498 
or policy-determining character under schedule C 
of subpart C of part 213 of title 5 of the Code 
of Federal Regulations. 
(11) SENIOR POSITION.—The term ‘‘senior posi-
tion’’ means— 
(A) a Senior Executive Service position, as 
defined in section 3132(a)(2) of title 5, United 
States Code; 
(B) a position in the Senior Foreign Serv-
ice established under the Foreign Service Act of 
1980 (22 U.S.C. 3901 et seq.); 
(C) a position in the Federal Bureau of In-
vestigation and Drug Enforcement Administra-
tion Senior Executive Service established under 
section 3151 of title 5, United States Code; 
(D) a position filled by a limited term ap-
pointee or limited emergency appointee in the 
Senior Executive Service, as defined under para-
graphs (5) and (6), respectively, of section 
3132(a) of title 5, United States Code; and 
(E) any other equivalent position identified 
by the Committee. 
(c) COMMITTEE
ON
NATIONAL
SECURITY
PER-
SONNEL.— 
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(1) ESTABLISHMENT.—There is established the 
Committee on National Security Personnel within the 
Executive Office of the President. 
(2) MEMBERSHIP.—The members of the Com-
mittee shall be the Director of the Office of Manage-
ment and Budget, the Director of the Office of Per-
sonnel Management, and the Assistant to the Presi-
dent for National Security Affairs. 
(3) CHAIRPERSON.—The Director of the Office of 
Management and Budget shall be the Chairperson of 
the Committee. 
(4) FUNCTIONS.— 
(A) IN
GENERAL.—The Committee shall 
perform the functions as provided under this 
subtitle to implement this subtitle and shall vali-
date the actions taken by the heads of covered 
agencies to implement the directives issued and 
meet the standards established under subpara-
graph (B). 
(B) DIRECTIVES AND STANDARDS.— 
(i) IN GENERAL.—In consultation with 
the Director of the Office of Personnel Man-
agement and the Assistant to the President 
for National Security Affairs, the Director 
of the Office of Management and Budget 
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shall issue directives and establish stand-
ards relating to the implementation of this 
subtitle. 
(ii) USE BY COVERED AGENCIES.—The 
head of each covered agency shall carry out 
the responsibilities under this subtitle in ac-
cordance with the directives issued and 
standards established by the Director of the 
Office of Management and Budget. 
(5) SUPPORT AND IMPLEMENTATION.— 
(A) BOARD.—There is established to assist 
the Committee a board, the members of which 
shall be appointed— 
(i) in accordance with subparagraph 
(B); and 
(ii) from among individuals holding 
an office or position in level III of the Exec-
utive Schedule. 
(B) APPOINTMENTS.—Members of the board 
shall be appointed as follows: 
(i) One by the Secretary of State. 
(ii) One by the Secretary of Defense. 
(iii) One by the Secretary of Homeland 
Security. 
(iv) One by the Attorney General. 
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501 
(v) One by the Secretary of the Treas-
ury. 
(vi) One by the Secretary of Energy. 
(vii) One by the Secretary of Health 
and Human Services. 
(viii) One by the Secretary of Com-
merce. 
(ix) One by the head of any other 
agency (or, if more than 1, by each of the 
respective heads of any other agencies) de-
termined appropriate by the Committee. 
As used in clause (ix), the term ‘‘agency’’ does 
not include any element of the intelligence com-
munity. 
(C) CHIEF
HUMAN
CAPITAL
OFFICERS 
COUNCIL.—The Chief Human Capital Officers 
Council shall provide advice to the Committee re-
garding technical human capital issues. 
(D) COVERED AGENCY OFFICIALS.— 
(i) IN
GENERAL.—The head of each 
covered agency shall designate an officer 
and office within that covered agency with 
responsibility for the implementation of this 
subtitle. 
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502 
(ii) EXISTING OFFICES.—If an officer 
or office of a covered agency is designated 
as the officer or office within the covered 
agency with responsibility for the imple-
mentation of Executive Order 13434 for the 
covered agency on the date of enactment of 
this Act, the head of the covered agency 
shall designate the officer or office as the of-
ficer or office within the covered agency 
with responsibility for the implementation 
of this subtitle. 
(E) STAFF.— 
(i) IN
GENERAL.—Not more than 3 
full-time employees (or the equivalent) may 
be hired to assist the Committee in the im-
plementation of this subtitle. Each employee 
so hired shall be selected from among indi-
viduals serving in the Office of Management 
and Budget, the Office of Personnel Man-
agement, or any other agency. 
(ii) FUNDING.— 
(I) AUTHORIZATION
OF
APPRO-
PRIATIONS.—There are authorized to 
be appropriated for each of fiscal years 
2013 through 2017 to carry out clause 
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503 
(i) an amount equal to the amount ex-
pended for salaries and expenses of the 
National Security Professional Devel-
opment Integration Office during fiscal 
year 2012. 
(II) OFFSET.— 
(aa) IN
GENERAL.—Except 
as 
provided 
in 
subparagraph 
(D)(ii), effective on the date of en-
actment of this Act, the National 
Security 
Professional 
Develop-
ment Integration Office of the De-
partment of Defense is terminated 
and, on and after the date of en-
actment of this Act, the Secretary 
of Defense may not establish a 
comparable office to implement 
Executive Order 13434 or to de-
sign, administer, or report on the 
creation of a national security 
professional development system, 
cadre of national security profes-
sionals, or any personnel rota-
tions, education, or training for 
individuals involved in inter-
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504 
agency activities or who are na-
tional security professionals who 
are not employed by the Depart-
ment of Defense. Nothing in this 
item shall be construed to prohibit 
the Secretary of Defense from es-
tablishing or designating an office 
to administer interagency rota-
tions by, or the interagency ac-
tivities of, employees of the De-
partment of Defense. 
(bb) TRANSFER
OF
FUNC-
TIONS.—Effective on the date of 
enactment of this Act, there are 
transferred to the Office of Man-
agement and Budget or the Office 
of Personnel Management, as de-
termined appropriate by the Com-
mittee, the functions of the Na-
tional Security Professional De-
velopment Integration Office of 
the Department of Defense. 
(cc) 
FUNDS.—Effective 
on 
the date of enactment of this Act, 
all unobligated balances made 
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505 
available for the activities of the 
National 
Security 
Professional 
Development Integration Office of 
the Department of Defense are re-
scinded. 
(d) NATIONAL SECURITY INTERAGENCY COMMUNITIES 
OF INTEREST.— 
(1) IDENTIFICATION
OF
ICIS.—Subject to sub-
section (g), the Committee— 
(A) shall identify ICIs on an ongoing basis 
for purposes of carrying out this subtitle; and 
(B) may alter or discontinue an ICI identi-
fied under subparagraph (A). 
(2) IDENTIFICATION
OF
ICI
POSITIONS.—The 
head of each covered agency shall identify ICI posi-
tions within the covered agency. 
(3) INTERAGENCY BODIES.— 
(A) IDENTIFICATION.— 
(i) IN GENERAL.—The Committee shall 
identify— 
(I) entities in the executive branch 
of the Government that are primarily 
involved in interagency activities relat-
ing to national security or homeland 
security; and 
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506 
(II) components of agencies that 
are primarily involved in interagency 
activities relating to national security 
or homeland security and have a mis-
sion distinct from the agency within 
which the component is located. 
(ii) CERTAIN BODIES.— 
(I) IN GENERAL.—The Committee 
shall identify the National Security 
Council as an interagency body under 
this subparagraph. 
(II) FBI ROTATIONS.—Joint Ter-
rorism Task Forces shall not be consid-
ered interagency bodies for purposes of 
service by employees of the Federal Bu-
reau of Investigation. 
(iii) DUTIES
OF
HEAD
OF
COVERED 
AGENCY.—The Committee shall designate 
the Federal officer who shall perform the 
duties of the head of a covered agency relat-
ing to ICI positions within an interagency 
body. 
(B) POSITIONS IN INTERAGENCY BODIES.— 
The officials designated under subparagraph 
(A)(iii) shall identify— 
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507 
(i) positions within their respective 
interagency bodies that are ICI positions; 
and 
(ii) positions within their respective 
interagency bodies— 
(I) that are not a position de-
scribed under subsection (b)(10)(A) or 
(C) or a position filled by an employee 
described under subsection (b)(10)(B); 
and 
(II) for which service in the posi-
tion shall constitute interagency rota-
tional service. 
(e) INTERAGENCY COMMUNITY OF INTEREST ROTA-
TIONAL SERVICE.— 
(1) EXCLUSION
OF
SENIOR
POSITIONS.—For 
purposes of this subsection, the term ‘‘ICI position’’ 
does not include a senior position. 
(2) ROTATIONS.— 
(A) IN
GENERAL.—The Committee shall 
provide for employees serving in an ICI position 
to be assigned on a rotational basis to another 
ICI position that is— 
(i) within another covered agency or 
within an interagency body; and 
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508 
(ii) within the same ICI. 
(B) EXCEPTION.—An employee may be as-
signed to an ICI position in another covered 
agency or in an interagency body that is not in 
the ICI applicable to an ICI position in which 
the employee serves or has served if— 
(i) the employee has particular non-
governmental or other expertise or skills 
that are relevant to the assigned ICI posi-
tion; and 
(ii) the head of the covered agency em-
ploying the employee, the head of the cov-
ered agency to which the assignment is 
made, and the Committee approve the as-
signment. 
(C) NONREIMBURSABLE BASIS.—Service by 
an employee in an ICI position in another cov-
ered agency or in an interagency body that is 
not within the agency employing the employee 
shall be performed without reimbursement. 
(D) RETURN TO PRIOR POSITION.—Except 
as otherwise provided by the Committee, an em-
ployee performing service in an ICI position in 
another covered agency or interagency body or in 
a 
position 
designated 
under 
subsection 
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509 
(d)(3)(B)(ii) shall be entitled to return, within a 
reasonable period of time after the end of the pe-
riod of service, to the position held by the em-
ployee, or a corresponding or higher position (or, 
in the case of an employee in the Foreign Serv-
ice, as defined in section 102(11) of the Foreign 
Service Act of 1980 (22 U.S.C. 3902(11)), a po-
sition in the same or a higher personnel cat-
egory), in the covered agency employing the em-
ployee. 
(3) SELECTION OF ICI POSITIONS OPEN FOR RO-
TATIONAL SERVICE.— 
(A) IN GENERAL.—The head of each covered 
agency shall determine which ICI positions in 
the covered agency shall be available for service 
by employees from another covered agency and 
may modify a determination under this sub-
paragraph. 
(B) LIST.—The Committee shall maintain 
a single, integrated list of ICI positions and of 
positions available for service by employees from 
another covered agency under this subsection and 
shall make the list available to Federal employees 
on an ongoing basis in order to facilitate appli-
cations for the positions and long-term career 
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510 
planning by employees of the executive branch of 
the Government, except to the extent that the 
Committee determines that the identity of cer-
tain positions should not be distributed in order 
to protect national security or homeland secu-
rity. 
(4) MINIMUM PERIOD OF SERVICE.—With respect 
to the period of service in an ICI position in another 
covered agency or interagency body, the Committee— 
(A) shall, notwithstanding any other provi-
sion of law, ensure that the period of service is 
sufficient to gain an adequately detailed under-
standing and perspective of the covered agency or 
interagency body at which the employee is as-
signed; 
(B) may provide for different periods of 
service, depending upon the nature of the posi-
tion, including whether the position is in an 
area that is a combat zone for purposes of section 
112 of the Internal Revenue Code of 1986; and 
(C) shall require that an employee per-
forming service in an ICI position in another 
covered agency or interagency body is informed 
of the period of service for the position before be-
ginning such service. 
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511 
(5) VOLUNTARY NATURE OF ROTATIONAL SERV-
ICE.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), service in an ICI position in 
another covered agency or interagency body shall 
be voluntary on the part of the employee. 
(B) 
AUTHORITY
TO
ASSIGN
INVOLUN-
TARILY.—If the head of a covered agency has the 
authority under another provision of law to as-
sign an employee involuntarily to a position and 
the employee is serving in an ICI position, the 
head of the covered agency may assign the em-
ployee involuntarily to serve in an ICI position 
in another covered agency or interagency body. 
(6) TRAINING AND EDUCATION OF PERSONNEL 
PERFORMING INTERAGENCY ROTATIONAL SERVICE.— 
Each employee performing interagency rotational 
service shall participate in the training and edu-
cation, if any, that is regularly provided to new em-
ployees by the covered agency or interagency body in 
which the employee is serving in order to learn how 
the covered agency or interagency body functions. 
(7) PREVENTION OF NEED FOR INCREASED PER-
SONNEL LEVELS.—The Committee shall ensure that 
employees are rotated across covered agencies and 
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512 
interagency bodies within an ICI in a manner that 
ensures that, for the original ICI positions of all em-
ployees performing service in an ICI position in an-
other covered agency or interagency body— 
(A) employees from another covered agency 
or interagency body who are performing service 
in an ICI position in another covered agency or 
interagency body, or other available employees, 
begin service in such original positions within a 
reasonable period, at no additional cost to the 
covered agency or the interagency body in which 
such original positions are located; or 
(B) other employees do not need to serve in 
the positions in order to maintain the effective-
ness of or to prevent any costs being accrued by 
the covered agency or interagency body in which 
such original positions are located. 
(8) OPEN AND FAIR COMPETITION.—Each cov-
ered agency or interagency body that has an ICI posi-
tion available for service by an employee from an-
other covered agency shall coordinate with the Office 
of Personnel Management to ensure that employees of 
covered agencies selected to perform interagency rota-
tional service shall be selected in a fully open and 
competitive manner that is consistent with the merit 
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513 
system principles set forth in paragraphs (1) and (2) 
of section 2301(b) of title 5, United States Code, un-
less the ICI position is otherwise exempt under an-
other provision of law. 
(9) PERSONNEL LAW MATTERS.— 
(A) NATIONAL SECURITY EXCLUSION.—The 
identification of a position as available for serv-
ice by an employee of another covered agency or 
as being within an ICI shall not be a basis for 
an order under section 7103(b) of title 5, United 
States Code, excluding the covered agency, or a 
subdivision thereof, in which the position is lo-
cated from the applicability of chapter 71 of such 
title. 
(B) ON
ROTATION.—An employee per-
forming interagency rotational service shall have 
all the rights that would be available to the em-
ployee if the employee were detailed or assigned 
under a provision of law other than this subtitle 
from the agency employing the employee to the 
agency in which the ICI position in which the 
employee is serving is located. 
(10) CONSULTATION.—The Committee shall con-
sult with relevant associations, unions, and other 
groups involved in collective bargaining or encour-
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514 
aging public service, organizational reform of the 
Government, or interagency activities (such as the Si-
mons Center for the Study of Interagency Cooperation 
of the Command and General Staff College Founda-
tion) in formulating and implementing policies under 
this subtitle. 
(11) OFFICERS OF THE ARMED FORCES.—The 
policies, procedures, and practices for the manage-
ment of officers of the Armed Forces may provide for 
the assignment of officers of the Armed Forces to ICI 
positions or positions designated under subsection 
(d)(3)(B)(ii). 
(12) PERFORMANCE
APPRAISALS.—The Com-
mittee shall— 
(A) ensure that an employee receives per-
formance evaluations that are based primarily 
on the contribution of the employee to the work 
of the covered agency in which the employee is 
performing service in an ICI position in another 
covered agency or interagency body and the func-
tioning of the applicable ICI; and 
(B) require that— 
(i) officials at the covered agency em-
ploying the employee conduct the evalua-
tions based on input from the supervisors of 
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515 
the employee during service in an ICI posi-
tion in another covered agency or inter-
agency body; and 
(ii) the evaluations shall be provided 
the same weight in the receipt of promotions 
and other rewards by the employee from the 
covered agency employing the employee as 
performance evaluations receive for other 
employees of the covered agency. 
(f) SELECTION OF SENIOR POSITIONS IN AN INTER-
AGENCY COMMUNITY OF INTEREST.— 
(1) SELECTION OF INDIVIDUALS TO FILL SENIOR 
POSITIONS WITHIN AN ICI.—In selecting individuals 
to fill senior positions within an ICI, the head of a 
covered agency shall ensure that a strong preference 
is given to personnel who have performed interagency 
rotational service. 
(2) ESTABLISHMENT
BY
HEADS
OF
COVERED 
AGENCIES OF MINIMUM THRESHOLDS.— 
(A) IN GENERAL.—On October 1 of the 2nd 
fiscal year after the fiscal year in which the 
Committee identifies an ICI, and October 1 of 
each fiscal year thereafter, the head of each cov-
ered agency within which 1 or more positions 
within that ICI are located shall establish the 
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517 
failure and indicating what actions the 
head of the covered agency has taken or 
plans to take in response to the failure. 
(3) OTHER ROTATIONAL REQUIREMENTS.— 
(A) CREDIT FOR SERVICE IN ANOTHER COM-
PONENT WITHIN AN AGENCY.—Service performed 
during the first 3 fiscal years after the fiscal 
year in which an ICI is identified by the Com-
mittee by an employee in a rotation to an ICI 
position in another component of the covered 
agency that employs the employee that is identi-
fied under subparagraph (B) shall constitute 
interagency rotational service for purposes of 
this section. 
(B) IDENTIFICATION
OF
COMPONENTS.— 
Subject to approval by the Committee, the head 
of a covered agency may identify the components 
of the covered agency that are sufficiently inde-
pendent in functionality for service in a rotation 
in the component to qualify as service in another 
component of the covered agency for purposes of 
subparagraph (A). 
(g) IMPLEMENTATION.— 
(1) ICIS AND ICI POSITIONS.— 
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(A) IN GENERAL.—During each of the first 
4 fiscal years after the fiscal year in which this 
Act is enacted— 
(i) there shall be 2 ICIs, which shall be 
an ICI for emergency management and an 
ICI for stabilization and reconstruction; 
and 
(ii) not less than 20 employees and not 
more than 25 employees in the executive 
branch of the Government shall perform 
service in an ICI position in another cov-
ered agency or in an interagency body that 
is not within the agency employing the em-
ployee under this subtitle. 
(B) LOCATION.— 
(i) IN GENERAL.—The Committee shall 
designate a metropolitan area in which the 
ICI for emergency management will be lo-
cated and a metropolitan area in which the 
ICI for stabilization and reconstruction will 
be located. 
(ii) SERVICE.—During the first 4 fis-
cal years after the fiscal year in which this 
Act is enacted, any service in an ICI posi-
tion in another covered agency or in an 
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519 
interagency body that is not within the 
agency employing the employee shall be per-
formed— 
(I) by an employee who is located 
in a metropolitan area for the ICI des-
ignated under clause (i) before begin-
ning service in the ICI position; and 
(II) at a location in a metropoli-
tan area for the ICI designated under 
clause (i). 
(2) PRIORITY FOR DETAILS.—During the first 4 
fiscal years after the fiscal year in which this Act is 
enacted, a covered agency shall give priority in using 
amounts available to the covered agency for details to 
assigning employees on a rotational basis under this 
subtitle. 
(h) STRATEGY AND PERFORMANCE EVALUATION.— 
(1) ISSUING OF STRATEGY.— 
(A) IN GENERAL.—Not later than October 1 
of the 3rd fiscal year after the fiscal year in 
which this Act is enacted, and every 4 fiscal 
years thereafter through the 11th fiscal year after 
the fiscal year in which this Act is enacted, the 
Committee shall issue a National Security 
Human Capital Strategy to develop the national 
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520 
security and homeland security personnel nec-
essary for accomplishing national security and 
homeland security objectives that require integra-
tion of personnel and activities from multiple 
agencies of the executive branch of the Govern-
ment. 
(B) CONSULTATIONS WITH CONGRESS.—In 
developing or making adjustments to the Na-
tional Security Human Capital Strategy issued 
under subparagraph (A), the Committee— 
(i) shall consult at least annually with 
Congress, including majority and minority 
views from all appropriate authorizing, ap-
propriations, and oversight committees; and 
(ii) as the Committee determines ap-
propriate, shall solicit and consider the 
views and suggestions of entities potentially 
affected by or interested in the strategy. 
(C) CONTENTS
OF
STRATEGY.—Each Na-
tional Security Human Capital Strategy issued 
under subparagraph (A) shall— 
(i) provide for the implementation of 
this subtitle; 
(ii) identify best practices from ICIs 
already in operation; 
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521 
(iii) identify any additional ICIs to be 
identified by the Committee; 
(iv) include a schedule for the issuance 
of directives and establishment of standards 
relating to the requirements under this sub-
title by the Committee; 
(v) include a description of how the 
strategy incorporates views and suggestions 
obtained through the consultations with 
Congress required under subparagraph (B); 
(vi) include an assessment of perform-
ance measures over a multi-year period, 
such as— 
(I) the percentage of ICI positions 
available for service by employees from 
another covered agency for which such 
employees performed such service; 
(II) the number of personnel par-
ticipating in interagency rotational 
service in each covered agency and 
interagency body; 
(III) the length of interagency ro-
tational service under this subtitle; 
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(IV) reports by the heads of cov-
ered agencies submitted under sub-
section (f)(2)(B)(ii); 
(V) the training and education of 
personnel who perform interagency ro-
tational service, and the evaluation by 
the Committee of the training and edu-
cation; 
(VI) 
the 
positions 
(including 
grade level) held by employees who per-
form interagency rotational service 
during the period beginning on the 
date on which the interagency rota-
tional service terminates and ending 
on the date of the assessment; and 
(VII) to the extent possible, the 
evaluation of the Committee of the util-
ity of interagency rotational service in 
improving interagency integration. 
(2) REPORTS.—Not later than October 1 of the 
2nd fiscal year after a fiscal year in which the Com-
mittee issues a National Security Human Capital 
Strategy under paragraph (1), the Committee shall 
assess the performance measures described in para-
graph (1)(C)(vi). 
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(3) SUBMISSION TO CONGRESS.—Not later than 
30 days after the date on which the Committee issues 
a National Security Human Capital Strategy under 
paragraph (1) or assesses performance measures 
under paragraph (2), the Committee shall submit the 
strategy or assessment to Congress. 
(i) GAO STUDY OF INTERAGENCY ROTATIONAL SERV-
ICE.—Not later than the end of the 2nd fiscal year after 
the fiscal year in which this Act is enacted, the Comptroller 
General of the United States shall submit to Congress a re-
port regarding— 
(1) the extent to which performing service in an 
ICI position in another covered agency or an inter-
agency body under this subtitle enabled the employees 
performing the service to gain an adequately detailed 
understanding of and perspective on the covered agen-
cy or interagency body, including an assessment of 
the effect of— 
(A) the period of service; and 
(B) the duties performed by the employees 
during the service; 
(2) the effectiveness of the Committee and the 
staff of the Committee funded under subsection 
(c)(5)(E)(ii) in overseeing and managing interagency 
rotational service under this subtitle, including an 
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evaluation of any directives or standards issued by 
the Committee; 
(3) the participation of covered agencies in inter-
agency rotational service under this subtitle, includ-
ing whether each covered agency that performs a mis-
sion relating to an ICI in effect— 
(A) identified positions within the covered 
agency as ICI positions; 
(B) had 1 or more employees from another 
covered agency perform service in an ICI posi-
tion in the covered agency; or 
(C) had 1 or more employees of the covered 
agency perform service in an ICI position in an-
other covered agency; 
(4) the positions (including grade level) held by 
employees after completing interagency rotational 
service under this subtitle, and the extent to which the 
employees were rewarded for the service; and 
(5) the extent to which or likelihood that inter-
agency rotational service under this subtitle has im-
proved or is expected to improve interagency integra-
tion. 
(j) PROHIBITION OF PRINTED REPORTS.—Each strat-
egy, plan, report, or other submission required under this 
subtitle— 
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(1) shall be made available by the agency issuing 
the strategy, plan, report, or other submission only in 
electronic form; and 
(2) shall not be made available by the agency in 
printed form. 
(k) EXCLUSION.—This subtitle shall not apply to any 
element of the intelligence community. 
TITLE XII—MATTERS RELATING 
TO FOREIGN NATIONS 
Subtitle A—Assistance and 
Training 
SEC. 1201. COMMANDERS’ EMERGENCY RESPONSE PRO-
GRAM IN AFGHANISTAN. 
(a) AUTHORITY FOR FISCAL YEAR 2013.—Subsection 
(a) of section 1201 of the National Defense Authorization 
Act for Fiscal Year 2012 (Public Law 112–81; 125 Stat. 
1619) is amended— 
(1) in the heading, by striking ‘‘FISCAL YEAR 
2012’’ and inserting ‘‘FISCAL YEAR 2013’’; and 
(2) by striking ‘‘fiscal year 2012’’ and inserting 
‘‘fiscal year 2013’’. 
(b) QUARTERLY REPORTS.—Subsection (b)(1) of such 
section is amended by striking ‘‘fiscal year 2012’’ and in-
serting ‘‘fiscal year 2013’’. 
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(c) EXTENSION OF AUTHORITY TO ACCEPT CONTRIBU-
TIONS.—Subsection (f) of such section is amended by strik-
ing ‘‘in fiscal year 2012’’ and inserting ‘‘during any period 
during which the authority of subsection (a) is in effect’’. 
SEC. 1202. MODIFICATION OF AUTHORITIES RELATING TO 
PROGRAM TO BUILD THE CAPACITY OF FOR-
EIGN MILITARY FORCES. 
(a) AUTHORIZED ELEMENTS.—Section 1206(b)(1) of 
the National Defense Authorization Act for Fiscal Year 
2006 (Public Law 109–163; 119 Stat. 3457), as amended 
by the John Warner National Defense Authorization Act for 
Fiscal Year 2007 (Public Law 109–364; 120 Stat. 2418), 
is further amended by striking ‘‘equipment, supplies and 
training’’ and inserting ‘‘equipment, supplies, training, 
and small-scale military construction activities’’. 
(b) USE OF FUNDS FOR FISCAL YEAR 2013.—Sub-
section (c) of such section, as most recently amended by sec-
tion 1204(a) of the National Defense Authorization Act for 
Fiscal Year 2012 (Public Law 112–81; 125 Stat. 1621), is 
further amended by adding at the end the following: 
‘‘(6) USE OF FUNDS FOR FISCAL YEAR 2013.— 
‘‘(A) LIMITATION
ON
SMALL-SCALE
MILI-
TARY
CONSTRUCTION
ACTIVITIES.—Of amounts 
available under this subsection for the authority 
in subsection (a) for fiscal year 2013— 
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‘‘(i) not more than $750,000 may be 
obligated or expended for small-scale mili-
tary construction activities (as described in 
subsection (b)(1)) under a program author-
ized under subsection (a); and 
‘‘(ii) not more than $25,000,000 may 
be obligated or expended for small-scale 
military construction activities (as de-
scribed in subsection (b)(1)) under all pro-
grams authorized under subsection (a). 
‘‘(B) AVAILABILITY
OF
FUNDS
FOR
PRO-
GRAMS DURING FISCAL YEAR 2014.— 
‘‘(i) IN
GENERAL.—Subject to clause 
(ii), not more than 20 percent of amounts 
available under this subsection for the au-
thority in subsection (a) for fiscal year 
2013 may be obligated and expended to con-
duct or support a program authorized 
under subsection (a) during fiscal year 
2014. 
‘‘(ii) 
NOTIFICATION.—Whenever 
the 
Secretary of Defense decides, with the con-
currence of the Secretary of State, to con-
duct or support a program authorized 
under subsection (a) during fiscal year 
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2014 using amounts described in clause (i), 
the Secretary of Defense shall submit to the 
congressional committees specified in para-
graph (3) of subsection (e) a notification in 
writing of that decision in accordance with 
such subsection by not later than September 
30, 2013.’’. 
SEC. 1203. THREE-YEAR EXTENSION OF AUTHORITY FOR 
NON-RECIPROCAL EXCHANGES OF DEFENSE 
PERSONNEL BETWEEN THE UNITED STATES 
AND FOREIGN COUNTRIES. 
Section 1207(f) of the National Defense Authorization 
Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 
2514; 10 U.S.C. 168 note) is amended by striking ‘‘Sep-
tember 30, 2012’’ and inserting ‘‘September 30, 2015’’. 
Subtitle B—Matters Relating to 
Iraq, Afghanistan, and Pakistan 
SEC. 1211. ONE-YEAR EXTENSION OF AUTHORITY FOR REIM-
BURSEMENT OF CERTAIN COALITION NA-
TIONS FOR SUPPORT PROVIDED TO UNITED 
STATES MILITARY OPERATIONS. 
(a) EXTENSION.—Subsection (a) of section 1233 of the 
National Defense Authorization Act for Fiscal Year 2008 
(Public Law 110–181; 122 Stat. 393), as most recently 
amended by section 1213 of the National Defense Authoriza-
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tion Act for Fiscal Year 2012 (Public Law 112–81; 125 
Stat. 1630), is further amended— 
(1) by striking ‘‘fiscal year 2012’’ and inserting 
‘‘fiscal year 2013’’; and 
(2) by striking ‘‘Operation Iraqi Freedom or’’. 
(b) LIMITATION ON AMOUNT AVAILABLE.—Subsection 
(d)(1) of such section, as so amended, is further amended— 
(1) by striking ‘‘fiscal year 2012’’ and inserting 
‘‘fiscal year 2013’’; 
(2) by striking ‘‘$1,690,000,000’’ and inserting 
‘‘$1,650,000,000’’; and 
(3) by adding at the end the following: ‘‘Of the 
aggregate amount specified in the preceding sentence, 
the total amount of reimbursements made under sub-
section (a) and support provided under subsection (b) 
to Pakistan during fiscal year 2013 may not exceed 
$650,000,000.’’. 
(c) ADDITIONAL LIMITATION ON REIMBURSEMENT OF 
THE GOVERNMENT
OF PAKISTAN.—Such section, as so 
amended, is further amended— 
(1) by redesignating subsection (f) as subsection 
(g); and 
(2) by inserting after subsection (e) the following: 
‘‘(f) ADDITIONAL LIMITATION ON REIMBURSEMENT OF 
THE GOVERNMENT OF PAKISTAN.—In addition to the other 
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requirements of this section, reimbursements authorized by 
subsection (a) and the support authorized by subsection (b) 
may be made to the Government of Pakistan for support 
of United States military operations for fiscal year 2013 
only if the Secretary of Defense submits to the congressional 
defense committees the following: 
‘‘(1) A report that contains a description of— 
‘‘(A) a model for reimbursement, including 
how claims are proposed and adjudicated; 
‘‘(B) new conditions or caveats that the 
Government of Pakistan places on the use of its 
supply routes; and 
‘‘(C) the estimated differences in costs asso-
ciated with transit through supply routes in 
Pakistan for fiscal year 2011 as compared to fis-
cal year 2013. 
‘‘(2) A certification of the Secretary of Defense 
that the Government of Pakistan is committed to— 
‘‘(A) supporting counterterrorism oper-
ations against Al Qaeda, its associated move-
ments, the Haqqani Network, and other domestic 
and foreign terrorist organizations; 
‘‘(B) dismantling improvised explosive de-
vice (IED) networks and interdicting precursor 
chemicals used in the manufacture of IEDs; 
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‘‘(C) preventing the proliferation of nuclear- 
related material and expertise; and 
‘‘(D) issuing visas in a timely manner for 
United States Government personnel supporting 
counterterrorism efforts and assistance programs 
in Pakistan.’’. 
SEC. 1212. AUTHORITY TO SUPPORT OPERATIONS AND AC-
TIVITIES OF THE OFFICE OF SECURITY CO-
OPERATION IN IRAQ. 
(a) TYPES OF SUPPORT.—Subsection (b) of section 
1215 of the National Defense Authorization Act for Fiscal 
Year 2012 (Public Law 112–81; 125 Stat. 1631) is amend-
ed— 
(1) by striking ‘‘The operations’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—The operations’’; and 
(2) by adding at the end the following: 
‘‘(2) TRAIN AND ASSIST.—The operations and 
activities that may be carried out by the Office of Se-
curity Cooperation in Iraq using funds provided 
under subsection (a) may, with the concurrence of the 
Secretary of State, include training and assisting 
Iraqi Ministry of Defense personnel.’’. 
(b) LIMITATION ON AMOUNT.—Subsection (c) of such 
section is amended by inserting at the end before the period 
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the following: ‘‘and in fiscal year 2013 may not exceed 
$508,000,000’’. 
(c) SOURCE OF FUNDS.—Subsection (d) of such section 
is amended— 
(1) by inserting ‘‘or fiscal year 2013’’ after ‘‘fis-
cal year 2012’’; and 
(2) by striking ‘‘that fiscal year’’ and inserting 
‘‘fiscal year 2012 or 2013, as the case may be,’’. 
(d) REPORT.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
Defense, in consultation with the Secretary of State, 
shall submit to the appropriate congressional commit-
tees a report on the Office of Security Cooperation in 
Iraq. 
(2) MATTERS
TO
BE
INCLUDED.—The report 
shall include the following: 
(A) The plan to consolidate Office sites. 
(B) The status of any pending requests for 
additional United States military forces for the 
Office. 
(C) The legal status and legal protections 
provided to Office personnel, the operational im-
pact of such status and protections, and the asso-
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ciated constraints on the operational capacity of 
such personnel by reason of their legal status. 
(D) The operational and functional limita-
tions and authorities of Office personnel. 
(E) A description of potential direct threats 
to Office personnel and their capacity to provide 
adequate force protection to thwart those threats. 
(3) FORM.—The report shall be submitted in un-
classified form, but may contain a classified annex if 
necessary. 
(4) DEFINITION.—In this section, the term ‘‘ap-
propriate congressional committees’’ means— 
(A) the congressional defense committees; 
and 
(B) the Committee on Foreign Relations of 
the Senate and the Committee on Foreign Affairs 
of the House of Representatives. 
SEC. 1213. ONE-YEAR EXTENSION OF AUTHORITY TO USE 
FUNDS FOR REINTEGRATION ACTIVITIES IN 
AFGHANISTAN. 
Section 1216 of the Ike Skelton National Defense Au-
thorization Act for Fiscal Year 2011 (Public Law 111–383; 
124 Stat. 4392), as amended by section 1216 of the National 
Defense Authorization Act for Fiscal Year 2012 (Public 
Law 112–81; 125 Stat. 1632), is further amended— 
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(1) in subsection (a)— 
(A) by striking ‘‘$50,000,000’’ and inserting 
‘‘$35,000,000’’; and 
(B) by striking ‘‘in each of fiscal years 2011 
and 2012’’ and inserting ‘‘for fiscal year 2013’’; 
and 
(2) in subsection (e)— 
(A) by striking ‘‘utilize funds’’ and insert-
ing ‘‘obligate funds’’; and 
(B) by striking ‘‘December 31, 2012’’ and 
inserting ‘‘December 31, 2013’’. 
SEC. 1214. PROHIBITION ON USE OF PRIVATE SECURITY 
CONTRACTORS AND MEMBERS OF THE AF-
GHAN PUBLIC PROTECTION FORCE TO PRO-
VIDE 
SECURITY 
FOR 
MEMBERS 
OF 
THE 
ARMED FORCES AND MILITARY INSTALLA-
TIONS AND FACILITIES IN AFGHANISTAN. 
(a) FINDINGS.—Congress makes the following findings: 
(1) According to the Department of Defense, as 
of February 1, 2012, there had been 42 insider attacks 
on coalition forces since 2007 by the Afghan National 
Army, Afghan National Police, or Afghan nationals 
hired by private security contractors to guard United 
States bases and facilities in Afghanistan. 
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(2) The Department of Defense data shows that 
the trend of insider attacks is increasing. 
(3) Members of the Armed Forces of the United 
States continue to be garrisoned and housed in facili-
ties and installations in Afghanistan that are guard-
ed by private security contractors and not by United 
States or coalition forces. 
(4) President Karzai has prohibited the use of 
private security contractors in Afghanistan and deter-
mined that beginning in March, 2012, the Afghan 
Ministry of Interior will provide Afghan Public Pro-
tection Forces on a reimbursable basis to those desir-
ing to contract for additional security. 
(5) The Afghan Ministry of Interior will have 
the primary responsibility for screening and vetting 
the Afghan nationals who will comprise the Afghan 
Public Protection Force. 
(6) The current force levels in Afghanistan are 
necessary to accomplish the International Security 
Assistance Force mission and force protection for 
members of the Armed Forces garrisoned and housed 
in Afghanistan should not come at the expense of mis-
sion success. 
(7) The President of the United States has begun 
to draw down United States military forces in Af-
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ghanistan and has committed to continue this draw-
down through 2014. 
(8) The redeployment phase of any military op-
eration brings increasing vulnerabilities to members 
of the Armed Forces. 
(9) It is the responsibility of the Commander in 
Chief to provide for the security for members of the 
Armed Forces deployed to Afghanistan and to miti-
gate internal threats to such forces to the greatest ex-
tent possible, while continuing to meet the objectives 
of the International Security Assistance Force mis-
sion in Afghanistan, including the training and 
equipping of the Afghan National Security Forces in 
order that they may provide for their own security. 
(b) SENSE OF CONGRESS.—It is the sense of Congress 
that— 
(1) the best security and force protection for 
members of the Armed Forces garrisoned and housed 
in Afghanistan should be provided; 
(2) better security and force protection for mem-
bers of the Armed Forces garrisoned and housed in 
Afghanistan can be provided by United States mili-
tary personnel than private security contractors or 
members of the Afghan Public Protection Force; 
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(3) the President should take action in light of 
the increased risk to members of the Armed Forces 
during this transitional period in Afghanistan and 
the increasing number of insider attacks; and 
(4) the United States remains committed to mis-
sion success in Afghanistan in light of the national 
security interests in the region and the sacrifice and 
commitment of the United States Armed Forces over 
the last ten years. 
(c) PROHIBITION.—Notwithstanding section 2465 of 
title 10, United States Code, funds appropriated to the De-
partment of Defense may not be obligated or expended for 
the purpose of— 
(1) entering into a contract for the performance 
of security-guard functions at a military installation 
or facility in Afghanistan at which members of the 
Armed Forces deployed to Afghanistan are garrisoned 
or housed; 
(2) otherwise employing private security contrac-
tors to provide security for members of the Armed 
Forces deployed to Afghanistan; or 
(3) employing the Afghan Public Protection 
Force to provide security for such members or to per-
form such security-guard functions at such a military 
installation or facility. 
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(d) REQUIREMENT.— 
(1) IN
GENERAL.—The President shall ensure 
that as many appropriately trained members of the 
Armed Forces of the United States as are necessary 
are available to— 
(A) perform security-guard functions at all 
military installations and facilities in Afghani-
stan at which members of the Armed Forces de-
ployed to Afghanistan are garrisoned or housed; 
(B) provide security for members of the 
Armed Forces deployed to Afghanistan; and 
(C) provide adequate counterintelligence 
support for such members. 
(2) RELATIONSHIP
TO
OTHER
REQUIREMENTS 
AND LIMITATIONS.—The members of the Armed Forces 
required to be made available under paragraph (1) 
shall be in addition to— 
(A) the number of such members who are 
deployed to Afghanistan to support the require-
ments of the North Atlantic Treaty Organization 
mission in Afghanistan and the military cam-
paign plan of the Commander of the Inter-
national Security and Assistance Force; and 
(B) any limitation on force levels that may 
be in effect. 
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(e) WAIVER.—The President may waive the prohibi-
tion under subsection (c) and the requirement under sub-
section (d) if the President submits to Congress a certifi-
cation in writing that— 
(1) the use of private security contractors or the 
Afghan Public Protection Force can provide a level of 
security and force protection for members of the 
Armed Forces deployed to Afghanistan that is at least 
equal to the security and force protection that can be 
provided by members of the Armed Forces; and 
(2) the Secretary of Defense has ensured that all 
employees of private security contractors and mem-
bers of the Afghan Public Protection Force providing 
security or force protection for members of the Armed 
Forces deployed to Afghanistan are independently 
screened and vetted by members of the Armed Forces 
of the United States. 
(f) REPORT.— 
(1) IN GENERAL.—Not later than 30 days after 
the end of each quarter of fiscal years 2013 and 2014, 
the Secretary of Defense shall submit to the congres-
sional defense committees a report on the following: 
(A) Data on attempted and successful at-
tacks by the Afghan National Security Forces, 
the Afghan Public Protection Force, and private 
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security contractors on United States Armed 
Forces and civilian personnel of the Department 
of Defense. 
(B) The number of members of the United 
States Armed Forces and civilian personnel of 
the Department of Defense wounded or killed due 
to such attacks. 
(C) A description of tactical or covert meth-
ods used in such attacks and a description of 
motivations for such attacks. 
(2) ADDITIONAL INFORMATION.—The first report 
submitted following the date of the enactment of this 
Act and the report submitted for the first quarter of 
fiscal year 2014 shall also include the following: 
(A) Actions the Department of Defense is 
taking to monitor indicators and early warning 
signs of infiltration or co-option of the Afghan 
National Security Forces, the Afghan Public 
Protection Force, and private security contrac-
tors. 
(B) The methodology and systematic ap-
proach to resolving disputes between the Afghan 
National Security Forces and United States 
Armed Forces and civilian personnel of the De-
partment of Defense when such disputes arise. 
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(g) DEFINITION.—In this section, the term ‘‘members 
of the Armed Forces deployed to Afghanistan’’ means mem-
bers of the Armed Forces deployed to Afghanistan in sup-
port of the International Security Assistance Force in Af-
ghanistan and members of the Armed Forces of the United 
States deployed to Afghanistan in support of Operation En-
during Freedom. 
SEC. 1215. REPORT ON UPDATES AND MODIFICATIONS TO 
CAMPAIGN PLAN FOR AFGHANISTAN. 
(a) REPORT REQUIRED.—Not later than 180 days 
after the date on which any substantial update or modifica-
tion is made to the campaign plan for Afghanistan (includ-
ing the supporting and implementing documents for such 
plan), the Comptroller General of the United States shall 
submit to the congressional defense committees a report on 
the updated or modified plan, including an assessment of 
the updated or modified plan. 
(b) EXCEPTION.—The requirement to submit a report 
under subsection (a) on any substantial update or modifica-
tion to the campaign plan for Afghanistan shall not apply 
if the Comptroller General— 
(1) determines that a report submitted to Con-
gress by the Comptroller General before the date of the 
enactment of this Act substantially meets the require-
ment to submit the report under subsection (a); and 
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(2) notifies the congressional defense committees 
in writing of the determination under paragraph (1). 
(c) TERMINATION.—The requirement to submit a re-
port under subsection (a) on any substantial update or 
modification to the campaign plan for Afghanistan shall 
terminate on September 30, 2014. 
(d) REPEAL.—Section 1226 of the National Defense 
Authorization Act for Fiscal Year 2010 (Public Law 111– 
84; 123 Stat. 2525) is repealed. 
SEC. 1216. UNITED STATES MILITARY SUPPORT IN AFGHAN-
ISTAN. 
(a) SENSE OF CONGRESS.—It is the sense of Congress 
that— 
(1) following Al Qaeda’s attacks on the United 
States on September 11, 2001, United States and coa-
lition forces have achieved significant progress toward 
security and stability in Afghanistan; 
(2) as the United States completes transfer of the 
lead for security to the Afghan National Security 
Forces by the end of 2014, the United States should 
ensure that the gains in security are maintained; 
(3) the United States mission in Afghanistan 
continues to be to disrupt, dismantle, and defeat al 
Qaeda, as well as to prevent its return to either Af-
ghanistan or Pakistan; 
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(4) the specific objectives in Afghanistan are to 
deny safe haven to Al Qaeda and to deny the Taliban 
the ability to overthrow the Afghan Government; 
(5) the Taliban, Haqqanis, and associated insur-
gents continue to enjoy safe havens in Pakistan, but 
are unlikely to be capable of overthrowing the Afghan 
Government unless the United States withdraws forces 
precipitously from Afghanistan; 
(6) the Haqqani Network provides unique capa-
bilities and capacity to the Afghan Taliban, and ad-
ditionally, serves as a combat multiplier to the Af-
ghan insurgency due to its geographic primacy over 
the key terrain of the Paktika, Paktia, and Khost 
provinces, as well as North and South Waziristan, 
and willingness to introduce international weaponry 
and technology into the battle space and serve as the 
reception point and integrator of international for-
eign fighters into the Afghan insurgency; 
(7) the Haqqani Network has been the most im-
portant Afghan-based protector of Al Qaeda; 
(8) the unique capabilities and effects brought to 
the battle space by the Haqqani Network necessitate 
that the Government of Afghanistan should have supe-
rior operational capacity in order to maintain the se-
curity of Afghanistan over time; 
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(9) the United States military should not main-
tain an indefinite combat mission in Afghanistan 
and should transition to a counter-terrorism and ad-
vise and assist mission at the earliest practicable 
date, consistent with conditions on the ground; 
(10) significant uncertainty exists within Af-
ghanistan regarding the level of future United States 
military support; and 
(11) in order to reduce this uncertainty, and to 
promote further stability and security in Afghanistan, 
the President should— 
(A) fully consider the International Secu-
rity Assistance Force Commander’s assessment 
regarding the need for the United States to 
maintain a ‘‘significant combat presence through 
2013’’; 
(B) maintain a force of at least 68,000 
troops through December 31, 2014, unless fewer 
forces can achieve United States objectives; 
(C) maintain a credible troop presence after 
December 31, 2014, sufficient to conduct counter- 
terrorism and train and advise the Afghan Na-
tional Security Forces, consistent with the Stra-
tegic Partnership Agreement (signed on May 2, 
2012); and 
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(D) maintain sufficient funding for the Af-
ghan National Security Forces to accomplish the 
objectives described in paragraphs (3), (4), and 
(8). 
(b) NOTIFICATION.—The President shall notify the 
congressional defense committees of any decision to reduce 
the number of United States Armed Forces deployed in Af-
ghanistan below the number of such Armed Forces deployed 
in Afghanistan on— 
(1) December 31, 2012, 
(2) December 31, 2013, and 
(3) December 31, 2014, 
prior to any public announcement of any such decision to 
reduce the number of United States Armed Forces deployed 
in Afghanistan. 
(c) MATTERS TO INCLUDE IN NOTIFICATION.—As part 
of a notification required by subsection (b), the President 
shall— 
(1) provide an assessment of the relevant security 
risk metrics associated with the marginal reduction 
in force levels; and 
(2) provide a by-unit assessment of the oper-
ational capability of the Afghan National Security 
Forces to independently conduct the required oper-
ations to maintain security in Afghanistan. 
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SEC. 1217. EXTENSION AND MODIFICATION OF PAKISTAN 
COUNTERINSURGENCY FUND. 
(a) IN GENERAL.—Section 1224(h) of the National De-
fense Authorization Act for Fiscal Year 2010 (Public Law 
111–84; 123 Stat. 2521), as most recently amended by sec-
tion 1220 of the National Defense Authorization Act for Fis-
cal Year 2012 (Public Law 112–81; 125 Stat. 1633), is fur-
ther amended by striking ‘‘September 30, 2012’’ both places 
it appears and inserting ‘‘September 30, 2013’’. 
(b) LIMITATION ON FUNDS SUBJECT TO REPORT AND 
UPDATES.—Section 1220(b) of the National Defense Au-
thorization Act for Fiscal Year 2012 (Public Law 112–81; 
125 Stat. 1633) is amended— 
(1) in the heading of paragraph (1), by inserting 
‘‘FOR FISCAL YEAR 2012’’ after ‘‘FUNDS’’; 
(2) by redesignating paragraphs (2), (3), and (4) 
as paragraphs (3), (4), and (5), respectively; 
(3) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) LIMITATION ON FUNDS FOR FISCAL YEAR 
2013; REPORT
REQUIRED.—Of the amounts appro-
priated or transferred to the Fund for fiscal year 
2013, not more than 10 percent of such amounts may 
be obligated or expended until such time as the Sec-
retary of Defense, with the concurrence of the Sec-
retary of State, submits to the appropriate congres-
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sional committees an update of the report required 
under paragraph (1).’’; 
(4) in paragraph (3) (as redesignated)— 
(A) by inserting ‘‘after fiscal year 2013’’ 
after ‘‘any fiscal year’’; 
(B) by striking ‘‘requested to be’’; and 
(C) by striking ‘‘at the same time that the 
President’s budget is submitted pursuant to sec-
tion 1105(a) of title 31, United States Code’’ and 
inserting ‘‘not later than 45 days before amounts 
in the Fund are made available to the Secretary 
of Defense’’; and 
(5) in paragraph (4) (as redesignated), by strik-
ing ‘‘the update required under paragraph (2)’’ and 
inserting ‘‘the updates required under paragraphs (2) 
and (3)’’. 
Subtitle C—Matters Relating to 
Iran 
SEC. 1221. DECLARATION OF POLICY. 
(a) FINDINGS.—Congress makes the following findings: 
(1) Iran, which has long sought to foment insta-
bility and promote extremism in the Middle East, is 
now seeking to exploit the dramatic political transi-
tion underway in the region to undermine govern-
ments traditionally aligned with the United States 
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and support extremist political movements in these 
countries. 
(2) At the same time, Iran may soon attain a 
nuclear weapons capability, a development that 
would threaten United States interests, destabilize the 
region, encourage regional nuclear proliferation, fur-
ther empower and embolden Iran, the world’s leading 
state sponsor of terrorism, and provide it the tools to 
threaten its neighbors, including Israel. 
(3) With the assistance of Iran over the past sev-
eral years, Syria, Hezbollah, and Hamas have in-
creased their stockpiles of rockets, with more than 
60,000 rockets now ready to be fired at Israel. Iran 
continues to add to its arsenal of ballistic missiles 
and cruise missiles, which threaten Iran’s neighbors, 
Israel, and United States Armed Forces in the region. 
(4) Preventing Iran from acquiring a nuclear 
weapon is among the most urgent national security 
challenges facing the United States. 
(5) Successive United States administrations 
have stated that an Iran armed with a nuclear weap-
on is unacceptable. 
(6) President Obama stated on January 24, 
2012, ‘‘Let there be no doubt: America is determined 
to prevent Iran from getting a nuclear weapon, and 
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I will take no options off the table to achieve that 
goal.’’. 
(7) In order to prevent Iran from developing nu-
clear weapons, the United States, in cooperation with 
its allies, must utilize all elements of national power 
including diplomacy, robust economic sanctions, and 
credible, visible preparations for a military option. 
(8) Nevertheless, to date, diplomatic overtures, 
sanctions, and other non-kinetic actions toward Iran 
have not caused the Government of Iran to abandon 
its nuclear weapons program. 
(9) With the impact of additional sanctions un-
certain, additional pressure on the Government of 
Iran could come from the credible threat of military 
action against Iran’s nuclear program. 
(b) DECLARATION OF POLICY.—It shall be the policy 
of the United States to take all necessary measures, includ-
ing military action if required, to prevent Iran from threat-
ening the United States, its allies, or Iran’s neighbors with 
a nuclear weapon. 
SEC. 1222. UNITED STATES MILITARY PREPAREDNESS IN 
THE MIDDLE EAST. 
(a) SENSE OF CONGRESS.—It is the sense of Congress 
that— 
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(1) military exercises conducted in the Persian 
Gulf and Gulf of Oman emphasize the United States 
resolve and the policy of the United States described 
in section 1221(b) by enhancing the readiness of the 
United States military and allied forces, as well as 
signaling to the Government of Iran the commitment 
of the United States to defend its vital national secu-
rity interests; and 
(2) the President, as Commander in Chief, 
should augment the presence of the United States 
Fifth Fleet in the Middle East and to conduct mili-
tary deployments, exercises, or other visible, concrete 
military readiness activities to underscore the policy 
of the United States described in section 1221(b). 
(b) PLAN.— 
(1) IN GENERAL.—The Secretary of Defense shall 
prepare a plan to augment the presence of the United 
States Fifth Fleet in the Middle East and to conduct 
military deployments, exercises, or other visible, con-
crete military readiness activities to underscore the 
policy of the United States described in section 
1221(b). 
(2) MATTERS TO BE INCLUDED.—The plan re-
quired under paragraph (1) shall include, at a min-
imum, steps necessary for the Armed Forces to sup-
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port the policy of the United States described in sec-
tion 1221(b), including— 
(A) pre-positioning sufficient supplies of 
aircraft, munitions, fuel, and other materials for 
both air- and sea-based missions at key forward 
locations in the Middle East and Indian Ocean; 
(B) maintaining sufficient naval assets in 
the region necessary to signal United States re-
solve and to bolster United States capabilities to 
launch a sustained sea and air campaign 
against a range of Iranian nuclear and military 
targets, to protect seaborne shipping, and to 
deny Iranian retaliation against United States 
interests in the region; 
(C) discussing the viability of deploying at 
least two United States aircraft carriers, an ad-
ditional large deck amphibious ship, and a Mine 
Countermeasures Squadron in the region on a 
continual basis, in support of the actions de-
scribed in subparagraph (B); and 
(D) conducting naval fleet exercises similar 
to the United States Fifth Fleet’s major exercise 
in the region in March 2007 to demonstrate abil-
ity to keep the Strait of Hormuz open and to 
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counter the use of anti-ship missiles and swarm-
ing high-speed boats. 
(3) SUBMISSION TO CONGRESS.—The plan re-
quired under paragraph (1) shall be submitted to the 
congressional defense committees not later than 120 
days after the date of enactment of this Act. 
SEC. 1223. ANNUAL REPORT ON MILITARY POWER OF IRAN. 
(a) IN GENERAL.—Section 1245 of the National De-
fense Authorization Act for Fiscal Year 2010 (Public Law 
111–84; 123 Stat. 2542) is amended— 
(1) by redesignating subsections (c) and (d) as 
subsections (d) and (e), respectively; and 
(2) by inserting after subsection (b) the fol-
lowing: 
‘‘(c) COMBATANT COMMANDER ASSESSMENT.—The re-
port required under subsection (a) shall include an annex, 
in classified or unclassified form, that includes an identi-
fication and assessment of the Commander of the United 
States Central Command on the following: 
‘‘(1) Any critical gaps in intelligence that limit 
the ability of the Commander to counter threats ema-
nating from Iran. 
‘‘(2) Any gaps in the capabilities, capacity, and 
authorities of the Commander to counter Iranian 
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threats to United States Armed Forces and United 
States interests in the region. 
‘‘(3) Any gaps in the capabilities and capacity 
of the Commander to take military action against 
Iran to prevent Iran from developing a nuclear weap-
on. 
‘‘(4) Any other matters the Commander considers 
to be relevant.’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) take effect on the date of the enactment of this 
Act and apply with respect to each report required to be 
submitted under section 1245 of the National Defense Au-
thorization Act for Fiscal Year 2010 on or after such date 
of enactment. 
Subtitle D—Reports and Other 
Matters 
SEC. 1231. ANNUAL REPORT ON MILITARY AND SECURITY 
DEVELOPMENTS INVOLVING THE PEOPLE’S 
REPUBLIC OF CHINA. 
(a) IN GENERAL.—Subsection (b) of section 1202 of 
the National Defense Authorization Act for Fiscal Year 
2000 (Public Law 106–65; 113 Stat. 781; 10 U.S.C. 113 
note), as most recently amended by section 1238 of the Na-
tional Defense Authorization Act for Fiscal Year 2012 (Pub-
lic Law 112–81; 125 Stat. 1642), is further amended— 
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(1) by redesignating paragraphs (10), (11), and 
(12) as paragraphs (12), (13), and (14), respectively; 
and 
(2) by inserting after paragraph (9) the fol-
lowing: 
‘‘(10) The strategy, goals, and capabilities of 
Chinese space programs, including trends, global and 
regional activities, the involvement of military and 
civilian organizations, including state-owned enter-
prises, academic institutions, and commercial enti-
ties, and efforts to develop, acquire, or gain access to 
advanced technologies that would enhance Chinese 
military capabilities. 
‘‘(11) The strategy, goals, and capabilities of 
Chinese cyber activities, including trends, global and 
regional activities, the involvement of military and 
civilian organizations, including state-owned enter-
prises, academic institutions, and commercial enti-
ties. Relevant analyses and forecasts shall consider— 
‘‘(A) 
Chinese 
cyber 
activities 
directed 
against the Department of Defense; 
‘‘(B) potential harms that may affect De-
partment of Defense communications, computers, 
networks, systems, or other military assets as a 
result of a cyber attack; and 
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‘‘(C) any other developments regarding Chi-
nese cyber activities that the Secretary of Defense 
determines are relevant to the national security 
of the United States.’’. 
(b) COMBATANT
COMMANDER
ASSESSMENT.—Such 
section is further amended— 
(1) by redesignating subsections (c) and (d) as 
subsections (d) and (e), respectively; and 
(2) by inserting after subsection (b) the fol-
lowing: 
‘‘(c) COMBATANT COMMANDER ASSESSMENT.—The re-
port required under subsection (a) shall include an annex, 
in classified or unclassified form, that includes an identi-
fication and assessment of the Commander of the United 
States Pacific Command on the following: 
‘‘(1) Any gaps in intelligence that limit the abil-
ity of the Commander to address challenges posed by 
the People’s Republic of China. 
‘‘(2) Any gaps in the capabilities, capacity, and 
authorities of the Commander to address challenges 
posed by the People’s Republic of China to United 
States Armed Forces and United States interests in 
the region. 
‘‘(3) Any other matters the Commander considers 
to be relevant.’’. 
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(c) EFFECTIVE DATE.—The amendments made by sub-
sections (a) and (b) take effect on the date of the enactment 
of this Act and apply with respect to each report required 
to be submitted under section 1202 of the National Defense 
Authorization Act for Fiscal Year 2000 on or after such 
date of enactment. 
SEC. 1232. REPORT ON MILITARY AND SECURITY DEVELOP-
MENTS INVOLVING THE DEMOCRATIC PEO-
PLE’S REPUBLIC OF KOREA. 
(a) ADDITIONAL REPORT.—Subsection (a) of section 
1236 of the National Defense Authorization Act for Fiscal 
Year 2012 (Public Law 112–81; 125 Stat. 1641) is amended 
by inserting after ‘‘November 1, 2012,’’ the following: ‘‘and 
November 1, 2013,’’. 
(b) COMBATANT
COMMANDER
ASSESSMENT.—Such 
section is further amended— 
(1) by redesignating subsection (c) as subsection 
(d); and 
(2) by inserting after subsection (b) the fol-
lowing: 
‘‘(c) COMBATANT COMMANDER ASSESSMENT.—The re-
port required under subsection (a) shall include an annex, 
in classified or unclassified form, that includes an identi-
fication and assessment of the Commander of the United 
States Pacific Command on the following: 
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‘‘(1) Any gaps in intelligence that limit the abil-
ity of the Commander to counter threats emanating 
from North Korea. 
‘‘(2) Any gaps in the capabilities, capacity, and 
authorities of the Commander to counter North Ko-
rean threats to United States Armed Forces and 
United States interests in the region. 
‘‘(3) Any other matters the Commander considers 
to be relevant.’’. 
SEC. 1233. REPORT ON HOST NATION SUPPORT FOR OVER-
SEAS UNITED STATES MILITARY INSTALLA-
TIONS AND UNITED STATES ARMED FORCES 
DEPLOYED IN COUNTRY. 
(a) REPORT REQUIRED.— 
(1) IN GENERAL.—Not later than March 1 of 
each year from 2013 through 2015, the Secretary of 
Defense, in consultation with the Secretary of State, 
shall submit to the appropriate congressional commit-
tees a report on the direct, indirect, and burden-shar-
ing contributions made by host nations to support 
United States Armed Forces deployed in country. 
(2) ELEMENTS.—The report required by para-
graph (1) shall include at least the following: 
(A) The methodology and accounting proce-
dures used to measure and track direct, indirect, 
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and burden-sharing contributions made by host 
nations. 
(B) The stationing costs, paid by the host 
nation, associated with United States Armed 
Forces stationed outside the territory of the 
United States in that nation. 
(C) A description of direct, indirect, and 
burden-sharing contributions by host nation, in-
cluding the following: 
(i) Contributions accepted for the fol-
lowing costs: 
(I) Compensation for local na-
tional employees of the Department of 
Defense. 
(II) Military construction projects 
of the Department of Defense, includ-
ing design, procurement, construction 
management costs, rents on privately- 
owned land, facilities, labor, utilities 
and vicinity improvements. 
(III) Other costs such as loan 
guarantees on public-private venture 
housing and payment-in-kind for fa-
cilities returned to the host nation. 
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(ii) Contributions accepted for any 
other purpose. 
(b) FORM.—The report required by subsection (a) shall 
be submitted in unclassified form, but may include a classi-
fied annex if necessary. 
(c) DEFINITIONS.—In this section: 
(1) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means— 
(A) the congressional defense committees; 
and 
(B) the Committee on Foreign Relations of 
the Senate and the Committee on Foreign Affairs 
of the House of Representatives. 
(2) HOST
NATION.—The term ‘‘host nation’’ 
means any country that hosts a permanent or tem-
porary United States military installation or a per-
manent or rotational deployment of United State 
Armed Forces located outside of the borders of the 
United States. 
(3) CONTRIBUTIONS.—The term ‘‘contributions’’ 
means cash and in-kind contributions made by a host 
nation that replace expenditures that would otherwise 
be made by the Secretary of Defense using funds ap-
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propriated or otherwise made available in defense ap-
propriations Acts. 
SEC. 1234. NATO SPECIAL OPERATIONS HEADQUARTERS. 
(a) IN GENERAL.—Section 1244(a) of the National De-
fense Authorization Act for Fiscal Year 2010 (Public Law 
111–84; 123 Stat. 2541), as amended by section 1242 of 
the Ike Skelton National Defense Authorization Act for Fis-
cal Year 2011 (Public Law 111–383; 124 Stat. 4405), is 
further amended by striking ‘‘fiscal year 2011’’ and insert-
ing ‘‘fiscal year 2013’’. 
(b) LIMITATION.—Of the funds authorized to be appro-
priated by this Act or otherwise made available for fiscal 
year 2013 for the NATO Special Operations Headquarters, 
not more than 50 percent may be obligated or expended 
until the date that is 30 days after the date on which the 
Secretary of Defense finalizes and formalizes U.S. Special 
Operations Command as the executive agent and lead com-
ponent for the NATO Special Operations Headquarters. 
SEC. 1235. REPORTS ON EXPORTS OF MISSILE DEFENSE 
TECHNOLOGY TO CERTAIN COUNTRIES. 
(a) REPORTS.—Not later than 180 days after the date 
of the enactment of this Act, and each year thereafter 
through 2015, the Secretary of Defense shall submit to the 
appropriate congressional committees a report on the fol-
lowing: 
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(1) A description of the types of assistance, in-
cluding assistance relating to missile defense, pro-
vided by the Department of Defense to foreign coun-
tries that export space, counter-space, and ballistic 
missile equipment, material, and technologies that 
could be used in other countries’ space, counter-space, 
and ballistic missile programs. 
(2) A description of such exports to countries 
with space, counter-space, and ballistic missile pro-
grams, including a description of specific technologies 
that are exported to such countries. 
(b) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means— 
(1) the congressional defense committees; and 
(2) the Committee of Foreign Relations of the 
Senate and the Committee on Foreign Affairs of the 
House of Representatives. 
SEC. 1236. LIMITATION ON FUNDS TO PROVIDE THE RUS-
SIAN FEDERATION WITH ACCESS TO MISSILE 
DEFENSE TECHNOLOGY. 
(a) LIMITATION ON FUNDS FOR CLASSIFIED TECH-
NOLOGY AND DATA.— 
(1) IN GENERAL.—None of the funds made avail-
able for fiscal years 2012 or 2013 for the Department 
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of Defense may be used to provide the Russian Fed-
eration with access to information that is classified or 
was classified as of January 2, 2012, regarding— 
(A) missile defense technology of the United 
States, including hit-to-kill technology; or 
(B) data, including sensitive technical data, 
warning, detection, tracking, targeting, telem-
etry, command and control, and battle manage-
ment data, that support the missile defense capa-
bilities of the United States. 
(2) APPLICABILITY.—The limitation in para-
graph (1) shall apply with respect to the use of funds 
on or after the date of the enactment of this Act. 
(b) LIMITATION ON FUNDS FOR OTHER TECHNOLOGY 
AND DATA.— 
(1) IN GENERAL.—None of the funds made avail-
able for fiscal years 2012 or 2013 for the Department 
of Defense may be used to provide the Russian Fed-
eration with access to missile defense technology or 
technical data not described in subsection (a) un-
less— 
(A) the President submits to the appro-
priate congressional committees— 
(i) a report that contains a description 
of— 
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(I) the specific missile defense 
technology or technical data to be pro-
vided to the Russian Federation, the 
reasons for providing such technology 
or data, and how the technology or 
technical data is intended to be used; 
(II) the measures necessary to 
protect the technology or technical 
data; 
(III) the specific missile defense 
technology or technical data of the 
Russian Federation that the Russian 
Federation is providing the United 
States with access to; and 
(IV) the status and substance of 
discussions between the United States 
and the Russian Federation on missile 
defense matters; and 
(ii) written certification by the Presi-
dent that providing the Russian Federation 
with access to such missile defense tech-
nology or technical data— 
(I) includes an agreement on pro-
hibiting access to such technology or 
data by any other country or entity; 
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(II) will not enable the develop-
ment of countermeasures to any missile 
defense system of the United States or 
otherwise undermine the effectiveness of 
any such missile defense system; and 
(III) will correspond to equitable 
access by the United States to missile 
defense technology or technical data of 
the Russian Federation; and 
(B) a period of 30 days has elapsed fol-
lowing the date on which the President submits 
to the appropriate congressional committees the 
report and written certification under subpara-
graph (A). 
(2) APPLICABILITY.—The limitation in para-
graph (1) shall apply with respect to the use of funds 
on or after the date of the enactment of this Act. 
(c) FORM.—The report described in clause (i) of sub-
section (b)(1)(A) and the certification described in clause 
(ii) of such subsection shall be submitted in unclassified 
form, but may contain a classified annex, if necessary. 
(d) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means— 
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(1) the Committee on Armed Services and the 
Committee on Foreign Relations of the Senate; and 
(2) the Committee on Armed Services and the 
Committee on Foreign Affairs of the House of Rep-
resentatives. 
SEC. 1237. INTERNATIONAL AGREEMENTS RELATING TO 
MISSILE DEFENSE. 
(a) SENSE OF CONGRESS.—It is the sense of Congress 
that an agreement regarding missile defense cooperation be-
tween the United States and the Russian Federation that 
is negotiated with the Russian Federation through the 
North Atlantic Treaty Organization (‘‘NATO’’) or a provi-
sion to amend the charter of the NATO–Russia Council, 
should not be considered legally or politically binding un-
less the agreement is— 
(1) specifically approved with the advice and 
consent of the Senate pursuant to article II, section 
2, clause 2 of the Constitution; or 
(2) specifically authorized by an Act of Congress. 
(b) MISSILE DEFENSE AGREEMENTS.— 
(1) IN GENERAL.—Chapter 3 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
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‘‘§ 130f. International agreements relating to missile 
defense 
‘‘(a) IN GENERAL.—In accordance with the under-
standing under subsection (b)(1)(B) of the Resolution of Ad-
vice and Consent to Ratification of the New START Treaty 
of the Senate, any agreement with a country or inter-
national organization or amendment to the New START 
Treaty (including an agreement made by the Bilateral Con-
sultative Commission established by the New START Trea-
ty) concerning the limitation of the missile defense capabili-
ties of the United States shall not be binding on the United 
States, and shall not enter into force with respect to the 
United States, unless after the date of the enactment of this 
section, such agreement or amendment is— 
‘‘(1) specifically approved with the advice and 
consent of the Senate pursuant to article II, section 
2, clause 2 of the Constitution; or 
‘‘(2) specifically authorized by an Act of Con-
gress. 
‘‘(b) ANNUAL NOTIFICATION.—Not later than January 
31 of each year, beginning in 2013, the President shall sub-
mit to the congressional defense committees and the Com-
mittee on Foreign Relations of the Senate and the Com-
mittee on Foreign Affairs of the House of Representatives 
a notification of— 
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‘‘(1) whether the Russian Federation has recog-
nized during the previous year the sovereign right of 
the United States to pursue quantitative and quali-
tative improvements in missile defense capabilities; 
and 
‘‘(2) whether during any treaty negotiations or 
other Government-to-Government contacts between the 
United States and the Russian Federation (including 
under the auspices of the Bilateral Consultative Com-
mission established by the New START Treaty) dur-
ing the previous year a representative of the Russian 
Federation suggested that a treaty or other inter-
national agreement include, with respect to the 
United States— 
‘‘(A) restricting missile defense capabilities, 
military capabilities in space, or conventional 
prompt global strike capabilities; or 
‘‘(B) reducing the number of non-strategic 
nuclear weapons deployed in Europe. 
‘‘(c) NEW START TREATY DEFINED.—In this section, 
the term ‘New START Treaty’ means the Treaty between 
the United States of America and the Russian Federation 
on Measures for the Further Reduction and Limitation of 
Strategic Offensive Arms, signed on April 8, 2010, and en-
tered into force on February 5, 2011.’’. 
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(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended by 
inserting after the item relating to section 130e the 
following new item: 
‘‘130f. International agreements relating to missile defense.’’. 
(c) DEFENSE TECHNOLOGY COOPERATION AGREE-
MENTS.— 
(1) IN GENERAL.—Subchapter II of chapter 138 
of title 10, United States Code, is amended by adding 
at the end the following new section: 
‘‘§ 2350n. Defense technology cooperation agreements 
between the United States and the Rus-
sian Federation 
‘‘(a) IN GENERAL.—None of the funds made available 
for fiscal year 2012 or any fiscal year thereafter for the 
Department of Defense may be used to implement a defense 
technology cooperation agreement entered into between the 
United States and the Russian Federation until a period 
of 60 days has elapsed following the date on which the 
President transmits such agreement to the congressional de-
fense committees. 
‘‘(b) DEFENSE TECHNOLOGY COOPERATION AGREE-
MENT DEFINED.—In this section, the term ‘defense tech-
nology cooperation agreement’ means a cooperative agree-
ment related to research and development entered into 
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under section 2358 of this title or any other provision of 
this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such subchapter is amended 
by inserting after the item relating to section 2350m 
the following new item: 
‘‘2350n. Defense technology cooperation agreement between the United States and 
the Russian Federation.’’. 
(d) LIMITATION
ON MISSILE DEFENSE NEGOTIA-
TION.— 
(1) IN GENERAL.—None of the funds made avail-
able for fiscal years 2012 or 2013 for the Department 
of Defense may be used to implement an agreement 
regarding missile defense entered into with the Rus-
sian Federation until the date that is 30 days after 
the date on which the President transmits to the ap-
propriate congressional committees the draft agree-
ment discussed between the United States and the 
Russian Federation at Deauville, France, in May 
2011. 
(2) APPLICABILITY.—The limitation in para-
graph (1) shall apply with respect to the use of funds 
on or after the date of the enactment of this Act. 
(3) APPROPRIATE CONGRESSIONAL COMMITTEES 
DEFINED.—In this subsection, the term ‘‘appropriate 
congressional committees’’ means— 
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(A) the Committee on Armed Services and 
the Committee on Foreign Relations of the Sen-
ate; and 
(B) the Committee on Armed Services and 
the Committee on Foreign Affairs of the House 
of Representatives. 
TITLE XIII—COOPERATIVE 
THREAT REDUCTION 
SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT RE-
DUCTION PROGRAMS AND FUNDS. 
(a) SPECIFICATION OF COOPERATIVE THREAT REDUC-
TION PROGRAMS.—For purposes of section 301 and other 
provisions of this Act, Cooperative Threat Reduction pro-
grams are the programs specified in section 1501 of the Na-
tional Defense Authorization Act for Fiscal Year 1997 (50 
U.S.C. 2362 note). 
(b) FISCAL YEAR 2013 COOPERATIVE THREAT REDUC-
TION FUNDS DEFINED.—As used in this title, the term ‘‘fis-
cal year 2013 Cooperative Threat Reduction funds’’ means 
the funds appropriated pursuant to the authorization of ap-
propriations in section 301 and made available by the 
funding table in section 4301 for Cooperative Threat Reduc-
tion programs. 
(c) AVAILABILITY
OF FUNDS.—Funds appropriated 
pursuant to the authorization of appropriations in section 
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301 and made available by the funding table in section 
4301 for Cooperative Threat Reduction programs shall be 
available for obligation for fiscal years 2013, 2014, and 
2015. 
SEC. 1302. FUNDING ALLOCATIONS. 
(a) FUNDING
FOR
SPECIFIC
PURPOSES.—Of the 
$519,111,000 authorized to be appropriated to the Depart-
ment of Defense for fiscal year 2013 in section 301 and 
made available by the funding table in section 4301 for Co-
operative Threat Reduction programs, the following 
amounts may be obligated for the purposes specified: 
(1) For strategic offensive arms elimination, 
$68,271,000. 
(2) 
For 
chemical 
weapons 
destruction, 
$14,630,000. 
(3) For global nuclear security, $99,789,000. 
(4) 
For 
cooperative 
biological 
engagement, 
$276,399,000. 
(5) For proliferation prevention, $32,402,000. 
(6) For threat reduction engagement, $2,375,000. 
(7) For activities designated as Other Assess-
ments/Administrative Costs, $25,245,000. 
(b) REPORT ON OBLIGATION OR EXPENDITURE OF 
FUNDS FOR OTHER PURPOSES.—No fiscal year 2013 Coop-
erative Threat Reduction funds may be obligated or ex-
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572 
pended for a purpose other than a purpose listed in para-
graphs (1) through (7) of subsection (a) until 15 days after 
the date that the Secretary of Defense submits to Congress 
a report on the purpose for which the funds will be obligated 
or expended and the amount of funds to be obligated or ex-
pended. Nothing in the preceding sentence shall be construed 
as authorizing the obligation or expenditure of fiscal year 
2013 Cooperative Threat Reduction funds for a purpose for 
which the obligation or expenditure of such funds is specifi-
cally prohibited under this title or any other provision of 
law. 
(c) LIMITED
AUTHORITY
TO
VARY
INDIVIDUAL 
AMOUNTS.— 
(1) IN GENERAL.—Subject to paragraph (2), in 
any case in which the Secretary of Defense determines 
that it is necessary to do so in the national interest, 
the Secretary may obligate amounts appropriated for 
fiscal year 2013 for a purpose listed in paragraphs 
(1) through (7) of subsection (a) in excess of the spe-
cific amount authorized for that purpose. 
(2) NOTICE-AND-WAIT REQUIRED.—An obligation 
of funds for a purpose stated in paragraphs (1) 
through (7) of subsection (a) in excess of the specific 
amount authorized for such purpose may be made 
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573 
using the authority provided in paragraph (1) only 
after— 
(A) the Secretary submits to Congress noti-
fication of the intent to do so together with a 
complete discussion of the justification for doing 
so; and 
(B) 15 days have elapsed following the date 
of the notification. 
TITLE XIV—OTHER 
AUTHORIZATIONS 
Subtitle A—Military Programs 
SEC. 1401. WORKING CAPITAL FUNDS. 
Funds are hereby authorized to be appropriated for fis-
cal year 2013 for the use of the Armed Forces and other 
activities and agencies of the Department of Defense for 
providing capital for working capital and revolving funds, 
as specified in the funding table in section 4501. 
SEC. 1402. NATIONAL DEFENSE SEALIFT FUND. 
Funds are hereby authorized to be appropriated for the 
fiscal year 2013 for the National Defense Sealift Fund, as 
specified in the funding table in section 4501. 
SEC. 1403. CHEMICAL AGENTS AND MUNITIONS DESTRUC-
TION, DEFENSE. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Funds are 
hereby authorized to be appropriated for the Department 
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574 
of Defense for fiscal year 2013 for expenses, not otherwise 
provided for, for Chemical Agents and Munitions Destruc-
tion, Defense, as specified in the funding table in section 
4501. 
(b) USE.—Amounts authorized to be appropriated 
under subsection (a) are authorized for— 
(1) the destruction of lethal chemical agents and 
munitions in accordance with section 1412 of the De-
partment of Defense Authorization Act, 1986 (50 
U.S.C. 1521); and 
(2) the destruction of chemical warfare materiel 
of the United States that is not covered by section 
1412 of such Act. 
SEC. 1404. DRUG INTERDICTION AND COUNTER-DRUG AC-
TIVITIES, DEFENSE-WIDE. 
Funds are hereby authorized to be appropriated for the 
Department of Defense for fiscal year 2013 for expenses, not 
otherwise provided for, for Drug Interdiction and Counter- 
Drug Activities, Defense-wide, as specified in the funding 
table in section 4501. 
SEC. 1405. DEFENSE INSPECTOR GENERAL. 
Funds are hereby authorized to be appropriated for the 
Department of Defense for fiscal year 2013 for expenses, not 
otherwise provided for, for the Office of the Inspector Gen-
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eral of the Department of Defense, as specified in the fund-
ing table in section 4501. 
SEC. 1406. DEFENSE HEALTH PROGRAM. 
Funds are hereby authorized to be appropriated for fis-
cal year 2013 for the Defense Health Program, as specified 
in the funding table in section 4501, for use of the Armed 
Forces and other activities and agencies of the Department 
of Defense in providing for the health of eligible bene-
ficiaries. 
SEC. 1407. CEMETERIAL EXPENSES. 
Funds are hereby authorized to be appropriated for the 
Department of the Army for fiscal year 2013 for cemeterial 
expenses, not otherwise provided for, as specified in the 
funding table in section 4501. 
Subtitle B—National Defense 
Stockpile 
SEC. 1411. AUTHORIZED USES OF NATIONAL DEFENSE 
STOCKPILE FUNDS. 
(a) OBLIGATION OF STOCKPILE FUNDS.—During fis-
cal year 2013, the National Defense Stockpile Manager may 
obligate up to $44,899,227 of the funds in the National De-
fense Stockpile Transaction Fund established under sub-
section (a) of section 9 of the Strategic and Critical Mate-
rials Stock Piling Act (50 U.S.C. 98h) for the authorized 
uses of such funds under subsection (b)(2) of such section, 
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576 
including the disposal of hazardous materials that are envi-
ronmentally sensitive. 
(b) ADDITIONAL OBLIGATIONS.—The National Defense 
Stockpile Manager may obligate amounts in excess of the 
amount specified in subsection (a) if the National Defense 
Stockpile Manager notifies Congress that extraordinary or 
emergency conditions necessitate the additional obligations. 
The National Defense Stockpile Manager may make the ad-
ditional obligations described in the notification after the 
end of the 45-day period beginning on the date on which 
Congress receives the notification. 
(c) LIMITATIONS.—The authorities provided by this 
section shall be subject to such limitations as may be pro-
vided in appropriations Acts. 
SEC. 1412. ADDITIONAL SECURITY OF STRATEGIC MATE-
RIALS SUPPLY CHAINS. 
Section 2(b) of the Strategic and Critical Materials 
Stock Piling Act (50 U.S.C. 98a) is amended by inserting 
‘‘or a single point of failure’’ after ‘‘foreign sources’’. 
Subtitle C—Other Matters 
SEC. 1421. REDUCTION OF UNOBLIGATED BALANCES WITH-
IN THE PENTAGON RESERVATION MAINTE-
NANCE REVOLVING FUND. 
Not later than 60 days after the date of the enactment 
of this Act, the Secretary of Defense shall transfer 
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577 
$26,000,000 from the unobligated balances of the Pentagon 
Reservation Maintenance Revolving Fund established under 
section 2674(e) of title 10, United States Code, to the Mis-
cellaneous Receipts Fund of the United States Treasury. 
SEC. 1422. AUTHORITY FOR TRANSFER OF FUNDS TO JOINT 
DEPARTMENT OF DEFENSE-DEPARTMENT OF 
VETERANS AFFAIRS MEDICAL FACILITY DEM-
ONSTRATION FUND FOR CAPTAIN JAMES A. 
LOVELL HEALTH CARE CENTER, ILLINOIS. 
(a) AUTHORITY FOR TRANSFER OF FUNDS.—Of the 
funds authorized to be appropriated for section 1406 and 
available for the Defense Health Program for operation and 
maintenance, $139,204,000 may be transferred by the Sec-
retary of Defense to the Joint Department of Defense–De-
partment of Veterans Affairs Medical Facility Demonstra-
tion Fund established by subsection (a)(1) of section 1704 
of the National Defense Authorization Act for Fiscal Year 
2010 (Public Law 111-84; 123 Stat. 2571). For purposes 
of subsection (a)(2) of such section 1704, any funds so 
transferred shall be treated as amounts authorized and ap-
propriated specifically for the purpose of such a transfer. 
(b) USE OF TRANSFERRED FUNDS.—For the purposes 
of subsection (b) of such section 1704, facility operations 
for which funds transferred under subsection (a) may be 
used are operations of the Captain James A. Lovell Federal 
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578 
Health Care Center, consisting of the North Chicago Vet-
erans Affairs Medical Center, the Navy Ambulatory Care 
Center, and supporting facilities designated as a combined 
Federal medical facility under an operational agreement 
covered by section 706 of the Duncan Hunter National De-
fense Authorization Act for Fiscal Year 2009 (Public Law 
110–417; 122 Stat. 4500). 
SEC. 1423. AUTHORIZATION OF APPROPRIATIONS FOR 
ARMED FORCES RETIREMENT HOME. 
There is hereby authorized to be appropriated for fiscal 
year 2013 from the Armed Forces Retirement Home Trust 
Fund the sum of $67,590,000 for the operation of the Armed 
Forces Retirement Home. 
TITLE XV—AUTHORIZATION OF 
ADDITIONAL 
APPROPRIA-
TIONS FOR OVERSEAS CON-
TINGENCY OPERATIONS 
Subtitle A—Authorization of 
Additional Appropriations 
SEC. 1501. PURPOSE. 
The purpose of this subtitle is to authorize appropria-
tions for the Department of Defense for fiscal year 2013 
to provide additional funds for overseas contingency oper-
ations being carried out by the Armed Forces. 
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SEC. 1502. PROCUREMENT. 
Funds are hereby authorized to be appropriated for fis-
cal year 2013 for procurement accounts for the Army, the 
Navy and the Marine Corps, the Air Force, and Defense- 
wide activities, as specified in the funding table in section 
4102. 
SEC. 1503. RESEARCH, DEVELOPMENT, TEST, AND EVALUA-
TION. 
Funds are hereby authorized to be appropriated for fis-
cal year 2013 for the use of the Department of Defense for 
research, development, test, and evaluation, as specified in 
the funding table in section 4202. 
SEC. 1504. OPERATION AND MAINTENANCE. 
Funds are hereby authorized to be appropriated for fis-
cal year 2013 for the use of the Armed Forces and other 
activities and agencies of the Department of Defense for ex-
penses, not otherwise provided for, for operation and main-
tenance, as specified in the funding table in section 4302. 
SEC. 1505. MILITARY PERSONNEL. 
Funds are hereby authorized to be appropriated for fis-
cal year 2013 for the use of the Armed Forces and other 
activities and agencies of the Department of Defense for ex-
penses, not otherwise provided for, for military personnel, 
as specified in the funding table in section 4402. 
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SEC. 1506. WORKING CAPITAL FUNDS. 
Funds are hereby authorized to be appropriated for fis-
cal year 2013 for the use of the Armed Forces and other 
activities and agencies of the Department of Defense for 
providing capital for working capital and revolving funds, 
as specified in the funding table in section 4502. 
SEC. 1507. DEFENSE HEALTH PROGRAM. 
Funds are hereby authorized to be appropriated for the 
Department of Defense for fiscal year 2013 for expenses, not 
otherwise provided for, for the Defense Health Program, as 
specified in the funding table in section 4502. 
SEC. 1508. DRUG INTERDICTION AND COUNTER-DRUG AC-
TIVITIES, DEFENSE-WIDE. 
Funds are hereby authorized to be appropriated for the 
Department of Defense for fiscal year 2013 for expenses, not 
otherwise provided for, for Drug Interdiction and Counter- 
Drug Activities, Defense-wide, as specified in the funding 
table in section 4502. 
SEC. 1509. DEFENSE INSPECTOR GENERAL. 
Funds are hereby authorized to be appropriated for the 
Department of Defense for fiscal year 2013 for expenses, not 
otherwise provided for, for the Office of the Inspector Gen-
eral of the Department of Defense, as specified in the fund-
ing table in section 4502. 
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Subtitle B—Financial Matters 
SEC. 1521. TREATMENT AS ADDITIONAL AUTHORIZATIONS. 
The amounts authorized to be appropriated by this 
title are in addition to amounts otherwise authorized to be 
appropriated by this Act. 
SEC. 1522. SPECIAL 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 title for fiscal year 2013 
between any such authorizations for that fiscal year 
(or any subdivisions thereof). Amounts of authoriza-
tions so transferred shall be merged with and be 
available for the same purposes as the authorization 
to which transferred. 
(2) LIMITATION.—The total amount of author-
izations that the Secretary may transfer under the 
authority 
of 
this 
subsection 
may 
not 
exceed 
$3,000,000,000. 
(b) TERMS AND CONDITIONS.—Transfers under this 
section shall be subject to the same terms and conditions 
as transfers under section 1001. 
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(c) ADDITIONAL AUTHORITY.—The transfer authority 
provided by this section is in addition to the transfer au-
thority provided under section 1001. 
Subtitle C—Limitations and Other 
Matters 
SEC. 1531. JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT 
FUND. 
(a) USE AND TRANSFER OF FUNDS.—Subsections (b) 
and (c) of section 1514 of the John Warner National De-
fense Authorization Act for Fiscal Year 2007 (Public Law 
109–364; 120 Stat. 2439), as in effect before the amend-
ments made by section 1503 of the Duncan Hunter Na-
tional Defense Authorization Act for Fiscal Year 2009 (Pub-
lic Law 110–417; 122 Stat. 4649), shall apply to the funds 
made available to the Department of Defense for the Joint 
Improvised Explosive Device Defeat Fund for fiscal year 
2013. In providing prior notice to the congressional defense 
committees of the obligation of funds from the Joint Impro-
vised Explosive Device Defeat Fund for such fiscal year, 
as required by paragraph (4) of such subsection (c), the Sec-
retary of Defense shall include the market research or asso-
ciated analysis of alternatives conducted in the process of 
taking action to initiate any project for which the total obli-
gation of funds from the Fund will exceed $10,000,000. 
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(b) MONTHLY OBLIGATIONS AND EXPENDITURE RE-
PORTS.—Not later than 15 days after the end of each month 
of fiscal year 2013, the Secretary of Defense shall provide 
to the congressional defense committees a report on the 
Joint Improvised Explosive Device Defeat Fund explaining 
monthly commitments, obligations, and expenditures by 
line of action. 
SEC. 1532. ONE-YEAR EXTENSION OF PROJECT AUTHORITY 
AND 
RELATED 
REQUIREMENTS 
OF 
TASK 
FORCE FOR BUSINESS AND STABILITY OPER-
ATIONS IN AFGHANISTAN. 
(a) EXTENSION.—Subsection (a) of section 1535 of the 
Ike Skelton National Defense Authorization Act for Fiscal 
Year 2011 (Public Law 111–383; 124 Stat. 4426), as 
amended by section 1534 of the National Defense Authoriza-
tion Act for Fiscal Year 2012 (Public Law 112–81; 125 
Stat. 1658), is further amended— 
(1) in paragraph (6), by striking ‘‘October 31, 
2011, and October 31, 2012’’ and inserting ‘‘October 
31, 2011, October 31, 2012, and October 31, 2013’’; 
and 
(2) in paragraph (7), by striking ‘‘September 30, 
2012’’ and inserting ‘‘September 30, 2013’’. 
(b) SCOPE OF PROJECTS.—Paragraph (3) of such sub-
section, as so amended, is further amended— 
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(1) by striking ‘‘private investment, mining sec-
tor development, industrial development, and other 
projects’’ and inserting ‘‘mining and natural resource 
industry development’’; and 
(2) by striking ‘‘focus on improving the commer-
cial viability of’’ and inserting ‘‘complement’’. 
(c) FUNDING.—Paragraph (4) of such subsection, as 
so amended, is further amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(A) IN GENERAL.—The Secretary’’. 
(2) by striking ‘‘The amount’’ and all that fol-
lows through ‘‘appropriate congressional committees.’’ 
and inserting the following: 
‘‘(B) LIMITATION.—The amount of funds 
used under authority of subparagraph (A)— 
‘‘(i) may not exceed $150,000,000 for 
fiscal year 2012, except that not more than 
50 percent of such amount may be obligated 
until the plan required by subsection (b) is 
submitted to the appropriate congressional 
committees; and 
‘‘(ii) may not exceed $50,000,000 for 
fiscal year 2013, except that no such funds 
may be obligated until the Secretary notifies 
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the appropriate congressional committees 
that the activities of the Task Force for 
Business and Stability Operations in Af-
ghanistan will be transitioned to the De-
partment of State by September 30, 2013.’’; 
and 
(3) by striking ‘‘The funds’’ and inserting the 
following: 
‘‘(C) AVAILABILITY.—The funds’’. 
SEC. 1533. LIMITATIONS ON AVAILABILITY OF FUNDS IN AF-
GHANISTAN SECURITY FORCES FUND. 
(a) CONTINUATION
OF EXISTING LIMITATIONS
ON 
AVAILABILITY
OF
FUNDS
IN
AFGHANISTAN
SECURITY 
FORCES FUND.—Funds available to the Department of De-
fense for the Afghanistan Security Forces Fund for fiscal 
year 2013 shall be subject to the conditions contained in 
subsections (b) through (g) of section 1513 of the National 
Defense Authorization Act for Fiscal Year 2008 (Public 
Law 110–181; 122 Stat. 428), as amended by section 
1531(b) of the Ike Skelton National Defense Authorization 
Act for Fiscal Year 2011 (Public Law 111–383; 124 Stat. 
4424). 
(b) AFGHAN PUBLIC PROTECTION FORCE.— 
(1) LIMITATION.—None of the funds available to 
the Department of Defense for fiscal year 2013 for the 
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Afghanistan Security Forces Fund may be obligated 
or expended for the Afghan Public Protection Force 
(in this subsection referred to as the ‘‘APPF’’) until 
the Secretary of Defense certifies in writing to the 
congressional defense committees the following: 
(A) Each subcontract, task order, or deliv-
ery order entered into with the APPF under a 
contract of the Department of Defense, or any 
agreement between the United States and Af-
ghanistan for services of the APPF for the De-
partment of Defense, will include— 
(i) standard format, content, and li-
ability clauses to ensure consistent levels of 
security and dispute resolution mechanisms; 
(ii) a requirement for members of the 
APPF to adhere to the APPF Code of Con-
duct, including principles of conduct for 
such personnel, minimum vetting require-
ments, and management and oversight com-
mitments; 
(iii) authority for the prime contractor 
or, in the case of an agreement, the United 
States, to independently conduct biometric 
screening; 
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(iv) authority for the prime contractor 
or, in the case of an agreement, the United 
States— 
(I) to direct the APPF, at its own 
expense, to remove or replace any per-
sonnel performing on a subcontract or 
such agreement who fail to meet the 
APPF Code of Conduct or terms of 
such subcontract or agreement; and 
(II) to terminate the subcontract 
or such agreement, if the failure to 
comply is a gross violation or is re-
peated; and 
(v) authority for the Commander, 
International Security Assistance Force (or 
his designee)— 
(I) to provide an arming author-
ization for APPF personnel authorized 
to perform activities at a military in-
stallation or facility in Afghanistan at 
which members of the Armed Forces 
deployed to Afghanistan are garrisoned 
or housed; 
(II) to account for and keep ap-
propriate records of APPF personnel 
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authorized to perform activities at a 
military installation or facility in Af-
ghanistan at which members of the 
Armed Forces deployed to Afghanistan 
are garrisoned or housed, including on 
a database referred to as the Syn-
chronized Predeployment and Oper-
ational Tracker; and 
(III) to consult with the Minister 
of Interior of Afghanistan regarding 
rules on the use of force for APPF per-
sonnel. 
(B) The Minister of Interior of Afghanistan 
is committed to ensuring that sufficient numbers 
of APPF personnel are trained to match demand 
and attrition. 
(C) Sufficient clarity exists with regard to 
command and control of APPF personnel and 
the role of risk management consultants. 
(D) The program established pursuant to 
section 1225 of the National Defense Authoriza-
tion Act for Fiscal Year 2010 (Public Law 111– 
84; 22 U.S.C. 2785 note) is sufficient to— 
(i) account for the transfer of any con-
tractor-acquired, United States Govern-
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589 
ment-owned defense articles to the APPF; 
and 
(ii) conduct end-use monitoring, in-
cluding an inventory of the existence and 
completeness of any such defense articles; 
(E) Mechanisms are in place to ensure that 
there is no additional cost to the United States 
for— 
(i) a weapon used in the performance 
of APPF services under a subcontract of a 
contract of the Department of Defense, or 
through an agreement between the United 
States and Afghanistan, if such a weapon is 
a United States Government-owned weapon; 
and 
(ii) any assistance also provided 
through the Afghan Security Forces Fund 
for support to APPF. 
(F) The Minister of Interior of Afghanistan 
has established the elements required by subpara-
graphs (A) through (F) of section 862(a)(2) of 
the National Defense Authorization Act for Fis-
cal Year 2008 (Public Law 110–181). For pur-
poses of the preceding sentence, the terms ‘‘per-
sonnel performing private security functions in 
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an area of combat operations or other significant 
military operations’’, ‘‘contractor’’, and ‘‘con-
tractor personnel’’, as used in section 862 of such 
Act, mean members of the APPF. 
(G) The Secretary is confident the security 
provided to supply convoys, to Department of 
Defense construction projects, and to Armed 
Forces deployed to Afghanistan will not be de-
graded. 
(2) ADDITIONAL LIMITATION.—None of the funds 
available to the Department of Defense for fiscal year 
2013 for the Afghanistan Security Forces Fund may 
be obligated or expended for infrastructure improve-
ments at a APPF training center. 
(3) QUARTERLY REPORTS.— 
(A) ASSESSMENT REQUIRED.—Each fiscal 
year quarter during fiscal years 2013 and 2014, 
the Secretary of Defense shall conduct an assess-
ment of the APPF. 
(B) REPORTS.—Thirty days following the 
end of each quarter of fiscal years 2013 and 
2014, the Secretary shall submit a report to the 
congressional defense committees of each assess-
ment conducted under subparagraph (A). 
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591 
(C) MATTERS COVERED.—Each such report 
shall include— 
(i) a detailed assessment of the ability 
of the APPF to perform the essential tasks 
identified by the assessment team; 
(ii) an identification and evaluation of 
measures of effectiveness, 
(iii) a description of the size of the 
APPF and an assessment of the sufficiency 
of its recruiting and training; and 
(iv) a discussion of the issues the Sec-
retary considers significant, and any rec-
ommendations to address those issues or 
other recommendations to improve future 
performance of the APPF, as the Secretary 
considers appropriate. 
(D) FIRST REPORT.—The first quarterly re-
port submitted after the date of the enactment of 
this Act shall include an estimate of the cost to 
the Department of Defense of the APPF, includ-
ing funds within the Afghan Security Forces 
Fund and estimated contractual costs for fiscal 
years 2013 and 2014. 
(E) A report submitted following the end of 
the second and fourth quarter of a fiscal year 
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592 
shall include a comparison of the cost to the De-
partment of Defense (both direct and to contrac-
tors of the Department of Defense) for the pre-
ceding six months of— 
(i) the use of the APPF; and 
(ii) the historical use of private secu-
rity contractors for a similar six-month pe-
riod. 
(4) AGREEMENTS.—The Secretary shall submit 
to the congressional defense committees a copy of each 
agreement signed by the United States and Afghani-
stan for services of the APPF for the Department of 
Defense during the first six months following the date 
of the enactment of this Act. 
TITLE XVI—INDUSTRIAL BASE 
MATTERS 
Subtitle A—Defense Industrial Base 
Matters 
SEC. 1601. DISESTABLISHMENT OF DEFENSE MATERIEL 
READINESS BOARD. 
(a) DISESTABLISHMENT OF BOARD.—The Defense Ma-
teriel Readiness Board established pursuant to section 871 
of the National Defense Authorization Act for Fiscal Year 
2008 (Public Law 110-181; 10 U.S.C. 117 note) is hereby 
disestablished. 
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593 
(b) TERMINATION OF DEFENSE STRATEGIC READI-
NESS FUND.—The Defense Strategic Readiness Fund estab-
lished by section 872(d) of the National Defense Authoriza-
tion Act for Fiscal Year 2008 (Public Law 110-181; 10 
U.S.C. 117 note) is hereby closed. 
(c) REPEAL.—Subtitle G of title VIII of the National 
Defense Authorization Act for Fiscal Year 2008 (Public 
Law 110-181; 10 U.S.C. 117 note) is repealed. 
SEC. 1602. ASSESSMENT OF EFFECTS OF FOREIGN BOY-
COTTS. 
Section 2505 of title 10, United States Code, is amend-
ed— 
(1) by redesignating subsection (d) as subsection 
(e); and 
(2) by inserting after subsection (c) the following 
new subsection (d): 
‘‘(d) ASSESSMENT OF EXTENT OF EFFECTS OF FOR-
EIGN BOYCOTTS.—Each assessment under subsection (a) 
shall include a separate discussion and presentation regard-
ing the extent to which the national technology and indus-
trial base is affected by foreign boycotts. The discussion and 
presentation regarding foreign boycotts shall— 
‘‘(1) identify sectors of the national technology 
and industrial base being affected by foreign boycotts; 
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‘‘(2) assess the harm to the national technology 
and industrial base as a result of such boycotts; and 
‘‘(3) identify actions necessary to minimize the 
effects of foreign boycotts on the national technology 
and industrial base.’’. 
SEC. 1603. ADVANCING INNOVATION PILOT PROGRAM. 
(a) PILOT PROGRAM.—The Secretary of Defense, act-
ing through the Assistant Secretary of Defense for Research 
and Engineering, may establish and implement a pilot pro-
gram, to be known as the ‘‘Advancing Innovation Pilot Pro-
gram’’, in furtherance of the national security objectives in 
section 2501(a) of title 10, United States Code. 
(b) PURPOSE.—The purpose of the pilot program is 
to accelerate development and fielding of research innova-
tions from qualifying institutions. 
(c) AVAILABILITY OF FUNDS.—Of the funds authorized 
and appropriated, or otherwise made available, for re-
search, development, test and evaluation, the Secretary may 
allocate funding to qualifying institutions in accordance 
with this subsection. Such funding shall be used to evaluate 
the potential of fielding or commercialization of existing 
discoveries, including— 
(1) proof of concept research or prototype devel-
opment; and 
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(2) activities that contribute to determining a 
project’s path to fielding or commercialization of 
dual-use technologies, including technical validations, 
market research, determination of intellectual prop-
erty rights, and investigating military or commercial 
opportunities. 
(d) IMPLEMENTATION.—Prior to obligation or execu-
tion of funding under the pilot program, the Secretary shall 
develop and issue guidance to implement the pilot program. 
Such guidance shall, at a minimum— 
(1) require that funding allocated under the pilot 
program shall be done using a competitive, merit- 
based process; 
(2) ensure that qualifying institutions establish a 
rigorous, diverse review board for program execution 
that shall be comprised of experts in translational 
and proof of concept research, including representa-
tives that provide expertise in transitioning tech-
nology, financing mechanisms, intellectual property 
rights, and advancement of small business concerns; 
(3) ensure that technology validation milestones 
are established; and 
(4) enable the Assistant Secretary to reallocate 
funding with the pilot program from poor performing 
projects to those with more potential. 
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(e) LIMITATION.—Funding made available under the 
pilot program shall not be used for basic research, or to 
fund the acquisition of research equipment or supplies not 
directly related to fielding activities to meet military re-
quirements or commercialization of dual-use technologies. 
(f) REPORT.—Not later than 90 days after the comple-
tion of the pilot program, the Secretary shall submit to the 
congressional defense committees a report evaluating the ef-
fectiveness of the activities of the pilot program. The report 
shall include— 
(1) a detailed description of the execution of the 
pilot program, including incentives and activities un-
dertaken by review board experts; 
(2) an accounting of the funds used in the pilot 
program; 
(3) a detailed description of the institutional 
and proposal selection process; 
(4) a detailed compilation of results achieved by 
the pilot program; 
(5) an analysis of the program’s effectiveness, 
with data supporting the analysis; and 
(6) recommendations for advancing innovation 
and otherwise improving the transition of technology 
to meet Department of Defense requirements. 
(g) DEFINITIONS.—In this section: 
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(1) QUALIFYING INSTITUTION.—The term ‘‘quali-
fying institution’’ means any entity at which research 
and development activities are conducted and that 
has past performance in technology transition or com-
mercialization of third-party research, including— 
(A) an institution of higher education or 
other nonprofit entity; and 
(B) a for-profit entity. 
(2) 
RESEARCHER.—The 
term 
‘‘researcher’’ 
means a university or Federal laboratory that con-
ducts basic research. 
(3) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the mean-
ing given such term in section 101 of the Higher Edu-
cation Act of 1965. 
(4) DUAL-USE.—The term ‘‘dual-use’’ has the 
meaning provided in section 2500(2) of title 10, 
United States Code. 
(h) TERMINATION.—The pilot program conducted 
under this section shall terminate on September 30, 2017. 
SEC. 1604. NATIONAL SECURITY STRATEGY FOR NATIONAL 
TECHNOLOGY AND INDUSTRIAL BASE. 
(a) REQUIREMENT FOR STRATEGY.— 
(1) IN
GENERAL.—Section 2501 of title 10, 
United States Code, is amended as follows: 
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(A) The section heading is amended by 
striking ‘‘objectives concerning’’ and in-
serting ‘‘strategy for’’. 
(B) Subsection (a) is amended— 
(i) in the subsection heading, by strik-
ing ‘‘OBJECTIVES’’ and inserting ‘‘STRAT-
EGY’’; 
(ii) by striking ‘‘It is the policy of’’ 
and all that follows through ‘‘objectives:’’ 
and inserting the following: ‘‘The Secretary 
of Defense shall develop a national security 
strategy for the national technology and in-
dustrial base. Such strategy shall be based 
on a prioritized assessment of risks and 
challenges to the defense supply chain and 
shall ensure that the national technology 
and industrial base is capable of achieving 
the following national security objectives:’’; 
and 
(iii) by adding at the end the following 
new paragraph: 
‘‘(9) Ensuring reliable sources of materials that 
are critical to national security, such as specialty 
metals, armor plate and rare earth elements. 
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599 
‘‘(10) Reducing, to the maximum extent prac-
ticable, the presence of counterfeit parts in the supply 
chain and the risk associated with such parts.’’. 
(2) CLERICAL AMENDMENT.—The item relating 
to section 2501 in the table of sections at the begin-
ning of subchapter II of chapter 148 of such title is 
amended to read as follows: 
‘‘2501. National security strategy for national technology and industrial base.’’. 
(b) AMENDMENT TO ANNUAL REPORT RELATING TO 
DEFENSE INDUSTRIAL BASE.—Section 2504 of such title 
is amended— 
(1) by striking paragraph (2); 
(2) by redesignating paragraph (3) as para-
graph (2); and 
(3) by inserting after paragraph (2) (as so redes-
ignated) the following new paragraph (3): 
‘‘(3) Based on the assessments prepared pursuant 
to section 2505 of this title— 
‘‘(A) a description of any mitigation strate-
gies 
necessary 
to 
address 
any 
gaps 
or 
vulnerabilities in the national technology and 
industrial base; and 
‘‘(B) any other steps necessary to foster and 
safeguard the national technology and industrial 
base.’’. 
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600 
(c) REQUIREMENT FOR CONSIDERATION OF STRATEGY 
IN ACQUISITION PLANS.—Section 2440 of such title is 
amended by inserting after ‘‘base’’ the following: ‘‘, in ac-
cordance with the strategy required by section 2501 of this 
title,’’. 
(d) CONFORMING AMENDMENTS.—Section 852 of the 
National Defense Authorization Act for Fiscal Year 2012 
(Public Law 112–81; 125 Stat. 1517; 10 U.S.C. 2504 note) 
is amended— 
(1) by striking subsection (c); and 
(2) by redesignating subsection (d) as subsection 
(c), and in that subsection by striking ‘‘subsection 
(c).’’ in the first sentence and inserting ‘‘section 2501 
of title 10, United States Code.’’. 
Subtitle B—Department of Defense 
Activities Related to Small Busi-
ness Matters 
SEC. 1611. PILOT PROGRAM TO ASSIST IN THE GROWTH 
AND DEVELOPMENT OF ADVANCED SMALL 
BUSINESS CONCERNS. 
(a) ESTABLISHMENT OF PILOT PROGRAM.—The Sec-
retary of Defense shall establish a pilot program within the 
Department of Defense to assist in the growth and develop-
ment of advanced small business concerns in accordance 
with this section. 
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(b) REQUIREMENTS OF PILOT PROGRAM.— 
(1) RESTRICTED
COMPETITION
FOR
CERTAIN 
CONTRACTS.—Under the pilot program and except as 
provided under paragraph (2)(B), competition for 
contract awards may be restricted to advanced small 
business concerns if— 
(A) the anticipated award price of the con-
tract (including options) is reasonably expected 
to exceed $25,000,000; 
(B) the Procurement Center Representative 
of the Small Business Administration or the Di-
rector of Small Business Programs of the De-
partment of Defense determines that, if the con-
tract were not awarded under the pilot program, 
the contract would likely be awarded to an entity 
other than a small business concern; 
(C) there is a reasonable expectation that at 
least two advanced small business concerns will 
submit offers with respect to the contract; 
(D) such advanced small business concerns 
agree to the requirements specified in section 
15(o) of the Small Business Act (15 U.S.C. 
644(o)) (relating to percentage of work under the 
contract to be performed by the concern), except 
that work performed by other advanced small 
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602 
business concerns or by small business concerns 
shall be considered as work performed by the 
prime contractor for purposes of such require-
ments; and 
(E) the contract award can be made at a 
fair market price. 
(2) ELIGIBILITY.— 
(A) ADVANCED
SMALL
BUSINESS
CON-
CERN.—An entity shall be considered an ad-
vanced small business concern and eligible for 
participation in the pilot program if the enti-
ty— 
(i) is independently owned and oper-
ated and is not dominant in its field of op-
eration; and 
(ii) has fewer than— 
(I) twice the number of employees 
the Small Business Administration has 
assigned as a size standard to the 
North American Industrial Classifica-
tion Standard code in which the entity 
is operating; or 
(II) three times the average an-
nual receipts the Small Business Ad-
ministration has assigned as a size 
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603 
standard to the North American Indus-
trial Classification Standard code in 
which the entity is operating. 
(B) SMALL BUSINESS CONCERN.—Notwith-
standing paragraph (1), a small business con-
cern may submit an offer for any contract under 
the pilot program. 
(3) CONSIDERATION AND NOTICE TO PUBLIC.— 
With respect to a contract opportunity determined to 
meet the criteria specified in paragraph (1), a con-
tracting officer for the Department of Defense shall— 
(A) consider awarding a contract under the 
pilot program before using full and open com-
petition for such contract; and 
(B) provide notice of the contract oppor-
tunity (including the eligibility requirements of 
the contract opportunity) in accordance with the 
Federal Acquisition Regulation and other appli-
cable guidelines. 
(4) RELATIONSHIP
TO
SMALL
BUSINESS
ACT 
PROGRAMS.— 
(A) An advanced small business concern 
shall not be eligible for any assistance provided 
to small businesses by the Small Business Act 
(15 U.S.C. 637 et seq.) or the Small Business In-
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604 
vestment Act of 1958 22 (15 U.S.C. 661 et seq.), 
unless eligibility is expressly provided through 
the pilot program established by this Act, and 
contracts awarded pursuant to the pilot program 
shall not be counted toward the achievement of 
the small business prime or subcontracting goals 
established by the Small Business Act (15 U.S.C. 
644). 
(B) An advanced small business concern 
shall enter into a subcontracting plan in accord-
ance with section 8(d) of the Small Business Act 
(15 U.S.C. 637(d)). 
(C) Nothing in this section authorizes a 
Procurement Center Representative or an em-
ployee of the Office of Small Business Programs 
to provide assistance to advanced small business 
concerns or to advocate for the restriction of com-
petition to advanced small business concerns. 
(c) IMPLEMENTATION.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of De-
fense, in consultation with the Administrator of the Small 
Business Administration, shall develop and issue guidance 
to implement the pilot program. The guidance shall— 
(1) identify criteria under which the pilot pro-
gram is evaluated, including a methodology to collect 
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605 
data during the course of the pilot program to facili-
tate an assessment at the conclusion of the pilot pro-
gram; 
(2) permit a self-certification for eligibility for 
participation in the pilot program; 
(3) ensure that any self-certification requires the 
concern involved to meet the requirements of the 
Small Business Administration regarding ownership, 
control, and affiliation (as set forth in section 
121.103 of title 13 of the Code of Federal Regula-
tions); 
(4) establish an appeals process to handle chal-
lenges to self-certifications of advanced small business 
concerns, with the certification of eligibility residing 
with the Small Business Administration’s Office of 
Hearings and Appeals; 
(5) identify a method to reimburse the Small 
Business Administration for additional costs to the 
Administration relating to such self-certifications; 
(6) establish a methodology for identifying and 
tracking program participants, including reporting 
on contracts awarded to program participants using 
the Federal Procurement Data System; and 
(7) ensure that the pilot program does not super-
sede goals or programs authorized by the Small Busi-
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606 
ness Act (15 U.S.C. 637 et seq.) or the Small Business 
Investment Act of 1958 22 (15 U.S.C. 661 et seq.) or 
count toward the achievement of the small business 
prime or subcontracting goals established by the 
Small Business Act (15 U.S.C. 644). 
(d) REPORT TO CONGRESS.—Not later than one year 
after the date of the enactment of this Act, and annually 
thereafter for the duration of the pilot program, the Sec-
retary of Defense shall submit to the appropriate congres-
sional committees a report on the pilot program that in-
cludes each of the following: 
(1) The number of contracts awarded in the 
prior year under the pilot program. 
(2) The value of the contracts awarded under the 
pilot program and a description of the work carried 
out under such contracts. 
(3) The number of program participants under 
the pilot program. 
(4) An assessment of the success of the pilot pro-
gram based on the criteria described in subsection 
(c)(1). 
(5) Such recommendations as the Secretary con-
siders appropriate, including a recommendation re-
garding whether to extend the pilot program or termi-
nate it early. 
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(e) TERMINATION.—The pilot program shall terminate 
on the date that is three years after the date on which the 
guidance for the pilot program is issued pursuant to sub-
section (c). 
(f) DEFINITIONS.—In this section: 
(1) ADVANCED SMALL BUSINESS CONCERN.—The 
term ‘‘advanced small business concern’’ means an 
entity that meets the requirements specified in sub-
section (b)(2)(A). 
(2) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means each of the following: 
(A) The Committees on Armed Services and 
on Small Business and Entrepreneurship of the 
Senate. 
(B) The Committees on Armed Services and 
on Small Business of the House of Representa-
tives. 
(3) OFFICE OF SMALL BUSINESS PROGRAMS.— 
The term ‘‘Office of Small Business Programs’’ means 
the Office of Small Business Programs described in 
section 144(b) of title 10, United States Code. 
(4) PILOT PROGRAM.—The term ‘‘pilot program’’ 
means the program established by the Secretary of 
Defense under subsection (a). 
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608 
(5) PROCUREMENT CENTER REPRESENTATIVE.— 
The term ‘‘Procurement Center Representative’’ has 
the meaning provided in section 15 of the Small 
Business Act (15 U.S.C. 644). 
(6) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning provided 
under section 3(a) of the Small Business Act (15 
U.S.C. 632(a)). 
SEC. 1612. ROLE OF THE DIRECTORS OF SMALL BUSINESS 
PROGRAMS 
IN 
REQUIREMENTS 
DEVELOP-
MENT AND ACQUISITION DECISION PROC-
ESSES OF THE DEPARTMENT OF DEFENSE. 
(a) GUIDANCE REQUIRED.—The Secretary of Defense 
shall develop and issue guidance to ensure that the head 
of each Office of Small Business Programs in the Depart-
ment of Defense is a participant in requirements develop-
ment and acquisition decision processes— 
(1) of the Department, in the case of the Director 
of Small Business Programs in the Department of 
Defense; and 
(2) of the military department concerned, in the 
case of the Director of Small Business Programs in 
the Department of the Army, in the Department of 
the Navy, and in the Department of the Air Force. 
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609 
(b) MATTERS TO BE INCLUDED.—Such guidance shall, 
at a minimum— 
(1) require the Director of Small Business Pro-
grams in the Department of Defense— 
(A) to serve as an advisor to the Defense Ac-
quisition Board; and 
(B) to serve as an advisor to the Informa-
tion Technology Acquisition Board; and 
(2) require coordination between the chiefs of the 
Armed Forces and the service acquisition executives, 
as appropriate (or their designees), and the Director 
of Small Business Programs in each military depart-
ment during the process for approval of— 
(A) a requirements document, as defined in 
section 2547 of title 10, United States Code; and 
(B) acquisition strategies or plans. 
SEC. 1613. SMALL BUSINESS ADVOCATE FOR DEFENSE 
AUDIT AGENCIES. 
(a) SMALL BUSINESS ADVOCATE.—Subchapter II of 
chapter 8 of title 10, United States Code, is amended by 
adding at the end the following new section: 
‘‘§ 204. Small Business Advocate for defense audit 
agencies 
‘‘(a) SMALL BUSINESS ADVOCATE.—The Secretary of 
Defense shall designate within each defense audit agency 
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610 
an official as the Small Business Advocate to have the du-
ties described in subsection (b) and such other responsibil-
ities as may be determined by the Secretary. 
‘‘(b) DUTIES.—The Small Business Advocate at a de-
fense audit agency shall— 
‘‘(1) advise the Director of the defense audit 
agency on all issues related to small business con-
cerns; 
‘‘(2) serve as the defense audit agency’s primary 
point of contact and source of information for small 
business concerns; and 
‘‘(3) collect relevant data and monitor the de-
fense audit agency’s conduct of audits of small busi-
ness concerns, including— 
‘‘(A) monitoring the timeliness of audit 
closeouts for small business concerns; and 
‘‘(B) monitoring the responsiveness of the 
agency to issues or other matters raised by small 
business concerns; and 
‘‘(4) develop and implement processes and proce-
dures to improve the performance of the defense audit 
agency related to the timeliness of audits of small 
business concerns and the responsiveness of the agency 
to issues or other matters raised by small business 
concerns. 
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‘‘(c) DEFENSE AUDIT AGENCY DEFINED.—In this sec-
tion, the term ‘defense audit agency’ means the Defense Con-
tract Audit Agency and the Defense Contract Management 
Agency.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 8 of such title is amended by in-
serting after the item relating to section 203 the following 
new item: 
‘‘204. Small Business Advocate for defense audit agencies.’’. 
SEC. 1614. INDEPENDENT ASSESSMENT OF FEDERAL PRO-
CUREMENT CONTRACTING PERFORMANCE OF 
THE DEPARTMENT OF DEFENSE. 
(a) ASSESSMENT REQUIRED.—Not later than 60 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall enter into a contract with a federally fund-
ed research and development center to conduct an inde-
pendent assessment of the Department’s procurement per-
formance related to small business concerns. 
(b) MATTERS COVERED.—The assessment under sub-
section (a) shall, at a minimum, include— 
(1) a description of the industrial composition of 
companies receiving subcontracts pursuant to the test 
program for the negotiation of comprehensive small 
business subcontracting plans pursuant to section 834 
of the National Defense Authorization Act for Fiscal 
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612 
Years 1990 and 1991 (Public Law 101–189; 15 
U.S.C. 637 note); 
(2) a comparison of the industrial composition 
of prime contractors participating in such test pro-
gram and the industrial composition of all prime 
contractors of the Department of Defense; 
(3) a determination of barriers to accurately 
capturing data on small business prime contracting 
and subcontracting, including an examination of the 
reliability of the information technology systems of 
the Department that are used to track such data; 
(4) recommendations for improving the quality 
and availability of data regarding small business 
prime contracting and subcontracting performance; 
(5) recommendations to improve and inform ne-
gotiations regarding small business contract goals for 
the Department; 
(6) an examination of the execution of small 
business subcontracting plans, including an assess-
ment of the degree to which initial teaming agree-
ments are not maintained through the performance of 
contracts; 
(7) an examination of the extent to which the 
Department adheres to current policies and guidelines 
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613 
relating to small business prime contracting and sub-
contracting goals; 
(8) recommendations for increasing opportuni-
ties for small business concerns owned and controlled 
by service-disabled veterans (as defined by section 
3(q) of the Small Business Act (15 U.S.C. 632(q)) to 
do business with the Department of Defense; 
(9) an examination of the extent to which the 
Department bundles, consolidates, or otherwise groups 
requirements into contracts that are unsuitable for 
award to small businesses, and the effects that such 
practices have on small business participation; 
(10) recommendations for increasing small busi-
ness prime contracting and subcontracting opportuni-
ties with the Department; and 
(11) recommendations for steps that can be taken 
to prevent abuses and ensuring that small business 
contracts are in fact going to small businesses. 
(c) REPORT.—Not later than January 1, 2014, the 
Secretary shall submit to the congressional defense commit-
tees a report on the independent assessment conducted 
under this section. 
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SEC. 1615. ASSESSMENT OF SMALL BUSINESS PROGRAMS 
TRANSITION. 
(a) INDEPENDENT REVIEW AND ASSESSMENT.—Not 
later than 30 days after the date of the enactment of this 
Act, the Secretary of Defense shall select an appropriate en-
tity outside the Department of Defense to conduct an inde-
pendent review and assessment of the transition of tech-
nologies developed by small business, such as those developed 
under the Small Business Innovation Research Program, 
into major weapon systems and major automated informa-
tion systems for the Department of Defense. 
(b) ELEMENTS.—The review and assessment required 
by subsection (a) shall include the following: 
(1) An analysis of a representative sample of 
major weapon systems and major automated informa-
tion systems to determine the content of the systems 
from 
small 
businesses, 
including 
components 
transitioned from the Small Business Innovation Re-
search Program. 
(2) An analysis of established or ad hoc processes 
to allow program offices to monitor, evaluate, and 
transition small business-developed technologies into 
their program. 
(3) Recommendations for developing a system-
atic and sustained process for monitoring, evaluating, 
and transitioning small business-developed tech-
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615 
nologies for use by the entire defense acquisition sys-
tem of the Department of Defense, including data col-
lection and measures of effectiveness and performance. 
(c) REPORT.— 
(1) REPORT
REQUIRED.—Not later than 120 
days after the date of the enactment of this Act, the 
entity conducting the review and assessment under 
subsection (a) shall submit to the Secretary and the 
congressional defense committees a report con-
taining— 
(A) the results of the review and assessment; 
and 
(B) recommendations for improving the 
process for managing the transition and integra-
tion of technologies developed by small business 
(including under the Small Business Innovation 
Research Program) into major weapons systems 
and major automated information systems. 
(2) ADDITIONAL
EVALUATION
REQUIRED.—Not 
later than 30 days after the date on which the con-
gressional defense committees receive the report re-
quired by paragraph (1), the Secretary shall submit 
to such committees an evaluation by the Secretary of 
the results and recommendations contained in such 
report. 
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616 
(d) SBIR PROGRAM DEFINED.—In this section, the 
term ‘‘Small Business Innovation Research Program’’ has 
the meaning provided such term by section 2500(11) of title 
10, United States Code. 
SEC. 1616. ADDITIONAL RESPONSIBILITIES OF INSPECTOR 
GENERAL OF THE DEPARTMENT OF DEFENSE. 
(a) REQUIREMENT FOR PEER REVIEWS.—Section 8(c) 
of the Inspector General Act of 1978 (5 U.S.C. App.) is 
amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(8); 
(2) by striking the period and inserting ‘‘; and’’ 
at the end of paragraph (9); and 
(3) by adding at the end the following new para-
graph: 
‘‘(10) conduct peer reviews of Department of De-
fense audit agencies in accordance with and in such 
frequency as provided by Government auditing stand-
ards as established by the Comptroller General of the 
United States.’’. 
(b) REQUIREMENT FOR ADDITIONAL INFORMATION IN 
SEMIANNUAL REPORTS.—Section 8(f) of such Act is amend-
ed by striking paragraph (1) and inserting the following: 
‘‘(1) Each semiannual report prepared by the Inspec-
tor General of the Department of Defense under section 5(a) 
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617 
shall be transmitted by the Secretary of Defense to the Com-
mittees on Armed Services and on Homeland Security and 
Governmental Affairs of the Senate and the Committees on 
Armed Services and on Oversight and Government Reform 
of the House of Representatives and to other appropriate 
committees or subcommittees of Congress. Each such report 
shall include— 
‘‘(A) information concerning the numbers and 
types of contract audits conducted by the Department 
during the reporting period; and 
‘‘(B) information concerning any Department of 
Defense audit agency that, during the reporting pe-
riod, has either failed an audit or is overdue for a 
peer review required to be conducted in accordance 
with subsection (c)(10).’’. 
SEC. 1617. RESTORATION OF 1 PERCENT FUNDING FOR AD-
MINISTRATIVE 
EXPENSES 
OF 
COMMER-
CIALIZATION READINESS PROGRAM OF DE-
PARTMENT OF DEFENSE. 
(a) RESTORATION.—Section 9(y) of the Small Busi-
ness Act (15 U.S.C. 638(y)), as amended by section 
5141(b)(1)(B) of the National Defense Authorization Act for 
Fiscal Year 2012 (Public Law 112–81; 125 Stat. 1853) is 
amended— 
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(1) by redesignating paragraphs (4) and (5) as 
paragraphs (5) and (6), respectively; and 
(2) by inserting after paragraph (3) the fol-
lowing new paragraph (4): 
‘‘(4) FUNDING.—For payment of expenses in-
curred to administer the Commercialization Readi-
ness Program under this subsection, the Secretary of 
Defense and each Secretary of a military department 
is authorized to use not more than an amount equal 
to 1 percent of the funds available to the Department 
of Defense or the military department pursuant to the 
Small Business Innovation Research Program. Such 
funds shall not be used to make Phase III awards.’’. 
(b) TECHNICAL AMENDMENT.—Section 5141(b)(3)(B) 
of the National Defense Authorization Act for Fiscal Year 
2012 (Public Law 112–81; 125 Stat. 1854) is amended— 
(1) by striking ‘‘subsection (y)—’’ and all that 
follows through ‘‘the following:’’ and inserting ‘‘sub-
section (y), by amending paragraph (4) to read as 
follows:’’ 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as of January 1, 2012. 
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619 
Subtitle C—Matters Relating to 
Small Business Concerns 
PART I —PROCUREMENT CENTER 
REPRESENTATIVES 
SEC. 1621. PROCUREMENT CENTER REPRESENTATIVES. 
(a) IN GENERAL.—Section 15(l) of the Small Business 
Act (15 U.S.C. 644(l)) is amended by striking the subsection 
enumerator and inserting the following: 
‘‘(l) PROCUREMENT CENTER REPRESENTATIVES.—’’. 
(b) ASSIGNMENT AND ROLE.—Paragraph (1) of section 
15(l) of such Act (15 U.S.C. 644(l)) is amended to read 
as follows: 
‘‘(1) ASSIGNMENT
AND
ROLE.—The Adminis-
trator shall assign to each major procurement center 
a procurement center representative with such assist-
ance as may be appropriate.’’. 
(c) ACTIVITIES.—Section 15(l)(2) of such Act (15 
U.S.C. 644(l)(2)) is amended— 
(1) in the matter preceding subparagraph (A) by 
striking ‘‘(2) In addition to carrying out the respon-
sibilities assigned by the Administration, a breakout’’ 
and inserting the following: 
‘‘(2) ACTIVITIES.—A’’; 
(2) by striking subparagraph (A) and inserting 
the following: 
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‘‘(A) attend any provisioning conference or 
similar evaluation session during which a deter-
mination may be made with respect to the pro-
curement method to be used to satisfy a require-
ment, review any acquisition plan with respect 
to a requirement, and make recommendations re-
garding procurement method determinations and 
acquisition plans;’’; 
(3) in subparagraph (B)— 
(A) by striking ‘‘(B) review, at any time, 
restrictions on competition’’ and inserting the 
following: 
‘‘(B) review, at any time, barriers to small 
business participation in Federal contracting’’; 
(B) by striking ‘‘items’’ and inserting 
‘‘goods and services’’; and 
(C) by striking ‘‘limitations’’ and inserting 
‘‘barriers’’; 
(4) in subparagraph (C) by striking ‘‘(C) review 
restrictions on competition’’ and inserting the fol-
lowing: 
‘‘(C) review barriers to small business par-
ticipation in Federal contracting’’; 
(5) by striking subparagraph (D) and inserting 
the following: 
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621 
‘‘(D) review any bundled or consolidated so-
licitation or contract in accordance with this 
Act;’’; 
(6) by striking subparagraph (E) and inserting 
the following: 
‘‘(E) have electronic access to procurement 
records, acquisition plans developed or in devel-
opment, and other data of the procurement cen-
ter commensurate with the level of such rep-
resentative’s approve security clearance classi-
fication;’’; and 
(7) by striking subparagraphs (F) and (G) and 
inserting the following: 
‘‘(F) receive, from personnel responsible for 
reviewing unsolicited proposals, copies of unso-
licited proposals from small business concerns 
and any information on outcomes relating to 
such proposals; 
‘‘(G) participate in any session or planning 
process and review any documents with respect 
to a decision to convert an activity performed by 
a small business concern to an activity per-
formed by a Federal employee; 
‘‘(H) be an advocate for the maximum 
practicable utilization of small business concerns 
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622 
in Federal contracting, including by advocating 
against the bundling of contract requirements 
when not justified; and 
‘‘(I) carry out any other responsibility as-
signed by the Administrator.’’. 
(d) APPEALS.—Section 15(l)(3) of such Act (15 U.S.C. 
644(l)(3)) is amended by striking ‘‘(3) A breakout procure-
ment center representative’’ and inserting the following: 
‘‘(3) APPEALS.—A procurement center represent-
ative’’. 
(e) NOTIFICATION AND INCLUSION.—Paragraph (4) of 
section 15(l) of such Act (15 U.S.C. 644(l)) is amended to 
read as follows: 
‘‘(4) NOTIFICATION
AND
INCLUSION.—Agency 
heads shall ensure that procurement center represent-
atives are included in applicable acquisition plan-
ning processes.’’. 
(f) POSITION REQUIREMENTS.—Section 15(l)(5) of 
such Act (15 U.S.C. 644(l)(5)) is amended— 
(1) by striking the paragraph enumerator and 
inserting the following: 
‘‘(5) POSITION REQUIREMENTS.—’’; 
(2) by striking subparagraphs (A) and (B) and 
inserting the following: 
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value of all prime contract awards for each fiscal 
year and 40 percent of the total value of all sub-
contract awards for each fiscal year. 
‘‘(B) The Governmentwide goal for partici-
pation by small business concerns owned and 
controlled by service-disabled veterans shall be es-
tablished at not less than 3 percent of the total 
value of all prime contract and at not less than 
3 percent of the total value of all subcontract 
awards for each fiscal year. 
‘‘(C) The Governmentwide goal for partici-
pation by qualified HUBZone small business 
concerns shall be established at not less than 3 
percent of the total value of all prime contract 
and at not less than 3 percent of the total value 
of all subcontract awards for each fiscal year. 
‘‘(D) The Governmentwide goal for partici-
pation by small business concerns owned and 
controlled by socially and economically dis-
advantaged individuals shall be established at 
not less than 5 percent of the total value of all 
prime contract and at not less than 5 percent of 
the total value of all subcontract awards for each 
fiscal year. 
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631 
‘‘(E) The Governmentwide goal for partici-
pation by small business concerns owned and 
controlled by women shall be established at not 
less than 5 percent of the total value of all prime 
contract and at not less than 5 percent of the 
total value of all subcontract awards for each fis-
cal year.’’. 
(c) AGENCY GOALS.—Paragraph (2) of section 15(g) 
of such Act (15 U.S.C. 644(g)) is amended to read as fol-
lows: 
‘‘(2) AGENCY GOALS.— 
‘‘(A) ESTABLISHMENT.—The head of each 
Federal agency shall annually establish, for the 
agency that individual heads, goals for procure-
ment contracts awarded to small business con-
cerns, small business concerns owned and con-
trolled by service-disabled veterans, qualified 
HUBZone small business concerns, small busi-
ness concerns owned and controlled by socially 
and economically disadvantaged individuals, 
and small business concerns owned and con-
trolled by women. 
‘‘(B) RELATIONSHIP TO GOVERNMENTWIDE 
GOALS.— 
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‘‘(i) SCOPE.—The goals established by 
the head of a Federal agency under sub-
paragraph (A) shall be in the same format 
as the goals established by the President 
under paragraph (1) and shall address both 
prime contract and subcontract awards. 
‘‘(ii) REQUIREMENT
PERTAINING
TO 
AGENCY GOALS.—With respect to each goal 
for a fiscal year established under subpara-
graph (A) for a category of small business 
concern, the participation percentage appli-
cable to such goal may not be less than the 
participation percentage applicable to the 
Governmentwide goal for such fiscal year 
established under paragraph (1) for such 
category. 
‘‘(C) CONSULTATION REQUIRED.— 
‘‘(i) IN
GENERAL.—.In establishing 
goals under subparagraph (A), the head of 
each Federal agency shall consult with the 
Administrator. 
‘‘(ii) 
DISAGREEMENTS.—Except 
as 
provided by clause (iii), if the Adminis-
trator and the head of a Federal agency fail 
to agree on a goal established under sub-
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‘‘(c) REPORTING.— 
‘‘(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of the National Defense Author-
ization Act for Fiscal Year 2013, and annually there-
after, the Administrator shall submit to the Com-
mittee on Small Business of the House of Representa-
tives and the Committee on Small Business and En-
trepreneurship of the Senate a report that— 
‘‘(A) identifies each Federal mentor-protege 
program; 
‘‘(B) specifies the number of participants in 
each such program, including the number of par-
ticipants that are— 
‘‘(i) small business concerns; 
‘‘(ii) small business concerns owned 
and controlled by service-disabled veterans; 
‘‘(iii) qualified HUBZone small busi-
ness concerns; 
‘‘(iv) small business concerns owned 
and controlled by socially and economically 
disadvantaged individuals; or 
‘‘(v) small business concerns owned 
and controlled by women; 
‘‘(C) describes the type of assistance pro-
vided to proteges under each such program; 
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874 
(1) IN GENERAL.—Section 4604 of the Atomic 
Energy Defense Act (50 U.S.C. 2704), as amended by 
section 3131(q)(1), is amended— 
(A) in subsection (b)(1), by striking ‘‘and 
any updates of the plan under subsection (e)’’; 
(B) by striking subsection (e); 
(C) in subsection (f)— 
(i) by striking paragraph (2); and 
(ii) by redesignating paragraph (3), as 
added by such section 3131(q)(1), as para-
graph (2); and 
(D) by redesignating subsections (f) and (g) 
as subsections (e) and (f), respectively. 
(2) 
CONFORMING
AMENDMENT.—Section 
4643(d)(1) of the Atomic Energy Defense Act (50 
U.S.C. 2733(d)(1)) is amended by striking ‘‘section 
4604(g)’’ and inserting ‘‘section 4604(f)’’. 
(c) UNCLASSIFIED CONTROLLED NUCLEAR INFORMA-
TION QUARTERLY REPORT.—Section 148 of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2168) is amended by striking 
subsection e. 
Subtitle D—Reports 
SEC. 3141. NOTIFICATION OF NUCLEAR CRITICALITY AND 
NON-NUCLEAR INCIDENTS. 
(a) NOTIFICATION.— 
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903 
and safety are as low as reasonably prac-
ticable and public health and safety are 
adequately protected’’; and 
(iv) in paragraph (5)— 
(I) by striking ‘‘to ensure ade-
quate protection of public health and 
safety’’ and inserting ‘‘to ensure that 
risks to public health and safety are as 
low as reasonably practicable and pub-
lic health and safety are adequately 
protected’’; 
(II) by inserting ‘‘, and specifi-
cally assess,’’ after ‘‘shall consider’’; 
and 
(III) by inserting ‘‘, the costs and 
benefits, and the practicability’’ after 
‘‘economic feasibility’’. 
(2) CLERICAL AMENDMENT.—The table of con-
tents for the Atomic Energy Act of 1954 is amended 
by striking the item relating to section 312 and in-
serting the following new item: 
‘‘Sec. 312. Mission and functions of the board.’’. 
(c) POWERS.—Section 313 of the Atomic Energy Act 
of 1954 (42 U.S.C. 2286b) is amended— 
(1) in subsection (a)— 
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