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termined to be a cooperative by the Adminis-
trator, in accordance with applicable Federal 
and State laws and regulation. 
‘‘(B) 
AUTHORITY.—The 
Administration 
shall guarantee loans made to a cooperative for 
the purpose described in paragraph (15).’’. 
(2) DELEGATION
OF
AUTHORITY
TO
PRE-
FERRED
LENDERS.—Section 5(b)(7) of the Small 
Business Act (15 U.S.C. 634(b)(7)) is amended by 
inserting ‘‘, including loans guaranteed under para-
graph (15) or (35) of section 7(a)’’ after ‘‘deferred 
participation loans’’. 
(c) SMALL BUSINESS INVESTMENT COMPANY PRO-
GRAM OUTREACH.—The Administrator shall provide out-
reach and educational materials to companies licensed 
under section 301(c) of the Small Business Investment 
Act of 1958 (15 U.S.C. 681(c)) to increase the use of 
funds to make investments in company transitions to em-
ployee-owned business concerns. 
(d) SMALL BUSINESS MICROLOAN PROGRAM OUT-
REACH.—The Administrator shall provide outreach and 
educational materials to intermediaries under section 7(m) 
of the Small Business Act (15 U.S.C. 636(m)) to increase 
the use of funds to make loans to employee-owned busi-
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ness concerns, including transitions to employee-owned 
business concerns. 
(e) SMALL BUSINESS DEVELOPMENT CENTER OUT-
REACH AND ASSISTANCE.— 
(1) ESTABLISHMENT.—The Administrator shall 
establish a Small Business Employee Ownership and 
Cooperatives Promotion Program to offer technical 
assistance and training on the transition to employee 
ownership through cooperatives and qualified em-
ployee trusts. 
(2) SMALL
BUSINESS
DEVELOPMENT
CEN-
TERS.— 
(A) IN
GENERAL.—In carrying out the 
program established under subsection (a), the 
Administrator shall enter into agreements with 
small business development centers under which 
the centers shall— 
(i) provide access to information and 
resources on employee ownership through 
cooperatives or qualified employee trusts as 
a business succession strategy; 
(ii) conduct training and educational 
activities; and 
(iii) carry out the activities described 
in subparagraph (U) of section 21(c)(3) of 
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the Small Business Act (15 U.S.C. 
648(c)(3)). 
(B) 
ADDITIONAL
SERVICES.—Section 
21(c)(3) of the Small Business Act (15 U.S.C. 
648(c)(3)) is amended— 
(i) in subparagraph (S), by striking 
‘‘and’’ at the end; 
(ii) in subparagraph (T), by striking 
the period at the end and inserting ‘‘; 
and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(U) encouraging and assisting the provision of 
succession planning to small business concerns with 
a focus on transitioning to cooperatives, as defined 
in section 7(a)(35), and qualified employee trusts 
(collectively referred to in this subparagraph as ‘em-
ployee-owned business concerns’), including by— 
‘‘(i) providing training to individuals to 
promote the successful management, govern-
ance, or operation of a business purchased by 
those individuals in the formation of an em-
ployee-owned business concern; 
‘‘(ii) assisting employee-owned business 
concerns that meet applicable size standards es-
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tablished under section 3(a) with education and 
technical assistance with respect to financing 
and contracting programs administered by the 
Administration; 
‘‘(iii) coordinating with lenders on con-
ducting outreach on financing through pro-
grams administered by the Administration that 
may be used to support the transition of owner-
ship to employees; 
‘‘(iv) supporting small business concerns in 
exploring 
or 
assessing 
the 
possibility 
of 
transitioning to an employee-owned business 
concern; and 
‘‘(v) coordinating with the cooperative de-
velopment centers of the Department of Agri-
culture, the land grant extension network, the 
Manufacturing Extension Partnership, commu-
nity development financial institutions, em-
ployee ownership associations and service pro-
viders, and local, regional and national coopera-
tive associations.’’. 
(f) INTERAGENCY WORKING GROUP.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of enactment of this Act, the Administrator 
(or a designee of the Administrator) shall coordinate 
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and chair an interagency working group, which 
shall— 
(A) develop recommendations on how Fed-
eral programs can promote, support, and in-
crease the number of employee-owned business 
concerns; 
(B) ensure coordination with Federal agen-
cies and national and local employee ownership, 
cooperative, and small business organizations; 
and 
(C) publish a report on the activities of the 
interagency working group that is indexed and 
maintained for public review. 
(2) 
MEETINGS.—The 
interagency 
working 
group shall meet at such times as determined nec-
essary by the, but not less than biannually. Such 
meetings may occur in person or via electronic re-
sources. 
(g) AMENDMENT TO REPORT TO CONGRESS ON STA-
TUS OF EMPLOYEE-OWNED FIRMS.—Section 7(a)(15)(E) 
of the Small Business Act (15 U.S.C. 636(a)(15)(E)) is 
amended by striking ‘‘Administration.’’ and inserting ‘‘Ad-
ministration, which shall include— 
‘‘(i) the total number of loans made to 
employee-owned business concerns that 
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were guaranteed by the Administrator 
under section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)) or section 502 of 
the Small Business Investment Act of 
1958 (15 U.S.C. 696), including the num-
ber of loans made— 
‘‘(I) to small business concerns 
owned and controlled by socially and 
economically disadvantaged individ-
uals; and 
‘‘(II) to cooperatives; 
‘‘(ii) the total number of financings 
made to employee-owned business concerns 
by companies licensed under section 301(c) 
of the Small Business Investment Act of 
1958 (15 U.S.C. 696(c)), including the 
number of financings made— 
‘‘(I) to small business concerns 
owned and controlled by socially and 
economically disadvantaged individ-
uals; and 
‘‘(II) to cooperatives; and 
‘‘(iii) any outreach and educational 
activities conducted by the Administration 
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with respect to employee-owned business 
concerns.’’. 
(h) REPORT ON COOPERATIVE LENDING.— 
(1) SENSE OF CONGRESS.—It is the sense of 
Congress that cooperatives have a unique business 
structure and are unable to access the lending pro-
grams of the Administration effectively due to loan 
guarantee requirements that are incompatible with 
the business structure of cooperatives. 
(2) STUDY AND REPORT.— 
(A) STUDY.—The Administrator, in coordi-
nation with lenders, stakeholders, and Federal 
agencies, shall study and recommend practical 
alternatives for cooperatives that will satisfy the 
loan guarantee requirements of the Administra-
tion. 
(B) REPORT.—Not later than 120 days 
after the date of enactment of this Act, the Ad-
ministrator shall submit to Congress the rec-
ommendations developed under paragraph (1) 
and a plan to implement such recommenda-
tions. 
(i) AMENDMENT TO DEFINITION OF QUALIFIED EM-
PLOYEE TRUST.—Section 3(c)(2)(A)(ii) of the Small 
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Business Act (15 U.S.C. 632(c)(2)(A)(ii)) is amended to 
read as follows: 
‘‘(ii) which provides that each participant 
is entitled to direct the plan trustee as to the 
manner of how to vote the qualified employer 
securities (as defined in section 4975(e)(8) of 
the Internal Revenue Code of 1986), which are 
allocated to the account of such participant 
with respect to a corporate matter which (by 
law or charter) must be decided by a vote con-
ducted in accordance with section 409(e) of the 
Internal Revenue Code of 1986; and’’. 
SEC. 867. VETERAN ENTREPRENEURSHIP TRAINING. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Secretary of Defense should coordinate with 
the Administrator of the Small Business Administration 
to include relevant aspects of veterans assistance pro-
grams of the Small Business Administration in the Tran-
sition Assistance Program established under section 1144 
of title 10, United States Code. 
(b) BOOTS TO BUSINESS PROGRAM.—Section 32 of 
the Small Business Act (15 U.S.C. 657b) is amended— 
(1) by redesignating subsection (f) as sub-
section (g); and 
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(2) by inserting after subsection (e) the fol-
lowing new subsection: 
‘‘(f) BOOTS TO BUSINESS PROGRAM.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘covered individual’ means— 
‘‘(i) a member of the Armed Forces, 
including the National Guard or Reserves; 
‘‘(ii) an individual who is participating 
in the Transition Assistance Program es-
tablished under section 1144 of title 10, 
United States Code; 
‘‘(iii) an individual who— 
‘‘(I) served on active duty in any 
branch of the Armed Forces, includ-
ing the National Guard or Reserves; 
and 
‘‘(II) was discharged or released 
from such service under conditions 
other than dishonorable; and 
‘‘(iv) a spouse or dependent of an in-
dividual described in clause (i), (ii), or (iii); 
and 
‘‘(B) the term ‘Vet Center’ has the mean-
ing given in section 1712A(h) of title 38, 
United States Code. 
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‘‘(2) 
ESTABLISHMENT.—The 
Administrator 
shall carry out a program to be known as the ‘Boots 
to Business Program’ to provide entrepreneurship 
training to covered individuals. 
‘‘(3) GOALS.—The goals of the Boots to Busi-
ness Program are to— 
‘‘(A) provide assistance and in-depth train-
ing to covered individuals interested in business 
ownership; and 
‘‘(B) provide covered individuals with the 
tools, skills, and knowledge necessary to identify 
a business opportunity, draft a business plan, 
identify sources of capital, connect with local 
resources for small business concerns, and 
launch a small business concern. 
‘‘(4) PROGRAM COMPONENTS.— 
‘‘(A) IN GENERAL.—The Boots to Busi-
ness Program may include— 
‘‘(i) a presentation providing exposure 
to the considerations involved in self-em-
ployment and ownership of a small busi-
ness concern; 
‘‘(ii) an online, self-study course fo-
cused on the basic skills of entrepreneur-
ship, the language of business, and the 
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considerations involved in self-employment 
and ownership of a small business concern; 
‘‘(iii) an in-person classroom instruc-
tion component providing an introduction 
to the foundations of self employment and 
ownership of a small business concern; and 
‘‘(iv) 
in-depth 
training 
delivered 
through online instruction, including an 
online course that leads to the creation of 
a business plan. 
‘‘(B) 
COLLABORATION.—The 
Adminis-
trator may— 
‘‘(i) collaborate with public and pri-
vate entities to develop course curricula for 
the Boots to Business Program; and 
‘‘(ii) modify program components in 
coordination with entities participating in a 
Warriors in Transition program, as defined 
in section 738(e) of the National Defense 
Authorization Act for Fiscal Year 2013 
(10 U.S.C. 1071 note). 
‘‘(C) UTILIZATION
OF
RESOURCE
PART-
NERS.— 
‘‘(i) IN GENERAL.—The Administrator 
shall— 
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‘‘(I) ensure that Veteran Busi-
ness Outreach Centers regularly par-
ticipate, on a nationwide basis, in the 
Boots to Business Program; and 
‘‘(II) to the maximum extent 
practicable, use a variety of other re-
source partners and entities in admin-
istering the Boots to Business Pro-
gram. 
‘‘(ii) GRANT AUTHORITY.—In carrying 
out clause (i), the Administrator may make 
grants to Veteran Business Outreach Cen-
ters, other resource partners, or other enti-
ties to carry out components of the Boots 
to Business Program. 
‘‘(D) AVAILABILITY TO DEPARTMENT OF 
DEFENSE.—The 
Administrator 
shall 
make 
available to the Secretary of Defense informa-
tion regarding the Boots to Business Program, 
including all course materials created for the 
Boots to Business Program, for inclusion on 
the website of the Department of Defense relat-
ing to the Transition Assistance Program, in 
the Transition Assistance Program manual, and 
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in other relevant materials available for dis-
tribution from the Secretary of Defense. 
‘‘(E) AVAILABILITY
TO
VETERANS
AF-
FAIRS.—In consultation with the Secretary of 
Veterans Affairs, the Administrator shall make 
available outreach materials regarding the 
Boots to Business Program for distribution and 
display at local facilities of the Department of 
Veterans Affairs which shall, at a minimum— 
‘‘(i) describe the Boots to Business 
Program and the services provided; and 
‘‘(ii) include eligibility requirements 
for participating in the Boots to Business 
Program. 
‘‘(5) REVIEW.—The Inspector General of the 
Administration shall submit to the Committee on 
Small Business and Entrepreneurship of the Senate 
and the Committee on Small Business of the House 
of Representatives an annual report regarding the 
awarding of grants to entities under paragraph 
(4)(C). 
‘‘(6) REPORT.—Not later than 180 days after 
the date of enactment of this subsection and every 
year thereafter, the Administrator shall submit to 
the Committee on Small Business and Entrepre-
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neurship of the Senate and the Committee on Small 
Business of the House of Representatives a report 
on the performance and effectiveness of the Boots to 
Business Program, which may be included as part of 
another report submitted to such Committees by the 
Administrator, and which shall include— 
‘‘(A) the number of program participants 
using each component of the Boots to Business 
Program; 
‘‘(B) the completion rates for each compo-
nent of the Boots to Business Program; 
‘‘(C) to the extent possible— 
‘‘(i) the demographics of program par-
ticipants, to include gender, age, race, rela-
tionship to military, military occupational 
specialty, and years of service of program 
participants; 
‘‘(ii) the number of small business 
concerns formed or expanded with assist-
ance under the Boots to Business Pro-
gram; 
‘‘(iii) the gross receipts of small busi-
ness concerns receiving assistance under 
the Boots to Business Program; 
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‘‘(iv) the number of jobs created with 
assistance under the Boots to Business 
Program; 
‘‘(v) the number of referrals to other 
resources and programs of the Administra-
tion; 
‘‘(vi) the number of program partici-
pants receiving financial assistance under 
loan programs of the Administration; 
‘‘(vii) the type and dollar amount of 
financial assistance received by program 
participants under any loan program of the 
Administration; and 
‘‘(viii) results of participant satisfac-
tion surveys, including a summary of any 
comments received from program partici-
pants; 
‘‘(D) an evaluation of the effectiveness of 
the Boots to Business Program in each region 
of the Administration during the most recent 
fiscal year; 
‘‘(E) an assessment of additional perform-
ance outcome measures for the Boots to Busi-
ness Program, as identified by the Adminis-
trator; 
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‘‘(F) any recommendations of the Adminis-
trator for improvement of the Boots to Busi-
ness Program, which may include expansion of 
the types of individuals who are covered individ-
uals; 
‘‘(G) an explanation of how the Boots to 
Business Program has been integrated with 
other transition programs and related resources 
of the Administration and other Federal agen-
cies; and 
‘‘(H) any additional information the Ad-
ministrator determines necessary.’’. 
SEC. 868. IMPROVEMENT OF SMALL BUSINESS DEVELOP-
MENT CENTERS PROGRAM. 
(a) USE OF AUTHORIZED ENTREPRENEURIAL DE-
VELOPMENT PROGRAMS.—The Small Business Act (15 
U.S.C. 631 et seq.), as amended by this Act, is amended— 
(1) by redesignating section 48 as section 49; 
and 
(2) by inserting after section 47 the following 
new section: 
‘‘SEC. 48. USE OF AUTHORIZED ENTREPRENEURIAL DEVEL-
OPMENT PROGRAMS. 
‘‘(a) EXPANDED SUPPORT FOR ENTREPRENEURS.— 
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‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of law, the Administrator shall only deliver 
entrepreneurial development services, entrepreneurial 
education, support for the development and mainte-
nance of clusters, or business training through a 
program authorized under— 
‘‘(A) section 7(j), 7(m), 8(a), 8(b)(1), 21, 
22, 29, or 32 of this Act; or 
‘‘(B) sections 358 or 389 of the Small 
Business Investment Act of 1958. 
‘‘(2) EXCEPTION.—This section shall not apply 
to services provided to assist small business concerns 
owned by an Indian tribe (as such term is defined 
in section 8(a)(13)). 
‘‘(b) ANNUAL REPORT.—Beginning on the first De-
cember 1 after the date of the enactment of this sub-
section, the Administrator shall annually report to the 
Committee on Small Business of the House of Representa-
tives and the Committee on Small Business and Entrepre-
neurship of the Senate on all entrepreneurial development 
activities undertaken in the current fiscal year through a 
program described in subsection (a). Such report shall in-
clude— 
‘‘(1) a description and operating details for 
each program and activity; 
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‘‘(2) operating circulars, manuals, and standard 
operating procedures for each program and activity; 
‘‘(3) a description of the process used to award 
grants under each program and activity; 
‘‘(4) a list of all awardees, contractors, and ven-
dors (including organization name and location) and 
the amount of awards for the current fiscal year for 
each program and activity; 
‘‘(5) the amount of funding obligated for the 
current fiscal year for each program and activity; 
and 
‘‘(6) the names and titles for those individuals 
responsible for each program and activity.’’. 
(b) MARKETING OF SERVICES.—Section 21 of the 
Small Business Act (15 U.S.C. 648) is amended by adding 
at the end the following: 
‘‘(o) NO PROHIBITION OF MARKETING OF SERV-
ICES.—The Administrator shall not prohibit applicants re-
ceiving grants under this section from marketing and ad-
vertising their services to individuals and small business 
concerns.’’. 
(c) DATA COLLECTION.— 
(1) IN GENERAL.—Section 21(a)(3)(A) of the 
Small Business Act (15 U.S.C. 648(a)(3)(A)) is 
amended— 
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nizations and officials from the Small Business 
Administration, to carry out a study to deter-
mine the best way to capture data collection 
and create or revise existing systems dedicated 
to data collection. 
(B) REPORT.—Not later than the end of 
the 180-day period beginning on the date of the 
enactment of this Act, the Data Collection 
Working Group shall issue a report to the Com-
mittee on Small Business of the House of Rep-
resentatives and the Committee on Small Busi-
ness and Entrepreneurship of the Senate con-
taining the findings and determinations made 
in carrying out the study required under para-
graph (1), including— 
(i) recommendations for revising exist-
ing data collection practices; and 
(ii) a proposed plan for the Small 
Business Administration to implement 
such recommendations. 
(d) FEES FROM PRIVATE PARTNERSHIPS AND CO-
SPONSORSHIPS.—Section 21(a)(3) of the Small Business 
Act (15 U.S.C. 648(a)(3)(C)), as amended by subsection 
(c), is further amended by adding at the end the following: 
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‘‘(D) FEES FROM PRIVATE PARTNERSHIPS AND CO-
SPONSORSHIPS.—A small business development center 
that participates in a private partnership or cosponsorship 
with the Administration shall not be prohibited from col-
lecting fees or other income related to the operation of 
such a private partnership or cosponsorship.’’. 
(e) EQUITY FOR SMALL BUSINESS DEVELOPMENT 
CENTERS.—Subclause (I) of section 21(a)(4)(C)(v) of the 
Small Business Act (15 U.S.C. 648(a)(4)(C)(v)) is amend-
ed to read as follows: 
‘‘(I) 
IN
GENERAL.—Of 
the 
amounts made available in any fiscal 
year to carry out this section, not 
more than $600,000 may be used by 
the Administration to pay expenses 
enumerated in subparagraphs (B) 
through (D) of section 20(a)(1).’’. 
(f) 
CONFIDENTIALITY
REQUIREMENTS.—Section 
21(a)(7)(A) of the Small Business Act (15 U.S.C. 
648(a)(7)(A)) is amended by inserting after ‘‘under this 
section’’ the following: ‘‘to any State, local, or Federal 
agency, or to any third party’’. 
(g) LIMITATION ON AWARD OF GRANTS TO SMALL 
BUSINESS DEVELOPMENT CENTERS.— 
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(1) IN
GENERAL.—Section 21 of the Small 
Business Act (15 U.S.C. 648), as amended by sub-
section (c), is further amended— 
(A) in subsection (a)(1), by striking ‘‘any 
women’s business center operating pursuant to 
section 29,’’; and 
(B) by adding at the end the following: 
‘‘(q) LIMITATION ON AWARD OF GRANTS.—Except 
for not-for-profit institutions of higher education, and not-
withstanding any other provision of law, the Administrator 
may not award grants (including contracts and coopera-
tive agreements) under this section to any entity other 
than those that received grants (including contracts and 
cooperative agreements) under this section prior to the 
date of the enactment of this subsection, and that seek 
to renew such grants (including contracts and cooperative 
agreements) after such date.’’. 
(2) RULE
OF
CONSTRUCTION.—The amend-
ments made by this section may not be construed as 
prohibiting a women’s business center (as described 
under section 29 of the Small Business Act (15 
U.S.C. 656)) from receiving a subgrant from an en-
tity receiving a grant under section 21 of the Small 
Business Act (15 U.S.C. 648). 
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Subtitle F—Other Matters 
SEC. 871. ADDITIONAL REQUIREMENTS FOR NEGOTIATIONS 
FOR 
NONCOMMERCIAL 
COMPUTER 
SOFT-
WARE. 
Section 2322a of title 10, United States Code, is 
amended by adding at the end the following new sub-
sections: 
‘‘(c) RIGHTS TO NONCOMMERCIAL COMPUTER SOFT-
WARE.—As part of any negotiation for the acquisition of 
noncommercial computer software, the Secretary of De-
fense may not require a contractor to sell or otherwise re-
linquish to the Federal Government any rights to non-
commercial computer software developed exclusively at 
private expense, except for rights related to— 
‘‘(1) corrections or changes to such software or 
documentation related to such software furnished to 
the contractor by the Department of Defense; 
‘‘(2) such software or documentation related to 
such software that is otherwise publicly available or 
that has been released or disclosed by the contractor 
or subcontractor without restrictions on further use, 
release, or disclosure, other than a release or disclo-
sure resulting from the sale, transfer, or other as-
signment of interest in such software or documenta-
tion to another party. 
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‘‘(3) such software or documentation related to 
such software obtained with unlimited rights under 
another contract with the Federal Government or as 
a result of such a negotiation; or 
‘‘(4) such software or documentation related to 
such software furnished to the Department of De-
fense under a contract or subcontract that in-
cludes— 
‘‘(A) restricted rights in such software, 
limited rights in technical data, or government 
purpose rights, where such restricted rights, 
limited rights, or government purpose rights 
have expired; or 
‘‘(B) government purpose rights, where the 
contractor’s exclusive right to use such software 
or documentation for commercial purposes has 
expired. 
‘‘(d) CONSIDERATION OF SPECIALLY NEGOTIATED 
LICENSES.—The Secretary of Defense shall, to the max-
imum extent practicable, negotiate and enter into a con-
tract with a contractor for a specially negotiated license 
for noncommercial computer software or documentation 
related to such software necessary to support the product 
support strategy of a major weapon system or subsystem 
of a major weapon system.’’. 
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SEC. 872. REMOVAL OF REQUIREMENT FOR RISK AND SEN-
SITIVITY ANALYSIS OF BASELINE ESTIMATES 
IN SELECTED ACQUISITION REPORTS. 
Section 2432(c)(1)(B) of title 10, United States 
Code, is amended by striking ‘‘, along with the associated 
risk and sensitivity analysis of that estimate’’ each place 
it appears. 
SEC. 873. PROHIBITION ON ACQUISITION OF SENSITIVE MA-
TERIALS FROM NON-ALLIED FOREIGN NA-
TIONS. 
(a) IN GENERAL.—Subchapter V of chapter 148 of 
title 10, United States Code, is amended by inserting after 
section 2533b the following new section: 
‘‘§ 2533c. Prohibition on acquisition of sensitive mate-
rials from non-allied foreign nations 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(c), the Secretary of Defense may not— 
‘‘(1) procure any end item containing a covered 
material from any covered nation, except as provided 
by subsection (c); or 
‘‘(2) sell any covered material from the Na-
tional Defense Stockpile, if the National Defense 
Stockpile Manager determines that such a sale is not 
in the national interests of the United States, to— 
‘‘(A) any covered nation; or 
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‘‘(B) any third party that the Secretary 
reasonably believes is acting as a broker or 
agent for a covered nation or an entity in a cov-
ered nation. 
‘‘(b) EXTENSION.—Subsection (a) shall apply to 
prime contracts and subcontracts at any tier. 
‘‘(c) EXCEPTIONS.—Subsection (a) does not apply 
under the following circumstances: 
‘‘(1) If the Secretary of Defense determines 
that covered materials of satisfactory quality and 
quantity, in the required form, cannot be procured 
as and when needed. 
‘‘(2) To the procurement of an end item de-
scribed in subsection (a)(1) or the sale of any cov-
ered material described under subsection (a)(1) by 
the Secretary outside of the United States for use 
outside of the United States. 
‘‘(3) To the purchase by the Secretary of an 
end item containing a covered material that is— 
‘‘(A) a commercially available off-the-shelf 
item (as defined in section 104 of title 41); or 
‘‘(B) an electronic device, unless the Sec-
retary of Defense, upon the recommendation of 
the Strategic Materials Protection Board pursu-
ant to section 187 of this title, determines that 
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the domestic availability of a particular elec-
tronic device is critical to national security. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) COVERED MATERIAL.—The term ‘covered 
material’ means— 
‘‘(A) samarium-cobalt magnets; 
‘‘(B) neodymium-iron-boron magnets; 
‘‘(C) tungsten penetrators; and 
‘‘(D) tungsten or tungsten alloy spheres 
and cubes. 
‘‘(2) COVERED NATION.—The term ‘covered na-
tion’ means— 
‘‘(A) the Democratic People’s Republic of 
North Korea; 
‘‘(B) the People’s Republic of China; 
‘‘(C) the Russian Federation; and 
‘‘(D) the Islamic Republic of Iran. 
‘‘(3) END ITEM.—The term ‘end item’ has the 
meaning given in section 2533b(m) of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
at the beginning of such subchapter is amended by insert-
ing after the item relating to section 2533b the following 
item: 
‘‘2533c. Prohibition on acquisition of sensitive materials from non-allied foreign 
nations.’’. 
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SEC. 874. TRANSFER OR POSSESSION OF DEFENSE ITEMS 
FOR NATIONAL DEFENSE PURPOSES. 
(a) TRANSFER AND POSSESSION EXCEPTIONS.—Sec-
tion 922(o)(2) of title 18, United States Code, is amend-
ed— 
(1) in subparagraph (A), by striking ‘‘or by’’ 
and inserting ‘‘, by, or under the authority of’’; 
(2) by striking ‘‘or’’ at the end of subparagraph 
(A); 
(3) by striking the period at the end of sub-
paragraph (B) and inserting a semicolon; and 
(4) by inserting after subparagraph (B) the fol-
lowing new subparagraphs: 
‘‘(C) a transfer to, or possession by, a licensed 
manufacturer or licensed importer (if, with respect 
to a transfer, such transfer has been approved by 
the Attorney General in accordance with law) for 
purposes of— 
‘‘(i) joint production of a weapon, or inte-
gration or incorporation into another article or 
device; 
‘‘(ii) calibration, testing, or research and 
development; 
‘‘(iii) permanent or temporary export, or 
temporary import, otherwise in accordance with 
law; or 
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‘‘(iv) training of Federal, State, local, or 
foreign government personnel; 
‘‘(D) a transfer to, or possession by, a licensee 
for the purpose of repair and return of the same to 
a lawful possessor; or 
‘‘(E) notwithstanding subsection (g)(5)(B), pos-
session by foreign government personnel for official 
training purposes under the direct and continuous 
supervision of an authorized Federal, State, or local 
government official, or a licensee as described in 
subparagraph (C), provided that, upon completion of 
the training, such foreign government personnel 
shall relinquish possession of the same to such offi-
cial or licensee.’’. 
(b) IMPORTATION REQUIREMENTS.—Section 925(d) 
of such title is amended— 
(1) in paragraph (3)— 
(A) by inserting ‘‘except as provided in 
paragraph (5),’’ before ‘‘is of’’; and 
(B) by striking ‘‘or’’ at the end; 
(2) in paragraph (4), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by inserting after paragraph (4) the fol-
lowing new paragraph: 
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‘‘(5) is being imported or brought in by a li-
censed manufacturer or licensed importer in con-
formity with, and solely for a purpose described in 
subparagraph (A), (C), (D), or (E) of section 
922(o)(2).’’. 
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect 30 days after 
the date of the enactment of this Act. 
SEC. 875. EXPEDITED HIRING AUTHORITY FOR SHORTAGE 
CATEGORY POSITIONS IN THE ACQUISITION 
WORKFORCE. 
Section 1703(j) of title 41, United States Code, is 
amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘sections 3304, 5333, and 
5753 of title 5’’ and inserting ‘‘section 3304 of 
title 5’’; 
(B) by striking ‘‘authorities in those sec-
tions’’ and inserting ‘‘authority in such sec-
tion’’; and 
(C) by striking ‘‘certain Federal acquisi-
tion positions (as described in subsection 
(g)(1)(A))’’ and inserting ‘‘the Federal acquisi-
tion provisions described in paragraph (2)’’; and 
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(2) by redesignating paragraph (2) as para-
graph (3); 
(3) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) POSITIONS DESCRIBED.—The Federal ac-
quisition positions described in this paragraph are 
the following: 
‘‘(A) Any position listed in (g)(1)(A). 
‘‘(B) All positions in the General Schedule 
Realty series (GS–1170).’’; and 
(4) in paragraph (3) (as so redesignated), by 
striking ‘‘September 30, 2017’’ and inserting ‘‘Sep-
tember 30, 2021’’. 
SEC. 876. EXTENSION OF PROHIBITION ON PROVIDING 
FUNDS TO THE ENEMY. 
Section 841(n) of the Carl Levin and Howard P. 
‘‘Buck’’ McKeon National Defense Authorization Act for 
Fiscal Year 2015 (Public Law 113–291; 127 Stat. 3455; 
10 U.S.C. 2302 note) is amended by striking ‘‘December 
31, 2019’’ and inserting ‘‘December 31, 2021’’. 
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SEC. 877. REPEAL OF CERTAIN DETERMINATIONS RE-
QUIRED FOR GRANTS OF EXCEPTIONS TO 
COST OR PRICING DATA CERTIFICATION RE-
QUIREMENTS AND WAIVERS OF COST AC-
COUNTING STANDARDS. 
Section 817(b) of the Bob Stump National Defense 
Authorization Act for Fiscal Year 2003 (Public Law 107– 
314; 10 U.S.C. 2306a note) is amended— 
(1) by striking paragraph (1); and 
(2) by redesignating paragraphs (2) and (3) as 
paragraphs (1) and (2), respectively. 
SEC. 
878. 
REPORTING 
ON 
PROJECTS 
PERFORMED 
THROUGH TRANSACTIONS OTHER THAN CON-
TRACTS, COOPERATIVE AGREEMENTS, AND 
GRANTS. 
(a) REPORT REQUIRED.—Not later than December 
31, 2018, and each December 31 thereafter through De-
cember 31, 2021, the Secretary of Defense shall submit 
to the congressional defense committees a report covering 
the preceding fiscal year on projects described in sub-
section (b). 
(b) CONTENTS.—Each report under subsection (a) 
shall include— 
(1) for each project performed through a trans-
action (other than contracts, cooperative agreements, 
and grants) entered into pursuant to section 2371 or 
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2371b of title 10, United States Code, for which 
payments made by the Department of Defense ex-
ceeded $5,000,000 for such transaction— 
(A) an identification of the element of the 
Department of Defense and the person or entity 
outside of the Department of Defense entering 
into such transaction; 
(B) the date of entry into such transaction; 
(C) the amount of the payments made by 
the Department of Defense for such trans-
action; 
(D) the goals and status of each project 
carried out under such transaction; and 
(E) the start date and anticipated end date 
of each project carried out under such trans-
action; and 
(2) a description of the mechanisms, including 
any policies, guidance, and reporting requirements, 
established by the Secretary of Defense to regulate 
the use of authority relating to a transaction (other 
than contracts, cooperative agreements, and grants) 
entered into pursuant to section 2371 or 2371b of 
title 10, United States Code. 
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SEC. 879. STANDARDIZATION OF FORMATTING AND PUBLIC 
ACCESSIBILITY OF DEPARTMENT OF DE-
FENSE REPORTS TO CONGRESS. 
(a) BRIEFING REQUIRED.—Not later than March 1, 
2019, the Secretary of Defense shall provide a briefing 
to the Committee on Armed Services of the House of Rep-
resentatives on a plan to standardize the formatting and 
public accessibility of unclassified Department of Defense 
reports required by Congress. Such briefing shall include 
a description of the method— 
(1) for ensuring that reports are created in a 
platform-independent, machine-readable format that 
can be retrieved, downloaded, indexed, and searched 
by commonly used web search applications; and 
(2) for providing a publically accessible online 
repository of unclassified reports of the Department 
of Defense issued since January 1, 2010, including 
protocols for inclusion of unclassified reports that, 
as determined by the Secretary, may not be appro-
priate for public release in their entirety. 
(b) IMPLEMENTATION.—Such plan shall be imple-
mented not later than March 1, 2020. 
SEC. 880. DEFENDING UNITED STATES GOVERNMENT COM-
MUNICATIONS. 
(a) FINDINGS.—Congress makes the following find-
ings: 
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(1) In its 2011 ‘‘Annual Report to Congress on 
Military and Security Developments Involving the 
People’s Republic of China’’, the Department of De-
fense stated that, ‘‘China’s defense industry has ben-
efitted from integration with a rapidly expanding ci-
vilian economy and science and technology sector, 
particularly elements that have access to foreign 
technology. Progress within individual defense sec-
tors appears linked to the relative integration of 
each, through China’s civilian economy, into the 
global production and R&D chain . . . Information 
technology 
companies 
in 
particular, 
including 
Huawei, Datang, and Zhongxing, maintain close ties 
to the PLA.’’. 
(2) In a 2011 report titled ‘‘The National Secu-
rity Implications of Investments and Products from 
the People’s Republic of China in the Telecommuni-
cations Sector’’, the United States China Commis-
sion stated that ‘‘[n]ational security concerns have 
accompanied the dramatic growth of China’s telecom 
sector. . . . Additionally, large Chinese companies— 
particularly those ‘national champions’ prominent in 
China’s ‘going out’ strategy of overseas expansion— 
are directly subject to direction by the Chinese Com-
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munist Party, to include support for PRC state poli-
cies and goals.’’. 
(3) The Commission further stated in its report 
that ‘‘[f]rom this point of view, the clear economic 
benefits of foreign investment in the U.S. must be 
weighed against the potential security concerns re-
lated to infrastructure components coming under the 
control of foreign entities. This seems particularly 
applicable in the telecommunications industry, as 
Chinese companies continue systematically to ac-
quire significant holdings in prominent global and 
U.S. telecommunications and information technology 
companies.’’. 
(4) In its 2011 Annual Report to Congress, the 
United States China Commission stated that ‘‘[t]he 
extent of the state’s control of the Chinese economy 
is difficult to quantify . . . There is also a category 
of companies that, though claiming to be private, are 
subject to state influence. Such companies are often 
in new markets with no established SOE leaders and 
enjoy favorable government policies that support 
their development while posing obstacles to foreign 
competition. Examples include Chinese telecoms 
giant Huawei and such automotive companies as 
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battery maker BYD and vehicle manufacturers 
Geely and Chery.’’. 
(5) General Michael Hayden, who served as Di-
rector of the Central Intelligence Agency and Direc-
tor of the National Security Agency, stated in July 
2013 that Huawei had ‘‘shared with the Chinese 
state intimate and extensive knowledge of foreign 
telecommunications systems it is involved with.’’. 
(6) The Federal Bureau of Investigation, in a 
February 2015 Counterintelligence Strategy Part-
nership Intelligence Note stated that, ‘‘[w]ith the ex-
panded use of Huawei Technologies Inc. equipment 
and services in U.S. telecommunications service pro-
vider networks, the Chinese Government’s potential 
access to U.S. business communications is dramati-
cally increasing. Chinese Government-supported tele-
communications equipment on U.S. networks may be 
exploited through Chinese cyber activity, with Chi-
na’s intelligence services operating as an advanced 
persistent threat to U.S. networks.’’. 
(7) The Federal Bureau of Investigation fur-
ther stated in its February 2015 counterintelligence 
note that, ‘‘China makes no secret that its cyber 
warfare strategy is predicated on controlling global 
communications network infrastructure.’’. 
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(8) At a hearing before the Committee on 
Armed Services of the House of Representatives on 
September 30, 2015, Deputy Secretary of Defense 
Robert Work, responding to a question about the 
use of Huawei telecommunications equipment, stat-
ed, ‘‘In the Office of the Secretary of Defense, abso-
lutely not. And I know of no other—I don’t believe 
we operate in the Pentagon, any [Huawei] systems 
in the Pentagon.’’. 
(9) At such hearing, the Commander of the 
United States Cyber Command, Admiral Mike Rog-
ers, responding to a question about why such 
Huawei telecommunications equipment is not used, 
stated, ‘‘as we look at supply chain and we look at 
potential vulnerabilities within the system, that it is 
a risk we felt was unacceptable.’’. 
(10) In March 2017, ZTE Corporation pled 
guilty to conspiring to violate the International 
Emergency Economic Powers Act by illegally ship-
ping United States-origin items to Iran, paying the 
United 
States 
Government 
a 
penalty 
of 
$892,360,064 dollars for activity between January 
2010 and January 2016. 
(11) The Treasury Department’s Office of For-
eign Assets Control issued a subpoena to Huawei as 
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part of a Federal investigation of alleged violations 
of trade restrictions on Cuba, Iran, Sudan, and 
Syria. 
(12) In the bipartisan Permanent Select Com-
mittee on Intelligence of the House of Representa-
tives ‘‘Investigative Report on the United States Na-
tional Security Issues Posed by Chinese Tele-
communication Companies Huawei and ZTE’’ re-
leased in 2012, it was recommended that ‘‘U.S. gov-
ernment systems, particularly sensitive systems, 
should not include Huawei or ZTE equipment, in-
cluding in component parts. Similarly, government 
contractors—particularly those working on contracts 
for sensitive U.S. programs—should exclude ZTE or 
Huawei equipment in their systems.’’. 
(13) Christopher Wray, who serves as Director 
of the Federal Bureau of Investigation, stated in 
February 2018 during a hearing of the Select Com-
mittee on Intelligence of the Senate that he was 
‘‘deeply concerned about the risks of allowing any 
company or entity that is beholden to foreign gov-
ernments that don’t share our values to gain posi-
tions of power inside our telecommunications net-
works. That provides the capacity to exert pressure 
or control over our telecommunications infrastruc-
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ture. It provides the capacity to maliciously modify 
or steal information. And it provides the capacity to 
conduct undetected espionage.’’ Admiral Mike Rog-
ers, who served as Director of the National Security 
Agency, agreed with Director Wray’s characteriza-
tion, and added that Government programs need ‘‘to 
look long and hard at companies like this’’. 
(14) Director of National Intelligence Dan 
Coats, Federal Bureau of Investigation Director 
Christopher Wray, Director of the Defense Intel-
ligence Agency General Robert Ashley, Director of 
the National Geospatial-Intelligence Agency Robert 
Cardillo, Director of the National Security Agency 
Admiral Michael Rogers, and Director of the Central 
Intelligence Agency Michael Pompeo all indicated by 
show of hands in February 2018 at a hearing of the 
Select Committee on Intelligence of the Senate that 
they would not ‘‘use products or services from 
Huawei or ZTE’’. 
(15) General Paul Nakasone, who served as the 
Commanding General of United States Army Cyber 
Command, stated during his confirmation hearing to 
be National Security Agency director in March 2018 
before the Select Committee on Intelligence of the 
Senate that he ‘‘would not’’ use any Huawei, China 
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Unicom, or China Telecom products nor would he 
recommend his family do so. 
(b) PROHIBITION
ON
CERTAIN
TELECOMMUNI-
CATIONS OR VIDEO SURVEILLANCE SERVICES OR EQUIP-
MENT.— 
(1) PROHIBITION
ON
AGENCY
USE
OR
PRO-
CUREMENT.—Except as provided in paragraph (3), 
beginning not later than January 1, 2021, the head 
of an agency may not procure or obtain, may not ex-
tend or renew a contract to procure or obtain, and 
may not enter into a contract (or extend or renew 
a contract) with an entity that uses any equipment, 
system, or service that uses covered telecommuni-
cations or video surveillance equipment or services as 
a substantial or essential component of any system, 
or as critical technology as part of any system. The 
prohibitions described in this paragraph include the 
obligation or expenditure of loans or grant funds to 
procure or obtain, extend or renew a contract to pro-
cure or obtain, or enter into a contract (or extend 
or renew a contract) to procure or obtain covered 
telecommunications equipment or services. 
(2) IMPLEMENTATION
PLAN.—By not later 
than 180 days after the date of the enactment of 
this Act, each agency shall develop a plan to imple-
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ment paragraph (1) throughout the agency’s supply 
chain and shall submit such plan to the appropriate 
congressional committees. Each such plan shall be 
submitted in unclassified form, but may contain a 
classified annex. The plan for an agency shall in-
clude, but not be limited to, how the agency plans 
to deal with the impact of white label technology on 
its supply chain whereby the original manufacturer 
of technology is not readily apparent to a purchaser 
or user. 
(3) WAIVER.—The head of an agency may, on 
a one time basis, waive the requirement under para-
graph (1) with respect to an entity that requests 
such a waiver. Such a waiver may be provided for 
a period of not more than two years if the entity 
seeking the waiver— 
(A) can demonstrate a compelling justifica-
tion for additional time to implement such 
paragraph; 
(B) submits to the head of the agency, who 
then submits to the appropriate congressional 
committees within 30 days, a full and complete 
laydown of the presence of covered tele-
communications or video surveillance equipment 
or services in the entity’s supply chain and a 
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phase-out plan to eliminate such covered tele-
communications or video surveillance equipment 
or services from its systems; 
(C) does not permit real-time access to its 
networks to an entity located or substantially 
located in a covered foreign country; and 
(D) provides a written guarantee to the 
head of the agency that it will not procure such 
covered telecommunications or video surveil-
lance equipment or services again. 
(4) COVERED COMPONENTS.—With respect to a 
covered component of an entity for which such entity 
reasonably believes will not need to be replaced dur-
ing the 5-year period beginning on the date of the 
enactment of this Act, such entity shall provide a 
written assurance to the head of the agency for 
which such covered component is in use that such 
entity shall replace such covered component, at the 
end of such covered component’s reasonable lifecycle, 
with a comparable component that is manufactured 
by a person other than Huawei Technologies Com-
pany, 
Hytera 
Communications 
Corporation, 
Hangzhou Hikvision Digital Technology Company, 
Dahua Technology Company, or ZTE Corporation 
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(or any subsidiary, successor entity, or affiliate of 
such entities). 
(5) DEFINITIONS.—In this section: 
(A) The term ‘‘appropriate congressional 
committees’’ means the Committees on Armed 
Services of the Senate and House of Represent-
atives, the Permanent Select Committee on In-
telligence of the House of Representatives, the 
Select Committee on Intelligence of the Senate, 
the Committee on Oversight and Government 
Reform of the House of Representatives, and 
the Committee on Homeland Security and Gov-
ernmental Affairs of the Senate. 
(B) The term ‘‘agency’’ has the meaning 
given that term in section 551 of title 5, United 
States Code. 
(C) The term ‘‘covered foreign country’’ 
means the People’s Republic of China. 
(D) The term ‘‘covered telecommunications 
or video surveillance equipment or services’’ 
means any of the following: 
(i) Telecommunications or video sur-
veillance equipment produced by Huawei 
Technologies Company, Hytera Commu-
nications Corporation, Hangzhou Hikvision 
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Digital Technology Company, Dahua Tech-
nology Company, or ZTE Corporation (or 
any subsidiary, successor entity, or affiliate 
of such entities). 
(ii) Telecommunications or video sur-
veillance services provided by such entities 
or using such equipment. 
(iii) Telecommunications or video sur-
veillance equipment or services produced or 
provided by an entity that the head of the 
relevant agency reasonably believes to be 
an entity owned or controlled by, or other-
wise connected to, the government of a 
covered foreign country. 
(E) The term ‘‘covered component’’ means 
any component that— 
(i) is part of any equipment, system, 
or service that uses covered telecommuni-
cations or video surveillance equipment or 
services; 
(ii) is produced by Huawei Tech-
nologies Company, Hytera Communica-
tions Corporation, Hangzhou Hikvision 
Digital Technology Company, Dahua Tech-
nology Company, or ZTE Corporation (or 
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any subsidiary, successor entity, or affiliate 
of such entities); and 
(iii) cannot route or redirect data 
traffic or visibility into any data or packets 
such equipment, system, or service trans-
mits or manipulates. 
(c) REPORT.— 
(1) IN GENERAL.—The Director of National In-
telligence, in coordination with the Director of the 
Federal Bureau of Investigation and the Secretaries 
of State, Homeland Security, and Defense, shall de-
velop a report outlining the national security risks of 
use of Huawei, Hytera, Hikvision, Dahua, and ZTE 
technology, especially as it relates to evidence of ma-
licious software or hardware that enables unauthor-
ized network access or control and the type and level 
of risk, and a plan to share such report, based on 
appropriate access to classified information, with 
U.S. allies, partners, and U.S. cleared defense con-
tractors and telecommunications services providers. 
(2) UNCLASSIFIED
VERSION.—In addition to 
the classified report required by paragraph (1), an 
unclassified version of the report shall be made 
available for U.S. allies and partners as well as im-
pacted telecommunication companies State and local 
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governments that do not have access to classified in-
formation. 
(3) DEADLINE.—The reports required by para-
graph (1) and paragraph (2) of this subsection shall 
be submitted to the appropriate congressional com-
mittees (as defined in subsection (b)(4) of this sec-
tion) not later than 180 days after the date of the 
enactment of this Act. 
SEC. 881. PROMOTION OF THE USE OF GOVERNMENT-WIDE 
AND OTHER INTERAGENCY CONTRACTS. 
Section 865(b)(1) of the Duncan Hunter National 
Defense Authorization Act for Fiscal Year 2009 (Public 
Law 110-417; 31 U.S.C. 1535 note) is amended— 
(1) by striking ‘‘that all interagency acquisi-
tions—’’ and inserting ‘‘that—’’; 
(2) in subparagraph (A)— 
(A) by inserting ‘‘all interagency assisted 
acquisitions’’ before ‘‘include’’; and 
(B) by inserting ‘‘and’’ after the semicolon; 
(3) by striking subparagraph (B); and 
(4) by redesignating subparagraph (C) as sub-
paragraph (B), and in that subparagraph by insert-
ing ‘‘all interagency assisted acquisitions’’ before 
‘‘include’’. 
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SEC. 882. INCREASING COMPETITION AT THE TASK ORDER 
LEVEL. 
Section 3306(c) of title 41, United States Code, is 
amended— 
(1) in paragraph (1), by inserting ‘‘except as 
provided in paragraph (3),’’ in subparagraphs (B) 
and (C) after the subparagraph designation; and 
(2) by adding at the end the following new 
paragraphs: 
‘‘(3) EXCEPTIONS
FOR
CERTAIN
INDEFINITE 
DELIVERY, INDEFINITE QUANTITY MULTIPLE-AWARD 
CONTRACTS AND CERTAIN FEDERAL SUPPLY SCHED-
ULE CONTRACTS FOR SERVICES ACQUIRED ON AN 
HOURLY RATE.—If an executive agency issues a so-
licitation for one or more contracts for services to be 
acquired on an hourly rate basis under the authority 
of sections 4103 and 4106 of this title or section 
152(3) of this title and section 501(b) of title 40 
and the executive agency intends to make a contract 
award to each qualifying offeror and the contract or 
contracts will feature individually competed task or 
delivery orders based on hourly rates— 
‘‘(A) the contracting officer need not con-
sider price as an evaluation factor for contract 
award; and 
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‘‘(B) if, pursuant to subparagraph (A), 
price is not considered as an evaluation factor 
for contract award— 
‘‘(i) the disclosure requirement of sub-
paragraph (C) of paragraph (1) shall not 
apply; and 
‘‘(ii) cost or price to the Federal Gov-
ernment shall be considered in conjunction 
with the issuance pursuant to sections 
4106(c) and 152(3) of this title of any 
task or delivery order under any contract 
resulting from the solicitation. 
‘‘(4) DEFINITION.—In paragraph (3), the term 
‘qualifying offeror’ means an offeror that— 
‘‘(A) is determined to be a responsible 
source; 
‘‘(B) submits a proposal that conforms to 
the requirements of the solicitation; 
‘‘(C) meets all technical requirements; and 
‘‘(D) is otherwise eligible for award.’’. 
SEC. 883. INDIVIDUAL ACQUISITION FOR COMMERCIAL 
LEASING SERVICES. 
(a) IN GENERAL.—For the purpose of section 863 
of Public Law 110–417, an individual acquisition for com-
mercial leasing services shall not be construed as a pur-
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chase of property or services if such individual acquisition 
is made on a no cost basis and pursuant to a multiple 
award contract awarded in accordance with requirements 
for full and open competition. 
(b) AUDIT.—The Comptroller General of the United 
States shall— 
(1) conduct biennial audits of the General Serv-
ices Administration National Broker Contract to de-
termine— 
(A) whether brokers selected under the 
program provide lower lease rental rates than 
rates negotiated by General Services Adminis-
tration staff; and 
(B) the impact of the program on the 
length of time of lease procurements; 
(2) conduct a review of whether the application 
of section 863 of Public Law 110–417 to acquisi-
tions for commercial leasing services resulted in 
rental cost savings for the Government during the 
years in which such section was applicable prior to 
the date of enactment of this section; and 
(3) not later than September 30, 2019, and 
September 30, 2021, submit to the Committee on 
Transportation and Infrastructure of the House of 
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Representatives and the Committee on Environment 
and Public Works of the Senate a report that— 
(A) summarizes the results of the audit 
and review required by paragraphs (1) and (2); 
(B) includes an assessment of whether the 
National Broker Contract provides greater effi-
ciencies and savings than the use of General 
Services Administration staff; and 
(C) includes recommendations for improv-
ing General Services Administration lease pro-
curements. 
(c) TERMINATION.—This section shall terminate on 
December 31, 2022. 
SEC. 884. PROCUREMENT ADMINISTRATIVE LEAD TIME 
DEFINITION AND PLAN. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Administrator for 
Federal Procurement Policy shall develop, make available 
for public comment, and finalize— 
(1) a definition of the term ‘‘Procurement ad-
ministrative lead time’’ or ‘‘PALT’’, to be applied 
Government-wide, that describes the amount of time 
from the date on which a solicitation for a contract 
or task order is issued to the date of an initial 
award of the contract or task order; and 
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(2) a plan for measuring and publicly reporting 
data on PALT for Federal Government contracts 
and task orders in amounts greater than the sim-
plified acquisition threshold. 
(b) REQUIREMENT
FOR DEFINITION.—Unless the 
Administrator determines otherwise, the amount of time 
in the definition of PALT developed under subsection (a) 
shall— 
(1) begin on the date on which an initial solici-
tation is issued by a Federal department or agency 
for a contract or task order; and 
(2) end on the date of the award of the contract 
or task order. 
(c) COORDINATION.—In developing the definition of 
PALT, the Administrator shall coordinate with— 
(1) the senior procurement executives of Fed-
eral agencies; 
(2) the Secretary of Defense; and 
(3) the Administrator of the General Services 
Administration on modifying the existing data sys-
tem of the Federal Government to determine the 
date on which the initial solicitation is issued. 
(d) USE OF EXISTING PROCUREMENT DATA SYS-
TEM.—In developing the plan for measuring and publicly 
reporting data on PALT required by subsection (a), the 
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Administrator shall, to the maximum extent practicable, 
rely on the information contained in the Federal procure-
ment data system established pursuant to section 
1122(a)(4) of title 41, United States Code, including any 
modifications to that system. 
SEC. 885. REPORT ON FUNDING OF PRODUCT SUPPORT 
STRATEGIES. 
(a) REPORT REQUIRED.—For each of the fiscal years 
2020, 2021, and 2022, the Secretary of Defense shall in-
clude with the budget for the Department of Defense, as 
submitted to Congress pursuant to section 1105 of title 
31, United States Code, a report regarding the funding 
for product support strategies for major weapon systems. 
The Secretary may submit this report separately, or as 
part of the annex required by section 347 of the National 
Defense Authorization Act for Fiscal Year 2018 (Public 
Law 115–91). 
(b) CONTENTS.—The report shall include for each 
major weapon system— 
(1) a current estimate of the total funding re-
quired for the product support strategy for the 
lifecycle of the weapon system; 
(2) a current estimate of the funding required 
for the product support strategy per year, by appro-
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priation and budget activity, over the future years 
defense program for the weapon system; 
(3) a summary of the funding requested for the 
product support strategy in the future years defense 
program per year, by appropriation and budget ac-
tivity, for the weapon system; 
(4) should the amounts required pursuant to 
paragraph (2) differ from the amounts requested 
pursuant to paragraph (3) by more than 5 percent, 
an explanation for the variance and a description of 
the actions that will be taken to mitigate the risk to 
the sustainment of the weapon system; 
(5) a summary of the amounts expended, by ap-
propriation and budget activity, for the product sup-
port strategy of the weapon system during the prior 
fiscal year; and 
(6) should the amounts expended in the prior 
fiscal year pursuant to paragraph (5) differ from the 
amounts required for that fiscal year, pursuant to 
paragraph (2) by more than 5 percent, an expla-
nation for the variance and a description of the ac-
tions that will be taken to mitigate the risk to the 
sustainment of the weapon system. 
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SEC. 886. USE OF LOWEST PRICE TECHNICALLY ACCEPT-
ABLE SOURCE SELECTION PROCESS. 
(a) STATEMENT OF POLICY.—It shall be the policy 
of the United States Government to avoid using lowest 
price technically acceptable source selection criteria in cir-
cumstances that would deny the Government the benefits 
of cost and technical tradeoffs in the source selection proc-
ess. 
(b) REVISION OF FEDERAL ACQUISITION REGULA-
TION.—Not later than 120 days after the date of the en-
actment of this Act, the Federal Acquisition Regulation 
shall be revised to require that, for solicitations issued on 
or after the date that is 120 days after the date of the 
enactment of this Act, lowest price technically acceptable 
source selection criteria are used only in situations in 
which— 
(1) an executive agency is able to comprehen-
sively and clearly describe the minimum require-
ments expressed in terms of performance objectives, 
measures, and standards that will be used to deter-
mine acceptability of offers; 
(2) the executive agency would realize no, or 
minimal, value from a contract proposal exceeding 
the minimum technical or performance requirements 
set forth in the request for proposal; 
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(3) the proposed technical approaches will re-
quire no, or minimal, subjective judgment by the 
source selection authority as to the desirability of 
one offeror’s proposal versus a competing proposal; 
(4) the source selection authority has a high de-
gree of confidence that a review of technical pro-
posals of offerors other than the lowest bidder would 
not result in the identification of factors that could 
provide value or benefit to the executive agency; 
(5) the contracting officer has included a jus-
tification for the use of a lowest price technically ac-
ceptable evaluation methodology in the contract file; 
and 
(6) the executive agency has determined that 
the lowest price reflects full life-cycle costs, including 
for operations and support. 
(c) AVOIDANCE OF USE OF LOWEST PRICE TECH-
NICALLY ACCEPTABLE SOURCE SELECTION CRITERIA IN 
CERTAIN
PROCUREMENTS.—To the maximum extent 
practicable, the use of lowest price technically acceptable 
source selection criteria shall be avoided in the case of a 
procurement that is predominately for the acquisition of— 
(1) information technology services, cybersecu-
rity services, systems engineering and technical as-
sistance services, advanced electronic testing, audit 
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or audit readiness services, or other knowledge-based 
professional services; 
(2) personal protective equipment; or 
(3) knowledge-based training or logistics serv-
ices in contingency operations or other operations 
outside the United States, including in Afghanistan 
or Iraq. 
(d) REPORTING.—Not later than one year after the 
date of the enactment of this Act, and annually thereafter 
for three years, the Comptroller General of the United 
States shall submit to the appropriate congressional com-
mittees a report on the number of instances in which low-
est price technically acceptable source selection criteria is 
used for a contract exceeding $2,000,000, including an ex-
planation of how the situations listed in subsection (b) 
were considered in making a determination to use lowest 
price technically acceptable source selection criteria. 
(e) DEFINITIONS.—In this section: 
(1) EXECUTIVE AGENCY.—The term ‘‘executive 
agency’’ has the meaning given that term in section 
102 of title 40, United States Code, except that the 
term does not include the Department of Defense. 
(2) 
CONTINGENCY
OPERATION.—The 
term 
‘‘contingency operation’’ has the meaning given that 
term in section 101 of title 10, United States Code. 
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(3) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committee on Oversight and 
Government Reform of the House of Representatives 
and the Committee on Homeland Security and Gov-
ernmental Affairs of the Senate. 
SEC. 887. SENSE OF CONGRESS REGARDING STEEL PRO-
DUCED IN THE UNITED STATES. 
(a) FINDINGS.—Congress finds the following: 
(1) Frequent surges in unfairly trade steel im-
ports have materially injured the iron ore and steel 
industries in the United States, putting our national, 
economic, and energy security at risk. 
(2) High-quality American steel products are 
vital to the success of the United States military and 
are used in a variety of applications from aircraft 
carriers to armor plate for tanks as well as critical 
energy infrastructure like the electrical grid and en-
ergy pipelines. 
(3) Domestic producers of defense-related steel 
products are dependent on the overall financial 
health of the iron ore and steel industries in the 
United States. 
(4) The loss of a strong domestic iron ore and 
steel industry would make the United States dan-
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gerously dependent upon foreign sources of steel, 
such as China. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that a strong domestic iron ore and steel industry 
is vital to the national security of the United States. 
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—Organization and Man-
agement of the Department of 
Defense Generally 
SEC. 901. AUTHORITY OF SECRETARY OF DEFENSE TO DE-
TERMINE COMMAND AND CONTROL RELA-
TIONSHIPS. 
Section 113 of title 10, United States Code, is 
amended by inserting after subsection (k) the following: 
‘‘(l) COMMAND
AND CONTROL AUTHORITY.—The 
Secretary of Defense shall have the authority to determine 
command and control relationships within the military de-
partments, Defense Agencies, and other organizations and 
elements of the Department of Defense, including the 
United States Fleet Forces Command and the United 
States Transportation Command, as necessary to fulfill 
the responsibilities of the Secretary under this title.’’. 
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SEC. 902. CIVILIAN PERSONNEL MANAGEMENT. 
Section 129 of title 10, United States Code, is 
amended— 
(1) in subsection (a), by striking ‘‘Any con-
straint or limitation in terms of man years, end 
strength, full-time equivalent positions, or maximum 
number of employees shall be developed on the basis 
of those factors and shall be subject to adjustment 
solely for reasons of changed circumstances.’’ and 
inserting ‘‘The cost of the civilian workforce as pre-
scribed by Department of Defense Instruction 
7041.04, issued in 2013 or any successor guidance, 
shall be compared to the costs of the military and 
contract workforces, consistent with the require-
ments of section 129a, 2461, and 2463 of this 
title.’’; and 
(2) in subsection (c)(2)— 
(A) in each of subparagraphs (A) and (B), 
by inserting ‘‘and associated costs’’ after ‘‘pro-
jected size’’; and 
(B) in subparagraph (B), by striking ‘‘that 
have been taken to identify offsetting reductions 
and avoid unnecessary overall growth in the size 
of the civilian workforce’’ and inserting ‘‘to re-
duce the overall costs of the total force of mili-
tary, civilian, and contract workforces con-
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sistent with sections 129a, 2461, and 2463 of 
this title’’. 
SEC. 903. PERFORMANCE OF CIVILIAN FUNCTIONS BY MILI-
TARY PERSONNEL. 
Section 129a(g)(1) of title 10, United States Code, 
is amended— 
(1) in subparagraph (A), by striking ‘‘or re-
quired by a mission’’ and inserting ‘‘pursuant to De-
partment of Defense Instruction 7041.04, issued on 
July 3, 2013, or any successor guidance, and when 
required by a mission within the military occupa-
tional specialty for which the military personnel have 
been trained’’; and 
(2) in subparagraph (B), by inserting ‘‘, and 
only if the functions to be performed by military per-
sonnel are consistent with the training requirements 
for the military occupational specialty for which such 
personnel have been trained’’ before the period at 
the end. 
SEC. 904. ROLES OF UNDER SECRETARY OF DEFENSE FOR 
POLICY AND UNDER SECRETARY OF DE-
FENSE FOR INTELLIGENCE. 
(a) UNDER SECRETARY OF DEFENSE FOR POLICY.— 
Section 134(b) of title 10, United States Code, is amend-
ed— 
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(1) by redesignating paragraphs (3) and (4) as 
paragraphs (4) and (5), respectively; 
(2) by inserting after paragraph (2) the fol-
lowing new paragraph (3): 
‘‘(3) Subject to the authority, direction, and control 
of the Secretary of Defense, the Under Secretary shall be 
responsible and have the overall direction and supervision 
for— 
‘‘(A) the development, implementation, and in-
tegration across the Department of Defense of the 
National Defense Strategy and strategic policy guid-
ance for the activities of the Department of Defense 
across all geographic regions and military functions 
and domains; and 
‘‘(B) the integration of the activities of the De-
partment of Defense into the National Security 
Strategy of the United States.’’; and 
(3) in paragraph (4), as redesignated by para-
graph (1) of this subsection, by inserting ‘‘policy 
making’’ before ‘‘activities’’. 
(b) UNDER SECRETARY OF DEFENSE FOR INTEL-
LIGENCE.—Section 137(b) of title 10, United States Code, 
as amended by section 1621, is further amended— 
(1) in paragraph (3), by striking ‘‘; and’’ and 
inserting a semicolon; 
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(2) by redesignating paragraph (4) as para-
graph (5); and 
(3) by inserting after paragraph (3) the fol-
lowing new paragraph (4): 
‘‘(4) have responsibility for supervising and di-
recting, and overseeing Department of Defense ac-
tivities, other than policy making activities, with re-
spect to technology protection relating to export con-
trols; and’’. 
SEC. 905. DESIGNATION OF NAVY COMMANDERS. 
Section 5013 of title 10, United States Code, is 
amended by adding at the end the following new sub-
sections: 
‘‘(h) The Secretary of the Navy shall designate a sin-
gle commander within the Department of the Navy who 
shall serve as the official with principal responsibility in 
such Department for ensuring that forces of the Navy are 
available for tasking and deployment, including forces that 
may be operating from a forward deployed location. 
‘‘(i) The Secretary of the Navy shall designate a sin-
gle commander within the Department of the Navy who 
shall serve as the official with principal responsibility in 
such Department for the oversight and management of the 
shipyards of the Navy, including shipyards outside the 
United States.’’. 
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Subtitle 
B—Comprehensive 
Pen-
tagon Bureaucracy Reform and 
Reduction 
SEC. 911. AUTHORITIES AND RESPONSIBILITIES OF THE 
CHIEF MANAGEMENT OFFICER OF THE DE-
PARTMENT OF DEFENSE. 
(a) AUTHORITIES AND RESPONSIBILITIES.— 
(1) IN GENERAL.—Section 132a(b) of title 10, 
United States Code, is amended— 
(A) by amending paragraph (3) to read as 
follows: 
‘‘(3) Exercising authority, direction, and control 
over the Defense Agencies and Department of De-
fense Field Activities with respect to the covered ac-
tivities.’’; and 
(B) by adding at the end the following: 
‘‘(7) Serving as the official with principal re-
sponsibility in the Department for minimizing the 
duplication of efforts and maximizing efficiency and 
effectiveness among all organizations and elements 
of the Department (other than the military depart-
ments) with respect to the covered activities.’’. 
(2) BUDGET AUTHORITY.—Section 132a of title 
10, United States Code (as amended by paragraph 
(1)) is further amended— 
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(A) by redesignating subsections (c) and 
(d) as subsections (d) and (e) respectively; and 
(B) by inserting after subsection (b) the 
following: 
‘‘(c) BUDGET AUTHORITY.— 
‘‘(1)(A) The Secretary of Defense, acting 
through the Under Secretary of Defense (Comp-
troller), shall require the head of each Defense 
Agency and Department of Defense Field Activity to 
transmit the proposed budget for the covered activi-
ties of such Agency or Activity for a fiscal year and 
for the period covered by the future-years defense 
program submitted to Congress under section 221 of 
this title for that fiscal year to the Chief Manage-
ment Officer for review under subparagraph (B) be-
fore submitting the proposed budget to the Under 
Secretary of Defense (Comptroller). 
‘‘(B) The Chief Management Officer shall re-
view each proposed budget transmitted under sub-
paragraph (A) and, not later than January 31 of the 
year preceding the fiscal year for which the budget 
is proposed, shall submit to the Secretary of Defense 
a report containing the comments of the Chief Man-
agement Officer with respect to all such proposed 
budgets, together with the certification of the Chief 
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Management Officer regarding whether each pro-
posed budget achieves an adequate level of efficiency 
and effectiveness with respect to the covered activi-
ties. 
‘‘(C) Not later than March 31 of each year, the 
Secretary of Defense shall submit to Congress a re-
port that includes the following: 
‘‘(i) Each proposed budget for the covered 
activities of a Defense Agency or a Department 
of Defense Field Activity that was transmitted 
to the Chief Management Officer under sub-
paragraph (A). 
‘‘(ii) Identification of each proposed budget 
contained in the most-recent report submitted 
under subparagraph (B) that the Chief Man-
agement Officer did not certify as achieving an 
adequate level of efficiency and effectiveness 
with respect to the covered activities. 
‘‘(iii) A discussion of the actions that the 
Secretary proposes to take, together with any 
recommended legislation that the Secretary con-
siders appropriate, to address the inadequate 
levels of efficiency and effectiveness achieved by 
the proposed budgets identified in the report. 
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‘‘(iv) Any additional comments that the 
Secretary considers appropriate regarding the 
inadequate levels of efficiency and effectiveness 
achieved by the proposed budgets. 
‘‘(2) None of the funds authorized to be appro-
priated or otherwise made available for any fiscal 
year for the covered activities of a Defense Agency 
or a Department of Defense Field Activity may be 
obligated or expended unless— 
‘‘(A) the head of the Agency or Activity 
submits to the Chief Management Officer a 
plan for the obligation and expenditure of such 
funds; and 
‘‘(B) the Chief Management Officer ap-
proves the plan. 
‘‘(3) Nothing in this subsection shall be con-
strued to modify or interfere with the budget-related 
responsibilities of the Director of National Intel-
ligence.’’. 
(3) COVERED
ACTIVITIES
DEFINED.—Section 
132a of title 10, United States Code (as amended by 
paragraphs (1) and (2)) is further amended by add-
ing at the end the following: 
‘‘(f) COVERED ACTIVITIES DEFINED.—In this sec-
tion, the term ‘covered activities’ means any activity relat-
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ing to civilian resources management, logistics manage-
ment, services contracting, or real estate management.’’. 
(b) STREAMLINING OF CERTAIN FUNCTIONS ACROSS 
THE DEPARTMENT OF DEFENSE.— 
(1) STREAMLINING OF FUNCTIONS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), not later than January 1, 
2021, and not less frequently than once every 
five years thereafter, the Secretary of Defense, 
acting through the Chief Management Officer 
of the Department Defense, shall reduce or 
eliminate duplicative functions across all organi-
zations and elements of the Department of De-
fense with respect to the covered activities. 
(B) EXCEPTION.—The military services 
shall not be included in any reductions or elimi-
nations carried out under subparagraph (A) on 
or before January 1, 2021. 
(2) CERTIFICATION AND REVIEW OF COST SAV-
INGS.— 
(A) CERTIFICATION.—Not later January 
1, 2021, the Chief Management Officer shall 
certify to the congressional defense committees 
that the reductions and eliminations carried out 
under paragraph (1) accomplished savings with 
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respect to the total amount obligated and ex-
pended for the covered activities in fiscal year 
2020 that were not less than 25 percent of the 
baseline amount. 
(B) GAO REVIEW.—Not later than 30 
days after the submission of the certification 
under subparagraph (A), the Comptroller Gen-
eral of the United States shall submit to the 
congressional defense committees a report that 
verifies whether the savings reported by the 
Chief Management Officer under such subpara-
graph are accurate. 
(C) BASELINE
AMOUNT.—For the pur-
poses of this paragraph, the baseline amount is 
the total amount obligated and expended by or-
ganizations and elements of the Department of 
Defense other than the military services for fis-
cal year 2018 for the covered activities— 
(i) increased by a credit for the 
amount of any reductions in the costs of 
such activities that are documented, as of 
the date that is 90 days after the date of 
the enactment of this Act, as having been 
accomplished in accordance with section 
346 of the National Defense Authorization 
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Act for Fiscal Year 2016 (Public Law 
114–92;.10 U.S.C. 111 note); and 
(ii) decreased by the amount of any 
reductions in costs for such activities that 
are documented, as of the date that is 90 
days after the date of the enactment of 
this Act, as having been accomplished in 
accordance with other sections of this sub-
title. 
(D) TREATMENT OF CERTAIN COST SAV-
INGS.—For the purposes of calculating the per-
centage cost savings accomplished by the Chief 
Management Officer under subparagraph (A), 
any reduction in costs documented, as of the 
date that is 90 days after the date of the enact-
ment of this Act, as having been accomplished 
in accordance with section 346 of the National 
Defense Authorization Act for Fiscal Year 2016 
(Public Law 114–92;.10 U.S.C. 111 note) shall 
be treated as a reduction accomplished by the 
Chief Management Officer under paragraph 
(1). 
(3) PLAN AND REVIEW.— 
(A) PLAN
REQUIRED.—Not later than 
March 1, 2020, the Chief Management Officer 
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shall submit to the congressional defense com-
mittees a plan for complying with paragraphs 
(1) and (2). 
(B) GAO REVIEW.—Not later than 30 
days after the submission of the plan under 
subparagraph (A), the Comptroller General of 
the United States shall submit to the congres-
sional 
defense 
committees 
a 
report 
that 
verifies— 
(i) whether the plan submitted under 
subparagraph (A) is feasible; and 
(ii) whether any cost savings expected 
to result from the plan are accurate. 
(4) SUBSEQUENT REPORTS AND REVIEWS.— 
(A) CMO REPORTS.—Not later than Janu-
ary 1 of every fifth calendar year beginning 
with January 1, 2026, the Chief Management 
Officer shall submit to the congressional de-
fense committees a report that describes the ac-
tivities carried out by the Chief Management 
Officer under paragraph (1) during the pre-
ceding five years, including an estimate of any 
cost savings achieved as a result of such activi-
ties. 
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(B) GAO REVIEW.—Not later than 30 
days after the submission of each report under 
subparagraph (A), the Comptroller General of 
the United States shall submit to the congres-
sional 
defense 
committees 
a 
report 
that 
verifies— 
(i) whether the activities described in 
the report under subparagraph (A) were 
carried out; and 
(ii) whether any cost savings esti-
mated in the report are accurate. 
(5) COVERED
ACTIVITIES
DEFINED.—In this 
subsection, the term ‘‘covered activities’’ has the 
meaning given that term in section 132a(f) of title 
10, United States Code, as added by subsection (a) 
of this section. 
SEC. 912. AUTHORITIES AND RESPONSIBILITIES OF THE IN-
SPECTOR GENERAL OF THE DEPARTMENT OF 
DEFENSE. 
(a) ADDITIONAL RESPONSIBILITIES AND AUTHORI-
TIES.—Section 141 of title 10, United States Code, is 
amended by adding at the end the following: 
‘‘(c) In addition to the duties, responsibilities, and 
powers referred to in subsection (b), the Inspector General 
of the Department shall serve as the official with principal 
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responsibility in the Department for minimizing the dupli-
cation of efforts and maximizing efficiency among the In-
spectors General across all organizations and elements of 
the Department with respect to the covered activities. 
‘‘(d)(1)(A) The Secretary of Defense, acting through 
the Under Secretary of Defense (Comptroller), shall re-
quire each Inspector General of an organization or element 
of the Department of Defense to transmit the proposed 
budget for the covered activities of the Office of such In-
spector General for a fiscal year and for the period covered 
by the future-years defense program submitted to Con-
gress under section 221 of this title for that fiscal year 
to the Inspector General of the Department of Defense 
for review under subparagraph (B) before submitting the 
proposed budget to the Under Secretary of Defense 
(Comptroller). 
‘‘(B) The Inspector General of the Department of 
Defense shall review each proposed budget transmitted 
under subparagraph (A) and, not later than January 31 
of the year preceding the fiscal year for which the budget 
is proposed, shall submit to the Secretary of Defense a 
report containing the comments of the Inspector General 
with respect to all such proposed budgets, together with 
the certification of the Inspector General regarding wheth-
er each proposed budget achieves an adequate level of effi-
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ciency and effectiveness with respect to the covered activi-
ties. 
‘‘(C) Not later than March 31 of each year, the Sec-
retary of Defense shall submit to Congress a report that 
includes the following: 
‘‘(i) Each proposed budget for the covered ac-
tivities of an Inspector General of an organization or 
element of the Department of Defense that was 
transmitted to the Inspector General of the Depart-
ment under subparagraph (A). 
‘‘(ii) Identification of each proposed budget con-
tained in the most-recent report submitted under 
subparagraph (B) that the Inspector General of the 
Department did not certify as achieving an adequate 
level of efficiency and effectiveness with respect to 
the covered activities. 
‘‘(iii) A discussion of the actions that the Sec-
retary proposes to take, together with any rec-
ommended legislation that the Secretary considers 
appropriate, to address the inadequate levels of effi-
ciency and effectiveness achieved by the proposed 
budgets identified in the report. 
‘‘(iv) Any additional comments that the Sec-
retary considers appropriate regarding the inad-
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equate levels of efficiency and effectiveness achieved 
by the proposed budgets. 
‘‘(2) None of the funds authorized to be appropriated 
or otherwise made available for any fiscal year for the cov-
ered activities of an Inspector General of an organization 
or element of the Department of Defense may be obligated 
or expended unless— 
‘‘(A) the Inspector General of the organization 
or element submits to the Inspector General of the 
Department of Defense a plan for the obligation and 
expenditure of such funds; and 
‘‘(B) the Inspector General of the Department 
of Defense approves the plan. 
‘‘(e) In this section, the term ‘covered activities’ 
means any activity relating to public affairs, human re-
sources, contracting, services contracting, or any other 
cross-enterprise activities of the Inspectors General of the 
organizations and elements of the Department of Defense, 
as determined by the Inspector General of the Depart-
ment.’’. 
(b) STREAMLINING OF FUNCTIONS.—Not later than 
January 1, 2021, the Secretary of Defense, acting through 
the Inspector General of the Department Defense, shall 
reduce or eliminate duplicative functions among the In-
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spectors General across all organizations and elements of 
the Department with respect to the covered activities. 
(c) PLAN REQUIRED.—Not later than March 1, 
2020, the Inspector General of the Department of Defense 
shall submit to the congressional defense committees a 
plan for complying with subsection (b). 
(d) COVERED ACTIVITIES DEFINED.—In this section, 
the term ‘‘covered activities’’ has the meaning given that 
term in section 141(e) of title 10, United States Code, 
as added by subsection (a) of this section. 
SEC. 913. TRANSITION OF CERTAIN DEFENSE AGENCIES 
AND DEPARTMENT OF DEFENSE FIELD AC-
TIVITIES. 
(a) DEFENSE INFORMATION SYSTEMS AGENCY.— 
(1) TRANSFER OF FUNCTIONS.—Not later than 
January 1, 2021, the Secretary of Defense, acting 
through the Chief Management Officer of the De-
partment of Defense, shall— 
(A) transfer all information technology 
contracting and acquisition services of the De-
fense Information Systems Agency to other ele-
ments of the Department of Defense, which 
may include the transfer of such services to the 
military departments; and 
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(B) transfer all senior leader communica-
tions functions of the Agency to other elements 
of the Department of Defense. 
(2) TRANSITION PLAN.—Not later than March 
1, 2020, the Chief Management Officer shall submit 
to the congressional defense committees a plan for 
the transfers required under paragraph (1). 
(b) ELIMINATION OF WASHINGTON HEADQUARTERS 
SERVICES.— 
(1) ELIMINATION REQUIRED.—Not later than 
January 1, 2021, the Secretary of Defense, acting 
through the Chief Management Officer of the De-
partment of Defense, shall eliminate the Washington 
Headquarters Services. 
(2) TRANSFER OR ELIMINATION.— 
(A) TRANSFER.—The Chief Management 
Officer shall transfer to other elements of the 
Office of the Secretary of Defense only such 
functions of the Washington Headquarters 
Services as are necessary to carry out an essen-
tial function not otherwise carried out by such 
Office, as determined by the Chief Management 
Officer. 
(B) ELIMINATION.—Any functions of the 
Washington Headquarters Services that are not 
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transferred to another element of the Office of 
the Secretary of Defense under subparagraph 
(A) shall be eliminated. 
(3) TRANSFER OR DISPOSITION OF ASSETS.— 
The Chief Management Officer shall dispose of, or 
transfer to other elements of the Office of the Sec-
retary of Defense, any assets of the Washington 
Headquarters Services. 
(4) TRANSITION PLAN.—Not later than March 
1, 2020, the Chief Management Officer shall submit 
to the congressional defense committees a plan for 
the eliminations and transfers required under this 
subsection. 
(c) REVIEW OF DEFENSE AGENCIES AND DEPART-
MENT OF DEFENSE FIELD ACTIVITIES.— 
(1) REVIEW
REQUIRED.—The Chief Manage-
ment Officer of the Department of Defense shall re-
view the efficiency and effectiveness of each Defense 
Agency and Department of Defense Field Activity. 
As part of the review, the Chief Management Officer 
shall identify each function of an Agency or Activity 
that is substantially similar to, or duplicative of, a 
function carried out by another organization or ele-
ment of the Department of Defense. 
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(2) REPORT.—Not later than March 1, 2020, 
the Chief Management Officer shall submit to the 
congressional defense committees a report that in-
cludes the results of the review conducted under 
paragraph (1). 
(3) CMO 
VERIFICATION
AND
TRANSITION 
PLAN.—Together with the submission of the report 
under paragraph (2) and based on the results of the 
review conducted under paragraph (1), the Chief 
Management Officer shall submit to the congres-
sional defense committees— 
(A) a list identifying each Defense Agency 
and Department of Defense Field Activity that 
the Chief Management Officer has deter-
mined— 
(i) operates efficiently and effectively; 
and 
(ii) does not carry out any function 
that is substantially similar to, or duplica-
tive of, a function carried out by another 
organization or element of the Department 
of Defense; and 
(B) with respect to each Agency or Activity 
not included on the list under subparagraph 
(A), a plan for— 
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(i) eliminating the Agency or Activity; 
or 
(ii) transferring some or all of the 
functions of the Agency or Activity to an-
other organization or element of the De-
partment of Defense. 
(d) CLARIFICATION OF AUTHORITIES OF THE SEC-
RETARY OF DEFENSE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary of Defense shall have the 
authority to establish or terminate any Defense 
Agency or Department of Defense Field Activity. 
(2) EXCEPTIONS.—The authority of the Sec-
retary of Defense to establish or terminate a De-
fense Agency or Department of Defense Field Activ-
ity under paragraph (1) does not apply to an Agency 
or Activity that is specifically established or termi-
nated by an Act of Congress. 
(3) REFERENCES.—Any reference in Federal 
law, regulations, guidance, instructions, or other 
documents of the Federal Government to a Defense 
Agency or Department of Defense Field Activity ter-
minated by the Secretary of Defense under para-
graph (1), or to the head of such an Agency or Ac-
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tivity, shall be deemed to be a reference to the Sec-
retary of Defense. 
(4) NOTICE REQUIREMENT.—The Secretary of 
Defense may not terminate a Defense Agency or De-
partment of Defense Field Activity until a period of 
90 days has elapsed following the date on which the 
Secretary submits to the congressional defense com-
mittees— 
(A) notice of the intent of the Secretary to 
terminate the Agency or Activity; and 
(B) recommendations for legislative actions 
that may be required as a result of such termi-
nation. 
SEC. 914. ACTIONS TO INCREASE THE EFFICIENCY AND 
TRANSPARENCY OF THE DEFENSE LOGISTICS 
AGENCY. 
(a) SYSTEM AND CAPABILITY.—Not later than Janu-
ary 1, 2021, the Director of the Defense Logistics Agency 
and the Chief Management Officer of the Department of 
Defense shall jointly, in consultation with the customers 
served by the Agency, develop and implement— 
(1) a comprehensive system that enables cus-
tomers of the Agency to view— 
(A) the inventory of items and materials 
available to customers from the Agency; and 
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(B) the delivery status of items and mate-
rials that are in transit to customers; and 
(2) a predictive analytics capability designed to 
increase the efficiency of the system described in 
paragraph (1) by identifying emerging customer 
needs with respect to items and materials supplied 
by the Agency, including any emerging needs arising 
from the use of new weapon systems by customers. 
(b) ACTIONS TO INCREASE EFFICIENCY.—Not later 
than January 1, 2021, the Director of the Defense Logis-
tics Agency and the Chief Management Officer shall joint-
ly— 
(1) reduce the rates charged to customers, in 
aggregate, by not less than 10 percent; 
(2) eliminate the duplication of services within 
the Agency; and 
(3) establish specific goals and metrics to en-
sure that the Agency is fulfilling its mission of pro-
viding items and materials to customers with suffi-
cient speed and in sufficient quantities to ensure the 
lethality and readiness of warfighters. 
(c) PLAN REQUIRED.—Not later than March 1, 
2020, the Director of the Defense Logistics Agency and 
the Chief Management Officer shall jointly submit to the 
congressional defense committees a plan that describes 
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how the Director and the Chief Management Officer will 
achieve compliance with the requirements of subsections 
(a) and (b). 
SEC. 915. REVIEW OF FUNCTIONS OF DEFENSE CONTRACT 
AUDIT AGENCY AND DEFENSE CONTRACT 
MANAGEMENT AGENCY. 
(a) REVIEW REQUIRED.—The Secretary of Defense, 
acting through the Chief Management Officer of the De-
partment of Defense, shall direct the Under Secretary of 
Defense for Acquisition and Sustainment and the Under 
Secretary of Defense (Comptroller) to conduct a joint re-
view of the functions of the Defense Contract Audit Agen-
cy and the Defense Contract Management Agency. The 
review shall include— 
(1) a validation of the missions and functions of 
each Agency; 
(2) a determination of whether there are func-
tions performed by either Agency that could more 
appropriately be performed by— 
(A) the other Agency; 
(B) any other organization or element of 
the Department of Defense, including the mili-
tary departments; or 
(C) commercial providers; and 
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(3) a validation of the continued need for two 
separate Agencies with oversight for defense con-
tracting. 
(b) REPORT REQUIRED.—Not later than March 1, 
2020, the Secretary of Defense shall submit to the con-
gressional defense committees a report that includes the 
results of the review conducted under subsection (a). 
SEC. 916. STREAMLINING OF DEFENSE FINANCE AND AC-
COUNTING SERVICES. 
(a) IN GENERAL.—Not later than January 1, 2021, 
the Chief Management Officer and the Under Secretary 
of Defense (Comptroller) shall jointly carry out activities 
to streamline, reduce duplication, and make more effective 
the operations of the Defense Finance and Accounting 
Services. 
(b) PLAN REQUIRED.—Not later than March 1, 
2020, the Chief Management Officer and the Under Sec-
retary of Defense (Comptroller) shall jointly submit to the 
congressional defense committees a plan for carrying out 
the activities required under subsection (a). 
(c) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to encourage or require the termi-
nation of any personnel or positions within the Defense 
Finance and Accounting Services. 
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SEC. 917. REDUCTION IN NUMBER OF CHIEF INFORMATION 
OFFICERS IN THE SENIOR EXECUTIVE SERV-
ICE. 
With respect to the total number of Chief Informa-
tion Officer positions within the Department of Defense, 
during calendar year 2021 and each year thereafter not 
more than five of such positions may be Senior Executive 
Service positions (as that term is described in section 
3132(a)(2) of title 5, United States Code). 
SEC. 918. GENERAL PROVISIONS. 
(a) CONSOLIDATED REPORT.—The plans and reports 
required to be submitted to the congressional defense com-
mittees under this subtitle on or before March 1, 2020, 
may be combined and submitted in the form of a single, 
consolidated document. 
(b) DEFINITIONS.—In this subtitle: 
(1) The term ‘‘Chief Management Officer’’ 
means the Chief Management Officer of the Depart-
ment of Defense. 
(2) The terms ‘‘Defense Agency’’, ‘‘Department 
of Defense Field Activity’’, and ‘‘military depart-
ments’’ have the meanings given the terms in section 
101(a) of title 10, United States Code. 
(c) CONFORMING AMENDMENT.—Section 143(b) of 
title 10, United States Code, is amended by striking ‘‘and 
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the Washington Headquarters Services of the Department 
of Defense’’. 
(d) EFFECTIVE DATE.—The amendment made by 
subsection (c) shall take effect on the earlier of— 
(1) the date on which the Washington Head-
quarters Services is eliminated under section 913; or 
(2) January 1, 2021. 
Subtitle C—Other Matters 
SEC. 
921. 
ARTIFICIAL 
INTELLIGENCE 
AND 
MACHINE 
LEARNING POLICY AND OVERSIGHT COUN-
CIL. 
(a) ESTABLISHMENT.—In order to fulfill the respon-
sibilities specified in Section 133a of title 10, United 
States Code, the Under Secretary of Defense for Research 
and Engineering shall establish and lead a team to be 
known as the ‘‘Artificial Intelligence and Machine Learn-
ing Policy and Oversight Council’’ (in this section referred 
to as the ‘‘Council’’). 
(b) PURPOSE.—The purpose of the Council shall be 
to— 
(1) integrate the functional activities of the or-
ganizations and elements of the Department of De-
fense with respect to artificial intelligence and ma-
chine learning; 
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(2) ensure there are efficient and effective arti-
ficial intelligence and machine learning capabilities 
throughout Department; and 
(3) develop and continuously improve research, 
innovation, policy, joint processes, and procedures to 
facilitate the development, acquisition, integration, 
advancement, oversight, and sustainment of artificial 
intelligence and machine learning throughout the 
Department. 
(c) MEMBERSHIP.—The membership of the Council 
shall include the following: 
(1) The Under Secretary of Defense for Re-
search and Engineering, or the designee of the 
Under Secretary, who shall serve as the leader of the 
Council. 
(2) The following officials of the Department of 
Defense, or their designees: 
(A) The Under Secretary of Defense for 
Acquisition and Sustainment. 
(B) The Chief Management Officer of the 
Department of Defense. 
(C) The Under Secretary of Defense 
(Comptroller). 
(D) The Under Secretary of Defense for 
Personnel and Readiness. 
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(E) The Under Secretary of Defense for 
Intelligence. 
(F) The General Counsel of the Depart-
ment of Defense. 
(G) The head of each military service. 
(H) The Commander of the United States 
Special Operations Command. 
(I) The Director of the Defense Advanced 
Research Projects Agency. 
(3) Any other official of the Department of De-
fense determined to be appropriate by the Under 
Secretary of Defense for Research and Engineering. 
(d) OPERATION.—The Council shall operate continu-
ously. 
SEC. 922. LIMITATION ON TRANSFER OF THE CHEMICAL, 
BIOLOGICAL, AND RADIOLOGICAL DEFENSE 
DIVISION OF THE NAVY. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) The Chemical, Biological, and Radiological 
Defense Division of the Navy, currently based at the 
Naval Surface Warfare Center in Dahlgren, Vir-
ginia, consists of a highly effective team of scientists 
performing critical work for the United States. 
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(2) The Secretary of the Navy has notified Con-
gress of the intent of the Secretary to transfer the 
Division to another location. 
(3) The Secretary has not provided Congress 
with a detailed cost benefit analysis or any other in-
formation that adequately justifies the proposed 
transfer of the Division. 
(b) REPORT REQUIRED.—Not later than 90 days 
after the date of the enactment of this Act, the Secretary 
of the Navy shall submit to the congressional defense com-
mittees a report that includes— 
(1) a detailed timeline for the proposed transfer 
of the Chemical, Biological, and Radiological De-
fense Division of the Navy from Virginia to another 
location; 
(2) a full accounting of the costs associated 
with the proposed transfer, including— 
(A) all personnel costs; 
(B) all equipment costs; and 
(C) all facility renovation costs for the ex-
isting facilities of the Division and the facilities 
to which the Division is proposed to be trans-
ferred; 
(3) a risk assessment of the operational impact 
of the transfer during the transition period; and 
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(4) an explanation of the operational benefit ex-
pected to be achieved by collocating all Chemical, Bi-
ological, and Radiological elements of the Depart-
ment of the Navy. 
(c) LIMITATION.—The Secretary of the Navy may not 
transfer, or prepare to transfer, the Chemical, Biological, 
and Radiological Defense Division of the Navy from Dahl-
gren, Virginia to another location until a period of 45 days 
has elapsed following the date on which the report is sub-
mitted to the congressional defense committees under sub-
section (b). 
SEC. 923. REVIEW OF FOREIGN CURRENCY EXCHANGE 
RATES AND ANALYSIS OF FOREIGN CUR-
RENCY FLUCTUATIONS APPROPRIATION. 
With respect to a contract for goods and services paid 
for with foreign currency, the Under Secretary of Defense 
(Comptroller), in coordination with each Secretary of a 
military department, shall conduct a review of the ex-
change rate for such foreign currency used when making 
a disbursement pursuant to such a contract to determine 
whether cost-savings opportunities exist by more consist-
ently selecting cost-effective rates. Such review shall in-
clude an analysis of realized and projected losses to deter-
mine the necessary balance of the appropriation ‘‘Foreign 
Currency Fluctuations, Defense’’. The Secretary of De-
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fense may use the results of such analysis to determine 
the amount of any transfers to the appropriation ‘‘Foreign 
Currency Fluctuations, Defense’’. 
Subtitle D—Designation of the 
Navy and Marine Corps 
SEC. 931. REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY 
AND MARINE CORPS. 
(a) REDESIGNATION OF MILITARY DEPARTMENT.— 
The military department designated as the Department of 
the Navy is redesignated as the Department of the Navy 
and Marine Corps. 
(b) REDESIGNATION
OF SECRETARY
AND OTHER 
STATUTORY OFFICES.— 
(1) SECRETARY.—The position of the Secretary 
of the Navy is redesignated as the Secretary of the 
Navy and Marine Corps. 
(2) OTHER
STATUTORY
OFFICES.—The posi-
tions 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 redesig-
nated as the Under Secretary of the Navy and Ma-
rine Corps, the Assistant Secretaries of the Navy 
and Marine Corps, and the General Counsel of the 
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Department of the Navy and Marine Corps, respec-
tively. 
SEC. 932. CONFORMING AMENDMENTS TO TITLE 10, UNITED 
STATES CODE. 
(a) DEFINITION OF ‘‘MILITARY DEPARTMENT’’.— 
Paragraph (8) of section 101(a) of title 10, United States 
Code, is amended to read as follows: 
‘‘(8) The term ‘military department’ means the 
Department of the Army, the Department of the 
Navy and Marine Corps, and the Department of the 
Air Force.’’. 
(b) ORGANIZATION OF DEPARTMENT.—The text of 
section 5011 of such title is amended to read as follows: 
‘‘The Department of the Navy and Marine Corps is sepa-
rately organized under the Secretary of the Navy and Ma-
rine Corps.’’. 
(c) POSITION OF SECRETARY.—Section 5013(a)(1) of 
such title is amended by striking ‘‘There is a Secretary 
of the Navy’’ and inserting ‘‘There is a Secretary of the 
Navy and Marine Corps’’. 
(d) CHAPTER HEADINGS.— 
(1) The heading of chapter 503 of such title is 
amended to read as follows: 
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‘‘CHAPTER 503—DEPARTMENT OF THE 
NAVY AND MARINE CORPS’’. 
(2) The heading of chapter 507 of such title is 
amended to read as follows: 
‘‘CHAPTER 507—COMPOSITION OF THE DE-
PARTMENT OF THE NAVY AND MARINE 
CORPS’’. 
(e) OTHER AMENDMENTS.— 
(1) 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 subsections (a), (b), (c), and (d) (includ-
ing in section headings, subsection captions, tables 
of chapters, and tables of sections) and inserting 
‘‘Department of the Navy and Marine Corps’’ and 
‘‘Secretary 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 strick-
en. 
(2)(A) 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 ‘‘Assistant Secretaries of the 
Navy and Marine Corps’’. 
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(B) 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 inserting ‘‘and Marine 
Corps’’ after ‘‘of the Navy’’, with the matter in-
serted in each case to be in the same typeface and 
typestyle as the matter amended. 
SEC. 933. OTHER PROVISIONS OF LAW AND OTHER REF-
ERENCES. 
(a) TITLE 37, UNITED STATES CODE.—Title 37, 
United States Code, is amended by striking ‘‘Department 
of the Navy’’ and ‘‘Secretary of the Navy’’ each place they 
appear and inserting ‘‘Department of the Navy and Ma-
rine Corps’’ and ‘‘Secretary of the Navy and Marine 
Corps’’, respectively. 
(b) 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 Department of the Navy shall be 
considered to be a reference to the Department of the 
Navy and Marine Corps. Any such reference to an office 
specified in section 931(b) shall be considered to be a ref-
erence to that officer as redesignated by that section. 
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SEC. 934. EFFECTIVE DATE. 
This subtitle and the amendments made by this sub-
title shall take effect on the first day of the first month 
beginning more than 60 days after the date of the enact-
ment of this Act. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
SEC. 1001. GENERAL TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.— 
(1) AUTHORITY.—Upon determination by the 
Secretary of Defense that such action is necessary in 
the national interest, the Secretary may transfer 
amounts of authorizations made available to the De-
partment of Defense in this division for fiscal year 
2019 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and 
be available for the same purposes as the authoriza-
tion to which transferred. 
(2) LIMITATION.—Except as provided in para-
graph (3), the total amount of authorizations that 
the Secretary may transfer under the authority of 
this section may not exceed $5,000,000,000. 
(3) EXCEPTION
FOR
TRANSFERS
BETWEEN 
MILITARY PERSONNEL AUTHORIZATIONS.—A trans-
fer of funds between military personnel authoriza-
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tions under title IV shall not be counted toward the 
dollar limitation in paragraph (2). 
(b) LIMITATIONS.—The authority provided by sub-
section (a) to transfer authorizations— 
(1) may only be used to provide authority for 
items that have a higher priority than the items 
from which authority is transferred; and 
(2) may not be used to provide authority for an 
item that has been denied authorization by Con-
gress. 
(c) EFFECT
ON
AUTHORIZATION
AMOUNTS.—A 
transfer made from one account to another under the au-
thority of this section shall be deemed to increase the 
amount authorized for the account to which the amount 
is transferred by an amount equal to the amount trans-
ferred. 
(d) NOTICE
TO CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under 
subsection (a). 
SEC. 1002. EXPERTISE IN AUDIT REMEDIATION. 
(a) FINDINGS.—Congress finds the following: 
(1) The ongoing efforts to produce auditable fi-
nancial statements for the Department of Defense, 
its agencies, and the military services enhance readi-
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ness and accountability by ensuring effective stew-
ardship of taxpayer resources. 
(2) The transition from audit readiness to audit 
performance and remediation are critical phases, de-
manding expertise from accounting firms and finan-
cial management professionals to ensure that the 
Department successfully addresses issues identified 
in an audit. 
(3) Support from the private sector enhances 
the ability of the Department to conduct audit and 
remediation activities, and will enable the Depart-
ment to achieve its strategic objective of improving 
business practices with efficiency and accountability. 
(b) ADDITIONAL REQUIREMENTS FOR SEMIANNUAL 
BRIEFING ON THE FINANCIAL IMPROVEMENT AND AUDIT 
REMEDIATION PLAN.—Section 252(b)(2) of title 10, 
United States Code, is amended by adding at the end the 
following new sentence: ‘‘Such briefing shall include the 
amount of auditing and audit remediation services being 
performed by professionals meeting the qualifications de-
scribed in section 254(b) of this title, both as an absolute 
number and as a percentage of auditing and audit remedi-
ation services then under contract.’’. 
(c) ADDITIONAL REPORTING REQUIREMENTS.—Sec-
tion 252(b)(1) of such title is amended— 
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(1) in subparagraph (B), by adding at the end 
the following new clauses: 
‘‘(vii) If less than 50 percent of the 
auditing and audit remediation services 
under contract, as described in the briefing 
required under paragraph (2), are being 
performed by professionals meeting the 
qualifications described in section 254(b) 
of this title, a detailed description of the 
risks associated with the risks of the acqui-
sition strategy of the Department with re-
spect to conducting audits and audit reme-
diation activities and an explanation of 
how the strategy complies with the policies 
expressed by Congress. 
‘‘(viii) If less than 25 percent of the 
auditing and audit remediation services 
under contract, as described in the briefing 
required under paragraph (2), are being 
performed by professionals meeting the 
qualifications described in section 254(b) 
of this title, a written certification that the 
staffing ratio complies with commercial 
best practices and presents no increased 
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risk of delay in the Department’s ability to 
achieve a clean audit opinion’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(C) ADDITIONAL REQUIREMENTS.— 
‘‘(i) UNCLASSIFIED
FORM.—A de-
scription submitted pursuant to clause (vii) 
of subparagraph (B) or a certification sub-
mitted pursuant to clause (viii) of such 
subparagraph shall be submitted in unclas-
sified form, but may contain a classified 
annex. 
‘‘(ii) DELEGATION.—The Secretary 
may not delegate the submission of a cer-
tification pursuant to clause (viii) of sub-
paragraph (B) to any official other than 
the Deputy Secretary of Defense, the Chief 
Management Officer, or the Under Sec-
retary of Defense (Comptroller).’’. 
SEC. 1003. AUTHORITY TO TRANSFER FUNDS TO DIRECTOR 
OF NATIONAL INTELLIGENCE FOR CAPNET. 
During fiscal year 2019, the Secretary of Defense 
may transfer to the Director of National Intelligence, 
under the authority in section 1001 of this Act, an amount 
that does not exceed $2,000,000 to provide support for 
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the operation of the classified network known as 
CAPNET. 
SEC. 1004. INDEPENDENT PUBLIC ACCOUNTANT AUDIT OF 
FINANCIAL SYSTEMS OF THE DEPARTMENT 
OF DEFENSE. 
The Secretary of Defense shall ensure that each 
major implementation of, or modification to, a business 
system that contributes to financial information of the De-
partment of Defense is reviewed by an independent public 
accountant to validate that such financial system will meet 
any applicable Federal requirements. 
SEC. 1005. REPORT ON AUDITABLE FINANCIAL STATE-
MENTS. 
Not later than 30 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report ranking 
all military departments and Defense Agencies in order 
of how advanced they are in achieving auditable financial 
statements as required by law. The report should not in-
clude information otherwise available in other reports to 
Congress. 
Subtitle B—Counterdrug Activities 
SEC. 1011. DEPARTMENT OF DEFENSE SUPPORT FOR COM-
BATING OPIOID TRAFFICKING AND ABUSE. 
(a) FINDINGS; SENSE OF CONGRESS.— 
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(1) FINDINGS.—Congress makes the following 
findings: 
(A) Over the past 15 years, opioid use in 
the United States has grown exponentially. 
(B) According to the Office of National 
Drug Control Policy, the number of deaths re-
lated to opioids in the United States in 2016 
was 42,269. 
(C) Addiction and misuse of prescription 
opioids continues to rise. According to the Of-
fice of National Drug Control Policy, in 2016, 
11,500,000 people misused prescription opioids. 
(D) The predominant amount of precur-
sors for fentanyl production are illicitly traf-
ficked from China. 
(E) The Office of National Drug Control 
Policy is the lead agency for coordinating the 
Federal response to address the opioid epidemic 
in the United States. 
(F) The Department of Homeland Security 
is the lead Federal agency in securing United 
States borders from illicit trafficking. 
(G) The Department of Defense plays a 
vital supporting role in addressing the opioid 
epidemic through intelligence analysis, edu-
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cation, and assistance to other departments and 
agencies in dealing with this challenge. 
(2) SENSE OF CONGRESS.—It is the sense of 
Congress that— 
(A) the Department of Defense should pro-
vide support for interagency efforts to combat 
the national opioid epidemic; and 
(B) the role of the Department of Defense 
is critical to identifying transnational criminal 
organizations that allow illicit opioids to enter 
the United States. 
(b) DEPARTMENT OF DEFENSE SUPPORT FOR COM-
BATING OPIOID TRAFFICKING AND ABUSE.—Of the funds 
authorized to be appropriated by this Act or otherwise 
made available to the Department of Defense for National 
Guard counterdrug programs for fiscal year 2019, 
$20,000,000 shall be made available to provide support 
for United States interagency efforts to combat opioid 
trafficking and abuse in the United States, as specified 
in the funding table in division G. 
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Subtitle C—Naval Vessels and 
Shipyards 
SEC. 1021. INCLUSION OF OPERATION AND SUSTAINMENT 
COSTS IN ANNUAL NAVAL VESSEL CON-
STRUCTION PLANS. 
Section 231(b)(2) of title 10, United States Code, is 
amended by adding at the end the following new subpara-
graph: 
‘‘(F) The estimated operations and sustainment 
costs required to support the vessels delivered under 
the naval vessel construction plan.’’. 
SEC. 1022. PURCHASE OF VESSELS USING FUNDS IN NA-
TIONAL DEFENSE SEALIFT FUND. 
(a) IN GENERAL.—Section 2218(f)(3) of title 10, 
United States Code, is amended— 
(1) in subparagraph (C)— 
(A) by striking ‘‘two’’ and inserting ‘‘ten’’; 
and 
(B) by striking ‘‘ships’’ and inserting ‘‘ves-
sels’’; 
(2) by redesignating subparagraph (E) as sub-
paragraph (F); and 
(3) by inserting after subparagraph (D) the fol-
lowing new subparagraph (E): 
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‘‘(E) The Secretary may not use the authority under 
this paragraph to procure more than two foreign con-
structed vessels unless the Secretary submits to Congress, 
by not later than the second week of February of the fiscal 
year during which the Secretary plans to use such author-
ity, a certification that— 
‘‘(i) the Secretary has initiated an acquisition 
strategy for the construction in United States ship-
yards of not less than ten new sealift vessels pur-
chased with funds in the National Defense Sealift 
Fund; and 
‘‘(ii) of such new sealift vessels, the lead ship 
is anticipated to be delivered by not later than 
2026.’’. 
(b) LIMITATION
ON
USE
OF
FUNDS.—Of the 
amounts authorized to be appropriated or otherwise made 
available by this Act for fiscal year 2019 for the Military 
Sealift Command, the Secretary of the Navy may not obli-
gate or expend more than 75 percent until the Secretary 
submits to the congressional defense committees certifi-
cation that the Navy has— 
(1) entered into a contract for the procurement 
of two used National Defense Reserve Fleet vessels 
in accordance with section 2218(f)(3)(C) of title 10, 
United States Code; and 
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(2) completed the capability development docu-
ment for the common hull multi-mission platform. 
SEC. 1023. PURCHASE OF VESSELS BUILT IN FOREIGN SHIP-
YARDS WITH FUNDS IN NATIONAL DEFENSE 
SEALIFT FUND. 
Section 2218(f)(3) of title 10, United States Code, 
as amended by section 1022, is further amended— 
(1) in subparagraph (F), as redesignated by 
such section 1022— 
(A) by striking ‘‘30 days after’’ and insert-
ing ‘‘30 days before’’; 
(B) in clause (i), by inserting ‘‘proposed’’ 
before ‘‘date’’; 
(C) in clause (ii), by striking ‘‘was’’ and 
inserting ‘‘would be’’; and 
(D) by adding at the end the following new 
clause: 
‘‘(viii) A detailed account of the criteria used to 
make the determination under subparagraph (B).’’; 
and 
(2) by inserting after subparagraph (F), as so 
redesignated, the following new subparagraph: 
‘‘(G) The Secretary may not finalize or execute the 
final purchase of any vessel using the authority under this 
paragraph until 30 days after the date on which a report 
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under subparagraph (E) is submitted with respect to such 
purchase.’’. 
SEC. 1024. TECHNICAL CORRECTIONS AND CLARIFICA-
TIONS TO CHAPTER 633 OF TITLE 10, UNITED 
STATES CODE, AND OTHER PROVISIONS OF 
LAW REGARDING NAVAL VESSELS. 
(a) MODEL BASIN; INVESTIGATION OF HULL DE-
SIGNS.—Section 7303 of title 10, United States Code, is 
amended by striking ‘‘(a) An office’’ and all that follows 
through ‘‘(b) The Secretary’’ and inserting ‘‘The Sec-
retary’’. 
(b) REPEAL OF CERTAIN PROVISIONS OF CHAPTER 
633 OF TITLE 10, UNITED STATES CODE.— 
(1) IN
GENERAL.—The following sections of 
chapter 633 of title 10, United States Code, are re-
pealed: 
(A) Section 7294. 
(B) Section 7295. 
(C) Section 7300. 
(D) Section 7306. 
(E) Section 7306b. 
(2) CLERICAL AMENDMENTS.—The table of sec-
tions at the beginning of such chapter is amended 
by striking the items relating to sections 7294. 
7295. 7300, 7306, and 7306b. 
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(c) OTHER PROVISIONS OF LAW.— 
(1) REPEAL OF METERING OF NAVY PIERS TO 
ACCURATELY
MEASURE
ENERGY
CONSUMPTION.— 
Section 2828 of the National Defense Authorization 
Act for Fiscal Year 2012 (Public Law 112–81; 125 
Stat. 1694; 10 U.S.C. 7291 note) is repealed. 
(2) MODIFICATION OF ADVANCE PROCUREMENT 
FUNDING.—Section 124 of the National Defense Au-
thorization Act for Fiscal Year 2010 (Public Law 
111–84; 123 Stat. 2214; 10 U.S.C. 7291 note) is 
amended— 
(A) by striking subsection (a); and 
(B) by redesignating subsections (b) and 
(c) as subsections (a) and (b), respectively. 
(3) REPEAL OF POLICY RELATING TO MAJOR 
COMBATANT VESSELS OF THE STRIKE FORCES OF 
THE UNITED STATES NAVY.—Section 1012 of the 
National Defense Authorization Act for Fiscal Year 
2008 (Public Law 110–181; 122 Stat. 303; 10 
U.S.C. 7291 note) is repealed. 
(4) REPEAL OF ALTERNATIVE TECHNOLOGIES 
FOR FUTURE SURFACE COMBATANTS.—Section 128 
of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109–364; 120 
Stat. 2109; 10 U.S.C. 7291 note) is repealed. 
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(5) REPEAL OF OBSOLETE PROVISION ON VES-
SEL SCRAPPING PILOT PROGRAM.—Section 8124 of 
the Department of Defense Appropriations Act, 
1999 (Public Law 105–262; 112 Stat. 2333; 10 
U.S.C. 7291 note) is repealed. 
(6) REPEAL OF PROVISION ON CONSIDERATION 
OF VESSEL LOCATION FOR AWARD OF LAYBERTH 
CONTRACTS FOR SEALIFT VESSELS.—Section 375 of 
the National Defense Authorization Act for Fiscal 
Year 1993 (Public Law 102–484; 106 Stat. 2385; 
10 U.S.C. 7291 note) is repealed. 
(7) REPEAL OF PROVISION ON REVITALIZATION 
OF UNITED STATES SHIPBUILDING INDUSTRY.—Sec-
tion 1031 of the National Defense Authorization Act 
for Fiscal Year 1993 (Public Law 102–484; 106 
Stat. 2489; 10 U.S.C. 7291 note) is repealed. 
(8) REPEAL OF FAST SEALIFT PROGRAM.— 
(A) PROCUREMENT
OF
SHIPS.—Section 
1021 of the National Defense Authorization Act 
for Fiscal Year 1993 (Public Law 102–484; 
106 Stat. 2485; 10 U.S.C. 7291 note) is re-
pealed. 
(B) ESTABLISHMENT OF PROGRAM.—Sec-
tion 1424 of the National Defense Authoriza-
tion Act for Fiscal Year 1991 (Public Law 
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101–510; 104 Stat. 1683; 10 U.S.C. 7291 
note) is repealed. 
(9) REPEAL OF REQUIREMENTS RELATING TO 
DEPOT-LEVEL
MAINTENANCE
OF
SHIPS.—Section 
1614 of the National Defense Authorization Act for 
Fiscal Years 1990 and 1991 (Public Law 101–189; 
103 Stat. 1601; 10 U.S.C. 7291 note) is amended 
by striking subsections (a) and (b). 
(10) REPEAL OF OBSOLETE REQUIREMENT FOR 
REPORTS
ON
EFFECTS
OF
NAVAL
SHIPBUILDING 
PLANS ON MARITIME INDUSTRIES.—Section 1227 of 
the National Defense Authorization Act for Fiscal 
Year 1989 (Public Law 100–456; 102 Stat. 2055; 
10 U.S.C. 7291 note) is repealed. 
(11) REPEAL OF SIX-HUNDRED-SHIP GOAL FOR 
NAVY; SENSE OF CONGRESS.—Section 791 of the 
Department of Defense Appropriations Act, 1982 
(Public Law 97–114; 95 Stat. 1593; 10 U.S.C. 7291 
note) is repealed. 
(12) REPEAL OF PROHIBITION ON USE OF PUB-
LIC
AND
PRIVATE
SHIPYARDS
FOR
CONVERSION, 
OVERHAUL, OR REPAIR WORK UNDER CERTAIN PRO-
GRAMS.—Section 811 of the Department of Defense 
Appropriations Act, 1979 (Public Law 95–485; 92 
Stat. 1624; 10 U.S.C. 7291 note) is repealed. 
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(13) REPEAL OF OBSOLETE REQUIREMENT TO 
SUBMIT A FIVE-YEAR NAVAL SHIP NEW CONSTRUC-
TION AND CONVERSION PROGRAM.—Section 808 of 
the Department of Defense Authorization Act, 1976 
(Public Law 94–106; 89 Stat. 539; 10 U.S.C. 7291 
note) is repealed. 
SEC. 1025. RETENTION OF NAVY HOSPITAL SHIP CAPA-
BILITY. 
(a) RETENTION OF SHIPS.—The Secretary of the 
Navy shall retain two T-AH 19 Mercy-class hospital ships 
at a readiness level that provides for the activation and 
deployment of each such ship within a period that does 
not exceed 5 days. 
(b) WAIVER AUTHORITY.—The Secretary of the 
Navy may waive the requirement under subsection (a) if 
the Secretary submits to the congressional defense com-
mittees certification in writing that the Secretary has— 
(1) for any T-AH 19 Mercy-class hospital ship 
to be retired or transferred, identified a replacement 
capability to meet the combatant commander afloat 
medical capability for medical and surgical care that 
is being met by the ship to be retired or transferred; 
and 
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(2) achieved the initial operational capability of 
the replacement capability described in paragraph 
(1). 
Subtitle D—Counterterrorism 
SEC. 1031. DEFINITION OF SENSITIVE MILITARY OPER-
ATION. 
Subsection (d) of section 130f of title 10, United 
States Code, is amended to read as follows: 
‘‘(d) SENSITIVE MILITARY OPERATION DEFINED.— 
(1) Except as provided in paragraph (2), in this section, 
the term ‘sensitive military operation’ means a lethal oper-
ation or capture operation conducted by the armed forces 
or conducted by a foreign partner in coordination with the 
armed forces that targets a specific individual or individ-
uals. 
‘‘(2) For purposes of this section, the term ‘sensitive 
military operation’ does not include any operation con-
ducted within Afghanistan.’’. 
SEC. 1032. PROHIBITION ON USE OF FUNDS FOR TRANSFER 
OR RELEASE OF INDIVIDUALS DETAINED AT 
UNITED STATES NAVAL STATION, GUANTA-
NAMO BAY, CUBA, TO THE UNITED STATES. 
No amounts authorized to be appropriated or other-
wise made available for the Department of Defense may 
be used during the period beginning on the date of the 
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enactment of this Act and ending on December 31, 2019, 
to transfer, release, or assist in the transfer of or release 
to or within the United States, its territories, or posses-
sions Khalid Sheikh Mohammed or any other detainee 
who— 
(1) is not a United States citizen or a member 
of the Armed Forces of the United States; and 
(2) is or was held on or after January 20, 
2009, at United States Naval Station, Guantanamo 
Bay, Cuba, by the Department of Defense. 
SEC. 1033. PROHIBITION ON USE OF FUNDS TO CONSTRUCT 
OR MODIFY FACILITIES IN THE UNITED 
STATES 
TO 
HOUSE 
DETAINEES 
TRANS-
FERRED FROM UNITED STATES NAVAL STA-
TION, GUANTANAMO BAY, CUBA. 
(a) IN GENERAL.—No amounts authorized to be ap-
propriated or otherwise made available for the Depart-
ment of Defense may be used during the period beginning 
on the date of the enactment of this Act and ending on 
December 31, 2019, to construct or modify any facility 
in the United States, its territories, or possessions to 
house any individual detained at Guantanamo for the pur-
poses of detention or imprisonment in the custody or 
under the control of the Department of Defense. 
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(b) EXCEPTION.—The prohibition in subsection (a) 
shall not apply to any modification of facilities at United 
States Naval Station, Guantanamo Bay, Cuba. 
(c) INDIVIDUAL DETAINED AT GUANTANAMO DE-
FINED.—In this section, the term ‘‘individual detained at 
Guantanamo’’ has the meaning given that term in section 
1034(f)(2) of the National Defense Authorization Act for 
Fiscal Year 2016 (Public Law 114–92; 129 Stat. 971; 10 
U.S.C. 801 note). 
SEC. 1034. PROHIBITION ON USE OF FUNDS FOR TRANSFER 
OR RELEASE OF INDIVIDUALS DETAINED AT 
UNITED STATES NAVAL STATION, GUANTA-
NAMO BAY, CUBA, TO CERTAIN COUNTRIES. 
No amounts authorized to be appropriated or other-
wise made available for the Department of Defense may 
be used during the period beginning on the date of the 
enactment of this Act and ending on December 31, 2019, 
to transfer, release, or assist in the transfer or release of 
any individual detained in the custody or under the control 
of the Department of Defense at United States Naval Sta-
tion, Guantanamo Bay, Cuba, to the custody or control 
of any country, or any entity within such country, as fol-
lows: 
(1) Libya. 
(2) Somalia. 
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(3) Syria. 
(4) Yemen. 
Subtitle E—Miscellaneous 
Authorities and Limitations 
SEC. 1041. NOTIFICATION ON THE PROVISION OF DEFENSE 
SENSITIVE SUPPORT. 
Section 1055 of the National Defense Authorization 
Act for Fiscal Year 2017 (Public Law 114–328; 10 U.S.C. 
113 note) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘; and’’ 
and inserting a semicolon; 
(B) in paragraph (2)(B), by striking the 
period at the end and inserting a semicolon; 
and 
(C) by adding at the end the following new 
paragraphs: 
‘‘(3) is requested by the non-Department of De-
fense Federal department or agency only after the 
department or agency has first reasonably attempted 
to use the resources of that department or agency to 
accomplish the mission for which the department or 
agency is making such request; and 
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‘‘(4) is most appropriately provided by the De-
partment of Defense rather than another depart-
ment or agency of the Federal Government.’’; and 
(2) in subsection (b), by adding at the end the 
following new paragraph: 
‘‘(4) REVERSE DEFENSE SENSITIVE SUPPORT 
REQUEST.—The Secretary shall notify the congres-
sional defense committees (and the congressional in-
telligence committees with respect to matters relat-
ing to members of the intelligence community) of re-
quests made by the Secretary to a non-Department 
of Defense Federal department or agency for sup-
port that requires special protection from disclosure 
in the same manner and containing the same infor-
mation as the Secretary notifies such committees of 
defense sensitive support requests under paragraphs 
(1) and (3).’’. 
SEC. 1042. COORDINATING UNITED STATES RESPONSE TO 
MALIGN FOREIGN INFLUENCE OPERATIONS 
AND CAMPAIGNS. 
(a) IN GENERAL.—Section 101 of the National Secu-
rity Act of 1947 (50 U.S.C. 3021) is amended— 
(1) in subsection (b)— 
(A) in paragraph (2), by striking ‘‘and’’ at 
the end; 
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(B) in paragraph (3), by striking the pe-
riod and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(4) coordinate, without assuming operational 
authority, the United States Government response to 
malign foreign influence operations and cam-
paigns.’’; and 
(2) by adding at the end the following new sub-
sections: 
‘‘(g) COORDINATOR FOR COMBATING MALIGN FOR-
EIGN INFLUENCE OPERATIONS AND CAMPAIGNS.— 
‘‘(1) IN GENERAL.—The President shall des-
ignate an employee of the National Security Council 
to be responsible for the coordination of the inter-
agency process for combating malign foreign influ-
ence operations and campaigns. 
‘‘(2) CONGRESSIONAL BRIEFING.— 
‘‘(A) IN
GENERAL.—Not less frequently 
than twice each year, the employee designated 
under this subsection shall provide to the con-
gressional committees specified in subparagraph 
(B) a briefing on the responsibilities and activi-
ties of the individual under this subsection. 
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‘‘(B) COMMITTEES SPECIFIED.—The con-
gressional committees specified in this subpara-
graph are the following: 
‘‘(i) The Committees on Armed Serv-
ices, Foreign Affairs, and Oversight and 
Government Reform, and the Permanent 
Select Committee on Intelligence of the 
House of Representatives. 
‘‘(ii) The Committees on Armed Serv-
ices, Foreign Relations, and Homeland Se-
curity and Governmental Affairs, and the 
Select Committee on Intelligence of the 
Senate. 
‘‘(h) DEFINITION OF MALIGN FOREIGN INFLUENCE 
OPERATIONS AND CAMPAIGNS.—In this section, the term 
‘malign foreign influence operations and campaigns’ 
means the coordinated, integrated, and synchronized ap-
plication of national diplomatic, informational, military, 
economic, business, corruption, educational, and other ca-
pabilities by hostile foreign powers to foster attitudes, be-
haviors, decisions, or outcomes within the United States.’’. 
(b) STRATEGY.— 
(1) IN
GENERAL.—Not later than 9 months 
after the date of the enactment of this Act, the 
President, acting through the National Security 
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Council, shall submit to the congressional commit-
tees specified in paragraph (2) a strategy to counter 
malign foreign influence operations and campaigns 
(as such term is defined in section 101(h) of the Na-
tional Security Act of 1947 (50 U.S.C. 3021), as 
added by subsection (a)). 
(2) COMMITTEES
SPECIFIED.—The congres-
sional committees specified in this paragraph are the 
following: 
(A) The Committees on Armed Services, 
Foreign Affairs, and Oversight and Government 
Reform, and the Permanent Select Committee 
on Intelligence of the House of Representatives. 
(B) The Committees on Armed Services, 
Foreign Relations, and Homeland Security and 
Governmental Affairs, and the Select Com-
mittee on Intelligence of the Senate. 
SEC. 1043. WORKFORCE ISSUES FOR MILITARY REALIGN-
MENTS IN THE PACIFIC. 
Section 6(b)(1) of the Joint Resolution entitled ‘‘A 
Joint Resolution to approve the ‘Covenant To Establish 
a Commonwealth of the Northern Mariana Islands in Po-
litical Union With the United States of America’, and for 
other purposes’’, approved March 24, 1976 (48 U.S.C. 
1806(b)(1)) is amended— 
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(1) in subparagraph (A), by striking ‘‘during 
the transition program’’ and inserting ‘‘during the 
period beginning on the transition program effective 
date and ending on the later of September 30, 2020, 
or the last day of the transition period’’; 
(2) by amending subparagraph (B) to read as 
follows: 
‘‘(B) H-2B WORKERS.—In the case of an 
alien described in subparagraph (A) who seeks 
admission under section 101(a)(15)(H)(ii)(b) of 
the Immigration and Nationality Act (8 U.S.C. 
1101(a)(15)(H)(ii)(b)), the alien, if otherwise 
qualified, may, before the later of December 31, 
2023, or the last day of the transition period, 
be admitted under such section, notwith-
standing the requirement of such section that 
the service or labor be temporary, for a period 
of up to 3 years— 
‘‘(i) to perform service or labor on 
Guam or in the Commonwealth pursuant 
to any agreement entered into by a prime 
contractor or subcontractor calling for 
services or labor required for performance 
of a contact or subcontract for construc-
tion, repairs, renovations, or facility serv-
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ices that is directly connected to, or associ-
ated with, the military realignment occur-
ring on Guam and in the Commonwealth; 
or 
‘‘(ii) to perform service or labor as a 
health care worker (such as a nurse, physi-
cian assistant, or allied health professional) 
on Guam or in the Commonwealth, subject 
to the education, training, licensing, and 
other requirements of section 212(a)(5)(C) 
of the Immigration and Nationality Act (8 
U.S.C. 1182(a)(5)(C)), as applicable, ex-
cept that this clause shall not be construed 
to include graduates of medical schools 
coming to Guam or the Commonwealth to 
perform service or labor as members of the 
medical profession.’’; and 
(3) by adding at the end the following: 
‘‘(C) RETURNING
WORKERS.—After the 
end of the period described in subparagraph 
(A), any alien who was admitted to Guam or 
the Commonwealth pursuant to subparagraph 
(A) or (B) may again seek admission to Guam 
or 
the 
Commonwealth 
under 
section 
101(a)(15)(H)(ii)(b) of the Immigration and 
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Nationality 
Act 
(8 
U.S.C. 
1101(a)(15)(H)(ii)(b)) without being counted 
toward the numerical limitation of section 
214(g)(1)(B) 
of 
such 
Act 
(8 
U.S.C. 
1184(g))(1)(B)). Such an alien shall be consid-
ered to be a returning worker subject to sub-
paragraphs (B) and (C) of section 214(g)(9) of 
such Act (8 U.S.C. 1184(g)(9)). An alien may 
be considered to be a returning worker under 
this subparagraph only once.’’. 
SEC. 1044. MITIGATION OF OPERATIONAL RISKS POSED TO 
CERTAIN 
MILITARY 
AIRCRAFT 
BY 
AUTO-
MATIC DEPENDENT SURVEILLANCE-BROAD-
CAST EQUIPMENT. 
(a) IN GENERAL.—The Secretary of Transportation 
may not— 
(1) directly or indirectly require the installation 
of automatic dependent surveillance-broadcast (here-
inafter in this section referred to as ‘‘ADS-B’’) 
equipment on fighter aircraft, bomber aircraft, or 
other special mission aircraft owned or operated by 
the Department of Defense; 
(2) deny or reduce air traffic control services in 
United States airspace or international airspace del-
egated to the United States to any aircraft described 
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in paragraph (1) on the basis that such aircraft is 
not equipped with ADS-B equipment; or 
(3) restrict or limit airspace access for aircraft 
described in paragraph (1) on the basis such aircraft 
are not equipped with ADS-B equipment. 
(b) TERMINATION.—Subsection (a) shall cease to be 
effective on the date that the Secretary of Transportation 
and the Secretary of Defense jointly submit to the appro-
priate congressional committees notice that the Secre-
taries have entered into a memorandum of agreement or 
other similar agreement providing that fighter aircraft, 
bomber aircraft, and other special mission aircraft owned 
or operated by the Department of Defense that are not 
equipped or not yet equipped with ADS-B equipment will 
be reasonably accommodated for safe operations in the 
National Airspace System and provided with necessary air 
traffic control services. 
(c) RULE OF CONSTRUCTION.—Nothing in this sec-
tion may be construed to— 
(1) vest in the Secretary of Defense any author-
ity of the Secretary of Transportation or the Admin-
istrator of the Federal Aviation Administration 
under title 49, United States Code, or any other 
provision of law; 
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(2) vest in the Secretary of Transportation or 
the Administrator of the Federal Aviation Adminis-
tration any authority of the Secretary of Defense 
under title 10, United States Code, or any other 
provision of law; or 
(3) limit the authority or discretion of the Sec-
retary of Transportation or the Administrator of the 
Federal Aviation Administration to operate air traf-
fic control services to ensure the safe minimum sepa-
ration of aircraft in flight and the efficient use of 
airspace. 
(d) NOTIFICATION REQUIREMENT.—The Secretary 
of Defense shall provide to the Secretary of Transpor-
tation notification of any aircraft the Secretary of Defense 
designates as a special mission aircraft pursuant to sub-
section (e)(3). 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘appropriate congressional com-
mittees’’ means the congressional defense commit-
tees, the Committee on Transportation and Infra-
structure of the House of Representatives, and the 
Committee on Commerce, Science, and Transpor-
tation of the Senate. 
(2) The term ‘‘air traffic control services’’ 
means services used for the monitoring, directing, 
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control, and guidance of aircraft or flows of aircraft 
and for the safe conduct of flight, including commu-
nications, navigation, and surveillance services and 
provision of aeronautical information. 
(3) The term ‘‘special mission aircraft’’ means 
an aircraft the Secretary of Defense designates for 
a unique mission to which ADS-B equipment creates 
a unique risk. 
SEC. 1045. LIMITATION ON AVAILABILITY OF FUNDS FOR 
UNMANNED SURFACE VEHICLES. 
(a) LIMITATION.—None of the funds authorized to 
be appropriated by this Act or otherwise made available 
for fiscal year 2019 for the Department of Defense for 
the strategic capabilities office ghost fleet overlord un-
manned surface vehicle program may be obligated or ex-
pended until the Undersecretary of Defense for Research 
and Engineering, in coordination with the Secretary of the 
Navy, certifies to the congressional defense committees 
that— 
(1) such project accelerates development of the 
future unmanned surface vehicle program of the 
Navy; 
(2) the Commander of the Naval Sea Systems 
Command has been designated as the contracting of-
ficer for such project; and 
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(3) the desired procurement strategy for the 
ghost fleet overlord project is properly coordinated 
and not duplicative of the unmanned surface vehicle 
sea hunter program of the Navy. 
(b) RULE
OF CONSTRUCTION.—The limitation in 
subsection (a) shall not be construed to apply to any other 
unmanned surface vehicle program of the Department of 
Defense other than the program element specified in such 
subsection. 
SEC. 1046. PROGRAM FOR DEPARTMENT OF DEFENSE CON-
TROLLED UNCLASSIFIED INFORMATION IN 
THE HANDS OF INDUSTRY. 
(a) IN GENERAL.—The Secretary of Defense shall es-
tablish and implement a foreign ownership, control, or in-
fluence program for Department of Defense controlled un-
classified information in the hands of industry. The Sec-
retary may designate an entity or individual within the 
Department to take responsibility for such controlled un-
classified information and the oversight of the program. 
(b) PROGRAM REQUIREMENTS.—Under the program 
required by subsection (a), the Secretary shall require that 
prior to any company receiving controlled unclassified in-
formation or classified information, or becoming a cleared 
defense contractor— 
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(1) the company shall report to the Secretary 
any foreign— 
(A) direction or controlling interest of the 
company; or 
(B) access to intellectual property relating 
to classified information or controlled unclassi-
fied information; and 
(2) the Secretary shall determine if, on the 
basis of information reported under paragraph (1), 
the company should receive such information, includ-
ing if risk to the national security can be mitigated 
and how such mitigation would be enforced. 
SEC. 
1047. 
PROTECTION 
OF 
EMERGING 
AND 
FOUNDATIONAL TECHNOLOGIES. 
(a) LIST.—The Secretary of Defense shall establish 
and maintain a list of emerging and foundational tech-
nologies that are necessary for maintaining the national 
security technological advantage of the United States over 
foreign countries of special concern, as determined by the 
Secretary. 
(b) TECHNOLOGY
PROTECTION.—The Secretary 
should use the list under subsection (a) to inform activities 
carried out by the Secretary relating to technology protec-
tion, including under interagency processes conducted pur-
suant to Federal law. 
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SEC. 1048. AIRBORNE HAZARDS AND OPEN BURN PIT REG-
ISTRY. 
(a) EDUCATION CAMPAIGN.—Beginning not later 
than one year after the date of the enactment of this Act, 
the Secretary of Defense shall carry out an annual edu-
cation campaign to inform individuals who may be eligible 
to enroll in the Airborne Hazards and Open Burn Pit Reg-
istry of such eligibility. Each such campaign shall include 
at least one electronic method and one physical mailing 
method to provide such information. 
(b) AIRBORNE HAZARDS AND OPEN BURN PIT REG-
ISTRY DEFINED.—In this section, the term ‘‘Airborne 
Hazards and Open Burn Pit Registry’’ means the registry 
established by the Secretary of Veterans Affairs under sec-
tion 201 of the Dignified Burial and Other Veterans’ Ben-
efits Improvement Act of 2012 (Public Law 112–260; 38 
U.S.C. 527 note). 
SEC. 1049. EVALUATION OF PILOT SAFETY BY MILITARY 
AVIATION AND INSTALLATION ASSURANCE 
SITING CLEARINGHOUSE. 
(a) IN GENERAL.—Section 183a of title 10, United 
States Code, is amended— 
(1) by striking ‘‘unacceptable risk to the na-
tional security of the United States’’ each place it 
appears and inserting ‘‘unacceptable risk to military 
operations and readiness’’; and 
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(2) in subsection (h)— 
(A) in paragraph (1), by inserting ‘‘pilot 
safety,’’ after ‘‘flight operations,’’; and 
(B) by amending paragraph (7) to read as 
follows: 
‘‘(7) The term ‘unacceptable risk to military op-
erations and readiness’ means the construction, al-
teration, establishment, or expansion, or the pro-
posed construction, alteration, establishment, or ex-
pansion, of a structure or sanitary landfill, that the 
Secretary of Defense can demonstrate would— 
‘‘(A) endanger safety in air commerce di-
rectly related to the activities of the Depart-
ment of Defense; 
‘‘(B) interfere with the efficient use of the 
navigable airspace directly related to the activi-
ties of the Department of Defense; or 
‘‘(C) significantly impair or degrade the 
capability of the Department of Defense to— 
‘‘(i) ensure pilot safety; 
‘‘(ii) conduct training, research, devel-
opment, testing, and evaluation, and oper-
ations; or 
‘‘(iii) maintain military readiness.’’. 
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(b) CONFORMING AMENDMENT.—Section 44718 of 
title 49, United States Code, is amended by striking ‘‘un-
acceptable risk to the national security of the United 
States’’ each place it appears and inserting ‘‘unacceptable 
risk to military operations and readiness’’. 
SEC. 1050. SALE OF SURPLUS DEPARTMENT OF DEFENSE 
EQUIPMENT TO ELIGIBLE FARMERS. 
Section 2576a of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(g) SALE OF EQUIPMENT TO FARMERS.—(1) Dur-
ing the three-year period beginning on the date of the en-
actment of the National Defense Authorization Act for 
Fiscal Year 2019, the Secretary of Defense, in consulta-
tion with the Secretary of Agriculture, may transfer to eli-
gible farmers equipment of the Department of Defense 
that is— 
‘‘(A) appropriate for use by farmers; and 
‘‘(B) excess to the needs of the Department of 
Defense. 
‘‘(2) A farmer is eligible to purchase equipment under 
this subsection if the farmer is— 
‘‘(A) a veteran and a new and beginning farm-
er, as determined by the Secretary; and 
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‘‘(B) submits to the Secretary an application 
containing such information and assurances as the 
Secretary may require. 
‘‘(3) Equipment made available for transfer to farm-
ers under this subsection shall be made available to such 
farmers before such equipment is made available for public 
sale. 
‘‘(4) Not later than 60 days after the termination of 
the authority under this subsection, the Secretary shall 
submit to Congress a report on this subsection that in-
cludes the recommendations of the Secretary regarding 
the extension or expansion of the program.’’. 
SEC. 1050A. NATIONAL SECURITY COMMISSION ON ARTIFI-
CIAL INTELLIGENCE. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—There is established in the 
executive branch an independent Commission to re-
view advances in artificial intelligence, related ma-
chine learning developments, and associated tech-
nologies. 
(2) TREATMENT.—The Commission shall be 
considered an independent establishment of the Fed-
eral Government as defined by section 104 of title 
5, United States Code, and a temporary organiza-
tion under section 3161 of such title. 
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saging may be obligated or expended before the date that 
is 30 days after the date on which the Secretary submits 
the report required by subsection (a). 
SEC. 
1055. 
COMPREHENSIVE 
REVIEW 
OF 
PROFES-
SIONALISM AND ETHICS PROGRAMS FOR 
SPECIAL OPERATIONS FORCES. 
(a) REVIEW REQUIRED.—The Secretary of Defense, 
in coordination with the Secretaries of each of the military 
departments, shall conduct a comprehensive review of the 
ethics and professionalism programs of the United States 
Special Operations Command and of the military depart-
ments for officers and other military personnel serving in 
special operations forces. 
(b) ELEMENTS OF THE REVIEW.—The review con-
ducted under subsection (a) shall specifically include a de-
scription and assessment of each of the following: 
(1) The culture of professionalism and ethics of 
the United States Special Operations Command and 
affiliated component commands. 
(2) The ethics and professionalism programs of 
the military departments available for special oper-
ations forces. 
(3) The ethics and professionalism programs of 
the United States Special Operations Command and 
affiliated component commands. 
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(4) The roles and responsibilities of the military 
departments and the United States Special Oper-
ations Command and affiliated component com-
mands in administering, overseeing, managing, and 
ensuring compliance and participation of special op-
erations forces in ethics and professionalism pro-
grams, including an identification of— 
(A) gaps in the administration, oversight, 
and management of such programs and in en-
suring the compliance and participation in such 
programs; and 
(B) additional guidance that may be re-
quired for a systematic, integrated approach in 
administering, overseeing, and managing such 
programs and in ensuring compliance with and 
participation in such programs in order to ad-
dress issues and improve ethical culture and 
professionalism. 
(5) The management and oversight framework 
in place that is designed to ensure that all ethics 
and professionalism programs available to special 
operations forces meet Department standards. 
(6) Tools and metrics for identifying and as-
sessing individual and organizational ethics and pro-
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fessionalism issues with respect to special operations 
forces. 
(7) Tools and metrics for assessing the effec-
tiveness of existing ethics and professionalism pro-
grams in improving or addressing individual and or-
ganizational ethics-related and professionalism issues 
with respect to special operations forces. 
(8) Additional programs or actions that may be 
required to address or improve individual and orga-
nizational ethics and professionalism issues with re-
spect to special operations forces. 
(9) Actions to improve the oversight and ac-
countability by senior leaders of ethics and profes-
sionalism-related issues with respect to special oper-
ations forces. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘ethics program’’ means a pro-
gram that includes— 
(A) compliance-based ethics training, edu-
cation, initiative, or other activity that focuses 
on adherence to rules and regulations; and 
(B) values-based ethics training, education, 
initiative, or other activity that focuses on up-
holding a set of ethical principles in order to 
achieve high standards of conduct and incor-
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(5) Section 2817(a)(2) is amended by striking 
‘‘table of sections for’’ and inserting ‘‘table of sec-
tions at the beginning of subchapter IV of’’. 
(6) Section 2831(b) is amended by inserting ‘‘of 
title 10, United States Code,’’ after ‘‘chapter 173’’. 
(7) Section 2876(d) is amended— 
(A) by inserting ‘‘In this section:’’ after 
‘‘DEFINITIONS.—’’; and 
(B) in paragraph (1)(A), in the matter 
preceding clause (i), by inserting open quotation 
marks before ‘‘beneficial’’ and close quotation 
marks after ‘‘owner’’. 
(e) OTHER NDAAS.— 
(1) FY2016.—Section 828(c) of the National 
Defense Authorization Act for Fiscal Year 2016 
(Public Law 114–92; 10 U.S.C. 2430 note), as 
added by section 825(a)(4) of the National Defense 
Authorization Act for Fiscal Year 2018 (Public Law 
115–91; 131 Stat. 1466), is amended by inserting 
‘‘subsection’’ before ‘‘(b)’’. 
(2) FY2001.—Section 821(e) of the Floyd D. 
Spence National Defense Authorization Act for Fis-
cal Year 2001 (as enacted into law by Public Law 
106–398; 10 U.S.C. 2302 note) is amended by strik-
ing paragraph (2). 
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