during such combat was within such theater of 
combat operations or area. 
‘‘(iv) Any individual who received counseling 
under this section before the date of the enactment of 
the National Defense Authorization Act for Fiscal 
Year 2013. 
‘‘(v) Any individual who is a family member of 
any— 
‘‘(I) member of the Armed Forces, including 
a member of a reserve component of the Armed 
Forces, who is serving on active duty in a the-
ater of combat operations or in an area at a 
time during which hostilities are occurring in 
that area; or 
‘‘(II) veteran or member of the Armed 
Forces described in this subparagraph.’’; 
(B) by striking paragraph (2); 
(C) by redesignating paragraph (3) as 
paragraph (2); and 
(D) in paragraph (2), as redesignated by 
subparagraph (C)— 
(i) by striking ‘‘a veteran described in 
paragraph (1)(B)(iii)’’ and inserting ‘‘an 
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individual described in paragraph (1)(C)’’; 
and 
(ii) by striking ‘‘the veteran a prelimi-
nary general mental health assessment’’ and 
inserting ‘‘the individual a comprehensive 
individual assessment as described in para-
graph (1)(B)’’; 
(2) in subsection (b)(1), by striking ‘‘physician 
or psychologist’’ each place it appears and inserting 
‘‘licensed or certified mental health care provider’’; 
(3) in subsection (g)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) The term ‘Vet Center’ means a facility 
which is operated by the Department for the provision 
of services under this section and which is situated 
apart from Department general health care facili-
ties.’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(3) The term ‘family member’, with respect to 
a veteran or member of the Armed Forces, means an 
individual who— 
‘‘(A) is a member of the family of the vet-
eran or member, including— 
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‘‘(i) a parent; 
‘‘(ii) a spouse; 
‘‘(iii) a child; 
‘‘(iv) a step-family member; and 
‘‘(v) an extended family member; or 
‘‘(B) lives with the veteran or member but 
is not a member of the family of the veteran or 
member.’’; and 
(4) by redesignating subsection (g), as amended 
by paragraph (3), as subsection (h) and inserting 
after subsection (f) the following new subsection (g): 
‘‘(g) In carrying out this section and in furtherance 
of the Secretary’s responsibility to carry out outreach ac-
tivities under chapter 63 of this title, the Secretary may 
provide for and facilitate the participation of personnel em-
ployed by the Secretary to provide services under this sec-
tion in recreational programs that are— 
‘‘(1) designed to encourage the readjustment of 
veterans described in subsection (a)(1)(C); and 
‘‘(2) operated by any organization named in or 
approved under section 5902 of this title.’’. 
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SEC. 761. AUTHORITY FOR SECRETARY OF VETERANS AF-
FAIRS TO FURNISH MENTAL HEALTH CARE 
THROUGH FACILITIES OTHER THAN VET CEN-
TERS TO IMMEDIATE FAMILY MEMBERS OF 
MEMBERS OF THE ARMED FORCES DEPLOYED 
IN CONNECTION WITH A CONTINGENCY OP-
ERATION. 
(a) IN GENERAL.—Subject to the availability of appro-
priations and subsection (b), the Secretary of Veterans Af-
fairs, in addition to furnishing mental health care to family 
members of members of the Armed Forces through Vet Cen-
ters under section 1712A of title 38, United States Code, 
may furnish mental health care to immediate family mem-
bers of members of the Armed Forces while such members 
are deployed in connection with a contingency operation 
(as defined in section 101 of title 10, United States Code) 
through Department of Veterans Affairs medical facilities, 
telemental health modalities, and such community, non-
profit, private, and other third parties as the Secretary con-
siders appropriate. 
(b) LIMITATION.—The Secretary may furnish mental 
health care under subsection (a) only to the extent that re-
sources and facilities are available and only to the extent 
that the furnishing of such care does not interfere with the 
provision of care to veterans. 
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(c) NO ELIGIBILITY FOR TRAVEL REIMBURSEMENT.— 
A family member to whom the Secretary furnishes mental 
health care under subsection (a) shall not be eligible for 
payments or allowances under section 111 of title 38, 
United States Code, for such mental health care. 
(d) SUNSET.—The authority to furnish medical health 
care under subsection (a) shall expire on the date that is 
three years after the date of the enactment of this Act. 
(e) VET CENTER DEFINED.—In this section, the term 
‘‘Vet Center’’ has the meaning given the term in section 
1712A(g) of title 38, United States Code, as amended by 
section 760(3) of this Act. 
SEC. 762. ORGANIZATION OF THE READJUSTMENT COUN-
SELING SERVICE IN DEPARTMENT OF VET-
ERANS AFFAIRS. 
(a) IN GENERAL.—Subchapter I of chapter 73 of title 
38, United States Code, is amended by adding at the end 
the following new section: 
‘‘§ 7309. Readjustment Counseling Service 
‘‘(a) IN GENERAL.—There is in the Veterans Health 
Administration a Readjustment Counseling Service. The 
Readjustment Counseling Service shall provide readjust-
ment counseling and associated services to individuals in 
accordance with section 1712A of this title. 
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‘‘(b) CHIEF OFFICER.—(1) The head of the Readjust-
ment Counseling Service shall be the Chief Officer of the 
Readjustment Counseling Service (in this section the ‘Chief 
Officer’), who shall report directly to the Under Secretary 
for Health. 
‘‘(2) The Chief Officer shall be appointed by the Under 
Secretary for Health from among individuals who— 
‘‘(A)(i) are psychologists who hold a diploma as 
a doctorate in clinical or counseling psychology from 
an authority approved by the American Psychological 
Association and who have successfully undergone an 
internship approved by that association; 
‘‘(ii) are holders of a master in social work de-
gree; or 
‘‘(iii) hold such other advanced degrees related to 
mental health as the Secretary considers appropriate; 
‘‘(B) have at least three years of experience pro-
viding direct counseling services or outreach services 
in the Readjustment Counseling Service; 
‘‘(C) have at least three years of experience ad-
ministrating direct counseling services or outreach 
services in the Readjustment Counseling Service; 
‘‘(D) meet the quality standards and require-
ments of the Department; and 
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‘‘(E) are veterans who served in combat as mem-
bers of the Armed Forces. 
‘‘(c) STRUCTURE.—(1) The Readjustment Counseling 
Service is a distinct organizational element within Veterans 
Health Administration. 
‘‘(2) The Readjustment Counseling Service shall pro-
vide counseling and services as described in subsection (a). 
‘‘(3) The Chief Officer shall have direct authority over 
all Readjustment Counseling Service staff and assets, in-
cluding Vet Centers. 
‘‘(d) SOURCE OF FUNDS.—(1) Amounts for the activi-
ties of the Readjustment Counseling Service, including the 
operations of its Vet Centers, shall be derived from amounts 
appropriated for the Veterans Health Administration for 
medical care. 
‘‘(2) Amounts for activities of the Readjustment Coun-
seling Service, including the operations of its Vet Centers, 
shall not be allocated through the Veterans Equitable Re-
source Allocation system. 
‘‘(3) In each budget request submitted for the Depart-
ment of Veterans Affairs by the President to Congress under 
section 1105 of title 31, the budget request for the Readjust-
ment Counseling Service shall be listed separately. 
‘‘(e) ANNUAL REPORT.—(1) Not later than March 15 
of each year, the Secretary shall submit to the Committee 
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on Veterans’ Affairs of the Senate and the Committee on 
Veterans’ Affairs of the House of Representatives a report 
on the activities of the Readjustment Counseling Service 
during the preceding calendar year. 
‘‘(2) Each report submitted under paragraph (1) shall 
include, with respect to the period covered by the report, 
the following: 
‘‘(A) A summary of the activities of the Read-
justment Counseling Service, including Vet Centers. 
‘‘(B) A description of the workload and addi-
tional treatment capacity of the Vet Centers, includ-
ing, for each Vet Center, the ratio of the number of 
full-time equivalent employees at such Vet Center and 
the number of individuals who received services or as-
sistance at such Vet Center. 
‘‘(C) A detailed analysis of demand for and 
unmet need for readjustment counseling services and 
the Secretary’s plan for meeting such unmet need. 
‘‘(f) VET CENTER DEFINED.—In this section, the term 
‘Vet Center’ has the meaning given the term in section 
1712A(g) of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 73 of such title is amended by in-
serting after the item relating to section 7308 the following 
new item: 
‘‘7309. Readjustment Counseling Service.’’. 
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(c) CONFORMING AMENDMENTS.—Section 7305 of such 
title is amended— 
(1) by redesignating paragraph (7) as para-
graph (8); and 
(2) by inserting after paragraph (6) the fol-
lowing new paragraph (7): 
‘‘(7) A Readjustment Counseling Service.’’. 
SEC. 763. RECRUITING MENTAL HEALTH PROVIDERS FOR 
FURNISHING OF MENTAL HEALTH SERVICES 
ON BEHALF OF THE DEPARTMENT OF VET-
ERANS AFFAIRS WITHOUT COMPENSATION 
FROM THE DEPARTMENT. 
(a) IN GENERAL.—The Secretary of Veterans Affairs 
shall carry out a national program of outreach to societies, 
community organizations, nonprofit organizations, or gov-
ernment entities in order to recruit mental health providers, 
who meet the quality standards and requirements of the De-
partment of Veterans Affairs, to provide mental health serv-
ices for the Department on a part-time, without-compensa-
tion basis, under section 7405 of title 38, United States 
Code. 
(b) PARTNERING WITH AND DEVELOPING COMMUNITY 
ENTITIES AND NONPROFIT ORGANIZATIONS.—In carrying 
out the program required by subsection (a), the Secretary 
may partner with a community entity or nonprofit organi-
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zation or assist in the development of a community entity 
or nonprofit organization, including by entering into an 
agreement under section 8153 of title 38, United States 
Code, that provides strategic coordination of the societies, 
organizations, and government entities described in sub-
section (a) in order to maximize the availability and effi-
cient delivery of mental health services to veterans by such 
societies, organizations, and government entities. 
(c) MILITARY CULTURE TRAINING.—In carrying out 
the program required by subsection (a), the Secretary shall 
provide training to mental health providers to ensure that 
clinicians who provide mental health services as described 
in such subsection have sufficient understanding of 
military- and service-specific culture, combat experience, 
and other factors that are unique to the experience of vet-
erans who served in Operation Enduring Freedom, Oper-
ating Iraqi Freedom, or Operation New Dawn. 
SEC. 764. PEER SUPPORT. 
(a) PEER SUPPORT COUNSELING PROGRAM.— 
(1) PROGRAM REQUIRED.—Paragraph (1) of sec-
tion 1720F(j) of title 38, United States Code, is 
amended in the matter before subparagraph (A) by 
striking ‘‘may’’ and inserting ‘‘shall’’. 
(2) TRAINING.—Paragraph (2) of such section is 
amended by inserting after ‘‘peer counselors’’ the fol-
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lowing: ‘‘, including training carried out under the 
national program of training required by section 
304(c) of the Caregivers and Veterans Omnibus 
Health Services Act of 2010 (38 U.S.C. 1712A note; 
Public Law 111–163)’’. 
(3) AVAILABILITY OF PROGRAM AT DEPARTMENT 
MEDICAL
CENTERS.—Such section is amended by 
adding at the end the following new paragraph: 
‘‘(3) In addition to other locations the Secretary con-
siders appropriate, the Secretary shall carry out the peer 
support program under this subsection at each Department 
medical center.’’. 
(4) DEADLINE
FOR
COMMENCEMENT
OF
PRO-
GRAM.—The Secretary of Veterans Affairs shall ensure 
that the peer support counseling program required by 
section 1720F(j) of title 38, United States Code, as 
amended by this subsection, commences at each De-
partment of Veterans Affairs medical center not later 
than 270 days after the date of the enactment of this 
Act. 
(b) PEER OUTREACH AND PEER SUPPORT SERVICES 
AT DEPARTMENT MEDICAL CENTERS UNDER PROGRAM ON 
READJUSTMENT AND MENTAL HEALTH CARE SERVICES 
FOR VETERANS WHO SERVED IN OPERATION ENDURING 
FREEDOM AND OPERATION IRAQI FREEDOM.— 
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(1) IN GENERAL.—Section 304 of the Caregivers 
and Veterans Omnibus Health Services Act of 2010 
(38 U.S.C. 1712A note; Public Law 111–163) is 
amended— 
(A) by redesignating subsection (e) as sub-
section (f); and 
(B) by inserting after subsection (d) the fol-
lowing new subsection (e): 
‘‘(e) PROVISION OF PEER OUTREACH AND PEER SUP-
PORT SERVICES AT DEPARTMENT MEDICAL CENTERS.— 
The Secretary shall carry out the services required by sub-
paragraphs (A) and (B) of subsection (a)(1) at each De-
partment medical center.’’. 
(2) DEADLINE.—The Secretary of Veterans Af-
fairs shall commence carrying out the services re-
quired by subparagraphs (A) and (B) of subsection 
(a)(1) of such section at each Department of Veterans 
Affairs medical center, as required by subsection (e) 
of such section (as added by paragraph (1)), not later 
than 270 days after the date of the enactment of this 
Act. 
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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. LIMITATION ON USE OF COST-TYPE CONTRACTS. 
(a) PROHIBITION WITH RESPECT TO PRODUCTION OF 
MAJOR DEFENSE ACQUISITION PROGRAMS.—Not later than 
120 days after the date of the enactment of this Act, the 
Secretary of Defense shall modify the acquisition regula-
tions of the Department of Defense to prohibit the Depart-
ment from entering into cost-type contracts for the produc-
tion of major defense acquisition programs (MDAPs). 
(b) EXCEPTION.— 
(1) IN GENERAL.—The prohibition under sub-
section (a) shall not apply in the case of a particular 
cost-type contract if the Under Secretary of Defense 
for Acquisition, Technology, and Logistics, after con-
sultation with the Director of Cost Assessment and 
Program Evaluation— 
(A) certifies, in writing, with reasons, that 
a cost-type contract is needed to provide a re-
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quired capability in a timely and cost-effective 
manner; and 
(B) provides the certification to the congres-
sional defense committees not later than 30 busi-
ness days before issuing a solicitation for the 
contract. 
(2) SCOPE OF EXCEPTION.—In any case when 
the Under Secretary grants an exception under para-
graph (1), the Under Secretary shall take affirmative 
steps to make sure that the use of cost-type pricing is 
limited to only those line items or portions of the con-
tract where such pricing is needed to achieve the pur-
poses of the exception. A written certification under 
paragraph (1) shall be accompanied by an expla-
nation of the steps taken under this paragraph. 
(c) DEFINITIONS.—In this section: 
(1) MAJOR DEFENSE ACQUISITION PROGRAM.— 
The term ‘‘major defense acquisition program’’ has 
the meaning given the term in section 2430(a) of title 
10, United States Code. 
(2) PRODUCTION OF A MAJOR DEFENSE ACQUISI-
TION PROGRAM.—The term ‘‘production of a major 
defense acquisition program’’ means the production, 
either on a low-rate initial production or full-rate 
production basis, and deployment of a major system 
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that is intended to achieve an operational capability 
that satisfies mission needs, or any activity otherwise 
defined as Milestone C under Department of Defense 
Instruction 5000.02 or related authorities. 
(3) CONTRACT
FOR
THE
PRODUCTION
OF
A 
MAJOR DEFENSE ACQUISITION PROGRAM.—The term 
‘‘contract for the production of a major defense acqui-
sition program’’— 
(A) means a prime contract for the produc-
tion of a major defense acquisition program; and 
(B) does not include individual line items 
for segregable efforts or contracts for the incre-
mental improvement of systems that are already 
in production (other than contracts for major 
upgrades that are themselves major defense ac-
quisition programs). 
(d) APPLICABILITY.—The requirements of this section 
shall apply to contracts for the production of major defense 
acquisition programs entered into on or after October 1, 
2014. 
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SEC. 802. ACQUISITION STRATEGIES FOR MAJOR SUB-
SYSTEMS AND SUBASSEMBLIES ON MAJOR 
DEFENSE ACQUISITION PROGRAMS. 
(a) IN GENERAL.—The Secretary of Defense shall en-
sure that the acquisition strategy for each major defense ac-
quisition program— 
(1) provides, where appropriate, for breaking out 
a major subsystem or subassembly, conducting a sepa-
rate competition or negotiating a separate price for 
the subsystem or subassembly, and providing the sub-
system or subassembly to the prime contractor as gov-
ernment-furnished equipment; and 
(2) in any case where it is not practical or ap-
propriate to break out a major subsystem or sub-
assembly and provide it to the prime contractor as 
government-furnished equipment, includes measures 
to prevent excessive pass-through charges by the prime 
contractor. 
(b) DEFINITIONS.—In this section: 
(1) The term ‘‘excessive pass-through charges’’ 
means pass-through charges that are not reasonable in 
relation to the cost of direct labor provided by em-
ployees of the contractor, any other costs directly at-
tributable to the management of the subcontract by 
employees of the contractor, and the level of risk and 
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responsibility, if any, assumed by the prime con-
tractor for the performance of the subcontract. 
(2) The term ‘‘major defense acquisition pro-
gram’’ has the meaning given the term in section 
2430(a) of title 10, United States Code. 
(3) The term ‘‘pass-through charges’’ means 
prime contractor charges for overhead (including gen-
eral and administrative costs) or profit on a sub-
system or subassembly that is produced by an entity 
or entities other than the prime contractor. 
(c) CONFORMING AMENDMENTS.—Section 202(c) of the 
Weapon Systems Acquisition Reform Act of 2009 (Public 
Law 111–23; 123 Stat. 1720; 10 U.S.C. 2430 note) is 
amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘fair and objective ‘make-buy’ decisions by 
prime contractors’’ and inserting ‘‘competition or the 
option of competition at the subcontract level’’; 
(2) by redesignating paragraphs (1), (2), and (3) 
as paragraphs (2), (3), and (4), respectively; and 
(3) by inserting before paragraph (2), as redesig-
nated by paragraph (2) of this subsection, the fol-
lowing new paragraph (1): 
‘‘(1) where appropriate, breaking out a major 
subsystem, conducting a separate competition for the 
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subsystem, and providing the subsystem to the prime 
contractor as government-furnished equipment;’’. 
SEC. 803. MANAGEMENT STRUCTURE FOR DEVELOPMENTAL 
TEST AND EVALUATION. 
(a) DUTIES OF DASD FOR DEVELOPMENTAL TEST 
AND EVALUATION.—Subsection (a)(5) of section 139b of 
title 10, United States Code is amended— 
(1) in subparagraph (A)(i), by striking ‘‘in the 
Department of Defense’’ and inserting ‘‘of the mili-
tary departments and other elements of the Depart-
ment of Defense’’; and 
(2) in subparagraph (C), by striking ‘‘programs’’ 
and inserting ‘‘programs (including the activities of 
chief developmental testers and lead developmental 
test evaluation organizations designated in accord-
ance with subsection (c))’’. 
(b) DUTIES OF CHIEF DEVELOPMENTAL TESTER AND 
LEAD DEVELOPMENTAL TEST AND EVALUATION ORGANIZA-
TION.—Subsection (c) of such section is amended— 
(1) in paragraph (2), by striking ‘‘shall be re-
sponsible for’’ and inserting ‘‘, consistent with policies 
and guidance issued pursuant to subsection (a)(5)(A), 
shall be responsible for’’; 
(2) in paragraph (3), by striking ‘‘shall be re-
sponsible for’’ and inserting ‘‘, consistent with policies 
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and guidance issued pursuant to subsection (a)(5)(A), 
shall be responsible for’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(4) TRANSMITTAL OF RECORDS AND DATA.— 
The chief developmental tester and the lead develop-
mental test and evaluation organization for a major 
defense acquisition program shall promptly transmit 
to the Deputy Assistant Secretary for Developmental 
Test and Evaluation any records or data relating to 
the program that are requested by the Deputy Assist-
ant Secretary, as provided in subsection (a)(6).’’. 
SEC. 804. ASSESSMENTS OF POTENTIAL TERMINATION LI-
ABILITY OF CONTRACTS FOR THE DEVELOP-
MENT OR PRODUCTION OF MAJOR DEFENSE 
ACQUISITION PROGRAMS. 
(a) REPORT ON ASSESSMENT REQUIRED.—Not later 
than 30 days before entering into a covered contract, the 
Under Secretary of Defense for Acquisition, Technology, 
and Logistics shall submit to the congressional defense com-
mittees a report on the potential termination liability of 
the Department of Defense under the contract, including— 
(1) an estimate of the maximum potential termi-
nation liability certification for the contract; and 
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(2) an assessment how such termination liability 
is likely to increase or decrease over the period of per-
formance of the contract. 
(b) COVERED CONTRACTS.—For purposes of this sec-
tion, a covered contract is a contract for the development 
or production of a major defense acquisition program for 
which the Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics is the Milestone Decision Authority 
if the contract has a potential termination liability of the 
Department of Defense that could reasonably be expected 
to exceed $100,000,000. 
(c) MAJOR DEFENSE ACQUISITION PROGRAM DE-
FINED.—In this section, the term ‘‘major defense acquisi-
tion program’’ has the meaning given that term in section 
2430 of title 10, United States Code. 
SEC. 805. TECHNICAL CHANGE REGARDING PROGRAMS EX-
PERIENCING CRITICAL COST GROWTH DUE 
TO CHANGE IN QUANTITY PURCHASED. 
Section 2433a(c)(3)(A) of title 10, United States Code, 
is amended by striking ‘‘subparagraphs (B) and (C)’’ and 
inserting ‘‘subparagraphs (B), (C), and (E)’’. 
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SEC. 806. REPEAL OF REQUIREMENT TO REVIEW ONGOING 
PROGRAMS INITIATED BEFORE ENACTMENT 
OF MILESTONE B CERTIFICATION AND AP-
PROVAL PROCESS. 
Subsection (b) of section 205 of the Weapon Systems 
Acquisition Reform Act of 2009 (Public Law 111–23; 123 
Stat. 1725; 10 U.S.C. 2366b note) is repealed. 
Subtitle B—Acquisition Policy and 
Management 
SEC. 821. ONE-YEAR EXTENSION OF TEMPORARY LIMITA-
TION 
ON 
AGGREGATE 
ANNUAL 
AMOUNT 
AVAILABLE FOR CONTRACT SERVICES. 
Section 808 of the National Defense Authorization Act 
for Fiscal Year 2012 (Public Law 112–81; 125 Stat. 1489) 
is amended— 
(1) by striking ‘‘fiscal year 2012 or 2103’’ each 
place it appears and inserting ‘‘fiscal year 2012, 
2013, or 2014’’; and 
(2) by striking ‘‘fiscal years 2012 and 2013’’ 
each place it appears and inserting ‘‘fiscal years 
2012, 2103, and 2014’’. 
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SEC. 822. PROHIBITION OF EXCESSIVE PASS-THROUGH 
CONTRACTS AND CHARGES IN THE ACQUISI-
TION OF SERVICES. 
(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of this Act, the Federal Acquisition 
Regulation shall be revised to— 
(1) prohibit the award of a covered contract or 
task order unless the contractor agrees that at least 50 
percent of the direct labor cost of services to be per-
formed under the contract or task order will be ex-
pended for employees of the contractor or of a subcon-
tractor that is specifically identified and authorized 
to perform such work in the contract or task order; 
(2) provide that the contracting officer for a cov-
ered contract or task order may authorize reliance 
upon a subcontractor or subcontractors to meet the re-
quirement in paragraph (1) only upon a written de-
termination that such reliance is in the best interest 
of the executive agency concerned, after taking into 
account the added cost for overhead (including general 
and administrative costs) and profit that may be in-
curred as a result of the pass-through; 
(3) require the contracting officer for a covered 
contract or task order for which more than 70 percent 
of the direct labor cost of services to be performed will 
be expended for persons other than employees of the 
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contractor to ensure that amounts paid to the con-
tractor for overhead (including general and adminis-
trative costs) and profit are reasonable in relation to 
the cost of direct labor provided by employees of the 
contractor and any other costs directly attributable to 
the management of the subcontract by employees of 
the contractor; 
(4) include such exceptions to the requirements 
in paragraphs (2) and (3) as the Federal Acquisition 
Regulatory Council considers appropriate in the in-
terests of the United States, which exceptions shall be 
permissible only in exceptional circumstances and for 
instances demonstrated by the Council to be cost-effec-
tive; and 
(5) include such exceptions to the requirements 
in paragraphs (2) and (3) as the Secretary of Defense 
considers appropriate in the interests of the national 
defense. 
(b) COVERED CONTRACT OR TASK ORDER DEFINED.— 
In this section, the term ‘‘covered contract or task order’’ 
means a contract or task order for the performance of serv-
ices (other than construction) with a value in excess of the 
simplified acquisition threshold that is entered into for or 
on behalf of an executive agency, except that such term does 
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not include any contract or task order that provides a firm, 
fixed price for each task to be performed and is— 
(1) awarded on the basis of adequate price com-
petition; or 
(2) for the acquisition of commercial services as 
defined in paragraphs (5) and (6) of section 103 of 
title 41, United States Code. 
(c) EFFECTIVE DATE.—The requirements of this sec-
tion shall apply to— 
(1) covered contracts that are awarded on or 
after the date that is 90 days after the date of the en-
actment of this Act; and 
(2) covered task orders that are awarded on or 
after the date that is 90 days after the date of the en-
actment of this Act under contracts that are awarded 
before, on, or after such date. 
(d) OTHER DEFINITIONS.—In this section: 
(1) The term ‘‘executive agency’’ has the mean-
ing given that term in section 133 of title 41, United 
States Code. 
(2) The term ‘‘Federal Acquisition Regulatory 
Council’’ means the Federal Acquisition Regulatory 
Council under section 1302(a) of title 41, United 
States Code. 
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(e) CONFORMING REPEAL.—Section 852 of the John 
Warner National Defense Authorization Act for Fiscal Year 
2007 (120 Stat. 2340) is repealed. 
SEC. 823. AVAILABILITY OF AMOUNTS IN DEFENSE ACQUISI-
TION WORKFORCE DEVELOPMENT FUND FOR 
TEMPORARY MEMBERS OF WORKFORCE. 
(a) IN GENERAL.—Section 1705 of title 10, United 
States Code, is amended— 
(1) in subsection (e)— 
(A) in paragraph (1), by adding at the end 
the following new sentence: ‘‘In the case of tem-
porary members of the acquisition workforce des-
ignated pursuant to subsection (h)(2), such funds 
shall be available only for the limited purpose of 
providing training in the performance of acqui-
sition-related functions and duties.’’; and 
(B) in paragraph (5), by inserting before 
the period at the end the following: ‘‘, and who 
has continued in the employment of the Depart-
ment since such time without a break in such 
employment of more than a year’’; 
(2) by striking subsection (g); 
(3) by redesignating subsection (h) as subsection 
(g); and 
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(4) by adding at the end the following new sub-
section (h): 
‘‘(h) ACQUISITION WORKFORCE DEFINED.—In this 
section, the term ‘acquisition workforce’ means the fol-
lowing: 
‘‘(1) Personnel in positions designated under sec-
tion 1721 of this title as acquisition positions for pur-
poses of this chapter. 
‘‘(2) Other military personnel or civilian em-
ployees of the Department of Defense who— 
‘‘(A) contribute significantly to the acquisi-
tion process by virtue of their assigned duties; 
and 
‘‘(B) are designated as temporary members 
of the acquisition workforce by the Under Sec-
retary of Defense for Acquisition, Technology, 
and Logistics, or by the senior acquisition execu-
tive of a military department, for the limited 
purpose of receiving training for the performance 
of acquisition-related functions and duties.’’. 
(b) EXTENSION OF EXPEDITED HIRING AUTHORITY.— 
Subsection (g) of such section, as redesignated by subsection 
(a)(3) of this section, is further amended in paragraph (2) 
by striking ‘‘September 30, 2015’’ and inserting ‘‘September 
30, 2017’’. 
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(c) PLAN 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 plan for the implementation of the authority pro-
vided by the amendments made by subsection (a) with re-
gard to temporary members of the defense acquisition work-
force. The plan shall include policy, criteria, and processes 
for designating temporary members and appropriate safe-
guards to prevent the abuse of such authority. 
SEC. 824. DEPARTMENT OF DEFENSE POLICY ON CON-
TRACTOR PROFITS. 
(a) REVIEW OF GUIDELINES ON PROFITS.—The Sec-
retary of Defense shall review the profit guidelines in the 
Department of Defense Supplement to the Federal Acquisi-
tion Regulation in order to identify any modifications to 
such guidelines that are necessary to ensure an appropriate 
link between contractor profit and contractor performance. 
(b) MATTERS TO BE CONSIDERED.—In conducting the 
review required by subsection (a), the Secretary shall con-
sider, at a minimum, the following: 
(1) Appropriate levels of profit needed to sustain 
competition in the defense industry, taking into ac-
count contractor investment and cash flow. 
(2) Appropriate adjustments to address contract 
and performance risk assumed by the contractor, tak-
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ing into account the extent to which such risk is 
passed on to subcontractors. 
(3) Appropriate incentives for superior perform-
ance in delivering quality products and services in a 
timely and cost-effective manner, taking into account 
such factors as prime contractor cost reduction, con-
trol of overhead costs, subcontractor cost reduction, 
subcontractor management, and effective competition 
(including the utilization of small business) at the 
subcontract level. 
(c) MODIFICATION OF GUIDELINES.—Not later than 
180 days after the date of the enactment of this Act, the 
Secretary shall modify the profit guidelines described in 
subsection (a) so as to achieve the link described that sub-
section. 
(d) REPORT.—Upon the completion of the modifica-
tion of the profit guidelines required by subsection (c), the 
Secretary shall submit to the congressional defense commit-
tees a report on the actions of the Secretary under this sec-
tion. The report shall set forth the following: 
(1) The results of the review conducted under 
subsection (a). 
(2) A description of the modification carried out 
under subsection (c). 
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SEC. 825. MODIFICATION OF AUTHORITIES ON INTERNAL 
CONTROLS FOR PROCUREMENTS ON BEHALF 
OF THE DEPARTMENT OF DEFENSE BY CER-
TAIN NON-DEFENSE AGENCIES. 
(a) DISCRETIONARY AUTHORITY.—Subsection (a) of 
section 801 of the National Defense Authorization Act for 
Fiscal Year 2008 (10 U.S.C. 2304 note) is amended— 
(1) in paragraph (1), by striking ‘‘shall, not 
later than the date specified in paragraph (2),’’ and 
inserting ‘‘may’’; 
(2) by striking paragraph (2); 
(3) by redesignating paragraphs (3) through (6) 
as paragraphs (2) through (5), respectively; 
(4) in paragraph (3), as redesignated by para-
graph (3) of this section— 
(A) by striking ‘‘required under this sub-
section’’ and inserting ‘‘to be performed under 
this subsection’’; and 
(B) by striking ‘‘shall’’ and inserting 
‘‘may’’; and 
(5) in paragraph (4), as so redesignated, by 
striking ‘‘shall’’ and inserting ‘‘may’’. 
(b) CONFORMING AMENDMENTS.—Subsection (b)(1)(B) 
of such section is amended— 
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(1) in clause (i), by striking ‘‘required by sub-
section (a)(4)’’ and inserting ‘‘to be entered into 
under subsection (a)(3)’’; and 
(2) in clause (ii)— 
(A) by striking ‘‘required by subsection (a)’’ 
and inserting ‘‘provided for under subsection 
(a)’’; and 
(B) by striking ‘‘subsection (a)(5)’’ and in-
serting ‘‘subsection (a)(4)’’. 
SEC. 826. EXTENSION OF PILOT PROGRAM ON MANAGE-
MENT OF SUPPLY-CHAIN RISK. 
Section 806(g) of the Ike Skelton National Defense Au-
thorization Act for Fiscal Year 2011 (Public Law 111–383; 
124 Stat. 4262; 10 U.S.C. 2304 note) is amended by strik-
ing ‘‘the date that is three years after the date of the enact-
ment of this Act’’ and inserting ‘‘January 1, 2016’’. 
SEC. 
827. 
SENSE 
OF 
SENATE 
ON 
THE 
CONTINUING 
PROGRESS OF THE DEPARTMENT OF DE-
FENSE IN IMPLEMENTING ITS ITEM UNIQUE 
IDENTIFICATION INITIATIVE. 
(a) FINDINGS.—The Senate makes the following find-
ings: 
(1) In 2003, the Department of Defense initiated 
the Item Unique Identification (IUID) Initiative, 
which requires the marking and tracking of assets de-
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ployed throughout the Armed Forces or in the posses-
sion of Department contractors. 
(2) The Initiative has the potential for realizing 
significant cost savings and improving the manage-
ment of defense equipment and supplies throughout 
their lifecycle. 
(3) The Initiative can help the Department com-
bat the growing problem of counterfeits in the mili-
tary supply chain. 
(b) SENSE OF SENATE.—It is the sense of the Senate— 
(1) to support efforts by the Department of De-
fense to implement the Item Unique Identification 
Initiative; 
(2) to support measures to verify contractor com-
pliance with section 252.211–7003 (entitled ‘‘Item 
Identification and Valuation’’) of the Defense Supple-
ment to the Federal Acquisition Regulation, on 
Unique Identification, which states that a unique 
identification equivalent recognized by the Depart-
ment is required for certain acquisitions; 
(3) to encourage the Armed Forces to adopt and 
implement Item Unique Identification actions and 
milestones; and 
(4) to support investment of sufficient resources 
and continued training and leadership to enable the 
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Department to capture meaningful data and optimize 
the benefits of the Item Unique Identification Initia-
tive. 
Subtitle C—Amendments Relating 
to General Contracting Authori-
ties, Procedures, and Limita-
tions 
SEC. 841. APPLICABILITY OF TRUTH IN NEGOTIATIONS ACT 
TO MAJOR SYSTEMS AND RELATED SUB-
SYSTEMS, 
COMPONENTS, 
AND 
SUPPORT 
SERVICES. 
(a) AUTHORITY TO REQUIRE SUBMISSION OF COST OR 
PRICING DATA.—Subsection (c) of section 2306a of title 10, 
United States Code, is amended— 
(1) in the subsection caption, by striking 
‘‘BELOW-THRESHOLD’’ and inserting ‘‘CERTAIN’’; and 
(2) in paragraph (2), by inserting before the pe-
riod at the end the following: ‘‘, except in the case of 
either of the following: 
‘‘(A) A major system or a subsystem or 
component thereof that is not a commercially 
available off-the-shelf item (as defined in section 
104 of title 41) and was not developed exclu-
sively at private expense as demonstrated in ac-
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cordance with the requirements of section 
2321(f)(2) of this title. 
‘‘(B) Services that are procured for support 
of a system, subsystem, or component described 
in subparagraph (A).’’. 
(b) AUTHORITY TO REQUIRE SUBMISSION OF OTHER 
INFORMATION.—Subsection (d)(1) of such section is amend-
ed by striking ‘‘at a minimum’’ and all that follows and 
inserting ‘‘at a minimum— 
‘‘(A) appropriate information on the prices 
at which the same item or similar items have 
previously been sold that is adequate for evalu-
ating the reasonableness of the price for the pro-
curement; and 
‘‘(B) in the case of a system, subsystem, 
component, or services described in subpara-
graph (A) or (B) of subsection (c)(2) for which 
price information described in subparagraph (A) 
of this paragraph is not adequate to evaluate 
price reasonableness, uncertified cost data that is 
adequate for evaluating the reasonableness of the 
price for the procurement.’’. 
(c) TECHNICAL AMENDMENT.—Subsection (c)(3) of 
such section is amended by striking ‘‘paragraph’’ and in-
serting ‘‘subsection’’. 
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SEC. 842. MAXIMUM AMOUNT OF ALLOWABLE COSTS OF 
COMPENSATION OF CONTRACTOR EMPLOY-
EES. 
(a) MODIFICATION OF MAXIMUM AMOUNT.—Section 
2324(e)(1)(P) of title 10, United States Code, is amended 
by striking ‘‘the benchmark’’ and all that follows through 
‘‘section 1127 of title 41’’ and inserting ‘‘the annual 
amount payable under the aggregate limitation on pay as 
established by the Office of Management and Budget (cur-
rently $230,700)’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on January 1, 2013, and shall 
apply with respect to costs of compensation incurred on or 
after that date under contracts entered into before, on, or 
after that date. 
(c) REPORT ON ALLOWABLE COSTS OF EMPLOYEE 
COMPENSATION.—Not later than 120 days after the date of 
the enactment of this Act, the Inspector General of the De-
partment of Defense shall submit to Congress a report on 
the effect of the modification of allowable costs of contractor 
compensation of employees made by subsection (a). The re-
port shall include the following: 
(1) The total number of contractor employees 
whose allowable costs of compensation in fiscal year 
2012 exceeded the amount of allowable costs under the 
modification made by subsection (a). 
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(2) The total number of contractor employees 
whose allowable costs of compensation in each of fiscal 
years 2010, 2011, and 2012 would have exceeded the 
amount of allowable costs under section 2324(e)(1)(P) 
of title 10, United States Code, as amended by section 
803(a) of the National Defense Authorization Act for 
Fiscal Year 2012 (Public Law 112–81; 125 Stat. 
1485). 
(3) The total number of contractor employees 
whose allowable costs of compensation in each of fiscal 
years 2010, 2011, and 2012 exceeded the amount pay-
able to the President under section 102 of title 3, 
United States Code. 
(4) The total number of contractor employees in 
fiscal year 2012 that could have been characterized as 
falling within a narrowly targeted exception estab-
lished by the Secretary of Defense under section 
2324(e)(1)(P) of title 10, United States Code, as a re-
sult of the amendment made by section 803(a)(2) of 
the National Defense Authorization Act for Fiscal 
Year 2012. 
(5) An assessment whether the compensation 
amounts provided in fiscal year 2012 to employees 
who were characterized by their employers as falling 
within a narrowly targeted exception described in 
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† HR 4310 PP
paragraph (4) were provided compensation amounts 
in that fiscal year in manner consistent with private 
sector practice. 
(6) The duties and services performed in fiscal 
year 2012 by employees who were characterized by 
their employers as falling within a narrowly targeted 
exception described in paragraph (4). 
(7) An assessment whether there are Federal ci-
vilian employees who perform duties and services 
comparable to the duties and services described pursu-
ant to paragraph (6). 
SEC. 843. DEPARTMENT OF DEFENSE ACCESS TO AND USE 
OF CONTRACTOR INTERNAL AUDIT REPORTS. 
(a) CLARIFICATION OF AUDIT ACCESS AUTHORITY.— 
Section 2313(a)(2) of title 10, United States Code, is 
amended— 
(1) in subparagraph (C), by striking ‘‘or’’ at the 
end; 
(2) in subparagraph (D), by striking the period 
at the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(E) the efficacy of contractor or subcontractor 
internal controls and the reliability of contractor or 
subcontractor business systems.’’. 
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(b) GUIDANCE ON ACCESS.— 
(1) GUIDANCE
REQUIRED.—Not later than 90 
days after the date of the enactment of this Act, the 
Director of the Defense Contract Audit Agency shall 
issue revised guidance on Defense Contract Audit 
Agency auditor access to defense contractor internal 
audit reports and supporting materials. 
(2) PURPOSE.—The purpose of the guidance 
issued pursuant to paragraph (1) shall be to ensure 
that the Defense Contract Audit Agency has sufficient 
access to contractor internal audit reports and sup-
porting materials in order to— 
(A) evaluate and test the efficacy of con-
tractor internal controls and the reliability of as-
sociated contractor business systems; and 
(B) assess the amount of risk and level of 
testing required in connection with specific au-
dits to be conducted by the Agency. 
(3) MATTERS TO BE ADDRESSED.—The guidance 
issued pursuant to paragraph (1) shall address, at a 
minimum, the following: 
(A) The extent to which Defense Contract 
Audit Agency auditors should request access to 
defense contractor internal audit reports and 
supporting materials. 
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(B) The circumstances in which follow-up 
actions, including subpoenas, may be required to 
ensure Agency access to audit reports and sup-
porting materials. 
(C) The designation of Agency audit offi-
cials responsible for coordinating issues per-
taining to Agency requests for audit reports and 
supporting materials. 
(D) The purposes for which Agency auditors 
may use audit reports and supporting materials. 
(E) Any protections that may be required to 
ensure that audit reports and supporting mate-
rials are not misused. 
(F) Requirements for tracking Agency re-
quests for audit reports and supporting mate-
rials. 
(c) FAILURE TO PROVIDE ACCESS.—Not later than 
180 days after the date of the enactment of this Act, the 
Secretary of Defense shall revise the program required by 
section 893 of the Ike Skelton National Defense Authoriza-
tion Act for Fiscal Year 2011 (Public Law 111–383; 124 
Stat. 4311; 10 U.S.C. 2302 note) in order to— 
(1) ensure that any assessment of the adequacy 
of contractor business systems takes into account the 
efficacy of contractor internal controls, including con-
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tractor internal audit reports and supporting mate-
rials, that are relevant to such assessment; and 
(2) provide that the refusal of a contractor to 
permit access to contractor internal audit reports and 
supporting materials that are relevant to such an as-
sessment is a basis for disapproving the contractor 
business system or systems to which such materials 
are relevant and taking the remedial actions author-
ized under section 893. 
SEC. 844. ENHANCEMENT OF WHISTLEBLOWER PROTEC-
TIONS FOR CONTRACTOR EMPLOYEES. 
(a) IN GENERAL.—Subsection (a) of section 2409 of 
title 10, United States Code, is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘An employee’’; 
(2) in paragraph (1), as so designated— 
(A) by inserting ‘‘or subcontractor’’ after 
‘‘employee of a contractor’’; 
(B) by striking ‘‘a Member of Congress’’ 
and all that follows through ‘‘the Department of 
Justice’’ and inserting ‘‘a person or body de-
scribed in paragraph (2)’’; 
(C) by inserting ‘‘an abuse of authority re-
lating to a Department of Defense contract or 
grant,’’ after ‘‘Department of Defense funds,’’; 
and 
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(D) by inserting ‘‘, rule, or regulation’’ 
after ‘‘a violation of law’’; and 
(3) by adding at the end the following new para-
graphs: 
‘‘(2) The persons and bodies described in this para-
graph are the persons and bodies as follows: 
‘‘(A) A Member of Congress or a representative 
of a committee of Congress. 
‘‘(B) An Inspector General. 
‘‘(C) The Government Accountability Office. 
‘‘(D) A Department of Defense employee respon-
sible for contract oversight or management. 
‘‘(E) An authorized official of the Department of 
Justice or other law enforcement agency. 
‘‘(F) A court or grand jury. 
‘‘(G) A management official or other employee of 
the contractor or subcontractor who has the responsi-
bility to investigate, discover, or address misconduct. 
‘‘(3) For the purposes of paragraph (1)— 
‘‘(A) an employee who initiates or provides evi-
dence of contractor or subcontractor misconduct in 
any judicial or administrative proceeding relating to 
waste, fraud, or abuse on a Department of Defense 
contract shall be deemed to have made a disclosure 
covered by such paragraph; and 
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‘‘(B) a reprisal described in paragraph (1) is 
prohibited even if it is undertaken at the request of 
a Department of Defense official, unless the request 
takes the form of a non-discretionary directive and is 
within the authority of the Department of Defense of-
ficial making the request.’’. 
(b) INVESTIGATION OF COMPLAINTS.—Subsection (b) 
of such section is amended— 
(1) in paragraph (1), by inserting ‘‘fails to al-
lege a violation of the prohibition in subsection (a), 
or has previously been addressed in another Federal 
or State judicial or administrative proceeding initi-
ated by the complainant,’’ after ‘‘is frivolous,’’; 
(2) in paragraph (2)— 
(A) in subparagraph (A), by inserting ‘‘, 
fails to allege a violation of the prohibition in 
subsection (a), or has previously been addressed 
in another Federal or State judicial or adminis-
trative proceeding initiated by the complainant’’ 
after ‘‘is frivolous’’; and 
(B) in subparagraph (B), by inserting ‘‘, up 
to 180 days,’’ after ‘‘such additional period of 
time’’; and 
(3) by adding at the end the following new para-
graphs: 
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† HR 4310 PP
‘‘(3) The Inspector General may not respond to any 
inquiry or disclose any information from or about any per-
son alleging the reprisal, except to the extent that such re-
sponse or disclosure is— 
‘‘(A) made with the consent of the person alleg-
ing the reprisal; 
‘‘(B) made in accordance with the provisions of 
section 552a of title 5 or as required by any other ap-
plicable Federal law; or 
‘‘(C) necessary to conduct an investigation of the 
alleged reprisal. 
‘‘(4) A complaint may not be brought under this sub-
section more than three years after the date on which the 
alleged reprisal took place.’’. 
(c) REMEDY AND ENFORCEMENT AUTHORITY.—Sub-
section (c) of such section is amended— 
(1) in paragraph (1)(B), by striking ‘‘the com-
pensation (including back pay)’’ and inserting ‘‘com-
pensatory damages (including back pay)’’; 
(2) in paragraph (2), by adding at the end fol-
lowing new sentence: ‘‘An action under this para-
graph may not be brought more than two years after 
the date on which remedies are deemed to have been 
exhausted.’’; 
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† HR 4310 PP
(3) in paragraph (4), by striking ‘‘and compen-
satory and exemplary damages.’’ and inserting ‘‘, 
compensatory and exemplary damages, and attorney 
fees and costs. The person upon whose behalf an order 
was issued may also file such an action or join in an 
action filed by the head of the agency.’’; 
(4) in paragraph (5), by adding at the end the 
following new sentence: ‘‘Filing such an appeal shall 
not act to stay the enforcement of the order of the 
head of an agency, unless a stay is specifically en-
tered by the court.’’; and 
(5) by adding at the end the following new para-
graphs: 
‘‘(6) The legal burdens of proof specified in section 
1221(e) of title 5 shall be controlling for the purposes of 
any investigation conducted by an Inspector General, deci-
sion by the head of an agency, or judicial or administrative 
proceeding to determine whether discrimination prohibited 
under this section has occurred. 
‘‘(7) The rights and remedies provided for in this sec-
tion may not be waived by any agreement, policy, form, 
or condition of employment, including by any predispute 
arbitration agreement, other than an arbitration provision 
in a collective bargaining agreement.’’. 
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(d) NOTIFICATION OF EMPLOYEES.—Such section is 
further amended— 
(1) by redesignating subsections (d) and (e) as 
subsections (e) and (f), respectively; and 
(2) by inserting after subsection (c) the following 
new subsection (d): 
‘‘(d) NOTIFICATION OF EMPLOYEES.—The Secretary of 
Defense shall ensure that contractors and subcontractors of 
the Department of Defense inform their employees in writ-
ing of the rights and remedies provided under this section, 
in the predominant native language of the workforce.’’. 
(e) ABUSE OF AUTHORITY DEFINED.—Subsection (f) 
of such section, as redesignated by subsection (d)(1) of this 
section, is further amended by adding at the end the fol-
lowing new paragraph: 
‘‘(6) The term ‘abuse of authority’ means an ar-
bitrary and capricious exercise of authority that is 
inconsistent with the mission of the Department of 
Defense or the successful performance of a Department 
of Defense contract or grant.’’. 
(f) ALLOWABILITY OF LEGAL FEES.—Section 2324(k) 
of such title is amended— 
(1) in paragraph (1), by striking ‘‘commenced by 
the United States or a State’’ and inserting ‘‘com-
menced by the United States, by a State, or by a con-
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† HR 4310 PP
tractor employee submitting a complaint under sec-
tion 2409 of this title’’; and 
(2) in paragraph (2)(C), by striking ‘‘the impo-
sition of a monetary penalty’’ and inserting ‘‘the im-
position of a monetary penalty or an order to take 
corrective action under section 2409 of this title’’. 
(g) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall take effect on the date that is 180 
days after the date of the enactment of this Act, and 
shall apply to— 
(A) all contracts awarded on or after such 
date; 
(B) all task orders entered on or after such 
date pursuant to contracts awarded before, on, or 
after such date; and 
(C) all contracts awarded before such date 
that are modified to include a contract clause 
providing for the applicability of such amend-
ments. 
(2) REVISION
OF
DOD
SUPPLEMENT
TO
THE 
FAR.—Not later than 180 days after the date of the 
enactment of this Act, the Department of Defense 
Supplement to the Federal Acquisition Regulation 
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shall be revised to implement the requirements arising 
under the amendments made by this section. 
(3) INCLUSION OF CONTRACT CLAUSE IN CON-
TRACTS AWARDED BEFORE EFFECTIVE DATE.—At the 
time of any major modification to a contract that 
was awarded before the date that is 180 days after the 
date of the enactment of this Act, the head of the con-
tracting agency shall make best efforts to include in 
the contract a contract clause providing for the appli-
cability of the amendments made by this section to 
the contract. 
SEC. 844A. WHISTLEBLOWER PROTECTIONS FOR NON-DE-
FENSE CONTRACTORS. 
(a) WHISTLEBLOWER PROTECTIONS.— 
(1) IN GENERAL.—Chapter 47 of title 41, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 4712. CONTRACTOR AND GRANTEE EMPLOYEES: PRO-
TECTION FROM REPRISAL FOR DISCLOSURE 
OF CERTAIN INFORMATION. 
‘‘(a) PROHIBITION OF REPRISALS.— 
‘‘(1) IN GENERAL.—An employee of a contractor, 
subcontractor, or grantee may not be discharged, de-
moted, or otherwise discriminated against as a re-
prisal for disclosing to a person or body described in 
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paragraph (2) information that the employee reason-
ably believes is evidence of gross mismanagement of a 
Federal contract or grant, a gross waste of Federal 
funds, an abuse of authority relating to a Federal 
contract or grant, a substantial and specific danger 
to public health or safety, or a violation of law, rule, 
or regulation related to a Federal contract (including 
the competition for or negotiation of a contract) or 
grant. 
‘‘(2) PERSONS AND BODIES COVERED.—The per-
sons and bodies described in this paragraph are the 
persons and bodies as follows: 
‘‘(A) A Member of Congress or a representa-
tive of a committee of Congress. 
‘‘(B) An Inspector General. 
‘‘(C) The Government Accountability Office. 
‘‘(D) A Federal employee responsible for 
contract or grant oversight or management at 
the relevant agency. 
‘‘(E) An authorized official of the Depart-
ment of Justice or other law enforcement agency. 
‘‘(F) A court or grand jury. 
‘‘(G) A management official or other em-
ployee of the contractor, subcontractor, or grantee 
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† HR 4310 PP
who has the responsibility to investigate, dis-
cover, or address misconduct. 
‘‘(3) RULES OF CONSTRUCTION.—For the pur-
poses of paragraph (1)— 
‘‘(A) an employee who initiates or provides 
evidence of contractor, subcontractor, or grantee 
misconduct in any judicial or administrative 
proceeding relating to waste, fraud, or abuse on 
a Federal contract or grant shall be deemed to 
have made a disclosure covered by such para-
graph; and 
‘‘(B) a reprisal described in paragraph (1) 
is prohibited even if it is undertaken at the re-
quest of an executive branch official, unless the 
request takes the form of a non-discretionary di-
rective and is within the authority of the execu-
tive branch official making the request. 
‘‘(b) INVESTIGATION OF COMPLAINTS.— 
‘‘(1) SUBMISSION OF COMPLAINT.—A person who 
believes that the person has been subjected to a re-
prisal prohibited by subsection (a) may submit a 
complaint to the Inspector General of the executive 
agency involved. Unless the Inspector General deter-
mines that the complaint is frivolous, fails to allege 
a violation of the prohibition in subsection (a), or has 
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† HR 4310 PP
previously been addressed in another Federal or State 
judicial or administrative proceeding initiated by the 
complainant, the Inspector General shall investigate 
the complaint and, upon completion of such investiga-
tion, submit a report of the findings of the investiga-
tion to the person, the contractor or grantee con-
cerned, and the head of the agency. 
‘‘(2) INSPECTOR GENERAL ACTION.— 
‘‘(A) DETERMINATION
OR
SUBMISSION
OF 
REPORT
ON
FINDINGS.—Except as provided 
under subparagraph (B), the Inspector General 
shall make a determination that a complaint is 
frivolous, fails to allege a violation of the prohi-
bition in subsection (a), or has previously been 
addressed in another Federal or State judicial or 
administrative proceeding initiated by the com-
plainant or submit a report under paragraph 
(1) within 180 days after receiving the com-
plaint. 
‘‘(B) EXTENSION OF TIME.—If the Inspector 
General is unable to complete an investigation in 
time to submit a report within the 180-day pe-
riod specified in subparagraph (A) and the per-
son submitting the complaint agrees to an exten-
sion of time, the Inspector General shall submit 
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† HR 4310 PP
a report under paragraph (1) within such addi-
tional period of time, up to 180 days, as shall 
be agreed upon between the Inspector General 
and the person submitting the complaint. 
‘‘(3) PROHIBITION
ON
DISCLOSURE.—The In-
spector General may not respond to any inquiry or 
disclose any information from or about any person 
alleging the reprisal, except to the extent that such re-
sponse or disclosure is— 
‘‘(A) made with the consent of the person al-
leging the reprisal; 
‘‘(B) made in accordance with the provi-
sions of section 552a of title 5 or as required by 
any other applicable Federal law; or 
‘‘(C) necessary to conduct an investigation 
of the alleged reprisal. 
‘‘(4) TIME LIMITATION.—A complaint may not 
be brought under this subsection more than three 
years after the date on which the alleged reprisal took 
place. 
‘‘(c) REMEDY AND ENFORCEMENT AUTHORITY.— 
‘‘(1) IN GENERAL.—Not later than 30 days after 
receiving an Inspector General report pursuant to 
subsection (b), the head of the executive agency con-
cerned shall determine whether there is sufficient basis 
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† HR 4310 PP
to conclude that the contractor or grantee concerned 
has subjected the complainant to a reprisal prohibited 
by subsection (a) and shall either issue an order de-
nying relief or shall take one or more of the following 
actions: 
‘‘(A) Order the contractor or grantee to take 
affirmative action to abate the reprisal. 
‘‘(B) Order the contractor or grantee to re-
instate the person to the position that the person 
held before the reprisal, together with compen-
satory damages (including back pay), employ-
ment benefits, and other terms and conditions of 
employment that would apply to the person in 
that position if the reprisal had not been taken. 
‘‘(C) Order the contractor or grantee to pay 
the complainant an amount equal to the aggre-
gate amount of all costs and expenses (including 
attorneys’ fees and expert witnesses’ fees) that 
were reasonably incurred by the complainant for, 
or in connection with, bringing the complaint re-
garding the reprisal, as determined by the head 
of the executive agency. 
‘‘(2) EXHAUSTION OF REMEDIES.—If the head of 
an executive agency issues an order denying relief 
under paragraph (1) or has not issued an order with-
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in 210 days after the submission of a complaint 
under subsection (b), or in the case of an extension 
of time under paragraph (b)(2)(B), not later than 30 
days after the expiration of the extension of time, and 
there is no showing that such delay is due to the bad 
faith of the complainant, the complainant shall be 
deemed to have exhausted all administrative remedies 
with respect to the complaint, and the complainant 
may bring a de novo action at law or equity against 
the contractor or grantee to seek compensatory dam-
ages and other relief available under this section in 
the appropriate district court of the United States, 
which shall have jurisdiction over such an action 
without regard to the amount in controversy. Such an 
action shall, at the request of either party to the ac-
tion, be tried by the court with a jury. An action 
under this paragraph may not be brought more than 
two years after the date on which remedies are 
deemed to have been exhausted. 
‘‘(3) ADMISSIBILITY OF EVIDENCE.—An Inspec-
tor General determination and an agency head order 
denying relief under paragraph (2) shall be admis-
sible in evidence in any de novo action at law or eq-
uity brought pursuant to this subsection. 
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‘‘(4) ENFORCEMENT
OF
ORDERS.—Whenever a 
person fails to comply with an order issued under 
paragraph (1), the head of the executive agency con-
cerned shall file an action for enforcement of such 
order in the United States district court for a district 
in which the reprisal was found to have occurred. In 
any action brought under this paragraph, the court 
may grant appropriate relief, including injunctive re-
lief, compensatory and exemplary damages, and at-
torney fees and costs. The person upon whose behalf 
an order was issued may also file such an action or 
join in an action filed by the head of the executive 
agency. 
‘‘(5) JUDICIAL REVIEW.—Any person adversely 
affected or aggrieved by an order issued under para-
graph (1) may obtain review of the order’s conform-
ance with this subsection, and any regulations issued 
to carry out this section, in the United States court 
of appeals for a circuit in which the reprisal is al-
leged in the order to have occurred. No petition seek-
ing such review may be filed more than 60 days after 
issuance of the order by the head of the executive 
agency. Review shall conform to chapter 7 of title 5. 
Filing such an appeal shall not act to stay the en-
forcement of the order of the head of an executive 
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agency, unless a stay is specifically entered by the 
court. 
‘‘(6) BURDENS OF PROOF.—The legal burdens of 
proof specified in section 1221(e) of title 5 shall be 
controlling for the purposes of any investigation con-
ducted by an Inspector General, decision by the head 
of an executive agency, or judicial or administrative 
proceeding to determine whether discrimination pro-
hibited under this section has occurred. 
‘‘(7) RIGHTS AND REMEDIES NOT WAIVABLE.— 
The rights and remedies provided for in this section 
may not be waived by any agreement, policy, form, 
or condition of employment, including by any 
predispute arbitration agreement, other than an arbi-
tration provision in a collective bargaining agree-
ment. 
‘‘(d) NOTIFICATION OF EMPLOYEES.—The head of each 
executive agency shall ensure that contractors, subcontrac-
tors, and grantees of the agency inform their employees in 
writing of the rights and remedies provided under this sec-
tion, in the predominant native language of the workforce. 
‘‘(e) CONSTRUCTION.—Nothing in this section may be 
construed to authorize the discharge of, demotion of, or dis-
crimination against an employee for a disclosure other than 
a disclosure protected by subsection (a) or to modify or der-
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ogate from a right or remedy otherwise available to the em-
ployee. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) The term ‘abuse of authority’ means an ar-
bitrary and capricious exercise of authority that is 
inconsistent with the mission of the executive agency 
concerned or the successful performance of a contract 
or grant of such agency. 
‘‘(2) The term ‘Inspector General’ means an In-
spector General appointed under the Inspector Gen-
eral Act of 1978 and any Inspector General that re-
ceives funding from, or has oversight over contracts or 
grants awarded for or on behalf of, the executive agen-
cy concerned.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended by 
adding at the end the following new item: 
‘‘4712. Contractor and grantee employees: protection from reprisal for disclosure 
of certain information.’’. 
(b) ALLOWABILITY OF LEGAL FEES.—Section 4310 of 
title 41, United States Code, is amended— 
(1) in subsection (b), by striking ‘‘commenced by 
the Federal Government or a State’’ and inserting 
‘‘commenced by the Federal Government, by a State, 
or by a contractor or grantee employee submitting a 
complaint under section 4712 of this title’’; and 
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(2) in subsection (c)(3), by striking ‘‘the imposi-
tion of a monetary penalty’’ and inserting ‘‘the impo-
sition of a monetary penalty or an order to take cor-
rective action under section 4712 of this title’’. 
(c) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall take effect on the date that is 180 
days after the date of the enactment of this Act, and 
shall apply to— 
(A) all contracts and grants awarded on or 
after such date; 
(B) all task orders entered on or after such 
date pursuant to contracts awarded before, on, or 
after such date; and 
(C) all contracts awarded before such date 
that are modified to include a contract clause 
providing for the applicability of such amend-
ments. 
(2) REVISION OF FEDERAL ACQUISITION REGU-
LATION.—Not later than 180 days after the date of 
the enactment of this Act, the Federal Acquisition 
Regulation shall be revised to implement the require-
ments arising under the amendments made by this 
section. 
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(3) INCLUSION OF CONTRACT CLAUSE IN CON-
TRACTS AWARDED BEFORE EFFECTIVE DATE.—At the 
time of any major modification to a contract that 
was awarded before the date that is 180 days after the 
date of the enactment of this Act, the head of the con-
tracting agency shall make best efforts to include in 
the contract a contract clause providing for the appli-
cability of the amendments made by this section to 
the contract. 
SEC. 845. EXTENSION OF CONTRACTOR CONFLICT OF IN-
TEREST LIMITATIONS. 
(a) ASSESSMENT OF EXTENSION OF LIMITATIONS TO 
CERTAIN ADDITIONAL FUNCTIONS AND CONTRACTS.—Not 
later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense shall review the guidance on 
personal conflicts of interest for contractor employees issued 
pursuant to section 841(a) of the Duncan Hunter National 
Defense Authorization Act for Fiscal Year 2009 (Public 
Law 110–417; 122 Stat. 4537) in order to determine wheth-
er it would be in the best interest of the Department of De-
fense and the taxpayers to extend such guidance to personal 
conflicts of interest by contractor personnel performing any 
of the following: 
(1) Functions other than acquisition functions 
that are closely associated with inherently govern-
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mental functions (as that term is defined in section 
2383(b)(3) of title 10, United States Code). 
(2) Personal services contracts (as that term is 
defined in section 2330a(g)(5) of title 10, United 
States Code). 
(3) Contracts for staff augmentation services (as 
that term is defined in section 808(d)(3) of the Na-
tional Defense Authorization Act for Fiscal Year 2012 
(Public Law 112–81; 125 Stat. 1490)). 
(b) EXTENSION OF LIMITATIONS.—If the Secretary de-
termines pursuant to the review under subsection (a) that 
the guidance on personal conflicts of interest should be ex-
tended, the Secretary shall revise the Defense Supplement 
to the Federal Acquisition Regulation to the extent nec-
essary to achieve such extension. 
(c) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary shall submit to 
the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representa-
tives a report setting forth the following: 
(1) A summary of the review conducted under 
subsection (a). 
(2) A summary description of any revisions of 
regulations carried out under subsection (b). 
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SEC. 846. REPEAL OF SUNSET FOR CERTAIN PROTESTS OF 
TASK AND DELIVERY ORDER CONTRACTS. 
Section 2304c(e) of title 10, United States Code, is 
amended by striking paragraph (3). 
SEC. 847. REPORTS ON USE OF INDEMNIFICATION AGREE-
MENTS. 
(a) IN GENERAL.—Not later than 90 days after the 
end of each of fiscal years 2013 through 2016, the Secretary 
of Defense shall submit to the appropriate committees of 
Congress a report on any actions described in subsection 
(b) which occurred during the preceding fiscal years. 
(b) ACTIONS DESCRIBED.— 
(1) IN GENERAL.—An action described in this 
subsection is the Secretary of Defense— 
(A) entering into a contract that includes 
an indemnification provision relating to bodily 
injury caused by negligence or relating to wrong-
ful death; or 
(B) modifying an existing contract to in-
clude a provision described in subparagraph (A) 
in a contract. 
(2) EXCLUDED
CONTRACTS.—Paragraph (1) 
shall not apply to any contract awarded in accord-
ance with— 
(A) section 2354 of title 10, United States 
Code; or 
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(B) the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 
(42 U.S.C. 9601 et seq.). 
(c) MATTERS INCLUDED.—For each action covered in 
a report under subsection (a), the report shall include— 
(1) the name of the contractor; 
(2) a description of the indemnification provi-
sion included in the contract; and 
(3) a justification for the contract including the 
indemnification provision. 
(d) FORM.—Each report under subsection (a) shall be 
submitted in unclassified form, but may include a classified 
annex. 
(e) APPROPRIATE COMMITTEES
OF CONGRESS DE-
FINED.—In this section, the term ‘‘appropriate committees 
of Congress’’ means— 
(1) the Committee on Armed Services, the Com-
mittee on the Budget, and the Committee on Appro-
priations of the Senate; and 
(2) the Committee on Armed Services, the Com-
mittee on the Budget, and the Committee on Appro-
priations of the House of Representatives. 
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SEC. 848. CONTRACTING WITH SMALL BUSINESS CONCERNS 
OWNED AND CONTROLLED BY WOMEN. 
(a) PROCUREMENT PROGRAM
FOR WOMEN-OWNED 
SMALL BUSINESS CONCERNS.—Section 8(m)(2) of the 
Small Business Act (15 U.S.C. 637(m)(2)) is amended— 
(1) in subparagraph (A), by striking ‘‘who are 
economically disadvantaged’’; 
(2) in subparagraph (C), by striking ‘‘paragraph 
(3)’’ and inserting ‘‘paragraph (4)’’; 
(3) by striking subparagraph (D); and 
(4) by redesignating subparagraphs (E) and (F) 
as subparagraphs (D) and (E), respectively. 
(b) STUDY
AND REPORT
ON REPRESENTATION
OF 
WOMEN.—Section 29 of the Small Business Act (15 U.S.C. 
656) is amended by adding at the end the following: 
‘‘(o) STUDY AND REPORT ON REPRESENTATION OF 
WOMEN.— 
‘‘(1) STUDY.—The Administrator shall periodi-
cally conduct a study to identify industries, as de-
fined under the North American Industry Classifica-
tion System, underrepresented by small business con-
cerns owned and controlled by women. 
‘‘(2) REPORT.—Not later than 5 years after the 
date of enactment of this subsection, and every 5 
years thereafter, the Administrator shall submit to the 
Committee on Small Business and Entrepreneurship 
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of the Senate and the Committee on Small Business 
of the House of Representatives a report on the results 
of each study under paragraph (1) conducted during 
the 5-year period ending on the date of the report.’’. 
Subtitle D—Provisions Relating to 
Wartime Contracting 
SEC. 860. SHORT TITLE. 
This subtitle may be cited as the ‘‘Wartime Con-
tracting Reform Act of 2012’’. 
SEC. 861. RESPONSIBILITY WITHIN DEPARTMENT OF DE-
FENSE FOR CONTRACT SUPPORT FOR OVER-
SEAS CONTINGENCY OPERATIONS. 
(a) RESPONSIBILITY.— 
(1) IN GENERAL.—Not later than one year after 
the date of the enactment of this Act, the Secretary of 
Defense shall prescribe in regulations the chain of au-
thority and responsibility within the Department of 
Defense for policy, planning, and execution of con-
tract support for overseas contingency operations. 
(2) ELEMENTS.—The regulations under para-
graph (1) shall, at a minimum— 
(A) specify the officials, offices, and compo-
nents of the Department within the chain of au-
thority and responsibility described in para-
graph (1); 
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(B) identify for each official, office, and 
component specified under subparagraph (A)— 
(i) requirements for policy, planning, 
and execution of contract support for over-
seas contingency operations, including, at a 
minimum, 
requirements 
in 
connection 
with— 
(I) coordination of functions, au-
thorities, and responsibilities related to 
operational contract support for over-
seas contingency operations; 
(II) assessments of total force data 
in support of Department force plan-
ning scenarios, including the appro-
priateness of and necessity for the use 
of contractors for identified functions; 
(III) determinations of capability 
requirements for non-acquisition com-
munity operational contract support, 
and identification of resources required 
for planning, training, and execution 
to meet such requirements; 
(IV) determinations of policy re-
garding the use of contractors by func-
tion, and identification of the training 
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exercises that will be required for con-
tract support (including an assessment 
whether or not such exercises will in-
clude contractors); and 
(V) establishment of an inventory, 
and identification of areas of high risk 
and trade offs, for use of contract sup-
port in overseas contingency operations 
and for areas in which members of the 
Armed Forces will be used in such op-
erations instead of contract support; 
and 
(ii) roles, authorities, responsibilities, 
and lines of supervision for the achievement 
of the requirements identified under clause 
(i), including the position within the chain 
of authority and responsibility described in 
paragraph (1) with responsibility for re-
porting directly to the Secretary regarding 
policy, planning, and execution of contract 
support for overseas contingency operations; 
and 
(C) ensure that the chain of authority and 
responsibility described in paragraph (1) is ap-
propriately aligned with, and appropriately in-
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tegrated into, the structure of the Department for 
the conduct of overseas contingency operations, 
including the military departments, the Joint 
Staff, and the commanders of the unified com-
batant commands. 
(b) SECRETARY
OF DEFENSE REPORT.—Not later 
than one year after the date of the enactment of this Act, 
the Secretary shall submit to the congressional defense com-
mittees a report on the regulations prescribed under sub-
section (a). The report shall set forth the following: 
(1) The regulations. 
(2) A comprehensive description of the require-
ments identified under clause (i) of subsection 
(a)(2)(B), and a comprehensive description of the 
manner in which the roles, authorities, responsibil-
ities, and lines of supervision under clause (ii) of that 
subsection will further the achievement of such re-
quirements. 
(3) A comprehensive description of the manner 
in which the regulations will meet the requirements 
in subsection (a)(2)(C). 
(c) COMPTROLLER GENERAL REPORT.— 
(1) IN
GENERAL.—Not later than 18 months 
after the date of the enactment of this Act, the Comp-
troller General of the United States shall submit to 
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the appropriate committees of Congress a report on 
the progress of the Department of Defense in imple-
menting the regulations prescribed under subsection 
(a). The report may include such additional com-
ments and information on the regulations and the 
implementation of the regulations as the Comptroller 
General considers appropriate. 
(2) APPROPRIATE
COMMITTEES
OF
CONGRESS 
DEFINED.—In this subsection, the term ‘‘appropriate 
committees of Congress’’ means— 
(A) the Committee on Armed Services, the 
Committee on Homeland Security and Govern-
mental Affairs, and the Committee on Appro-
priations of the Senate; and 
(B) the Committee on Armed Services, the 
Committee on Oversight and Government Re-
form, and the Committee on Appropriations of 
the House of Representatives. 
SEC. 862. ANNUAL REPORTS ON CONTRACT SUPPORT FOR 
OVERSEAS CONTINGENCY OPERATIONS IN-
VOLVING COMBAT OPERATIONS. 
(a) REPORTS REQUIRED.— 
(1) DEPARTMENT OF DEFENSE.—Not later than 
one year after the commencement or designation of a 
contingency operation outside the United States that 
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includes combat operations, and annually thereafter 
until the termination of the operation, the Secretary 
of Defense shall, except as provided in subsection (b), 
submit to the appropriate committees of Congress a 
report on contract support for the Department of De-
fense for the operation. 
(2) DEPARTMENT OF STATE AND USAID.—Not 
later than one year after the commencement or des-
ignation of a contingency operation outside the 
United States that includes combat operations, and 
annually thereafter until the termination of the oper-
ation, the Secretary of State and the Administrator 
of the United States Agency for International Devel-
opment shall, except as provided in subsection (b), 
each submit to the appropriate committees of Con-
gress a report on contract support for the operation 
for the Department of State or the United States 
Agency for International Development, as the case 
may be. 
(b) EXCEPTION.—If the total annual amount of obliga-
tions for contracts for support of a contingency operation 
otherwise described by subsection (a) do not exceed 
$250,000,000 in an annual reporting period otherwise cov-
ered by that subsection, no report shall be required on the 
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operation under that subsection for that annual reporting 
period. 
(c) ELEMENTS.— 
(1) IN
GENERAL.—Each report of an agency 
under subsection (a) regarding an operation shall set 
forth the following: 
(A) A description and assessment of the pol-
icy, planning, management, and oversight of the 
agency with respect to contract support for the 
operation. 
(B) With respect to contracts entered into in 
connection with the operation: 
(i) The total number of contracts en-
tered into as of the date of such report. 
(ii) The total number of such contracts 
that are active as of such date. 
(iii) The total value of contracts en-
tered into as of such date. 
(iv) The total value of such contracts 
that are active as of such date. 
(v) An identification of the extent to 
which the contracts entered into as of such 
date were entered into using competitive 
procedures. 
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(vi) The total number of contractor 
personnel working under contracts entered 
into as of the end of each calendar quarter 
during the one-year period ending on such 
date. 
(vii) The total number of contractor 
personnel performing security functions 
under contracts entered into as of the end of 
each calendar quarter during the one-year 
period ending on such date. 
(viii) The total number of contractor 
personnel killed or wounded under any con-
tracts entered into. 
(C) The sources of information and data 
used to prepare the portion of such report re-
quired by subparagraph (B). 
(D) A description of any known limitations 
of the information or data reported under sub-
paragraph (B), including known limitations in 
methodology or data sources. 
(E) Any plans for strengthening collection, 
coordination, and sharing of information on con-
tracts entered into in connection with the oper-
ation. 
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(2) ESTIMATES.—In determining the total num-
ber of contractor personnel working under contracts 
for purposes of paragraph (1)(B)(vi), the Secretary or 
the Administrator may use estimates for any category 
of contractor personnel for which such Secretary or 
the Administrator, as the case may be, determines it 
is not feasible to provide an actual count. Each report 
under subsection (a) shall fully disclose the extent to 
which such an estimate is used in lieu of an actual 
count. 
(d) PROHIBITION ON PREPARATION BY CONTRACTOR 
PERSONNEL.—A report under subsection (a) may not be 
prepared by contractor personnel. 
(e) USE OF EXISTING REPORTS FOR CERTAIN CONTIN-
GENCY OPERATIONS.—The requirement to submit reports 
under subsection (a) on a contingency operation in Iraq 
or Afghanistan may be met by the submittal of the reports 
required by section 863 of the National Defense Authoriza-
tion Act for Fiscal Year 2008 (10 U.S.C. 2302 note). 
(f) APPROPRIATE COMMITTEES
OF CONGRESS DE-
FINED.—In this section, the term ‘‘appropriate committees 
of Congress’’ means— 
(1) the Committee on Armed Services, the Com-
mittee on Foreign Relations, the Committee on Home-
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land Security and Governmental Affairs, and the 
Committee on Appropriations of the Senate; and 
(2) the Committee on Armed Services, the Com-
mittee on Foreign Affairs, the Committee on Over-
sight and Government Reform, and the Committee on 
Appropriations of the House of Representatives. 
SEC. 863. INCLUSION OF CONTRACT SUPPORT IN CERTAIN 
REQUIREMENTS FOR DEPARTMENT OF DE-
FENSE 
PLANNING, 
JOINT 
PROFESSIONAL 
MILITARY EDUCATION, AND MANAGEMENT 
STRUCTURE. 
(a) READINESS REPORTING SYSTEM.—Section 117(c) 
of title 10, United States Code, is amended by adding at 
the end the following new paragraph: 
‘‘(8) Measure, on an annual basis, the capability 
of operational contract support to support current 
and anticipated wartime missions of the armed 
forces.’’. 
(b) CONTINGENCY PLANNING
AND PREPAREDNESS 
FUNCTIONS OF CJCS.—Section 153(a)(3) of such title is 
amended by adding at the end the following new subpara-
graph: 
‘‘(E) In coordination with the Under Secretary 
of Defense for Acquisition, Technology, and Logistics, 
the Secretaries of the military departments, the heads 
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‘‘(2) The standing committee shall have such on-going 
responsibilities, including planning, coordination, and de-
velopment of practices, to improve oversight of overseas con-
tingency operations as the chair considers appropriate. 
‘‘(3)(A) For the duration of any contingency operation 
that exceeds 90 days, the standing committee shall develop 
and update on an annual basis a joint-strategic plan for 
ongoing and planned oversight of the contingency operation 
by the Inspectors General specified in subsection (b) and 
designated pursuant to paragraph (1)(C), including the fol-
lowing: 
‘‘(i) Audit and available inspection plans. 
‘‘(ii) An overall assessment of such oversight, in-
cluding projects or areas (whether departmental or 
government-wide) of concern or in need of further re-
view. 
‘‘(iii) Such other matters as the Lead Inspector 
General for the contingency operation considers ap-
propriate. 
‘‘(B) Each plan under this paragraph, and any update 
of such plan, shall be made available on an Internet website 
available to the public. Each plan, and any update of such 
plan, made so available shall be made available in unclassi-
fied form. 
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‘‘(d) LEAD INSPECTOR GENERAL FOR OVERSEAS CON-
TINGENCY OPERATIONS.—(1) There shall be a lead inspec-
tor general for each overseas contingency operation that ex-
ceeds 90 days (in this section referred to as the ‘Lead In-
spector General’ for the contingency operation concerned). 
‘‘(2) The Lead Inspector General for a contingency op-
eration shall be the Inspector General of the Department 
of Defense, who shall assume such role not later than 90 
days after the commencement or designation of the military 
operation concerned as a contingency operation. 
‘‘(e) RESPONSIBILITIES OF LEAD INSPECTOR GEN-
ERAL.—(1) The Lead Inspector General for an overseas con-
tingency operation shall have the following responsibilities: 
‘‘(A) To conduct oversight, in full coordination 
with the other Inspectors General specified in sub-
section (b), over all aspects of the contingency oper-
ation and to ensure, either through joint or indi-
vidual audits, inspections, and investigations, inde-
pendent and effective oversight of all programs and 
operations of all departments and agencies in the con-
tingency operation. 
‘‘(B) To appoint, from among the offices of the 
other Inspectors General specified in subsection (b), 
an Inspector General to act as Associate Inspector 
General for the overseas contingency operation who 
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ble to the Inspectors General specified in subsection (b) 
under this Act. 
‘‘(f) REPORTS.—(1) The Lead Inspector General for an 
overseas contingency operation shall, in coordination with 
the other Inspectors General specified in subsection (b), sub-
mit to the appropriate committees of Congress on a semi- 
annual basis, and make available on an Internet website 
available to the public, a report summarizing, for the semi- 
annual period, the activities of the Lead Inspector General 
and the other Inspectors General specified in subsection (b) 
with respect to the contingency operation, including— 
‘‘(A) the status and results of audits, inspections, 
and closed investigations, and of the number of refer-
rals to the Department of Justice; 
‘‘(B) updates and changes to overall plans for the 
review of the contingency operation by inspectors gen-
eral, including plans for inspections and audits; and 
‘‘(C) the activities under programs and oper-
ations funded with amounts appropriated or other-
wise made available for the overseas contingency oper-
ation, including the information specified in para-
graph (2). 
‘‘(2) The information specified in this paragraph with 
respect to an overseas contingency operation is as follows: 
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‘‘(F) In the case of any contract, grant, agree-
ment, or other funding mechanism described in para-
graph (3) with respect to the contingency operation— 
‘‘(i) the amount of the contract, grant, 
agreement, or other funding mechanism; 
‘‘(ii) a brief discussion of the scope of the 
contract, grant, agreement, or other funding 
mechanism; 
‘‘(iii) a discussion of how the department or 
agency of the United States Government involved 
in the contract, grant, agreement, or other fund-
ing mechanism identified, and solicited offers 
from, potential individuals or entities to perform 
the contract, grant, agreement, or other funding 
mechanism, together with a list of the potential 
individuals or entities that were issued solicita-
tions for the offers; and 
‘‘(iv) the justification and approval docu-
ments on which was based the determination to 
use procedures other than procedures that pro-
vide for full and open competition. 
‘‘(3) A contract, grant, agreement, or other funding 
mechanism described in this paragraph is any major con-
tract, grant, agreement, or other funding mechanism that 
is entered into by any department or agency of the United 
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port on the suspension and debarment activities of such offi-
cial containing the information specified in subsection (c). 
(b) COVERED AGENCIES.—The agencies specified in 
this subsection are the following: 
(1) The Department of the Army. 
(2) The Department of the Navy. 
(3) The Department of the Air Force. 
(4) The Defense Logistics Agency. 
(c) COVERED INFORMATION.—The information speci-
fied in this subsection to be included in the report of a sus-
pension and debarment official under subsection (a) is the 
following: 
(1) The number of open suspension and debar-
ment cases of such official as of the date of such re-
port. 
(2) The current average processing time for sus-
pension and debarment cases. 
(3) The target goal of such official for average 
processing time for suspension and debarment pro-
posals. 
(4) If the average time required for such official 
to process suspension and debarment proposals is 
more than twice the target goal specified under para-
graph (3)— 
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