337 
‘‘(ii) The period preceding initial produc-
tion. 
‘‘(iii) The period preceding full-rate produc-
tion. 
‘‘(B) An identification of the major sources of 
risk in each of the periods listed in subparagraph (A). 
‘‘(3) In the case of a program or system with separate 
increments of capabilities that require Milestone Decision 
Authority approval to begin or proceed, paragraphs (1) and 
(2) shall apply to each increment. 
‘‘(b) STRATEGY TO MANAGE AND MITIGATE RISKS.— 
(1) The comprehensive strategy to manage and mitigate risk 
included in the acquisition strategy for purposes of sub-
section (a)(2)(A) shall identify each individual risk and the 
risk management and mitigation activities to address each 
risk. For the mitigation activities identified, the strategy 
shall note whether they require cost and schedule margins 
and need to be included in funding requests. 
‘‘(2) The strategy shall be comprehensive and, at a 
minimum, include consideration of risk mitigation tech-
niques such as the following: 
‘‘(A) Prototyping (including prototyping at the 
system, subsystem, or component level and competi-
tive prototyping, where appropriate) and, if proto-
typing at either the system, subsystem, or component 
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level is not used, an explanation of why it is not ap-
propriate. 
‘‘(B) Modeling and simulation, the areas that 
modeling and simulation will assess, and identifica-
tion of the need for development of any new modeling 
and simulation tools in order to support the com-
prehensive strategy. 
‘‘(C) Technology demonstrations and decision 
points for disciplined transition of planned tech-
nologies into programs or the selection of alternative 
technologies. 
‘‘(D) Multiple design approaches. 
‘‘(E) Alternative designs, including any designs 
that meet requirements but do so with reduced per-
formance. 
‘‘(F) Phasing of program activities or related 
technology development efforts in order to address 
high risk areas as early as feasible. 
‘‘(c) DEFINITIONS.—In this section, the terms ‘major 
defense acquisition program’ and ‘major system’ have the 
meanings provided in section 2431a of this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended by 
inserting after the item relating to section 2431a, as 
so added, the following new item: 
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‘‘2431b. Risk reduction in major defense acquisition programs and major sys-
tems.’’. 
(b) REPEAL
OF SUPERSEDED PROVISION.—Section 
203 of the Weapon Systems Acquisition Reform Act of 2009 
(10 U.S.C. 2430 note) is repealed. 
SEC. 824. MODIFICATION TO REQUIREMENTS RELATING TO 
DETERMINATION OF CONTRACT TYPE FOR 
MAJOR DEFENSE ACQUISITION PROGRAMS 
AND MAJOR SYSTEMS. 
(a) DETERMINATION
OF CONTRACT TYPE.—Section 
2306 of title 10, United States Code, is amended by adding 
at the end the following new subsection: 
‘‘(i) REQUIRED ELEMENTS OF GUIDANCE RELATING 
TO CONTRACT TYPE.—(1) The Secretary of Defense shall 
ensure that the guidance of the Department of Defense relat-
ing to major defense acquisition programs, major systems, 
and major automated information systems includes a re-
quirement that the acquisition strategy required under sec-
tion 2431a of this title for such a program or system in-
cludes— 
‘‘(A) a separate identification of the contract 
type for each acquisition phase of the program or sys-
tem; and 
‘‘(B) a justification of the contract type identi-
fied. 
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‘‘(2) The contract type identified in accordance with 
paragraph (1)(A) may be— 
‘‘(A) a fixed-price type contract (including a 
fixed-price incentive contract); or 
‘‘(B) a cost-type contract (including a cost-plus- 
incentive-fee contract). 
‘‘(3) The guidance referred to in paragraph (1) shall 
require that the justification for the contract type selected 
explain— 
‘‘(A) how the level of program risk in each acqui-
sition phase relates to the contract type selected; 
‘‘(B) how the use of incentives (especially cost in-
centives) in the contract, if any, supports the program 
or system objectives during each acquisition phase; 
and 
‘‘(C) how the plans for the program or system to 
reduce risk enable the use of fixed-price elements in 
subsequent contracts. 
‘‘(4) The guidance shall also specify that the use of con-
tracts with target costs, target profits or fees, and profit 
or fee adjustment formulas can be an appropriate contract 
type.’’. 
(b) REPEAL.—Section 818 of the John Warner Na-
tional Defense Authorization Act for Fiscal Year 2007 (Pub-
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lic Law 109-364; 10 U.S.C. 2306 note) is amended by strik-
ing subsections (b), (c), (d), and (e). 
SEC. 825. REQUIRED DETERMINATION BEFORE MILESTONE 
A APPROVAL OR INITIATION OF MAJOR DE-
FENSE ACQUISITION PROGRAMS. 
(a) DETERMINATION RATHER THAN CERTIFICATION 
REQUIRED.—Subsection (a) of section 2366a of title 10, 
United States Code, is amended— 
(1) in the subsection heading, by striking ‘‘CER-
TIFICATION’’ and inserting ‘‘WRITTEN DETERMINA-
TION REQUIRED’’; and 
(2) in the matter preceding paragraph (1), by 
striking ‘‘certifies’’ and inserting ‘‘determines, in 
writing,’’. 
(b) SUBMISSION
OF WRITTEN DETERMINATION
TO 
CONGRESS.—Subsection (b) of such section is amended to 
read as follows: 
‘‘(b) SUBMISSION TO CONGRESS.—At the request of 
any of the congressional defense committees, the Secretary 
of Defense shall submit to the committee an explanation of 
the basis for a determination made under subsection (a) 
with respect to a major defense acquisition program, to-
gether with a copy of the written determination. The expla-
nation shall be submitted in unclassified form, but may in-
clude a classified annex.’’. 
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(c) REPEAL OF UNUSED DEFINITIONS.—Subsection 
(c) of such section is amended— 
(1) by striking paragraphs (2) and (4); and 
(2) by redesignating paragraphs (3), (5), (6), 
and (7) as paragraphs (2), (3), (4), and (5), respec-
tively. 
(d) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of section 
2366a of title 10, United States Code, is amended to 
read as follows: 
‘‘§ 2366a. Major defense acquisition programs: deter-
mination required before Milestone A ap-
proval’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 139 of such title is 
amended by striking the item relating to section 
2366a and inserting the following new item: 
‘‘2366a. Major defense acquisition programs: determination required before Mile-
stone A approval.’’. 
SEC. 826. REQUIRED CERTIFICATION AND DETERMINATION 
BEFORE MILESTONE B APPROVAL OF MAJOR 
DEFENSE ACQUISITION PROGRAMS. 
(a) DETERMINATION REQUIRED IN ADDITION TO CER-
TIFICATION.—Subsection (a) of section 2366b of title 10, 
United States Code, is amended— 
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(1) in the subsection heading, by striking ‘‘CER-
TIFICATION’’ and inserting ‘‘CERTIFICATION AND DE-
TERMINATION REQUIRED’’; 
(2) by redesignating paragraph (4) as para-
graph (5); and 
(3) by striking ‘‘(3) further certifies that—’’ and 
inserting the following: 
‘‘(3) further certifies that the technology in the 
program has been demonstrated in a relevant envi-
ronment, as determined by the Milestone Decision Au-
thority on the basis of an independent review and as-
sessment by the Assistant Secretary of Defense for Re-
search and Engineering, in consultation with the 
Deputy Assistant Secretary of Defense for Develop-
mental Test and Evaluation; 
‘‘(4) determines, in writing, that—’’. 
(b) SUBMISSION
OF WRITTEN DETERMINATION
TO 
CONGRESS.—Subsection (c) of such section is amended by 
adding at the end the following new paragraph: 
‘‘(3) At the request of any of the congressional defense 
committees, the Secretary of Defense shall submit to the 
committee an explanation of the basis for a determination 
made under subsection (a)(4) with respect to a major de-
fense acquisition program, together with a copy of the writ-
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ten determination. The explanation shall be submitted in 
unclassified form, but may include a classified annex.’’. 
(c) NATIONAL SECURITY WAIVER.—Subsection (d) of 
such section is amended— 
(1) in paragraph (1), by striking ‘‘certification 
requirement’’ and inserting ‘‘certification and deter-
mination requirements’’; and 
(2) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A) and in subparagraph (A), by inserting 
‘‘waiver’’ before ‘‘determination’’ each place it 
appears; and 
(B) in subparagraph (B), by striking ‘‘cer-
tification components’’ both places it appears 
and inserting ‘‘certification and determination 
components’’. 
(d) CONFORMING AMENDMENTS.—Section 2366b of 
title 10, United States Code, is further amended— 
(1) in subsection (b)(1), by striking ‘‘paragraph 
(1) or (2) of subsection (a)’’ and inserting ‘‘para-
graph (1), (2), or (3) of subsection (a)’’; 
(2) in subsection (d)(1), by striking ‘‘paragraph 
(1), (2), or (3) of subsection (a)’’ and inserting 
‘‘paragraph (1), (2), (3), or (4) of subsection (a)’’; 
and 
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(3) in subsection (d)(2)(B), by striking ‘‘para-
graphs (1), (2), and (3) of subsection (a)’’ and insert-
ing ‘‘paragraphs (1), (2), (3) and (4) of subsection 
(a)’’. 
(e) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of section 
2366b of title 10, United States Code, is amended to 
read as follows: 
‘‘§ 2366b. Major defense acquisition programs: certifi-
cation and determination required before 
Milestone B approval’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 139 of such title is 
amended by striking the item relating to section 
2366b and inserting the following new item: 
‘‘2366b. Major defense acquisition programs: certification and determination re-
quired before Milestone B approval.’’. 
Subtitle D—Industrial Base Matters 
SEC. 831. CODIFICATION AND AMENDMENT OF MENTOR- 
PROTEGE PROGRAM. 
(a) IN GENERAL.—Section 831 of the National Defense 
Authorization Act for Fiscal Year 1991 (Public Law 101– 
510; 104 Stat. 1607; 10 U.S.C. 2302 note) is transferred 
to chapter 137 of title 10, United States Code, inserted so 
as to appear after section 2323a, redesignated as section 
2323b, and amended— 
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(1) by amending the section heading to read as 
follows: 
‘‘§ 2323b. Mentor-Protege Program’’; 
(2) by striking ‘‘pilot’’ each place such term ap-
pears; 
(3) by amending subsection (e)(1) to read as fol-
lows: 
‘‘(1) A developmental program for the protege 
firm, in such detail as may be reasonable, includ-
ing— 
‘‘(A) factors to assess the protege firm’s de-
velopmental progress under the program; and 
‘‘(B) the anticipated number and type of 
subcontracts to be awarded to the protege firm.’’; 
(4) in subsection (g)(2)(B), by striking ‘‘under 
subsection (l)(2)’’; 
(5) in subsection (h)(1), by inserting ‘‘(15 U.S.C. 
631 et seq.)’’ after ‘‘Small Business Act’’; 
(6) by striking subsection (j) and redesignating 
subsections (k) and (l) as subsections (j) and (k), re-
spectively; 
(7) by amending subsection (j) (as so redesig-
nated) to read as follows: 
‘‘(j) REGULATIONS.—The regulations implementing 
the Mentor-Protege Pilot Program established under section 
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831 of the National Defense Authorization Act for Fiscal 
Year 1991 (Public Law 101–510; 104 Stat. 1607; 10 U.S.C. 
2302 note) as in effect on the date of enactment of the Na-
tional Defense Authorization Act for Fiscal Year 2016 shall 
apply to this section. The Secretary of Defense may revise 
such regulations or prescribe additional regulations nec-
essary to carry out this section. The Department of Defense 
policy regarding the Mentor-Protege Program shall be pub-
lished and maintained as an appendix to the Department 
of Defense Supplement to the Federal Acquisition Regula-
tion.’’; 
(8) by striking ‘‘prescribed pursuant to sub-
section (k)’’ each place such term appears and insert-
ing ‘‘described in subsection (j)’’; and 
(9) in subsection (k) (as so redesignated)— 
(A) in paragraph (1), by striking ‘‘means a 
business concern that meets the requirements of 
section 3(a) of the Small Business Act (15 
U.S.C. 632(a)) and the regulations promulgated 
pursuant thereto’’ and inserting ‘‘has the mean-
ing given such term under section 3 of the Small 
Business Act (15 U.S.C. 632)’’; 
(B) in paragraph (2)— 
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(i) in subparagraph (D), by striking 
‘‘the severely disabled’’ and inserting ‘‘se-
verely disabled individuals’’; and 
(ii) in subparagraph (G), by inserting 
‘‘(15 U.S.C. 632(p))’’ after ‘‘Small Business 
Act’’; and 
(C) by amending paragraph (8) to read as 
follows: 
‘‘(8) The term ‘severely disabled individual’ 
means an individual who is blind (as defined in sec-
tion 8501 of title 41) or a severely disabled individual 
(as defined in such section).’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by inserting after 
the item relating to section 2323a the following new item: 
‘‘2323b. Mentor-Protege Program.’’. 
SEC. 832. AMENDMENTS TO DATA QUALITY IMPROVEMENT 
PLAN. 
(a) IN GENERAL.—Section 15(s) of the Small Business 
Act (15 U.S.C. 644(s)) is amended— 
(1) by redesignating paragraph (4) as para-
graph (6); and 
(2) by inserting after paragraph (3) the fol-
lowing new paragraphs: 
‘‘(4) IMPLEMENTATION.—Not later than the first 
day of fiscal year 2017, the Administrator of the 
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