(3) by inserting after paragraph (1) the fol-
lowing new paragraph (2): 
‘‘(2) NOTIFICATION WHEN VARIANCE DUE TO 
CONGRESSIONAL
ACTION
OR
EXTENSION
OF
PRO-
GRAM.—If a senior Department of Defense official 
who, following receipt of a quarterly report described 
in paragraph (1) and making a determination de-
scribed in paragraph (3), also determines that the 
circumstances resulting in the determination de-
scribed in paragraph (3) either (A) are primarily the 
result of congressional action, or (B) are primarily 
due to an extension of a program, the official may, 
in lieu of carrying out an evaluation and submitting 
a report in accordance with paragraph (1), submit 
to the congressional defense committees, within 45 
days after receiving the quarterly report, a notifica-
tion that the official has made those determinations. 
If such a notification is submitted, the limitation in 
subsection (g)(1) does not apply with respect to that 
determination under paragraph (3).’’. 
(c) 
CONFORMING
CROSS-REFERENCE
AMEND-
MENT.—Subsection (g)(1) of such section is amended by 
striking ‘‘subsection (d)(2)’’ and inserting ‘‘subsection 
(d)(3)’’. 
(d) TOTAL ACQUISITION COST INFORMATION.— 
VerDate Mar 15 2010 
23:32 May 15, 2013
Jkt 029200
PO 00000
Frm 00071
Fmt 6652
Sfmt 6201
E:\BILLS\H1960.IH
H1960
sroberts on DSK5SPTVN1PROD with BILLS
(1) Section 2445b(b)(3) of title 10, United 
States Code, is amended by striking ‘‘development 
costs’’ and inserting ‘‘total acquisition costs’’. 
(2) Section 2445c of such title is amended— 
(A) in subparagraph (B) of subsection 
(c)(2), by striking ‘‘program development cost’’ 
and inserting ‘‘total acquisition cost’’; and 
(B) in subparagraph (C) of subsection 
(d)(3) (as redesignated by subsection (b)(2)), 
by striking ‘‘program development cost’’ and in-
serting ‘‘total acquisition cost’’. 
(e) CLARIFICATION OF CROSS-REFERENCE.—Section 
2445c(g)(2) of such title is amended by striking ‘‘in com-
pliance with the requirements of subsection (d)(2)’’ and 
inserting ‘‘under subsection (d)(1)(B)’’. 
SEC. 803. MODIFICATION OF REPORTING REQUIREMENT 
FOR DEPARTMENT OF DEFENSE BUSINESS 
SYSTEM ACQUISITION PROGRAMS WHEN INI-
TIAL 
OPERATING 
CAPABILITY 
IS 
NOT 
ACHIEVED WITHIN FIVE YEARS OF MILE-
STONE A APPROVAL. 
(a) SUBMISSION TO PRE-CERTIFICATION AUTHOR-
ITY.—Subsection (b) of section 811 of the John Warner 
National Defense Authorization Act for Fiscal Year 2007 
(Public Law 109–364; 120 Stat. 2316) is amended by 
VerDate Mar 15 2010 
23:32 May 15, 2013
Jkt 029200
PO 00000
Frm 00072
Fmt 6652
Sfmt 6201
E:\BILLS\H1960.IH
H1960
sroberts on DSK5SPTVN1PROD with BILLS
striking ‘‘the system shall be deemed to have undergone’’ 
and all that follows through the period and inserting ‘‘the 
appropriate official shall report such failure, along with 
the facts and circumstances surrounding the failure, to the 
appropriate pre-certification authority for that system 
under section 2222 of title 10, United States Code, and 
the information so reported shall be considered by the pre- 
certification authority in the decision whether to rec-
ommend certification of obligations under that section.’’. 
(b) COVERED SYSTEMS.—Subsection (c) of such sec-
tion is amended— 
(1) by striking ‘‘3542(b)(2) of title 44’’ and in-
serting ‘‘section 2222(j)(2) of title 10’’; and 
(2) by inserting ‘‘, and that is not designated 
in section 2445a of title 10, United States Code, as 
a ‘major automated information system program’ or 
an ‘other major information technology investment 
program’ ’’ before the period at the end. 
(c) UPDATED REFERENCES TO DOD ISSUANCES.— 
Subsection (d) of such section is amended— 
(1) in paragraph (1), by striking ‘‘Department 
of Defense Instruction 5000.2’’ and inserting ‘‘De-
partment of Defense Directive 5000.01’’; and 
(2) in paragraph (2), by striking ‘‘Department 
of Defense Instruction 5000.2, dated May 12, 2003’’ 
VerDate Mar 15 2010 
23:32 May 15, 2013
Jkt 029200
PO 00000
Frm 00073
Fmt 6652
Sfmt 6201
E:\BILLS\H1960.IH
H1960
sroberts on DSK5SPTVN1PROD with BILLS
and inserting ‘‘Department of Defense Instruction 
5000.02, dated December 3, 2008’’. 
SEC. 804. ENHANCED TRANSFER OF TECHNOLOGY DEVEL-
OPED AT DEPARTMENT OF DEFENSE LAB-
ORATORIES. 
(a) DEFINITIONS.—As used in this section: 
(1) The terms ‘‘department’’ and ‘‘military de-
partment’’ have the meaning given those terms in 
section 101 of title 10, United States Code. 
(2) The term ‘‘DoD laboratory’’ or ‘‘labora-
tory’’ means any facility or group of facilities that— 
(A) is owned, leased, operated, or other-
wise used by the Department of Defense; and 
(B) meets the definition of ‘‘laboratory’’ as 
provided in subsection (d)(2) of section 12 of 
the Stevenson-Wydler Technology Innovation 
Act of 1980 (15 U.S.C. 3710a). 
(b) AUTHORITY.— 
(1) IN
GENERAL.—The Secretary of Defense 
and the Secretaries of the military departments each 
may authorize the heads of DoD laboratories to 
grant nonexclusive, exclusive, or partially exclusive 
licenses, royalty free or for royalties or for rights to 
other intellectual property, for computer software 
VerDate Mar 15 2010 
23:32 May 15, 2013
Jkt 029200
PO 00000
Frm 00074
Fmt 6652
Sfmt 6201
E:\BILLS\H1960.IH
H1960
sroberts on DSK5SPTVN1PROD with BILLS
and its related documentation developed at a DoD 
laboratory, but only if— 
(A) the computer software and related doc-
umentation would be a trade secret under the 
meaning of section 552(b)(4) of title 5, United 
States Code, if the information had been ob-
tained from a non-Federal party; 
(B) the public is notified of the availability 
of the software and related documentation for 
licensing and interested parties have a fair op-
portunity to submit applications for licensing; 
(C) such licensing activities and licenses 
shall comply with the requirements under sec-
tion 209 of title 35, United States Code; and 
(D) the software originally was developed 
to meet the military needs of the Department 
of Defense. 
(2) PROTECTIONS
AGAINST
UNAUTHORIZED 
DISCLOSURE.—The Secretary of Defense and the 
Secretaries of the military departments each shall 
provide appropriate precautions against the unau-
thorized disclosure of any computer software or doc-
umentation covered by paragraph (1)(A), including 
exemption from section 552 of title 5, United States 
Code, for a period of up to 5 years after the develop-
VerDate Mar 15 2010 
23:32 May 15, 2013
Jkt 029200
PO 00000
Frm 00075
Fmt 6652
Sfmt 6201
E:\BILLS\H1960.IH
H1960
sroberts on DSK5SPTVN1PROD with BILLS
ment of the computer software by the DoD labora-
tory. 
(c) ROYALTIES.— 
(1) USE OF ROYALTIES.—Except as provided in 
paragraph (2), any royalties or other payments re-
ceived by the department from licensing computer 
software or documentation under paragraph (b)(1) 
shall be retained by the department and shall be dis-
posed of as follows: 
(A)(i) The department shall pay each year 
the first $2,000, and thereafter at least 15 per-
cent, of the royalties or other payments to be 
divided among the employees who developed the 
computer software. 
(ii) The department may provide appro-
priate lesser incentives, from royalties or other 
payments, to laboratory employees who are not 
developers of such computer software but who 
substantially increased the technical value of 
the software. 
(iii) The department shall retain the royal-
ties and other payments received until it makes 
payments to employees of a DoD laboratory 
under clause (i) or (ii). 
VerDate Mar 15 2010 
23:32 May 15, 2013
Jkt 029200
PO 00000
Frm 00076
Fmt 6652
Sfmt 6201
E:\BILLS\H1960.IH
H1960
sroberts on DSK5SPTVN1PROD with BILLS