Officer of each military department, the Director of the 
Office of Performance Assessment and Root Cause Anal-
ysis, the Under Secretary of Defense (Comptroller), and 
the Comptrollers of the military departments, shall con-
duct a comprehensive review of the use and value of obli-
gation and expenditure benchmarks and propose new 
benchmarks or processes for tracking financial perform-
ance, including, as appropriate— 
(1) increased reliance on individual obligation 
and expenditure plans for measuring program finan-
cial performance; 
(2) mechanisms to improve funding stability 
and to increase the predictability of the release of 
funding for obligation and expenditure; and 
(3) streamlined mechanisms for a program 
manager to submit an appeal for funding changes 
and to have such appeal evaluated promptly. 
(d) TRAINING.—The Under Secretary of Defense for 
Acquisition, Technology, and Logistics and the Under Sec-
retary of Defense (Comptroller) shall ensure that as part 
of the training required for program managers and busi-
ness managers, an emphasis is placed on obligating and 
expending appropriated funds in a manner that achieves 
the best value for the Government and that the purpose
and limitations of obligation and expenditure benchmarks 
are made clear. 
SEC. 304. DISCLOSURE AND TRACEABILITY OF THE COST 
OF DEPARTMENT OF DEFENSE HEALTH CARE 
CONTRACTS. 
(a) DISCLOSURE REQUIREMENT.—The Secretary of 
Defense shall require— 
(1) an offeror that submits a bid or proposal in 
response to an invitation for bids or a request for 
proposals issued by a component of the Department 
of Defense for a health care contract to submit with 
the bid or proposal a disclosure of the additional 
cost, if any, contained in such bid or proposal associ-
ated with compliance with the Patient Protection 
and Affordable Care Act (Public Law 111–148) and 
the Health Care and Education Reconciliation Act of 
2010 (Public Law 111–152); and 
(2) a contractor for a health care contract 
awarded following the date of the enactment of this 
Act to disclose on an annual basis the additional 
cost, if any, incurred for such contract associated 
with compliance with the Patient Protection and Af-
fordable Care Act (Public Law 111–148) and the 
Health Care and Education Reconciliation Act of 
2010 (Public Law 111–152).
(b) REPORT.— 
(1) REQUIREMENT.—Not later than April 1, 
2011, and each April 1st thereafter until April 1, 
2016, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Rep-
resentatives a detailed report on the additional cost 
to the Department of Defense associated with com-
pliance with the Patient Protection and Affordable 
Care Act (Public Law 111–148) and the Health 
Care and Education Reconciliation Act of 2010 
(Public Law 111–152). 
(2) MATTERS COVERED.—The report required 
by paragraph (1) shall include— 
(A) the projected costs of compliance for 
all health care contracts awarded during the 
preceding year, as disclosed in a bid or proposal 
in accordance with subsection (a)(1); 
(B) for all other health care contracts, the 
incurred cost of compliance for the preceding 
year, as disclosed in accordance with subsection 
(a)(2); and 
(C) any additional costs to the Department 
of Defense necessary to comply with such Acts.
(c) HEALTH CARE CONTRACT DEFINED.—In this 
section, the term ‘‘health care contract’’ means a contract 
in an amount greater than the simplified acquisition 
threshold for the acquisition of any of the following: 
(1) Medical supplies. 
(2) Health care services and administration, in-
cluding the services of medical personnel. 
(3) Durable medical equipment. 
(4) Pharmaceuticals. 
(5) Health care-related information technology. 
TITLE IV—INDUSTRIAL BASE 
SEC. 401. EXPANSION OF THE INDUSTRIAL BASE. 
(a) PROGRAM TO EXPAND INDUSTRIAL BASE RE-
QUIRED.—The Secretary of Defense shall establish a pro-
gram to expand the industrial base of the Department of 
Defense to increase the Department’s access to innovation 
and the benefits of competition. The program shall be lim-
ited to firms within the national technology and industrial 
base (as defined in section 2500(1) of title 10, United 
States Code). 
(b) IDENTIFYING AND COMMUNICATING WITH NON-
TRADITIONAL
SUPPLIERS.—The program established 
under subsection (a) shall use tools and resources available 
within the Federal Government and available from the pri-
vate sector, to provide a capability for identifying and