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other than the unified medical command to the 
extent directed by the Secretary of Defense; 
and 
‘‘(iii) for military construction funds of the 
Defense Health Program. 
‘‘(D) Training assigned forces. 
‘‘(E) Conducting specialized courses of instruc-
tion for commissioned and noncommissioned officers. 
‘‘(F) Validating requirements. 
‘‘(G) Establishing priorities for requirements. 
‘‘(H) Ensuring the interoperability of equip-
ment and forces. 
‘‘(I) Monitoring the promotions, assignments, 
retention, training, and professional military edu-
cation of medical officers described in paragraph (1), 
(2), (3), (4), (5), or (6) of section 335(j) of title 37. 
‘‘(3) The commander of such command shall be re-
sponsible for the Defense Health Program, including the 
Defense Health Program Account established under sec-
tion 1100 of this title. 
‘‘(g) REGULATIONS.—In establishing the unified 
medical command under subsection (a), the Secretary of 
Defense shall prescribe regulations for the activities of the 
unified medical command.’’. 
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(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 167a 
the following new item: 
‘‘167b. Unified combatant command for medical operations.’’. 
(b) PLAN, NOTIFICATION, AND REPORT.— 
(1) PLAN.—Not later than July 1, 2016, the 
Secretary of Defense shall submit to the congres-
sional defense committees a comprehensive plan to 
establish the unified medical command authorized 
under section 167b of title 10, United States Code, 
as added by subsection (a), including any legislative 
actions the Secretary considers necessary to imple-
ment the plan. 
(2) NOTIFICATION.—The Secretary shall sub-
mit to the congressional defense committees written 
notification of the time line of the Secretary to es-
tablish the unified medical command under such sec-
tion 167b by not later than the date that is 30 days 
before establishing such command. 
(3) REPORT.—Not later than 180 days after 
submitting the notification under paragraph (2), the 
Secretary shall submit to the congressional defense 
committees a report on the establishment of the uni-
fied medical command. 
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SEC. 712. LICENSURE OF MENTAL HEALTH PROFESSIONALS 
IN TRICARE PROGRAM. 
(a) IN GENERAL.—The Secretary of Defense shall 
ensure that a qualified mental health professional de-
scribed in subsection (b) is eligible for reimbursement 
under the TRICARE program as a TRICARE certified 
mental health counselor. 
(b) QUALIFIED MENTAL HEALTH CARE PROFES-
SIONAL DESCRIBED.—A qualified mental health care pro-
fessional described in this subsection is an individual 
who— 
(1) holds a masters degree or doctoral degree in 
counseling from a mental health counseling program 
or clinical mental health counseling program that is 
accredited by the Council for Accreditation of Coun-
seling and Related Educational Programs; 
(2) is licensed by a State in mental health coun-
seling at the clinical level or, with respect to a State 
that has a tiered licensing scheme, at the highest 
level available; and 
(3) has passed the National Clinical Mental 
Health Counseling Examination. 
(c) SPECIAL RULE FOR CERTAIN PRACTICING PRO-
FESSIONALS.—During the period preceding January 1, 
2027, for purposes of subsection (a), an individual who 
meets the following criteria is deemed to be a qualified 
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mental health care professional described in subsection 
(b): 
(1) The individual holds a masters degree or 
doctoral degree in counseling from a program that 
is accredited by a covered institution. 
(2) The individual has been licensed by a State 
as a mental health counselor for a period of not less 
than five years. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘covered institution’’ means any 
of the following: 
(A) The Accrediting Commission for Com-
munity and Junior Colleges Western Associa-
tion of Schools and Colleges (ACCJC-WASC). 
(B) The Higher Learning Commission 
(HLC). 
(C) The Middle States Commission on 
Higher Education (MSCHE). 
(D) The New England Association of 
Schools and Colleges Commission on Institu-
tions of Higher Education (NEASC-CIHE). 
(E) The Southern Association of Colleges 
and Schools (SACS) Commission on Colleges. 
(F) The WASC Senior College and Univer-
sity Commission (WASC-SCUC). 
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(G) The Accrediting Bureau of Health 
Education Schools (ABHES). 
(H) The Accrediting Commission of Career 
Schools and Colleges (ACCSC). 
(I) The Accrediting Council for Inde-
pendent Colleges and Schools (ACICS). 
(J) The Distance Education Accreditation 
Commission (DEAC). 
(2) The term ‘‘State’’ includes the District of 
Columbia, the Commonwealth of Puerto Rico, the 
Commonwealth of the Northern Mariana Islands, 
and each possession of the United States. 
(3) The term ‘‘TRICARE program’’ has the 
meaning given that term in section 1072 of title 10, 
United States Code. 
SEC. 713. REPORTS ON PROPOSED REALIGNMENTS OF 
MILITARY MEDICAL TREATMENT FACILITIES. 
(a) LIMITATION ON REALIGNMENT.—Chapter 55 of 
title 10, United States Code, is amended by inserting after 
section 1073b the following new section: 
‘‘§ 1073c. Reports on proposed realignments of mili-
tary medical treatment facilities 
‘‘(a) LIMITATION.—The Secretary of Defense may 
not restructure or realign a military medical treatment fa-
cility until— 
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‘‘(1) the Secretary submits to the congressional 
defense committees a report on such proposed re-
structuring or realignment; and 
‘‘(2) a period of 90 days has elapsed following 
the date of such submission. 
‘‘(b) ELEMENTS.—Each report under subsection 
(a)(1) shall include, with respect to the military medical 
treatment facility covered by the report, the following: 
‘‘(1) The average daily inpatient census. 
‘‘(2) The average inpatient capacity. 
‘‘(3) The top five inpatient admission diagnoses. 
‘‘(4) Each medical specialty available. 
‘‘(5) The average daily percent of staffing avail-
able for each medical specialty. 
‘‘(6) The beneficiary population within the 
catchment area. 
‘‘(7) The budgeted funding level. 
‘‘(8) Whether the facility has a helipad capable 
of receiving medical evacuation airlift patients arriv-
ing on the primary evacuation aircraft platform for 
the military installation served. 
‘‘(9) A determination of whether the civilian 
hospital system in which the facility resides, if any, 
is a Federally-designated underserved medical com-
munity and the effect on such community from any 
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reduction in staff or functions or downgrade of the 
facility. 
‘‘(10) If the facility serves a training center— 
‘‘(A) a determination of the risk with re-
spect to high-tempo, live-fire military oper-
ations, treating battlefield-like injuries, and the 
potential for a mass casualty event if the facil-
ity is downgraded to a clinic or reduced in per-
sonnel or capabilities; and 
‘‘(B) a description of the extent to which 
the Secretary, in making such determination, 
consulted with the appropriate training direc-
torate, training and doctrine command, and 
forces command of each military department. 
‘‘(11) A site assessment by the TRICARE pro-
gram 
to 
assess 
the 
network 
capabilities 
of 
TRICARE providers in the local area. 
‘‘(12) The inpatient mental health availability. 
‘‘(13) The average annual inpatient care di-
rected to civilian medical facilities. 
‘‘(14) The civilian capacity by medical specialty 
in each catchment area. 
‘‘(15) The distance in miles to the nearest civil-
ian emergency care department. 
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‘‘(16) The distance in miles to the closest civil-
ian inpatient hospital, listed by level of care and 
whether the facility is designated a sole community 
hospital. 
‘‘(17) The availability of ambulance service on 
the military installation and the distance in miles to 
the nearest civilian ambulance service, including the 
average response time to the military installation. 
‘‘(18) An estimate of the cost to restructure or 
realign the military medical treatment facility, in-
cluding with respect to bed closures and civilian per-
sonnel reductions. 
‘‘(19) If the military medical treatment facility 
is restructured or realigned, an estimate of— 
‘‘(A) the number of civilian personnel re-
ductions, listed by series; 
‘‘(B) the number of local support contracts 
terminated; and 
‘‘(C) the increased cost of purchased care. 
‘‘(20) An assessment of the effect of the elimi-
nation of health care services at the military medical 
treatment facility on civilians employed at such facil-
ity.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
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after the item relating to section 1073b the following new 
item: 
‘‘1073c. Reports on proposed realignments of military medical treatment facili-
ties.’’. 
SEC. 714. PILOT PROGRAM FOR OPERATION OF NETWORK 
OF RETAIL PHARMACIES UNDER TRICARE 
PHARMACY BENEFITS PROGRAM. 
(a) AUTHORITY TO ESTABLISH PILOT PROGRAM.— 
The Secretary of Defense may conduct a pilot program 
to evaluate whether, in carrying out the TRICARE phar-
macy benefits program under section 1074g of title 10, 
United States Code, operating a network of preferred re-
tail pharmacies will generate cost savings for the Depart-
ment of Defense. 
(b) ELEMENTS OF PILOT PROGRAM.—In conducting 
the pilot program under subsection (a), the Secretary 
shall— 
(1) incorporate ‘‘best practices’’ to enhance pa-
tient access from non-TRICARE health plans that 
are using a preferred retail network of pharmacies 
along with the mail-order pharmacy program of the 
plans and preferred pharmacy networks in Medicare 
Part D; 
(2) allow beneficiaries to obtain prescription 
medication that is available through the TRICARE 
pharmacy benefits program, including maintenance 
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medication, through the network of preferred retail 
pharmacies and the national mail-order pharmacy 
program under section 1074g(a)(2)(E)(iii) of title 
10 United States Code; 
(3) allow retail pharmacies participating in the 
network of preferred retail pharmacies to purchase 
prescription medication for beneficiaries in the pilot 
program at rates available to the Federal govern-
ment through its Prime Vendor contracting process; 
(4) ensure that retail pharmacies participating 
in the network of preferred retail pharmacies shall 
include small business pharmacies (as defined by the 
Small Business Administration) at a rate no lower 
than the current TRICARE pharmacy program par-
ticipation rate provided there are sufficient number 
of small business pharmacies willing to participate in 
the pilot program; 
(5) study the potential, viability, cost efficiency, 
and health care effectiveness of the TRICARE phar-
macy benefits program administering prescription 
medication through a network of preferred retail 
pharmacies in addition to the methods available pur-
suant to section 1074g(a)(2)(E) of title 10, United 
States Code; and 
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(6) determine the opportunities for and barriers 
to coordinating and leveraging the use of a network 
of preferred retail pharmacies in addition to such 
methods 
available 
pursuant 
to 
such 
section 
1074g(a)(2)(E). 
(c) SELECTION OF RETAIL PHARMACIES.—The Sec-
retary shall select the retail pharmacies to participate in 
the preferred network of preferred retail pharmacies pur-
suant to subsection (a) and shall work with small business 
pharmacies to participate in the pilot program. In making 
such selection the Secretary may— 
(1) require that retail pharmacies opt-in to the 
network and agree to the reimbursement rates paid 
by the Secretary; 
(2) determine specific criteria for each retail 
pharmacy to meet or that a certain number of retail 
pharmacies must meet; 
(3) use a competitive process; and 
(4) require the preferred pharmacy network to 
comply with the existing TRICARE retail pharmacy 
access standards. 
(d) SELECTION
OF MILITARY COMMUNITIES.—In 
carrying out the pilot program under subsection (a), the 
Secretary shall give preference to regions with high small 
business pharmacy participation rates and shall select at 
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least one region in which to carry out the pilot program. 
The Secretary shall ensure that any region selected meets 
the following criteria: 
(1) The region has a certain number or per-
centage, as determined by the Secretary, of— 
(A) members of the Armed Forces serving 
on active duty; 
(B) members of the Armed Forces serving 
in a reserve component; and 
(C) retired members of the Armed Forces. 
(2) The number of beneficiaries under para-
graph (1) is sufficient to produce statistically signifi-
cant results. 
(3) The region has at least one retail pharmacy 
that operates at least 10 pharmacy locations in the 
region. 
(4) The region has at least one military instal-
lation that has a military medical treatment facility 
with a pharmacy. 
(e) CONSULTATION.—The Secretary shall develop the 
pilot program under subsection (a) in consultation with— 
(1) the Secretaries of the military departments; 
(2) retail pharmacies; 
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(3) representatives from the military installa-
tions within the region selected under subsection (d); 
and 
(4) the TRICARE-managed pharmacy con-
tractor with responsibility for the national pharmacy 
mail-order program. 
(f) DURATION OF PILOT PROGRAM.—If the Secretary 
of Defense carries out the pilot program under subsection 
(a), the Secretary shall commence such pilot program by 
not later than May 1, 2016, and shall terminate such pro-
gram on September 30, 2018. 
(g) REPORTS.—If the Secretary of Defense carries 
out the pilot program under subsection (a), the Secretary 
of Defense shall submit to the congressional defense com-
mittees reports on the pilot program as follows: 
(1) Not later than 90 days after the date of the 
enactment of this Act, a report containing an imple-
mentation plan for the pilot program. 
(2) Not later than 90 days after the date on 
which the pilot program commences, and semiannu-
ally thereafter during the period in which the pilot 
program is carried out, an interim report on the 
pilot program. 
(3) Not later than 90 days after the date on 
which the pilot program terminates, a final report 
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describing the results of the pilot program, including 
any recommendations of the Secretary to expand 
such program. 
Subtitle C—Reports and Other 
Matters 
SEC. 721. EXTENSION OF AUTHORITY FOR DOD-VA HEALTH 
CARE SHARING INCENTIVE FUND. 
Section 8111(d)(3) of title 38, United States Code, 
is amended by striking ‘‘September 30, 2015’’ and insert-
ing ‘‘September 30, 2020’’. 
SEC. 722. EXTENSION OF AUTHORITY FOR JOINT DEPART-
MENT OF DEFENSE-DEPARTMENT OF VET-
ERANS AFFAIRS MEDICAL FACILITY DEM-
ONSTRATION FUND. 
Section 1704(e) of the National Defense Authoriza-
tion Act for Fiscal Year 2010 (Public Law 111–84; 123 
Stat. 2573), as amended by section 722 of the National 
Defense Authorization Act for Fiscal Year 2015 (Public 
Law 113–291;128 Stat. 3417), is amended by striking 
‘‘September 30, 2016’’ and inserting ‘‘September 30, 
2017’’. 
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SEC. 723. LIMITATION ON AVAILABILITY OF FUNDS FOR DE-
PARTMENT OF DEFENSE HEALTHCARE MAN-
AGEMENT SYSTEMS MODERNIZATION. 
Of the funds authorized to be appropriated by this 
Act or otherwise made available for fiscal year 2016 for 
the Department of Defense Healthcare Management Sys-
tems Modernization, not more than 75 percent may be ob-
ligated or expended until the date on which the Secretary 
of Defense makes the certification required by section 
713(g)(2) of the National Defense Authorization Act for 
Fiscal Year 2014 (Public Law 113–66; 10 U.S.C. 1071 
note). 
SEC. 724. PRIMARY BLAST INJURY RESEARCH. 
The peer-reviewed Psychological Health and Trau-
matic Brain Injury Research Program shall conduct a 
study on blast injury mechanics covering a wide range of 
primary blast injury conditions, including traumatic brain 
injury, in order to accelerate solution development in this 
critical area. 
SEC. 725. SENSE OF CONGRESS REGARDING MENTAL 
HEALTH COUNSELING FOR MEMBERS OF THE 
ARMED FORCES AND FAMILIES. 
(a) FINDINGS.—Congress finds the following: 
(1) It has been shown that some members of 
the Armed Forces struggle with post-traumatic 
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stress and other behavioral health disorders from 
traumatic events experienced during combat. 
(2) It has also been shown that emotional dis-
tress and trauma from life events can be exacerbated 
by traumatic events experienced during combat. 
(3) Members of the Armed Forces who struggle 
with post-traumatic stress and other behavioral 
health disorders are often unable to provide emo-
tional support to spouses and children, causing emo-
tional distress and the risk of behavioral health dis-
orders among the dependents of the members. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) the Department of Defense should continue 
to support members of the Armed Forces and their 
families by providing family counseling and indi-
vidual counseling services that reduce the symptoms 
of post-traumatic stress and other behavioral health 
disorders and empowers members to be emotionally 
available to their spouses and children; 
(2) such services should be readily available at 
branches of the Department and military bases; 
(3) the Department should rely on industry 
standards established by the medical community 
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when developing standards for their own practice of 
family and individual counseling; and 
(4) the Department should conduct a five-year 
study of the progress of members of the Armed 
Forces that are treated for mental health disorders, 
including with respect to— 
(A) difficulty keeping up with treatment; 
(B) familial status before and after treat-
ment; and 
(C) access to mental health counseling at 
Department facilities and military installations. 
SEC. 726. PROVISION OF TRANSPORTATION OF DEPENDENT 
PATIENTS RELATING TO OBSTETRICAL ANES-
THESIA SERVICES. 
Section 1040(a)(2) of title 10, United States Code, 
is amended by striking subparagraph (F). 
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS 
SEC. 800. SENSE OF CONGRESS ON THE DESIRED TENETS 
OF THE DEFENSE ACQUISITION SYSTEM. 
(a) FINDINGS.—Congress finds the following: 
(1) The Committee on Armed Services of the 
House of Representatives held a series of hearings 
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in 2013, 2014, and 2015 gathering testimony from 
key acquisition leaders and experts. It is clear that 
the acquisition reform efforts of the last 50 years 
continue to founder because they fail to address the 
motivational and environmental factors in which 
they must be implemented. The acquisition system, 
though frustrating to all, is in one sense in equi-
librium. The acquisition system provides enough 
benefits to proponents and opponents to continue, 
with only minor changes, despite its shortcomings. 
(2) The Armed Forces continue to pursue too 
many defense acquisitions, chasing too few dollars. 
Consequently, there remains a vast difference be-
tween the budgeting plans of the Department and 
the reality of the cost of its systems or the services 
it acquires. 
(3) To keep programs alive, the Department de-
velops and Congress accepts fragile acquisition strat-
egies that downplay technical issues and assume 
only successful outcomes from high-risk efforts. As 
a result, the Department often ends up with too few 
weapons, with performance that falls short, that are 
difficult and costly to maintain, delivered late at too 
high a cost. Congressional and Department of De-
fense leadership have limited insight into the serv-
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ices acquired or what services need to be acquired in 
the future. Furthermore, the conventional acquisi-
tion process is not agile enough for today’s demands. 
Finally, the Department of Defense continues to 
struggle with financial management and auditability, 
affecting its ability to control costs, ensure basic ac-
countability, anticipate future costs and claims on 
the budget, and measure performance. 
(4) Too often today, all stakeholders in the De-
partment of Defense, Congress, and industry, accept 
that— 
(A) for the acquisition process, success is 
defined as maximizing technical performance or 
protecting organizational interests, without re-
gard to funding disruptions and delivery delays 
of 
needed 
capability 
or 
services 
to 
the 
warfighter; and 
(B) the acquisition process is— 
(i) reactive, meaning issues are ad-
dressed late and at great cost only after 
problems are realized; 
(ii) plodding, meaning the bureau-
cratic processes are sclerotic and cum-
bersome; 
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(iii) opaque, meaning that limiting in-
formation is necessary to protect pro-
grams; and 
(iv) traditional, meaning that cus-
tomary approaches and suppliers are pre-
ferred over perceived risk of new or unique 
concepts and vendors. 
(5) Today, the United States is at a cross- 
roads, and if changes to the acquisition system are 
not made soon, the trend of fewer and more costly 
systems and services that fall short of the needs of 
the Armed Forces will continue. Congress, the De-
partment of Defense, and industry all have a stake 
in making positive changes. Each plays a role in 
contributing to the current system. Each gains bene-
fits from that system, but each is frustrated by it as 
well. 
(6) The acquisition improvement effort of the 
Committee on Armed Services of the House of Rep-
resentatives proposes a different approach from pre-
vious efforts by seeking to improve the environment 
(i.e., statutes, regulations, processes, and culture) 
driving acquisition decisions in the Department of 
Defense, industry, and Congress. The Committee 
has solicited input from industry and the Depart-
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ment of Defense, as well as others in Congress, and 
will continue to do so. The Committee recognizes 
that there are no ‘‘silver bullets’’ that can imme-
diately fix the current acquisition system in a holis-
tic and long-standing manner. Therefore, the reform 
effort will be an ongoing and iterative process that 
will result in legislation not only this year, but will 
be embedded in the Committee’s annual and regular 
work. 
(b) SENSE OF CONGRESS ON THE TENETS OF AN IM-
PROVED ACQUISITION SYSTEM.—It is the sense of Con-
gress that all stakeholders in the acquisition system—the 
Department of Defense, Congress, and industry—should 
be governed by the following tenets: 
(1) SUCCESS.—Success in the acquisition sys-
tem means the timely delivery of affordable and ef-
fective military equipment and services. 
(2) PROACTIVE.—The acquisition system should 
be proactive, meaning— 
(A) the system should recognize that devel-
opment and acquisition problems can occur; and 
(B) officials at all levels should be empow-
ered to solve problems and reduce risks by sur-
facing issues early and honestly and taking ac-
tion to resolve them. 
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(3) AGILE.—The acquisition system should be 
agile, meaning that needed program adjustments to 
both respond to emerging threats and the rapid pace 
of technological change and to address development 
or production issues should be proposed and adju-
dicated quickly. 
(4) TRANSPARENT.—The acquisition system 
should be transparent, meaning that— 
(A) all decision makers should be given 
useful, relevant, credible, and reliable informa-
tion when making commitments; 
(B) Government and industry communica-
tion should be clear and open; and 
(C) the Department of Defense should 
produce auditable financial management state-
ments. 
(5) 
INNOVATIVE.—The 
acquisition 
system 
should be innovative, meaning that barriers should 
be removed that preclude companies from under-
taking defense business or officials from proposing 
new approaches. 
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Subtitle A—Acquisition Policy and 
Management 
SEC. 801. REPORT ON LINKING AND STREAMLINING RE-
QUIREMENTS, ACQUISITION, AND BUDGET 
PROCESSES WITHIN ARMED FORCES. 
(a) REPORTS.—Not later than 180 days after the 
date of the enactment of this Act, the Chief of Staff of 
the Army, the Chief of Naval Operations, the Chief of 
Staff of the Air Force, and the Commandant of the Ma-
rine Corps shall each submit to the congressional defense 
committees a report on efforts to link and streamline the 
requirements, acquisition, and budget processes within the 
Army, Navy, Air Force, and Marine Corps, respectively. 
(b) MATTERS INCLUDED.—Each report under sub-
section (a) shall include the following: 
(1) A specific description of— 
(A) the management actions the Chief con-
cerned or the Commandant has taken or plans 
to take to link and streamline the requirements, 
acquisition, and budget processes of the Armed 
Force concerned; 
(B) any reorganization or process changes 
that will link and streamline the requirements, 
acquisition, and budget processes of the Armed 
Force concerned; and 
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(C) any cross-training or professional de-
velopment initiatives of the Chief concerned or 
the Commandant. 
(2) For each description under paragraph (1)— 
(A) the specific timeline associated with 
implementation; 
(B) the anticipated outcomes once imple-
mented; and 
(C) how to measure whether or not those 
outcomes are realized. 
(3) Any other matters the Chief concerned or 
the Commandant considers appropriate. 
SEC. 802. REQUIRED REVIEW OF ACQUISITION-RELATED 
FUNCTIONS OF THE CHIEFS OF STAFF OF 
THE ARMED FORCES. 
(a) REVIEW REQUIRED.—The Chief of Staff of the 
Army, the Chief of Naval Operations, the Chief of Staff 
of the Air Force, and the Commandant of the Marine 
Corps shall conduct a review of their current individual 
authorities provided in sections 3033, 5033, 8033, and 
5043 of title 10, United States Code, and other relevant 
statutes and regulations related to defense acquisitions for 
the purpose of developing such recommendations as the 
Chief concerned or the Commandant considers necessary 
to further or advance the role of the Chief concerned or 
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the Commandant in the development of requirements, ac-
quisition processes, and the associated budget practices of 
the Department of Defense. 
(b) REPORTS.—Not later than March 1, 2016, the 
Chief of Staff of the Army, the Chief of Naval Operations, 
the Chief of Staff of the Air Force, and the Commandant 
of the Marine Corps shall each submit to the congressional 
defense committees a report containing, at a minimum, 
the following: 
(1) The recommendations developed by the 
Chief concerned or the Commandant under sub-
section (a) and other results of the review conducted 
under such subsection. 
(2) The actions the Chief concerned or the 
Commandant is taking, if any, within the Chief’s or 
Commandant’s existing authority to implement such 
recommendations. 
SEC. 803. INDEPENDENT STUDY OF MATTERS RELATED TO 
BID PROTESTS. 
(a) REQUIREMENT FOR STUDY.—Not later than 180 
days after the date of the enactment of this Act, the Sec-
retary of Defense shall enter into a contract with an inde-
pendent research entity that is a not-for-profit entity or 
a federally funded research and development center with 
appropriate expertise and analytical capability to carry out 
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a comprehensive study of factors leading to the filing of 
bid protests. The study shall cover the entire Federal Gov-
ernment and examine issues such as the following: 
(1) The variable influences on the net benefit 
(monetary and non-monetary) to contractors either 
filing a protest or indicating intent to file a protest. 
(2) The extent to which protests are filed by in-
cumbent contractors for purposes of extending a 
contract’s period of performance. 
(3) The extent to which companies file protests 
even when those companies do not believe there was 
an error in the procurement process. 
(4) The time it takes agencies to implement 
corrective actions after a ruling or decision. 
(b) REPORT.—Not later than one year after the date 
of the enactment of this Act, the independent entity shall 
provide to the Secretary, the congressional defense com-
mittees, the Committee on Oversight and Government Re-
form of the House of Representatives, and the Committee 
on Homeland Security and Governmental Affairs of the 
Senate a report on the results of the study, along with 
any recommendations it may have. 
SEC. 804. PROCUREMENT OF COMMERCIAL ITEMS. 
(a) COMMERCIAL ITEM DETERMINATIONS BY DE-
PARTMENT OF DEFENSE.— 
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(1) IN
GENERAL.—Chapter 140 of title 10, 
United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 2380. Commercial item determinations by Depart-
ment of Defense 
‘‘The Secretary of Defense shall— 
‘‘(1) establish and maintain a centralized capa-
bility with necessary expertise and resources to over-
see the making of commercial item determinations 
for the purposes of procurements by the Department 
of Defense; and 
‘‘(2) provide public access to Department of 
Defense commercial item determinations for the pur-
poses of procurements by the Department of De-
fense.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by adding at the end the following new item: 
‘‘2380. Commercial item determinations by Department of Defense.’’. 
(b) COMMERCIAL ITEM EXCEPTION TO SUBMISSION 
OF COST AND PRICING DATA.—Section 2306a(b) of title 
10, United States Code, is amended by adding at the end 
the following new paragraph: 
‘‘(4) COMMERCIAL ITEM DETERMINATION.—(A) 
For purposes of applying the commercial item excep-
tion under paragraph (1)(B) to the required submis-
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sion of certified cost or pricing data, the contracting 
officer may presume that a prior commercial item 
determination made by a military department, a De-
fense Agency, or another component of the Depart-
ment of Defense shall serve as a determination for 
subsequent procurements of such item. 
‘‘(B) If the contracting officer does not make 
the presumption described in subparagraph (A) and 
instead chooses to proceed with a procurement of an 
item previously determined to be a commercial item 
using procedures other than the procedures author-
ized for the procurement of a commercial item, the 
contracting officer shall request a review of the com-
mercial item determination by the head of the con-
tracting activity. 
‘‘(C) Not later than 30 days after receiving a 
request for review of a commercial item determina-
tion under subparagraph (B), the head of a con-
tracting activity shall— 
‘‘(i) confirm that the prior determination 
was appropriate and still applicable; or 
‘‘(ii) issue a revised determination with a 
written explanation of the basis for the revi-
sion.’’. 
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(c) DEFINITION OF COMMERCIAL ITEM.—Nothing in 
this section or the amendments made by this section shall 
affect the meaning of the term ‘‘commercial item’’ under 
subsection (a)(5) of section 2464 of title 10, United States 
Code, or any requirement under subsection (a)(3) or sub-
section (c) of such section. 
SEC. 805. MODIFICATION TO INFORMATION REQUIRED TO 
BE SUBMITTED BY OFFEROR IN PROCURE-
MENT OF MAJOR WEAPON SYSTEMS AS COM-
MERCIAL ITEMS. 
(a) REQUIREMENT
FOR
DETERMINATION.—Sub-
section (a) of section 2379 of title 10, United States Code, 
is amended— 
(1) in subsection (1)(B), by inserting ‘‘and’’ 
after the semicolon; 
(2) by striking paragraph (2); and 
(3) by redesignating paragraph (3) as para-
graph (2). 
(b) TREATMENT OF SUBSYSTEMS AS COMMERCIAL 
ITEMS.—Subsection (b) of such section is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘only if’’ and inserting ‘‘if either’’; 
(2) in paragraph (2)— 
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(A) by striking ‘‘that—’’ and all that fol-
lows through ‘‘the subsystem is a’’ and insert-
ing ‘‘that the subsystem is a’’; 
(B) by striking ‘‘; and’’ and inserting a pe-
riod; and 
(C) by striking subparagraph (B). 
(c) TREATMENT OF COMPONENTS AS COMMERCIAL 
ITEMS.—Subsection (c)(1) of such section is amended— 
(1) by striking ‘‘title only if’’ and inserting 
‘‘title if either’’; and 
(2) in subparagraph (B)— 
(A) by striking ‘‘that—’’ and all that fol-
lows through ‘‘the component or’’ and inserting 
‘‘that the component or’’; 
(B) by striking ‘‘; and’’ and inserting a pe-
riod; and 
(C) by striking clause (ii). 
(d) INFORMATION SUBMITTED.—Subsection (d) of 
such section is amended— 
(1) by striking ‘‘submit—’’ and all that follows 
through ‘‘prices paid’’ and inserting ‘‘submit prices 
paid’’; 
(2) by striking ‘‘; and’’ and inserting a period; 
and 
(3) by striking paragraph (2). 
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SEC. 806. AMENDMENT RELATING TO MULTIYEAR CON-
TRACT AUTHORITY FOR ACQUISITION OF 
PROPERTY. 
Paragraph (1) of section 2306b(a) of title 10, United 
States Code, is amended to read as follows: 
‘‘(1) That there is a reasonable expectation that 
the use of such a contract will result in lower total 
anticipated costs of carrying out the program than 
if the program were carried out through annual con-
tracts.’’. 
SEC. 807. COMPLIANCE WITH INVENTORY OF CONTRACTS 
FOR SERVICES. 
Of the funds authorized to be appropriated by this 
Act or otherwise made available for fiscal year 2016 for 
the operation of the Office of the Under Secretary of De-
fense for Personnel and Readiness, not more than 75 per-
cent may be obligated or expended in fiscal year 2016 
until— 
(1) the ‘‘Department of Defense Compliance 
Plan for Section 8108(c) of Public Law 112–10’’, as 
contained in a memorandum and enclosure dated 
November 22, 2011, is implemented; 
(2) the implementing direction contained in the 
‘‘Enterprise-wide Contractor Manpower Reporting 
Application’’, as contained in a memorandum dated 
November 28, 2012, from the Under Secretary of 
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Defense for Acquisition, Technology, and Logistics 
and the (then) Acting Principal Deputy Under Sec-
retary of Defense for Personnel and Readiness is 
fulfilled; and 
(3) the funds made available in March 2014 to 
establish the Total Force Management Support Of-
fice to define business processes for compiling, re-
viewing, and using the inventory required under sec-
tion 2330a(c) of title 10, United States Code, have 
been obligated. 
Subtitle B—Workforce 
Development and Related Matters 
SEC. 811. AMENDMENTS TO DEPARTMENT OF DEFENSE AC-
QUISITION 
WORKFORCE 
DEVELOPMENT 
FUND. 
(a) PERMANENT EXTENSION
OF FUND.—Section 
1705(d)(2) of title 10, United States Code, is amended— 
(1) in subparagraph (C), by striking ‘‘of an 
amount as follows:’’ and all that follows through the 
end and inserting ‘‘of an amount of not less than 
$500,000,000.’’; and 
(2) in subparagraph (D), by striking ‘‘an 
amount that is less than’’ and all that follows 
through the end and inserting ‘‘an amount that is 
less than $400,000,000.’’. 
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(b) PERMANENT EXTENSION OF EXPEDITED HIRING 
AUTHORITY.—Section 1705(g) of such title is amended— 
(1) by striking paragraph (2); 
(2) by striking ‘‘AUTHORITY.—’’ and all that 
follows through ‘‘For purposes of’’ in paragraph (1) 
and inserting ‘‘AUTHORITY.—For purposes of’’; 
(3) by striking ‘‘(A)’’ and inserting ‘‘(1)’’; 
(4) by striking ‘‘(B)’’ and inserting ‘‘(2)’’; and 
(5) by aligning paragraphs (1) and (2), as des-
ignated by paragraphs (3) and (4), so as to be two 
ems from the left margin. 
(c) CLARIFICATION
OF ACQUISITION WORKFORCE 
COVERED.—Section 1705(g) of such title, as amended by 
subsection (c), is further amended by striking ‘‘acquisition 
workforce positions’’ and inserting ‘‘of positions in the ac-
quisition workforce, as defined in subsection (h),’’. 
SEC. 812. DUAL-TRACK MILITARY PROFESSIONALS IN 
OPERATIONAL AND ACQUISITION SPECIALI-
TIES. 
(a) REQUIREMENT FOR SERVICE CHIEF INVOLVE-
MENT.—Section 1722a(a) of title 10, United States Code, 
is amended by inserting after ‘‘military department)’’ the 
following: ‘‘, in collaboration with the Chief of Staff of the 
Army, the Chief of Naval Operations, the Chief of Staff 
of the Air Force, and the Commandant of the Marine 
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Corps (with respect to the Army, Navy, Air Force, and 
Marine Corps, respectively),’’. 
(b) DUAL-TRACK CAREER PATH.—Section 1722a(b) 
of such title is amended— 
(1) by redesignating paragraphs (2) and (3) as 
paragraphs (3) and (4), respectively; 
(2) in paragraph (1), by inserting ‘‘single- 
track’’ before ‘‘career path’’; and 
(3) by inserting after paragraph (1) the fol-
lowing new paragraph (2): 
‘‘(2) A dual-track career path that attracts the 
highest quality officers and enlisted personnel and 
allows them to gain experience in and receive credit 
for a primary career in combat arms and a func-
tional secondary career in the acquisition field in 
order to more closely align the military operational, 
requirements, and acquisition workforces of each 
armed force.’’. 
SEC. 813. PROVISION OF JOINT DUTY ASSIGNMENT CREDIT 
FOR ACQUISITION DUTY. 
Section 668(a)(1) of title 10, United States Code, is 
amended— 
(1) by striking ‘‘or’’ at the end of subparagraph 
(D); 
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(2) by striking the period at the end of sub-
paragraph (E) and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(F) acquisition matters addressed by military 
personnel and covered under chapter 87 of this 
title.’’. 
SEC. 814. REQUIREMENT FOR ACQUISITION SKILLS ASSESS-
MENT 
BIENNIAL 
STRATEGIC 
WORKFORCE 
PLAN. 
(a) REQUIREMENT.—Section 115b(b)(1) of title 10, 
United States Code, is amended— 
(1) by redesignating subparagraph (D) as sub-
paragraph (E); 
(2) in subparagraph (C), by striking ‘‘and’’ at 
the end; and 
(3) by inserting after subparagraph (C) the fol-
lowing: 
‘‘(D) new or expanded critical skills and 
competencies needed by the existing civilian em-
ployee workforce of the Department to address 
new acquisition process requirements estab-
lished by law or policy during the four years 
preceding the year of submission of the plan; 
and’’. 
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(b) CONFORMING AMENDMENTS.—Section 115b of 
such title is further amended— 
(1) in subparagraph (E) of subsection (b)(1), as 
redesignated by subsection (a)(1), by striking ‘‘(C)’’ 
and inserting ‘‘(D)’’; 
(2) in paragraph (2) of subsection (b), in the 
matter preceding subparagraph (A), by striking 
‘‘(1)(D)’’ and inserting ‘‘(1)(E)’’; and 
(3) in paragraph (2)(A) of each of subsections 
(c), (d), and (e), by striking ‘‘through (D)’’ and in-
serting ‘‘through (E)’’. 
SEC. 815. MANDATORY REQUIREMENT FOR TRAINING RE-
LATED TO THE CONDUCT OF MARKET RE-
SEARCH. 
(a) MANDATORY MARKET RESEARCH TRAINING.— 
Section 2377 of title 10, United States Code, is amended 
by adding at the end the following new subsection: 
‘‘(d) MARKET RESEARCH TRAINING REQUIRED.— 
The Secretary of Defense shall provide mandatory train-
ing for members of the armed forces and employees of the 
Department of Defense responsible for the conduct of 
market research required under subsection (c). Such man-
datory training shall, at a minimum— 
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‘‘(1) provide comprehensive information on the 
subject of market research and the function of mar-
ket research in the acquisition of commercial items; 
‘‘(2) teach best practices for conducting and 
documenting market research; and 
‘‘(3) provide methodologies for establishing 
standard processes and reports for collecting and 
sharing market research across the Department.’’. 
(b) INCORPORATION INTO MANAGEMENT CERTIFI-
CATION TRAINING MANDATE.—The Chairman of the 
Joint Chiefs of Staff shall ensure that the requirements 
of section 2377(d) of title 10, United States Code, as 
added by subsection (a), are incorporated into the require-
ments management certification training mandate of the 
Joint Capabilities Integration Development System. 
SEC. 816. INDEPENDENT STUDY OF IMPLEMENTATION OF 
DEFENSE 
ACQUISITION 
WORKFORCE 
IM-
PROVEMENT EFFORTS. 
(a) REQUIREMENT FOR STUDY.—Not later than 30 
days after the date of the enactment of this Act, the Sec-
retary of Defense shall enter into a contract with an inde-
pendent research entity described in subsection (b) to 
carry out a comprehensive study of the strategic planning 
of the Department of Defense related to the defense acqui-
sition workforce. The study shall provide a comprehensive 
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examination of the Department’s efforts to recruit, de-
velop, and retain the acquisition workforce with a specific 
review of the following: 
(1) The implementation of the Defense Acquisi-
tion Workforce Improvement Act (including chapter 
87 of title 10, United States Code). 
(2) The application of the Department of De-
fense Acquisition Workforce Development Fund (as 
established under section 1705 of title 10, United 
States Code). 
(3) The effectiveness of professional military 
education programs, including fellowships and ex-
changes with industry. 
(b) INDEPENDENT RESEARCH ENTITY.—The entity 
described in this subsection is an independent research en-
tity that is a not-for-profit entity or a federally funded 
research and development center with appropriate exper-
tise and analytical capability. 
(c) REPORTS.— 
(1) TO SECRETARY.—Not later than one year 
after the date of the enactment of this Act, the inde-
pendent research entity shall provide to the Sec-
retary a report containing— 
(A) the results of the study required by 
subsection (a); and 
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(B) such recommendations to improve the 
acquisition workforce as the independent re-
search entity considers to be appropriate. 
(2) TO
CONGRESS.—Not later than 30 days 
after receipt of the report under paragraph (1), the 
Secretary of Defense shall submit such report, to-
gether with any additional views or recommendations 
of the Secretary, to the congressional defense com-
mittees. 
SEC. 817. EXTENSION OF DEMONSTRATION PROJECT RE-
LATING 
TO 
CERTAIN 
ACQUISITION 
PER-
SONNEL MANAGEMENT POLICIES AND PRO-
CEDURES. 
Section 1762(g) of title 10, United States Code, is 
amended by striking ‘‘2017’’ and inserting ‘‘2020’’. 
Subtitle C—Weapon Systems 
Acquisition and Related Matters 
SEC. 821. SENSE OF CONGRESS ON THE DESIRED CHARAC-
TERISTICS FOR THE WEAPON SYSTEMS AC-
QUISITION SYSTEM. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) CURRENT SITUATION.—Despite significant 
and repeated attempts at acquisition reform, the De-
partment of Defense still experiences case after case 
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of expensive weapon system acquisition failures. The 
Department of Defense has a track record of too 
many cancellations, schedule slippages, cost over- 
runs, and failures to deliver timely solutions to the 
requirements of the Armed Forces. This situation is 
unacceptable. For example, according to the Final 
Report of the 2010 Army Acquisition Review, be-
tween 1996 and 2010, the Army expended approxi-
mately $1 billion to $3 billion annually on two dozen 
programs that were eventually cancelled. No military 
service and no type of weapon acquisition has been 
immune. 
(2) PROBLEMS
IN
ALL
PHASES
OF
ACQUISI-
TIONS.— 
(A) Despite detailed weapon acquisition 
processes and procedures, there is only limited 
discipline in starting programs. Many programs 
begin without a solid foundation. They have too 
many requirements deemed ‘‘critical’’, which 
are driven by too many organizations and indi-
viduals. Approved requirements are often set 
with only a limited understanding of the tech-
nical feasibility of achieving them. The resulting 
compromises of good program management and 
engineering judgment that allow the programs 
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to proceed are the ‘‘spackle’’ of the acquisition 
system that covers up the risks and enables the 
system to operate. 
(B) As these weapon systems proceed into 
engineering and manufacturing development, 
they often encounter development problems 
leading to cost growth, schedule delay, and per-
formance reductions. Industry and Government 
officials frequently respond by taking additional 
development risks to resolve basic performance 
issues by reducing the time to analyze and as-
sess development results, overlapping key devel-
opment efforts, and reducing testing. The De-
partment of Defense and Congress disrupt the 
planned funding of stable programs to find re-
sources for troubled programs or to fund 
across-the-board spending cuts. Funding insta-
bility is the inevitable price that programs pay 
for survival because funding disruptions actu-
ally keep more programs alive. 
(C) Finally, these weapons are often 
rushed into production only to encounter pro-
duction problems, and are fielded with many 
unknowns or deficiencies leading to significantly 
reduced quantities and force structure reduc-
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tions. The warfighter faces the challenge of op-
erating weapons with poor reliability, high 
maintenance demands, reduced performance, 
and many capability shortfalls. 
(b) SENSE OF CONGRESS.— 
(1) IN GENERAL.—It is the sense of Congress 
that, in accordance with the tenets described in sec-
tion 800, to improve weapon system acquisitions, the 
Department of Defense, Congress, and industry 
should develop an acquisition system characterized 
by highly disciplined program initiation coupled with 
agile program execution and balanced oversight, as 
described in paragraphs (2), (3), and (4). 
(2) HIGHLY
DISCIPLINED
PROGRAM
INITI-
ATION.—An acquisition system characterized by 
highly disciplined program initiation means that pro-
grams do not begin engineering development until 
firm requirements are matched to a flexible acquisi-
tion strategy structured to develop militarily useful 
capability that can be delivered in a relevant period 
of time with available technologies, funding, and 
management capacity. Such a highly disciplined pro-
gram initiation includes— 
(A) a workforce with smart requirements 
setters and expert buyers, with the knowledge, 
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skills, and experience to successfully plan for 
and execute highly complex acquisitions; 
(B) requirements that are well-defined, 
technically feasible, and affordable; 
(C) acquisition strategies that are designed 
to minimize time to market of militarily useful 
capability, with the program concerned being 
structured so that— 
(i) lower-risk, technically mature ca-
pabilities are matched to delivering capa-
bility to the warfighter in the near term, 
while remaining requirements are aligned 
and resources are programmed to support 
integration into later increments to meet 
the requirements of the Armed Forces; 
(ii) capabilities are approved for an 
increment only when their developmental 
risks have been appropriately reduced; and 
(iii) increments are planned to com-
plete engineering and manufacturing devel-
opment in a reasonable period of time; 
(D) a science and technology development 
enterprise that is responsive to the acquisition 
process before engineering and manufacturing 
development begins, and sufficiently resourced 
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to reduce risks and enable programs to make 
smart decisions without losing critical funds; 
and 
(E) redtape reduction in order to free up 
program and Department officials to focus on 
their mission of defining an executable program 
and understanding and addressing risks. 
(3) AGILE PROGRAM EXECUTION.—An acquisi-
tion system characterized by agile program execution 
means a system in which acquisition speed and flexi-
bility to make trade-offs are balanced with the need 
to achieve desired technical performance. Such agile 
program execution includes— 
(A) program managers and program offi-
cials who are expert buyers and negotiators who 
anticipate problems, negotiate solutions, and 
are empowered to manage; 
(B) a preference for fixed price contracting 
where appropriate for the size and complexity 
of the work and for the nature and scope of the 
capabilities being developed; 
(C) program managers who avoid increas-
ing program risk by resisting the addition of 
new requirements or the reduction of develop-
mental activities; 
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(D) empowering program managers and 
senior decisionmakers to make decisions easily 
in order to move forward with capabilities that 
mature quickly, cancel those that encounter 
greater difficulties than expected, and trade-off 
or reduce requirements to maintain cost and 
schedule; 
(E) enabling program managers to focus 
on overcoming execution challenges and deliv-
ering success rather than concentrating on com-
pliance with reporting, certifications, and other 
redtape; and 
(F) senior decisionmakers who have knowl-
edge of demonstrated performance as programs 
proceed through development, with robust de-
velopmental testing occurring before committing 
to production for operational use as a basis for 
decision making. 
(4) BALANCED
OVERSIGHT.—An acquisition 
system characterized by balanced oversight means 
that the focus is on ensuring discipline initiating 
programs and that appropriate adjustments are 
made during development, so that programs have 
the best chance to succeed. Such balanced oversight 
includes— 
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(A) involvement by decisionmakers early to 
ensure that an understanding of trade-offs, 
risks, and needs are considered, resourced, and 
validated, and that agreement is reached be-
tween the executive and legislative branches; 
(B) acceptance by decisionmakers that 
complex weapon system developments are inher-
ently risky and require expertise and flexibility 
to manage effectively; 
(C) conscious decisions by decisionmakers 
regarding where to accept risk, while ensuring 
that risk mitigation plans are resourced (with 
time, funding, alternatives, and competent gov-
ernment and contractor officials); 
(D) measuring and monitoring by decision-
makers of the right factors, such as technology 
maturation progress and systems engineering 
during risk reduction, development cost growth 
during engineering and manufacturing develop-
ment, and reliability growth during system 
demonstration; 
(E) work by Congress and the Department 
of Defense, once a program has begun, to re-
solve issues by considering trade-offs among 
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cost, schedule, and performance necessary to 
best support the warfighter; and 
(F) congressional understanding of risks 
and efforts to mitigate such risks even if they 
are through non-traditional means or other 
technological advances. 
SEC. 822. ACQUISITION STRATEGY REQUIRED FOR EACH 
MAJOR DEFENSE ACQUISITION PROGRAM 
AND MAJOR SYSTEM. 
(a) CONSOLIDATION OF REQUIREMENTS RELATING 
TO ACQUISITION STRATEGY.— 
(1) NEW TITLE 10 SECTION.—Chapter 144 of 
title 10, United States Code, is amended by insert-
ing after section 2431 the following new section: 
‘‘§ 2431a. Acquisition strategy 
‘‘(a) ACQUISITION
STRATEGY
REQUIRED.—There 
shall be an acquisition strategy for each major defense ac-
quisition program and each major system approved by a 
Milestone Decision Authority. 
‘‘(b) RESPONSIBLE OFFICIAL.—For each acquisition 
strategy required by subsection (a), the Under Secretary 
of Defense for Acquisition, Technology, and Logistics is 
responsible for issuing and maintaining the requirements 
for— 
‘‘(1) the content of the strategy; and 
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‘‘(2) the review and approval process for the 
strategy. 
‘‘(c) CONSIDERATIONS.—(1) In issuing requirements 
for the content of an acquisition strategy for a major de-
fense acquisition program or major system, the Under 
Secretary shall ensure that— 
‘‘(A) the strategy clearly describes the proposed 
business and technical management approach for the 
program or system, in sufficient detail to allow the 
Milestone Decision Authority to assess the viability 
of the proposed approach; 
‘‘(B) the strategy contains a clear explanation 
of how the strategy is designed to be implemented 
with available resources, such as time, funding, and 
management capacity; and 
‘‘(C) the strategy considers the items listed in 
paragraph (2). 
‘‘(2) Each strategy shall, at a minimum, consider the 
following: 
‘‘(A) An approach that delivers required capa-
bility in increments, each depending on available ma-
ture technology, and that recognizes up front the 
need for future capability improvements. 
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‘‘(B) Acquisition approach, including industrial 
base considerations in accordance with section 2440 
of this title. 
‘‘(C) Risk management, including such methods 
as competitive prototyping at the system, subsystem, 
or component level, in accordance with section 
2431b of this title. 
‘‘(D) Business strategy, including measures to 
ensure competition at the system and subsystem 
level throughout the life-cycle of the program or sys-
tem in accordance with section 2337 of this title. 
‘‘(E) Contracting strategy, including— 
‘‘(i) contract type and how the type se-
lected relates to level of program risk in each 
acquisition phase; 
‘‘(ii) how the plans for the program or sys-
tem to reduce risk enable the use of fixed-price 
elements in subsequent contracts and the tim-
ing of the use of those fixed price elements; 
‘‘(iii) market research; and 
‘‘(iv) consideration of small business par-
ticipation. 
‘‘(F) Intellectual property strategy in accord-
ance with section 2320 of this title. 
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‘‘(G) International involvement, including for-
eign military sales and cooperative opportunities, in 
accordance with section 2350a of this title. 
‘‘(H) Multi-year procurement in accordance 
with section 2306b of this title. 
‘‘(I) Integration of current intelligence assess-
ments into the acquisition process. 
‘‘(J) Requirements related to logistics, mainte-
nance, and sustainment in accordance with sections 
2464 and 2466 of this title. 
‘‘(d) REVIEW.—(1) Subject to the authority, direc-
tion, and control of the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, the Milestone De-
cision Authority shall review and approve, as appropriate, 
the acquisition strategy for a major defense acquisition 
program or major system at each of the following times: 
‘‘(A) Milestone A approval. 
‘‘(B) The decision to release the request 
for proposals for development of the program or 
system. 
‘‘(C) Milestone B approval. 
‘‘(D) Each subsequent milestone. 
‘‘(E) Review of any decision to enter into 
full-rate production. 
‘‘(F) When there has been— 
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‘‘(i) a significant change to the cost of 
the program or system; 
‘‘(ii) a critical change to the cost of 
the program or system; 
‘‘(iii) a significant change to the 
schedule of the program or system; or 
‘‘(iv) a significant change to the per-
formance of the program or system. 
‘‘(G) Any other time considered relevant by 
the Milestone Decision Authority. 
‘‘(2) If the Milestone Decision Authority revises an 
acquisition strategy for a program or system, the Mile-
stone Decision Authority shall provide notice of the revi-
sion to the congressional defense committees. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘major defense acquisition pro-
gram’ has the meaning provided in section 2430 of 
this title. 
‘‘(2) The term ‘major system’ has the meaning 
provided in section 2302(5) of this title. 
‘‘(3) The term ‘Milestone A approval’ means a 
decision to enter into technology maturation and 
risk reduction pursuant to guidance prescribed by 
the Secretary of Defense for the management of De-
partment of Defense acquisition programs. 
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‘‘(4) The term ‘Milestone B approval’ has the 
meaning provided in section 2366(e)(7) of this title. 
‘‘(5) The term ‘Milestone Decision Authority’, 
with respect to a major defense acquisition program 
or major system, means the official within the De-
partment of Defense designated with the overall re-
sponsibility and authority for acquisition decisions 
for the program or system, including authority to 
approve entry of the program or system into the 
next phase of the acquisition process. 
‘‘(6) The term ‘management capacity’, with re-
spect to a major defense acquisition program or 
major system, means the capacity to manage the 
program or system through the use of highly quali-
fied organizations and personnel with appropriate 
experience, knowledge, and skills. 
‘‘(7) The term ‘significant change to the cost’, 
with respect to a major defense acquisition program 
or major system, means a significant cost growth 
threshold, as that term is defined in section 
2433(a)(4) of this title. 
‘‘(8) The term ‘critical change to the cost’, with 
respect to a major defense acquisition program or 
major system, means a critical cost growth thresh-
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old, as that term is defined in section 2433(a)(5) of 
this title. 
‘‘(9) The term ‘significant change to the sched-
ule’, with respect to a major defense acquisition pro-
gram or major system, means any schedule delay 
greater than six months in a reported event. 
‘‘(f) SUBMISSION
TO
CONGRESSIONAL
COMMIT-
TEES.—Upon request by the chairman or ranking member 
of the Committee on Armed Services of the Senate or the 
House of Representatives, the Secretary of Defense shall 
submit to the committee the most recently approved acqui-
sition strategy for a major defense acquisition program or 
major system. The strategy shall be submitted in unclassi-
fied form but may include a classified annex.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 2431 
the following new item: 
‘‘2431a. Acquisition strategy.’’. 
(b) ADDITIONAL AMENDMENTS.— 
(1) Section 2350a(e) of such title is amended— 
(A) in the subsection heading, by striking 
‘‘DOCUMENT’’; 
(B) in paragraph (1), by striking ‘‘the 
Under Secretary of Defense for’’ and all that 
follows through ‘‘of the Board’’ and inserting 
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‘‘opportunities for such cooperative research 
and development shall be addressed in the ac-
quisition strategy for the project’’; and 
(C) in paragraph (2)— 
(i) in the matter preceding subpara-
graph (A)— 
(I) by striking ‘‘document’’ and 
inserting ‘‘discussion’’; and 
(II) by striking ‘‘include’’ and in-
serting ‘‘consider’’; 
(ii) in subparagraph (A), by striking 
‘‘A statement indicating whether’’ and in-
serting ‘‘Whether’’; 
(iii) in subparagraph (B)— 
(I) by striking ‘‘by the Under 
Secretary of Defense for Acquisition, 
Technology, and Logistics’’; and 
(II) by striking ‘‘of the United 
States under consideration by the De-
partment of Defense’’; and 
(iv) in subparagraph (D), by striking 
‘‘The recommendation of the Under Sec-
retary’’ and inserting ‘‘A recommendation 
to the Milestone Decision Authority’’. 
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(2) Section 803 of the Bob Stump National De-
fense Authorization Act for Fiscal Year 2003 (Pub-
lic Law 107–314; 10 U.S.C. 2430 note) is repealed. 
SEC. 823. REVISION TO REQUIREMENTS RELATING TO RISK 
MANAGEMENT IN DEVELOPMENT OF MAJOR 
DEFENSE 
ACQUISITION 
PROGRAMS 
AND 
MAJOR SYSTEMS. 
(a) RISK MANAGEMENT AND MITIGATION REQUIRE-
MENTS.— 
(1) IN
GENERAL.—Chapter 144 of title 10, 
United States Code, is amended by inserting after 
section 2431a (as added by section 813) the fol-
lowing new section: 
‘‘§ 2431b. Risk management and mitigation in major 
defense acquisition programs and major 
systems 
‘‘(a) REQUIREMENT.—(1) There shall be a risk man-
agement and mitigation strategy for each major defense 
acquisition program or major system. 
‘‘(2) The Secretary of Defense shall ensure that the 
initial acquisition strategy (required under section 2431a 
of this title) approved by the Milestone Decision Authority 
and any subsequent revisions include the following: 
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‘‘(A) A comprehensive strategy for managing 
and mitigating risk (including technical, cost, and 
schedule risk) during each of the following periods: 
‘‘(i) The period preceding engineering 
manufacturing development, or its equivalent. 
‘‘(ii) The period preceding initial produc-
tion. 
‘‘(iii) The period preceding full-rate pro-
duction. 
‘‘(B) An identification of the major sources of 
risk in each of the periods listed in subparagraph 
(A). 
‘‘(3) In the case of a program or system with separate 
increments of capabilities that require Milestone Decision 
Authority approval to begin or proceed, paragraphs (1) 
and (2) shall apply to each increment. 
‘‘(b) 
STRATEGY
TO
MANAGE
AND
MITIGATE 
RISKS.—(1) The comprehensive strategy to manage and 
mitigate risk included in the acquisition strategy for pur-
poses of subsection (a)(2)(A) shall identify each individual 
risk and the risk management and mitigation activities to 
address each risk. For the mitigation activities identified, 
the strategy shall note whether they require cost and 
schedule margins and need to be included in funding re-
quests. 
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‘‘(2) The strategy shall be comprehensive and, at a 
minimum, include consideration of risk mitigation tech-
niques such as the following: 
‘‘(A) Prototyping (including prototyping at the 
system, subsystem, or component level and competi-
tive prototyping, where appropriate) and, if proto-
typing at either the system, subsystem, or compo-
nent level is not used, an explanation of why it is 
not appropriate. 
‘‘(B) Modeling and simulation, the areas that 
modeling and simulation will assess, and identifica-
tion of the need for development of any new mod-
eling and simulation tools in order to support the 
comprehensive strategy. 
‘‘(C) Technology demonstrations and decision 
points for disciplined transition of planned tech-
nologies into programs or the selection of alternative 
technologies. 
‘‘(D) Multiple design approaches. 
‘‘(E) Alternative designs, including any designs 
that meet requirements but do so with reduced per-
formance. 
‘‘(F) Phasing of program activities or related 
technology development efforts in order to address 
high risk areas as early as feasible. 
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‘‘(c) DEFINITIONS.—In this section, the terms ‘major 
defense acquisition program’ and ‘major system’ have the 
meanings provided in section 2431a of this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 2431a, 
as so added, the following new item: 
‘‘2431b. Risk reduction in major defense acquisition programs and major sys-
tems.’’. 
(b) REPEAL OF SUPERSEDED PROVISION.—Section 
203 of the Weapon Systems Acquisition Reform Act of 
2009 (10 U.S.C. 2430 note) is repealed. 
SEC. 824. MODIFICATION TO REQUIREMENTS RELATING TO 
DETERMINATION OF CONTRACT TYPE FOR 
MAJOR DEFENSE ACQUISITION PROGRAMS 
AND MAJOR SYSTEMS. 
(a) DETERMINATION OF CONTRACT TYPE.—Section 
2306 of title 10, United States Code, is amended by add-
ing at the end the following new subsection: 
‘‘(i) REQUIRED ELEMENTS OF GUIDANCE RELATING 
TO CONTRACT TYPE.—(1) The Secretary of Defense shall 
ensure that the guidance of the Department of Defense 
relating to major defense acquisition programs, major sys-
tems, and major automated information systems includes 
a requirement that the acquisition strategy required under 
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section 2431a of this title for such a program or system 
includes— 
‘‘(A) a separate identification of the contract 
type for each acquisition phase of the program or 
system; and 
‘‘(B) a justification of the contract type identi-
fied. 
‘‘(2) The contract type identified in accordance with 
paragraph (1)(A) may be— 
‘‘(A) a fixed-price type contract (including a 
fixed-price incentive contract); or 
‘‘(B) a cost-type contract (including a cost-plus- 
incentive-fee contract). 
‘‘(3) The guidance referred to in paragraph (1) shall 
require that the justification for the contract type selected 
explain— 
‘‘(A) how the level of program risk in each ac-
quisition phase relates to the contract type selected; 
‘‘(B) how the use of incentives (especially cost 
incentives) in the contract, if any, supports the pro-
gram or system objectives during each acquisition 
phase; and 
‘‘(C) how the plans for the program or system 
to reduce risk enable the use of fixed-price elements 
in subsequent contracts. 
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‘‘(4) The guidance shall also specify that the use of 
contracts with target costs, target profits or fees, and 
profit or fee adjustment formulas can be an appropriate 
contract type.’’. 
(b) REPEAL.—Section 818 of the John Warner Na-
tional Defense Authorization Act for Fiscal Year 2007 
(Public Law 109–364; 10 U.S.C. 2306 note) is amended 
by striking subsections (b), (c), (d), and (e). 
SEC. 825. REQUIRED DETERMINATION BEFORE MILESTONE 
A APPROVAL OR INITIATION OF MAJOR DE-
FENSE ACQUISITION PROGRAMS. 
(a) DETERMINATION RATHER THAN CERTIFICATION 
REQUIRED.—Subsection (a) of section 2366a of title 10, 
United States Code, is amended— 
(1) in the subsection heading, by striking ‘‘CER-
TIFICATION’’ and inserting ‘‘WRITTEN DETERMINA-
TION REQUIRED’’; and 
(2) in the matter preceding paragraph (1), by 
striking ‘‘certifies’’ and inserting ‘‘determines, in 
writing,’’. 
(b) SUBMISSION OF WRITTEN DETERMINATION TO 
CONGRESS.—Subsection (b) of such section is amended to 
read as follows: 
‘‘(b) SUBMISSION TO CONGRESS.—At the request of 
any of the congressional defense committees, the Secretary 
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of Defense shall submit to the committee an explanation 
of the basis for a determination made under subsection 
(a) with respect to a major defense acquisition program, 
together with a copy of the written determination. The ex-
planation shall be submitted in unclassified form, but may 
include a classified annex.’’. 
(c) REPEAL OF UNUSED DEFINITIONS.—Subsection 
(c) of such section is amended— 
(1) by striking paragraphs (2) and (4); and 
(2) by redesignating paragraphs (3), (5), (6), 
and (7) as paragraphs (2), (3), (4), and (5), respec-
tively. 
(d) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of section 
2366a of title 10, United States Code, is amended 
to read as follows: 
‘‘§ 2366a. Major defense acquisition programs: deter-
mination required before Milestone A ap-
proval’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 139 of such title is 
amended by striking the item relating to section 
2366a and inserting the following new item: 
‘‘2366a. Major defense acquisition programs: determination required before 
Milestone A approval.’’. 
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SEC. 826. REQUIRED CERTIFICATION AND DETERMINATION 
BEFORE MILESTONE B APPROVAL OF MAJOR 
DEFENSE ACQUISITION PROGRAMS. 
(a) DETERMINATION REQUIRED
IN ADDITION
TO 
CERTIFICATION.—Subsection (a) of section 2366b of title 
10, United States Code, is amended— 
(1) in the subsection heading, by striking ‘‘CER-
TIFICATION’’ and inserting ‘‘CERTIFICATION
AND 
DETERMINATION REQUIRED’’; 
(2) by redesignating paragraph (4) as para-
graph (5); and 
(3) by striking ‘‘(3) further certifies that—’’ 
and inserting the following: 
‘‘(3) further certifies that the technology in the 
program has been demonstrated in a relevant envi-
ronment, as determined by the Milestone Decision 
Authority on the basis of an independent review and 
assessment by the Assistant Secretary of Defense 
for Research and Engineering, in consultation with 
the Deputy Assistant Secretary of Defense for De-
velopmental Test and Evaluation; 
‘‘(4) determines, in writing, that—’’. 
(b) SUBMISSION OF WRITTEN DETERMINATION TO 
CONGRESS.—Subsection (c) of such section is amended by 
adding at the end the following new paragraph: 
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‘‘(3) At the request of any of the congressional de-
fense committees, the Secretary of Defense shall submit 
to the committee an explanation of the basis for a deter-
mination made under subsection (a)(4) with respect to a 
major defense acquisition program, together with a copy 
of the written determination. The explanation shall be sub-
mitted in unclassified form, but may include a classified 
annex.’’. 
(c) NATIONAL SECURITY WAIVER.—Subsection (d) of 
such section is amended— 
(1) in paragraph (1), by striking ‘‘certification 
requirement’’ and inserting ‘‘certification and deter-
mination requirements’’; and 
(2) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A) and in subparagraph (A), by inserting 
‘‘waiver’’ before ‘‘determination’’ each place it 
appears; and 
(B) in subparagraph (B), by striking ‘‘cer-
tification components’’ both places it appears 
and inserting ‘‘certification and determination 
components’’. 
(d) CONFORMING AMENDMENTS.—Section 2366b of 
title 10, United States Code, is further amended— 
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(1) in subsection (b)(1), by striking ‘‘paragraph 
(1) or (2) of subsection (a)’’ and inserting ‘‘para-
graph (1), (2), or (3) of subsection (a)’’; 
(2) in subsection (d)(1), by striking ‘‘paragraph 
(1), (2), or (3) of subsection (a)’’ and inserting 
‘‘paragraph (1), (2), (3), or (4) of subsection (a)’’; 
and 
(3) in subsection (d)(2)(B), by striking ‘‘para-
graphs (1), (2), and (3) of subsection (a)’’ and in-
serting ‘‘paragraphs (1), (2), (3) and (4) of sub-
section (a)’’. 
(e) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of section 
2366b of title 10, United States Code, is amended 
to read as follows: 
‘‘§ 2366b. Major defense acquisition programs: certifi-
cation and determination required before 
Milestone B approval’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 139 of such title is 
amended by striking the item relating to section 
2366b and inserting the following new item: 
‘‘2366b. Major defense acquisition programs: certification and determination re-
quired before Milestone B approval.’’. 
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Subtitle D—Industrial Base 
Matters 
SEC. 831. CODIFICATION AND AMENDMENT OF MENTOR- 
PROTEGE PROGRAM. 
(a) IN GENERAL.—Section 831 of the National De-
fense Authorization Act for Fiscal Year 1991 (Public Law 
101–510; 104 Stat. 1607; 10 U.S.C. 2302 note) is trans-
ferred to chapter 137 of title 10, United States Code, in-
serted so as to appear after section 2323a, redesignated 
as section 2323b, and amended— 
(1) by amending the section heading to read as 
follows: 
‘‘§ 2323b. Mentor-Protege Program’’; 
(2) by striking ‘‘pilot’’ each place such term ap-
pears; 
(3) by amending subsection (e)(1) to read as 
follows: 
‘‘(1) A developmental program for the protege 
firm, in such detail as may be reasonable, includ-
ing— 
‘‘(A) factors to assess the protege firm’s 
developmental progress under the program; and 
‘‘(B) the anticipated number and type of 
subcontracts to be awarded to the protege 
firm.’’; 
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(4) in subsection (g)(2)(B), by striking ‘‘under 
subsection (l)(2)’’; 
(5) in subsection (h)(1), by inserting ‘‘(15 
U.S.C. 631 et seq.)’’ after ‘‘Small Business Act’’; 
(6) by striking subsection (j) and redesignating 
subsections (k) and (l) as subsections (j) and (k), re-
spectively; 
(7) by amending subsection (j) (as so redesig-
nated) to read as follows: 
‘‘(j) REGULATIONS.—The regulations implementing 
the Mentor-Protege Pilot Program established under sec-
tion 831 of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101–510; 104 Stat. 1607; 
10 U.S.C. 2302 note) as in effect on the date of enactment 
of the National Defense Authorization Act for Fiscal Year 
2016 shall apply to this section. The Secretary of Defense 
may revise such regulations or prescribe additional regula-
tions necessary to carry out this section. The Department 
of Defense policy regarding the Mentor-Protege Program 
shall be published and maintained as an appendix to the 
Department of Defense Supplement to the Federal Acqui-
sition Regulation.’’; 
(8) by striking ‘‘prescribed pursuant to sub-
section (k)’’ each place such term appears and in-
serting ‘‘described in subsection (j)’’; and 
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(9) in subsection (k) (as so redesignated)— 
(A) in paragraph (1), by striking ‘‘means 
a business concern that meets the requirements 
of section 3(a) of the Small Business Act (15 
U.S.C. 632(a)) and the regulations promulgated 
pursuant thereto’’ and inserting ‘‘has the mean-
ing given such term under section 3 of the 
Small Business Act (15 U.S.C. 632)’’; 
(B) in paragraph (2)— 
(i) in subparagraph (D), by striking 
‘‘the severely disabled’’ and inserting ‘‘se-
verely disabled individuals’’; and 
(ii) in subparagraph (G), by inserting 
‘‘(15 U.S.C. 632(p))’’ after ‘‘Small Busi-
ness Act’’; and 
(C) by amending paragraph (8) to read as 
follows: 
‘‘(8) The term ‘severely disabled individual’ 
means an individual who is blind (as defined in sec-
tion 8501 of title 41) or a severely disabled indi-
vidual (as defined in such section).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 2323a the following new 
item: 
‘‘2323b. Mentor-Protege Program.’’. 
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SEC. 832. AMENDMENTS TO DATA QUALITY IMPROVEMENT 
PLAN. 
(a) IN GENERAL.—Section 15(s) of the Small Busi-
ness Act (15 U.S.C. 644(s)) is amended— 
(1) by redesignating paragraph (4) as para-
graph (6); and 
(2) by inserting after paragraph (3) the fol-
lowing new paragraphs: 
‘‘(4) IMPLEMENTATION.—Not later than the 
first day of fiscal year 2017, the Administrator of 
the Small Business Administration shall implement 
the plan described in this subsection. 
‘‘(5) CERTIFICATION.—The Administrator shall 
annually provide to the Committee on Small Busi-
ness of the House of Representatives and the Com-
mittee on Small Business and Entrepreneurship of 
the Senate a certification of the accuracy and com-
pleteness of data reported on bundled and consoli-
dated contracts.’’. 
(b) GAO STUDY.— 
(1) STUDY.—Not later than the first day of fis-
cal year 2018, the Comptroller General of the 
United States shall initiate a study on the effective-
ness of the plan described in section 15(s) of the 
Small Business Act (15 U.S.C. 644(s)) that shall as-
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sess whether contracts were accurately labeled as 
bundled or consolidated. 
(2) CONTRACTS
EVALUATED.—For the pur-
poses of conducting the study described in para-
graph (1), the Comptroller General of the United 
States— 
(A) shall evaluate, for work in each of sec-
tors 23, 33, 54, and 56 (as defined by the 
North American Industry Classification Sys-
tem), not fewer than 100 contracts in each sec-
tor; 
(B) shall evaluate only those contracts— 
(i) awarded by an agency listed in sec-
tion 901(b) of title 31, United States 
Code; and 
(ii) that have a Base and Exercised 
Options Value, an Action Obligation, or a 
Base and All Options Value (as such terms 
are defined in the Federal procurement 
data 
system 
described 
in 
section 
1122(a)(4)(A) of title 41, United States 
Code, or any successor system); and 
(C) shall not evaluate contracts that have 
used any set aside authority. 
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(3) REPORT.—Not later than 12 months after 
initiating the study required by paragraph (1), the 
Comptroller General of the United States shall re-
port to the Committee on Small Business of the 
House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate 
on the results from such study and, if warranted, 
any recommendations on how to improve the quality 
of data reported on bundled and consolidated con-
tracts. 
SEC. 833. NOTICE OF CONTRACT CONSOLIDATION FOR AC-
QUISITION STRATEGIES. 
(a) NOTICE REQUIREMENT FOR THE SENIOR PRO-
CUREMENT EXECUTIVE OR CHIEF ACQUISITION OFFI-
CER.—Section 44(c)(2) of the Small Business Act (15 
U.S.C. 657q(c)(2)) is amended by adding at the end the 
following: 
‘‘(C) NOTICE.—Not later than 7 days after 
making a determination that an acquisition 
strategy involving a consolidation of contract 
requirements is necessary and justified under 
subparagraph (A), the senior procurement exec-
utive or Chief Acquisition Officer shall publish 
a notice on a public website that such deter-
mination has been made. Any solicitation for a 
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procurement related to the acquisition strategy 
may not be published earlier than 7 days after 
such notice is published. Along with the publi-
cation of the solicitation, the senior procure-
ment executive or Chief Acquisition Officer 
shall publish a justification for the determina-
tion, which shall include the information in sub-
paragraphs (A) through (E) of paragraph (1).’’. 
(b) NOTICE REQUIREMENT FOR THE HEAD OF A 
CONTRACTING AGENCY.—Section 15(e)(3) of the Small 
Business Act (15 U.S.C. 644(e)(3)) is amended to read 
as follows: 
‘‘(3) STRATEGY SPECIFICATIONS.—If the head 
of a contracting agency determines that an acquisi-
tion plan for a procurement involves a substantial 
bundling of contract requirements, the head of a 
contracting agency shall publish a notice on a public 
website that such determination has been made not 
later than 7 days after making such determination. 
Any solicitation for a procurement related to the ac-
quisition plan may not be published earlier than 7 
days after such notice is published. Along with the 
publication of the solicitation, the head of a con-
tracting agency shall publish a justification for the 
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determination, which shall include following informa-
tion: 
‘‘(A) The specific benefits anticipated to be 
derived from the bundling of contract require-
ments and a determination that such benefits 
justify the bundling. 
‘‘(B) An identification of any alternative 
contracting approaches that would involve a 
lesser degree of bundling of contract require-
ments. 
‘‘(C) An assessment of— 
‘‘(i) the specific impediments to par-
ticipation by small business concerns as 
prime contractors that result from the 
bundling of contract requirements; and 
‘‘(ii) the specific actions designed to 
maximize participation of small business 
concerns as subcontractors (including sup-
pliers) at various tiers under the contract 
or contracts that are awarded to meet the 
requirements.’’. 
(c) TECHNICAL AMENDMENT.—Section 44(c)(1) of 
the Small Business Act (15 U.S.C. 657q(c)(1)) is amend-
ed by striking ‘‘Subject to paragraph (4), the head’’ and 
inserting ‘‘The head’’. 
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SEC. 834. CLARIFICATION OF REQUIREMENTS RELATED TO 
SMALL BUSINESS CONTRACTS FOR SERV-
ICES. 
(a) PROCUREMENT CONTRACTS.—Section 8(a)(17) 
of the Small Business Act (15 U.S.C. 637(a)(17)) is 
amended— 
(1) in subparagraph (A), by striking ‘‘any pro-
curement contract’’ and all that follows through 
‘‘section 15’’ and inserting ‘‘any procurement con-
tract, which contract has as its principal purpose the 
supply of a product to be let pursuant to this sub-
section or subsection (m), or section 15(a), 31, or 
36,’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(C) LIMITATION.—This paragraph shall not 
apply to a contract that has as its principal purpose 
the acquisition of services or construction.’’. 
(b) SUBCONTRACTOR CONTRACTS.—Section 46(a)(4) 
of the Small Business Act (15 U.S.C. 657s(a)(4)) is 
amended by striking ‘‘for supplies from a regular dealer 
in such supplies’’ and inserting ‘‘which is principally for 
supplies from a regular dealer in such supplies, and which 
is not a contract principally for services or construction,’’. 
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SEC. 835. REVIEW OF GOVERNMENT ACCESS TO INTELLEC-
TUAL PROPERTY RIGHTS OF PRIVATE SEC-
TOR FIRMS. 
(a) REVIEW REQUIRED.—Not later than 30 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall enter into a contract with an independent 
entity with appropriate expertise to conduct a review of 
(1) Department of Defense regulations, practices, and 
sustainment requirements related to Government access to 
and use of intellectual property rights of private sector 
firms; and (2) Department of Defense practices related 
to the procurement, management, and use of intellectual 
property rights to facilitate competition in sustainment of 
weapon systems throughout their life-cycle. The contract 
shall require that in conducting the review, the inde-
pendent entity shall consult with the National Defense 
Technology and Industrial Base Council (described in sec-
tion 2502 of title 10, United States Code) and each Center 
of Industrial and Technical Excellence (described in sec-
tion 2474 of title 10, United States Code). 
(b) REPORT.—Not later than March 1, 2016, the 
Secretary shall submit to the congressional defense com-
mittees a report on the findings of the independent entity, 
along with a description of any actions that the Secretary 
proposes to revise and clarify laws or that the Secretary 
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may take to revise or clarify regulations related to intellec-
tual property rights. 
SEC. 836. REQUIREMENT THAT CERTAIN SHIP COMPO-
NENTS 
BE 
MANUFACTURED 
IN 
THE 
NA-
TIONAL 
TECHNOLOGY 
AND 
INDUSTRIAL 
BASE. 
(a) ADDITIONAL PROCUREMENT LIMITATION.—Sec-
tion 2534(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
‘‘(6) COMPONENTS
FOR
AUXILIARY
SHIPS.— 
Subject to subsection (k), the following components: 
‘‘(A) 
Auxiliary 
equipment, 
including 
pumps, for all shipboard services. 
‘‘(B) Propulsion system components, in-
cluding engines, reduction gears, and propellers. 
‘‘(C) Shipboard cranes. 
‘‘(D) Spreaders for shipboard cranes.’’. 
(b) IMPLEMENTATION.—Such section is further 
amended by adding at the end the following new sub-
section: 
‘‘(k) IMPLEMENTATION OF AUXILIARY SHIP COMPO-
NENT LIMITATION.—Subsection (a)(6) applies only with 
respect to contracts awarded by the Secretary of a military 
department for new construction of an auxiliary ship after 
the date of the enactment of the National Defense Author-
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ization Act for Fiscal Year 2016 using funds available for 
National Defense Sealift Fund programs or Shipbuilding 
and Conversion, Navy.’’. 
SEC. 837. POLICY REGARDING SOLID ROCKET MOTORS 
USED IN TACTICAL MISSILES. 
(a) POLICY.—The Secretary of Defense shall ensure 
that every tactical missile program of the Department of 
Defense that uses solid propellant as the primary propul-
sion system shall have at least one rocket motor supplier 
within the national technology and industrial base (as de-
fined in section 2500(1) of title 10, United States Code). 
(b) WAIVER.—The Secretary may waive subsection 
(a) in the case of compelling national security reasons. 
SEC. 838. FAR COUNCIL MEMBERSHIP FOR ADMINIS-
TRATOR OF SMALL BUSINESS ADMINISTRA-
TION. 
(a) ADDITION OF ADMINISTRATOR OF SMALL BUSI-
NESS ADMINISTRATION TO FEDERAL ACQUISITION REGU-
LATORY COUNCIL.—Section 1302(b)(1) of title 41, United 
States Code, is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (C); 
(2) by striking the period and inserting ‘‘; and’’ 
at the end of subparagraph (D); and 
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(3) by adding at the end the following new sub-
paragraph: 
‘‘(E) the Administrator of the Small Busi-
ness Administration.’’. 
(b) CONFORMING
AMENDMENTS.—Such title is 
amended— 
(1) in section 1303(a)(1)— 
(A) by striking ‘‘and the Administrator of 
National Aeronautics and Space,’’ and inserting 
‘‘the Administrator of National Aeronautics and 
Space, and the Administrator of the Small 
Business Administration,’’; and 
(B) by striking ‘‘and the National Aero-
nautics and Space Act of 1958 (42 U.S.C. 2451 
et seq.),’’ and inserting ‘‘the National Aero-
nautics and Space Act of 1958 (42 U.S.C. 2451 
et seq.), and the Small Business Act (15 U.S.C. 
631 et seq.),’’; and 
(2) in section 1121(d), by striking ‘‘and the 
General Services Administration’’ and inserting ‘‘the 
General Services Administration, and the Small 
Business Administration’’. 
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SEC. 839. SURETY BOND REQUIREMENTS AND AMOUNT OF 
GUARANTEE. 
(a) SURETY BOND REQUIREMENTS.—Chapter 93 of 
subtitle VI of title 31, United States Code, is amended— 
(1) by adding at the end the following: 
‘‘§ 9310. Individual sureties 
‘‘If another applicable law or regulation permits the 
acceptance of a bond from a surety that is not subject 
to sections 9305 and 9306 and is based on a pledge of 
assets by the surety, the assets pledged by such surety 
shall— 
‘‘(1) consist of eligible obligations described 
under section 9303(a); and 
‘‘(2) be submitted to the official of the Govern-
ment required to approve or accept the bond, who 
shall deposit the assets with a depository described 
under section 9303(b).’’; and 
(2) in the table of contents for such chapter, by 
adding at the end the following: 
‘‘9310. Individual sureties.’’. 
(b) AMOUNT OF SURETY BOND GUARANTEE FROM 
SMALL BUSINESS ADMINISTRATION.—Section 411(c)(1) 
of the Small Business Investment Act of 1958 (15 U.S.C. 
694b(c)(1)) is amended by striking ‘‘70’’ and inserting 
‘‘90’’. 
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(c) COMPTROLLER GENERAL STUDY
ON SURETY 
BONDS.— 
(1) STUDY.—The Comptroller General of the 
United States shall carry out a study on the fol-
lowing: 
(A) All instances during the 10-year period 
beginning on January 31, 2006, in which a sur-
ety bond proposed or issued by a surety in con-
nection with a Federal project was— 
(i) rejected by a Federal contracting 
officer; or 
(ii) accepted by a Federal contracting 
officer, but was later found to have been 
backed by insufficient collateral or to be 
otherwise deficient or with respect to which 
the surety did not perform. 
(B) The consequences to the Federal Gov-
ernment, subcontractors, and suppliers of the 
instances described under subparagraph (A). 
(C) The percentages of all Federal con-
tracts that were awarded to new startup busi-
nesses (including new startup businesses that 
are small disadvantaged businesses or disadvan-
taged business enterprises), small disadvan-
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taged businesses, and disadvantaged business 
enterprises as prime contractors during— 
(i) the 2-year period beginning on 
January 31, 2014 and ending on January 
31, 2016; and 
(ii) the 2-year period beginning on 
January 31, 2016 and ending on January 
31, 2018. 
(D) An assessment of the impact of the 
amendments made by this section upon the per-
centages described in subparagraph (C). 
(2) REPORT.—Not later than January 31, 
2019, the Comptroller General shall issue a report 
to the Committee on the Judiciary of the House of 
Representatives and the Committee on Homeland 
Security and Government Affairs of the Senate con-
taining all findings and determinations made in car-
rying out the study required under paragraph (1). 
(3) DEFINITIONS.—In this subsection: 
(A) DISADVANTAGED
BUSINESS
ENTER-
PRISE.—The term ‘‘disadvantaged business en-
terprise’’ has the meaning given that term 
under section 26.5 of title 49, Code of Federal 
Regulations. 
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(B) NEW STARTUP BUSINESS.—The term 
‘‘new startup business’’ means a business that 
was formed in the 2-year period ending on the 
date on which the business bids on a Federal 
contract that requires giving a surety bond. 
(C) SMALL DISADVANTAGED BUSINESS.— 
The term ‘‘small disadvantaged business’’ has 
the meaning given the term ‘‘socially and eco-
nomically disadvantaged small business con-
cern’’ under section 8(a)(4) of the Small Busi-
ness Act (15 U.S.C. 637(a)(4)). 
SEC. 840. CERTIFICATION REQUIREMENTS FOR PROCURE-
MENT CENTER REPRESENTATIVES, BUSINESS 
OPPORTUNITY SPECIALISTS, AND COMMER-
CIAL MARKET REPRESENTATIVES. 
(a) PROCUREMENT CENTER REPRESENTATIVE RE-
QUIREMENTS.—Section 15(l)(5)(A)(iii) of the Small Busi-
ness Act (15 U.S.C. 644(l)(5)(A)(iii)) is amended by strik-
ing ‘‘except that’’ and all that follows through the period 
at the end and inserting the following: ‘‘except that— 
‘‘(I) any person serving in such a 
position on or before January 3, 
2013, may continue to serve in that 
position for a period of 5 years begin-
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ning on such date without the re-
quired certification; and 
‘‘(II) any person hired for such 
position after January 3, 2013, may 
have up to one calendar year from the 
date of employment to obtain the re-
quired certification.’’. 
(b) BUSINESS OPPORTUNITY SPECIALIST REQUIRE-
MENTS.— 
(1) IN GENERAL.—Section 4 of the Small Busi-
ness Act (15 U.S.C. 633) is amended by adding at 
the end the following new subsection: 
‘‘(g) CERTIFICATION REQUIREMENTS FOR BUSINESS 
OPPORTUNITY SPECIALISTS.—A Business Opportunity 
Specialist described under section 7(j)(10)(D) shall have 
a Level I Federal Acquisition Certification in Contracting 
(or any successor certification) or the equivalent Depart-
ment of Defense certification, except that— 
‘‘(1) a Business Opportunity Specialist who was 
serving on or before January 3, 2013, may continue 
to serve as a Business Opportunity Specialist for a 
period of 5 years beginning on such date without 
such a certification; and 
‘‘(2) any person hired as a Business Oppor-
tunity Specialist after January 3, 2013, may have 
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up to one calendar year from the date of employ-
ment to obtain the required certification.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
7(j)(10)(D)(i) 
of 
such 
Act 
(15 
U.S.C. 
636(j)(10)(D)(i)) is amended by striking the second 
sentence. 
(c) COMMERCIAL MARKET REPRESENTATIVE RE-
QUIREMENTS.—Section 4 of the Small Business Act (15 
U.S.C. 633), as amended by subsection (b)(1), is further 
amended by adding at the end the following new sub-
section: 
‘‘(h) CERTIFICATION REQUIREMENTS FOR COMMER-
CIAL MARKET REPRESENTATIVES.—A commercial market 
representative referred to in section 15(q)(3) shall have 
a Level I Federal Acquisition Certification in Contracting 
(or any successor certification) or the equivalent Depart-
ment of Defense certification, except that— 
‘‘(1) a commercial market representative who 
was serving on or before the date of the enactment 
of the National Defense Authorization Act for Fiscal 
Year 2016 may continue to serve as a commercial 
market representative for a period of 5 years begin-
ning on such date without such a certification; and 
‘‘(2) any person hired as a commercial market 
representative after the date of the enactment of the 
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National Defense Authorization Act for Fiscal Year 
2016 may have up to one calendar year from the 
date of employment to obtain the required certifi-
cation.’’. 
SEC. 841. INCLUDING SUBCONTRACTING GOALS IN AGENCY 
RESPONSIBILITIES. 
Section 1633(b) of the National Defense Authoriza-
tion Act for Fiscal Year 2013 (Public Law 112–239; 126 
Stat. 2076; 15 U.S.C. 631 note) is amended by striking 
‘‘assume responsibility for of the agency’s success in 
achieving small business contracting goals and percent-
ages’’ and inserting ‘‘assume responsibility for the agen-
cy’s success in achieving each of the small business prime 
contracting and subcontracting goals and percentages’’. 
SEC. 842. MODIFICATIONS TO REQUIREMENTS FOR QUALI-
FIED HUBZONE SMALL BUSINESS CONCERNS 
LOCATED IN A BASE CLOSURE AREA. 
(a) PERIOD FOR BASE CLOSURE AREAS.— 
(1) EXTENSION OF PERIOD.— 
(A) IN
GENERAL.—Section 152(a)(2) of 
title I of division K of the Consolidated Appro-
priations Act, 2005 (15 U.S.C. 632 note) is 
amended by striking ‘‘for a period of 5 years’’ 
and inserting ‘‘for the later of— 
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‘‘(A) 8 years from the date of final closure; 
or 
‘‘(B) the date designated by the Adminis-
trator of the Small Business Administration 
that is based on data of the Bureau of the Cen-
sus obtained from the first decennial census 
conducted after the date of final closure.’’. 
(B) CONFORMING
AMENDMENT.—Section 
1698(b)(2) of National Defense Authorization 
Act for Fiscal Year 2013 (15 U.S.C. 632 note) 
is amended by striking ‘‘5 years’’ and inserting 
‘‘the later of— 
‘‘(A) 8 years; or 
‘‘(B) the date designated by the Adminis-
trator of the Small Business Administration de-
scribed in section 152(a)(2)(B) of title I of divi-
sion K of the Consolidated Appropriations Act, 
2005 (15 U.S.C. 632 note).’’. 
(2) EFFECTIVE
DATE; APPLICABILITY.—The 
amendments made by paragraph (1) shall— 
(A) take effect on the date of the enact-
ment of this Act; and 
(B) apply to— 
(i) a base closure area (as defined in 
section 3(p)(4)(D) of the Small Business 
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Act (15 U.S.C. 632(p)(4)(D))) that, on the 
day before the date of the enactment of 
this Act, is treated as a HUBZone de-
scribed in section 3(p)(1)(E) of the Small 
Business Act (15 U.S.C. 632(p)(1)(E)) 
under— 
(I) section 152(a)(2) of title I of 
division K of the Consolidated Appro-
priations Act, 2005 (15 U.S.C. 632 
note); or 
(II) section 1698(b)(2) of Na-
tional Defense Authorization Act for 
Fiscal Year 2013 (15 U.S.C. 632 
note); and 
(ii) a base closure area relating to the 
closure of a military instillation under the 
authority described in clauses (i) through 
(iv) of section 3(p)(4)(D) of the Small 
Business Act (15 U.S.C. 632(p)(4)(D)) 
that occurs on or after the date of the en-
actment of this Act. 
(b) ELIGIBLE AREA FOR EMPLOYEE RESIDENCE FOR 
BASE CLOSURE HUBZONES.—Section 3(p)(5)(A)(i)(I) of 
the Small Business Act (15 U.S.C. 632(p)(5)(A)(i)(I)) is 
amended— 
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(1) in item (aa), by striking ‘‘or’’ at the end; 
(2) by redesignating item (bb) as item (cc); and 
(3) by inserting after item (aa) the following 
new item: 
‘‘(bb) pursuant to subpara-
graph (A), (B), (C), (D), or (E) 
of paragraph (3), that its prin-
cipal office is located within a 
base closure area and that not 
fewer than 35 percent of its em-
ployees reside in such base clo-
sure 
area 
or 
in 
another 
HUBZone; or’’. 
(c) EXPANSION OF AREA INCLUDED IN BASE AREA 
CLOSURE DEFINITION.—Section 3(p)(4)(D) of the Small 
Business Act (15 U.S.C. 632(p)(4)(D)) is amended— 
(1) in clause (iv), by striking the period at the 
end and inserting ‘‘; and’’; 
(2) by redesignating clauses (i) through (iv) as 
subclauses (I) through (IV), respectively; 
(3) in the matter preceding subclause (I), as so 
redesignated, by striking ‘‘means lands within’’ and 
inserting the following: ‘‘means— 
‘‘(i) lands within’’; and 
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(4) by adding at the end the following new 
clause: 
‘‘(ii) lands within 25 miles of the ex-
ternal boundaries of a military installation 
described in clause (i), excluding any such 
lands that are not within a qualified non-
metropolitan county.’’. 
SEC. 843. JOINT VENTURING AND TEAMING. 
(a) JOINT VENTURE OFFERS
FOR BUNDLED
OR 
CONSOLIDATED CONTRACTS.—Section 15(e)(4) of the 
Small Business Act (15 U.S.C. 644(e)(4)) is amended to 
read as follows: 
‘‘(4) CONTRACT TEAMING.— 
‘‘(A) IN GENERAL.—In the case of a solici-
tation of offers for a bundled or consolidated 
contract that is issued by the head of an agen-
cy, a small business concern that provides for 
use of a particular team of subcontractors or a 
joint venture of small business concerns may 
submit an offer for the performance of the con-
tract. 
‘‘(B) EVALUATION OF OFFERS.—The head 
of the agency shall evaluate an offer described 
in subparagraph (A) in the same manner as 
other offers, with due consideration to the capa-
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bilities of all of the proposed subcontractors or 
members of the joint venture as follows: 
‘‘(i) TEAMS.—When evaluating an 
offer of a small business prime contractor 
that includes a proposed team of small 
business subcontractors, the head of the 
agency shall consider the capabilities and 
past performance of each first tier subcon-
tractor that is part of the team as the ca-
pabilities and past performance of the 
small business prime contractor. 
‘‘(ii) JOINT VENTURES.—When evalu-
ating an offer of a joint venture of small 
business concerns, if the joint venture does 
not have sufficient capabilities or past per-
formance to be considered for award of a 
contract opportunity, the head of the agen-
cy shall consider the capabilities and past 
performance of each member of the joint 
venture as the capabilities past perform-
ance of the joint venture. 
‘‘(C) STATUS AS A SMALL BUSINESS CON-
CERN.—Participation of a small business con-
cern in a team or a joint venture under this 
paragraph shall not affect the status of that 
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concern as a small business concern for any 
other purpose.’’. 
(b) TEAM AND JOINT VENTURES OFFERS FOR MUL-
TIPLE AWARD CONTRACTS.—Section 15(q)(1) of such Act 
(15 U.S.C. 644(q)(1)) is amended— 
(1) in the heading, by inserting ‘‘AND JOINT 
VENTURE’’ before ‘‘REQUIREMENTS’’; 
(2) by striking ‘‘Each Federal agency’’ and in-
serting the following: 
‘‘(A) IN
GENERAL.—Each Federal agen-
cy’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) TEAMS.—When evaluating an offer of 
a small business prime contractor that includes 
a proposed team of small business subcontrac-
tors for any multiple award contract above the 
substantial bundling threshold of the Federal 
agency, the head of the agency shall consider 
the capabilities and past performance of each 
first tier subcontractor that is part of the team 
as the capabilities and past performance of the 
small business prime contractor. 
‘‘(C) JOINT VENTURES.—When evaluating 
an offer of a joint venture of small business 
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concerns for any multiple award contract above 
the substantial bundling threshold of the Fed-
eral agency, if the joint venture does not have 
sufficient capabilities or past performance to be 
considered for award of a contract opportunity, 
the head of the agency shall consider the capa-
bilities and past performance of each member of 
the joint venture as the capabilities and past 
performance of the joint venture.’’. 
SEC. 844. MODIFICATION TO AND SCORECARD PROGRAM 
FOR SMALL BUSINESS CONTRACTING GOALS. 
(a) AMENDMENT TO GOVERNMENTWIDE GOAL FOR 
SMALL
BUSINESS
PARTICIPATION
IN
PROCUREMENT 
CONTRACTS.—Section 15(g)(1)(A)(i) of the Small Busi-
ness Act (15 U.S.C. 644(g)(1)(A)(i) is amended by adding 
at the end the following: ‘‘In meeting this goal, the Gov-
ernment shall ensure the participation of small business 
concerns from a wide variety of industries and from a 
broad spectrum of small business concerns within each in-
dustry.’’. 
(b) SCORECARD PROGRAM FOR EVALUATING FED-
ERAL AGENCY COMPLIANCE WITH SMALL BUSINESS 
CONTRACTING GOALS.— 
(1) IN GENERAL.—Not later than September 
30, 2016, the Administrator of the Small Business 
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Administration, in consultation with the Federal 
agencies, shall— 
(A) develop a methodology for calculating 
a score to be used to evaluate the compliance of 
each Federal agency with meeting the goals es-
tablished pursuant to section 15(g)(1)(B) of the 
Small Business Act (15 U.S.C. 644(g)(1)(B)); 
and 
(B) develop a scorecard based on such 
methodology. 
(2) AGENCY ANNUAL GOAL.—In developing the 
methodology for calculating a score described in 
paragraph (1), the Administrator shall consider each 
annual goal established by each Federal agency pur-
suant to section 15(g)(1)(B) of the Small Business 
Act (15 U.S.C. 644(g)(1)(B)). 
(3) USE OF SCORECARD.—Beginning in fiscal 
year 2017, the Administrator shall establish and 
carry out a program to use the scorecard developed 
under paragraph (1) to evaluate whether each Fed-
eral agency is creating the maximum practicable op-
portunities for the award of prime contracts and 
subcontracts to small business concerns, small busi-
ness concerns owned and controlled by service-dis-
abled veterans, qualified HUBZone small business 
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concerns, small business concerns owned and con-
trolled by socially and economically disadvantaged 
individuals, and small business concerns owned and 
controlled by women, by assigning a score to each 
Federal agency. If the Administrator fails to estab-
lish and carry out this program before the end of 
fiscal year 2017, the Administrator may not exercise 
the authority under section 7(a)(25)(A) until such 
time as the program is implemented. 
(4) CONTENTS OF SCORECARD.—The scorecard 
developed under paragraph (1) shall include, for 
each Federal agency, the following information: 
(A) A determination of whether the Fed-
eral agency met each of the prime contract 
goals 
established 
pursuant 
to 
section 
15(g)(1)(B) of the Small Business Act (15 
U.S.C. 644(g)(1)(B)) with respect to small 
business concerns, small business concerns 
owned and controlled by service-disabled vet-
erans, qualified HUBZone small business con-
cerns, small business concerns owned and con-
trolled by socially and economically disadvan-
taged individuals, and small business concerns 
owned and controlled by women. 
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(B) A determination of whether the Fed-
eral agency met each of the subcontract goals 
established pursuant to such section with re-
spect to small business concerns, small business 
concerns owned and controlled by service-dis-
abled veterans, qualified HUBZone small busi-
ness concerns, small business concerns owned 
and controlled by socially and economically dis-
advantaged individuals, and small business con-
cerns owned and controlled by women. 
(C) The number of small business con-
cerns, small business concerns owned and con-
trolled by service-disabled veterans, qualified 
HUBZone small business concerns, small busi-
ness concerns owned and controlled by socially 
and economically disadvantaged individuals, and 
small business concerns owned and controlled 
by women awarded prime contracts in each 
North American Industrial Classification Sys-
tem code during the fiscal year and a compari-
son to the number awarded contracts during 
the prior fiscal year, if available. 
(D) The number of small business con-
cerns, small business concerns owned and con-
trolled by service-disabled veterans, qualified 
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HUBZone small business concerns, small busi-
ness concerns owned and controlled by socially 
and economically disadvantaged individuals, and 
small business concerns owned and controlled 
by women awarded subcontracts in each North 
American Industrial Classification System code 
during the fiscal year and a comparison to the 
number awarded contracts during the prior fis-
cal year, if available. 
(E) Any other factors that the Adminis-
trator deems important to achieve the max-
imum practicable utilization of small business 
concerns, small business concerns owned and 
controlled by service-disabled veterans, qualified 
HUBZone small business concerns, small busi-
ness concerns owned and controlled by socially 
and economically disadvantaged individuals, and 
small business concerns owned and controlled 
by women. 
(5) WEIGHTED FACTORS.—In using the score-
card to evaluate and assign a score to a Federal 
agency, the Administrator shall base— 
(A) fifty percent of the score on the dollar 
value of prime contracts described in paragraph 
(4)(A); and 
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(B) fifty percent of the score on the infor-
mation provided in subparagraphs (B) through 
(E) of paragraph (4), weighted in a manner de-
termined by the Administrator to encourage the 
maximum practicable opportunity for the award 
of prime contracts and subcontracts to small 
business concerns, small business concerns 
owned and controlled by service-disabled vet-
erans, qualified HUBZone small business con-
cerns, small business concerns owned and con-
trolled by socially and economically disadvan-
taged individuals, and small business concerns 
owned and controlled by women. 
(6) PUBLICATION.—The scorecard used by the 
Administrator under this subsection shall be sub-
mitted to the President and Congress along with the 
report submitted under section 15(h)(2) of the Small 
Business Act (15 U.S.C. 644(h)(2)). 
(7) REPORT.—After the Administrator submits 
the scorecard for fiscal year 2018, but not later than 
March 31, 2019, the Administrator shall report to 
the Committee on Small Business of the House of 
Representatives and the Committee on Small Busi-
ness and Entrepreneurship of the Senate. Such re-
port shall include the following: 
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(A) A description of any increase in the 
dollar amount of prime contracts and sub-
contracts awarded to small business concerns, 
small business concerns owned and controlled 
by 
service-disabled 
veterans, 
qualified 
HUBZone small business concerns, small busi-
ness concerns owned and controlled by socially 
and economically disadvantaged individuals, and 
small business concerns owned and controlled 
by women. 
(B) A description of any increase in the 
dollar amount of prime contracts and sub-
contracts awarded to small business concerns, 
small business concerns owned and controlled 
by 
service-disabled 
veterans, 
qualified 
HUBZone small business concerns, small busi-
ness concerns owned and controlled by socially 
and economically disadvantaged individuals, and 
small business concerns owned and controlled 
by women in each North American Industrial 
Classification System code. 
(C) A description of any increase to the 
number of small business concerns, small busi-
ness concerns owned and controlled by service- 
disabled veterans, qualified HUBZone small 
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business concerns, small business concerns 
owned and controlled by socially and economi-
cally disadvantaged individuals, and small busi-
ness concerns owned and controlled by women 
awarded contracts in each North American In-
dustrial Classification System code. 
(D) The recommendation of the Adminis-
trator on continuing, modifying, expanding, or 
terminating the program established under this 
subsection. 
(8) GAO REPORT
ON
SCORECARD
METHOD-
OLOGY.—Not later than September 30, 2018, the 
Comptroller General of the United States shall sub-
mit to the Committee on Small Business of the 
House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate 
a report that— 
(A) evaluates whether the methodology 
used to calculate a score under this subsection 
accurately and effectively— 
(i) measures the compliance of each 
Federal agency with meeting the goals es-
tablished pursuant to section 15(g)(1)(B) 
of the Small Business Act (15 U.S.C. 
644(g)(1)(B)); and 
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(ii) encourages Federal agencies to ex-
pand opportunities for mall business con-
cerns, small business concerns owned and 
controlled by service-disabled veterans, 
qualified HUBZone small business con-
cerns, small business concerns owned and 
controlled by socially and economically dis-
advantaged individuals, and small business 
concerns owned and controlled by women 
to compete for and be awarded Federal 
procurement contracts across North Amer-
ican 
Industrial 
Classification 
System 
Codes; and 
(B) if warranted, makes recommendations 
on how to improve such methodology to improve 
its accuracy and effectiveness. 
(9) DEFINITIONS.—In this subsection: 
(A) ADMINISTRATOR.—The term ‘‘Admin-
istrator’’ means the Administrator of the Small 
Business Administration. 
(B) FEDERAL AGENCY.—The term ‘‘Fed-
eral agency’’ has the meaning given the term 
‘‘agency’’ by section 551(1) of title 5, United 
States Code, but does not include the United 
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States Postal Service or the Government Ac-
countability Office. 
(C) SCORECARD.—The term ‘‘scorecard’’ 
shall mean any summary using a rating system 
to evaluate a Federal agency’s efforts to meet 
goals established under section 15(g)(1)(B) of 
the 
Small 
Business 
Act 
(15 
U.S.C. 
644(g)(1)(B)) that— 
(i) includes the measures described in 
paragraph (4); and 
(ii) assigns a score to each Federal 
agency evaluated. 
(D) SMALL BUSINESS ACT DEFINITIONS.— 
(i) IN GENERAL.—The terms ‘‘small 
business concern’’, ‘‘small business concern 
owned and controlled by service-disabled 
veterans’’, ‘‘qualified HUBZone small busi-
ness concern’’, and ‘‘small business con-
cern owned and controlled by women’’ shall 
have the meanings given such terms under 
section 3 of the Small Business Act (15 
U.S.C. 632). 
(ii) 
SMALL
BUSINESS
CONCERNS 
OWNED
AND
CONTROLLED
BY
SOCIALLY 
AND ECONOMICALLY DISADVANTAGED IN-
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DIVIDUALS.—The term ‘‘small business 
concern owned and controlled by socially 
and economically disadvantaged individ-
uals’’ has the meaning given that term 
under section 8(d)(3)(C) of the Small 
Business Act (15 U.S.C. 637(d)(3)(C)). 
SEC. 845. ESTABLISHMENT OF AN OFFICE OF HEARINGS 
AND APPEALS IN THE SMALL BUSINESS AD-
MINISTRATION; PETITIONS FOR RECONSID-
ERATION OF SIZE STANDARDS. 
(a) ESTABLISHMENT OF AN OFFICE OF HEARINGS 
AND APPEALS IN THE SMALL BUSINESS ADMINISTRA-
TION.— 
(1) IN GENERAL.—Section 5 of the Small Busi-
ness Act (15 U.S.C. 634) is amended by adding at 
the end the following new subsection: 
‘‘(i) OFFICE OF HEARINGS AND APPEALS.— 
‘‘(1) ESTABLISHMENT.— 
‘‘(A) OFFICE.—There is established in the 
Administration an Office of Hearings and Ap-
peals— 
‘‘(i) to impartially decide matters re-
lating to program decisions of the Admin-
istrator— 
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‘‘(I) for which Congress requires 
a hearing on the record; or 
‘‘(II) that the Administrator des-
ignates for hearing by regulation; and 
‘‘(ii) which shall contain the office of 
the Administration that handles requests 
submitted pursuant to sections 552 of title 
5, United States Code (commonly referred 
to as the ‘Freedom of Information Act’) 
and maintains records pursuant to section 
552a of title 5, United States Code (com-
monly referred to as the ‘Privacy Act of 
1974’). 
‘‘(B) JURISDICTION.—The Office of Hear-
ings and Appeals shall only hear appeals of 
matters as described in this Act, the Small 
Business Investment Act of 1958 (15 U.S.C. 
661 et seq.), and title 13 of the Code of Federal 
Regulations. 
‘‘(C) ASSOCIATE
ADMINISTRATOR.—The 
head of the Office of Hearings and Appeals 
shall be the Chief Hearing Officer appointed 
under section 4(b)(1), who shall be responsible 
to the Administrator. 
‘‘(2) CHIEF HEARING OFFICER DUTIES.— 
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‘‘(A) IN
GENERAL.—The Chief Hearing 
Officer shall— 
‘‘(i) be a career appointee in the Sen-
ior Executive Service and an attorney li-
censed by a State, commonwealth, territory 
or possession of the United States, or the 
District of Columbia; and 
‘‘(ii) be responsible for the operation 
and management of the Office of Hearings 
and Appeals. 
‘‘(B) ALTERNATIVE
DISPUTE
RESOLU-
TION.—The Chief Hearing Officer may assign a 
matter for mediation or other means of alter-
native dispute resolution. 
‘‘(3) HEARING OFFICERS.— 
‘‘(A) IN GENERAL.—The Office of Hear-
ings and Appeals shall appoint Hearing Officers 
to carry out the duties described in paragraph 
(1)(A)(i). 
‘‘(B) CONDITIONS
OF
EMPLOYMENT.—A 
Hearing Officer appointed under this para-
graph— 
‘‘(i) shall serve in the excepted service 
as an employee of the Administration 
under section 2103 of title 5, United 
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States Code, and under the supervision of 
the Chief Hearing Officer; 
‘‘(ii) shall be classified at a position to 
which section 5376 of title 5, United 
States Code, applies; and 
‘‘(iii) shall be compensated at a rate 
not exceeding the maximum rate payable 
under such section. 
‘‘(C) 
AUTHORITY; 
POWERS.—Notwith-
standing section 556(b) of title 5, United States 
Code, a Hearing Officer— 
‘‘(i) shall have the authority to hear 
claims arising under section 554 of such 
title; 
‘‘(ii) shall have the powers described 
in section 556(c) of such title; and 
‘‘(iii) shall conduct hearings and issue 
decisions in the manner described under 
sections 555, 556, and 557 of such title, as 
applicable. 
‘‘(D) TREATMENT
OF
CURRENT
PER-
SONNEL.—An individual serving as a Judge in 
the Office of Hearings and Appeals (as that po-
sition and office are designated in section 
134.101 of title 13, Code of Federal Regula-
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tions) on the effective date of this subsection 
shall be considered as qualified to be, and re-
designated as, a Hearing Officer. 
‘‘(4) HEARING
OFFICER
DEFINED.—In this 
subsection, the term ‘Hearing Officer’ means an in-
dividual appointed or redesignated under this sub-
section who is an attorney licensed by a State, com-
monwealth, territory or possession of the United 
States, or the District of Columbia.’’. 
(2) ASSOCIATE
ADMINISTRATOR
AS
CHIEF 
HEARING OFFICER.—Section 4(b)(1) of such Act (15 
U.S.C. 633(b)) is amended by adding at the end the 
following: ‘‘One such Associate Administrator shall 
be the Chief Hearing Officer, who shall administer 
the Office of Hearings and Appeals established 
under section 5(i).’’. 
(3) 
REPEAL
OF
REGULATION.—Section 
134.102(t) of title 13, Code of Federal Regulations, 
as in effect on January 1, 2015, (relating to types 
of hearings within the jurisdiction of the Office of 
Hearings and Appeals) shall have no force or effect. 
(b) PETITIONS
FOR RECONSIDERATION
OF SIZE 
STANDARDS FOR SMALL BUSINESS CONCERNS.—Section 
3(a) of the Small Business Act (15 U.S.C. 632(a)) is 
amended by adding at the end the following: 
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‘‘(9) PETITIONS
FOR
RECONSIDERATION
OF 
SIZE STANDARDS.— 
‘‘(A) IN GENERAL.—A person may file a 
petition for reconsideration with the Office of 
Hearings and Appeals (as established under 
section 5(i)) of a size standard revised, modi-
fied, or established by the Administrator pursu-
ant to this subsection. 
‘‘(B) TIME LIMIT.—A person filing a peti-
tion for reconsideration described in subpara-
graph (A) shall file such petition not later than 
30 days after the publication in the Federal 
Register of the notice of final rule to revise, 
modify, or establish size standards described in 
paragraph (6). 
‘‘(C) PROCESS FOR AGENCY REVIEW.—The 
Office of Hearings and Appeals shall use the 
same process it uses to decide challenges to the 
size of a small business concern to decide a pe-
tition for review pursuant to this paragraph. 
‘‘(D) JUDICIAL REVIEW.—The publication 
of a final rule in the Federal Register described 
in subparagraph (B) shall be considered final 
agency action for purposes of seeking judicial 
review. Filing a petition for reconsideration 
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under subparagraph (A) shall not be a condi-
tion precedent to judicial review of any such 
size standard.’’. 
SEC. 846. LIMITATIONS ON REVERSE AUCTIONS. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that, when used appropriately, reverse auctions may 
improve the Federal Government’s procurement of com-
mercially available commodities by increasing competition, 
reducing prices, and improving opportunities for small 
businesses. 
(b) LIMITATIONS
ON
REVERSE
AUCTIONS.—The 
Small Business Act (15 U.S.C. 631 et seq.) is amended— 
(1) by redesignating section 47 (15 U.S.C. 631 
note) as section 48; and 
(2) by inserting after section 46 the following 
new section: 
‘‘SEC. 47. LIMITATIONS ON REVERSE AUCTIONS. 
‘‘(a) PROHIBITION ON USING REVERSE AUCTIONS 
FOR COVERED CONTRACTS.—In the case of a covered con-
tract described in subsection (c), a reverse auction may 
not be used if the award of the contract is to be made 
under— 
‘‘(1) section 8(a); 
‘‘(2) section 8(m); 
‘‘(3) section 15(a); 
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‘‘(4) section 15(j); 
‘‘(5) section 31; or 
‘‘(6) section 36. 
‘‘(b) LIMITATIONS ON USING REVERSE AUCTIONS.— 
In the case of the award of a contract made under para-
graphs (1) through (6) of subsection (a) that is not a cov-
ered contract, a reverse auction may be used for the award 
of such a contract, but only if the following requirements 
are met: 
‘‘(1) DECISIONS
REGARDING
USE
OF
A
RE-
VERSE AUCTION.—Subject to paragraph (2), the fol-
lowing decisions with respect to such a contract shall 
be made only by a contracting officer: 
‘‘(A) A decision to use a reverse auction as 
part of the competition for award of such a con-
tract. 
‘‘(B) Any decision made after the decision 
described in subsection (A) regarding the ap-
propriate evaluation criteria, the inclusion of 
vendors, the acceptability of vendor submissions 
(including decisions regarding timeliness), and 
the selection of the winner. 
‘‘(2) TRAINING REQUIRED.—Only a contracting 
officer who has received training on the appropriate 
use and supervision of reverse auctions may use or 
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supervise a reverse auction for the award of such a 
contract. The training shall be provided by, or simi-
lar to the training provided by, the Defense Acquisi-
tion University as described in section 824 of the 
Carl Levin and Howard P. ‘Buck’ McKeon National 
Defense Authorization Act for Fiscal Year 2015 
(Public Law 113–291). 
‘‘(3) NUMBER
OF
OFFERS; 
REVISIONS
TO 
BIDS.—A Federal agency may not award such a con-
tract using a reverse auction if only one offer is re-
ceived or if offerors do not have the ability to submit 
revised bids with lower prices throughout the course 
of the auction. 
‘‘(4) TECHNICALLY
ACCEPTABLE
OFFERS.—A 
Federal agency awarding such a contract using a re-
verse auction shall evaluate the technical accept-
ability of offers only as technically acceptable or un-
acceptable. 
‘‘(5) USE
OF
PRICE
RANKINGS.—A Federal 
agency may not award such a contract using a re-
verse auction if at any time during the award proc-
ess the Federal agency misinforms an offeror about 
the price ranking of the offeror’s last offer sub-
mitted in relation to offers submitted by other 
offerors. 
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‘‘(6) USE OF THIRD-PARTY AGENTS.—If a Fed-
eral agency uses a third party agent to assist with 
the award of such a contract using a reverse auc-
tion, the Federal agency shall ensure that— 
‘‘(A) inherently governmental functions (as 
such term is used in section 2303 of title 41, 
United States Code) are not performed by pri-
vate contractors, including by the third party 
agent; 
‘‘(B) information on the past contract per-
formance of offerors created by the third party 
agent and shared with the Federal agency is 
collected, maintained, and shared in compliance 
with section 1126 of title 41, United States 
Code; 
‘‘(C) information on whether an offeror is 
a responsible source (as defined in section 113 
of title 41, United States Code) that is created 
by the third party agent and shared with the 
Federal agency is shared with the offeror and 
complies with section 8(b)(7) of this Act; and 
‘‘(D) disputes between the third party 
agent and an offeror may not be used to justify 
a determination that an offeror is not a respon-
sible source (as defined in section 113 of title 
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41, United States Code) or to otherwise restrict 
the ability of an offeror to compete for the 
award of such a contract or task or delivery 
order. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) CONTRACTING OFFICER.—The term ‘con-
tracting officer’ has the meaning given that term in 
section 2101(1) of title 41, United States Code. 
‘‘(2) COVERED CONTRACT.—The term ‘covered 
contract’ means a contract— 
‘‘(A) for design and construction services; 
‘‘(B) for goods purchased to protect Fed-
eral employees, members of the Armed Forces, 
or civilians from bodily harm; or 
‘‘(C) for goods or services other than those 
goods or services described in subparagraph (A) 
or (B)— 
‘‘(i) to be awarded based on factors 
other than price and technical responsi-
bility; or 
‘‘(ii) if awarding the contract requires 
the contracting officer to conduct discus-
sions with the offerors about their offer. 
‘‘(3) DESIGN AND CONSTRUCTION SERVICES.— 
The term ‘design and construction services’ means— 
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‘‘(A) site planning and landscape design; 
‘‘(B) architectural and interior design; 
‘‘(C) engineering system design; 
‘‘(D) performance of construction work for 
facility, infrastructure, and environmental res-
toration projects; 
‘‘(E) delivery and supply of construction 
materials to construction sites; 
‘‘(F) construction, alteration, or repair, in-
cluding painting and decorating, of public build-
ings and public works; and 
‘‘(G) architectural and engineering services 
as defined in section 1102 of title 40, United 
States Code. 
‘‘(4) REVERSE
AUCTION.—The term ‘reverse 
auction’, with respect to procurement by an agency, 
means an auction between a group of offerors who 
compete against each other by submitting offers for 
a contract or task or delivery order with the ability 
to submit revised offers with lower prices throughout 
the course of the auction.’’. 
SEC. 847. SENSE OF CONGRESS ON PROCUREMENT OF FIRE 
HOSES. 
(a) FINDINGS.— 
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(1) The General Services Administration has 
historically procured specialized fire hoses designed 
for combating wildfires used by the Forest Service. 
(2) A memorandum of agreement was signed on 
February 5, 2014, by the Administrator of General 
Services and the Director of the Defense Logistics 
Agency designating the Defense Logistics Agency as 
the integrated material manager and source of sup-
ply for such fire hoses. 
(3) While the intent of this agreement was to 
secure efficiencies in procurement and cost savings 
for the Government, the transfer of procurement au-
thority to the Department of Defense had the unin-
tentional effect of requiring all suppliers of such fire 
hoses to comply with the domestic sourcing require-
ments of section 2533a of title 10, United States 
Code, also known as the Berry Amendment. 
(4) There is currently only one known provider 
of such fire hoses and that provider is not fully com-
pliant with the domestic sourcing requirements of 
the Berry Amendment. 
(5) As a result of the designation of the De-
fense Logistic Agency as the integrated material 
manager for the procurement of such fire hoses and 
the new requirement for compliance with the Berry 
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Amendment, the Forest Service does not anticipate 
the ability to procure the necessary number of fire 
hoses before the fire season begins in early June and 
is currently facing a shortfall of 56,000 hoses out of 
the 93,000 required. According to the Chief of the 
Forest Service, this shortfall represents a critical 
risk to a number of States that are likely to experi-
ence a season of above average wildfire activity. 
(6) During the period of May 1, 2014, through 
May 5, 2015, less than 9 percent of quantities of 
such hoses purchased by the Defense Logistics 
Agency were procured for the purposes of the De-
partment of Defense. 
(b) SENSE OF CONGRESS.—Based on the findings in 
subsection (a), it is the sense of Congress that procure-
ment authority for specialized fire hoses for the United 
States Forest Service should be reestablished as an activ-
ity of the General Services Administration. 
Subtitle E—Other Matters 
SEC. 851. ADDITIONAL RESPONSIBILITY FOR DIRECTOR OF 
OPERATIONAL TEST AND EVALUATION. 
(a) ADDITIONAL RESPONSIBILITY.—Section 139 of 
title 10, United States Code, is amended— 
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(1) by redesignating subsections (c), (d), (e), 
(f), (g), (h), (i), (j), and (k) as subsections (d), (e), 
(f), (g), (h), (i), (j), (k), and (l), respectively; and 
(2) by inserting after subsection (b) the fol-
lowing new subsection (c): 
‘‘(c) The Director shall consider the potential for in-
creases in program cost estimates or delays in schedule 
estimates in the implementation of policies, procedures, 
and activities related to operational test and evaluation 
and shall take appropriate action to ensure that oper-
ational test and evaluation activities do not unnecessarily 
increase program costs or impede program schedules.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
196(c)(1)(A)(ii) of such title is amended by striking ‘‘sec-
tion 139(i)’’ and inserting ‘‘section 139(k)’’. 
SEC. 852. USE OF RECENT PRICES PAID BY THE GOVERN-
MENT IN THE DETERMINATION OF PRICE 
REASONABLENESS. 
Section 2306a(b) of title 10, United States Code, as 
amended by section 804, is further amended by adding 
at the end the following new paragraph: 
‘‘(5) A contracting officer shall consider evi-
dence provided by an offeror of recent purchase 
prices paid by the Government for the same or simi-
lar commercial items in establishing price reason-
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ableness on a subsequent purchase if the contracting 
officer is satisfied that the prices previously paid re-
main a valid reference for comparison after consid-
ering the totality of other relevant factors such as 
the time elapsed since the prior purchase and any 
differences in the quantities purchased or applicable 
terms and conditions.’’. 
SEC. 853. CODIFICATION OF OTHER TRANSACTION AU-
THORITY 
FOR 
CERTAIN 
PROTOTYPE 
PROJECTS. 
(a) IN GENERAL.—Section 845 of the National De-
fense Authorization Act for Fiscal Year 1994 (Public Law 
103–160; 10 U.S.C. 2371 note) is transferred to chapter 
139 of title 10, United States Code, inserted so as to ap-
pear after section 2371a, redesignated as section 2371b, 
and amended— 
(1) by amending the section heading to read as 
follows: 
‘‘§ 2371b. 
Authority 
of 
the 
Advanced 
Research 
Projects Agency to carry out certain pro-
totype projects’’; 
(2) by striking ‘‘of title 10, United States 
Code’’ each place it appears and inserting ‘‘of this 
title’’; 
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(3) by striking ‘‘of title 41, United States 
Code’’ each place it appears and inserting ‘‘of title 
41’’; 
(4) by amending subparagraph (B) of sub-
section (d)(1) to read as follows: 
‘‘(B) all parties to the transaction other than 
the Federal Government are innovative small busi-
ness and nontraditional contractors with unique ca-
pabilities relevant to the prototype project.’’; and 
(5) by striking subsection (i). 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 2371a the following new 
item: 
‘‘2371b. Authority of the Advanced Research Projects Agency to carry out cer-
tain prototype projects.’’. 
SEC. 
854. 
AMENDMENTS 
TO 
CERTAIN 
ACQUISITION 
THRESHOLDS. 
(a) SIMPLIFIED ACQUISITION THRESHOLD GEN-
ERALLY.—Section 134 of title 41, United States Code, is 
amended 
by 
striking 
‘‘$100,000’’ 
and 
inserting 
‘‘$500,000’’. 
(b) 
MICRO-PURCHASE
THRESHOLD.—Section 
1902(a) of title 41, United States Code, is amended by 
striking ‘‘$3,000’’ and inserting ‘‘$5,000’’. 
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(c) SPECIAL EMERGENCY PROCUREMENT AUTHOR-
ITY.—Section 1903(b)(2) of title 41, United States Code, 
is amended— 
(1) 
in 
subparagraph 
(A), 
by 
striking 
‘‘$250,000’’ and inserting ‘‘$750,000’’; and 
(2) 
in 
subparagraph 
(B), 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’. 
(d) SMALL BUSINESS CONCERN RESERVATION.— 
Section 15(j)(1) of the Small Business Act (15 U.S.C. 
644(j)(1)) is amended by striking ‘‘$100,000’’ and insert-
ing ‘‘$500,000’’. 
(e) LIMITATION.—Subsection (a) shall not apply to 
a covered item as defined in subparagraphs of (B), (C), 
(D), or (E) of section 2533a(b)(1) of title 10, United 
States Code. 
SEC. 855. REVISION OF METHOD OF ROUNDING WHEN MAK-
ING INFLATION ADJUSTMENT OF ACQUISI-
TION-RELATED DOLLAR THRESHOLDS. 
Section 1908(e)(2) of title 41, United States Code, 
is amended— 
(1) in the matter preceding subparagraph (A), 
by striking ‘‘on the day before the adjustment’’ and 
inserting ‘‘as calculated under paragraph (1)’’; 
(2) by striking ‘‘and’’ at the end of subpara-
graph (C); and 
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(3) by striking subparagraph (D) and inserting 
the following new subparagraphs: 
‘‘(D) not less than $1,000,000, but less 
than $10,000,000, to the nearest $500,000; 
‘‘(E) not less than $10,000,000, but less 
than $100,000,000, to the nearest $5,000,000; 
‘‘(F) not less than $100,000,000, but less 
than 
$1,000,000,000, 
to 
the 
nearest 
$50,000,000; and 
‘‘(G) $1,000,000,000 or more, to the near-
est $500,000,000.’’. 
SEC. 856. REPEAL OF REQUIREMENT FOR STAND-ALONE 
MANPOWER 
ESTIMATES 
FOR 
MAJOR 
DE-
FENSE ACQUISITION PROGRAMS. 
(a) REPEAL OF REQUIREMENT.—Subsection (a)(1) 
of section 2434 of title 10, United States Code, is amend-
ed by striking ‘‘and a manpower estimate for the program 
have’’ and inserting ‘‘has’’. 
(b) CONFORMING AMENDMENTS RELATING TO REG-
ULATIONS.—Subsection (b) of such section is amended— 
(1) by striking paragraph (2); 
(2) by striking ‘‘shall require—’’ and all that 
follows through ‘‘that the independent’’ and insert-
ing ‘‘shall require that the independent’’; 
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(3) by redesignating subparagraphs (A) and 
(B) as paragraphs (1) and (2), respectively, and re-
aligning those paragraphs so as to be two ems from 
the left margin; and 
(4) in paragraph (2), as so redesignated— 
(A) by striking ‘‘and operations and sup-
port,’’ and inserting ‘‘operations and support, 
and manpower to operate, maintain, and sup-
port the program upon full operational deploy-
ment,’’; and 
(B) by striking ‘‘; and’’ at the end and in-
serting a period. 
(c) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of such 
section is amended to read as follows: 
‘‘§ 2434. Independent cost estimates’’. 
(2) TABLE OF SECTIONS.—The item relating to 
such section in the table of sections at the beginning 
of chapter 144 of such title is amended to read as 
follows: 
‘‘2434. Independent cost estimates.’’. 
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SEC. 857. EXAMINATION AND GUIDANCE RELATING TO 
OVERSIGHT AND APPROVAL OF SERVICES 
CONTRACTS. 
Not later than March 1, 2016, the Under Secretary 
of Defense for Acquisition, Technology, and Logistics 
shall— 
(1) complete an examination of the decision au-
thority related to acquisition of services; and 
(2) develop and issue guidance to improve capa-
bilities and processes related to requirements devel-
opment and source selection for, and oversight and 
management of, services contracts. 
SEC. 858. STREAMLINING OF REQUIREMENTS RELATING TO 
DEFENSE BUSINESS SYSTEMS. 
(a) IN GENERAL.— 
(1) REVISION.—Section 2222 of title 10, 
United States Code, is amended to read as follows: 
‘‘§ 2222. Defense business systems: business process 
reengineering; 
enterprise 
architecture; 
management 
‘‘(a) DEFENSE BUSINESS SYSTEMS GENERALLY.— 
The Secretary of Defense shall ensure that each covered 
defense business system developed, deployed, and operated 
by the Department of Defense— 
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‘‘(1) supports efficient business processes that 
have been reviewed, and as appropriate revised, 
through business process reengineering; 
‘‘(2) is integrated into a comprehensive defense 
business enterprise architecture; and 
‘‘(3) is managed in a manner that provides visi-
bility into, and traceability of, expenditures for the 
system. 
‘‘(b) ISSUANCE OF GUIDANCE.— 
‘‘(1) SECRETARY
OF
DEFENSE
GUIDANCE.— 
The Secretary shall issue guidance to provide for the 
coordination of, and decision making for, the plan-
ning, programming, and control of investments in 
covered defense business systems. 
‘‘(2) SUPPORTING
GUIDANCE.—The Secretary 
shall direct the Deputy Chief Management Officer of 
the Department of Defense, the Under Secretary of 
Defense for Acquisition, Technology, and Logistics, 
the Chief Information Officer, and the Chief Man-
agement Officer of each of the military departments 
to issue and maintain supporting guidance, as ap-
propriate, for the guidance of the Secretary issued 
under paragraph (1). 
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‘‘(c) GUIDANCE ELEMENTS.—The guidance issued 
under subsection (b)(1) shall include the following ele-
ments: 
‘‘(1) Policy to ensure that the business proc-
esses of the Department of Defense are continuously 
reviewed and revised— 
‘‘(A) to implement the most streamlined 
and efficient business processes practicable; 
‘‘(B) to enable the use of commercial off- 
the-shelf business systems with the fewest 
changes necessary to accommodate require-
ments and interfaces that are unique to the De-
partment of Defense; 
‘‘(C) to evaluate commercial off-the-shelf 
business systems for security, resilience, reli-
ability, interoperability, and integration with ex-
isting interrelated systems where such system 
integration and interoperability are essential to 
Department of Defense operations; 
‘‘(D) to work with commercial off-the-shelf 
business system developers and owners in 
adapting systems for Department of Defense 
use; 
‘‘(E) to work with commercial off-the-shelf 
business system developers and owners where 
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necessary to evaluate the feasibility of making 
the necessary changes where needed to adapt 
systems for Department of Defense use; 
‘‘(F) to perform Department of Defense 
system audits to determine which systems are 
related to or rely upon the system to be re-
placed or integrated with commercial off-the- 
shelf business systems; 
‘‘(G) to include data mapping as a step in 
the testing of commercial off-the-shelf business 
systems prior to deployment; and 
‘‘(H) to perform full backup of systems 
that will be changed or replaced by the installa-
tion of commercial off-the-shelf business sys-
tems prior to installation and deployment to en-
sure reconstitution of the system to a func-
tioning state should it become necessary. 
‘‘(2) A process to establish requirements for 
covered defense business systems. 
‘‘(3) Mechanisms for the planning and control 
of investments in covered defense business systems, 
including a process for the collection and review of 
programming and budgeting information for covered 
defense business systems. 
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‘‘(4) Policy requiring the periodic review of cov-
ered defense business systems that have been fully 
deployed, by portfolio, to ensure that investments in 
such portfolios are appropriate. 
‘‘(d) DEFENSE BUSINESS ENTERPRISE ARCHITEC-
TURE.— 
‘‘(1) BLUEPRINT.—The Secretary, working 
through the Deputy Chief Management Officer of 
the Department of Defense, shall develop and main-
tain a blueprint to guide the development of inte-
grated business processes within the Department of 
Defense. Such blueprint shall be known as the ‘de-
fense business enterprise architecture’. 
‘‘(2) PURPOSE.—The defense business enter-
prise architecture shall be sufficiently defined to ef-
fectively guide implementation of interoperable de-
fense business system solutions and shall be con-
sistent with the policies and procedures established 
by the Director of the Office of Management and 
Budget. 
‘‘(3) ELEMENTS.—The defense business enter-
prise architecture shall— 
‘‘(A) include policies, procedures, business 
data standards, business performance measures, 
and business information requirements that 
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apply uniformly throughout the Department of 
Defense; and 
‘‘(B) enable the Department of Defense 
to— 
‘‘(i) comply with all applicable law, in-
cluding Federal accounting, financial man-
agement, and reporting requirements; 
‘‘(ii) 
routinely 
produce 
verifiable, 
timely, accurate, and reliable business and 
financial information for management pur-
poses; and 
‘‘(iii) integrate budget, accounting, 
and program information and systems. 
‘‘(4) INTEGRATION INTO INFORMATION TECH-
NOLOGY ARCHITECTURE.—(A) The defense business 
enterprise architecture shall be integrated into the 
information technology enterprise architecture re-
quired under subparagraph (B). 
‘‘(B) The Chief Information Officer of the De-
partment of Defense shall develop an information 
technology enterprise architecture. The architecture 
shall describe a plan for improving the information 
technology and computing infrastructure of the De-
partment of Defense, including for each of the major 
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business processes conducted by the Department of 
Defense. 
‘‘(e) DEFENSE BUSINESS COUNCIL.— 
‘‘(1) REQUIREMENT FOR COUNCIL.—The Sec-
retary shall establish a Defense Business Council to 
provide advice to the Secretary on developing the de-
fense business enterprise architecture, reengineering 
the Department’s business processes, and require-
ments for defense business systems. The Council 
shall be chaired by the Deputy Chief Management 
Officer and the Chief Information Officer of the De-
partment of Defense. 
‘‘(2) MEMBERSHIP.—The membership of the 
Council shall include the following: 
‘‘(A) The Chief Management Officers of 
the military departments, or their designees. 
‘‘(B) The following officials of the Depart-
ment of Defense, or their designees: 
‘‘(i) The Under Secretary of Defense 
for Acquisition, Technology, and Logistics 
with respect to acquisition, logistics, and 
installations management processes. 
‘‘(ii) The Under Secretary of Defense 
(Comptroller) with respect to financial 
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management and planning and budgeting 
processes. 
‘‘(iii) The Under Secretary of Defense 
for Personnel and Readiness with respect 
to human resources management proc-
esses. 
‘‘(f) APPROVALS REQUIRED FOR DEVELOPMENT.— 
‘‘(1) INITIAL APPROVAL REQUIRED.—The Sec-
retary shall ensure that a covered defense business 
system program cannot proceed into development 
(or, if no development is required, into production or 
fielding) unless the appropriate approval official (as 
specified in paragraph (2)) approves the program by 
determining that the covered defense business sys-
tem concerned— 
‘‘(A) supports a business process that has 
been, or is being as a result of the acquisition 
program, reengineered to be as streamlined and 
efficient as practicable consistent with the guid-
ance issued pursuant to subsection (b), includ-
ing business process mapping; 
‘‘(B) is in compliance with the defense 
business enterprise architecture developed pur-
suant to subsection (d) or will be in compliance 
as a result of modifications planned; 
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‘‘(C) has valid, achievable requirements; 
and 
‘‘(D) is in compliance with the Depart-
ment’s auditability requirements. 
‘‘(2) APPROPRIATE OFFICIAL.—For purposes of 
paragraph (1), the appropriate approval official with 
respect to a covered defense business system is the 
following: 
‘‘(A) In the case of a system of a military 
department, the Chief Management Officer of 
that military department. 
‘‘(B) In the case of a system of a Defense 
Agency or Defense Field Activity or a system 
that will support the business process of more 
than one military department or Defense Agen-
cy or Defense Field Activity, the Deputy Chief 
Management Officer of the Department of De-
fense. 
‘‘(C) In the case of any system, such offi-
cial other than the applicable official under sub-
paragraph (A) or (B) as the Secretary des-
ignates for such purpose. 
‘‘(3) ANNUAL CERTIFICATION.—For any fiscal 
year in which funds are expended for development 
pursuant to a covered defense business system pro-
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gram, the Defense Business Council shall review the 
system and certify (or decline to certify as the case 
may be) that it continues to satisfy the requirements 
of paragraph (1). If the Council determines that cer-
tification cannot be granted, the chairman of the 
Council shall notify the appropriate approval official 
and the acquisition Milestone Decision Authority for 
the program and provide a recommendation for cor-
rective action. 
‘‘(4) OBLIGATION OF FUNDS IN VIOLATION OF 
REQUIREMENTS.—The obligation of Department of 
Defense funds for a covered defense business system 
program that has not been certified in accordance 
with paragraph (3) is a violation of section 
1341(a)(1)(A) of title 31. 
‘‘(g) RESPONSIBILITY OF MILESTONE DECISION AU-
THORITY.—The Secretary shall ensure that, as part of the 
defense acquisition system, the requirements of this sec-
tion are fully addressed by the Milestone Decision Author-
ity for a covered defense business system program as ac-
quisition process approvals are considered for such system. 
‘‘(h) ANNUAL REPORT.—Not later than March 15 of 
each year from 2016 through 2020, the Secretary shall 
submit to the congressional defense committees a report 
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on activities of the Department of Defense pursuant to 
this section. Each report shall include the following: 
‘‘(1) A description of actions taken and planned 
with respect to the guidance required by subsection 
(b) and the defense business enterprise architecture 
developed pursuant to subsection (d). 
‘‘(2) A description of actions taken and planned 
for the reengineering of business processes by the 
Defense Business Council established pursuant to 
subsection (e). 
‘‘(3) A summary of covered defense business 
system funding and covered defense business sys-
tems approved pursuant to subsection (f). 
‘‘(4) Identification of any covered defense busi-
ness system program that during the preceding fis-
cal year was reviewed and not approved pursuant to 
subsection (f) and the reasons for the lack of ap-
proval. 
‘‘(5) Identification of any covered defense busi-
ness system program that during the preceding fis-
cal year failed to achieve initial operational capa-
bility within five years after the date the program 
received Milestone B approval. 
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‘‘(6) For any program identified under para-
graph (5), a description of the plan to address the 
issues that caused the failure. 
‘‘(7) A discussion of specific improvements in 
business operations and cost savings resulting from 
successful covered defense business systems pro-
grams. 
‘‘(8) A copy of the most recent report of the 
Chief Management Officer of each military depart-
ment on implementation of business transformation 
initiatives by such military department in accordance 
with section 908 of the Duncan Hunter National 
Defense Authorization Act for Fiscal Year 2009 
(Public Law 110–417; 122 Stat. 4569; 10 U.S.C. 
2222 note). 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1)(A) DEFENSE
BUSINESS
SYSTEM.—The 
term ‘defense business system’ means an informa-
tion system that is operated by, for, or on behalf of 
the Department of Defense, including any of the fol-
lowing: 
‘‘(i) A financial system. 
‘‘(ii) A financial data feeder system. 
‘‘(iii) A contracting system. 
‘‘(iv) A logistics system. 
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‘‘(v) A planning and budgeting sys-
tem. 
‘‘(vi) An installations management 
system. 
‘‘(vii) A human resources manage-
ment system. 
‘‘(viii) A training and readiness sys-
tem. 
‘‘(B) The term does not include— 
‘‘(i) a national security system; or 
‘‘(ii) an information system used ex-
clusively by and within the defense com-
missary system or the exchange system or 
other instrumentality of the Department of 
Defense conducted for the morale, welfare, 
and recreation of members of the armed 
forces using nonappropriated funds. 
‘‘(2) COVERED DEFENSE BUSINESS SYSTEM.— 
The term ‘covered defense business system’ means a 
defense business system that is expected to have a 
total amount of budget authority, over the period of 
the current future-years defense program submitted 
to Congress under section 221 of this title, in excess 
of the threshold established for the use of special 
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simplified acquisition procedures pursuant to section 
2304(g)(1)(B) of this title. 
‘‘(3) COVERED
DEFENSE
BUSINESS
SYSTEM 
PROGRAM.—The term ‘covered defense business sys-
tem program’ means a defense acquisition program 
to develop and field a covered defense business sys-
tem or an increment of a covered defense business 
system. 
‘‘(4) ENTERPRISE ARCHITECTURE.—The term 
‘enterprise architecture’ has the meaning given that 
term in section 3601(4) of title 44. 
‘‘(5) INFORMATION SYSTEM.—The term ‘infor-
mation system’ has the meaning given that term in 
section 11101 of title 40. 
‘‘(6) NATIONAL SECURITY SYSTEM.—The term 
‘national security system’ has the meaning given 
that term in section 3542(b)(2) of title 44. 
‘‘(7) MILESTONE DECISION AUTHORITY.—The 
term ‘Milestone Decision Authority’, with respect to 
a defense acquisition program, means the individual 
within the Department of Defense designated with 
the responsibility to grant milestone approvals for 
that program. 
‘‘(8) BUSINESS PROCESS MAPPING.—The term 
‘business process mapping’ means a procedure in 
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which the steps in a business process are clarified 
and documented in both written form and in a flow 
chart.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by striking the item relating to section 2222 and in-
serting the following new item: 
‘‘2222. Defense business systems: business process reengineering; enterprise ar-
chitecture; management.’’. 
(b) DEADLINE FOR GUIDANCE.—The guidance re-
quired by subsection (b)(1) of section 2222 of title 10, 
United States Code, as amended by subsection (a)(1), 
shall be issued not later than December 31, 2016. 
(c) REPEAL.—Section 811 of the John Warner Na-
tional Defense Authorization Act for Fiscal Year 2007 
(Public Law 109–364; 10 U.S.C. 2222 note) is repealed. 
SEC. 859. CONSIDERATION OF STRATEGIC MATERIALS IN 
PRELIMINARY DESIGN REVIEW. 
(a) CONSIDERATION.—The Under Secretary of De-
fense for Acquisition, Technology, and Logistics shall en-
sure that Department of Defense Instruction 5000.02 and 
other applicable guidance receive full consideration, during 
preliminary design review for a product, with respect to 
any strategic materials required for sustainment of the 
product over the life cycle of the product. 
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(b) STRATEGIC MATERIALS.—In this section, the 
term ‘‘strategic materials’’ means— 
(1) materials critical to national security, as de-
fined in section 187(e)(1) of title 10, United States 
Code; and 
(2) any specialty metal, as defined in section 
2533b(l) of such title. 
SEC. 860. PROCUREMENT OF PERSONAL PROTECTIVE 
EQUIPMENT. 
(a) REQUIREMENT.—The Secretary of Defense shall 
use best value tradeoff source selection methods to the 
maximum extent practicable when procuring an item of 
personal protective equipment or critical safety items. 
(b) 
PERSONAL
PROTECTIVE
EQUIPMENT
DE-
FINED.—In this section, the term ‘‘personal protective 
equipment’’ includes the following: 
(1) Body armor components. 
(2) Combat helmets. 
(3) Combat protective eyewear. 
(4) Environmental and fire resistant clothing. 
(5) Footwear. 
(6) Organizational clothing and individual 
equipment. 
(7) Other critical safety items as determined 
appropriate by the Secretary. 
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SEC. 861. AMENDMENTS CONCERNING DETECTION AND 
AVOIDANCE OF COUNTERFEIT ELECTRONIC 
PARTS. 
Section 818(c)(2)(B) of the National Defense Au-
thorization Act for Fiscal Year 2012 (Public Law 112– 
81; 10 U.S.C. 2302 note) is amended— 
(1) in clause (i), by inserting ‘‘electronic’’ after 
‘‘avoid counterfeit’’; 
(2) in clause (ii)— 
(A) by inserting ‘‘covered’’ after ‘‘provided 
to the’’; and 
(B) by inserting ‘‘or were obtained by the 
covered contractor in accordance with regula-
tions described in paragraph (3)’’ after ‘‘Regu-
lation’’; and 
(3) in clause (iii), by inserting ‘‘discovers the 
counterfeit electronic parts or suspect counterfeit 
electronic parts and’’ after ‘‘contractor’’. 
SEC. 862. REVISION TO DUTIES OF THE DEPUTY ASSISTANT 
SECRETARY OF DEFENSE FOR DEVELOP-
MENTAL TEST AND EVALUATION AND THE 
DEPUTY ASSISTANT SECRETARY OF DEFENSE 
FOR SYSTEMS ENGINEERING. 
Section 139b of title 10, United States Code, is 
amended— 
(1) in subsection (a)(5)— 
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(A) in subparagraph (B), by striking ‘‘re-
view and approve or disapprove’’ and inserting 
‘‘advise in writing the milestone decision au-
thority regarding review and approval of’’; and 
(B) in subparagraph (C), by inserting ‘‘in 
order to advise relevant technical authorities for 
such programs on the incorporation of best 
practices for developmental test from across the 
Department’’ after ‘‘programs’’; and 
(2) in subsection (b)(5)— 
(A) in subparagraph (B), by striking ‘‘re-
view and approve’’ and inserting ‘‘advise in 
writing the milestone decision authority regard-
ing review and approval of’’; and 
(B) in subparagraph (C), by inserting ‘‘in 
order to advise relevant technical authorities for 
such programs on the incorporation of best 
practices for systems engineering from across 
the Department’’ after ‘‘programs’’. 
SEC. 863. EXTENSION OF LIMITATION ON AGGREGATE AN-
NUAL AMOUNT AVAILABLE FOR CONTRACT 
SERVICES. 
Section 808 of the National Defense Authorization 
Act for Fiscal Year 2012 (Public Law 112–81; 125 Stat. 
1489), as most recently amended by section 813 of the 
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National Defense Authorization Act for Fiscal Year 2015 
(Public Law 113–291; 128 Stat. 3429) is further amend-
ed— 
(1) in subsections (a) and (b), by striking ‘‘or 
2015’’ and inserting ‘‘2015, or 2016’’; 
(2) in subsection (c)(3), by striking ‘‘and 2015’’ 
and inserting ‘‘2015, and 2016’’; 
(3) in subsection (d)(4), by striking ‘‘or 2015’’ 
and inserting ‘‘2015, or 2016’’; and 
(4) in subsection (e), by striking ‘‘2015’’ and 
inserting ‘‘2016’’. 
SEC. 864. USE OF LOWEST PRICE, TECHNICALLY ACCEPT-
ABLE EVALUATION METHOD FOR PROCURE-
MENT OF AUDIT OR AUDIT READINESS SERV-
ICES. 
(a) FINDINGS.—Congress finds the following: 
(1) Given the size and scope of the Department 
of Defense, the effort to finish and institutionalize 
auditability is one of the more challenging manage-
ment tasks that has ever faced the Department. 
(2) The acquisition of services by the Depart-
ment abides by many rules and parameters, one of 
which is the lowest price, technically acceptable 
(LPTA) evaluation method. 
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(3) The Department’s audit effort is extremely 
complicated, requiring personnel and assistance who 
have the financial management and auditor skills 
that a non-independent public accounting firm or a 
non-credentialed firm offering the lowest price may 
not have. 
(4) In order for the Department to meet the 
September 30, 2017, audit readiness statutory dead-
line and the March 31, 2019, audit of fiscal year 
2018 statutory deadline, it is imperative that the 
Department not sacrifice contracts with firms who 
have the proper credentials and expertise to meet 
these deadlines. 
(5) The LPTA evaluation method is appro-
priate for commercial or non-complex services or 
supplies where the requirement is clearly definable 
and the risk of unsuccessful contract performance is 
minimal. However, audit and audit readiness serv-
ices are complex and evolving. 
(b) REQUIREMENTS BEFORE USING LPTA EVALUA-
TION METHOD.—Before using the lowest price, technically 
acceptable evaluation method for the procurement of audit 
or audit readiness services, the Secretary of Defense 
shall— 
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(1) establish the values and metrics for the 
services being procured, including domain expertise 
and experience, size and scope of offeror’s team, per-
sonnel qualifications and certifications, technology, 
and tools; and 
(2) review each offeror’s past performance re-
quirements. 
SEC. 865. EXCEPTION FOR ABILITYONE PRODUCTS FROM 
AUTHORITY TO ACQUIRE PRODUCTS AND 
SERVICES PRODUCED IN AFGHANISTAN, CEN-
TRAL ASIAN STATES, AND DJIBOUTI. 
(a) EXCEPTION
FOR CERTAIN ITEMS NOT PRO-
DUCED IN AFGHANISTAN.—Section 886 of the National 
Defense Authorization Act for Fiscal Year 2008 (10 
U.S.C. 2302 note) is amended— 
(1) in subsection (a), by inserting ‘‘and except 
as provided in subsection (d),’’ after ‘‘subsection 
(b),’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(d) EXCEPTION FOR ITEMS ON THE ABILITYONE 
PROCUREMENT LIST.—The requirements of this section 
shall not apply to any product that is included in the pro-
curement list described in section 8503(a) of title 41.’’. 
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(b) EXCEPTION
FOR CERTAIN ITEMS NOT PRO-
DUCED IN CENTRAL ASIAN STATES.—Section 801 of the 
National Defense Authorization Act for Fiscal Year 2010 
(Public Law 111-84; 123 Stat. 2400) is amended— 
(1) in subsection (a), by inserting ‘‘and except 
as provided in subsection (h),’’ after ‘‘subsection 
(b),’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(h) EXCEPTION FOR ITEMS ON THE ABILITYONE 
PROCUREMENT LIST.—The requirements of this section 
shall not apply to any product that is included in the pro-
curement list described in section 8503(a) of title 41.’’. 
(c) EXCEPTION
FOR CERTAIN ITEMS NOT PRO-
DUCED IN DJIBOUTI.—Section 1263 of the Carl Levin and 
Howard P. ‘‘Buck’’ McKeon National Defense Authoriza-
tion Act for Fiscal Year 2015 (Public Law 113-291) is 
amended— 
(1) in subsection (b), by inserting ‘‘and except 
as provided in subsection (g),’’ after ‘‘subsection 
(c),’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(g) EXCEPTION FOR ITEMS ON THE ABILITYONE 
PROCUREMENT LIST.—The requirements of this section 
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shall not apply to any product that is included in the pro-
curement list described in section 8503(a) of title 41.’’. 
SEC. 866. EFFECTIVE COMMUNICATION BETWEEN GOVERN-
MENT AND INDUSTRY. 
Not later than 180 days after the date of the enact-
ment of this Act, the Federal Acquisition Regulatory 
Council shall prescribe a regulation making clear that 
agency acquisition personnel are permitted and encour-
aged to engage in responsible and constructive exchanges 
with industry, so long as those exchanges are consistent 
with existing law and regulation and do not promote an 
unfair competitive advantage to particular firms. 
SEC. 867. STRENGTHENING PROGRAM AND PROJECT MAN-
AGEMENT PERFORMANCE. 
(a) PLAN
ON
STRENGTHENING
PROGRAM
AND 
PROJECT MANAGEMENT PERFORMANCE.—Not later than 
180 days following the date of the enactment of this Act, 
the Director of the Office of Management and Budget, in 
consultation with the Director of the Office of Personnel 
Management, shall submit to the relevant congressional 
committees a plan for improving management of IT pro-
grams and projects. 
(b) MATTERS COVERED.—The plan required by sub-
section (a) shall include, at a minimum, the following: 
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(1) Creation of a specialized career path for 
program management. 
(2) The development of a competency model for 
program management consistent with the IT project 
manager model. 
(3) A career advancement model that requires 
appropriate expertise and experience for advance-
ment. 
(4) A career advancement model that is more 
competitive with the private sector and that recog-
nizes both Government and private sector experi-
ence. 
(c) COMBINATION WITH OTHER CADRES PLAN.— 
The Director may combine the plan required by subsection 
(a) with the acquisition human capital plans that were de-
veloped pursuant to the October 27, 2009, guidance issued 
by the Administrator for Federal Procurement Policy in 
furtherance of section 1704(g) of title 41, United States 
Code (originally enacted as section 869 of the Duncan 
Hunter National Defense Authorization Act for Fiscal 
Year 2009 (Public Law 110-417; 122 Stat. 4553)), to ad-
dress how the agencies are meeting their human capital 
requirements to support the timely and effective acquisi-
tion of information technology. 
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SEC. 868. SYCHRONIZATION OF DEFENSE ACQUISITION 
CURRICULA. 
Section 1746(c) of title 10, United States Code, is 
amended— 
(1) by striking ‘‘The’’ and inserting ‘‘(1) The’’; 
and 
(2) by adding at the end the following: 
‘‘(2) The President of such University shall also 
convene a review board annually with faculty rep-
resentatives from relevant professional schools and 
degree-granting institutions of the Department of 
Defense and military departments, such as the serv-
ice academies, the Naval Postgraduate School, and 
other similar schools and institutions, in order to re-
view and synchronize defense acquisition curricula 
across the entire Department of Defense.’’. 
SEC. 869. RESEARCH AND ANALYSIS OF DEFENSE ACQUISI-
TION POLICY. 
Section 1746(a) of title 10, United States Code, is 
amended by striking paragraph (2) and inserting the fol-
lowing: 
‘‘(2) research and analysis of defense acquisi-
tion policy issues from academic institutions, such as 
the Naval Postgraduate School and other Depart-
ment of Defense schools, that offer in-depth analysis 
of the entire defense acquisition decision support 
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system from both a business and public policy per-
spective and from an operational and information 
sciences perspective.’’. 
SEC. 870. STANDARDS FOR OROCUREMENT OF SECURE IN-
FORMATION TECHNOLOGY AND CYBER SECU-
RITY SYSTEMS. 
(a) ASSESSMENT REQUIRED.—The Secretary of De-
fense shall conduct an assessment of the application of the 
Open Trusted Technology Provider Standard to Depart-
ment of Defense procurements for information technology 
and cyber security acquisitions and provide a briefing to 
the Committee on Armed Services of the House of Rep-
resentatives not later than one year after the date of the 
enactment of this Act. 
(b) ELEMENTS.—The assessment and briefing re-
quired by subsection (a) shall include the following: 
(1) Assessment of the current Open Trusted 
Technology Provider Standard to determine what as-
pects might be adopted by the Department of De-
fense and where additional development of the 
standard may be required. 
(2) Identification of the types or classes of pro-
grams where the standard might be applied most ef-
fectively, as well as identification of types or classes 
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of programs that should specifically be excluded 
from consideration. 
(3) Assessment of the impact on current acqui-
sition regulations or policies of the adoption of the 
standard. 
(4) Recommendations the Secretary may have 
related to the adoption of the standard or improve-
ment in the standard to support Department acqui-
sitions. 
(5) Any other matters the Secretary may deem 
appropriate. 
SEC. 871. MODIFICATIONS TO THE JUSTIFICATION AND AP-
PROVAL 
PROCESS 
FOR 
CERTAIN 
SOLE- 
SOURCE CONTRACTS FOR SMALL BUSINESS 
CONCERNS. 
(a) REPEAL OF SIMPLIFIED JUSTIFICATION AND AP-
PROVAL PROCESS.—Section 811 of the National Defense 
Authorization Act for Fiscal Year 2010 (Public Law 111- 
84; 123 Stat. 2405; 41 U.S.C. 3304 note) is repealed. 
(b) REQUIREMENTS FOR JUSTIFICATION AND AP-
PROVAL PROCESS.— 
(1) 
DEFENSE
PROCUREMENTS.—Section 
2304(f)(2)(D)(ii) of title 10, United States Code, is 
amended by inserting ‘‘if such procurement is for 
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property or services in an amount less than 
$20,000,000’’ before the semicolon at the end. 
(2) 
CIVILIAN
PROCUREMENTS.—Section 
3304(e)(4) of title 41, United States Code, is 
amended— 
(A) in subparagraph (C), by striking ‘‘or’’ 
at the end; 
(B) in subparagraph (D), by striking ‘‘or 
section 8(a) of the Small Business Act (15 
U.S.C. 637(a)).’’ and inserting ‘‘; or’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(E) the procurement is for property or 
services in an amount less than $20,000,000 
and is conducted under section 8(a) of the 
Small Business Act (15 U.S.C. 637(a)).’’. 
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
SEC. 901. REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY 
AND MARINE CORPS. 
(a) REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY AND MARINE 
CORPS.— 
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(1) REDESIGNATION
OF
MILITARY
DEPART-
MENT.—The military department designated as the 
Department of the Navy is redesignated as the De-
partment of the Navy and Marine Corps. 
(2) 
REDESIGNATION
OF
SECRETARY
AND 
OTHER STATUTORY OFFICES.— 
(A) SECRETARY.—The position of the Sec-
retary of the Navy is redesignated as the Sec-
retary of the Navy and Marine Corps. 
(B) OTHER
STATUTORY
OFFICES.—The 
positions of the Under Secretary of the Navy, 
the four Assistant Secretaries of the Navy, and 
the General Counsel of the Department of the 
Navy are redesignated as the Under Secretary 
of the Navy and Marine Corps, the Assistant 
Secretaries of the Navy and Marine Corps, and 
the General Counsel of the Department of the 
Navy and Marine Corps, respectively. 
(b) CONFORMING
AMENDMENTS
TO
TITLE
10, 
UNITED STATES CODE.— 
(1) 
DEFINITION
OF
‘‘MILITARY
DEPART-
MENT’’.—Paragraph (8) of section 101(a) of title 
10, United States Code, is amended to read as fol-
lows: 
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(A) Title 10, United States Code, is 
amended by striking ‘‘Department of the Navy’’ 
and ‘‘Secretary of the Navy’’ each place they 
appear other than as specified in paragraphs 
(1), (2), (3), and (4) (including in section head-
ings, subsection captions, tables of chapters, 
and tables of sections) and inserting ‘‘Depart-
ment of the Navy and Marine Corps’’ and ‘‘Sec-
retary of the Navy and Marine Corps’’, respec-
tively, in each case with the matter inserted to 
be in the same typeface and typestyle as the 
matter stricken. 
(B)(i) 
Sections 
5013(f), 
5014(b)(2), 
5016(a), 5017(2), 5032(a), and 5042(a) of 
such title are amended by striking ‘‘Assistant 
Secretaries of the Navy’’ and inserting ‘‘Assist-
ant Secretaries of the Navy and Marine Corps’’. 
(ii) The heading of section 5016 of such 
title, and the item relating to such section in 
the table of sections at the beginning of chapter 
503 of such title, are each amended by insert-
ing ‘‘and Marine Corps’’ after ‘‘of the Navy’’, 
with the matter inserted in each case to be in 
the same typeface and typestyle as the matter 
amended. 
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(c) OTHER PROVISIONS OF LAW AND OTHER REF-
ERENCES.— 
(1) TITLE 37, UNITED STATES CODE.—Title 37, 
United States Code, is amended by striking ‘‘De-
partment of the Navy’’ and ‘‘Secretary of the Navy’’ 
each place they appear and inserting ‘‘Department 
of the Navy and Marine Corps’’ and ‘‘Secretary of 
the Navy and Marine Corps’’, respectively. 
(2) OTHER
REFERENCES.—Any reference in 
any law other than in title 10 or title 37, United 
States Code, or in any regulation, document, record, 
or other paper of the United States, to the Depart-
ment of the Navy shall be considered to be a ref-
erence to the Department of the Navy and Marine 
Corps. Any such reference to an office specified in 
subsection (a)(2) shall be considered to be a ref-
erence to that office as redesignated by that section. 
(d) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the first 
day of the first month beginning more than 60 days after 
the date of the enactment of this Act. 
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SEC. 902. CHANGE OF PERIOD FOR CHAIRMAN OF THE 
JOINT CHIEFS OF STAFF REVIEW OF THE 
UNIFIED COMMAND PLAN. 
Section 161(b)(1) of title 10, United States Code, is 
amended by striking ‘‘two years’’ and inserting ‘‘four 
years’’. 
SEC. 903. UPDATE OF STATUTORY SPECIFICATION OF 
FUNCTIONS OF THE CHAIRMAN OF THE 
JOINT CHIEFS OF STAFF RELATING TO JOINT 
FORCE DEVELOPMENT ACTIVITIES. 
Section 153(a)(5) of title 10, United States Code, is 
amended by adding at the end the following new subpara-
graph: 
‘‘(F) Advising the Secretary on development of 
joint command, control, communications, and cyber 
capability, including integration and interoperability 
of such capability, through requirements, integrated 
architectures, data standards, and assessments.’’. 
SEC. 904. SENSE OF CONGRESS ON THE UNITED STATES 
MARINE CORPS. 
(a) FINDINGS.—Congress finds the following: 
(1) As senior United States statesman Dr. 
Henry Kissinger wrote in testimony submitted to the 
Senate Armed Services Committee on January 29, 
2015, ‘‘The United States has not faced a more di-
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verse and complex array of crises since the end of 
the Second World War.’’. 
(2) The rise of non-state forces and near peer 
competitors has introduced destabilizing pressures 
around the globe. 
(3) Advances in information and weapons tech-
nology have reduced the time available for the 
United States to prepare for and respond to crises 
against both known and unknown threats. 
(4) The importance of the maritime domain 
cannot be overstated. As acknowledged in the March 
2015 Navy, Marine Corps, and Coast Guard mari-
time strategy, ‘‘A Cooperative Strategy for 21st 
Century Seapower’’: ‘‘Oceans are the lifeblood of the 
interconnected global community. . . 90 percent of 
trade by volume travels across the oceans. Approxi-
mately 70 percent of the world’s population lives 
within 100 miles of the coastline.’’. 
(5) The United States must be prepared to rap-
idly respond to crises around the world regardless of 
the nation’s fiscal health. 
(6) In this global security environment, it is 
critical that the nation possess a maritime force 
whose mission and ethos is readiness—a fight to-
night force, forward deployed, that can respond im-
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mediately to emergent crises across the full range of 
military operations around the globe either from the 
sea or home station. 
(7) The need for such a force was recognized by 
the 82nd Congress after the major wars of the twen-
tieth century, when it mandated a core mission for 
the nation’s leanest force—the Marine Corps—to be 
most ready when the nation is least ready. 
(b) SENSE OF CONGRESS.— 
(1) It is the sense of Congress that— 
(A) the Marine Corps, within the Depart-
ment of the Navy, remain the Nation’s expedi-
tionary, crisis response force; 
(B) the need for such a force with such a 
capability has never been greater; and 
(C) accordingly, in recognition of this need 
and the wisdom of the 82nd Congress, the 
114th Congress reaffirms section 5063 of title 
10, United States Code, uniquely charging the 
United States Marine Corps with this responsi-
bility. 
(2) It is further the sense of Congress that the 
Marine Corps— 
(A) shall— 
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(i) be organized to include not less 
than three combat divisions and three air 
wings, and such other land combat, avia-
tion, and other services as may be organic 
therein; 
(ii) 
be 
organized, 
trained, 
and 
equipped to provide fleet marine forces of 
combined arms, together with supporting 
air components, for service with the fleet 
in the seizure or defense of advanced naval 
bases and for the conduct of such land op-
erations as may be essential to the pros-
ecution of a naval campaign; and 
(iii) provide detachments and organi-
zations for service on armed vessels of the 
Navy, shall provide security detachments 
for the protection of naval property at 
naval stations and bases, and shall perform 
such other duties as the President may di-
rect; 
but these additional duties may not detract 
from nor interfere with the operations for which 
the Marine Corps is primarily organized; 
(B) shall develop, in coordination with the 
Army and the Air Force, those phases of am-
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phibious operations that pertain to the tactics, 
techniques, and equipment used by landing 
forces; and 
(C) is responsible, in accordance with the 
integrated joint mobilization plans, for the ex-
pansion of peacetime components of the Marine 
Corps to meet the needs of war. 
SEC. 905. ADDITIONAL REQUIREMENTS FOR STREAM-
LINING OF DEPARTMENT OF DEFENSE MAN-
AGEMENT HEADQUARTERS. 
(a) FINDINGS.— 
(1) On July 31, 2013, the then Secretary of 
Defense stated that the Department would ‘‘reduc[e] 
the Department’s major headquarters budgets by 20 
percent. . .Although the 20 percent cut applies to 
budget dollars, organizations will strive for a goal of 
20 percent reductions in government civilians and 
military personnel.’’ The then Secretary further stat-
ed that ‘‘these management reforms. . .will reduce 
the Department’s overhead and operating costs 
by...$10 billion over the next five years.’’. 
(2) Furthermore, the President’s budget re-
quest for the Department of Defense for fiscal year 
2015 stated that reductions to management head-
quarters staff and consolidation of duplicative efforts 
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across the Department would result in a savings of 
$5.3 billion over 5 years—through fiscal year 2019. 
However, as noted by the Government Account-
ability Office in a January 2015 report (GAO–15– 
10), the Department accounted for $5.3 billion as 
efficiency savings in its budget request, but has not 
provided specific details on the reductions to man-
agement headquarters’ staff it plans to make. 
(3) In June 2014, the Government Account-
ability Office found (in GAO–14–439) that the De-
partment did not have an accurate accounting of the 
resources being devoted to management head-
quarters to use as a starting point for tracking re-
ductions to such headquarters. In April 2015, the 
Government Accountability Office reported (in 
GAO–15–404SP) that focusing reductions on man-
agement headquarters budgets and personnel, which 
tend to be inconsistently defined and often represent 
a small portion of the overall headquarters, shields 
much of the resources identified for potential reduc-
tion. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) the Secretary of Defense’s commitment in 
July 2013 to a goal of a 20 percent reduction in 
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headquarters budgets and personnel and a goal of 
$10 billion in cost savings over five years is worth-
while and should be fully implemented; 
(2) without a clear baseline for management 
headquarters, it is difficult to demonstrate and track 
progress achieving actual savings; 
(3) any reduction in personnel should not be 
implemented as an across-the-board cut, but rather 
should be strategically designed to retain critical 
functions, capabilities, and skill sets—including but 
not limited to depots and the acquisition work-
force—and eliminate unnecessary or redundant 
functions or skill sets that do not benefit or support 
mission requirements; 
(4) functions should be performed at the lowest 
appropriate organizational level and those organiza-
tions should be empowered and held accountable; 
(5) duplicative functions at higher level organi-
zations should be eliminated; and 
(6) the movement of a function from a manage-
ment headquarters to a different Department of De-
fense organization or a lower level organization does 
not result in an efficiency, since the same budget is 
still required to perform that function. 
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(c) REQUIREMENT TO IMPLEMENT 20 PERCENT RE-
DUCTION
IN
MANAGEMENT
HEADQUARTERS
FUNC-
TIONS.—Section 904 of the National Defense Authoriza-
tion Act for Fiscal Year 2014 (Public Law 113–66; 10 
U.S.C. 111 note) is amended by adding at the end the 
following new subsection: 
‘‘(e) IMPLEMENTATION
OF MANAGEMENT HEAD-
QUARTERS REDUCTION.—The Secretary of Defense shall 
implement the 20 percent reduction directed by the Sec-
retary in July 2013 in management headquarters budget 
and personnel by September 30, 2019, for the covered or-
ganizations in the National Capital Region (as defined in 
section 2674(f) of title 10, United States Code). Such re-
ductions shall be strategically designed to retain critical 
functions, capabilities, and skill sets. Management, func-
tions, programs, or offices shall be moved to the lowest 
appropriate organizational level. In any report issued pur-
suant to subsection (d), the Secretary may not claim a 
cost savings solely based on moving management, func-
tions, programs, or offices from one organization to an-
other.’’. 
(d) LIMITATION ON WORKING-CAPITAL FUND POSI-
TIONS.—Section 904 of the National Defense Authoriza-
tion Act for Fiscal Year 2014 (Public Law 113–66; 10 
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U.S.C. 111 note) is further amended by adding at the end 
the following new subsection: 
‘‘(f) LIMITATION ON WORKING-CAPITAL FUND POSI-
TIONS.—In implementing the 20 percent reduction re-
ferred to in subsection (e), the Secretary of Defense may 
not reduce the number of Department of Defense civilian 
employees whose salaries are funded from working-capital 
funds except in accordance with section 2472 of title 10, 
United States Code.’’. 
(e) CHANGE IN DEADLINE FOR REQUIRED PLAN.— 
Section 904(a) of the such Act is amended by striking 
‘‘180 days after the date of the enactment of this Act’’ 
and inserting ‘‘March 31, 2016’’. 
(f) ADDITIONAL
ELEMENTS
OF
PLAN.—Section 
904(b) of such Act is amended— 
(1) by redesignating paragraphs (1), (2), and 
(3) as paragraphs (2), (3), and (4), respectively; 
(2) by inserting before paragraph (2), as so re-
designated, the following new paragraph (1): 
‘‘(1) An accurate baseline accounting of defense 
headquarters budgets and personnel as of fiscal year 
2014, including what is and is not included as part 
of management headquarters accounting, and a de-
tailed description of the number of personnel, budg-
ets, functions, capabilities, and skill sets.’’; 
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(3) in paragraph (2), as so redesignated— 
(A) by inserting ‘‘actual and’’ before 
‘‘planned changes’’; 
(B) by striking ‘‘staffing’’ and inserting 
‘‘personnel’’; and 
(C) by inserting before the period at the 
end the following: ‘‘, set forth separately by fis-
cal year, from fiscal year 2014 through fiscal 
year 2019’’; 
(4) in paragraph (3), as so redesignated— 
(A) by striking ‘‘description of the planned 
changes’’ and inserting ‘‘detailed description of 
the actual and planned changes’’; and 
(B) by inserting before the period at the 
end the following: ‘‘, set forth separately by fis-
cal year, from fiscal year 2014 through fiscal 
year 2019’’; and 
(5) in paragraph (4), as so redesignated, by 
striking ‘‘fiscal year 2015, and estimated savings to 
be achieved for each of fiscal years 2015 through 
2024’’ and inserting ‘‘fiscal year 2014, and esti-
mated savings to be achieved, along with associated 
changes or reductions in budget, for each of fiscal 
years 2014 through 2024’’. 
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(g) ADDITIONAL REPORT REQUIREMENTS.—Section 
904(d) of such Act is amended— 
(1) in paragraph (1), by striking ‘‘180 days 
after the date of the enactment of this Act’’ and in-
serting ‘‘March 31, 2016’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (C), by striking ‘‘in-
cluding’’ and all that follows through the end of 
the subparagraph and inserting the following: 
‘‘and specific detailed information on how the 
changes, consolidations, or reductions were 
prioritized and resulted in functions no longer 
being performed, in the fiscal year covered by 
such report.’’; 
(B) in subparagraph (F), by striking ‘‘, in-
cluding’’ and all that follows through ‘‘manage-
ment review’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(H) A separate description of— 
‘‘(i) the management functions, pro-
grams, or offices that were eliminated and 
how each represents a redundant manage-
ment or oversight function; and 
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