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‘‘(10) Providing programmatic guidance on nu-
clear command, control and communications sys-
tems.’’. 
(b) BUDGET AND FUNDING MATTERS.—Such section 
is further amended— 
(1) by redesignating subsection (f) as subsection 
(g); and 
(2) by inserting after subsection (e) the following 
new subsection (f): 
‘‘(f) BUDGET AND FUNDING MATTERS.—(1) The Coun-
cil shall submit to Congress each year, at the same time 
the budget of the President for the fiscal year beginning in 
such year is submitted to Congress pursuant to section 
1105(a) of title 31, a certification whether or not the 
amounts requested for the National Nuclear Security Ad-
ministration in such budget, and anticipated over the four 
fiscal years following such budget, meets nuclear stockpile 
and stockpile stewardship program requirements for such 
fiscal year and over such four fiscal years. If a member 
of the Council does not concur in a certification, the certifi-
cation shall include the reasons for the member’s non-con-
currence. 
‘‘(2) If a House of Congress adopts a bill authorizing 
or appropriating funds for the National Nuclear Security 
Administration for nuclear stockpile and stockpile steward-
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ship program activities or other activities that, as deter-
mined by the Council, provides insufficient funds for such 
activities for the period covered by such bill, the Council 
shall notify the congressional defense committees of the de-
termination.’’. 
SEC. 903. FAILURE OF THE DEPARTMENT OF DEFENSE TO 
OBTAIN AUDITS WITH AN UNQUALIFIED OPIN-
ION ON ITS FINANCIAL STATEMENTS BY FIS-
CAL YEAR 2017. 
If the Department of Defense fails to obtain an audit 
with an unqualified opinion on its financial statements for 
fiscal year 2017, the following shall take effect, effective as 
of the date of the issuance of the opinion on such audit: 
(1) REORGANIZATION OF RESPONSIBILITIES OF 
CHIEF MANAGEMENT OFFICER.— 
(A) POSITION OF CHIEF MANAGEMENT OFFI-
CER.—Section 132a of title 10, United States 
Code, is amended to read as follows: 
‘‘§ 132a. Chief Management Officer 
‘‘(a) IN GENERAL.—(1) There is a Chief Management 
Officer of the Department of Defense, appointed from civil-
ian life by the President, by and with the advice and con-
sent of the Senate. 
‘‘(2) Any individual nominated for appointment as 
Chief Management Officer shall be an individual who has— 
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‘‘(A) extensive executive level leadership and 
management experience in the public or private sec-
tor; 
‘‘(B) strong leadership skills; 
‘‘(C) a demonstrated ability to manage large and 
complex organizations; and 
‘‘(D) a proven record in achieving positive oper-
ational results. 
‘‘(b) POWERS AND DUTIES.—The Chief Management 
Officer shall perform such duties and exercise such powers 
as the Secretary of Defense may prescribe. 
‘‘(c) SERVICE AS CHIEF MANAGEMENT OFFICER.—(1) 
The Chief Management Officer is the Chief Management Of-
ficer of the Department of Defense. 
‘‘(2) In serving as the Chief Management Officer of the 
Department of Defense, the Chief Management Officer shall 
be responsible for the management and administration of 
the Department of Defense with respect to the following: 
‘‘(A) The expenditure of funds, accounting, and 
finance. 
‘‘(B) Procurement, including procurement of any 
enterprise resource planning (ERP) system and any 
information technology (IT) system that is a finan-
cial feeder system, human resources system, or logis-
tics system. 
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‘‘(C) Facilities, property, nonmilitary equip-
ment, and other resources. 
‘‘(D) Strategic planning, and annual perform-
ance planning, and identification and tracking of 
performance measures. 
‘‘(E) Internal audits and management analyses 
of the programs and activities of the Department, in-
cluding the Defense Contract Audit Agency. 
‘‘(F) Such other areas or matters as the Sec-
retary of Defense may designate. 
‘‘(3) The head of the Defense Contract Audit Agency 
shall be under the supervision of, and shall report directly 
to, the Chief Management Officer. 
‘‘(d) PRECEDENCE.—The Chief Management Officer 
takes precedence in the Department of Defense after the Sec-
retary of Defense and the Deputy Secretary of Defense.’’. 
(B) CONFORMING AMENDMENTS.— 
(i) Section 131(b) of title 10, United 
States Code, is amended— 
(I) by striking paragraph (3); 
(II) by redesignating paragraph 
(2) as paragraph (3); and 
(III) by inserting after paragraph 
(1) the following new paragraph (2): 
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‘‘(2) The Chief Management Officer of the De-
partment of Defense.’’. 
(ii) Section 132 of such title is amend-
ed— 
(I) by striking subsection (c); and 
(II) by redesignating subsections 
(d) and (e) as subsections (c) and (d), 
respectively. 
(iii) Section 133(e)(1) of such title is 
amended by striking ‘‘and the Deputy Sec-
retary of Defense’’ and inserting ‘‘, the Dep-
uty Secretary of Defense, and the Chief 
Management Officer of the Department of 
Defense’’. 
(iv) Such title is further amended by 
inserting ‘‘the Chief Management Officer of 
the Department of Defense,’’ after ‘‘the Dep-
uty Secretary of Defense,’’ each place it ap-
pears in the provisions as follows: 
(I) Section 133(e)(2). 
(II) Section 134(c). 
(v) Section 137a(d) of such title is 
amended by striking ‘‘the Secretaries of the 
military departments,’’ and all that follows 
and inserting ‘‘the Chief Management Offi-
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cer of the Department of Defense, the Secre-
taries of the military departments, and the 
Under Secretaries of Defense.’’. 
(vi) Section 138(d) of such title is 
amended by striking ‘‘the Secretaries of the 
military departments,’’ and all that follows 
through the period and inserting ‘‘the Chief 
Management Officer of the Department of 
Defense, the Secretaries of the military de-
partments, the Under Secretaries of Defense, 
and the Director of Defense Research and 
Engineering.’’. 
(C) CLERICAL AMENDMENT.—The table of 
sections at the beginning of chapter 4 of such 
title is amended by striking the item relating to 
section 132a and inserting the following new 
item: 
‘‘132a. Chief Management Officer.’’. 
(D) EXECUTIVE SCHEDULE.—Section 5313 
of title 5, United States Code, is amended by 
adding at the end the following: 
‘‘Chief Management Officer of the Department of 
Defense.’’. 
(E) REFERENCE IN LAW.—Any reference in 
any provision of law to the Chief Management 
Officer of the Department of Defense shall be 
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deemed to refer to the Chief Management Officer 
of the Department of Defense under section 132a 
of title 10, United States Code (as amended by 
this paragraph). 
(2) JURISDICTION OF DFAS.— 
(A) TRANSFER
TO
DEPARTMENT
OF
THE 
TREASURY.—Jurisdiction of the Defense Finance 
and Accounting Service (DFAS) is transferred 
from the Department of Defense to the Depart-
ment of the Treasury. 
(B) ADMINISTRATION.—The Secretary of the 
Treasury shall administer the Defense Finance 
and Accounting Service following transfer under 
this paragraph through the Financial Manage-
ment Service of the Department of the Treasury. 
(C) MEMORANDUM OF UNDERSTANDING.— 
The Secretary of Defense and the Secretary of the 
Treasury shall jointly enter into a memorandum 
of understanding regarding the transfer of juris-
diction of the Defense Finance and Accounting 
Service under this paragraph. The memorandum 
of understanding shall provide for the transfer of 
the personnel and other resources of the Service 
to the Department of the Treasury and for the 
assumption of responsibility for such personnel 
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and resources by the Department of the Treas-
ury. 
(D) CONSTRUCTION.—Nothing in this para-
graph shall be construed as terminating, alter-
ing, or revising any responsibilities or authori-
ties of the Defense Finance and Accounting Serv-
ice (other than responsibilities and authorities in 
connection with the exercise of jurisdiction of the 
Service following transfer under this paragraph). 
SEC. 904. INFORMATION FOR DEPUTY CHIEF MANAGEMENT 
OFFICER OF THE DEPARTMENT OF DEFENSE 
FROM THE MILITARY DEPARTMENTS AND DE-
FENSE AGENCIES FOR DEFENSE BUSINESS 
SYSTEM INVESTMENT REVIEWS. 
Section 2222(g) of title 10, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(3)(A) The investment management process required 
by paragraph (1) shall include requirements for the mili-
tary departments and the Defense Agencies to submit to the 
Deputy Chief Management Officer such information on cov-
ered defense business system programs as the Deputy Chief 
Management Officer shall require for the review of defense 
business system programs under the process. Such informa-
tion shall be submitted to the Deputy Chief Management 
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Officer in a standardized format established by the Deputy 
Chief Management Officer for purposes of this paragraph.’’ 
Subtitle B—Space Activities 
SEC. 911. OPERATIONALLY RESPONSIVE SPACE PROGRAM 
OFFICE. 
(a) IN GENERAL.—Subsection (a) of section 2273a of 
title 10, United States Code, is amended to read as follows: 
‘‘(a) IN GENERAL.—There is within the Air Force 
Space and Missile Systems Center of the Department of De-
fense an office known as the Operationally Responsive 
Space Program Office (in this section referred to as the ‘Of-
fice’). The facilities of the Office may not be co-located with 
the headquarters facilities of the Air Force Space and Mis-
sile Systems Center.’’. 
(b) HEAD OF OFFICE.—Subsection (b) of such section 
is amended by striking ‘‘shall be—’’ and all that follows 
and inserting ‘‘the designee of the Department of Defense 
Executive Agent for Space. The head of the Office shall re-
port to the Commander of the Air Force Space and Missile 
Systems Center.’’. 
(c) MISSION.—Subsection (c)(1) of such section is 
amended by striking ‘‘spacelift’’ and inserting ‘‘launch’’. 
(d) SENIOR ACQUISITION EXECUTIVE.—Paragraph (1) 
of subsection (e) of such section is amended to read as fol-
lows: 
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‘‘(1) The Program Executive Officer (PEO) for 
Space shall be the Acquisition Executive of the Office 
and shall provide streamlined acquisition authorities 
for projects of the Office.’’. 
(e) EXECUTIVE COMMITTEE.—Such section is further 
amended by adding at the end the following new subsection: 
‘‘(g) EXECUTIVE COMMITTEE.—(1) The Secretary of 
Defense shall establish for the Office an Executive Com-
mittee (to be known as the ‘Operationally Responsive Space 
Executive Committee’) to provide coordination, oversight, 
and approval of projects of the Office. 
‘‘(2) The Executive Committee shall consist of the offi-
cials (and their duties) as follows: 
‘‘(A) The Department of Defense Executive Agent 
for Space, who shall serve as Chair of the Executive 
Committee and provide oversight, prioritization, co-
ordination, and resources for the Office. 
‘‘(B) The Under Secretary of Defense for Acqui-
sition, Technology, and Logistics, who shall provide 
coordination and oversight of the Office and rec-
ommend funding sources for programs of the Office 
that exceed the approved program baseline. 
‘‘(C) The Commander of the United States Stra-
tegic Command, who shall validate requirements for 
systems to be acquired by the Office and participate 
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in approval of any acquisition program initiated by 
the Office. 
‘‘(D) The Commander of the Air Force Space 
Command, who shall organize, train, and equip forces 
to support the acquisition programs of the Office. 
‘‘(E) Such other officials (and their duties) as 
the Secretary of Defense considers appropriate.’’. 
(f) TRANSFER OF FISCAL YEAR 2012 FUNDS.— 
(1) IN GENERAL.—To the extent provided in ap-
propriations Acts, the Secretary of the Air Force may 
transfer from the funds described in paragraph (2), 
$60,000,000 to other, higher priority programs of the 
Air Force. 
(2) COVERED FUNDS.—The funds described in 
this paragraph are amounts authorized to be appro-
priated for fiscal year 2012 by section 201 of the Na-
tional Defense Authorization Act for Fiscal Year 2012 
(Public Law 112–81; 125 Stat. 1329) and available 
for Research, Development, Test, and Evaluation, Air 
Force, for the Weather Satellite Follow On Program 
as specified in the funding table in section 4201 of 
that Act. 
(3) EFFECT ON AUTHORIZATION AMOUNTS.—A 
transfer made from one account to another under the 
authority of this subsection shall be deemed to in-
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crease the amount authorized for the account to which 
the amount is transferred by an amount equal to the 
amount transferred. 
(4) CONSTRUCTION OF AUTHORITY.—The trans-
fer authority in this subsection is in addition to any 
other transfer authority provided in this Act. 
(5) PROGRAM PLAN.—Not later than December 
31, 2012, the Secretary shall submit to the congres-
sional defense committees a report setting forth a pro-
gram plan for higher priority programs described in 
paragraph (1). 
SEC. 912. COMMERCIAL SPACE LAUNCH COOPERATION. 
(a) IN GENERAL.—Chapter 135 of title 10, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 2275. Commercial space launch cooperation 
‘‘(a) AUTHORITY.—The Secretary of Defense may, to 
assist the Secretary of Transportation in carrying out re-
sponsibilities set forth in title 51 with respect to private 
sector involvement in commercial space activities and pub-
lic-private partnerships pertaining to space transportation 
infrastructure, take the following actions: 
‘‘(1) Maximize the use by the private sector in 
the United States of the capacity of the space trans-
portation infrastructure of the Department of Defense. 
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‘‘(2) Maximize the effectiveness and efficiency of 
the space transportation infrastructure of the Depart-
ment. 
‘‘(3) Reduce the cost of services provided by the 
Department related to space transportation infra-
structure at launch support facilities and space recov-
ery support facilities. 
‘‘(4) Encourage commercial space activities by 
enabling investment by covered entities in the space 
transportation infrastructure of the Department. 
‘‘(5) Foster cooperation between the Department 
and covered entities. 
‘‘(b) AUTHORITY FOR CONTRACTS AND OTHER AGREE-
MENTS RELATING
TO SPACE TRANSPORTATION INFRA-
STRUCTURE.—The Secretary of Defense— 
‘‘(1) may enter into a contract or other agree-
ment with a covered entity to provide to the covered 
entity support and services related to the space trans-
portation infrastructure of the Department of Defense; 
and 
‘‘(2) upon the request of that covered entity, may 
include such support and services in the space launch 
and reentry range support requirements of the De-
partment if— 
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‘‘(A) the Secretary determines that the in-
clusion of such support and services in such re-
quirements— 
‘‘(i) is in the best interest of the Fed-
eral Government; 
‘‘(ii) does not interfere with the re-
quirements of the Department; and 
‘‘(iii) does not compete with the com-
mercial space activities of other covered en-
tities, unless that competition is in the na-
tional security interests of the United 
States; and 
‘‘(B) any commercial requirement included 
in that contract or other agreement has full non- 
Federal funding before the execution of the con-
tract or other agreement. 
‘‘(c) CONTRIBUTIONS.—(1) The Secretary of Defense 
may enter into contracts or other agreements with covered 
entities on a cooperative and voluntary basis to accept con-
tributions of funds, services, and equipment to carry out 
this section. 
‘‘(2) Any funds, services, or equipment accepted by the 
Secretary under this subsection— 
‘‘(A) may be used only for the objectives specified 
in this section in accordance with terms of use set 
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forth in the contract or other agreement entered into 
under this subsection; and 
‘‘(B) shall be managed by the Secretary in ac-
cordance with regulations of the Department of De-
fense. 
‘‘(3) A contract or other agreement entered into under 
this subsection with a covered entity— 
‘‘(A) shall address the terms of use, ownership, 
and disposition of the funds, services, or equipment 
contributed pursuant to the contract or other agree-
ment; and 
‘‘(B) shall include a provision that the covered 
entity will not recover the costs of its contribution 
through any other contract or agreement with the 
United States. 
‘‘(d) DEFENSE COOPERATION SPACE LAUNCH AC-
COUNT.—(1) There is established on the books of the Treas-
ury a special account to be known as the ‘Defense Coopera-
tion Space Launch Account’. 
‘‘(2) Funds received by the Secretary of Defense under 
subsection (c) shall be credited to the Defense Cooperation 
Space Launch Account. 
‘‘(3) Amounts in the Department Defense Cooperation 
Space Launch Account shall be available, to the extent pro-
vided in appropriation Acts, for costs incurred by the De-
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partment of Defense under subsection (c). Funds in the Ac-
count shall remain available until expended. 
‘‘(e) ANNUAL REPORT.—Not later than January 31 
each year, the Secretary of Defense shall submit to the con-
gressional defense committees a report on the funds, services, 
and equipment accepted and used by the Secretary under 
this section during the previous fiscal year. 
‘‘(f) REGULATIONS.—The Secretary of Defense shall 
prescribe regulations to carry out this section. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) COVERED ENTITY.—The term ‘covered enti-
ty’ means a non-Federal entity that— 
‘‘(A) is organized under the laws of the 
United States or of any jurisdiction within the 
United States; and 
‘‘(B) is engaged in commercial space activi-
ties. 
‘‘(2) LAUNCH SUPPORT FACILITIES.—The term 
‘launch support facilities’ has the meaning given that 
term in section 50501(7) of title 51. 
‘‘(3) SPACE RECOVERY SUPPORT FACILITIES.— 
The term ‘space recovery support facilities’ has the 
meaning given that term in section 50501(11) of title 
51. 
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‘‘(4) 
SPACE
TRANSPORTATION
INFRASTRUC-
TURE.—The term ‘space transportation infrastruc-
ture’ has the meaning given that term in section 
50501(12) of title 51.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 135 of such title is amended by 
adding at the end the following new item: 
‘‘2275. Commercial space launch cooperation.’’. 
SEC. 913. REPORTS ON INTEGRATION OF ACQUISITION AND 
CAPABILITY DELIVERY SCHEDULES FOR COM-
PONENTS FOR MAJOR SATELLITE ACQUISI-
TION PROGRAMS AND FUNDING FOR SUCH 
PROGRAMS. 
(a) IN GENERAL.—Chapter 135 of title 10, United 
States Code, as amended by section 912 of this Act, is fur-
ther amended by adding at the end the following new sec-
tion: 
‘‘§ 2276. Reports on integration of acquisition and ca-
pability delivery schedules for components 
for major satellite acquisition programs 
and funding for such programs 
‘‘(a) REPORTS REQUIRED.—The Under Secretary of 
Defense for Acquisition, Technology, and Logistics shall 
submit to the congressional defense committees a report on 
each major satellite acquisition program in accordance with 
subsection (d) that assesses— 
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‘‘(1) the integration of the schedules for the ac-
quisition and the delivery of the capabilities of the 
components for the program; and 
‘‘(2) funding for the program. 
‘‘(b) ELEMENTS.—Each report required by subsection 
(a) with respect to a major satellite acquisition program 
shall include the following: 
‘‘(1) The amount of funding approved for the 
program and for each related program that is nec-
essary for the operational capability of the program. 
‘‘(2) The dates by which the program is antici-
pated to reach initial and full operational capability. 
‘‘(3) An assessment of the extent to which the 
schedules for the acquisition and the delivery of the 
capabilities of the components for the program or any 
related program referred to in paragraph (1) are in-
tegrated. 
‘‘(4) If the Under Secretary determines pursuant 
to the assessment under paragraph (3) that the sched-
ules for the acquisition and the delivery of the capa-
bilities of the components for the program, or a re-
lated program referred to in paragraph (1), provide 
for the acquisition or the delivery of the capabilities 
of at least two of the three components for the pro-
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