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(1) COVERED WEAPONS PLATFORMS.—The term 
‘‘covered weapons platforms’’ means weapons plat-
forms identified in the reports submitted under sec-
tion 1251(d)(1) of the William M. (Mac) Thornberry 
National Defense Authorization Act for Fiscal Year 
2021 (10 U.S.C. 113 note). 
(2) MONITORING
ENTITY.—The term ‘‘moni-
toring entity’’ means the entity that is operating 
under an agreement with the Secretary of Defense to 
carry out the monitoring and analysis of supply 
chains under the pilot program pursuant to a selec-
tion under subsection (b)(1). 
(3) PILOT PROGRAM.—The term ‘‘pilot program’’ 
means the pilot program established under subsection 
(a). 
(4) SECRETARY
CONCERNED.—The term ‘‘Sec-
retary concerned’’ has the meaning given such term 
in section 101(a) of title 10, United States Code. 
SEC. 868. STUDY AND REPORT ON COUNTRY OF ORIGIN OF 
END ITEMS AND COMPONENTS PROCURED BY 
DEPARTMENT OF DEFENSE. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study to identify the degree to which 
the Department of Defense is dependent on entities located 
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in foreign countries for the procurement of certain end 
items and components. 
(b) REPORT.— 
(1) IN GENERAL.—Not later than 6 months after 
the date of the enactment of this section, the Comp-
troller General of the United States shall submit to 
the Committees on Armed Services of the Senate and 
the House of Representatives a report detailing the 
findings of the study described in subsection (a). 
(2) ELEMENTS.—The report described in para-
graph (1) shall contain the following: 
(A) A description of the extent to which the 
procurement processes of the Department of De-
fense allow for the determination of the country 
of origin of the end items and components stud-
ied under subsection (a). 
(B) Descriptions of the vulnerabilities in the 
supply chains for end items and components and 
the countries from which such end items and 
components are procured. 
(C) Recommendations for legislative or ad-
ministrative action to address the vulnerabilities 
described in subparagraph (B), including plans 
for alternative supply chains or alternative 
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countries from which to procure end items and 
components. 
(c) DEFINITIONS.—In this section: 
(1) COMPONENT.—The term ‘‘component’’ has 
the meaning given the term in section 3011 of title 
10, United States Code. 
(2) END ITEM.—The term ‘‘end item’’ has the 
meaning given the term in section 4863(n) of title 10, 
United States Code. 
SEC. 869. ENHANCED DOMESTIC CONTENT REQUIREMENT 
FOR MAJOR DEFENSE ACQUISITION PRO-
GRAMS. 
(a) ASSESSMENT REQUIRED.— 
(1) IN GENERAL.—Not later than one year after 
the date of the enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense com-
mittees a report assessing the domestic source content 
of procurements carried out in connection with a 
major defense acquisition program. 
(2) INFORMATION REPOSITORY.—The Secretary 
of Defense shall establish an information repository 
for the collection and analysis of information related 
to domestic source content for products the Secretary 
deems critical, where such information can be used 
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for continuous data analysis and program manage-
ment activities. 
(b) ENHANCED DOMESTIC CONTENT REQUIREMENT.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), for purposes of chapter 83 of title 41, 
United States Code, manufactured articles, materials, 
or supplies procured in connection with a major de-
fense acquisition program are manufactured substan-
tially all from articles, materials, or supplies mined, 
produced, or manufactured in the United States if the 
cost of such component articles, materials, or sup-
plies— 
(A) supplied not later than the date of the 
enactment of this Act, exceeds 60 percent of cost 
of the manufactured articles, materials, or sup-
plies procured; 
(B) supplied during the period beginning 
January 1, 2024, and ending December 31, 
2028, exceeds 65 percent of the cost of the manu-
factured articles, materials, or supplies; and 
(C) supplied on or after January 1, 2029, 
exceeds 75 percent of the cost of the manufac-
tured articles, materials, or supplies. 
(2) EXCLUSION
FOR
CERTAIN
MANUFACTURED 
ARTICLES.—Paragraph (1) shall not apply to manu-
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factured articles that consist wholly or predominantly 
of iron, steel, or a combination of iron and steel. 
(3) RULEMAKING
TO
CREATE
A
FALLBACK 
THRESHOLD.— 
(A) IN GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the 
Secretary of Defense shall issue rules to deter-
mine the treatment of the lowest price offered for 
a foreign end product for which 55 percent or 
more of the component articles, materials, or 
supplies of such foreign end product are manu-
factured substantially all from articles, mate-
rials, or supplies mined, produced, or manufac-
tured in the United States if— 
(i) the application paragraph (1) re-
sults in an unreasonable cost; or 
(ii) no offers are submitted to supply 
manufactured articles, materials, or sup-
plies manufactured substantially all from 
articles, materials, or supplies mined, pro-
duced, or manufactured in the United 
States. 
(B) TERMINATION.—Rules issued under this 
paragraph shall cease to have force or effect on 
January 1, 2031. 
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(4) APPLICABILITY.—The requirements of this 
subsection— 
(A) shall apply to contracts entered into on 
or after the date of the enactment of this Act; 
(B) shall not apply to articles manufac-
tured in countries that have executed a recip-
rocal defense procurement memorandum of un-
derstanding with the United States entered into 
pursuant to section 4851 of title 10, United 
States Code; and 
(C) shall not apply to a country that is a 
member of the national technology and indus-
trial base (as defined by section 4801 of title 10, 
United States Code). 
(c) MAJOR DEFENSE ACQUISITION PROGRAM DE-
FINED.—The term ‘‘major defense acquisition program’’ has 
the meaning given in section 4201 of title 10, United States 
Code. 
Subtitle F—Small Business Matters 
SEC. 881 ENTREPRENEURIAL INNOVATION PROJECT DES-
IGNATIONS. 
(a) IN GENERAL.— 
(1) DESIGNATING CERTAIN SBIR AND STTR PRO-
GRAMS
AS
ENTREPRENEURIAL
INNOVATION 
PROJECTS.—Chapter 303 of title 10, United States 
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Code, is amended by inserting after section 4067 the 
following new section: 
‘‘§ 4068. Entrepreneurial Innovation Project designa-
tions 
‘‘(a) IN GENERAL.—During the first fiscal year begin-
ning after the date of the enactment of this section, and 
during each subsequent fiscal year, each Secretary con-
cerned, in consultation with the each chief of an armed force 
under the jurisdiction of the Secretary concerned, shall des-
ignate not less than five eligible programs as Entrepre-
neurial Innovation Projects. 
‘‘(b) APPLICATION.—An eligible program seeking des-
ignation as an Entrepreneurial Innovation Project under 
this section shall submit to the Secretary concerned an ap-
plication at such time, in such manner, and containing 
such information as the Secretary concerned determines ap-
propriate. 
‘‘(c) DESIGNATION CRITERIA.—In making designa-
tions under subsection (a), the Secretary concerned shall 
consider— 
‘‘(1) the potential of the eligible program to— 
‘‘(A) advance the national security capabili-
ties of the United States; 
‘‘(B) provide new technologies or processes, 
or new applications of existing technologies, that 
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will enable new alternatives to existing pro-
grams; and 
‘‘(C) provide future cost savings; 
‘‘(2) whether an advisory panel has rec-
ommended the eligible program for designation; and 
‘‘(3) such other criteria that the Secretary con-
cerned determines to be appropriate. 
‘‘(d) DESIGNATION BENEFITS.— 
‘‘(1) FUTURE YEARS DEFENSE PROGRAM INCLU-
SION.—With respect to each designated program, the 
Secretary of Defense shall include in the next future- 
years defense program the estimated expenditures of 
such designated program. In the preceding sentence, 
the term ‘next future-years defense program’ means 
the future-years defense program submitted to Con-
gress under section 221 of this title after the date on 
which such designated program is designated under 
subsection (a). 
‘‘(2) 
PROGRAMMING
PROPOSAL.—Each 
des-
ignated program shall be included by the Secretary 
concerned under a separate heading in any program-
ming proposals submitted to the Secretary of Defense. 
‘‘(3) PPBE COMPONENT.—Each designated pro-
gram shall be considered by the Secretary concerned 
as an integral part of the planning, programming, 
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budgeting, and execution process of the Department of 
Defense. 
‘‘(e) ENTREPRENEURIAL INNOVATION ADVISORY PAN-
ELS.— 
‘‘(1) ESTABLISHMENT.—For each military de-
partment, the Secretary concerned shall establish an 
advisory panel that, starting in the first fiscal year 
beginning after the date of the enactment of this sec-
tion, and in each subsequent fiscal year, shall identify 
and recommend to the Secretary concerned for des-
ignation under subsection (a) eligible programs based 
on the criteria described in subsection (c)(1). 
‘‘(2) MEMBERSHIP.— 
‘‘(A) COMPOSITION.— 
‘‘(i) 
IN
GENERAL.—Each 
advisory 
panel shall be composed of four members 
appointed by the Secretary concerned and 
one member appointed by the chief of the 
relevant armed force under the jurisdiction 
of the Secretary concerned. 
‘‘(ii) 
SECRETARY
CONCERNED
AP-
POINTMENTS.—The 
Secretary 
concerned 
shall appoint members to the advisory panel 
as follows: 
‘‘(I) Three members who— 
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‘‘(aa) have experience with 
private sector entrepreneurial in-
novation, including development 
and implementation of such inno-
vations into well established mar-
kets; and 
‘‘(bb) are not employed by 
the Federal Government. 
‘‘(II) One member who is in the 
Senior Executive Service in the acqui-
sition workforce (as defined in section 
1705 of this title) of the relevant mili-
tary department. 
‘‘(iii) SERVICE CHIEF APPOINTMENT.— 
The chief of an armed force under the juris-
diction of the Secretary concerned shall ap-
point to the advisory panel one member who 
is a member of such armed forces. 
‘‘(B) TERMS.— 
‘‘(i) PRIVATE
SECTOR
MEMBERS.— 
Members 
described 
in 
subparagraph 
(A)(ii)(I) shall serve for a term of three 
years, except that of the members first ap-
pointed— 
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•HR 2670 RH1S 
‘‘(I) one shall serve a term of one 
year; 
‘‘(II) one shall serve a term of two 
years; and 
‘‘(III) one shall serve a term of 
three years. 
‘‘(ii) FEDERAL GOVERNMENT EMPLOY-
EES.—Members described in clause (ii)(II) 
or (iii) of subparagraph (A) shall serve for 
a term of two years, except that the first 
member appointed under subparagraph 
(A)(iii) shall serve for a term of one year. 
‘‘(C) CHAIR.—The chair for each advisory 
panel shall be as follows: 
‘‘(i) For the first year of operation of 
each such advisory panel, and every other 
year thereafter, the member appointed 
under subparagraph (A)(iii). 
‘‘(ii) For the second year of operation 
of each such advisory panel, and every other 
year thereafter, the member appointed 
under subparagraph (A)(ii)(II). 
‘‘(D) VACANCIES.—A vacancy in an advi-
sory panel shall be filled in the same manner as 
the original appointment. 
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‘‘(E) CONFLICT
OF
INTEREST.—Members 
and staff of each advisory panel shall disclose to 
the relevant Secretary concerned, and such Sec-
retary concerned shall mitigate to the extent 
practicable, any professional or organizational 
conflict of interest of such members or staff aris-
ing from service on the advisory panel. 
‘‘(F) COMPENSATION.— 
‘‘(i) PRIVATE
SECTOR
MEMBER
COM-
PENSATION.—Except as provided in clause 
(ii), members of an advisory panel, and the 
support staff of such members, shall be com-
pensated at a rate determined reasonable by 
the Secretary concerned and shall be reim-
bursed in accordance with section 5703 of 
title 5 for reasonable travel costs and ex-
penses incurred in performing duties as 
members of an advisory panel. 
‘‘(ii) PROHIBITION ON COMPENSATION 
OF FEDERAL EMPLOYEES.—Members of an 
advisory panel who are full-time officers or 
employees of the United States or Members 
of Congress may not receive additional pay, 
allowances, or benefits by reason of their 
service on an advisory panel. 
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•HR 2670 RH1S 
‘‘(3) SELECTION PROCESS.— 
‘‘(A) INITIAL
SELECTION.—Each advisory 
panel shall select not less than ten eligible pro-
grams that have submitted an application under 
subsection (b). 
‘‘(B) PROGRAM PLANS.— 
‘‘(i) IN GENERAL.—Each eligible pro-
gram selected under subparagraph (A) may 
submit to the advisory panel that selected 
such eligible program a program plan con-
taining the five-year goals, execution plans, 
schedules, and funding needs of such eligible 
program. 
‘‘(ii) SUPPORT.—Each Secretary con-
cerned shall, to the greatest extent prac-
ticable, provide eligible programs selected 
under subparagraph (A) with access to in-
formation to support the development of the 
program plans described in clause (i). 
‘‘(C) FINAL
SELECTION.—Each advisory 
panel shall recommend to the Secretary con-
cerned for designation under subsection (a) not 
less than five eligible programs that submitted a 
program plan under subparagraph (B) to such 
advisory panel. If there are less than five such el-
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•HR 2670 RH1S 
igible programs, such advisory panel may rec-
ommend to the Secretary concerned for designa-
tion under subsection (a) less than five such eli-
gible programs. 
‘‘(4) ADMINISTRATIVE
AND
TECHNICAL
SUP-
PORT.—The Secretary concerned shall provide the rel-
evant advisory panel with such administrative sup-
port, staff, and technical assistance as the Secretary 
concerned determines necessary for such advisory 
panel to carry out it duties. 
‘‘(5) FUNDING.—The Secretary of Defense may 
use amounts available from the Department of De-
fense Acquisition Workforce Development Account es-
tablished under section 1705 of this title to support 
the activities of advisory panels. 
‘‘(f) REVOCATION OF DESIGNATION.—If the Secretary 
concerned determines that a designated program cannot 
reasonably meet the objectives of such designated program 
in the relevant programming proposal referred to in sub-
section (d)(2) or such objectives are irrelevant, such Sec-
retary concerned may revoke the designation. 
‘‘(g) REPORT TO CONGRESS.—The Secretary of De-
fense shall submit to Congress an annual report describing 
each designated program and the progress each designated 
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•HR 2670 RH1S 
program has made toward achieving the objectives of the 
designated program. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) ADVISORY
PANEL.—The term ‘advisory 
panel’ means an advisory panel established under 
subsection (e)(1). 
‘‘(2) DESIGNATED
PROGRAM.—The term ‘des-
ignated program’ means an eligible program that has 
been designated as an Entrepreneurial Innovation 
Project under this section. 
‘‘(3) ELIGIBLE
PROGRAM.—The term ‘eligible 
program’ means work performed pursuant to a Phase 
III agreement (as such term is defined in section 
9(r)(2) of the Small Business Act (15 U.S.C. 
638(r)(2))).’’. 
(2) TARGET CHAPTER TABLE OF SECTIONS.—The 
table of sections at the beginning of chapter 303 of 
title 10, United States Code, is amended by inserting 
after the item related to section 4067 the following 
new item: 
‘‘4068. Entrepreneurial Innovation Project designations.’’. 
(b) ESTABLISHMENT DEADLINE.—Not later than 120 
days after the date of the enactment of this Act, the Secre-
taries of each military department shall establish the advi-
sory panels described in section 4068(e) of title 10, United 
States Code, as added by subsection (a). 
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•HR 2670 RH1S 
SEC. 882. EXTENSION AND MODIFICATION OF DOMESTIC IN-
VESTMENT PILOT PROGRAM. 
Section 884 of the National Defense Authorization Act 
for Fiscal Year 2020 (Public Law 116-92; 15 U.S.C. 638 
note) is amended— 
(1) in subsection (a), by striking ‘‘Not later than 
1 year after the date of the enactment of this Act’’ 
and inserting ‘‘Not later than October 1, 2023’’; 
(2) in subsection (c)— 
(A) by striking ‘‘Secretary of Defense may 
not use’’ and inserting the following: ‘‘Secretary 
of Defense— 
‘‘(1) may not use’’; 
(B) in paragraph (1), as so designated, by 
striking 
‘‘STTR 
program.’’ 
and 
inserting 
‘‘STTR program; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(2) shall ensure that such program complies 
with the requirements of a due diligence program es-
tablished under subsection (vv) of the Small Business 
Act (15 U.S.C. 638(vv)).’’; and 
(3) in subsection (f), by striking ‘‘September 30, 
2022’’ and inserting ‘‘September 30, 2027’’. 
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SEC. 883. STUDY AND REPORT ON THE EXPANSION OF THE 
STRATEGIC FUNDING INCREASE PROGRAM 
OF THE AIR FORCE. 
(a) FEASIBILITY STUDY.—The Secretary of Defense 
shall direct the heads of the offices responsible for carrying 
out the Small Business Innovation Research Programs of 
the Army, Navy, and Marine Corps to jointly conduct a 
study on the feasibility of implementing a covered program. 
(b) REPORT.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary 
shall submit to the congressional defense committees a 
report containing the results of the study required by 
subsection (a). 
(2) ELEMENTS.—The report required by para-
graph (1) shall include the following: 
(A) Funding levels required to successfully 
execute covered program. 
(B) The effect that a covered program might 
have on the Small Business Innovation Research 
Programs of the Army, Navy, and Marine Corps, 
including effect on the number of Phase I and 
Phase II awards made under Small Business In-
novation Research Program if a covered program 
was carried out. 
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Subtitle G—Other Matters 
SEC. 891. EMPLOYEE-OWNED BUSINESS CONTRACTING IN-
CENTIVE PILOT PROGRAM CLARIFICATION 
AND EXTENSION. 
Section 874 of the National Defense Authorization Act 
for Fiscal Year 2022 (10 U.S.C. 3204 note) is amended— 
(1) in subsection (b)— 
(A) in paragraph (2)— 
(i) by inserting ‘‘or for’’ after ‘‘services 
procured by’’; and 
(ii) by inserting ‘‘or for’’ after ‘‘may be 
procured by’’; and 
(B) in paragraph (3)— 
(i) by striking ‘‘A qualified business’’ 
and inserting ‘‘(A) IN GENERAL.—A quali-
fied business’’; and 
(ii) by adding at the end the following 
new subparagraph: 
‘‘(B) TOTAL AWARD LIMIT.—Not more than 
25 follow-on contracts may be awarded under 
this section.’’; 
(2) in subsection (e), by striking ‘‘five years’’ 
and inserting ‘‘eight years’’; and 
(3) by adding at the end the following new sub-
section: 
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‘‘(g) PAPERWORK REDUCTION ACT EXEMPTION.— 
Chapter 35 of title 44, United States Code, shall not apply 
to any action taken under this section or the pilot program 
established under this section.’’. 
SEC. 892. PILOT PROGRAM ON THE USE OF BUDGET TRANS-
FER AUTHORITY FOR ARMY RESEARCH TO 
AID IN TECHNOLOGY TRANSITION. 
(a) IN GENERAL.—Upon determination by the Assist-
ant Secretary of the Army for Acquisition, Logistics, and 
Technology that such action is necessary in the national 
interest, the Secretary of Defense may transfer amounts of 
authorizations made available in Research and Develop-
ment, Army, line 090A, between any covered authorization 
or combination of covered authorizations for the purposes 
of procuring or otherwise rapidly transitioning new tech-
nologies at the direction of the Assistant Secretary. 
Amounts of authorizations so transferred shall be merged 
with and be available for the same purposes as the author-
ization to which transferred. 
(b) LIMITS.— 
(1) IN GENERAL.—The total amount of author-
izations that the Secretary of Defense may transfer 
under the authority of subsection (a) for each procure-
ment or other transition activity may not exceed 
$10,000,000. 
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•HR 2670 RH1S 
(2) OTHER LIMITS.—Amounts transferred pursu-
ant to the authority under subsection (a) shall not be 
subject to and shall not count towards the limitation 
under subsection (a)(2) of such section 1001. 
(c) EFFECT ON AUTHORIZATION AMOUNTS.—A trans-
fer made from one account to another under the authority 
of subsection (a) shall be deemed to increase the amount 
authorized for the account to which the amount is trans-
ferred by an amount equal to the amount transferred. 
(d) COVERED AUTHORIZATION DEFINED.—In this sec-
tion, the term ‘‘covered authorization’’ means an authoriza-
tion made available for fiscal year 2024 for— 
(1) Aircraft Procurement, Army; 
(2) Missile Procurement, Army; 
(3) Weapons and Tracked Combat Vehicles, 
Army; 
(4) Procurement of Ammunition, Army; 
(5) Other Procurement, Army; and 
(6) Operation and Maintenance, Army. 
SEC. 893. SEAPLANE PROCUREMENT AND EMPLOYMENT. 
(a) IN GENERAL.—Not later than 270 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees an 
analysis of the utility of, employment opportunities with 
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•HR 2670 RH1S 
respect to, and the feasibility of the Department of Defense 
procuring seaplanes and amphibious aircraft. 
(b) CONTENTS.—The analysis required under sub-
section (a) shall include an assessments of— 
(1) the role and effects that the use of seaplanes 
and amphibious aircraft would have on the ability of 
the Armed Forces to conduct contested logistics oper-
ations across a theater of combat operations, includ-
ing resupply and air-to-air refueling; 
(2) the utility of seaplanes and amphibious air-
craft in scenarios where access to airfields required 
for the operation of existing fixed-wing, tiltrotor, and 
rotor-wing assets is limited or such airfields are un-
available; 
(3) the effects that the use of seaplanes and am-
phibious aircraft would have on the ability of the 
Armed Forces to conduct search and rescue oper-
ations; 
(4) the value and cost savings per flight hour of 
using seaplanes and amphibious aircraft for search 
and rescue operations as compared with the type, 
model, and series of aircraft currently used by the 
Armed Forces for such activities; 
(5) the role of seaplanes and amphibious aircraft 
in enhancing the mobility of personnel in theaters of 
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•HR 2670 RH1S 
combat operations and providing support within the 
expeditionary advanced basing operation construct; 
(6) the utility of using seaplanes and amphib-
ious aircraft to enhance long-range reconnaissance 
operations of the Armed Forces; and 
(7) options for acquiring seaplanes and amphib-
ious aircraft from allies currently fielding such plat-
forms, including alternative approaches, acquisition 
timelines, and timelines for fielding such seaplanes 
and amphibious aircraft or domestically-produced al-
ternatives. 
(c) ARMED FORCES DEFINED.—In this section, the 
term ‘‘Armed Forces’’ has the meaning give such term in 
section 101(a) of title 10, United States Code. 
SEC. 894. LIMITATION ON AVAILABILITY OF FUNDS RELAT-
ING TO CONTRACTS WITH CONTRACT MAN-
AGERS AND AUDITORS. 
(a) REVIEW.—The Secretary of Defense shall annually 
review the value of contracts entered into with contract 
managers and auditors for the purpose of managing con-
tracts of the Department of Defense for a specified fiscal 
year. 
(b) CERTIFICATION.—If the Secretary spent an 
amount greater than or equal to 1 percent of the total value 
of contracts awarded during such fiscal year on such con-
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tracts with contract managers and auditors, the Secretary 
shall submit a certification to the congressional defense 
committees. 
(c) LIMITATION ON AVAILABILITY OF FUNDS.—For 
each 0.1 percent of funds expended during fiscal year 2024 
that is greater than 1 percent of total value of contracts 
awarded during such fiscal year on such contracts with con-
tract managers and auditors, of the funds authorized to be 
appropriated by this Act or otherwise made available for 
fiscal year 2024 for the Deputy Secretary of Defense for 
the nonemergency travel, such amount shall be reduced by 
1 percent. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘contract managers and auditors’’ 
means employees of the Department of Defense, in-
cluding members of a covered Armed Force, and does 
not include contractors of the Department. 
(2) The term ‘‘covered Armed Force’’ means the 
Army, Navy, Marine Corps, Air Force, or Space 
Force. 
SEC. 895. INSPECTOR GENERAL REPORT ON DEPARTMENT 
OF DEFENSE ACQUISITION AND CONTRACT 
ADMINISTRATION. 
Not later than March 31, 2024, the Inspector General 
of the Department of Defense shall submit to the Committee 
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on Armed Services of the House of Representatives a report 
on the status and findings of the oversight, reviews, audits, 
and inspections of the Inspector General regarding Depart-
ment-wide acquisitions and contract management, includ-
ing— 
(1) findings regarding the effectiveness of audits 
and financial advisory on ensuring that the Depart-
ment obtains the greatest value for the lowest reason-
able costs under when acquiring goods and services, 
including by reducing contract costs and ensuring 
that the profit of contractors for the provision of such 
goods and services is reasonable; 
(2) an assessment of allowable, allocable, and 
reasonable costs and pricing for contracts; 
(3) the authorities and resources for contracting 
officers of the Department to obtain certified cost and 
pricing data from contractors of the Department; 
(4) the authorities and resources of the Chief Fi-
nancial Officer of the Department, the Defense Con-
tract Audit Agency, and the Defense Contract Man-
agement Agency to determine allowable, allocable, and 
reasonable costs and pricing for contracts. 
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TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND 
MANAGEMENT 
Subtitle A—Office of the Secretary 
of Defense and Related Matters 
SEC. 901. UNDER SECRETARY OF DEFENSE FOR SCIENCE 
AND INNOVATION INTEGRATION. 
(a) IN GENERAL.—Section 133a of title 10, United 
States Code, is amended to read as follows: 
‘‘§ 133a. Under Secretary of Defense for Science and 
Innovation Integration 
‘‘(a) UNDER SECRETARY OF DEFENSE.—There is an 
Under Secretary of Defense for Science and Innovation In-
tegration, appointed from civilian life by the President, by 
and with the advice and consent of the Senate. A person 
may not be appointed as Under Secretary within seven 
years after relief from active duty as a commissioned officer 
of a regular component of an armed force. 
‘‘(b) QUALIFICATIONS.—The Under Secretary shall be 
appointed from among persons who have an extensive tech-
nology or science background and experience in— 
‘‘(1) private or venture capital, commercial in-
novation, or prototype-to-production transition; and 
‘‘(2) managing complex programs and leveraging 
public-private capital partnerships. 
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‘‘(c) DUTIES AND POWERS.—Subject to the authority, 
direction, and control of the Secretary of Defense, the Under 
Secretary shall perform such duties and exercise such pow-
ers as the Secretary may prescribe, including— 
‘‘(1) serving as the chief technology officer of the 
Department of Defense with the mission of advancing 
technology, innovation, and the integration of com-
mercial technology for the armed forces (and the De-
partment); 
‘‘(2) establishing policies on, and supervising, all 
elements of the Department relating to the identifica-
tion of commercial technology for potential use by the 
Department and integration of such technology into 
the armed forces (and the Department), including— 
‘‘(A) implementing the preference under sec-
tion 3453 of this title for the use of commercial 
technology when suitable to meet the needs of De-
partment; and 
‘‘(B) ensuring implementation of a modular 
open system approach (as defined in section 
4401(b) of title 10, United States Code) to en-
courage increased competition and the more fre-
quent use of commercial technology within the 
Department; 
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‘‘(3) establishing policies on, and supervising, all 
defense research and engineering, technology develop-
ment, technology transition, appropriate prototyping 
activities, experimentation, and developmental testing 
activities and programs and unifying defense research 
and engineering efforts across the Department; 
‘‘(4) serving as the principal advisor to the Sec-
retary on all commercial innovation and integration, 
research, engineering, and technology development ac-
tivities and programs in the Department; and 
‘‘(5) along with the Vice Chairman of the Joint 
Chiefs of Staff, providing for an alternate path to in-
tegrate commercial technology into the Department 
that does not include applying the Joint Capabilities 
Integration and Development System process to the 
acquisition of technology that readily exists in the 
commercial sector. 
‘‘(d) PRECEDENCE IN DEPARTMENT OF DEFENSE.— 
‘‘(1) PRECEDENCE IN MATTERS OF RESPONSI-
BILITY.—With regard to all matters for which the 
Under Secretary has responsibility by the direction of 
the Secretary of Defense or by law, the Under Sec-
retary takes precedence in the Department of Defense 
after the Secretary and the Deputy Secretary of De-
fense. 
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‘‘(2) PRECEDENCE IN OTHER MATTERS.—With 
regard to all matters other than the matters for which 
the Under Secretary has responsibility by the direc-
tion of the Secretary or by law, the Under Secretary 
takes precedence in the Department of Defense after 
the Secretary and the Deputy Secretary of Defense.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) TITLE 10.—Title 10, United States Code, as 
amended by subsection (a), is further amended by 
striking ‘‘Under Secretary of Defense for Research 
and Engineering’’ each place it appears and inserting 
‘‘Under Secretary of Defense for Science and Innova-
tion Integration’’. 
(2) TITLE 5.—Title 5, United States Code, is 
amended by striking ‘‘Under Secretary of Defense for 
Research and Engineering’’ each place it appears and 
inserting ‘‘Under Secretary of Defense for Science and 
Innovation Integration’’. 
(3) NATIONAL DEFENSE AUTHORIZATION ACTS.— 
Each of the following Acts is amended by striking 
‘‘Under Secretary of Defense for Research and Engi-
neering’’ each place it appears and inserting ‘‘Under 
Secretary of Defense for Science and Innovation Inte-
gration’’: 
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tor of Cost Assessment and Program Evaluation 
and’’. 
(BB) Section 836(a)(2) of the National De-
fense Authorization Act for Fiscal Year 2012 
(Public Law 112–81; 22 U.S.C. 2767 note) is 
amended by striking ‘‘, the Assistant Secretary of 
Defense for Research and Engineering, and the 
Director of Cost Assessment and Program Eval-
uation of the Department of Defense’’ and insert-
ing ‘‘and the Under Secretary of Defense for Re-
search and Engineering’’. 
(CC) Section 201(d) of the Weapon Systems 
Acquisition Reform Act of 2009 (Public Law 
111–23; 10 U.S.C. 181 note) is amended by 
striking ‘‘Director of Cost Assessment and Pro-
gram Evaluation’’ and inserting ‘‘official des-
ignated under section 902(b) of the National De-
fense Authorization Act for Fiscal Year 2024’’. 
(DD) Section 3221 of the National Nuclear 
Security Administration Act (50 U.S.C. 2411(e)) 
is amended— 
(i) by striking subsection (e); and 
(ii) by redesignating subsections (f) 
through (i) as subsections (e) through (h), 
respectively. 
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(EE) Section 4217(c) of the Atomic Energy 
Defense Act (50 U.S.C. 2537(c)) is amended by 
striking ‘‘acting through the Director of Cost As-
sessment and Program Evaluation and’’. 
(4) EFFECTIVE DATE.—The repeals and amend-
ments made by this subsection shall take effect on the 
date of the enactment of this Act. 
(b) IMPLEMENTATION.—Not later than one year after 
the date of the enactment of this Act— 
(1) each duty or responsibility that remains as-
signed to the Director of Cost Assessment and Pro-
gram Evaluation of the Department of Defense shall 
be transferred to an officer or employee of the Depart-
ment of Defense designated by the Secretary of De-
fense, except that any officer or employee so des-
ignated may not be an individual who served as the 
Director of Cost Assessment and Program Evaluation 
before the date of the enactment of this Act; and 
(2) the personnel, functions, and assets of the Of-
fice of Cost Assessment and Program Evaluation shall 
be transferred to such other organizations and ele-
ments of the Department as the Secretary considers 
appropriate. 
(c) REFERENCES.—Any reference in any law, regula-
tion, guidance, instruction, or other document of the Fed-
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