493 
‘‘§ 1749. 
Field 
training 
for 
acquisition 
and 
sustainment 
‘‘(a) TRAINING PROGRAM.—Not later than 180 days 
after the date of the enactment of this section, the Under 
Secretary for Acquisition and Sustainment shall establish 
a training program that supports cross-functional per-
sonnel and contractors of the Department of Defense in-
volved in any phase of the acquisition and sustainment 
lifecycle in making important decisions with respect to ac-
quisition or sustainment, including requirements valida-
tion, the development of an acquisition strategy, awarding 
contracts, and ongoing management of performance and 
governance. 
‘‘(b) ELEMENTS.—The training program established 
under subsection (a) shall— 
‘‘(1) create deployable training teams to coach 
the cross-functional personnel and contractors de-
scribed in subsection (a) and facilitate such personnel 
and contractors successfully completing a phase of an 
acquisition or sustainment effort with the same train-
ing team to the maximum extent possible; 
‘‘(2) to the extent practicable, ensure that the 
same training team under paragraph (1) provides the 
support described under such paragraph with respect 
to a phase of an acquisition or sustainment effort 
until such phase is completed or otherwise ends;
494 
‘‘(3) provide to the cross-functional personnel 
and contractors described in subsection (a) short, 
intermittent lessons on innovative acquisition and 
fielding procedures, flexible contracting frameworks, 
and business negotiation skills that are timed to align 
the topics of the lessons to relevant activities under a 
phase of an acquisition or sustainment effort; 
‘‘(4) emphasizes— 
‘‘(A) the acquisition of commercial prod-
ucts, commercial services, and commercially 
available off-the-shelf items (as such terms are 
defined in sections 103, 103a, and 104, respec-
tively, of title 41); 
‘‘(B) technology procured ‘as-a-service’ or as 
a consumption-based solution (as defined in sec-
tion 834 of the William M. (Mac) Thornberry 
National Defense Authorization Act for Fiscal 
Year 2021 (10 U.S.C. 4571 note)); and 
‘‘(C) using the middle tier acquisition path-
ways under section 3602 of this title and the 
pathways under section 3603 of this title; and 
‘‘(5) include a process for collecting feedback on 
the training program and performance of the training 
teams to improve the training program.
495 
‘‘(c) TRAINING TEAM REQUIREMENTS.—Each training 
team created under the training program— 
‘‘(1) include at not less than one individual from 
the private sector or academia with expertise in con-
ducting commercial transactions; and 
‘‘(2) has excellent facilitation skills and can 
coach the cross-functional personnel and contractors 
described in subsection (a) on applying the best prac-
tices 
to 
the 
formulation 
of 
acquisition 
and 
sustainment programs and contracts; 
‘‘(d) CERTIFICATION.—The Under Secretary of Defense 
for Acquisition and Sustainment shall ensure that each 
member of the acquisition workforce who participates in the 
training program established under subsection (a) can meet 
up to 80 hours of a continuous education requirement estab-
lished under section 1723 of this title by participating in 
the training program. 
‘‘(e) PILOT PROGRAM.—During fiscal year 2025, the 
Secretary of each military department shall carry out not 
less than one pilot program— 
‘‘(1) under which the military department shall 
receive support under the training program estab-
lished under subsection (a) with respect to acquisition 
and sustainment efforts of high importance or ur-
gency to the military department; and
496 
‘‘(2) which the Under Secretary for Acquisition 
and Sustainment shall use to develop the training 
material and procedures for the training program. 
‘‘(f) FUNDING REQUIREMENTS.—The Under Secretary 
for Acquisition and Sustainment is authorized to use funds 
available for the Defense Acquisition University for civilian 
faculty members, contracts, and associated travel and ex-
penses to carry out the training program established in (a) 
starting in fiscal year 2025, and for fiscal years 2027 
through fiscal year 2031— 
‘‘(1) not less than 25 percent of civilian faculty 
members authorized under section 1746 of this title 
shall be detailed on a reimbursable basis to the train-
ing program established in (a) for a minimum of half 
of their time; and 
‘‘(2) not less than 25 percent of all contract or 
agreement obligations in support of Defense Acquisi-
tion University shall be reserved for the training pro-
gram established in (a), including the training of ci-
vilian faculty members to facilitate programs under 
the training program. 
‘‘(g) REPORT.—Not later than November 1, 2026, the 
Under Secretary for Acquisition and Sustainment shall 
provide a report to the Committees on Armed Services of
497 
the Senate and House of Representatives on the training 
program required under subsection (a), including— 
‘‘(1) the number and qualifications of civilian 
faculty members detailed to the training program 
under subsection (f)(1), including any training re-
quirements they receive to facilitate programs under 
the training program; 
‘‘(2) an identification of contractor or university 
support for the training program pursuant to sub-
section (f)(2); 
‘‘(3) a budget for the training program that 
meets the requirements of subsection (f); 
‘‘(4) the status and success of the pilot program; 
and 
‘‘(5) any additional information or recommenda-
tions with respect to the training program that the 
Under Secretary of Defense for Acquisition and 
Sustainment determines appropriate.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
chapter 87 of title 10, United States Code, is amended by 
inserting after the item relating to section 1748 the fol-
lowing new item: 
‘‘1749. Field training for acquisition and sustainment.’’.
498 
SEC. 833. EXTENSION OF DEMONSTRATION PROJECT RE-
LATING 
TO 
CERTAIN 
ACQUISITION 
PER-
SONNEL MANAGEMENT POLICIES AND PRO-
CEDURES. 
Section 1762(g) of title 10, United States Code, is 
amended by striking ‘‘December 31, 2026’’ and inserting 
‘‘December 31, 2031’’. 
SEC. 834. PERFORMANCE INCENTIVES RELATED TO COM-
MERCIAL PRODUCT AND COMMERCIAL SERV-
ICE DETERMINATIONS. 
Section 3453(b) of title 10, United States Code, is 
amended— 
(1) in paragraph (5), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (6), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding the following new paragraph: 
‘‘(7) establish criteria in performance evalua-
tions for appropriate personnel to reward risk-in-
formed decisions that maximize the acquisition of 
commercial products, commercial services, or non-
developmental items other than commercial prod-
ucts.’’.
499 
SEC. 835. MODIFICATION TO EXTRAMURAL ACQUISITION IN-
NOVATION AND RESEARCH ACTIVITIES. 
Section 4142 of title 10, United States Code, is amend-
ed— 
(1) by striking subsection (c); 
(2) by redesignating subsections (d), (e), and (f) 
as subsections (c), (d), and (e), respectively; 
(3) in subsection (a), by striking ‘‘subsection 
(d)’’ and inserting ‘‘subsection (c)’’; and 
(4) in subsection (e), as so redesignated, by strik-
ing ‘‘Director’’ and inserting ‘‘Under Secretary of De-
fense for Acquisition and Sustainment’’. 
SEC. 836. PROHIBITION ON THE TRANSFER OF CERTAIN 
DATA ON EMPLOYEES OF THE DEPARTMENT 
OF DEFENSE TO THIRD PARTIES. 
Section 4662 of title 10, United States Code, is amend-
ed— 
(1) in subsection (a)— 
(A) by striking ‘‘and that would be permis-
sible pursuant to statute or guidance from the 
Director of the Office of Management and Budg-
et.’’ and inserting a period; and 
(B) by inserting at the end the following: 
‘‘This provision does not apply in circumstances 
where the transfer of such data would otherwise 
be authorized by law.’’;
500 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) WAIVER.—The Secretary of Defense may waive 
the requirements of subsection (a) with respect to the sale, 
licensing, or other transfer of covered individually identifi-
able Department employee data if the Secretary determines 
that such waiver— 
‘‘(1) appropriately considers the privacy risks to 
the employee of the Department of Defense to which 
such data relates; and 
‘‘(2) is necessary in the interest of national secu-
rity.’’; 
(3) by redesignating subsection (c) as subsection 
(d); 
(4) by amending paragraph (1) of subsection (d), 
as so redesignated, to read as follows: 
‘‘(1) The term ‘covered individually identifiable 
Department employee data’ means individually iden-
tifiable Department employee data obtained by a con-
tractor or subcontractor described in subsection (a).’’; 
and 
(5) by inserting after subsection (b) the following 
new subsection: 
‘‘(c) REPORT.—Not later than January 15, 2026, and 
annually thereafter for four years, the Under Secretary of
501 
Defense for Acquisition and Sustainment, shall submit to 
the congressional defense committees a report on the use of 
the waiver authority under subsection (b) for the fiscal year 
preceding the date of submission of the report. The report 
shall include, for each use of the waiver— 
‘‘(1) the specific justification for providing the 
waiver; 
‘‘(2) an identification of the contractor or sub-
contractor that is the subject of the waiver request; 
and 
‘‘(3) an identification of the purpose of the sale, 
licensing, or transfer of covered individually identifi-
able Department employee data that is the subject of 
the waiver request.’’. 
SEC. 837. MODIFICATIONS TO CONTRACTOR EMPLOYEE 
PROTECTIONS FROM REPRISAL FOR DISCLO-
SURE OF CERTAIN INFORMATION. 
Section 4701(c) of title 10, United States Code, is 
amended— 
(1) by redesignating paragraphs (2), (3), (4), 
(5), (6), and (7) as paragraphs (3), (4), (5), (6), (7), 
and (8), respectively; 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph:
502 
‘‘(2) Not later than 30 days after receiving an Inspec-
tor General report pursuant to subsection (b), the head of 
the agency concerned shall notify the complainant and the 
Inspector General, in writing, of either the actions ordered 
or the decision to deny relief. After such notification, if the 
head of the agency concerned changes the actions ordered 
or the decision to deny relief, the head of the agency con-
cerned shall notify the complainant and the Inspector Gen-
eral, in writing, of the change not later than 30 days after 
the change occurs.’’; 
(3) in paragraph (3), as redesignated by para-
graph (1) of this section, by striking ‘‘paragraph 
(b)(2)(B)’’ and inserting ‘‘paragraph (2)(B) of such 
subsection’’; and 
(4) in paragraph (4), as so redesignated, by 
striking ‘‘paragraph (2)’’ and inserting ‘‘paragraph 
(3)’’. 
SEC. 838. DETAIL AUTHORITY FOR DEFENSE ADVANCED RE-
SEARCH PROJECTS AGENCY TO PROVIDE 
TECHNOLOGY TRANSITION SUPPORT. 
Section 806 of the National Defense Authorization Act 
for Fiscal Year 2024 (Public Law 118–31; 10 U.S.C. 1701 
note) is amended— 
(1) by redesignating subsections (d) and (e) as 
subsections (e) and (f), respectively; and
503 
(2) by inserting after subsection (c) the following 
new subsection: 
‘‘(d) DARPA DETAILEES AUTHORIZED.— 
‘‘(1) AUTHORITY.—The Director of the Defense 
Advanced Research Projects Agency, upon a request 
from the Principal Technology Transition Advisor of 
a military department, may detail personnel of the 
Agency to such military department for a period not 
to exceed one year to provide technology transition 
support for technology of the Agency that is to be ac-
quired by such military department. 
‘‘(2) EXTENSION.—The Under Secretary of De-
fense for Research and Engineering may extend a de-
tail under paragraph (1) for a period of not more 
than 6 additional months.’’. 
SEC. 839. EMPLOYMENT TRANSPARENCY REGARDING INDI-
VIDUALS WHO PERFORM WORK IN, FOR, OR 
ARE SUBJECT TO THE LAWS OR CONTROL OF 
THE PEOPLE’S REPUBLIC OF CHINA. 
Section 855 of the National Defense Authorization Act 
for Fiscal Year 2022 (Public Law 117–81; 10 U.S.C. 4651 
note prec.) is amended— 
(1) in subsection (a)—
504 
(A) in paragraph (1), by inserting ‘‘, for, or 
are subject to the laws or control of’’ after ‘‘per-
form work in’’; and 
(B) in paragraph (3)— 
(i) by redesignating subparagraphs (A) 
and (B) as clauses (i) and (ii) and moving 
such clauses, as so redesignated, two ems to 
the right; 
(ii) by striking ‘‘If a covered entity’’ 
and inserting ‘‘(A) IN GENERAL.—If a cov-
ered company’’; 
(iii) by inserting ‘‘, for, or are subject 
to the laws or control of’’ after ‘‘any indi-
vidual who will perform work in’’; 
(iv) in clause (i), as so redesignated, 
by striking ‘‘perform work in the People’s 
Republic of China’’ and inserting ‘‘perform 
such work’’; and 
(v) in clause (ii), as so redesignated— 
(I) by inserting ‘‘and each other 
location’’ after ‘‘China’’; and 
(II) by striking ‘‘performed.’’ and 
inserting the following: ‘‘performed; 
and
505 
‘‘(iii) whether an agency or instrumen-
tality of the People’s Republic of China or 
any other covered entity has requested ac-
cess to data or otherwise acquired data from 
the covered entity required to make a disclo-
sure under paragraph (1) or (2) pursuant 
to any law or regulation of the People’s Re-
public of China. 
‘‘(B) ADDITIONAL DISCLOSURE OF INFOR-
MATION AND ADDITIONAL MEASURES REGARDING 
CERTAIN ENTITIES.— 
‘‘(i) IN GENERAL.—If a covered entity 
performing a covered contract for services 
dealing with commercial computer software 
or noncommercial computer software and is 
required to make a disclosure under para-
graph (1) or (2), such covered entity shall— 
‘‘(I) describe the process for dis-
closing a cybersecurity vulnerability, if 
such covered entity is also required to 
disclose any cybersecurity vulnerability 
to the Ministry of Industry and Infor-
mation Technology or any other agen-
cy or instrumentality of the People’s 
Republic of China; and
506 
‘‘(II) provide any information re-
lated to how a United States affiliate 
is notified of a vulnerability described 
in subclause (I). 
‘‘(ii) ISSUANCE
OF
REGULATIONS.— 
Not later than 180 days after the date of the 
enactment of this subparagraph, the Sec-
retary shall revise the Defense Federal Ac-
quisition Regulation Supplement to re-
quire— 
‘‘(I) a covered entity to require 
that an individual or entity per-
forming work on a covered contract in 
the People’s Republic of China on be-
half of the covered entity to notify the 
covered entity within 48 hours of such 
individual or entity reporting any 
software vulnerability related to such 
covered contract to the Ministry of In-
dustry and Information Technology or 
any other agency or instrumentality of 
the People’s Republic of China; and 
‘‘(II) the covered entity to retain 
and furnish to the Department of De-
fense information regarding any cyber-
507 
security vulnerability reported to the 
Ministry of Industry and Information 
Technology or any other agency or in-
strumentality of the People’s Republic 
of China with respect to which the cov-
ered entity received a notice pursuant 
to subclause (I).’’; and 
(2) in subsection (d)— 
(A) in paragraph (1), by striking ‘‘with a 
value in excess of $5,000,000, excluding’’ and in-
serting ‘‘for, or including, any information and 
communications technology, including’’; and 
(B) in paragraph (2), by inserting ‘‘, for, or 
subject to the laws or control of’’ after ‘‘a covered 
contract in’’. 
SEC. 840. DESIGNATION OF PROGRAM EXECUTIVE OFFICE 
FOR ACQUISITION OF OPEN-SOURCE INTEL-
LIGENCE TOOLS FOR ARMY. 
(a) IN GENERAL.—The Secretary of the Army may 
designate an existing program executive office within the 
Army to be responsible for the acquisition of open-source 
intelligence tools for the Army. 
(b) RESPONSIBILITIES.—If the Secretary of the Army 
designates an existing program office under subsection (a), 
that office shall be responsible for the selection, procurement,
508 
and evaluation of open-source intelligence tools for the 
Army. 
(c) OPEN-SOURCE INTELLIGENCE TOOLS DEFINED.— 
In this section, the term ‘‘open-source intelligence tools’’ has 
the meaning given that term in section 430b(d) of title 10, 
United States Code. 
Subtitle D—Provisions Relating to 
Supply Chains and Domestic 
Sourcing 
SEC. 841. ENHANCING REQUIREMENTS FOR INFORMATION 
RELATING TO SUPPLY CHAIN RISK. 
Section 3252 of title 10, United States Code, is amend-
ed— 
(1) in subsection (b)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) consulting with procurement or other rel-
evant officials of the covered agency;’’; 
(B) in paragraph (2), by striking ‘‘with the 
concurrence of the Under Secretary of Defense for 
Acquisition and Sustainment,’’; and 
(C) in paragraph (3)— 
(i) by amending subparagraph (A) to 
read as follows:
509 
‘‘(A) a summary of the risk assessment that 
serves as the basis for the written determination 
required by paragraph (2); and’’; 
(ii) by striking subparagraphs (B) and 
(C); and 
(iii) by redesignating subparagraph 
(D) as subparagraph (B); 
(2) by striking subsection (c); and 
(3) by redesignating subsections (d) and (e) as 
subsections (c) and (d), respectively. 
SEC. 842. DOMESTIC PRODUCTION OF STAINLESS STEEL 
FLATWARE AND DINNERWARE. 
(a) IN GENERAL.—Section 4862(b) of title 10, United 
States Code, is amended by inserting after paragraph (2) 
the following new paragraphs: 
‘‘(3) Stainless steel flatware. 
‘‘(4) Dinnerware.’’. 
(b) EFFECTIVE DATE.—Paragraphs (3) and (4) of sec-
tion 4862(b) of title 10, United States Code, as added by 
subsection (a), shall take effect on January 1, 2026. 
(c) SUNSET.—Paragraphs (3) and (4) of section 
4862(b) of title 10, United States Code, as added by sub-
section (a), are repealed effective January 1, 2029.
510 
SEC. 
843. 
CLARIFICATION 
OF 
EXCEPTION 
TO 
BERRY 
AMENDMENT REQUIREMENTS FOR PROCURE-
MENT OF VESSELS IN FOREIGN WATERS. 
Section 4862(d)(2) of title 10, United States Code, is 
amended by inserting ‘‘, or for,’’ after ‘‘Procurements by’’. 
SEC. 844. TECHNICAL EDITS TO SOURCING REQUIREMENTS 
FOR STRATEGIC MATERIALS AND SENSITIVE 
MATERIALS. 
(a) STRATEGIC MATERIALS.—Section 4863 of title 10, 
United States Code, is amended— 
(1) in subsection (b)— 
(A) in paragraph (1), by inserting ‘‘at a 
reasonable price’’ after ‘‘when needed’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(3) The authority in subsection (b)(1)— 
‘‘(A) may be delegated to the head of contracting 
activity for the relevant component for an exception 
for a single acquisition program; 
‘‘(B) may be delegated to the senior acquisition 
executive of a military department for an exception 
for multiple programs within such military depart-
ment; and 
‘‘(C) may be delegated to the Undersecretary of 
Defense for Acquisition and Sustainment for an ex-
ception for more than one military department.’’;
511 
(2) in subsection (c)(1)— 
(A) by striking ‘‘in support of combat oper-
ations or’’; and 
(B) by inserting ‘‘or for use outside of the 
United States’’ after ‘‘contingency operations’’; 
and 
(3) in subsection (k)— 
(A) in paragraph (1), by inserting ‘‘or the 
Secretary of the military department concerned’’ 
after ‘‘Secretary of Defense’’; and 
(B) by amending subparagraph (2)(A) to 
read as follows: 
‘‘(A) may be delegated— 
‘‘(i) to the senior acquisition executive of the 
military department concerned for a waiver for 
one or more acquisition programs within the 
such military department; and 
‘‘(ii) to the Deputy Secretary of Defense or 
the Under Secretary of Defense for Acquisition 
and Sustainment for a waiver applicable to 
more than one military department;’’. 
(b) SENSITIVE MATERIALS.—Section 4872 of title 10, 
United States Code, is amended—
512 
(1) in subsection (a), in the matter preceding 
paragraph (1), by inserting ‘‘or (e)’’ after ‘‘subsection 
(c)’’; 
(2) in subsection (c)— 
(A) in paragraph (1), by inserting ‘‘or the 
Secretary of the military department concerned’’ 
after ‘‘Secretary of Defense’’; and 
(B) in paragraph (2), by inserting ‘‘in sup-
port of contingency operations or’’ before ‘‘for use 
outside’’; 
(3) by redesignating subsection (d) as subsection 
(f); and 
(4) by inserting after subsection (c) the following 
new subsections: 
‘‘(d) DELEGATION.—The authorities in subsection 
(c)— 
‘‘(1) may be delegated to the head of contracting 
activity for the relevant component for an exception 
for a single acquisition program; 
‘‘(2) may be delegated to the senior acquisition 
executive of a military department for an exception 
for multiple programs within such military depart-
ment; and
513 
‘‘(3) may be delegated to the Undersecretary of 
Defense for Acquisition and Sustainment for an ex-
ception for more than one military department. 
‘‘(e) NATIONAL SECURITY WAIVER.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(a), the Secretary of Defense of the Secretary or the 
Secretary of the military department concerned, may 
accept the delivery of an end item containing covered 
material manufactured in a covered nation if the Sec-
retary determines in writing that acceptance of such 
end item is necessary to the national security inter-
ests of the United States. 
‘‘(2) DELEGATION.—A written determination 
under paragraph (1)— 
‘‘(A) may be delegated— 
‘‘(i) to the senior acquisition executive 
of the military department concerned for a 
waiver for one or more acquisition pro-
grams within such military department; 
and 
‘‘(ii) to the Deputy Secretary of De-
fense or the Under Secretary of Defense for 
Acquisition and Sustainment for a waiver 
applicable to more than one military de-
partment;
514 
‘‘(B) shall specify the quantity of end items 
to which the waiver applies and the time period 
over which the waiver applies; and 
‘‘(C) shall be provided to the congressional 
defense committees prior to making such a deter-
mination (except that in the case of an urgent 
national security requirement, such certification 
may be provided to the defense committees up to 
7 days after it is made).’’. 
SEC. 845. AMENDMENT TO REQUIREMENT TO BUY STRA-
TEGIC MATERIALS CRITICAL TO NATIONAL 
SECURITY FROM AMERICAN SOURCES. 
Section 4863 of title 10, United States Code, is amend-
ed— 
(1) in subsection (d)(1)(B), by inserting ‘‘quali-
fying’’ before ‘‘foreign’’; and 
(2) in subsection (m), by adding at the end the 
following new paragraph: 
‘‘(11) The term ‘qualifying foreign government’ 
means the government of a country with which the 
United States has in effect a reciprocal defense pro-
curement agreement or memorandum of under-
standing entered into pursuant to section 4851 of this 
title.’’.
515 
SEC. 846. MODIFICATION TO MISCELLANEOUS LIMITATIONS 
ON THE PROCUREMENT OF GOODS OTHER 
THAN UNITED STATES GOODS. 
Section 4864(k) of title 10, United States Code, is 
amended— 
(1) by striking the second sentence; 
(2) by inserting ‘‘(1)’’ before ‘‘Subsection (a)(3)’’; 
and 
(3) by adding at the end the following new para-
graph: 
‘‘(2) For purposes of this subsection, the term ‘auxil-
iary ship’— 
‘‘(A) with respect to a contract entered into after 
December 20, 2019, does not include an icebreaker or 
a special mission ship; and 
‘‘(B) with respect to a contract entered into on 
or after the date of the enactment of the National De-
fense Authorization Act for Fiscal Year 2025, includes 
an icebreaker or a special mission ship, unless the 
Secretary of the Navy certifies to Congress that the 
forecasted sales over a four-year period of large me-
dium-speed diesel engines manufactured in the na-
tional technology and industrial base will not fall 
below the minimum sustaining rate for plant oper-
ations of a diminishing manufacturing source.’’.
516 
SEC. 847. INCLUSION OF RECYCLED AND REUSED MIN-
ERALS AND METALS IN PREFERENCE FOR 
SOURCING OF STRATEGIC AND CRITICAL MA-
TERIALS. 
Section 848(b) of the William M. (Mac) Thornberry 
National Defense Authorization Act for Fiscal Year 2021 
(Public Law 116–283; 134 Stat. 3769; 10 U.S.C. 4811 note) 
is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (B), by inserting ‘‘, 
including processing of strategic and critical ma-
terials derived from recycled or reused minerals 
or metals,’’ after ‘‘United States’’; and 
(B) in subparagraph (C), by inserting ‘‘, 
including such materials derived from recycled 
or reused minerals or metals,’’ after ‘‘materials’’; 
and 
(2) in paragraph (2)— 
(A) in subparagraph (C), by striking ‘‘; 
and’’ and inserting a semicolon; 
(B) by redesignating subparagraph (D) as 
subparagraph (E); and 
(C) by inserting after subparagraph (C) the 
following new subparagraph (D): 
‘‘(D) the development of cost-effective sources 
of supply of strategic and critical materials de-
517 
rived from recycled or reused minerals or metals; 
and’’. 
SEC. 848. DOMESTIC NONAVAILABILITY DETERMINATIONS 
LIST. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Under Secretary of 
Defense for Acquisition and Sustainment shall develop and 
maintain a list of all domestic nonavailability determina-
tions. 
(b) SUBMISSION TO CONGRESS.—Not later than 30 
days after the Under Secretary for Acquisition and 
Sustainment develops the list required under subsection (a), 
and annually thereafter, the Under Secretary for Acquisi-
tion and Sustainment shall submit to Congress a list of all 
domestic nonavailability determinations made during the 
one year period ending on the date on which the Under 
Secretary for Acquisition and Sustainment submits such 
list. 
(c) PLAN FOR INFORMING INDUSTRY.—Not later than 
30 days after the Under Secretary of Defense for Acquisition 
and Sustainment develops the list required under subsection 
(a), the Under Secretary for Acquisition and Sustainment 
shall develop a plan for sharing such list with industry 
partners.
518 
(d) DOMESTIC NONAVAILABILITY DETERMINATION DE-
FINED.—In this section, the term ‘‘domestic nonavailability 
determination’’ means a determination made for purposes 
of providing an availability exception pursuant to section 
4862(c) of title 10, United States Code. 
SEC. 849. SUPPLY CHAIN ILLUMINATION INCENTIVES. 
(a) IN GENERAL.—Not later than April 1, 2026, the 
Secretary of Defense shall develop and implement policies, 
procedures, and tools to incentivize each contractor of the 
Department of Defense to assess and monitor the entire sup-
ply chain of goods and services provided to the Department 
by such contractor to identify potential vulnerabilities and 
noncompliance risks with respect to such goods and services. 
(b) BRIEFING.—Not later than September 30, 2025, 
the Secretary of Defense shall provide to the Committees on 
Armed Services of the Senate and House of Representatives 
a briefing on the development and implementation of the 
policies, procedures, and tools under subsection (a), includ-
ing information on obstacles to developing and imple-
menting such policies, if any, and additional authorities 
or resources required to develop and implement such poli-
cies.
519 
SEC. 850. REPORT AND UPDATED GUIDANCE ON CONTIN-
UED 
RISK 
MANAGEMENT 
FOR 
PHARMA-
CEUTICAL SUPPLY CHAINS OF DEPARTMENT 
OF DEFENSE. 
(a) IN GENERAL.—Not later than two years after the 
date of the enactment of this Act, the Under Secretary of 
Defense for Acquisition and Sustainment shall— 
(1) submit to the Committees on Armed Services 
of the Senate and the House of Representatives a re-
port on— 
(A) existing information streams within the 
Federal Government, if any, for excipients and 
key starting materials for final drug products 
that may be used to assess the reliance by the 
Department of Defense on high-risk foreign sup-
pliers analyzed in the report required under sec-
tion 860(a) of the National Defense Authoriza-
tion Act for Fiscal Year 2023 (Public Law 117– 
263; 136 Stat. 2734; 10 U.S.C. 3241 note prec.); 
(B) active pharmaceutical ingredients, final 
drug products, and respective excipients and key 
starting materials analyzed in such report that 
are manufactured in a high-risk foreign country, 
as determined by the Secretary of Defense; 
(C) any limitations on the ability of the 
Secretary to—
520 
(i) obtain or analyze the information 
identified under subparagraphs (A) and 
(B); 
(ii) monitor the temperature of active 
pharmaceutical 
ingredients, 
final 
drug 
products, and respective excipients and key 
starting materials throughout the supply 
chain of the Department; and 
(iii) use data analytics to monitor 
vulnerabilities in the pharmaceutical sup-
ply chain of the Department; 
(D) how the Secretary plans to address the 
limitations identified under subparagraph (C); 
and 
(E) any recommendations of the Secretary 
to address those limitations; and 
(2) update risk management guidance developed 
by the Under Secretary under section 860(a)(1) of the 
National Defense Authorization Act for Fiscal Year 
2023 (Public Law 117–263; 10 U.S.C. 3241 note 
prec.) to include any relevant findings identified in 
paragraph (1). 
(b) FDA DETERMINATIONS.—For the purposes of this 
section, the excipients and key starting materials for final 
drug products shall be such excipients and key starting ma-
521 
terials as determined by the Food and Drug Administration 
or under regulations issued by the Food and Drug Adminis-
tration. 
Subtitle E—Prohibitions and 
Limitations on Procurement 
SEC. 851. PROHIBITION ON CONTRACTING WITH COVERED 
ENTITIES THAT CONTRACT WITH LOBBYISTS 
FOR CHINESE MILITARY COMPANIES. 
(a) IN GENERAL.—Chapter 363 of title 10, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 4663. Prohibition on contracting with covered enti-
ties that contract with lobbyists for Chi-
nese military companies 
‘‘(a) PROHIBITION ON ENTERING INTO CONTRACTS 
WITH COVERED ENTITIES.—Except as provided in sub-
section (c), the Secretary of Defense may not enter into a 
contract with an entity, a parent company of such entity, 
or a subsidiary of such entity is a party to a contract with 
a covered lobbyist. 
‘‘(b) EXCEPTION.—The prohibition in subsection (a) 
shall not apply with respect to an entity that made reason-
able inquires regarding the lobbying activities of another 
entity and determined such entity was not a covered lob-
byist.
522 
‘‘(c) WAIVER.—Upon notification to Congress, the Sec-
retary of Defense may waive the requirements of this sec-
tion. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘covered lobbyist’ means an entity 
that engages in lobbying activities for any entity de-
termined to be a Chinese military company listed in 
accordance with section 1260H of the William M. 
(Mac) Thornberry National Defense Authorization Act 
for Fiscal Year 2021 (10 U.S.C. 113 note). 
‘‘(2) The term ‘lobbying activities’ has the mean-
ing given in section 1045(c) of the National Defense 
Authorization Act for Fiscal Year 2018 (10 U.S.C. 
971 note prec.).’’. 
(b) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on June 30, 
2026. 
SEC. 852. NOTIFICATION OF CHANGES TO CERTAIN TRANS-
PORTATION CONTRACTS. 
(a) IN GENERAL.—The Secretary of Defense shall pro-
vide a written notification and briefing to the congressional 
defense committees not later than 90 days before the date 
on which the Secretary will implement any rule, regulation, 
or policy change which would—
523 
(1) waive, exempt, or reduce any requirement, 
including any security clearance requirements, re-
garding transportation protective services for any 
transportation service provider; or 
(2) allow the award of a contract or order to a 
transportation service provider for any shipment that 
requires any transportation protective service if such 
transportation service provider is not authorized by 
the Department of Defense to transport cargo regard-
ing such a transportation protective service. 
(b) TRANSPORTATION PROTECTIVE SERVICE; TRANS-
PORTATION SERVICE PROVIDER DEFINED.—In this section, 
the terms ‘‘transportation protective service’’ and ‘‘trans-
portation service provider’’ have the meanings given such 
terms, respectively, in the publication of the Military Sur-
face Deployment and Distribution Command of the Depart-
ment of Defense issued September 12, 2022, and titled 
‘‘MILITARY FREIGHT TRAFFIC UNIFIED RULES 
PUBLICATION-1 (MFTURP-1)’’, or any successor thereto.
524 
SEC. 853. PROHIBITION ON PROCUREMENT OF COVERED 
SEMICONDUCTOR PRODUCTS AND SERVICES 
FROM 
COMPANIES 
PROVIDING 
COVERED 
SEMICONDUCTOR PRODUCTS AND SERVICES 
TO HUAWEI. 
(a) PROHIBITION.—Beginning on the date that is 270 
days after the enactment of this Act, the Secretary of De-
fense shall not enter into or renew a contract for the pro-
curement of any covered semiconductor products and serv-
ices for the Department of Defense with any entity that 
knowingly provides covered semiconductor products and 
services to Huawei. 
(b) CERTIFICATION PROCESS.—The Secretary of De-
fense shall, not later than the date on which the prohibition 
in subsection (a) takes effect, develop and implement a proc-
ess requiring each entity seeking to provide covered semi-
conductor products and services to the Department of De-
fense to certify to the Department that such entity is not 
an entity covered by such prohibition. 
(c) WAIVER.—The Secretary of Defense may waive the 
prohibition under subsection (a) on a case-by-case basis as 
may be necessary in the interest of national security, if the 
Secretary determines that the covered semiconductor prod-
ucts and services to be acquired are— 
(1) only available from an entity otherwise cov-
ered by such prohibition; and
525 
(2) are required for national security systems or 
priority missions of the Department of Defense. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘covered semiconductor products 
and services’’ means— 
(A) semiconductors; 
(B) equipment for manufacturing semi-
conductors; and 
(C) tools for designing semiconductors. 
(2) The term ‘‘Huawei’’ means— 
(A) Huawei Technologies Company; 
(B) any entity that is a subsidiary, owner, 
beneficial owner, affiliate, or successor of 
Huawei Technologies Company; and 
(C) any entity that is directly or indirectly 
controlled by Huawei Technologies Company. 
SEC. 854. PROHIBITION ON CONTRACTS FOR ONLINE TU-
TORING SERVICES. 
The Secretary of Defense may not enter into a contract 
for online tutoring services which could result in personal 
data of citizens of the United States being transferred to 
the control of the People’s Republic of China.
526 
SEC. 855. LIMITATION ON AVAILABILITY OF FUNDS FOR 
COVERED CONTRACTORS ENGAGED IN AN 
ANTI-ISRAEL BOYCOTT. 
(a) LIMITATION.—None of the funds authorized to be 
appropriated or otherwise made available for fiscal year 
2025 for the Department of Defense may be obligated or 
expended to knowingly enter into a contract for goods or 
services for the Defense Commissary Agency on or after the 
date of the enactment of this Act with a covered contractor 
that has engaged in, or engages in, a boycott of the State 
of Israel. 
(b) DEFINITIONS.—In this section: 
(1) The term ‘‘boycott of the State of Israel’’ 
means engaging in a boycott action targeting— 
(A) the State of Israel; 
(B) companies or individuals doing busi-
ness in, or with, the State of Israel; or 
(C) companies authorized by, licensed by, or 
organized, under the laws of the State of Israel, 
to do business. 
(2) The term ‘‘company’’ means an entity on the 
Department of Commerce Antiboycott Compliance Re-
quester List maintained under section 1773 of the 
Anti-Boycott Act of 2018 (part II of title XVII of 
Public Law 115–232; 50 U.S.C. 4842).
527 
(3) The term ‘‘covered contractor’’ means a con-
tractor that has provided or agreed to provide goods 
or services to the Defense Commissary Agency in a 
total amount greater than or equal to $10,000,000 
during the period beginning on October 1, 2023, and 
ending on September 30, 2025. 
SEC. 856. PROCUREMENT OF CLEANING PRODUCTS. 
The Secretary of Defense shall procure, to the max-
imum extent practicable, only those cleaning products that 
are identified— 
(1) under the Safer Choice program; or 
(2) by an independent third-party organization 
that provides certifications in a manner consistent 
with the Safer Choice program. 
SEC. 857. PLAN FOR PRODUCTION OF COVERED MUNITIONS 
FOR PROCUREMENT BY THE DEPARTMENT OF 
DEFENSE. 
(a) PLAN.—Not later than 120 days after the date of 
the enactment of this Act, the Secretary of Defense shall de-
velop a plan for the production by private entities of cov-
ered munitions for procurement by the Department of De-
fense. 
(b) ELEMENTS.—The plan required under subsection 
(a) shall include a detailed description of challenges related
528 
to the procurement of covered munitions, and proposed ac-
tions to remediate such challenges, in the following areas: 
(1) Regulations for net explosive weight or other 
environmental and safety considerations for covered 
munitions. 
(2) Intellectual property rights law and regula-
tions applicable to the procurement of covered muni-
tions. 
(3) Methods to reimburse intellectual property 
holders and private entities for potential expenses in-
curred in the production of covered munitions. 
(4) Manufacturing and testing equipment lead 
times. 
(5) Considerations relating to technical data, 
personnel transparency, and the ability of individuals 
to move between positions in the Federal Government 
and positions at entities that produce covered muni-
tions. 
(6) Workforce training. 
(7) Any other challenges the Secretary deter-
mines necessary. 
(c) SELECTION OF COVERED MUNITIONS.—Not later 
than June 1, 2025, the Secretary of Defense shall designate 
a minimum of two and a maximum of four covered muni-
529 
tions from at least two military departments for inclusion 
in the plan required under subsection (a). 
(d) USE OF INNOVATIVE INTELLECTUAL PROPERTY 
STRATEGIES.—The Secretary of Defense may consider the 
use of innovative intellectual property strategies pursuant 
to section 808 of the National Defense Authorization Act 
for Fiscal Year 2024 (Public Law 118–31; 10 U.S.C. 3791 
note) in developing the plan required under subsection (a). 
(e) BRIEFING REQUIREMENT.—Not later than 90 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall brief the congressional defense committees 
on the status and progress of the development of the plan. 
(f) COVERED MUNITIONS DEFINED.—In this section, 
the term ‘‘covered munitions’’ means licensed munitions, 
test platforms for munitions, or weapon systems, includ-
ing— 
(1) munitions, test platforms, or weapon systems 
that could— 
(A) replace stocks of munitions, test plat-
forms, or weapon systems, as applicable, to meet 
the Out-Year Unconstrained Total Munitions Re-
quirement (as defined in section 222c of title 10, 
United States Code); or 
(B) deliver similar effects as munitions, test 
platforms, or weapon systems in use by the De-
530 
partment of Defense on the date of the enactment 
of this Act; and 
(2) munitions, test platforms, or weapon sys-
tems— 
(A) selected for inclusion in the plan re-
quired under subsection (a); and 
(B) for which an intellectual property hold-
er or owner of such munitions, test platforms, or 
weapon systems agrees to such inclusion. 
SEC. 858. PROCUREMENT OF COVERED HEARING PROTEC-
TION DEVICES. 
(a) IN GENERAL.—The Secretary of Defense, in coordi-
nation with the head of the Hearing Center of Excellence, 
may enter into one or more contracts to procure covered 
hearing protection devices for members of the Armed Forces. 
(b) PRIORITIZATION.—The Secretary shall prioritize 
the award of such a contract to a domestic offeror. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘covered hearing protection device’’ 
means an active hearing protection device— 
(A) that is a commercially available off-the- 
shelf item (as defined in section 104 of title 41, 
United States Code); and 
(C) that has been identified, tested, and 
qualified by the Hearing Center of Excellence.
531 
(2) The term ‘‘Hearing Center of Excellence’’ 
means the center of excellence for hearing loss and au-
ditory system injury established pursuant to section 
721 of the Duncan Hunter National Defense Author-
ization Act for Fiscal Year 2009 (Public Law 110– 
417). 
Subtitle F—Industrial Base Matters 
SEC. 861. CODIFICATION AND MODIFICATION OF PILOT 
PROGRAM TO ACCELERATE THE PROCURE-
MENT AND FIELDING OF INNOVATIVE TECH-
NOLOGIES. 
(a) IN GENERAL.—Chapter 253 of title 10, United 
States Code, as amended by this title, is further amended 
by adding at the end the following new section: 
‘‘§ 3604. Program to accelerate the procurement and 
fielding of innovative technologies 
‘‘(a) PROGRAM.—Subject to availability of appropria-
tions, the Secretary of Defense shall establish a competitive, 
merit-based program to accelerate the procurement and 
fielding of innovative technologies by, with respect to such 
technologies— 
‘‘(1) reducing acquisition or life-cycle costs; 
‘‘(2) addressing technical risks; 
‘‘(3) improving the timeliness and thoroughness 
of test and evaluation outcomes; and
532 
‘‘(4) rapidly implementing such technologies to 
directly support defense missions. 
‘‘(b) GUIDELINES.— 
‘‘(1) IN
GENERAL.—The Secretary shall issue 
guidelines for the operation of the program established 
under this section. 
‘‘(2) CONTENTS.—At a minimum, the guidelines 
for the operation of the program established under 
this section required under paragraph (1) shall pro-
vide for the following: 
‘‘(A) The issuance of one or more solicita-
tions for proposals by the Department of Defense 
in support of the program, with a priority estab-
lished for technologies developed by small busi-
ness concerns (as defined under section 3 of the 
Small Business Act (15 U.S.C. 632)) or non-
traditional defense contractors (as defined under 
section 3014 of this title). 
‘‘(B) The issuance of not more than two so-
licitations for proposals by the Department of 
Defense in support of the program each fiscal 
year for innovative technologies from entities 
that, during the one-year period preceding the 
issuance of the solicitation, have not performed 
on contracts and subcontracts for the Depart-
533 
ment under which the aggregate obligations of 
the Department to such entity for such period ex-
ceeds $400,000,000. 
‘‘(C) A process for— 
‘‘(i) the review of proposals received in 
response to a solicitation issued under sub-
paragraph (A) by the Secretary of Defense 
and by each Secretary of a military depart-
ment; 
‘‘(ii) the merit-based selection of the 
most promising cost-effective proposals; and 
‘‘(iii) the procurement of goods or serv-
ices offered by such a proposal through con-
tracts, cooperative agreements, other trans-
action authority, or by another appropriate 
process. 
‘‘(c) MAXIMUM AMOUNT.—The total amount of fund-
ing provided for any proposal selected for an award under 
the program established under this section shall not exceed 
$50,000,000, unless the Secretary (or designee of the Sec-
retary) approves a greater amount of funding. 
‘‘(d) DATA COLLECTION.— 
‘‘(1) PLAN
REQUIRED
BEFORE
IMPLEMENTA-
TION.—The Secretary of Defense may not provide
534 
funding under this section until the date on which the 
Secretary— 
‘‘(A) completes a plan for carrying out the 
data collection required under paragraph (2); 
and 
‘‘(B) submits the plan to the congressional 
defense committees. 
‘‘(2) DATA
COLLECTION
REQUIRED.—The Sec-
retary of Defense shall collect and analyze data on the 
program established under this section for the pur-
poses of— 
‘‘(A) developing and sharing best practices 
for achieving the objectives of the program; 
‘‘(B) providing information on the imple-
mentation of the program and related policy 
issues; and 
‘‘(C) reporting to the congressional defense 
committees as required under subsection (e). 
‘‘(e) BIANNUAL REPORT.—Not later than March 1 and 
September 1 of each year beginning after the date of the 
enactment of this section, the Secretary of Defense shall sub-
mit to the congressional defense committees a report on the 
program established under this section. 
‘‘(f) CONGRESSIONAL NOTIFICATION.—The Secretary 
of Defense shall notify the congressional defense committees
535 
within 30 days after funding has been provided for a pro-
posal selected for an award under the program established 
under this section.’’. 
(b) REPEAL OF SUPERCEDED AUTHORITY.—Section 
834 of the National Defense Authorization Act for Fiscal 
Year 2022 (Public Law 117–81; 10 U.S.C. 4061 note) is 
repealed. 
SEC. 862. PROGRAM FOR DISTRIBUTION SUPPORT AND 
SERVICES FOR CONTRACTORS. 
Section 883 of the National Defense Authorization Act 
for Fiscal Year 2017 (Public Law 114–328; 10 U.S.C. 4292 
note prec.) is amended— 
(1) in the section heading, by striking ‘‘PILOT 
PROGRAM
FOR
DISTRIBUTION
SUPPORT
AND 
SERVICES
FOR
WEAPON
SYSTEMS
CONTRAC-
TORS’’ and inserting ‘‘PROGRAM FOR DISTRIBU-
TION SUPPORT AND SERVICES FOR CONTRAC-
TORS’’; 
(2) in subsection (a)— 
(A) by striking ‘‘eight-year pilot’’; and 
(B) by striking ‘‘for the production, modi-
fication, maintenance, or repair of a weapon 
system that is’’; 
(3) by amending subsection (b) to read as fol-
lows:
536 
‘‘(b) SUPPORT CONTRACTS.—Any storage and dis-
tribution services to be provided under the program under 
this section to a contractor in support of the performance 
of a contract described in subsection (a) shall be provided 
under a separate contract that is entered into by the Direc-
tor of the Defense Logistics Agency with that contractor. 
The requirements of section 2208(h) of title 10, United 
States Code, and the regulations prescribed pursuant to 
such section shall apply to any such separate support con-
tract between the Director of the Defense Logistics Agency 
and the contractor.’’; 
(4) in subsection (c), by striking ‘‘contract de-
scribed in subsection (a) are storage and distribution’’ 
and inserting ‘‘contract entered into by the Depart-
ment include storage and distribution’’; 
(5) in subsection (d)— 
(A) by striking the term ‘‘pilot’’ each place 
it appears; 
(B) in paragraph (1)— 
(i) by striking ‘‘A requirement for the 
solicitation of offers for a contract described 
in subsection (a), for which storage and dis-
tribution services are to be made available’’ 
and inserting ‘‘A requirement to notify a 
contractor or potential contractor for which
537 
storage and distribution services are to be 
made available’’; 
(ii) in subparagraph (A), by striking 
‘‘to any contractor awarded the contract, 
but only’’; and 
(iii) in subparagraph (B), by striking 
‘‘that are to be made available’’ and insert-
ing ‘‘that are available’’; and 
(C) in paragraph (6), by striking ‘‘include 
a clause to indemnify the Government against 
any failure by the contractor to perform the sup-
port contract, and to remain responsible’’ and 
inserting ‘‘include a requirement that any fail-
ure by the contractor to perform the primary 
contract is not excusable based on use of the sup-
port contract, and the contractor is to remain re-
sponsible’’; 
(6) in subsection (e), by striking ‘‘pilot’’; and 
(7) by striking subsections (f) and (g) and in-
serting the following: 
‘‘(f) BRIEFINGS.—Not later than April 1, 2025, and 
annually thereafter for five years, the Director of the De-
fense Logistics Agency, in consultation with the Comptroller 
General, shall submit to the Committees on Armed Services
538 
of the Senate and House of Representatives a briefing and 
report describing— 
‘‘(1) the cost effectiveness for both the Govern-
ment and industry of the program; 
‘‘(2) how support contracts under the program 
affected meeting the requirements of primary con-
tracts; and 
‘‘(3) the number of and location of existing con-
tracts.’’. 
SEC. 863. EXTENSION OF THE PILOT PROGRAM FOR 
STREAMLINING AWARDS FOR INNOVATIVE 
TECHNOLOGY PROJECTS. 
Section 873 of the National Defense Authorization Act 
for Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 3702 
note) is amended— 
(1) in subsection (a)(2), by inserting ‘‘, a 
multiyear contract (as defined in section 3501 of title 
10, United States Code), a block buy or multi-ship 
buy authorized by Congress, or the’’ after ‘‘Small 
Business Innovation Research Program’’; and 
(2) in subsection (f), by striking ‘‘October 1, 
2024’’ and inserting ‘‘October 1, 2029’’.
539 
SECTION 864. USE OF CAPABILITY-BASED ANALYSIS OF 
PRICE OF GOODS OR SERVICES OFFERED BY 
NONTRADITIONAL DEFENSE CONTRACTORS. 
(a) PILOT PROGRAM.—A contracting officer of the De-
partment of Defense may use alternative capability-based 
analysis to determine whether the proposed price or fee for 
a commercial product or commercial service offered by a 
nontraditional defense contractor (as that term is defined 
in section 3014 of title 10, United States Code) is fair and 
reasonable. 
(b) REPORT.—Not later than February 1, 2028, the 
Under 
Secretary 
of 
Defense 
for 
Acquisition 
and 
Sustainment shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a 
report evaluating the use of the authority under subsection 
(a), including the following elements: 
(1) A summary of activities conducted because of 
the inclusion of alternative capability-based analysis 
into the evaluation of proposals offered by nontradi-
tional contractors, including specific examples. 
(2) An analysis of the effectiveness of the author-
ity under subsection (a) in increasing nontraditional 
defense contractor participation in the defense indus-
trial base and in increasing access by the Department 
of Defense to new technologies or capabilities. 
(3) Recommendations on—
540 
(A) the continuation of the authority under 
subsection (a); 
(B) changes to existing law; and 
(C) the expansion of the program to include 
other contractors. 
(c) SUNSET.—The authority under subsection (a) shall 
expire on September 30, 2029. 
(d) ALTERNATIVE CAPACITY-BASED ANALYSIS DE-
FINED.—In this section, the term ‘‘alternative capability- 
based analysis’’ means an analysis of the value to the Fed-
eral Government of a commercial product or commercial 
service that considers one or more of the following elements: 
(1) The fitness of the product or service for the 
particular purpose such commercial product or com-
mercial service is being procured. 
(2) The unique nature of, technical expertise re-
quired to produce or provide, and the non-Federal re-
sources expended to develop such commercial product 
or commercial service. 
(3) The business model or financial projections of 
the nontraditional defense contractor, commensurate 
with the scale of the potential investment by the Sec-
retary of Defense, which may include cost informa-
tion, self-funded risk, financial projections, expendi-
541 
ture rates, estimates of total sales market, and other 
financial, technical, or management data. 
(4) The estimated total cost avoidance or in-
creased capacity afforded by such commercial product 
or commercial service in relation to current and fu-
ture costs of programs and operations that provide 
the same or similar capabilities. 
(5) Input from the anticipated users of such 
commercial product or commercial service on the po-
tential value added by the improved capabilities or 
production processes resulting from such commercial 
product or commercial service. 
SEC. 865. QUALIFICATION OF INDUSTRIAL CAPABILITIES. 
(a) ESTABLISHMENT OF PROCESS.—Not later than 
one year after the date of the enactment of this Act, the 
Secretary of Defense, in coordination with each Secretary 
of a military department and the Director of the Defense 
Logistics Agency, shall establish a process to rapidly qualify 
and approve alternate or additional sources of supply for 
industrial capabilities identified in subsection (b) for use 
in combat. 
(b) IDENTIFICATION.—With respect to the process re-
quired by subsection (a), the Secretary of Defense shall seek 
to expand industrial capability and capacity to—
542 
(1) produce energetic materials, solid rocket mo-
tors, unmanned systems, space systems, or electrical 
components; 
(2) supply castings and forgings; and 
(3) use additive or other advanced manufac-
turing techniques. 
(c) APPLICATION.—The Secretary of Defense shall en-
sure that process required by subsection (a) is applied in 
a manner in which one or more documented supply chain 
deficiencies in the acquisition or sustainment of a weapon 
system of the Department of Defense is addressed. 
(d) ELEMENTS.—In developing the process required by 
subsection (a), the Secretary of Defense shall ensure that— 
(1) not later than 180 days after the date of the 
enactment of this Act, policies implementing such 
process are established to encourage and support the 
delegation of material review board authorities, proc-
esses, and approvals to the contractor or subcontractor 
(at any tier) with respect to non-safety critical items 
for industrial capabilities covered in subsection (b); 
(2) commercial processes and procedures for the 
evaluation and qualification of vendors, including 
manufacturers and distributors, that are part of the 
process required by subsection (a) are examined and 
implemented where feasible and advisable, including
543 
forms and templates such as Sources Approval Re-
quests and Alternative Offers; 
(3) the process required by subsection (a) in-
cludes processes that are implemented and, if nec-
essary, military specifications or other similar re-
quirements documents are developed to pre-qualify 
vendors to supply safety critical items or mission 
critical items for industrial capabilities based on— 
(A) an assessment of the vendor’s material 
and process controls to assure conformance to 
specification and contractual requirements; and 
(B) audit and inspection requirements of 
the Department of Defense; 
(4) test reports are reviewed and notice of an ap-
proval decision is provided to requesting member of 
the acquisition workforce (as defined in section 101 of 
title 10, United States Code) not later than 45 days 
after the date on which a test is completed; 
(5) processes for qualification of safety critical or 
flight critical end items produced through advanced 
processes and technologies, such as additive manufac-
turing, are established; 
(6) alternative material types that could be a 
viable replacement or an interchangeable source of 
material are considered for evaluation and qualifica-
544 
tion using streamlined requirements to streamline 
qualification requirements; 
(7) processes are developed, where appropriate, 
for qualification of a system or subsystem by a des-
ignated approval authority within a military depart-
ment to avoid the need for qualification of individual 
parts while ensuring the performance of parts and the 
interactions of the parts in the system or subsystem; 
and 
(8) pathways are developed to streamline and 
consolidate the approval authority of the process es-
tablished in subsection (a). 
(e) EXPEDITED PROCESSES
FOR MILITARY-UNIQUE 
SPECIFICATIONS
AND TEST PROCEDURES.—To support 
successful implementation of the process required by sub-
section (a), the Secretary shall— 
(1) to the maximum extent practicable, reduce 
the need for military-unique specification and test 
procedures; 
(2) develop a process to streamline and expedite 
the drafting and approval of military specifications 
(including military performance specifications) and 
technical publications that— 
(A) details the performance or functions re-
quired by the industrial capabilities described in
545 
subsection (b) or the weapon system described in 
subsection (c) and do not constrain implementa-
tion of such process; 
(B) is completed, upon request by a member 
of the acquisition workforce— 
(i) not later than 30 days after the 
date of such request, for unmanned items, 
non-safety critical items, or non-mission 
critical items; and 
(ii) not later than 180 days after the 
date of such request, for safety critical items 
or mission critical items; and 
(C) accounts for resource constraints by 
prioritizing requests for inclusion in the process 
established in subsection (a); and 
(3) develop a process to develop, produce, and 
test parts described in subsection (b), and may test 
through failure, to create data to support the drafting 
of specifications and test procedures. 
(f) EXEMPTIONS.—Industrial capabilities approved 
under the process required by subsection (a) that do not 
present a safety risk to human life— 
(1) shall be exempt from Class A and Class B 
mishap investigations, as defined by the Secretary of 
Defense; and
546 
(2) shall be subject to streamlined investigation 
procedures, as determined by the Secretary of Defense, 
with respect to a mishap. 
(g) PROTECTIONS.—Approval authorities responsible 
for the process required by subsection (a) shall not be held 
liable by the Department of Defense for mishaps with re-
spect to industrial capabilities approved pursuant to the 
process required by subsection (a) without evidence of will-
ful misconduct, gross negligence, or intentional fraud. 
(h) INTERIM BRIEFING.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of De-
fense, in coordination with each Secretary of a military de-
partment and the Director of the Defense Logistics Agency, 
shall provide to the Committees on Armed Services of the 
Senate and the House of Representatives a briefing with 
a detailed plan to implement the process required by sub-
section (a), including definitions and processes related to 
time limitations for drafting and approval of military spec-
ifications 
and 
technical 
publications 
in 
subsection 
(d)(1)(B). 
(i) INVESTMENT ROADMAP.—Not later than one year 
after the date of the enactment of this Act, the Secretary 
of Defense, in coordination with each Secretary of a mili-
tary department and the Director of the Defense Logistics 
Agency, shall provide to the congressional defense commit-
547 
tees a report on the resourcing and investment required to 
modernize the infrastructure and personnel for materials 
and process development, certification, and qualification. 
(j) REPORT.—Not later than September 30, 2027, the 
Secretary of Defense, in coordination with each Secretary 
of a military department and the Director of the Defense 
Logistics Agency, shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a 
report on the progress, challenges, and lessons learned in 
carrying out the requirements of this section, including the 
viability of applying the process required by subsection (a) 
more broadly across additional industrial capabilities. 
SEC. 866. SOLID ROCKET MOTOR INDUSTRIAL BASE. 
(a) IN GENERAL.—Not later than March 1, 2025, the 
Under 
Secretary 
of 
Defense 
for 
Acquisition 
and 
Sustainment, acting through the Director of the Joint Pro-
duction Accelerator Cell of the Department of Defense and 
the Assistant Secretary of Defense for Industrial Base Pol-
icy, shall submit to the congressional defense committees a 
strategy for ensuring that the defense industrial base of the 
United States can meet requirements for programs of record 
relating to solid rocket motors. 
(b) COORDINATION.—In developing the strategy re-
quired under subsection (a), the Under Secretary of Defense
548 
for Acquisition and Sustainment shall coordinate with the 
following: 
(1) The Assistant Secretary of the Navy for Re-
search, Development, and Acquisition. 
(2) The Assistant Secretary of the Army for Ac-
quisition, Logistics, and Technology. 
(3) The Assistant Secretary of the Air Force for 
Acquisition, Technology, and Logistics. 
(4) The Assistant Secretary of the Air Force for 
Space Acquisition and Integration. 
(5) The Director of the Missile Defense Agency. 
(c) ELEMENTS.—The strategy under subsection (a) 
shall include the following: 
(1) An assessment of emerging technologies or 
manufacturing processes that would support the mod-
ernization or evolution of the defense industrial base 
of the United States to meet requirements for pro-
grams of record relating to solid rocket motors. 
(2) A plan to prioritize government funding for 
the following: 
(A) Government-owned, Government-oper-
ated energetic materials facilities. 
(B) Government-owned, contractor-operated 
energetic materials facilities. 
(C) Private energetic materials facilities.
549 
(d) REVIEW AND REPORT.— 
(1) REVIEW.—Not later than March 1, 2025, the 
Secretary of Defense shall seek to enter into a contract 
with a federally funded research and development cen-
ter to conduct a review of the of the defense industrial 
base of the United States for solid rocket motors that 
includes the following: 
(A) An assessment of the capacity and ca-
pability of existing solid rocket motor industrial 
base, including the supply base and personnel of 
such manufacturers, to support the expansion of 
the solid rocket motor industrial base. 
(B) The capability and capacity of poten-
tial new entrants to the solid rocket motor indus-
trial base, including private entities funded by 
the Federal Government. 
(C) An assessment of the process for quali-
fying new entrants, including new manufac-
turing processes, for solid rocket motors. 
(D) An assessment of the capacity and ca-
pability of the solid rocket motor industrial base 
to support the demands of existing programs of 
record. 
(E) An assessment of the capacity and ca-
pability of the solid rocket motor industrial base
550 
to support potential future demands of programs 
of record. 
(F) A mapping of programs of record and 
potential future munitions programs to solid 
rocket motor manufacturer throughput. 
(G) Identification of current and potential 
shortfalls in common precursors and chemicals. 
(H) A broad assessment of commercial sec-
tor, civil sector, and Department of Defense pres-
sures on the solid rocket motor industrial base. 
(2) REPORT.— 
(A) TO SECRETARY.—Not later than Sep-
tember 30, 2025, a federally funded research and 
development center that enters into contract 
under this subsection shall submit to the Sec-
retary of Defense a report on the results of the 
review conducted under paragraph (1). 
(B) TO CONGRESS.—Not later than 30 days 
after receipt of the report described in subpara-
graph (A), the Secretary of Defense shall submit 
such report, along with any comments of the Sec-
retary, to the congressional defense committees. 
(e) ENERGETIC MATERIALS DEFINED.—The term ‘‘en-
ergetic materials’’ has the meaning given in section 148 of 
title 10, United States Code.
551 
SEC. 867. PROMULGATE GUIDANCE RELATING TO CERTAIN 
DEPARTMENT OF DEFENSE CONTRACTS. 
Not later than January 31, 2025, the Secretary of De-
fense shall issue guidance on the governance and oversight 
of the contracts of the Department of Defense that support 
or enable sensitive activities. 
Subtitle G—Small Business Matters 
SEC. 871. PILOT PROGRAM FOR THE PARTICIPATION OF 
MILITARY RESEARCH AND EDUCATIONAL IN-
STITUTIONS IN THE STTR PROGRAM. 
Section 9 of the Small Business Act (15 U.S.C. 638) 
is amended by adding at the end the following: 
‘‘(yy) PILOT PROGRAM FOR THE PARTICIPATION OF 
MILITARY RESEARCH AND EDUCATIONAL INSTITUTIONS IN 
THE STTR PROGRAM.— 
‘‘(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this subsection, the Sec-
retary of Defense shall establish a pilot program to 
enable any undergraduate, graduate, or postgraduate 
degree-granting military research or educational in-
stitution established under title 10, United States 
Code, to participate in the STTR program of the De-
partment of Defense. 
‘‘(2) SUNSET.—The authority to carry out the 
pilot program under this subsection shall end on Sep-
tember 30, 2025.’’.
552 
SEC. 872. DEPARTMENT OF DEFENSE PILOT PROGRAM FOR 
PRELIMINARY CALCULATION ESTIMATES FOR 
CERTAIN PROGRAMS. 
Section 9 of the Small Business Act (15 U.S.C. 638), 
as amended by section 871, is further amended by adding 
at the end the following: 
‘‘(zz) BUDGET CALCULATION PILOT PROGRAM.— 
‘‘(1) PILOT.— 
‘‘(A) IN GENERAL.—In order to more rap-
idly estimate allocations for the SBIR and 
STTR programs of the Department of Defense, 
the Secretary of Defense shall conduct a budget 
calculation pilot program that requires the cal-
culation of total expenditures for the SBIR and 
STTR programs in the Department of Defense 
and determination of related allocations in ac-
cordance with subparagraphs (B) and (C), and 
paragraph (2), respectively. 
‘‘(B) SBIR PROGRAM.—Beginning in fiscal 
year 2025, the Department of Defense shall cal-
culate required budget expenditures for its SBIR 
program as not less than 3.25 percent of the av-
erage of the total research, development, test, and 
evaluation extramural budget of the Department 
for the 2 most recent fully obligated fiscal year 
budgets.
553 
‘‘(C) STTR PROGRAM.—Beginning in fiscal 
year 2025, the Department of Defense shall cal-
culate required budget expenditures for its STTR 
program as not less than 0.46 percent of the av-
erage of the total research, development, test, and 
evaluation extramural budget of the Department 
for the 2 most recent fully obligated fiscal year 
budgets. 
‘‘(2) ALLOCATIONS.—Not later than 30 days 
after the date of enactment of an appropriations bill 
for the Department of Defense for a fiscal year, the 
Department shall determine and make adjustments 
for actual allocations related to the SBIR and STTR 
programs of the Department. 
‘‘(3) SUNSET.—The pilot program under this 
subsection shall terminate on September 30, 2025.’’. 
SEC. 873. BOOTS TO BUSINESS PROGRAM. 
(a) IN GENERAL.—Section 32 of the Small Business 
Act (15 U.S.C. 657b) is amended by adding at the end the 
following: 
‘‘(h) BOOTS TO BUSINESS PROGRAM.— 
‘‘(1) COVERED
INDIVIDUAL
DEFINED.—In this 
subsection, the term ‘covered individual’ means— 
‘‘(A) an individual who is participating in 
the Transition Assistance Program established
554 
under section 1144 of title 10, United States 
Code, subject to an availability determination by 
the Secretary of the military department con-
cerned; 
‘‘(B) a servicemember in the National 
Guard or Reserves not on active duty. 
‘‘(C) an individual who— 
‘‘(i) served on active duty in any 
branch of the Armed Forces, including the 
National Guard or Reserves; and 
‘‘(ii) was discharged or released from 
such service under conditions other than 
dishonorable; or 
‘‘(D) a spouse or dependent of an indi-
vidual described in subparagraph (A), (B), or 
(C). 
‘‘(2) ESTABLISHMENT.—During the period be-
ginning on the date of enactment of this subsection 
and ending on September 30, 2028, 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 Business 
Program are to—
555 
‘‘(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 re-
sources for small business concerns, and start up 
a small business concern. 
‘‘(4) PROGRAM COMPONENTS.— 
‘‘(A) IN GENERAL.—The Boots to Business 
Program may include— 
‘‘(i) a presentation providing exposure 
to the considerations involved in self-em-
ployment and ownership of a small business 
concern; 
‘‘(ii) an online, self-study course fo-
cused on the basic skills of entrepreneurship, 
the language of business, and the consider-
ations 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
556 
‘‘(iv) 
in-depth 
training 
delivered 
through online instruction, including an on-
line course that leads to the creation of a 
business plan. 
‘‘(B) COLLABORATION.—The Administrator 
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 de-
fined in section 738(e) of the National De-
fense Authorization Act for Fiscal Year 
2013 (10 U.S.C. 1071 note). 
‘‘(C) USE
OF
RESOURCE
PARTNERS
AND 
DISTRICT OFFICES.— 
‘‘(i) IN GENERAL.—The Administrator 
shall— 
‘‘(I) ensure that Veteran Business 
Outreach Centers regularly participate, 
on a nationwide basis, in the Boots to 
Business Program; and 
‘‘(II) to the maximum extent 
practicable, use district offices of the
557 
Administration and a variety of other 
resource partners and entities in ad-
ministering the Boots to Business Pro-
gram. 
‘‘(ii) GRANT AUTHORITY.—In carrying 
out clause (i), the Administrator may make 
grants, subject to the availability of appro-
priations in advance, to Veteran Business 
Outreach Centers, other resource partners, 
or other entities to carry out components of 
the Boots to Business Program. 
‘‘(D) AVAILABILITY TO DEPARTMENT OF DE-
FENSE AND THE DEPARTMENT OF LABOR.—The 
Administrator shall make available to the Sec-
retary of Defense and the Secretary of Labor in-
formation regarding the Boots to Business Pro-
gram, including all course materials and out-
reach materials related to the Boots to Business 
Program, for inclusion on the websites of the De-
partment of Defense and the Department of 
Labor relating to the Transition Assistance Pro-
gram, in the Transition Assistance Program 
manual, and in other relevant materials avail-
able for distribution from the Secretary of De-
fense and the Secretary of Labor.
558 
‘‘(E) AVAILABILITY
TO
DEPARTMENT
OF 
VETERANS
AFFAIRS.—In consultation with the 
Secretary of Veterans Affairs, the Administrator 
shall make available for distribution and display 
on the website of the Department of Veterans Af-
fairs and at local facilities of the Department of 
Veterans Affairs outreach materials regarding 
the Boots to Business Program, which shall, at 
a minimum— 
‘‘(i) describe the Boots to Business Pro-
gram and the services provided; and 
‘‘(ii) include eligibility requirements 
for participating in the Boots to Business 
Program. 
‘‘(F) AVAILABILITY
TO
OTHER
PARTICI-
PATING AGENCIES.—The Administrator shall en-
sure information regarding the Boots to Business 
Program, including all course materials and out-
reach materials related to the Boots to Business 
Program, is made available to other partici-
pating agencies in the Transition Assistance 
Program and upon request of other agencies. 
‘‘(5) COMPETITIVE BIDDING PROCEDURES.—The 
Administration shall use relevant competitive bidding 
procedures with respect to any contract or cooperative
559 
agreement executed by the Administration under the 
Boots to Business Program. 
‘‘(6) PUBLICATION OF NOTICE OF FUNDING OP-
PORTUNITY.—Not later than 30 days before the dead-
line for submitting applications for any funding op-
portunity under the Boots to Business Program, the 
Administration shall publish a notice of the funding 
opportunity. 
‘‘(7) REPORT.—Not later than 180 days after the 
date of enactment of this subsection, and not less fre-
quently than annually thereafter, the Administrator 
shall submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives a re-
port on the performance and effectiveness of the Boots 
to Business Program, which— 
‘‘(A) may be included as part of another re-
port submitted to such committees by the Admin-
istrator related to the Office of Veterans Business 
Development; and 
‘‘(B) shall summarize available information 
relating to— 
‘‘(i) grants awarded under paragraph 
(4)(C);
560 
‘‘(ii) the total cost of the Boots to Busi-
ness Program; 
‘‘(iii) the number of program partici-
pants using each component of the Boots to 
Business Program; 
‘‘(iv) the completion rates for each 
component of the Boots to Business Pro-
gram; 
‘‘(v) to the extent possible— 
‘‘(I) the demographics of program 
participants, to include gender, age, 
race, ethnicity, and relationship to 
military; 
‘‘(II) the number of program par-
ticipants that connect with a district 
office of the Administration, a Veteran 
Business Outreach Center, or another 
resource partner of the Administration; 
‘‘(III) the number of program 
participants that start a small busi-
ness concern; 
‘‘(IV) the results of the Boots to 
Business and Boots to Business Reboot 
course quality surveys conducted by the 
Office of Veterans Business Develop-
561 
ment before and after attending each of 
those courses, including a summary of 
any comments received from program 
participants; 
‘‘(V) the results of the Boots to 
Business Program outcome surveys 
conducted by the Office of Veterans 
Business Development, including a 
summary of any comments received 
from program participants; and 
‘‘(VI) the results of other germane 
participant satisfaction surveys; 
‘‘(C) an evaluation of the overall effective-
ness of the Boots to Business Program based on 
each geographic region covered by the Adminis-
tration during the most recent fiscal year; 
‘‘(D) an assessment of additional perform-
ance outcome measures for the Boots to Business 
Program, as identified by the Administrator; 
‘‘(E) any recommendations of the Adminis-
trator for improvement of the Boots to Business 
Program, which may include expansion of the 
types of individuals who are covered individuals; 
‘‘(F) an explanation of how the Boots to 
Business Program has been integrated with other
562 
transition programs and related resources of the 
Administration and other Federal agencies; and 
‘‘(G) any additional information the Ad-
ministrator determines necessary.’’. 
(b) GRANTS, CONTRACTS, AND COOPERATIVE AGREE-
MENTS WITH DISABLED VETERANS, VETERANS, AND MEM-
BERS
OF
A
RESERVE
COMPONENT
OF
THE
ARMED 
FORCES.—Section 8(b)(17) of the Small Business Act (15 
U.S.C. 637(b)(17)) is amended by striking ‘‘Forces.’’ and 
inserting ‘‘Forces, provided that— 
‘‘(A) the Administrator considers the needs 
of disabled veterans (as defined in section 
4211(3) of title 38, United States Code), vet-
erans, and members of a reserve component of 
the Armed Forces equally, as part of the criteria 
for funding a continuation award or during the 
competition process for any grant, contract, or 
cooperative agreement made or entered into 
under this paragraph, including assigning equal 
value to any factors based on a designation as 
a disabled veteran (as defined in section 4211(3) 
of title 38, United States Code), veteran, or 
member of a reserve component of the Armed 
Forces, and equally considering the ability of ap-
plicants to provide Boots to Business on military
563 
installations and the ability of applicants to 
provide Boots to Business Reboot training off 
military installations; 
‘‘(B) for purposes of subparagraph (A), the 
term ‘continuation award’ means a renewal or 
recompete, awarded at the discretion of the Ad-
ministrator, for another 5-year project period for 
a grant, contract, or cooperative agreement 
under this paragraph that is made up of a base 
project period of 12 months, with up to 4 option 
periods of 12 months, subject to continuing pro-
gram authority, availability of funds, and satis-
factory performance by the recipient organiza-
tion; 
‘‘(C) the Administrator shall, not later than 
1 year after the date of enactment of subpara-
graph (A), issue guidance on the criteria de-
scribed in subparagraph (A) to existing recipi-
ents of any grant, contract, or cooperative agree-
ment made or entered into under this paragraph; 
‘‘(D) the Administrator shall, for each budg-
et period beginning after the date of the issuance 
of the guidance under subparagraph (C), incor-
porate the criteria described in subparagraph 
(A) into the funding agreement, and existing re-
564 
cipients of any grant, contract, or cooperative 
made or entered into under this paragraph shall 
have 1 full budget period to comply; 
‘‘(E) if an existing recipient of any grant, 
contract, or cooperative agreement made or en-
tered into under this paragraph does not meet 
the criteria included in the guidance issued 
under subparagraph (C) during the budget pe-
riod described in subparagraph (D), the existing 
recipient shall have a period of 1 year, beginning 
after the budget period in which the existing re-
cipient was assessed, to reach satisfactory per-
formance and compliance with all terms and 
conditions of the award; 
‘‘(F) if the Administrator fails to give equal 
weight to the needs of the groups described in 
subparagraph (A) during the competition process 
for any grant, contract, or cooperative agreement 
made or entered into under this paragraph, the 
Administrator shall, not later than 60 days after 
the closing date of the grant, contract, or cooper-
ative agreement, provide written justification to 
the Committee on Small Business and Entrepre-
neurship of the Senate and the Committee on 
Small Business of the House of Representatives
565 
regarding why the grant, contract, or cooperative 
agreement was not made or entered into pursu-
ant to subparagraph (A); and 
‘‘(G) the Administrator shall provide full 
and fair consideration to any entity that has ap-
plied for a grant, contract, or cooperative agree-
ment under this paragraph before the date of en-
actment of subparagraph (A), if that entity ap-
plies for a future funding opportunity under this 
paragraph.’’. 
SEC. 874. ESTABLISHMENT OF PILOT PROGRAM FOR AC-
CESS TO SHARED CLASSIFIED COMMERCIAL 
INFRASTRUCTURE. 
(a) PILOT PROGRAM REQUIRED.—Not later than 180 
days after the date of the enactment of this Act, the Sec-
retary of Defense shall establish a pilot program on stream-
lining access for small business concerns and institutions 
of higher learning to shared classified commercial infra-
structure— 
(1) to expand access to secret or collateral ac-
credited facilities and sensitive compartmented infor-
mation facilities and special access program facilities 
to securely perform work under existing classified 
contracts;
566 
(2) to reduce the cost and administrative re-
quirements for a facility to receive and maintain ac-
creditation and certification as an accredited facility; 
(3) to increase opportunities for small business 
concerns and institutions of higher learning to have 
access to and compete for classified contracts; and 
(4) to identify policy barriers that prevent com-
ponents of the Department of Defense from more 
broadly using shared classified commercial infrastruc-
ture and prototyping proposed solutions. 
(b) DESIGNATION OF PRINCIPAL CIVILIAN OFFICIAL.— 
(1) IN GENERAL.—The Secretary shall designate 
an existing civilian official of the Department of De-
fense who shall be responsible for the administration 
of the pilot program established under subsection (a). 
(2) RESPONSIBILITIES.—The responsibilities of 
the civilian official designated under paragraph (1) 
shall include the following: 
(A) To seek to enter into a contact or other 
agreement with one or more private entities— 
(i) for access for contractors and com-
ponents of the Department of Defense to 
shared classified commercial infrastructure; 
and
567 
(ii) to facilitate the use of such infra-
structure by covered small business concerns 
and institutions of higher learning. 
(B) In consultation with the Office of the 
Director of National Intelligence, to coordinate 
with the Director of the Defense Counterintel-
ligence and Security Agency, the Director of the 
Defense Intelligence Agency, and the Director of 
the Defense Information Systems Agency to up-
date or prescribe policies and regulations gov-
erning the process and timelines pertaining to 
how shared commercial classified infrastructure 
may obtain relevant facility authorizations and 
access to secure information technology networks 
from the Department of Defense. 
(C) To make recommendations to the Sec-
retary of Defense regarding the modernization, 
streamlining, and acceleration of the approval 
process of the Department of Defense for contacts, 
subcontracts, and co-use or joint use agreements 
for shared classified commercial infrastructure. 
(D) The development and maintenance of 
metrics tracking the outcomes of each request 
made under the pilot program for the accredita-
568 
tion of shared commercial classified infrastruc-
ture as an accredited facility. 
(c) REQUIREMENTS.— 
(1) POLICIES AND REGULATIONS.—As part of the 
pilot program established under subsection (a), the 
Director of the Defense Counterintelligence and Secu-
rity Agency, the Director of the Defense Intelligence 
Agency, and the Director of the Defense Information 
Systems Agency shall each update or prescribe poli-
cies and regulations governing the processes and 
timelines pertaining to how shared commercial classi-
fied infrastructure may obtain relevant facility spon-
sorship, associated authorizations and accreditation, 
and access to relevant secure information technology 
networks from the Department of Defense. 
(2) MODERNIZATION, STREAMLINING, AND
AC-
CELERATION.—The Secretary of Defense shall ensure 
that the pilot program established under subsection 
(a) includes efforts to modernize, streamline, and ac-
celerate the approval process of the Department of De-
fense for shared, co-use, and joint use agreements to 
facilitate the access of small business concerns and in-
stitutions of higher learning performing under con-
tracts or other agreements with the Department to 
classified environments.
570 
(C) Actions taken by the civilian official 
designated under subsection (b) to streamline the 
process of the Department of Defense for ap-
proval of co-use and joint use agreements to fa-
cilitate the access of small business concerns and 
institutions of higher learning performing under 
contracts or other agreements with the Depart-
ment to classified environments, including any 
updated or new policies or guidance issued as a 
result of the pilot program. 
(D) A list of all unutilized and currently 
accredited sensitive compartmented information 
facilities owned and operated by the Department 
of Defense that are located within 25 miles of a 
facility described in subsection (a)(1). 
(E) A list of the metrics or other measures 
used by the Department of Defense to assess the 
benefits to the Department from the pilot pro-
gram established under subsection (a), and any 
other metrics the Secretary of Defense deems ap-
propriate. 
(e) TERMINATION.—The authority to carry out the 
pilot program required by subsection (a) and the require-
ments of this section shall terminate on September 30, 2030. 
(f) DEFINITIONS.—In this section:
571 
(1) The term ‘‘institution of higher learning’’ has 
the meaning given such term in section 3452(f) of 
title 38, United States Code. 
(2) The term ‘‘shared commercial classified in-
frastructure’’ means fully managed, shared, classified 
infrastructure (including physical facilities), and as-
sociated services that are operated by a private third- 
party for the benefit of appropriately cleared govern-
ment and contractor personnel who have limited or 
constrained access to secret collateral and sensitive 
compartmented information facilities. 
(3) The term ‘‘small business concern’’ has the 
meaning given such term under section 3 of the Small 
Business Act (15 U.S.C. 632). 
SEC. 875. ACCESSIBILITY AND CLARITY IN COVERED NO-
TICES FOR SMALL BUSINESS CONCERNS. 
(a) IN GENERAL.—Each covered notice shall be written 
in a manner— 
(1) such that a small business concern can easily 
understand the intent of the covered notice; and 
(2) that— 
(A) is clear, concise, and well-organized; 
and 
(B) to the maximum extent practicable, fol-
lows other best practices appropriate to the sub-
572 
ject or field of the covered notice and the in-
tended audience of the covered notice. 
(b) INCLUSION
OF KEY WORDS
IN COVERED NO-
TICES.—Each covered notice shall, to the maximum extent 
practicable, include key words in the description of the cov-
ered notice such that a small business concern seeking con-
tract opportunities using the single Government-wide point 
of entry described under section 1708 of title 41, United 
States Code, can easily identify and understand such cov-
ered notice. 
(c) RULEMAKING.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall issue rules to carry out this section. 
(d) DEFINITIONS.—In this section: 
(1) COVERED NOTICE.—The term ‘‘covered no-
tice’’ means a notice that— 
(A) the Secretary of Defense or a Secretary 
of a military department publishes on SAM.gov 
(or any successor website) marketing Federal 
contract opportunities; and 
(B) pertains to small business concerns, 
such as a sources sought notice or a solicitation 
restricted to competition among small business 
concerns.
573 
(2) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning given the 
term under section 3 of the Small Business Act (15 
U.S.C. 632). 
SEC. 876. SMALL BUSINESS BILL OF RIGHTS. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Secretary of Defense, 
acting through the Small Business Integration Group in 
the Department of Defense led by the Under Secretary of 
Defense for Acquisition and Sustainment, shall develop a 
Small Business Bill of Rights for the Department of Defense 
and its components. 
(b) PURPOSE.—The Small Business Integration Group 
in the Department of Defense shall design the Small Busi-
ness Bill of Rights required under subsection (a) to ensure 
a healthy partnership between the Department of Defense 
and the defense industrial base and to encourage small busi-
nesses to contract with the Department by ensuring cus-
tomer service issues and conflicts between the Department 
and small businesses related to acquisitions by the Depart-
ment are resolved in an expeditious manner and that small 
businesses are aware of their rights to assistance under Fed-
eral law in resolving such issues. 
(c) CONTENT.—The Bill of Rights required under sub-
section (a) shall do the following:
574 
(1) Authorize the Director of Small Business 
Programs of the Department to establish a resolution 
process to which all Department of Defense compo-
nents, members of the small business professional 
workforce of the Department, and other relevant offi-
cials and organizations of the Department, must ad-
here. 
(2) Authorize the Director of Small Business 
Programs of the Department, each Director of Small 
Business Programs of a military department, and 
members of the small business professional workforce 
of the Department of Defense to— 
(A) request assistance from members of the 
acquisition workforce in their component of the 
Department with the customer service issues and 
conflicts described in subsection (b); 
(B) require a timely responses from such 
members; and 
(C) establish a framework for implementa-
tion by the components of the Department, mem-
bers of the small business professional workforce, 
and other relevant officials and organizations of 
the Department providing for fair and reason-
able resolution of complaints by small business
575 
for issues between small businesses and the De-
partment. 
(3) Ensure that small businesses are informed 
of— 
(A) the rights of small businesses to assist-
ance under the Small Business Regulatory En-
forcement Fairness Act (5 U.S.C. 601 note), the 
Small Business Act (15 U.S.C. 631 et seq.), 
chapter 388 of title 10, United States Code, and 
any other applicable law; 
(B) how to contact each task and delivery 
ombudsman designated under section 3406(g) of 
title 10, United States Code; 
(C) how to contact the Office of Small Busi-
ness Programs of the Department of Defense and 
the Office of Small Business Programs of each 
military department; and 
(D) how to contact each advocate for com-
petition in the Department of Defense designated 
pursuant to section 1705(a) of title 41, United 
States Code. 
(4) Establish guidance— 
(A) for the acquisition workforce of the De-
partment of Defense on the rights of small busi-
nesses under Federal law and the regulations
576 
issued thereunder, including the Federal Acquisi-
tion Regulation and FAR and the Defense Fed-
eral Acquisition Regulation Supplement; 
(B) on the duties and authorities of the task 
and delivery ombudsmans designated under sec-
tion 3406(g) of title 10, United States Code, and 
the advocates for competition in the Department 
of Defense designated pursuant to section 
1705(a) of title 41, United States Code; and 
(C) on a reasonable and practical timeline, 
as determined by the Undersecretary of Defense 
for Acquisition and Sustainment, for contracting 
officers of the Department to response to an in-
quiry from the Office of Small Business Pro-
grams of the Department of Defense or the Office 
of Small Business Programs of each military de-
partment. 
(5) Coordinate assistance under the Bill of 
Rights with other regulatory compliance assistance to 
small business concerns, current and desired sets of 
authorities, roles, and responsibilities across the Of-
fices of Small Business Programs of the Department 
of Defense, APEX Accelerators, members of the small 
business professional workforce of the Department of
577 
Defense, and other relevant officials or organizations 
of the Department. 
(d) ANNUAL BRIEFINGS.— 
(1) IN GENERAL.—Not later than one year after 
the date of the enactment of this Act, and annually 
thereafter, the Director of Small Business Programs of 
the Department shall provide to the Secretary of De-
fense and the Committees on Armed Services of the 
House of Representatives and the Senate a briefing on 
the annual metrics collected under paragraph (2) for 
the year covered by the report. 
(2) COLLECTION OF ANNUAL METRICS.— 
(A) The Office of Small Business Programs 
of the Department of Defense shall— 
(i) develop annual metrics on the sub-
mission of complaints by contractors of the 
Department of Defense pursuant to the 
Small Business Bill of Rights required 
under subsection (a); 
(ii) provide each component of the De-
partment such annual metrics; and 
(iii) collect and consolidate such an-
nual metrics submitted to the Office under 
subparagraph (B).
578 
(B) Each component of the Department of 
Defense shall collect and submit to the Office of 
Small Business Programs of the Department of 
Defense the annual metrics. 
(e) IMPLEMENTATION BRIEFING.—Not later than 180 
days after the date of the enactment of this Act, the Under 
Secretary of Defense for Acquisition and Sustainment shall 
provide to the Committees on Armed Services of the House 
of Representatives and the Senate a briefing detailing the 
Small Business Bill of Rights required under subsection (a) 
and the plan to implement such Small Business Bill of 
Rights. 
(f) DEFINITIONS.—In this section— 
(1) the term ‘‘Director of Small Business Pro-
grams of the Department’’ means the Director of 
Small Business Programs in the Department of De-
fense appointed under section 144 of title 10, United 
States Code; 
(2) the term ‘‘Director of Small Business Pro-
grams of a military department’’ means— 
(A) the Director of Small Business Pro-
grams in the Department of the Army appointed 
under section 7024 of title 10, United States 
Code;
579 
(B) the Director of Small Business Pro-
grams in the Department of the Navy appointed 
under section 8028 of such title; or 
(C) the Director of Small Business Pro-
grams in the Department of the Air Force ap-
pointed under section 9024 of such title; and 
(3) the term ‘‘military department’’ has the 
meaning given such term in section 101(a) of title 10, 
United States Code. 
Subtitle H—Other Matters 
SEC. 881. CLARIFICATION OF WAIVER AUTHORITY FOR OR-
GANIZATIONAL 
AND 
CONSULTANT 
CON-
FLICTS OF INTEREST. 
Section 9.503 of the Federal Acquisition Regulation 
shall be revised to require that— 
(1) a request for a waiver under such section in-
clude a written justification for such waiver; and 
(2) the head of a Federal agency may not dele-
gate such waiver authority below the level of the dep-
uty head of such agency. 
SEC. 882. REVERSE ENGINEERING OR RE-ENGINEERING 
FOR PRODUCTION OF ITEMS. 
(a) REVERSE
ENGINEERING
OR
RE-ENGINEERING 
PROCESS.—Not later than one year after the date of the 
enactment of this Act, the Under Secretary of Defense for
580 
Acquisition and Sustainment, in coordination with each 
Secretary of a military department and the Director of the 
Defense Logistics Agency, shall establish a process to— 
(1) identify items for which— 
(A) technical data is not available; or 
(B) rights in such technical data does not 
allow for manufacturing of the item; and 
(2) create streamlined procedures for production 
of a item identified under paragraph (1) through re-
verse engineering or re-engineering— 
(A) if production of the item may be re-
quired for point of use manufacturing or for a 
contested logistics environment (as defined in 
section 2926 of title 10, United States Code); 
(B) if the manufacturer of the item will not 
meet the schedule for delivery required by the 
contracting officer to maintain weapon system 
readiness or responsiveness in the event of mobi-
lization; or 
(C) with respect to a item for which a head 
of the contracting activity can only acquire by 
entering into a sole source contract, if such head 
submits to the service acquisition executive (as 
defined in section 101 of title 10, United States 
Code) a written determination that such reverse
581 
engineering or re-engineering is beneficial to sus-
tain training or operations of the Department of 
Defense with respect to such item. 
(b) ANNUAL REPORT.— 
(1) IN GENERAL.—Not later than one year after 
the date of the enactment of this Act, and annually 
thereafter until December 31, 2030, the Under Sec-
retary of Defense for Acquisition and Sustainment, in 
coordination with each Secretary of a military de-
partment and the Director of the Defense Logistics 
Agency, shall submit to the congressional defense com-
mittees a report on the use of reverse engineering or 
re-engineering carried out pursuant to the process re-
quired under subsection (a). 
(2) CONTENTS.—Each report required by para-
graph (1) shall include the following: 
(A) A list of items produced through reverse 
engineering or re-engineering, disaggregated by 
element of the Department of Defense described 
in section 111(b) of title 10, United States Code 
that used the process established under subsection 
(a). 
(B) Representative case studies of items list-
ed under subparagraph (A), including a descrip-
tion of the use case of each item, the efforts used
582 
to acquire the technical data or technical data 
rights needed to manufacture the item, and the 
estimated cost or time savings obtained, the esti-
mated cost or time savings obtained over an esti-
mated time horizon of ten years of acquisition 
requirements, including the identification of re-
curring and nonrecurring costs. 
(C) Recommendations and lessons learned 
that may inform contracting guidance and pro-
cedures, especially regarding the creation of tech-
nical data packages and technical data rights 
through reverse engineering or re-engineering. 
SEC. 883. PROCUREMENT OF DEPARTMENT OF DEFENSE 
BATTERIES. 
(a) IN GENERAL.—The Secretary of Defense shall— 
(1) coordinate a Department of Defense-wide ap-
proach to establishing a battery strategy to further le-
verage the advancements of domestic and allied com-
mercial industry with respect to batteries; and 
(2) in coordination with the Secretaries of the 
military departments and the other relevant elements 
of the Department of Defense, identify mechanisms for 
measuring and addressing risks to the defense supply 
chain, diminishing manufacturing capability, and 
material shortages for legacy system batteries by
583 
transitioning the Department to safer batteries with 
higher energy capabilities with supply chain growth. 
(b) LEGACY BATTERY STRATEGY CONTENTS.—The 
strategy established pursuant to subsection (a)(1) strategy 
shall include the following: 
(1) The establishment of a Department of De-
fense-wide accounting of advanced batteries for cur-
rent and future applications, including obsolete bat-
teries in existing systems, and improved mechanisms 
for aligning the battery procurement requirements 
across the Department. 
(2) Requirements for the supply chain for bat-
teries for the Department of Defense to enable to De-
partment to leverage advancements by domestic in-
dustry and industry located in allies of the United 
States with respect to batteries. 
(3) The application of the requirements described 
in paragraph (2) to the near-term, mid-term, and 
long-term horizons of the Department. 
(4) Creating a Department of Defense-wide 
Science and Technology battery strategy, in coordina-
tion with the military services, to define an approach, 
technical targets, and link into procurement activi-
ties.
584 
(5) Consideration of the existing battery strate-
gies completed by the services. 
(6) A determination of how the military services 
can standardize the battery systems across the exist-
ing and future programs of such Armed Service. 
(7) Identify obstacles with respect to the raw ma-
terials required to achieve the goals of the strategy es-
tablished pursuant to subsection (a)(1) and determine 
ways to overcome such obstacles, including through 
the Industrial Base Analysis and Sustainment pro-
gram of the Department of Defense and the use of au-
thorities under the Defense Production Act (50 U.S.C. 
4501 et seq.). 
(8) Processes and guidelines for rapid testing 
and certification to field batteries. 
(9) A discussion of the workforce challenges, if 
any, that may inhibit the Department of Defense 
from achieving the goals of the strategy established 
pursuant to subsection (a)(1). 
(c) BRIEFINGS AND FINAL REPORT.— 
(1) INITIAL BRIEFING.—Not later than 180 days 
after enactment, the Secretary of Defense, in consulta-
tion with the Secretaries of the military departments 
and the other relevant elements of the Department of 
Defense, shall brief the Committees on Armed Services
585 
of the Senate and House of Representatives on the ap-
proach to establishing the strategy described in sub-
section (a)(1). 
(2) UPDATE
BRIEFINGS.—Not later than 180 
days after the date of the briefing under paragraph 
(1), and not less frequently than every 6 months 
thereafter until the strategy described in subsection 
(a)(1) is established, the Secretary of Defense, in con-
sultation with the Secretaries of the military depart-
ments and the other relevant elements of the Depart-
ment of Defense, shall provide to the Committees on 
Armed Services of the Senate and House of Represent-
atives a briefing on the status of the establishment of 
such strategy. 
(3) FINAL REPORT.—Not later than September 
30, 2026, the Secretary of Defense, in consultation 
with the Secretaries of the military departments and 
the other relevant elements of the Department of De-
fense, shall submit to the Committees on Armed Serv-
ices of the Senate and the House of Representatives a 
final report on the establishment of the strategy pur-
suant to subsection (a). 
(d) MILITARY DEPARTMENT DEFINED.—In this sec-
tion, the term ‘‘military department’’ has the meaning
586 
given such term in section 101(a) of title 10, United States 
Code. 
SEC. 884. ADVISORY PANEL ON THE REQUIREMENTS PROC-
ESS OF THE DEPARTMENT OF DEFENSE. 
(a) ESTABLISHMENT.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary of De-
fense shall establish and maintain within the Department 
of Defense an advisory panel on streamlining the require-
ments process of the Department of Defense. 
(b) MEMBERSHIP.— 
(1) IN GENERAL.—The advisory panel shall con-
sist of not more than 10 members to be appointed as 
follows: 
(A) Four by the Secretary of Defense. 
(B) Two by each Secretary of a military de-
partment. 
(2) REQUIREMENTS FOR APPOINTMENTS.— 
(A) 
EXPERIENCE.—Members 
appointed 
under paragraph (1) shall have experience in 
matters relating to— 
(i) requirements processes of the De-
partment of Defense; or 
(ii) innovative requirements processes 
and product development methods of the 
private sector.
589 
(F) 
make 
legislative 
and 
policy 
rec-
ommendations to improve requirements processes 
and practices to field the operational capabilities 
necessary to outpace near-peer competitors, pro-
vide data and analytical insight, and support an 
integrated budget that is aligned with the most 
recent national defense strategy required under 
section 113(g) of title 10, United States Code. 
(d) ADMINISTRATIVE MATTERS.—The Secretary of De-
fense shall provide the advisory panel established pursuant 
to subsection (a) with timely access to appropriate informa-
tion, data, resources, and analysis so that the advisory 
panel may conduct a thorough and independent assessment 
as required under such subsection. 
(e) ANNUAL REPORTS.—Not later than September 30, 
2025, and annually thereafter, the advisory panel shall sub-
mit to the Secretary of Defense and the Committees on 
Armed Services of the Senate and the House of Representa-
tives a report describing the results of the activities of the 
advisory panel during the preceding year. 
(f) TERMINATION.—The advisory panel shall termi-
nate on the date that is three years after the date of the 
establishment of the advisory panel pursuant to subsection 
(a).
590 
SEC. 885. PROPOSAL FOR PAYMENT OF COSTS FOR CERTAIN 
GOVERNMENT ACCOUNTABILITY OFFICE BID 
PROTESTS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Comptroller General 
of the United States, in coordination with the Secretary of 
Defense, shall submit to the covered committees a proposal 
that includes the following: 
(1) A process for enhanced pleading standards 
described in subsection (b). 
(2) The benchmarks described in subsection (c). 
(3) A process for payment by an unsuccessful 
party in a covered protest to the Government and the 
contractor awarded the contract that was the subject 
of the bid protest in accordance with the benchmarks 
described in subsection (c). 
(b) ENHANCED PLEA STANDARDS.—The process for 
enhanced pleading standards described in this subsection is 
a process under which the Comptroller General shall apply 
enhanced pleading standards, as developed by the Comp-
troller General in coordination with the Secretary of De-
fense, to an interested party with respect to a covered pro-
test submitted by such interested party for which such inter-
ested party is seeking access to administrative records of 
the Department of Defense, prior to making a determina-
tion with respect to such access.
591 
(c) BENCHMARKS.—The benchmarks described in this 
subsection are as follows: 
(1) A chart of the average costs to the Depart-
ment of Defense and the Government Accountability 
Office of a covered protest based on the value of the 
contract that is the subject of the covered protest. 
(2) A chart of the costs of the lost profit rates of 
the contractor awarded a contract that was the subject 
of a covered protest after such award. 
(d) LOST PROFIT CALCULATION.—With respect to con-
tracts that are the subject of a covered protest, the lost profit 
rates under subsection (c)(2) shall be equal to the profit that 
the contractor awarded the contract would have earned if 
the contractor has performed under such contract during 
the period performance under such contract by such con-
tractor was suspended under section 3553(d) of title 31, 
United States Code, pursuant to such covered protest. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘covered committees’’ means the 
following: 
(A) The congressional defense committees. 
(B) The Committee on Oversight and Ac-
countability of the House of Representatives. 
(C) The Committee on Homeland Security 
and Governmental Affairs of the Senate.
592 
(2) The term ‘‘covered protest’’ means a protest 
submitted by an interested party to the Comptroller 
General under chapter 35 of title 31, United States 
Code, for a determination by the Comptroller General 
under such chapter. 
(3) The terms ‘‘interested party’’ and ‘‘protest’’ 
have the meanings given such terms in section 3551 
of title 31, United States Code. 
(f) DOLLAR THRESHOLD
FOR TASK ORDER PRO-
TESTS.—Section 3406(f)(1)(B) of title 10, United States 
Code, is amended by striking ‘‘$25,000,000’’ and inserting 
‘‘$35,000,000’’. 
SEC. 886. BRIEFINGS, CERTIFICATION, AND LIMITATION ON 
AVAILABILITY OF FUNDS RELATED TO FUEL 
SERVICES 
FINANCIAL 
MANAGEMENT 
CON-
TRACTS. 
(a) BRIEFING ON BID PROTEST.—Not later than 30 
days after the date of the enactment of this Act, the Sec-
retary of Defense shall provide to the Committees on Armed 
Services of the Senate and the House of Representatives a 
briefing on— 
(1) the results of the bid protest published by the 
Comptroller General of the United States on August 
28, 2024 (B-420857.8, B-420857.9, relating to Kropp 
Holdings, Inc.), including with regard to the element
593 
relating to consideration of the conflicts of interest 
mitigation plan; and 
(2) the proposed next steps with respect to the 
acquisition of financial management services for De-
partment of Defense fuel contracts. 
(b) BRIEFING ON CONFLICT OF INTEREST.—Not later 
than 30 days after the date of the enactment of this Act, 
the Secretary shall provide to the Committees on Armed 
Services of the Senate and the House of Representatives a 
briefing on how the Secretary will ensure that price sen-
sitive information is not shared between fuel financial man-
agement entities and fuel provider entities. 
(c) CERTIFICATION.—Not later than 30 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the 
Senate and House of Representatives a written certification 
that no conflict of interest exists with respect to a contract 
for financial management services for fuel contracts of the 
Department of Defense. 
(d) LIMITATION ON AVAILABILITY OF FUNDS.—On and 
after June 1, 2025, the Secretary of Defense may not obli-
gate or expend funds authorized to be appropriated by this 
Act or otherwise made available for fiscal year 2025 on any 
contract for financial management services for fuel con-
tracts of the Department of Defense in which the contractor
594 
is also a fuel provider until the Committees on Armed Serv-
ices of the Senate and House of Representatives receive the 
briefing described in subsection (b) and certification de-
scribed in subsection (c). 
SEC. 887. IMPLEMENTATION OF COMPTROLLER GENERAL 
RECOMMENDATIONS RELATING TO CERTAIN 
SPARE PARTS FOR F–35 AIRCRAFT. 
(a) IN GENERAL.—The Secretary of Defense, acting 
through the Under Secretary of Defense for Acquisition and 
Sustainment, shall implement the recommendations con-
tained in the report of the Comptroller General of the 
United States published on May 23, 2023, and titled ‘‘F– 
35 Program: DOD Needs Better Accountability for Global 
Spare Parts and Reporting of Losses Worth Millions’’ 
(GAO-23-106098). 
(b) REPORT.—Not later than December 31, 2025, the 
Secretary shall submit to Congress a report on the progress 
of the implementing recommendations as required by sub-
section (a). 
SEC. 888. TRACKING AWARDS MADE THROUGH OTHER 
TRANSACTION AUTHORITY. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Under Secretary of 
Defense for Acquisition and Sustainment shall establish a 
process to track the number and value of awards to small
596 
concern’’ under section 3(a) of the Small Business Act 
(15 U.S.C. 632(a)). 
TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND 
MANAGEMENT 
Subtitle A—Office of the Secretary of Defense and Related Matters 
Sec. 901. Requirement to notify Congress when Deputy Secretary of Defense is 
performing functions and duties of Secretary of Defense. 
Sec. 902. Establishment of Department of Defense Performance Improvement Of-
ficer. 
Sec. 903. Enhanced coordination on international cooperation activities. 
Sec. 904. Increase in authorized number of Deputy Assistant Secretaries of De-
fense. 
Sec. 905. Modifications to the Office of Strategic Capital. 
Sec. 906. Limitation on availability of funds until Department of Defense com-
plies with certain legal requirements. 
Sec. 907. Matters relating to Assistant Secretary of Defense for Special Oper-
ations and Low Intensity Conflict. 
Sec. 908. Inclusion in defense planning guidance of guidance on size, structure, 
and posture of special operations forces. 
Sec. 909. Review of roles and responsibilities of the Chief Talent Management Of-
ficer and the Office of the Under Secretary of Defense for Per-
sonnel and Readiness. 
Sec. 910. Plan for adequate staffing of Office of Assistant Secretary of Defense for 
Industrial Base Policy and Joint Production Accelerator Cell. 
Subtitle B—Other Department of Defense Organization and Management 
Matters 
Sec. 921. Department of Defense Senior Intelligence Oversight Official. 
Sec. 922. Codification of the Joint Federated Assurance Center. 
Sec. 923. Codification of additional staff corps of the Navy. 
Sec. 924. Establishment of Office of Expanded Competition. 
Sec. 925. Counter unmanned aerial systems task force. 
Sec. 926. Affiliate relationships between Army special operations forces and com-
bat-enabling units of general purpose forces. 
Sec. 927. Force sizing methodology.
597 
Subtitle A—Office of the Secretary 
of Defense and Related Matters 
SEC. 901. REQUIREMENT TO NOTIFY CONGRESS WHEN DEP-
UTY 
SECRETARY 
OF 
DEFENSE 
IS 
PER-
FORMING FUNCTIONS AND DUTIES OF SEC-
RETARY OF DEFENSE. 
Section 132(b) of title 10, United States Code, is 
amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; 
(2) by striking ‘‘The Deputy Secretary shall act’’ 
and inserting the following: 
‘‘(2)(A) The Deputy Secretary shall act’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) If the Secretary is unable to perform the func-
tions and duties of the office as described in subparagraph 
(A), the Deputy Secretary, or any other individual per-
forming such functions and duties in accordance with ap-
plicable law, shall, not later than 24 hours before any 
planned transfer of such functions and duties or 24 hours 
after any unplanned transfer of such functions and duties, 
notify the following of the transfer: 
‘‘(i) The Committee on Armed Services, the Com-
mittee on Appropriations, and the majority and mi-
nority leaders of the Senate.
598 
‘‘(ii) The Committee on Armed Services, the 
Committee on Appropriations, the Speaker, and the 
minority leader of the House of Representatives.’’. 
SEC. 902. ESTABLISHMENT OF DEPARTMENT OF DEFENSE 
PERFORMANCE IMPROVEMENT OFFICER. 
(a) IN GENERAL.—Chapter 4 of title 10, United States 
Code, is amended by inserting after section 132 the fol-
lowing new section: 
‘‘§ 132a. Performance improvement officer 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) There is a Performance Improvement Offi-
cer of the Department of Defense, to be appointed by 
the Secretary of Defense from among the ranks of 
qualified individuals from the senior career civil serv-
ice. 
‘‘(2) The Performance Improvement Officer shall 
be appointed from among persons described in para-
graph (1) who have an extensive management or busi-
ness background and experience with managing large 
or complex organizations, organizational change 
management, or business transformation activities. 
‘‘(b) DEPUTY.—The Performance Improvement Officer 
shall be supported by a Deputy who shall be appointed by 
the Secretary of Defense from among the ranks of qualified 
individuals from the senior career civil service. The Deputy
599 
shall be the first assistant to the Performance Improvement 
Officer and shall assist that Officer in the performance of 
the duties of that position and shall act for, and exercise 
the powers of, the Officer when that Officer dies, resigns, 
or is otherwise unable to perform the functions and duties 
of the office. 
‘‘(c) DUTIES AND RESPONSIBILITIES.—Subject to the 
authority, direction, and control of the Secretary of Defense 
and the Deputy Secretary of Defense, the Performance Im-
provement Officer shall perform such duties, exercise such 
powers, and have such responsibilities as the Secretary or 
the Deputy Secretary may prescribe, including the fol-
lowing: 
‘‘(1) Responsibility for updating and imple-
menting the Strategic Management Plan of the De-
partment of Defense required by section 904(d) of the 
National Defense Authorization Act of Fiscal Year 
2008 (Public Law 110–181; 10 U.S.C. note prec. 
2201). 
‘‘(2) Responsibility for chairing the Defense Per-
formance Improvement Council (or any successor or-
ganization). 
‘‘(3) Responsibility for the Defense Performance 
Improvement Framework, as established under section 
125a of this title.
600 
‘‘(4) Responsibility for the execution of not fewer 
than two annual meetings of the Defense Management 
Action Group (or any successor organization) with 
agendas relating to the Strategic Management Plan 
described in paragraph (1). 
‘‘(5) Oversight of transformational business mod-
ernization and business process re-engineering of the 
Department of Defense. 
‘‘(6) Oversight and tracking the implementation 
of— 
‘‘(A) solutions to solve issues identified by 
the High Risk List maintained by the Govern-
ment Accountability Office; and 
‘‘(B) other recommendations of such Office. 
‘‘(7) Serving as the lead official devoted to mod-
ernizing the business processes of the Department that 
serve as the baseline for all external acquisition and 
internal operations. 
‘‘(8) Oversight and management of the Defense 
Management Institute (as established pursuant to the 
memorandum of the Director of Administration and 
Management of the Department dated January 13, 
2023), or any successor organization.
601 
‘‘(9) Serving as co-chair of the Defense Business 
Council in accordance with section 2222(f)(1) of this 
title. 
‘‘(10) Maintaining authority for convening meet-
ings of personnel and organizations of the Depart-
ment on matters relating to the duties and respon-
sibilities described in this subsection.’’. 
(b) ADDITION OF PERFORMANCE IMPROVEMENT OFFI-
CER AS CO-CHAIR OF DEFENSE BUSINESS COUNCIL.—Sec-
tion 2222(f)(1) of title 10, United States Code, is amended, 
in the second sentence— 
(1) by striking ‘‘chaired’’ and inserting ‘‘co- 
chaired’’; and 
(2) by inserting ‘‘and the Performance Improve-
ment Officer’’ after ‘‘Officer’’. 
(c) GUIDANCE REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall issue rules, regulations, policies, or other 
guidance (as appropriate)— 
(1) to clearly delineate the authorities and re-
sponsibilities of the Performance Improvement Officer 
of the Department of Defense established under section 
132a of title 10, United States Code, as added by sub-
section (a); and
602 
(2) setting forth a charter for the office (includ-
ing personnel, facilities, and other infrastructure) 
supporting the position of the Performance Improve-
ment Officer. 
SEC. 903. ENHANCED COORDINATION ON INTERNATIONAL 
COOPERATION ACTIVITIES. 
(a) UPDATE OF RESPONSIBILITIES OF THE UNDER 
SECRETARY
OF
DEFENSE
FOR
ACQUISITION
AND 
SUSTAINMENT.— 
(1) IN GENERAL.—Section 133b(b) of title 10, 
United States Code, is amended— 
(A) in paragraph (8), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (9)(C), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(10) advising the Secretary on, establishing 
policies on, and supervising, the activities of the De-
partment relating to international cooperation and 
agreements regarding industrial base collaboration 
and coordination, including cooperative development 
and 
co-production, 
reciprocal 
production, 
exportability considerations, supply chain integra-
603 
tion, security of supply chain agreements, and acqui-
sition and cross-service agreements.’’. 
(2) GUIDANCE REQUIRED.—Not later than July 
1, 2025, the Secretary of Defense shall update relevant 
policies and guidance related to the duties of the 
Under Secretary of Defense for Acquisition and 
Sustainment prescribed in section 133b(b)(10) of title 
10, United States Code, as added by paragraph (1). 
(b) CROSS-FUNCTIONAL TEAMS.— 
(1) ESTABLISHMENT.—Not later than July 1, 
2025, the Secretary of Defense shall establish not 
fewer than two Cross-Functional Teams to coordinate 
and support international cooperation activities of 
the Department of Defense. 
(2) PURPOSE.—Of the Cross-Functional Teams 
required under paragraph (1)— 
(A) at least one shall be dedicated to a geo-
graphic area of interest, such as a specific coun-
try or subset of an area of responsibility for a 
geographic combatant command; and 
(B) at least one shall be dedicated to a func-
tional area of interest, such as munitions pro-
duction, logistics, or additive manufacturing. 
(3) 
PARTICIPATION.—The 
Cross-Functional 
Teams established under paragraph (1)—
604 
(A) shall include representation from— 
(i) the Office of the Under Secretary of 
Defense for Policy; 
(ii) the Office of the Under Secretary 
of Defense for Acquisition and Sustainment; 
and 
(iii) the Office of the Under Secretary 
of Defense for Research and Engineering; 
and 
(B) may include such other participants 
from across the Department of Defense as the 
Secretary of Defense determines appropriate. 
(4) 
CHAIRPERSON.—Each 
Cross-Functional 
Team shall have a Chairperson who shall be des-
ignated by the Secretary of Defense from among the 
representatives on the Team from the Offices specified 
in paragraph (3)(A). 
(c) STUDY
ON CAPACITY
FOR EXPANDED INTER-
NATIONAL COOPERATION ACTIVITIES.— 
(1) IN GENERAL.—Not later than March 1, 2025, 
the Secretary of Defense shall seek to enter into a con-
tract with a federally funded research and develop-
ment center or a university-affiliated nonprofit orga-
nization to—
605 
(A) conduct a study with respect to whether 
the organization, resourcing, manning, and 
training of the Department of Defense for inter-
national cooperation activities is sufficient to 
support expanded demand for security coopera-
tion activities with countries that are allies and 
partners of the United States; and 
(B) submit to the Secretary a report on the 
results of the study. 
(2) ELEMENTS.—The study conducted under 
paragraph (1) shall include the following: 
(A) An assessment of the roles and respon-
sibilities of the Under Secretary of Defense for 
Policy, the Deputy Assistant Secretary of De-
fense for International and Industry Engage-
ment, and any other officials the Secretary con-
siders appropriate to include, to reduce overlap 
and increase cooperation between components of 
the Department of Defense with respect to inter-
national cooperation activities. 
(B) An identification and assessment of 
mechanisms for coordination with the Depart-
ment of State with respect to such activities. 
(C) An identification and assessment of ex-
isting tools in the Department of Defense to sup-
606 
port international cooperation, including the 
Global Research Watch Program and the inter-
national research offices of the military depart-
ments. 
(D) An identification of industry fora, 
training or wargaming opportunities, and exer-
cise events that could be leveraged to support in-
creased international cooperation activities. 
(E) An assessment of the success, as of the 
date of the enactment of this Act, in integrating 
the defense industrial bases of the United States 
and countries that are allies and partners of the 
United States, including recommendations with 
respect to— 
(i) goals for the end-state of that inte-
gration; and 
(ii) how to integrate those goals into 
the strategic planning documents and guid-
ance of the Department of Defense. 
(F) An identification of additional opportu-
nities for international defense industrial base 
cooperation and specific challenges to acting on 
those opportunities. 
(G) Any other matter the Secretary of De-
fense determines relevant.
607 
(3) SUBMISSION TO CONGRESS.—Not later than 
September 1, 2025, the Secretary of Defense shall sub-
mit to the congressional defense committees— 
(A) the report received by the Secretary 
under paragraph (1)(B); and 
(B) any comments of the Secretary with re-
spect to such report. 
(4) NONPROFIT
ORGANIZATION
DEFINED.—In 
this subsection, the term ‘‘nonprofit organization’’ 
means an organization described in section 501(c)(3) 
of the Internal Revenue Code of 1986 and exempt 
from tax under section 501(a) of such Code. 
SEC. 904. INCREASE IN AUTHORIZED NUMBER OF DEPUTY 
ASSISTANT SECRETARIES OF DEFENSE. 
Section 138(e) of title 10, United States Code, is 
amended by striking ‘‘60’’ and inserting ‘‘62’’. 
SEC. 905. MODIFICATIONS TO THE OFFICE OF STRATEGIC 
CAPITAL. 
(a) IN GENERAL.—Section 149 of title 10, United 
States Code, is amended— 
(1) by redesignating subsection (e) as subsection 
(f); 
(2) by inserting after subsection (d) the following 
new subsection:
608 
‘‘(e) PILOT PROGRAM ON CAPITAL ASSISTANCE TO 
SUPPORT DEFENSE INVESTMENT
IN
THE INDUSTRIAL 
BASE.— 
‘‘(1) To the extent and in such amounts as spe-
cifically provided in advance in appropriations Acts 
for the purposes detailed in this subsection, the Sec-
retary of Defense, acting through the Director, may 
carry out a pilot program under this subsection to 
provide capital assistance to eligible entities for eligi-
ble investments to develop technologies that support 
the duties and elements of the Office and meet the 
needs of the Department of Defense. 
‘‘(2)(A) An eligible entity seeking capital assist-
ance for an eligible investment under this subsection 
shall submit to the Director an application at such 
time, in such manner, and containing such informa-
tion as the Director may require. 
‘‘(B) The Director shall establish criteria for se-
lecting among eligible investments for which applica-
tions are submitted under subparagraph (A). The cri-
teria shall include— 
‘‘(i) the extent to which an investment supports 
the national security or economic interests of the 
United States;
609 
‘‘(ii) the likelihood that capital assistance pro-
vided for an investment would enable the investment 
to proceed sooner than the investment would otherwise 
be able to proceed; and 
‘‘(iii) the creditworthiness of an investment. 
‘‘(3)(A)(i) To the extent and in such amounts as 
specifically provided in advance in appropriations 
Acts for the purposes detailed in this subsection, the 
Director may provide loans or loan guarantees to fi-
nance or refinance the costs of an eligible investment 
selected pursuant to paragraph (2)(B). 
‘‘(ii)(I)(aa) Except as provided under item 
(bb), the interest rate on a loan provided under 
clause (i) shall be not less than the yield on mar-
ketable United States Treasury securities of a 
similar maturity to the maturity of the loan on 
the date of execution of the loan agreement. 
‘‘(bb) The Director may waive the re-
quirement under item (aa) with respect to 
an investment if the investment is deter-
mined by the Secretary of Defense to be 
vital to the national security of the United 
States. 
‘‘(cc) The Director shall establish sepa-
rate and distinct criteria for interest rates
610 
for loan guarantees with private sector lend-
ing institutions. 
‘‘(II) The final maturity date of a loan pro-
vided under clause (i) shall be not later than 50 
years after the date on which the loan was pro-
vided. 
‘‘(III) A loan provided under clause (i) may 
be paid earlier than is provided for under the 
loan agreement without a penalty. 
‘‘(IV)(aa) A loan provided under clause (i) 
shall not be subordinated to the claims of any 
holder of investment obligations in the event of 
bankruptcy, insolvency, or liquidation of the ob-
ligor. 
‘‘(bb) The Director may waive the require-
ment under item (aa) with respect to the invest-
ment in order to mitigate risks to loan repay-
ment. 
‘‘(V) The Director may sell to another enti-
ty or reoffer into the capital markets a loan pro-
vided under clause (i) if the Director determines 
that the sale or reoffering can be made on favor-
able terms. 
‘‘(VI) Any loan guarantee provided under 
clause (i) shall specify the percentage of the prin-
611 
cipal amount guaranteed. If the Secretary deter-
mines that the obligor of a loan guaranteed by 
the Department of Defense defaults on the loan, 
the Director shall pay the holder, or such other 
party, as specified in the loan guarantee agree-
ment. 
‘‘(VII) The Director shall establish a credit 
rating system to ensure a reasonable assurance of 
repayment. The system may include use of exist-
ing credit rating agencies where appropriate. 
‘‘(VIII) Loans and loan guarantees pro-
vided under clause (i) shall be subject to such 
other terms and conditions and contain such 
other covenants, representations, warranties, and 
requirements (including requirements for audits) 
as the Secretary determines appropriate. 
‘‘(IX) Loans and loan guarantees provided 
under clause (i) shall be subject to the require-
ments of the Federal Credit Reform Act of 1990 
(2 U.S.C. 661 et seq.). 
‘‘(B) Subject to appropriations Acts, the Di-
rector may provide technical assistance with re-
spect to developing and financing investments to 
eligible entities seeking capital assistance for eli-
612 
gible investments and eligible entities receiving 
capital assistance under this subsection. 
‘‘(C)(i) To the extent and in such amounts 
as specifically provided in advance in appro-
priations Acts for the purposes detailed in this 
subsection, the Director shall provide to an eligi-
ble investment selected pursuant to paragraph 
(2)(B) the amount of capital assistance necessary 
to carry out the investment. 
‘‘(ii) All financial transactions conducted 
under this subsection shall be conducted in 
United States dollars. 
‘‘(4) The requirements of subsection (d) shall 
apply to eligible investments under this subsection. 
‘‘(5)(A)(i) There is established in the Treasury of 
the United States a Department of Defense Credit 
Program Account to make and guarantee loans under 
this subsection in accordance with section 502 of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 
‘‘(ii) The Credit Program Account shall 
consist of amounts appropriated pursuant to the 
authorization of appropriations. 
‘‘(B) To the extent and in such amounts as spe-
cifically provided in advance in appropriations Acts 
for the purposes detailed in this subsection, the Direc-
613 
tor is authorized to pay, from amounts in the Depart-
ment of Defense Credit Program Account— 
‘‘(i) the cost, as defined in section 502 of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 
661a), of loans and loan guarantees and other 
capital assistance; 
‘‘(ii) administrative expenses associated 
with activities under this subsection; 
‘‘(iii) project-specific transaction costs; and 
‘‘(iv) the cost of providing support author-
ized by this subsection. 
‘‘(6) The Secretary of Defense may prescribe such 
regulations as the Secretary determines to be appro-
priate to carry out this subsection. 
‘‘(7) Not later than the first Monday in Feb-
ruary of a fiscal year, the Secretary of Defense shall 
submit to the congressional defense committees an an-
nual report describing activities carried out pursuant 
to this subsection in the preceding fiscal year and the 
goals of the Department of Defense in accordance with 
this subsection for the next fiscal year. 
‘‘(8) The Secretary of Defense shall notify the 
congressional defense committees not later than 30 
days after a use of loans, loan guarantees, or tech-
nical assistance under this subsection.
614 
‘‘(9)(A) The authority of the Director to make 
new loans and provide new loan guarantees under 
subparagraph (A)(i) of paragraph (3) shall expire on 
October 1, 2028. Any loans or loan guarantees pro-
vided under such subparagraph that are outstanding 
as of such date shall continue to be subject to the 
terms, conditions, and other requirements of this sub-
section. 
‘‘(B) The authority of the Director to provide 
technical assistance to eligible entities under subpara-
graph (B) of paragraph (3) shall expire on October 
1, 2028.’’; and 
(3) in subsection (f), as so redesignated— 
(A) in paragraph (2), by adding at the end 
the following new subparagraphs: 
‘‘(FF) Strategic maritime infrastructure. 
‘‘(GG) Critical minerals and materials.’’; 
and 
(B) by adding at the end the following new 
paragraph: 
‘‘(5) The term ‘obligor’ means a party that is 
primarily liable for payment of the principal or in-
terest on a loan.’’.
615 
(b) CONFORMING REPEAL.—Section 903(b) of the Na-
tional Defense Authorization Act for Fiscal Year 2024 (Pub-
lic Law 118–31; 10 U.S.C. 4811 note) is repealed. 
SEC. 906. LIMITATION ON AVAILABILITY OF FUNDS UNTIL 
DEPARTMENT OF DEFENSE COMPLIES WITH 
CERTAIN LEGAL REQUIREMENTS. 
Of the funds authorized to be appropriated by this Act 
or otherwise made available for fiscal year 2025 for the Of-
fice of the Assistant Secretary of Defense for Legislative Af-
fairs, not more than 90 percent may be obligated or ex-
pended until the date on which the Deputy Secretary of De-
fense certifies to the congressional defense committees that 
the Department of Defense has implemented section 1046 
of the James M. Inhofe National Defense Authorization Act 
for Fiscal Year 2023 (Public Law 117–263; 10 U.S.C. 111 
note). 
SEC. 907. MATTERS RELATING TO ASSISTANT SECRETARY 
OF DEFENSE FOR SPECIAL OPERATIONS AND 
LOW INTENSITY CONFLICT. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Secretary of Defense 
shall— 
(1) using a systematic approach, identify and 
update relevant policies, processes, and policy guid-
ance of the Department of Defense to fully implement
616 
and institutionalize the position of Assistant Sec-
retary of Defense for Special Operations and Low In-
tensity Conflict (in this section referred to as the ‘‘As-
sistant Secretary’’) to ensure that the Assistant Sec-
retary exercises authority, direction, and control of all 
special-operations peculiar administrative matters re-
lating to the organization, training, and equipping of 
special operations forces as required under section 
138(b)(2)(A)(i) of title 10, United States Code, in-
cluding— 
(A) special operations budgeting and pro-
gramming, legislative affairs, operations, per-
sonnel, and public affairs activities; and 
(B) protocols for participation in decision- 
making fora of the Department involving special 
operations forces; 
(2) develop a long-term staffing plan for the Sec-
retariat for Special Operations established under sec-
tion 139b(a) of title 10, United States Code, that in-
corporates strategic workforce planning principles, in-
cluding an articulation of the mission of the Secre-
tariat, an identification of critical skill gaps, and a 
strategy to hire personnel to address such gaps; 
(3) produce written departmental guidance to 
clarify the respective administrative roles of the
617 
Under Secretary of Defense for Policy and the Assist-
ant Secretary, including guidance to ensure adequate 
support for the Secretariat from Washington Head-
quarters Services, the Office of the Director of Admin-
istration and Management, Joint Service Provider, 
and other administrative offices of the Department; 
(4) establish a process for development, coordina-
tion, and issuance by the Assistant Secretary of spe-
cial operations instructions and other Department- 
wide policies, instructions, directive-type memoran-
dums, or other documents consistent with the respon-
sibilities assigned to the Assistant Secretary; 
(5) establish a process for the Assistant Secretary 
and the Commander of the United States Special Op-
erations Command to monitor the promotions of 
members of special operations forces and coordinate 
with the military departments regarding the assign-
ment, retention, training, professional military edu-
cation, and special and incentive pays of members of 
special operations forces consistent with the respon-
sibilities assigned to the Assistant Secretary and the 
Commander; and 
(6) establish a Center for Special Operations 
Analysis to lead special operations-related analysis 
for the Department and ensure senior civilian and
618 
military leaders have adequate analytical support for 
decision making related to the organization, training, 
equipping, and employment of special operations 
forces. 
(b) PLAN REQUIRED.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary of De-
fense shall submit to the congressional defense committees 
a plan, including appropriate milestones and timelines for 
completion, for achieving the requirements under subsection 
(a). 
SEC. 908. INCLUSION IN DEFENSE PLANNING GUIDANCE OF 
GUIDANCE ON SIZE, STRUCTURE, AND POS-
TURE OF SPECIAL OPERATIONS FORCES. 
(a) IN GENERAL.—As part of the annual Defense 
Planning Guidance issued under section 113(g)(2)(A) of 
title 10, United States Code, the Secretary of Defense shall 
include guidance with respect to the size, structure, posture, 
and other force development planning priorities specific to 
special operations forces. 
(b) REPORT REQUIRED.— 
(1) IN GENERAL.—Not later than March 1, 2025, 
and annually thereafter for five years, the Secretary 
of Defense shall submit to the congressional defense 
committees a report detailing how the Defense Plan-
ning Guidance issued under section 113(g)(2)(A) of
619 
title 10, United States Code, specifically accounts for 
the size, structure, posture, and other force develop-
ment planning priorities specific to special operations 
forces necessary— 
(A) to support the National Defense Strat-
egy under section 113(g)(1) of that title; and 
(B) to carry out the special operations ac-
tivities specified in section 167(k) of that title. 
(2) ELEMENTS.—The annual report required by 
paragraph (1) shall, at a minimum— 
(A) describe specific actions taken by the 
Secretary of the Army, the Secretary of the Air 
Force, and the Secretary of the Navy to coordi-
nate requirements for the organization, training, 
and equipping of special operations forces with 
the Assistant Secretary of Defense for Special 
Operations and Low Intensity Conflict, con-
sistent with responsibilities and authorities of 
the 
Assistant 
Secretary 
under 
section 
138(b)(2)(A) of title 10, United States Code, in 
order to achieve the objectives of— 
(i) the National Defense Strategy; 
(ii) the Joint Warfighting Concept; 
(iii) the Joint Concept for Competing; 
and
620 
(iv) the Strategy for Operations in the 
Information Environment; and 
(B) include specific recommendations devel-
oped by the Assistant Secretary of Defense for 
Special Operations and Low Intensity Conflict, 
in coordination with the Commander of the 
United States Special Operations Command, for 
the size, organization, budget, training, and 
equipping of special operations forces to meet the 
objectives of the strategies and concepts specified 
in clauses (i) through (iv) of subparagraph (A). 
SEC. 909. REVIEW OF ROLES AND RESPONSIBILITIES OF 
THE CHIEF TALENT MANAGEMENT OFFICER 
AND THE OFFICE OF THE UNDER SECRETARY 
OF DEFENSE FOR PERSONNEL AND READI-
NESS. 
(a) REVIEW REQUIRED.—The Secretary of Defense 
shall seek to enter into a contract or other agreement with 
a qualified organization to conduct a review of— 
(1) the roles and responsibilities of the Chief Tal-
ent Management Officer of the Department of Defense; 
and 
(2) the structure, mission, and operation of the 
Office of the Under Secretary of Defense Personnel 
and Readiness.
621 
(b) ELEMENTS.—In carrying out the review under 
subsection (a), the qualified organization concerned shall— 
(1) develop a strategy for the implementation of 
the position of the Chief Talent Management Officer 
of the Department of Defense pursuant to which the 
Officer shall be responsible for— 
(A) serving as the principal staff assistant 
to the Secretary of Defense and Deputy Secretary 
of Defense on matters relating to total force tal-
ent management within the Department of De-
fense, including talent management for military 
personnel (including members of the active and 
reserve components of the Armed Forces) and ci-
vilian personnel of the Department; 
(B) developing and implementing the over-
all talent strategy for military and civilian per-
sonnel in the Department of Defense, which shall 
include working across the military departments, 
Joint Staff, Office of the Secretary of Defense, 
and with interagency partners to lead the total 
force talent acquisition and management efforts 
of the Department; 
(C) overseeing updates and reforms for re-
mote and hybrid work, the use of enabling tech-
nology, practices for developing and tracking tal-
622 
ent, and encouraging movement of talent across 
components, agencies, and non-governmental en-
tities to help promote flexible career pathways 
and increase retention; 
(D) matching talent to needs within the De-
partment and integrate broad upskilling and 
reskilling programs to create the future national 
defense workforce; 
(E) coordinating all talent programs within 
the Department, including by developing path-
ways for permeability between uniformed and 
non-uniformed service opportunities and oppor-
tunities in the private sector; 
(F) maintaining, strengthening, and im-
proving the Department’s use of competitive 
service hiring authorities under title 5, United 
States Code, and the authorities available under 
section 129 of title 10, United States Code, to en-
sure the Department recruits and retains a 
strong and professional civilian workforce; 
(G) studying and promoting best practices 
for workforce development from the government, 
nonprofit, academic, and private sectors;
623 
(H) serving as the principal liaison between 
the Department and the national security talent 
industrial and innovation base; 
(I) carrying out programs, projects, and 
other activities to strengthen the national secu-
rity talent industrial and innovation base; 
(J) identifying rules, regulations, policies, 
and guidance related to military and civilian 
talent management that require change for the 
purposes of achieving efficiencies and meeting 
the personnel needs of the Department; 
(K) coordinating with the Joint Staff and 
the Commanders of the combatant commands to 
identify talent needs to meet operational chal-
lenges; 
(L) developing an employer brand for the 
Department of Defense that positions the Depart-
ment as a sought after employer; 
(M) developing a capability to rapidly pro-
totype workforce development and talent acquisi-
tion approaches with non-profit, academic, Gov-
ernment, and private sector agencies and organi-
zations; 
(N) seeking partnerships with multiple 
intermediary organizations, including academic
624 
institutions and other key stakeholders in the tal-
ent industrial and innovation base, to carry out 
activities to support the development of pools of 
qualified individuals with the skills and exper-
tise necessary to meet critical personnel needs of 
the Department of Defense, which may include 
activities such as the identification, training, 
and vetting of critical talent for the Department, 
including individuals with expertise relating to 
artificial intelligence, biotechnology, cybersecu-
rity, materials and manufacturing, business 
processes, venture capital, financial markets, and 
other critical areas; and 
(O) carrying out such other duties relating 
to talent management as may be assigned by the 
Secretary of Defense; 
(2) develop recommendations for any additional 
authorities or funding that may be required for the 
Chief Talent Management Officer to carry out the re-
sponsibilities specified in paragraph (1); 
(3) review the structure of the Office of the 
Under Secretary of Defense for Personnel and Readi-
ness and evaluate the ability of that Office to effec-
tively address total force talent management, includ-
ing military and civilian personnel; and
625 
(4) develop recommendations for restructuring 
the Office of the Under Secretary of Defense for Per-
sonnel and Readiness to ensure the Office is able to 
effectively address total force talent management as 
described in paragraph (3) and support the Chief 
Talent Management Officer in carrying out the re-
sponsibilities described in paragraph (1). 
(c) REPORT.—Not later than January 1, 2026, the 
Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Representa-
tives a report on the results of the review conducted under 
subsection (a). Such report shall include— 
(1) the results of the review with respect to each 
element specified in subsection (b); and 
(2) such other information as the Secretary de-
termines appropriate. 
(d) QUALIFIED ORGANIZATION DEFINED.—In this sec-
tion, the term ‘‘qualified organization’’ means an inde-
pendent organization with experience in the field of talent 
acquisition and management, as determined by the Sec-
retary of Defense.
626 
SEC. 910. PLAN FOR ADEQUATE STAFFING OF OFFICE OF 
ASSISTANT SECRETARY OF DEFENSE FOR IN-
DUSTRIAL BASE POLICY AND JOINT PRODUC-
TION ACCELERATOR CELL. 
(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a plan 
for adequately staffing the Office of the Assistant Secretary 
of Defense for Industrial Base Policy and the Joint Produc-
tion Accelerator Cell to advise and generate options for the 
Under 
Secretary 
of 
Defense 
for 
Acquisition 
and 
Sustainment relating to the duties described in section 
133b(b)(3) of title 10, United States Code, including— 
(1) identifying Chinese military companies, con-
tracting restrictions, and transactions involving for-
eign entities; 
(2) outbound investment monitoring; and 
(3) supply chain analysis, supplier health anal-
ysis, production capacity analysis, and such other 
analyses as the Under Secretary may require. 
(b) ELEMENTS.—The plan required by subsection (a) 
shall include the following: 
(1) An estimate of— 
(A) the number of personnel necessary to 
fulfill the responsibilities of the Office of the As-
sistant Secretary of Defense for Industrial Base
627 
Policy and the Joint Production Accelerator Cell 
in supporting the Under Secretary of Defense for 
Acquisition and Sustainment relating to the du-
ties described in section 133b(b)(3) of title 10, 
United States Code; and 
(B) associated funding across the period 
covered by the most recent future-years defense 
program under section 221 of that title. 
(2) A hiring plan, with milestones, for gradually 
increasing the number of personnel in the Office of the 
Assistant Secretary of Defense for Industrial Base 
Policy and the Joint Production Accelerator Cell to 
the number described in paragraph (1)(A). 
(3) A breakdown of the optimal mix of military, 
civilian, and contractor personnel in the Office of the 
Assistant Secretary of Defense for Industrial Base 
Policy and the Joint Production Accelerator Cell. 
(4) An identification of any anticipated funding 
shortfalls for personnel in the Office of the Assistant 
Secretary of Defense for Industrial Base Policy and 
the Joint Production Accelerator Cell across the pe-
riod covered by the most recent future-years defense 
program. 
(5) Any other matters the Secretary of Defense 
determines relevant.
628 
Subtitle B—Other Department of 
Defense Organization and Man-
agement Matters 
SEC. 921. DEPARTMENT OF DEFENSE SENIOR INTEL-
LIGENCE OVERSIGHT OFFICIAL. 
(a) IN GENERAL.—Subchapter I of chapter 21 of title 
10, United States Code, is amended by adding at the end 
the following: 
‘‘§ 430c. Senior intelligence oversight official 
‘‘(a) ESTABLISHMENT.—The Secretary of Defense, or 
a designee of the Secretary determined by regulations pre-
scribed by the Secretary, shall designate a civilian employee 
of the Department of Defense in the Senior Executive Serv-
ice to serve as the Senior Intelligence Oversight Official. 
‘‘(b) RESPONSIBILITIES.—The Senior Intelligence 
Oversight Official shall conduct independent oversight of all 
intelligence, counterintelligence, and intelligence-related ac-
tivities of the Department of Defense and shall have such 
other related responsibilities as may be determined by the 
Secretary. 
‘‘(c) ACCESS.—The Senior Intelligence Oversight Offi-
cial shall have— 
‘‘(1) access to all information necessary to carry 
out the responsibilities and functions of the Senior
629 
Intelligence Oversight Official, as determined by the 
Secretary; and 
‘‘(2) direct access to the Secretary of Defense and 
the Deputy Secretary of Defense, as circumstances re-
quire in the determination of the Senior Intelligence 
Oversight Official.’’. 
(b) REVIEW OF REGULATIONS.—The Secretary of De-
fense shall review and update, as appropriate, Department 
of Defense Directive 5148.13, and any associated or suc-
cessor regulation or directive, to conform to section 430c 
of title 10, United States Code, as added by subsection (a). 
SEC. 922. CODIFICATION OF THE JOINT FEDERATED ASSUR-
ANCE CENTER. 
(a) IN GENERAL.—Subchapter III of chapter 303 of 
title 10, United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 4128. Joint Federated Assurance Center 
‘‘(a) ESTABLISHMENT.—There is in the Office of the 
Under Secretary of Defense for Research and Engineering 
a Joint Federated Assurance Center (referred to in this sec-
tion as the ‘Center’). 
‘‘(b) PURPOSE.—The purpose of the Center shall be to 
serve as a joint, Department-wide federation of organiza-
tions and capabilities to support the assurance needs of the 
Department of Defense by ensuring, pursuant to policies re-
630 
lated to hardware and software assurance and supply chain 
risk management, that the software and hardware devel-
oped, acquired, maintained, and used by the Department 
are free from intentional and unintentional vulnerability 
during the life-cycle of development and deployment of as-
sured, trustworthy defense systems. 
‘‘(c) GOVERNANCE.— 
‘‘(1) The Center shall be governed by an Execu-
tive Steering Group. The Executive Steering Group 
shall continually evaluate the Center’s capabilities to 
support the hardware and software assurance needs of 
the Department. 
‘‘(2) The Executive Steering Group shall be com-
posed of one or more representatives from each of the 
organizations that comprise the Center. 
‘‘(3) The Under Secretary of Defense for Re-
search and Engineering and the Under Secretary of 
Defense for Acquisition and Sustainment shall serve 
as co-Chairpersons of the Executive Steering Group. 
‘‘(d) DUTIES.—The duties of the Center are as follows: 
‘‘(1) Providing knowledge management capabili-
ties for hardware and software assurance for the De-
partment. 
‘‘(2) Providing Department-wide visibility on 
strategy, use cases, procurement, investment, and
631 
other relevant activities to aggregate, to the extent 
practicable, assurance tool purchases by the Depart-
ment. 
‘‘(3) Developing and standardizing policies, pro-
cedures, competencies, risk assessment methodologies, 
and independent validation and verification test ca-
pabilities— 
‘‘(A) to support timely and cost-effective 
fielding of current and future technologies to the 
Department; 
‘‘(B) to ensure sustainment of enduring ca-
pability needs across the life-cycle of Department 
of 
Defense 
programs 
and 
determine 
the 
sustainment factors related to the assurance of 
future hardware and software systems; 
‘‘(C) to increase efficiencies across Depart-
ment of Defense programs through the use of 
emerging assurance technologies; and 
‘‘(D) to leverage economies of scale through 
coordinated acquisition and use of hardware and 
software assurance technologies. 
‘‘(4) Promoting assurance capabilities for hard-
ware and software assurance— 
‘‘(A) to mature assessment criteria and en-
able scalable deployment of commercial best
632 
practices, such as through the fostering and mat-
uration of evidence-based assurance of trusted de-
fense microelectronics system needs, with empha-
sis on commercial security protocols that are 
transferable to defense applications; 
‘‘(B) to scale the Center for Department- 
wide access, through the resourcing of adequate 
personnel to address standardization and auto-
mation of data collection and analysis; 
‘‘(C) to utilize data from commercial assur-
ance processes to support the development of De-
partment hardware and software that meet 
standards, applications, and requirements, in-
cluding through comparative analysis and data 
modeling; 
‘‘(D) to seek and apply commercial best 
practices, where practicable, through industry 
collaboration; and 
‘‘(E) to develop and align Department pol-
icy, investments, and activities with commercial 
best practices, to the extent practicable. 
‘‘(5) For contracts for application-specific inte-
grated circuits designed by defense industrial base 
contractors, develop guidance for—
633 
‘‘(A) the consideration of evidence-based as-
surance processes and techniques that are in-
cluded in the contract data requirements list, to 
the extent practicable; 
‘‘(B) the use of commercial best practices, as 
applicable, for confidentiality, integrity and 
availability; and 
‘‘(C) the development of a library of cer-
tified third-party intellectual property for reuse, 
including streamlining legal mechanisms for 
data collection and sharing, and enhanced use of 
automation technology to achieve efficiency. 
‘‘(6) The assessment, creation, prototyping, mat-
uration, and maintenance of relevant assurance prac-
tices, including the validation and maturation of evi-
dence based assurance methods, for the development, 
procurement, and deployment of hardware and soft-
ware assurance tools and processes, including— 
‘‘(A) development and assessment of valida-
tion methods for such processes and techniques, 
in coordination with the developmental and 
operational test and evaluation community, as 
the Executive Steering Group determines nec-
essary;
634 
‘‘(B) development and assessment of threat 
models that comprehensively characterize the 
threat to microelectronics confidentiality, integ-
rity, and availability across the entire supply 
chain, and the design, production, packaging, 
and deployment cycle to support risk manage-
ment and risk mitigation; and 
‘‘(C) support development of guides to in-
form use and decision-making by program eval-
uators, program offices, and industry to meet 
software and hardware assurance requirements. 
‘‘(e) REVISED CHARTER.—Not later than 180 days 
after the date of the enactment of this section, the Secretary 
of Defense shall issue a revised charter for the Center. The 
charter shall set forth— 
‘‘(1) the role and authorities of the Center and 
the Executive Steering Group; 
‘‘(2) the requirement of the Center to establish 
guidelines for the development of improved software 
code vulnerability analysis and testing tools; 
‘‘(3) the requirement of the Center to establish 
guidelines for the development of improved hardware 
vulnerability testing and protection tools; and 
‘‘(4) the manner in which the Center will con-
nect to the Department’s major governance and
635 
resourcing processes to ensure the continuation of 
Center duties.’’. 
(b) BRIEFING REQUIRED.—Not later than 240 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall provide to the Committees on Armed Serv-
ices of the Senate and the House of Representatives a brief-
ing on the status of— 
(1) the establishment of the Joint Federated As-
surance Center under section 4218 of title 10, United 
States Code, as added by subsection (a); and 
(2) the revisions to the charter of the Center re-
quired under subsection (e) of such section 4128. 
(c) CONFORMING REPEAL.—Section 937 of the Na-
tional Defense Authorization Act for Fiscal Year 2014 (Pub-
lic Law 113–66; 10 U.S.C. 2224 note) is repealed. 
SEC. 923. CODIFICATION OF ADDITIONAL STAFF CORPS OF 
THE NAVY. 
(a) CODIFICATION.—Section 8090 of title 10, United 
States Code, is amended, in subsection (a)— 
(1) in paragraph (4), by striking ‘‘and’’; 
(2) by redesignating paragraph (5) as para-
graph (9); and 
(3) by inserting, after paragraph (4), the fol-
lowing new paragraphs: 
‘‘(5) the Supply Corps;
636 
‘‘(6) the Civil Engineer Corps; 
‘‘(7) the Nurse Corps; 
‘‘(8) the Medical Service Corps; and’’. 
(b) CONFORMING AMENDMENT.—Such section is fur-
ther amended, in subsection (b)(1), by striking ‘‘Medical 
Corps, the Dental Corps, the Judge Advocate General’s 
Corps, and the Chaplain Corps’’ and inserting ‘‘staff corps 
specified in subsection (a)’’. 
SEC. 924. ESTABLISHMENT OF OFFICE OF EXPANDED COM-
PETITION. 
(a) IN GENERAL.—Chapter 903 of title 10, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 9025. Office of Expanded Competition 
‘‘(a) ESTABLISHMENT.—There is in the Office of the 
Secretary of the Air Force an office to be known as the Of-
fice of Expanded Competition (in this section referred to 
as the ‘Office’). 
‘‘(b) DIRECTOR.—The head of the Office shall be the 
Director. The Director shall be appointed by the Secretary 
of the Air Force from among employees of the Department 
of Defense with requisite subject matter expertise who— 
‘‘(1) are in a Senior Executive Service position 
(as defined in section 3132 of title 5) at the time of 
appointment; or
637 
‘‘(2) are not in a Senior Executive Service posi-
tion at the time of appointment, but meet the Execu-
tive Core Qualifications (ECQs) for such a position. 
‘‘(c) DUTIES.—The duties of the Office are as follows: 
‘‘(1) In consultation with other components of 
the Department of Defense and the Federal Govern-
ment, conduct coordinated and integrated assessments 
of adversarial capital flows into industries or busi-
nesses of interest to the Department of Defense. 
‘‘(2) Identify and prioritize promising critical 
technologies and assets for the Joint Force in need of 
capital assistance, including critical technologies and 
assets available from foreign entities. 
‘‘(3) Fund investments in such technologies and 
assets, including supply chain technologies not always 
supported through direct investment. 
‘‘(4) Support the coordination and outreach ef-
forts of technology scouting and acquisition elements 
within the Department of Defense to enable invest-
ment decision-making by those elements that counter-
act entities employing adversarial capital flows 
against industries or businesses described in para-
graph (1), including the employment of relevant au-
thorities vested in other components of the Depart-
ment and the Federal Government.
638 
‘‘(5) Identify, accelerate, and sustain the estab-
lishment, research, development, construction, pro-
curement, leasing, consolidation, alteration, improve-
ment, modernization, and repair of tangible and in-
tangible assets vital to the national security of the 
United States. 
‘‘(6) Help the Department of Defense provide 
capital assistance to entities, including foreign enti-
ties, engaged in investments that facilitate the efforts 
of the Department. 
‘‘(7) Experiment, prototype, test, or validate 
Government-developed or commercially developed ana-
lytical tools, processes, and tradecraft to improve the 
due diligence and investment analysis processes for 
the Department of Defense, including the employment 
of relevant delegated authorities vested in other com-
ponents of the Department and the Federal Govern-
ment. 
‘‘(8) Assist the Secretary of Defense in developing 
access and placement using commercial means. 
‘‘(9) Otherwise engage with, coordinate, and col-
laborate with other components of the Department of 
Defense and the Federal Government to maximize ef-
ficiencies and promote whole-of-government solutions 
to protect the national security of the United States.
639 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘adversarial capital flow’ means 
an investment by— 
‘‘(A) the government of a country that is an 
adversary of the United States; or 
‘‘(B) an entity organized under the laws of, 
or otherwise subject to the jurisdiction of, such a 
country. 
‘‘(2) The term ‘capital assistance’ means a loan, 
loan guarantee, or technical assistance.’’. 
(b) BRIEFING.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of the Air Force 
shall provide to the congressional defense committees a 
briefing on the status of the implementation of the Office 
of Expanded Competition as required under section 9025 
of title 10, United States Code (as added by subsection (a)). 
SEC. 925. COUNTER UNMANNED AERIAL SYSTEMS TASK 
FORCE. 
(a) IN GENERAL.—Not later than 30 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall establish, or designate from existing organizations and 
personnel of the Department of Defense, a counter un-
manned aerial systems task force, to be known as the ‘‘C- 
UAS Task Force’’. 
(b) REVIEW OF MEMORANDA AND DIRECTIVES.—
640 
(1) IN GENERAL.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary of 
Defense and the Chairman of the Joint Chiefs of 
Staff, acting through the C-UAS Task Force, shall re-
view and, if necessary, consolidate and update all De-
partment of Defense memoranda and directives re-
lated to the countering of unmanned aircraft systems 
in United States airspace to provide clarity to and 
an expedited decision-making process for commanders 
with respect to effectively countering unmanned air-
craft systems or unmanned aircraft incursions at 
military installations in the United States. 
(2) INCLUDED MEMORANDA AND DIRECTIVES.— 
The memoranda and directives required to be re-
viewed and, if necessary, consolidated and updated 
under paragraph (1) include the following: 
(A) The Counter-Small Unmanned Aircraft 
Systems Strategy of the Department of Defense, 
dated January 7, 2021. 
(B) The Deputy Secretary of Defense Memo-
randum entitled ‘‘Risk-based Assessment in Sup-
port of Counter-Unmanned Aircraft Activities to 
Protect DOD Facilities and Assets’’ and dated 
May 7, 2020.
641 
(C) Deputy Secretary of Defense Policy 
Memorandum 16–003, entitled ‘‘Interim Guid-
ance for Countering Unmanned Aircraft’’ and 
dated August 18, 2016. 
(D) Deputy Secretary of Defense Policy 
Memorandum 17–00X, entitled ‘‘Supplemental 
Guidance for Countering Unmanned Aircraft’’ 
and dated July 5, 2017. 
(E) Chairman of the Joint Chiefs of Staff 
Notice 3124, entitled ‘‘Interim Guidance for 
Countering Unmanned Aircraft’’ and dated Feb-
ruary 8, 2017. 
(F) Other related general administrative 
notices of the Joint Staff. 
(G) Any other associated memoranda or di-
rectives of the Department of Defense relating to 
unmanned aircraft systems, as the Secretary of 
Defense and the Chairman of the Joint Chiefs of 
Staff determine necessary. 
(c) ISSUANCE OF UPDATED GUIDANCE.— 
(1) IN GENERAL.—Not later than 120 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall issue new memoranda, directives, and 
guidance related to authorities to counter unmanned 
aircraft systems.
643 
than 60 days after receiving the pre-briefing de-
scribed in paragraph (2). 
(d) REPORT ON EXISTING TRAINING EFFORTS.—Not 
later than 120 days after the date of the enactment of this 
Act, the Secretary of Defense shall submit to the congres-
sional defense committees a report on the counter-un-
manned aircraft systems training efforts of the Department 
of Defense in effect as of the date of the enactment of this 
Act. The report shall include— 
(1) a description of any training that is com-
monly provided to members of the Armed Forces on 
countering threats posed by unmanned aircraft sys-
tems; and 
(2) a summary of the training curriculum that 
is provided for installation commanders and deployed 
forces to counter unmanned aircraft systems. 
SEC. 926. AFFILIATE RELATIONSHIPS BETWEEN ARMY SPE-
CIAL OPERATIONS FORCES AND COMBAT-EN-
ABLING 
UNITS 
OF 
GENERAL 
PURPOSE 
FORCES. 
(a) LIMITATION.—None of the funds authorized to be 
appropriated by this Act or otherwise made available for 
fiscal year 2025 for the Department of Defense may be obli-
gated or expended to complete the special operations force 
structure reductions described in subsection (b) until the
644 
date on which the assessment required under subsection (c) 
is submitted to the congressional defense committees. 
(b) FORCE STRUCTURE REDUCTIONS DESCRIBED.— 
The special operations force structure reductions described 
in this subsection are the proposed reductions to the end 
strengths of the special operations forces of the Army an-
nounced by the Army on February 27, 2024, as part of the 
Total Army Analysis process. 
(c) ASSESSMENT OF FEASIBILITY AND ADVISABILITY 
OF AFFILIATE RELATIONSHIPS.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
the Army and the Assistant Secretary of Defense for 
Special Operations and Low Intensity Conflict shall 
jointly submit to the congressional defense committees 
a report assessing the feasibility and advisability of 
establishing affiliate relationships between units of the 
Army special operations forces and Army general 
purpose forces for the purpose of enhancing military 
readiness and effectiveness. 
(2) ELEMENTS.—The report required by para-
graph (1) shall include, at a minimum, the following: 
(A) An assessment of the feasibility and ad-
visability of establishing formal affiliate rela-
tionships between units of the Army special oper-
645 
ations forces and combat-enabling units of the 
Army general purpose forces, including units 
that perform the following missions: 
(i) Logistics. 
(ii) Intelligence. 
(iii) Communications. 
(iv) Explosive ordnance disposal. 
(v) Electronic warfare. 
(vi) Rotary wing support. 
(vii) Combat medicine. 
(viii) Information operations. 
(ix) Civil affairs. 
(x) Such other missions as the Sec-
retary and the Assistant Secretary consider 
relevant. 
(B) A summary of organic forces and as-
signed forces conducting the missions described 
in subparagraph (A) for Army special operations 
forces as of the date of the enactment of this Act. 
(3) CONSIDERATIONS.—In developing the report 
required by paragraph (1), the Secretary and the As-
sistant Secretary shall take into account the fol-
lowing:
646 
(A) The enabling requirements of both the 
Army special operations forces and the Army 
general purpose forces. 
(B) The availability of high-demand, low- 
density enabling capabilities of the Army general 
purpose forces. 
(C) Deployment-to-dwell standards. 
(D) The ability of Army general purpose 
forces and Army special operations forces to ful-
fill current service specific and joint force re-
quirements. 
(d) PLAN FOR ESTABLISHING AFFILIATE RELATION-
SHIPS.—If, in the report required by subsection (c)(1), the 
Secretary and the Assistant Secretary determine that it is 
feasible and advisable to establish formal affiliate relation-
ships between units of the Army special operations forces 
and combat-enabling units of the Army general purpose 
forces, then, not later than 270 days after the date of the 
enactment of this Act, the Secretary and the Assistant Sec-
retary shall jointly submit to the congressional defense com-
mittees a plan for establishing such relationships that in-
cludes, at a minimum, an identification of units to be affili-
ated and a timeline for doing so. 
(e) DEFINITIONS.—In this section:
647 
(1) The term ‘‘affiliate relationship’’ means a 
habitual relationship between a unit or units of the 
Army special operations forces and a combat-enabling 
unit or units of the Army general purpose forces pur-
suant to which the general and special operations 
forces units regularly train together, conduct exercises 
together, and when required, deploy together. 
(2) The term ‘‘special operations forces’’ means 
the forces identified under section 167(j) of title 10, 
United States Code, or a member of the Armed Forces 
carrying out special operations activities. 
(3) The term ‘‘special operations activities’’ 
means activities described in section 167(k) of title 
10, United States Code, and includes any support 
services provided for the execution such activities, in-
cluding logistics, communications, and intelligence 
activities. 
SEC. 927. FORCE SIZING METHODOLOGY. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall develop a methodology for analyzing United States 
military force sizing necessary to conduct activities below 
the threshold of traditional armed conflict in support of 
strategic competition, including the following: 
(1) Campaigning.
648 
(2) Building capacity of and security coopera-
tion with partner countries. 
(3) Information operations. 
(4) Civil affairs. 
(5) Irregular warfare. 
(6) Operational preparation of the environment. 
(b) REPORT REQUIRED.—Not later than 270 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall submit to the congressional defense commit-
tees a report on the methodology developed under subsection 
(a) that includes, at a minimum, the following: 
(1) An explanation of the methodology and how 
the methodology is intended to be applied to future 
force sizing analysis. 
(2) An articulation of the roles and responsibil-
ities of relevant officials, branches of the Armed 
Forces, and commands in utilizing the methodology. 
(3) Such other matters as the Secretary considers 
relevant. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
Sec. 1001. General transfer authority. 
Sec. 1002. Repeal of audit incentive element in report requirement of Financial 
Improvement and Audit Remediation Plan. 
Sec. 1003. Authority to use Defense Modernization Account funds for time-sen-
sitive equipment modernization. 
Sec. 1004. Extension of audit requirement for Department of Defense components. 
Sec. 1005. Revision of Department of Defense financial management regulation. 
Sec. 1006. Establishment of cross-functional team to oversee implementation of 
recommendations of Commission on Planning, Programming, 
Budgeting, and Execution Reform.
649 
Sec. 1007. Use of technology using artificial intelligence to facilitate audit of the 
financial statements of the Department of Defense for fiscal year 
2025. 
Subtitle B—Counterdrug Activities 
Sec. 1011. Support for counterdrug activities affecting flow of drugs into United 
States. 
Sec. 1012. Authority for detection and monitoring of illegal drugs regardless of 
destination. 
Sec. 1013. Review, assessment, and analysis of governance structure and strategy 
of Department of Defense counter-narcotics and counter- 
transnational organized crime activities. 
Subtitle C—Naval Vessels and Shipyards 
Sec. 1021. Briefing required in the event of a proposed reduction in battle force 
ships as part of the annual naval vessel construction plan and 
certification. 
Sec. 1022. Modification of authority to purchase used vessels under the National 
Defense Sealift Fund. 
Sec. 1023. Modifications to ship repair authorities. 
Sec. 1024. Improving Navy assessments required prior to start of construction on 
first ship of a shipbuilding program. 
Sec. 1025. Prohibition on contracting with shipyards controlled by a foreign ad-
versary country. 
Sec. 1026. Exception to prohibition of overhaul, repair, or maintenance of certain 
vessels in shipyards outside the United States or Guam. 
Sec. 1027. Strategy on development of naval rearm at sea capability. 
Sec. 1028. Authority to use incremental funding for the Virginia-class submarine 
program. 
Sec. 1029. Authority to use incremental funding to enter into a contract for the 
construction of an Arleigh Burke class destroyer. 
Sec. 1030. Pilot program on use of automated inspection technologies at ship-
yards. 
Sec. 1031. Requirements for the unmanned maritime autonomy architecture. 
Sec. 1032. Competitive demonstration of large and extra large unmanned under-
water vehicles. 
Sec. 1033. Requirement for mature ship design. 
Subtitle D—Counterterrorism 
Sec. 1041. Extension of prohibition on use of funds for transfer or release of indi-
viduals detained at United States Naval Station, Guantanamo 
Bay, Cuba, to the United States. 
Sec. 1042. Extension of prohibition on use of funds to construct or modify facili-
ties in the United States to house detainees transferred from 
United States Naval Station, Guantanamo Bay, Cuba. 
Sec. 1043. Extension of prohibition on use of funds for transfer or release of indi-
viduals detained at United States Naval Station, Guantanamo 
Bay, Cuba, to certain countries. 
Sec. 1044. Extension of prohibition on use of funds to close or relinquish control 
of United States Naval Station, Guantanamo Bay, Cuba. 
Subtitle E—Miscellaneous Authorities and Limitations 
Sec. 1051. Authority to contribute to innovation fund.
650 
Sec. 1052. Extension of authority for reimbursement of expenses for certain Navy 
mess operations. 
Sec. 1053. Assessments of casualties and fatalities during hostilities. 
Sec. 1054. Establishment of major mishap incident designation classification for 
Department of Defense incidents. 
Sec. 1055. Prohibition on use of funds for EcoHealth Alliance and the Wuhan In-
stitute of Virology. 
Sec. 1056. Prohibition on Department of Defense transportation of currency to 
Taliban or Islamic Emirate of Afghanistan. 
Sec. 1057. Prohibition on use of funds for the Badr Organization and related or-
ganizations. 
Sec. 1058. Limitation on use of funds pending provision of briefing on reliance 
of People’s Liberation Army on imported fossil fuels for energy. 
Sec. 1059. Prohibition on use of funds to support entertainment projects with ties 
to the Government of the People’s Republic of China. 
Subtitle F—Studies and Reports 
Sec. 1061. Chief of Navy Reserve annual report. 
Sec. 1062. Modification and extension of requirement for combatant command 
risk assessment for airborne intelligence, surveillance, and recon-
naissance. 
Sec. 1063. Extension of briefing requirement regarding civil authorities at the 
Southwest border. 
Sec. 1064. Extension of annual report on civilian casualties in connection with 
United States military operations. 
Sec. 1065. Review of irregular warfare authorities. 
Sec. 1066. Reports on approval and deployment of lethal autonomous weapon 
systems. 
Sec. 1067. Congressional notice regarding execute orders issued at the direction 
of the President or the Secretary of Defense. 
Sec. 1068. Mobility capability requirements study. 
Sec. 1069. Biodefense posture reviews. 
Sec. 1070. Briefings on attempts by aliens and foreign actors to access military 
installations without authorization. 
Sec. 1071. Report on resourcing of Arctic Strategy. 
Sec. 1072. Analyses and reports on air superiority of the Joint Force. 
Sec. 1073. Exercise for countering unmanned aerial systems. 
Sec. 1074. Report on operational plans of the Department of Defense. 
Sec. 1075. Quarterly reports on funerals at Arlington National Cemetery on hold 
until caisson services resume. 
Sec. 1076. Plan for enhancement of special operations riverine capability. 
Sec. 1077. Annual reports on the Postsecondary Education Complaint System. 
Sec. 1078. Study and report on Department of Defense use of unmanned ground 
vehicle systems manufactured by certain foreign entities. 
Subtitle G—Other Matters 
Sec. 1081. Introduction of entities in transactions critical to national security. 
Sec. 1082. Installation energy plans and assessment for reduction of reliance on 
Russian energy. 
Sec. 1083. Extension of the National Commission on the Future of the Navy. 
Sec. 1084. Modification of National Security Commission on Emerging Bio-
technology. 
Sec. 1085. Modification of defense sensitive support notification requirement.
651 
Sec. 1086. Plan for additional skill identifiers for Army Mountain Warfare 
School. 
Sec. 1087. Establishment of Department of Defense working group on multilateral 
artificial intelligence coordination. 
Sec. 1088. Resumption of caisson services at funeral services at Arlington Na-
tional Cemetery. 
Sec. 1089. Liaison with Counter Unmanned Aerial Systems Task Force. 
Sec. 1090. Responding to unmanned aircraft systems incursions. 
Sec. 1091. Prioritization of accreditation of sensitive compartmented information 
facilities supporting DX-rated programs. 
Sec. 1092. Establishment of national security capital forum. 
Sec. 1093. Implementation of Comptroller General recommendations relating to 
the food program of the Department of Defense. 
Sec. 1094. Pilot program to provide military aircraft support to air shows. 
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 
2025 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 $6,000,000,000. 
(3) EXCEPTION FOR TRANSFERS BETWEEN MILI-
TARY
PERSONNEL
AUTHORIZATIONS.—A transfer of
652 
funds between military personnel authorizations 
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 Congress. 
(c) EFFECT ON AUTHORIZATION AMOUNTS.—A trans-
fer made from one account to another under the authority 
of this section shall be deemed to increase the amount au-
thorized for the account to which the amount is transferred 
by an amount equal to the amount transferred. 
(d) NOTICE
TO
CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under sub-
section (a). 
SEC. 1002. REPEAL OF AUDIT INCENTIVE ELEMENT IN RE-
PORT 
REQUIREMENT 
OF 
FINANCIAL 
IM-
PROVEMENT AND AUDIT REMEDIATION PLAN. 
Section 240b(b)(1)(B) of title 10, United States Code, 
is amended by striking clause (ix).
653 
SEC. 1003. AUTHORITY TO USE DEFENSE MODERNIZATION 
ACCOUNT 
FUNDS 
FOR 
TIME-SENSITIVE 
EQUIPMENT MODERNIZATION. 
(a) IN GENERAL.—Section 3136(d) of title 10, United 
States Code, is amended by adding at the end the following 
new paragraphs: 
‘‘(5) For procuring and integrating available 
commercial technologies and services to satisfy a joint 
urgent operational need, joint emergent operational 
need, or a validated service requirement. 
‘‘(6) For providing infrastructure to support De-
partment goals of accelerating the fielding and adop-
tion of new capabilities.’’. 
(b) LIMITATION.—Paragraphs (5) and (6) of sub-
section (d) of section 3136 of title 10, United States Code, 
as added by subsection (a), shall apply only with respect 
to funds made available, and transferred to the Defense 
Modernization Account, on or after the date of the enact-
ment of this Act. 
SEC. 1004. EXTENSION OF AUDIT REQUIREMENT FOR DE-
PARTMENT OF DEFENSE COMPONENTS. 
Section 1004(a) of the National Defense Authorization 
Act for Fiscal Year 2024 (Public Law 118–81; 10 U.S.C. 
240d note) is amended by striking ‘‘During fiscal year 
2024, and during each of the nine fiscal years thereafter,’’
654 
and inserting ‘‘During each of fiscal years 2024 through 
2034,’’. 
SEC. 1005. REVISION OF DEPARTMENT OF DEFENSE FINAN-
CIAL MANAGEMENT REGULATION. 
(a) Not later than September 30, 2026, the Under Sec-
retary of Defense (Comptroller) shall revise the Department 
of Defense Financial Management Regulation 7000.14-R. 
The Under Secretary shall ensure that the revised regula-
tion— 
(1) is consistent and clear throughout; 
(2) includes updated guidance with respect to 
legislative and regulatory requirements; and 
(3) does not include any outdated guidance or 
guidance subject to change annually in an annual 
appropriations Act. 
(b) CONSIDERATIONS.—In revising the regulation 
under subsection (a), the Under Secretary shall— 
(1) prioritize clarity and accessibility in the lan-
guage and direction provided, including improve-
ments to the coordination and approval process for 
recommended changes; 
(2) review and adopt modern financial practices 
that better align to current development and produc-
tion cycles;
655 
(3) consider information technology solutions to 
improve the accessibility and usability of the Finan-
cial Management Regulation; and 
(4) in consultation with the Cross-Functional 
Team established under section 1006 consider the rec-
ommendations of the Commission on Planning, Pro-
gramming, Budgeting, and Execution Reform. 
(c) BRIEFING.—Not later than 90 days after the date 
of the enactment of this Act, and once every 180 days there-
after during the three-year period following such date of en-
actment, the Under Secretary shall provide to the congres-
sional defense committees a briefing on the efforts to revise 
the Financial Management Regulation. Each such briefing 
shall include each of the following: 
(1) The progress made in revising the Financial 
Management Regulation. 
(2) The plan and timeline for completing revi-
sions to the Financial Management Regulation. 
(3) Any barriers to the ability of the Department 
of Defense to revising the Financial Management Reg-
ulation as required under this section. 
(4) Any legislation required to complete revisions 
of the Financial Management Regulation. 
(5) Any other information determined relevant 
by the Secretary.
656 
SEC. 1006. ESTABLISHMENT OF CROSS-FUNCTIONAL TEAM 
TO 
OVERSEE 
IMPLEMENTATION 
OF 
REC-
OMMENDATIONS OF COMMISSION ON PLAN-
NING, PROGRAMMING, BUDGETING, AND EXE-
CUTION REFORM. 
(a) IN GENERAL.—Not later than 60 days after the 
date of the enactment of this Act, using the authority pro-
vided under section 911(c) of the National Defense Author-
ization Act for Fiscal Year 2017 (Public Law 114–328; 10 
U.S.C. 111 note), the Secretary of Defense shall establish 
and appropriately resource a cross-functional team to plan 
and oversee, in coordination with the congressional defense 
committees, the implementation of the recommendations of 
the Commission on Planning, Programming, Budgeting, 
and Execution Reform established by section 1004 of the 
National Defense Authorization Act for Fiscal Year 2022 
(Public Law 117–81; 135 Stat. 1884). 
(b) REPORTING.—The head of the cross-functional 
team required by subsection (a) shall be the Under Sec-
retary of Defense (Comptroller) and such team shall report 
directly to the Deputy Secretary of Defense. 
(c) PERSONNEL.— 
(1) IN GENERAL.—The cross-functional team re-
quired by subsection (a) shall include dedicated, ap-
propriate personnel with relevant expertise.
657 
(2) DIRECTOR.—There shall be a Director of the 
cross-functional team who shall be responsible for 
leading the daily activities of the cross-functional 
team. The Under Secretary of Defense (Comptroller) 
shall select either a member of the Senior Executive 
Service or a senior military officer to serve as the Di-
rector. 
(3) HIRING AUTHORITIES.—In establishing the 
cross-functional team, the Secretary may— 
(A) hire personnel on a temporary or term 
basis to support the activities of the cross-func-
tional team; and 
(B) enter into contracts or other agreements 
with subject-matter experts with relevant exper-
tise to support the cross-functional team. 
(4) COMPENSATION.—Basic pay for personnel on 
the cross-functional team may be administratively de-
termined and set in accordance with section 3161(d) 
of title 5, United States Code. 
(5) INAPPLICABILITY OF CERTAIN LIMITATION.— 
An individual hired or selected for service under this 
subsection who is not assigned to perform functions 
in, or employed by, the Office of the Secretary of De-
fense (including performance of direct support activi-
ties of that Office and the Washington Headquarters
658 
Services of the Department of Defense) as of the date 
of the enactment of this Act is not subject to the limi-
tations under section 143 of title 10, United States 
Code. 
(d) CONSULTATIONS WITH CONGRESS.—Not later than 
60 days after the date of the enactment of this Act, the 
Under Secretary of Defense (Comptroller) shall— 
(1) provide to the congressional defense commit-
tees a briefing on the proposed leadership, composi-
tion, and charter of the cross-functional team required 
by subsection (a); and 
(2) seek feedback from the congressional defense 
committees on the recommendations of the Commis-
sion on Planning, Programming, Budgeting, and 
Execution Reform. 
(e) REPORTS.—Not later than 180 days after the date 
of the enactment of this Act, and every 180 days thereafter 
until the date that is three years after the date of the enact-
ment of this Act, the Under Secretary of Defense (Comp-
troller) shall submit to the congressional defense committees 
a report on the efforts of the Department of Defense to im-
plement the recommendations of the Commission. 
(f) TERMINATION.— 
(1) IN GENERAL.—Except as provided by para-
graph (2), this section and the cross-functional team
659 
required by subsection (a) shall terminate on Decem-
ber 31, 2029. 
(2) EARLY DISESTABLISHMENT OF TEAM.—The 
Secretary may, on or after December 31, 2027, and 
before the termination date specified in paragraph 
(1), disestablish the cross-functional team required by 
subsection (a) if— 
(A) the Under Secretary of Defense (Comp-
troller) determines that the cross-functional team 
is no longer required for the implementation of 
the recommendations of the Commission on 
Planning, Programming, Budgeting, and Execu-
tion Reform; and 
(B) the Secretary— 
(i) notifies the congressional defense 
committees not later than 30 days before 
disestablishing the cross-functional team; 
and 
(ii) includes in the notification the jus-
tification of the Secretary for the disestab-
lishment of the cross-functional team.
660 
SEC. 1007. USE OF TECHNOLOGY USING ARTIFICIAL INTEL-
LIGENCE TO FACILITATE AUDIT OF THE FI-
NANCIAL STATEMENTS OF THE DEPARTMENT 
OF DEFENSE FOR FISCAL YEAR 2025. 
(a) USE OF AI TECHNOLOGY FOR AUDITS.—The Sec-
retary of Defense, the Secretary of the Army, the Secretary 
of the Navy, and the Secretary of the Air Force shall encour-
age, to the greatest extent practicable, the use of technology 
that uses artificial intelligence or machine learning for the 
purpose of facilitating audits of the financial statements of 
the Department of Defense. 
(b) IMPLEMENTATION OF AI TECHNOLOGY FOR AU-
DITS.—The Director of the Chief Digital and Artificial In-
telligence Office of the Department, in coordination with 
the Under Secretary of Defense for Research and Engineer-
ing and the Inspector General of the Department, shall over-
see the adoption of artificial intelligence and machine 
learning technologies in support of financial management 
and enterprise business operations. 
Subtitle B—Counterdrug Activities 
SEC. 1011. SUPPORT FOR COUNTERDRUG ACTIVITIES AF-
FECTING FLOW OF DRUGS INTO UNITED 
STATES. 
Not later than 90 days after the date of the enactment 
of this Act, the Secretary shall prescribe Department-wide 
guidance that establishes support for counterdrug activities
661 
and programs affecting the flow of drugs into the United 
States as the principal foreign counterdrug program pri-
ority of the Department. 
SEC. 1012. AUTHORITY FOR DETECTION AND MONITORING 
OF ILLEGAL DRUGS REGARDLESS OF DES-
TINATION. 
In conducting detection and monitoring of illegal 
drugs under section 124 of title 10, United States Code, the 
Joint Interagency Task Force South may conduct detection 
and monitoring of vessels or aircraft transiting illegal 
drugs in the air and maritime domains within the estab-
lished joint operating area of such task force regardless of 
the destination of the illegal drugs. 
SEC. 1013. REVIEW, ASSESSMENT, AND ANALYSIS OF GOV-
ERNANCE STRUCTURE AND STRATEGY OF DE-
PARTMENT 
OF 
DEFENSE 
COUNTER-NAR-
COTICS AND COUNTER-TRANSNATIONAL OR-
GANIZED CRIME ACTIVITIES. 
(a) AGREEMENT.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall seek to enter into an agreement with a federally funded 
research and development center for the conduct of an inde-
pendent review, assessment, and analysis of the governance 
structure and strategy of the counter-narcotics and counter-
662 
transnational organized crime activities of the Department 
of Defense. 
(b) REPORT.— 
(1) IN GENERAL.—The agreement described in 
subsection (a) shall provide that not later than one 
year after the date on which the Secretary of Defense 
and the federally funded research and development 
center enter into the agreement, the center shall pro-
vide to the Secretary a report on the findings of the 
review, assessment, and analysis. 
(2) SUBMITTAL TO CONGRESS.—Not later than 
30 days after receiving the report described in para-
graph (1), the Secretary of Defense shall submit the 
report to the congressional defense committees and the 
congressional research agencies. 
(3) ELEMENTS.—The report described in para-
graph (1) shall include the following elements: 
(A) An assessment of the authorities of the 
Department of Defense for counter-narcotics and 
counter-transnational organized crime activities. 
(B) A description of the context for Depart-
ment of Defense authorities for counter-narcotics 
and counter-transnational organized crime ac-
tivities, including a review of all Federal au-
thorities, by Department and agency, for
663 
counter-narcotics and counter-transnational or-
ganized crime activities and how those authori-
ties align with the authorities of the Department 
of Defense. 
(C) A gap analysis of the authorities de-
scribed in subparagraphs (A) and (B). 
(D) A description of the funding for the 
counter-narcotics and counter-transnational or-
ganized crime activities of the Department of De-
fense. 
(E) A description of the strategic objectives 
and strategies for the counter-narcotics and 
counter-transnational organized crime activities 
of the Department of Defense. 
(F) An assessment of whether the current 
strategy of the Department of Defense includes— 
(i) command arrangement agreements 
to address existing and emerging narcotic 
substances of concern, including detection 
and monitoring of fentanyl, illicit fentanyl 
precursors, and fentanyl analogues; 
(ii) descriptions of the responsibilities 
of each combatant command in its oper-
ating area;
664 
(iii) a plan for improved coordination 
between geographic combatant commands to 
ensure clear understanding of roles and re-
sponsibilities in overlapping areas of re-
sponsibility; 
(iv) a plan to continue and improve 
coordination with foreign partners regard-
ing intelligence sharing and interdiction ac-
tivities; 
(v) standardized operating procedures 
for command and control of counter-nar-
cotics within the Department; 
(vi) measurable outcomes to assess 
progress for each of the counter-narcotics 
strategic objectives of the Department; 
(vii) a description of any capability 
upgrades that would better enable the sup-
port of the interdiction of narcotics, includ-
ing fentanyl, illicit fentanyl precursors, and 
fentanyl analogues, throughout the Depart-
ment; and 
(viii) a description of interaction be-
tween the Department of Defense and the 
Department of State to coordinate counter- 
narcotics efforts with foreign governments.
665 
(G) Recommendations for improving the 
governance structure of the counter-narcotics and 
counter-transnational organized crime activities 
of the Department of Defense, including with re-
spect to designating a lead component or agency 
within the Department of Defense. 
(4) FORM.—The report described in paragraph 
(1)— 
(A) shall be submitted under paragraph (2) 
in unclassified form, but may include a classi-
fied annex; and 
(B) may be made available to the public. 
(c) 
CONGRESSIONAL
RESEARCH
AGENCIES
DE-
FINED.—In this section, the term ‘‘congressional research 
agencies’’ means the following: 
(1) The Congressional Research Service. 
(2) The Congressional Budget Office. 
(3) The Government Accountability Office.
666 
Subtitle C—Naval Vessels and 
Shipyards 
SEC. 1021. BRIEFING REQUIRED IN THE EVENT OF A PRO-
POSED REDUCTION IN BATTLE FORCE SHIPS 
AS PART OF THE ANNUAL NAVAL VESSEL 
CONSTRUCTION PLAN AND CERTIFICATION. 
Section 231 of title 10, United States Code, is amend-
ed— 
(1) by redesignating subsection (g) as subsection 
(h); and 
(2) by inserting after subsection (f) the following 
new subsection: 
‘‘(g) REDUCTION IN BATTLE FORCE SHIPS.—If the 
plan and certification under subsection (a) for a fiscal year 
include a proposed reduction in the number of battle force 
ships proposed to be procured during that fiscal year or 
during the any of the subsequent nine fiscal years, as com-
pared to the number of such ships proposed in the plan and 
certification for the preceding fiscal year for that fiscal year 
and the subsequent nine fiscal years, the Secretary of De-
fense shall provide to the congressional defense committees, 
by not later than 15 days after the date of the submission 
of the plan and certification under subsection (a), a briefing 
that includes each of the following:
667 
‘‘(1) An identification of each specific ship for 
which funds are not requested in the budget for that 
fiscal year and an identification of any funds that 
were allocated to each such ship, for any prior fiscal 
year including funds for— 
‘‘(A) research, development, test, and eval-
uation; 
‘‘(B) advance procurement; 
‘‘(C) advanced construction; and 
‘‘(D) economic order quantity. 
‘‘(2) If a shipyard is identified in relation to a 
ship identified under paragraph (1), the projected 
change in workload at the shipyard as a result of the 
reduction of the ship. 
‘‘(3) The projected change in the estimated value 
of any major subcontracted components or sequence 
critical material as a result of the reduction of the 
ship.’’. 
SEC. 1022. MODIFICATION OF AUTHORITY TO PURCHASE 
USED VESSELS UNDER THE NATIONAL DE-
FENSE SEALIFT FUND. 
Section 2218 of title 10, United States Code, is amend-
ed— 
(1) in subsection (f)(3)—
668 
(A) in subparagraph (A), by striking ‘‘sub-
section (c)(1)(E)’’ and inserting ‘‘subsection 
(c)(1)(D)’’; and 
(B) in subparagraph (C), by striking 
‘‘nine’’ and inserting ‘‘10’’; and 
(2) in subsection (i), by striking ‘‘subsection 
(c)(1)(E)’’ and inserting ‘‘subsection (c)(1)(D)’’. 
SEC. 1023. MODIFICATIONS TO SHIP REPAIR AUTHORITIES. 
(a) DEFINITION OF SHORT-TERM WORK FOR PUR-
POSES OF NAVY CONSTRUCTION OF COMBATANT AND ES-
CORT VESSELS AND ASSIGNMENT OF VESSEL PROJECTS.— 
Section 8669a(c)(4) of title 10, United States Code, is 
amended by striking ‘‘10 months’’ and inserting ‘‘12 
months’’. 
(b) STUDY ON PRICE DIFFERENTIALS USED IN NAVY 
SHIP REPAIR SOLICITATIONS.— 
(1) IN GENERAL.—Subject to the availability of 
appropriations, the Secretary of the Navy shall seek 
to enter into an agreement with a federally funded re-
search and development center to conduct a study to 
assess whether relevant price differentials used by the 
Navy in ship repair solicitations accurately reflect the 
true market value of the activity undertaken to com-
plete the repair work involved in the absence of any 
such differential.
669 
(2) ELEMENTS.—The study under paragraph (1) 
shall address all relevant price differentials used by 
the Navy in ship repair solicitations, including— 
(A) the use of Government-owned and oper-
ated dry docks; 
(B) the use of inter-port differentials; and 
(C) the use of pier differentials. 
(3) REPORTS.— 
(A) FFRDC REPORT.—The federally funded 
research and development center that conducts 
the study under paragraph (1) shall submit to 
the Secretary of the Navy a report on the results 
of the study. 
(B) SUBMITTAL TO CONGRESS.—Not later 
than September 30, 2025, the Secretary of the 
Navy shall submit to the congressional defense 
committees an unaltered copy of the report re-
ceived by the Secretary under subparagraph (A) 
together with a separate statement of the views 
of the Secretary on the results of the study con-
ducted under paragraph (1). 
(c) REPORT
ON
NAVY
POLICY
FOR
SOLICITING 
COASTWIDE BIDS FOR CERTAIN REPAIR AVAILABILITIES.— 
(1) IN
GENERAL.—Not later than March 30, 
2025, the Secretary of the Navy shall submit to the
670 
congressional defense committees a report on the pol-
icy of the Navy for soliciting coastwide bids for repair 
availabilities longer than 10 months. 
(2) ELEMENTS.—The report under paragraph 
(1) shall include an explanation and assessment of 
each of the following: 
(A) The intent of the policy described in 
paragraph (1). 
(B) The data the Navy uses to assess the ef-
ficacy of such policy. 
(C) How the Navy estimates the cost of 
moving vessels out of their home port to complete 
the availability and the actual cost of moving 
vessels out of their home port to complete the 
availability. 
(D) How the Navy estimates the financial, 
labor force, member of the Armed Forces and 
family well-being, berthing, and related costs as-
sociated with moving a vessel out of its home 
port to complete a repair availability longer 
than 10 months.
672 
‘‘(2) An assessment of the readiness of the ship-
yard facilities and workforce to begin construction. 
‘‘(3) The Navy’s estimated delivery date and a 
description of any risks that could affect such delivery 
date. 
‘‘(4) An assessment of the extent to which ade-
quate processes and metrics are in place to measure 
and manage program risks. 
‘‘(5) With respect to the first ship, a description 
of the plans of the Navy to oversee and document the 
construction of the ship to ensure that the detail de-
sign supports the construction schedule for the ship. 
‘‘(6) A definition of the term ‘start of construc-
tion’ that— 
‘‘(A) is applicable to the first ship; and 
‘‘(B) does not mean a point in time— 
‘‘(i) after the completion of 5 percent of 
lightship displacement; or 
‘‘(ii) after the advance procurement or 
advance construction of the ship. 
‘‘(7) An identification of any fabrication of the 
hull and superstructure of the ship that will occur be-
fore the date on which the Secretary submits the cer-
tifications required under paragraphs (2) and (3) of 
subsection (a).
673 
‘‘(8) An identification of the extent of to which 
vendor- and government-furnished information sup-
ports the overall maturity and stability of the ship’s 
design, including information regarding— 
‘‘(A) whether vendor selection is complete 
for major distributive systems and key equip-
ment supporting operational requirements; 
‘‘(B) whether specifications are finalized for 
major distributive systems and key equipment; 
and 
‘‘(C) the status of factory acceptance testing, 
as applicable, to validate finalized specifications 
for major distributive systems and key equip-
ment through manufacturing.’’; and 
(3) in subsection (c)— 
(A) in paragraph (1)— 
(i) in the matter preceding subpara-
graph (A), by inserting ‘‘, and when used 
with respect to manned surface and under-
sea combatants, means design through the 
completion of three-dimensional computer 
aided modeling’’ after ‘‘computer aided 
models’’; 
(ii) in subparagraph (A), by striking 
‘‘fixes’’ and inserting ‘‘supports’’; and
674 
(iii) in subparagraph (C), by striking 
‘‘routes major portions of all distributive 
systems of the vessel’’ and inserting ‘‘posi-
tions and routes all major distributive sys-
tems of the ship’’; and 
(B) by striking paragraph (5). 
SEC. 1025. PROHIBITION ON CONTRACTING WITH SHIP-
YARDS CONTROLLED BY A FOREIGN ADVER-
SARY COUNTRY. 
Chapter 863 of title 10, United States Code, is amend-
ed by inserting after section 8679 the following new section: 
‘‘§ 8679a. Contracting with shipyards controlled by a 
foreign adversary country: prohibition 
‘‘The Secretary of Defense may not enter into any con-
tract or other agreement with a shipyard determined by the 
Secretary of Defense to be under the ownership, control, or 
influence of a foreign adversary country (as defined in sec-
tion 4872(d)(2) of title 10, United States Code).’’. 
SEC. 1026. EXCEPTION TO PROHIBITION OF OVERHAUL, RE-
PAIR, OR MAINTENANCE OF CERTAIN VES-
SELS IN SHIPYARDS OUTSIDE THE UNITED 
STATES OR GUAM. 
Section 8680(a)(3) of title 10, United States Code, is 
amended—
675 
(1) by redesignating subparagraphs (A) and (B) 
as clauses (i) and (ii), respectively; 
(2) by inserting ‘‘(A)’’ before ‘‘Notwithstanding’’; 
(3) by inserting ‘‘and subject to subparagraph 
(B)’’ after ‘‘paragraph (1)’’; 
(4) in clause (i), as so redesignated, by striking 
‘‘or’’ at the end; 
(5) in clause (ii), as so redesignated, by striking 
the period and inserting ‘‘; or’’; 
(6) by inserting after clause (ii), the following 
new clause: 
‘‘(iii) corrective and preventive mainte-
nance of a deployed naval vessel planned to last 
not more than 21 days.’’; and 
(7) by inserting after subparagraph (A) the fol-
lowing new subparagraph: 
‘‘(B) During any fiscal year, the cumulative work car-
ried out under this paragraph for ships at any particular 
homeport may not exceed two percent of the average annual 
total workload of that homeport over the preceding three- 
year period, as measured in shipyard labor hours.’’. 
SEC. 1027. STRATEGY ON DEVELOPMENT OF NAVAL REARM 
AT SEA CAPABILITY. 
(a) STRATEGY REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary