similar end item if the original item is no 
longer in production. Incremental cost of 
non-war related upgrades, if made, should 
be included in the base. 
(iii) Purchase of specialized, theater- 
specific equipment. 
(iv) Funding for major equipment 
must be obligated within 12 months. 
(B) Ground Equipment Replacement: 
(i) For combat losses and returning 
equipment that is not economical to repair, 
the replacement of equipment may be given 
to coalition partners, if consistent with ap-
proved policy. 
(ii) In-theater stocks above customary 
equipping levels on a case-by-case basis. 
(C) Equipment Modifications: 
(i) Operationally required modifica-
tions to equipment used in theater or in di-
rect support of combat operations and that 
is not already programmed in FYDP. 
(ii) Funding for equipment modifica-
tions must be able to be obligated in 12 
months. 
(D) Munitions: 
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(i) Replenishment of munitions ex-
pended in combat operations in theater. 
(ii) Training ammunition for theater- 
unique training events. 
(iii) While forecasted expenditures are 
not permitted, a case-by-case assessment 
for munitions where existing stocks are in-
sufficient to sustain theater combat oper-
ations. 
(E) Aircraft Replacement: 
(i) Combat losses by accident that 
occur in the theater of operations. 
(ii) Combat losses by enemy action 
that occur in the theater of operations. 
(F) Military Construction: 
(i) Facilities and infrastructure in the 
theater of operations in direct support of 
combat operations. The level of construc-
tion should be the minimum to meet oper-
ational requirements. 
(ii) At non-enduring locations, facili-
ties and infrastructure for temporary use. 
(iii) At enduring locations, facilities 
and infrastructure for temporary use. 
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(iv) At enduring locations, construc-
tion requirements must be tied to surge 
operations or major changes in operational 
requirements and will be considered on a 
case-by-case basis. 
(G) Research and development projects for 
combat operations in these specific theaters 
that can be delivered in 12 months. 
(H) Operations: 
(i) Direct war costs: 
(I) 
Transport 
of 
personnel, 
equipment, and supplies to, from and 
within the theater of operations. 
(II) Deployment-specific training 
and preparation for units and per-
sonnel (military and civilian) to as-
sume their directed missions as de-
fined in the orders for deployment 
into the theater of operations. 
(ii) Within the theater, the incre-
mental costs above the funding pro-
grammed in the base budget to: 
(I) Support commanders in the 
conduct of their directed missions (to 
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include Emergency Response Pro-
grams). 
(II) Build and maintain tem-
porary facilities. 
(III) Provide food, fuel, supplies, 
contracted services and other support. 
(IV) Cover the operational costs 
of coalition partners supporting U.S. 
military missions, as mutually agreed. 
(iii) Indirect war costs incurred out-
side the theater of operations will be evalu-
ated on a case-by-case basis. 
(I) Health: 
(i) Short-term care directly related to 
combat. 
(ii) Infrastructure that is only to be 
used during the current conflict. 
(J) Personnel: 
(i) Incremental special pays and al-
lowances for servicemembers and civilians 
deployed to a combat zone. 
(ii) Incremental pay, special pays and 
allowances for Reserve Component per-
sonnel mobilized to support war missions. 
(K) Special Operations Command: 
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(i) Operations that meet the criteria 
in this guidance. 
(ii) Equipment that meets the criteria 
in this guidance. 
(L) Prepositioned supplies and equipment 
for resetting in-theater stocks of supplies and 
equipment to pre-war levels. 
(M) Security force funding to train, equip, 
and sustain Iraqi and Afghan military and po-
lice forces. 
(N) Fuel: 
(i) War fuel costs and funding to en-
sure that logistical support to combat oper-
ations is not degraded due to cash losses 
in the Department of Defense’s baseline 
fuel program. 
(ii) Enough of any base fuel shortfall 
attributable to fuel price increases to main-
tain sufficient on-hand cash for the De-
fense Working Capital Funds to cover 
seven days disbursements. 
(3) Excluded items from Overseas Contingency 
Funding that must be funded from the base budget: 
(A) Training vehicles, aircraft, ammuni-
tion, and simulators, but not training base 
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stocks of specialized, theater-specific equipment 
that is required to support combat operations in 
the theater of operations, and support to de-
ployment-specific training described above. 
(B) Acceleration of equipment service life 
extension programs already in the Future Years 
Defense Plan. 
(C) 
Base 
Realignment 
and 
Closure 
projects. 
(D) Family support initiatives: 
(i) Construction of childcare facilities. 
(ii) Funding for private-public part-
nerships to expand military families’ access 
to childcare. 
(iii) 
Support 
for 
servicemembers’ 
spouses’ professional development. 
(E) Programs to maintain industrial base 
capacity including ‘‘war-stoppers’’. 
(F) Personnel: 
(i) Recruiting and retention bonuses 
to maintain end-strength. 
(ii) Basic Pay and the Basic allow-
ances for Housing and Subsistence for per-
manently authorized end strength. 
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(iii) Individual augmentees on a case- 
by-case basis. 
(G) Support for the personnel, operations, 
or the construction or maintenance of facilities 
at United States Offices of Security Coopera-
tion in theater. 
(H) Costs for reconfiguring prepositioned 
supplies and equipment or for maintaining 
them. 
(4) 
Items 
proposed 
for 
increases 
in 
reprogrammings 
or 
as 
payback 
for 
prior 
reprogrammings must meet the criteria above. 
SEC. 307. INCREASE ENERGY EFFICIENCY OF FEDERAL 
BUILDINGS. 
(a) FINDINGS.—Congress finds the following: 
(1) Private sector funding and expertise can 
help address the energy efficiency challenges facing 
the United States. 
(2) The Federal Government spends more than 
$6 billion annually in energy costs. 
(3) Reducing Federal energy costs can help 
save money, create jobs, and reduce waste. 
(4) Energy savings performance contracts and 
utility energy savings contracts are tools for utilizing 
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private sector investment to upgrade Federal facili-
ties without any up-front cost to the taxpayer. 
(5) Performance contracting is a way to retrofit 
Federal buildings using private sector investment in 
the absence of appropriated dollars. Retrofits seek to 
reduce energy use, improve infrastructure, protect 
national security, and cut facility operations and 
maintenance costs. 
(b) USE
OF ENERGY
AND WATER EFFICIENCY 
MEASURES IN FEDERAL BUILDINGS.— 
(1) IMPLEMENTATION OF IDENTIFIED ENERGY 
AND
WATER
EFFICIENCY
MEASURES.—Section 
543(f)(4) of the National Energy Conservation Pol-
icy Act (42 U.S.C. 8253(f)(4)) is amended to read 
as follows: 
‘‘(4) IMPLEMENTATION OF IDENTIFIED ENERGY 
AND WATER EFFICIENCY MEASURES.— 
‘‘(A) IN GENERAL.—Not later than 2 years 
after the completion of each evaluation under 
paragraph (3), each energy manager shall con-
sider— 
‘‘(i) implementing any energy- or 
water-saving or conservation measure that 
the Federal agency identified in the evalua-
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tion conducted under paragraph (3) that is 
life cycle cost-effective; and 
‘‘(ii) bundling individual measures of 
varying paybacks together into combined 
projects. 
‘‘(B) MEASURES
NOT
IMPLEMENTED.— 
The energy manager, as part of the certification 
system under paragraph (7) and using guide-
lines developed by the Secretary, shall provide 
reasons for not implementing any life cycle 
cost-effective measures under subparagraph 
(A).’’. 
(2) ANNUAL
CONTRACTING
GOAL.—Section 
543(f)(10)(C) of the National Energy Conservation 
Policy Act (42 U.S.C. 8253(f)(10)(C)) is amended— 
(A) by striking ‘‘Each Federal agency’’ 
and inserting the following: 
‘‘(i) IN
GENERAL.—Each Federal 
agency’’; and 
(B) by adding at the end the following new 
clauses: 
‘‘(ii) TRACKING.—Each Federal agen-
cy shall use the benchmarking systems se-
lected or developed for the agency under 
paragraph (8) to track energy savings real-
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ized by the agency through the implemen-
tation of energy- or water-saving or con-
servation measures pursuant to paragraph 
(4), and shall submit information regard-
ing such savings to the Secretary to be 
published on a public website of the De-
partment of Energy. 
‘‘(iii) CONSIDERATION.—Each Federal 
agency shall consider using energy savings 
performance contracts or utility energy 
service contracts to implement energy- or 
water-saving or conservation measures pur-
suant to paragraph (4). 
‘‘(iv) CONTRACTING
GOAL.—It shall 
be the goal of the Federal Government, in 
the implementation of energy- or water- 
saving or conservation measures pursuant 
to paragraph (4), to enter into energy sav-
ings performance contracts or utility en-
ergy 
service 
contracts 
equal 
to 
$1,000,000,000 in each year during the 5- 
year period beginning on January 1, 2014. 
‘‘(v) REPORT
TO
CONGRESS.—Not 
later than September 30 of each year dur-
ing the 5-year period referred to in clause 
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(iv), each Federal agency shall submit to 
the 
Secretary 
information 
regarding 
progress made by the agency towards 
achieving the goal described in such clause. 
Not later than 60 days after each such 
September 
30, 
the 
Secretary, 
acting 
through the Federal Energy Management 
Program, shall submit to the Committee 
on Energy and Commerce of the House of 
Representatives and the Committee on En-
ergy and Natural Resources of the Senate 
a report describing the progress made by 
the Federal Government towards achieving 
such goal.’’. 
SEC. 308. REDUCE REDUNDANT HEALTH PAYMENTS FOR 
SENIORS. 
(a) STUDY.—The Secretary of Health and Human 
Services, in cooperation with the Secretary of Veterans Af-
fairs and the Secretary of Defense, shall conduct a study 
examining the extent to which payments may be made 
under both the Medicare Advantage program and under 
the veterans health care system or the TRICARE program 
for health care furnished to individuals who are eligible 
under such Medicare Advantage program and the veterans 
health care system or the TRICARE program. 
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(b) REPORT.—The Secretary shall submit a report to 
Congress on the study conducted under subsection (a). 
The report shall contain recommendations that— 
(1) preserve access to benefits under the Medi-
care program for individuals eligible for such bene-
fits; 
(2) focus on satisfaction and health outcomes of 
such individuals with respect to such benefits; 
(3) provide for the efficient use of Federal 
funds; 
(4) account for the adequacy of the veterans 
health care system and the TRICARE program; and 
(5) minimize disruption to the availability of 
Medicare Advantage plans and networks of providers 
participating in such plans. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘Medicare Advantage program’’ 
means the program under part C of title XVIII of 
the Social Security Act. 
(2) The term ‘‘TRICARE program’’ has the 
meaning given that term in section 1072(7) of title 
10, United States Code. 
(3) The term ‘‘veterans health care system’’ 
means the health care system established under sec-
tion 1705 of title 38, United States Code. 
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SEC. 309. EFFICIENT MEDICARE BILLING. 
(a) OPTION TO RECEIVE MEDICARE SUMMARY NO-
TICE ELECTRONICALLY.— 
(1) IN GENERAL.—Section 1806 of the Social 
Security Act (42 U.S.C. 1395b–7) is amended by 
adding at the end the following new subsection: 
‘‘(c) FORMAT OF STATEMENTS FROM SECRETARY.— 
‘‘(1) 
ELECTRONIC
OPTION
BEGINNING
IN 
2015.—Subject to paragraph (2), for statements de-
scribed in subsection (a) that are furnished for a pe-
riod in 2015 or a subsequent year, in the case that 
an individual described in subsection (a) elects, in 
accordance with such form, manner, and time speci-
fied by the Secretary, to receive such statement in 
an electronic format, such statement shall be fur-
nished to such individual for each period subsequent 
to such election in such a format and shall not be 
mailed to the individual. 
‘‘(2) ONE-TIME REVOCATION OPTION.—An indi-
vidual who makes an election described in paragraph 
(1) may revoke such election once. 
‘‘(3) NOTIFICATION.—The Secretary shall en-
sure that, in the most cost effective manner and be-
ginning January 1, 2017, a clear notification of the 
option to elect to receive statements described in 
subsection (a) in an electronic format is made avail-
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able, such as through the notices distributed under 
section 1804, to individuals described in subsection 
(a).’’. 
(2) ENCOURAGED EXPANSION OF ELECTRONIC 
STATEMENTS.—To the extent to which the Secretary 
of Health and Human Services determines appro-
priate, the Secretary shall— 
(A) apply an option similar to the option 
described in subsection (c)(1) of section 1806 of 
the Social Security Act (42 U.S.C. 1395b–7) 
(relating to the provision of the Medicare Sum-
mary Notice in an electronic format), as added 
by subsection (a), to other statements and noti-
fications under title XVIII of such Act (42 
U.S.C. 1395 et seq.); and 
(B) provide such Medicare Summary No-
tice and any such other statements and notifi-
cations on a more frequent basis than is other-
wise required under such title. 
(b) 
RENEWAL
OF
MAC 
CONTRACTS.—Section 
1874A(b)(1)(B) of the Social Security Act (42 U.S.C. 
1395kk–1(b)(1)(B)) is amended by striking ‘‘5 years’’ and 
inserting ‘‘10 years’’. 
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TITLE IV—SAVE IV 
SEC. 401. SHORT TITLE. 
This title may be cited as the ‘‘Savings, Account-
ability, Value, & Efficiency IV Act’’ or the ‘‘SAVE Act 
IV’’. 
SEC. 402. STUDY ON CHALLENGES IDENTITY THEFT POSES 
FOR INTERNAL REVENUE SERVICE. 
(a) IN GENERAL.—The Secretary of the Treasury (or 
the Secretary’s delegate) shall conduct a study on the 
challenges identity theft poses for the Internal Revenue 
Service, especially the ability of the Internal Revenue 
Service to identify false tax returns before fraudulent re-
funds are issued. 
(b) REPORT.—Not later than September 1, 2016, the 
Secretary (or the Secretary’s delegate) shall submit to the 
Congress a report on the study conducted under sub-
section (a) and shall include in the report recommenda-
tions to address the challenges identity theft poses for the 
Internal Revenue Service. 
SEC. 403. STUDY ON COST-EFFECTIVE ACQUISITION OF 
MEDICAL EQUIPMENT AND SUPPLIES UNDER 
THE MEDICARE PROGRAM. 
(a) IN GENERAL.—The Secretary of Health and 
Human Services shall conduct a study that— 
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(1) identifies categories of rental of medical 
equipment and supplies (as defined in section 
1834(j)(5) of such Act (42 U.S.C. 1395m(j)(5)))— 
(A) for which payment may be made under 
title XVIII of the Social Security Act for the 
rental of such a category of equipment and sup-
plies; and 
(B) with respect to which the Secretary de-
termines that payment for the purchase of such 
category of equipment and supplies, instead of 
such rental, would result in lower expenditures 
under such title; and 
(2) for each category of equipment and supplies 
identified under paragraph (1), provides rec-
ommendations— 
(A) on the extent to which payment should 
be provided under such title for purchase in-
stead of rental of such category of equipment 
and supplies; and 
(B) in the case that payment for the pur-
chase of such a category is not authorized 
under such title, for the development of a pay-
ment system or methodology under such title 
for such purchases. 
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(b) REPORT.—Not later than one year after the date 
of the enactment of this section, the Secretary of Health 
and Human Services shall submit to Congress a report 
on the study conducted under subsection (a) and shall in-
clude in the report recommendations developed under 
paragraph (2) of such subsection. 
SEC. 404. REPORT ON FRAGMENTATION OF DEPARTMENT 
OF DEFENSE FOREIGN LANGUAGE SUPPORT 
PROGRAMS. 
(a) REPORT REQUIREMENT.—The Secretary of De-
fense shall prepare a report on streamlining the manage-
ment of contracts for foreign language support programs 
of the Department of Defense. 
(b) MATTERS COVERED.—The report shall include— 
(1) an assessment of the current approach 
taken by the Department of Defense for managing 
foreign language support contracts, including, at a 
minimum— 
(A) an analysis of spending for types of 
foreign language support services and products 
that have been acquired— 
(i) by the executive agent for foreign 
language support services; and 
(ii) by components of the Department 
other than such executive agent; and 
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(B) based on the results of the analysis 
under subparagraph (A), a reevaluation of the 
scope of the executive agent’s efforts to manage 
foreign language support contracts to determine 
if any adjustments are needed; 
(2) recommendations to reduce fragmentation 
in contracting for foreign language support pro-
grams, including such recommendations as the Sec-
retary determines appropriate relating to the adop-
tion of uniform contracting procedures, increasing 
collaboration among Department of Defense compo-
nents, gaining efficiencies, and controlling spending. 
(c) DEFINITIONS.—In this section: 
(1) 
FOREIGN
LANGUAGE
SUPPORT
PRO-
GRAMS.—The term ‘‘foreign language support pro-
grams’’ includes a range of services and products 
that the Department of Defense considers foreign 
language support, such as translation and interpre-
tation services, the assistance of personnel who pos-
sess language skills, and foreign language instruc-
tion. 
(2) EXECUTIVE AGENT.—The term ‘‘executive 
agent’’, with respect to foreign language support 
programs, means the Army. 
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(d) SUBMISSION TO CONGRESS.—The report required 
by this section shall be submitted to Congress not later 
than 180 days after the date of the enactment of this Act. 
SEC. 405. AUDIT OF DEPARTMENT OF DEFENSE BY PRI-
VATE ENTITY. 
(a) FINDINGS.—Congress finds the following: 
(1) Section 1003(a)(2)(A)(ii) of the National 
Defense Authorization Act for Fiscal Year 2010 
(Public Law 111–84; 10 U.S.C. 2222 note) requires 
that the financial statements of the Department of 
Defense be validated as ready for audit by Sep-
tember 30, 2017. 
(2) Section 1003(a) of the National Defense 
Authorization Act for Fiscal Year 2014 (Public Law 
113–66; 127 Stat. 842; 10 U.S.C. 2222 note) re-
quires that, upon the conclusion of fiscal year 2018, 
the Secretary of Defense shall ensure that a full 
audit is performed on the financial statements of the 
Department of Defense for such fiscal year and sub-
mit to Congress the results of that audit by not later 
than March 31, 2019. 
(b) REQUIREMENT.— 
(1) IN
GENERAL.—The Secretary of Defense 
shall award a contract to a highly credentialed inde-
pendent external auditor to perform an audit of the 
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financial statements of the Department of Defense 
for fiscal year 2018. Such audit shall be in addition 
to the audit required to be performed by the Sec-
retary of Defense on such financial statements for 
that fiscal year. 
(2) CONTRACT REQUIREMENTS.—The contract 
awarded under paragraph (1) shall require the audi-
tor to complete the audit and submit to Congress a 
report on the results of the audit within 365 days 
after award of the contract. 
(3) SAVINGS
INCENTIVE.—The contract also 
shall provide for payment to the auditor of 1 percent 
of any amounts identified by the auditor as potential 
savings upon achievement of such savings, if 
achievement of such savings occurs within 1 year 
after completion of the audit. 
(4) NATIONAL
SECURITY
PROTECTIONS.—The 
contract awarded under paragraph (1) shall ensure 
that the audit is carried out consistent with and sub-
ject to any national security protections applicable 
under law or regulation. 
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SEC. 406. PREFERENCE FOR CONTRACTS WITH LOCAL AND 
STATE GOVERNMENTS FOR SHARED PER-
FORMANCE OF MAINTENANCE AND ADMINIS-
TRATIVE FUNCTIONS AT MILITARY INSTAL-
LATIONS. 
(a) AUTHORITY.—Using funds appropriated to a 
military department for operation and maintenance, the 
Secretary of that military department is authorized and 
encouraged to enter into contracts or other agreements for 
the performance of maintenance and administrative func-
tions at military installations in the United States under 
the jurisdiction of the Secretary with a proximately located 
local or State government, or combination of such govern-
ments, in order to utilize the government’s efficiencies in 
already performing such functions for the general public 
and to reduce the cost to the Federal Government of pro-
viding or procuring such functions. 
(b) NATIONAL SECURITY PROTECTIONS.—The Sec-
retary of a military department shall ensure that each con-
tract and agreement entered into under this section is con-
sistent with the security plan for the military installation. 
Æ 
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