H. R. 6395—337 
(c) REPORT.—Not later than 15 months after the date of the 
enactment of this Act, the Secretary shall submit to the Committees 
on Armed Services of the Senate and the House of Representatives 
a report on the findings and recommendations resulting from the 
study under subsection (a). 
SEC. 758. REPORT ON BILLING PRACTICES FOR HEALTH CARE FROM 
DEPARTMENT OF DEFENSE. 
(a) REPORT.— 
(1) IN GENERAL.—Not later than one year after the date 
of the enactment of this Act, the Comptroller General of the 
United States shall submit to the Committees on Armed Serv-
ices of the Senate and the House of Representatives a report 
assessing the billing practices of the Department of Defense 
for care received under the TRICARE program or at military 
medical treatment facilities. 
(2) ELEMENTS.—The report required by paragraph (1) shall 
include the following: 
(A) A description of the extent to which data is being 
collected and maintained on whether beneficiaries under 
the TRICARE program have other forms of health insur-
ance. 
(B) A description of the extent to which the Secretary 
of Defense has implemented the recommendations of the 
Inspector General of the Department of Defense to improve 
collections of third-party payments for care at military 
medical treatment facilities and a description of the impact 
such implementation has had on such beneficiaries. 
(C) A description of the extent to which the process 
used by managed care support contractors under the 
TRICARE program to adjudicate third-party liability claims 
is efficient and effective, including with respect to commu-
nication with such beneficiaries. 
(b) TRICARE PROGRAM DEFINED.—In this section, the term 
‘‘TRICARE program’’ has the meaning given that term in section 
1072 of title 10, United States Code. 
Subtitle E—Mental Health Services From 
Department of Veterans Affairs for Mem-
bers of Reserve Components 
SEC. 761. SHORT TITLE. 
This subtitle may be cited as the ‘‘Care and Readiness Enhance-
ment for Reservists Act of 2020’’ or the ‘‘CARE for Reservists 
Act of 2020’’. 
SEC. 762. EXPANSION OF ELIGIBILITY FOR READJUSTMENT COUN-
SELING AND RELATED OUTPATIENT SERVICES FROM 
DEPARTMENT OF VETERANS AFFAIRS TO INCLUDE MEM-
BERS OF RESERVE COMPONENTS OF THE ARMED FORCES. 
(a) READJUSTMENT COUNSELING.—Subsection (a)(1) of section 
1712A of title 38, United States Code, is amended by adding at 
the end the following new subparagraph: 
‘‘(D)(i) The Secretary, in consultation with the Secretary of 
Defense, may furnish to any member of the reserve components
H. R. 6395—338 
of the Armed Forces who has a behavioral health condition or 
psychological trauma, counseling under subparagraph (A)(i), which 
may include a comprehensive individual assessment under subpara-
graph (B)(i). 
‘‘(ii) A member of the reserve components of the Armed Forces 
described in clause (i) shall not be required to obtain a referral 
before being furnished counseling or an assessment under this 
subparagraph.’’. 
(b) OUTPATIENT SERVICES.—Subsection (b) of such section is 
amended— 
(1) in paragraph (1)— 
(A) by inserting ‘‘to an individual’’ after ‘‘If, on the 
basis of the assessment furnished’’; and 
(B) by striking ‘‘veteran’’ each place it appears and 
inserting ‘‘individual’’; and 
(2) in paragraph (2), by striking ‘‘veteran’’ and inserting 
‘‘individual’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date that is one year after the date of 
the enactment of this Act. 
SEC. 763. PROVISION OF MENTAL HEALTH SERVICES FROM DEPART-
MENT OF VETERANS AFFAIRS TO MEMBERS OF RESERVE 
COMPONENTS OF THE ARMED FORCES. 
(a) IN GENERAL.—Subchapter VIII of chapter 17 of title 38, 
United States Code, is amended by adding at the end the following 
new section: 
‘‘§ 1789. Mental health services for members of the reserve 
components of the Armed Forces 
‘‘The Secretary, in consultation with the Secretary of Defense, 
may furnish mental health services to members of the reserve 
components of the Armed Forces.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such subchapter is amended by inserting after the item 
relating to section 1788 the following new item: 
‘‘1789. Mental health services for members of the reserve components of the Armed 
Forces.’’. 
SEC. 764. INCLUSION OF MEMBERS OF RESERVE COMPONENTS IN 
MENTAL HEALTH PROGRAMS OF DEPARTMENT OF VET-
ERANS AFFAIRS. 
(a) SUICIDE PREVENTION PROGRAM.— 
(1) IN GENERAL.—Section 1720F of title 38, United States 
Code, is amended by adding at the end the following new 
subsection: 
‘‘(l)(1) COVERED INDIVIDUAL DEFINED.—In this section, the term 
‘covered individual’ means a veteran or a member of the reserve 
components of the Armed Forces. 
‘‘(2) In determining coverage of members of the reserve compo-
nents of the Armed Forces under the comprehensive program, the 
Secretary shall consult with the Secretary of Defense.’’. 
(2) CONFORMING
AMENDMENTS.—Such section is further 
amended— 
(A) in subsection (a), by striking ‘‘veterans’’ and 
inserting ‘‘covered individuals’’; 
(B) in subsection (b), by striking ‘‘veterans’’ each place 
it appears and inserting ‘‘covered individuals’’;
H. R. 6395—339 
(C) in subsection (c)— 
(i) in the subsection heading, by striking ‘‘OF VET-
ERANS’’; 
(ii) by striking ‘‘veterans’’ each place it appears 
and inserting ‘‘covered individuals’’; and 
(iii) by striking ‘‘veteran’’ and inserting ‘‘indi-
vidual’’; 
(D) in subsection (d), by striking ‘‘to veterans’’ each 
place it appears and inserting ‘‘to covered individuals’’; 
(E) in subsection (e), in the matter preceding paragraph 
(1), by striking ‘‘veterans’’ and inserting ‘‘covered individ-
uals’’; 
(F) in subsection (f)— 
(i) in the first sentence, by striking ‘‘veterans’’ 
and inserting ‘‘covered individuals’’; and 
(ii) in the second sentence, by inserting ‘‘or mem-
bers’’ after ‘‘veterans’’; 
(G) in subsection (g), by striking ‘‘veterans’’ and 
inserting ‘‘covered individuals’’; 
(H) in subsection (h), by striking ‘‘veterans’’ and 
inserting ‘‘covered individuals’’; 
(I) in subsection (i)— 
(i) in the subsection heading, by striking ‘‘FOR VET-
ERANS AND FAMILIES’’; 
(ii) in the matter preceding paragraph (1), by 
striking ‘‘veterans and the families of veterans’’ and 
inserting ‘‘covered individuals and the families of cov-
ered individuals’’; 
(iii) in paragraph (2), by striking ‘‘veterans’’ and 
inserting ‘‘covered individuals’’; and 
(iv) in paragraph (4), by striking ‘‘veterans’’ each 
place it appears and inserting ‘‘covered individuals’’; 
(J) in subsection (j)— 
(i) in paragraph (1), by striking ‘‘veterans’’ each 
place it appears and inserting ‘‘covered individuals’’; 
and 
(ii) in paragraph (4)— 
(I) in subparagraph (A), in the matter pre-
ceding clause (i), by striking ‘‘women veterans’’ 
and 
inserting 
‘‘covered 
individuals 
who 
are 
women’’; 
(II) in subparagraph (B), by striking ‘‘women 
veterans who’’ and inserting ‘‘covered individuals 
who are women and’’; and 
(III) in subparagraph (C), by striking ‘‘women 
veterans’’ and inserting ‘‘covered individuals who 
are women’’; and 
(K) in subsection (k), by striking ‘‘veterans’’ and 
inserting ‘‘covered individuals’’. 
(3) CLERICAL AMENDMENTS.— 
(A) IN
GENERAL.—Such section is further amended, 
in the section heading, by inserting ‘‘and members of 
the reserve components of the Armed Forces’’ after 
‘‘veterans’’. 
(B) TABLE OF SECTIONS.—The table of sections at the 
beginning of such subchapter is amended by striking the
H. R. 6395—340 
item relating to section 1720F and inserting the following 
new item: 
‘‘1720F. Comprehensive program for suicide prevention among veterans and mem-
bers of the reserve components of the Armed Forces.’’. 
(b) MENTAL HEALTH TREATMENT FOR INDIVIDUALS WHO SERVED 
IN CLASSIFIED MISSIONS.— 
(1) IN GENERAL.—Section 1720H of such title is amended— 
(A) in subsection (a)— 
(i) in paragraph (1)— 
(I) by striking ‘‘eligible veteran’’ and inserting 
‘‘eligible individual’’; and 
(II) by striking ‘‘the veteran’’ and inserting 
‘‘the individual’’; and 
(ii) in paragraph (3), by striking ‘‘eligible veterans’’ 
and inserting ‘‘eligible individuals’’; 
(B) in subsection (b)— 
(i) by striking ‘‘a veteran’’ and inserting ‘‘an indi-
vidual’’; and 
(ii) by striking ‘‘eligible veteran’’ and inserting 
‘‘eligible individual’’; and 
(C) in subsection (c)— 
(i) in paragraph (2), in the matter preceding 
subparagraph (A), by striking ‘‘The term ‘eligible vet-
eran’ means a veteran’’ and inserting ‘‘The term 
‘eligible individual’ means a veteran or a member of 
the reserve components of the Armed Forces’’; and 
(ii) in paragraph (3), by striking ‘‘eligible veteran’’ 
and inserting ‘‘eligible individual’’. 
(2) CLERICAL AMENDMENTS.— 
(A) IN
GENERAL.—Such section is further amended, 
in the section heading, by inserting ‘‘and members of 
the reserve components of the Armed Forces’’ after 
‘‘veterans’’. 
(B) TABLE OF SECTIONS.—The table of sections at the 
beginning of chapter 17 of such title is amended by striking 
the item relating to section 1720H and inserting the fol-
lowing new item: 
‘‘1720H. Mental health treatment for veterans and members of the reserve compo-
nents of the Armed Forces who served in classified missions.’’. 
SEC. 765. REPORT ON MENTAL HEALTH AND RELATED SERVICES PRO-
VIDED BY DEPARTMENT OF VETERANS AFFAIRS TO MEM-
BERS OF THE ARMED FORCES. 
(a) IN GENERAL.—Not later than one year after the date of 
the enactment of this Act, the Secretary of Veterans Affairs shall 
submit to the Committees on Armed Services and the Committees 
on Veterans’ Affairs of the Senate and the House of Representatives 
a report that includes an assessment of the following: 
(1) The increase, as compared to the day before the date 
of the enactment of this Act, of the number of members of 
the Armed Forces that use readjustment counseling or out-
patient mental health care from the Department of Veterans 
Affairs, disaggregated by State, Vet Center location, and clinical 
care site of the Department, as appropriate. 
(2) The number of members of the reserve components 
of the Armed Forces receiving telemental health care from 
the Department.
H. R. 6395—341 
(3) The increase, as compared to the day before the date 
of the enactment of this Act, of the annual cost associated 
with readjustment counseling and outpatient mental health 
care provided by the Department to members of the reserve 
components of the Armed Forces. 
(4) The changes, as compared to the day before the date 
of the enactment of this Act, in staffing, training, organization, 
and resources required for the Department to offer readjust-
ment counseling and outpatient mental health care to members 
of the reserve components of the Armed Forces. 
(5) Any challenges the Department has encountered in 
providing readjustment counseling and outpatient mental 
health care to members of the reserve components of the Armed 
Forces. 
(b) VET CENTER DEFINED.—In this section, the term ‘‘Vet 
Center’’ has the meaning given that term in section 1712A(h) of 
title 38, United States Code. 
TITLE VIII—ACQUISITION POLICY, AC-
QUISITION MANAGEMENT, AND RE-
LATED MATTERS 
Subtitle A—Acquisition Policy and Management 
Sec. 801. Report on acquisition risk assessment and mitigation as part of Adaptive 
Acquisition Framework implementation. 
Sec. 802. Improving planning, execution, and oversight of life cycle sustainment ac-
tivities. 
Sec. 803. Disclosures for offerors for certain shipbuilding major defense acquisition 
program contracts. 
Sec. 804. Implementation of modular open systems approaches. 
Sec. 805. Congressional notification of termination of a middle tier acquisition pro-
gram. 
Sec. 806. Definition of material weakness for contractor business systems. 
Sec. 807. Space system acquisition and the adaptive acquisition framework. 
Sec. 808. Acquisition authority of the Director of the Joint Artificial Intelligence 
Center. 
Sec. 809. Assessments of the process for developing capability requirements for De-
partment of Defense acquisition programs. 
Subtitle B—Amendments to General Contracting Authorities, Procedures, and 
Limitations 
Sec. 811. Sustainment reform for the Department of Defense. 
Sec. 812. Inclusion of software in Government performance of acquisition functions. 
Sec. 813. Modifications to Comptroller General assessment of acquisition programs 
and related initiatives. 
Sec. 814. Cost or pricing data reporting requirements for Department of Defense 
contracts. 
Sec. 815. Prompt payment of contractors. 
Sec. 816. Documentation pertaining to commercial item determinations. 
Sec. 817. Modification to small purchase threshold exception to sourcing require-
ments for certain articles. 
Sec. 818. Repeal of program for qualified apprentices for military construction con-
tracts. 
Sec. 819. Modifications to mitigating risks related to foreign ownership, control, or 
influence of Department of Defense contractors and subcontractors. 
Sec. 820. Contract closeout authority for services contracts. 
Sec. 821. Revision of proof required when using an evaluation factor for employing 
or subcontracting with members of the Selected Reserve. 
Subtitle C—Provisions Relating to Software and Technology 
Sec. 831. Contract authority for development and demonstration of initial or addi-
tional prototype units.
H. R. 6395—342 
Sec. 832. Extension of pilot program for streamlined awards for innovative tech-
nology programs. 
Sec. 833. Listing of other transaction authority consortia. 
Sec. 834. Pilot program on the use of consumption-based solutions to address soft-
ware-intensive warfighting capability. 
Sec. 835. Balancing security and innovation in software development and acquisi-
tion. 
Sec. 836. Digital modernization of analytical and decision-support processes for 
managing and overseeing Department of Defense acquisition programs. 
Sec. 837. Safeguarding defense-sensitive United States intellectual property, tech-
nology, and other data and information. 
Sec. 838. Comptroller General report on implementation of software acquisition re-
forms. 
Sec. 839. Comptroller General report on intellectual property acquisition and li-
censing. 
Subtitle D—Industrial Base Matters 
Sec. 841. Additional requirements pertaining to printed circuit boards. 
Sec. 842. Report on nonavailability determinations and quarterly national tech-
nology and industrial base briefings. 
Sec. 843. Modification of framework for modernizing acquisition processes to ensure 
integrity of industrial base and inclusion of optical transmission compo-
nents. 
Sec. 844. Expansion on the prohibition on acquiring certain metal products. 
Sec. 845. Miscellaneous limitations on the procurement of goods other than United 
States goods. 
Sec. 846. Improving implementation of policy pertaining to the national technology 
and industrial base. 
Sec. 847. Report and limitation on the availability of funds relating to eliminating 
the gaps and vulnerabilities in the national technology and industrial 
base. 
Sec. 848. Supply of strategic and critical materials for the Department of Defense. 
Sec. 849. Analyses of certain activities for action to address sourcing and industrial 
capacity. 
Sec. 850. Implementation of recommendations for assessing and strengthening the 
manufacturing and defense industrial base and supply chain resiliency. 
Sec. 851. Report on strategic and critical materials. 
Sec. 852. Report on aluminum refining, processing, and manufacturing. 
Subtitle E—Small Business Matters 
Sec. 861. Initiatives to support small businesses in the national technology and in-
dustrial base. 
Sec. 862. Transfer of verification of small business concerns owned and controlled 
by veterans or service-disabled veterans to the Small Business Adminis-
tration. 
Sec. 863. Employment size standard requirements for small business concerns. 
Sec. 864. Maximum award price for sole source manufacturing contracts. 
Sec. 865. Reporting requirement on expenditure amounts for the Small Business 
Innovation Research Program and the Small Business Technology 
Transfer Program. 
Sec. 866. Small businesses in territories of the United States. 
Sec. 867. Eligibility of the Commonwealth of the Northern Mariana Islands for cer-
tain Small Business Administration programs. 
Sec. 868. Past performance ratings of certain small business concerns. 
Sec. 869. Extension of participation in 8(a) program. 
Sec. 870. Compliance of Offices of Small Business and Disadvantaged Business Uti-
lization. 
Sec. 871. Category management training. 
Subtitle F—Other Matters 
Sec. 881. Review of and report on overdue acquisition and cross-servicing agree-
ment transactions. 
Sec. 882. Domestic comparative testing activities. 
Sec. 883. Prohibition on awarding of contracts to contractors that require nondisclo-
sure agreements relating to waste, fraud, or abuse. 
Sec. 884. Program management improvement officers and program management 
policy council. 
Sec. 885. Disclosure of beneficial owners in database for Federal agency contract 
and grant officers. 
Sec. 886. Repeal of pilot program on payment of costs for denied Government Ac-
countability Office bid protests.
H. R. 6395—343 
Sec. 887. Amendments to submissions to Congress relating to certain foreign mili-
tary sales. 
Sec. 888. Revision to requirement to use firm fixed-price contracts for foreign mili-
tary sales. 
Sec. 889. Assessment and enhancement of national security innovation base. 
Sec. 890. Identification of certain contracts relating to construction or maintenance 
of a border wall. 
Sec. 891. Waivers of certain conditions for progress payments under certain con-
tracts during the COVID–19 national emergency. 
Subtitle A—Acquisition Policy and 
Management 
SEC. 801. REPORT ON ACQUISITION RISK ASSESSMENT AND MITIGA-
TION AS PART OF ADAPTIVE ACQUISITION FRAMEWORK 
IMPLEMENTATION. 
(a) IN GENERAL.—Each service acquisition executive shall 
submit to the Secretary of Defense, the Under Secretary of Defense 
for Acquisition and Sustainment, the Under Secretary of Defense 
for Research and Engineering, and the Chief Information Officer 
of the Department of Defense a report on how such service acquisi-
tion executive is, with respect to the risks in acquisition programs 
described in subsection (b)— 
(1) assessing such risks; 
(2) mitigating such risks; and 
(3) reporting within the Department of Defense and to 
Congress on such risks. 
(b) ACQUISITION PROGRAM RISKS.—The risks in acquisition pro-
grams described in this subsection are the following: 
(1) Technical risks in engineering, software, manufacturing 
and testing. 
(2) Integration and interoperability risks, including com-
plications related to systems working across multiple domains 
while using machine learning and artificial intelligence 
capabilities to continuously change and optimize system 
performance. 
(3) Operations and sustainment risks, including as miti-
gated by appropriate sustainment planning earlier in the 
lifecycle of a program, access to technical data, and intellectual 
property rights. 
(4) Workforce and training risks, including consideration 
of the role of contractors as part of the total workforce. 
(5) Supply chain risks, including cybersecurity, foreign con-
trol and ownership of key elements of supply chains, and the 
consequences that a fragile and weakening defense industrial 
base, combined with barriers to industrial cooperation with 
allies and partners, pose for delivering systems and technologies 
in a trusted and assured manner. 
(c) REPORT TO CONGRESS.—Not later than March 31, 2021, 
the Under Secretary of Defense for Acquisition and Sustainment 
shall submit to the congressional defense committees a report 
including— 
(1) the input received from the service acquisition execu-
tives pursuant to subsection (a); and 
(2) the views of the Under Secretary with respect to the 
matters described in paragraphs (1) through (5) of subsection 
(b).
H. R. 6395—344 
SEC. 802. IMPROVING PLANNING, EXECUTION, AND OVERSIGHT OF 
LIFE CYCLE SUSTAINMENT ACTIVITIES. 
(a) PLANNING
FOR LIFE CYCLE SUSTAINMENT.—Section 2337 
of title 10, United States Code, is amended— 
(1) by striking ‘‘major weapon system’’ each place it appears 
and inserting ‘‘covered system’’; 
(2) by striking ‘‘major weapon systems’’ each place it 
appears and inserting ‘‘covered systems’’; 
(3) by striking ‘‘weapon system’’ each place it appears and 
inserting ‘‘covered system’’; 
(4) by redesignating subsections (b) and (c) as subsections 
(c) and (d), respectively; 
(5) by inserting after subsection (a) the following new sub-
section: 
‘‘(b) LIFE CYCLE SUSTAINMENT PLAN.—Before granting Mile-
stone B approval (or the equivalent), the milestone decision 
authority shall ensure that each covered system has an approved 
life cycle sustainment plan. The life cycle sustainment plan shall 
include— 
‘‘(1) a comprehensive product support strategy; 
‘‘(2) performance goals, including key performance param-
eters for sustainment, key system attributes of the covered 
system, and other appropriate metrics; 
‘‘(3) an approved life-cycle cost estimate for the covered 
system; 
‘‘(4) affordability constraints and key cost factors that could 
affect the operating and support costs of the covered system; 
‘‘(5) sustainment risks and proposed mitigation plans for 
such risks; 
‘‘(6) engineering and design considerations that support 
cost-effective sustainment of the covered system; 
‘‘(7) a technical data and intellectual property management 
plan for product support; and 
‘‘(8) major maintenance and overhaul requirements that 
will be required during the life cycle of the covered system.’’; 
(6) in subsection (c)(2), as so redesignated— 
(A) by amending subparagraph (A) to read as follows: 
‘‘(A) develop, update, and implement a life cycle 
sustainment plan described in subsection (b);’’; 
(B) in subparagraph (B), by striking ‘‘use’’ and inserting 
‘‘ensure the life cycle sustainment plan is informed by’’; 
and 
(C) in subparagraph (C), by inserting ‘‘and life cycle 
sustainment plan’’ after ‘‘product support strategy’’;’’; and 
(7) in subsection (d), as so redesignated— 
(A) by amending paragraph (5) to read as follows: 
‘‘(5) COVERED SYSTEM.—The term ‘covered system’ means— 
‘‘(A) a major defense acquisition program as defined 
in section 2430 of this title; or 
‘‘(B) an acquisition program or project that is carried 
out using the rapid fielding or rapid prototyping acquisition 
pathway under section 804 of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114– 
92; 10 U.S.C. 2302 note) that is estimated by the Secretary 
of Defense to require an eventual total expenditure 
described in section 2430(a)(1)(B).’’; and 
(B) by adding at the end the following new paragraphs:
H. R. 6395—345 
‘‘(6) MILESTONE
B
APPROVAL.—The term ‘Milestone B 
approval’ has the meaning given that term in section 2366(e)(7) 
of this title. 
‘‘(7) MILESTONE DECISION AUTHORITY.—The term ‘milestone 
decision authority’ has the meaning given in section 2431a(e)(5) 
of this title.’’. 
(b) 
ADDITIONAL
REQUIREMENTS
BEFORE
MILESTONE
B 
APPROVAL.—Section 2366b of title 10, United States Code is 
amended— 
(1) in subsection (a)(3)— 
(A) in subparagraph (N), by striking ‘‘and’’ at the end; 
(B) in subparagraph (O), by striking the period at 
the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new subpara-
graph: 
‘‘(P) has approved the life cycle sustainment plan 
required under section 2337(b) of this title.’’; and 
(2) in subsection (c)(1)— 
(A) by redesignating subparagraph (H) as subpara-
graph (I); and 
(B) by inserting after subparagraph (G) the following 
new subparagraph: 
‘‘(H) A summary of the life cycle sustainment plan 
required under section 2337 of this title.’’. 
(c) RECURRING SUSTAINMENT REVIEWS.—Section 2441 of title 
10, United States Code, is amended— 
(1) in subsection (a)— 
(A) in the first sentence— 
(i) by striking ‘‘major weapon system’’ and 
inserting ‘‘covered system’’; 
(ii) by striking ‘‘and throughout the life cycle of 
the weapon system’’ and inserting ‘‘, and every five 
years thereafter throughout the life cycle of the covered 
system,’’; and 
(iii) by striking ‘‘costs of the weapon system’’ and 
inserting ‘‘costs of the covered system’’; and 
(B) by striking the second sentence; 
(2) in subsection (b)— 
(A) in the matter preceding paragraph (1), by inserting 
‘‘assess execution of the life cycle sustainment plan of the 
covered system and’’ before ‘‘include the following ele-
ments:’’; and 
(B) by adding at the end the following new paragraph: 
‘‘(10) As applicable, information regarding any decision to 
restructure the life cycle sustainment plan for a covered system 
or any other action that will lead to critical operating and 
support cost growth.’’; and 
(3) by adding at the end the following new subsections: 
‘‘(d) SUBMISSION TO CONGRESS.—(1) Not later than September 
30 of each fiscal year, the Secretary of each military department 
shall annually submit to the congressional defense committees the 
sustainment reviews required by this section for such fiscal year. 
‘‘(2) Each submission under paragraph (1) shall be submitted 
in unclassified form, but may include a classified annex. 
‘‘(3) For a covered system with critical operating and support 
cost growth, such submission shall include a remediation plan to
H. R. 6395—346 
reduce operating and support costs or a certification by the Sec-
retary concerned that such critical operating and support cost 
growth is necessary to meet national security requirements. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) COVERED
SYSTEM.—The term ‘covered system’ shall 
have the meaning given in section 2337 of this title. 
‘‘(2) CRITICAL
OPERATING
AND
SUPPORT
COST
GROWTH.— 
The term ‘critical operating and support cost growth’ means 
operating and support cost growth— 
‘‘(A) of at least 25 percent more than the estimate 
documented in the most recent independent cost estimate 
for the covered system; or 
‘‘(B) of at least 50 percent more than the estimate 
documented in the original Baseline Estimate (as defined 
in section 2435(d) of this title) for the covered system.’’. 
(d) COMPTROLLER GENERAL REVIEW.— 
(1) IN GENERAL.—The Comptroller General of the United 
States shall— 
(A) annually, select 10 covered systems for which a 
sustainment review has been submitted under section 
2441(d) of title 10, United States Code; and 
(B) submit to the congressional defense committees 
an assessment of the steps taken by Secretaries concerned 
to quantify and address critical operating and support cost 
growth with respect to such covered systems. 
(2) CONTENTS.—Each assessment described in paragraph 
(1) shall include— 
(A) an evaluation of— 
(i) the causes of critical operating and support 
cost growth for each such covered system; 
(ii) the extent to which the Secretary concerned 
has mitigated critical operating and support cost 
growth of such covered system; and 
(iii) any other issues related to potential critical 
operating and support cost growth the Comptroller 
General determines appropriate; and 
(B) any recommendations, including steps the Secre-
taries concerned could take to reduce critical operating 
and support cost growth for covered systems and lessons 
learned to be incorporated in covered system acquisitions. 
(3) TERMINATION.—The requirement under this subsection 
shall terminate on September 30, 2025. 
(4) DEFINITIONS.—In this subsection, the terms ‘‘covered 
system’’ and ‘‘critical operating and support cost growth’’ have 
the meanings given, respectively, in section 2441 of title 10, 
United States Code. 
(e) REPORT ON SUSTAINMENT PLANNING PROCESSES FOR NON- 
MAJOR DEFENSE ACQUISITION PROGRAM ACTIVITIES.—Not later than 
December 31, 2021, the Secretary of Defense shall submit to the 
congressional defense committees a report on the process for 
ensuring that timely and robust sustainment planning processes 
are in place for all acquisition activities. The report shall include 
a discussion of— 
(1) sustainment planning processes for each— 
(A) acquisition program or project that is carried out 
using the rapid fielding or rapid prototyping acquisition 
pathway under section 804 of the National Defense
H. R. 6395—347 
Authorization Act for Fiscal Year 2016 (Public Law 114– 
92; 10 U.S.C. 2302 note); 
(B) information technology and software program; 
(C) services contract, including each services contract 
for information technologies and systems; and 
(D) acquisition activity other than major defense 
acquisition programs (as defined in section 2430 of title 
10, United States Code), as determined by the Secretary 
of Defense; 
(2) 
methods 
to 
identify 
responsible 
individuals 
for 
sustainment planning; 
(3) required elements of sustainment planning; 
(4) timing of sustainment planning activities in the acquisi-
tion process; 
(5) measures and metrics to assess compliance with 
sustainment plans; and 
(6) actions to continuously monitor, create incentives for, 
and ensure compliance with sustainment plans. 
SEC. 803. DISCLOSURES FOR OFFERORS FOR CERTAIN SHIPBUILDING 
MAJOR DEFENSE ACQUISITION PROGRAM CONTRACTS. 
(a) IN GENERAL.—Chapter 137 of title 10, United States Code, 
is amended by adding at the end the following new section: 
‘‘§ 2339c. Disclosures for offerors for certain shipbuilding 
major defense acquisition program contracts 
‘‘(a) IN GENERAL.—Any covered offeror seeking to be awarded 
a shipbuilding construction contract as part of a major defense 
acquisition program with funds from the Shipbuilding and Conver-
sion, Navy account shall disclose along with the offer and any 
subsequent revisions of the offer (including the final proposal revi-
sion offer) if any part of the planned contract performance will 
or is expected to include foreign government subsidized perform-
ance, foreign financing, foreign financial guarantees, or foreign tax 
concessions. 
‘‘(b) REQUIREMENTS.—A disclosure required under subsection 
(a) shall be made in a form prescribed by the Secretary of the 
Navy and shall include a specific description of the extent to which 
the planned contract performance will include, with or without 
contingencies, any foreign government subsidized performance, for-
eign financing, foreign financial guarantees, or foreign tax conces-
sions. 
‘‘(c) CONGRESSIONAL NOTIFICATION.—Not later than 5 days after 
awarding a contract described under subsection (a), the Secretary 
of the Navy shall notify the congressional defense committees and 
summarize the disclosure provided under such subsection. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) COVERED OFFEROR.—The term ‘covered offeror’ means 
any offeror that requires or may reasonably be expected to 
require, during the period of performance on a shipbuilding 
construction contract described in subsection (a), a method to 
mitigate or negate foreign ownership under section 2004.34(f)(6) 
of title 32, Code of Federal Regulations. 
‘‘(2) FOREIGN GOVERNMENT SUBSIDIZED PERFORMANCE.—The 
term ‘foreign government subsidized performance’ means any 
financial support, materiel, services, or guarantees of support,
H. R. 6395—348 
services, supply, performance, or intellectual property conces-
sions, that may be provided to or for the covered offeror or 
the customer of the offeror by a foreign government or entity 
effectively owned or controlled by a foreign government, which 
may have the effect of supplementing, supplying, servicing, 
or reducing the cost or price of an end item, or supporting, 
financing in whole or in part, or guaranteeing contract perform-
ance by the offeror. 
‘‘(3) MAJOR
DEFENSE
ACQUISITION
PROGRAM.—The term 
‘major defense acquisition program’ has the meaning given 
the term in section 2430 of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 137 of title 10, United States Code, is amended 
by inserting after the item relating to section 2339b the following 
new item: 
‘‘2339c. Disclosures for offerors for certain shipbuilding major defense acquisition 
program contracts.’’. 
SEC. 
804. 
IMPLEMENTATION 
OF 
MODULAR 
OPEN 
SYSTEMS 
APPROACHES. 
(a) REQUIREMENTS FOR INTERFACE DELIVERY.— 
(1) IN GENERAL.—Not later than one year after the date 
of the enactment of this Act, the Under Secretary of Defense 
for Acquisition and Sustainment, in coordination with the Joint 
All-Domain Command and Control cross-functional team and 
the Director for Command, Control, Communications, and Com-
puters/Cyber, shall issue regulations and guidance applicable 
to the military departments, Defense Agencies, Department 
of Defense Field Activities (as such terms are defined, respec-
tively, in section 101 of title 10, United States Code), and 
combatant commands, as appropriate, to— 
(A) facilitate the Department of Defense’s access to 
and utilization of modular system interfaces; 
(B) fully realize the intent of chapter 144B of title 
10, United States Code, by facilitating the implementation 
of modular open system approaches across major defense 
acquisition programs (as defined in section 2430 of title 
10, United States Code) and other relevant acquisition 
programs, including in the acquisition and sustainment 
of weapon systems, platforms, and components for which 
no common interface standard has been established, to 
enable communication between such weapon systems, plat-
forms, and components; and 
(C) advance the efforts of the Department to generate 
diverse and recomposable kill chains. 
(2) ELEMENTS.—The regulations and guidance required 
under paragraph (1) shall include requirements that— 
(A) the program officer for each weapon system 
characterizes, in the acquisition strategy required under 
section 2431a of title 10, United States Code or in other 
documentation, the desired modularity of the weapon 
system for which the program officer is responsible, 
including— 
(i) identification of— 
(I) the modular systems that comprise the 
weapon system;
H. R. 6395—349 
(II) the information that should be commu-
nicated between individual modular systems (such 
as tracking and targeting data or command and 
control instructions); and 
(III) the desired function of the communication 
between modular systems (such as fire control 
functions); and 
(ii) a default configuration specifying which mod-
ular systems should communicate with other modular 
systems, including modular systems of other weapon 
systems; 
(B) each relevant Department of Defense contract 
entered into after the date on which the regulations and 
guidance required under paragraph (1) are implemented 
includes requirements for the delivery of modular system 
interfaces for modular systems deemed relevant in the 
acquisition strategy or documentation referred to in 
subparagraph (A), including— 
(i) software-defined interface syntax and prop-
erties, specifically governing how values are validly 
passed and received between major subsystems and 
components, in machine-readable format; 
(ii) a machine-readable definition of the relation-
ship between the delivered interface and existing 
common standards or interfaces available in the inter-
face repositories established pursuant to subsection (c); 
and 
(iii) documentation with functional descriptions of 
software-defined 
interfaces, 
conveying 
semantic 
meaning of interface elements, such as the function 
of a given interface field; 
(C) the relevant program offices, including those 
responsible for maintaining and upgrading legacy sys-
tems— 
(i) that have not characterized the desired 
modularity of the systems nevertheless meet the 
requirements of paragraph (2)(A), if the program offi-
cers make an effort, to the extent practicable, to update 
the acquisition strategies required under section 2431a 
of title 10, United States Code, or to develop or update 
other relevant documentation; and 
(ii) that have awarded contracts that do not include 
the requirements specified in subparagraph (B) of para-
graph (2) nevertheless acquire, to the extent prac-
ticable, the items specified in clauses (i) through (iii) 
of such subparagraph, either through contractual 
updates, separate negotiations or contracts, or program 
management mechanisms; and 
(D) the relevant program officers deliver modular 
system interfaces and the associated documentation to at 
least one of the repositories established pursuant to sub-
section (c). 
(3) APPLICABILITY OF REGULATIONS AND GUIDANCE.— 
(A) APPLICABILITY.—The regulations and guidance 
required under paragraph (1) shall apply to any program 
office responsible for the prototyping, acquisition, or 
sustainment of a new or existing weapon system.
H. R. 6395—350 
(B) EXTENSION
OF
SCOPE.—Not earlier than 1 year 
before, and not later than 2 years after the regulations 
and guidance required under paragraph (1) are issued for 
weapon systems, the Under Secretary of Defense for 
Acquisition and Sustainment may extend such regulations 
and guidance to apply to software-based non-weapon sys-
tems, including business systems and cybersecurity sys-
tems. 
(4) INCLUSION OF COMPONENTS.—For the purposes of para-
graph (2)(A), each component that meets the following require-
ments shall be treated as a modular system: 
(A) A component that is able to execute without 
requiring coincident execution of other weapon systems 
or components and can communicate across component 
boundaries and through interfaces. 
(B) A component that can be separated from and 
recombined with other weapon systems or components to 
achieve various effects, missions, or capabilities. 
(C) A component that is covered by a unique contract 
line item. 
(5) MACHINE-READABLE
DEFINITION.—Where appropriate 
and available, the requirement in paragraph (2)(B)(ii) for a 
machine-readable definition may be satisfied by using a covered 
technology. 
(b) EXTENSION
OF MODULAR OPEN SYSTEMS APPROACH
AND 
RIGHTS IN INTERFACE SOFTWARE.— 
(1) REQUIREMENT FOR MODULAR OPEN SYSTEM APPROACH.— 
Section 2446a of title 10, United States Code, is amended— 
(A) in subsection (a), by adding at the end the following: 
‘‘Other defense acquisition programs shall also be designed 
and developed, to the maximum extent practicable, with 
a modular open system approach to enable incremental 
development and enhance competition, innovation, and 
interoperability.’’; 
(B) in subsection (b)— 
(i) in paragraph (1)— 
(I) in subparagraph (A), by striking ‘‘major 
system interfaces’’ and all that follows and 
inserting ‘‘modular system interfaces between 
major systems, major system components and mod-
ular systems;’’; 
(II) in subparagraph (B), by striking ‘‘major 
system interfaces’’ and all that follows and 
inserting the following: ‘‘that relevant modular 
system interfaces— 
‘‘(i) comply with, if available and suitable, widely 
supported and consensus-based standards; or 
‘‘(ii) are delivered pursuant to the requirements 
established in subsection (a)(2)(B) of section 804 of 
the William M. (Mac) Thornberry National Defense 
Authorization Act for Fiscal Year 2021, including the 
delivery of— 
‘‘(I) software-defined interface syntax and 
properties, specifically governing how values are 
validly passed and received between major sub-
systems and components, in machine-readable for-
mat;
H. R. 6395—351 
‘‘(II) a machine-readable definition of the rela-
tionship between the delivered interface and 
existing common standards or interfaces available 
in Department interface repositories; and 
‘‘(III) documentation with functional descrip-
tions of software-defined interfaces, conveying 
semantic meaning of interface elements, such as 
the function of a given interface field;’’; and 
(III) in subparagraph (C), by inserting ‘‘and 
modular systems’’ after ‘‘severable major system 
components’’; 
(ii) in paragraph (3)(A), by striking ‘‘well-defined 
major system interfaces’’ and inserting ‘‘modular 
system interfaces’’; 
(iii) by amending paragraph (4) to read as follows: 
‘‘(4) The term ‘modular system interface’ means a shared 
boundary between major systems, major system components, 
or modular systems, defined by various physical, logical, and 
functional characteristics, such as electrical, mechanical, fluidic, 
optical, radio frequency, data, networking, or software ele-
ments.’’; 
(iv) by redesignating paragraphs (5) through (8) 
as paragraphs (6) through (9), respectively; and 
(v) by inserting after paragraph (4) the following 
new paragraph: 
‘‘(5) The term ‘modular system’ refers to a weapon system 
or weapon system component that— 
‘‘(A) is able to execute without requiring coincident 
execution of other specific weapon systems or components; 
‘‘(B) can communicate across component boundaries 
and through interfaces; and 
‘‘(C) functions as a module that can be separated, 
recombined, and connected with other weapon systems or 
weapon system components in order to achieve various 
effects, missions, or capabilities.’’. 
(2) RIGHTS IN TECHNICAL DATA.— 
(A) IN
GENERAL.—Section 2320 of title 10, United 
States Code, is amended— 
(i) in subsection (a)(2), by amending subparagraph 
(G) to read as follows: 
‘‘(G) MODULAR
SYSTEM
INTERFACES
DEVELOPED
EXCLU-
SIVELY AT PRIVATE EXPENSE OR WITH MIXED FUNDING.—Notwith-
standing subparagraphs (B) and (E), the United States shall 
have government purpose rights in technical data pertaining 
to a modular system interface developed exclusively at private 
expense or in part with Federal funds and in part at private 
expense and used in a modular open system approach pursuant 
to section 2446a of this title, except in any case in which 
the Secretary of Defense determines that negotiation of dif-
ferent rights in such technical data would be in the best interest 
of the United States. Such modular system interface shall be 
identified in the contract solicitation and the contract. For 
technical data pertaining to a modular system interface devel-
oped exclusively at private expense for which the United States 
asserts government purpose rights, the Secretary of Defense 
shall negotiate with the contractor the appropriate and reason-
able compensation for such technical data.’’; and
H. R. 6395—352 
(ii) in subsection (h), by striking ‘‘, ‘major system 
interface’ ’’ and inserting ‘‘, ‘modular system interface’ ’’. 
(B) REGULATIONS.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall update the regulations required by section 2320(a)(1) 
of title 10, United States Code, to reflect the amendments 
made by this paragraph. 
(c) INTERFACE REPOSITORIES.— 
(1) ESTABLISHMENT.—Not later than 90 days after the date 
of the enactment of this Act, the Under Secretary of Defense 
for Acquisition and Sustainment shall— 
(A) direct the Secretaries concerned and the heads 
of other appropriate Department of Defense components 
to establish and maintain repositories for interfaces, syntax 
and 
properties, 
documentation, 
and 
communication 
implementations delivered pursuant to the requirements 
established under subsection (a)(2)(B); 
(B) establish and maintain a comprehensive index of 
interfaces, syntax and properties, documentation, and 
communication implementations delivered pursuant to the 
requirements established under subsection (a)(2)(B) and 
maintained in the repositories required under subpara-
graph (A); and 
(C) if practicable, establish and maintain an alternate 
reference repository of interfaces, syntax and properties, 
documentation, and communication implementations deliv-
ered pursuant to the requirements established under sub-
section (a)(2)(B). 
(2) DISTRIBUTION OF INTERFACES.— 
(A) IN
GENERAL.—Consistent with the requirements 
of section 2320 of title 10, United States Code, the Under 
Secretary of Defense for Acquisition and Sustainment shall, 
in coordination with the Director of the Defense Standard-
ization Program Office, use the index and repositories 
established pursuant to paragraph (1) to provide access 
to interfaces and relevant documentation to authorized Fed-
eral Government and non-Governmental entities. 
(B) NON-GOVERNMENT RECIPIENT USE LIMITS.—A non- 
Governmental entity that receives access under subpara-
graph (A) may not further release, disclose, or use such 
data except as authorized. 
(d) SYSTEM
OF
SYSTEMS
INTEGRATION
TECHNOLOGY
AND 
EXPERIMENTATION.— 
(1) DEMONSTRATION AND ASSESSMENT.— 
(A) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Director for Com-
mand, Control, Communications, and Computers/Cyber and 
the Chief Information Officer of the Department of Defense, 
acting through the Joint All-Domain Command and Control 
cross-functional team, shall conduct demonstrations and 
complete an assessment of the technologies developed 
under the System of Systems Integration Technology and 
Experimentation 
program 
of 
the 
Defense 
Advanced 
Research Projects Agency, including a covered technology, 
and the applicability of any such technologies to the Joint 
All-Domain Command and Control architecture.
H. R. 6395—353 
(B) COVERAGE.—The demonstrations and assessment 
required under subparagraph (A) shall include— 
(i) at least three demonstrations of the use of 
a covered technology to create, under constrained 
schedules and budgets, novel kill chains involving pre-
viously incompatible weapon systems, sensors, and 
command, control, and communication systems from 
multiple military services in cooperation with United 
States Indo-Pacific Command or United States Euro-
pean Command; 
(ii) an evaluation as to whether the communica-
tions enabled via a covered technology are sufficient 
for military missions and whether such technology 
results in any substantial performance loss in commu-
nication between systems, major subsystems, and 
major components; 
(iii) an evaluation as to whether a covered tech-
nology obviates the need to develop, impose, and main-
tain strict adherence to common communication and 
interface standards for weapon systems; 
(iv) the appropriate roles and responsibilities of 
the Chief Information Officer of the Department of 
Defense, the Under Secretary of Defense for Acquisition 
and Sustainment, the heads of the combatant com-
mands, 
the 
Secretaries 
concerned, 
the 
Defense 
Advanced Research Projects Agency, and the defense 
industrial base in using and maintaining a covered 
technology to generate diverse and recomposable kill 
chains as part of the Joint All-Domain Command and 
Control architecture; 
(v) for at least one of the demonstrations conducted 
under clause (i), demonstration of the use of technology 
developed under the High-Assurance Cyber Military 
Systems program of the Defense Advanced Research 
Projects Agency to secure legacy weapon systems and 
command and control capabilities while facilitating 
interoperability; 
(vi) an evaluation of how the technology referred 
to in clause (v) and covered technology should be used 
to improve cybersecurity and interoperability across 
critical weapon systems and command and control 
capabilities across the joint forces; and 
(vii) coordination with the program manager for 
the Time Sensitive Targeting Defeat program under 
the Under Secretary of Defense for Research and 
Engineering and the Under Secretary of Defense for 
Intelligence and Security. 
(2) CHIEF INFORMATION OFFICER ASSESSMENT.— 
(A) IN GENERAL.—The Chief Information Officer for 
the Department of Defense, in coordination with the Prin-
cipal Cyber Advisor to the Secretary of Defense and the 
Director of the Cybersecurity Directorate of the National 
Security Agency, shall assess the technologies developed 
under the System of Systems Integration Technology and 
Experimentation 
program 
of 
the 
Defense 
Advanced 
Research Projects Agency, including the covered technology,
H. R. 6395—354 
and applicability of such technology to the business systems 
and cybersecurity tools of the Department. 
(B) 
COVERAGE.—The 
assessment 
required 
under 
subparagraph (A) shall include— 
(i) an evaluation as to how the technologies 
referred to in such subparagraph could be used in 
conjunction with or instead of existing cybersecurity 
standards, frameworks, and technologies designed to 
enable communication between, and coordination of, 
cybersecurity tools; 
(ii) as appropriate, demonstrations by the Chief 
Information Office of the use of such technologies in 
enabling communication between, and coordination of, 
previously incompatible cybersecurity tools; and 
(iii) as appropriate, demonstrations of the use of 
such technologies in enabling communication between 
previously incompatible business systems. 
(3) SUSTAINMENT OF CERTAIN ENGINEERING RESOURCES AND 
CAPABILITIES.—During the period the demonstrations and 
assessments required under this subsection are conducted, and 
thereafter to the extent required to execute the activities 
directed by the Joint All-Domain Command and Control cross- 
functional team, the Joint All-Domain Command and Control 
cross-functional team shall sustain the System of Systems Tech-
nology Integration Tool Chain for Heterogeneous Electronic 
Systems engineering resources and capabilities developed by 
the Defense Advanced Research Projects Agency. 
(4) TRANSFER OF RESPONSIBILITY.—Not earlier than 1 year 
before, and not later than 2 years after the date of the enact-
ment of this Act, the Secretary of Defense may transfer respon-
sibility for maintaining the engineering resources and capabili-
ties described in paragraph (3) to a different organization within 
the Department. 
(e) OPEN STANDARDS.—Nothing in this section shall be con-
strued as requiring, preventing, or interfering with the use or 
application of any given communication standard or interface. The 
communication described in subsection (a)(2)(A) may be accom-
plished by using existing open standards, by the creation and use 
of new open standards, or through other approaches, provided that 
such standards meet the requirements of subsection (a)(2)(B). 
(f) DEFINITIONS.—In this section: 
(1) The term ‘‘covered technology’’ means the domain-spe-
cific programming language for interface field transformations 
and its associated compilation toolchain (commonly known as 
the ‘‘System of Systems Technology Integration ToolChain for 
Heterogeneous Electronic Systems’’) developed under the 
Defense Advanced Research Projects Agency System of Systems 
Integration Technology and Experimentation program, or any 
other technology that is functionally equivalent. 
(2) The term ‘‘desired modularity’’ means the desired degree 
to which weapon systems, components within a weapon system, 
and components across weapon systems can function as modules 
that can communicate across component boundaries and 
through interfaces and can be separated and recombined to 
achieve various effects, missions, or capabilities, as determined 
by the program officer for such weapon system.
H. R. 6395—355 
(3) The term ‘‘machine-readable format’’ means a format 
that can be easily processed by a computer without human 
intervention. 
(4) The terms ‘‘major system’’, ‘‘major system component’’, 
‘‘modular open system approach’’, ‘‘modular system’’, ‘‘modular 
system interface’’, and ‘‘weapon system’’ have the meanings 
given such terms, respectively, in section 2446a of title 10, 
United States Code. 
SEC. 805. CONGRESSIONAL NOTIFICATION OF TERMINATION OF A 
MIDDLE TIER ACQUISITION PROGRAM. 
Section 804 of the National Defense Authorization Act for Fiscal 
Year 2016 (10 U.S.C. 2302 note) is amended by adding at the 
end the following new subsection: 
‘‘(e) REPORT.—Not later than 30 days after the date of termi-
nation of an acquisition program commenced using the authority 
under this section, the Secretary of Defense shall submit to Con-
gress a notification of such termination. Such notice shall include— 
‘‘(1) the initial amount of a contract awarded under such 
acquisition program; 
‘‘(2) the aggregate amount of funds awarded under such 
contract; and 
‘‘(3) written documentation of the reason for termination 
of such acquisition program.’’. 
SEC. 806. DEFINITION OF MATERIAL WEAKNESS FOR CONTRACTOR 
BUSINESS SYSTEMS. 
Section 893 of the Ike Skelton National Defense Authorization 
Act for Fiscal Year 2011 (Public Law 111–383; 10 U.S.C. 2302 
note) is amended— 
(1) by striking ‘‘significant deficiencies’’ both places it 
appears and inserting ‘‘material weaknesses’’; 
(2) by striking ‘‘significant deficiency’’ each place it appears 
and inserting ‘‘material weakness’’; and 
(3) by amending subsection (g)(4) to read as follows: 
‘‘(4) The term ‘material weakness’ means a deficiency or 
combination of deficiencies in the internal control over informa-
tion in contractor business systems, such that there is a reason-
able possibility that a material misstatement of such informa-
tion will not be prevented, or detected and corrected, on a 
timely basis. For purposes of this paragraph, a reasonable 
possibility exists when the likelihood of an event occurring— 
‘‘(A) is probable; or 
‘‘(B) is more than remote but less than likely.’’. 
SEC. 807. SPACE SYSTEM ACQUISITION AND THE ADAPTIVE ACQUISI-
TION FRAMEWORK. 
(a) SERVICE ACQUISITION EXECUTIVE FOR SPACE SYSTEMS AND 
PROGRAMS.—Before implementing the application of the adaptive 
acquisition framework to a Space Systems Acquisition pathway 
described in subsection (c), there shall be within the Department 
of the Air Force an individual serving as the Service Acquisition 
Executive of the Department of the Air Force for Space Systems 
and Programs as required under section 957 of the National Defense 
Authorization Act for Fiscal Year 2020 (Public Law 116–92; 133 
Stat. 1566; 10 U.S.C. 9016 note). 
(b) MILESTONE DECISION AUTHORITY FOR UNITED STATES SPACE 
FORCE.—
H. R. 6395—356 
(1) PROGRAM EXECUTIVE OFFICER.—The Service Acquisition 
Executive for Space Systems and Programs of the United States 
Space Force may further delegate authority to an appropriate 
program executive officer to serve as the milestone decision 
authority for major defense acquisition programs of the United 
States Space Force. 
(2) PROGRAM
MANAGER.—The program executive officer 
assigned under paragraph (1) may further delegate authority 
over major systems to an appropriate program manager. 
(c) ADAPTIVE ACQUISITION FRAMEWORK APPLICATION TO SPACE 
ACQUISITION.— 
(1) IN GENERAL.—The Secretary of Defense shall take such 
actions necessary to ensure the adaptive acquisition framework 
(as described in Department of Defense Instruction 5000.02, 
‘‘Operation of the Adaptive Acquisition Framework’’) includes 
one or more pathways specifically tailored for Space Systems 
Acquisition in order to achieve faster acquisition, improve 
synchronization and more rapid fielding of critical end-to-end 
capabilities (including by using new commercial capabilities 
and services), while maintaining accountability for effective 
programs that are delivered on time and on budget. 
(2) GOAL.—The goal of the application of the adaptive 
acquisition framework to a Space Systems Acquisition pathway 
shall be to quickly and effectively acquire end-to-end space 
warfighting capabilities needed to address the requirements 
of the national defense strategy (as defined under section 113(g) 
of title 10, United States Code). 
(d) REPORT.— 
(1) IN GENERAL.—Not later than May 15, 2021, the Sec-
retary of Defense shall submit to the congressional defense 
committees a report on the application of the adaptive acquisi-
tion framework to any Space Systems Acquisition pathway 
established under subsection (a) that includes the following: 
(A) Proposed United States Space Force budget line 
items for fiscal year 2022, including— 
(i) a comparison with budget line items for any 
major defense acquisition programs, middle tier 
acquisition programs, covered software programs, and 
major systems of the United States Space Force for 
three previous fiscal years; 
(ii) existing and recommended measures to ensure 
sufficient transparency and accountability related to 
the performance of the Space Systems Acquisition 
pathway; and 
(iii) proposed mechanisms to enable insight into 
the funding prioritization process and significant 
funding changes, including the independent cost esti-
mate basis and full funding considerations for any 
major defense acquisition programs, middle tier 
acquisition programs, covered software programs, and 
major systems procured by the United States Space 
Force. 
(B) Proposed revised, flexible, and streamlined options 
for joint requirements validation in order to be more 
responsive and innovative, while ensuring the ability of
H. R. 6395—357 
the Joint Chiefs of Staff to ensure top-level system require-
ments are properly prioritized to address joint-warfighting 
needs. 
(C) A list of acquisition programs of the United States 
Space Force for which multiyear contracting authority 
under sections 2306b or 2306c of title 10, United States 
Code, is recommended. 
(D) A list of space systems acquisition programs for 
which alternative acquisition pathways may be used. 
(E) Policies or procedures for potential new pathways 
in the application of the adaptive acquisition framework 
to a Space Systems Acquisition with specific acquisition 
key decision points and reporting requirements for develop-
ment, fielding, and sustainment activities that meet the 
requirements of the adaptive acquisition framework. 
(F) An analysis of the need for updated determination 
authority for procurement of useable end items that are 
not weapon systems. 
(G) Policies and a governance structure, for both the 
Office of the Secretary of Defense and each military depart-
ment, for a separate United States Space Force budget 
topline, corporate process, and portfolio management 
process. 
(H) An analysis of the risks and benefits of the delega-
tion of the authority of the head of contracting activity 
authority to the Chief of Space Operations in a manner 
that would not expand the operations of the United States 
Space Force. 
(2) COMPTROLLER
GENERAL
REVIEW.—Not later than 60 
days after the submission of the report required under para-
graph (1), the Comptroller General of the United States shall 
review such report and submit to the congressional defense 
committees an analysis and recommendations based on such 
report. 
(e) DEFINITIONS.—In this section: 
(1) COVERED SOFTWARE PROGRAM.—The term ‘‘covered soft-
ware program’’ means an acquisition program or project that 
is carried out using the software acquisition pathway estab-
lished under section 800 of the National Defense Authorization 
Act for Fiscal Year 2020 (Public Law 116–92; 133 Stat. 1478; 
10 U.S.C. 2223a note). 
(2) MAJOR
DEFENSE
ACQUISITION
PROGRAM.—The term 
‘‘major defense acquisition program’’ has the meaning given 
in section 2430 of title 10, United States Code. 
(3) MAJOR
SYSTEM.—The term ‘‘major system’’ has the 
meaning given in section 2302 of title 10, United States Code. 
(4) MIDDLE TIER ACQUISITION PROGRAM.—The term ‘‘middle 
tier acquisition program’’ means an acquisition program or 
project that is carried out using the rapid fielding or rapid 
prototyping acquisition pathway under section 804 of the 
National Defense Authorization Act for Fiscal Year 2016 (Public 
Law 114–92; 10 U.S.C. 2302 note). 
(5) MILESTONE DECISION AUTHORITY.—The term ‘‘milestone 
decision authority’’ has the meaning given in section 2431a 
of title 10, United States Code. 
(6) PROGRAM EXECUTIVE OFFICER; PROGRAM MANAGER.—The 
terms ‘‘program executive officer’’ and ‘‘program manager’’ have
H. R. 6395—358 
the meanings given those terms, respectively, in section 1737 
of title 10, United States Code. 
SEC. 808. ACQUISITION AUTHORITY OF THE DIRECTOR OF THE JOINT 
ARTIFICIAL INTELLIGENCE CENTER. 
(a) AUTHORITY.—The Secretary of Defense shall delegate to 
the Director of the Joint Artificial Intelligence Center the acquisi-
tion authority to exercise the functions of a head of an agency 
(as defined in section 2302 of title 10, United States Code) with 
respect to appropriate acquisition activities of the Center. 
(b) JAIC ACQUISITION EXECUTIVE.— 
(1) IN GENERAL.—The staff of the Director shall include 
an acquisition executive who shall be responsible for the super-
vision of appropriate acquisition activities under subsection 
(a). Subject to the authority, direction, and control of the 
Director of the Center, the acquisition executive shall have 
the authority— 
(A) to negotiate memoranda of agreement with any 
element of the Department of Defense to carry out the 
acquisition of technologies, services, and capabilities devel-
oped or identified by the Center; 
(B) to supervise the acquisition of technologies, serv-
ices, and capabilities to support the mission of the Center; 
(C) to represent the Center in discussions with the 
Secretaries concerned regarding acquisition programs 
relating to such appropriate acquisition activities for which 
the Center is involved; and 
(D) to work with the Secretaries concerned to ensure 
that the Center is appropriately represented in any joint 
working group or integrated product team regarding 
acquisition programs relating to such appropriate activities 
for which the Center is involved. 
(2) DELIVERY OF ACQUISITION SOLUTIONS.—The acquisition 
executive of the Center shall be— 
(A) responsible to the Director for rapidly delivering 
capabilities to meet validated requirements; 
(B) subordinate to the Under Secretary of Defense 
for Acquisition and Sustainment in matters of acquisition; 
and 
(C) included on the distribution list for acquisition 
directives and instructions of the Department of Defense. 
(c) ACQUISITION PERSONNEL.— 
(1) IN GENERAL.—The Secretary of Defense shall provide 
the Center with at least 10 full-time employees to support 
the Director in carrying out the requirements of this section, 
including personnel with experience in— 
(A) acquisition practices and processes; 
(B) the Joint Capabilities Integration and Development 
System process; 
(C) program management; 
(D) software development and systems engineering; 
and 
(E) cost analysis. 
(2) EXISTING PERSONNEL.—The personnel provided under 
this subsection shall be provided from among the existing per-
sonnel of the Department of Defense.
H. R. 6395—359 
(d) FUNDING.—In exercising the acquisition authority granted 
in subsection (a), the Director may not obligate or expend more 
than $75,000,000 out of the funds made available in each of fiscal 
years 2021, 2022, 2023, 2024, and 2025 to enter into new contracts 
to support appropriate acquisition activities carried out under this 
section. 
(e) IMPLEMENTATION PLAN AND DEMONSTRATION REQUIRED.— 
(1) IN GENERAL.—The Secretary of Defense— 
(A) may use the acquisition authority granted under 
subsection (a) on or after 30 days after the date on which 
the Secretary provides to the congressional defense commit-
tees a plan for implementation of such authority; and 
(B) by March 15, 2022, shall provide a demonstration 
of operational capability delivered under such authority. 
(2) IMPLEMENTATION PLAN.—The plan shall include the fol-
lowing: 
(A) Description of the types of activities to be under-
taken using the acquisition authority provided under sub-
section (a). 
(B) Plan for the negotiation and approval of any such 
memorandum of agreement with an element of the Depart-
ment of Defense to support Center missions and transition 
of artificial intelligence capabilities into appropriate 
acquisition programs or into operational use. 
(C) Plan for oversight of the position of acquisition 
executive established in subsection (b). 
(D) Assessment of the acquisition workforce, tools, and 
infrastructure needs of the Center to support the authority 
under subsection (a) until September 30, 2025. 
(E) Other matters as appropriate. 
(3) DEMONSTRATION.—The capability demonstration shall 
include a description of how the acquisition authority enabled 
the capability, how requirements were established and agreed 
upon, how testing was conducted, and how the capability was 
transitioned to the user, as well as any other matters deemed 
appropriate by the Center. 
(4) RELATIONSHIP
TO
OTHER
AUTHORITIES.—The require-
ment to submit a plan under this subsection is in addition 
to the requirements under section 260 of the National Defense 
Authorization Act for Fiscal Year 2020 (Public Law 116–92; 
133 Stat. 1293). 
(f) SUNSET.—Effective October 1, 2025, the Director may not 
exercise the authority under subsection (a) and may not enter 
into any new contracts under this section. The performance on 
any contract entered into before such date may continue according 
to the terms of such contract. 
(g) DEFINITIONS.—In this section: 
(1) CENTER.—The term ‘‘Center’’ has the meaning given 
the term ‘‘Joint Artificial Intelligence Center’’ in section 260(c) 
of National Defense Authorization Act for Fiscal Year 2020 
(Public Law 116–92; 133 Stat. 1294). 
(3) DIRECTOR.—The term ‘‘Director’’ means the Director 
of the Center. 
(4) ELEMENT.—The term ‘‘element’’ means an element 
described under section 111(b) of title 10, United States Code.
H. R. 6395—360 
(5) SECRETARY
CONCERNED.—The term ‘‘Secretary con-
cerned’’ has the meaning given in section 101(9) of title 10, 
United States Code. 
SEC. 809. ASSESSMENTS OF THE PROCESS FOR DEVELOPING CAPA-
BILITY REQUIREMENTS FOR DEPARTMENT OF DEFENSE 
ACQUISITION PROGRAMS. 
(a) IN GENERAL.—The Secretary of Defense and the individual 
appointed under section 2361a(c) of title 10, United States Code, 
(in this section referred to as the ‘‘Director’’) shall each— 
(1) conduct an assessment of the processes for developing 
and approving capability requirements for the acquisition pro-
grams of the Department of Defense and each military depart-
ment; and 
(2) develop recommendations for reforming such process 
to improve the agility and timeliness of such process. 
(b) ASSESSMENT ELEMENTS.—Each assessment conducted under 
subsection (a) shall include the following: 
(1) An assessment of the— 
(A) adherence of the capability requirements develop-
ment and approval processes to statute, regulations, poli-
cies, and directives; 
(B) alignment and standardization of the capability 
requirements development, acquisition, and budget proc-
esses; 
(C) technical feasibility of each approved capability 
requirement; 
(D) training and development of the workforce in capa-
bility requirements development and evaluation; 
(E) ability of the process for developing capability 
requirements to address the urgent needs of the Depart-
ment of Defense; 
(F) capacity to review changes in capability require-
ments for programs of record; 
(G) validation of decisions made to approve capability 
requirements and the alignment of each such decision to 
the national defense strategy required under section 113(g) 
of title 10, United States Code; 
(H) extent to which portfolio management techniques 
are used in the process for developing capability require-
ments to coordinate decisions and avoid duplication of 
capabilities across acquisition programs; and 
(I) implementation by each military department of 
Comptroller General of the United States recommendations 
pertaining to the process for developing and approving 
capability requirements. 
(2) A comprehensive analysis of the circumstances and 
factors contributing to the length of time between the start 
of a Capabilities-Based Assessment and the date the Joint 
Requirements Oversight Council approves the related Capa-
bility Development Document. 
(3) Identification and comparison of best practices in the 
private sector and the public sector for the development and 
approval of capability requirements. 
(4) Any additional matters that the Secretary or Director 
determine appropriate. 
(c) REPORTS.—
H. R. 6395—361 
(1) ASSESSMENT BY SECRETARY.—Not later than October 
1, 2021, the Secretary of Defense shall submit to the congres-
sional defense committees a report on the assessment conducted 
by the Secretary under subsection (a), including— 
(A) a description of such assessment; 
(B) the results of such assessment, including the anal-
ysis described in subsection (b)(2); 
(C) a plan to reduce, when appropriate, the length 
of time between the start of a Capabilities-Based Assess-
ment and the date the Joint Requirements Oversight 
Council approves the related Capability Development Docu-
ment; and 
(D) any additional recommendations for legislation, 
regulations, or policies that the Secretary determines 
appropriate. 
(2) ASSESSMENT BY DIRECTOR.— 
(A) REPORT TO SECRETARY.—Not later than November 
30, 2021, the Director shall submit to the Secretary of 
Defense a report on the assessment conducted by the 
Director pursuant to subsection (a). 
(B) REPORT
TO
CONGRESS.—Not later than January 
1, 2022, the Secretary of Defense shall submit to the 
congressional defense committees the report described in 
subparagraph (A) together with such comments as the Sec-
retary determines appropriate, including— 
(i) a description and the results of the assessment 
conducted pursuant to subsection (a)(2); 
(ii) recommendations on how the Department of 
Defense can improve the efficiency of developing and 
approving capability requirements; and 
(iii) any additional recommendations for legisla-
tion, regulations, or policies that the Secretary deter-
mines appropriate. 
Subtitle B—Amendments to General Con-
tracting Authorities, Procedures, and 
Limitations 
SEC. 811. SUSTAINMENT REFORM FOR THE DEPARTMENT OF DEFENSE. 
(a) SUSTAINMENT
ACTIVITIES
IN
THE
NATIONAL
DEFENSE 
STRATEGY.— 
(1) IN GENERAL.—Section 113(g)(1)(B) of title 10, United 
States Code, as amended by section 551 of this Act, is further 
amended by adding at the end the following new clauses: 
‘‘(viii) A strategic framework prescribed by the Secretary 
that guides how the Department will prioritize and integrate 
activities relating to sustainment of major defense acquisition 
programs, core logistics capabilities (as described under section 
2464 of this title), commercial logistics capabilities, and the 
national technology and industrial base (as defined in section 
2500 of this title). 
‘‘(ix) A strategic framework prescribed by the Secretary 
that guides how the Department will specifically address con-
tested logistics, including major investments for related infra-
structure, logistics-related authorities, force posture, related
H. R. 6395—362 
emergent technology and advanced computing capabilities, 
operational resilience, and operational energy, over the fol-
lowing five-year period to support such strategy.’’. 
(2) DUTIES
OF
THE
UNDER
SECRETARY
OF
DEFENSE
FOR 
ACQUISITION AND SUSTAINMENT.—Section 133b(b) of title 10, 
United States Code, is amended— 
(A) in paragraph (7), by striking ‘‘and’’ at the end; 
(B) in paragraph (8), by striking the period at the 
end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new paragraph: 
‘‘(9) advising the Secretary on all aspects of acquisition 
and sustainment relating to— 
‘‘(A) defense acquisition programs; 
‘‘(B) core logistics capabilities (as described under sec-
tion 2464 of this title); and 
‘‘(C) the national technology and industrial base (as 
defined in section 2500 of this title).’’. 
(3) INTERIM GUIDANCE.—Not later than October 1, 2021, 
the Secretary of Defense shall publish interim guidance to 
carry out the requirements of this subsection. 
(b) REPORT.—Not later than February 1, 2021, the Secretary 
of Defense shall submit to the congressional defense committees 
a report on the progress towards publishing the interim guidance 
required under subsection (a)(3). 
SEC. 812. INCLUSION OF SOFTWARE IN GOVERNMENT PERFORMANCE 
OF ACQUISITION FUNCTIONS. 
Section 1706 of title 10, United States Code, is amended— 
(1) in subsection (a)— 
(A) in the matter preceding paragraph (1), by striking 
‘‘and each major automated information system program’’ 
and inserting ‘‘(as defined in section 2430 of this title), 
each acquisition program that is estimated by the Secretary 
of Defense to require an eventual total expenditure greater 
than the amount described in section 2430(a)(1)(B) of this 
title, and any other acquisition program identified by the 
Secretary’’; and 
(B) by adding at the end the following new paragraph: 
‘‘(14) Program lead software.’’; and 
(2) by striking subsection (c). 
SEC. 813. MODIFICATIONS TO COMPTROLLER GENERAL ASSESSMENT 
OF ACQUISITION PROGRAMS AND RELATED INITIATIVES. 
Section 2229b(b)(2) of title 10, United States Code, is amended 
by striking ‘‘a summary of’’ and all that follows through ‘‘discussion 
of the’’ and inserting ‘‘a discussion of selected organizational, policy, 
and legislative changes, as determined appropriate by the Comp-
troller General, and the potential’’. 
SEC. 814. COST OR PRICING DATA REPORTING REQUIREMENTS FOR 
DEPARTMENT OF DEFENSE CONTRACTS. 
(a) COST OR PRICING DATA.— 
(1) IN GENERAL.—Section 2306a(a)(1) of title 10, United 
States Code, is amended— 
(A) in subparagraph (B), by striking ‘‘contract if’’ and 
all that follows through the period at the end and inserting 
‘‘contract if the price adjustment is expected to exceed 
$2,000,000.’’;
H. R. 6395—363 
(B) in subparagraph (C), by striking ‘‘section and’’ and 
all that follows through the period at the end and inserting 
‘‘section and the price of the subcontract is expected to 
exceed $2,000,000.’’; and 
(C) in subparagraph (D), by striking ‘‘subcontract if’’ 
and all that follows through the period at the end and 
inserting ‘‘subcontract if the price adjustment is expected 
to exceed $2,000,000.’’. 
(2) APPLICABILITY.—The amendments made by this sub-
section shall apply to any contract, or modification or change 
to a contract, entered into on or after the date of the enactment 
of this Act. 
(b) REPORT.— 
(1) IN GENERAL.—Not later than July 1, 2022, the Secretary 
of Defense, in consultation with the Secretaries of the military 
departments, shall provide to the congressional defense commit-
tees a report analyzing the impact, including any benefits to 
the Federal Government, of the amendments made by this 
section. 
(2) ELEMENTS.—The report required under paragraph (1) 
shall include the following elements: 
(A) Data to illustrate any efficiencies achieved, costs 
avoided, and acquisition timelines improved. 
(B) Analysis of associated costs to the Federal Govern-
ment, if any. 
(C) Analysis of underlying causes or factors that limited 
the benefits described in subparagraph (A). 
(D) Other matters the Secretary deems appropriate. 
(3) FORM.—The report required under paragraph (1) shall 
be in an unclassified form but may contain a classified annex. 
SEC. 815. PROMPT PAYMENT OF CONTRACTORS. 
Section 2307(a)(2) of title 10, United States Code, is amended— 
(1) in subparagraph (A), by striking ‘‘if a specific payment 
date is not established by contract’’; and 
(2) in subparagraph (B), by striking ‘‘if—’’ and all that 
follows through ‘‘the prime contractor agrees’’ and inserting 
‘‘if the prime contractor agrees or proposes’’. 
SEC. 816. DOCUMENTATION PERTAINING TO COMMERCIAL ITEM 
DETERMINATIONS. 
Section 2380 of title 10, United States Code, is amended— 
(1) by redesignating subsection (b) as subsection (c); and 
(2) by inserting after subsection (a) the following new sub-
section: 
‘‘(b) DETERMINATIONS REGARDING THE COMMERCIAL NATURE OF 
PRODUCTS OR SERVICES.— 
‘‘(1) IN GENERAL.—In making a determination whether a 
particular product or service offered by a contractor meets 
the definition of a commercial product or commercial service, 
a contracting officer of the Department of Defense may— 
‘‘(A) request support from the Director of the Defense 
Contract Management Agency, the Director of the Defense 
Contract Audit Agency, or other appropriate experts in 
the Department to make a determination whether a 
product or service is a commercial product or commercial 
service; and
H. R. 6395—364 
‘‘(B) consider the views of appropriate public and pri-
vate sector entities. 
‘‘(2) MEMORANDUM.—Within 30 days after a contract award, 
the contracting officer shall, consistent with the policies and 
regulations of the Department, submit a written memorandum 
summarizing the determination referred to in paragraph (1), 
including a detailed justification for such determination.’’. 
SEC. 817. MODIFICATION TO SMALL PURCHASE THRESHOLD EXCEP-
TION TO SOURCING REQUIREMENTS FOR CERTAIN ARTI-
CLES. 
Subsection (h) of section 2533a of title 10, United States Code, 
is amended to read as follows: 
‘‘(h) EXCEPTION FOR SMALL PURCHASES.—(1) Subsection (a) does 
not apply to purchases for amounts not greater than $150,000. 
A proposed procurement of an item in an amount greater than 
$150,000 may not be divided into several purchases or contracts 
for lesser amounts in order to qualify for this exception. 
‘‘(2) On October 1 of each year that is evenly divisible by 
five, the Secretary of Defense may adjust the dollar threshold 
in this subsection based on changes in the Consumer Price Index. 
Any such adjustment shall take effect on the date on which the 
Secretary publishes notice of such adjustment in the Federal Reg-
ister.’’. 
SEC. 818. REPEAL OF PROGRAM FOR QUALIFIED APPRENTICES FOR 
MILITARY CONSTRUCTION CONTRACTS. 
(a) IN GENERAL.—Section 2870 of title 10, United States Code, 
is repealed. 
(b) CONFORMING AMENDMENTS.— 
(1) CLERICAL AMENDMENT.—The table of sections at the 
beginning of subchapter III of chapter 169 of title 10, United 
States Code, is amended by striking the item relating to section 
2870. 
(2) 
REPEAL.—Section 
865 
of 
the 
National 
Defense 
Authorization Act for Fiscal Year 2020 (Public Law 116–92; 
133 Stat. 1523) is repealed. 
SEC. 819. MODIFICATIONS TO MITIGATING RISKS RELATED TO FOR-
EIGN OWNERSHIP, CONTROL, OR INFLUENCE OF DEPART-
MENT OF DEFENSE CONTRACTORS AND SUBCONTRAC-
TORS. 
(a) ASSESSMENT
OF
FOCI.—Subparagraph (A) of section 
847(b)(2) of the National Defense Authorization Act for Fiscal Year 
2020 (Public Law 116–92; 133 Stat. 1505; 10 U.S.C. 2509 note) 
is amended by adding at the end the following new clause: 
‘‘(v) A requirement for the Secretary to require reports 
and conduct examinations on a periodic basis of covered 
contractors or subcontractors in order to assess compliance 
with the requirements of this section.’’. 
(b) CONTRACT REQUIREMENTS, ADMINISTRATION, AND OVERSIGHT 
RELATING TO FOCI.—Subparagraph (C) of such section is amended— 
(1) by redesignating clause (iv) as clause (v); and 
(2) by inserting after clause (iii) the following new clause: 
‘‘(iv) Procedures for appropriately responding to 
changes in covered contractor or subcontractor bene-
ficial ownership status based on changes in disclosures 
of their beneficial ownership and whether they are
H. R. 6395—365 
under FOCI and the reports and examinations required 
by subparagraph (A)(v).’’. 
(c) TIMELINES AND MILESTONES FOR IMPLEMENTATION.— 
(1) IMPLEMENTATION PLAN.—Not later than March 1, 2021, 
the Secretary of Defense shall provide to the congressional 
defense committees a plan and schedule for implementation 
of the requirements of section 847 of the National Defense 
Authorization Act for Fiscal Year 2020 (Public Law 116–92; 
133 Stat. 1505; 10 U.S.C. 2509 note), as amended by this 
section, including— 
(A) a timeline for issuance of regulations, development 
of training for appropriate officials, and development of 
systems for reporting of beneficial ownership and FOCI 
by covered contractors or subcontractors; 
(B) the designation of officials and organizations 
responsible for such implementation; and 
(C) interim milestones to be met in implementing the 
plan and schedule. 
(2) REVISION
OF
REGULATIONS, DIRECTIVES, GUIDANCE, 
TRAINING, AND
POLICIES.—Not later than July 1, 2021, the 
Secretary of Defense shall revise relevant directives, guidance, 
training, and policies, including revising the Department of 
Defense Supplement to the Federal Acquisition Regulation, to 
fully implement the requirements of such section 847. 
(3) DEFINITIONS.—In this subsection, the term ‘‘beneficial 
ownership’’, ‘‘FOCI’’, and ‘‘covered contractors or subcontractors’’ 
have the meanings given, respectively, in section 847 of the 
National Defense Authorization Act for Fiscal Year 2020 (Public 
Law 116–92; 133 Stat. 1505; 10 U.S.C. 2509 note). 
(d) TECHNICAL AMENDMENTS.—Section 847 of the National 
Defense Authorization Act for Fiscal Year 2020 (Public Law 116– 
92; 133 Stat. 1505; 10 U.S.C. 2509 note), as amended by this 
section, is further amended— 
(1) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘contractors and sub-
contractors’’ and inserting ‘‘covered contractors or sub-
contractors’’; and 
(B) in paragraph (2)— 
(i) by striking ‘‘covered contractors and subcontrac-
tors’’ each place it appears and inserting ‘‘covered con-
tractors or subcontractors’’; 
(ii) in subparagraph (B)(iii), by striking ‘‘a con-
tractor or subcontractor’’ and inserting ‘‘such a covered 
contractor or subcontractor’’; and 
(iii) in subparagraph (C)(ii), by striking ‘‘section 
831(c)’’ and inserting ‘‘section 2509(c) of title 10, United 
States Code’’; and 
(2) in subsection (c), by striking ‘‘subsection (b)(2)(A) and 
(b)(2)(C)’’ and inserting ‘‘subsections (b)(2)(A) and (b)(2)(C)’’. 
SEC. 820. CONTRACT CLOSEOUT AUTHORITY FOR SERVICES CON-
TRACTS. 
Section 836(b) of the National Defense Authorization Act for 
Fiscal Year 2017 (10 U.S.C. 2302 note) is amended— 
(1) by amending paragraph (1) to read as follows: 
‘‘(1) was entered into—
H. R. 6395—366 
‘‘(A) with respect to a contract or group of contracts 
not described in subparagraph (B), at least 7 fiscal years 
before the current fiscal year; and 
‘‘(B) with respect to a contract or group of contracts 
for military construction (as defined in section 2801 of 
title 10, United States Code) or shipbuilding, at least 10 
fiscal years before the current fiscal year;’’; and 
(2) by amending paragraph (2) to read as follows: 
‘‘(2) the performance or delivery has been completed at 
least 4 years before the current fiscal year; and’’. 
SEC. 821. REVISION OF PROOF REQUIRED WHEN USING AN EVALUA-
TION FACTOR FOR EMPLOYING OR SUBCONTRACTING 
WITH MEMBERS OF THE SELECTED RESERVE. 
Section 819 of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109–163; 119 Stat. 3385; 10 U.S.C. 2305 
note) is amended— 
(1) by striking subsection (b); and 
(2) by redesignating subsection (c) as subsection (b). 
Subtitle C—Provisions Relating to 
Software and Technology 
SEC. 831. CONTRACT AUTHORITY FOR DEVELOPMENT AND DEM-
ONSTRATION OF INITIAL OR ADDITIONAL PROTOTYPE 
UNITS. 
(a) IN GENERAL.—Section 2302e of title 10, United States Code, 
is amended— 
(1) in the heading, by striking ‘‘advanced development’’ 
and inserting ‘‘development and demonstration’’; 
(2) in subsection (a)(1), by striking ‘‘provision of advanced 
component development, prototype,’’ and inserting ‘‘develop-
ment and demonstration’’; and 
(3) by adding at the end the following new subsection: 
‘‘(c) PROCEDURES.—The Secretary of Defense shall establish 
procedures to collect and analyze information on the use and bene-
fits of the authority under this section and related impacts on 
performance, affordability, and capability delivery.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 137 of title 10, United States Code, is amended 
by striking the item relating to section 2302e and inserting the 
following new item: 
‘‘2302e. Contract authority for development and demonstration of initial or addi-
tional prototype units.’’. 
SEC. 832. EXTENSION OF PILOT PROGRAM FOR STREAMLINED AWARDS 
FOR INNOVATIVE TECHNOLOGY PROGRAMS. 
Section 873(f) of the National Defense Authorization Act for 
Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 2306a note) is 
amended by striking ‘‘October 1, 2020’’ and inserting ‘‘October 1, 
2022’’. 
SEC. 833. LISTING OF OTHER TRANSACTION AUTHORITY CONSORTIA. 
Not later than 90 days after the date of the enactment of 
this Act, the Secretary of Defense shall maintain on the single 
Government-wide point of entry described under section 1708 of
H. R. 6395—367 
title 41, United States Code, a list of the consortia used by the 
Secretary to announce or otherwise make available opportunities 
to enter into a transaction under the authority of section 2371 
of title 10, United States Code, or a transaction for a prototype 
project under section 2371b of such title. 
SEC. 834. PILOT PROGRAM ON THE USE OF CONSUMPTION-BASED 
SOLUTIONS 
TO 
ADDRESS 
SOFTWARE-INTENSIVE 
WARFIGHTING CAPABILITY. 
(a) IN GENERAL.—Subject to the availability of appropriations, 
the Secretary of Defense is authorized to establish a pilot program 
to explore the use of consumption-based solutions to address soft-
ware-intensive warfighting capability. 
(b) SELECTION OF INITIATIVES.—Each Secretary of a military 
department and each commander of a combatant command with 
acquisition authority shall propose for selection by the Secretary 
of Defense for the pilot program at least one and not more than 
three initiatives that are well-suited to explore consumption-based 
solutions, to include addressing software-intensive warfighting 
capability. The initiatives may be new or existing programs of 
record, and may include applications that— 
(1) rapidly analyze sensor data; 
(2) secure warfighter networks, including multilevel secu-
rity; 
(3) swiftly transport information across various networks 
and network modalities; 
(4) enable joint all-domain operational concepts, including 
in a contested environment; or 
(5) advance military capabilities and effectiveness. 
(c) REQUIREMENTS.—A contract or other agreement for 
consumption-based solutions entered into under the pilot program 
shall require— 
(1) the effectiveness of the solution to be measurable at 
regular intervals customary for the type of solution provided 
under contract or other agreement; and 
(2) that the awardee notify the Secretary of Defense when 
consumption under the contract or other agreement reaches 
75 percent and 90 percent of the funded amount, respectively, 
of the contract or other agreement. 
(d) EXEMPTION.—A modification to a contract or other agree-
ment entered into under this section to add new features or capabili-
ties in an amount less than or equal to 25 percent of the total 
value of such contract or other agreement shall be exempt from 
the requirements of full and open competition (as defined in section 
2302 of title 10, United States Code). 
(e) DURATION.—The duration of a contract or other agreement 
entered into under this section may not exceed three years. 
(f) MONITORING
AND EVALUATION
OF PILOT PROGRAM.—The 
Director of Cost Assessment and Program Evaluation shall continu-
ously monitor and evaluate the pilot program, including by col-
lecting data on cost, schedule, and performance from the program 
office, the user community, and the awardees involved in the pro-
gram. 
(g) REPORTS.— 
(1) INITIAL
REPORT.—Not later than May 15, 2021, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on initiatives selected for the pilot program,
H. R. 6395—368 
roles, and responsibilities for implementing the program, and 
the monitoring and evaluation approach that will be used for 
the program. 
(2) PROGRESS REPORT.—Not later than October 15, 2021, 
the Secretary of Defense shall submit to the congressional 
defense committees a report on the progress of the initiatives 
selected for the pilot program. 
(3) FINAL REPORT.—Not later than 3 years after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to the congressional defense committees a report on 
the cost, schedule, and performance outcomes of the initiatives 
carried out under the pilot program. The report shall also 
include lessons learned about the use of consumption-based 
solutions for software-intensive capabilities and any rec-
ommendations for statutory or regulatory changes to facilitate 
the use of such solutions. 
(h) CONSUMPTION-BASED SOLUTION DEFINED.—In this section, 
the term ‘‘consumption-based solution’’ means any combination of 
software, hardware or equipment, and labor or services that pro-
vides a seamless capability that is metered and billed based on 
actual usage and predetermined pricing per resource unit, and 
includes the ability to rapidly scale capacity up or down. 
SEC. 835. BALANCING SECURITY AND INNOVATION IN SOFTWARE 
DEVELOPMENT AND ACQUISITION. 
(a) REQUIREMENTS
FOR SOLICITATIONS
OF COMMERCIAL
AND 
DEVELOPMENTAL SOLUTIONS.—The Under Secretary of Defense for 
Acquisition and Sustainment, in coordination with the Chief 
Information Officer of the Department of Defense, shall develop 
requirements for appropriate software security criteria to be 
included in solicitations for commercial and developmental solutions 
and the evaluation of bids submitted in response to such solicita-
tions, including a delineation of what processes were or will be 
used for a secure software development life cycle. Such requirements 
shall include— 
(1) establishment and enforcement of secure coding prac-
tices; 
(2) management of supply chain risks and third-party soft-
ware sources and component risks; 
(3) security of the software development environment; 
(4) secure deployment, configuration, and installation proc-
esses; and 
(5) an associated vulnerability management plan and 
identification of tools that will be applied to achieve an appro-
priate level of security. 
(b) SECURITY REVIEW
OF CODE.—The Under Secretary of 
Defense for Acquisition and Sustainment, in coordination with the 
Chief Information Officer of the Department of Defense, shall 
develop— 
(1) procedures for the security review of code; and 
(2) other procedures necessary to fully implement the pilot 
program required under section 875 of the National Defense 
Authorization Act for Fiscal Year 2018 (Public Law 115–91; 
10 U.S.C. 2223 note). 
(c) COORDINATION WITH CYBERSECURITY ACQUISITION POLICY 
EFFORTS.—The Under Secretary of Defense for Acquisition and 
Sustainment shall develop the requirements and procedures
H. R. 6395—369 
described under subsections (a) and (b) in coordination with the 
efforts of the Department of Defense to develop new cybersecurity 
and program protection policies and guidance that are focused 
on cybersecurity in the context of acquisition and program manage-
ment and on safeguarding information. 
SEC. 836. DIGITAL MODERNIZATION OF ANALYTICAL AND DECISION- 
SUPPORT PROCESSES FOR MANAGING AND OVERSEEING 
DEPARTMENT OF DEFENSE ACQUISITION PROGRAMS. 
(a) DIGITAL DATA MANAGEMENT AND ANALYTICS CAPABILITIES.— 
(1) IN GENERAL.—The Secretary of Defense shall iteratively 
develop and integrate advanced digital data management and 
analytics capabilities, consistent with private sector best prac-
tices, that— 
(A) integrate all aspects of the defense acquisition 
system, including the development of capability require-
ments, research, design, development, testing, evaluation, 
acquisition, management, operations, and sustainment of 
systems; 
(B) facilitate the management and analysis of all rel-
evant data generated during the development of capability 
requirements, research, design, development, testing, 
evaluation, acquisition, operations, and sustainment of sys-
tems; 
(C) enable the use of such data to inform further 
development, acquisition, management and oversight of 
such systems, including portfolio management; and 
(D) include software capabilities to collect, transport, 
organize, manage, make available, and analyze relevant 
data throughout the life cycle of defense acquisition pro-
grams, including any data needed to support individual 
and portfolio management of acquisition programs. 
(2) REQUIREMENTS.—The capabilities developed under para-
graph (1) shall— 
(A) be accessible to, and useable by, individuals 
throughout the Department of Defense who have respon-
sibilities relating to activities described in clauses (A) 
through (C) of paragraph (1); 
(B) enable the development, use, curation, and mainte-
nance of original form and real-time digital systems by— 
(i) ensuring shared access to data within the 
Department; 
(ii) supplying data to digital engineering models 
for use in the defense acquisition, sustainment, and 
portfolio management processes; and 
(iii) supplying data to testing infrastructure and 
software to support automated approaches for testing, 
evaluation, and deployment throughout the defense 
acquisition, sustainment, and portfolio management 
processes; and 
(C) feature— 
(i) improved data management and sharing proc-
esses; 
(ii) timely, high-quality, transparent, and action-
able analyses; and 
(iii) analytical models and simulations.
H. R. 6395—370 
(3) ENABLING
DATA
INFRASTRUCTURE, TOOLS, AND
PROC-
ESSES.—In developing the capability required under paragraph 
(1), the Secretary of Defense shall— 
(A) move supporting processes and the data associated 
with such processes from analog to digital format, including 
planning and reporting processes; 
(B) make new and legacy data more accessible to, 
and usable by, appropriate employees and contractors (at 
any tier) of the Department of Defense and members of 
the Armed Forces, including through migration of program 
and other documentation into digital formats; 
(C) modernize the query, collection, storage, retrieval, 
reporting, and analysis capabilities for stakeholders within 
the Department, including research entities, Program 
Management Offices, analytic organizations, oversight 
staff, and decision makers; 
(D) automate data collection and storage to minimize 
or eliminate manual data entry or manual reporting; 
(E) enable employees and other appropriate users to 
access data from all relevant data sources, including 
through— 
(i) streamlining data access privileges; 
(ii) sharing of appropriate data between and among 
Federal Government and contractor information sys-
tems; and 
(iii) enabling timely and continuous data collection 
and sharing from all appropriate personnel, including 
contractors; 
(F) modernize existing enterprise information systems 
to enable interoperability consistent with technical best 
practices; and 
(G) provide capabilities and platforms to enable contin-
uous development and integration of software using public 
and private sector best practices. 
(b) PORTFOLIO MANAGEMENT.—The Secretary of Defense shall 
establish capabilities for robust, effective, and data-driven portfolio 
management described in subsection (a)(1)(C), using the capability 
established in this section, to improve the Department of Defense- 
wide assessment, management, and optimization of the investments 
in weapon systems of the Department, including through consolida-
tion of duplicate or similar weapon system programs. 
(c) DEMONSTRATION ACTIVITIES.— 
(1) IN GENERAL.—The Secretary of Defense shall carry out 
activities to demonstrate the capability required under sub-
section (a). 
(2) ACTIVITY SELECTION.—Not later than July 15, 2021, 
the Secretary of Defense shall select decision support processes 
and individual acquisition programs to participate in the dem-
onstration activities under paragraph (1), including— 
(A) decision support processes, including— 
(i) portfolio management as described in subsection 
(b); 
(ii) one or more acquisition data management test 
cases; and 
(iii) one or more development and test modeling 
and simulation test cases to demonstrate the ability 
to collect data from tests and operations in the field,
H. R. 6395—371 
and feed the data back into models and simulations 
for better software development and testing; 
(B) individual acquisition programs representing— 
(i) one or more defense business systems; 
(ii) one or more command and control systems; 
(iii) one or more middle tier of acquisition pro-
grams; 
(iv) programs featuring a cost-plus contract type, 
and a fixed-price contract type, and a transaction 
authorized under section 2371 or 2371b of title 10, 
United States Code; and 
(v) at least one program in each military depart-
ment. 
(3) EXECUTION OF DEMONSTRATION ACTIVITIES.—As part of 
the demonstration activities under paragraph (1), the Secretary 
shall— 
(A) conduct a comparative analysis that assesses the 
risks and benefits of the digital management and analytics 
capability used in each of the programs participating in 
the demonstration activities relative to the traditional data 
collection, reporting, exposing, and analysis approaches of 
the Department; 
(B) ensure that the intellectual property strategy for 
each of the programs participating in the demonstration 
activities is best aligned to meet the goals of the program; 
and 
(C) develop a workforce and infrastructure plan to 
support any new policies and guidance implemented in 
connection with the demonstration activities, including any 
policies and guidance implemented after the completion 
of such activities. 
(d) POLICIES AND GUIDANCE REQUIRED.—Not later than March 
15, 2022, based on the results of the demonstration activities carried 
out under subsection (c), the Secretary of Defense shall issue or 
modify policies and guidance to— 
(1) promote the use of digital data management and ana-
lytics capabilities; and 
(2) address roles, responsibilities, and procedures relating 
to such capabilities. 
(e) STEERING COMMITTEE.— 
(1) IN GENERAL.—The Secretary of Defense shall establish 
a steering committee to assist the Secretary in carrying out 
subsections (a) through (c). 
(2) MEMBERSHIP.—The steering committee shall be com-
posed of the following members or their designees: 
(A) The Deputy Secretary of Defense. 
(B) The Chief Information Officer. 
(C) The Director of Cost Assessment and Program 
Evaluation. 
(D) The Under Secretary of Defense for Research and 
Engineering. 
(E) The Under Secretary of Defense for Acquisition 
and Sustainment. 
(F) The Director of Operational Test and Evaluation. 
(G) The Service Acquisition Executives. 
(H) The Director for Force Structure, Resources, and 
Assessment of the Joint Staff.
H. R. 6395—372 
(I) The Director of the Defense Digital Service. 
(J) Such other officials of the Department of Defense 
as the Secretary determines appropriate. 
(f) INDEPENDENT ASSESSMENTS.— 
(1) INITIAL ASSESSMENT.— 
(A) IN GENERAL.—The Defense Innovation Board, in 
consultation with the Defense Digital Service, shall conduct 
an independent assessment and cost-benefits analysis to 
identify recommended approaches for the implementation 
of subsections (a) through (c). 
(B) ELEMENTS.—The assessment under subparagraph 
(A) shall include the following: 
(i) A plan for the development and implementation 
of the capabilities required under subsection (a), 
including a plan for any procurement that may be 
required as part of such development and implementa-
tion. 
(ii) An independent cost assessment of the total 
estimated cost of developing and implementing the 
capability, as well as an assessment of any potential 
cost savings. 
(iii) An independent estimate of the schedule for 
the development approach, and order of priorities for 
implementation of the capability, including a reason-
able estimate of the dates on which the capability 
can be expected to achieve initial operational capability 
and full operational capability, respectively. 
(iv) A recommendation identifying the office or 
other organization of the Department of Defense that 
would be most appropriate to manage and execute 
the capability. 
(C) REPORT.—Not later than July 15, 2021, the Defense 
Innovation Board, in consultation with the Defense Digital 
Service, shall submit to the Secretary of Defense and the 
congressional defense committees a report on the findings 
of the assessment under subparagraph (A), including the 
findings of the assessment with respect to each element 
specified in subparagraph (B). 
(2) SECOND ASSESSMENT.— 
(A) IN GENERAL.—Not later than March 15, 2023, the 
Defense Innovation Board and the Defense Science Board 
shall jointly complete an independent assessment of the 
progress of the Secretary in implementing subsections (a) 
through (c). The Secretary of Defense shall ensure that 
the Defense Innovation Board and the Defense Science 
Board have access to the resources, data, and information 
necessary to complete the assessment. 
(B) INFORMATION
TO
CONGRESS.—Not later than 30 
days after the date on which the assessment under 
subparagraph (A) is completed, the Defense Innovation 
Board and the Defense Science Board shall jointly provide 
to the congressional defense committees— 
(i) a report summarizing the assessment; and 
(ii) a briefing on the findings of the assessment. 
(g) DEMONSTRATIONS AND BRIEFING.— 
(1) DEMONSTRATION OF IMPLEMENTATION.—Not later than 
October 20, 2021, the Secretary of Defense shall submit to
H. R. 6395—373 
the congressional defense committees a demonstration and 
briefing on the progress of the Secretary in implementing sub-
sections (a) through (c). The briefing shall include an expla-
nation of how the results of the demonstration activities carried 
out under subsection (c) will be incorporated into the policy 
and guidance required under subsection (d), particularly the 
policy and guidance of the members of the steering committee 
established under subsection (e). 
(2) BRIEFING
ON
LEGISLATIVE
RECOMMENDATIONS.—Not 
later than February 1, 2022, the Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate 
and of the House of Representatives a briefing that identifies 
any changes to existing law that may be necessary to facilitate 
the implementation of subsections (a) through (c). 
(3) DEMONSTRATION
OF
PORTFOLIO
MANAGEMENT.—In 
conjunction with the budget of the President for fiscal year 
2023 (as submitted to Congress under section 1105(a) of title 
21, United States Code), the Deputy Secretary of Defense shall 
schedule a demonstration of the portfolio management capa-
bility developed under subsection (b) with the congressional 
defense committees. 
SEC. 
837. 
SAFEGUARDING 
DEFENSE-SENSITIVE 
UNITED 
STATES 
INTELLECTUAL PROPERTY, TECHNOLOGY, AND OTHER 
DATA AND INFORMATION. 
(a) IN GENERAL.—The Secretary of Defense shall, in coordina-
tion with relevant departments and agencies— 
(1) identify policies and procedures protecting defense-sen-
sitive United States intellectual property, technology, and other 
data and information, including hardware and software, from 
acquisition by the government of China; and 
(2) to the extent that the Secretary determines that such 
policies and procedures are insufficient to provide such protec-
tion, develop additional policies and procedures. 
(b) MATTERS CONSIDERED.—In developing the policies and 
procedures under subsection (a), the Secretary shall take the fol-
lowing actions: 
(1) Establish and maintain a list of critical national security 
technology that may require certain restrictions on current 
or former employees, contractors, or subcontractors (at any 
tier) of the Department of Defense that contribute to such 
technology. 
(2) Review the existing authorities under which employees 
of the Department of Defense may be subject to post-employ-
ment restrictions with foreign governments and with organiza-
tions subject to foreign ownership, control, or influence. 
(3) Identify additional measures that may be necessary 
to enhance the authorities described in paragraph (2). 
(c) POST-EMPLOYMENT MATTERS.—The Secretary shall consider 
mechanisms to restrict current or former employees of contractors 
or subcontractors (at any tier) of the Department of Defense that 
contribute significantly and materially to a technology referred 
to in subsection (b)(1) from working directly for companies wholly 
owned by the government of China, or for companies that have 
been determined by a cognizant Federal agency to be under the 
ownership, control, or influence of the government of China.
H. R. 6395—374 
SEC. 838. COMPTROLLER GENERAL REPORT ON IMPLEMENTATION OF 
SOFTWARE ACQUISITION REFORMS. 
(a) REPORT REQUIRED.—Not later than March 15, 2021, the 
Comptroller General of the United States shall brief the congres-
sional defense committees on the implementation by the Secretary 
of Defense of required acquisition reforms with respect to acquiring 
software for weapon systems, business systems, and other activities 
that are part of the defense acquisition system, with one or more 
reports based on such briefing to be submitted to such committees, 
as jointly determined by such committees and the Comptroller 
General. 
(b) ELEMENTS.—The briefing and any reports required under 
subsection (a) shall include an assessment of the extent to which 
the Secretary of Defense has— 
(1) implemented the recommendations set forth in— 
(A) the final report of the Defense Innovation Board 
submitted to the congressional defense committees under 
section 872 of the National Defense Authorization Act for 
Fiscal Year 2018 (Public Law 115–91; 131 Stat. 1497); 
(B) the final report of the Defense Science Board Task 
Force on the Design and Acquisition of Software for Defense 
Systems described in section 868 of the John S. McCain 
National Defense Authorization Act for Fiscal Year 2019 
(Public Law 115–232; 132 Stat. 1902; 10 U.S.C. 2223a 
note); and 
(C) other relevant studies on software research, 
development, and acquisition activities of the Department 
of Defense; 
(2) carried out software acquisition activities, including 
programs required under— 
(A) section 2322a of title 10, United States Code; and 
(B) section 875 of the National Defense Authorization 
Act for Fiscal Year 2018 (Public Law 115–91; 131 Stat. 
1503; 10 U.S.C. 2223 note); 
(3) used the authority provided under section 800 of the 
National Defense Authorization Act for Fiscal Year 2020 (Public 
Law 116–92; 133 Stat. 1478; 10 U.S.C. 2223a); and 
(4) carried out software acquisition pilot programs, 
including pilot programs required under sections 873 and 874 
of the National Defense Authorization Act for Fiscal Year 2018 
(Public Law 115–91; 10 U.S.C. 2223a note; 10 U.S.C. 2302 
note). 
(c) ASSESSMENT OF ACQUISITION POLICY, GUIDANCE, AND PRAC-
TICES.—Each report required under subsection (a) shall include 
an assessment of the extent to which the software acquisition 
policy, guidance, and practices of the Department of Defense reflect 
implementation of— 
(1) relevant recommendations from software studies and 
pilot programs; and 
(2) directives from the congressional defense committees. 
(d) DEFENSE ACQUISITION SYSTEM DEFINED.—In this section, 
the term ‘‘defense acquisition system’’ has the meaning given that 
term in section 2545(2) of title 10, United States Code.
H. R. 6395—375 
SEC. 839. COMPTROLLER GENERAL REPORT ON INTELLECTUAL PROP-
ERTY ACQUISITION AND LICENSING. 
(a) IN GENERAL.—Not later than October 1, 2021, the Comp-
troller General of the United States shall submit to the congres-
sional defense committees a report evaluating the implementation 
of Department of Defense Instruction 5010.44 relating to Intellec-
tual Property Acquisition and Licensing (or successor instruction). 
(b) ELEMENTS.—The report required under subsection (a) shall 
assess the following: 
(1) The extent to which the Department of Defense is 
fulfilling the core principles established in such Instruction. 
(2) The extent to which the Defense Acquisition University 
(established under section 1746 of title 10, United States Code) 
and elements of the Department of Defense (specified in para-
graphs (1) through (10) of section 111(b) of such title) are 
carrying out the requirements of such Instruction. 
(3) The progress of the Secretary of Defense in establishing 
a cadre of intellectual property experts (as required under 
section 2322(b) of such title), including the extent to which 
members of such cadre are executing their roles and responsibil-
ities. 
(4) The performance of the Secretary of Defense in 
assessing and demonstrating the implementation of such 
Instruction, including the effectiveness of the cadre described 
in paragraph (3). 
(5) The effectiveness of the cadre described in paragraph 
(3) in providing resources on the acquisition and licensing of 
intellectual property. 
(6) The effect implementation of such Instruction has had 
on particular acquisitions. 
(7) The extent to which feedback from appropriate stake-
holders was incorporated, including large and small businesses, 
traditional and nontraditional defense contractors (as defined 
in section 2302(9) of title 10, United States Code), and mainte-
nance and repair organizations. 
(8) Any other matters the Comptroller General determines 
appropriate. 
Subtitle D—Industrial Base Matters 
SEC. 841. ADDITIONAL REQUIREMENTS PERTAINING TO PRINTED CIR-
CUIT BOARDS. 
(a) IN GENERAL.—Chapter 148 of title 10, United States Code, 
is amended by inserting after section 2533c the following section: 
‘‘§ 2533d. Additional requirements pertaining to printed cir-
cuit boards 
‘‘(a) IN GENERAL.— 
‘‘(1) Beginning on January 1, 2023, the Secretary of Defense 
may not acquire a covered printed circuit board from a covered 
nation. 
‘‘(2) Paragraph (1) shall not apply with respect to any 
acquisition of supplies or services below the micro-purchase 
threshold under section 2338 of this title. 
‘‘(b) WAIVER.—
H. R. 6395—376 
‘‘(1) The Secretary may waive the prohibition under sub-
section (a) if the Secretary determines in writing that— 
‘‘(A) there are no significant national security concerns 
regarding counterfeiting, quality, or unauthorized access 
created by such waiver; 
‘‘(B) the waiver is required to support national security; 
and 
‘‘(C) a covered printed circuit board of satisfactory 
quality and sufficient quantity, in the required form, cannot 
be procured as and when needed from nations other than 
a covered nation at reasonable cost, excluding comparisons 
with non-market economies. 
‘‘(2) Not later than 10 days after the Secretary provides 
a waiver under paragraph (1), the Secretary shall submit to 
the Committee on Armed Services of the Senate and the Com-
mittee on Armed Services of the House of Representatives 
a written notice setting forth the reasoning for the waiver, 
together with a copy of the waiver itself. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) COVERED NATION.—The term ‘covered nation’ means— 
‘‘(A) the Democratic People’s Republic of North Korea; 
‘‘(B) the People’s Republic of China; 
‘‘(C) the Russian Federation; and 
‘‘(D) the Islamic Republic of Iran. 
‘‘(2) COVERED PRINTED CIRCUIT BOARD.—The term ‘covered 
printed circuit board’ means any partially manufactured or 
complete bare printed circuit board or fully or partially assem-
bled printed circuit board that— 
‘‘(A) performs a mission critical function in any product 
or service that is not a commercial product or commercial 
service (as such terms are defined under sections 103 and 
103a of title 41, respectively); or 
‘‘(B) the Secretary designates as a covered printed cir-
cuit board, after reasonable notice, based on a determina-
tion that the designation is required to support national 
security. 
‘‘(3) SECRETARY.—The term ‘Secretary’ means the Secretary 
of Defense. 
‘‘(d) RULEMAKING.—Not later than May 1, 2022, the Secretary 
shall promulgate regulations, after an opportunity for notice and 
comment, implementing this section. 
‘‘(e) APPLICABILITY.—This section shall apply only with respect 
to contracts entered into after the issuance of a final rule imple-
menting this section. 
‘‘(f) RULE
OF CONSTRUCTION.—Nothing in this section shall 
be construed to prohibit the Department of Defense from entering 
into a contract with an entity that connects to the facilities of 
a third party, for the purposes of backhaul, roaming, or interconnec-
tion arrangements, on the basis of the noncompliance by the third 
party with the provisions of this section or use of equipment or 
services that do not route or redirect user data traffic or permit 
visibility into any user data or packets that such equipment trans-
mits or otherwise handles.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for subchapter 
V of chapter 148 of title 10, United States Code, is amended 
by inserting after the item relating to section 2533c the following: 
‘‘2533d. Additional requirements pertaining to printed circuit boards.’’.
H. R. 6395—377 
(c) TRUSTED SUPPLY.—The Secretary of Defense shall apply 
the requirements of section 224 of the National Defense Authoriza-
tion Act for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 2302 
note) to the acquisition of covered printed circuit boards (as such 
term is defined under section 2533d(c) of title 10, United States 
Code, as added by this section). 
(d) INDEPENDENT ASSESSMENT.— 
(1) IN GENERAL.—Not later than 90 days after the date 
of enactment of this Act, the Secretary of Defense shall seek 
to enter into an agreement with a federally funded research 
and development center under which the center will conduct 
an assessment of the benefits and risks of expanding the 
prohibition in section 2533d(a) and the definitions in section 
2533d(c) of title 10, United States Code, each as added by 
this section, to include printed circuit boards in commercial 
products or services, or in commercially available off-the-shelf 
products or services. The assessment shall also include analysis 
and recommendations regarding the scope of mission critical 
functions, as such term is used in such section. 
(2) SUBMISSION TO DEPARTMENT OF DEFENSE.—Not later 
than one year after entering into the contract described in 
paragraph (1), the federally funded research and development 
center that conducts the assessment described in such para-
graph shall submit to the Secretary of Defense a report on 
the results of the assessment. 
(3) SUBMISSION TO CONGRESS.—Not later than 90 days after 
the date on which the Secretary of Defense receives the report 
described in paragraph (2), the Secretary shall submit to the 
congressional defense committees an unaltered copy of the 
report, together with any comments the Secretary may have 
with respect to the report, as well as a summary of the rec-
ommendations of the report. The comments of the Secretary, 
if any, and the summary of recommendations shall be in an 
unclassified form, but the submission may include a classified 
annex. 
SEC. 842. REPORT ON NONAVAILABILITY DETERMINATIONS AND QUAR-
TERLY NATIONAL TECHNOLOGY AND INDUSTRIAL BASE 
BRIEFINGS. 
(a) IN GENERAL.—Section 2504 of title 10, United States Code, 
is amended— 
(1) by striking ‘‘The Secretary’’ and inserting the following: 
‘‘(a) ANNUAL REPORT.—The Secretary’’; 
(2) in subsection (a), as designated by paragraph (1), by 
adding at the end the following new paragraph: 
‘‘(5) A detailed description of any use by the Secretary of 
Defense or a Secretary concerned, as applicable, during the prior 
12 months of a waiver or exception to the sourcing requirements 
or prohibitions established by chapter 83 of title 41 or subchapter 
V of chapter 148 of this title, including— 
‘‘(A) the type of waiver or exception used; and 
‘‘(B) the reasoning for the use of each such waiver or 
exception.’’; and 
(3) by adding at the end the following new subsection: 
‘‘(b) QUARTERLY BRIEFINGS.—(1) The Secretary of Defense shall 
ensure that the congressional defense committees receive quarterly 
briefings on the industrial base supporting the Department of
H. R. 6395—378 
Defense, describing challenges, gaps, and vulnerabilities in the 
defense industrial base and commercial sector relevant to execution 
of defense missions, and describing initiatives to address such chal-
lenges. 
‘‘(2) Each briefing under paragraph (1) shall include an update 
on the progress of addressing such gaps or vulnerabilities by the 
Secretary, the Secretary of the military department concerned, or 
the appropriate head of a Defense Agency, including an update 
on— 
‘‘(A) actions taken to address such gaps or vulnerabilities; 
‘‘(B) policy changes necessary to address such gaps or 
vulnerabilities; and 
‘‘(C) the proposed timeline for action and resources required 
to address such gaps or vulnerabilities.’’. 
(b) CONFORMING AND CLERICAL AMENDMENTS.— 
(1) HEADING AMENDMENT.—The heading of section 2504 
of title 10, United States Code, is amended to read as follows: 
‘‘§ 2504. National technology and industrial base: annual 
report and quarterly briefings’’. 
(2) CLERICAL AMENDMENT.—The table of sections for sub-
chapter II of chapter 148 of such title is amended by striking 
the item relating to section 2504 and inserting the following 
new item: 
‘‘2504. National technology and industrial base: annual report and quarterly brief-
ings.’’. 
SEC. 
843. 
MODIFICATION 
OF 
FRAMEWORK 
FOR 
MODERNIZING 
ACQUISITION PROCESSES TO ENSURE INTEGRITY OF 
INDUSTRIAL BASE AND INCLUSION OF OPTICAL TRANS-
MISSION COMPONENTS. 
(a) IN GENERAL.— Section 2509 of title 10, United States Code, 
is amended— 
(1) in subsection (b)(2)— 
(A) in subparagraph (A)— 
(i) in the matter preceding clause (i), by inserting 
‘‘such as those identified through the supply chain 
risk management process of the Department and by 
the Federal Acquisition Security Council, and’’ after 
‘‘supply chain risks,’’; and 
(ii) in clause (ii), by striking ‘‘(other than optical 
transmission components)’’; 
(B) in subparagraph (C)— 
(i) in clause (x), by striking ‘‘; and’’ and inserting 
a semicolon; 
(ii) by redesignating clause (xi) as clause (xii); and 
(iii) by inserting after clause (x) the following new 
clause: 
‘‘(xi) processes and procedures related to supply chain 
risk management and processes and procedures imple-
mented pursuant to section 2339a of this title; and’’; and 
(C) by adding at the end the following new subpara-
graph: 
‘‘(E) Characterization and assessment of industrial base 
support policies, programs, and procedures, including—
H. R. 6395—379 
‘‘(i) limitations and acquisition guidance relevant to 
the national technology and industrial base (as defined 
in section 2500(1) of this title); 
‘‘(ii) limitations and acquisition guidance relevant to 
section 2533a of this title; 
‘‘(iii) the Industrial Base Analysis and Sustainment 
program of the Department, including direct support and 
common design activities; 
‘‘(iv) the Small Business Innovation Research Program 
(as defined in section 9(e) of the Small Business Act (15 
U.S.C. 638(e)); 
‘‘(v) the Manufacturing Technology Program estab-
lished under section 2521 of this title; 
‘‘(vi) programs relating to the Defense Production Act 
of 1950 (50 U.S.C. 4511 et seq.); and 
‘‘(vii) programs operating in each military depart-
ment.’’; and 
(2) in subsection (f)(2), by inserting ‘‘, and supporting poli-
cies, procedures, and guidance relating to such actions’’ after 
‘‘subsection (b)’’. 
(b) CONFORMING AMENDMENT.—Section 806 of the Ike Skelton 
National Defense Authorization Act for Fiscal Year 2011 (10 U.S.C. 
2304 note) is repealed. 
SEC. 844. EXPANSION ON THE PROHIBITION ON ACQUIRING CERTAIN 
METAL PRODUCTS. 
(a) IN GENERAL.—Section 2533c of title 10, United States Code, 
is amended— 
(1) in subsection (a)(1), by striking ‘‘material melted’’ and 
inserting ‘‘material mined, refined, separated, melted,’’; and 
(2) in subsection (c)(3)(A)(i), by striking ‘‘tungsten’’ and 
inserting ‘‘covered material’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect on the date that is 5 years after the date 
of the enactment of this Act. 
SEC. 845. MISCELLANEOUS LIMITATIONS ON THE PROCUREMENT OF 
GOODS OTHER THAN UNITED STATES GOODS. 
(a) IN GENERAL.—Section 2534 of title 10, United States Code, 
is amended— 
(1) in subsection (a)— 
(A) by striking paragraphs (2) through (5) and redesig-
nating paragraph (6) as paragraph (3); 
(B) by inserting after paragraph (1) the following new 
paragraph: 
‘‘(2) COMPONENTS
FOR
NAVAL
VESSELS.—The following 
components of vessels, to the extent they are unique to marine 
applications: 
‘‘(A) Gyrocompasses. 
‘‘(B) Electronic navigation chart systems. 
‘‘(C) Steering controls. 
‘‘(D) Propulsion and machinery control systems. 
‘‘(E) Totally enclosed lifeboats.’’; 
(C) in paragraph (3), as so redesignated, by striking 
‘‘subsection (k)’’ and inserting ‘‘subsection (j)’’; and 
(D) by adding at the end the following new paragraph: 
‘‘(4) COMPONENTS FOR T–AO 205 CLASS VESSELS.—The fol-
lowing components of T–AO 205 class vessels:
H. R. 6395—380 
‘‘(A) Auxiliary equipment, including pumps, for all ship-
board services. 
‘‘(B) Propulsion system components, including engines, 
reduction gears, and propellers. 
‘‘(C) Shipboard cranes. 
‘‘(D) Spreaders for shipboard cranes.’’; 
(2) by amending subsection (b) to read as follows: 
‘‘(b) MANUFACTURER IN THE NATIONAL TECHNOLOGY AND INDUS-
TRIAL BASE.—A manufacturer meets the requirements of this sub-
section if the manufacturer is part of the national technology and 
industrial base.’’; 
(3) in subsection (c)— 
(A) by striking ‘‘ITEMS.—’’ and all that follows through 
‘‘Subsection (a) does not apply’’ and inserting ‘‘ITEMS.— 
Subsection (a) does not apply’’; and 
(B) by striking paragraphs (2) though (5); 
(4) in subsection (g)— 
(A) by striking ‘‘(1) This section’’ and inserting ‘‘This 
section’’; and 
(B) by striking paragraph (2); 
(5) in subsection (h), by striking ‘‘subsection (a)(3)(B)’’ and 
inserting ‘‘subsection (a)(2)’’; 
(6) in subsection (i)(3), by striking ‘‘Under Secretary of 
Defense for Acquisition, Technology, and Logistics’’ and 
inserting ‘‘Under Secretary of Defense for Acquisition and 
Sustainment’’; 
(7) by striking subsection (j); 
(8) by redesignating the first subsection designated sub-
section (k) (relating to ‘‘Limitation on Certain Procurements 
Application Process’’) as subsection (j); and 
(9) in subsection (k) (relating to ‘‘Implementation of Auxil-
iary Ship Component Limitation’’), by striking ‘‘Subsection 
(a)(6)’’ and inserting ‘‘Subsection (a)(3)’’. 
(b) REVIEW
OF SELECT COMPONENTS.—The Secretary of the 
Defense shall expedite the review period under paragraph (3)(B) 
of section 2534(j) of title 10, United States Code, as redesignated 
by subsection (a), to not more than 60 days for applications sub-
mitted pursuant to such section 2534(j) for the following components 
for auxiliary ships: 
(1) Auxiliary equipment, including pumps, for all shipboard 
services. 
(2) Propulsion system components, including engines, 
reduction gears, and propellers. 
(3) Shipboard cranes. 
(4) Spreaders for shipboard cranes. 
SEC. 846. IMPROVING IMPLEMENTATION OF POLICY PERTAINING TO 
THE NATIONAL TECHNOLOGY AND INDUSTRIAL BASE. 
(a) ASSESSMENT OF RESEARCH AND DEVELOPMENT, MANUFAC-
TURING, AND PRODUCTION CAPABILITIES.— 
(1) IN GENERAL.—In developing the strategy required by 
section 2501 of title 10, United States Code, carrying out the 
program for analysis of the national technology and industrial 
base required by section 2503 of such title, and performing 
the assessments required under section 2505 of such title, 
the Secretary of Defense, in consultation with the Under Sec-
retary of Defense for Acquisition and Sustainment and the
H. R. 6395—381 
Under Secretary of Research and Engineering, shall assess 
the research and development, manufacturing, and production 
capabilities of the national technology and industrial base (as 
defined in section 2500 of such title) and other allies and 
partner countries. 
(2) IDENTIFICATION OF SPECIFIC TECHNOLOGIES, COMPANIES, 
LABORATORIES, AND FACTORIES.—The map of the industrial base 
described in section 2504 of title 10, United States Code, shall 
highlight specific technologies, companies, laboratories, and fac-
tories of, or located in, the national technology and industrial 
base of potential value to current and future Department of 
Defense plans and programs. 
(b) POLICY AND GUIDANCE.— 
(1) IN GENERAL.—Section 2440 of title 10, United States 
Code is amended— 
(A) by amending the section heading to read as follows: 
‘‘National technology and industrial base plans, 
policy, and guidance’’; 
(B) striking ‘‘The Secretary’’ and inserting the fol-
lowing: 
‘‘(a) IN GENERAL.—The Secretary’’; and 
(C) by adding at the end the following new subsection: 
‘‘(b) ACQUISITION POLICY
AND GUIDANCE.—The Secretary of 
Defense shall develop and promulgate acquisition policy and guid-
ance to the service acquisition executives, the heads of the appro-
priate Defense Agencies and Department of Defense Field Activities, 
and relevant program managers. Such policy and guidance shall 
be germane to the use of the research and development, manufac-
turing, and production capabilities identified pursuant to chapter 
148 of this title and the technologies, companies, laboratories, and 
factories in specific Department of Defense research and develop-
ment, 
international 
cooperative 
research, 
procurement, 
and 
sustainment activities.’’. 
(2) CLERICAL AMENDMENTS.—The table of sections at the 
beginning of chapter 144 of title 10, United States Code, is 
amended by striking the item relating to section 2440 and 
inserting the following new item: 
‘‘2440. National technology and industrial base plans, policy, and guidance.’’. 
(c) RESPONSIBILITIES OF THE NATIONAL DEFENSE TECHNOLOGY 
AND INDUSTRIAL BASE COUNCIL.—Section 2502(c) of title 10, United 
States Code, is amended— 
(1) in paragraph (2), by striking ‘‘and’’ at the end; 
(2) in paragraph (3), by striking the period at the end 
and inserting ‘‘; and’’; and 
(3) by adding at the end the following new paragraph: 
‘‘(4) collaboration with government officials of member 
countries of the national technology and industrial base in 
order to strengthen the national technology and industrial 
base.’’. 
(d) RECOMMENDATIONS
FOR ADDITIONAL MEMBERS
OF
THE 
NATIONAL TECHNOLOGY AND INDUSTRIAL BASE.— 
(1) IN GENERAL.—The Secretary of Defense, in consultation 
with the heads of any relevant Federal agencies, shall establish 
a process to consider the inclusion of additional member coun-
tries in the national technology and industrial base. 
(2) ELEMENTS.—The process developed under paragraph 
(1) shall include an analysis of—
H. R. 6395—382 
(A) the national security and foreign policy impacts, 
costs, and benefits to the United States and allied countries 
of the inclusion of any such additional member countries 
in the national technology and industrial base; 
(B) the economic impacts, costs, and benefits to entities 
within the United States and allied countries of the inclu-
sion of any such additional member countries into the 
national technology and industrial base, including an 
assessment of— 
(i) specific shortfalls in the technological and indus-
trial capacities of current member countries of the 
national technology and industrial base that would 
be addressed by inclusion of such additional member 
countries; 
(ii) specific areas in the industrial bases of current 
member countries of the national technology and indus-
trial base that would likely be impacted by additional 
competition if such additional member countries were 
included in the national technology and industrial base; 
and 
(iii) costs to reconstitute capability should such 
capability be lost to competition; and 
(C) other factors as determined relevant by the Sec-
retary. 
(3) CONCURRENCE.—For the purposes of the process devel-
oped under paragraph (1), the Secretary of Defense may rec-
ommend the inclusion of an additional member country in 
the national technology and industrial base only with the 
concurrence of the Secretary of State. 
SEC. 847. REPORT AND LIMITATION ON THE AVAILABILITY OF FUNDS 
RELATING 
TO 
ELIMINATING 
THE 
GAPS 
AND 
VULNERABILITIES IN THE NATIONAL TECHNOLOGY AND 
INDUSTRIAL BASE. 
(a) IN GENERAL.—Beginning January 1, 2021, if the Secretary 
of Defense has not submitted to the congressional defense commit-
tees the national security strategy for the national technology and 
industrial base required by section 2501(a) of title 10, United States 
Code, not more than 75 percent of the funds specified in subsection 
(b) may be obligated or expended until the date on which the 
Secretary submits such strategy to such committees. 
(b) FUNDS SPECIFIED.—The funds specified in this subsection 
are the funds authorized to be appropriated by this Act or otherwise 
made available for fiscal year 2021 for the Department of Defense 
for the following: 
(1) The immediate office of the Secretary of Defense. 
(2) The Office of the Under Secretary of Defense for Acquisi-
tion and Sustainment. 
SEC. 848. SUPPLY OF STRATEGIC AND CRITICAL MATERIALS FOR THE 
DEPARTMENT OF DEFENSE. 
(a) PREFERENCE
FOR SOURCING FROM
THE NATIONAL TECH-
NOLOGY AND INDUSTRIAL BASE.—The Secretary of Defense shall, 
to the maximum extent practicable, acquire strategic and critical 
materials required to meet the defense, industrial, and essential 
civilian needs of the United States in the following order of pref-
erence: 
(1) From sources located within the United States.
H. R. 6395—383 
(2) From sources located within the national technology 
and industrial base (as defined in section 2500 of title 10, 
United States Code). 
(3) From other sources as appropriate. 
(b) STATEMENT OF POLICY.— 
(1) IN GENERAL.—The Secretary of Defense shall pursue 
the following goals: 
(A) Not later than January 1, 2035, ensuring access 
to secure sources of supply for strategic and critical mate-
rials that will— 
(i) fully meet the demands of the domestic defense 
industrial base; 
(ii) eliminate the dependence of the United States 
on potentially vulnerable sources of supply for strategic 
and critical materials; and 
(iii) ensure that the Department of Defense is not 
reliant upon potentially vulnerable sources of supply 
for the processing or manufacturing of any strategic 
and critical materials deemed essential to national 
security by the Secretary of Defense. 
(B) Provide incentives for the defense industrial base 
to develop robust processing and manufacturing capabilities 
in the United States to refine strategic and critical mate-
rials for Department of Defense purposes. 
(C) Maintain secure sources of supply for strategic 
and critical materials required to maintain current military 
requirements in the event that international supply chains 
are disrupted. 
(2) METHODS.—The Secretary of Defense shall achieve the 
goals described in paragraph (1) through— 
(A) the development of guidance in consultation with 
appropriate officials of the Department of State, the Joint 
Staff, and the Secretaries of the military departments; 
(B) the continued and expanded use of existing pro-
grams, such as the National Defense Stockpile; 
(C) the continued use of authorities under title III 
of the Defense Production Act of 1950 (50 U.S.C. 4531 
et seq.); and 
(D) other methods, as the Secretary of Defense deems 
appropriate. 
SEC. 849. ANALYSES OF CERTAIN ACTIVITIES FOR ACTION TO ADDRESS 
SOURCING AND INDUSTRIAL CAPACITY. 
(a) ANALYSIS REQUIRED.— 
(1) IN GENERAL.—The Secretary of Defense, acting through 
the Undersecretary of Defense for Acquisition and Sustainment 
and other appropriate officials, shall review the items under 
subsection (c) to determine and develop appropriate actions, 
consistent with the policies, programs, and activities required 
under chapter 148 of title 10, United States Code, chapter 
83 of title 41, United States Code, and the Defense Production 
Act of 1950 (50 U.S.C. 4501 et seq.), including— 
(A) restricting procurement, with appropriate waivers 
for cost, emergency requirements, and non-availability of 
suppliers, including restricting procurement to— 
(i) suppliers in the United States;
H. R. 6395—384 
(ii) suppliers in the national technology and indus-
trial base (as defined in section 2500 of title 10, United 
States Code); 
(iii) suppliers in other allied nations; or 
(iv) other suppliers; 
(B) increasing investment through use of research and 
development or procurement activities and acquisition 
authorities to— 
(i) expand production capacity; 
(ii) diversify sources of supply; or 
(iii) promote alternative approaches for addressing 
military requirements; 
(C) prohibiting procurement from selected sources or 
nations; 
(D) taking a combination of actions described under 
subparagraphs (A),(B), and (C); or 
(E) taking no action. 
(2) CONSIDERATIONS.—The analyses conducted pursuant to 
paragraph (1) shall consider national security, economic, and 
treaty implications, as well as impacts on current and potential 
suppliers of goods and services. 
(b) 
REPORTING
ON
ANALYSES, 
RECOMMENDATIONS, 
AND 
ACTIONS.— 
(1) INTERIM BRIEF.—Not later than January 15, 2022, the 
Secretary of Defense shall submit to the congressional defense 
committees— 
(A) a summary of the findings of the analyses under-
taken for each item pursuant to subsection (a); 
(B) relevant recommendations resulting from the anal-
yses; and 
(C) descriptions of specific activities undertaken as a 
result of the analyses, including schedule and resources 
allocated for any planned actions. 
(2) REPORTING.—The Secretary of Defense shall include 
the analyses conducted under subsection (a), and any relevant 
recommendations and descriptions of activities resulting from 
such analyses, as appropriate, in each of the following sub-
mitted during the 2022 calendar year: 
(A) The annual report to Congress required under sec-
tion 2504 of title 10, United States Code. 
(B) The annual report on unfunded priorities of the 
national technology and industrial base required under 
section 2504a of such title. 
(C) Department of Defense technology and industrial 
base policy guidance prescribed under section 2506 of such 
title. 
(D) Activities to modernize acquisition processes to 
ensure integrity of industrial base pursuant to section 2509 
of such title. 
(E) Defense memoranda of understanding and related 
agreements considered in accordance with section 2531 
of such title. 
(F) Industrial base or acquisition policy changes. 
(G) Legislative proposals for changes to relevant stat-
utes which the Department shall consider, develop, and 
submit to the Committees on Armed Services of the Senate
H. R. 6395—385 
and House of Representatives not less frequently than once 
per fiscal year. 
(H) Quarterly briefings on the national technology and 
industrial base required under section 2504 of such title, 
as amended by section 842 of this Act. 
(I) Other actions as the Secretary of Defense deter-
mines appropriate. 
(c) LIST OF HIGH PRIORITY GOODS AND SERVICES FOR ANALYSES, 
RECOMMENDATIONS, AND ACTIONS.—The items described in this sub-
section are the following: 
(1) Goods and services covered under existing restrictions, 
where a waiver, exception, or domestic non-availability deter-
mination has been applied. 
(2) Printed circuit boards and other electronics components, 
consistent with the requirements of other provisions of this 
Act. 
(3) Pharmaceuticals, including active pharmaceutical 
ingredients. 
(4) Medical devices. 
(5) Therapeutics. 
(6) Vaccines. 
(7) Diagnostic medical equipment and consumables, 
including reagents and swabs. 
(8) Ventilators and related products. 
(9) Personal protective equipment. 
(10) Strategic and critical materials, including rare earth 
materials. 
(11) Natural or synthetic graphite. 
(12) Coal-based rayon carbon fibers. 
(13) Aluminum and aluminum alloys. 
SEC. 850. IMPLEMENTATION OF RECOMMENDATIONS FOR ASSESSING 
AND 
STRENGTHENING 
THE 
MANUFACTURING 
AND 
DEFENSE INDUSTRIAL BASE AND SUPPLY CHAIN RESIL-
IENCY. 
(a) SUBMISSION
OF
RECOMMENDATIONS
TO
SECRETARY
OF 
DEFENSE.—In order to fully implement the recommendations of 
the report of the Interagency Task Force (established by the Depart-
ment of Defense pursuant to section 2 of Executive Order 13806 
(82 Fed. Reg. 34597; July 21, 2017)) titled ‘‘Assessing and Strength-
ening the Manufacturing and Defense Industrial Base and Supply 
Chain Resiliency of the United States: Report to President Donald 
J. Trump by the Interagency Task Force in Fulfillment of Executive 
Order 13806’’ (September 2018), not later than 540 days after 
the date of the enactment of this Act, the Under Secretary of 
Defense for Acquisition and Sustainment shall submit to the Sec-
retary of Defense additional recommendations regarding United 
States industrial policies. The additional recommendations shall 
consist of specific executive actions, programmatic changes, regu-
latory changes, and legislative proposals and changes, as appro-
priate. 
(b) SCOPE OF ASSESSMENT.—In developing the additional rec-
ommendations required under subsection (a), the Under Secretary 
shall— 
(1) assess the macro forces and risk archetypes identified 
in the report of the Interagency Task Force described in sub-
section (a);
H. R. 6395—386 
(2) evaluate the success of responsive actions undertaken; 
and 
(3) identify any such recommendations that may require 
new legislative authorities. 
(c) OBJECTIVES.—The additional recommendations made pursu-
ant to subsection (a) shall— 
(1) aim to expand the defense industrial base to leverage 
contributions and capabilities of allies and partner countries; 
(2) identify and preserve the viability of domestic and 
trusted international suppliers; and 
(3) strengthen the domestic industrial base, especially in 
areas subject to the risk archetypes identified in the report 
of the Interagency Task Force described in subsection (a). 
(d) CONSULTATION.—In developing the additional recommenda-
tions required under subsection (a), the Under Secretary may 
engage through appropriate mechanisms with— 
(1) the Defense Science Board; 
(2) the Defense Innovation Board; 
(3) the Defense Business Board; 
(4) entities representing industry interests; and 
(5) entities representing labor interests. 
(e) SUBMISSION
OF RECOMMENDATIONS
TO PRESIDENT.—Not 
later than 30 days after receiving the additional recommendations 
required under subsection (a), the Secretary of Defense shall submit 
such recommendations, together with any supplementary views or 
recommendations, to the President, the Director of the Office of 
Management and Budget, the Assistant to the President for 
National Security Affairs, and the Director of the National Economic 
Council. 
(f) SUBMISSION OF RECOMMENDATIONS TO CONGRESS.—Not later 
than 30 days after submitting the recommendations under sub-
section (e), the Secretary of Defense shall submit to and brief 
the congressional defense committees on such recommendations. 
SEC. 851. REPORT ON STRATEGIC AND CRITICAL MATERIALS. 
(a) REPORT REQUIRED.—The Secretary of Defense shall submit 
to the Committees on Armed Services of the Senate and the House 
of Representatives an appendix to the annual report required in 
section 2504 of title 10, United States Code, due on March 1, 
2021, describing strategic and critical materials, including the gaps 
and vulnerabilities in supply chains of such materials. 
(b) ELEMENTS.—The Secretary of Defense shall include in the 
appendix required in subsection (a) the following: 
(1) An identification of the strategic and critical materials 
that are currently used by the Department of Defense. 
(2) To the extent practicable, an identification of the overall 
annual tonnage of each strategic or critical material identified 
pursuant to paragraph (1) that was used by the Department 
during the 10-year period ending on December 31, 2020. 
(3) An identification of domestic and international sources 
for the strategic and critical materials identified pursuant to 
paragraph (1). 
(4) An identification of risks relating to access to the stra-
tegic and critical materials identified pursuant to paragraph 
(1) from supply chain disruptions due to geopolitical, economic, 
and other vulnerabilities.
H. R. 6395—387 
(5) An evaluation of the benefits of a robust domestic 
supply chain for providing strategic and critical materials, as 
needed, to manufacturers in the defense industrial base. 
(6) An evaluation of the effects of the use of waivers by 
the Strategic Materials Protection Board established under sec-
tion 187 of title 10, United States Code, on the domestic supply 
of strategic and critical materials. 
(7) Recommendations for policies and procedures to ensure 
a capability within the Department of Defense to secure stra-
tegic and critical materials necessary for emerging technologies, 
as well as antimicrobial products, minerals, and metals for 
use in medical equipment and other technologies. 
(8) An identification of improvements required to the 
National Defense Stockpile in order to ensure the Secretary 
of Defense has access to the strategic and critical materials 
identified pursuant to paragraph (1). 
(9) An evaluation of the domestic processing and manufac-
turing capacity needed to supply the strategic and critical mate-
rials identified pursuant to paragraph (1) to the Secretary 
of Defense in an economic and secure manner. 
(10) In consultation with the Director of the United States 
Geological Survey, an identification of domestic locations with 
existing commercial manufacturing interest that are already 
verified to contain large supplies of the strategic and critical 
materials identified pursuant to paragraph (1). 
(11) An assessment of the feasibility of partnerships with 
institutions of higher education (as defined in section 101 of 
the Higher Education Act of 1965 (20 U.S.C. 1001)) that receive 
grants for the purpose of enhancing the security and stability 
of the supply chain for strategic and critical materials for 
the National Defense Stockpile, including an identification of 
barriers to such partnerships and recommendations for 
improving such partnerships. 
(12) Any other matter relating to strategic and critical 
materials that the Secretary considers appropriate. 
(c) FORM.—The appendix required in subsection (a) shall be 
submitted in unclassified form, but may include a classified annex. 
(d) STRATEGIC AND CRITICAL MATERIALS DEFINED.—In this sec-
tion, the term ‘‘strategic and critical materials’’ means materials, 
including rare earth elements, that are necessary to meet national 
defense and national security requirements, including requirements 
relating to supply chain resiliency, and for the economic security 
of the United States. 
SEC. 852. REPORT ON ALUMINUM REFINING, PROCESSING, AND MANU-
FACTURING. 
(a) IN GENERAL.—In preparing the annual report required 
under section 2504 of title 10, United States Code, due on March 
1, 2022, the Secretary of Defense shall include as an appendix 
to such report information on— 
(1) how authorities under the Defense Production Act of 
1950 (50 U.S.C. 4501 et seq.) could be used to provide incentives 
to increase activities relating to refining aluminum and the 
development of processing and manufacturing capabilities for 
aluminum; and
H. R. 6395—388 
(2) whether a new initiative would further the development 
of such processing and manufacturing capabilities for alu-
minum. 
(b) SUBMISSION.—Not later than March 1, 2022, the Secretary 
of Defense shall submit to the Committee on Financial Services 
of the House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate the appendix described 
in subsection (a). 
Subtitle E—Small Business Matters 
SEC. 861. INITIATIVES TO SUPPORT SMALL BUSINESSES IN THE 
NATIONAL TECHNOLOGY AND INDUSTRIAL BASE. 
(a) IN GENERAL.—The Secretary of Defense, acting through 
the Assistant Secretary of Defense for Industrial Base Policy (estab-
lished under section 903 of this Act) and other appropriate officials, 
in carrying out the activities described under subchapter II of 
chapter 148 of title 10, United States Code, shall establish initia-
tives to increase the effectiveness of the Department of Defense 
in specifically leveraging small businesses to eliminate gaps and 
vulnerabilities in the national technology and industrial base (as 
defined in section 2500 of title 10, United States Code) and expand 
the number of small businesses in the national technology and 
industrial base. 
(b) INITIATIVES.— 
(1) UPDATES
FOR
SMALL
BUSINESS
STRATEGY.—Not later 
than October 1, 2022, and biennially thereafter, shall update 
the small business strategy required under section 2283 of 
title 10, United States Code, and provide such updated strategy 
to the congressional defense committees. 
(2) IMPLEMENTATION PLAN.— 
(A) IN GENERAL.—Not later than March 1, 2023, and 
biennially thereafter, the Secretary of Defense shall develop 
an implementation plan consistent with the most recent 
small business strategy developed under such section 2283, 
and provide such plan to the congressional defense commit-
tees. 
(B) ELEMENTS.—The implementation plan described in 
subparagraph (A) shall include an identification of the fol-
lowing: 
(i) Organizations responsible for implementation 
activities. 
(ii) Metrics to evaluate progress of implementation 
activities. 
(iii) Resources to support implementation activi-
ties. 
(iv) Outcomes achieved as a result of executing 
the previous small business strategy developed under 
such section 2283. 
(3) MECHANISMS TO ASSESS AND SUPPORT SMALL BUSINESSES 
IN
NATIONAL
TECHNOLOGY
AND
INDUSTRIAL
BASE.—The Sec-
retary of Defense shall— 
(A) establish policies, procedures, and information 
repositories to identify small businesses in the defense 
supply chain, including—
H. R. 6395—389 
(i) small businesses participating in an acquisition 
program of a military department or Defense Agency 
(as defined in section 101(11) of title 10, United States 
Code); 
(ii) small businesses contracting with the Defense 
Logistics Agency; and 
(iii) other small businesses in the national tech-
nology and industrial base; 
(B) establish policies and procedures to assess the 
financial status of critical small businesses; and 
(C) enter into an agreement with the acquisition 
research organization within a civilian college or university 
that is described under section 2361a(a) of title 10, United 
States Code (commonly referred to as the ‘‘Acquisition 
Innovation Research Center’’), to analyze mechanisms that 
could be established to allow the Secretary of Defense 
to provide direct financial support to critical small 
businesses that require additional financial assistance, 
including critical small businesses that are— 
(i) contracting with the Defense Logistics Agency; 
(ii) subcontractors (at any tier); or 
(iii) in critical technology sectors. 
(c) REPORTS.— 
(1) REPORT ON ACTIVITIES.—Not later than October 1, 2021, 
the Assistant Secretary of Defense for Industrial Base Policy 
shall submit to the appropriate committees a report on activities 
undertaken pursuant to this section. 
(2) IMPLEMENTATION
PLAN
FOR
2019
SMALL
BUSINESS 
STRATEGY.—Not later than June 1, 2021, the Secretary of 
Defense shall submit an implementation plan for the small 
business strategy required under section 2283 of title 10, United 
States Code, and dated October 1, 2019, including an identifica-
tion of specific responsible individuals and organizations, mile-
stones and metrics, and resources to support activities identified 
in the implementation plan. 
(d) SMALL BUSINESS DEFINED.—In this section, the term ‘‘small 
business’’ has the meaning given by the Secretary of Defense, 
except that such term shall include prime contractors and sub-
contractors (at any tier). 
SEC. 862. TRANSFER OF VERIFICATION OF SMALL BUSINESS CON-
CERNS OWNED AND CONTROLLED BY VETERANS OR 
SERVICE-DISABLED VETERANS TO THE SMALL BUSINESS 
ADMINISTRATION. 
(a) TRANSFER DATE.—For purposes of this section, the term 
‘‘transfer date’’ means the date that is 2 years after the date 
of enactment of this Act. 
(b) AMENDMENT TO AND TRANSFER OF VETERAN-OWNED AND 
SERVICE-DISABLED VETERAN-OWNED BUSINESS DATABASE.— 
(1) AMENDMENT OF VETERAN-OWNED AND SERVICE-DISABLED 
VETERAN-OWNED BUSINESS DATABASE.—Effective on the transfer 
date, section 8127 of title 38, United States Code, is amended— 
(A) in subsection (e), by striking ‘‘the Secretary under 
subsection (f)’’ and inserting ‘‘the Administrator under sec-
tion 36 of the Small Business Act’’; 
(B) in subsection (f)—
H. R. 6395—390 
(i) by striking ‘‘the Secretary’’ each place it 
appears, except in the last place it appears in para-
graph (2)(A), and inserting ‘‘the Administrator’’; 
(ii) in paragraph (1), by striking ‘‘small business 
concerns owned and controlled by veterans with 
service-connected disabilities’’ and inserting ‘‘small 
business concerns owned and controlled by service- 
disabled veterans’’; 
(iii) in paragraph (2)— 
(I) in subparagraph (A)— 
(aa) by striking ‘‘to access’’ and inserting 
‘‘to obtain from the Secretary of Veterans 
Affairs’’; and 
(bb) by inserting ‘‘, United States Code,’’ 
after ‘‘title 5’’; and 
(II) by striking subparagraph (B) and inserting 
the following: 
‘‘(B) For purposes of this subsection— 
‘‘(i) the Secretary of Veterans Affairs shall— 
‘‘(I) verify an individual’s status as a veteran or a 
service-disabled veteran; and 
‘‘(II) establish a system to permit the Administrator 
to access, but not alter, the verification of such status; 
and 
‘‘(ii) the Administrator shall verify— 
‘‘(I) the status of a business concern as a small business 
concern; and 
‘‘(II) the ownership and control of such business con-
cern. 
‘‘(C) The Administrator may not certify a concern under sub-
section (b) or section 36A if the Secretary of Veterans Affairs 
cannot provide the verification described under subparagraph 
(B)(i)(I).’’; 
(iv) in paragraph (3), by striking ‘‘such veterans’’ 
and inserting ‘‘a veteran described in paragraph (1)’’; 
(v) by striking paragraphs (4) and (7); 
(vi) by redesignating paragraphs (5) and (6) as 
paragraphs (4) and (5), respectively, and redesignating 
paragraph (8) as paragraph (6); 
(vii) in paragraph (4), as so redesignated, by 
striking ‘‘The Secretary’’ and inserting ‘‘The Adminis-
trator’’; and 
(viii) in paragraph (6), as so redesignated— 
(I) in subparagraph (A)— 
(aa) by striking ‘‘verify the status of the 
concern as a small business concern or the 
ownership or control of the concern’’ and 
inserting ‘‘certify the status of the concern as 
a small business concern owned and controlled 
by veterans (under section 36A) or a small 
business concern owned and controlled by 
service-disabled veterans (under subsection (g) 
of this section)’’; 
(bb) 
by 
striking 
‘‘verification’’ 
and 
inserting ‘‘certification’’; and 
(cc) by striking ‘‘the Small Business 
Administration (as established under section
H. R. 6395—391 
5(i) of the Small Business Act)’’ and inserting 
‘‘the Administration (as established under sec-
tion 5(i))’’; 
(II) in subparagraph (B)— 
(aa) in clause (i)— 
(AA) by striking ‘‘small business con-
cern owned and controlled by veterans 
with service-connected disabilities’’ and 
inserting ‘‘small business concern owned 
and controlled by service-disabled vet-
erans’’; and 
(BB) by striking ‘‘of the Small Busi-
ness Administration’’; and 
(bb) in clause (ii)— 
(AA) by amending subclause (I) to 
read as follows: 
‘‘(I) the Secretary of Veterans Affairs or the Adminis-
trator; or’’; and 
(BB) in subclause (II), by striking ‘‘the 
contracting officer of the Department’’ and 
inserting 
‘‘the 
applicable 
contracting 
officer’’; and 
(III) by striking subparagraph (C); 
(C) by redesignating subsections (k) (relating to limita-
tions on subcontracting) and (l) (relating to definitions) 
as subsections (l) and (m), respectively; 
(D) by inserting after subsection (j) (relating to annual 
reports) the following new subsection: 
‘‘(k) ANNUAL TRANSFER FOR CERTIFICATION COSTS.—For each 
fiscal year, the Secretary of Veterans Affairs shall reimburse the 
Administrator in an amount necessary to cover any cost incurred 
by the Administrator for certifying small business concerns owned 
and controlled by veterans that do not qualify as small business 
concerns owned and controlled by service-disabled veterans for the 
Secretary for purposes of this section and section 8128 of this 
title. The Administrator is authorized to accept such reimburse-
ment. The amount of any such reimbursement shall be determined 
jointly by the Secretary and the Administrator and shall be provided 
from fees collected by the Secretary under multiple-award schedule 
contracts. Any disagreement about the amount shall be resolved 
by the Director of the Office of Management and Budget.’’; and 
(E) in subsection (m) (relating to definitions), as so 
redesignated— 
(i) by redesignating paragraphs (1), (2), and (3) 
as paragraphs (2), (3), and (4), respectively; and 
(ii) by inserting before paragraph (2), as so redesig-
nated, the following new paragraph: 
‘‘(1) The term ‘Administrator’ means the Administrator of 
the Small Business Administration.’’. 
(2) TRANSFER OF REQUIREMENTS RELATING TO DATABASE 
TO THE SMALL BUSINESS ACT.—Effective on the transfer date, 
subsection (f) of section 8127 of title 38, United States Code 
(as amended by paragraph (1)), is transferred to section 36 
of the Small Business Act (15 U.S.C. 657f), and inserted so 
as to appear after subsection (e). 
(3) CONFORMING
AMENDMENTS.—The following amend-
ments shall take effect on the transfer date:
H. R. 6395—392 
(A) SMALL BUSINESS ACT.—Section 3(q)(2)(C)(i)(III) of 
the Small Business Act (15 U.S.C. 632(q)(2)(C)(i)(III)) is 
amended by striking ‘‘section 8127(f) of title 38, United 
States Code’’ and inserting ‘‘section 36’’. 
(B) TITLE 38.—Section 8128 of title 38, United States 
Code, is amended by striking ‘‘maintained by the Secretary 
under section 8127(f) of this title’’ and inserting ‘‘main-
tained by the Administrator of the Small Business Adminis-
tration under section 36 of the Small Business Act’’. 
(c) ADDITIONAL REQUIREMENTS FOR DATABASE.— 
(1) ADMINISTRATOR
ACCESS
TO
DATABASE
BEFORE
THE 
TRANSFER DATE.—During the period between the date of the 
enactment of this Act and the transfer date, the Secretary 
of Veterans Affairs shall provide the Administrator of the Small 
Business Administration with access to the contents of the 
database described under section 8127(f) of title 38, United 
States Code. 
(2) RULE OF CONSTRUCTION.—Nothing in this section or 
the amendments made by this section may be construed— 
(A) as prohibiting the Administrator of the Small Busi-
ness Administration from combining the contents of the 
database described under section 8127(f) of title 38, United 
States Code, with other databases maintained by the 
Administration; or 
(B) as requiring the Administrator to use any system 
or technology related to the database described under sec-
tion 8127(f) of title 38, United States Code, on or after 
the transfer date to comply with the requirement to main-
tain a database under subsection (f) of section 36 of the 
Small Business Act (as transferred pursuant to subsection 
(b)(2) of this section). 
(3) RECOGNITION
OF
THE
ISSUANCE
OF
JOINT
REGULA-
TIONS.—The date specified under section 1832(e) of the National 
Defense Authorization Act for Fiscal Year 2017 (15 U.S.C. 
632 note) shall be deemed to be October 1, 2018. 
(d) PROCUREMENT PROGRAM FOR SMALL BUSINESS CONCERNS 
OWNED AND CONTROLLED BY SERVICE-DISABLED VETERANS.— 
(1) PROCUREMENT PROGRAM FOR SMALL BUSINESS CONCERNS 
OWNED AND CONTROLLED BY SERVICE-DISABLED VETERANS.—Sec-
tion 36 of the Small Business Act (15 U.S.C. 657f) is amended— 
(A) by redesignating subsection (d) as paragraph (3), 
adjusting the margin accordingly, and transferring such 
paragraph to subsection (h) of such section, as added by 
subparagraph (F) of this paragraph, so as to appear after 
paragraph (2); 
(B) by striking subsection (e); 
(C) by redesignating subsections (a), (b), and (c) as 
subsections (c), (d), and (e) respectively; 
(D) by inserting before subsection (c), as so redesig-
nated, the following new subsections: 
‘‘(a) CONTRACTING OFFICER DEFINED.—For purposes of this sec-
tion, the term ‘contracting officer’ has the meaning given such 
term in section 2101 of title 41, United States Code. 
‘‘(b) CERTIFICATION OF SMALL BUSINESS CONCERNS OWNED AND 
CONTROLLED BY SERVICE-DISABLED VETERANS.—With respect to a 
procurement program or preference established under this Act that 
applies to prime contractors, the Administrator shall—
H. R. 6395—393 
‘‘(1) certify the status of a concern as a small business 
concern owned and controlled by service-disabled veterans; and 
‘‘(2) require the periodic recertification of such status.’’; 
(E) in subsection (d), as so redesignated, by inserting 
‘‘certified under subsection (b)’’ before ‘‘if the contracting 
officer’’; 
(F) by adding at the end the following new subsections: 
‘‘(g) 
CERTIFICATION
REQUIREMENT.—Notwithstanding 
sub-
section (c), a contracting officer may only award a sole source 
contract to a small business concern owned and controlled by 
service-disabled veterans or a contract on the basis of competition 
restricted to small business concerns owned and controlled by 
service-disabled veterans if such a concern is certified by the 
Administrator as a small business concern owned and controlled 
by service-disabled veterans. 
‘‘(h) ENFORCEMENT; PENALTIES.— 
‘‘(1) VERIFICATION
OF
ELIGIBILITY.—In carrying out this 
section, the Administrator shall establish procedures relating 
to— 
‘‘(A) the filing, investigation, and disposition by the 
Administration of any challenge to the eligibility of a small 
business concern to receive assistance under this section 
(including a challenge, filed by an interested party, relating 
to the veracity of a certification made or information pro-
vided to the Administration by a small business concern 
under subsection (b)); and 
‘‘(B) verification by the Administrator of the accuracy 
of any certification made or information provided to the 
Administration by a small business concern under sub-
section (b). 
‘‘(2) EXAMINATIONS.—The procedures established under 
paragraph (1) shall provide for a program of examinations 
by the Administrator of any small business concern making 
a certification or providing information to the Administrator 
under subsection (b), to determine the veracity of any state-
ments or information provided as part of such certification 
or otherwise provided under subsection (b). 
‘‘(i) PROVISION OF DATA.—Upon the request of the Adminis-
trator, the head of any Federal department or agency shall promptly 
provide to the Administrator such information as the Administrator 
determines to be necessary to carry out subsection (b) or to be 
able to certify the status of the concern as a small business concern 
owned and controlled by veterans under section 36A.’’; and 
(G) in paragraph (3) of subsection (h), as redesignated 
and transferred by subparagraph (A) of this paragraph, 
by inserting ‘‘and section 36A’’ before the period at the 
end. 
(2) PENALTIES FOR MISREPRESENTATION.—Section 16 of the 
Small Business Act (15 U.S.C. 645) is amended— 
(A) in subsection (d)(1)— 
(i) in the matter preceding subparagraph (A)— 
(I) by striking the comma that immediately 
follows another comma; and 
(II) by striking ‘‘, a ‘small’’ and inserting ‘‘, 
a ‘small business concern owned and controlled
H. R. 6395—394 
by service-disabled veterans’, a ‘small business con-
cern owned and controlled by veterans’, a ‘small’’; 
and 
(ii) in subparagraph (A), by striking ‘‘9, 15, or 
31’’ and inserting ‘‘8, 9, 15, 31, 36, or 36A’’; and 
(B) in subsection (e)— 
(i) by striking the comma that immediately follows 
another comma; and 
(ii) by striking ‘‘, a ‘small’’ and inserting ‘‘, a ‘small 
business concern owned and controlled by service-dis-
abled veterans’, a ‘small business concern owned and 
controlled by veterans’, a ‘small’’. 
(e) CERTIFICATION FOR SMALL BUSINESS CONCERNS OWNED AND 
CONTROLLED BY VETERANS.—The Small Business Act (15 U.S.C. 
631 et seq.) is amended by inserting after section 36 the following 
new section: 
‘‘SEC. 36A. CERTIFICATION OF SMALL BUSINESS CONCERNS OWNED 
AND CONTROLLED BY VETERANS. 
‘‘(a) IN GENERAL.—With respect to the program established 
under section 8127 of title 38, United States Code, the Adminis-
trator shall— 
‘‘(1) certify the status of a concern as a small business 
concern owned and controlled by veterans; and 
‘‘(2) require the periodic recertification of such status. 
‘‘(b) ENFORCEMENT; PENALTIES.— 
‘‘(1) VERIFICATION
OF
ELIGIBILITY.—In carrying out this 
section, the Administrator shall establish procedures relating 
to— 
‘‘(A) the filing, investigation, and disposition by the 
Administration of any challenge to the eligibility of a small 
business concern to receive assistance under section 36 
(including a challenge, filed by an interested party, relating 
to the veracity of a certification made or information pro-
vided to the Administration by a small business concern 
under subsection (a)); and 
‘‘(B) verification by the Administrator of the accuracy 
of any certification made or information provided to the 
Administration by a small business concern under sub-
section (a). 
‘‘(2) EXAMINATION OF APPLICANTS.—The procedures estab-
lished under paragraph (1) shall provide for a program of 
examinations by the Administrator of any small business con-
cern making a certification or providing information to the 
Administrator under subsection (a), to determine the veracity 
of any statements or information provided as part of such 
certification or otherwise provided under subsection (a).’’. 
(f) STATUS
OF SELF-CERTIFIED SMALL BUSINESS CONCERNS 
OWNED AND CONTROLLED BY SERVICE-DISABLED VETERANS.— 
(1) IN GENERAL.—Notwithstanding any other provision of 
law, any small business concern (as defined under section 3 
of the Small Business Act (15 U.S.C. 632)) that self-certified 
as a small business concern owned and controlled by service- 
disabled veterans (as defined in section 36 of such Act (15 
U.S.C. 657f)) shall— 
(A) if the concern files a certification application with 
the Administrator of the Small Business Administration
H. R. 6395—395 
before the end of the 1-year period beginning on the 
transfer date, maintain such self-certification until the 
Administrator makes a determination with respect to such 
certification; and 
(B) if the concern does not file such a certification 
application before the end of the 1-year period beginning 
on the transfer date, lose, at the end of such 1-year period, 
any self-certification of the concern as a small business 
concern owned and controlled by service-disabled veterans. 
(2) NON-APPLICABILITY
TO
DEPARTMENT
OF
VETERANS 
AFFAIRS.—Paragraph (1) shall not apply to participation in 
contracts (including subcontracts) with the Department of Vet-
erans Affairs. 
(3) NOTICE.—The Administrator shall notify any small busi-
ness concern that self-certified as a small business concern 
owned and controlled by service-disabled veterans about the 
requirements of this section and the amendments made by 
this section, including the transfer date, and make such notice 
publicly available, on the date of the enactment of this Act. 
(g) TRANSFER OF THE CENTER FOR VERIFICATION AND EVALUA-
TION OF THE DEPARTMENT OF VETERANS AFFAIRS TO THE SMALL 
BUSINESS ADMINISTRATION.— 
(1) DEFINITION.—In this subsection, the term ‘‘function’’— 
(A) means any duty, obligation, power, authority, 
responsibility, right, privilege, activity, or program; and 
(B) does not include employees. 
(2) ABOLISHMENT.—The Center for Verification and Evalua-
tion of the Department of Veterans Affairs, as defined under 
section 74.1 of title 38, Code of Federal Regulations, is abolished 
effective on the transfer date. 
(3) TRANSFER
OF
FUNCTIONS.—Effective on the transfer 
date, all functions that, immediately before the transfer date, 
were functions of the Center for Verification and Evaluation 
shall be functions of the Small Business Administration. 
(4) TRANSFER
OF
ASSETS.—So much of the property 
(including contracts for the procurement of property or services) 
and records used, held, available, or to be made available 
in connection with a function transferred under this subsection 
shall be available to the Small Business Administration at 
such time or times as the President directs for use in connection 
with the functions transferred. 
(5) SAVINGS PROVISIONS.— 
(A) CONTINUING
EFFECT
OF
LEGAL
DOCUMENTS.—All 
orders, determinations, rules, regulations, permits, agree-
ments, grants, contracts, certificates, licenses, registrations, 
privileges, and other administrative actions— 
(i) which have been issued, made, granted, or 
allowed to become effective by the President, any Fed-
eral agency or official thereof, or by a court of com-
petent jurisdiction, in the performance of functions 
which are transferred under this subsection; and 
(ii) which are in effect on the transfer date, or 
were final before the transfer date and are to become 
effective on or after the transfer date, 
shall continue in effect according to their terms until modi-
fied, terminated, superseded, set aside, or revoked in 
accordance with law by the President, the Administrator
H. R. 6395—396 
of the Small Business Administration or other authorized 
official, a court of competent jurisdiction, or by operation 
of law. 
(B) PROCEEDINGS
NOT
AFFECTED.—The provisions of 
this subsection shall not affect any proceedings, including 
notices of proposed rulemaking, or any application for any 
license, permit, certificate, or financial assistance pending 
before the Department of Veterans Affairs on the transfer 
date, with respect to functions transferred by this sub-
section but such proceedings and applications shall be 
continued. Orders shall be issued in such proceedings, 
appeals shall be taken therefrom, and payments shall be 
made pursuant to such orders, as if this subsection had 
not been enacted, and orders issued in any such proceedings 
shall continue in effect until modified, terminated, super-
seded, or revoked by a duly authorized official, by a court 
of competent jurisdiction, or by operation of law. Nothing 
in this subparagraph shall be deemed to prohibit the dis-
continuance or modification of any such proceeding under 
the same terms and conditions and to the same extent 
that such proceeding could have been discontinued or modi-
fied if this subsection had not been enacted. 
(C) SUITS NOT AFFECTED.—The provisions of this sub-
section shall not affect suits commenced before the transfer 
date, and in all such suits, proceedings shall be had, 
appeals taken, and judgments rendered in the same 
manner and with the same effect as if this subsection 
had not been enacted. 
(D) NONABATEMENT OF ACTIONS.—No suit, action, or 
other proceeding commenced by or against the Department 
of Veterans Affairs, or by or against any individual in 
the official capacity of such individual as an officer of 
the Department of Veterans Affairs, shall abate by reason 
of the enactment of this subsection. 
(E) ADMINISTRATIVE ACTIONS RELATING TO PROMULGA-
TION OF REGULATIONS.—Any administrative action relating 
to the preparation or promulgation of a regulation by the 
Department of Veterans Affairs relating to a function trans-
ferred under this subsection may be continued by the 
Administrator of the Small Business Administration with 
the same effect as if this subsection had not been enacted. 
(F) EFFECT ON PERSONNEL.—The Secretary of Veterans 
Affairs shall appoint any employee represented by a labor 
organization accorded exclusive recognition under section 
7111 of title 5, United States Code, that is affected by 
the transfer of functions under this subsection to a position 
of a continuing nature for which the employee is qualified, 
at a grade and compensation not lower than the current 
grade and compensation of the employee. 
(6) REFERENCES.—Any reference in any other Federal law, 
Executive order, rule, regulation, or delegation of authority, 
or any document of or pertaining to a function of the Center 
for Verification and Evaluation that is transferred under this 
subsection is deemed, after the transfer date, to refer to the 
Small Business Administration. 
(h) REPORT.—Not later than 1 year after the date of the enact-
ment of this Act, and every 6 months thereafter until the transfer
H. R. 6395—397 
date, the Administrator of the Small Business Administration and 
Secretary of Veterans Affairs shall jointly submit to the Committee 
on Appropriations, the Committee on Small Business, and the Com-
mittee on Veterans’ Affairs of the House of Representatives and 
the Committee on Appropriations, the Committee on Small Business 
and Entrepreneurship, and the Committee on Veterans’ Affairs 
of the Senate a report on the planning for the transfer of functions 
and property required under this section and the amendments 
made by this section on the transfer date, which shall include— 
(1) a discussion of whether and how the verification data-
base and operations of the Center for Verification and Evalua-
tion of the Department of Veterans Affairs will be incorporated 
into the existing certification database of the Small Business 
Administration; 
(2) projections for the numbers and timing, in terms of 
fiscal year, of— 
(A) already verified concerns that will come up for 
recertification; and 
(B) self-certified concerns that are expected to apply 
for certification; 
(3) an explanation of how outreach to veteran service 
organizations, the service-disabled veteran-owned and veteran- 
owned small business community, and other stakeholders will 
be conducted; and 
(4) other pertinent information determined by the Adminis-
trator and the Secretary. 
SEC. 863. EMPLOYMENT SIZE STANDARD REQUIREMENTS FOR SMALL 
BUSINESS CONCERNS. 
(a) IN GENERAL.—Section 3(a)(2) of the Small Business Act 
(15 U.S.C. 632(a)(2)) is amended— 
(1) in subparagraph (A), by inserting ‘‘and subject to the 
requirements specified under subparagraph (C)’’ after ‘‘para-
graph (1)’’; and 
(2) in subparagraph (C)— 
(A) by inserting ‘‘(including the Administration when 
acting pursuant to subparagraph (A))’’ after ‘‘no Federal 
department or agency’’; and 
(B) in clause (ii)(I) by striking ‘‘12 months’’ and 
inserting ‘‘24 months’’. 
(b) EFFECTIVE DATE.—This section and the amendments made 
by this section shall take effect 1 year after the date of the enact-
ment of this Act. 
SEC. 864. MAXIMUM AWARD PRICE FOR SOLE SOURCE MANUFAC-
TURING CONTRACTS. 
The Small Business Act (15 U.S.C. 631 et seq.) is amended— 
(1) in section 8 (15 U.S.C. 637)— 
(A) 
in 
subsection 
(a)(1)(D)(i)(II), 
by 
striking 
‘‘$5,000,000’’ and inserting ‘‘$7,000,000’’; and 
(B) in subsection (m)— 
(i) in paragraph (7)(B)(i), by striking ‘‘$6,500,000’’ 
and inserting ‘‘$7,000,000’’; and 
(ii) in paragraph (8)(B)(i), by striking ‘‘$6,500,000’’ 
and inserting ‘‘$7,000,000’’; 
(2) in section 31(c)(2)(A)(ii)(I) (15 U.S.C. 657a(c)(2)(A)(ii)(I)), 
by striking ‘‘$5,000,000’’ and inserting ‘‘$7,000,000’’; and
H. R. 6395—398 
(3) in section 36(c)(2)(A), as so redesignated by section 
862(d)(1)(C), 
by 
striking 
‘‘$5,000,000’’ 
and 
inserting 
‘‘$7,000,000’’. 
SEC. 865. REPORTING REQUIREMENT ON EXPENDITURE AMOUNTS FOR 
THE SMALL BUSINESS INNOVATION RESEARCH PROGRAM 
AND THE SMALL BUSINESS TECHNOLOGY TRANSFER PRO-
GRAM. 
Section 9 of the Small Business Act (15 U.S.C. 638) is 
amended— 
(1) in subsection (b)(7)— 
(A) in subparagraph (F), by striking ‘‘and’’ at the end; 
(B) in subparagraph (G), by adding ‘‘and’’ after the 
semicolon at the end; and 
(C) by adding at the end the following: 
‘‘(H) with respect to a Federal agency to which sub-
section (f)(1) or (n)(1) applies, whether the Federal agency 
has complied with the applicable subsection for the year 
covered by the report;’’; 
(2) in subsection (g)(10), by inserting ‘‘, which section shall 
describe whether or not the Federal agency complied with the 
requirements of subsection (f) for the year covered by that 
plan and include a justification for failure to comply (if 
applicable),’’ after ‘‘a section on its SBIR program’’; and 
(3) in subsection (o)(8), by inserting ‘‘, which section shall 
describe whether or not the Federal agency complied with the 
requirements of subsection (n) for the year covered by that 
plan and include a justification for failure to comply (if 
applicable),’’ after ‘‘a section on its STTR program’’. 
SEC. 866. SMALL BUSINESSES IN TERRITORIES OF THE UNITED 
STATES. 
(a) DEFINITION OF COVERED TERRITORY BUSINESS.— 
(1) IN GENERAL.—Section 3 of the Small Business Act (15 
U.S.C. 632) is amended by adding at the end the following 
new subsection: 
‘‘(ff) COVERED TERRITORY BUSINESS.—In this Act, the term ‘cov-
ered territory business’ means a small business concern that has 
its principal office located in one of the following: 
‘‘(1) The United States Virgin Islands. 
‘‘(2) American Samoa. 
‘‘(3) Guam. 
‘‘(4) The Northern Mariana Islands.’’. 
(2) CONFORMING AMENDMENT.—Section 15(x) of the Small 
Business Act (15 U.S.C. 644(x)) is amended by striking para-
graph (3). 
(b) PRIORITY
FOR
SURPLUS
PROPERTY
TRANSFERS.—Section 
7(j)(13)(F)(iii) of the Small Business Act (15 U.S.C. 636(j)(13)(F)(iii)) 
is amended— 
(1) in subclause (I), by striking ‘‘means’’ and all that follows 
through the period at the end and inserting the following: 
‘‘means— 
‘‘(aa) in the case of a Puerto Rico business, the 
period beginning on August 13, 2018, and ending on 
the date on which the Oversight Board established 
under section 2121 of title 48 terminates; and 
‘‘(bb) in the case of a covered territory business, 
the period beginning on the date of the enactment
H. R. 6395—399 
of this item and ending on the date that is 4 years 
after such date of enactment.’’; and 
(2) in subclause (II)— 
(A) by inserting ‘‘or a covered territory business’’ after 
‘‘a Puerto Rico business’’; and 
(B) by striking ‘‘the Puerto Rico business’’ each place 
it appears and inserting ‘‘either such business’’. 
(c) CONTRACTING INCENTIVES FOR PROTEGE FIRMS THAT ARE 
COVERED TERRITORY BUSINESSES.— 
(1) CONTRACTING INCENTIVES.—Section 45(a) of the Small 
Business Act (15 U.S.C. 657r(a)) is amended by adding at 
the end the following new paragraph: 
‘‘(4) COVERED TERRITORY BUSINESSES.—During the period 
beginning on the date of the enactment of this paragraph 
and ending on the date that is 4 years after such date of 
enactment, the Administrator shall identify potential incentives 
to a covered territory mentor that awards a subcontract to 
its covered territory protege, including— 
‘‘(A) positive consideration in any past performance 
evaluation of the covered territory mentor; and 
‘‘(B) the application of costs incurred for providing 
training to such covered territory protege to the subcon-
tracting plan (as required under paragraph (4) or (5) of 
section 8(d)) of the covered territory mentor.’’. 
(2) MENTOR-PROTEGE RELATIONSHIPS.—Section 45(b)(3)(A) 
of the Small Business Act (15 U.S.C. 657r(b)(3)(A)) is amended 
by striking ‘‘relationships are’’ and all that follows through 
the period at the end and inserting the following: ‘‘relation-
ships— 
‘‘(i) are between a covered protege and a covered 
mentor; or 
‘‘(ii) are between a covered territory protege and 
a covered territory mentor.’’. 
(3) DEFINITIONS.—Section 45(d) of the Small Business Act 
(15 U.S.C. 657r(d)) is amended by adding at the end the fol-
lowing new paragraphs: 
‘‘(6) COVERED TERRITORY MENTOR.—The term ‘covered terri-
tory mentor’ means a mentor that enters into an agreement 
under this Act, or under any mentor-protege program approved 
under subsection (b)(1), with a covered territory protege. 
‘‘(7) COVERED
TERRITORY
PROTEGE.—The term ‘covered 
territory protege’ means a protege of a covered territory mentor 
that is a covered territory business.’’. 
SEC. 867. ELIGIBILITY OF THE COMMONWEALTH OF THE NORTHERN 
MARIANA 
ISLANDS 
FOR 
CERTAIN 
SMALL 
BUSINESS 
ADMINISTRATION PROGRAMS. 
The Small Business Act (15 U.S.C. 631 et seq.) is amended— 
(1) in section 21(a)— 
(A) in paragraph (1), by inserting before ‘‘The Adminis-
tration shall require’’ the following: ‘‘The previous sentence 
shall not apply to an applicant that has its principal office 
located in the Commonwealth of the Northern Mariana 
Islands.’’; and 
(B) in paragraph (4)(C)(ix), by striking ‘‘and American 
Samoa’’ and inserting ‘‘American Samoa, and the Common-
wealth of the Northern Mariana Islands’’; and
H. R. 6395—400 
(2) in section 34(a)(9), by striking ‘‘and American Samoa’’ 
and inserting ‘‘American Samoa, and the Commonwealth of 
the Northern Mariana Islands’’. 
SEC. 868. PAST PERFORMANCE RATINGS OF CERTAIN SMALL BUSINESS 
CONCERNS. 
(a) PAST PERFORMANCE RATINGS OF JOINT VENTURES FOR SMALL 
BUSINESS CONCERNS.—Section 15(e) of the Small Business Act (15 
U.S.C. 644(e)) is amended by adding at the end the following 
new paragraph: 
‘‘(5) PAST PERFORMANCE RATINGS OF JOINT VENTURES FOR 
SMALL
BUSINESS
CONCERNS.—With respect to evaluating an 
offer for a prime contract made by a small business concern 
that previously participated in a joint venture with another 
business concern (whether or not such other business concern 
was a small business concern), the Administrator shall establish 
regulations— 
‘‘(A) allowing the small business concern to elect to 
use the past performance of the joint venture if the small 
business concern has no relevant past performance of its 
own; 
‘‘(B) requiring the small business concern, when 
making an election under subparagraph (A)— 
‘‘(i) to identify to the contracting officer the joint 
venture of which the small business concern was a 
member; and 
‘‘(ii) to inform the contracting officer what duties 
and responsibilities the small business concern carried 
out as part of the joint venture; and 
‘‘(C) requiring a contracting officer, if the small busi-
ness concern makes an election under subparagraph (A), 
to consider the past performance of the joint venture when 
evaluating the past performance of the small business con-
cern, giving due consideration to the information provided 
under subparagraph (B)(ii).’’. 
(b) PAST PERFORMANCE RATINGS OF FIRST-TIER SMALL BUSINESS 
SUBCONTRACTORS.—Section 8(d)(17) of the Small Business Act (15 
U.S.C. 637(d)(l7)) is amended to read as follows: 
‘‘(17) PAST PERFORMANCE RATINGS FOR CERTAIN SMALL BUSI-
NESS SUBCONTRACTORS.—Upon request by a small business con-
cern that performed as a first tier subcontractor on a covered 
contract (as defined in paragraph (13)(A)), the prime contractor 
for such covered contract shall submit to such small business 
concern a record of past performance for such small business 
concern with respect to such covered contract. If a small busi-
ness concern elects to use such record of past performance, 
a contracting officer shall consider such record of past perform-
ance when evaluating an offer for a prime contract made by 
such small business concern.’’. 
(c) RULEMAKING.—Not later than 120 days after the date of 
the enactment of this Act, the Administrator of the Small Business 
Administration shall issue rules to carry out this section and the 
amendments made by this section. 
SEC. 869. EXTENSION OF PARTICIPATION IN 8(A) PROGRAM. 
(a) IN GENERAL.—The Administrator of the Small Business 
Administration shall ensure that a small business concern partici-
pating in the program established under section 8(a) of the Small
H. R. 6395—401 
Business Act (15 U.S.C. 637) on or before September 9, 2020, 
may elect to extend such participation by a period of 1 year, regard-
less of whether such concern previously elected to suspend participa-
tion in such program pursuant to guidance of the Administrator. 
(b) EMERGENCY RULEMAKING AUTHORITY.—Not later than 15 
days after the date of enactment of this section, the Administrator 
shall issue regulations to carry out this section without regard 
to the notice requirements under section 553(b) of title 5, United 
States Code. 
SEC. 870. COMPLIANCE OF OFFICES OF SMALL BUSINESS AND DIS-
ADVANTAGED BUSINESS UTILIZATION. 
(a) REPORT.—If the Comptroller General of the United States 
has determined that a Director of Small and Disadvantaged Busi-
ness Utilization of a Federal agency is not in compliance with 
the requirements of section 15(k) of the Small Business Act (15 
U.S.C. 644(k)), such Director shall submit, not later than the speci-
fied date, to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business of the 
House of Representatives a report that includes the reasons for 
such noncompliance and the specific actions the Director shall take 
to remedy such noncompliance. 
(b) SPECIFIED DATE DEFINED.—In this section, the term ‘‘speci-
fied date’’ means the later of— 
(1) the date that is 120 days after the date on which 
a determination is made under subsection (a); and 
(2) 120 days after the date of the enactment of this Act. 
SEC. 871. CATEGORY MANAGEMENT TRAINING. 
(a) IN GENERAL.—Not later than 8 months after the date of 
the enactment of this section, the Administrator of the Small Busi-
ness Administration, in coordination with the Administrator of the 
Office of Federal Procurement Policy and any other head of a 
Federal agency (as determined by the Administrator), shall develop 
a training curriculum on category management for staff of Federal 
agencies with procurement or acquisition responsibilities. Such 
training shall include— 
(1) best practices for procuring goods and services from 
small business concerns (as defined under section 3 of the 
Small Business Act (15 U.S.C. 632)); and 
(2) information on avoiding conflicts with the requirements 
of the Small Business Act (15 U.S.C. 631 et seq.). 
(b) USE OF CURRICULUM.—The Administrator of the Small Busi-
ness Administration— 
(1) shall ensure that staff for Federal agencies described 
in subsection (a) receive the training described in such sub-
section; and 
(2) may request the assistance of the relevant Director 
of Small and Disadvantaged Business Utilization (as described 
in section 15(k) of the Small Business Act (15 U.S.C. 644(k))) 
to carry out the requirements of paragraph (1). 
(c) SUBMISSION TO CONGRESS.—The Administrator of the Small 
Business Administration shall provide a copy of the training cur-
riculum developed under subsection (a) to the Committee on Small 
Business of the House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate.
H. R. 6395—402 
(d) CATEGORY MANAGEMENT DEFINED.—In this section, the term 
‘‘category management’’ has the meaning given by the Director 
of the Office of Management and Budget. 
Subtitle F—Other Matters 
SEC. 881. REVIEW OF AND REPORT ON OVERDUE ACQUISITION AND 
CROSS-SERVICING AGREEMENT TRANSACTIONS. 
(a) REVIEW.—The Secretary of Defense, acting through the offi-
cial designated to provide oversight of acquisition and cross-serv-
icing agreements under section 2342(f) of title 10, United States 
Code, shall conduct a review of acquisition and cross-servicing 
agreement transactions for which reimbursement to the United 
States is overdue under section 2345 of such title. 
(b) REPORT.— 
(1) IN GENERAL.—Not later than March 1, 2021, the des-
ignated official described in subsection (a) shall submit to the 
congressional defense committees a report on the results of 
the review of acquisition and cross-servicing agreement trans-
actions described in such subsection. 
(2) ELEMENTS.—The report required by paragraph (1) shall 
include the following: 
(A) For each such transaction valued at $1,000,000 
or more for which reimbursement to the United States 
was overdue as of October 1, 2020— 
(i) the total amount of the transaction; 
(ii) the unreimbursed balance of the transaction; 
(iii) the date on which the transaction was origi-
nally made; 
(iv) the date on which the most recent request 
for payment was sent to the relevant foreign govern-
ment or international organization; and 
(v) a plan for securing reimbursement from the 
foreign government or international organization. 
(B) A description of the steps taken to implement the 
recommendations made in the March 4, 2020, report of 
the Government Accountability Office titled ‘‘Defense Logis-
tics Agreements: DOD Should Improve Oversight and Seek 
Payment from Foreign Partners for Thousands of Orders 
It Identifies as Overdue’’, including efforts to validate data 
reported under this subsection and in the system of the 
Department of Defense to record data on acquisition and 
cross-servicing agreement transactions. 
(C) The amount of reimbursement received from a 
foreign government or international organization, as 
applicable, for each order— 
(i) for which the reimbursement is recorded as 
overdue in the system of the Department of Defense 
to record data on acquisition and cross-servicing agree-
ment transactions; and 
(ii) that was authorized during the period begin-
ning on October 1, 2013, and ending on September 
30, 2020. 
(D) A plan for improving recordkeeping of acquisition 
and cross-servicing agreement transactions and ensuring
H. R. 6395—403 
timely reimbursement by a foreign government or inter-
national organization. 
(E) Any other matter considered relevant by the des-
ignated official described in subsection (a). 
SEC. 882. DOMESTIC COMPARATIVE TESTING ACTIVITIES. 
Section 2350a(g) of title 10, United States Code, is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘conventional defense equipment, 
munitions, and technologies manufactured and devel-
oped by countries referred to in subsection (a)(2)’’ and 
inserting ‘‘covered equipment, munitions, and tech-
nologies’’; and 
(ii) by striking ‘‘such equipment, munitions, and 
technologies’’ and inserting ‘‘such covered equipment, 
munitions, and technologies’’; and 
(B) in subparagraph (B), by inserting ‘‘such covered’’ 
before ‘‘equipment, munitions, and technologies’’; 
(2) in paragraph (2), by striking ‘‘equipment, munitions, 
and technologies of the type described in paragraph (1)’’ and 
inserting ‘‘covered equipment, munitions, and technologies’’; and 
(3) by adding at the end the following new paragraph: 
‘‘(4) COVERED EQUIPMENT, MUNITIONS, AND TECHNOLOGIES 
DEFINED.—In this subsection, the term ‘covered equipment, muni-
tions, and technologies’ means— 
‘‘(A) conventional defense equipment, munitions, and tech-
nologies manufactured and developed by countries referred to in 
subsection (a)(2); and 
‘‘(B) conventional defense equipment, munitions, and tech-
nologies manufactured and developed domestically.’’. 
SEC. 883. PROHIBITION ON AWARDING OF CONTRACTS TO CONTRAC-
TORS THAT REQUIRE NONDISCLOSURE AGREEMENTS 
RELATING TO WASTE, FRAUD, OR ABUSE. 
(a) IN GENERAL.—The Secretary of Defense may not award 
a contract for the procurement of goods or services to a contractor 
unless the contractor represents that— 
(1) it does not require its employees to sign internal con-
fidentiality agreements or statements that would prohibit or 
otherwise restrict such employees from lawfully reporting 
waste, fraud, or abuse related to the performance of a Depart-
ment of Defense contract to a designated investigative or law 
enforcement representative of the Department of Defense 
authorized to receive such information; and 
(2) it will inform its employees of the limitations on con-
fidentiality agreements and other statements described in para-
graph (1). 
(b) RELIANCE
ON REPRESENTATION.—A contracting officer of 
the Department of Defense may rely on the representation of a 
contractor as to the requirements described under subsection (a) 
in awarding a contract unless the officer has reason to question 
the accuracy of the representation. 
SEC. 884. PROGRAM MANAGEMENT IMPROVEMENT OFFICERS AND 
PROGRAM MANAGEMENT POLICY COUNCIL. 
Section 1126 of title 31, United States Code, is amended—
H. R. 6395—404 
(1) in subsection (a)(1), by inserting after ‘‘senior executive 
of the agency’’ the following: ‘‘, who has significant program 
and project management oversight responsibilities,’’; and 
(2) in subsection (b)(4) by striking ‘‘twice’’ and inserting 
‘‘four times’’. 
SEC. 885. DISCLOSURE OF BENEFICIAL OWNERS IN DATABASE FOR 
FEDERAL AGENCY CONTRACT AND GRANT OFFICERS. 
Section 2313(d) of title 41, United States Code, is amended— 
(1) in paragraph (3), by inserting ‘‘, and an identification 
of any beneficial owner of such corporation,’’ after ‘‘to the cor-
poration’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(4) DEFINITIONS.—In this subsection: 
‘‘(A) BENEFICIAL
OWNERSHIP.—The term ‘beneficial 
ownership’ has the meaning given under section 847 of 
the National Defense Authorization Act for Fiscal Year 
2020 (Public Law 116–92; 133 Stat. 1505; 10 U.S.C. 2509 
note). 
‘‘(B) CORPORATION.—The term ‘corporation’ means any 
corporation, company, limited liability company, limited 
partnership, business trust, business association, or other 
similar entity.’’. 
SEC. 886. REPEAL OF PILOT PROGRAM ON PAYMENT OF COSTS FOR 
DENIED GOVERNMENT ACCOUNTABILITY OFFICE BID PRO-
TESTS. 
Section 827 of the National Defense Authorization Act for Fiscal 
Year 2018 (Public Law 115–91; 131 Stat. 1467; 10 U.S.C. 2304 
note) is repealed. 
SEC. 887. AMENDMENTS TO SUBMISSIONS TO CONGRESS RELATING 
TO CERTAIN FOREIGN MILITARY SALES. 
Section 887(b) of the National Defense Authorization Act for 
Fiscal Year 2018 (Public Law 115–91; 22 U.S.C. 2761 note) is 
amended— 
(1) by striking ‘‘December 31, 2021’’ each place it appears 
and inserting ‘‘December 31, 2022’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(3) APPLICABILITY.—The requirements of this subsection 
apply only to foreign military sales processes within the Depart-
ment of Defense.’’. 
SEC. 888. REVISION TO REQUIREMENT TO USE FIRM FIXED-PRICE CON-
TRACTS FOR FOREIGN MILITARY SALES. 
Section 830 of the National Defense Authorization Act for Fiscal 
Year 2017 (22 U.S.C. 2762 note) is repealed. 
SEC. 889. ASSESSMENT AND ENHANCEMENT OF NATIONAL SECURITY 
INNOVATION BASE. 
(a) IN GENERAL.—The Secretary of Defense shall assess the 
economic forces and structures shaping the capacity of the national 
security innovation base, and develop policies to address such forces 
and structures. 
(b) ELEMENTS.—The assessment required under subsection (a) 
shall review the following matters as they pertain to the innovative 
and manufacturing capacity of the national security innovation 
base:
H. R. 6395—405 
(1) A detailed description of the entities comprising the 
national security innovation base and how they currently inter-
act. 
(2) Competition and antitrust policy. 
(3) Immigration policy, including the policies germane to 
the attraction and retention of skilled immigrants. 
(4) Education funding and policy. 
(5) Demand stabilization and social safety net policies. 
(6) The structure and incentives of financial markets and 
the effects of such on the access of businesses to credit. 
(7) Trade policy, including export control policy and trade 
remedies. 
(8) The tax code and its effect on investment, including 
the Federal research and development tax credit. 
(9) Regulatory policy, including with respect to land use, 
environmental impact, and construction and manufacturing 
activities. 
(10) Economic and manufacturing infrastructure. 
(11) Intellectual property policy. 
(12) Federally funded investments in the economy, 
including investments in research and development and 
advanced manufacturing. 
(13) Federally funded purchases of goods and services. 
(14) Federally funded investments to expand domestic 
manufacturing capabilities. 
(15) Coordination and collaboration with allies and part-
ners. 
(16) Measures to protect technological advantages over 
adversaries and to counteract hostile or destabilizing activity 
by adversaries. 
(17) Other matters as the Secretary of Defense deems 
appropriate. 
(c) ENGAGEMENT WITH CERTAIN ENTITIES.—In conducting the 
assessment required under subsection (a), the Secretary of Defense 
shall engage through appropriate mechanisms with— 
(1) the Defense Science Board; 
(2) the Defense Innovation Board; 
(3) the Defense Business Board; 
(4) entities representing industry interests; and 
(5) entities representing labor interests. 
(d) SUBMISSION OF ASSESSMENT.—Not later than March 1, 2022, 
the Secretary of Defense shall submit to the President, the Director 
of the Office of Management and Budget, the Assistant to the 
President for National Security Affairs, the Director of the National 
Economic Council, and the congressional defense committees the 
assessment required under subsection (a), together with rec-
ommendations and any additional views of the Secretary. 
SEC. 890. IDENTIFICATION OF CERTAIN CONTRACTS RELATING TO 
CONSTRUCTION OR MAINTENANCE OF A BORDER WALL. 
With respect to contract actions reported to the Federal 
Procurement Data system established pursuant to section 1122(a)(4) 
of title 41, United States Code (or any successor system), the 
Secretary of Defense shall identify any contracts (including any 
task order contract (as defined in section 2304d of title 10, United 
States Code) and any modifications to a contract) entered into 
by the Secretary relating to the construction or maintenance of
H. R. 6395—406 
a barrier along the international border between the United States 
and Mexico that have an estimated value greater than or equal 
to $7,000,000. 
SEC. 891. WAIVERS OF CERTAIN CONDITIONS FOR PROGRESS PAY-
MENTS UNDER CERTAIN CONTRACTS DURING THE COVID– 
19 NATIONAL EMERGENCY. 
(a) WAIVER OF PROGRESS PAYMENTS REQUIREMENTS.—The Sec-
retary of Defense may waive the requirements of section 2307(e)(2) 
of title 10, United States Code, with respect to progress payments 
for any undefinitized contractual action (as defined in section 2326 
of title 10, United States Code; in this section referred to as ‘‘UCA’’) 
if the Secretary determines that the waiver is necessary due to 
the national emergency for the Coronavirus Disease 2019 (COVID– 
19) and— 
(1) a contractor performing the contract for which a UCA 
is entered into has not already received increased progress 
payments from the Secretary of Defense on contractual actions 
other than UCAs; or 
(2) a contractor performing the contract for which a UCA 
is entered into, and that has received increased progress pay-
ments from the Secretary of Defense on contractual actions 
other than UCAs, can demonstrate that the contractor has 
promptly provided the amount of the increase to any sub-
contractors (at any tier), small business concerns (as defined 
under section 3 of the Small Business Act (15 U.S.C. 632)), 
or suppliers of the contractor. 
(b) DEFINITIZATION.—With respect to a UCA that not been 
definitized for a period of 180 days beginning on the date on 
which such UCA was entered into, the Secretary of Defense may 
only use the waiver authority described in subsection (a) if the 
Secretary (or a designee at a level not below the head of a con-
tracting activity) provides a certification to the congressional 
defense committees that such UCA will be definitized within 60 
days after the date on which the waiver is issued. 
(c) SUBMISSION.—For each use of the waiver authority under 
subsection (a), the Secretary of Defense shall submit to the congres-
sional defense committees an estimate of the amounts to be provided 
to subcontractors (at any tier), small business concerns, and sup-
pliers, including an identification of the specific entities receiving 
an amount from an increased progress payment described under 
such subsection (a). 
TITLE IX—DEPARTMENT OF DEFENSE 
ORGANIZATION AND MANAGEMENT 
Subtitle A—Office of the Secretary of Defense and Related Matters 
Sec. 901. Repeal of position of Chief Management Officer of the Department of De-
fense. 
Sec. 902. Assistant Secretary of Defense for Special Operations and Low Intensity 
Conflict and related matters. 
Sec. 903. Assistant Secretary of Defense for Industrial Base Policy. 
Sec. 904. Assistant Secretary of Defense for Energy, Installations, and Environ-
ment. 
Sec. 905. Office of Local Defense Community Cooperation. 
Sec. 906. Input from the Vice Chief of the National Guard Bureau to the Joint Re-
quirements Oversight Council. 
Sec. 907. Assignment of responsibility for the Arctic region within the Office of the 
Secretary of Defense.