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(2) by redesignating subsections (e), (h), (i), 
and (j) as subsections (d), (e), (f), and (g), respec-
tively; and 
(3) by inserting after subsection (b) the fol-
lowing new subsection (c): 
‘‘(c) INVENTORY.—(1) The Secretary of Defense 
shall implement a method for inventory of Department of 
Defense contracts for services. The method implemented 
under this subsection shall provide the capability to— 
‘‘(A) make appropriate comparisons of con-
tractor and Government civilian full-time equivalent 
employees for the purpose of informing sourcing de-
cisions and workforce planning in compliance with 
section 129a of this title; 
‘‘(B) distinguish between different types of 
services contracts, including contracts for labor or 
staff augmentation and other types of services con-
tracts; 
‘‘(C) provide qualitative information such as the 
nature of the work performed, the place where the 
work is actually performed (on-site or off-site), and 
the entity for which the work is performed; and 
‘‘(D) identify the number of contractor employ-
ees, expressed as full-time equivalents for direct 
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labor, using direct labor hours and associated cost 
data collected from contractors. 
‘‘(2) The Secretary shall ensure that the method im-
plemented under this subsection is auditable at minimal 
cost.’’. 
(b) IMPLEMENTATION OF INVENTORY METHOD.— 
Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense shall implement a 
method for inventory of Department of Defense contracts 
for services, as required by subsection (c) of section 
2330a, as amended by subsection (a). In implementing the 
method, the Secretary shall use methods and systems, in-
cluding time-and-attendance systems, or combinations of 
methods and systems, in existence as of the date of the 
enactment of this Act, as determined appropriate by the 
Secretary. 
(c) SUBMISSION TO CONGRESS.—Not later than the 
end of the third quarter of each fiscal year, through fiscal 
year 2021, the Secretary of Defense shall submit to Con-
gress a summary of the inventory reporting activities per-
formed by each military department, each combatant com-
mand, and each Defense Agency, during the preceding fis-
cal year pursuant to contracts for services (and pursuant 
to contracts for goods to the extent services are a signifi-
cant component of performance as identified in a separate 
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line item of a contract) for or on behalf of the Department 
of Defense. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 2330a of title 10, United States 
Code, is further amended— 
(A) in subsection (d), as redesignated by 
subsection (a)(2) of this section, by striking 
‘‘Within 90 days after the date on which an in-
ventory is submitted under subsection (c),’’ and 
inserting ‘‘Not later than the end of each fiscal 
year,’’; and 
(B) in subsection (e), as so redesignated— 
(i) by striking ‘‘2014 and ending with 
2016’’ and inserting ‘‘2017 and ending 
with 2018’’; and 
(ii) by striking ‘‘subsections (e) and 
(f)’’ and inserting ‘‘subsection (c)’’. 
(2) Section 235(b) of such title is amended— 
(A) by striking ‘‘and separately’’ and all 
the follows through ‘‘amount requested’’ and in-
serting ‘‘and separately identify the amount re-
quested and the number of full-time contractor 
employees (or the equivalent of full-time in the 
case of part-time contractor employees)’’; 
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(B) by striking ‘‘; and’’ and inserting a pe-
riod; and 
(C) by striking paragraph (2). 
SEC. 804. PROCUREMENT OF PERSONAL PROTECTIVE 
EQUIPMENT. 
Section 884 of the National Defense Authorization 
Act for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 
948; 10 U.S.C. 2302 note) is amended— 
(1) by inserting ‘‘(a) REQUIREMENT.—’’ before 
‘‘The Secretary of Defense’’; 
(2) by striking ‘‘that is predominately’’ and all 
that follows through ‘‘price’’ and inserting ‘‘de-
scribed in subsection (b)’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(b) SOURCE SELECTION CRITERIA DESCRIBED.— 
For purposes of subsection (a), the source selection cri-
teria described in this subsection are criteria— 
‘‘(1) that are predominately based on technical 
qualifications of the item and not predominately 
based on price; 
‘‘(2) that do not use reverse auction or lowest 
price technically acceptable contracting methods; and 
‘‘(3) that reflect a preference for best value 
source selection methods.’’. 
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SEC. 805. REVISION TO EFFECTIVE DATE OF SENIOR EXEC-
UTIVE BENCHMARK COMPENSATION FOR AL-
LOWABLE COST LIMITATIONS. 
(a) REPEAL OF RETROACTIVE APPLICABILITY.—Sec-
tion 803(c) of the National Defense Authorization Act for 
Fiscal Year 2012 (Public Law 112–81; 125 Stat. 1485; 
10 U.S.C. 2324 note) is amended by striking ‘‘amend-
ments made by’’ and all that follows and inserting 
‘‘amendments made by this section shall apply with re-
spect to costs of compensation incurred after January 1, 
2012, under contracts entered into on or after December 
31, 2011.’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall take effect as of December 31, 2011, and 
shall apply as if included in the National Defense Author-
ization Act for Fiscal Year 2012 as enacted. 
SEC. 806. AMENDMENTS RELATED TO DETECTION AND 
AVOIDANCE OF COUNTERFEIT ELECTRONIC 
PARTS. 
Section 818 of the National Defense Authorization 
Act for Fiscal Year 2012 (Public Law 112–81; 10 U.S.C. 
2302 note) is amended— 
(1) in paragraph (3) of subsection (c)— 
(A) by striking the heading and inserting 
‘‘SUPPLIERS
MEETING
ANTICOUNTERFEITING 
REQUIREMENTS.—’’; 
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(B) in subparagraph (A)(i), by striking 
‘‘trusted suppliers in accordance with regula-
tions issued pursuant to subparagraph (C) or 
(D) who’’ and inserting ‘‘suppliers that meet 
anticounterfeiting requirements in accordance 
with regulations issued pursuant to subpara-
graph (C) or (D) and that’’; 
(C) in subparagraphs (A)(ii) and (A)(iii), 
by striking ‘‘trusted suppliers’’ each place it ap-
pears and inserting ‘‘suppliers that meet 
anticounterfeiting requirements’’; 
(D) in subparagraph (C), by striking ‘‘as 
trusted suppliers those’’ and inserting ‘‘sup-
pliers’’; 
(E) in subparagraph (D) in the matter 
preceding clause (i), by striking ‘‘trusted sup-
pliers’’ and inserting ‘‘suppliers that meet 
anticounterfeiting requirements’’; and 
(F) in subparagraphs (D)(i) and (D)(iii), 
by striking ‘‘trusted’’ each place it appears; and 
(2) in subsection (e)(2)(A)(v), by striking ‘‘use 
of trusted suppliers’’ and inserting ‘‘the use of sup-
pliers that meet applicable anticounterfeiting re-
quirements’’. 
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SEC. 807. AMENDMENTS TO SPECIAL EMERGENCY PRO-
CUREMENT AUTHORITY. 
Section 1903(a) of title 41, United States Code, is 
amended— 
(1) by striking ‘‘or’’ at the end of paragraph 
(1); 
(2) by striking the period at the end of para-
graph (2) and inserting a semicolon; and 
(3) by adding after paragraph (2) the following 
new paragraphs: 
‘‘(3) in support of a request from the Secretary 
of State or the Administrator of the United States 
Agency for International Development to facilitate 
the provision of international disaster assistance 
pursuant to chapter 9 of part I of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2292 et seq.); or 
‘‘(4) in support of an emergency or major dis-
aster (as those terms are defined in section 102 of 
the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5122)).’’. 
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SEC. 808. COMPLIANCE WITH DOMESTIC SOURCE REQUIRE-
MENTS FOR FOOTWEAR FURNISHED TO EN-
LISTED MEMBERS OF THE ARMED FORCES 
UPON 
THEIR 
INITIAL 
ENTRY 
INTO 
THE 
ARMED FORCES. 
Section 418 of title 37, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(d)(1) In the case of athletic footwear needed by 
members of the Army, Navy, Air Force, or Marine Corps 
upon their initial entry into the armed forces, the Sec-
retary of Defense shall furnish such footwear directly to 
the members instead of providing a cash allowance to the 
members for the purchase of such footwear. 
‘‘(2) In procuring athletic footwear to comply with 
paragraph (1), the Secretary of Defense shall comply with 
the requirements of section 2533a of title 10, without re-
gard to the applicability of any simplified acquisition 
threshold under chapter 137 of title 10 (or any other pro-
vision of law). 
‘‘(3) This subsection does not prohibit the provision 
of a cash allowance to a member described in paragraph 
(1) for the purchase of athletic footwear if such foot-
wear— 
‘‘(A) is medically required to meet unique phys-
iological needs of the member; and 
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‘‘(B) cannot be met with athletic footwear that 
complies with the requirements of this subsection.’’. 
SEC. 809. REQUIREMENT FOR POLICIES AND STANDARD 
CHECKLIST IN PROCUREMENT OF SERVICES. 
(a) REQUIREMENT.—Section 2330a of title 10, 
United States Code, as amended by section 803, is further 
amended by adding by adding at the end the following new 
subsection: 
‘‘(h) REQUEST
FOR
SERVICES
CONTRACT
AP-
PROVAL.—(1) The Under Secretary of Defense for Per-
sonnel and Readiness shall— 
‘‘(A) ensure that Department of Defense In-
struction 1100.22, Guidance for Manpower Mix, is 
modified to incorporate policies establishing a stand-
ard checklist to be completed ensuring the appro-
priate alignment of workload to the private sector 
prior to the issuance of a solicitation for any new 
contract for services or exercising an option under 
an existing contract for services, including services 
provided under a contract for goods; and 
‘‘(B) in coordination with the Under Secretary 
of Defense for Acquisition, Technology, and Logis-
tics, ensure that such policies and checklist are in-
corporated by reference or otherwise into the Service 
Requirements Review Board processes established 
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under Department of Defense Instruction 5000.74 
and into the pre-solicitation requirements of the De-
fense Federal Acquisition Regulation Supplement. 
‘‘(2) Such checklist shall, at minimum, consolidate 
and address workforce management and sourcing consid-
erations established under sections 129, 129a, 2461, and 
2463 of this title as well as Office of Federal Procurement 
Policy Letter 11–01.’’. 
(b) 
ARMY
MODEL.—In 
implementing 
section 
2330a(g) of title 10, United States Code, as added by sub-
section (a), the Under Secretary of Defense for Personnel 
and Readiness shall model, to the maximum extent prac-
ticable, its policies and checklist on the policies and check-
list relating to services contract approval established and 
in use by the Department of the Army (as set forth in 
the request for services contract approval form updated 
as of August 2012, or any successor form). 
(c) DEADLINE.—The policies required under such 
section 2230a(g) of such title, as so added, shall be issued 
within one year after the date of the enactment of this 
Act. 
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(C) in subparagraph (B), by striking ‘‘or 
upon the request’’ and all that follows through 
the semicolon at the end and inserting ‘‘, upon 
the request of the Under Secretary of Defense 
for Acquisition, Technology, and Logistics, or 
upon the request of the milestone decision au-
thority;’’ 
(3) by redesignating subsections (b), (c), (d), 
(e), and (f) as subsections (c), (d), (e), (f), and (h), 
respectively; 
(4) by inserting after subsection (a) the fol-
lowing new subsection (b): 
‘‘(b) INDEPENDENT COST ESTIMATE REQUIRED BE-
FORE APPROVAL.—(1) A milestone decision authority may 
not approve the system development and demonstration, 
or production and deployment, of a major defense acquisi-
tion program, major automated information system pro-
gram, or major subprogram unless an independent cost 
estimate of the full life-cycle cost of the program or sub-
program has been conducted or approved by the Director 
of Cost Assessment and Program Evaluation and consid-
ered by the milestone decision authority. 
‘‘(2) The regulations governing the content and sub-
mission of independent cost estimates required by sub-
section (a) shall require that the independent cost estimate 
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of the full life-cycle cost of a program or subprogram in-
clude— 
‘‘(A) all costs of development, procurement, 
military construction, operations and support, and 
trained manpower to operate, maintain, and support 
the program or subprogram upon full operational de-
ployment, without regard to funding source or man-
agement control; and 
‘‘(B) an analysis to support decision making 
that identifies and evaluates alternative courses of 
action that may reduce cost, reduce risk, and result 
in more affordable programs.’’; 
(5) in subsection (d), as so redesignated, in 
paragraph (3), by striking ‘‘confidence level’’ and in-
serting ‘‘discussion of risk’’; 
(6) in subsection (e), as so redesignated— 
(A) by amending the subsection heading to 
read as follows: ‘‘DISCUSSION OF RISK IN COST 
ESTIMATES.—’’; 
(B) by amending paragraph (1) to read as 
follows: 
‘‘(1) issue guidance requiring a discussion of 
risk, the potential impacts of risk on program costs, 
and approaches to mitigate risk in cost estimates for 
major defense acquisition programs, major auto-
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mated information system programs, and major sub-
programs;’’; 
(C) in paragraph (2)— 
(i) by striking ‘‘such confidence level 
provides’’ and inserting ‘‘cost estimates 
provide’’; and 
(ii) by inserting ‘‘or subprogram’’ 
after ‘‘the program’’; and 
(D) in paragraph (3), by striking ‘‘disclo-
sure required by paragraph (1)’’ and inserting 
‘‘information required in the guidance under 
paragraph (1)’’; and 
(7) by inserting after subsection (f), as so re-
designated, the following new subsection: 
‘‘(g) GUIDELINES
AND
COLLECTION
OF
COST 
DATA.—(1) The Director of Cost Assessment and Pro-
gram Evaluation shall, in consultation with the Under 
Secretary of Defense for Acquisition, Technology, and Lo-
gistics, develop policies, procedures, guidance, and a col-
lection method to ensure that acquisition cost data are col-
lected in a standardized format that facilitates cost esti-
mation and comparison across acquisition programs. 
‘‘(2) The program manager and contracting officer 
for each major defense acquisition program, major auto-
mated information system program, and major subpro-
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gram, in consultation with the cost estimating component 
of the relevant military department or Defense Agency, 
shall ensure that cost data are collected in accordance with 
the requirements of paragraph (1) for any acquisition pro-
gram in an amount greater than $100,000,000. 
‘‘(3) The requirement under paragraph (1) may be 
waived only by the Director of Cost Assessment and Pro-
gram Evaluation.’’. 
(b) CONFORMING AMENDMENTS TO ADD SUBPRO-
GRAMS.—Section 2334 of such title is further amended— 
(1) in subsection (a)(2), by inserting ‘‘or major 
subprogram’’ before ‘‘under chapter 144’’; 
(2) in paragraphs (3), (4), and (5) of sub-
section (a) and in subsection (c)(1) (as redesignated 
by subsection (a) of this section), by striking ‘‘major 
defense acquisition programs and major automated 
information system programs’’ and inserting ‘‘major 
defense acquisition programs, major automated in-
formation system programs, and major subpro-
grams’’ each place it appears; 
(3) in paragraphs (1) and (2) of subsection (d) 
(as so redesignated), and in subsection (f)(4) (as so 
redesignated), by striking ‘‘major defense acquisition 
program or major automated information system 
program’’ and inserting ‘‘major defense acquisition 
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program, major automated information system pro-
gram, or major subprogram’’ each place it appears; 
(4) in subsection (d)(4) (as so redesignated), by 
inserting before the period ‘‘or major subprogram’’; 
(5) in subsection (e)(3)(B) (as so redesignated), 
by inserting ‘‘or major subprogram’’ after ‘‘major 
defense acquisition program’’; and 
(6) in subsection (f)(3) (as so redesignated), by 
striking ‘‘major defense acquisition program and 
major automated information system program’’ and 
inserting ‘‘major defense acquisition program, major 
automated information system program, and major 
subprogram’’. 
(c) REPEAL.—Chapter 144 of such title is amend-
ed— 
(1) by striking section 2434; and 
(2) in the table of sections at the beginning of 
such chapter, by striking the item relating to such 
section. 
SEC. 813. REVISIONS TO MILESTONE B DETERMINATIONS. 
Section 2366b(a)(3) of title 10, United States Code, 
is amended— 
(1) in subparagraph (B), by striking ‘‘acquisi-
tion cost in’’ and all that follows through the semi-
colon, and inserting ‘‘life-cycle cost;’’; and 
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(2) in subparagraph (D), by striking ‘‘funding 
is’’ and all that follows through ‘‘made,’’ and insert-
ing ‘‘funding is expected to be available to execute 
the product development and production plan for the 
program,’’. 
SEC. 814. REVIEW AND REPORT ON SUSTAINMENT PLAN-
NING IN THE ACQUISITION PROCESS. 
(a) REQUIREMENT FOR REVIEW.—The Secretary of 
Defense shall conduct a review of the extent to which 
sustainment matters are considered in decisions related to 
the requirements, acquisition, cost estimating, and pro-
gramming and budgeting processes for major defense ac-
quisition programs. The review shall include the following: 
(1) A determination of whether information re-
lated to the operation and sustainment of major de-
fense acquisition programs, including cost data, is 
available to inform decisions made during those 
processes. 
(2) If such information exists, an evaluation of 
the completeness, timeliness, quality, and suitability 
of the information for aiding in decisions made dur-
ing those processes. 
(3) A determination of whether information re-
lated to the operation and sustainment of existing 
major weapon systems is used to forecast the oper-
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ation and sustainment needs of major weapon sys-
tems proposed for or under development. 
(4) A description of the potential benefits from 
improved completeness, timeliness, quality, and suit-
ability of data on operation and support costs and 
increased consideration of such data. 
(5) Recommendations for improving access to 
and consideration of operation and support cost 
data. 
(6) An assessment of product support strategies 
for major weapon systems required by section 2337 
of title 10, United States Code, or other similar life- 
cycle sustainment strategies, including an evaluation 
of— 
(A) the stage at which such strategies are 
developed during the life of a major weapon 
system; 
(B) the content and completeness of such 
strategies; 
(C) the extent to which such strategies in-
fluence the planning for major defense acquisi-
tion programs; and 
(D) the extent to which such strategies in-
fluence decisions related to the life-cycle man-
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agement and product support of major weapon 
systems. 
(7) An assessment of how effectively the mili-
tary departments consider sustainment matters at 
key decision points for acquisition and life-cycle 
management in accordance with the requirements of 
sections 2431a, 2366a, 2366b, and 2337 of title 10, 
United States Code and section 832 of the National 
Defense Authorization Act for Fiscal Year 2012 
(Public Law 112–81; 10 U.S.C. 2430 note). 
(8) Recommendations for improving the consid-
eration of sustainment during the requirements, ac-
quisition, cost estimating, programming and budg-
eting processes. 
(b) CONTRACT WITH INDEPENDENT ENTITY.—Not 
later than 30 days after the date of the enactment of this 
Act, the Secretary shall enter into a contract with an inde-
pendent entity with appropriate expertise to conduct the 
review required by subsection (a). The contract also shall 
require the entity to provide to the Secretary a report on 
the findings of the entity. 
(c) BRIEFING.—Not later than March 1, 2017, the 
Secretary shall provide a briefing to the Committees on 
Armed Services of the Senate and House of Representa-
tives on the preliminary findings of the independent entity. 
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(d) SUBMISSION TO CONGRESS.—Not later than Au-
gust 1, 2017, the Secretary shall submit to the congres-
sional defense committees a copy of the report of the inde-
pendent entity, along with comments on the report, pro-
posed revisions or clarifications to laws related to life-cycle 
management or sustainment planning for major weapon 
systems, and a description of any actions the Secretary 
may take to revise or clarify regulations related to life- 
cycle management or sustainment planning for major 
weapon systems. 
SEC. 815. REVISION TO DISTRIBUTION OF ANNUAL REPORT 
ON OPERATIONAL TEST AND EVALUATION. 
Section 139(h) of title 10, United States Code, is 
amended— 
(1) in paragraph (2)— 
(A) by inserting ‘‘the Secretaries of the 
military departments,’’ after ‘‘Logistics,’’; and 
(B) by striking ‘‘10 days’’ and all that fol-
lows through ‘‘title 31’’ and inserting ‘‘January 
31 of each year, through January 31, 2021’’; 
and 
(2) in paragraph (5), by inserting after ‘‘Sec-
retary’’ the following: ‘‘of Defense and the Secre-
taries of the military departments’’. 
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Subtitle C—Provisions Relating to 
Commercial Items 
SEC. 821. REVISION TO DEFINITION OF COMMERCIAL ITEM. 
(a) IN GENERAL.—Section 103(8) of title 41, United 
States Code, is amended by striking ‘‘to multiple State 
and local governments’’ and inserting ‘‘to State, local, or 
foreign governments’’. 
(b) EFFECT ON SECTION 2464.—Nothing in this sec-
tion or the amendment made by this section shall affect 
the meaning of the term ‘‘commercial item’’ under section 
(a)(5) of section 2464 of title 10, United States Code, or 
any requirement under subsection (a)(3) or subsection (c) 
of such section. 
SEC. 822. MARKET RESEARCH FOR DETERMINATION OF 
PRICE REASONABLENESS IN ACQUISITION OF 
COMMERCIAL ITEMS. 
Section 2377 of title 10, United States Code, is 
amended— 
(1) by redesignating subsection (d) as sub-
section (e), and in that subsection by striking ‘‘sub-
section (c)’’ and inserting ‘‘subsections (c) and (d)’’; 
and 
(2) by inserting after subsection (c) the fol-
lowing new subsection (d): 
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‘‘(d) MARKET RESEARCH FOR PRICE ANALYSIS.— 
The Secretary of Defense shall ensure that procurement 
officials in the Department of Defense conduct or obtain 
market research to support the determination of the rea-
sonableness of price for commercial items contained in any 
bid or offer submitted in response to an agency solicita-
tion. To the extent necessary to support such market re-
search, the procurement official for the solicitation— 
‘‘(1) in the case of items acquired under section 
2379 of this title, shall use information submitted 
under subsection (d) of that section; and 
‘‘(2) in the case of other items, may require the 
offeror to submit relevant information.’’. 
SEC. 823. VALUE ANALYSIS FOR THE DETERMINATION OF 
PRICE REASONABLENESS. 
Subsection 2379(d) of title 10, United States Code, 
is amended— 
(1) by redesignating paragraph (2) as para-
graph (3); and 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph (2): 
‘‘(2) An offeror may submit information or analysis 
relating to the value of a commercial item to aid in the 
determination of the reasonableness of the price of such 
item. A contracting officer may consider such information 
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or analysis in addition to the information submitted pur-
suant to paragraphs (1)(A) and (1)(B).’’. 
SEC. 824. CLARIFICATION OF REQUIREMENTS RELATING 
TO COMMERCIAL ITEM DETERMINATIONS. 
Paragraphs (1) and (2) of section 2380 of title 10, 
United States Code, are amended to read as follows: 
‘‘(1) establish and maintain a centralized capa-
bility with necessary expertise and resources to pro-
vide assistance to the military departments and De-
fense Agencies in making commercial item deter-
minations, conducting market research, and per-
forming analysis of price reasonableness for the pur-
poses of procurements by the Department of De-
fense; and 
‘‘(2) provide to officials of the Department of 
Defense access to previous Department of Defense 
commercial item determinations, market research, 
and analysis used to determine the reasonableness of 
price for the purposes of procurements by the De-
partment of Defense.’’. 
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SEC. 825. PILOT PROGRAM FOR AUTHORITY TO ACQUIRE 
INNOVATIVE 
COMMERCIAL 
ITEMS 
USING 
GENERAL SOLICITATION COMPETITIVE PRO-
CEDURES. 
(a) AUTHORITY.—The Secretary of Defense may 
carry out a pilot program, to be known as a ‘‘commercial 
solutions opening pilot program’’, under which innovative 
commercial items may be acquired through a competitive 
selection of proposals resulting from a general solicitation 
and the peer review of such proposals. 
(b) TREATMENT AS COMPETITIVE PROCEDURES.— 
Use of general solicitation competitive procedures for the 
pilot program under subsection (a) shall be considered to 
be use of competitive procedures for purposes of chapter 
137 of title 10, United States Code. 
(c) LIMITATIONS ON FUNDING.— 
(1) LIMITATION
ON
INDIVIDUAL
CONTRACT 
AMOUNT.—The Secretary may not enter into a con-
tract under the pilot program for an amount in ex-
cess of $10,000,000. 
(2) ANNUAL
LIMITATION.—The total amount 
that may be obligated or expended under the pilot 
program for a fiscal year may not exceed 
$75,000,000. 
(d) LIMITATION RELATING TO MAJOR DEFENSE AC-
QUISITION PROGRAM SYSTEMS.—The Secretary may not 
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acquire innovative commercial items under the pilot pro-
gram to replace a system under a major defense acquisi-
tion program in its entirety. 
(e) GUIDANCE.—The Secretary shall issue guidance 
for the implementation of the pilot program under this 
section within the Department of Defense. Such guidance 
shall be issued in consultation with the Office of Manage-
ment and Budget and shall be posted for access by the 
public. 
(f) REPORTS REQUIRED.— 
(1) IN GENERAL.—Not later than six months 
after the initiation of the pilot program, and every 
six months thereafter, the Secretary shall submit to 
the Committees on Armed Services of the Senate 
and House of Representatives a report on the activi-
ties the Department of Defense carried out under 
the pilot program. 
(2) ELEMENTS OF REPORT.—The report under 
this subsection shall include the following: 
(A) An assessment of the impact of the 
pilot program on competition. 
(B) An assessment of the ability under the 
pilot program to attract proposals from non-
traditional defense contractors (as defined in 
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section 2302(9) of title 10, United States 
Code). 
(C) A comparison of acquisition timelines 
for— 
(i) procurements made using the pilot 
program; and 
(ii) procurements made using other 
competitive procedures that do not use 
general solicitations. 
(D) A recommendation on whether the au-
thority for the pilot program should be made 
permanent. 
(3) 
TERMINATION
OF
REPORT
REQUIRE-
MENT.—The requirement to submit a report under 
this subsection shall terminate on the date occurring 
five years after the date of the enactment of this 
Act. 
(g) DEFINITION.—In this section, the term ‘‘innova-
tive’’ means— 
(1) any new technology, process, or method, 
able to be used to improve or replace existing infor-
mation system applications, programs, or networks, 
or used to improve research and development of in-
formation technology advancements; or 
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(2) any new application of an existing tech-
nology, process, or method. 
(h) TERMINATION.—The authority to enter into a 
contract under a pilot program under this section termi-
nates on the date occurring five years after the date of 
the enactment of this Act. 
Subtitle D—Other Matters 
SEC. 831. REVIEW AND REPORT ON THE BID PROTEST 
PROCESS. 
(a) REVIEW.—The Secretary of Defense shall con-
duct a review of the bid protest processes related to major 
defense acquisition programs. The review shall examine 
the extent to which— 
(1) the incidence and duration of bid protests 
have increased or decreased during the previous dec-
ade; 
(2) bid protests have delayed procurement of 
items or services; 
(3) there are differences in the incidence and 
outcomes of bid protests filed by incumbent and 
non-incumbent contractors; 
(4) protests filed by incumbent contractors re-
sult in extension of the period of performance of a 
contract, and whether there are benefits (monetary 
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or non-monetary) to incumbent contractors under 
such circumstances; and 
(5) there are alternative actions or authorities 
that could give the Government more flexibility in 
managing contracts if a bid protest is filed. 
(b) CONTRACT WITH INDEPENDENT ENTITY.—Not 
later than 30 days after the date of the enactment of this 
Act, the Secretary of Defense shall enter into a contract 
with an independent entity with appropriate expertise to 
conduct the review required in subsection (a). 
(c) BRIEFING.—Not later than March 1, 2017, the 
Secretary, or his designee, shall brief the Committees on 
Armed Services of the Senate and House of Representa-
tives on interim findings of the independent entity. 
(d) REPORT.—Not later than July 1, 2017, the Sec-
retary shall submit to the congressional defense commit-
tees a report on the findings of the independent entity, 
along with a description of any actions that the Secretary 
proposes to address the findings of the independent entity. 
SEC. 832. REVIEW AND REPORT ON INDEFINITE DELIVERY 
CONTRACTS. 
(a) REPORT.—The Comptroller General of the 
United States shall deliver, not later than March 31, 
2018, a report to Congress on the use by the Department 
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of Defense of indefinite delivery contracts entered into 
during fiscal years 2015, 2016, and 2017. 
(b) ELEMENTS.—The report under subsection (a) 
shall address, at a minimum, the following: 
(1) A review of Department of Defense policies 
for using indefinite delivery contracts, including re-
quirements for competition. 
(2) The number and value of all indefinite de-
livery contracts entered into by the Department of 
Defense. 
(3) An assessment of the number and value of 
indefinite delivery contracts entered into by the De-
partment of Defense that included competition be-
tween multiple vendors. 
(4) Selected case studies of indefinite delivery 
contracts, including an assessment of whether any 
such contracts may have limited future opportunities 
for competition for the services or items required. 
(5) Recommendations for potential changes to 
current law or Department of Defense acquisition 
regulations to promote competition with respect to 
indefinite delivery contracts. 
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SEC. 833. REVIEW AND REPORT ON CONTRACTUAL FLOW- 
DOWN PROVISIONS. 
(a) REVIEW REQUIRED.—The Secretary of Defense 
shall conduct a review of contractual flow-down provisions 
related to major defense acquisition programs. The review 
shall— 
(1) identify the flow-down provisions that exist 
in the Federal Acquisition Regulation and the De-
fense Federal Acquisition Regulation Supplement; 
(2) identify the flow-down provisions that are 
critical for national security; 
(3) examine the extent to which clauses in con-
tracts with the Department of Defense are being ap-
plied inappropriately in subcontracts under the con-
tracts; 
(4) assess the applicability of flow-down provi-
sions for the purchase of commodity items that are 
acquired in bulk for multiple acquisition programs; 
(5) determine the unnecessary costs or burdens, 
if any, of flow-down provisions on the supply chain; 
and 
(6) determine the effect, if any, of flow-down 
provisions on the participation rate of small busi-
nesses and non-traditional defense contractors in de-
fense procurements. 
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(b) CONTRACT.—Not later than 30 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall enter into a contract with an independent entity with 
appropriate expertise to conduct the review required by 
subsection (a). 
(c) BRIEFING.—Not later than March 1, 2017, the 
Secretary, or his designee, shall brief the Committees on 
Armed Services of the Senate and the House of Represent-
atives on interim findings of the independent entity as well 
as initial recommendations of the entity on how to modify 
or eliminate contractual flow-down requirements that the 
entity considers burdensome or unnecessary. 
(d) REPORT.—Not later than August 1, 2017, the 
Secretary shall submit to the congressional defense com-
mittees a report on the findings of the independent entity, 
along with a description of any actions that the Secretary 
proposes to address the findings of the independent entity. 
SEC. 834. REVIEW OF ANTI-COMPETITIVE SPECIFICATIONS 
IN 
INFORMATION 
TECHNOLOGY 
ACQUISI-
TIONS. 
(a) REVIEW REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Under 
Secretary of Defense for Acquisition, Technology, and Lo-
gistics shall conduct a review of the policy, guidance, regu-
lations, and training related to specifications included in 
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information technology acquisitions to ensure current poli-
cies eliminate the unjustified use of potentially anti-com-
petitive specifications. In conducting the review, the Under 
Secretary shall examine the use of brand names or propri-
etary specifications or standards in solicitations for pro-
curements of goods and services, as well as the current 
acquisition training curriculum related to those areas. 
(b) BRIEFING REQUIRED.—Not later than 270 days 
after the date of the enactment of this Act, the Under 
Secretary shall provide a briefing to the Committees on 
Armed Services of the Senate and House of Representa-
tives on the results of the review required by subsection 
(a). 
(c) ADDITIONAL GUIDANCE.—Not later than one 
year after the date of the enactment of this Act, the Under 
Secretary shall revise policies, guidance, and training to 
incorporate such recommendations as the Under Secretary 
considers appropriate from the review required by sub-
section (a). 
SEC. 835. COAST GUARD MAJOR ACQUISITION PROGRAMS. 
(a) FUNCTIONS OF CHIEF ACQUISITION OFFICER.— 
Section 56(c) of title 14, United States Code, is amended 
by striking ‘‘and’’ after the semicolon at the end of para-
graph (8), striking the period at the end of paragraph (9) 
and inserting ‘‘; and’’, and adding at the end the following: 
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‘‘(10)(A) keeping the Commandant informed of 
the progress of major acquisition programs (as that 
term is defined in section 581); 
‘‘(B) informing the Commandant on a con-
tinuing basis of any developments on such programs 
that may require new or revisited trade-offs among 
cost, schedule, technical feasibility, and performance, 
including— 
‘‘(i) significant cost growth or schedule 
slippage; and 
‘‘(ii) requirements creep (as that term is 
defined in section 2547(c)(1) of title 10); and 
‘‘(C) ensuring that the views of the Com-
mandant regarding such programs on cost, schedule, 
technical feasibility, and performance trade-offs are 
strongly considered by program managers and pro-
gram executive officers in all phases of the acquisi-
tion process.’’. 
(b) CUSTOMER
SERVICE
MISSION
OF
DIREC-
TORATE.— 
(1) IN
GENERAL.—Chapter 15 of title 14, 
United States Code, is amended— 
(A) in section 561(b)— 
(i) in paragraph (1), by striking ‘‘; 
and’’ and inserting a semicolon; 
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(ii) in paragraph (2), by striking the 
period and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(3) to meet the needs of customers of major 
acquisition programs in the most cost-effective man-
ner practicable.’’; 
(B) in section 562, by repealing subsection 
(b) and redesignating subsections (c) through 
(g) as subsections (b) through (f), respectively; 
(C) in section 563, by striking ‘‘Not later 
than 180 days after the date of enactment of 
the Coast Guard Authorization Act of 2010, the 
Commandant shall commence implementation 
of’’ and inserting ‘‘The Commandant shall 
maintain’’; 
(D) by adding at the end of section 564 
the following: 
‘‘(c) ACQUISITION
OF UNMANNED AERIAL SYS-
TEMS.— 
‘‘(1) IN GENERAL.—The Commandant— 
‘‘(A) may not award a contract for design 
of an unmanned aerial system for use by the 
Coast Guard; and 
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‘‘(B) may acquire an unmanned aerial sys-
tem only— 
‘‘(i) if such a system has been ac-
quired or has been used by the Depart-
ment of Defense or the Department of 
Homeland Security, or a component there-
of, before the date on which the Com-
mandant acquires the system; and 
‘‘(ii) through an agreement with such 
department or component, unless the un-
manned aerial system can be obtained at 
less cost through independent contract ac-
tion. 
‘‘(2) LIMITATION ON APPLICATION.—The limi-
tations of paragraph (1)(B) shall not apply to any 
small unmanned aerial system that consists of— 
‘‘(A) an unmanned aircraft weighing less 
than 55 pounds on takeoff, including all compo-
nents and equipment on board or otherwise at-
tached to the aircraft; and 
‘‘(B) associated elements (including com-
munication links and the components that con-
trol such aircraft) that are required for the safe 
and efficient operation of such aircraft.’’; 
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(E) in subchapter II, by adding at the end 
the following: 
‘‘§ 578. Role of Vice Commandant in major acquisi-
tion programs 
‘‘The Vice Commandant— 
‘‘(1) shall represent the customer of a major ac-
quisition program with regard to trade-offs made 
among cost, schedule, technical feasibility, and per-
formance with respect to such program; and 
‘‘(2) shall advise the Commandant in decisions 
regarding the balancing of resources against prior-
ities, and associated trade-offs referred to in para-
graph (1), on behalf of the customer of a major ac-
quisition program. 
‘‘§ 579. Extension of major acquisition program con-
tracts 
‘‘(a) 
IN
GENERAL.—Notwithstanding 
section 
564(a)(2) of this title and section 2304 of title 10, and 
subject to subsections (b) and (c) of this section, the Sec-
retary may acquire additional units procured under a 
Coast Guard major acquisition program contract, by ex-
tension of such contract without competition, if the Comp-
troller General of the United States determines that the 
costs that would be saved through award of a new contract 
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in accordance with such sections would not exceed the 
costs of such an award. 
‘‘(b) LIMITATION
ON
NUMBER
OF
ADDITIONAL 
UNITS.—The number of additional units acquired under 
a contract extension under this section may not exceed the 
number of additional units for which such determination 
is made. 
‘‘(c) DETERMINATION OF COSTS UPON REQUEST.— 
The Comptroller General shall, at the request of the Sec-
retary, determine for purposes of this section— 
‘‘(1) the costs that would be saved through 
award of a new major acquisition program contract 
in accordance with section 564(a)(2) for the acquisi-
tion of a number of additional units specified by the 
Secretary; and 
‘‘(2) the costs of such award, including the 
costs that would be incurred due to acquisition 
schedule delays and asset design changes associated 
with such award. 
‘‘(d) NUMBER OF EXTENSIONS.—A contract may be 
extended under this section more than once.’’; and 
(F) in section 581— 
(i) by redesignating paragraphs (7) 
through (10) as paragraphs (9) through 
(12), respectively, and by redesignating 
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paragraphs (3) through (6) as paragraphs 
(4) through (7), respectively; 
(ii) by inserting after paragraph (2) 
the following: 
‘‘(3) CUSTOMER OF A MAJOR ACQUISITION PRO-
GRAM.—The term ‘customer of a major acquisition 
program’ means the operating field unit of the Coast 
Guard that will field the system or systems acquired 
under a major acquisition program.’’; and 
(iii) by inserting after paragraph (7), 
as so redesignated, the following: 
‘‘(8) MAJOR ACQUISITION PROGRAM.—The term 
‘major acquisition program’ means an ongoing ac-
quisition undertaken by the Coast Guard with a life- 
cycle cost estimate greater than or equal to 
$300,000,000.’’. 
(2) CONFORMING AMENDMENT.—Section 569a 
of such title is amended by striking subsection (e). 
(3) CLERICAL AMENDMENT.—The analysis at 
the beginning of such chapter is amended by adding 
at the end of the items relating to subchapter II the 
following: 
‘‘578. Role of Vice Commandant in major acquisition programs. 
‘‘579. Extension of major acquisition program contracts.’’. 
(c) REVIEW REQUIRED.— 
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(1) REQUIREMENT.—The Commandant of the 
Coast Guard shall conduct a review of— 
(A) the authorities provided to the Com-
mandant in chapter 15 of title 14, United 
States Code, and other relevant statutes and 
regulations related to Coast Guard acquisitions, 
including developing recommendations to ensure 
that the Commandant plays an appropriate role 
in the development of requirements, acquisition 
processes, and the associated budget practices; 
(B) implementation of the strategy pre-
pared in accordance with section 562(b)(2) of 
title 14, United States Code, as in effect before 
the enactment of the National Defense Author-
ization Act for Fiscal Year 2017; and 
(C) acquisition policies, directives, and reg-
ulations of the Coast Guard to ensure such poli-
cies, directives, and regulations establish a cus-
tomer-oriented acquisition system. 
(2) REPORT.—Not later than March 1, 2017, 
the Commandant shall submit to the Committee on 
Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report 
containing, at a minimum, the following: 
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(A) The recommendations developed by the 
Commandant under paragraph (1) and other 
results of the review conducted under such 
paragraph. 
(B) The actions the Commandant is tak-
ing, if any, within the Commandant’s existing 
authority to implement such recommendations. 
(3) MODIFICATION OF POLICIES, DIRECTIVES, 
AND REGULATIONS.—Not later than one year after 
the date of the enactment of this Act, the Com-
mandant of the Coast Guard shall modify the acqui-
sition policies, directives, and regulations of the 
Coast Guard as necessary to ensure the development 
and implementation of a customer-oriented acquisi-
tion system, pursuant to the review under paragraph 
(1)(C). 
(d) 
ANALYSIS
OF
USING
MULTIYEAR
CON-
TRACTING.— 
(1) IN GENERAL.—No later than one year after 
the date of the enactment of this Act, the Secretary 
of the department in which the Coast Guard is oper-
ating shall submit to the Committee on Transpor-
tation and Infrastructure of the House of Represent-
atives and the Committee on Commerce, Science, 
and Transportation of the Senate an analysis of the 
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use of multiyear contracting, including procurement 
authority provided under section 2306b of title 10, 
United States Code, and authority similar to that 
granted to the Navy under section 121(b) of the Na-
tional Defense Authorization Act for Fiscal Year 
1998 (Public Law 105–85; 111 Stat. 1648) and sec-
tion 150 of the Continuing Appropriations Act, 2011 
(Public Law 111–242; 124 Stat. 3519), to acquire 
any combination of at least five— 
(A) Fast Response Cutters, beginning with 
hull 43; and 
(B) Offshore Patrol Cutters, beginning 
with hull 5. 
(2) CONTENTS.—The analysis under paragraph 
(1) shall include the costs and benefits of using 
multiyear contracting, the impact of multiyear con-
tracting on delivery timelines, and whether the ac-
quisitions examined would meet the tests for the use 
of multiyear procurement authorities. 
SEC. 836. WAIVER OF CONGRESSIONAL NOTIFICATION FOR 
ACQUISITION OF TACTICAL MISSILES AND 
MUNITIONS GREATER THAN QUANTITY SPEC-
IFIED IN LAW. 
Section 2308(c) of title 10, United States Code, is 
amended— 
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(1) by inserting ‘‘(1)’’ before ‘‘The head’’; 
(2) by inserting ‘‘, except as provided in para-
graph (2),’’ after ‘‘but’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) A notification is not required under paragraph 
(1) if the end item being acquired in a higher quantity 
is an end item under a tactical missile program or a muni-
tion program.’’. 
SEC. 837. CLOSEOUT OF OLD DEPARTMENT OF THE NAVY 
CONTRACTS. 
(a) AUTHORITY.—Notwithstanding any other provi-
sion of law, the Secretary of the Navy may close out the 
contracts described in subsection (b) through the issuance 
of one or more modifications to such contracts without 
completing further reconciliation audits or corrective ac-
tions other than those described in this section. To accom-
plish closeout of such contracts— 
(1) remaining contract balances may be offset 
with balances in other contract line items within a 
contract regardless of the year or type of appropria-
tion obligated to fund each contract line item and 
regardless of whether the appropriations for such 
contract line items have closed; and 
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(2) remaining contract balances may be offset 
with balances on other contracts regardless of the 
year or type of appropriation obligated to fund each 
contract and regardless of whether the appropria-
tions for such contract line item have closed. 
(b) CONTRACTS COVERED.—The contracts covered 
by this section are a group of contracts that are with one 
contractor and identified by the Secretary, each one of 
which is a contract— 
(1) to design, construct, repair, or support the 
construction or repair of Navy submarines that— 
(A) was entered into between fiscal years 
1974 and 1998; and 
(B) has no further supply or services 
deliverables due under the terms and conditions 
of the contract; 
(2) with respect to which the Secretary of the 
Navy has established the total final contract value; 
and 
(3) with respect to which the Secretary of the 
Navy has determined that the final allowable cost 
may have a negative or positive unliquidated obliga-
tion balance for which it would be difficult to deter-
mine the year or type of appropriation because— 
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(A) the records for the contract have been 
destroyed or lost; or 
(B) the records for the contract are avail-
able but the contracting officer, in collaboration 
with the certifying official, has determined that 
a discrepancy is of such a minimal value that 
the time and effort required to determine the 
cause of an out-of-balance condition is dis-
proportionate to the amount of the discrepancy. 
(c) CLOSEOUT.—The contracts described in sub-
section (b) may be closed out— 
(1) upon receipt of $581,803 from the con-
tractor, to be deposited into the Treasury as mis-
cellaneous receipts; and 
(2) without seeking further amounts from the 
contractor, and without payment to the contractor of 
any amounts that may be due under such contracts. 
(d) ADJUSTMENT
AND CLOSURE
OF RECORDS.— 
After closeout of any contract described in subsection (b) 
using the authority of this section, the payment or ac-
counting offices concerned may adjust and close any open 
finance and accounting records relating to the contract. 
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SEC. 838. REQUIREMENT THAT CERTAIN SHIP COMPO-
NENTS 
BE 
MANUFACTURED 
IN 
THE 
NA-
TIONAL 
TECHNOLOGY 
AND 
INDUSTRIAL 
BASE. 
(a) ADDITIONAL PROCUREMENT LIMITATION.—Sec-
tion 2534(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
‘‘(6) COMPONENTS
FOR
AUXILIARY
SHIPS.— 
Subject to subsection (k), the following components: 
‘‘(A) 
Auxiliary 
equipment, 
including 
pumps, for all shipboard services. 
‘‘(B) Propulsion system components, in-
cluding engines, reduction gears, and propellers. 
‘‘(C) Shipboard cranes. 
‘‘(D) Spreaders for shipboard cranes.’’. 
(b) IMPLEMENTATION.—Such section is further 
amended by adding at the end the following new sub-
section: 
‘‘(k) IMPLEMENTATION OF AUXILIARY SHIP COMPO-
NENT LIMITATION.—Subsection (a)(6) applies only with 
respect to contracts awarded by the Secretary of a military 
department for new construction of an auxiliary ship after 
the date of the enactment of the National Defense Author-
ization Act for Fiscal Year 2017 using funds available for 
National Defense Sealift Fund programs or Shipbuilding 
and Conversion, Navy.’’. 
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SEC. 839. DEPARTMENT OF DEFENSE ACQUISITION WORK-
FORCE DEVELOPMENT FUND DETERMINA-
TION ADJUSTMENT. 
Subsection (d)(2)(D) of section 1705 of title 10, 
United States Code, is amended by inserting after 
‘‘$400,000,000’’ the following: ‘‘except that, in the case 
of fiscal year 2017, the Secretary may reduce the amount 
to $0’’. 
SEC. 840. AMENDMENT TO PROHIBITION ON PERFORM-
ANCE OF NON-DEFENSE AUDITS BY DEFENSE 
CONTRACT AUDIT AGENCY TO EXEMPT AU-
DITS FOR NATIONAL NUCLEAR SECURITY AD-
MINISTRATION. 
Section 893(a) of the National Defense Authorization 
Act for Fiscal Year 2016 (Public Law 114–92; Stat. 952) 
is amended— 
(1) in paragraph (1), by striking ‘‘Effective’’ 
and inserting ‘‘Except as provided in paragraph (3), 
effective’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(3) EXCEPTION.—In this subsection, the term 
‘non-Defense Agencies’ does not include the National 
Nuclear Security Administration.’’. 
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SEC. 841. SELECTION OF SERVICE PROVIDERS FOR AUDIT-
ING SERVICES AND AUDIT READINESS SERV-
ICES. 
The Department of Defense shall select service pro-
viders for auditing services and audit readiness services 
based on the best value to the Department, as determined 
by the resource sponsor for an auditing contract, rather 
than based on the lowest price technically acceptable serv-
ice provider. 
SEC. 842. MODIFICATIONS TO THE JUSTIFICATION AND AP-
PROVAL 
PROCESS 
FOR 
CERTAIN 
SOLE- 
SOURCE CONTRACTS FOR SMALL BUSINESS 
CONCERNS. 
(a) REPEAL OF SIMPLIFIED JUSTIFICATION AND AP-
PROVAL PROCESS.—Section 811 of the National Defense 
Authorization Act for Fiscal Year 2010 (Public Law 111– 
84; 123 Stat. 2405; 41 U.S.C. 3304 note) is repealed. 
(b) REQUIREMENTS FOR JUSTIFICATION AND AP-
PROVAL PROCESS.— 
(1) 
DEFENSE
PROCUREMENTS.—Section 
2304(f)(2)(D)(ii) of title 10, United States Code, is 
amended by inserting ‘‘only if such procurement is 
for property or services in an amount less than 
$20,000,000’’ before the semicolon at the end. 
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(2) 
CIVILIAN
PROCUREMENTS.—Section 
3304(e)(4) of title 41, United States Code, is 
amended— 
(A) in subparagraph (C), by striking ‘‘or’’ 
at the end; 
(B) in subparagraph (D), by striking ‘‘or 
section 8(a) of the Small Business Act (15 
U.S.C. 637(a)).’’ and inserting ‘‘; or’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(E) the procurement is for property or 
services in an amount less than $20,000,000 
and is conducted under section 8(a) of the 
Small Business Act (15 U.S.C. 637(a)).’’. 
SEC. 843. BRIEFING ON DESIGN-BUILD CONSTRUCTION 
PROCESS FOR DEFENSE CONTRACTS. 
Not later than February 1, 2017, the Secretary of 
Defense shall provide to the Committee on Armed Services 
of the House of Representatives a briefing on the use and 
implementation of the two-phase design-build selection 
procedures. The briefing shall address the following: 
(1) How the Department of Defense continues 
to implement the updates to the Federal Acquisition 
Regulation that implemented the 2015 amendments 
to section 2305a, title 10, United States Code. 
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(2) A list of instances in which the Department 
awarded a design-build contract pursuant to section 
2305a of title 10, United States Code, that had 
more than five finalists for phase-two requests for 
proposals during fiscal year 2016, and the list of de-
sign-build requests for proposals that used a one- 
step process. 
(3) Any feedback the Department has received 
from industry. 
(4) Any challenges to the implementation of the 
statute. 
(5) Any additional criteria identified by the 
Secretary. 
SEC. 844. ASSESSMENT OF OUTREACH FOR SMALL BUSI-
NESS CONCERNS OWNED AND CONTROLLED 
BY WOMEN AND MINORITIES REQUIRED BE-
FORE CONVERSION OF CERTAIN FUNCTIONS 
TO CONTRACTOR PERFORMANCE. 
No Department of Defense function that is per-
formed by Department of Defense civilian employees and 
is tied to a certain military base may be converted to per-
formance by a contractor until the Secretary of Defense 
conducts an assessment to determine if the Department 
of Defense has carried out sufficient outreach programs 
to assist small business concerns owned and controlled by 
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women (as such term is defined in section 8(d)(3)(D) of 
the Small Business Act (15 U.S.C. 637(d)(3)(D))) and 
small business concerns owned and controlled by socially 
and economically disadvantaged individuals (as such term 
is defined in section 8(d)(3)(C) of the Small Business Act 
(15 U.S.C. 637(d)(3)(C))) that are located in the geo-
graphic area near the military base. 
SEC. 845. INCLUSION OF INFORMATION ON COMMON 
GROUNDS FOR SUSTAINING BID PROTESTS IN 
ANNUAL GOVERNMENT ACCOUNTABILITY OF-
FICE REPORTS TO CONGRESS. 
The Comptroller General of the United States shall 
include in the annual report to Congress on the Govern-
ment Accountability Office each year a list of the most 
common grounds for sustaining protests relating to bids 
for contracts during such year. 
SEC. 846. REVISION OF EFFECTIVE DATE FOR AMEND-
MENTS RELATING TO UNDER SECRETARY OF 
DEFENSE FOR BUSINESS MANAGEMENT AND 
INFORMATION. 
Section 901(a)(1) of the Carl Levin and Howard P. 
‘‘Buck’’ Mckeon National Defense Authorization Act for 
Fiscal Year 2015 (Public Law 113–291; 128 Stat. 3462; 
10 U.S.C. 132a note) is amended by striking ‘‘February 
1, 2017’’ and inserting ‘‘February 1, 2018’’. 
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SEC. 847. PROMOTION OF VALUE-BASED DEFENSE PRO-
CUREMENT. 
(a) STATEMENT OF POLICY.—It shall be the policy 
of the Department of Defense to avoid using lowest price 
technically acceptable source selection criteria in inappro-
priate circumstances that potentially deny the Department 
the benefits of cost and technical tradeoffs in the source 
selection process. 
(b) REQUIREMENT FOR SOLICITATIONS.—For new 
solicitations issued on or after the date that is 120 days 
after the date of the enactment of this Act, lowest price 
technically acceptable source selection criteria shall be 
used only in situations in which— 
(1) the Department of Defense is able to com-
prehensively and clearly describe the minimum re-
quirements expressed in term of performance objec-
tives, measures, and standards that will be used to 
determine acceptability of offers; 
(2) the Department would realize no, or mini-
mal, value from a contract proposal exceeding the 
minimum technical or performance requirements set 
forth in the request for proposal; 
(3) the proposed technical approaches will re-
quire no, or minimal, subjective judgment by the 
source selection authority as to the desirability of 
one offeror’s proposal versus a competing proposal; 
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(4) a review of technical proposals of offerors 
other than the lowest bidder would result in no, or 
minimal, benefit to the Department; and 
(5) the contracting officer has included a jus-
tification for the use of a lowest price technically ac-
ceptable evaluation methodology in the contract file, 
if the contract to be awarded is predominately for 
the acquisition of information technology services, 
systems engineering and technical assistance serv-
ices, or other knowledge-based professional services. 
(c) AVOIDANCE OF USE OF LOWEST PRICE TECH-
NICALLY ACCEPTABLE SOURCE SELECTION CRITERIA IN 
PROCUREMENTS
OF INFORMATION TECHNOLOGY
AND 
AUDITING.—To the maximum extent practicable, the use 
of lowest price technically acceptable source selection cri-
teria shall be avoided when the procurement is predomi-
nately for the acquisition of information technology serv-
ices, systems engineering and technical assistance services, 
audit or audit readiness services, or other knowledge-based 
professional services. 
(d) REPORTING.—Not later than 180 days after the 
date of the enactment of this Act, and annually thereafter 
for 3 years, the Secretary of Defense shall submit to the 
congressional defense committees a report on the number 
of instances in which lowest-price technically acceptable 
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source selection criteria is used, including an explanation 
of how the criteria was considered when making a deter-
mination to use lowest price technically acceptable source 
selection criteria. 
SEC. 848. STUDY AND REPORT ON CONTRACTS AWARDED 
TO MINORITY-OWNED AND WOMEN-OWNED 
BUSINESSES. 
(a) STUDY.—The Comptroller General of the United 
States shall carry out a study on the number and types 
of contracts for the procurement of goods or services for 
the Department of Defense awarded to minority-owned 
and women-owned businesses during fiscal years 2010 
through 2015. In conducting the study, the Comptroller 
General shall identify minority-owned businesses accord-
ing to the categories identified in the Federal procurement 
data system (described in section 1122(a)(4)(A) of title 
41, United States Code). 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Comptroller General shall 
submit to the congressional defense committees a report 
on the results of the study under subsection (a). 
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TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—Goldwater-Nichols 
Reform 
SEC. 901. SENSE OF CONGRESS ON GOLDWATER-NICHOLS 
REFORM. 
It is the sense of Congress that the following prin-
ciples should be adhered to in any reform of the Gold-
water-Nichols Department of Defense Reorganization Act 
of 1986: 
(1) Civilian control of the military and the civil-
ian chain of command must be preserved. 
(2) The role of the Chairman of the Joint 
Chiefs of Staff in providing independent military ad-
vice, as the principal military advisor to the Presi-
dent and the Secretary of Defense, must be pre-
served. 
(3) Any changes to the Goldwater-Nichols Act 
of 1986 should be rooted in a clear identification 
and understanding of the issues and the objectives 
and ramifications of any changes. 
(4) Any changes to the Goldwater-Nichols Act 
of 1986 should enhance the capabilities of the 
United States Armed Forces. 
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(5) Each Geographical Unified Command has 
its own distinct area of emphasis and expertise, as 
well as requirements and responsibilities. Combining 
Northern Command and Southern Command, or 
combining European Command and Africa Com-
mand, would severely degrade mission effectiveness, 
but would provide only marginal increased efficiency. 
Additionally, consolidating Geographic Unified Com-
mands would cause unacceptable risk to both global 
strategic influence as well as regional capability, and 
would exacerbate already significant capacity chal-
lenges. 
(6) The emphasis on strategy and planning in 
the Goldwater-Nichols Act must be sustained. 
(7) Complex security challenges will become in-
creasingly transregional, multi-domain, and multi- 
functional. 
(8) Therefore, the Department of Defense, in-
cluding streamlined headquarters staffs, must be 
more agile and adaptive. 
SEC. 902. REPEAL OF DEFENSE STRATEGY REVIEW. 
(a) REPEAL.—Section 118 of title 10, United States 
Code, is repealed. 
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(1) by striking ‘‘BIENNIAL’’ and all that follows 
through ‘‘the Secretary of Defense’’ and inserting 
‘‘ANNUAL REPORT REQUIRED.—Not later than Jan-
uary 31 of each year through January 31, 2021, the 
Secretary of Defense’’; 
(2) by striking ‘‘congressional defense commit-
tees’’ and inserting ‘‘appropriate congressional com-
mittees’’; 
(3) by striking ‘‘security assistance’’ and insert-
ing ‘‘assistance’’; and 
(4) by striking ‘‘the two fiscal years’’ and in-
serting ‘‘the fiscal year’’. 
(b) ELEMENTS OF REPORT.—Subsection (b) of such 
section is amended— 
(1) in paragraph (1), by inserting ‘‘, duration,’’ 
after ‘‘purpose’’; 
(2) in paragraph (2), by striking ‘‘The cost’’ 
and inserting ‘‘The cost and expenditures’’; 
(3) by adding at the end the following: 
‘‘(4) For each foreign country in which the 
training, equipment, or other assistance or reim-
bursement was provided, a description of the extent 
of participation, if any, by the military forces and 
security forces or other government organizations of 
such foreign country. 
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92; 129 Stat. 1043), is further amended by striking ‘‘fiscal 
year 2016’’ and inserting ‘‘the period beginning on Octo-
ber 1, 2016, and ending on December 31, 2017,’’. 
(b) LIMITATION
ON AMOUNTS AVAILABLE.—Sub-
section (d)(1) of such section, as so amended, is further 
amended— 
(1) in the second sentence, by striking ‘‘during 
fiscal year 2016 may not exceed $1,160,000,000’’ 
and inserting ‘‘during the period beginning on Octo-
ber 1, 2016, and ending on December 31, 2017, 
may not exceed $1,100,000,000’’; and 
(2) in the third sentence, by striking ‘‘fiscal 
year 2016’’ and inserting ‘‘the period beginning on 
October 1, 2016, and ending on December 31, 
2017,’’. 
(c) EXTENSION OF NOTICE REQUIREMENT RELAT-
ING TO REIMBURSEMENT OF PAKISTAN FOR SUPPORT 
PROVIDED BY PAKISTAN.—Section 1232(b)(6) of the Na-
tional Defense Authorization Act for Fiscal Year 2008 
(122 Stat. 393), as most recently amended by section 
1212(c) of the National Defense Authorization Act for 
Fiscal Year 2016 (129 Stat. 1043), is further amended 
by striking ‘‘September 30, 2016’’ and inserting ‘‘Decem-
ber 31, 2017’’. 
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(16) The President has the statutory, legal au-
thority to strike the Taliban and the Haqqani Net-
work. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) the President should authorize at least 
9,800 United States troops to continue the train, 
advise, and assist and counterterrorism missions in 
Afghanistan after 2016; 
(2) the President should provide the United 
States commander in Afghanistan with the authority 
to unilaterally strike the Taliban and the Haqqani 
Network; 
(3) the President should provide additional re-
sources to strike the Islamic State of Iraq and the 
Levant (ISIL) in Afghanistan; 
(4) the President should provide the United 
States commander in Afghanistan the authority to 
conduct the train, advise, and assist mission below 
the corps level of the Afghan National Defense and 
Security Forces (ANDSF); 
(5) the United States should provide United 
States Armed Forces lift and close air support to 
ANDSF units until the ANDSF has a fully capable, 
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