316 
(B) determine the extent to which open sys-
tems approaches should be addressed in analysis 
of alternatives, acquisition strategies, system en-
gineering plans, and life cycle sustainment 
plans; and 
(C) ensure that increments of acquisition 
programs consider the extent to which the incre-
ment will implement open systems approaches as 
a whole. 
(3) DEADLINE
FOR
REVIEW.—The review re-
quired in this subsection shall be completed no later 
than 180 days after the date of the enactment of this 
Act. 
(c) TREATMENT
OF ONGOING
AND LEGACY PRO-
GRAMS.— 
(1) REPORT REQUIREMENT.—Not later than one 
year after the date of the enactment of this Act, the 
Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics shall submit to the Committees 
on Armed Services of the Senate and the House of 
Representatives a report covering the matters speci-
fied in paragraph (2). 
(2) MATTERS COVERED.—Subject to paragraph 
(3), the report required in this subsection shall—
317 
(A) identify all information technology sys-
tems that are in development, production, or de-
ployed status as of the date of the enactment of 
this Act, that are or were major defense acquisi-
tion programs or major automated information 
systems, and that are not using an open systems 
approach; 
(B) identify gaps in standards and archi-
tectures necessary to enable open systems ap-
proaches in the key mission areas of the Depart-
ment of Defense, as determined pursuant to the 
plan submitted under subsection (a); and 
(C) outline a process for potential conver-
sion to an open systems approach for each infor-
mation technology system identified under sub-
paragraph (A). 
(3) LIMITATIONS.—The report required in this 
subsection shall not include information technology 
systems— 
(A) having a planned increment before fis-
cal year 2021 that will result in conversion to an 
open systems approach; and 
(B) that will be in operation for fewer than 
15 years after the date of the enactment of this 
Act.
318 
(d) DEFINITIONS.—In this section: 
(1) INFORMATION TECHNOLOGY.—The term ‘‘in-
formation technology’’ has the meaning given the term 
in section 11101(6) of title 40, United States Code. 
(2) OPEN SYSTEMS APPROACH.—The term ‘‘open 
systems approach’’ means, with respect to an infor-
mation technology system, an integrated business and 
technical strategy that— 
(A) employs a modular design and uses 
widely supported and consensus-based standards 
for key interfaces; 
(B) is subjected to successful validation and 
verification tests to ensure key interfaces comply 
with widely supported and consensus-based 
standards; and 
(C) uses a system architecture that allows 
components to be added, modified, replaced, re-
moved, 
or 
supported 
by 
different 
vendors 
throughout the lifecycle of the system to afford 
opportunities for enhanced competition and in-
novation while yielding— 
(i) significant cost and schedule sav-
ings; and 
(ii) increased interoperability.
319 
SEC. 802. RECHARACTERIZATION OF CHANGES TO MAJOR 
AUTOMATED 
INFORMATION 
SYSTEM 
PRO-
GRAMS. 
(a) ADDITION TO COVERED DETERMINATION OF A SIG-
NIFICANT CHANGE.—Subsection (c)(2) of section 2445c of 
title 10, United States Code, is amended— 
(1) in subparagraph (B), by striking ‘‘; or’’ and 
inserting a semicolon; 
(2) in subparagraph (C), by striking the period 
at the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(D) the automated information system or 
information technology investment failed to 
achieve a full deployment decision within five 
years after the Milestone A decision for the pro-
gram or, if there was no Milestone A decision, 
the date when the preferred alternative is selected 
for the program (excluding any time during 
which program activity is delayed as a result of 
a bid protest).’’. 
(b) REMOVAL
OF COVERED DETERMINATION
OF
A 
CRITICAL CHANGE.—Subsection (d)(3) of such section is 
amended— 
(1) by striking subparagraph (A); and
320 
(2) by redesignating subparagraphs (B), (C), 
and (D) as subparagraphs (A), (B), and (C), respec-
tively. 
(c) TECHNICAL AMENDMENT
FOR CLARITY.—Sub-
section (d)(2) of such section is amended by striking ‘‘(A) 
is primarily due to an extension of a program, and (B) 
involves’’ and inserting ‘‘are primarily due to an extension 
of a program and involve’’. 
SEC. 803. AMENDMENTS RELATING TO DEFENSE BUSINESS 
SYSTEMS. 
(a) EXCLUSION OF CERTAIN INFORMATION SYSTEMS 
FROM DEFINITION OF DEFENSE BUSINESS SYSTEM.—Sub-
section (j)(1) of section 2222 of title 10, United States Code, 
is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’; 
(2) by striking ‘‘, other than a national security 
system,’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) The term does not include— 
‘‘(i) a national security system; or 
‘‘(ii) an information system used exclusively 
by and within the defense commissary system or 
the exchange system or other instrumentality of 
the Department of Defense conducted for the mo-
321 
rale, welfare, and recreation of members of the 
armed forces using nonappropriated funds.’’. 
(b) BUSINESS PROCESS MAPPING REQUIREMENT.— 
Section 2222 of such title is further amended— 
(1) in subsection (a)(1)(A), by inserting ‘‘, in-
cluding business process mapping,’’ after ‘‘re-engi-
neering efforts’’; and 
(2) in subsection (j), by adding at the end the 
following new paragraph: 
‘‘(6) The term ‘business process mapping’ means 
a procedure in which the steps in a business process 
are clarified and documented in both written form 
and in a flow chart.’’. 
SEC. 804. REPORT ON IMPLEMENTATION OF ACQUISITION 
PROCESS FOR INFORMATION TECHNOLOGY 
SYSTEMS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Under Secretary of 
Defense for Acquisition, Technology and Logistics shall sub-
mit to the congressional defense committees a report on the 
implementation of the acquisition process for information 
technology systems required by section 804 of the National 
Defense Authorization Act for Fiscal Year 2010 (Public 
Law 111–84; 123 Stat. 2402; 10 U.S.C. 2225 note).
322 
(b) ELEMENTS.—The report required under subsection 
(a) shall, at a minimum, include the following elements: 
(1) The applicable regulations, instructions, or 
policies implementing the acquisition process. 
(2) With respect to the criteria established for 
such process in section 804(a) of such Act— 
(A) an explanation for any criteria not yet 
implemented; 
(B) a schedule for the implementation of 
any criteria not yet implemented; and 
(C) an explanation for any proposed devi-
ation from the criteria. 
(3) Identification of any categories of informa-
tion technology acquisitions to which the acquisition 
process will not apply. 
(4) Recommendations for any legislation that 
may be required to implement the remaining criteria 
of the acquisition process.
323 
Subtitle B—Amendments to General 
Contracting Authorities, Proce-
dures, and Limitations 
SEC. 811. EXTENSION AND MODIFICATION OF CONTRACT 
AUTHORITY FOR ADVANCED COMPONENT DE-
VELOPMENT AND PROTOTYPE UNITS. 
Section 819 of the National Defense Authorization Act 
for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 2409; 
10 U.S.C. 2302 note) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘ad-
vanced component development or prototype of 
technology’’ and inserting ‘‘advanced component 
development, prototype, or initial production of 
technology’’; and 
(B) in paragraph (2), by striking ‘‘proto-
type items’’ and inserting ‘‘items’’; and 
(2) in subsection (b)— 
(A) by redesignating paragraph (4) as 
paragraph (5); 
(B) by inserting after paragraph (3) the fol-
lowing new paragraph (4): 
‘‘(4) APPLICABILITY.—The authority provided in 
subsection (a) applies only to the Secretary of De-
324 
fense, the Secretary of the Army, the Secretary of the 
Navy, and the Secretary of the Air Force.’’; and 
(C) in paragraph (5), as so redesignated, by 
striking ‘‘September 30, 2014’’ and inserting 
‘‘September 30, 2019’’. 
SEC. 812. AMENDMENTS RELATING TO AUTHORITY OF THE 
DEFENSE ADVANCED RESEARCH PROJECTS 
AGENCY TO CARRY OUT CERTAIN PROTOTYPE 
PROJECTS. 
(a) AMENDMENT RELATING TO AUTHORITY.—Section 
845(a)(1) of Public Law 103–160 (10 U.S.C. 2371 note) 
is amended by striking ‘‘weapons or weapon systems pro-
posed to be acquired or developed by the Department of De-
fense, or to improvement of weapons or weapon systems in 
use by the Armed Forces’’ and inserting the following: ‘‘en-
hancing the mission effectiveness of military personnel and 
the supporting platforms, systems, components, or materials 
proposed to be acquired or developed by the Department of 
Defense, or to improvement of platforms, systems, compo-
nents, or materials in use by the Armed Forces’’. 
(b) AMENDMENTS RELATING TO SMALL BUSINESS.— 
Section 845 of Public Law 103–160 (10 U.S.C. 2371 note) 
is amended— 
(1) in subsection (d)(1)(B), by inserting ‘‘or 
small business’’ after ‘‘defense contractor’’; and
326 
(4) in subsection (e), by striking ‘‘2014’’ and in-
serting ‘‘2015’’; and 
(5) by adding at the end the following new sub-
section: 
‘‘(f) USE OF OTHER DATA.—For purposes of compli-
ance with subparagraphs (A) and (B) of subsection (c)(2), 
the Secretaries of the military departments and the heads 
of the Defense Agencies may use other available sources of 
data, such as advisory and assistance services information 
collected for purposes of the annual budget submission of 
the Department of Defense, to corroborate data from the an-
nual inventory of contractor services required in section 
2330a of title 10, United States Code. Any discrepancy 
identified between the inventory data and the data from 
other available sources shall be resolved and reported to the 
congressional defense committees.’’. 
SEC. 814. IMPROVEMENT IN DEFENSE DESIGN-BUILD CON-
STRUCTION PROCESS. 
Section 2305a of title 10, United States Code, is 
amended by striking the second sentence of subsection (d) 
and inserting the following: ‘‘If the contract value exceeds 
$4,000,000, the maximum number specified in the solicita-
tion shall not exceed 5 unless the head of the contracting 
activity, delegable to a level no lower than the senior con-
tracting official within the contracting activity, approves
327 
the contracting officer’s justification with respect to an in-
dividual solicitation that a number greater than 5 is in 
the Federal Government’s interest. The contracting officer 
shall provide written documentation of how a maximum 
number exceeding 5 is consistent with the purposes and ob-
jectives of the two-phase selection procedures.’’. 
SEC. 815. PERMANENT AUTHORITY FOR USE OF SIMPLIFIED 
ACQUISITION 
PROCEDURES 
FOR 
CERTAIN 
COMMERCIAL ITEMS. 
Section 4202 of the Clinger-Cohen Act of 1996 (divi-
sion D of Public Law 104–106; 10 U.S.C. 2304 note) is 
amended by striking subsection (e). 
SEC. 816. RESTATEMENT AND REVISION OF REQUIREMENTS 
APPLICABLE TO MULTIYEAR DEFENSE ACQUI-
SITIONS TO BE SPECIFICALLY AUTHORIZED 
BY LAW. 
(a) IN GENERAL.—Subsection (i) of section 2306b of 
title 10, United States Code, is amended to read as follows: 
‘‘(i) DEFENSE ACQUISITIONS SPECIFICALLY AUTHOR-
IZED BY LAW.—(1) In the case of the Department of De-
fense, a multiyear contract in an amount equal to or great-
er than $500,000,000 may not be entered into under this 
section unless the contract is specifically authorized by law 
in an Act other than an appropriations Act.
328 
‘‘(2) In submitting a request for a specific authoriza-
tion by law to carry out a defense acquisition program 
using multiyear contract authority under this section, the 
Secretary of Defense shall include in the request the fol-
lowing: 
‘‘(A) A report containing preliminary findings 
of the agency head required in paragraphs (1) 
through (6) of subsection (a), together with the basis 
for such findings. 
‘‘(B) Confirmation that the preliminary findings 
of the agency head under subparagraph (A) were 
made after the completion of a cost analysis per-
formed by the Director of Cost Assessment and Pro-
gram Evaluation for the purpose of section 2334(e)(1) 
of this title, and that the analysis supports those pre-
liminary findings. 
‘‘(3) A multiyear contract may not be entered into 
under this section for a defense acquisition program that 
has been specifically authorized by law to be carried out 
using multiyear contract authority unless the Secretary of 
Defense certifies in writing, not later than 30 days before 
entry into the contract, that each of the following conditions 
is satisfied: 
‘‘(A) The Secretary has determined that each of 
the requirements in paragraphs (1) through (6) of
329 
subsection (a) will be met by such contract and has 
provided the basis for such determination to the con-
gressional defense committees. 
‘‘(B) The Secretary’s determination under sub-
paragraph (A) was made after completion of a cost 
analysis conducted on the basis of section 2334(e)(2) 
of this title, and the analysis supports the determina-
tion. 
‘‘(C) The system being acquired pursuant to such 
contract has not been determined to have experienced 
cost growth in excess of the critical cost growth thresh-
old pursuant to section 2433(d) of this title within 5 
years prior to the date the Secretary anticipates such 
contract (or a contract for advance procurement en-
tered into consistent with the authorization for such 
contract) will be awarded. 
‘‘(D) A sufficient number of end items of the sys-
tem being acquired under such contract have been de-
livered at or within the most current estimates of the 
program acquisition unit cost or procurement unit 
cost for such system to determine that current esti-
mates of such unit costs are realistic. 
‘‘(E) During the fiscal year in which such con-
tract is to be awarded, sufficient funds will be avail-
able to perform the contract in such fiscal year, and
330 
the future-years defense program for such fiscal year 
will include the funding required to execute the pro-
gram without cancellation. 
‘‘(F) The contract is a fixed price type contract. 
‘‘(G) The proposed multiyear contract provides 
for production at not less than minimum economic 
rates given the existing tooling and facilities. 
‘‘(4) If for any fiscal year a multiyear contract to be 
entered into under this section is authorized by law for a 
particular procurement program and that authorization is 
subject to certain conditions established by law (including 
a condition as to cost savings to be achieved under the 
multiyear contract in comparison to specified other con-
tracts) and if it appears (after negotiations with contrac-
tors) that such savings cannot be achieved, but that substan-
tial savings could nevertheless be achieved through the use 
of a multiyear contract rather than specified other con-
tracts, the President may submit to Congress a request for 
relief from the specified cost savings that must be achieved 
through multiyear contracting for that program. Any such 
request by the President shall include details about the re-
quest for a multiyear contract, including details about the 
negotiated contract terms and conditions. 
‘‘(5)(A) The Secretary may obligate funds for procure-
ment of an end item under a multiyear contract for the
331 
purchase of property only for procurement of a complete 
and usable end item. 
‘‘(B) The Secretary may obligate funds appropriated 
for any fiscal year for advance procurement under a con-
tract for the purchase of property only for the procurement 
of those long-lead items necessary in order to meet a 
planned delivery schedule for complete major end items that 
are programmed under the contract to be acquired with 
funds appropriated for a subsequent fiscal year (including 
an economic order quantity of such long-lead items when 
authorized by law). 
‘‘(6) The Secretary may make the certification under 
paragraph (3) notwithstanding the fact that one or more 
of the conditions of such certification are not met, if the 
Secretary determines that, due to exceptional cir-
cumstances, proceeding with a multiyear contract under 
this section is in the best interest of the Department of De-
fense and the Secretary provides the basis for such deter-
mination with the certification. 
‘‘(7) The Secretary may not delegate the authority to 
make the certification under paragraph (3) or the deter-
mination under paragraph (6) to an official below the level 
of Under Secretary of Defense for Acquisition, Technology, 
and Logistics.’’.
332 
(b) CONFORMING AMENDMENT.—Subsection (a)(7) of 
such section is amended by striking ‘‘subparagraphs (C) 
through (F) of paragraph (1) of subsection (i)’’ and insert-
ing ‘‘subparagraphs (C) through (F) of subsection (i)(3)’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the date of the enactment of this 
Act, and shall apply with respect to requests for specific 
authorization by law to carry out defense acquisition pro-
grams using multiyear contract authority that are made 
on or after that date. 
SEC. 817. SOURCING REQUIREMENTS RELATED TO AVOID-
ING COUNTERFEIT ELECTRONIC PARTS. 
Section 818(c)(3) of the National Defense Authoriza-
tion Act for Fiscal Year 2012 (Public Law 112–81; 125 
Stat. 1495; 10 U.S.C. 2302 note) is amended— 
(1) in subparagraph (A)— 
(A) by striking ‘‘, whenever possible,’’; 
(B) in clause (i)— 
(i) by striking ‘‘trusted suppliers’’ and 
inserting ‘‘suppliers identified as trusted 
suppliers in accordance with regulations 
issued pursuant to subparagraph (C) or 
(D)’’; and 
(ii) by striking ‘‘; and’’ and inserting 
a semicolon;
333 
(C) in clause (ii), by striking ‘‘trusted sup-
pliers;’’ and inserting ‘‘suppliers identified as 
trusted suppliers in accordance with regulations 
issued pursuant to subparagraph (C) or (D); 
and’’; and 
(D) by adding at the end the following new 
clause: 
‘‘(iii) obtain electronic parts from al-
ternate suppliers if such parts are not 
available from original manufacturers, their 
authorized dealers, or suppliers identified as 
trusted suppliers in accordance with regula-
tions prescribed pursuant to subparagraph 
(C) or (D);’’; 
(2) in subparagraph (B)— 
(A) by inserting ‘‘for’’ before ‘‘inspection’’; 
and 
(B) by striking ‘‘subparagraph (A)’’ and in-
serting ‘‘clause (i) or (ii) of subparagraph (A), 
if obtaining the electronic parts in accordance 
with such clauses is not possible’’; and 
(3) in subparagraph (C), by striking ‘‘identify 
trusted suppliers that have appropriate policies’’ and 
inserting ‘‘identify as trusted suppliers those that 
have appropriate policies’’.
334 
SEC. 818. AMENDMENTS TO PROOF OF CONCEPT COMMER-
CIALIZATION PILOT PROGRAM. 
(a) AUTHORITY FOR SECRETARIES OF MILITARY DE-
PARTMENTS TO CARRY OUT PILOT.—Section 1603(a) of the 
National Defense Authorization Act for Fiscal Year 2014 
(Public Law 113–66; 127 Stat. 944; 10 U.S.C. 2359 note) 
is amended by inserting after ‘‘Engineering’’ the following: 
‘‘and the Secretary of each military department’’. 
(b) REVIEW BOARD REVISIONS.— 
(1) Section 1603(c)(3)(B)(i) of such Act is 
amended to read as follows: 
‘‘(i) rigorous review of commercializa-
tion potential or military utility of tech-
nologies, including through use of outside 
expertise;’’. 
(2) Section 1603(d)(1) of such Act is amended by 
striking ‘‘, including incentives and activities under-
taken by review board experts’’. 
(c) INCREASE
IN
AMOUNT
OF
AWARDS.—Section 
1603(c)(5)(B)(i) of such Act is amended by striking 
‘‘$500,000’’ and inserting ‘‘$1,000,000’’. 
(d) AUTHORITY
FOR
USE
OF
BASIC
RESEARCH 
FUNDS.—Section 1603(f) of such Act is amended— 
(1) by inserting ‘‘AND USE OF FUNDS’’ after 
‘‘LIMITATION’’; and
335 
(2) by adding at the end the following: ‘‘The Sec-
retary of a military department may use basic re-
search funds, or other funds considered appropriate 
by the Secretary, to conduct the pilot program within 
the military department concerned.’’ 
(e) ONE-YEAR EXTENSION.—Section 1603(g) of such 
Act is amended by striking ‘‘2018’’ and inserting ‘‘2019’’. 
Subtitle C—Industrial Base Matters 
SEC. 821. TEMPORARY EXTENSION OF AND AMENDMENTS 
TO TEST PROGRAM FOR NEGOTIATION OF 
COMPREHENSIVE SMALL BUSINESS SUBCON-
TRACTING PLANS. 
(a) EXTENSION.—Subsection (e) of section 834 of the 
National Defense Authorization Act for Fiscal Years 1990 
and 1991 (15 U.S.C. 637 note) is amended by striking ‘‘De-
cember 31, 2014’’ and inserting ‘‘December 31, 2017’’. 
(b) ADDITIONAL REQUIREMENTS FOR COMPREHEN-
SIVE SUBCONTRACTING PLANS.—Subsection (b) of section 
834 of such Act is amended— 
(1) in paragraph (1), by striking ‘‘paragraph 
(3)’’ and inserting ‘‘paragraph (4)’’; 
(2) by redesignating paragraph (3) as para-
graph (4), and in that paragraph by striking 
‘‘$5,000,000’’ and inserting ‘‘$100,000,000’’; and
336 
(3) by inserting after paragraph (2) the fol-
lowing new paragraph (3): 
‘‘(3) Each comprehensive subcontracting plan of a con-
tractor shall require that the contractor report to the Sec-
retary of Defense on a semi-annual basis the following in-
formation: 
‘‘(A) The amount of first-tier subcontract dollars 
awarded during the six-month period covered by the 
report to covered small business concerns, with the in-
formation set forth separately— 
‘‘(i) by North American Industrial Classi-
fication System code; 
‘‘(ii) by major defense acquisition program, 
as defined in section 2430(a) of title 10, United 
States Code; 
‘‘(iii) by contract, if the contract is for the 
maintenance, overhaul, repair, servicing, reha-
bilitation, salvage, modernization, or modifica-
tion of supplies, systems, or equipment and the 
total value of the contract, including options, ex-
ceeds $100,000,000; and 
‘‘(iv) by military department. 
‘‘(B) The total number of subcontracts active 
under the test program during the six-month period 
covered by the report that would have otherwise re-
337 
quired a subcontracting plan under paragraph (4) or 
(5) of section 8(d) of the Small Business Act (15 
U.S.C. 637(d)). 
‘‘(C) Costs incurred in negotiating, complying 
with, and reporting on comprehensive subcontracting 
plans. 
‘‘(D) Costs avoided by adoption of a comprehen-
sive subcontracting plan.’’. 
(c) ADDITIONAL CONSEQUENCE
FOR FAILURE
TO 
MAKE GOOD FAITH EFFORT TO COMPLY.— 
(1) AMENDMENTS.—Subsection (d) of section 834 
of such Act is amended— 
(A) by striking ‘‘COMPANY-WIDE’’ and in-
serting ‘‘COMPREHENSIVE’’ in the heading; 
(B) by striking ‘‘company-wide’’ and insert-
ing ‘‘comprehensive subcontracting’’; and 
(C) by adding at the end the following: ‘‘In 
addition, any such failure shall be a factor con-
sidered as part of the evaluation of past perform-
ance of an offeror.’’. 
(2) REPEAL
OF
SUSPENSION
OF
SUBSECTION 
(D).—Section 402 of Public Law 101–574 (104 Stat. 
2832; 15 U.S.C. 637 note) is repealed. 
(d) ELIGIBILITY REQUIREMENT.—Subsection (d) of 
section 834 of the National Defense Authorization Act for
338 
Fiscal Years 1990 and 1991 (15 U.S.C. 637 note) is further 
amended— 
(1) by inserting ‘‘(1)’’ before ‘‘A contractor that’’; 
and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) Effective in fiscal year 2016 and each fiscal year 
thereafter in which the test program is in effect, the Sec-
retary of Defense may not negotiate a comprehensive sub-
contracting plan for a fiscal year with any contractor with 
which such a plan was negotiated in the prior fiscal year 
if the Secretary determines that the contractor did not meet 
the subcontracting goals negotiated in the plan for the prior 
fiscal year.’’. 
(e) REPORT BY COMPTROLLER GENERAL.—Subsection 
(f) of section 834 of such Act is amended to read as follows: 
‘‘(f) REPORT.—Not later than September 30, 2015, the 
Comptroller General of the United States shall submit a re-
port on the results of the test program to the Committees 
on Armed Services and on Small Business of the House of 
Representatives and the Committees on Armed Services and 
on Small Business and Entrepreneurship of the Senate.’’. 
(f) ADDITIONAL DEFINITIONS.—
339 
(1) COVERED SMALL BUSINESS CONCERN.—Sub-
section (g) of section 834 of such Act is amended to 
read as follows: 
‘‘(g) DEFINITIONS.—In this section, the term ‘covered 
small business concern’ includes each of the following: 
‘‘(1) A small business concern, as that term is 
defined under section 3(a) of the Small Business Act 
(15 U.S.C. 632(a)). 
‘‘(2) A small business concern owned and con-
trolled by veterans, as that term is defined in section 
3(q)(3) of such Act (15 U.S.C. 632(q)(3)). 
‘‘(3) A small business concern owned and con-
trolled by service-disabled veterans, as that term is de-
fined in section 3(q)(2) of such Act (15 U.S.C. 
632(q)(2)). 
‘‘(4) A qualified HUBZone small business con-
cern, as that term is defined under section 3(p)(5) of 
such Act (15 U.S.C. 632(p)(5)). 
‘‘(5) A small business concern owned and con-
trolled by socially and economically disadvantaged 
individuals, as that term is defined in section 
8(d)(3)(C) of such Act (15 U.S.C. 637(d)(3)(C)). 
‘‘(6) A small business concern owned and con-
trolled by women, as that term is defined under sec-
tion 3(n) of such Act (15 U.S.C. 632(n)).’’.
340 
(2) 
CONFORMING
AMENDMENT.—Subsection 
(a)(1) of section 834 of such Act is amended by strik-
ing ‘‘small business concerns and small business con-
cerns owned and controlled by socially and economi-
cally disadvantaged individuals’’ and inserting ‘‘cov-
ered small business concerns’’. 
SEC. 822. PLAN FOR IMPROVING DATA ON BUNDLED OR 
CONSOLIDATED CONTRACTS. 
(a) PLAN REQUIRED.—Section 15 of the Small Busi-
ness Act (15 U.S.C. 644) is amended by adding at the end 
the following new subsection: 
‘‘(s) DATA QUALITY IMPROVEMENT PLAN.— 
‘‘(1) IN GENERAL.—Not later than October 1, 
2015, the Administrator of the Small Business Ad-
ministration, in consultation with the Small Business 
Procurement Advisory Council, the Administrator for 
Federal Procurement Policy, and the Administrator 
of General Services, shall develop a plan to improve 
the quality of data reported on bundled or consoli-
dated contracts in the Federal procurement data sys-
tem (described in section 1122(a)(4)(A) of title 41, 
United States Code). 
‘‘(2) PLAN REQUIREMENTS.—The plan shall— 
‘‘(A) describe the roles and responsibilities 
of the Administrator of the Small Business Ad-
341 
ministration, each Director of Small and Dis-
advantaged Business Utilization, the Adminis-
trator for Federal Procurement Policy, the Ad-
ministrator of General Services, senior procure-
ment executives, and Chief Acquisition Officers 
in— 
‘‘(i) improving the quality of data re-
ported on bundled or consolidated contracts 
in the Federal procurement data system; 
and 
‘‘(ii) contributing to the annual report 
required by subsection (p)(4); 
‘‘(B) recommend changes to policies and 
procedures, including training procedures of rel-
evant personnel, to properly identify and miti-
gate the effects of bundled or consolidated con-
tracts; 
‘‘(C) recommend requirements for periodic 
and statistically valid data verification and val-
idation; and 
‘‘(D) recommend clear data verification re-
sponsibilities. 
‘‘(3) PLAN SUBMISSION.—The Administrator of 
the Small Business Administration shall submit the 
plan to the Committee on Small Business of the
342 
House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate 
not later than December 1, 2016. 
‘‘(4) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply: 
‘‘(A) CHIEF ACQUISITION OFFICER; SENIOR 
PROCUREMENT
EXECUTIVE.—The terms ‘Chief 
Acquisition Officer’ and ‘senior procurement ex-
ecutive’ have the meanings given such terms in 
section 44(a) of this Act. 
‘‘(B) BUNDLED
OR
CONSOLIDATED
CON-
TRACT.—The term ‘bundled or consolidated con-
tract’ means a bundled contract (as defined in 
section 3(o)) or a contract resulting from the 
consolidation of contracting requirements (as de-
fined in section 44(a)(2)).’’. 
(b) TECHNICAL AMENDMENT.—Section 44(a) of the 
Small Business Act (15 U.S.C. 657q(a)) is amended— 
(1) in paragraph (1)— 
(A) by inserting ‘‘appointed or’’ before ‘‘des-
ignated’’; and 
(B) by striking ‘‘section 16(a) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 
414(a))’’ and inserting ‘‘section 1702(a) of title 
41, United States Code’’; and
343 
(2) in paragraph (3), by striking ‘‘section 16(c) 
of the Office of Federal Procurement Policy Act (41 
U.S.C. 414(c))’’ and inserting ‘‘section 1702(c) of title 
41, United States Code’’. 
SEC. 823. AUTHORITY TO PROVIDE EDUCATION TO SMALL 
BUSINESSES ON CERTAIN REQUIREMENTS OF 
ARMS EXPORT CONTROL ACT. 
(a) ASSISTANCE AT SMALL BUSINESS DEVELOPMENT 
CENTERS.—Section 21(c)(1) of the Small Business Act (15 
U.S.C. 648(c)(1)) is amended by inserting at the end the 
following: ‘‘Applicants receiving grants under this section 
may also assist small businesses by providing, where appro-
priate, education on the requirements applicable to small 
businesses under the regulations issued under section 38 of 
the Arms Export Control Act (22 U.S.C. 2778) and on com-
pliance with those requirements.’’. 
(b) PROCUREMENT TECHNICAL ASSISTANCE.—Section 
2418 of title 10, United States Code, is amended by adding 
at the end the following new subsection: 
‘‘(c) An eligible entity assisted by the Department of 
Defense under this chapter also may furnish education on 
the requirements applicable to small businesses under the 
regulations issued under section 38 of the Arms Export 
Control Act (22 U.S.C. 2778) and on compliance with those 
requirements.’’.
344 
SEC. 824. MATTERS RELATING TO REVERSE AUCTIONS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall clarify regulations on reverse auctions, as necessary, 
to ensure that— 
(1) single bid contracts may not be entered into 
resulting from reverse auctions unless compliant with 
existing Federal regulations and Department of De-
fense memoranda providing guidance on single bid of-
fers; 
(2) all reverse auctions provide offerors with the 
ability to submit revised bids throughout the course of 
the auction; 
(3) if a reverse auction is conducted by a third 
party— 
(A) inherently governmental functions are 
not performed by private contractors, including 
by the third party; and 
(B) past performance or financial responsi-
bility information created by the third party is 
made available to offerors; and 
(4) reverse auctions resulting in design-build 
military construction contracts specifically authorized 
in law are prohibited. 
(b) TRAINING.—Not later than 180 days after the date 
of the enactment of this Act, the President of the Defense
345 
Acquisition University shall establish comprehensive train-
ing available for contract specialists in the Department of 
Defense on the use of reverse auctions. 
(c) DESIGN-BUILD DEFINED.—In this section, the term 
‘‘design-build’’ means procedures used for the selection of 
a contractor on the basis of price and other evaluation cri-
teria to perform, in accordance with the provisions of a 
firm fixed-price contract, both the design and construction 
of a facility using performance specifications supplied by 
the Secretary of Defense. 
SEC. 825. SOLE SOURCE CONTRACTS FOR SMALL BUSINESS 
CONCERNS OWNED AND CONTROLLED BY 
WOMEN. 
(a) AUTHORITY FOR SOLE SOURCE CONTRACTS FOR 
CERTAIN SMALL BUSINESS CONCERNS OWNED AND CON-
TROLLED BY WOMEN.—Subsection (m) of section 8 of the 
Small Business Act (15 U.S.C. 637(m)) is amended— 
(1) by amending paragraph (2)(E) to read as 
follows: 
‘‘(E) each of the concerns is certified by a 
Federal agency, a State government, the Admin-
istrator, or a national certifying entity approved 
by the Administrator as a small business concern 
owned and controlled by women.’’;
346 
(2) in paragraph (5), by striking ‘‘paragraph 
(2)(F)’’ each place such term appears and inserting 
‘‘paragraph (2)(E)’’; and 
(3) by adding at the end the following new para-
graphs: 
‘‘(7) AUTHORITY FOR SOLE SOURCE CONTRACTS 
FOR
ECONOMICALLY
DISADVANTAGED
SMALL
BUSI-
NESS
CONCERNS
OWNED
AND
CONTROLLED
BY 
WOMEN.—A contracting officer may award a sole 
source contract under this subsection to any small 
business concern owned and controlled by women de-
scribed in paragraph (2)(A) and certified under para-
graph (2)(E) if— 
‘‘(A) such concern is determined to be a re-
sponsible contractor with respect to performance 
of the contract opportunity and the contracting 
officer does not have a reasonable expectation 
that 2 or more businesses described in paragraph 
(2)(A) will submit offers; 
‘‘(B) the anticipated award price of the con-
tract (including options) will not exceed— 
‘‘(i) $6,500,000, in the case of a con-
tract opportunity assigned a standard in-
dustrial classification code for manufac-
turing; or
347 
‘‘(ii) $4,000,000, in the case of any 
other contract opportunity; and 
‘‘(C) in the estimation of the contracting of-
ficer, the contract award can be made at a fair 
and reasonable price. 
‘‘(8) AUTHORITY FOR SOLE SOURCE CONTRACTS 
FOR SMALL BUSINESS CONCERNS OWNED AND CON-
TROLLED BY WOMEN IN SUBSTANTIALLY UNDERREP-
RESENTED INDUSTRIES.—A contracting officer may 
award a sole source contract under this subsection to 
any small business concern owned and controlled by 
women certified under paragraph (2)(E) that is in an 
industry in which small business concerns owned and 
controlled by women are substantially underrep-
resented (as determined by the Administrator under 
paragraph (3)) if— 
‘‘(A) such concern is determined to be a re-
sponsible contractor with respect to performance 
of the contract opportunity and the contracting 
officer does not have a reasonable expectation 
that 2 or more businesses in an industry that 
has received a waiver under paragraph (3) will 
submit offers; 
‘‘(B) the anticipated award price of the con-
tract (including options) will not exceed—
348 
‘‘(i) $6,500,000, in the case of a con-
tract opportunity assigned a standard in-
dustrial classification code for manufac-
turing; or 
‘‘(ii) $4,000,000, in the case of any 
other contract opportunity; and 
‘‘(C) in the estimation of the contracting of-
ficer, the contract award can be made at a fair 
and reasonable price.’’. 
(b) REPORTING ON GOALS FOR SOLE SOURCE CON-
TRACTS
FOR SMALL BUSINESS CONCERNS OWNED
AND 
CONTROLLED
BY WOMEN.—Clause (viii) of subsection 
15(h)(2)(E) of such Act is amended— 
(1) in subclause (IV), by striking ‘‘and’’ after the 
semicolon; 
(2) by redesignating subclause (V) as subclause 
(VIII); and 
(3) by inserting after subclause (IV) the fol-
lowing new subclauses: 
‘‘(V) through sole source contracts 
awarded using the authority under 
subsection 8(m)(7); 
‘‘(VI) through sole source contracts 
awarded using the authority under sec-
tion 8(m)(8);
349 
‘‘(VII) by industry for contracts 
described in subclause (III), (IV), (V), 
or (VI); and’’. 
(c) ACCELERATED DEADLINE FOR REPORT ON INDUS-
TRIES UNDERREPRESENTED BY SMALL BUSINESS CON-
CERNS OWNED AND CONTROLLED BY WOMEN.—Paragraph 
(2) of section 29(o) of such Act is amended by striking ‘‘5 
years after the date of enactment’’ and inserting ‘‘3 years 
after the date of enactment’’. 
Subtitle D—Federal Information 
Technology Acquisition Reform 
SEC. 831. CHIEF INFORMATION OFFICER AUTHORITY EN-
HANCEMENTS. 
(a) IN GENERAL.—Subchapter II of chapter 113 of 
title 40, United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 11319. Resources, planning, and portfolio manage-
ment 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) The term ‘covered agency’ means each agen-
cy listed in section 901(b)(1) or 901(b)(2) of title 31. 
‘‘(2) The term ‘information technology’ has the 
meaning given that term under capital planning 
guidance issued by the Office of Management and 
Budget.
350 
‘‘(b) ADDITIONAL AUTHORITIES FOR CHIEF INFORMA-
TION OFFICERS.— 
‘‘(1) PLANNING, PROGRAMMING, BUDGETING, AND 
EXECUTION AUTHORITIES FOR CIOS.— 
‘‘(A) IN GENERAL.—The head of each cov-
ered agency other than the Department of De-
fense shall ensure that the Chief Information Of-
ficer of the agency has a significant role in— 
‘‘(i) the decision processes for all an-
nual and multi-year planning, program-
ming, budgeting, and execution decisions, 
related reporting requirements, and reports 
related to information technology; and 
‘‘(ii) the management, governance, and 
oversight processes related to information 
technology. 
‘‘(B) BUDGET FORMULATION.—The Director 
of the Office of Management and Budget shall re-
quire in the annual information technology cap-
ital planning guidance of the Office of Manage-
ment and Budget the following: 
‘‘(i) That the Chief Information Officer 
of each covered agency other than the De-
partment of Defense approve the informa-
tion technology budget request of the covered
351 
agency, and that the Chief Information Of-
ficer of the Department of Defense review 
and provide recommendations to the Sec-
retary of Defense on the information tech-
nology budget request of the Department. 
‘‘(ii) That the Chief Information Offi-
cer of each covered agency certify that infor-
mation technology investments are ade-
quately implementing incremental develop-
ment, as defined in capital planning guid-
ance issued by the Office of Management 
and Budget. 
‘‘(C) REVIEW.— 
‘‘(i) IN GENERAL.—A covered agency 
other than the Department of Defense— 
‘‘(I) may not enter into a contract 
or other agreement for information 
technology or information technology 
services, unless the contract or other 
agreement has been reviewed and ap-
proved by the Chief Information Offi-
cer of the agency; 
‘‘(II) may not request the re-
programming of any funds made 
available for information technology
352 
programs, unless the request has been 
reviewed and approved by the Chief 
Information Officer of the agency; and 
‘‘(III) may use the governance 
processes of the agency to approve such 
a contract or other agreement if the 
Chief Information Officer of the agency 
is included as a full participant in the 
governance processes. 
‘‘(ii) DELEGATION.— 
‘‘(I) IN GENERAL.—Except as pro-
vided in subclause (II), the duties of a 
Chief Information Officer under clause 
(i) are not delegable. 
‘‘(II) NON-MAJOR
INFORMATION 
TECHNOLOGY
INVESTMENTS.—For a 
contract or agreement for a non-major 
information technology investment, as 
defined in the annual information 
technology capital planning guidance 
of the Office of Management and Budg-
et, the Chief Information Officer of a 
covered agency other than the Depart-
ment of Defense may delegate the ap-
proval of the contract or agreement
353 
under clause (i) to an individual who 
reports directly to the Chief Informa-
tion Officer. 
‘‘(2) PERSONNEL-RELATED
AUTHORITY.—Not-
withstanding any other provision of law, for each cov-
ered agency other than the Department of Defense, the 
Chief Information Officer of the covered agency shall 
approve the appointment of any other employee with 
the title of Chief Information Officer, or who func-
tions in the capacity of a Chief Information Officer, 
for any component organization within the covered 
agency. 
‘‘(c) LIMITATION.—None of the authorities provided in 
this section shall apply to telecommunications or informa-
tion technology that is fully funded by amounts made avail-
able— 
‘‘(1) under the National Intelligence Program, 
defined by section 3(6) of the National Security Act 
of 1947 (50 U.S.C. 3003(6)); 
‘‘(2) under the Military Intelligence Program or 
any successor program or programs; or 
‘‘(3) jointly under the National Intelligence Pro-
gram and the Military Intelligence Program (or any 
successor program or programs).’’.
354 
(b) CLERICAL AMENDMENT.—The table of sections for 
chapter 113 of title 40, United States Code, is amended by 
inserting after the item relating to section 11318 the fol-
lowing new item: 
‘‘11319. Resources, planning, and portfolio management.’’. 
SEC. 832. ENHANCED TRANSPARENCY AND IMPROVED RISK 
MANAGEMENT 
IN 
INFORMATION 
TECH-
NOLOGY INVESTMENTS. 
Section 11302(c) of title 40, United States Code, is 
amended— 
(1) by redesignating paragraphs (1) and (2) as 
paragraphs (2) and (5), respectively; 
(2) by inserting before paragraph (2), as so re-
designated, the following new paragraph (1): 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) The term ‘covered agency’ means an 
agency listed in section 901(b)(1) or 901(b)(2) of 
title 31. 
‘‘(B) The term ‘major information tech-
nology investment’ means an investment within 
a covered agency information technology invest-
ment portfolio that is designated by the covered 
agency as major, in accordance with capital 
planning guidance issued by the Director.
355 
‘‘(C) The term ‘national security system’ 
has the meaning provided in section 3542 of title 
44.’’; and 
(3) by inserting after paragraph (2), as so redes-
ignated, the following new paragraphs: 
‘‘(3) PUBLIC AVAILABILITY.— 
‘‘(A) IN
GENERAL.—The Director shall 
make available to the public a list of each major 
information technology investment, without re-
gard to whether the investments are for new in-
formation technology acquisitions or for oper-
ations and maintenance of existing information 
technology, including data on cost, schedule, and 
performance. 
‘‘(B) AGENCY INFORMATION.— 
‘‘(i) The Director shall issue guidance 
to each covered agency for reporting of data 
required by subparagraph (A) that provides 
a standardized data template that can be 
incorporated into existing, required data re-
porting formats and processes. Such guid-
ance shall integrate the reporting process 
into current budget reporting that each cov-
ered agency provides to the Office of Man-
agement and Budget, to minimize addi-
356 
tional workload. Such guidance shall also 
clearly specify that the investment evalua-
tion required under subparagraph (C) ade-
quately reflect the investment’s cost and 
schedule performance and employ incre-
mental development approaches in appro-
priate cases. 
‘‘(ii) The Chief Information Officer of 
each covered agency shall provide the Direc-
tor with the information described in sub-
paragraph (A) on at least a semi-annual 
basis for each major information technology 
investment, using existing data systems and 
processes. 
‘‘(C) INVESTMENT EVALUATION.—For each 
major information technology investment listed 
under subparagraph (A), the Chief Information 
Officer of the covered agency, in consultation 
with other appropriate agency officials, shall 
categorize the investment according to risk, in 
accordance with guidance issued by the Director. 
‘‘(D) CONTINUOUS IMPROVEMENT.—If either 
the Director or the Chief Information Officer of 
a covered agency determines that the information 
made available from the agency’s existing data
357 
systems and processes as required by subpara-
graph (B) is not timely and reliable, the Chief 
Information Officer, in consultation with the Di-
rector and the head of the agency, shall establish 
a program for the improvement of such data sys-
tems and processes. 
‘‘(E) WAIVER OR LIMITATION AUTHORITY.— 
The applicability of subparagraph (A) may be 
waived or the extent of the information may be 
limited by the Director, if the Director deter-
mines that such a waiver or limitation is in the 
national security interests of the United States. 
‘‘(F) ADDITIONAL
LIMITATION.—The re-
quirements of subparagraph (A) shall not apply 
to national security systems or to telecommuni-
cations or information technology that is fully 
funded by amounts made available— 
‘‘(i) under the National Intelligence 
Program, defined by section 3(6) of the Na-
tional Security Act of 1947 (50 U.S.C. 
3003(6)); 
‘‘(ii) under the Military Intelligence 
Program or any successor program or pro-
grams; or
358 
‘‘(iii) jointly under the National Intel-
ligence Program and the Military Intel-
ligence Program (or any successor program 
or programs). 
‘‘(4) RISK MANAGEMENT.—For each major infor-
mation technology investment listed under paragraph 
(3)(A) that receives a high risk rating, as described 
in paragraph (3)(C), for 4 consecutive quarters— 
‘‘(A) the Chief Information Officer of the 
covered agency and the program manager of the 
investment within the covered agency, in con-
sultation with the Administrator of the Office of 
Electronic Government, shall conduct a review of 
the investment that shall identify— 
‘‘(i) the root causes of the high level of 
risk of the investment; 
‘‘(ii) the extent to which these causes 
can be addressed; and 
‘‘(iii) the probability of future success; 
‘‘(B) the Administrator of the Office of Elec-
tronic Government shall communicate the results 
of the review under subparagraph (A) to— 
‘‘(i) the Committee on Homeland Secu-
rity and Governmental Affairs and the 
Committee on Appropriations of the Senate;
359 
‘‘(ii) the Committee on Oversight and 
Government Reform and the Committee on 
Appropriations of the House of Representa-
tives; and 
‘‘(iii) the committees of the Senate and 
the House of Representatives with primary 
jurisdiction over the agency; 
‘‘(C) in the case of a major information 
technology investment of the Department of De-
fense, the assessment required by subparagraph 
(A) may be accomplished in accordance with sec-
tion 2445c of title 10, provided that the results 
of the review are provided to the Administrator 
of the Office of Electronic Government upon re-
quest and to the committees identified in sub-
section (B); and 
‘‘(D) for a covered agency other than the 
Department of Defense, if on the date that is one 
year after the date of completion of the review re-
quired under subsection (A), the investment is 
rated as high risk under paragraph (3)(C), the 
Director shall deny any request for additional 
development, modernization, or enhancement 
funding for the investment until the date on 
which the Chief Information Officer of the cov-
360 
ered agency determines that the root causes of the 
high level of risk of the investment have been ad-
dressed, and there is sufficient capability to de-
liver the remaining planned increments within 
the planned cost and schedule. 
‘‘(5) SUNSET OF CERTAIN PROVISIONS.—Para-
graphs (1), (3), and (4) shall not be in effect on and 
after the date that is 5 years after the date of the en-
actment of the Carl Levin and Howard P. ‘Buck’ 
McKeon National Defense Authorization Act for Fis-
cal Year 2015.’’. 
SEC. 833. PORTFOLIO REVIEW. 
Section 11319 of title 40, United States Code, as added 
by section 831, is amended by adding at the end the fol-
lowing new section: 
‘‘(c) INFORMATION TECHNOLOGY PORTFOLIO, PRO-
GRAM, AND RESOURCE REVIEWS.— 
‘‘(1) PROCESS.—The Director of the Office of 
Management and Budget, in consultation with the 
Chief Information Officers of appropriate agencies, 
shall implement a process to assist covered agencies in 
reviewing their portfolio of information technology in-
vestments—
361 
‘‘(A) to identify or develop ways to increase 
the efficiency and effectiveness of the information 
technology investments of the covered agency; 
‘‘(B) to identify or develop opportunities to 
consolidate the acquisition and management of 
information technology services, and increase the 
use of shared-service delivery models; 
‘‘(C) to identify potential duplication and 
waste; 
‘‘(D) to identify potential cost savings; 
‘‘(E) to develop plans for actions to opti-
mize the information technology portfolio, pro-
grams, and resources of the covered agency; 
‘‘(F) to develop ways to better align the in-
formation technology portfolio, programs, and fi-
nancial resources of the covered agency to any 
multi-year funding requirements or strategic 
plans required by law; 
‘‘(G) to develop a multi-year strategy to 
identify and reduce duplication and waste with-
in the information technology portfolio of the 
covered agency, including component-level invest-
ments and to identify projected cost savings re-
sulting from such strategy; and
362 
‘‘(H) to carry out any other goals that the 
Director may establish. 
‘‘(2) 
METRICS
AND
PERFORMANCE
INDICA-
TORS.—The Director of the Office of Management and 
Budget, in consultation with the Chief Information 
Officers of appropriate agencies, shall develop stand-
ardized cost savings and cost avoidance metrics and 
performance indicators for use by agencies for the 
process implemented under paragraph (1). 
‘‘(3) ANNUAL REVIEW.—The Chief Information 
Officer of each covered agency, in conjunction with 
the Chief Operating Officer or Deputy Secretary (or 
equivalent) of the covered agency and the Adminis-
trator of the Office of Electronic Government, shall 
conduct an annual review of the information tech-
nology portfolio of the covered agency. 
‘‘(4) APPLICABILITY
TO
THE
DEPARTMENT
OF 
DEFENSE.—In the case of the Department of Defense, 
processes established pursuant to this subsection shall 
apply only to the business systems information tech-
nology portfolio of the Department of Defense and not 
to national security systems as defined by section 
11103(a) of this title. The annual review required by 
paragraph (3) shall be carried out by the Deputy 
Chief Management Officer of the Department of De-
363 
fense (or any successor to such Officer), in consulta-
tion with the Chief Information Officer, the Under 
Secretary of Defense for Acquisition, Technology, and 
Logistics, and other appropriate Department of De-
fense officials. The Secretary of Defense may designate 
an existing investment or management review process 
to fulfill the requirement for the annual review re-
quired by paragraph (3), in consultation with the Ad-
ministrator of the Office of Electronic Government. 
‘‘(5) QUARTERLY REPORTS.— 
‘‘(A) IN GENERAL.—The Administrator of 
the Office of Electronic Government shall submit 
a quarterly report on the cost savings and reduc-
tions in duplicative information technology in-
vestments identified through the review required 
by paragraph (3) to— 
‘‘(i) the Committee on Homeland Secu-
rity and Governmental Affairs and the 
Committee on Appropriations of the Senate; 
‘‘(ii) the Committee on Oversight and 
Government Reform and the Committee on 
Appropriations of the House of Representa-
tives; and 
‘‘(iii) upon a request by any committee 
of Congress, to that committee.
364 
‘‘(B) INCLUSION IN OTHER REPORTS.—The 
reports required under subparagraph (A) may be 
included as part of another report submitted to 
the committees of Congress described in clauses 
(i), (ii), and (iii) of subparagraph (A). 
‘‘(6) SUNSET.—This subsection shall not be in ef-
fect on and after the date that is 5 years after the 
date of the enactment of the Carl Levin and Howard 
P. ‘Buck’ McKeon National Defense Authorization Act 
for Fiscal Year 2015.’’. 
SEC. 834. FEDERAL DATA CENTER CONSOLIDATION INITIA-
TIVE. 
(a) DEFINITIONS.—In this section: 
(1) 
ADMINISTRATOR.—The 
term 
‘‘Adminis-
trator’’ means the Administrator of the Office of Elec-
tronic Government established under section 3602 of 
title 44, United States Code (and also known as the 
Office of E-Government and Information Technology), 
within the Office of Management and Budget. 
(2) COVERED AGENCY.—The term ‘‘covered agen-
cy’’ means the following (including all associated 
components of the agency): 
(A) Department of Agriculture. 
(B) Department of Commerce. 
(C) Department of Defense.
365 
(D) Department of Education. 
(E) Department of Energy. 
(F) Department of Health and Human 
Services. 
(G) Department of Homeland Security. 
(H) Department of Housing and Urban De-
velopment. 
(I) Department of the Interior. 
(J) Department of Justice. 
(K) Department of Labor. 
(L) Department of State. 
(M) Department of Transportation. 
(N) Department of Treasury. 
(O) Department of Veterans Affairs. 
(P) Environmental Protection Agency. 
(Q) General Services Administration. 
(R) National Aeronautics and Space Ad-
ministration. 
(S) National Science Foundation. 
(T) Nuclear Regulatory Commission. 
(U) Office of Personnel Management. 
(V) Small Business Administration. 
(W) Social Security Administration. 
(X) United States Agency for International 
Development.
366 
(3) FDCCI.—The term ‘‘FDCCI’’ means the 
Federal Data Center Consolidation Initiative de-
scribed in the Office of Management and Budget 
Memorandum on the Federal Data Center Consolida-
tion Initiative, dated February 26, 2010, or any suc-
cessor thereto. 
(4) GOVERNMENT-WIDE DATA CENTER CONSOLI-
DATION
AND
OPTIMIZATION
METRICS.—The term 
‘‘Government-wide data center consolidation and op-
timization metrics’’ means the metrics established by 
the Administrator under subsection (b)(2)(G). 
(b) FEDERAL DATA CENTER CONSOLIDATION INVEN-
TORIES AND STRATEGIES.— 
(1) IN GENERAL.— 
(A) ANNUAL REPORTING.—Except as pro-
vided in subparagraph (C), each year, beginning 
in the first fiscal year after the date of the enact-
ment of this Act and each fiscal year thereafter, 
the head of each covered agency, assisted by the 
Chief Information Officer of the agency, shall 
submit to the Administrator— 
(i) a comprehensive inventory of the 
data centers owned, operated, or main-
tained by or on behalf of the agency; and
367 
(ii) a multi-year strategy to achieve 
the consolidation and optimization of the 
data centers inventoried under clause (i), 
that includes— 
(I) performance metrics— 
(aa) that are consistent with 
the Government-wide data center 
consolidation and optimization 
metrics; and 
(bb) by which the quan-
titative and qualitative progress 
of the agency toward the goals of 
the FDCCI can be measured; 
(II) a timeline for agency activi-
ties to be completed under the FDCCI, 
with an emphasis on benchmarks the 
agency can achieve by specific dates; 
(III) year-by-year calculations of 
investment and cost savings for the pe-
riod beginning on the date of the enact-
ment of this Act and ending on the 
date set forth in subsection (e), broken 
down by each year, including a de-
scription of any initial costs for data 
center consolidation and optimization
368 
and life cycle cost savings and other 
improvements, with an emphasis on— 
(aa) meeting the Govern-
ment-wide data center consolida-
tion and optimization metrics; 
and 
(bb) 
demonstrating 
the 
amount of agency-specific cost 
savings each fiscal year achieved 
through the FDCCI; and 
(IV) any additional information 
required by the Administrator. 
(B) USE
OF
OTHER
REPORTING
STRUC-
TURES.—The Administrator may require a cov-
ered agency to include the information required 
to be submitted under this subsection through re-
porting structures determined by the Adminis-
trator to be appropriate. 
(C) DEPARTMENT
OF
DEFENSE
REPORT-
ING.—For any year that the Department of De-
fense is required to submit a performance plan 
for reduction of resources required for data serv-
ers and centers, as required under section 
2867(b) of the National Defense Authorization
369 
Act for Fiscal Year 2012 (10 U.S.C. 2223a note), 
the Department of Defense— 
(i) may submit to the Administrator, 
in lieu of the multi-year strategy required 
under subparagraph (A)(ii)— 
(I) the defense-wide plan required 
under section 2867(b)(2) of the Na-
tional Defense Authorization Act for 
Fiscal Year 2012 (10 U.S.C. 2223a 
note); and 
(II) the report on cost savings re-
quired under section 2867(d) of the 
National Defense Authorization Act for 
Fiscal Year 2012 (10 U.S.C. 2223a 
note); and 
(ii) shall submit the comprehensive in-
ventory 
required 
under 
subparagraph 
(A)(i), unless the defense-wide plan required 
under section 2867(b)(2) of the National 
Defense Authorization Act for Fiscal Year 
2012 (10 U.S.C. 2223a note)— 
(I) contains a comparable com-
prehensive inventory; and 
(II) is submitted under clause (i).
370 
(D) STATEMENT.—Each year, beginning in 
the first fiscal year after the date of the enact-
ment of this Act and each fiscal year thereafter, 
the head of each covered agency, acting through 
the Chief Information Officer of the agency, 
shall— 
(i)(I) submit a statement to the Ad-
ministrator stating whether the agency has 
complied with the requirements of this sec-
tion; and 
(II) make the statement submitted 
under subclause (I) publicly available; and 
(ii) if the agency has not complied 
with the requirements of this section, submit 
a statement to the Administrator explaining 
the reasons for not complying with such re-
quirements. 
(E) AGENCY IMPLEMENTATION OF STRATE-
GIES.— 
(i) IN GENERAL.—Each covered agen-
cy, under the direction of the Chief Infor-
mation Officer of the agency, shall— 
(I) implement the strategy re-
quired under subparagraph (A)(ii); 
and
371 
(II) provide updates to the Ad-
ministrator, on a quarterly basis, of— 
(aa) the completion of activi-
ties by the agency under the 
FDCCI; 
(bb) any progress of the 
agency towards meeting the Gov-
ernment-wide data center consoli-
dation and optimization metrics; 
and 
(cc) the actual cost savings 
and other improvements realized 
through the implementation of the 
strategy of the agency. 
(ii) DEPARTMENT OF DEFENSE.—For 
purposes of clause (i)(I), implementation of 
the defense-wide plan required under section 
2867(b)(2) of the National Defense Author-
ization Act for Fiscal Year 2012 (10 U.S.C. 
2223a note) by the Department of Defense 
shall be considered implementation of the 
strategy 
required 
under 
subparagraph 
(A)(ii). 
(F) RULE OF CONSTRUCTION.—Nothing in 
this section shall be construed to limit the report-
372 
ing of information by a covered agency to the 
Administrator, the Director of the Office of Man-
agement and Budget, or Congress. 
(2) 
ADMINISTRATOR
RESPONSIBILITIES.—The 
Administrator shall— 
(A) establish the deadline, on an annual 
basis, for covered agencies to submit information 
under this section; 
(B) establish a list of requirements that the 
covered agencies must meet to be considered in 
compliance with paragraph (1); 
(C) ensure that information relating to 
agency progress towards meeting the Govern-
ment-wide data center consolidation and optimi-
zation metrics is made available in a timely 
manner to the general public; 
(D) review the inventories and strategies 
submitted under paragraph (1) to determine 
whether they are comprehensive and complete; 
(E) monitor the implementation of the data 
center strategy of each covered agency that is re-
quired under paragraph (1)(A)(ii); 
(F) update, on an annual basis, the cumu-
lative cost savings realized through the imple-
mentation of the FDCCI; and
373 
(G) establish metrics applicable to the con-
solidation and optimization of data centers Gov-
ernment-wide, including metrics with respect 
to— 
(i) costs; 
(ii) efficiencies, including, at a min-
imum, server efficiency; and 
(iii) any other factors the Adminis-
trator considers appropriate. 
(3) COST SAVING GOAL AND UPDATES FOR CON-
GRESS.— 
(A) IN GENERAL.—Not later than one year 
after the date of the enactment of this Act, the 
Administrator shall develop, and make publicly 
available, a goal, broken down by year, for the 
amount of planned cost savings and optimiza-
tion improvements achieved through the FDCCI 
during the period beginning on the date of the 
enactment of this Act and ending on the date set 
forth in subsection (e). 
(B) ANNUAL UPDATE.— 
(i) IN GENERAL.—Not later than one 
year after the date on which the goal de-
scribed in subparagraph (A) is made pub-
licly available, and each year thereafter, the
374 
Administrator shall aggregate the reported 
cost savings of each covered agency and op-
timization improvements achieved to date 
through the FDCCI and compare the sav-
ings to the projected cost savings and opti-
mization improvements developed under 
subparagraph (A). 
(ii) UPDATE
FOR
CONGRESS.—The 
goal required to be developed under sub-
paragraph (A) shall be submitted to Con-
gress and shall be accompanied by a state-
ment describing— 
(I) the extent to which each cov-
ered agency has developed and sub-
mitted 
a 
comprehensive 
inventory 
under paragraph (1)(A)(i), including 
an analysis of the inventory that de-
tails specific numbers, use, and effi-
ciency level of data centers in each in-
ventory; and 
(II) the extent to which each cov-
ered agency has submitted a com-
prehensive strategy that addresses the 
items listed in paragraph (1)(A)(ii). 
(4) GAO REVIEW.—
375 
(A) IN GENERAL.—Not later than one year 
after the date of the enactment of this Act, and 
each year thereafter, the Comptroller General of 
the United States shall review and verify the 
quality and completeness of the inventory and 
strategy of each covered agency required under 
paragraph (1)(A). 
(B) REPORT.—The Comptroller General of 
the United States shall, on an annual basis, pub-
lish a report on each review conducted under 
subparagraph (A). 
(c) ENSURING CYBERSECURITY STANDARDS FOR DATA 
CENTER CONSOLIDATION AND CLOUD COMPUTING.— 
(1) IN GENERAL.—In implementing a data cen-
ter consolidation and optimization strategy under 
this section, a covered agency shall do so in a manner 
that is consistent with Federal guidelines on cloud 
computing security, including— 
(A) applicable provisions found within the 
Federal Risk and Authorization Management 
Program (FedRAMP); and 
(B) guidance published by the National In-
stitute of Standards and Technology. 
(2) RULE OF CONSTRUCTION.—Nothing in this 
section shall be construed to limit the ability of the
376 
Director of the Office of Management and Budget to 
update or modify the Federal guidelines on cloud 
computing security. 
(d) WAIVER OF REQUIREMENTS.—The Director of Na-
tional Intelligence and the Secretary of Defense, or their 
respective designee, may waive the applicability to any na-
tional security system, as defined in section 3542 of title 
44, United States Code, of any provision of this section if 
the Director of National Intelligence or the Secretary of De-
fense, or their respective designee, determines that such 
waiver is in the interest of national security. Not later than 
30 days after making a waiver under this subsection, the 
Director of National Intelligence or the Secretary of De-
fense, or their respective designee, shall submit to the Com-
mittee on Homeland Security and Governmental Affairs 
and the Select Committee on Intelligence of the Senate and 
the Committee on Oversight and Government Reform and 
the Permanent Select Committee on Intelligence of the 
House of Representatives a statement describing the waiver 
and the reasons for the waiver. 
(e) SUNSET.—This section is repealed effective on Oc-
tober 1, 2018.
377 
SEC. 835. EXPANSION OF TRAINING AND USE OF INFORMA-
TION TECHNOLOGY CADRES. 
(a) PURPOSE.—The purpose of this section is to ensure 
timely progress by Federal agencies toward developing, 
strengthening, and deploying information technology acqui-
sition cadres consisting of personnel with highly specialized 
skills in information technology acquisition, including pro-
gram and project managers. 
(b) STRATEGIC PLANNING.— 
(1) IN GENERAL.—The Administrator for Fed-
eral Procurement Policy, in consultation with the Ad-
ministrator for E-Government and Information Tech-
nology, shall work with Federal agencies, other than 
the Department of Defense, to update their acquisi-
tion human capital plans that were developed pursu-
ant to the October 27, 2009, guidance issued by the 
Administrator for Federal Procurement Policy in fur-
therance of section 1704(g) of title 41, United States 
Code (originally enacted as section 869 of the Duncan 
Hunter National Defense Authorization Act for Fiscal 
Year 2009 (Public Law 110–417; 122 Stat. 4553)), to 
address how the agencies are meeting their human 
capital requirements to support the timely and effec-
tive acquisition of information technology. 
(2) ELEMENTS.—The updates required by para-
graph (1) shall be submitted to the Administrator for
378 
Federal Procurement Policy and shall address, at a 
minimum, each Federal agency’s consideration or use 
of the following procedures: 
(A) Development of an information tech-
nology acquisition cadre within the agency or 
use of memoranda of understanding with other 
agencies that have such cadres or personnel with 
experience relevant to the agency’s information 
technology acquisition needs. 
(B) Development of personnel assigned to 
information technology acquisitions, including 
cross-functional training of acquisition informa-
tion technology and program personnel. 
(C) Use of the specialized career path for 
information technology program managers as 
designated by the Office of Personnel Manage-
ment and plans for strengthening information 
technology program management. 
(D) Use of direct hire authority. 
(E) Conduct of peer reviews. 
(F) Piloting of innovative approaches to in-
formation technology acquisition workforce devel-
opment, such as industry-government rotations.
379 
(c) FEDERAL AGENCY DEFINED.—In this section, the 
term ‘‘Federal agency’’ means each agency listed in section 
901(b) of title 31, United States Code. 
SEC. 836. MAXIMIZING THE BENEFIT OF THE FEDERAL 
STRATEGIC SOURCING INITIATIVE. 
Not later than 180 days after the date of the enactment 
of this Act, the Administrator for Federal Procurement Pol-
icy shall prescribe regulations providing that when the Fed-
eral Government makes a purchase of services and supplies 
offered under the Federal Strategic Sourcing Initiative 
(managed by the Office of Federal Procurement Policy) but 
such Initiative is not used, the contract file for the purchase 
shall include a brief analysis of the comparative value, in-
cluding price and nonprice factors, between the services and 
supplies offered under such Initiative and services and sup-
plies offered under the source or sources used for the pur-
chase. 
SEC. 837. GOVERNMENTWIDE SOFTWARE PURCHASING PRO-
GRAM. 
(a) IN GENERAL.—The Administrator of General 
Services shall identify and develop a strategic sourcing ini-
tiative to enhance Governmentwide acquisition, shared use, 
and dissemination of software, as well as compliance with 
end user license agreements.
380 
(b) GOVERNMENTWIDE USER LICENSE AGREEMENT.— 
The Administrator, in developing the initiative under sub-
section (a), shall allow for the purchase of a license agree-
ment that is available for use by all Executive agencies (as 
defined in section 105 of title 5, United States Code) as 
one user to the maximum extent practicable and as appro-
priate. 
Subtitle E—Never Contract With 
the Enemy 
SEC. 841. PROHIBITION ON PROVIDING FUNDS TO THE 
ENEMY. 
(a) IDENTIFICATION OF PERSONS AND ENTITIES.— 
The Secretary of Defense shall, in conjunction with the Di-
rector of National Intelligence and in consultation with the 
Secretary of State, establish in each covered combatant com-
mand a program to identify persons and entities within 
the area of responsibility of such command that— 
(1) provide funds, including goods and services, 
received under a covered contract, grant, or coopera-
tive agreement of an executive agency directly or in-
directly to a covered person or entity; or 
(2) fail to exercise due diligence to ensure that 
none of the funds, including goods and services, re-
ceived under a covered contract, grant, or cooperative
381 
agreement of an executive agency are provided di-
rectly or indirectly to a covered person or entity. 
(b) NOTICE
OF IDENTIFIED PERSONS
AND ENTI-
TIES.— 
(1) NOTICE.—Upon the identification of a per-
son or entity as being described by subsection (a), the 
head of the executive agency concerned (or the des-
ignee of such head) and the commander of the covered 
combatant command concerned (or the specified depu-
ties of the commander) shall be notified, in writing, 
of such identification of the person or entity. 
(2) RESPONSIVE ACTIONS.—Upon receipt of a 
notice under paragraph (1), the head of the executive 
agency concerned (or the designee of such head) and 
the commander of the covered combatant command 
concerned (or the specified deputies of the com-
mander) may notify the heads of contracting activi-
ties, or other appropriate officials of the agency or 
command, in writing of such identification. 
(3) MAKING
OF
NOTIFICATIONS.—Any written 
notification pursuant to this subsection shall be made 
in accordance with procedures established to imple-
ment the revisions of regulations required by this sec-
tion.
382 
(c) AUTHORITY TO TERMINATE OR VOID CONTRACTS, 
GRANTS, AND COOPERATIVE AGREEMENTS AND TO RE-
STRICT FUTURE AWARD.—Not later than 270 days after 
the date of the enactment of this Act, the Federal Acquisi-
tion Regulation, the Defense Federal Acquisition Regula-
tion Supplement, and the Uniform Administrative Require-
ments, Cost Principles, and Audit Requirements for Federal 
Awards shall be revised to provide that, upon notice from 
the head of an executive agency (or the designee of such 
head) or the commander of a covered combatant command 
(or the specified deputies of the commander) pursuant to 
subsection (b), the head of contracting activity of an execu-
tive agency, or other appropriate official, may do the fol-
lowing: 
(1) Restrict the award of contracts, grants, or co-
operative agreements of the executive agency con-
cerned upon a written determination by the head of 
contracting activity or other appropriate official that 
the contract, grant, or cooperative agreement would 
provide funds received under such contract, grant, or 
cooperative agreement directly or indirectly to a cov-
ered person or entity. 
(2) Terminate for default any contract, grant, or 
cooperative agreement of the executive agency con-
cerned upon a written determination by the head of
383 
contracting activity or other appropriate official that 
the contractor, or the recipient of the grant or cooper-
ative agreement, has failed to exercise due diligence to 
ensure that none of the funds received under the con-
tract, grant, or cooperative agreement are provided 
directly or indirectly to a covered person or entity. 
(3) Void in whole or in part any contract, grant, 
or cooperative agreement of the executive agency con-
cerned upon a written determination by the head of 
contracting activity or other appropriate official that 
the contract, grant, or cooperative agreement provides 
funds directly or indirectly to a covered person or en-
tity. 
(d) CLAUSE.— 
(1) IN GENERAL.—Not later than 270 days after 
the date of the enactment of this Act, the Federal Ac-
quisition Regulation, the Defense Federal Acquisition 
Regulation Supplement, and the Uniform Adminis-
trative Requirements, Cost Principles, and Audit Re-
quirements for Federal Awards shall be revised to re-
quire that— 
(A) the clause described in paragraph (2) 
shall be included in each covered contract, grant, 
and cooperative agreement of an executive agen-
cy that is awarded on or after the date that is
385 
(A) A contract, grant, or cooperative agree-
ment that is void is unenforceable as contrary to 
public policy. 
(B) A contract, grant, or cooperative agree-
ment that is void in part is unenforceable as 
contrary to public policy with regard to a seg-
regable task or effort under the contract, grant, 
or cooperative agreement. 
(4) PUBLIC COMMENT.—The President shall en-
sure that the process for revising regulations required 
by paragraph (1) shall include an opportunity for 
public comment, including an opportunity for com-
ment on standards of due diligence required by this 
section. 
(e) REQUIREMENTS
FOLLOWING
CONTRACT
AC-
TIONS.—Not later than 270 days after the date of the enact-
ment of this Act, the Federal Acquisition Regulation, the 
Defense Federal Acquisition Regulation Supplement, and 
the Uniform Administrative Requirements, Cost Principles, 
and Audit Requirements for Federal Awards shall be re-
vised as follows: 
(1) To require that any head of contracting ac-
tivity, or other appropriate official, taking an action 
under subsection (c) to terminate, void, or restrict a 
contract, grant, or cooperative agreement notify in
386 
writing the contractor or recipient of the grant or co-
operative agreement, as applicable, of the action. 
(2) To permit the contractor or recipient of a 
grant or cooperative agreement subject to an action 
taken under subsection (c) to terminate or void the 
contract, grant, or cooperative agreement, as the case 
may be, an opportunity to challenge the action by re-
questing an administrative review of the action under 
the procedures of the executive agency concerned not 
later than 30 days after receipt of notice of the action. 
(f) ANNUAL REVIEW; PROTECTION OF CLASSIFIED IN-
FORMATION.— 
(1) ANNUAL REVIEW.—The Secretary of Defense, 
in conjunction with the Director of National Intel-
ligence and in consultation with the Secretary of 
State shall, on an annual basis, review the lists of 
persons and entities previously covered by a notice 
under subsection (b) as having been identified as de-
scribed by subsection (a) in order to determine wheth-
er or not such persons and entities continue to war-
rant identification as described by subsection (a). If 
a determination is made pursuant to such a review 
that a person or entity no longer warrants identifica-
tion as described by subsection (a), the Secretary of 
Defense shall notify the head of the executive agency
387 
concerned (or the designee of such head) and the com-
mander of the covered combatant command concerned 
(or the specified deputies of the commander) in writ-
ing of such determination. 
(2) PROTECTION OF CLASSIFIED INFORMATION.— 
Classified information relied upon to make an identi-
fication in accordance with subsection (a) may not be 
disclosed to a contractor or a recipient of a grant or 
cooperative agreement with respect to which an action 
is taken pursuant to the authority provided in sub-
section (c), or to their representatives, in the absence 
of a protective order issued by a court of competent 
jurisdiction established under Article I or Article III 
of the Constitution of the United States that specifi-
cally addresses the conditions upon which such classi-
fied information may be so disclosed. 
(g) DELEGATION OF CERTAIN RESPONSIBILITIES.— 
(1) COMBATANT COMMAND RESPONSIBILITIES.— 
The commander of a covered combatant command 
may delegate the responsibilities in this section to any 
deputies of the commander specified by the com-
mander for purposes of this section. Any delegation of 
responsibilities under this paragraph shall be made 
in writing.
388 
(2) NONDELEGATION
OF
RESPONSIBILITY
FOR 
CERTAIN ACTIONS.—The authority provided by sub-
section (c) to terminate, void, or restrict contracts, 
grants, and cooperative agreements, in whole or in 
part, may not be delegated below the level of head of 
contracting activity, or equivalent official for pur-
poses of grants or cooperative agreements. 
(h) ADDITIONAL RESPONSIBILITIES
OF EXECUTIVE 
AGENCIES.— 
(1) SHARING OF INFORMATION ON SUPPORTERS 
OF THE ENEMY.—The Secretary of Defense shall, in 
consultation with the Director of the Office of Man-
agement and Budget, carry out a program through 
which agency components may provide information to 
heads of executive agencies (or the designees of such 
heads) and the commanders of the covered combatant 
commands (or the specified deputies of the com-
manders) relating to persons or entities who may be 
providing funds, including goods and services, re-
ceived under contracts, grants, or cooperative agree-
ments of the executive agencies directly or indirectly 
to a covered person or entity. The program shall be 
designed to facilitate and encourage the sharing of 
risk and threat information between executive agen-
cies and the covered combatant commands.
389 
(2) INCLUSION OF INFORMATION ON CONTRACT 
ACTIONS IN FAPIIS AND OTHER SYSTEMS.—Upon the 
termination, voiding, or restriction of a contract, 
grant, or cooperative agreement of an executive agen-
cy under subsection (c), the head of contracting activ-
ity of the executive agency shall provide for the inclu-
sion in the Federal Awardee Performance and Integ-
rity Information System (FAPIIS), or other formal 
system of records on contractors or entities, of appro-
priate information on the termination, voiding, or re-
striction, as the case may be, of the contract, grant, 
or cooperative agreement. 
(3) REPORTS.—The head of contracting activity 
that receives a notice pursuant to subsection (b) shall 
submit to the head of the executive agency concerned 
(or the designee of such head) and the commander of 
the covered combatant command concerned (or speci-
fied deputies) a report on the action, if any, taken by 
the head of contracting activity pursuant to sub-
section (c), including a determination not to termi-
nate, void, or restrict the contract, grant, or coopera-
tive agreement as otherwise authorized by subsection 
(c). 
(i) REPORTS.—
390 
(1) IN GENERAL.—Not later than March 1 of 
2016, 2017, and 2018, the Director of the Office of 
Management and Budget shall submit to the appro-
priate committees of Congress a report on the use of 
the authorities in this section in the preceding cal-
endar year, including the following: 
(A) For each instance in which an executive 
agency exercised the authority to terminate, void, 
or restrict a contract, grant, and cooperative 
agreement pursuant to subsection (c), based on a 
notification under subsection (b), the following: 
(i) The executive agency taking such 
action. 
(ii) An explanation of the basis for the 
action taken. 
(iii) The value of the contract, grant, 
or cooperative agreement voided or termi-
nated. 
(iv) The value of all contracts, grants, 
or cooperative agreements of the executive 
agency in force with the person or entity 
concerned at the time the contract, grant, or 
cooperative agreement was terminated or 
voided.
391 
(B) For each instance in which an executive 
agency did not exercise the authority to termi-
nate, void, or restrict a contract, grant, and co-
operative agreement pursuant to subsection (c), 
based on a notification under subsection (b), the 
following: 
(i) The executive agency concerned. 
(ii) An explanation of the basis for not 
taking the action. 
(2) FORM.—Any report under this subsection 
may, at the election of the Director— 
(A) be submitted in unclassified form, but 
with a classified annex; or 
(B) be submitted in classified form. 
(j) 
INAPPLICABILITY
TO
CERTAIN
CONTRACTS, 
GRANTS, AND COOPERATIVE AGREEMENTS.—The provi-
sions of this section do not apply to contracts, grants, and 
cooperative agreements that are performed entirely inside 
the United States. 
(k) NATIONAL SECURITY EXCEPTION.—Nothing in this 
section shall apply to the authorized intelligence or law en-
forcement activities of the United States Government. 
(l) CONSTRUCTION WITH OTHER AUTHORITIES.—Ex-
cept as provided in subsection (m), the authorities in this 
section shall be in addition to, and not to the exclusion of,
392 
any other authorities available to executive agencies to im-
plement policies and purposes similar to those set forth in 
this section. 
(m) COORDINATION WITH CURRENT AUTHORITIES.— 
(1) REPEAL
OF
SUPERSEDED
AUTHORITY
RE-
LATED TO CENTCOM.—Effective 270 days after the 
date of the enactment of this Act, section 841 of the 
National Defense Authorization Act for Fiscal Year 
2012 (Public Law 112–81; 125 Stat. 1510; 10 U.S.C. 
2302 note) is repealed. 
(2) REPEAL
OF
SUPERSEDED
AUTHORITY
RE-
LATED TO DEPARTMENT OF DEFENSE.—Effective 270 
days after the date of the enactment of this Act, sec-
tion 831 of the National Defense Authorization Act 
for Fiscal Year 2014 (Public Law 113–66; 127 Stat. 
810; 10 U.S.C. 2302 note) is repealed. 
(3) USE OF SUPERSEDED AUTHORITIES IN IM-
PLEMENTATION OF REQUIREMENTS.—In providing for 
the implementation of the requirements of this section 
by the Department of Defense, the Secretary of De-
fense may use and modify for that purpose the regula-
tions and procedures established for purposes of the 
implementation of the requirements of section 841 of 
the National Defense Authorization Act for Fiscal
393 
Year 2012 and section 831 of the National Defense 
Authorization Act for Fiscal Year 2014. 
(n) SUNSET.—The provisions of this section shall cease 
to be effective on December 31, 2019. 
SEC. 842. ADDITIONAL ACCESS TO RECORDS. 
(a) CONTRACTS, GRANTS, AND COOPERATIVE AGREE-
MENTS.— 
(1) IN GENERAL.—Not later than 270 days after 
the date of the enactment of this Act, applicable regu-
lations shall be revised to provide that, except as pro-
vided under subsection (c)(1), the clause described in 
paragraph (2) may, as appropriate, be included in 
each covered contract, grant, and cooperative agree-
ment of an executive agency that is awarded on or 
after the date of the enactment of this Act. 
(2) CLAUSE.—The clause described in this para-
graph is a clause authorizing the head of the executive 
agency concerned, upon a written determination pur-
suant to paragraph (3), to examine any records of the 
contractor, the recipient of a grant or cooperative 
agreement, or any subcontractor or subgrantee under 
such contract, grant, or cooperative agreement to the 
extent necessary to ensure that funds, including goods 
and services, available under the contract, grant, or
394 
cooperative agreement are not provided directly or in-
directly to a covered person or entity. 
(3) WRITTEN
DETERMINATION.—The authority 
to examine records pursuant to the contract clause de-
scribed in paragraph (2) may be exercised only upon 
a written determination by the contracting officer, or 
comparable official responsible for a grant or coopera-
tive agreement, upon a finding by the commander of 
a covered combatant command (or the specified depu-
ties of the commander) or the head of an executive 
agency (or the designee of such head) that there is 
reason to believe that funds, including goods and serv-
ices, available under the contract, grant, or coopera-
tive agreement concerned may have been provided di-
rectly or indirectly to a covered person or entity. 
(4) FLOWDOWN.—A clause described in para-
graph (2) may also be included in any subcontract or 
subgrant under a covered contract, grant, or coopera-
tive agreement if the subcontract or subgrant has an 
estimated value in excess of $50,000. 
(b) REPORTS.— 
(1) IN GENERAL.—Not later than March 1 of 
2016, 2017, and 2018, the Director of the Office of 
Management and Budget shall submit to the appro-
priate committees of Congress a report on the use of
395 
the authority provided by this section in the pre-
ceding calendar year. 
(2) ELEMENTS.—Each report under this sub-
section shall identify, for the calendar year covered by 
such report, each instance in which an executive 
agency exercised the authority provided under this 
section to examine records, explain the basis for the 
action taken, and summarize the results of any exam-
ination of records so undertaken. 
(3) FORM.—Any report under this subsection 
may be submitted in classified form. 
(c) RELATIONSHIP TO EXISTING AUTHORITIES APPLI-
CABLE TO CENTCOM.— 
(1) APPLICABILITY.—This section shall not 
apply to contracts, grants, or cooperative agreements 
covered under section 842 of the National Defense Au-
thorization Act for Fiscal Year 2012 (Public Law 
112–81; 125 Stat. 1513; 10 U.S.C. 2313 note). 
(2) EXTENSION OF CURRENT AUTHORITIES AP-
PLICABLE TO CENTCOM.—Section 842(d)(1) of the Na-
tional Defense Authorization Act for Fiscal Year 2012 
(Public Law 112–81; 125 Stat. 1514; 10 U.S.C. 2313 
note) is amended by striking ‘‘date of the enactment 
of this Act’’ and inserting ‘‘date of the enactment of 
the Carl Levin and Howard P. ‘Buck’ McKeon Na-
396 
tional Defense Authorization Act for Fiscal Year 
2015’’. 
SEC. 843. DEFINITIONS. 
In this subtitle: 
(1) APPROPRIATE COMMITTEES OF CONGRESS.— 
The term ‘‘appropriate committees of Congress’’ 
means— 
(A) the Committee on Armed Services, the 
Committee on Homeland Security and Govern-
mental Affairs, the Committee on Foreign Rela-
tions, and the Committee on Appropriations of 
the Senate; and 
(B) the Committee on Armed Services, the 
Committee on Oversight and Government Re-
form, the Committee on Foreign Affairs, and the 
Committee on Appropriations of the House of 
Representatives. 
(2) CONTINGENCY OPERATION.—The term ‘‘con-
tingency operation’’ has the meaning given that term 
in section 101(a)(13) of title 10, United States Code. 
(3) CONTRACT.—The term ‘‘contract’’ includes a 
contract for commercial items but is not limited to a 
contract for commercial items. 
(4) COVERED COMBATANT COMMAND.—The term 
‘‘covered combatant command’’ means the following:
398 
(8) HEAD OF CONTRACTING ACTIVITY.—The term 
‘‘head of contracting activity’’ has the meaning de-
scribed in section 1.601 of the Federal Acquisition 
Regulation. 
(9) UNIFORM ADMINISTRATIVE REQUIREMENTS, 
COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR 
FEDERAL AWARDS.—The term ‘‘Uniform Administra-
tive Requirements, Cost Principles, and Audit Re-
quirements for Federal Awards’’ means the guidance 
issued by the Office of Management and Budget in 
part 200 of chapter II of title 2 of the Code of Federal 
Regulations. 
Subtitle F—Other Matters 
SEC. 851. RAPID ACQUISITION AND DEPLOYMENT PROCE-
DURES FOR UNITED STATES SPECIAL OPER-
ATIONS COMMAND. 
(a) AUTHORITY TO ESTABLISH PROCEDURES.—The 
Secretary may prescribe procedures for the rapid acquisi-
tion and deployment of items for the United States Special 
Operations Command that are currently under development 
by the Department of Defense or available from the commer-
cial sector and are— 
(1) urgently needed to react to an enemy threat 
or to respond to significant and urgent safety situa-
tions;
399 
(2) needed to avoid significant risk of loss of life 
or mission failure; or 
(3) needed to avoid collateral damage risk where 
the absence of collateral damage is a requirement for 
mission success. 
(b) ISSUES TO BE ADDRESSED.—The procedures pre-
scribed under subsection (a) shall include the following: 
(1) A process for streamlined communication be-
tween the Commander of the United States Special 
Operations Command and the acquisition and re-
search and development communities, including— 
(A) a process for the Commander to commu-
nicate needs to the acquisition community and 
the research and development community; and 
(B) a process for the acquisition community 
and the research and development community to 
propose items that meet the needs communicated 
by the Commander. 
(2) Procedures for demonstrating, rapidly ac-
quiring, and deploying items proposed pursuant to 
paragraph (1)(B), including— 
(A) a process for demonstrating perform-
ance and evaluating for current operational pur-
poses the existing capability of an item;
400 
(B) a process for developing an acquisition 
and funding strategy for the deployment of an 
item; and 
(C) a process for making deployment deter-
minations based on information obtained pursu-
ant to subparagraphs (A) and (B). 
(c) TESTING REQUIREMENT.— 
(1) IN GENERAL.—The process for demonstrating 
performance and evaluating for current operational 
purposes the existing capability of an item prescribed 
under subsection (b)(2)(A) shall include— 
(A) an operational assessment in accord-
ance with expedited procedures prescribed by the 
Director of Operational Testing and Evaluation; 
and 
(B) a requirement to provide information to 
the deployment decision-making authority about 
any deficiency of the item in meeting the origi-
nal requirements for the item (as stated in an 
operational requirements document or similar 
document). 
(2) DEFICIENCY NOT A DETERMINING FACTOR.— 
The process may not include a requirement for any 
deficiency of an item to be the determining factor in 
deciding whether to deploy the item.
401 
(3) ADDITIONAL REQUIREMENT IN CASE OF DE-
FICIENCY.—In the case of any deficiency of an item, 
a decision to deploy the item may be made only if the 
Commander of the United States Special Operations 
Command determines that, for reasons of national se-
curity, the deficiency of the item is acceptable. 
(d) LIMITATION.—The quantity of items of a system 
procured using the procedures prescribed pursuant to this 
section may not exceed the number established for low-rate 
initial production for the system. Any such items shall be 
counted for purposes of the number of items of the system 
that may be procured through low-rate initial production. 
(e) ANNUAL FUNDING LIMITATION.—Of the funds 
available to the Commander of the United States Special 
Operations Command in any given fiscal year, not more 
than $50,000,000 may be used to procure items under this 
section. 
(f) RELATIONSHIP TO OTHER RAPID ACQUISITION AU-
THORITY.—The Commander of the United States Special 
Operations Command may not use the authority under this 
section at the same time the Commander uses the authority 
under section 806 of the Bob Stump National Defense Au-
thorization Act for Fiscal Year 2003 (Public Law 107–314; 
10 U.S.C. 2302 note). 
(g) CONGRESSIONAL NOTIFICATIONS.—
402 
(1) NOTIFICATION BEFORE PROCEDURES GO INTO 
EFFECT.—The Secretary of Defense shall notify the 
congressional defense committees at least 30 days be-
fore the procedures prescribed pursuant to this section 
are made effective. 
(2) NOTIFICATION
AFTER
USE
OF
PROCE-
DURES.—The Secretary of Defense shall notify the 
congressional defense committees not later than 48 
hours after each use of the procedures prescribed pur-
suant to this section. 
SEC. 852. CONSIDERATION OF CORROSION CONTROL IN 
PRELIMINARY DESIGN REVIEW. 
The Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics shall ensure that Department of De-
fense Instruction 5000.02 and other applicable guidance re-
quire full consideration, during preliminary design review 
for a product, of metals, materials, and technologies that 
effectively prevent or control corrosion over the life cycle of 
the product. 
SEC. 853. PROGRAM MANAGER DEVELOPMENT REPORT. 
(a) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to the congressional defense committees a report on 
enhancing the role of Department of Defense civilian and
403 
military program managers in developing and carrying out 
defense acquisition programs. 
(b) MATTERS TO BE ADDRESSED.—The report re-
quired by this section shall address, at a minimum, rec-
ommendations for— 
(1) enhancing training and educational opportu-
nities for program managers; 
(2) increasing emphasis on the mentoring of cur-
rent and future program managers by experienced 
senior executives and program managers within the 
Department; 
(3) improving career paths and career opportu-
nities for program managers; 
(4) creating additional incentives for the recruit-
ment and retention of highly qualified individuals to 
serve as program managers; 
(5) improving required resource levels and sup-
port (including systems engineering expertise, cost es-
timating expertise, and software development exper-
tise) for program managers; 
(6) improving means of collecting and dissemi-
nating best practices and lessons learned to enhance 
program management across the Department;
404 
(7) creating common templates and tools to sup-
port improved data gathering and analysis for pro-
gram management and oversight purposes; 
(8) increasing accountability of program man-
agers for the results of defense acquisition programs; 
(9) enhancing monetary and nonmonetary 
awards for successful accomplishment of program ob-
jectives by program managers; and 
(10) improving program manager tenure with 
the goal of maintaining both civilian and military 
program managers in their positions for a sufficient 
period of time to ensure program stability and con-
sistency of leadership, including consideration of 
tying program manager tenure to milestone decision 
points for major defense acquisition programs and 
major automated information system programs. 
SEC. 854. OPERATIONAL METRICS FOR JOINT INFORMA-
TION ENVIRONMENT AND SUPPORTING AC-
TIVITIES. 
(a) GUIDANCE.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense, acting 
through the Chief Information Officer of the Department 
of Defense, shall issue guidance for measuring the oper-
ational effectiveness and efficiency of the Joint Information 
Environment within the military departments, Defense
405 
Agencies, and combatant commands. The guidance shall in-
clude a definition of specific metrics for data collection, and 
a requirement for each military department, Defense Agen-
cy, and combatant command to regularly collect and assess 
data on such operational effectiveness and efficiency and 
report the results to such Chief Information Officer on a 
regular basis. 
(b) BASELINE ARCHITECTURE.—The Chief Informa-
tion Officer of the Department of Defense shall identify a 
baseline architecture for the Joint Information Environ-
ment by identifying and reporting to the Secretary of De-
fense any information technology programs or other invest-
ments that support that architecture. 
(c) JOINT INFORMATION ENVIRONMENT DEFINED.—In 
this section, the term ‘‘Joint Information Environment’’ 
means the initiative of the Department of Defense to mod-
ernize the information technology networks and systems 
within the Department. 
SEC. 855. COMPLIANCE WITH REQUIREMENTS FOR SENIOR 
DEPARTMENT OF DEFENSE OFFICIALS SEEK-
ING EMPLOYMENT WITH DEFENSE CONTRAC-
TORS. 
Section 847(b)(1) of the National Defense Authoriza-
tion Act for Fiscal Year 2008 (Public Law 110–181; 122 
Stat. 243; 10 U.S.C. 1701 note) is amended by inserting
406 
after ‘‘repository’’ the following: ‘‘maintained by the Gen-
eral Counsel of the Department’’. 
SEC. 856. ENHANCEMENT OF WHISTLEBLOWER PROTEC-
TION FOR EMPLOYEES OF GRANTEES. 
(a) ADDITION OF REFERENCE TO GRANTEE.—Section 
2409(a)(1) of title 10, United States Code, is amended by 
striking ‘‘or subcontractor’’ and inserting ‘‘, subcontractor, 
grantee, or subgrantee’’. 
(b) CONFORMING AMENDMENTS.—Section 2409(g) of 
such title is amended— 
(1) in paragraph (4), by striking ‘‘or a grant’’; 
and 
(2) by adding at the end the following new para-
graph: 
‘‘(7) The term ‘grantee’ means a person awarded 
a grant with an agency.’’. 
SEC. 857. PROHIBITION ON REIMBURSEMENT OF CONTRAC-
TORS FOR CONGRESSIONAL INVESTIGATIONS 
AND INQUIRIES. 
Section 2324(e)(1) of title 10, United States Code, is 
amended by adding at the end the following new subpara-
graph: 
‘‘(Q) Costs incurred by a contractor in connec-
tion with a congressional investigation or inquiry 
into an issue that is the subject matter of a pro-
407 
ceeding resulting in a disposition as described in sub-
section (k)(2).’’. 
SEC. 858. REQUIREMENT TO PROVIDE PHOTOVOLTAIC DE-
VICES FROM UNITED STATES SOURCES. 
(a) CONTRACT REQUIREMENT.—The Secretary of De-
fense shall ensure that each covered contract includes a pro-
vision requiring that any photovoltaic device installed 
under the contract be manufactured in the United States 
substantially all from articles, materials, or supplies mined, 
produced, or manufactured in the United States, unless the 
head of the department or independent establishment con-
cerned determines, on a case-by-case basis, that the inclu-
sion of such requirement is inconsistent with the public in-
terest or involves unreasonable costs, subject to exceptions 
provided in the Trade Agreements Act of 1979 (19 U.S.C. 
2501 et seq.) or otherwise provided by law. 
(b) DEFINITIONS.—In this section: 
(1) COVERED
CONTRACT.—The term ‘‘covered 
contract’’ means a contract awarded by the Depart-
ment of Defense that provides for a photovoltaic de-
vice to be— 
(A) installed inside the United States on 
Department of Defense property or in a facility 
owned by the Department of Defense; or
408 
(B) reserved for the exclusive use of the De-
partment of Defense in the United States for the 
full economic life of the device. 
(2) PHOTOVOLTAIC DEVICE.—The term ‘‘photo-
voltaic device’’ means a device that converts light di-
rectly into electricity through a solid-state, semicon-
ductor process. 
SEC. 859. REIMBURSEMENT OF DEPARTMENT OF DEFENSE 
FOR ASSISTANCE PROVIDED TO NONGOVERN-
MENTAL ENTERTAINMENT-ORIENTED MEDIA 
PRODUCERS. 
(a) IN GENERAL.—Subchapter II of chapter 134 of 
title 10, United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 2264. Reimbursement for assistance provided to 
nongovernmental entertainment-oriented 
media producers 
‘‘(a) IN GENERAL.—There shall be credited to the ap-
plicable appropriations account or fund from which the ex-
penses described in subsection (b) were charged any 
amounts received by the Department of Defense as reim-
bursement for such expenses. 
‘‘(b) DESCRIPTION OF EXPENSES.—The expenses re-
ferred to in subsection (a) are any expenses—
409 
‘‘(1) incurred by the Department of Defense as a 
result of providing assistance to a nongovernmental 
entertainment-oriented media producer; 
‘‘(2) for which the Department of Defense re-
quires reimbursement under section 9701 of title 31 
or any other provision of law; and 
‘‘(3) for which the Department of Defense re-
ceived reimbursement after the date of the enactment 
of the Carl Levin and Howard P. ‘Buck’ McKeon Na-
tional Defense Authorization Act for Fiscal Year 
2015.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such subchapter is amended by adding at 
the end the following new item: 
‘‘2264. Reimbursement for assistance provided to nongovernmental entertainment- 
oriented media producers.’’. 
SEC. 860. THREE-YEAR EXTENSION OF AUTHORITY FOR 
JOINT URGENT OPERATIONAL NEEDS FUND. 
Section 2216a(e) of title 10, United States Code, is 
amended by striking ‘‘September 30, 2015’’ and inserting 
‘‘September 30, 2018’’. 
TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND 
MANAGEMENT 
Subtitle A—Department of Defense Management 
Sec. 901. Reorganization of the Office of the Secretary of Defense and Related 
Matters.
410 
Sec. 902. Assistant Secretary of Defense for Manpower and Reserve Affairs. 
Sec. 903. Requirement for assessment of options to modify the number of combat-
ant commands. 
Sec. 904. Office of Net Assessment. 
Sec. 905. Periodic review of Department of Defense management headquarters. 
Subtitle B—Other Matters 
Sec. 911. Modifications of biennial strategic workforce plan relating to senior 
management, functional, and technical workforces of the Depart-
ment of Defense. 
Sec. 912. Repeal of extension of Comptroller General report on inventory. 
Sec. 913. Extension of authority to waive reimbursement of costs of activities for 
nongovernmental personnel at Department of Defense regional 
centers for security studies. 
Sec. 914. Pilot program to establish Government lodging program. 
Sec. 915. Single standard mileage reimbursement rate for privately owned auto-
mobiles of Government employees and members of the uniformed 
services. 
Sec. 916. Modifications to requirements for accounting for members of the Armed 
Forces and Department of Defense civilian employees listed as 
missing. 
Subtitle A—Department of Defense 
Management 
SEC. 901. REORGANIZATION OF THE OFFICE OF THE SEC-
RETARY OF DEFENSE AND RELATED MAT-
TERS. 
(a) CONVERSION
OF POSITION
OF DEPUTY CHIEF 
MANAGEMENT OFFICER
TO POSITION
OF UNDER SEC-
RETARY OF DEFENSE FOR BUSINESS MANAGEMENT AND IN-
FORMATION.— 
(1) IN
GENERAL.—Effective on February 1, 
2017, section 132a of title 10, United States Code, is 
amended to read as follows:
411 
‘‘§ 132a. Under Secretary of Defense for Business Man-
agement and Information 
‘‘(a) There is an Under Secretary of Defense for Busi-
ness Management and Information, appointed from civil-
ian life by the President, by and with the advice and con-
sent of the Senate. 
‘‘(b) The Under Secretary also serves as— 
‘‘(1) the Performance Improvement Officer of the 
Department of Defense; and 
‘‘(2) the Chief Information Officer of the Depart-
ment of Defense. 
‘‘(c) Subject to the authority, direction, and control of 
the Secretary of Defense and the Deputy Secretary of De-
fense in the role of the Deputy Secretary as the Chief Man-
agement Officer of the Department of Defense, the Under 
Secretary of Defense for Business Management and Infor-
mation shall perform such duties and exercise such powers 
as the Secretary of Defense may prescribe, including the 
following: 
‘‘(1) Assisting the Deputy Secretary of Defense 
in the Deputy Secretary’s role as the Chief Manage-
ment Officer of the Department of Defense under sec-
tion 132(c) of this title. 
‘‘(2) Supervising the management of the business 
operations of the Department of Defense and adjudi-
412 
cating issues and conflicts in functional domain busi-
ness policies. 
‘‘(3) Establishing business strategic planning 
and performance management policies and measures 
and developing the Department of Defense Strategic 
Management Plan. 
‘‘(4) Establishing business information tech-
nology portfolio policies and overseeing investment 
management of that portfolio for the Department of 
Defense. 
‘‘(5) Establishing end-to-end business process 
and policies for establishing, eliminating, and imple-
menting business standards, and managing the Busi-
ness Enterprise Architecture. 
‘‘(6) 
Supervising 
the 
business 
process 
re-
engineering of the functional domains of the Depart-
ment in order to support investment planning and 
technology development decision making for informa-
tion technology systems. 
‘‘(d) The Under Secretary of Defense for Business 
Management and Information takes precedence in the De-
partment of Defense after the Secretary of Defense and the 
Deputy Secretary of Defense.’’. 
(2) PLACEMENT IN THE OFFICE OF THE SEC-
RETARY OF DEFENSE.—Effective on the effective date
413 
specified in paragraph (1), section 131(b)(2) of such 
title is amended— 
(A) by redesignating subparagraphs (A) 
through (E) as subparagraphs (B) through (F), 
respectively; and 
(B) by inserting before subparagraph (B) 
(as so redesignated) the following new subpara-
graph (A): 
‘‘(A) The Under Secretary of Defense for 
Business Management and Information.’’. 
(b) CHIEF INFORMATION OFFICER OF THE DEPART-
MENT OF DEFENSE.— 
(1) STATUTORY ESTABLISHMENT OF POSITION.— 
Chapter 4 of title 10, United States Code, is amended 
by inserting after section 141 the following new sec-
tion: 
‘‘§ 142. Chief Information Officer 
‘‘(a) There is a Chief Information Officer of the De-
partment of Defense. 
‘‘(b)(1) The Chief Information Officer of the Depart-
ment of Defense— 
‘‘(A) is the Chief Information Officer of the De-
partment of Defense for the purposes of sections 
3506(a)(2) and 3544(a)(3) of title 44;
414 
‘‘(B) has the responsibilities and duties specified 
in section 11315 of title 40; 
‘‘(C) has the responsibilities specified for the 
Chief Information Officer in sections 2222, 2223(a), 
and 2224 of this title; and 
‘‘(D) exercises authority, direction, and control 
over the Information Assurance Directorate of the Na-
tional Security Agency. 
‘‘(2) The Chief Information Officer shall perform such 
additional duties and exercise such powers as the Secretary 
of Defense may prescribe. 
‘‘(c) The Chief Information Officer takes precedence in 
the Department of Defense with the officials serving in posi-
tions specified in section 131(b)(4) of this title. The officials 
serving in positions specified in section 131(b)(4) and the 
Chief Information Officer of the Department of Defense take 
precedence among themselves in the order prescribed by the 
Secretary of Defense.’’. 
(2) PLACEMENT IN THE OFFICE OF THE SEC-
RETARY OF DEFENSE.—Section 131(b) of such title, 
as amended by subsection (a)(2), is further amend-
ed— 
(A) by redesignating paragraphs (5, (6), 
(7), and (8) as paragraphs (6), (7), (8), and (9), 
respectively; and
415 
(B) by inserting after paragraph (4) the fol-
lowing new paragraph (5): 
‘‘(5) The Chief Information Officer of the De-
partment of Defense.’’. 
(c) REPEAL OF REQUIREMENT FOR DEFENSE BUSI-
NESS SYSTEM MANAGEMENT COMMITTEE.—Section 186 of 
title 10, United States Code, is repealed. 
(d) ASSIGNMENT OF RESPONSIBILITY FOR DEFENSE 
BUSINESS SYSTEMS.—Section 2222 of title 10, United 
States Code, is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘and’’ at the end of para-
graph (1); 
(B) by striking ‘‘; and’’ at the end of para-
graph (2) and inserting a period; and 
(C) by striking paragraph (3); 
(2) in subsection (c)(1), by striking ‘‘Defense 
Business Systems Management Committee’’ and in-
serting ‘‘investment review board established under 
subsection (g)’’; and 
(3) in subsection (g)— 
(A) in paragraph (1), by striking ‘‘, not 
later than March 15, 2012,’’;
416 
(B) in paragraph (2)(C), by striking ‘‘each’’ 
the first place it appears and inserting ‘‘the’’; 
and 
(C) in paragraph (2)(F), by striking ‘‘and 
the Defense Business Systems Management Com-
mittee, as required by section 186(c) of this 
title,’’. 
(e) DEADLINE FOR ESTABLISHMENT OF INVESTMENT 
REVIEW BOARD AND INVESTMENT MANAGEMENT PROC-
ESS.—The investment review board and investment man-
agement process required by section 2222(g) of title 10, 
United States Code, as amended by subsection (d)(3), shall 
be established not later than March 15, 2015. 
(f) REDESIGNATION OF ASSISTANT SECRETARY OF DE-
FENSE FOR OPERATIONAL ENERGY PLANS AND PROGRAMS 
TO REFLECT MERGER WITH DEPUTY UNDER SECRETARY 
OF DEFENSE FOR INSTALLATIONS AND ENVIRONMENT.— 
Paragraph (9) of section 138(b) of title 10, United States 
Code, is amended to read as follows: 
‘‘(9) One of the Assistant Secretaries is the Assistant 
Secretary of Defense for Energy, Installations, and Envi-
ronment. The Assistant Secretary— 
‘‘(A) is the principal advisor to the Secretary of 
Defense and the Under Secretary of Defense for Ac-
417 
quisition, Technology, and Logistics on matters relat-
ing to energy, installations, and environment; and 
‘‘(B) is the principal advisor to the Secretary of 
Defense and the Deputy Secretary of Defense regard-
ing operational energy plans and programs.’’. 
(g) CLARIFICATION OF POLICY AND RESPONSIBILITIES 
OF ASSISTANT SECRETARY OF DEFENSE FOR ENERGY, IN-
STALLATIONS, AND ENVIRONMENT.— 
(1) TRANSFER OF POLICY PROVISIONS FROM SEC-
TION 138C.—Chapter 173 of such title is amended— 
(A) by adding at the end the following new 
section: 
‘‘§ 2926. Operational energy activities’’; 
(B) by transferring paragraph (3) of section 
138c(c) of such title to section 2926, as added by 
subparagraph (A), inserting such paragraph 
after the section heading, and redesignating such 
paragraph as subsection (a); 
(C) in subsection (a) (as so inserted and re-
designated)— 
(i) by inserting ‘‘ALTERNATIVE FUEL 
ACTIVITIES.—’’ before ‘‘The Assistant Sec-
retary’’;
418 
(ii) by redesignating subparagraphs 
(A) through (E) as paragraphs (1) through 
(5), respectively; and 
(iii) in paragraph (5) (as so redesig-
nated), by striking ‘‘subsection (e)(4)’’ and 
inserting ‘‘subsection (c)(4)’’; 
(D) by transferring subsections (d), (e), and 
(f) of section 138c of such title to section 2926, 
as added by subparagraph (A), inserting those 
subsections after subsection (a) (as transferred 
and redesignated by subparagraph (B)), and re-
designating those subsections as subsections (b), 
(c), and (d), respectively; 
(E) in subsections (a), (b), (c), and (d) of 
section 2926 (as transferred and redesignated by 
subparagraphs (B) and (D)), by inserting ‘‘of 
Defense for Installations, Energy, and Environ-
ment’’ after ‘‘Assistant Secretary’’ the first place 
it appears in each such subsection; 
(F) in subsection (b) of section 2926 (as 
transferred and redesignated by subparagraph 
(D)), by striking ‘‘provide guidance to, and con-
sult with, the Secretary of Defense, the Deputy 
Secretary of Defense, the Secretaries of the mili-
tary departments,’’ and inserting ‘‘make rec-
419 
ommendations to the Secretary of Defense and 
Deputy Secretary of Defense and provide guid-
ance to the Secretaries of the military depart-
ments’’; and 
(G) in subsection (c) of section 2926 (as 
transferred and redesignated by subparagraph 
(D)), by amending paragraphs (4), (5), and (6) 
to read as follows: 
‘‘(4) Not later than 30 days after the date on which 
the budget for a fiscal year is submitted to Congress pursu-
ant to section 1105 of title 31, the Secretary of Defense shall 
submit to Congress a report on the proposed budgets for that 
fiscal year that were reviewed by the Assistant Secretary 
under paragraph (3). 
‘‘(5) For each proposed budget covered by a report 
under paragraph (4) for which the certification of the As-
sistant Secretary under paragraph (3) is that the budget 
is not adequate for implementation of the strategy, the re-
port shall include the following: 
‘‘(A) A copy of the report set forth in paragraph 
(3). 
‘‘(B) A discussion of the actions that the Sec-
retary proposes to take, together with any rec-
ommended legislation that the Secretary considers ap-
420 
propriate, to address the inadequacy of the proposed 
budget. 
‘‘(C) An appendix prepared by the Chairman of 
the Joint Chiefs of Staff describing— 
‘‘(i) the progress made by the Joint Re-
quirements Oversight Council in implementing 
the energy Key Performance Parameter; and 
‘‘(ii) details regarding how operational en-
ergy is being addressed in defense planning, sce-
narios, support to strategic analysis, and result-
ing policy to improve combat capability. 
‘‘(D) An appendix prepared by the Under Sec-
retary of Defense for Acquisition, Technology, and Lo-
gistics certifying that and describing how the acquisi-
tion system is addressing operational energy in the 
procurement process, including long-term sustainment 
considerations, and how programs are extending com-
bat capability as a result of these considerations. 
‘‘(E) A separate statement of estimated expendi-
tures and requested appropriations for that fiscal 
year for the activities of the Assistant Secretary in 
carrying out the duties of the Assistant Secretary. 
‘‘(F) Any additional comments that the Sec-
retary considers appropriate regarding the inad-
equacy of the proposed budgets.
421 
‘‘(6) For each proposed budget covered by a report 
under paragraph (4) for which the certification of the As-
sistant Secretary under paragraph (3) is that the budget 
is adequate for implementation of the strategy, the report 
shall include the items set forth in subparagraphs (C), (D), 
and (E) of paragraph (5).’’. 
(2) REPEAL OF SUPERSEDED PROVISION.—Sec-
tions 138c of such title is repealed. 
(h) AMENDMENTS
RELATING
TO
CERTAIN
PRE-
SCRIBED
ASSISTANT
SECRETARY
OF
DEFENSE
POSI-
TIONS.—Chapter 4 of title 10, United States Code, is fur-
ther amended as follows: 
(1) ASSISTANT SECRETARY OF DEFENSE FOR LO-
GISTICS AND MATERIEL READINESS.—Paragraph (7) 
of section 138(b) is amended— 
(A) in the first sentence, by inserting after 
‘‘Readiness’’ the following: ‘‘, who shall be ap-
pointed from among persons with an extensive 
background in the sustainment of major weapons 
systems and combat support equipment’’; 
(B) by striking the second sentence; 
(C) by transferring to the end of that para-
graph (as amended by subparagraph (B)) the 
text of subsection (b) of section 138a;
422 
(D) by transferring to the end of that para-
graph (as amended by subparagraph (C)) the 
text of subsection (c) of section 138a; and 
(E) 
by 
redesignating 
paragraphs 
(1) 
through (3) in the text transferred by subpara-
graph (C) of this paragraph as subparagraphs 
(A) through (C), respectively. 
(2) ASSISTANT SECRETARY OF DEFENSE FOR RE-
SEARCH AND ENGINEERING.—Paragraph (8) of such 
section is amended— 
(A) by striking the second sentence and in-
serting the text of subsection (a) of section 138b; 
(B) by inserting after the text added by sub-
paragraph (A) of this paragraph the following: 
‘‘The Assistant Secretary, in consultation with 
the Deputy Assistant Secretary of Defense for 
Developmental Test and Evaluation, shall—’’; 
(C) by transferring paragraphs (1) and (2) 
of subsection (b) of section 138b to the end of 
that paragraph (as amended by subparagraphs 
(A) and (B)), indenting those paragraphs 2 ems 
from the left margin, and redesignating those 
paragraphs as subparagraphs (A) and (B), re-
spectively;
423 
(D) in subparagraph (A) (as so transferred 
and redesignated)— 
(i) by striking ‘‘The Assistant Sec-
retary’’ and all that follows through ‘‘Test 
and Evaluation, shall’’; and 
(ii) by striking the period at the end 
and inserting ‘‘; and’’; and 
(E) in subparagraph (B) (as so transferred 
and redesignated), by striking ‘‘The Assistant 
Secretary’’ and all that follows through ‘‘Test 
and Evaluation, shall’’. 
(3) ASSISTANT SECRETARY OF DEFENSE FOR NU-
CLEAR, CHEMICAL, AND BIOLOGICAL DEFENSE PRO-
GRAMS.—Paragraph (10) of such section is amend-
ed— 
(A) by striking the second sentence and in-
serting the text of subsection (b) of section 138d; 
and 
(B) by inserting after the text added by sub-
paragraph (A) of this paragraph the text of sub-
section (a) of such section and in that text as so 
inserted— 
(i) by striking ‘‘of Defense for Nuclear, 
Chemical, and Biological Defense Pro-
grams’’; and
424 
(ii) by redesignating paragraphs (1) 
through (3) as subparagraphs (A) through 
(C), respectively. 
(4) REPEAL OF SEPARATE SECTIONS.—Sections 
138a, 138b, and 138d are repealed. 
(i) CODIFICATION OF RESTRICTIONS ON USE OF THE 
DEPUTY UNDER SECRETARY OF DEFENSE TITLE.— 
(1) CODIFICATION.—Effective on January 1, 
2015, section 137a(a) of title 10, United States Code, 
is amended by adding at the end the following new 
paragraph: 
‘‘(3) The officials authorized under this section shall 
be the only Deputy Under Secretaries of Defense.’’. 
(2) CONFORMING REPEAL.—Effective on the ef-
fective date specified in paragraph (1), section 
906(a)(2) of the National Defense Authorization Act 
for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 
2426; 10 U.S.C. 137a note) is repealed. 
(j) CLARIFICATION OF ORDERS OF PRECEDENCE.— 
(1) CLARIFICATION RELATING TO CHIEF INFOR-
MATION OFFICER.—Effective on the effective date spec-
ified in subsection (a)(1)— 
(A) section 131(b) of title 10, United States 
Code, is amended— 
(i) by striking paragraph (5); and
425 
(ii) by redesignating paragraphs (6), 
(7), (8), and (9) as paragraphs (5), (6), (7), 
and (8), respectively; and 
(B) section 142 of such title is amended by 
striking subsection (c). 
(2) CLARIFICATION RELATING TO OTHER POSI-
TIONS.—Effective on the effective date specified in 
subsection (a)(1)— 
(A) section 133(e)(1) of title 10, United 
States Code, is amended by striking ‘‘and the 
Deputy Secretary of Defense’’ and inserting ‘‘, 
the Deputy Secretary of Defense, and the Under 
Secretary of Defense for Business Management 
and Information’’; 
(B) section 134(c) of such title is amended 
by inserting ‘‘the Under Secretary of Defense for 
Business Management and Information,’’ after 
‘‘the Deputy Secretary of Defense,’’; 
(C) section 137a(d) of such title is amended 
in the first sentence by striking all that follows 
after ‘‘the military departments,’’ and inserting 
‘‘and the Under Secretaries of Defense.’’; and 
(D) section 138(d) of such title is amended 
by striking ‘‘the Deputy Chief Management Offi-
cer of the Department of Defense,’’.
426 
(k) TECHNICAL
AND CONFORMING AMENDMENTS.— 
Title 10, United States Code, is further amended as follows: 
(1) In paragraph (8) of section 131(b) (as redes-
ignated by subsection (b)(2))— 
(A) by redesignating subparagraphs (A) 
through (H) as subparagraphs (B) through (I), 
respectively; and 
(B) by inserting before subparagraph (B), 
as redesignated by subparagraph (A) of this 
paragraph, the following new subparagraph (A): 
‘‘(A) The two Deputy Directors within the 
Office of the Director of Cost Assessment and 
Program Evaluation under section 139a(c) of 
this title.’’. 
(2) In section 132(b), by striking ‘‘is disabled or 
there is no Secretary of Defense’’ and inserting ‘‘dies, 
resigns, or is otherwise unable to perform the func-
tions and duties of the office’’. 
(3) In section 137a(b), by striking ‘‘is absent or 
disabled’’ and inserting ‘‘dies, resigns, or is otherwise 
unable to perform the functions and duties of the of-
fice’’. 
(3) Effective on the effective date specified in 
subsection (a)(1), in section 2222—
427 
(A) by striking ‘‘the Deputy Chief Manage-
ment Officer of the Department of Defense’’ each 
place it appears in subsections (c)(2)(E), 
(f)(1)(D), (f)(1)(E), (f)(2)(E), and (g)(1) and in-
serting ‘‘the Under Secretary of Defense for Busi-
ness Management and Information’’; and 
(B) in subsection (g)(3)(A)— 
(i) by striking ‘‘Deputy Chief Manage-
ment Officer’’ the first place it appears and 
inserting ‘‘Under Secretary of Defense for 
Business Management and Information’’; 
and 
(ii) by striking ‘‘Deputy Chief Manage-
ment Officer’’ the second, third, and forth 
places it appears and inserting ‘‘Under Sec-
retary’’. 
(4) In section 2925(b), by striking ‘‘Operational 
Energy Plans and Programs’’ and inserting ‘‘Energy, 
Installations, and Environment’’. 
(l) CLERICAL AMENDMENTS.— 
(1) The table of sections at the beginning of 
chapter 4 of title 10, United States Code, is amend-
ed—
428 
(A) effective on the effective date specified in 
subsection (a)(1), by amending the item relating 
to section 132a to read as follows: 
‘‘132a. Under Secretary of Defense for Business Management and Information.’’; 
(B) by striking the items relating to sections 
138a, 138b, 138c, and 138d; and 
(C) by inserting after the item relating to 
section 141 the following new item: 
‘‘142. Chief Information Officer.’’. 
(2) The table of sections at the beginning of 
chapter 7 of such title is amended by striking the item 
relating to section 186. 
(3) The table of sections at the beginning of sub-
chapter III of chapter 173 of such title is amended by 
adding at the end the following new item: 
‘‘2926. Operational energy activities.’’. 
(m) EXECUTIVE SCHEDULE MATTERS.— 
(1) EXECUTIVE SCHEDULE LEVEL II.—Effective 
on the effective date specified in subsection (a)(1), sec-
tion 5313 of title 5, United States Code, is amended 
by inserting above the item relating to the Under Sec-
retary of Defense for Acquisition, Technology, and Lo-
gistics the following: 
‘‘Under Secretary of Defense for Business Man-
agement and Information.’’.
429 
(2) EXECUTIVE SCHEDULE LEVEL III.—Effective 
on the effective date specified in subsection (a)(1), sec-
tion 5314 of title 5, United States Code, is amended 
by striking ‘‘Deputy Chief Management Officer of the 
Department of Defense.’’. 
(3) CONFORMING AMENDMENT TO PRIOR REDUC-
TION IN NUMBER OF ASSISTANT SECRETARIES OF DE-
FENSE.—Section 5315 of such title is amended by 
striking ‘‘Assistant Secretaries of Defense (16)’’ and 
inserting ‘‘Assistant Secretaries of Defense (14)’’. 
(n) REFERENCES.— 
(1) DCMO.—After February 1, 2017, any ref-
erence to the Deputy Chief Management Officer of the 
Department of Defense in any provision of law or in 
any rule, regulation, or other record, document, or 
paper of the United States shall be deemed to refer to 
the Under Secretary of Defense for Business Manage-
ment and Information. 
(2) ASDEIE.—Any reference to the Assistant 
Secretary of Defense for Operational Energy Plans 
and Programs or to the Deputy Under Secretary of 
Defense for Installations and Environment in any 
provision of law or in any rule, regulation, or other 
paper of the United State shall be deemed to refer to
430 
the Assistant Secretary of Defense for Energy, Instal-
lations, and Environment. 
SEC. 902. ASSISTANT SECRETARY OF DEFENSE FOR MAN-
POWER AND RESERVE AFFAIRS. 
(a) SINGLE ASSISTANT SECRETARY OF DEFENSE FOR 
MANPOWER AND RESERVE AFFAIRS.— 
(1) REDESIGNATION OF POSITION.—The position 
of Assistant Secretary of Defense for Reserve Affairs 
is hereby redesignated as the Assistant Secretary of 
Defense for Manpower and Reserve Affairs. The indi-
vidual serving in that position on the day before the 
date of the enactment of this Act may continue in of-
fice after that date without further appointment. 
(2) STATUTORY DUTIES.—Paragraph (2) of sec-
tion 138(b) of title 10, United States Code, is amend-
ed to read as follows: 
‘‘(2) One of the Assistant Secretaries is the Assistant 
Secretary of Defense for Manpower and Reserve Affairs. In 
addition to any duties and powers prescribed under para-
graph (1), the Assistant Secretary of Defense for Manpower 
and Reserve Affairs shall have as the principal duty of such 
Assistant Secretary the overall supervision of manpower 
and reserve affairs of the Department of Defense.’’. 
(b) CONFORMING AMENDMENTS.—
431 
(1) CROSS REFERENCE IN SUBTITLE E.—Section 
10201 of such title is amended to read as follows: 
‘‘§ 10201. Assistant Secretary of Defense for Manpower 
and Reserve Affairs 
‘‘As provided in section 138(b)(2) of this title, the offi-
cial in the Department of Defense with responsibility for 
overall supervision of reserve affairs of the Department of 
Defense is the Assistant Secretary of Defense for Manpower 
and Reserve Affairs.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 1007 of such title is 
amended by striking the item relating to section 
10201 and inserting the following new item: 
‘‘10201. Assistant Secretary of Defense for Manpower and Reserve Affairs.’’. 
SEC. 903. REQUIREMENT FOR ASSESSMENT OF OPTIONS TO 
MODIFY THE NUMBER OF COMBATANT COM-
MANDS. 
(a) ASSESSMENT REQUIRED.—The Secretary of De-
fense shall conduct an assessment of the feasibility, advis-
ability, and recommendations, if any, for reducing or in-
creasing the number or consolidating the common staff 
functions and infrastructure of the combatant commands 
by the end of fiscal year 2020. 
(b) MATTERS COVERED.—The assessment required by 
subsection (a) shall include the following:
432 
(1) An analysis of alternative versions of the 
Unified Command Plan for distribution and assign-
ment of the following: 
(A) Command responsibility and authority. 
(B) Span of control. 
(C) Headquarters structure and organiza-
tion. 
(D) Staff functions, capabilities, and capac-
ities. 
(2) A detailed analysis of each alternative that 
reduces or increases the number or consolidates the 
common staff functions of the combatant commands 
in terms of assigned personnel, resources, and infra-
structure, set forth separately by fiscal year, by the 
end of fiscal year 2020. 
(3) A description of the changes to the Unified 
Command Plan necessary to implement such reduc-
tions, increases, or consolidations. 
(4) An assessment of the feasibility, advisability, 
risks, and estimated costs associated with such reduc-
tions, increases, or consolidations. 
(5) An assessment of efficiencies, potential sav-
ings from such efficiencies, and operational risk, if 
any, that could be realized by—
433 
(A) combining or otherwise sharing common 
staff or support functions between two or more 
combatant command headquarters; 
(B) establishing a new organization to 
manage the combined staff or support functions 
of two or more combatant command head-
quarters; or 
(C) any other efficiency initiatives or ar-
rangements that the Secretary considers appro-
priate. 
(c) USE OF PREVIOUS STUDIES AND OUTSIDE EX-
PERTS.—In conducting the assessment required by sub-
section (a), the Secretary of Defense and the Chairman of 
the Joint Chiefs of Staff may— 
(1) use and incorporate previous plans or studies 
of the Department of Defense; and 
(2) consult with and incorporate views of defense 
experts from outside the Department. 
(d) REPORT.— 
(1) REQUIREMENT.—Not later than one year 
after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to the congressional de-
fense committees a report containing the findings and 
recommendations of the assessment required by sub-
434 
section (a). The report shall include the views of the 
Chairman of the Joint Chiefs of Staff. 
(2) FORM.—The report shall be submitted in un-
classified form, but may include a classified annex. 
SEC. 904. OFFICE OF NET ASSESSMENT. 
(a) INDEPENDENT OFFICE REQUIRED.—The Secretary 
of Defense shall establish and maintain an independent or-
ganization within the Department of Defense to develop and 
coordinate net assessments of the standing, trends, and fu-
ture prospects of the military capabilities and potential of 
the United States in comparison with the military capabili-
ties and potential of other countries or groups of countries, 
so as to identify emerging or future threats or opportunities 
for the United States. 
(b) DIRECT REPORT
TO
THE SECRETARY
OF DE-
FENSE.—The head of the office established and maintained 
pursuant to subsection (a) shall report directly to the Sec-
retary of Defense without intervening authority and may 
communicate views on matters within the responsibility of 
the office directly to the Secretary without obtaining the 
approval or concurrence of any other official within the De-
partment of Defense.
435 
SEC. 905. PERIODIC REVIEW OF DEPARTMENT OF DEFENSE 
MANAGEMENT HEADQUARTERS. 
(a) PLAN REQUIRED.—Not later than 120 days after 
the date of the enactment of this Act, the Secretary of De-
fense shall develop a plan for implementing a periodic re-
view and analysis of the Department of Defense personnel 
requirements for management headquarters. 
(b) ELEMENTS OF PLAN.—The plan required by sub-
section (a) shall include the following for each covered orga-
nization: 
(1) A description of how current management 
headquarters are sized and structured to execute De-
partment of Defense assigned mission requirements, 
including a list of the reference documents and in-
structions that explain the mission requirements of 
the management headquarters and how the manage-
ment headquarters are sized and structured. 
(2) A description of the critical capabilities and 
skillsets required by management headquarters to exe-
cute Department of Defense strategic guidance in 
order to fulfill mission objectives. 
(3) An identification and analysis of the factors 
that directly or indirectly influence or contribute to 
the expense of Department of Defense management 
headquarters.
436 
(4) An assessment of the effectiveness of current 
systems in use to track how military, civilian, and 
contract personnel are identified, managed, and 
tracked at the management headquarters. 
(5) A description of the proposed timeline, re-
quired resources necessary, and Department of De-
fense documents, instructions, and regulations that 
need to be updated in order to implement a perma-
nent periodic review and analysis of Department of 
Defense personnel requirements for management head-
quarters. 
(c) COVERED ORGANIZATION DEFINED.—In this sec-
tion, the term ‘‘covered organization’’ includes each of the 
following: 
(1) The Office of the Secretary of Defense 
(2) The Joint Staff. 
(3) The Defense Agencies. 
(4) The Department of Defense field activities. 
(5) The headquarters of the combatant com-
mands. 
(6) Headquarters, Department of the Army, in-
cluding the Secretary of the Army, the Office of the 
Chief of Staff of the Army, and the Army Staff. 
(7) The major command headquarters of the 
Army.
437 
(8) The Office of the Secretary of the Navy, the 
Office of the Chief of Naval Operations, and the 
Headquarters, United States Marine Corps. 
(9) The major command headquarters of the 
Navy and the Marine Corps. 
(10) Headquarters, Department of the Air Force, 
including the Office of the Secretary of the Air Force, 
the Office of the Air Force Chief of Staff, and the Air 
Staff. 
(11) The major command headquarters of the 
Air Force. 
(12) The National Guard Bureau. 
(d) REPORT.—Not later than 120 days after the date 
of the enactment of this Act, the Secretary shall submit to 
the congressional defense committees the plan required by 
subsection (a). 
(e) AMENDMENTS.—Section 904(d)(2) of the National 
Defense Authorization Act for Fiscal Year 2014 (Public 
Law 113–66; 127 Stat. 816; 10 U.S.C. 111 note) is amend-
ed— 
(1) by striking ‘‘2016’’ and inserting ‘‘2017’’; 
(2) in subparagraph (B), by inserting ‘‘, consoli-
dations,’’ after ‘‘through changes’’; 
(3) in subparagraph (C)—
438 
(A) by inserting ‘‘, consolidations,’’ after 
‘‘through changes’’; and 
(B) by inserting ‘‘, or other associated cost 
drivers, including a discussion of how the 
changes, consolidations, or reductions were 
prioritized,’’ after ‘‘programs and offices’’; 
(4) in subparagraph (E), by inserting ‘‘, includ-
ing the risks of, and capabilities gained or lost by im-
plementing, such modifications’’ before the period; 
and 
(5) by adding at the end the following new sub-
paragraphs: 
‘‘(F) A description of how the plan supports 
or affects current Department of Defense stra-
tegic guidance, policy, and mission requirements, 
including the quadrennial defense review, the 
Unified Command Plan, and the strategic 
choices and management review. 
‘‘(G) A description of the associated costs 
specifically addressed by the savings.’’.
439 
Subtitle B—Other Matters 
SEC. 911. MODIFICATIONS OF BIENNIAL STRATEGIC WORK-
FORCE PLAN RELATING TO SENIOR MANAGE-
MENT, 
FUNCTIONAL, 
AND 
TECHNICAL 
WORKFORCES OF THE DEPARTMENT OF DE-
FENSE. 
(a) SENIOR MANAGEMENT WORKFORCE.—Subsection 
(c) of section 115b of title 10, United States Code, is amend-
ed— 
(1) by striking paragraph (1) and inserting the 
following new paragraph (1): 
‘‘(1) Each strategic workforce plan under subsection 
(a) shall— 
‘‘(A) specifically address the shaping and im-
provement of the senior management workforce of the 
Department of Defense; and 
‘‘(B) include an assessment of the senior func-
tional and technical workforce of the Department of 
Defense within the appropriate functional commu-
nity.’’; and 
(2) in paragraph (2), by striking ‘‘such senior 
management, functional, and technical workforce’’ 
and inserting ‘‘such senior management workforce 
and such senior functional and technical workforce’’.
440 
(b) HIGHLY QUALIFIED EXPERTS.—Such section is 
further amended— 
(1) in subsection (b)(2), by striking ‘‘subsection 
(f)(1)’’ in subparagraphs (D) and (E) and inserting 
‘‘subsection (h)(1) or (h)(2)’’; 
(2) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively; and 
(3) by inserting after subsection (e) the following 
new subsection (f): 
‘‘(f) HIGHLY QUALIFIED EXPERTS.—(1) Each stra-
tegic workforce plan under subsection (a) shall include an 
assessment of the workforce of the Department of Defense 
comprising highly qualified experts appointed pursuant to 
section 9903 of title 5 (in this subsection referred to as the 
‘HQE workforce’). 
‘‘(2) For purposes of paragraph (1), each plan shall 
include, with respect to the HQE workforce— 
‘‘(A) an assessment of the critical skills and com-
petencies of the existing HQE workforce and projected 
trends in that workforce based on expected losses due 
to retirement and other attrition; 
‘‘(B) specific strategies for attracting, compen-
sating, and motivating the HQE workforce of the De-
partment, including the program objectives of the De-
441 
partment to be achieved through such strategies and 
the funding needed to implement such strategies; 
‘‘(C) any incentives necessary to attract or re-
tain HQE personnel; 
‘‘(D) any changes that may be necessary in re-
sources or in the rates or methods of pay needed to 
ensure the Department has full access to appro-
priately qualified personnel; and 
‘‘(E) any legislative actions that may be nec-
essary to achieve HQE workforce goals.’’. 
(c) DEFINITIONS.—Subsection (h) of such section (as 
redesignated by subsection (b)(2)) is amended to read as 
follows: 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) The term ‘senior management workforce of 
the Department of Defense’ includes the following cat-
egories of Department of Defense civilian personnel: 
‘‘(A) Appointees in the Senior Executive 
Service under section 3131 of title 5. 
‘‘(B) Persons serving in the Defense Intel-
ligence Senior Executive Service under section 
1606 of this title. 
‘‘(2) The term ‘senior functional and technical 
workforce of the Department of Defense’ includes the
442 
following categories of Department of Defense civilian 
personnel: 
‘‘(A) Persons serving in positions described 
in section 5376(a) of title 5. 
‘‘(B) Scientists and engineers appointed 
pursuant to section 342(b) of the National De-
fense Authorization Act for Fiscal Year 1995 
(Public Law 103–337; 108 Stat. 2721), as 
amended by section 1114 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal 
Year 2001 (as enacted into law by Public Law 
106–398 (114 Stat. 1654A–315)). 
‘‘(C) Scientists and engineers appointed 
pursuant to section 1101 of the Strom Thurmond 
National Defense Authorization Act for Fiscal 
Year 1999 (5 U.S.C. 3104 note). 
‘‘(D) Persons serving in Intelligence Senior 
Level positions under section 1607 of this title. 
‘‘(3) The term ‘acquisition workforce’ includes 
individuals designated under section 1721 of this title 
as filling acquisition positions.’’. 
(d) CONFORMING AMENDMENT.—The heading of sub-
section (c) of such section is amended to read as follows: 
‘‘SENIOR MANAGEMENT WORKFORCE; SENIOR FUNCTIONAL 
AND TECHNICAL WORKFORCE.—’’.
443 
(e) FORMATTING OF ANNUAL REPORT.—Subsections 
(d)(1) and (e)(1) of such section are each amended by strik-
ing ‘‘include a separate chapter to’’. 
SEC. 912. REPEAL OF EXTENSION OF COMPTROLLER GEN-
ERAL REPORT ON INVENTORY. 
Section 803(c) of the National Defense Authorization 
Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 
2402), as amended by section 951(b) of the National Defense 
Authorization Act for Fiscal Year 2014 (Public Law 113– 
66; 127 Stat. 839), is amended by striking ‘‘2013, 2014, 
and 2015’’ and inserting ‘‘and 2013’’. 
SEC. 913. EXTENSION OF AUTHORITY TO WAIVE REIM-
BURSEMENT OF COSTS OF ACTIVITIES FOR 
NONGOVERNMENTAL 
PERSONNEL 
AT 
DE-
PARTMENT OF DEFENSE REGIONAL CENTERS 
FOR SECURITY STUDIES. 
Section 941(b)(1) of the Duncan Hunter National De-
fense Authorization Act for Fiscal Year 2009 (10 U.S.C. 
184 note) is amended by striking ‘‘through 2014’’ and in-
serting ‘‘through 2019’’. 
SEC. 914. PILOT PROGRAM TO ESTABLISH GOVERNMENT 
LODGING PROGRAM. 
(a) AUTHORITY.—Notwithstanding the provisions of 
section 5911 of title 5, United States Code, the Secretary 
of Defense may, for the period of time described in sub-
444 
section (b), establish and carry out a Government lodging 
program to provide Government or commercial lodging for 
employees of the Department of Defense or members of the 
uniformed services under the Secretary’s jurisdiction per-
forming duty on official travel, and may require such trav-
elers to occupy adequate quarters on a rental basis when 
available. 
(b) PROGRAM DURATION.—The authority to establish 
and execute a Government lodging program under this sec-
tion expires on December 31, 2019. 
(c) LIMITATION.—A Government lodging program de-
veloped under the authority in subsection (a), and a re-
quirement under subsection (a) with respect to an employee 
of the Department of Defense, may not be construed to be 
subject to a duty to negotiate under chapter 71 of title 5, 
United States Code. 
(d) REPORTS.— 
(1) INITIAL REPORT.—Not later than six months 
after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to the appropriate com-
mittees of Congress a report on the exercise of author-
ity provided by subsection (a). The report shall in-
clude a detailed description of the facets of the Gov-
ernment lodging program, a description of how the 
program will increase travel efficiencies within the
445 
Department, a description of how the program will 
increase the safety of authorized travelers of the De-
partment of Defense, and an estimate of the savings 
expected to be achieved by the program. 
(2) ANNUAL REPORTS.—Each year, the Secretary 
shall include with the materials submitted to Congress 
by the Secretary in support of the budget submitted 
by the President under section 1105(a) of title 31, 
United States Code, a report that provides actual sav-
ings achieved (or costs incurred) under the Govern-
ment lodging program to date and a description of es-
timated savings for the fiscal year budget being sub-
mitted, any changes to program rules made since the 
prior report, and an overall assessment to date of the 
program’s effectiveness in increasing efficiency of 
travel and safety of Department employees. 
(3) FINAL REPORT.—With the budget materials 
submitted to Congress by the Secretary in support of 
the budget submitted by the President for fiscal year 
2019, the Secretary shall include a final report pro-
viding the Secretary’s overall assessment of the effec-
tiveness of the Government lodging program estab-
lished under subsection (a), including a statement of 
savings achieved (or costs incurred) as of that date, 
and a recommendation for whether the program shall
446 
be made permanent. The Secretary may, in consulta-
tion with the heads of other Federal agencies, make a 
recommendation on whether the program should be 
expanded and made permanent with respect to those 
other Federal agencies. 
(4) 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. 915. SINGLE STANDARD MILEAGE REIMBURSEMENT 
RATE FOR PRIVATELY OWNED AUTOMOBILES 
OF GOVERNMENT EMPLOYEES AND MEMBERS 
OF THE UNIFORMED SERVICES. 
(a) IN GENERAL.—Section 5704(a)(1) of title 5, 
United States Code, is amended in the last sentence by 
striking all that follows ‘‘the rate per mile’’ and inserting 
‘‘shall be the single standard mileage rate established by the 
Internal Revenue Service.’’.
447 
(b) REGULATIONS AND REPORTS.— 
(1) PROVISIONS RELATING TO PRIVATELY OWNED 
AIRPLANES AND MOTORCYCLES.—Paragraph (1)(A) of 
section 5707(b) of title 5, United States Code, is 
amended to read as follows: 
‘‘(1)(A) The Administrator of General Services 
shall conduct periodic investigations of the cost of 
travel and the operation of privately owned airplanes 
and privately owned motorcycles by employees while 
engaged on official business, and shall report the re-
sults of such investigations to Congress at least once 
a year.’’. 
(2) PROVISIONS RELATING TO PRIVATELY OWNED 
AUTOMOBILES.—Clause (i) of section 5707(b)(2)(A) of 
title 5, United States Code, is amended to read as fol-
lows: 
‘‘(i) shall provide that the mileage reim-
bursement rate for privately owned automobiles, 
as provided in section 5704(a)(1), is the single 
standard mileage rate established by the Internal 
Revenue Service referred to in that section, and’’.
448 
SEC. 916. MODIFICATIONS TO REQUIREMENTS FOR AC-
COUNTING FOR MEMBERS OF THE ARMED 
FORCES AND DEPARTMENT OF DEFENSE CI-
VILIAN EMPLOYEES LISTED AS MISSING. 
(a) DESIGNATION OF AGENCY AND DIRECTOR.—Sub-
section (a) of section 1501 of title 10, United States Code, 
is amended to read as follows: 
‘‘(a) RESPONSIBILITY FOR MISSING PERSONS.—(1)(A) 
The Secretary of Defense shall designate a single organiza-
tion within the Department of Defense to have responsi-
bility for Department matters relating to missing persons, 
including accounting for missing persons and persons 
whose remains have not been recovered from the conflict in 
which they were lost. 
‘‘(B) The organization designated under this para-
graph shall be a Defense Agency or other entity of the De-
partment of Defense outside the military departments and 
is referred to in this chapter as the ‘designated Defense 
Agency’. 
‘‘(C) The head of the organization designated under 
this paragraph is referred to in this chapter as the ‘des-
ignated Agency Director’. 
‘‘(2) Subject to the authority, direction, and control 
of the Secretary of Defense, the responsibilities of the des-
ignated Agency Director shall include the following:
449 
‘‘(A) Policy, control, and oversight within the 
Department of Defense of the entire process for inves-
tigation and recovery related to missing persons, in-
cluding matters related to search, rescue, escape, and 
evasion. 
‘‘(B) Policy, control, and oversight of the pro-
gram established under section 1509 of this title. 
‘‘(C) Responsibility for accounting for missing 
persons, including locating, recovering, and identi-
fying missing persons or their remains after hos-
tilities have ceased. 
‘‘(D) Coordination for the Department of Defense 
with other departments and agencies of the United 
States on all matters concerning missing persons. 
‘‘(E) Dissemination of appropriate information 
on the status of missing persons to authorized family 
members. 
‘‘(F) Establishment of a means for communica-
tion between officials of the designated Defense Agency 
and family members of missing persons, veterans 
service organizations, concerned citizens, and the pub-
lic on the Department’s efforts to account for missing 
persons, including a readily available means for com-
munication of their views and recommendations to 
the designated Agency Director.
450 
‘‘(3) In carrying out the responsibilities established 
under this subsection, the designated Agency Director shall 
be responsible for the coordination for such purposes within 
the Department of Defense among the military departments, 
the Joint Staff, and the commanders of the combatant com-
mands. 
‘‘(4) The designated Agency Director shall establish 
policies, which shall apply uniformly throughout the De-
partment of Defense, for personnel recovery (including 
search, rescue, escape, and evasion) and for personnel ac-
counting (including locating, recovering, and identifying 
missing persons or their remains after hostilities have 
ceased). 
‘‘(5) The designated Agency Director shall establish 
procedures to be followed by Department of Defense boards 
of inquiry, and by officials reviewing the reports of such 
boards, under this chapter.’’. 
(b) PUBLIC-PRIVATE
PARTNERSHIPS
AND
OTHER 
FORMS OF SUPPORT.—Chapter 76 of such title is amended 
by inserting after section 1501 the following new section: 
‘‘§ 1501a. Public-private partnerships; other forms of 
support 
‘‘(a) PUBLIC-PRIVATE PARTNERSHIPS.—The Secretary 
of Defense may enter into arrangements known as public- 
private partnerships with appropriate entities outside the
451 
Government for the purposes of facilitating the activities 
of the designated Defense Agency. The Secretary may only 
partner with foreign governments or foreign entities with 
the concurrence of the Secretary of State. Any such arrange-
ment shall be entered into in accordance with authorities 
provided under this section or any other authority otherwise 
available to the Secretary. Regulations prescribed under 
subsection (e)(1) shall include provisions for the establish-
ment and implementation of such partnerships. 
‘‘(b) ACCEPTANCE OF VOLUNTARY PERSONAL SERV-
ICES.—The Secretary of Defense may accept voluntary serv-
ices to facilitate accounting for missing persons in the same 
manner as the Secretary of a military department may ac-
cept such services under section 1588(a)(9) of this title. 
‘‘(c) COOPERATIVE AGREEMENTS AND GRANTS.— 
‘‘(1) IN
GENERAL.—The Secretary of Defense 
may enter into a cooperative agreement with, or make 
a grant to, a private entity for purposes related to 
support of the activities of the designated Defense 
Agency. 
‘‘(2) INAPPLICABILITY
OF
CERTAIN
CONTRACT 
REQUIREMENTS.—Notwithstanding section 2304(k) of 
this title, the Secretary may enter such cooperative 
agreements or grants on a sole-source basis pursuant 
to section 2304(c)(5) of this title.
452 
‘‘(d) USE OF DEPARTMENT OF DEFENSE PERSONAL 
PROPERTY.—The Secretary may allow a private entity to 
use, at no cost, personal property of the Department of De-
fense to assist the entity in supporting the activities of the 
designated Defense Agency. 
‘‘(e) REGULATIONS.— 
‘‘(1) IN
GENERAL.—The Secretary of Defense 
shall prescribe regulations to implement this section. 
‘‘(2) LIMITATION.—Such regulations shall pro-
vide that acceptance of a gift (including a gift of serv-
ices) or use of a gift under this section may not occur 
if the nature or circumstances of the acceptance or use 
would compromise the integrity, or the appearance of 
integrity, of any program of the Department of De-
fense or any individual involved in such program. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) COOPERATIVE AGREEMENT.—The term ‘co-
operative agreement’ means an authorized cooperative 
agreement as described in section 6305 of title 31. 
‘‘(2) GRANT.—The term ‘grant’ means an au-
thorized grant as described in section 6304 of title 
31.’’. 
(c) SECTION 1505 CONFORMING AMENDMENTS.—Sec-
tion 1505(c) of such title is amended—
453 
(1) in paragraph (1), by striking ‘‘the office es-
tablished under section 1501 of this title’’ and insert-
ing ‘‘the designated Agency Director’’; and 
(2) in paragraphs (2) and (3), by striking ‘‘head 
of the office established under section 1501 of this 
title’’ and inserting ‘‘designated Agency Director’’. 
(d) SECTION 1509 AMENDMENTS.—Section 1509 of 
such title is amended— 
(1) in subsection (b)— 
(A) in the subsection heading, by striking 
‘‘PROCESS’’; 
(B) in paragraph (1), by striking ‘‘POW/ 
MIA accounting community’’ and inserting 
‘‘through the designated Agency Director’’; 
(C) by striking paragraph (2) and inserting 
the following new paragraph (2): 
‘‘(2)(A) The Secretary shall assign or detail to the des-
ignated Defense Agency on a full-time basis a senior med-
ical examiner from the personnel of the Armed Forces Med-
ical Examiner System. The primary duties of the medical 
examiner so assigned or detailed shall include the identi-
fication of remains in support of the function of the des-
ignated Agency Director to account for unaccounted for per-
sons covered by subsection (a).
454 
‘‘(B) In carrying out functions under this chapter, the 
medical examiner so assigned or detailed shall report to the 
designated Agency Director. 
‘‘(C) The medical examiner so assigned or detailed 
shall— 
‘‘(i) exercise scientific identification authority; 
‘‘(ii) establish identification and laboratory pol-
icy consistent with the Armed Forces Medical Exam-
iner System; and 
‘‘(iii) advise the designated Agency Director on 
forensic science disciplines. 
‘‘(D) Nothing in this chapter shall be interpreted as 
affecting the authority of the Armed Forces Medical Exam-
iner under section 1471 of this title.’’; 
(2) in subsection (d)— 
(A) in the subsection heading, by inserting 
‘‘; CENTRALIZED DATABASE’’ after ‘‘FILES’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(4) The Secretary of Defense shall establish and 
maintain a single centralized database and case manage-
ment system containing information on all missing persons 
for whom a file has been established under this subsection. 
The database and case management system shall be acces-
sible to all elements of the Department of Defense involved
455 
in the search, recovery, identification, and communications 
phases of the program established by this section.’’; and 
(3) in subsection (f)— 
(A) in paragraph (1)— 
(i) by striking ‘‘establishing and’’; and 
(ii) by striking ‘‘Secretary of Defense 
shall coordinate’’ and inserting ‘‘designated 
Agency Director shall ensure coordination’’; 
(B) in paragraph (2)— 
(i) by inserting ‘‘staff’’ after ‘‘National 
Security Council’’; and 
(ii) by striking ‘‘POW/MIA accounting 
community’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(3) In carrying out the program, the designated 
Agency Director shall coordinate all external communica-
tions and events associated with the program.’’. 
(e) REPORT ON POW/MIA POLICIES.— 
(1) REPORT
REQUIRED.—Not later than 180 
days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the Committees 
on Armed Services of the Senate and House of Rep-
resentatives a report on policies and proposals for 
providing access to information and documents to the
456 
next of kin of missing service personnel, including 
under chapter 76 of title 10, United States Code, as 
amended by this section 
(2) ELEMENTS OF REPORT.—The report required 
by paragraph (1) shall include the following elements: 
(A) A description of information and docu-
ments to be provided to the next of kin, including 
the status of recovery efforts and service records. 
(B) A description of the Department’s 
plans, if any, to review the classification status 
of records related to past covered conflicts and 
missing service personnel. 
(C) An assessment of whether it is feasible 
and advisable to develop a public interface for 
any database of missing personnel being devel-
oped. 
(f) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of section 
1509 of such title is amended to read as follows: 
‘‘§ 1509. Program to resolve missing person cases’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 76 of such title is amend-
ed— 
(A) by inserting after the item relating to 
section 1501 the following new item: 
‘‘1501a. Public-private partnerships; other forms of support.’’; and
457 
(B) by striking the item relating to section 
1509 and inserting the following new item: 
‘‘1509. Program to resolve missing person cases.’’. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
Sec. 1001. General transfer authority. 
Sec. 1002. Authority to transfer funds to the National Nuclear Security Adminis-
tration to sustain nuclear weapons modernization and naval re-
actors. 
Sec. 1003. Reporting of balances carried forward by the Department of Defense 
at the end of each fiscal year. 
Subtitle B—Counter-Drug Activities 
Sec. 1011. Extension of authority to support unified counterdrug and counterter-
rorism campaign in Colombia. 
Sec. 1012. Extension and modification of authority of Department of Defense to 
provide support for counterdrug activities of other governmental 
agencies. 
Sec. 1013. Availability of funds for additional support for counterdrug activities 
of certain foreign governments. 
Sec. 1014. Extension and modification of authority for joint task forces sup-
porting law enforcement agencies conducting activities to 
counter transnational organized crime to support law enforce-
ment agencies conducting counter-terrorism activities. 
Sec. 1015. Sense of Congress regarding security in the Western Hemisphere. 
Subtitle C—Naval Vessels and Shipyards 
Sec. 1021. Definition of combatant and support vessel for purposes of the annual 
plan and certification relating to budgeting for construction of 
naval vessels. 
Sec. 1022. National Sea-Based Deterrence Fund. 
Sec. 1023. Limitation on use of funds for inactivation of U.S.S. George Wash-
ington. 
Sec. 1024. Sense of Congress recognizing the anniversary of the sinking of U.S.S. 
Thresher. 
Sec. 1025. Pilot program for sustainment of Littoral Combat Ships on extended 
deployments. 
Sec. 1026. Availability of funds for retirement or inactivation of Ticonderoga 
class cruisers or dock landing ships. 
Subtitle D—Counterterrorism 
Sec. 1031. Extension of authority to make rewards for combating terrorism. 
Sec. 1032. Prohibition on use of funds to construct or modify facilities in the 
United States to house detainees transferred from United States 
Naval Station, Guantanamo Bay, Cuba. 
Sec. 1033. Prohibition on the use of funds for the transfer or release of individ-
uals detained at United States Naval Station, Guantanamo 
Bay, Cuba.
458 
Subtitle E—Miscellaneous Authorities and Limitations 
Sec. 1041. Modification of Department of Defense authority for humanitarian 
demining assistance and stockpiled conventional munitions as-
sistance programs. 
Sec. 1042. Airlift service. 
Sec. 1043. Authority to accept certain voluntary legal support services. 
Sec. 1044. Expansion of authority for Secretary of Defense to use the Department 
of Defense reimbursement rate for transportation services pro-
vided to certain non-Department of Defense entities. 
Sec. 1045. Repeal of authority relating to use of military installations by Civil 
Reserve Air Fleet contractors. 
Sec. 1046. Inclusion of Chief of the National Guard Bureau among leadership of 
the Department of Defense provided physical protection and per-
sonal security. 
Sec. 1047. Inclusion of regional organizations in authority for assignment of ci-
vilian employees of the Department of Defense as advisors to for-
eign ministries of defense. 
Sec. 1048. Report and limitation on availability of funds for aviation foreign in-
ternal defense program. 
Sec. 1049. Modifications to OH–58D Kiowa Warrior aircraft. 
Subtitle F—Studies and Reports 
Sec. 1051. Protection of top-tier defense-critical infrastructure from electro-
magnetic pulse. 
Sec. 1052. Response of the Department of Defense to compromises of classified in-
formation. 
Sec. 1053. Study on joint analytic capability of the Department of Defense. 
Sec. 1054. Business case analysis of the creation of an active duty association for 
the 168th Air Refueling Wing. 
Sec. 1055. Reports on recommendations of the National Commission on the Struc-
ture of the Air Force. 
Sec. 1056. Report on protection of military installations. 
Sec. 1057. Comptroller General briefing and report on Army and Army National 
Guard force structure changes. 
Sec. 1058. Improving analytic support to systems acquisition and allocation of 
acquisition, intelligence, surveillance and reconnaissance assets. 
Sec. 1059. Review of United States military strategy and the force posture of al-
lies and partners in the United States Pacific Command area 
of responsibility. 
Sec. 1060. Repeal of certain reporting requirements relating to the Department 
of Defense. 
Sec. 1061. Repeal of requirement for Comptroller General of the United States 
annual reviews and report on pilot program on commercial fee- 
for-service air refueling support for the Air Force. 
Sec. 1062. Report on additional matters in connection with report on the force 
structure of the United States Army. 
Sec. 1063. Certification for realignment of forces at Lajes Air Force Base, Azores. 
Subtitle G—Other Matters 
Sec. 1071. Technical and clerical amendments. 
Sec. 1072. Reform of quadrennial defense review. 
Sec. 1073. Biennial surveys of Department of Defense civilian employees on work-
place and gender relations matters.
459 
Sec. 1074. Revision to statute of limitations for aviation insurance claims. 
Sec. 1075. Pilot program for the Human Terrain System. 
Sec. 1076. Clarification of policies on management of special use airspace of De-
partment of Defense. 
Sec. 1077. Department of Defense policies on community involvement in Depart-
ment community outreach events. 
Sec. 1078. Notification of foreign threats to information technology systems im-
pacting national security. 
Sec. 1079. Pilot program to rehabilitate and modify homes of disabled and low- 
income veterans. 
Subtitle A—Financial Matters 
SEC. 1001. GENERAL TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.— 
(1) AUTHORITY.—Upon determination by the 
Secretary of Defense that such action is necessary in 
the national interest, the Secretary may transfer 
amounts of authorizations made available to the De-
partment of Defense in this division for fiscal year 
2015 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and 
be available for the same purposes as the authoriza-
tion to which transferred. 
(2) LIMITATION.—Except as provided in para-
graph (3), the total amount of authorizations that the 
Secretary may transfer under the authority of this 
section may not exceed $4,500,000,000. 
(3) EXCEPTION FOR TRANSFERS BETWEEN MILI-
TARY
PERSONNEL
AUTHORIZATIONS.—A transfer of 
funds between military personnel authorizations
460 
under title IV shall not be counted toward the dollar 
limitation in paragraph (2). 
(b) LIMITATIONS.—The authority provided by sub-
section (a) to transfer authorizations— 
(1) may only be used to provide authority for 
items that have a higher priority than the items from 
which authority is transferred; and 
(2) may not be used to provide authority for an 
item that has been denied authorization by Congress. 
(c) EFFECT ON AUTHORIZATION AMOUNTS.—A trans-
fer made from one account to another under the authority 
of this section shall be deemed to increase the amount au-
thorized for the account to which the amount is transferred 
by an amount equal to the amount transferred. 
(d) NOTICE
TO
CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under sub-
section (a). 
SEC. 1002. AUTHORITY TO TRANSFER FUNDS TO THE NA-
TIONAL NUCLEAR SECURITY ADMINISTRA-
TION TO SUSTAIN NUCLEAR WEAPONS MOD-
ERNIZATION AND NAVAL REACTORS. 
(a) TRANSFER AUTHORIZED.—If the amount author-
ized to be appropriated for the weapons activities of the Na-
tional Nuclear Security Administration under section 3101 
or otherwise made available for fiscal year 2015 is less than
461 
$8,700,000,000 (the amount projected to be required for 
such activities in fiscal year 2015 as specified in the report 
under section 1251 of the National Defense Authorization 
Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 
2549)), the Secretary of Defense may transfer, from 
amounts authorized to be appropriated for the Department 
of Defense for fiscal year 2015 pursuant to this Act, to the 
Secretary of Energy an amount, not to exceed $150,000,000, 
to be available only for naval reactors or weapons activities 
of the National Nuclear Security Administration. 
(b) NOTICE TO CONGRESS.—In the event of a transfer 
under subsection (a), the Secretary of Defense shall prompt-
ly notify Congress of the transfer, and shall include in such 
notice the Department of Defense account or accounts from 
which funds are transferred. 
(c) TRANSFER MECHANISM.—Any funds transferred 
under this section shall be transferred in accordance with 
established procedures for reprogramming under section 
1001 or successor provisions of law. 
(d) CONSTRUCTION OF AUTHORITY.—The transfer au-
thority provided under subsection (a) is in addition to any 
other transfer authority provided under this Act.
462 
SEC. 1003. REPORTING OF BALANCES CARRIED FORWARD 
BY THE DEPARTMENT OF DEFENSE AT THE 
END OF EACH FISCAL YEAR. 
Not later March 1 of each year, the Secretary of De-
fense shall submit to the congressional defense committees, 
and make publicly available on the Internet website of the 
Department of Defense, the following information: 
(1) The total dollar amount, by account, of all 
balances carried forward by the Department of De-
fense at the end of the fiscal year preceding the fiscal 
year during which such information is submitted. 
(2) The total dollar amount, by account, of all 
unobligated balances carried forward by the Depart-
ment of Defense at the end of the fiscal year preceding 
the fiscal year during which such information is sub-
mitted. 
(3) The total dollar amount, by account, of any 
balances (both obligated and unobligated) that have 
been carried forward by the Department of Defense 
for five years or more as of the end of the fiscal year 
preceding the fiscal year during which such informa-
tion is submitted.
463 
Subtitle B—Counter-Drug Activities 
SEC. 1011. EXTENSION OF AUTHORITY TO SUPPORT UNI-
FIED 
COUNTERDRUG 
AND 
COUNTERTER-
RORISM CAMPAIGN IN COLOMBIA. 
(a) EXTENSION.—Section 1021 of the Ronald W. 
Reagan National Defense Authorization Act for Fiscal Year 
2005 (Public Law 108–375; 118 Stat. 2042), as most re-
cently amended by section 1011 of the National Defense Au-
thorization Act for Fiscal Year 2014 (Public Law 113–66; 
126 Stat. 843), is amended— 
(1) in subsection (a), by striking ‘‘2014’’ and in-
serting ‘‘2016’’; and 
(2) in subsection (c), by striking ‘‘2014’’ and in-
serting ‘‘2016’’. 
(b) NOTICE TO CONGRESS ON ASSISTANCE.—Not later 
than 15 days before providing assistance under section 1021 
of the Ronald W. Reagan National Defense Authorization 
Act for Fiscal Year 2005 (as amended by subsection (a)) 
using funds available for fiscal year 2015, the Secretary 
of Defense shall submit to the congressional defense commit-
tees a notice setting forth the assistance to be provided, in-
cluding the types of such assistance, the budget for such as-
sistance, and the anticipated completion date and duration 
of the provision of such assistance.
464 
SEC. 1012. EXTENSION AND MODIFICATION OF AUTHORITY 
OF DEPARTMENT OF DEFENSE TO PROVIDE 
SUPPORT FOR COUNTERDRUG ACTIVITIES OF 
OTHER GOVERNMENTAL AGENCIES. 
(a) EXTENSION.—Subsection (a) of section 1004 of the 
National Defense Authorization Act for Fiscal Year 1991 
(Public Law 101–510; 10 U.S.C. 374 note) is amended by 
striking ‘‘2014’’ and inserting ‘‘2017’’. 
(b) EXPANSION OF AUTHORITY TO INCLUDE ACTIVI-
TIES TO COUNTER TRANSNATIONAL ORGANIZED CRIME.— 
Such section is further amended— 
(1) by inserting ‘‘or activities to counter 
transnational organized crime’’ after ‘‘counter-drug 
activities’’ each place it appears; 
(2) in subsection (a)(3), by inserting ‘‘or respon-
sibilities for countering transnational organized 
crime’’ after ‘‘counter-drug responsibilities’’; and 
(3) in subsection (b)(5), by inserting ‘‘or 
counter-transnational 
organized 
crime’’ 
after 
‘‘Counter-drug’’. 
(c) 
NOTICE
TO
CONGRESS
ON
FACILITIES 
PROJECTS.—Subsection (h)(2) of such section is amended 
by striking ‘‘$500,000’’ and inserting ‘‘$250,000’’. 
(d) DEFINITION
OF
TRANSNATIONAL
ORGANIZED 
CRIME.—Such section is further amended by adding at the 
end the following new subsection:
465 
‘‘(j) DEFINITION
OF
TRANSNATIONAL
ORGANIZED 
CRIME.—In this section, the term ‘transnational organized 
crime’ means self-perpetuating associations of individuals 
who operate transnationally for the purpose of obtaining 
power, influence, monetary, or commercial gains, wholly or 
in part by illegal means, while protecting their activities 
through a pattern of corruption or violence or through a 
transnational organization structure and the exploitation 
of transnational commerce or communication mecha-
nisms.’’. 
(e) CLERICAL AMENDMENT.—The heading of such sec-
tion is amended to read as follows: 
‘‘SEC. 1004. ADDITIONAL SUPPORT FOR COUNTER-DRUG AC-
TIVITIES 
AND 
ACTIVITIES 
TO 
COUNTER 
TRANSNATIONAL ORGANIZED CRIME.’’. 
SEC. 1013. AVAILABILITY OF FUNDS FOR ADDITIONAL SUP-
PORT FOR COUNTERDRUG ACTIVITIES OF 
CERTAIN FOREIGN GOVERNMENTS. 
Subsection (e) of section 1033 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105– 
85; 111 Stat. 1881), as most recently amended by section 
1013(b) of the National Defense Authorization Act for Fis-
cal Year 2014 (Public Law 113–66; 127 Stat. 844), is 
amended to read as follows:
466 
‘‘(e) AVAILABILITY OF FUNDS.—Of the amount author-
ized to be appropriated for any fiscal year after fiscal year 
2014 in which the authority under this section is in effect 
for drug interdiction and counter-drug activities, an 
amount not to exceed $125,000,000 shall be available in 
such fiscal year for the provision of support under this sec-
tion.’’. 
SEC. 1014. EXTENSION AND MODIFICATION OF AUTHORITY 
FOR JOINT TASK FORCES SUPPORTING LAW 
ENFORCEMENT AGENCIES CONDUCTING AC-
TIVITIES TO COUNTER TRANSNATIONAL OR-
GANIZED CRIME TO SUPPORT LAW ENFORCE-
MENT 
AGENCIES 
CONDUCTING 
COUNTER- 
TERRORISM ACTIVITIES. 
(a) IN GENERAL.—Subsection (a) of section 1022 of 
the National Defense Authorization Act for Fiscal Year 
2004 (10 U.S.C. 371 note) is amended by inserting ‘‘or 
counter-transnational organized crime activities’’ after 
‘‘counter-terrorism activities’’. 
(b) AVAILABILITY OF FUNDS.—Subsection (b) of such 
section is amended— 
(1) by striking ‘‘2015’’ and inserting ‘‘2020’’; 
(2) by inserting ‘‘for drug interdiction and 
counter-drug activities that are’’ after ‘‘funds’’; and
467 
(3) by inserting ‘‘or counter-transnational orga-
nized crime’’ after ‘‘counter-terrorism’’. 
(c) REPORTS.—Subsection (c) of such section is 
amended— 
(1) in the matter preceding paragraph (1)— 
(A) by striking ‘‘after 2008’’; and 
(B) by striking ‘‘Congress’’ and inserting 
‘‘the congressional defense committees’’; 
(2) in paragraph (1)— 
(A) by inserting ‘‘, counter-transnational 
organized crime,’’ after ‘‘counter-drug’’ the first 
place it appears; and 
(B) by striking ‘‘counterterrorism support’’ 
and inserting ‘‘counter-terrorism or counter- 
transnational organized crime support’’; 
(3) in paragraph (2), by inserting before the pe-
riod the following: ‘‘, and a description of the objec-
tives of such support’’; and 
(4) in paragraph (3), by striking ‘‘conducting 
counter-drug operations’’ and inserting ‘‘exercising 
the authority under subsection (a)’’. 
(d) CONDITIONS.—Subsection (d)(2) of such section is 
amended—
468 
(1) in subparagraph (A) by inserting ‘‘or 
counter-transnational 
organized 
crime’’ 
after 
‘‘counter-terrorism’’; 
(2) in subparagraph (B)— 
(A) by striking ‘‘Congress’’ and inserting 
‘‘the congressional defense committees’’; and 
(B) by inserting before the period at the end 
of the second sentence the following: ‘‘, together 
with a description of the vital national security 
interests associated with the support covered by 
such waiver’’; and 
(3) by striking subparagraph (C). 
(e) SUPPORT FOR COUNTER-TRANSNATIONAL ORGA-
NIZED CRIME.—Such section is further amended by adding 
at the end the following new subsection: 
‘‘(e) DEFINITIONS.—(1) In this section, the term 
‘transnational organized crime’ has the meaning given such 
term in section 1004(j) of the National Defense Authoriza-
tion Act for Fiscal Year 1991 (Public Law 101–510; 10 
U.S.C. 374 note). 
‘‘(2) For purposes of applying the definition of 
transnational organized crime under paragraph (1) to this 
section, the term ‘illegal means’, as it appears in such defi-
nition, includes the trafficking of money, human traf-
ficking, illicit financial flows, illegal trade in natural re-
469 
sources and wildlife, trade in illegal drugs and weapons, 
and other forms of illegal means determined by the Sec-
retary of Defense.’’. 
SEC. 1015. SENSE OF CONGRESS REGARDING SECURITY IN 
THE WESTERN HEMISPHERE. 
(a) FINDINGS.—Congress makes the following findings: 
(1) The stability and security of the Western 
Hemisphere has a direct impact on the security inter-
ests of the United States. 
(2) Over the past decade, there has been a 
marked increase in violence and instability in the re-
gion as a result of weak governance and increasingly 
capable transnational criminal organizations. These 
criminal organizations operate global, multi-billion 
dollar networks that traffic narcotics, humans, weap-
ons, and bulk cash. 
(3) Conflict between the various transnational 
criminal organizations for smuggling routes and ter-
ritory has resulted in skyrocketing violence. According 
to the United Nations Office on Drugs and Crime, 
Honduras has the highest murder rate in the world 
with 90 murders per 100,000 people. 
(4) United States Northern Command and 
United States Southern Command are the lead com-
470 
batant commands for Department of Defense efforts to 
combat illicit trafficking in the Western Hemisphere. 
(5) To combat these destabilizing threats, 
through a variety of authorities, the Department of 
Defense advises, trains, educates, and equips vetted 
troops in the region to enhance their military and po-
lice forces, with an emphasis on human rights and 
the rule of law. 
(6) As a result of decades of instability and vio-
lence, tens of thousands of unaccompanied alien chil-
dren and their families have fled to the border be-
tween the United States and Mexico. In fiscal year 
2014, approximately 66,000 such children were ap-
prehended crossing into the United States from Mex-
ico. 
(b) SENSE OF CONGRESS.—It is the sense of Congress 
that— 
(1) the Department of Defense should continue 
its efforts to combat transnational criminal organiza-
tions in the Western Hemisphere; 
(2) the Department of Defense should increase its 
maritime, aerial and intelligence, surveillance, and 
reconnaissance capabilities in the region to more ef-
fectively support efforts to reduce illicit trafficking 
into the United States; and
471 
(3) enhancing the capacity of partner nations in 
the 
region 
to 
combat 
the 
threat 
posed 
by 
transnational criminal organizations should be a cor-
nerstone of the Department of Defense’s strategy in 
the region. 
Subtitle C—Naval Vessels and 
Shipyards 
SEC. 1021. DEFINITION OF COMBATANT AND SUPPORT VES-
SEL FOR PURPOSES OF THE ANNUAL PLAN 
AND CERTIFICATION RELATING TO BUDG-
ETING FOR CONSTRUCTION OF NAVAL VES-
SELS. 
Section 231(f) of title 10, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(4) The term ‘combatant and support vessel’ 
means any commissioned ship built or armed for 
naval combat or any naval ship designed to provide 
support to combatant ships and other naval oper-
ations. Such term does not include patrol coastal 
ships, non-commissioned combatant craft specifically 
designed for combat roles, or ships that are designated 
for potential mobilization.’’. 
SEC. 1022. NATIONAL SEA-BASED DETERRENCE FUND. 
(a) ESTABLISHMENT OF FUND.—
472 
(1) IN
GENERAL.—Chapter 131 of title 10, 
United States Code, is amended by inserting after sec-
tion 2218 the following new section: 
‘‘§ 2218a. National Sea-Based Deterrence Fund 
‘‘(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States a fund to be known as the 
‘National Sea-Based Deterrence Fund’. 
‘‘(b) ADMINISTRATION OF FUND.—The Secretary of 
Defense shall administer the Fund consistent with the pro-
visions of this section. 
‘‘(c) FUND PURPOSES.—(1) Funds in the Fund shall 
be available for obligation and expenditure only for con-
struction (including design of vessels), purchase, alteration, 
and conversion of national sea-based deterrence vessels. 
‘‘(2) Funds in the Fund may not be used for a purpose 
or program unless the purpose or program is authorized 
by law. 
‘‘(d) DEPOSITS.—There shall be deposited in the Fund 
all funds appropriated to the Department of Defense for 
construction (including design of vessels), purchase, alter-
ation, and conversion of national sea-based deterrence ves-
sels. 
‘‘(e) EXPIRATION OF FUNDS AFTER 5 YEARS.—No 
part of an appropriation that is deposited in the Fund pur-
suant to subsection (d) shall remain available for obligation
473 
more than five years after the end of fiscal year for which 
appropriated except to the extent specifically provided by 
law. 
‘‘(f) BUDGET REQUESTS.—Budget requests submitted 
to Congress for the Fund shall separately identify the 
amount requested for programs, projects, and activities for 
construction (including design of vessels), purchase, alter-
ation, and conversion of national sea-based deterrence ves-
sels. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) The term ‘Fund’ means the National Sea- 
Based Deterrence Fund established by subsection (a). 
‘‘(2) The term ‘national sea-based deterrence ves-
sel’ means any vessel owned, operated, or controlled 
by the Department of Defense that carries operational 
intercontinental ballistic missiles.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 131 of such title is 
amended by inserting after the item relating to sec-
tion 2218 the following new item: 
‘‘2218a. National Sea-Based Deterrence Fund.’’. 
(b) TRANSFER AUTHORITY.— 
(1) IN GENERAL.—Subject to paragraph (2), and 
to the extent provided in appropriations Acts, the 
Secretary of Defense may transfer to the National 
Sea-Based Deterrence Fund established by section
474 
2218a of title 10, United States Code, as added by 
subsection 
(a)(1), 
amounts 
not 
to 
exceed 
$3,500,000,000 from unobligated funds authorized to 
be appropriated for fiscal years 2014, 2015, or 2016 
for the Navy for the Ohio Replacement Program. The 
transfer authority provided under this paragraph is 
in addition to any other transfer authority provided 
to the Secretary of Defense by law. 
(2) AVAILABILITY.—Funds transferred to the Na-
tional Sea-Based Deterrence Fund pursuant to para-
graph (1) shall remain available for the same period 
for which the transferred funds were originally appro-
priated. 
SEC. 1023. LIMITATION ON USE OF FUNDS FOR INACTIVA-
TION OF U.S.S. GEORGE WASHINGTON. 
No funds authorized to be appropriated by this Act 
or otherwise made available for fiscal year 2015 for the 
Navy may be obligated or expended to conduct tasks con-
nected to the inactivation of the U.S.S. George Washington 
(CVN–73) unless such tasks are identical to tasks that 
would be necessary to conduct a refueling and complex over-
haul of the vessel.
475 
SEC. 1024. SENSE OF CONGRESS RECOGNIZING THE ANNI-
VERSARY OF THE SINKING OF U.S.S. THRESH-
ER. 
(a) FINDINGS.—Congress makes the following findings: 
(1) U.S.S. Thresher was first launched at Ports-
mouth Naval Shipyard on July 9, 1960. 
(2) U.S.S. Thresher departed Portsmouth Naval 
Shipyard for her final voyage on April 9, 1963, with 
a crew of 16 officers, 96 sailors, and 17 civilians. 
(3) The mix of that crew reflects the unity of the 
naval submarine service, military and civilian, in the 
protection of the United States. 
(4) At approximately 7:47 a.m. on April 10, 
1963, while in communication with the surface ship 
U.S.S. Skylark, and approximately 220 miles off the 
coast of New England, U.S.S. Thresher began her 
final descent. 
(5) U.S.S. Thresher was declared lost with all 
hands on April 10, 1963. 
(6) In response to the loss of U.S.S. Thresher, the 
United States Navy instituted new regulations to en-
sure the health of the submariners and the safety of 
the submarines of the United States. 
(7) Those regulations led to the establishment of 
the Submarine Safety and Quality Assurance pro-
476 
gram (SUBSAFE), now one of the most comprehen-
sive military safety programs in the world. 
(8) SUBSAFE has kept the submariners of the 
United States safe at sea ever since as the strongest, 
safest submarine force in history. 
(9) Since the establishment of SUBSAFE, no 
SUBSAFE-certified submarine has been lost at sea, 
which is a legacy owed to the brave individuals who 
perished aboard U.S.S. Thresher. 
(10) From the loss of U.S.S. Thresher, there 
arose in the institutions of higher education in the 
United States the ocean engineering curricula that 
enables the preeminence of the United States in sub-
marine warfare. 
(11) The crew of U.S.S. Thresher demonstrated 
the ‘‘last full measure of devotion’’ in service to the 
United States, and this devotion characterizes the sac-
rifices of all submariners, past and present. 
(b) SENSE OF CONGRESS.—Congress— 
(1) recognizes the 51st anniversary of the sinking 
of U.S.S. Thresher; 
(2) remembers with profound sorrow the loss of 
U.S.S. Thresher and her gallant crew of sailors and 
civilians on April 10, 1963; and
477 
(3) expresses its deepest gratitude to all subma-
riners on ‘‘eternal patrol’’, who are forever bound to-
gether by dedicated and honorable service to the 
United States of America. 
SEC. 1025. PILOT PROGRAM FOR SUSTAINMENT OF LIT-
TORAL COMBAT SHIPS ON EXTENDED DE-
PLOYMENTS. 
(a) AUTHORITY.—Notwithstanding subsection (a) of 
section 7310 of title 10, United States Code, the Secretary 
of the Navy may establish a pilot program for the 
sustainment of Littoral Combat Ships when operating on 
extended deployment as follows: 
(1) The pilot program shall be limited to no 
more than three Littoral Combat Ships at any one 
time operating in extended deployment status. 
(2) Sustainment authorized under the pilot pro-
gram is limited to corrective and preventive mainte-
nance or repair (whether intermediate- or depot-level) 
and facilities maintenance. Such maintenance or re-
pair may be performed— 
(A) in a foreign shipyard; 
(B) at a facility outside of a foreign ship-
yard; or 
(C) at any other facility convenient to the 
vessel.
478 
(3) Such maintenance or repair may be per-
formed on a vessel as described in paragraph (2) only 
if the work is performed by United States Govern-
ment personnel or United States contractor personnel. 
(4) Facilities maintenance may be performed by 
a foreign contractor on a vessel as described in para-
graph (2). 
(b) REPORT REQUIRED.—Not later than 120 days 
after the conclusion of the pilot program authorized under 
subsection (a), the Secretary of the Navy shall submit to 
the congressional defense committees a report on the pilot 
program. Such report shall include each of the following: 
(1) Lessons learned from the pilot program re-
garding sustainment of Littoral Combat Ships while 
operating on extended deployments, including the ex-
tent to which shipboard personnel were involved in 
performing maintenance. 
(2) A comprehensive sustainment strategy, in-
cluding maintenance requirements, concepts, and 
costs, intended to support Littoral Combat Ships op-
erating on extended deployments. 
(3) Observations and recommendations regarding 
limited exceptions to existing authorities required to 
support Littoral Combat Ships operating on extended 
deployments.
479 
(4) The effect of the pilot program on material 
readiness and operational availability. 
(5) Whether overseas maintenance periodicities 
undertaken during the pilot program were accom-
plished in the scheduled or allotted timeframes 
throughout the pilot program. 
(6) The total cost to sustain the three Littoral 
Combat Ships selected for the pilot program during 
the program, including all costs for Federal and con-
tractor employees performing corrective and preven-
tive maintenance, and all facilitization costs, both 
ashore and shipboard. 
(7) A detailed comparison of costs, including the 
cost of labor, between maintenance support provided 
in the United States and any savings achieved by 
performing facilities maintenance in foreign ship-
yards. 
(8) A description of the permanent facilities re-
quired to support Littoral Combat Ships operating on 
extended deployment at overseas locations. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘corrective and preventive mainte-
nance or repair’’ means— 
(A) maintenance or repair actions per-
formed as a result of a failure in order to return
480 
or restore equipment to acceptable performance 
levels; or 
(B) scheduled maintenance or repair ac-
tions intended to prevent or discover functional 
failures, including scheduled periodic mainte-
nance requirements and integrated class mainte-
nance plan tasks that are time-directed mainte-
nance actions. 
(2) The term ‘‘facilities maintenance’’ means— 
(A) preservation or corrosion control efforts, 
including surface preparation and preservation 
of the structural facility to minimize effects of 
corrosion; or 
(B) cleaning services, including— 
(i) light surface cleaning of ship struc-
tures and compartments; and 
(ii) deep cleaning of bilges to remove 
dirt, oily waste, and other foreign matter. 
(d) TERMINATION.—The authority to carry out a pilot 
program under subsection (a) shall terminate on September 
30, 2016. 
SEC. 1026. AVAILABILITY OF FUNDS FOR RETIREMENT OR 
INACTIVATION 
OF 
TICONDEROGA 
CLASS 
CRUISERS OR DOCK LANDING SHIPS. 
(a) LIMITATION ON AVAILABILITY OF FUNDS.—
481 
(1) IN GENERAL.—Except as otherwise provided 
in this section, none of the funds authorized to be ap-
propriated or otherwise made available for the De-
partment of Defense by this Act or the National De-
fense Authorization Act for Fiscal Year 2014 (Public 
Law 113–66) may be obligated or expended to retire, 
prepare to retire, inactivate, or place in storage a 
cruiser or dock landing ship. 
(2) USE OF SMOSF FUNDS.—As provided by sec-
tion 8107 of the Consolidated Appropriations Act, 
2014 (Public Law 113–76), funds in the Ship, Mod-
ernization, Operations, and Sustainment Fund may 
be used only for 11 Ticonderoga-class cruisers (CG 63 
through CG 73) and 3 dock landing ships (LSD 41, 
LSD 42, and LSD 46). 
(b) MODERNIZATION OF TICONDEROGA CLASS CRUIS-
ERS AND DOCK LANDING SHIPS.—The Secretary of the 
Navy shall begin the upgrade of two cruisers specified in 
(a)(2) during fiscal year 2015, including— 
(1) hull, mechanical, and electrical upgrades; 
and 
(2) combat systems modernizations. 
(c) REQUIREMENTS AND LIMITATIONS ON MODERNIZA-
TION.—
482 
(1) REQUIREMENTS.—During the period of mod-
ernization under subsection (b) of the vessels specified 
in subsection (a)(2), the Secretary of the Navy shall— 
(A) continue to maintain the vessels in a 
manner that will ensure the ability of the vessels 
to reenter the operational fleet; 
(B) conduct planning activities to ensure 
scheduled and deferred maintenance and mod-
ernization work items are identified and in-
cluded in maintenance availability work pack-
ages; and 
(C) conduct hull, mechanical, and electrical 
and combat system modernization necessary to 
achieve a service life of 40 years. 
(2) LIMITATIONS.—During the period of mod-
ernization under subsection (b) of the vessels specified 
in subsection (a)(2), the Secretary may not— 
(A) permit removal or cannibalization of 
equipment or systems to support operational ves-
sels, other than— 
(i) rotatable pool equipment; and 
(ii) equipment or systems necessary to 
support urgent operational requirements 
(but only with the approval of the Secretary 
of Defense); or
483 
(B) make any irreversible modifications 
that will prohibit the vessel from reentering the 
operational fleet. 
(d) REPORTS.— 
(1) IN GENERAL.—At the same time as the sub-
mittal to Congress of the budget of the President 
under section 1105 of title 31, United States, for each 
fiscal year during which activities under the mod-
ernization of vessels will be carried out under this sec-
tion, the Secretary of the Navy shall submit to the 
congressional defense committees a written report on 
the status of the modernization of vessels under this 
section. 
(2) ELEMENTS.—Each report under this sub-
section shall include the following: 
(A) The status of modernization efforts, in-
cluding availability schedules, equipment pro-
curement schedules, and by-fiscal year funding 
requirements. 
(B) The readiness and operational and 
manning status of each vessel to be undergoing 
modernization under this section during the fis-
cal year covered by such report. 
(C) The current material condition assess-
ment for each such vessel.
484 
(D) A list of rotatable pool equipment that 
is identified across the whole class of cruisers to 
support operations on a continuing basis. 
(E) A list of equipment, other than rotat-
able pool equipment and components incidental 
to performing maintenance, removed from each 
such vessel, including a justification for the re-
moval, the disposition of the equipment, and 
plan for restoration of the equipment. 
(F) A detailed plan for obligations and ex-
penditures by vessel for the fiscal year beginning 
during the calendar year during which the re-
port is submitted, and projections of obligations 
by vessel by fiscal year for the remaining time 
a vessel is projected to be in the modernization 
program. 
(G) A statement of the funding required for 
that fiscal year to ensure the Ship, Moderniza-
tion, Operations, and Sustainment Fund ac-
count has adequate resources to execute the plan 
under subparagraph (F) for that fiscal year and 
the following fiscal year. 
(3) NOTICE ON VARIANCE FROM PLAN.—Not later 
than 30 days before executing any material deviation 
from a plan described in paragraph (2)(F) for a fis-
485 
cal year, the Secretary shall notify the congressional 
defense committees in writing of such deviation from 
the plan. 
(e) REPEAL OF SUPERSEDED LIMITATION.—Section 
1023 of the National Defense Authorization Act for Fiscal 
Year 2014 (Public Law 113–66; 127 Stat. 846) is repealed. 
Subtitle D—Counterterrorism 
SEC. 1031. EXTENSION OF AUTHORITY TO MAKE REWARDS 
FOR COMBATING TERRORISM. 
Section 127b(c)(3)(C) of title 10, United States Code, 
is amended by striking ‘‘September 30, 2014’’ and inserting 
‘‘September 30, 2015’’. 
SEC. 1032. PROHIBITION ON USE OF FUNDS TO CONSTRUCT 
OR 
MODIFY 
FACILITIES 
IN 
THE 
UNITED 
STATES 
TO 
HOUSE 
DETAINEES 
TRANS-
FERRED FROM UNITED STATES NAVAL STA-
TION, GUANTANAMO BAY, CUBA. 
Section 1033 of the National Defense Authorization 
Act for Fiscal Year 2014 (Public Law 113–66; 127 Stat. 
850) is amended by striking ‘‘December 31, 2014’’ and in-
serting ‘‘December 31, 2015’’.
486 
SEC. 1033. PROHIBITION ON THE USE OF FUNDS FOR THE 
TRANSFER OR RELEASE OF INDIVIDUALS DE-
TAINED AT UNITED STATES NAVAL STATION, 
GUANTANAMO BAY, CUBA. 
Section 1034 of the National Defense Authorization 
Act for Fiscal Year 2014 (Public Law 113–66; 127 Stat. 
851) is amended by striking ‘‘December 31, 2014’’ and in-
serting ‘‘December 31, 2015’’. 
Subtitle E—Miscellaneous 
Authorities and Limitations 
SEC. 1041. MODIFICATION OF DEPARTMENT OF DEFENSE 
AUTHORITY FOR HUMANITARIAN DEMINING 
ASSISTANCE 
AND 
STOCKPILED 
CONVEN-
TIONAL MUNITIONS ASSISTANCE PROGRAMS. 
(a) INCLUSION OF INFORMATION ABOUT INSUFFICIENT 
FUNDING IN ANNUAL REPORT.—Subsection (d)(3) of sec-
tion 407 of title 10, United States Code, is amended by in-
serting ‘‘or insufficient funding’’ after ‘‘such activities’’. 
(b) DEFINITION OF STOCKPILED CONVENTIONAL MU-
NITIONS ASSISTANCE.—Subsection (e)(2) of such section is 
amended— 
(1) by striking ‘‘and includes’’ and inserting the 
following: ‘‘small arms, and light weapons, including 
man-portable air-defense systems. Such term in-
cludes’’; and
487 
(2) by inserting before the period at the end the 
following: ‘‘, small arms, and light weapons, includ-
ing man-portable air-defense systems’’. 
SEC. 1042. AIRLIFT SERVICE. 
(a) IN GENERAL.—Chapter 931 of title 10, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 9516. Airlift service 
‘‘(a) INTERSTATE TRANSPORTATION.—(1) Except as 
provided in subsection (d) of this section, the transportation 
of passengers or property by CRAF-eligible aircraft in 
interstate air transportation obtained by the Secretary of 
Defense or the Secretary of a military department through 
a contract for airlift service in the United States may be 
provided only by an air carrier that— 
‘‘(A) has aircraft in the civil reserve air fleet or 
offers to place the aircraft in that fleet; and 
‘‘(B) holds a certificate issued under section 
41102 of title 49. 
‘‘(2) The Secretary of Transportation shall act as expe-
ditiously as possible on an application for a certificate 
under section 41102 of title 49 to provide airlift service. 
‘‘(b) 
TRANSPORTATION
BETWEEN
THE
UNITED 
STATES AND FOREIGN LOCATIONS.—Except as provided in 
subsection (d), the transportation of passengers or property
488 
by CRAF-eligible aircraft between a place in the United 
States and a place outside the United States obtained by 
the Secretary of Defense or the Secretary of a military de-
partment through a contract for airlift service shall be pro-
vided by an air carrier referred to in subsection (a). 
‘‘(c) TRANSPORTATION
BETWEEN
FOREIGN
LOCA-
TIONS.—The transportation of passengers or property by 
CRAF-eligible aircraft between two places outside the 
United States obtained by the Secretary of Defense or the 
Secretary of a military department through a contract for 
airlift service shall be provided by an air carrier referred 
to in subsection (a) whenever transportation by such an air 
carrier is reasonably available. 
‘‘(d) EXCEPTION.—When the Secretary of Defense de-
cides that no air carrier holding a certificate under section 
41102 of title 49 is capable of providing, and willing to 
provide, the airlift service, the Secretary of Defense may 
make a contract to provide the service with an air carrier 
not having a certificate. 
‘‘(e) CRAF-ELIGIBLE AIRCRAFT DEFINED.—In this 
section, ‘CRAF-eligible aircraft’ means aircraft of a type 
the Secretary of Defense has determined to be eligible to par-
ticipate in the civil reserve air fleet.’’.
489 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item: 
‘‘9516. Airlift service.’’. 
SEC. 1043. AUTHORITY TO ACCEPT CERTAIN VOLUNTARY 
LEGAL SUPPORT SERVICES. 
Section 1588(a) of title 10, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(10) Voluntary legal support services provided 
by law students through internship and externship 
programs approved by the Secretary concerned.’’. 
SEC. 1044. EXPANSION OF AUTHORITY FOR SECRETARY OF 
DEFENSE TO USE THE DEPARTMENT OF DE-
FENSE REIMBURSEMENT RATE FOR TRANS-
PORTATION SERVICES PROVIDED TO CER-
TAIN NON-DEPARTMENT OF DEFENSE ENTI-
TIES. 
(a) ELIGIBLE CATEGORIES OF TRANSPORTATION.— 
Subsection (a) of section 2642 of title 10, United States 
Code, is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘The Secretary’’ and inserting ‘‘Subject to 
subsection (b), the Secretary’’; 
(2) in paragraph (3)—
490 
(A) by striking ‘‘During the period begin-
ning on October 28, 2009, and ending on October 
28, 2019, for’’ and inserting ‘‘For’’; and 
(B) by striking ‘‘of Defense’’ the first place 
it appears and all that follows through ‘‘military 
sales’’ and inserting ‘‘of Defense’’; and 
(3) by adding at the end the following new para-
graphs: 
‘‘(4) For military transportation services pro-
vided in support of foreign military sales. 
‘‘(5) For military transportation services pro-
vided to a State, local, or tribal agency (including 
any organization composed of State, local, or tribal 
agencies). 
‘‘(6) For military transportation services pro-
vided to a Department of Defense contractor when 
transporting supplies that are for, or destined for, a 
Department of Defense entity.’’. 
(b) TERMINATION OF AUTHORITY FOR CERTAIN CAT-
EGORIES OF TRANSPORTATION.—Such section is further 
amended— 
(1) by redesignating subsection (b) as subsection 
(c); and 
(2) by inserting after subsection (a) the following 
new subsection (b):
491 
‘‘(b) TERMINATION OF AUTHORITY FOR CERTAIN CAT-
EGORIES OF TRANSPORTATION.—The provisions of para-
graphs (3), (4), (5), and (6) of subsection (a) shall apply 
only to military transportation services provided before Oc-
tober 1, 2019.’’. 
(c) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of such sec-
tion is amended to read as follows: 
‘‘§ 2642. Transportation services provided to certain 
non-Department of Defense agencies and 
entities: use of Department of Defense re-
imbursement rate’’. 
(2) TABLE OF SECTIONS.—The item relating to 
such section in the table of sections at the beginning 
of chapter 157 of such title is amended to read as fol-
lows: 
‘‘2642. Transportation services provided to certain non-Department of Defense 
agencies and entities: use of Department of Defense reimburse-
ment rate.’’. 
SEC. 1045. REPEAL OF AUTHORITY RELATING TO USE OF 
MILITARY INSTALLATIONS BY CIVIL RESERVE 
AIR FLEET CONTRACTORS. 
(a) REPEAL.—Section 9513 of title 10, United States 
Code, is repealed. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 931 of such title is amended by 
striking the item relating to section 9513.
492 
SEC. 1046. INCLUSION OF CHIEF OF THE NATIONAL GUARD 
BUREAU AMONG LEADERSHIP OF THE DE-
PARTMENT OF DEFENSE PROVIDED PHYS-
ICAL PROTECTION AND PERSONAL SECURITY. 
(a) INCLUSION.—Subsection (a) of section 1074 of the 
National Defense Authorization Act for Fiscal Year 2008 
(Public Law 110–181; 122 Stat. 330) 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) Chief of the National Guard Bureau.’’. 
(b) CONFORMING AMENDMENT.—Subsection (b)(1) of 
such section is amended by striking ‘‘paragraphs (1) 
through (7)’’ and inserting ‘‘paragraphs (1) through (8)’’. 
SEC. 1047. INCLUSION OF REGIONAL ORGANIZATIONS IN 
AUTHORITY FOR ASSIGNMENT OF CIVILIAN 
EMPLOYEES OF THE DEPARTMENT OF DE-
FENSE 
AS 
ADVISORS 
TO 
FOREIGN 
MIN-
ISTRIES OF DEFENSE. 
(a) INCLUSION OF REGIONAL ORGANIZATIONS IN AU-
THORITY.—Section 1081 of the National Defense Authoriza-
tion Act for Fiscal Year 2012 (Public Law 112–81; 125 
Stat. 1599; 10 U.S.C. 168 note) is amended— 
(1) in subsection (a)—
493 
(A) in the matter preceding paragraph (1), 
by inserting ‘‘or regional organizations with se-
curity missions’’ after ‘‘foreign countries’’; and 
(B) by inserting ‘‘or regional organization’’ 
after ‘‘ministry’’ each place it appears in para-
graphs (1) and (2); 
(2) by redesignating subsections (c) and (d) as 
subsections (d) and (e), respectively, and inserting 
after subsection (b) the following new subsection (c): 
‘‘(c) CONGRESSIONAL NOTICE.—Not later than 15 
days before assigning a civilian employee of the Department 
of Defense as an advisor to a regional organization with 
a security mission under subsection (a), the Secretary shall 
submit to the Committees on Armed Services and Foreign 
Relations of the Senate and the Committees on Armed Serv-
ices and Foreign Affairs of the House of Representatives a 
notification of such assignment. Such a notification shall 
include each of the following: 
‘‘(1) A statement of the intent of the Secretary 
to assign the employee as an advisor to the regional 
organization. 
‘‘(2) The name of the regional organization and 
the location and duration of the assignment. 
‘‘(3) A description of the assignment, including 
a description of the training or assistance proposed to
494 
be provided to the regional organization, the justifica-
tion for the assignment, a description of the unique 
capabilities the employee can provide to the regional 
organization, and a description of how the assign-
ment serves the national security interests of the 
United States. 
‘‘(4) Any other information relating to the as-
signment that the Secretary of Defense considers ap-
propriate.’’; 
(3) in subsection (d), as so redesignated, by in-
serting ‘‘and regional organizations with security 
missions’’ after ‘‘defense ministries’’ each place it ap-
pears in paragraphs (1) and (5); and 
(4) in subsection (e), as so redesignated, by strik-
ing ‘‘subsection (c)’’ and inserting ‘‘subsection (d)’’. 
(b) UPDATE OF POLICY GUIDANCE ON AUTHORITY.— 
The Under Secretary of Defense for Policy shall issue an 
update of the policy of the Department of Defense for as-
signment of civilian employees of the Department as advi-
sors to foreign ministries of defense and regional organiza-
tions under the authority in section 1081 of the National 
Defense Authorization Act for Fiscal Year 2012 (Public 
Law 112–81; 125 Stat. 1599; 10 U.S.C. 168 note), as 
amended by this section.
495 
(c) CONFORMING AMENDMENT.—The section heading 
of such section is amended to read as follows: 
‘‘SEC. 1081. AUTHORITY FOR ASSIGNMENT OF CIVILIAN EM-
PLOYEES OF THE DEPARTMENT OF DEFENSE 
AS ADVISORS TO FOREIGN MINISTRIES OF 
DEFENSE AND REGIONAL ORGANIZATIONS.’’. 
SEC. 1048. REPORT AND LIMITATION ON AVAILABILITY OF 
FUNDS FOR AVIATION FOREIGN INTERNAL 
DEFENSE PROGRAM. 
(a) REPORT.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense com-
mittees a report on the aviation foreign internal de-
fense program. Such report shall include each of the 
following: 
(A) An overall description of the program, 
including validated requirements from each of 
the geographic combatant commands and the 
Joint Staff, and of the statutory authorities used 
to support fixed and rotary wing aviation for-
eign internal defense programs within the De-
partment of Defense. 
(B) Program goals, proposed metrics of per-
formance success, and anticipated procurement
508 
the regular Army, Army Reserve, and Army National 
Guard units. 
(3) A comparison of the military and civilian 
personnel requirements for supporting combat avia-
tion brigades under each proposal, including a de-
scription of the anticipated requirements and funding 
allocated for active Guard Reserve and full-time mili-
tary technicians supporting the Army National 
Guard AH-64 ‘‘Apache’’ units. 
(c) SENSE
OF CONGRESS REGARDING ADDITIONAL 
FUNDING FOR THE ARMY.—Congress is concerned with the 
planned reductions and realignments the Army has pro-
posed for the regular Army, the Army National Guard, and 
the Army Reserves in order to comply with the funding con-
straints under the Budget Control Act of 2011 (Public Law 
112–25). Concerns are particularly associated with pro-
posed reductions in end strength for all components that 
will result in additional reductions in the number of reg-
ular Army and National Guard brigade combat teams as 
well as reductions and realignments of combat aircraft 
within and between the regular Army and the Army Na-
tional Guard. Sufficient funding should be provided to re-
tain the force structure and sustain the readiness of as much 
Total Army combat capability as possible.
509 
SEC. 1058. IMPROVING ANALYTIC SUPPORT TO SYSTEMS AC-
QUISITION AND ALLOCATION OF ACQUISI-
TION, INTELLIGENCE, SURVEILLANCE AND 
RECONNAISSANCE ASSETS. 
(a) GUIDANCE.—Not later than 120 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
review and issue or revise guidance to components of the 
Department of Defense to improve the application of oper-
ations research and systems analysis to— 
(1) the requirements process for acquisition of 
major defense acquisition programs and major auto-
mated information systems; and 
(2) the allocation of intelligence, surveillance, 
and reconnaissance systems to the combatant com-
mands. 
(b) BRIEFING OF CONGRESS.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall brief— 
(1) the congressional defense committees on any 
guidance issued or revised under subsection (a); and 
(2) the Select Committee on Intelligence of the 
Senate and the Permanent Select Committee on Intel-
ligence of the House of Representatives on any guid-
ance issued or revised under subsection (a)(2) relevant 
to intelligence.