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‘‘(b) ANNUAL REPORT.—At the conclusion of each 
fiscal year, the Secretary of Defense shall submit to the 
Committee for Purchase From People Who Are Blind or 
Severely Disabled (established under section 8502 of title 
41) a report on the progress toward attaining the goal 
established under subsection (a) with respect to such fiscal 
year. The report shall include— 
‘‘(1) if the goal was not achieved, a plan to 
achieve the goal in the next fiscal year; and 
‘‘(2) if the goal was achieved, a strategy to ex-
ceed the goal in the next fiscal year.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 2323a the following new 
item: 
‘‘2323b. Contract goal for the AbilityOne program.’’. 
SEC. 822. INCREASED MICRO-PURCHASE THRESHOLD AP-
PLICABLE TO DEPARTMENT OF DEFENSE 
PROCUREMENTS. 
(a) IN GENERAL.—Section 2338 of title 10, United 
States Code, is amended— 
(1) by striking ‘‘Notwithstanding subsection (a) 
of section 1902 of title 41, the’’ and inserting 
‘‘The’’; and 
(2) 
by 
striking 
‘‘$5,000’’ 
and 
inserting 
‘‘$10,000’’. 
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(b) CONFORMING AMENDMENTS.— 
(1) REPEAL OF MICRO-PURCHASE THRESHOLD 
FOR
CERTAIN
DEPARTMENT
OF
DEFENSE
ACTIVI-
TIES.— 
(A) IN GENERAL.—Section 2339 of title 
10, United States Code, is repealed. 
(B) CLERICAL AMENDMENT.—The table of 
sections at the beginning of chapter 137 of such 
title is amended by striking the item relating to 
section 2339. 
(2) MICRO-PURCHASE
THRESHOLD
FOR
NON- 
DEPARTMENT
OF
DEFENSE
PURCHASES.—Section 
1902(a)(1) of title 41, United States Code, is 
amended by striking ‘‘sections 2338 and 2339 of 
title 10 and’’. 
SEC. 823. PREFERENCE FOR OFFERORS EMPLOYING VET-
ERANS. 
(a) IN GENERAL.—Chapter 137 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 2339a. Preference for offerors employing veterans 
‘‘(a) PREFERENCE.—In awarding a contract for the 
procurement of goods or services for the Department of 
Defense, the head of an agency may establish a preference 
for offerors that employ veterans on a full-time basis. The 
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Secretary of Defense shall determine the criteria for use 
of such preference. 
‘‘(b) CONGRESSIONAL NOTIFICATION.—Prior to es-
tablishing the preference described in subsection (a), the 
Secretary of Defense shall provide a briefing to the Com-
mittee on Armed Services of the House of Representatives 
on— 
‘‘(1) a plan for implementing such preference, 
including— 
‘‘(A) penalties for an offeror that willfully 
and intentionally misrepresents the veteran sta-
tus of the employees of the offeror in a bid sub-
mitted under subsection (a); and 
‘‘(B) reporting on use of such preference; 
and 
‘‘(2) the process for assessing and verifying of-
feror compliance with regulations relating to equal 
opportunity for veterans requirements.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 2339 the following new 
item: 
‘‘2339a. Preference for offerors employing veterans.’’. 
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SEC. 825. DATA COLLECTION AND INVENTORY FOR SERV-
ICES CONTRACTS. 
Section 2330a of title 10, United States Code, is 
amended— 
(1) in subsection (a)— 
(A) by striking ‘‘$3,000,000’’ and inserting 
‘‘the simplified acquisition threshold’’; 
(B) by striking ‘‘in the following service 
acquisition portfolio groups:’’ and inserting ‘‘in 
any service acquisition portfolio group.’’; and 
(C) by striking paragraphs (1) through 
(4); 
(2) in subsection (c)(1)— 
(A) by striking ‘‘staff augmentation con-
tracts’’ and inserting ‘‘services contracts’’; and 
(B) by striking ‘‘Under Secretary of De-
fense for Acquisition, Technology, and Logis-
tics’’ each place it appears and inserting 
‘‘Under Secretary of Defense for Acquisition 
and Sustainment’’; and 
(3) in subsection (h)— 
(A) by striking paragraph (6); and 
(B) by redesignating paragraphs (7) and 
(8) as paragraphs (6) and (7), respectively. 
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SEC. 826. COMPETITION REQUIREMENTS FOR PURCHASES 
FROM FEDERAL PRISON INDUSTRIES. 
(a) COMPETITION REQUIREMENTS FOR PURCHASES 
FROM FEDERAL PRISON INDUSTRIES.—Subsections (a) 
and (b) of section 2410n of title 10, United States Code, 
are amended to read as follows: 
‘‘(a) MARKET
RESEARCH.—Before purchasing a 
product listed in the latest edition of the Federal Prison 
Industries catalog published under section 4124(d) of title 
18, the Secretary of Defense shall conduct market re-
search to determine whether such product— 
‘‘(1) is comparable to products available from 
the private sector; and 
‘‘(2) best meets the needs of the Department of 
Defense in terms of price, quality, and time of deliv-
ery. 
‘‘(b) COMPETITION REQUIREMENT.—If the Secretary 
determines that a Federal Prison Industries product is not 
comparable to products available from the private sector 
and does not best meet the needs of the Department of 
Defense in terms of price, quality, or time of delivery pur-
suant to subsection (a), the Secretary shall use competitive 
procedures or make an individual purchase under a mul-
tiple award contract for the procurement of the product. 
In conducting such a competition or making such a pur-
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chase, the Secretary shall consider a timely offer from 
Federal Prison Industries.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect 60 days after the date of 
the enactment of this Act. 
SEC. 827. REQUIREMENT FOR A FAIR AND REASONABLE 
PRICE FOR TECHNICAL DATA BEFORE DE-
VELOPMENT OR PRODUCTION OF MAJOR 
WEAPON SYSTEMS. 
Section 2439 of title 10, United States Code, is 
amended— 
(1) by inserting ‘‘, to the maximum extent prac-
ticable,’’ after ‘‘shall ensure’’; and 
(2) by inserting ‘‘fair and reasonable’’ after 
‘‘negotiates a’’. 
SEC. 828. REVISIONS IN AUTHORITY RELATING TO PRO-
GRAM COST TARGETS AND FIELDING TAR-
GETS FOR MAJOR DEFENSE ACQUISITION 
PROGRAMS. 
(a) REVISIONS IN AUTHORITY RELATING TO PRO-
GRAM COST AND FIELDING TARGETS.—Section 2448a of 
title 10, United States Code, is amended— 
(1) in subsection (a), by striking ‘‘the Secretary 
of Defense’’ and inserting ‘‘the appropriate Sec-
retary’’; 
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(2) by striking subsection (b); and 
(3) by redesignating subsection (c) as sub-
section (b) and adding at the end of that subsection 
the following new paragraph: 
‘‘(3) The term ‘appropriate Secretary’, with re-
spect to a major defense acquisition program, 
means— 
‘‘(A) the Secretary of the military depart-
ment that is managing the program; or 
‘‘(B) in the case of a program for which an 
alternate milestone decision authority is des-
ignated under section 2430(d)(2) of this title, 
the Secretary of Defense.’’. 
(b) CONFORMING AMENDMENTS.—Such title is fur-
ther amended— 
(1) in section 2366a(c)(1)(A) by striking ‘‘by 
the Secretary of Defense’’; and 
(2) in section 2366b— 
(A) in subsection (a)(3)(D), by striking 
‘‘Secretary of Defense’’ and inserting ‘‘appro-
priate Secretary (as defined in such section 
2448a)’’; and 
(B) in subsection (c)(1)(A), by striking 
‘‘by the Secretary of Defense’’. 
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SEC. 829. REVISION OF TIMELINE FOR USE OF THE RAPID 
FIELDING PATHWAY FOR ACQUISITION PRO-
GRAMS. 
Section 804(b)(2) of the National Defense Authoriza-
tion Act for Fiscal Year 2016 (Public Law 114–92; 10 
U.S.C. 2302 note) is amended by striking ‘‘complete field-
ing within five years’’ and inserting ‘‘complete low-rate 
initial production (as described under section 2400 of title 
10, United States Code) within five years’’. 
SEC. 830. CLARIFICATION OF SERVICES CONTRACTING 
DEFINITIONS. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Defense shall revise the 
Defense Federal Acquisition Regulation Supplement to 
clarify the definitions of and relationships between terms 
related to services contracts, including the appropriate use 
of personal services contracts and nonpersonal services 
contracts, and the responsibilities of individuals in the ac-
quisition workforce with respect to such contracts. 
Subtitle C—Provisions Relating to 
Commercial Items 
SEC. 831. REVISION OF DEFINITION OF COMMERCIAL ITEM 
FOR PURPOSES OF FEDERAL ACQUISITION 
STATUTES. 
(a) DEFINITIONS
IN CHAPTER 1 OF TITLE 41, 
UNITED STATES CODE.— 
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(1) SEPARATION OF ‘‘COMMERCIAL ITEM’’ DEF-
INITION INTO DEFINITIONS OF ‘‘COMMERCIAL PROD-
UCT’’ AND ‘‘COMMERCIAL SERVICE’’.—Chapter 1 of 
title 41, United States Code, is amended by striking 
section 103 and inserting the following new sections: 
‘‘§ 103. Commercial product 
‘‘In this subtitle, the term ‘commercial product’ 
means any of the following: 
‘‘(1) A product, other than real property, 
that— 
‘‘(A) is of a type customarily used by the 
general public or by nongovernmental entities 
for purposes other than governmental purposes; 
and 
‘‘(B) has been sold, leased, or licensed, or 
offered for sale, lease, or license, to the general 
public. 
‘‘(2) A product that— 
‘‘(A) evolved from a product described in 
paragraph (1) through advances in technology 
or performance; and 
‘‘(B) is not yet available in the commercial 
marketplace but will be available in the com-
mercial marketplace in time to satisfy the deliv-
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