H. R. 5515—218 
2329(b) of title 10, United States Code, are met, the Under Secretary 
of Defense for Acquisition and Sustainment shall brief the congres-
sional defense committees on the progress of Department of Defense 
efforts to meet the requirements of such section, including relevant 
information on the methodology and implementation plans for 
future compliance. 
SEC. 819. DATA COLLECTION AND INVENTORY FOR SERVICES CON-
TRACTS. 
Section 2330a of title 10, United States Code, is amended 
in subsection (c)(1)— 
(1) by inserting ‘‘and contracts closely associated with 
inherently governmental functions’’ after ‘‘staff augmentation 
contracts’’; and 
(2) by striking ‘‘Under Secretary of Defense for Acquisition, 
Technology, and Logistics’’ each place it appears and inserting 
‘‘Under Secretary of Defense for Acquisition and Sustainment’’. 
SEC. 820. REPORT ON CLARIFICATION OF SERVICES CONTRACTING 
DEFINITIONS. 
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 clarifying the definitions of and rela-
tionships between terms used by the Department of Defense related 
to services contracting, including the appropriate use of personal 
services contracts and nonpersonal services contracts, and the 
responsibilities of individuals in the acquisition workforce with 
respect to such contracts. 
SEC. 821. INCREASE IN MICRO-PURCHASE THRESHOLD APPLICABLE 
TO DEPARTMENT OF DEFENSE. 
(a) IN GENERAL.—Section 2338 of title 10, United States Code, 
is amended by striking ‘‘Notwithstanding subsection (a) of section 
1902 of title 41, the micro-purchase threshold for the Department 
of Defense for purposes of such section is $5,000’’ and inserting 
‘‘The micro-purchase threshold for the Department of Defense is 
$10,000’’. 
(b) CONFORMING AMENDMENT.—Section 1902(a)(1) of title 41, 
United States Code, is amended by striking ‘‘sections 2338 and 
2339 of title 10 and’’. 
(c) REPEAL OF OBSOLETE AUTHORITY.— 
(1) IN GENERAL.—Section 2339 of title 10, United States 
Code, is repealed. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 137 of title 10, United States Code, is 
amended by striking the item relating to section 2339. 
SEC. 822. DEPARTMENT OF DEFENSE CONTRACTING DISPUTE MAT-
TERS. 
(a) IN GENERAL.—Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall carry 
out a study of the frequency and effects of bid protests involving 
the same contract award or proposed award that have been filed 
at both the Government Accountability Office and the United States 
Court of Federal Claims. The study shall cover Department of 
Defense contracts and include, at a minimum— 
(1) the number of protests that have been filed with both 
tribunals and results;
H. R. 5515—219 
(2) the number of such protests where the tribunals differed 
in denying or sustaining the action; 
(3) the length of time, in average time and median time— 
(A) from initial filing at the Government Accountability 
Office to decision in the United States Court of Federal 
Claims; 
(B) from filing with each tribunal to decision by such 
tribunal; 
(C) from the time at which the basis of the protest 
is known to the time of filing in each tribunal; and 
(D) in the case of an appeal from a decision of the 
United States Court of Federal Claims, from the date of 
the initial filing of the appeal to decision in the appeal; 
(4) the number of protests where performance was stayed 
or enjoined and for how long; 
(5) if performance was stayed or enjoined, whether the 
requirement was obtained in the interim through another 
vehicle or in-house, or whether during the period of the stay 
or enjoining the requirement went unfulfilled; 
(6) separately for each tribunal, the number of protests 
where performance was stayed or enjoined and monetary dam-
ages were awarded, which shall include for how long perform-
ance was stayed or enjoined and the amount of monetary dam-
ages; 
(7) whether the protestor was a large or small business; 
and 
(8) whether the protestor was the incumbent in a prior 
contract for the same or similar product or service. 
(b) 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, the Committee on the 
Judiciary of the Senate, and the Committee on the Judiciary of 
the House of Representatives a report on the results of the study, 
along with related recommendations for improving the expediency 
of the bid protest process. In preparing the report, the Secretary 
shall consult with the Attorney General of the United States, the 
Comptroller General of the United States, and the United States 
Court of Federal Claims. 
(c) ONGOING DATA COLLECTION.—Not later than 270 days after 
the date of the enactment of this Act, the Secretary of Defense 
shall establish and continuously maintain a data repository to col-
lect on an ongoing basis the information described in subsection 
(a) and any additional relevant bid protest data the Secretary 
determines necessary and appropriate to allow the Department 
of Defense, the Government Accountability Office, and the United 
States Court of Federal Claims to assess and review bid protests 
over time. 
(d) ESTABLISHMENT OF EXPEDITED PROCESS FOR SMALL VALUE 
CONTRACTS.— 
(1) IN GENERAL.—Not later than December 1, 2019, the 
Secretary of Defense shall develop a plan and schedule for 
an expedited bid protest process for Department of Defense 
contracts with a value of less than $100,000. 
(2) CONSULTATION.—In carrying out paragraph (1), the Sec-
retary of Defense may consult with the Government Account-
ability Office and the United States Court of Federal Claims
H. R. 5515—220 
to the extent such entities may establish a similar process 
at their election. 
(3) REPORT.—Not later than May 1, 2019, the Secretary 
of Defense shall submit to the congressional defense committees 
a report on the plan and schedule for implementation of the 
expedited bid protest process, which shall include a request 
for any additional authorities the Secretary determines appro-
priate for such efforts. 
SEC. 823. INCLUSION OF BEST AVAILABLE INFORMATION REGARDING 
PAST PERFORMANCE OF SUBCONTRACTORS AND JOINT 
VENTURE PARTNERS. 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense, in consultation with the Federal 
Acquisition Regulatory Council and the Administrator for Federal 
Procurement Policy, shall develop policies for the Department of 
Defense to ensure the best information regarding past performance 
of certain subcontractors and joint venture partners is available 
when awarding Department of Defense contracts. The policies shall 
include proposed revisions to the Defense Federal Acquisition Regu-
lation Supplement as follows: 
(1) Required performance evaluations, as part of a govern-
ment-wide evaluation reporting tool, for first-tier subcontractors 
on construction and architect-engineer contracts performing a 
portion of the contract valued at the threshold set forth in 
section 42.1502(e) of the Federal Acquisition Regulation, or 
20 percent of the value of the prime contract, whichever is 
higher, provided— 
(A) the information included in rating the subcon-
tractor is not inconsistent with the information included 
in the rating for the prime contractor; 
(B) the subcontractor evaluation is conducted con-
sistent with the provisions of section 42.15 of the Federal 
Acquisition Regulation; 
(C) negative evaluations of a subcontractor in no way 
obviate the prime contractor’s responsibility for successful 
completion of the contract and management of its sub-
contractors; and 
(D) that in the judgment of the contracting officer, 
the overall execution of the work is impacted by the 
performance of the subcontractor or subcontractors. 
(2) Required performance evaluations, as part of a govern-
ment-wide evaluation reporting tool, of individual partners of 
joint venture-awarded construction and architect-engineer con-
tracts valued at the threshold set forth in section 42.1502(e) 
of the Federal Acquisition Regulation, to ensure that past 
performance on joint venture projects is considered in future 
awards to individual joint venture partners, provided— 
(A) at a minimum, the rating for joint ventures includes 
an identification that allows the evaluation to be retrieved 
for each partner of the joint venture; 
(B) each partner, through the joint venture, is given 
the same opportunity to submit comments, rebutting state-
ments, or additional information, consistent with the provi-
sions of section 42.15 of the Federal Acquisition Regulation; 
and
H. R. 5515—221 
(C) the rating clearly identifies the responsibilities of 
joint venture partners for discrete elements of the work 
where the partners are not jointly and severally responsible 
for the project. 
(3) Processes to request exceptions from the annual evalua-
tion requirement under section 42.1502(a) of the Federal 
Acquisition Regulation for construction and architect-engineer 
contracts where submission of the annual evaluations would 
not provide the best representation of the performance of a 
contractor, including subcontractors and joint venture partners, 
including— 
(A) where no severable element of the work has been 
completed; 
(B) where the contracting officer determines that— 
(i) an insubstantial portion of the contract work 
has been completed in the preceding year; and 
(ii) the lack of performance is at no fault to the 
contractor; or 
(C) where the contracting officer determines that there 
is an issue in dispute which, until resolved, would likely 
cause the annual rating to inaccurately reflect the past 
performance of the contractor. 
SEC. 824. SUBCONTRACTING PRICE AND APPROVED PURCHASING SYS-
TEMS. 
(a) AMENDMENT.—Section 893 of the Ike Skelton National 
Defense Authorization Act for Fiscal Year 2011 (Public Law 111– 
383; 10 U.S.C. 2302 note) is amended— 
(1) in subsection (g), by adding at the end the following 
new paragraph: 
‘‘(5) The term ‘approved purchasing system’ has the 
meaning given the term in section 44.101 of the Federal 
Acquisition Regulation (or any similar regulation).’’; and 
(2) by adding at the end the following new subsection: 
‘‘(i) CONSENT TO SUBCONTRACT.—If the contractor on a Depart-
ment of Defense contract requiring a contracting officer’s written 
consent prior to the contractor entering into a subcontract has 
an approved purchasing system, the contracting officer may not 
withhold such consent without the written approval of the program 
manager.’’. 
(b) CONFORMING REGULATIONS.—Not later than 120 days after 
the date of the enactment of this Act, the Secretary of Defense 
shall revise the Defense Federal Acquisition Regulation Supplement 
to conform with the amendments to section 893 of the Ike Skelton 
National Defense Authorization Act for Fiscal Year 2011 (Public 
Law 111–383; 10 U.S.C. 2302 note) made by this section. 
SEC. 825. MODIFICATION OF CRITERIA FOR WAIVERS OF REQUIRE-
MENT FOR CERTIFIED COST AND PRICE DATA. 
Section 817(b)(2) of the Bob Stump National Defense Authoriza-
tion Act for Fiscal Year 2003 (Public Law 107–314; 10 U.S.C. 
2306a note) is amended by striking ‘‘; and’’ and inserting ‘‘; or’’.
H. R. 5515—222 
Subtitle C—Provisions Relating to Major 
Defense Acquisition Programs 
SEC. 831. REVISIONS IN AUTHORITY RELATING TO PROGRAM COST 
TARGETS AND FIELDING TARGETS FOR MAJOR DEFENSE 
ACQUISITION PROGRAMS. 
(a) REVISIONS IN AUTHORITY RELATING TO PROGRAM COST AND 
FIELDING TARGETS.—Section 2448a of title 10, United States Code, 
is amended— 
(1) in subsection (a), by striking ‘‘Secretary of Defense’’ 
and inserting ‘‘designated milestone decision authority for the 
program’’; 
(2) by striking ‘‘the milestone decision authority for the 
major defense acquisition program approves a program that’’ 
and inserting ‘‘the program’’; 
(3) by striking subsection (b); and 
(4) by redesignating subsection (c) as subsection (b). 
(b) CONFORMING AMENDMENTS.— 
(1) Section 181(b) of title 10, United States Code, is 
amended— 
(A) by striking paragraph (3); and 
(B) by redesignating paragraphs (4), (5), (6), and (7) 
as paragraphs (3), (4), (5), and (6), respectively. 
(2) Section 2366a(c)(1)(A) of such title is amended by 
striking ‘‘by the Secretary of Defense’’. 
(3) Section 2366b of such title is amended— 
(A) in subsection (a)(3)(D), by striking ‘‘Secretary of 
Defense after a request for such increase or delay by the’’; 
and 
(B) in subsection (c)(1)(A), by striking ‘‘by the Secretary 
of Defense’’. 
(4) Section 925(b)(1) of the National Defense Authorization 
Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2361; 
10 U.S.C. 2448a note) is amended by striking ‘‘Deputy Secretary 
of Defense and the Vice Chairman of the Joint Chiefs of Staff’’ 
and inserting ‘‘designated milestone decision authority for the 
major defense acquisition program and the Vice Chief of Staff 
of the armed force concerned or, in the case of a program 
for which an alternate milestone decision authority is des-
ignated under section 2430(d)(2) of such title, the Vice Chair-
man of the Joint Chiefs of Staff’’. 
SEC. 832. IMPLEMENTATION OF RECOMMENDATIONS OF THE INDE-
PENDENT STUDY ON CONSIDERATION OF SUSTAINMENT 
IN WEAPONS SYSTEMS LIFE CYCLE. 
(a) IMPLEMENTATION REQUIRED.—Not later than 18 months 
after the date of the enactment of this Act, the Secretary of Defense 
shall, except as provided under subsection (b), commence 
implementation of each recommendation submitted as part of the 
independent assessment produced under section 844 of the National 
Defense Authorization Act for Fiscal Year 2017 (Public Law 114– 
328; 130 Stat. 2290). 
(b) EXCEPTIONS.— 
(1) DELAYED IMPLEMENTATION.—The Secretary of Defense 
may commence implementation of a recommendation described 
under subsection (a) later than the date required under such
H. R. 5515—224 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by inserting after the item relating 
to section 2229a the following new item: 
‘‘2229b. Comptroller General assessment of acquisition programs and related initia-
tives.’’. 
(c) REPEAL OF SUPERSEDED AUTHORITY.—Section 883(d) of the 
National Defense Authorization Act for Fiscal Year 2016 (Public 
Law 114–92; 10 U.S.C. 2222 note) is amended by striking paragraph 
(1), effective on January 1, 2020. 
Subtitle D—Provisions Relating to 
Commercial Items 
SEC. 836. REVISION OF DEFINITION OF COMMERCIAL ITEM FOR PUR-
POSES OF FEDERAL ACQUISITION STATUTES. 
(a) DEFINITIONS IN CHAPTER 1 OF TITLE 41, UNITED STATES 
CODE.— 
(1) SEPARATION OF ‘‘COMMERCIAL ITEM’’ DEFINITION INTO 
DEFINITIONS
OF ‘‘COMMERCIAL
PRODUCT’’ AND ‘‘COMMERCIAL 
SERVICE’’.—Chapter 1 of title 41, United States Code, is 
amended by striking section 103 and inserting the following 
new sections: 
‘‘§ 103. Commercial product 
‘‘In this subtitle, the term ‘commercial product’ means any 
of the following: 
‘‘(1) A product, other than real property, that— 
‘‘(A) is of a type customarily used by the general public 
or by nongovernmental entities for purposes other than 
governmental purposes; and 
‘‘(B) has been sold, leased, or licensed, or offered for 
sale, lease, or license, to the general public. 
‘‘(2) A product that— 
‘‘(A) evolved from a product described in paragraph 
(1) through advances in technology or performance; and 
‘‘(B) is not yet available in the commercial marketplace 
but will be available in the commercial marketplace in 
time to satisfy the delivery requirements under a Federal 
Government solicitation. 
‘‘(3) A product that would satisfy the criteria in paragraph 
(1) or (2) were it not for— 
‘‘(A) modifications of a type customarily available in 
the commercial marketplace; or 
‘‘(B) minor modifications made to meet Federal Govern-
ment requirements. 
‘‘(4) Any combination of products meeting the requirements 
of paragraph (1), (2), or (3) that are of a type customarily 
combined and sold in combination to the general public. 
‘‘(5) A product, or combination of products, referred to 
in paragraphs (1) through (4), even though the product, or 
combination of products, is transferred between or among sepa-
rate divisions, subsidiaries, or affiliates of a contractor. 
‘‘(6) A nondevelopmental item if the procuring agency deter-
mines, in accordance with conditions in the Federal Acquisition 
Regulation, that—
H. R. 5515—225 
‘‘(A) the product was developed exclusively at private 
expense; and 
‘‘(B) has been sold in substantial quantities, on a 
competitive basis, to multiple State and local governments 
or to multiple foreign governments. 
‘‘§ 103a. Commercial service 
‘‘In this subtitle, the term ‘commercial service’ means any of 
the following: 
‘‘(1) Installation services, maintenance services, repair serv-
ices, training services, and other services if— 
‘‘(A) those services are procured for support of a 
commercial product, regardless of whether the services are 
provided by the same source or at the same time as the 
commercial product; and 
‘‘(B) the source of the services provides similar services 
contemporaneously to the general public under terms and 
conditions similar to those offered to the Federal Govern-
ment; 
‘‘(2) Services of a type offered and sold competitively, in 
substantial quantities, in the commercial marketplace— 
‘‘(A) based on established catalog or market prices; 
‘‘(B) for specific tasks performed or specific outcomes 
to be achieved; and 
‘‘(C) under standard commercial terms and conditions. 
‘‘(3) A service described in paragraph (1) or (2), even though 
the service is transferred between or among separate divisions, 
subsidiaries, or affiliates of a contractor.’’. 
(2) CONFORMING AMENDMENTS TO TITLE 41 DEFINITIONS.— 
(A) DEFINITION OF COMMERCIAL COMPONENT.—Section 
102 of such title is amended by striking ‘‘commercial item’’ 
and inserting ‘‘commercial product’’. 
(B) DEFINITION OF COMMERCIALLY AVAILABLE OFF-THE- 
SHELF
ITEM.—Section 104(1)(A) is amended by striking 
‘‘commercial item’’ and inserting ‘‘commercial product’’. 
(C) DEFINITION OF NONDEVELOPMENTAL ITEM.—Section 
110(1) of such title is amended by striking ‘‘commercial 
item’’ and inserting ‘‘commercial product’’. 
(3) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 1 of title 41, United States Code, is 
amended by striking the item relating to section 103 and 
inserting the following new items: 
‘‘103. Commercial product. 
‘‘103a. Commercial service.’’. 
(b) CONFORMING AMENDMENTS TO OTHER PROVISIONS OF TITLE 
41, UNITED STATES CODE.—Title 41, United States Code, is further 
amended as follows: 
(1) Section 1502(b) is amended— 
(A) in paragraph (1)(A), by striking ‘‘commercial items’’ 
and inserting ‘‘commercial products or commercial serv-
ices’’; 
(B) in paragraph (1)(C)(i), by striking ‘‘commercial 
item’’ and inserting ‘‘commercial product or commercial 
service’’; and
H. R. 5515—226 
(C) in paragraph (3)(A)(i), by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products or commercial 
services’’. 
(2) Section 1705(c) is amended by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products and commercial 
services’’. 
(3) Section 1708 is amended by striking ‘‘commercial items’’ 
in subsections (c)(6) and (e)(3) and inserting ‘‘commercial prod-
ucts or commercial services’’. 
(4) Section 1901 is amended— 
(A) in subsection (a)(2), by striking ‘‘commercial items’’ 
and inserting ‘‘commercial products or commercial serv-
ices’’; and 
(B) in subsection (e)— 
(i) by striking ‘‘COMMERCIAL ITEMS’’ in the sub-
section heading and inserting ‘‘COMMERCIAL PRODUCTS 
AND COMMERCIAL SERVICES’’; and 
(ii) by striking ‘‘commercial items’’ and inserting 
‘‘commercial products or commercial services’’. 
(5) Section 1903(c) is amended— 
(A) in the subsection heading, by striking ‘‘COMMERCIAL 
ITEM’’ and inserting ‘‘COMMERCIAL PRODUCT OR COMMER-
CIAL SERVICE’’; 
(B) in paragraph (1), by striking ‘‘as a commercial 
item’’ and inserting ‘‘as a commercial product or a commer-
cial service’’; and 
(C) in paragraph (2), by striking ‘‘for an item or service 
treated as a commercial item’’ and inserting ‘‘for a product 
or service treated as a commercial product or a commercial 
service’’. 
(6)(A) Section 1906 is amended by striking ‘‘commercial 
items’’ each place it appears in subsections (b), (c), and (d) 
and inserting ‘‘commercial products or commercial services’’. 
(B)(i) The heading of such section is amended to read 
as follows: 
‘‘§ 1906. List of laws inapplicable to procurements of commer-
cial products and commercial services’’. 
(ii) The table of sections at the beginning of chapter 19 
is amended by striking the item relating to section 1906 and 
inserting the following new item: 
‘‘1906. List of laws inapplicable to procurements of commercial products and com-
mercial services.’’. 
(7) Section 3304 is amended by striking ‘‘commercial item’’ 
in subsections (a)(5) and (e)(4)(B) and inserting ‘‘commercial 
product’’. 
(8) Section 3305(a)(2) is amended by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products or commercial serv-
ices’’. 
(9) Section 3306(b) is amended by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products or commercial serv-
ices’’. 
(10)(A) Section 3307 is amended— 
(i) in subsection (a)—
H. R. 5515—227 
(I) by striking ‘‘COMMERCIAL ITEMS’’ in the sub-
section heading and inserting ‘‘COMMERCIAL PRODUCTS 
AND COMMERCIAL SERVICES’’; 
(II) in paragraph (1), by striking ‘‘commercial 
items’’ 
and 
inserting 
‘‘commercial 
products 
and 
commercial services’’; and 
(III) in paragraph (2), by striking ‘‘a commercial 
item’’ and inserting ‘‘a commercial product or commer-
cial service’’; 
(ii) in subsection (b)— 
(I) in paragraph (2), by striking ‘‘commercial items 
or, to the extent that commercial items suitable to 
meet the executive agency’s needs are not available, 
nondevelopmental items other than commercial items’’ 
and inserting ‘‘commercial services or commercial prod-
ucts or, to the extent that commercial products suitable 
to meet the executive agency’s needs are not available, 
nondevelopmental items other than commercial prod-
ucts’’; and 
(II) in paragraph (3), by striking ‘‘commercial items 
and nondevelopmental items other than commercial 
items’’ and inserting ‘‘commercial services, commercial 
products, and nondevelopmental items other than 
commercial products’’; 
(iii) in subsection (c)— 
(I) in paragraphs (1) and (2), by striking ‘‘commer-
cial items or nondevelopmental items other than 
commercial items’’ and inserting ‘‘commercial services 
or commercial products or nondevelopmental items 
other than commercial products’’; 
(II) in paragraphs (3) and (4), by striking ‘‘commer-
cial items or, to the extent that commercial items suit-
able to meet the executive agency’s needs are not avail-
able, nondevelopmental items other than commercial 
items’’ and inserting ‘‘commercial services or commer-
cial products or, to the extent that commercial products 
suitable to meet the executive agency’s needs are not 
available, nondevelopmental items other than commer-
cial products’’; and 
(III) in paragraphs (5) and (6), by striking 
‘‘commercial items’’ and inserting ‘‘commercial products 
and commercial services’’; 
(iv) in subsection (d)(2), by striking ‘‘commercial items 
or, to the extent that commercial items suitable to meet 
the executive agency’s needs are not available, nondevelop-
mental items other than commercial items’’ and inserting 
‘‘commercial services or commercial products or, to the 
extent that commercial products suitable to meet the execu-
tive agency’s needs are not available, nondevelopmental 
items other than commercial products’’; and 
(v) in subsection (e)— 
(I) in paragraph (1), by inserting ‘‘103a, 104,’’ after 
‘‘sections 102, 103,’’; 
(II) in paragraph (2)(A), by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products or commer-
cial services’’;
H. R. 5515—228 
(III) in the first sentence of paragraph (2)(B), by 
striking ‘‘commercial end items’’ and inserting ‘‘end 
items that are commercial products’’; 
(IV) in paragraphs (2)(B)(i), (2)(C)(i) and (2)(D), 
by striking ‘‘commercial items or commercial compo-
nents’’ and inserting ‘‘commercial products, commercial 
components, or commercial services’’; 
(V) in paragraph (2)(C), in the matter preceding 
clause (i), by striking ‘‘commercial items’’ and inserting 
‘‘commercial products or commercial services’’; 
(VI) in paragraph (4)(A), by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products or commer-
cial services’’; 
(VII) in paragraph (4)(C)(i), by striking ‘‘commer-
cial item, as described in section 103(5)’’ and inserting 
‘‘commercial product, as described in section 103a(1)’’; 
and 
(VIII) in paragraph (5), by striking ‘‘items’’ each 
place it appears and inserting ‘‘products’’. 
(B)(i) The heading of such section is amended to read 
as follows: 
‘‘§ 3307. Preference for commercial products and commercial 
services’’. 
(ii) The table of sections at the beginning of chapter 33 
is amended by striking the item relating to section 3307 and 
inserting the following new item: 
‘‘3307. Preference for commercial products and commercial services.’’. 
(11) Section 3501 is amended— 
(A) in subsection (a)— 
(i) by striking paragraph (1); 
(ii) by redesignating paragraphs (2) and (3) as 
paragraphs (1) and (2), respectively; and 
(iii) in paragraph (2) (as so redesignated), by 
striking ‘‘commercial items’’ and inserting ‘‘commercial 
products or commercial services’’; and 
(B) in subsection (b)— 
(i) by striking ‘‘ITEM’’ in the heading for paragraph 
(1); and 
(ii) by striking ‘‘commercial items’’ in paragraphs 
(1) and (2)(A) and inserting ‘‘commercial services’’. 
(12) Section 3503 is amended— 
(A) in subsection (a)(2), by striking ‘‘a commercial item’’ 
and inserting ‘‘a commercial product or a commercial 
service’’; and 
(B) in subsection (b)— 
(i) by striking ‘‘COMMERCIAL ITEMS’’ in the sub-
section heading and inserting ‘‘COMMERCIAL PRODUCTS 
OR COMMERCIAL SERVICES’’; and 
(ii) by striking ‘‘a commercial item’’ each place 
it appears and inserting ‘‘a commercial product or a 
commercial service’’. 
(13) Section 3505(b) is amended by striking ‘‘commercial 
items’’ each place it appears and inserting ‘‘commercial products 
or commercial services’’.
H. R. 5515—229 
(14) Section 3509(b) is amended by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products or commercial serv-
ices’’. 
(15) Section 3704(c)(5) is amended by striking ‘‘commercial 
item’’ and inserting ‘‘commercial product’’. 
(16) Section 3901(b)(3) is amended by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products or commercial serv-
ices’’. 
(17) Section 4301(2) is amended by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products or commercial serv-
ices’’. 
(18)(A) Section 4505 is amended by striking ‘‘commercial 
items’’ in subsections (a) and (c) and inserting ‘‘commercial 
products or commercial services’’. 
(B)(i) The heading of such section is amended to read 
as follows: 
‘‘§ 4505. Payments for commercial products and commercial 
services’’. 
(ii) The table of sections at the beginning of chapter 45 
is amended by striking the item relating to section 4505 and 
inserting the following new item: 
‘‘4505. Payments for commercial products and commercial services.’’. 
(19) Section 4704(d) is amended by striking ‘‘commercial 
items’’ both places it appears and inserting ‘‘commercial prod-
ucts or commercial services’’. 
(20) Sections 8102(a)(1), 8703(d)(2), and 8704(b) are 
amended by striking ‘‘commercial items (as defined in section 
103 of this title)’’ and inserting ‘‘commercial products or 
commercial services (as defined in sections 103 and 103a, 
respectively, of this title)’’. 
(c) AMENDMENTS TO CHAPTER 137 OF TITLE 10, UNITED STATES 
CODE.—Chapter 137 of title 10, United States Code, is amended 
as follows: 
(1) Section 2302(3) is amended— 
(A) by redesignating subparagraphs (J), (K), and (L) 
as subparagraphs (K), (L), and (M); and 
(B) by striking subparagraph (I) and inserting the fol-
lowing new subparagraphs (I) and (J): 
‘‘(I) The term ‘commercial product’. 
‘‘(J) The term ‘commercial service’.’’. 
(2) Section 2304 is amended— 
(A) in subsections (c)(5) and (f)(2)(B), by striking 
‘‘brand-name commercial item’’ and inserting ‘‘brand-name 
commercial product’’; 
(B) in subsection (g)(1)(B), by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products or commercial 
services’’; and 
(C) in subsection (i)(3), by striking ‘‘commercial items’’ 
and inserting ‘‘commercial products’’. 
(3) Section 2305 is amended— 
(A) in subsection (a)(2), by striking ‘‘commercial items’’ 
and inserting ‘‘commercial products or commercial serv-
ices’’; and 
(B) in subsection (b)(5)(B)(v), by striking ‘‘commercial 
item’’ and inserting ‘‘commercial product’’.
H. R. 5515—230 
(4) Section 2306(b) is amended by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products or commercial serv-
ices’’. 
(5) Section 2306a is amended— 
(A) in subsection (b)— 
(i) in paragraph (1)(B), by striking ‘‘a commercial 
item’’ and inserting ‘‘a commercial product or a 
commercial service’’; 
(ii) in paragraph (2)— 
(I) by striking ‘‘COMMERCIAL
ITEMS’’ in the 
paragraph heading and inserting ‘‘COMMERCIAL 
PRODUCTS OR COMMERCIAL SERVICES’’; and 
(II) by striking ‘‘commercial item’’ each place 
it appears and inserting ‘‘commercial product or 
commercial services’’; 
(iii) in paragraph (3)— 
(I) by striking ‘‘COMMERCIAL
ITEMS’’ in the 
paragraph heading and inserting ‘‘COMMERCIAL 
PRODUCTS’’; and 
(II) by striking ‘‘item’’ each place it appears 
and inserting ‘‘product’’; and 
(iv) in paragraph (4)— 
(I) by striking ‘‘COMMERCIAL ITEM’’ in the para-
graph 
heading 
and 
inserting 
‘‘COMMERCIAL 
PRODUCT OR COMMERCIAL SERVICE’’; 
(II) by striking ‘‘commercial item’’ in subpara-
graph (A) after ‘‘applying the’’; 
(III) by striking ‘‘prior commercial item deter-
mination’’ in subparagraph (A) and inserting ‘‘prior 
commercial product or commercial service deter-
mination’’; 
(IV) by striking ‘‘of such item’’ in subparagraph 
(A) and inserting ‘‘of such product or service’’; 
(V) by striking ‘‘of an item previously deter-
mined to be a commercial item’’ in subparagraph 
(B) and inserting ‘‘of a product or service previously 
determined to be a commercial product or a 
commercial service’’; 
(VI) by striking ‘‘of a commercial item,’’ in 
subparagraph (B) and inserting ‘‘of a commercial 
product or a commercial service, as the case may 
be,’’; 
(VII) by striking ‘‘the commercial item deter-
mination’’ in subparagraph (B) and inserting ‘‘the 
commercial product or commercial service deter-
mination’’; and 
(VIII) by striking ‘‘commercial item’’ in 
subparagraph (C); and 
(v) in paragraph (5), by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products or commer-
cial services’’; 
(B) in subsection (d)(2), by striking ‘‘commercial items’’ 
each place it appears and inserting ‘‘commercial products 
or commercial services’’; and 
(C) in subsection (h)—
H. R. 5515—231 
(i) in paragraph (2), by striking ‘‘commercial items’’ 
and inserting ‘‘commercial products or commercial serv-
ices’’; and 
(ii) by striking paragraph (3). 
(6) Section 2307(f) is amended— 
(A) by striking ‘‘COMMERCIAL ITEMS’’ in the subsection 
heading and inserting ‘‘COMMERCIAL
PRODUCTS
AND 
COMMERCIAL SERVICES’’; and 
(B) by striking ‘‘commercial items’’ in paragraphs (1) 
and (2) and inserting ‘‘commercial products and commercial 
services’’. 
(7) Section 2320(b) is amended— 
(A) in paragraph (1), by striking ‘‘a commercial item, 
the item’’ and inserting ‘‘a commercial product, the 
product’’; and 
(B) in paragraph (9)(A), by striking ‘‘any noncommer-
cial item or process’’ and inserting ‘‘any noncommercial 
product or process’’. 
(8) Section 2321(f) is amended— 
(A) in paragraph (1)— 
(i) by striking ‘‘commercial items’’ and inserting 
‘‘commercial products’’; and 
(ii) by striking ‘‘the item’’ both places it appears 
and inserting ‘‘commercial products’’; and 
(B) in paragraph (2)(A), in clauses (i) and (ii), by 
striking ‘‘commercial item’’ and inserting ‘‘commercial 
product’’. 
(9) Section 2324(l)(1)(A) is amended by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products or commercial serv-
ices’’. 
(10) Section 2335(b) is amended by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products and commercial 
services’’. 
(d) AMENDMENTS TO CHAPTER 140 OF TITLE 10, UNITED STATES 
CODE.—Chapter 140 of title 10, United States Code, is amended 
as follows: 
(1) Section 2375 is amended— 
(A) in subsection (a), by striking ‘‘commercial item’’ 
in paragraphs (1) and (2) and inserting ‘‘commercial product 
or commercial service’’; 
(B) in subsections (b) and (c)— 
(i) by striking ‘‘COMMERCIAL ITEMS’’ in the sub-
section heading and inserting ‘‘COMMERCIAL PRODUCTS 
AND COMMERCIAL SERVICES’’; and 
(ii) by striking ‘‘commercial items’’ each place it 
appears and inserting ‘‘commercial products and 
commercial services’’; and 
(C) in subsection (e)(3), by striking ‘‘commercial items’’ 
and inserting ‘‘commercial products and commercial serv-
ices’’. 
(2) Section 2376(1) is amended— 
(A) by striking ‘‘terms ‘commercial item’,’’ and inserting 
‘‘terms ‘commercial product’, ‘commercial service’,’’; and 
(B) by striking ‘‘chapter 1 of title 41’’ and inserting 
‘‘sections 103, 103a, 110, 105, and 102, respectively, of 
title 41’’. 
(3) Section 2377 is amended—
H. R. 5515—232 
(A) in subsection (a)— 
(i) in paragraph (2), by striking ‘‘commercial items 
or, to the extent that commercial items suitable to 
meet the agency’s needs are not available, nondevelop-
mental items other than commercial items’’ and 
inserting ‘‘commercial services or commercial products 
or, to the extent that commercial products suitable 
to meet the agency’s needs are not available, non-
developmental items other than commercial products’’; 
and 
(ii) in paragraph (3), by striking ‘‘commercial items 
and nondevelopmental items other than commercial 
items’’ and inserting ‘‘commercial services, commercial 
products, and nondevelopmental items other than 
commercial products’’; 
(B) in subsection (b)— 
(i) in paragraphs (1) and (2), by striking ‘‘commer-
cial items or nondevelopmental items other than 
commercial items’’ and inserting ‘‘commercial services, 
commercial products, or nondevelopmental items other 
than commercial products’’; 
(ii) in paragraphs (3) and (4), by striking ‘‘commer-
cial items or, to the extent that commercial items suit-
able to meet the agency’s needs are not available, 
nondevelopmental items other than commercial items’’ 
and inserting ‘‘commercial services or commercial prod-
ucts or, to the extent that commercial products suitable 
to meet the agency’s needs are not available, non-
developmental items other than commercial products’’; 
and 
(iii) in paragraphs (5) and (6), by striking ‘‘commer-
cial items’’ and inserting ‘‘commercial products and 
commercial services’’; 
(C) in subsection (c)— 
(i) in paragraph (2), by striking ‘‘commercial items 
or, to the extent that commercial items suitable to 
meet the agency’s needs are not available, nondevelop-
mental items other than commercial items’’ and 
inserting ‘‘commercial services or commercial products 
or, to the extent that commercial products suitable 
to meet the agency’s needs are not available, non-
developmental items other than commercial products’’; 
and 
(ii) in paragraph (4), by striking ‘‘items other than 
commercial items’’ and inserting ‘‘products other than 
commercial products or services other than commercial 
services’’; 
(D) in subsection (d)— 
(i) in the first sentence, by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products or commer-
cial services’’; 
(ii) in paragraph (1), by striking ‘‘items’’ and 
inserting ‘‘products or services’’; and 
(iii) in paragraph (2), by striking ‘‘items’’ and 
inserting ‘‘products or services’’; and
H. R. 5515—233 
(E) in subsection (e)(1), by striking ‘‘commercial items’’ 
and inserting ‘‘commercial products and commercial serv-
ices’’. 
(4) Section 2379 is amended— 
(A) by striking ‘‘COMMERCIAL ITEMS’’ in the headings 
of subsections (b) and (c) and inserting ‘‘COMMERCIAL PROD-
UCTS’’; 
(B) in subsections (a)(1)(A), (b)(2), and (c)(1)(B), by 
striking ‘‘, as defined in section 103 of title 41’’; and 
(C) by striking ‘‘commercial item’’ and ‘‘commercial 
items’’ each place they appear and inserting ‘‘commercial 
product’’ and ‘‘commercial products’’, respectively. 
(5) Section 2380 is amended— 
(A) in subsection (a), by striking ‘‘commercial item 
determinations’’ in paragraphs (1) and (2) and inserting 
‘‘commercial product and commercial service determina-
tions’’; and 
(B) in subsection (b) (as added by section 848 of the 
National Defense Authorization Act for Fiscal Year 2018)— 
(i) by striking ‘‘ITEM’’ in the subsection heading; 
(ii) by striking ‘‘an item’’ each place it appears 
and inserting ‘‘a product or service’’; 
(iii) by striking ‘‘item’’ after ‘‘using commercial’’ 
each place it appears; 
(iv) by striking ‘‘prior commercial item determina-
tion’’ and inserting ‘‘prior commercial product or service 
determination’’; 
(v) by striking ‘‘such item’’ and inserting ‘‘such 
product or service’’; and 
(vi) by striking ‘‘the item’’ both places it appears 
and inserting ‘‘the product or service’’. 
(6) Section 2380a is amended— 
(A) in subsection (a)— 
(i) by striking ‘‘items and’’ and inserting ‘‘products 
and’’; and 
(ii) by striking ‘‘commercial items’’ and inserting 
‘‘commercial products and commercial services, respec-
tively,’’; and 
(B) in subsection (b), by striking ‘‘commercial items’’ 
and inserting ‘‘commercial services’’. 
(7) Section 2380B is amended by striking ‘‘commercial item’’ 
and inserting ‘‘commercial product’’. 
(8) AMENDMENTS TO HEADINGS, ETC.— 
(A) The heading of such chapter is amended to read 
as follows: 
‘‘CHAPTER 140—PROCUREMENT OF COMMERCIAL 
PRODUCTS AND COMMERCIAL SERVICES’’. 
(B) The heading of section 2375 is amended to read 
as follows: 
‘‘§ 2375. Relationship of other provisions of law to procure-
ment of commercial products and commercial serv-
ices’’. 
(C) The heading of section 2377 is amended to read 
as follows:
H. R. 5515—234 
‘‘§ 2377. Preference for commercial products and commercial 
services’’. 
(D) The heading of section 2379 is amended to read 
as follows: 
‘‘§ 2379. Procurement of a major weapon system as a commer-
cial product: requirement for prior determination 
by Secretary of Defense and notification to Con-
gress’’. 
(E) The heading of section 2380 is amended to read 
as follows: 
‘‘§ 2380. Commercial product and commercial service deter-
minations by Department of Defense’’. 
(F) The heading of section 2380a is amended to read 
as follows: 
‘‘§ 2380a. Treatment of certain products and services as 
commercial products and commercial services’’. 
(G) Section 2380B is redesignated as section 2380b 
and the heading of that section is amended to read as 
follows: 
‘‘§ 2380b. Treatment of commingled items purchased by con-
tractors as commercial products’’. 
(H) The table of sections at the beginning of such 
chapter is amended to read as follows: 
‘‘2375. Relationship of other provisions of law to procurement of commercial prod-
ucts and commercial services. 
‘‘2376. Definitions. 
‘‘2377. Preference for commercial products and commercial services. 
‘‘2379. Procurement of a major weapon system as a commercial product: require-
ment for prior determination by Secretary of Defense and notification to 
Congress. 
‘‘2380. Commercial product and commercial service determinations by Department 
of Defense. 
‘‘2380a. Treatment of certain products and services as commercial products and com-
mercial services. 
‘‘2380b. Treatment of commingled items purchased by contractors as commercial 
products.’’. 
(e) OTHER AMENDMENTS TO TITLE 10, UNITED STATES CODE.— 
Title 10, United States Code, is further amended as follows: 
(1) Section 2226(b) is amended by striking ‘‘for services’’ 
and all that follows through ‘‘deliverable items’’ and inserting 
‘‘for services or deliverable items’’. 
(2) Section 2384(b)(2) is amended by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products’’. 
(3) Section 2393(d) is amended by striking ‘‘commercial 
items (as defined in section 103 of title 41)’’ and inserting 
‘‘commercial products or commercial services (as defined in 
sections 103 and 103a, respectively, of title 41)’’. 
(4) Section 2402(d) is amended— 
(A) in paragraph (1), by striking ‘‘commercial items’’ 
both places it appears and inserting ‘‘commercial products 
or commercial services’’; and 
(B) in paragraph (2), by striking ‘‘the term’’ and all 
that follows and inserting ‘‘the terms ‘commercial product’ 
and ‘commercial service’ have the meanings given those 
terms in sections 103 and 103a, respectively, of title 41.’’.
H. R. 5515—235 
(5) Section 2408(a)(4)(B) is amended by striking ‘‘commer-
cial items (as defined in section 103 of title 41)’’ and inserting 
‘‘commercial products or commercial services (as defined in 
sections 103 and 103a, respectively, of title 41)’’. 
(6) Section 2410b(c) is amended by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products’’. 
(7) Section 2410g(d)(1) is amended by striking ‘‘Commercial 
items (as defined in section 103 of title 41)’’ and inserting 
‘‘Commercial products or commercial services (as defined in 
sections 103 and 103a, respectively, of title 41)’’. 
(8) Section 2447a is amended— 
(A) in subsection (a)(2), by striking ‘‘commercial items 
and technologies’’ and inserting ‘‘commercial products and 
technologies’’; and 
(B) in subsection (c), by inserting before the period 
at the end the following: ‘‘and the term ‘commercial product’ 
has the meaning given that term in section 103 of title 
41’’. 
(9) Section 2451(d) is amended by striking ‘‘commercial 
items’’ and inserting ‘‘commercial products (as defined in section 
103 of title 41)’’. 
(10) Section 2464 is amended— 
(A) in subsection (a)— 
(i) in paragraph (3), by striking ‘‘commercial items’’ 
and inserting ‘‘commercial products or commercial serv-
ices’’; and 
(ii) in paragraph (5), by striking ‘‘The commercial 
items covered by paragraph (3) are commercial items’’ 
and inserting ‘‘The commercial products or commercial 
services covered by paragraph (3) are commercial prod-
ucts (as defined in section 103 of title 41) or commercial 
services (as defined in section 103a of such title)’’; 
and 
(B) in subsection (c)— 
(i) by striking ‘‘COMMERCIAL ITEMS’’ in the sub-
section heading and inserting ‘‘COMMERCIAL PRODUCTS 
OR COMMERCIAL SERVICES’’; and 
(ii) by striking ‘‘commercial item’’ and inserting 
‘‘commercial product or commercial service’’. 
(11) Section 2484(f) is amended— 
(A) by striking ‘‘COMMERCIAL ITEMS’’ in the subsection 
heading and inserting ‘‘COMMERCIAL PRODUCTS’’; and 
(B) by striking ‘‘commercial item’’ and inserting 
‘‘commercial product’’. 
(12) The items relating to chapter 140 in the tables of 
chapters at the beginning of subtitle A, and at the beginning 
of part IV of subtitle A, are amended to read as follows: 
‘‘140. Procurement of Commercial Products and Commercial Serv-
ices ............................................................................................................ 2377’’. 
(f) AMENDMENTS
TO
PROVISIONS
OF
NATIONAL
DEFENSE 
AUTHORIZATION ACTS.— 
(1) Section 806(b) of the National Defense Authorization 
Act for Fiscal Years 1992 and 1993 (Public Law 102–190; 10 
U.S.C. 2302 note) is amended by striking ‘‘commercial items 
(as defined in section 103 of title 41, United States Code)’’ 
and inserting ‘‘commercial products or commercial services (as
H. R. 5515—240 
title 41, United States Code, shall be deemed as of that effective 
date to be on a list of provisions of law included in the Federal 
Acquisition Regulation pursuant to section 1906 of such title. 
(i) IMPLEMENTATION PLAN REQUIRED.—Not later than April 
1, 2019, the Under Secretary of Defense for Acquisition and 
Sustainment, in coordination with members of the Defense Business 
Board, the Defense Science Board, and the Defense Innovation 
Board as appropriate, shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives an 
implementation plan that contains the following elements: 
(1) An implementation timeline and schedule, to include 
substantive, technical, and conforming changes to the law that 
the Under Secretary deems appropriate and necessary, to 
include revising definitions or categories of items, products, 
and services. 
(2) A review of recommendations by the independent panel 
created under section 809 of the National Defense Authorization 
Act for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 889) 
pertaining to commercial items. 
(3) A review of commercial item provisions from the 
National Defense Authorization Act for Fiscal Year 2016 (Public 
Law 114–92), the National Defense Authorization Act for Fiscal 
Year 2017 (Public Law 114–328), the National Defense 
Authorization Act for Fiscal Year 2018 (Public Law 115–91), 
and other relevant legislation. 
(4) An analysis of the extent to which the Department 
of Defense should treat commercial service contracts and 
commercial products in a similar manner. 
(5) Such other matters with respect to commercial item 
procurement as the Under Secretary considers appropriate. 
SEC. 837. LIMITATION ON APPLICABILITY TO DEPARTMENT OF 
DEFENSE COMMERCIAL CONTRACTS OF CERTAIN PROVI-
SIONS OF LAW. 
(a) SECTION 2375.—Section 2375(b)(2) of title 10, United States 
Code, is amended by striking ‘‘January 1, 2015’’ and inserting 
‘‘October 13, 1994’’. 
(b) SECTION 2533A.—Section 2533a(i) of such title is amended— 
(1) in the subsection heading, by striking ‘‘ITEMS’’ and 
inserting ‘‘PRODUCTS’’; and 
(2) by striking ‘‘commercial items’’ and inserting ‘‘commer-
cial products’’. 
(c) SECTION 2533B.—Section 2533b(h) of such title is amended— 
(1) in the subsection heading, by striking ‘‘ITEMS’’ and 
inserting ‘‘PRODUCTS’’; and 
(2) by striking ‘‘commercial items’’ each place it appears 
and inserting ‘‘commercial products’’. 
SEC. 838. MODIFICATIONS TO PROCUREMENT THROUGH COMMERCIAL 
E-COMMERCE PORTALS. 
(a) IN
GENERAL.—Section 846 of the National Defense 
Authorization Act for Fiscal Year 2018 (Public Law 115–91; 41 
U.S.C. 1901 note) is amended— 
(1) in subsection (f), by adding at the end the following 
new paragraph: 
‘‘(5) A procurement of a product made through a commercial 
e-commerce portal under the program established pursuant 
to subsection (a) is deemed to satisfy requirements for full
H. R. 5515—241 
and open competition pursuant to section 2304 of title 10, 
United States Code, and section 3301 of title 41, United States 
Code, if— 
‘‘(A) there are offers from two or more suppliers of 
such a product or similar product with substantially the 
same physical, functional, or performance characteristics 
on the online marketplace; and 
‘‘(B) the Administrator establishes procedures to imple-
ment subparagraph (A) and notifies Congress at least 30 
days before implementing such procedures.’’; and 
(2) in subsection (h), by striking paragraph (3) and inserting 
the following: 
‘‘(3) agree not to use, for pricing, marketing, competitive, 
or other purposes, any information, including any Government- 
owned data, such as purchasing trends or spending habits, 
related to a product from a third-party supplier featured on 
the commercial e-commerce portal or the transaction of such 
product, except as necessary to comply with the requirements 
of the program established in subsection (a).’’. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that— 
(1) the implementation of any e-commerce portal under 
such section 846 to procure commercial products will be done 
in a manner that will enhance competition, expedite procure-
ment, and ensure reasonable pricing of commercial products; 
(2) the implementation of the e-commerce portal will be 
completed with multiple contracts with multiple commercial 
e-commerce portal providers; and 
(3) the Administrator of the General Services Administra-
tion should require any e-commerce portal provider to take 
the necessary precautions to safeguard data of all other e- 
commerce portal providers and any third-party suppliers. 
SEC. 839. REVIEW OF FEDERAL ACQUISITION REGULATIONS ON 
COMMERCIAL PRODUCTS, COMMERCIAL SERVICES, AND 
COMMERCIALLY AVAILABLE OFF-THE-SHELF ITEMS. 
(a) REVIEW OF DETERMINATIONS NOT TO EXEMPT CONTRACTS 
FOR COMMERCIAL PRODUCTS, COMMERCIAL SERVICES, AND COMMER-
CIALLY AVAILABLE OFF-THE-SHELF ITEMS FROM CERTAIN LAWS AND 
REGULATIONS.—Not later than one year after the date of the enact-
ment of this Act, the Federal Acquisition Regulatory Council shall— 
(1) review each determination of the Federal Acquisition 
Regulatory Council pursuant to section 1906(b)(2), section 
1906(c)(3), or section 1907(a)(2) of title 41, United States Code, 
not to exempt contracts or subcontracts from laws which such 
contracts and subcontracts would otherwise be exempt from 
under section 1906(d) of title 41, United States Code; and 
(2) propose revisions to the Federal Acquisition Regulation 
to provide an exemption from each law subject to such deter-
mination unless the Council determines that there is a specific 
reason not to provide the exemptions pursuant to section 1906 
of such title or the Administrator for Federal Procurement 
Policy determines there is a specific reason not to provide 
the exemption pursuant to section 1907 of such title. 
(b) REVIEW
OF CERTAIN CONTRACT CLAUSE REQUIREMENTS 
APPLICABLE TO COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES 
CONTRACTS.—Not later than one year after the date of the enact-
ment of this Act, the Federal Acquisition Regulatory Council shall—
H. R. 5515—242 
(1) review the Federal Acquisition Regulation to assess 
all regulations that require a specific contract clause for a 
contract using commercial product or commercial services 
acquisition procedures under part 12 of the Federal Acquisition 
Regulation, except for regulations required by law or Executive 
order; and 
(2) propose revisions to the Federal Acquisition Regulation 
to eliminate regulations reviewed under paragraph (1) unless 
the Federal Acquisition Regulatory Council determines on a 
case-by-case basis that there is a specific reason not to eliminate 
the regulation. 
(c) ELIMINATION OF CERTAIN CONTRACT CLAUSE REGULATIONS 
APPLICABLE
TO COMMERCIALLY AVAILABLE OFF-THE-SHELF ITEM 
SUBCONTRACTS.—Not later than one year after the date of the 
enactment of this Act, the Federal Acquisition Regulatory Council 
shall— 
(1) review the Federal Acquisition Regulation to assess 
all regulations that require a prime contractor to include a 
specific contract clause in a subcontract for commercially avail-
able off-the-shelf items unless the inclusion of such clause 
is required by law or Executive order; and 
(2) propose revisions to the Federal Acquisition Regulation 
to eliminate regulations reviewed under paragraph (1) unless 
the Federal Acquisition Regulatory Council determines on a 
case-by-case basis that there is a specific reason not to eliminate 
the regulation. 
(d) REPORT TO CONGRESS.— 
(1) REQUIREMENT.—Not later than one year after the date 
of the enactment of this Act, the Federal Acquisition Regulatory 
Council shall submit to the committees listed in paragraph 
(2) a report on the results of the reviews under this section. 
(2) COMMITTEES
LISTED.—The committees listed in this 
paragraph are the following: 
(A) The Committee on Armed Services and the Com-
mittee on Homeland Security and Governmental Affairs 
of the Senate. 
(B) The Committee on Armed Services and the Com-
mittee on Oversight and Government Reform of the House 
of Representatives. 
Subtitle E—Industrial Base Matters 
SEC. 841. REPORT ON LIMITED SOURCING OF SPECIFIC COMPONENTS 
FOR NAVAL VESSELS. 
(a) REPORT REQUIRED.—Not later than March 1, 2019, the 
Secretary of the Navy shall submit to the congressional defense 
committees a report that provides, for the components described 
in subsection (b), a market survey, a cost assessment, national 
security considerations, and a recommendation regarding whether 
competition for the procurement of the components should be lim-
ited to sources in the national technology and industrial base (as 
defined in section 2500 of title 10, United States Code). 
(b) COMPONENTS.—The components described in this subsection 
are the following: 
(1) Naval vessel components listed in section 2534(a)(3) 
of title 10, United States Code.
H. R. 5515—243 
(2) The following components for auxiliary ships: 
(A) Auxiliary equipment, including pumps. 
(B) Propulsion system components, including engines, 
reduction gears, and propellers. 
(C) Shipboard cranes. 
(D) Spreaders for shipboard cranes. 
SEC. 
842. 
REMOVAL 
OF 
NATIONAL 
INTEREST 
DETERMINATION 
REQUIREMENTS FOR CERTAIN ENTITIES. 
(a) IN GENERAL.—Effective October 1, 2020, a covered NTIB 
entity operating under a special security agreement pursuant to 
the National Industrial Security Program shall not be required 
to obtain a national interest determination as a condition for access 
to proscribed information. 
(b) ACCELERATION AUTHORIZED.—Notwithstanding the effective 
date of this section, the Secretary of Defense, in consultation with 
the Director of the Information Security Oversight Office, may 
waive the requirement to obtain a national interest determination 
for a covered NTIB entity operating under such a special security 
agreement that has— 
(1) a demonstrated successful record of compliance with 
the National Industrial Security Program; and 
(2) previously been approved for access to proscribed 
information. 
(c) DEFINITIONS.—In this section: 
(1) COVERED NTIB ENTITY.—The term ‘‘covered NTIB entity’’ 
means a person that is a subsidiary located in the United 
States— 
(A) for which the ultimate parent company and any 
intermediate parent companies of such subsidiary are 
located in a country that is part of the national technology 
and industrial base (as defined in section 2500 of title 
10, United States Code); and 
(B) that is subject to the foreign ownership, control, 
or influence requirements of the National Industrial Secu-
rity Program. 
(2) PROSCRIBED
INFORMATION.—The term ‘‘proscribed 
information’’ means information that is— 
(A) classified at the level of top secret; 
(B) communications security information (excluding 
controlled cryptographic items when un-keyed or utilized 
with unclassified keys); 
(C) restricted data (as defined in section 11 of the 
Atomic Energy Act of 1954 (42 U.S.C. 2014)); 
(D) special access program information under section 
4.3 of Executive Order No. 13526 (75 Fed. Reg. 707; 50 
U.S.C. 3161 note) or successor order; or 
(E) designated as sensitive compartmented informa-
tion. 
SEC. 843. PILOT PROGRAM TO TEST MACHINE-VISION TECHNOLOGIES 
TO DETERMINE THE AUTHENTICITY AND SECURITY OF 
MICROELECTRONIC PARTS IN WEAPON SYSTEMS. 
(a) PILOT
PROGRAM
AUTHORIZED.—The Undersecretary of 
Defense for Research and Engineering, in coordination with the 
Defense Microelectronics Activity, shall establish a pilot program
H. R. 5515—244 
to test the feasibility and reliability of using machine-vision tech-
nologies to determine the authenticity and security of microelec-
tronic parts in weapon systems. 
(b) OBJECTIVES
OF PILOT PROGRAM.—The Undersecretary of 
Defense for Research and Engineering, in coordination with the 
Defense Microelectronics Activity, shall design any pilot program 
conducted under this section to determine the following: 
(1) The effectiveness and technology readiness level of 
machine-vision technologies to determine the authenticity of 
microelectronic parts at the time of the creation of such part 
through final insertion of such part into weapon systems. 
(2) The best method of incorporating machine-vision tech-
nologies into the process of developing, transporting, and 
inserting microelectronics into weapon systems. 
(3) The rules, regulations, or processes that hinder the 
development and incorporation of machine-vision technologies, 
and the application of such rules, regulations, or processes 
to mitigate counterfeit microelectronics proliferation throughout 
the Department of Defense. 
(c) CONSULTATION.—To develop the pilot program under this 
section, 
the 
Undersecretary 
of 
Defense 
for 
Research 
and 
Engineering, in coordination with the Defense Microelectronics 
Activity, may consult with the following entities: 
(1) Manufacturers of semiconductors or electronics. 
(2) Industry associations relating to semiconductors or elec-
tronics. 
(3) Original equipment manufacturers of products for the 
Department of Defense. 
(4) Nontraditional defense contractors (as defined in section 
2302(9) of title 10, United States Code) that are machine vision 
companies. 
(5) Federal laboratories (as defined in section 2500(5) of 
title 10, United States Code). 
(6) Other elements of the Department of Defense that 
fall under the authority of the Undersecretary of Defense for 
Research and Engineering. 
(d) COMMENCEMENT AND DURATION.—The pilot program estab-
lished under this section shall be established not later than April 
1, 2019, and all activities under such pilot program shall terminate 
not later than December 31, 2020. 
SEC. 844. LIMITATION ON CERTAIN PROCUREMENTS APPLICATION 
PROCESS. 
(a) IN GENERAL.—Section 2534 of title 10, United States Code, 
is amended by adding at the end the following new subsections: 
‘‘(k) LIMITATION
ON
CERTAIN
PROCUREMENTS
APPLICATION 
PROCESS.— 
‘‘(1) IN GENERAL.—The Secretary of Defense shall admin-
ister a process to analyze and assess potential items for consid-
eration to be required to be procured from a manufacturer 
that is part of the national technology and industrial base. 
‘‘(2) ELEMENTS.—The application process required under 
paragraph (1) shall include the following elements: 
‘‘(A) The Secretary shall designate an official within 
the Office of the Secretary of Defense responsible for 
administration of the limitation on certain procurements 
application process and associated policy.
H. R. 5515—246 
‘‘(D) 
JUSTIFICATION.—The 
determination 
required 
under subparagraph (B) shall also include the rationale 
and justification for the determination. 
‘‘(4) RECOMMENDATIONS
FOR
LEGISLATION.—For applica-
tions recommended under subsection (3), the official designated 
pursuant to paragraph (2)(A) shall be responsible for preparing 
a legislative proposal for consideration by the Secretary.’’. 
(b) EFFECTIVE DATE.—This section and the amendments made 
by this section shall take effect one year after the date of the 
enactment of this Act. 
SEC. 845. REPORT ON DEFENSE ELECTRONICS INDUSTRIAL BASE. 
(a) IN GENERAL.—Not later than January 31, 2019, the Sec-
retary of Defense, in consultation with the Executive Agent for 
Printed Circuit Board and Interconnect Technology and the Director 
of the Office of Management and Budget, shall submit to Congress 
a report examining the health of the defense electronics industrial 
base, including analog and passive electronic parts, substrates, 
printed boards, assemblies, connectors, cabling, and related areas, 
both domestically and within the national technology and industrial 
base. 
(b) ELEMENTS.—The report required under subsection (a) shall 
include the following elements: 
(1) An examination of current and planned partnerships 
with the commercial industry. 
(2) Analysis of the current and future defense electronics 
industrial base. 
(3) Threat assessment related to system security. 
(4) An assessment of the health of the engineering and 
production workforce. 
(5) A description of the electronics supply chain require-
ments of defense systems integral to meeting the goals of 
the 2018 National Defense Strategy. 
(6) Recommended actions to address areas deemed deficient 
or vulnerable, and a plan to formalize long-term resourcing 
for the Executive Agent. 
(7) Any other areas matters determined relevant by the 
Secretary. 
SEC. 846. SUPPORT FOR DEFENSE MANUFACTURING COMMUNITIES 
TO SUPPORT THE DEFENSE INDUSTRIAL BASE. 
(a) PROGRAM AUTHORIZED.— 
(1) IN
GENERAL.—The Secretary of Defense may, in 
coordination with the Secretary of Commerce and working in 
coordination with the defense manufacturing institutes, estab-
lish within the Department of Defense a program to make 
long-term investments in critical skills, facilities, research and 
development, and small business support in order to strengthen 
the national security innovation base by designating and sup-
porting consortiums as defense manufacturing communities. 
(2) DESIGNATION.—The program authorized by this section 
shall be known as the ‘‘Defense Manufacturing Community 
Support Program’’ (in this section referred to as the ‘‘Program’’). 
(b) DESIGNATION OF DEFENSE MANUFACTURING COMMUNITIES 
COMPLEMENTARY TO DEFENSE MANUFACTURING INSTITUTES.— 
(1) IN GENERAL.—The Secretary of Defense may designate 
eligible consortiums as defense manufacturing communities
H. R. 5515—247 
through a competitive process, and in coordination with the 
defense manufacturing institutes. 
(2) ELIGIBLE CONSORTIUMS.—The Secretary may establish 
eligibility criteria for a consortium to participate in the Pro-
gram. In developing such criteria, the Secretary may consider 
the merits of— 
(A) 
including 
members 
from 
academia, 
defense 
industry, commercial industry, and State and local govern-
ment organizations; 
(B) supporting efforts in geographical regions that have 
capabilities in key technologies or industrial base supply 
chains that are determined critical to national security; 
(C) optimal consortium composition and size to promote 
effectiveness, collaboration, and efficiency; and 
(D) complementarity with defense manufacturing 
institutes. 
(3) DURATION.—Each designation under paragraph (1) shall 
be for a period of five years. 
(4) RENEWAL.— 
(A) IN GENERAL.—The Secretary may renew a designa-
tion made under paragraph (1) for up to two additional 
two-year periods. Any designation as a defense manufac-
turing community or renewal of such designation that is 
in effect before the date of the enactment of this Act shall 
count toward the limit set forth in this subparagraph. 
(B) EVALUATION FOR RENEWAL.—The Secretary shall 
establish criteria for the renewal of a consortium. In estab-
lishing such criteria, the Secretary may consider— 
(i) the performance of the consortium in meeting 
the established goals of the Program; 
(ii) the progress the consortium has made with 
respect to project-specific metrics, particularly with 
respect to those metrics that were designed to help 
communities track their own progress; 
(iii) whether any changes to the composition of 
the eligible consortium or revisions of the plan for 
the consortium would improve the capabilities of the 
defense industrial base; 
(iv) the effectiveness of coordination with defense 
manufacturing institutes; and 
(v) such other criteria as the Secretary considers 
appropriate. 
(5) APPLICATION FOR DESIGNATION.—An eligible consortium 
seeking a designation under paragraph (1) shall submit an 
application to the Secretary at such time and in such manner 
as the Secretary may require. In developing such procedures, 
the Secretary may consider the inclusion of— 
(A) a description of the regional boundaries of the 
consortium, and the defense manufacturing capacity of the 
region; 
(B) an evidence-based plan for enhancing the defense 
industrial base through the efforts of the consortium; 
(C) the investments the consortium proposes and the 
strategy of the consortium to address gaps in the defense 
industrial base; 
(D) a description of the outcome-based metrics, bench-
marks, and milestones that will track and the evaluation
H. R. 5515—248 
methods that will be used to gauge performance of the 
consortium; 
(E) how the initiatives will complement defense manu-
facturing institutes; and 
(F) such other matters as the Secretary considers 
appropriate. 
(c) FINANCIAL AND TECHNICAL ASSISTANCE.— 
(1) IN
GENERAL.—Under the Program, the Secretary of 
Defense may award financial or technical assistance to a 
member of a consortium designated as a defense manufacturing 
community under the Program as appropriate for purposes 
of the Program. 
(2) USE OF FUNDS.—A recipient of financial or technical 
assistance under the Program may use such financial or tech-
nical assistance to support an investment that will improve 
the defense industrial base. 
(3) 
INVESTMENTS
SUPPORTED.—Investments 
supported 
under this subsection may include activities not already pro-
vided for by defense manufacturing institutes on— 
(A) equipment or facility upgrades; 
(B) workforce training, retraining, or recruitment and 
retention, including that of women and underrepresented 
minorities; 
(C) business incubators; 
(D) 
advanced 
research 
and 
commercialization, 
including with Federal laboratories and depots; 
(E) supply chain development; and 
(F) small business assistance. 
(d) RECEIPT OF TRANSFERRED FUNDS.—The Secretary of Defense 
may accept amounts transferred to the Secretary from the head 
of another agency or a State or local governmental organization 
to carry out this section. 
SEC. 847. LIMITATION ON PROCUREMENT OF CERTAIN ITEMS FOR 
T–AO–205 PROGRAM. 
Effective during fiscal year 2019, the Secretary of Defense 
may procure the following items for the T–AO–205 program only 
if the manufacturer of the item is in the United States: 
(1) Auxiliary equipment, including pumps, for all shipboard 
services. 
(2) Propulsion system components, including engines, 
reduction gears, and propellers. 
(3) Shipboard cranes. 
(4) Spreaders for shipboard cranes. 
Subtitle F—Small Business Matters 
SEC. 851. DEPARTMENT OF DEFENSE SMALL BUSINESS STRATEGY. 
(a) IN GENERAL.—Chapter 136 of title 10, United States Code, 
is amended by adding at the end the following new section: 
‘‘§ 2283. Department of Defense small business strategy 
‘‘(a) IN GENERAL.—The Secretary of Defense shall implement 
a small business strategy for the Department of Defense that meets 
the requirements of this section. 
‘‘(b) UNIFIED MANAGEMENT STRUCTURE.—As part of the small 
business strategy described in subsection (a), the Secretary shall
H. R. 5515—249 
ensure that there is a unified management structure within the 
Department for the functions of the Department relating to— 
‘‘(1) programs and activities related to small business con-
cerns (as defined in section 3 of the Small Business Act); 
‘‘(2) manufacturing and industrial base policy; and 
‘‘(3) any procurement technical assistance program estab-
lished under chapter 142 of this title. 
‘‘(c) PURPOSE OF SMALL BUSINESS PROGRAMS.—The Secretary 
shall ensure that programs and activities of the Department of 
Defense related to small business concerns are carried out so as 
to further national defense programs and priorities and the state-
ments of purpose for Department of Defense acquisition set forth 
in section 801 of the National Defense Authorization Act for Fiscal 
Year 2018 (Public Law 115–91; 131 Stat. 1449). 
‘‘(d) POINTS OF ENTRY INTO DEFENSE MARKET.—The Secretary 
shall ensure— 
‘‘(1) that opportunities for small business concerns to con-
tract with the Department of Defense are identified clearly; 
and 
‘‘(2) that small business concerns are able to have access 
to program managers, contracting officers, and other persons 
using the products or services of such concern to the extent 
necessary to inform such persons of emerging and existing 
capabilities of such concerns. 
‘‘(e) ENHANCED OUTREACH UNDER PROCUREMENT TECHNICAL 
ASSISTANCE PROGRAM MARKET.—The Secretary shall enable and 
promote activities to provide coordinated outreach to small business 
concerns through any procurement technical assistance program 
established under chapter 142 of this title to facilitate small busi-
ness contracting with the Department of Defense.’’. 
(b) IMPLEMENTATION.— 
(1) DEADLINE.—The Secretary of Defense shall develop the 
small business strategy required by section 2283 of title 10, 
United States Code, as added by subsection (a), not later than 
180 days after the date of the enactment of this Act. 
(2) NOTICE TO CONGRESS AND PUBLICATION.—Upon comple-
tion of the development of the small business strategy pursuant 
to paragraph (1), the Secretary shall— 
(A) transmit the strategy to Congress; and 
(B) publish the strategy on a public website of the 
Department of Defense. 
(c) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by adding at the end the following 
new item: 
‘‘2283. Department of Defense small business strategy.’’. 
SEC. 852. PROMPT PAYMENTS OF SMALL BUSINESS CONTRACTORS. 
Section 2307(a) of title 10, United States Code, is amended— 
(1) by redesignating paragraphs (1) and (2) as subpara-
graphs (A) and (B), respectively; 
(2) by striking ‘‘The head of any agency may—’’ and 
inserting ‘‘(1) The head of any agency may’’; and 
(3) by adding at the end the following new paragraph: 
‘‘(2)(A) For a prime contractor (as defined in section 8701 of 
title 41) that is a small business concern (as defined in section 
3 of the Small Business Act (15 U.S.C. 632)), the Secretary of 
Defense shall, to the fullest extent permitted by law, establish
H. R. 5515—250 
an accelerated payment date with a goal of 15 days after receipt 
of a proper invoice for the amount due if a specific payment date 
is not established by contract. 
‘‘(B) For a prime contractor that subcontracts with a small 
business concern, the Secretary of Defense shall, to the fullest 
extent permitted by law, establish an accelerated payment date 
with a goal of 15 days after receipt of a proper invoice for the 
amount due if— 
‘‘(i) a specific payment date is not established by contract; 
and 
‘‘(ii) the prime contractor agrees to make payments to the 
subcontractor in accordance with the accelerated payment date, 
to the maximum extent practicable, without any further consid-
eration from or fees charged to the subcontractor.’’. 
SEC. 853. INCREASED PARTICIPATION IN THE SMALL BUSINESS 
ADMINISTRATION MICROLOAN PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) The term ‘‘intermediary’’ has the meaning given that 
term in section 7(m)(11) of the Small Business Act (15 U.S.C. 
636(m)(11)). 
(2) The term ‘‘microloan program’’ means the program 
established under section 7(m) of the Small Business Act (15 
U.S.C. 636(m)). 
(b) MICROLOAN INTERMEDIARY LENDING LIMIT INCREASED.—Sec-
tion 7(m)(3)(C) of the Small Business Act (15 U.S.C. 636(m)(3)(C)) 
is amended by striking ‘‘$5,000,000’’ and inserting ‘‘$6,000,000’’. 
(c) SBA STUDY OF MICROENTERPRISE PARTICIPATION.—Not later 
than one year after the date of the enactment of this section, 
the Administrator of the Small Business Administration shall con-
duct a study and submit to the Committee on Small Business 
and Entrepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives a report on— 
(1) the operations (including services provided, structure, 
size, and area of operation) of a representative sample of— 
(A) intermediaries that are eligible to participate in 
the microloan program and that do participate; and 
(B) intermediaries that are eligible to participate in 
the microloan program and that do not participate; 
(2) the reasons why eligible intermediaries described in 
paragraph (1)(B) choose not to participate in the microloan 
program; 
(3) recommendations on how to encourage increased partici-
pation in the microloan program by eligible intermediaries 
described in paragraph (1)(B); and 
(4) recommendations on how to decrease the costs associ-
ated with participation in the microloan program for eligible 
intermediaries. 
(d) GAO STUDY ON MICROLOAN INTERMEDIARY PRACTICES.— 
Not later than one year after the date of the enactment of this 
section, the Comptroller General of the United States shall submit 
to the Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House of 
Representatives a report evaluating— 
(1) oversight of the microloan program by the Small Busi-
ness Administration, including oversight of intermediaries 
participating in the microloan program; and
H. R. 5515—251 
(2) the specific processes used by the Small Business 
Administration to ensure— 
(A) compliance by intermediaries participating in the 
microloan program; and 
(B) the overall performance of the microloan program. 
SEC. 854. AMENDMENTS TO SMALL BUSINESS INNOVATION RESEARCH 
PROGRAM AND SMALL BUSINESS TECHNOLOGY TRANSFER 
PROGRAM. 
(a) EXTENSION OF PILOT PROGRAMS.—Section 9 of the Small 
Business Act (15 U.S.C. 638) is amended— 
(1) in subsection (cc), by striking ‘‘2017’’ and inserting 
‘‘2022’’; 
(2) in subsection (gg)(7), by striking ‘‘2017’’ and inserting 
‘‘2022’’; 
(3) in subsection (jj)— 
(A) in paragraph (4)(A), by striking ‘‘3’’ and inserting 
‘‘4’’; and 
(B) in paragraph (7), by striking ‘‘2017’’ and inserting 
‘‘2022’’; 
(4) in subsection (mm)— 
(A) in paragraph (1)— 
(i) in the matter preceding subparagraph (A), by 
striking ‘‘2017’’ and inserting ‘‘2022’’; 
(ii) in subparagraph (I), by striking ‘‘and’’ at the 
end; 
(iii) in subparagraph (J), by striking the period 
at the end and inserting ‘‘; and’’; and 
(iv) by adding at the end the following: 
‘‘(K) funding for improvements that increase com-
monality across data systems, reduce redundancy, and 
improve data oversight and accuracy.’’; and 
(5) by adding at the end the following: 
‘‘(tt) OUTSTANDING REPORTS AND EVALUATIONS.— 
‘‘(1) IN
GENERAL.—Not later than March 30, 2019, the 
Administrator shall submit to the Committee on Small Business 
and Entrepreneurship of the Senate, the Committee on Small 
Business of the House of Representatives, and the Committee 
on Science, Space, and Technology of the House of Representa-
tives— 
‘‘(A) each report, evaluation, or analysis, as applicable, 
described in subsection (b)(7), (g)(9), (o)(10), (y)(6)(C), 
(gg)(6), (jj)(6), and (mm)(6); and 
‘‘(B) metrics regarding, and an evaluation of, the 
authority provided to the National Institutes of Health, 
the Department of Defense, and the Department of Edu-
cation under subsection (cc). 
‘‘(2) INFORMATION REQUIRED.—Not later than December 31, 
2018, the head of each agency that is responsible for carrying 
out a provision described in subparagraph (A) or (B) of para-
graph (1) shall submit to the Administrator any information 
that is necessary for the Administrator to carry out the respon-
sibilities of the Administrator under that paragraph.’’. 
(b) ACCELERATING SBIR AND STTR AWARDS.—Section 9 of the 
Small Business Act (15 U.S.C. 638) is amended— 
(1) in subsection (hh)—
H. R. 5515—252 
(A) by striking ‘‘Federal agencies’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—Federal agencies’’; 
(B) in paragraph (1), as so designated, by striking 
‘‘attempt to’’; and 
(C) by adding at the end the following: 
‘‘(2) PILOT
PROGRAM
TO
ACCELERATE
DEPARTMENT
OF 
DEFENSE SBIR AND STTR AWARDS.— 
‘‘(A) IN
GENERAL.—Not later than 1 year after the 
date of enactment of this paragraph, the Under Secretary 
of Defense for Research and Engineering, acting through 
the Director of Defense Procurement and Acquisition Policy 
of the Department of Defense, shall establish a pilot pro-
gram to reduce the time for awards under the SBIR and 
STTR programs of the Department of Defense, under which 
the Department of Defense shall— 
‘‘(i) develop simplified and standardized procedures 
and model contracts throughout the Department of 
Defense for Phase I, Phase II, and Phase III SBIR 
awards; 
‘‘(ii) for Phase I SBIR and STTR awards, reduce 
the amount of time between solicitation closure and 
award; 
‘‘(iii) for Phase II SBIR and STTR awards, reduce 
the amount of time between the end of a Phase I 
award and the start of the Phase II award; 
‘‘(iv) for Phase II SBIR and STTR awards that 
skip Phase I, reduce the amount of time between solici-
tation closure and award; 
‘‘(v) for sequential Phase II SBIR and STTR 
awards, reduce the amount of time between Phase 
II awards; and 
‘‘(vi) reduce the award times described in clauses 
(ii), (iii), (iv), and (v) to be as close to 90 days as 
possible. 
‘‘(B) CONSULTATION.—In carrying out the pilot program 
under subparagraph (A), the Director of Defense Procure-
ment and Acquisition Policy of the Department of Defense 
shall consult with the Director of the Office of Small Busi-
ness Programs of the Department of Defense. 
‘‘(C) TERMINATION.—The pilot program under subpara-
graph (A) shall terminate on September 30, 2022.’’; and 
(2) in subsection (ii)— 
(A) by striking ‘‘Federal agencies’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—Federal agencies’’; and 
(B) by adding at the end the following: 
‘‘(2) COMPTROLLER
GENERAL
REPORTS.—The Comptroller 
General of the United States shall submit to the Committee 
on Small Business and Entrepreneurship of the Senate, the 
Committee on Armed Services of the Senate, the Committee 
on Small Business of the House of Representatives, and the 
Committee on Armed Services of the House of Representa-
tives— 
‘‘(A) not later than 1 year after the date of enactment 
of this paragraph, and every year thereafter for 3 years, 
a report that—
H. R. 5515—253 
‘‘(i) provides the average and median amount of 
time that each component of the Department of 
Defense with an SBIR or STTR program takes to 
review and make a final decision on proposals sub-
mitted under the program; and 
‘‘(ii) compares that average and median amount 
of time with that of other Federal agencies partici-
pating in the SBIR or STTR program; and 
‘‘(B) not later than December 5, 2021, a report that— 
‘‘(i) includes the information described in subpara-
graph (A); 
‘‘(ii) assesses where each Federal agency partici-
pating in the SBIR or STTR program needs improve-
ment with respect to the proposal review and award 
times under the program; 
‘‘(iii) identifies best practices for shortening the 
proposal review and award times under the SBIR and 
STTR programs, including the pros and cons of using 
contracts compared to grants; and 
‘‘(iv) analyzes the efficacy of the pilot program 
established under subsection (hh)(2).’’. 
(c) IMPROVEMENTS TO TECHNICAL AND BUSINESS ASSISTANCE.— 
(1) IN GENERAL.—Section 9(q) of the Small Business Act 
(15 U.S.C. 638(q)) is amended— 
(A) in the subsection heading, by inserting ‘‘AND BUSI-
NESS’’ after ‘‘TECHNICAL’’; 
(B) in paragraph (1)— 
(i) in the matter preceding subparagraph (A)— 
(I) by striking ‘‘a vendor selected under para-
graph (2)’’ and inserting ‘‘1 or more vendors 
selected under paragraph (2)(A)’’; 
(II) by inserting ‘‘and business’’ before ‘‘assist-
ance services’’; and 
(III) by inserting ‘‘assistance with product 
sales, intellectual property protections, market 
research, market validation, and development of 
regulatory plans and manufacturing plans,’’ after 
‘‘technologies,’’; and 
(ii) in subparagraph (D), by inserting ‘‘, including 
intellectual property protections’’ before the period at 
the end; 
(C) in paragraph (2)— 
(i) in the first sentence, by striking ‘‘Each agency 
may select a vendor to assist small business concerns 
to meet’’ and inserting the following: 
‘‘(A) IN GENERAL.—Each agency may select 1 or more 
vendors from which small business concerns may obtain 
assistance in meeting’’; and 
(ii) by adding at the end the following: 
‘‘(B) SELECTION BY SMALL BUSINESS CONCERN.—A small 
business concern may, by contract or otherwise, select 1 
or more vendors to assist the small business concern in 
meeting the goals listed in paragraph (1).’’; and 
(D) in paragraph (3)— 
(i) by inserting ‘‘(A)’’ after ‘‘paragraph (2)’’ each 
place that term appears;
H. R. 5515—254 
(ii) in subparagraph (A), by striking ‘‘$5,000 per 
year’’ each place that term appears and inserting 
‘‘$6,500 per year’’; 
(iii) in subparagraph (B)— 
(I) by striking ‘‘$5,000 per year’’ each place 
that term appears and inserting ‘‘$50,000 per 
project’’; and 
(II) in clause (ii), by striking ‘‘which shall be 
in addition to the amount of the recipient’s award’’ 
and inserting ‘‘which may, as determined appro-
priate by the head of the Federal agency, be 
included as part of the recipient’s award or be 
in addition to the amount of the recipient’s award’’; 
(iv) in subparagraph (C)— 
(I) by inserting ‘‘or business’’ after ‘‘technical’’; 
(II) by striking ‘‘the vendor’’ and inserting ‘‘a 
vendor’’; and 
(III) by adding at the end the following: ‘‘Busi-
ness-related services aimed at improving the 
commercialization success of a small business con-
cern may be obtained from an entity, such as 
a public or private organization or an agency of 
or other entity established or funded by a State 
that facilitates or accelerates the commercializa-
tion of technologies or assists in the creation and 
growth of private enterprises that are commer-
cializing technology.’’; 
(v) in subparagraph (D)— 
(I) by inserting ‘‘or business’’ after ‘‘technical’’ 
each place that term appears; and 
(II) in clause (i), by striking ‘‘the vendor’’ and 
inserting ‘‘1 or more vendors’’; and 
(vi) by adding at the end the following: 
‘‘(E) MULTIPLE AWARD RECIPIENTS.—The Administrator 
shall establish a limit on the amount of technical and 
business assistance services that may be received or pur-
chased under subparagraph (B) by a small business concern 
that has received multiple Phase II SBIR or STTR awards 
for a fiscal year.’’; and 
(E) by adding at the end the following: 
‘‘(4) ANNUAL REPORTING.— 
‘‘(A) IN
GENERAL.—A small business concern that 
receives technical or business assistance from a vendor 
under this subsection during a fiscal year shall submit 
to the Federal agency contracting with the vendor a descrip-
tion of the technical or business assistance provided and 
the benefits and results of the technical or business assist-
ance provided. 
‘‘(B) USE
OF
EXISTING
REPORTING
MECHANISM.—The 
information required under subparagraph (A) shall be col-
lected by a Federal agency as part of a report required 
to be submitted by small business concerns engaged in 
SBIR or STTR projects of the Federal agency for which 
the requirement was in effect on the date of enactment 
of this paragraph.’’. 
(2) REVIEW.—Not later than the end of fiscal year 2019, 
the Administrator of the Small Business Administration shall—
H. R. 5515—256 
‘‘(D) Not more than 180 days after receipt of a request 
for an equitable adjustment. 
‘‘(E) Not more than 365 days after receipt of a request 
for an equitable adjustment. 
‘‘(F) More than 365 days after receipt of a request 
for an equitable adjustment. 
‘‘(G) After the completion of the performance of the 
contract through a contract modification addressing all 
undefinitized requests for an equitable adjustment received 
during the term of the contract.’’. 
SEC. 856. COMPTROLLER GENERAL STUDY OF IMPACT OF BROADBAND 
SPEED AND PRICE ON SMALL BUSINESSES. 
(a) STUDY REQUIRED.—Subject to appropriations, the Comp-
troller General of the United States shall conduct a study evaluating 
the impact of broadband speed and price on small business concerns 
(as defined in section 3 of the Small Business Act (15 U.S.C. 
632)). 
(b) REPORT.—Not later than three years after the date of the 
enactment of this Act, the Comptroller General shall submit to 
the Committee on Commerce, Science, and Transportation and the 
Committee on Small Business and Entrepreneurship of the Senate 
and the Committee on Energy and Commerce and the Committee 
on Small Business of the House of Representatives a report on 
the results of the study under subsection (a), including— 
(1) a survey of broadband speeds available to small business 
concerns; 
(2) a survey of the cost of broadband speeds available 
to small business concerns; 
(3) a survey of the type of broadband technology used 
by small business concerns; and 
(4) any policy recommendations that may improve the 
access of small business concerns to comparable broadband 
services at comparable rates in all regions of the United States. 
SEC. 857. CONSOLIDATED BUDGET DISPLAY FOR THE DEPARTMENT 
OF DEFENSE SMALL BUSINESS INNOVATION RESEARCH 
PROGRAM AND SMALL BUSINESS TECHNOLOGY TRANSFER 
PROGRAM. 
(a) BUDGET DISPLAY SUBMISSION.—The Secretary of Defense, 
acting through the Under Secretary of Defense for Research and 
Engineering, shall include in the materials submitted to Congress 
by the Secretary of Defense in support of the budget of the President 
for each fiscal year (as submitted to Congress under section 1105 
of title 31, United States Code), a budget display for the funds 
assessed for the Small Business Innovation Research Program or 
the Small Business Technology Transfer Program (as such terms 
are defined, respectively, in section 9(e) of the Small Business 
Act (15 U.S.C. 638(e))) of the Department of Defense during the 
previous fiscal year. 
(b) BUDGET DISPLAY REQUIREMENTS.—The budget display under 
subsection (a) shall include— 
(1) for funds assessed, the amount obligated and expended, 
by appropriation and functional area, for the Small Business 
Innovation Research Program or the Small Business Technology 
Transfer Program; 
(2) information, by military department and other awarding 
organizations, on Phase I, II, and III awards;
H. R. 5515—257 
(3) to the extent practicable, specific processes, products, 
technologies, or services that were transitioned to acquisition 
programs of record, or other follow-on contracts; and 
(4) an estimate of the Small Business Innovation Research 
Program and the Small Business Technology Transfer Program 
funding to be assessed during the period covered by the current 
future-years defense program (as defined under section 221 
of title 10, United States Code). 
(c) FIRST SUBMISSION.—The first budget display under sub-
section (a) shall be included with the budget for the President 
for fiscal year 2020. 
(d) CONGRESSIONAL COMMITTEES.—The budget display under 
subsection (a) shall be submitted to the congressional defense 
committees, with copies provided to the Committee on Small Busi-
ness and Entrepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives. 
(e) TERMINATION.—The requirements of this section shall termi-
nate on December 31, 2022. 
(f) RULE OF CONSTRUCTION.—Nothing in this section shall be 
construed to modify or otherwise affect the requirement to expend 
amounts for the Small Business Innovation Research Program and 
the Small Business Technology Transfer Program of the Department 
of Defense under subsections (f) and (n) of section 9 of the Small 
Business Act (15 U.S.C. 638). 
SEC. 858. FUNDING FOR PROCUREMENT TECHNICAL ASSISTANCE PRO-
GRAM. 
(a) AMOUNT OF ASSISTANCE FROM SECRETARY.—Section 2413(b) 
of title 10, United States Code, is amended— 
(1) by striking ‘‘not more than 65 percent’’ and inserting 
‘‘not more than 75 percent’’; and 
(2) in paragraph (1), by striking ‘‘more than 65 percent, 
but not more than 75 percent’’ and inserting ‘‘more than 75 
percent, but not more than 85 percent’’. 
(b) FUNDING FOR ELIGIBLE ENTITIES.—Section 2414(a) of such 
title is amended— 
(1) in paragraph (1), by striking ‘‘$750,000’’ and inserting 
‘‘$1,000,000’’; 
(2) in paragraph (2), by striking ‘‘$450,000’’ and inserting 
‘‘$750,000’’; 
(3) in paragraph (3), by striking ‘‘$300,000’’ and inserting 
‘‘$450,000’’; and 
(4) in paragraph (4), by striking ‘‘$750,000’’ and inserting 
‘‘$1,000,000’’. 
SEC. 859. AUTHORIZATION FOR PAYMENT OF CERTAIN COSTS 
RELATING TO PROCUREMENT TECHNICAL ASSISTANCE 
CENTERS. 
(a) AUTHORIZATION TO PAY COSTS RELATING TO MEETINGS OF 
ELIGIBLE ENTITIES.—Section 2417 of title 10, United States Code, 
is amended— 
(1) in the heading, by inserting ‘‘and other’’ after 
‘‘Administrative’’; 
(2) by striking ‘‘chapter, an amount’’ and inserting 
‘‘chapter— 
‘‘(1) an amount’’; 
(3) by striking the period at the end and inserting ‘‘; and’’; 
and
H. R. 5515—258 
(4) by adding at the end the following new paragraph: 
‘‘(2) an amount determined appropriate by the Director 
to assist eligible entities in payment of costs of eligible entities 
— 
‘‘(A) for meetings to discuss best practices for the 
improvement of the operations of procurement technical 
assistance centers; and 
‘‘(B) for membership dues for any association of such 
centers created by eligible entities, training fees and associ-
ated travel for training to carry out the purposes of this 
chapter, and voluntary participation on any committees 
or board of such an association.’’. 
(b) BRIEFING.—Not later than six months after the date of 
the enactment of this Act, the Director of the Defense Logistics 
Agency shall brief the congressional defense committees on the 
recognition or lack of recognition by the Department of Defense 
of procurement technical assistance center associations and the 
rationale for the recognition or lack of recognition, including a 
discussion of whether the Department needs authority to recognize 
such associations. 
SEC. 860. COMMERCIALIZATION ASSISTANCE PILOT PROGRAM. 
Section 9 of the Small Business Act (15 U.S.C. 638) is amended 
by adding at the end the following new subsection: 
‘‘(uu) COMMERCIALIZATION ASSISTANCE PILOT PROGRAMS.— 
‘‘(1) PILOT PROGRAMS IMPLEMENTED.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), not later than one year after the date of the enactment 
of this subsection, a covered agency shall implement a 
commercialization assistance pilot program, under which 
an eligible entity may receive a subsequent Phase II SBIR 
award. 
‘‘(B) EXCEPTION.—If the Administrator determines that 
a covered agency has a program that is sufficiently similar 
to the commercialization assistance pilot program estab-
lished under this subsection, such covered agency shall 
not be required to implement a commercialization assist-
ance pilot program under this subsection. 
‘‘(2) PERCENT OF AGENCY FUNDS.—The head of each covered 
agency may allocate not more than 5 percent of the funds 
allocated to the SBIR program of the covered agency for the 
purpose of making a subsequent Phase II SBIR award under 
the commercialization assistance pilot program. 
‘‘(3) TERMINATION.—A commercialization assistance pilot 
program established under this subsection shall terminate on 
September 30, 2022. 
‘‘(4) APPLICATION.—To be selected to receive a subsequent 
Phase II SBIR award under a commercialization assistance 
pilot program, an eligible entity shall submit to the covered 
agency implementing such pilot program an application at such 
time, in such manner, and containing such information as 
the covered agency may require, including— 
‘‘(A) an updated Phase II commercialization plan; and 
‘‘(B) the source and amount of the matching funding 
required under paragraph (5). 
‘‘(5) MATCHING FUNDING.—
H. R. 5515—259 
‘‘(A) IN
GENERAL.—The Administrator shall require, 
as a condition of any subsequent Phase II SBIR award 
made to an eligible entity under this subsection, that a 
matching amount (excluding any fees collected by the 
eligible entity receiving such award) equal to the amount 
of such award be provided from an eligible third-party 
investor. 
‘‘(B) INELIGIBLE SOURCES.—An eligible entity may not 
use funding from ineligible sources to meet the matching 
requirement of subparagraph (A). 
‘‘(6) AWARD.—A subsequent Phase II SBIR award made 
to an eligible entity under this subsection— 
‘‘(A) may not exceed the limitation described under 
subsection (aa)(1); and 
‘‘(B) shall be disbursed during Phase II. 
‘‘(7) USE
OF
FUNDS.—The funds awarded to an eligible 
entity under this subsection may only be used for research 
and development activities that build on eligible entity’s Phase 
II program and ensure the research funded under such Phase 
II is rapidly progressing towards commercialization. 
‘‘(8) SELECTION.—In selecting eligible entities to participate 
in a commercialization assistance pilot program under this 
subsection, the head of a covered agency shall consider— 
‘‘(A) the extent to which such award could aid the 
eligible entity in commercializing the research funded 
under the eligible entity’s Phase II program; 
‘‘(B) whether the updated Phase II commercialization 
plan submitted under paragraph (4) provides a sound 
approach for establishing technical feasibility that could 
lead to commercialization of such research; 
‘‘(C) whether the proposed activities to be conducted 
under such updated Phase II commercialization plan fur-
ther improve the likelihood that such research will provide 
societal benefits; 
‘‘(D) whether the small business concern has pro-
gressed satisfactorily in Phase II to justify receipt of a 
subsequent Phase II SBIR award; 
‘‘(E) the expectations of the eligible third-party investor 
that provides matching funding under paragraph (5); and 
‘‘(F) the likelihood that the proposed activities to be 
conducted under such updated Phase II commercialization 
plan using matching funding provided by such eligible 
third-party investor will lead to commercial and societal 
benefit. 
‘‘(9) EVALUATION REPORT.—Not later than 6 years after 
the date of the enactment of this subsection, the Comptroller 
General of the United States shall submit to the Committee 
on Science, Space, and Technology and the Committee on Small 
Business of the House of Representatives, and the Committee 
on Small Business and Entrepreneurship of the Senate, a report 
including— 
‘‘(A) a summary of the activities of commercialization 
assistance pilot programs carried out under this subsection; 
‘‘(B) a detailed compilation of results achieved by such 
commercialization assistance pilot programs, including the 
number of eligible entities that received awards under such 
programs;
H. R. 5515—260 
‘‘(C) the rate at which each eligible entity that received 
a subsequent Phase II SBIR award under this subsection 
commercialized research of the recipient; 
‘‘(D) the growth in employment and revenue of eligible 
entities that is attributable to participation in a commer-
cialization assistance pilot program; 
‘‘(E) a comparison of commercialization success of 
eligible entities participating in a commercialization assist-
ance pilot program with recipients of an additional Phase 
II SBIR award under subsection (ff); 
‘‘(F) demographic information, such as ethnicity and 
geographic location, of eligible entities participating in a 
commercialization assistance pilot program; 
‘‘(G) an accounting of the funds used at each covered 
agency that implements a commercialization assistance 
pilot program under this subsection; 
‘‘(H) the amount of matching funding provided by 
eligible third-party investors, set forth separately by source 
of funding; 
‘‘(I) an analysis of the effectiveness of the commer-
cialization assistance pilot program implemented by each 
covered agency; and 
‘‘(J) recommendations for improvements to the commer-
cialization assistance pilot program. 
‘‘(10) DEFINITIONS.—For purposes of this subsection: 
‘‘(A) COVERED
AGENCY.—The term ‘covered agency’ 
means a Federal agency required to have an SBIR program. 
‘‘(B) ELIGIBLE ENTITY.—The term ‘eligible entity’ means 
a small business concern that has received a Phase II 
award under an SBIR program and an additional Phase 
II SBIR award under subsection (ff) from the covered 
agency to which such small business concern is applying 
for a subsequent Phase II SBIR award. 
‘‘(C) ELIGIBLE
THIRD-PARTY
INVESTOR.—The term 
‘eligible third-party investor’ means a small business con-
cern other than an eligible entity, a venture capital firm, 
an individual investor, a non-SBIR Federal, State or local 
government, or any combination thereof. 
‘‘(D) INELIGIBLE SOURCES.—The term ‘ineligible sources’ 
means the following: 
‘‘(i) The eligible entity’s internal research and 
development funds. 
‘‘(ii) Funding in forms other than cash, such as 
in-kind or other intangible assets. 
‘‘(iii) Funding from the owners of the eligible entity, 
or the family members or affiliates of such owners. 
‘‘(iv) Funding attained through loans or other 
forms of debt obligations. 
‘‘(E) SUBSEQUENT PHASE II SBIR AWARD.—The term ‘sub-
sequent Phase II SBIR award’ means an award granted 
to an eligible entity under this subsection to carry out 
further commercialization activities for research conducted 
pursuant to an SBIR program.’’.
H. R. 5515—261 
SEC. 861. PUERTO RICO BUSINESSES. 
(a) DEFINITION OF PUERTO RICO BUSINESS.—Section 3 of the 
Small Business Act (15 U.S.C. 632) is amended by adding at the 
end the following new subsection: 
‘‘(ee) PUERTO RICO BUSINESS.—In this Act, the term ‘Puerto 
Rico business’ means a small business concern that has its principal 
office located in the Commonwealth of Puerto Rico.’’. 
(b) SMALL BUSINESS CREDIT FOR PUERTO RICO BUSINESSES.— 
Section 15 of the Small Business Act (15 U.S.C. 644) is amended 
by adding at the end the following new subsection: 
‘‘(x) SMALL BUSINESS CREDIT FOR PUERTO RICO BUSINESSES.— 
‘‘(1) CREDIT
FOR
MEETING
CONTRACTING
GOALS.—If an 
agency awards a prime contract to Puerto Rico business during 
the period beginning on the date of enactment of this subsection 
and ending on the date that is 4 years after such date of 
enactment, the value of the contract shall be doubled for pur-
poses of determining compliance with the goals for procurement 
contracts under subsection (g)(1)(A)(i) during such period. 
‘‘(2) REPORT.—Along with the report required under sub-
section (h)(1), the head of each Federal agency shall submit 
to the Administrator, and make publicly available on the score-
card described in section 868(b) of the National Defense 
Authorization Act for Fiscal Year 2016 (15 U.S.C. 644 note), 
an analysis of the number and dollar amount of prime contracts 
awarded pursuant to paragraph (1) for each fiscal year of 
the period described in such paragraph.’’. 
(c) PRIORITY
FOR
SURPLUS
PROPERTY
TRANSFERS.—Section 
7(j)(13)(F) of the Small Business Act (15 U.S.C. 636(j)(13)(F)) is 
amended by adding at the end the following new clause: 
‘‘(iii)(I) In this clause, the term ‘covered period’ means 
the period beginning on the date of enactment of this clause 
and ending on the date on which the Oversight Board estab-
lished under section 101 of the Puerto Rico Oversight, Manage-
ment, and Economic Stability Act (48 U.S.C. 2121) terminates. 
‘‘(II) The Administrator may transfer technology or surplus 
property under clause (i) to a Puerto Rico business if the 
Puerto Rico business meets the requirements for such a 
transfer, without regard to whether the Puerto Rico business 
is a Program Participant.’’. 
(d) CONTRACTING INCENTIVES FOR PROTEGE FIRMS THAT ARE 
PUERTO RICO BUSINESSES.— 
(1) IN GENERAL.—Section 45(a) of the Small Business Act 
(15 U.S.C. 657r(a)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(3) PUERTO RICO BUSINESSES.—During the period begin-
ning on the date of enactment of this paragraph and ending 
on the date on which the Oversight Board established under 
section 101 of the Puerto Rico Oversight, Management, and 
Economic Stability Act (48 U.S.C. 2121) terminates, the 
Administrator shall identify potential incentives to a covered 
mentor that awards a subcontract to its covered protege, 
including— 
‘‘(A) positive consideration in any past performance 
evaluation of the covered mentor; and 
‘‘(B) the application of costs incurred for providing 
training to such covered protege to the subcontracting plan
H. R. 5515—262 
(as required under paragraph (4) or (5) of section 8(d)) 
of the covered mentor.’’. 
(2) DEFINITIONS.—Section 45(d) of the Small Business Act 
(15 U.S.C. 657r(d)) is amended by adding at the end the fol-
lowing new paragraphs: 
‘‘(4) COVERED MENTOR.—The term ‘covered mentor’ means 
a mentor that enters into an agreement under this Act, or 
under any mentor-protege program approved under subsection 
(b)(1), with a covered protege. 
‘‘(5) COVERED PROTEGE.—The term ‘covered protege’ means 
a protege of a covered mentor that is a Puerto Rico business.’’. 
(e) ADDITIONAL MENTOR-PROTEGE RELATIONSHIPS FOR PROTEGE 
FIRMS THAT ARE PUERTO RICO BUSINESSES.—Section 45(b)(3)(A) 
of the Small Business Act (15 U.S.C. 657r(b)(3)(A)) is amended 
by inserting ‘‘, except that such restrictions shall not apply to 
up to 2 mentor-protege relationships if such relationships are 
between a covered protege and covered mentor’’ after ‘‘each partici-
pant’’. 
SEC. 862. OPPORTUNITIES FOR EMPLOYEE-OWNED BUSINESS CON-
CERNS THROUGH SMALL BUSINESS ADMINISTRATION 
LOAN PROGRAMS. 
(a) DEFINITIONS.—In this Act— 
(1) the terms ‘‘Administration’’ and ‘‘Administrator’’ means 
the Small Business Administration and the Administrator 
thereof, respectively; 
(2) the term ‘‘cooperative’’ means an entity that is deter-
mined to be a cooperative by the Administrator, in accordance 
with applicable Federal and State laws and regulations; 
(3) the term ‘‘employee-owned business concern’’ means— 
(A) a cooperative; and 
(B) a qualified employee trust; 
(4) the terms ‘‘qualified employee trust’’ and ‘‘small business 
concern’’ have the meanings given those terms in section 3 
of the Small Business Act (15 U.S.C. 632); and 
(5) the term ‘‘small business development center’’ means 
a small business development center described in section 21 
of the Small Business Act (15 U.S.C. 648). 
(b) EXPANSION OF 7(A) LOANS.— 
(1) IN GENERAL.—Section 7(a) of the Small Business Act 
(15 U.S.C. 636(a)) is amended— 
(A) in paragraph (15)— 
(i) in subparagraph (A)— 
(I) by striking ‘‘this subsection to qualified 
employee trusts’’ and inserting ‘‘this subsection— 
‘‘(i) to qualified employee trusts’’; 
(II) in clause (i), as so designated— 
(aa) by inserting ‘‘, and for any transaction 
costs associated with purchasing,’’ after ‘‘pur-
chasing’’; 
(bb) by striking the period at the end and 
inserting ‘‘; and’’; and 
(III) by adding at the end the following: 
‘‘(ii) to a small business concern under a plan approved 
by the Administrator, if the proceeds from the loan are 
only used to make a loan to a qualified employee trust, 
and for any transaction costs associated with making that
H. R. 5515—263 
loan, that results in the qualified employee trust owning 
at least 51 percent of the small business concern.’’; 
(ii) in subparagraph (B)— 
(I) in the matter preceding clause (i), by 
inserting ‘‘or by the small business concern’’ after 
‘‘the trustee of such trust’’; 
(II) in clause (ii), by striking ‘‘and’’ at the 
end; 
(III) in clause (iii), by striking the period at 
the end and inserting ‘‘, and’’; and 
(IV) by adding at the end the following: 
‘‘(iv) with respect to a loan made to a trust, or to 
a cooperative in accordance with paragraph (35)— 
‘‘(I) a seller of the small business concern may 
remain involved as an officer, director, or key employee 
of the small business concern when a qualified 
employee trust or cooperative has acquired 100 percent 
of ownership of the small business concern; and 
‘‘(II) any seller of the small business concern who 
remains as an owner of the small business concern, 
regardless of the percentage of ownership interest, 
shall be required to provide a personal guarantee by 
the Administration.’’; and 
(iii) by adding at the end the following: 
‘‘(F) A small business concern that makes a loan to a 
qualified employee trust under subparagraph (A)(ii) is not 
required to contain the same terms and conditions as the loan 
made to the small business concern that is guaranteed by 
the Administration under such subparagraph. 
‘‘(G) With respect to a loan made to a qualified employee 
trust under this paragraph, or to a cooperative in accordance 
with paragraph (35), the Administrator may, as deemed appro-
priate, elect to not require any mandatory equity to be provided 
by the qualified employee trust or cooperative to make the 
loan.’’; and 
(B) by adding at the end the following: 
‘‘(35) LOANS TO COOPERATIVES.— 
‘‘(A) DEFINITION.—In this paragraph, the term ‘coopera-
tive’ means an entity that is determined to be a cooperative 
by the Administrator, in accordance with applicable Federal 
and State laws and regulation. 
‘‘(B) AUTHORITY.—The Administration shall guarantee 
loans made to a cooperative for the purpose described in 
paragraph (15).’’. 
(2) DELEGATION OF AUTHORITY TO PREFERRED LENDERS.— 
Section 5(b)(7) of the Small Business Act (15 U.S.C. 634(b)(7)) 
is amended by inserting ‘‘, including loans guaranteed under 
paragraph (15) or (35) of section 7(a)’’ after ‘‘deferred participa-
tion loans’’. 
(c) SMALL BUSINESS INVESTMENT COMPANY PROGRAM OUT-
REACH.—The Administrator shall provide outreach and educational 
materials to companies licensed under section 301(c) of the Small 
Business Investment Act of 1958 (15 U.S.C. 681(c)) to increase 
the use of funds to make investments in company transitions to 
employee-owned business concerns. 
(d) SMALL BUSINESS MICROLOAN PROGRAM OUTREACH.—The 
Administrator shall provide outreach and educational materials
H. R. 5515—264 
to intermediaries under section 7(m) of the Small Business Act 
(15 U.S.C. 636(m)) to increase the use of funds to make loans 
to employee-owned business concerns, including transitions to 
employee-owned business concerns. 
(e) SMALL BUSINESS DEVELOPMENT CENTER OUTREACH
AND 
ASSISTANCE.— 
(1) ESTABLISHMENT.—The Administrator shall establish a 
Small Business Employee Ownership and Cooperatives Pro-
motion Program to offer technical assistance and training on 
the transition to employee ownership through cooperatives and 
qualified employee trusts. 
(2) SMALL BUSINESS DEVELOPMENT CENTERS.— 
(A) IN GENERAL.—In carrying out the program estab-
lished under subsection (a), the Administrator shall enter 
into agreements with small business development centers 
under which the centers shall— 
(i) provide access to information and resources on 
employee ownership through cooperatives or qualified 
employee trusts as a business succession strategy; 
(ii) conduct training and educational activities; and 
(iii) carry out the activities described in subpara-
graph (U) of section 21(c)(3) of the Small Business 
Act (15 U.S.C. 648(c)(3)). 
(B) ADDITIONAL
SERVICES.—Section 21(c)(3) of the 
Small Business Act (15 U.S.C. 648(c)(3)) is amended— 
(i) in subparagraph (S), by striking ‘‘and’’ at the 
end; 
(ii) in subparagraph (T), by striking the period 
at the end and inserting ‘‘; and’’; and 
(iii) by adding at the end the following: 
‘‘(U) encouraging and assisting the provision of succession 
planning to small business concerns with a focus on 
transitioning to cooperatives, as defined in section 7(a)(35), 
and qualified employee trusts (collectively referred to in this 
subparagraph 
as 
‘employee-owned 
business 
concerns’), 
including by— 
‘‘(i) providing training to individuals to promote the 
successful management, governance, or operation of a busi-
ness purchased by those individuals in the formation of 
an employee-owned business concern; 
‘‘(ii) assisting employee-owned business concerns that 
meet applicable size standards established under section 
3(a) with education and technical assistance with respect 
to financing and contracting programs administered by the 
Administration; 
‘‘(iii) coordinating with lenders on conducting outreach 
on financing through programs administered by the 
Administration that may be used to support the transition 
of ownership to employees; 
‘‘(iv) supporting small business concerns in exploring 
or assessing the possibility of transitioning to an employee- 
owned business concern; and 
‘‘(v) coordinating with the cooperative development cen-
ters of the Department of Agriculture, the land grant exten-
sion network, the Manufacturing Extension Partnership, 
community development financial institutions, employee
H. R. 5515—265 
ownership associations and service providers, and local, 
regional and national cooperative associations.’’. 
(f) AMENDMENT
TO
REPORT
TO
CONGRESS
ON
STATUS
OF 
EMPLOYEE-OWNED FIRMS.—Section 7(a)(15)(E) of the Small Busi-
ness Act (15 U.S.C. 636(a)(15)(E)) is amended by striking ‘‘Adminis-
tration.’’ and inserting ‘‘Administration, which shall include— 
‘‘(i) the total number of loans made to employee- 
owned business concerns that were guaranteed by the 
Administrator under section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)) or section 502 of the Small 
Business Investment Act of 1958 (15 U.S.C. 696), 
including the number of loans made— 
‘‘(I) to small business concerns owned and con-
trolled by socially and economically disadvantaged 
individuals; and 
‘‘(II) to cooperatives; 
‘‘(ii) the total number of financings made to 
employee-owned business concerns by companies 
licensed under section 301(c) of the Small Business 
Investment Act of 1958 (15 U.S.C. 696(c)), including 
the number of financings made— 
‘‘(I) to small business concerns owned and con-
trolled by socially and economically disadvantaged 
individuals; and 
‘‘(II) to cooperatives; and 
‘‘(iii) any outreach and educational activities con-
ducted by the Administration with respect to employee- 
owned business concerns.’’. 
(g) REPORT ON COOPERATIVE LENDING.— 
(1) SENSE OF CONGRESS.—It is the sense of Congress that 
cooperatives have a unique business structure and are unable 
to access the lending programs of the Administration effectively 
due to loan guarantee requirements that are incompatible with 
the business structure of cooperatives. 
(2) STUDY AND REPORT.— 
(A) STUDY.—The Administrator, in coordination with 
lenders, stakeholders, and Federal agencies, shall study 
and recommend practical alternatives for cooperatives that 
will satisfy the loan guarantee requirements of the 
Administration. 
(B) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Administrator shall submit 
to Congress the recommendations developed under para-
graph (1) and a plan to implement such recommendations. 
(h) AMENDMENT
TO
DEFINITION
OF
QUALIFIED
EMPLOYEE 
TRUST.—Section 3(c)(2)(A)(ii) of the Small Business Act (15 U.S.C. 
632(c)(2)(A)(ii)) is amended to read as follows: 
‘‘(ii) which provides that each participant is entitled 
to direct the plan trustee as to the manner of how to 
vote the qualified employer securities (as defined in section 
4975(e)(8) of the Internal Revenue Code of 1986), which 
are allocated to the account of such participant with respect 
to a corporate matter which (by law or charter) must be 
decided by a vote conducted in accordance with section 
409(e) of the Internal Revenue Code of 1986; and’’.
H. R. 5515—266 
Subtitle G—Provisions Related to Software 
and Technical Data Matters 
SEC. 865. VALIDATION OF PROPRIETARY AND TECHNICAL DATA. 
Section 2321(f) of title 10, United States Code, is amended— 
(1) by striking ‘‘(1) Except as provided in paragraph (2), 
in’’ and inserting ‘‘In’’; and 
(2) by striking paragraph (2). 
SEC. 866. CONTINUATION OF TECHNICAL DATA RIGHTS DURING CHAL-
LENGES. 
(a) EXERCISE OF RIGHTS IN TECHNICAL DATA BEFORE FINAL 
DISPOSITION OF A CHALLENGE.—Section 2321(i) of title 10, United 
States Code, is amended— 
(1) in the subsection heading, by inserting ‘‘PRIOR TO AND’’ 
after ‘‘RIGHTS AND LIABILITY’’; 
(2) by redesignating paragraphs (1) and (2) as paragraphs 
(2) and (3), respectively; and 
(3) by inserting before paragraph (2), as so redesignated, 
the following new paragraph: 
‘‘(1) Upon filing of a suit or appeal under the contract dispute 
statute by a contractor or subcontractor in an agency Board of 
Contract Appeals or United States Claims Court related to a deci-
sion made by a contracting officer under subsection (g), the Sec-
retary of Defense, or a Secretary of a military department for 
programs for which milestone decision authority has been delegated, 
on a nondelegable basis, may, following notice to the contractor 
or subcontractor, authorize use of the technical data in dispute 
if the Secretary determines in writing that compelling mission 
readiness requirements will not permit awaiting the final decision 
by the agency Board of Contract Appeals or the United States 
Claims Court.’’. 
(b) REVISION OF THE DEFENSE FEDERAL ACQUISITION REGULA-
TION SUPPLEMENT.—Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall revise the 
Defense Federal Acquisition Regulation Supplement, by interim 
or final rule, to implement the amendments made by subsection 
(a). 
(c) EFFECTIVE DATE.—The amendments made by subsection 
(a) and the revision required by subsection (b) shall become effective 
on the date of publication of the interim or final rule (whichever 
is earlier) required by subsection (b) and shall apply to solicitations 
issued by Department of Defense contracting activities after that 
date unless the senior procurement executive of the agency con-
cerned grants a waiver on a case-by-case basis. 
(d) GUIDANCE ON TECHNICAL DATA RIGHT NEGOTIATION.—The 
Secretary of Defense shall develop policies on the negotiation of 
technical data rights for noncommercial software that reflects the 
Department of Defense’s needs for technical data rights in the 
event of a protest or replacement of incumbent contractor to meet 
defense requirements in the most cost effective manner. 
SEC. 867. REQUIREMENT FOR NEGOTIATION OF TECHNICAL DATA 
PRICE BEFORE SUSTAINMENT OF MAJOR WEAPON SYS-
TEMS. 
Section 2439 of title 10, United States Code, is amended—
H. R. 5515—267 
(1) by inserting ‘‘, to the maximum extent practicable,’’ 
after ‘‘shall ensure’’; 
(2) by striking ‘‘or for the production of a major weapon 
system’’ and inserting ‘‘production of a major weapon system, 
or sustainment of a major weapon system’’; 
(3) by striking ‘‘or production’’ and inserting ‘‘, production, 
or sustainment’’; and 
(4) in the heading, by striking ‘‘or production’’ and 
inserting ‘‘, production, or sustainment’’. 
SEC. 868. IMPLEMENTATION OF RECOMMENDATIONS OF THE FINAL 
REPORT OF THE DEFENSE SCIENCE BOARD TASK FORCE 
ON THE DESIGN AND ACQUISITION OF SOFTWARE FOR 
DEFENSE SYSTEMS. 
(a) IMPLEMENTATION REQUIRED.—Not later than 18 months 
after the date of the enactment of this Act, the Secretary of Defense 
shall, except as provided under subsection (b), commence 
implementation of each recommendation submitted as part of the 
final report of the Defense Science Board Task Force on the Design 
and Acquisition of Software for Defense Systems. 
(b) EXCEPTIONS.— 
(1) DELAYED IMPLEMENTATION.—The Secretary of Defense 
may commence implementation of a recommendation described 
under subsection (a) later than the date required under such 
subsection if the Secretary provides the congressional defense 
committees with a specific justification for the delay in 
implementation of such recommendation. 
(2) NONIMPLEMENTATION.—The Secretary of Defense may 
opt not to implement a recommendation described under sub-
section (a) if the Secretary provides to the congressional defense 
committees— 
(A) the reasons for the decision not to implement the 
recommendation; and 
(B) a summary of the alternative actions the Secretary 
plans to take to address the purposes underlying the rec-
ommendation. 
(c) IMPLEMENTATION PLANS.—For each recommendation that 
the Secretary is implementing, or that the Secretary plans to imple-
ment, the Secretary shall submit to the congressional defense 
committees— 
(1) a summary of actions that have been taken to imple-
ment the recommendation; and 
(2) a schedule, with specific milestones, for completing the 
implementation of the recommendation. 
SEC. 869. IMPLEMENTATION OF PILOT PROGRAM TO USE AGILE OR 
ITERATIVE DEVELOPMENT METHODS REQUIRED UNDER 
SECTION 873 OF THE NATIONAL DEFENSE AUTHORIZATION 
ACT FOR FISCAL YEAR 2018. 
(a) IN GENERAL.—Not later than 30 days after the date of 
the enactment of this Act, the Secretary of Defense shall include 
the following systems in the pilot program to use agile or iterative 
development methods pursuant to section 873 of the National 
Defense Authorization Act for Fiscal Year 2018 (Public Law 115– 
91; 10 U.S.C. 2223a note): 
(1) Defense Retired and Annuitant Pay System 2 (DRAS2), 
Defense Logistics Agency.
H. R. 5515—268 
(2) Army Integrated Air and Missile Defense (AIAMD), 
Army. 
(3) Army Contract Writing System (ACWS), Army. 
(4) Defense Enterprise Accounting and Management 
System (DEAMS) Inc2, Air Force. 
(5) Item Master, Air Force. 
(b) ADDITIONS TO LIST.—Not later than 30 days after the date 
of the enactment of this Act, the Secretary of Defense shall identify 
three additional systems for participation in the pilot program 
pursuant to section 873 of the National Defense Authorization 
Act for Fiscal Year 2018 (Public Law 115–91; 10 U.S.C. 2223a 
note) and notify the congressional defense committees of the addi-
tions. 
(c) COMMUNITY OF PRACTICE ADVISING ON AGILE OR ITERATIVE 
DEVELOPMENT.—The Under Secretary of Defense for Acquisition 
and Sustainment shall establish a Community of Practice on agile 
or iterative methods so that programs that have been incorporating 
agile or iterative methods can share with programs participating 
in the pilot the lessons learned, best practices, and recommenda-
tions for improvements to acquisition and supporting processes. 
The Service Acquisition Executives of the military departments 
shall send representation from the following programs, which have 
reported using agile or iterative methods: 
(1) Air and Space Operations Center (AOC). 
(2) Command Control Battle Management and Communica-
tions (C2BMC). 
(3) The family of Distributed Common Ground Systems. 
(4) The family of Global Command and Control Systems. 
(5) Navy Personnel and Pay (NP2). 
(6) Other programs and activities as appropriate. 
(d) REPORT.—Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall report to 
the congressional defense committees on the status of the pilot 
program and each system participating in the pilot. The report 
shall include the following elements: 
(1) A description of how cost and schedule estimates in 
support of the program are being conducted and using what 
methods. 
(2) The contracting strategy and types of contracts that 
will be used in executing the program. 
(3) A description of how intellectual property ownership 
issues associated with software applications developed with 
agile or iterative methods will be addressed to ensure future 
sustainment, maintenance, and upgrades to software applica-
tions after the applications are fielded. 
(4) A description of the tools and software applications 
that are expected to be developed for the program and the 
costs and cost categories associated with each. 
(5) A description of challenges the program has faced in 
realigning the program to use agile or iterative methods. 
(e) MODIFICATIONS TO PILOT PROGRAM SELECTION CRITERIA.— 
Section 873(a)(3)(B) of the National Defense Authorization Act for 
Fiscal Year 2018 (Public Law 115–91; 10 U.S.C. 2223a note) is 
amended— 
(1) by inserting ‘‘or subsystems’’ after ‘‘In selecting sys-
tems’’;
H. R. 5515—269 
(2) in clause (i)(II), by striking ‘‘; and’’ and inserting ‘‘; 
or’’; and 
(3) in clause (ii)(II), by striking ‘‘; and’’ and inserting ‘‘; 
or’’. 
SEC. 870. REPORT ON REQUIRING ACCESS TO DIGITAL TECHNICAL 
DATA IN FUTURE ACQUISITIONS OF COMBAT, COMBAT 
SERVICE, AND COMBAT SUPPORT SYSTEMS. 
Not later than 120 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to the congressional 
defense committees a report on the feasibility and advisability 
of requiring access to digital technical data in all future acquisitions 
by the Department of Defense of combat, combat service, and com-
bat support systems, including front-end negotiations for such 
access. Such report shall include a digital data standard for tech-
nical data for use by equipment manufacturers and the Department 
with regard to three-dimensional printed parts. 
Subtitle H—Other Matters 
SEC. 871. PROHIBITION ON ACQUISITION OF SENSITIVE MATERIALS 
FROM NON-ALLIED FOREIGN NATIONS. 
(a) IN GENERAL.—Subchapter V of chapter 148 of title 10, 
United States Code, is amended by inserting after section 2533b 
the following new section: 
‘‘§ 2533c. Prohibition on acquisition of sensitive materials 
from non-allied foreign nations 
‘‘(a) IN GENERAL.—Except as provided in subsection (c), the 
Secretary of Defense may not— 
‘‘(1) procure any covered material melted or produced in 
any covered nation, or any end item that contains a covered 
material manufactured in any covered nation, except as pro-
vided by subsection (c); or 
‘‘(2) sell any covered material from the National Defense 
Stockpile, if the National Defense Stockpile Manager deter-
mines that such a sale is not in the national interests of 
the United States, to— 
‘‘(A) any covered nation; or 
‘‘(B) any third party that the Secretary reasonably 
believes is acting as a broker or agent for a covered nation 
or an entity in a covered nation. 
‘‘(b) APPLICABILITY.—Subsection (a) shall apply to prime con-
tracts and subcontracts at any tier. 
‘‘(c) EXCEPTIONS.—Subsection (a) does not apply under the fol-
lowing circumstances: 
‘‘(1) If the Secretary of Defense determines that covered 
materials of satisfactory quality and quantity, in the required 
form, cannot be procured as and when needed at a reasonable 
price. 
‘‘(2) To the procurement of an end item described in sub-
section (a)(1) or the sale of any covered material described 
under subsection (a)(1) by the Secretary outside of the United 
States for use outside of the United States. 
‘‘(3) To the purchase by the Secretary of an end item 
containing a covered material that is—
H. R. 5515—270 
‘‘(A) a commercially available off-the-shelf item (as 
defined in section 104 of title 41), other than— 
‘‘(i) a commercially available off-the-shelf item that 
is 50 percent or more tungsten by weight; or 
‘‘(ii) a mill product, such as bar, billet, slab, wire, 
cube, sphere, block, blank, plate, or sheet, that has 
not been incorporated into an end item, subsystem, 
assembly, or component; 
‘‘(B) an electronic device, unless the Secretary of 
Defense, upon the recommendation of the Strategic Mate-
rials Protection Board pursuant to section 187 of this title, 
determines that the domestic availability of a particular 
electronic device is critical to national security; or 
‘‘(C) a neodymium-iron-boron magnet manufactured 
from recycled material if the milling of the recycled mate-
rial and sintering of the final magnet takes place in the 
United States. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) COVERED
MATERIAL.—The term ‘covered material’ 
means— 
‘‘(A) samarium-cobalt magnets; 
‘‘(B) neodymium-iron-boron magnets; 
‘‘(C) tungsten metal powder; and 
‘‘(D) tungsten heavy alloy or any finished or semi- 
finished component containing tungsten heavy alloy. 
‘‘(2) COVERED NATION.—The term ‘covered nation’ means— 
‘‘(A) the Democratic People’s Republic of North Korea; 
‘‘(B) the People’s Republic of China; 
‘‘(C) the Russian Federation; and 
‘‘(D) the Islamic Republic of Iran. 
‘‘(3) END ITEM.—The term ‘end item’ has the meaning given 
in section 2533b(m) of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of contents at the begin-
ning of such subchapter is amended by inserting after the item 
relating to section 2533b the following item: 
‘‘2533c. Prohibition on acquisition of sensitive materials from non-allied foreign na-
tions.’’. 
SEC. 872. EXTENSION OF PROHIBITION ON PROVIDING FUNDS TO THE 
ENEMY. 
Section 841(n) of the Carl Levin and Howard P. ‘‘Buck’’ McKeon 
National Defense Authorization Act for Fiscal Year 2015 (Public 
Law 113–291; 127 Stat. 3455; 10 U.S.C. 2302 note) is amended 
by striking ‘‘December 31, 2019’’ and inserting ‘‘December 31, 2021’’. 
SEC. 873. DATA, POLICY, AND REPORTING ON THE USE OF OTHER 
TRANSACTIONS. 
(a) COLLECTION AND STORAGE.—The Service Acquisition Execu-
tives of the military departments shall collect data on the use 
of other transactions by their respective departments, and the 
Under Secretary of Defense for Research and Engineering and 
the Under Secretary of Defense for Acquisition and Sustainment 
shall collect data on all other use by the Department of Defense 
of other transactions, including use by the Defense Agencies. The 
data shall be stored in a manner that allows the Assistant Secretary 
of Defense for Acquisition and other appropriate officials access 
at any time.
H. R. 5515—271 
(b) USE
OF DATA.—The Assistant Secretary of Defense for 
Acquisition shall analyze and leverage the data collected under 
subsection (a) to update policy and guidance related to the use 
of other transactions. 
(c) REPORT REQUIRED.—Not later than December 31, 2018, 
and each December 31 thereafter through December 31, 2021, the 
Secretary of Defense shall submit to the congressional defense 
committees a report covering the preceding fiscal year on the 
Department’s use of other transaction authority. Each report shall 
summarize and display the data collected under subsection (a) 
on the nature and extent of the use of the authority, including 
a summary and detail showing— 
(1) organizations involved, quantities, amounts of pay-
ments, and purpose, description, and status of projects; and 
(2) highlights of successes and challenges using the 
authority, including case examples. 
SEC. 874. STANDARDIZATION OF FORMATTING AND PUBLIC ACCESSI-
BILITY OF DEPARTMENT OF DEFENSE REPORTS TO CON-
GRESS. 
(a) REPORT FORMATTING PLAN REQUIRED.—Not later than 
March 1, 2019, the Secretary of Defense shall provide a plan to 
the congressional defense committees on activities to standardize 
the formatting of unclassified Department of Defense reports 
required by Congress. Such plan shall include— 
(1) a description of the method for ensuring that reports 
are created in a platform-independent, machine-readable format 
that can be retrieved, downloaded, indexed, and searched by 
commonly used web search applications; and 
(2) a cost estimate and schedule for implementation of 
the activities under paragraph (1), with a completion date of 
not later than March 1, 2020. 
(b) ONLINE REPOSITORY PLAN REQUIRED.—Not later than March 
1, 2019, the Secretary of Defense shall provide a briefing to the 
congressional defense committees on the feasibility of developing 
a publically accessible online repository of unclassified reports of 
the Department of Defense issued since January 1, 2010. Such 
briefing shall include— 
(1) protocols for inclusion of unclassified reports that, as 
determined by the Secretary, may not be appropriate for public 
release in their entirety; and 
(2) a cost estimate and schedule for implementation and 
maintenance of the online repository. 
SEC. 875. PROMOTION OF THE USE OF GOVERNMENT-WIDE AND OTHER 
INTERAGENCY CONTRACTS. 
Section 865(b)(1) of the Duncan Hunter National Defense 
Authorization Act for Fiscal Year 2009 (Public Law 110–417; 31 
U.S.C. 1535 note) is amended— 
(1) by striking ‘‘that all interagency acquisitions—’’ and 
inserting ‘‘that—’’; 
(2) in subparagraph (A)— 
(A) by inserting ‘‘all interagency assisted acquisitions’’ 
before ‘‘include’’; and 
(B) by inserting ‘‘and’’ after the semicolon; 
(3) by striking subparagraph (B); and
H. R. 5515—272 
(4) by redesignating subparagraph (C) as subparagraph 
(B), and in that subparagraph by inserting ‘‘all interagency 
assisted acquisitions’’ before ‘‘include’’. 
SEC. 876. INCREASING COMPETITION AT THE TASK ORDER LEVEL. 
Section 3306(c) of title 41, United States Code, is amended— 
(1) in paragraph (1), by inserting ‘‘except as provided in 
paragraph (3),’’ in subparagraphs (B) and (C) after the subpara-
graph designation; and 
(2) by adding at the end the following new paragraphs: 
‘‘(3) EXCEPTIONS FOR CERTAIN INDEFINITE DELIVERY, INDEFI-
NITE QUANTITY MULTIPLE-AWARD CONTRACTS AND CERTAIN FED-
ERAL
SUPPLY
SCHEDULE
CONTRACTS
FOR
SERVICES
ACQUIRED 
ON AN HOURLY RATE.—If an executive agency issues a solicita-
tion for one or more contracts for services to be acquired on 
an hourly rate basis under the authority of sections 4103 and 
4106 of this title or section 152(3) of this title and section 
501(b) of title 40 and the executive agency intends to make 
a contract award to each qualifying offeror and the contract 
or contracts will feature individually competed task or delivery 
orders based on hourly rates— 
‘‘(A) the contracting officer need not consider price 
as an evaluation factor for contract award; and 
‘‘(B) if, pursuant to subparagraph (A), price is not 
considered as an evaluation factor for contract award, cost 
or price to the Federal Government shall be considered 
in conjunction with the issuance pursuant to sections 
4106(c) and 152(3) of this title of any task or delivery 
order under any contract resulting from the solicitation. 
‘‘(4) DEFINITION.—In paragraph (3), the term ‘qualifying 
offeror’ means an offeror that— 
‘‘(A) is determined to be a responsible source; 
‘‘(B) submits a proposal that conforms to the require-
ments of the solicitation; 
‘‘(C) meets all technical requirements; and 
‘‘(D) is otherwise eligible for award.’’. 
SEC. 877. INDIVIDUAL ACQUISITION FOR COMMERCIAL LEASING SERV-
ICES. 
(a) IN GENERAL.—For the purpose of section 863 of Public 
Law 110–417, an individual acquisition for commercial leasing serv-
ices shall not be construed as a purchase of property or services 
if such individual acquisition is made on a no cost basis and pursu-
ant to a multiple award contract awarded in accordance with 
requirements for full and open competition. 
(b) AUDIT.—The Comptroller General of the United States 
shall— 
(1) conduct biennial audits of the General Services Adminis-
tration National Broker Contract to determine— 
(A) whether brokers selected under the program pro-
vide lower lease rental rates than rates negotiated by Gen-
eral Services Administration staff; and 
(B) the impact of the program on the length of time 
of lease procurements; 
(2) conduct a review of whether the application of section 
863 of Public Law 110–417 to acquisitions for commercial
H. R. 5515—273 
leasing services resulted in rental cost savings for the Govern-
ment during the years in which such section was applicable 
prior to the date of enactment of this section; and 
(3) not later than September 30, 2019, and September 
30, 2021, submit to the Committee on Transportation and Infra-
structure of the House of Representatives and the Committee 
on Environment and Public Works of the Senate a report that— 
(A) summarizes the results of the audit and review 
required by paragraphs (1) and (2); 
(B) includes an assessment of whether the National 
Broker Contract provides greater efficiencies and savings 
than the use of General Services Administration staff; and 
(C) includes recommendations for improving General 
Services Administration lease procurements. 
(c) TERMINATION.—This section shall terminate on December 
31, 2022. 
SEC. 878. PROCUREMENT ADMINISTRATIVE LEAD TIME DEFINITION 
AND PLAN. 
(a) IN GENERAL.—Not later than 180 days after the date of 
the enactment of this Act, the Administrator for Federal Procure-
ment Policy shall develop, make available for public comment, 
and finalize— 
(1) a definition of the term ‘‘Procurement administrative 
lead time’’ or ‘‘PALT’’, to be applied Government-wide, that 
describes the amount of time from the date on which a solicita-
tion for a contract or task order is issued to the date of an 
initial award of the contract or task order; and 
(2) a plan for measuring and publicly reporting data on 
PALT for Federal Government contracts and task orders in 
amounts greater than the simplified acquisition threshold. 
(b) REQUIREMENT FOR DEFINITION.—Unless the Administrator 
determines otherwise, the amount of time in the definition of PALT 
developed under subsection (a) shall— 
(1) begin on the date on which an initial solicitation is 
issued by a Federal department or agency for a contract or 
task order; and 
(2) end on the date of the award of the contract or task 
order. 
(c) COORDINATION.—In developing the definition of PALT, the 
Administrator shall coordinate with— 
(1) the senior procurement executives of Federal agencies; 
(2) the Secretary of Defense; and 
(3) the Administrator of the General Services Administra-
tion on modifying the existing data system of the Federal 
Government to determine the date on which the initial solicita-
tion is issued. 
(d) USE OF EXISTING PROCUREMENT DATA SYSTEM.—In devel-
oping the plan for measuring and publicly reporting data on PALT 
required by subsection (a), the Administrator shall, to the maximum 
extent practicable, rely on the information contained in the Federal 
procurement data system established pursuant to section 1122(a)(4) 
of title 41, United States Code, including any modifications to 
that system. 
SEC. 879. BRIEFING ON FUNDING OF PRODUCT SUPPORT STRATEGIES. 
(a) BRIEFING REQUIRED.—For each of the fiscal years 2020, 
2021, and 2022, the Secretary of Defense shall provide an annotated
H. R. 5515—274 
briefing to the congressional defense committees regarding the 
funding for product support strategies for major weapon systems. 
(b) CONTENTS.—The briefing shall include for each major 
weapon system— 
(1) a current estimate of the total funding required for 
the product support strategy for specific costs of the weapons 
system over its expected lifecycle; 
(2) a current estimate of the funding required for the 
product support strategy per year over the future years defense 
program for the specific product support costs of the weapon 
system; 
(3) a summary of the funding requested for the product 
support strategy in the future years defense program per year 
specifically for the weapon system; 
(4) a summary of the amounts expended to support costs 
specific to the weapon system as described in the product 
support strategy of the weapon system during the prior fiscal 
year; and 
(5) a summary of improvements made to data collection 
and analysis capabilities of the Department of Defense, 
including in the military services, to improve the analysis and 
cost estimation of lifecycle costs, improve the analysis and 
identification of cost drivers, reduce lifecycle cost variance, iden-
tify common and shared costs for multiple weapons systems, 
and isolate the lifecycle costs attributable to specific individual 
weapons systems. 
SEC. 880. USE OF LOWEST PRICE TECHNICALLY ACCEPTABLE SOURCE 
SELECTION PROCESS. 
(a) STATEMENT OF POLICY.—It shall be the policy of the United 
States Government to avoid using lowest price technically accept-
able source selection criteria in circumstances that would deny 
the Government the benefits of cost and technical tradeoffs in 
the source selection process. 
(b) REVISION OF FEDERAL ACQUISITION REGULATION.—Not later 
than 120 days after the date of the enactment of this Act, the 
Federal Acquisition Regulation shall be revised to require that, 
for 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 are used only in situations in 
which— 
(1) an executive agency is able to comprehensively and 
clearly describe the minimum requirements expressed in terms 
of performance objectives, measures, and standards that will 
be used to determine acceptability of offers; 
(2) the executive agency would realize no, or minimal, 
value from a contract proposal exceeding the minimum tech-
nical or performance requirements set forth in the request 
for proposal; 
(3) the proposed technical approaches will require no, or 
minimal, subjective judgment by the source selection authority 
as to the desirability of one offeror’s proposal versus a com-
peting proposal; 
(4) the executive agency has a high degree of confidence 
that a review of technical proposals of offerors other than 
the lowest bidder would not result in the identification of factors 
that could provide value or benefit to the executive agency;
H. R. 5515—275 
(5) the contracting officer has included a justification for 
the use of a lowest price technically acceptable evaluation meth-
odology in the contract file; and 
(6) the executive agency has determined that the lowest 
price reflects full life-cycle costs, including for operations and 
support. 
(c) AVOIDANCE OF USE OF LOWEST PRICE TECHNICALLY ACCEPT-
ABLE SOURCE SELECTION CRITERIA IN CERTAIN PROCUREMENTS.— 
To the maximum extent practicable, the use of lowest price tech-
nically acceptable source selection criteria shall be avoided in the 
case of a procurement that is predominately for the acquisition 
of— 
(1) information technology services, cybersecurity services, 
systems 
engineering 
and 
technical 
assistance 
services, 
advanced electronic testing, audit or audit readiness services, 
health care services and records, telecommunications devices 
and services, or other knowledge-based professional services; 
(2) personal protective equipment; or 
(3) knowledge-based training or logistics services in contin-
gency operations or other operations outside the United States, 
including in Afghanistan or Iraq. 
(d) REPORT REQUIREMENT.—Not later than one year after the 
date of the enactment of this Act, and annually thereafter for 
two years, the Comptroller General of the United States shall 
submit to the appropriate congressional committees a report on 
the number of instances in which lowest price technically acceptable 
source selection criteria is used for a contract exceeding $5,000,000, 
including an explanation of how the situations listed in subsection 
(b) were considered in making a determination to use lowest price 
technically acceptable source selection criteria. 
(e) DEFINITIONS.—In this section: 
(1) EXECUTIVE AGENCY.—The term ‘‘executive agency’’ has 
the meaning given that term in section 102 of title 40, United 
States Code, except that the term does not include the Depart-
ment of Defense. 
(2) CONTINGENCY OPERATION.—The term ‘‘contingency oper-
ation’’ has the meaning given that term in section 101 of 
title 10, United States Code. 
(3) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term 
‘‘appropriate congressional committees’’ means the Committee 
on Oversight and Government Reform of the House of Rep-
resentatives and the Committee on Homeland Security and 
Governmental Affairs of the Senate. 
SEC. 881. PERMANENT SUPPLY CHAIN RISK MANAGEMENT AUTHORITY. 
(a) PERMANENT EXTENSION OF AUTHORITY.— 
(1) IN GENERAL.—Chapter 137 of title 10, United States 
Code, is amended by adding at the end the following new 
section: 
‘‘§ 2339a. Requirements for information relating to supply 
chain risk 
‘‘(a) AUTHORITY.—Subject to subsection (b), the head of a cov-
ered agency may— 
‘‘(1) carry out a covered procurement action; and
H. R. 5515—276 
‘‘(2) limit, notwithstanding any other provision of law, in 
whole or in part, the disclosure of information relating to the 
basis for carrying out a covered procurement action. 
‘‘(b) DETERMINATION AND NOTIFICATION.—The head of a covered 
agency may exercise the authority provided in subsection (a) only 
after— 
‘‘(1) obtaining a joint recommendation by the Under Sec-
retary of Defense for Acquisition and Sustainment and the 
Chief Information Officer of the Department of Defense, on 
the basis of a risk assessment by the Under Secretary of 
Defense for Intelligence, that there is a significant supply chain 
risk to a covered system; 
‘‘(2) making a determination in writing, in unclassified 
or classified form, with the concurrence of the Under Secretary 
of Defense for Acquisition and Sustainment, that— 
‘‘(A) use of the authority in subsection (a)(1) is nec-
essary to protect national security by reducing supply chain 
risk; 
‘‘(B) less intrusive measures are not reasonably avail-
able to reduce such supply chain risk; and 
‘‘(C) in a case where the head of the covered agency 
plans to limit disclosure of information under subsection 
(a)(2), the risk to national security due to the disclosure 
of such information outweighs the risk due to not disclosing 
such information; and 
‘‘(3) providing a classified or unclassified notice of the deter-
mination made under paragraph (2) to the appropriate congres-
sional committees, which notice shall include— 
‘‘(A) the information required by section 2304(f)(3) of 
this title; 
‘‘(B) the joint recommendation by the Under Secretary 
of Defense for Acquisition and Sustainment and the Chief 
Information Officer of the Department of Defense as speci-
fied in paragraph (1); 
‘‘(C) a summary of the risk assessment by the Under 
Secretary of Defense for Intelligence that serves as the 
basis for the joint recommendation specified in paragraph 
(1); and 
‘‘(D) a summary of the basis for the determination, 
including a discussion of less intrusive measures that were 
considered and why they were not reasonably available 
to reduce supply chain risk. 
‘‘(c) DELEGATION.—The head of a covered agency may not dele-
gate the authority provided in subsection (a) or the responsibility 
to make a determination under subsection (b) to an official below 
the level of the service acquisition executive for the agency con-
cerned. 
‘‘(d) LIMITATION
ON DISCLOSURE.—If the head of a covered 
agency has exercised the authority provided in subsection (a)(2) 
to limit disclosure of information— 
‘‘(1) no action undertaken by the agency head under such 
authority shall be subject to review in a bid protest before 
the Government Accountability Office or in any Federal court; 
and 
‘‘(2) the agency head shall— 
‘‘(A) notify appropriate parties of a covered procure-
ment action and the basis for such action only to the
H. R. 5515—277 
extent necessary to effectuate the covered procurement 
action; 
‘‘(B) notify other Department of Defense components 
or other Federal agencies responsible for procurements that 
may be subject to the same or similar supply chain risk, 
in a manner and to the extent consistent with the require-
ments of national security; and 
‘‘(C) ensure the confidentiality of any such notifications. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) HEAD OF A COVERED AGENCY.—The term ‘head of a 
covered agency’ means each of the following: 
‘‘(A) The Secretary of Defense. 
‘‘(B) The Secretary of the Army. 
‘‘(C) The Secretary of the Navy. 
‘‘(D) The Secretary of the Air Force. 
‘‘(2) COVERED PROCUREMENT ACTION.—The term ‘covered 
procurement action’ means any of the following actions, if the 
action takes place in the course of conducting a covered procure-
ment: 
‘‘(A) The exclusion of a source that fails to meet quali-
fication standards established in accordance with the 
requirements of section 2319 of this title for the purpose 
of reducing supply chain risk in the acquisition of covered 
systems. 
‘‘(B) The exclusion of a source that fails to achieve 
an acceptable rating with regard to an evaluation factor 
providing for the consideration of supply chain risk in 
the evaluation of proposals for the award of a contract 
or the issuance of a task or delivery order. 
‘‘(C) The decision to withhold consent for a contractor 
to subcontract with a particular source or to direct a con-
tractor for a covered system to exclude a particular source 
from consideration for a subcontract under the contract. 
‘‘(3) COVERED PROCUREMENT.—The term ‘covered procure-
ment’ means— 
‘‘(A) a source selection for a covered system or a covered 
item of supply involving either a performance specification, 
as provided in section 2305(a)(1)(C)(ii) of this title, or an 
evaluation factor, as provided in section 2305(a)(2)(A) of 
this title, relating to supply chain risk; 
‘‘(B) the consideration of proposals for and issuance 
of a task or delivery order for a covered system or a 
covered item of supply, as provided in section 2304c(d)(3) 
of this title, where the task or delivery order contract 
concerned includes a contract clause establishing a require-
ment relating to supply chain risk; or 
‘‘(C) any contract action involving a contract for a 
covered system or a covered item of supply where such 
contract includes a clause establishing requirements 
relating to supply chain risk. 
‘‘(4) SUPPLY
CHAIN
RISK.—The term ‘supply chain risk’ 
means the risk that an adversary may sabotage, maliciously 
introduce unwanted function, or otherwise subvert the design, 
integrity, manufacturing, production, distribution, installation, 
operation, or maintenance of a covered system so as to surveil, 
deny, disrupt, or otherwise degrade the function, use, or oper-
ation of such system.
H. R. 5515—278 
‘‘(5) COVERED SYSTEM.—The term ‘covered system’ means 
a national security system, as that term is defined in section 
3542(b) of title 44. 
‘‘(6) COVERED ITEM OF SUPPLY.—The term ‘covered item 
of supply’ means an item of information technology (as that 
term is defined in section 11101 of title 40) that is purchased 
for inclusion in a covered system, and the loss of integrity 
of which could result in a supply chain risk for a covered 
system. 
‘‘(7) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term 
‘appropriate congressional committees’ means— 
‘‘(A) in the case of a covered system included in the 
National Intelligence Program or the Military Intelligence 
Program, the Select Committee on Intelligence of the 
Senate, the Permanent Select Committee on Intelligence 
of the House of Representatives, and the congressional 
defense committees; and 
‘‘(B) in the case of a covered system not otherwise 
included in subparagraph (A), the congressional defense 
committees.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 2339 the following new item: 
‘‘2339a. Requirements for information relating to supply chain risk.’’. 
(b) REPEAL OF OBSOLETE AUTHORITY.—Section 806(g) of the 
Ike Skelton National Defense Authorization Act for Fiscal Year 
2011 (Public Law 111–383; 10 U.S.C. 2304 note) is hereby repealed. 
SEC. 882. REVIEW OF MARKET RESEARCH. 
Not later than February 1, 2019, the Under Secretary of 
Defense for Acquisition and Sustainment, in consultation with the 
Under Secretary of Defense for Research and Engineering, shall 
review the guidance of the Department of Defense with regard 
to those portions of the Federal Acquisition Regulation regarding 
commercially 
available 
market 
research, 
including 
sections 
10.001(a)(2)(vi) and 10.002(b), and market research practices. The 
review shall, at a minimum— 
(1) assess the impact that conducting market research has 
on the Department’s resources; 
(2) ensure that commercially available market research 
is considered among other sources of research, as appropriate, 
and reviewed prior to developing new requirements documents 
for an acquisition by the Department; 
(3) assess the extent to which the legal or regulatory defini-
tions of market research should be made consistent, revised, 
or expanded; 
(4) assess the extent to which guidance pertaining to 
market research should be revised or expanded; and 
(5) evaluate best practices in market research in public 
and private organizations, including use of information tech-
nologies to support such research. 
SEC. 883. ESTABLISHMENT OF INTEGRATED REVIEW TEAM ON 
DEFENSE 
ACQUISITION 
INDUSTRY-GOVERNMENT 
EXCHANGE. 
(a) STUDY.—
H. R. 5515—279 
(1) IN GENERAL.—Not later than 30 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
direct the Defense Business Board to convene an integrated 
review team (in this section referred to as the ‘‘exchange team’’) 
to undertake a study on facilitating the exchange of defense 
industry personnel on term assignments within the Department 
of Defense. 
(2) MEMBER PARTICIPATION.— 
(A) DEFENSE BUSINESS BOARD.—The Chairman of the 
Defense Business Board shall select six members from 
the membership of the Board to participate on the exchange 
team, including one member to lead the team. 
(B) DEFENSE INNOVATION BOARD.—The Chairman of 
the Defense Innovation Board shall select five appropriate 
members from the membership of their Board to participate 
on the exchange team. 
(C) DEFENSE SCIENCE BOARD.—The Chairman of the 
Defense Science Board shall select five appropriate mem-
bers from the membership of their Board to participate 
on the exchange team. 
(D) REQUIRED EXPERIENCE.—The Chairmen referred to 
in subparagraphs (A) through (C) shall ensure that mem-
bers have significant legislative or regulatory expertise and 
reflect diverse experiences in the public and private sector. 
(3) SCOPE.—The study conducted pursuant to paragraph 
(1) shall— 
(A) review legal, ethical, and financial disclosure 
requirements for industry-government exchanges; 
(B) review existing or previous industry-government 
exchange programs such as the Department of State’s 
Franklin Fellows Program and the Information Technology 
Exchange Program; 
(C) review how the military departments address legal, 
ethical, and financial requirements for members of the 
reserve components who also maintain civilian employment 
in the defense industry; 
(D) produce specific and detailed recommendations for 
any legislation, including the amendment or repeal of regu-
lations, as well as non-legislative approaches, that the 
members of the exchange team conducting the study deter-
mine necessary to— 
(i) 
reduce 
barriers 
to 
industry-government 
exchange to encourage the flow of acquisition best prac-
tices; 
(ii) ensure continuing financial and ethical integ-
rity; and 
(iii) protect the best interests of the Department 
of Defense; and 
(E) produce such additional recommendations for legis-
lation as the members consider appropriate. 
(4) ACCESS
TO
INFORMATION.—The Secretary of Defense 
shall provide the exchange team with timely access to appro-
priate information, data, resources, and analysis so that the 
exchange team may conduct a thorough and independent anal-
ysis as required under this subsection.
H. R. 5515—280 
(b) BRIEFING.—Not later than December 31, 2018, the exchange 
team shall provide an interim briefing to the congressional defense 
committees on the study conducted under subsection (a) 
(c) FINAL REPORT.—Not later than March 1, 2019, the exchange 
team shall submit a final report on the study to the Under Secretary 
of Defense for Acquisition and Sustainment and the congressional 
defense committees. 
SEC. 884. EXCHANGE PROGRAM FOR ACQUISITION WORKFORCE 
EMPLOYEES. 
(a) PROGRAM AUTHORIZED.—The Secretary of Defense shall 
establish an exchange program under which the Under Secretary 
of Defense for Acquisition and Sustainment shall arrange for the 
temporary assignment of civilian personnel in the Department of 
Defense acquisition workforce. 
(b) PURPOSES.—The purposes of the exchange program estab-
lished pursuant to subsection (a) are— 
(1) to familiarize personnel from the acquisition workforce 
with the equities, priorities, processes, culture, and workforce 
of the acquisition-related defense agencies; 
(2) to enable participants in the exchange program to return 
the expertise gained through their exchanges to their original 
organizations; and 
(3) to improve communication between and integration of 
the organizations that support the policy, implementation, and 
oversight of defense acquisition through lasting relationships. 
(c) PARTICIPANTS.— 
(1) NUMBER OF PARTICIPANTS.—The Under Secretary shall 
select not less than 10 and no more than 20 participants 
per year for participation in the exchange program established 
under subsection (a). 
(2) CRITERIA FOR SELECTION.—The Under Secretary shall 
select participants for the exchange program established under 
subsection (a) from among mid-career employees and based 
on— 
(A) the qualifications and desire to participate in the 
program of the employee; and 
(B) the technical needs and capacities of the acquisition 
workforce, as applicable. 
(d) TERMS.—Exchanges pursuant to the exchange program 
established under subsection (a) shall be for terms of one to two 
years, as determined and negotiated by the Under Secretary. The 
terms may begin and end on a rolling basis. 
(e) GUIDANCE AND IMPLEMENTATION.— 
(1) GUIDANCE.—Not later than 90 days after the date of 
the enactment of this Act, the Under Secretary shall develop 
and submit to the congressional defense committees interim 
guidance on the form and contours of the exchange program 
established under subsection (a). 
(2) IMPLEMENTATION.—Not later than 180 days after the 
date of the enactment of this Act, the Under Secretary shall 
implement the guidance developed under paragraph (1). 
SEC. 885. PROCESS TO LIMIT FOREIGN ACCESS TO TECHNOLOGY. 
(a) PROCESS AND PROCEDURES.—The Secretary of Defense shall 
develop a process and procedures for limiting foreign access to 
technology through contracts, grants, cooperative agreements, or
H. R. 5515—281 
other transactions, when such limitation is in the interest of 
national security. 
(b) REPORT.—Not later than September 1, 2019, the Secretary 
shall submit to the congressional defense committees a report on 
the process and procedures developed pursuant to subsection (a). 
The report shall include the following elements: 
(1) An assessment of the Department of Defense’s ability 
through existing authorities to limit foreign access to technology 
through contracts, grants, cooperative agreements, or other 
transactions. 
(2) An assessment of the Department’s need to implement 
a process to limit foreign access to technology. 
(3) Recommendations for penalties for violations of access, 
including intellectual property forfeiture. 
(c) CONSIDERATIONS.—The process and procedures developed 
under subsection (a) shall be consistent with all existing law, 
including laws relating to trade agreements, individual protections, 
export controls, and the National Technology and Industrial Base 
(NTIB). 
SEC. 886. PROCUREMENT OF TELECOMMUNICATIONS SUPPLIES FOR 
EXPERIMENTAL PURPOSES. 
Section 2373(a) of title 10, United States Code, is amended 
by inserting ‘‘telecommunications,’’ after ‘‘space-flight,’’. 
SEC. 887. ACCESS BY DEVELOPMENTAL AND OPERATIONAL TESTING 
ACTIVITIES TO DATA REGARDING MODELING AND SIMULA-
TION ACTIVITY. 
(a) IN GENERAL.—Section 139(e) of title 10, United States Code, 
is amended by adding at the end the following new paragraph: 
‘‘(4) The Director shall have prompt access to all data regarding 
modeling and simulation activity proposed to be used by military 
departments and defense agencies in support of operational or 
live fire test and evaluation of military capabilities. This access 
shall include data associated with verification, validation, and 
accreditation activities.’’. 
(b) ADDITIONAL
TESTING
DATA.—Developmental Test and 
Evaluation activities under the leadership of the Under Secretary 
of Defense for Research and Engineering and the Under Secretary 
of Defense for Acquisition and Sustainment shall have prompt 
access to all data regarding modeling and simulation activity pro-
posed to be used by military departments and defense agencies 
in support of developmental test and evaluation of military capabili-
ties. This access shall include data associated with verification, 
validation, and accreditation activities. 
SEC. 888. INSTRUCTION ON PILOT PROGRAM REGARDING EMPLOY-
MENT OF PERSONS WITH DISABILITIES. 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall update the Defense Federal 
Acquisition Regulatory Supplement to include an instruction on 
the pilot program regarding employment of persons with disabilities 
authorized under section 853 of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108–136; 10 U.S.C. 2302 
note).
H. R. 5515—282 
SEC. 889. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND 
VIDEO SURVEILLANCE SERVICES OR EQUIPMENT. 
(a) PROHIBITION ON USE OR PROCUREMENT.—(1) The head of 
an executive agency may not— 
(A) procure or obtain or extend or renew a contract to 
procure or obtain any equipment, system, or service that uses 
covered telecommunications equipment or services as a substan-
tial or essential component of any system, or as critical tech-
nology as part of any system; or 
(B) enter into a contract (or extend or renew a contract) 
with an entity that uses any equipment, system, or service 
that uses covered telecommunications equipment or services 
as a substantial or essential component of any system, or 
as critical technology as part of any system. 
(2) Nothing in paragraph (1) shall be construed to— 
(A) prohibit the head of an executive agency from procuring 
with an entity to provide a service that connects to the facilities 
of a third-party, such as backhaul, roaming, or interconnection 
arrangements; or 
(B) cover telecommunications equipment that cannot route 
or redirect user data traffic or permit visibility into any user 
data or packets that such equipment transmits or otherwise 
handles. 
(b) PROHIBITION ON LOAN AND GRANT FUNDS.—(1) The head 
of an executive agency may not obligate or expend loan or grant 
funds to procure or obtain, extend or renew a contract to procure 
or obtain, or enter into a contract (or extend or renew a contract) 
to procure or obtain the equipment, services, or systems described 
in subsection (a). 
(2) In implementing the prohibition in paragraph (1), heads 
of executive agencies administering loan, grant, or subsidy pro-
grams, including the heads of the Federal Communications Commis-
sion, the Department of Agriculture, the Department of Homeland 
Security, the Small Business Administration, and the Department 
of Commerce, shall prioritize available funding and technical sup-
port to assist affected businesses, institutions and organizations 
as is reasonably necessary for those affected entities to transition 
from covered communications equipment and services, to procure 
replacement equipment and services, and to ensure that commu-
nications service to users and customers is sustained. 
(3) Nothing in this subsection shall be construed to— 
(A) prohibit the head of an executive agency from procuring 
with an entity to provide a service that connects to the facilities 
of a third-party, such as backhaul, roaming, or interconnection 
arrangements; or 
(B) cover telecommunications equipment that cannot route 
or redirect user data traffic or permit visibility into any user 
data or packets that such equipment transmits or otherwise 
handles. 
(c) EFFECTIVE
DATES.—The prohibition under subsection 
(a)(1)(A) shall take effect one year after the date of the enactment 
of this Act, and the prohibitions under subsections (a)(1)(B) and 
(b)(1) shall take effect two years after the date of the enactment 
of this Act. 
(d) WAIVER AUTHORITY.—
H. R. 5515—283 
(1) EXECUTIVE AGENCIES.—The head of an executive agency 
may, on a one-time basis, waive the requirements under sub-
section (a) with respect to an entity that requests such a waiver. 
The waiver may be provided, for a period of not more than 
two years after the effective dates described in subsection (c), 
if the entity seeking the waiver— 
(A) provides a compelling justification for the additional 
time to implement the requirements under such subsection, 
as determined by the head of the executive agency; and 
(B) submits to the head of the executive agency, who 
shall not later than 30 days thereafter submit to the appro-
priate congressional committees, a full and complete 
laydown of the presences of covered telecommunications 
or video surveillance equipment or services in the entity’s 
supply chain and a phase-out plan to eliminate such cov-
ered telecommunications or video surveillance equipment 
or services from the entity’s systems. 
(2) DIRECTOR OF NATIONAL INTELLIGENCE.—The Director 
of National Intelligence may provide a waiver on a date later 
than the effective dates described in subsection (c) if the 
Director determines the waiver is in the national security 
interests of the United States. 
(f) DEFINITIONS.—In this section: 
(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term 
‘‘appropriate congressional committees’ ’’ means— 
(A) the Committee on Banking, Housing, and Urban 
Affairs, the Committee on Foreign Relations, and the Com-
mittee on Homeland Security and Governmental Affairs 
of the Senate; and 
(B) the Committee on Financial Services, the Com-
mittee on Foreign Affairs, and the Committee on Oversight 
and Government Reform of the House of Representatives. 
(2) COVERED FOREIGN COUNTRY.—The term ‘‘covered foreign 
country’’ means the People’s Republic of China. 
(3) COVERED TELECOMMUNICATIONS EQUIPMENT OR SERV-
ICES.—The term ‘‘covered telecommunications equipment or 
services’’ means any of the following: 
(A) 
Telecommunications 
equipment 
produced 
by 
Huawei Technologies Company or ZTE Corporation (or any 
subsidiary or affiliate of such entities). 
(B) For the purpose of public safety, security of govern-
ment facilities, physical security surveillance of critical 
infrastructure, and other national security purposes, video 
surveillance and telecommunications equipment produced 
by 
Hytera 
Communications 
Corporation, 
Hangzhou 
Hikvision Digital Technology Company, or Dahua Tech-
nology Company (or any subsidiary or affiliate of such 
entities). 
(C) Telecommunications or video surveillance services 
provided by such entities or using such equipment. 
(D) Telecommunications or video surveillance equip-
ment or services produced or provided by an entity that 
the Secretary of Defense, in consultation with the Director 
of the National Intelligence or the Director of the Federal 
Bureau of Investigation, reasonably believes to be an entity 
owned or controlled by, or otherwise connected to, the 
government of a covered foreign country.
H. R. 5515—284 
(4) EXECUTIVE AGENCY.—The term ‘‘executive agency’’ has 
the meaning given the term in section 133 of title 41, United 
States Code. 
SEC. 890. PILOT PROGRAM TO ACCELERATE CONTRACTING AND 
PRICING PROCESSES. 
(a) IN GENERAL.—The Secretary of Defense shall establish a 
pilot program to reform and accelerate the contracting and pricing 
processes associated with contracts in excess of $50,000,000 by— 
(1) basing price reasonableness determinations on actual 
cost and pricing data for purchases of the same or similar 
products for the Department of Defense; and 
(2) reducing the cost and pricing data to be submitted 
in accordance with section 2306a of title 10, United States 
Code. 
(b) LIMITATION.—The pilot program authorized under sub-
section (a) may include no more than ten contracts, and none 
of the selected contracts may be part of a major defense acquisition 
program (as that term is defined under section 2430 of title 10, 
United States Code). 
(c) REPORT.—Not later than January 30, 2021, the Secretary 
of Defense shall submit to the congressional defense committees 
a report on the results of the pilot program authorized under 
subsection (a) and an assessment of whether the program should 
be continued or expanded. 
(d) SUNSET.—The authority to carry out the pilot program 
under this section shall expire on January 2, 2021. 
TITLE IX—DEPARTMENT OF DEFENSE 
ORGANIZATION AND MANAGEMENT 
Subtitle A—Office of the Secretary of Defense and Related Matters 
Sec. 901. Report on allocation of former responsibilities of the Under Secretary of 
Defense for Acquisition, Technology, and Logistics. 
Sec. 902. Modification of responsibilities of the Under Secretary of Defense for Pol-
icy. 
Sec. 903. Clarification of responsibilities and duties of the Chief Information Officer 
of the Department of Defense. 
Sec. 904. Technical corrections to Department of Defense Test Resource Manage-
ment Center authority. 
Sec. 905. Specification of certain duties of the Defense Technical Information Cen-
ter. 
Subtitle B—Organization and Management of Other Department of Defense Offices 
and Elements 
Sec. 911. Comprehensive review of operational and administrative chains-of-com-
mand and functions of the Department of the Navy. 
Sec. 912. Modification of certain responsibilities of the Chairman of the Joint 
Chiefs of Staff relating to joint force concept development. 
Sec. 913. Clarification of certain risk assessment requirements of the Chairman of 
the Joint Chiefs of Staff in connection with the National Military Strat-
egy. 
Sec. 914.
Assistant Secretary of Defense for Special Operations and Low Intensity 
Conflict review of United States Special Operations Command. 
Sec. 915. Expansion of principal duties of Assistant Secretary of the Navy for Re-
search, Development, and Acquisition. 
Sec. 916. Qualifications for appointment as Deputy Chief Management Officer of a 
military department. 
Sec. 917. Deadline for completion of full implementation of requirements in connec-
tion with organization of the Department of Defense for management of 
special operations forces and special operations.
H. R. 5515—285 
Sec. 918. Cross-functional teams in the Department of Defense. 
Sec. 919. Limitation on transfer of the Chemical, Biological, and Radiological De-
fense Division of the Navy. 
Subtitle C—Comprehensive Pentagon Bureaucracy Reform and Reduction 
Sec. 921. Authorities and responsibilities of the Chief Management Officer of the 
Department of Defense. 
Sec. 922. Analysis of Department of Defense business management and operations 
datasets to promote savings and efficiencies. 
Sec. 923. Periodic review of the Defense Agencies and Department of Defense Field 
Activities by the Chief Management Officer of the Department of De-
fense. 
Sec. 924. Actions to increase the efficiency and transparency of the Defense Logis-
tics Agency. 
Sec. 925. Review of functions of Defense Contract Audit Agency and Defense Con-
tract Management Agency. 
Sec. 926. Review and improvement of the operations of the Defense Finance and 
Accounting Service. 
Sec. 927. Assessment of chief information officer functions in connection with tran-
sition to enterprise-wide management of information technology and 
computing. 
Sec. 928. Comptroller General of the United States report on cross-enterprise ac-
tivities of the Inspectors General of the Department of Defense. 
Sec. 929. General provisions. 
Subtitle D—Other Department of Defense Organization and Management Matters 
Sec. 931. Limitation on availability of funds for major headquarters activities of the 
Department of Defense. 
Sec. 932. John S. McCain Strategic Defense Fellows Program. 
Sec. 933. Performance of civilian functions by military personnel. 
Sec. 934. Report on implementation of requirements on estimation and comparison 
of costs of civilian and military manpower and contract support for the 
Department of Defense. 
Sec. 935. Review of foreign currency exchange rates and analysis of Foreign Cur-
rency Fluctuations, Defense appropriation. 
Sec. 936. Responsibility for policy on civilian casualty matters. 
Sec. 937. Additional matters in connection with background and security investiga-
tions for Department of Defense personnel. 
Sec. 938. Research and development to advance capabilities of the Department of 
Defense in data integration and advanced analytics in connection with 
personnel security. 
Subtitle E—Other Matters 
Sec. 941. Trusted information provider program for national security positions and 
positions of trust. 
Sec. 942. Report on expedited processing of security clearances for mission-critical 
positions. 
Sec. 943. Report on clearance in person concept. 
Subtitle A—Office of the Secretary of 
Defense and Related Matters 
SEC. 901. REPORT ON ALLOCATION OF FORMER RESPONSIBILITIES 
OF THE UNDER SECRETARY OF DEFENSE FOR ACQUISI-
TION, TECHNOLOGY, AND LOGISTICS. 
Not later than March 1, 2019, the Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate and 
the House of Representatives a report setting forth the following: 
(1) A list of each provision of law, whether within or outside 
title 10, United States Code, in force as of the date of the 
report that, as of that date, assigns a duty, responsibility, 
or other requirement to the Under Secretary of Defense for 
Acquisition, Technology, and Logistics. 
(2) For each duty, responsibility, or other requirement 
specified in a provision of law listed pursuant to paragraph
H. R. 5515—286 
(1), the allocation of such duty, responsibility, or requirement 
within the Department of Defense, including— 
(A) solely to the Under Secretary of Defense for 
Research and Engineering; 
(B) solely to the Under Secretary of Defense for 
Acquisition and Sustainment; 
(C) on a shared basis between the Under Secretary 
of Defense for Research and Engineering and the Under 
Secretary of Defense for Acquisition and Sustainment; 
(D) solely to another official or organization of the 
Department; 
(E) on a shared basis between other officials and 
organizations of the Department; or 
(F) not allocated. 
SEC. 902. MODIFICATION OF RESPONSIBILITIES OF THE UNDER SEC-
RETARY OF DEFENSE FOR POLICY. 
(a) GENERAL RESPONSIBILITIES.—Paragraph (2) of section 134(b) 
of title 10, United States Code, is amended to read as follows: 
‘‘(2) Subject to the authority, direction, and control of the Sec-
retary of Defense, the Under Secretary shall be responsible and 
have overall direction and supervision for— 
‘‘(A) the development, implementation, and integration 
across the Department of Defense of the National Defense 
Strategy (as described by section 113 of this title) and strategic 
policy guidance for the activities of the Department of Defense 
across all geographic regions and military functions and 
domains; 
‘‘(B) the integration of the activities of the Department 
into the National Security Strategy of the United States; 
‘‘(C) the development of policy guidance for the preparation 
of campaign and contingency plans by the combatant com-
mands, and for the review of such plans; 
‘‘(D) the preparation of policy guidance for the development 
of the global force posture; and 
‘‘(E) the development of the Defense Planning Guidance 
that guides the formulation of program and budget requests 
by the military departments and other elements of the Depart-
ment.’’. 
(b) RESPONSIBILITIES
IN
CONNECTION
WITH
JOINT
FORCE 
CAPABILITIES AND READINESS.—Such section is further amended 
by adding at the end the following new paragraph: 
‘‘(5) Subject to the authority, direction, and control of the Sec-
retary of Defense, the Under Secretary shall coordinate with the 
Chairman of the Joint Chiefs of Staff and the Director of Cost 
Assessment and Program Evaluation to— 
‘‘(A) develop planning scenarios that describe the present 
and future strategic and operational environments by which 
to assess joint force capabilities and readiness; and 
‘‘(B) develop specific objectives that the joint force should 
be ready to achieve, and conduct assessments of the capability 
(in terms of both capacity and readiness) of the joint force 
to achieve such objectives.’’. 
SEC. 903. CLARIFICATION OF RESPONSIBILITIES AND DUTIES OF THE 
CHIEF INFORMATION OFFICER OF THE DEPARTMENT OF 
DEFENSE. 
Section 142(b)(1) of title 10, United States Code, is amended—
H. R. 5515—287 
(1) in subparagraph (A), by inserting ‘‘(other than with 
respect to business systems and management)’’ after ‘‘sections 
3506(a)(2)’’; 
(2) in subparagraph (B), by striking ‘‘section 11315 of title 
40’’ and inserting ‘‘sections 11315 and 11319 of title 40 (other 
than with respect to business systems and management)’’; and 
(3) in subparagraph (C), by striking ‘‘sections 2222, 2223(a), 
and 2224 of this title’’ and inserting ‘‘sections 2223(a) (other 
than with respect to business systems and management) and 
2224 of this title’’. 
SEC. 904. TECHNICAL CORRECTIONS TO DEPARTMENT OF DEFENSE 
TEST RESOURCE MANAGEMENT CENTER AUTHORITY. 
Section 196 of title 10, United States Code, is amended in 
subsections (c)(1)(B) and (g) by striking ‘‘Under Secretary of Defense 
for Acquisition, Technology, and Logistics’’ and inserting ‘‘Under 
Secretary of Defense for Research and Engineering’’. 
SEC. 905. SPECIFICATION OF CERTAIN DUTIES OF THE DEFENSE TECH-
NICAL INFORMATION CENTER. 
(a) IN GENERAL.—In addition to any other duties specified 
for the Defense Technical Information Center by law, regulation, 
or Department of Defense directive or instruction, the duties of 
the Center shall include the following: 
(1) To execute the Global Research Watch Program under 
section 2365 of title 10, United States Code. 
(2) To develop and maintain datasets and other data reposi-
tories on research and engineering activities being conducted 
within the Department. 
(b) ACTION PLAN.—Not later than 90 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 the House 
of Representatives a plan of action for the commencement by the 
Defense Technical Information Center of the duties specified in 
subsection (a). 
Subtitle B—Organization and Management 
of Other Department of Defense Offices 
and Elements 
SEC. 911. COMPREHENSIVE REVIEW OF OPERATIONAL AND ADMINIS-
TRATIVE CHAINS-OF-COMMAND AND FUNCTIONS OF THE 
DEPARTMENT OF THE NAVY. 
(a) IN GENERAL.—The Secretary of the Navy shall conduct 
a comprehensive review of the operational and administrative 
chains-of-command and functions of the Department of the Navy. 
(b) ELEMENTS.—In conducting the review required by subsection 
(a), the Secretary shall consider options to do each of the following: 
(1) Increase visibility of unit-level readiness at senior levels. 
(2) Reduce so-called ‘‘double-hatting’’ and ‘‘triple-hatting’’ 
commanders. 
(3) Clarify organizations responsible and accountable for 
training and certification at the unit, group, and fleet level. 
(4) Simplify reporting requirements applicable to com-
manding officers.
H. R. 5515—288 
(c) REPORT.— 
(1) IN GENERAL.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary shall submit to 
the congressional defense committees a report on the results 
of the review required by subsection (a). The report shall include 
the following: 
(A) The results of the review, including any findings 
of the Secretary as a result of the review. 
(B) Any organizational changes in operational or 
administrative chains-of-command or functions of the 
Department undertaken or to be undertaken by the Sec-
retary in light of the review. 
(C) Any recommendations for legislative or administra-
tion action with respect to the operational or administrative 
chains-of-command or functions of the Department the Sec-
retary considers appropriate in light of the review. 
(2) FORM.—The report under this subsection shall be sub-
mitted in unclassified form, but may include a classified annex. 
SEC. 912. MODIFICATION OF CERTAIN RESPONSIBILITIES OF THE 
CHAIRMAN OF THE JOINT CHIEFS OF STAFF RELATING 
TO JOINT FORCE CONCEPT DEVELOPMENT. 
Subparagraph (D) of section 153(a)(6) of title 10, United States 
Code, is amended to read as follows: 
‘‘(D) 
formulating 
policies 
for 
development 
and 
experimentation on both urgent and long-term concepts 
for joint force employment, including establishment of a 
process within the Joint Staff for analyzing and prioritizing 
gaps in capabilities that could potentially be addressed 
by joint concept development using existing or modified 
joint force capabilities;’’. 
SEC. 913. CLARIFICATION OF CERTAIN RISK ASSESSMENT REQUIRE-
MENTS OF THE CHAIRMAN OF THE JOINT CHIEFS OF 
STAFF IN CONNECTION WITH THE NATIONAL MILITARY 
STRATEGY. 
Section 153(b) of title 10, United States Code, is amended— 
(1) in paragraph (1)(D)(iii), by striking ‘‘military strategic 
and operational risks’’ and inserting ‘‘military risk’’; and 
(2) in paragraph (2)(B)(ii), by striking ‘‘military strategic 
and operational risks to United States interests and the mili-
tary strategic and operational risks in executing the National 
Military Strategy (or update)’’ and inserting ‘‘military strategic 
risks to United States interests and military risks in executing 
the National Military Strategy (or update)’’. 
SEC. 914. ASSISTANT SECRETARY OF DEFENSE FOR SPECIAL OPER-
ATIONS AND LOW INTENSITY CONFLICT REVIEW OF 
UNITED STATES SPECIAL OPERATIONS COMMAND. 
(a) REVIEW REQUIRED.—The Assistant Secretary of Defense 
for Special Operations and Low Intensity Conflict shall, in coordina-
tion with the Commander of the United States Special Operations 
Command, conduct a comprehensive review of the United States 
Special Operations Command for purposes of ensuring that the 
institutional and operational capabilities of special operations forces 
are appropriate to counter anticipated future threats across the 
spectrum of conflict.
H. R. 5515—289 
(b) SCOPE OF REVIEW.—The review required by subsection (a) 
shall include, at a minimum, the following: 
(1) An assessment of the adequacy of special operations 
forces doctrine, organization, training, materiel, education, per-
sonnel, and facilities to implement the 2018 National Defense 
Strategy, and recommendations, if any, for modifications for 
that purpose. 
(2) An assessment of the roles and responsibilities of special 
operations forces as assigned by law, Department of Defense 
guidance, or other formal designation, and recommendations, 
if any, for additions to or divestitures of such roles or respon-
sibilities. 
(3) An assessment of the adequacy of the processes through 
which the United States Special Operations Command evalu-
ates and prioritizes the requirements at the geographic combat-
ant commands for special operations forces and special oper-
ations-unique capabilities and makes recommendations on the 
allocation of special operations forces and special operations- 
unique capabilities to meet such requirements, and rec-
ommendations, if any, for modifications of such processes. 
(4) Any other matters the Assistant Secretary considers 
appropriate. 
(c) DEADLINES.— 
(1) COMPLETION OF REVIEW.—The review required by sub-
section (a) shall be completed by not later than 270 days 
after the date of the enactment of this Act. 
(2) REPORT.—Not later than 30 days after completion of 
the review, the Assistant Secretary shall submit to the congres-
sional defense committees a report on the review, including 
the findings and any recommendations of the Assistant Sec-
retary as a result of the review. 
SEC. 915. EXPANSION OF PRINCIPAL DUTIES OF ASSISTANT SEC-
RETARY OF THE NAVY FOR RESEARCH, DEVELOPMENT, 
AND ACQUISITION. 
Section 5016(b)(4)(A) of title 10, United States Code, is amended 
by striking ‘‘and acquisition matters’’ and inserting ‘‘acquisition, 
and sustainment (including maintenance) matters’’. 
SEC. 916. QUALIFICATIONS FOR APPOINTMENT AS DEPUTY CHIEF 
MANAGEMENT OFFICER OF A MILITARY DEPARTMENT. 
(a) DEPARTMENT
OF
THE ARMY.—An individual may not be 
appointed as Deputy Chief Management Officer of the Department 
of the Army unless the individual— 
(1) has significant experience in business operations or 
management in the public sector; or 
(2) has significant experience managing an enterprise in 
the private sector. 
(b) DEPARTMENT
OF
THE NAVY.—An individual may not be 
appointed as Deputy Chief Management Officer of the Department 
of the Navy unless the individual— 
(1) has significant experience in business operations or 
management in the public sector; or 
(2) has significant experience managing an enterprise in 
the private sector. 
(c) DEPARTMENT OF THE AIR FORCE.—An individual may not 
be appointed as Deputy Chief Management Officer of the Depart-
ment of the Air Force unless the individual—
H. R. 5515—290 
(1) has significant experience in business operations or 
management in the public sector; or 
(2) has significant experience managing an enterprise in 
the private sector. 
SEC. 917. DEADLINE FOR COMPLETION OF FULL IMPLEMENTATION 
OF REQUIREMENTS IN CONNECTION WITH ORGANIZATION 
OF THE DEPARTMENT OF DEFENSE FOR MANAGEMENT 
OF SPECIAL OPERATIONS FORCES AND SPECIAL OPER-
ATIONS. 
The Secretary of Defense shall ensure that the implementation 
of section 922 of the National Defense Authorization Act for Fiscal 
Year 2017 (Public Law 114–328; 130 Stat. 2354) and the amend-
ments made by that section is fully complete by not later than 
90 days after the date of the enactment of this Act. 
SEC. 918. CROSS-FUNCTIONAL TEAMS IN THE DEPARTMENT OF 
DEFENSE. 
(a) CROSS-FUNCTIONAL TEAM ON ELECTRONIC WARFARE.— 
(1) IN GENERAL.—Among the cross-functional teams estab-
lished by the Secretary of Defense pursuant to subsection (c) 
of section 911 of the National Defense Authorization Act for 
Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2345; 10 
U.S.C. 111 note) in support of the organizational strategy for 
the Department of Defense required by subsection (a) of that 
section, the Secretary shall establish a cross-functional team 
on electronic warfare. 
(2) ESTABLISHMENT AND ACTIVITIES.—The cross-functional 
team established pursuant to paragraph (1) shall be established 
in accordance with subsection (c) of section 911 of the National 
Defense Authorization Act for Fiscal Year 2017, and shall be 
governed in its activities in accordance with the provisions 
of such subsection (c). 
(3) DEADLINE FOR ESTABLISHMENT.—The cross-functional 
team required by paragraph (1) shall be established by not 
later than 90 days after the date of the enactment of this 
Act. 
(b) ADDITIONAL CROSS-FUNCTIONAL TEAMS MATTERS.— 
(1) CRITERIA
FOR
DISTINGUISHING
AMONG
CROSS-FUNC-
TIONAL TEAMS.—Not later than 60 days after the date of the 
enactment of this Act, the Secretary shall issue criteria that 
distinguish cross-functional teams under section 911 of the 
National Defense Authorization Act for Fiscal Year 2017 from 
other types of cross-functional working groups, committees, 
integrated product teams, and task forces of the Department. 
(2) PRIMARY
RESPONSIBILITY
FOR
IMPLEMENTATION
OF 
TEAMS.—The Deputy Secretary of Defense shall establish or 
designate an office within the Department that shall have 
primary responsibility for implementing section 911 of the 
National Defense Authorization Act for Fiscal Year 2017. 
SEC. 919. LIMITATION ON TRANSFER OF THE CHEMICAL, BIOLOGICAL, 
AND RADIOLOGICAL DEFENSE DIVISION OF THE NAVY. 
(a) REPORT REQUIRED.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of the Navy shall 
submit to the congressional defense committees a report that 
includes the following:
H. R. 5515—291 
(1) A detailed timeline for the proposed transfer of the 
Chemical, Biological, and Radiological Defense Division of the 
Navy from Virginia to another location. 
(2) A full accounting of the costs associated with the pro-
posed transfer, including— 
(A) all personnel costs; 
(B) all equipment costs; and 
(C) all facility renovation costs for the existing facilities 
of the Division and the facilities to which the Division 
is proposed to be transferred. 
(3) A risk assessment of the operational impact of the 
transfer during the transition period. 
(4) An explanation of the operational benefit expected to 
be achieved by collocating all Chemical, Biological, and Radio-
logical elements of the Department of the Navy. 
(b) LIMITATION.—The Secretary may not transfer, or prepare 
to transfer, the Chemical, Biological, and Radiological Defense Divi-
sion of the Navy from Dahlgren, Virginia, to another location until 
a period of 45 days has elapsed following the date on which the 
report is submitted to the congressional defense committees under 
subsection (a). 
Subtitle C—Comprehensive Pentagon 
Bureaucracy Reform and Reduction 
SEC. 921. AUTHORITIES AND RESPONSIBILITIES OF THE CHIEF 
MANAGEMENT 
OFFICER 
OF 
THE 
DEPARTMENT 
OF 
DEFENSE. 
(a) AUTHORITIES AND RESPONSIBILITIES.— 
(1) IN GENERAL.—Subsection (b) of section 132a of title 
10, United States Code, is amended by adding at the end 
the following new paragraph: 
‘‘(7) Serving as the official with principal responsibility 
in the Department for minimizing the duplication of efforts, 
maximizing efficiency and effectiveness, and establishing 
metrics for performance among and for all organizations and 
elements of the Department.’’. 
(2) BUDGET AUTHORITY.— 
(A) IN GENERAL.—Such section is further amended— 
(i) by redesignating subsections (c) and (d) as sub-
sections (d) and (e), respectively; and 
(ii) by inserting after subsection (b) the following 
new subsection (c): 
‘‘(c) BUDGET AUTHORITY.—(1)(A) Beginning in fiscal year 2020, 
the Secretary of Defense, acting through the Under Secretary of 
Defense (Comptroller), shall require the head of each Defense 
Agency and Department of Defense Field Activity specified by the 
Secretary for purposes of this subsection to transmit the proposed 
budget of such Agency or Activity for enterprise business operations 
for a fiscal year, and for the period covered by the future-years 
defense program submitted to Congress under section 221 of this 
title for that fiscal year, to the Chief Management Officer for 
review under subparagraph (B) at the same time the proposed 
budget is submitted to the Under Secretary of Defense (Comp-
troller).
H. R. 5515—292 
‘‘(B) The Chief Management Officer shall review each proposed 
budget transmitted under subparagraph (A) and, not later than 
January 31 of the year preceding the fiscal year for which the 
budget is proposed, shall submit to the Secretary a report containing 
the comments of the Chief Management Officer with respect to 
all such proposed budgets, together with the certification of the 
Chief Management Officer regarding whether each such proposed 
budget achieves the required level of efficiency and effectiveness 
for enterprise business operations, consistent with guidance for 
budget review established by the Chief Management Officer. 
‘‘(C) Not later than March 31 each year, the Secretary shall 
submit to Congress a report that includes the following: 
‘‘(i) Each proposed budget for the enterprise business oper-
ations of a Defense Agency or Department of Defense Field 
Activity that was transmitted to the Chief Management Officer 
under subparagraph (A). 
‘‘(ii) Identification of each proposed budget contained in 
the most recent report submitted under subparagraph (B) that 
the Chief Management Officer did not certify as achieving 
the required level of efficiency and effectiveness for enterprise 
business operations. 
‘‘(iii) A discussion of the actions that the Secretary proposes 
to take, together with any recommended legislation that the 
Secretary considers appropriate, to address inadequate levels 
of efficiency and effectiveness for enterprise business operations 
achieved by the proposed budgets identified in the report. 
‘‘(iv) Any additional comments that the Secretary considers 
appropriate regarding inadequate levels of efficiency and 
effectiveness for enterprise business operations achieved by 
the proposed budgets. 
‘‘(2) Nothing in this subsection shall be construed to modify 
or interfere with the budget-related responsibilities of the Director 
of National Intelligence.’’. 
(B) EXECUTION
OF
AUTHORITY.—In order to execute 
the authority in subsection (c) of section 132a of title 10, 
United States Code (as amended by subparagraph (A)), 
the Chief Management Officer of the Department of 
Defense shall do the following: 
(i) By April 1, 2019, develop an assessment of 
cost and expertise requirements to execute such 
authority. 
(ii) By September 1, 2019, develop guidance for 
Defense Agencies and Department of Defense Field 
Activities to delineate spending on enterprise business 
operations and develop a process to determine the ade-
quacy of their budgets for such operations. 
(b) REFORM OF BUSINESS ENTERPRISE OPERATIONS IN SUPPORT 
OF CERTAIN ACTIVITIES ACROSS DEPARTMENT OF DEFENSE.— 
(1) PERIODIC REFORM.— 
(A) IN GENERAL.—Not later than January 1, 2020, and 
not less frequently than once every five years thereafter, 
the Secretary of Defense shall, acting through the Chief 
Management Officer of the Department of Defense, reform 
enterprise business operations of the Department of
H. R. 5515—293 
Defense, through reductions, eliminations, or improve-
ments, across all organizations and elements of the Depart-
ment with respect to covered activities in order to increase 
effectiveness and efficiency of mission execution. 
(B) CMO REPORTS.—Not later than January 1 of every 
fifth calendar year beginning with January 1, 2025, the 
Chief Management Officer shall submit to the congressional 
defense committees a report that describes the activities 
carried out by the Chief Management Officer under this 
subsection during the preceding five years, including an 
estimate of any cost savings achieved as a result of such 
activities. 
(2) COVERED ACTIVITIES DEFINED.—In this subsection, the 
term ‘‘covered activities’’ means any activity relating to civilian 
resources management, logistics management, services con-
tracting, or real estate management. 
(3) REPORTING FRAMEWORK.—Not later than January 1, 
2020, the Chief Management Officer shall establish a consistent 
reporting framework to establish a baseline for the costs to 
perform all covered activities, and shall submit to Congress 
a report that, for each individual covered activity performed 
in fiscal year 2019, identifies the following: 
(A) The component or components of the Department 
responsible for performing such activity, and a business 
process map of such activity, in fiscal year 2019. 
(B) The number of the military, civilian, and contractor 
personnel of the component or components of the Depart-
ment who performed such activity in that fiscal year. 
(C) The manpower requirements for such activity as 
of that fiscal year. 
(D) The systems and other resources associated with 
such activity as of that fiscal year. 
(E) The cost in dollars of performing such activity 
in fiscal year 2019. 
(4) INITIAL PLAN.—Not later than February 1, 2019, the 
Chief Management Officer shall submit to the congressional 
defense committees a plan, schedule, and cost estimate for 
conducting the reforms required under paragraph (1)(A). 
(5) CERTIFICATION
OF
COST
SAVINGS.—Not later than 
January 1, 2020, the Chief Management Officer shall certify 
to the congressional defense committees that the savings and 
costs incurred as a result of activities carried out under para-
graph (1) will achieve savings in fiscal year 2020 against the 
total amount obligated and expended for covered activities in 
fiscal year 2019 of— 
(A) not less than 25 percent of the cost in dollars 
of performing covered activities in fiscal year 2019 as speci-
fied pursuant to paragraph (3)(E); or 
(B) if the Chief Management Officer determines that 
achievement of savings of 25 percent or more will create 
overall inefficiencies for the Department, notice and jus-
tification will be submitted to the congressional defense 
committees specifying a lesser percentage of savings that 
the Chief Management Officer determines to be necessary 
to achieve efficiencies in the delivery of covered activities, 
which notice and justification shall be submitted by not
H. R. 5515—294 
later than October 1, 2019, together with a description 
of the efficiencies to be achieved. 
(6) COMPTROLLER
GENERAL
REPORTS.—The Comptroller 
General of the United States shall submit to the congressional 
defense committees the following: 
(A) Not later than 90 days after the submittal of the 
plan under paragraph (4), a report that verifies whether 
the plan is feasible. 
(B) Not later than 270 days after the date of enactment 
of this Act, a report setting forth an assessment of the 
actions taken under paragraph (1)(A) since the date of 
the enactment of this Act. 
(C) Not later than 270 days after the submittal of 
the reporting framework under paragraph (3), a report 
that verifies whether the baseline established in the frame-
work is accurate. 
(D) Not later than 270 days after the submittal of 
the report under paragraph (5), a report that verifies— 
(i) whether the activities described in the report 
were carried out; and 
(ii) whether any cost savings estimated in the 
report are accurate. 
SEC. 922. ANALYSIS OF DEPARTMENT OF DEFENSE BUSINESS MANAGE-
MENT AND OPERATIONS DATASETS TO PROMOTE SAVINGS 
AND EFFICIENCIES. 
(a) IN GENERAL.—The Chief Management Officer of the Depart-
ment of Defense shall develop a policy on analysis of Department 
of Defense datasets on business management and business oper-
ations by the public for purposes of accessing data analysis capabili-
ties that would promote savings and efficiencies and otherwise 
enhance the utility of such datasets to the Department. 
(b) INITIAL DISCHARGE OF POLICY.— 
(1) IN GENERAL.—The Chief Management Officer shall com-
mence the discharge of the policy required pursuant to sub-
section (a) by— 
(A) identifying one or more matters— 
(i) that are of significance to the Department of 
Defense; 
(ii) that are currently unresolved; and 
(iii) whose resolution from a business management 
or business operations dataset of the Department could 
benefit from a method or technique of analysis not 
currently familiar to the Department; 
(B) identifying between three and five business 
management or business operations datasets of the Depart-
ment not currently available to the public whose evaluation 
could result in novel data analysis solutions toward 
management or operations problems of the Department 
identified by the Chief Management Officer; and 
(C) encouraging, whether by competition or other 
mechanisms, the evaluation of the datasets described in 
subparagraph (B) by appropriate persons and entities in 
the public or private sector (including academia). 
(2) PROTECTION
OF
SECURITY
AND
CONFIDENTIALITY.—In 
providing for the evaluation of datasets pursuant to this sub-
section, the Chief Management Officer shall take appropriate
H. R. 5515—295 
actions to protect the security and confidentiality of any 
information contained in the datasets, including through special 
precautions to ensure that any personally identifiable informa-
tion is not included and no release of information will adversely 
affect national security missions. 
SEC. 923. PERIODIC REVIEW OF THE DEFENSE AGENCIES AND DEPART-
MENT OF DEFENSE FIELD ACTIVITIES BY THE CHIEF 
MANAGEMENT 
OFFICER 
OF 
THE 
DEPARTMENT 
OF 
DEFENSE. 
(a) PERIODIC REVIEW.—Subsection (c) of section 192 of title 
10, United States Code, is amended— 
(1) by redesignating paragraph (2) as paragraph (3); and 
(2) by inserting before paragraph (3), as so redesignated, 
the following new paragraphs: 
‘‘(1)(A) Not later than January 1, 2020, and periodically (but 
not less frequently than every four years) thereafter, the Chief 
Management Officer of the Department of Defense shall conduct 
a review of the efficiency and effectiveness of each Defense Agency 
and Department of Defense Field Activity. Each review shall, to 
the maximum extent practicable, be conducted in coordination with 
other ongoing efforts in connection with business enterprise reform. 
‘‘(B) As part of each review under this paragraph, the Chief 
Management Officer shall identify each activity of an Agency or 
Activity that is substantially similar to, or duplicative of, an activity 
carried out by another organization or element of the Department 
of Defense, or is not being performed to an adequate level to 
meet Department needs. 
‘‘(C) For purposes of conducting reviews under this paragraph, 
the Chief Management Officer shall develop internal guidance that 
defines requirements for such reviews and provides clear direction 
for conducting and recording the results of reviews. 
‘‘(2)(A) Not later than 90 days after the completion of a review 
under paragraph (1), the Chief Management Officer shall submit 
to the congressional defense committees a report that sets forth 
the results of the review. 
‘‘(B) The report on a review under this paragraph shall, based 
on the results of the review, include the following: 
‘‘(i) A list of each Defense Agency and Department of 
Defense Field Activity that the Chief Management Officer has 
determined— 
‘‘(I) operates efficiently and effectively; and 
‘‘(II) does not carry out any function that is substan-
tially similar to, or duplicative of, a function carried out 
by another organization or element of the Department of 
Defense. 
‘‘(ii) With respect to each Agency or Activity not included 
on the list under clause (i), a plan, aimed at better meeting 
Department needs, for— 
‘‘(I) rationalizing the functions within such Agency or 
Activity; or 
‘‘(II) transferring some or all of the functions of such 
Agency or Activity to another organization or element of 
the Department. 
‘‘(iii) Recommendations for functions, if any, currently con-
ducted separately by the military departments that should 
be consolidated into an Agency or Activity.’’.