381 
‘‘(4) The term ‘Milestone B approval’ has the 
meaning provided in section 2366(e)(7) of this title. 
‘‘(5) The term ‘Milestone Decision Authority’, 
with respect to a major defense acquisition program 
or major system, means the official within the De-
partment of Defense designated with the overall re-
sponsibility and authority for acquisition decisions 
for the program or system, including authority to 
approve entry of the program or system into the 
next phase of the acquisition process. 
‘‘(6) The term ‘management capacity’, with re-
spect to a major defense acquisition program or 
major system, means the capacity to manage the 
program or system through the use of highly quali-
fied organizations and personnel with appropriate 
experience, knowledge, and skills. 
‘‘(7) The term ‘significant change to the cost’, 
with respect to a major defense acquisition program 
or major system, means a significant cost growth 
threshold, as that term is defined in section 
2433(a)(4) of this title. 
‘‘(8) The term ‘critical change to the cost’, with 
respect to a major defense acquisition program or 
major system, means a critical cost growth thresh-
382 
old, as that term is defined in section 2433(a)(5) of 
this title. 
‘‘(9) The term ‘significant change to the sched-
ule’, with respect to a major defense acquisition pro-
gram or major system, means any schedule delay 
greater than six months in a reported event. 
‘‘(f) SUBMISSION
TO
CONGRESSIONAL
COMMIT-
TEES.—Upon request by the chairman or ranking member 
of the Committee on Armed Services of the Senate or the 
House of Representatives, the Secretary of Defense shall 
submit to the committee the most recently approved acqui-
sition strategy for a major defense acquisition program or 
major system. The strategy shall be submitted in unclassi-
fied form but may include a classified annex.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 2431 
the following new item: 
‘‘2431a. Acquisition strategy.’’. 
(b) ADDITIONAL AMENDMENTS.— 
(1) Section 2350a(e) of such title is amended— 
(A) in the subsection heading, by striking 
‘‘DOCUMENT’’; 
(B) in paragraph (1), by striking ‘‘the 
Under Secretary of Defense for’’ and all that 
follows through ‘‘of the Board’’ and inserting
383 
‘‘opportunities for such cooperative research 
and development shall be addressed in the ac-
quisition strategy for the project’’; and 
(C) in paragraph (2)— 
(i) in the matter preceding subpara-
graph (A)— 
(I) by striking ‘‘document’’ and 
inserting ‘‘discussion’’; and 
(II) by striking ‘‘include’’ and in-
serting ‘‘consider’’; 
(ii) in subparagraph (A), by striking 
‘‘A statement indicating whether’’ and in-
serting ‘‘Whether’’; 
(iii) in subparagraph (B)— 
(I) by striking ‘‘by the Under 
Secretary of Defense for Acquisition, 
Technology, and Logistics’’; and 
(II) by striking ‘‘of the United 
States under consideration by the De-
partment of Defense’’; and 
(iv) in subparagraph (D), by striking 
‘‘The recommendation of the Under Sec-
retary’’ and inserting ‘‘A recommendation 
to the Milestone Decision Authority’’.
384 
(2) Section 803 of the Bob Stump National De-
fense Authorization Act for Fiscal Year 2003 (Pub-
lic Law 107–314; 10 U.S.C. 2430 note) is repealed. 
SEC. 823. REVISION TO REQUIREMENTS RELATING TO RISK 
MANAGEMENT IN DEVELOPMENT OF MAJOR 
DEFENSE 
ACQUISITION 
PROGRAMS 
AND 
MAJOR SYSTEMS. 
(a) RISK MANAGEMENT AND MITIGATION REQUIRE-
MENTS.— 
(1) IN
GENERAL.—Chapter 144 of title 10, 
United States Code, is amended by inserting after 
section 2431a (as added by section 813) the fol-
lowing new section: 
‘‘§ 2431b. Risk management and mitigation in major 
defense acquisition programs and major 
systems 
‘‘(a) REQUIREMENT.—(1) There shall be a risk man-
agement and mitigation strategy for each major defense 
acquisition program or major system. 
‘‘(2) The Secretary of Defense shall ensure that the 
initial acquisition strategy (required under section 2431a 
of this title) approved by the Milestone Decision Authority 
and any subsequent revisions include the following:
385 
‘‘(A) A comprehensive strategy for managing 
and mitigating risk (including technical, cost, and 
schedule risk) during each of the following periods: 
‘‘(i) The period preceding engineering 
manufacturing development, or its equivalent. 
‘‘(ii) The period preceding initial produc-
tion. 
‘‘(iii) The period preceding full-rate pro-
duction. 
‘‘(B) An identification of the major sources of 
risk in each of the periods listed in subparagraph 
(A). 
‘‘(3) In the case of a program or system with separate 
increments of capabilities that require Milestone Decision 
Authority approval to begin or proceed, paragraphs (1) 
and (2) shall apply to each increment. 
‘‘(b) 
STRATEGY
TO
MANAGE
AND
MITIGATE 
RISKS.—(1) The comprehensive strategy to manage and 
mitigate risk included in the acquisition strategy for pur-
poses of subsection (a)(2)(A) shall identify each individual 
risk and the risk management and mitigation activities to 
address each risk. For the mitigation activities identified, 
the strategy shall note whether they require cost and 
schedule margins and need to be included in funding re-
quests.
387 
‘‘(c) DEFINITIONS.—In this section, the terms ‘major 
defense acquisition program’ and ‘major system’ have the 
meanings provided in section 2431a of this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 2431a, 
as so added, the following new item: 
‘‘2431b. Risk reduction in major defense acquisition programs and major sys-
tems.’’. 
(b) REPEAL OF SUPERSEDED PROVISION.—Section 
203 of the Weapon Systems Acquisition Reform Act of 
2009 (10 U.S.C. 2430 note) is repealed. 
SEC. 824. MODIFICATION TO REQUIREMENTS RELATING TO 
DETERMINATION OF CONTRACT TYPE FOR 
MAJOR DEFENSE ACQUISITION PROGRAMS 
AND MAJOR SYSTEMS. 
(a) DETERMINATION OF CONTRACT TYPE.—Section 
2306 of title 10, United States Code, is amended by add-
ing at the end the following new subsection: 
‘‘(i) REQUIRED ELEMENTS OF GUIDANCE RELATING 
TO CONTRACT TYPE.—(1) The Secretary of Defense shall 
ensure that the guidance of the Department of Defense 
relating to major defense acquisition programs, major sys-
tems, and major automated information systems includes 
a requirement that the acquisition strategy required under
388 
section 2431a of this title for such a program or system 
includes— 
‘‘(A) a separate identification of the contract 
type for each acquisition phase of the program or 
system; and 
‘‘(B) a justification of the contract type identi-
fied. 
‘‘(2) The contract type identified in accordance with 
paragraph (1)(A) may be— 
‘‘(A) a fixed-price type contract (including a 
fixed-price incentive contract); or 
‘‘(B) a cost-type contract (including a cost-plus- 
incentive-fee contract). 
‘‘(3) The guidance referred to in paragraph (1) shall 
require that the justification for the contract type selected 
explain— 
‘‘(A) how the level of program risk in each ac-
quisition phase relates to the contract type selected; 
‘‘(B) how the use of incentives (especially cost 
incentives) in the contract, if any, supports the pro-
gram or system objectives during each acquisition 
phase; and 
‘‘(C) how the plans for the program or system 
to reduce risk enable the use of fixed-price elements 
in subsequent contracts.
389 
‘‘(4) The guidance shall also specify that the use of 
contracts with target costs, target profits or fees, and 
profit or fee adjustment formulas can be an appropriate 
contract type.’’. 
(b) REPEAL.—Section 818 of the John Warner Na-
tional Defense Authorization Act for Fiscal Year 2007 
(Public Law 109–364; 10 U.S.C. 2306 note) is amended 
by striking subsections (b), (c), (d), and (e). 
SEC. 825. REQUIRED DETERMINATION BEFORE MILESTONE 
A APPROVAL OR INITIATION OF MAJOR DE-
FENSE ACQUISITION PROGRAMS. 
(a) DETERMINATION RATHER THAN CERTIFICATION 
REQUIRED.—Subsection (a) of section 2366a of title 10, 
United States Code, is amended— 
(1) in the subsection heading, by striking ‘‘CER-
TIFICATION’’ and inserting ‘‘WRITTEN DETERMINA-
TION REQUIRED’’; and 
(2) in the matter preceding paragraph (1), by 
striking ‘‘certifies’’ and inserting ‘‘determines, in 
writing,’’. 
(b) SUBMISSION OF WRITTEN DETERMINATION TO 
CONGRESS.—Subsection (b) of such section is amended to 
read as follows: 
‘‘(b) SUBMISSION TO CONGRESS.—At the request of 
any of the congressional defense committees, the Secretary
390 
of Defense shall submit to the committee an explanation 
of the basis for a determination made under subsection 
(a) with respect to a major defense acquisition program, 
together with a copy of the written determination. The ex-
planation shall be submitted in unclassified form, but may 
include a classified annex.’’. 
(c) REPEAL OF UNUSED DEFINITIONS.—Subsection 
(c) of such section is amended— 
(1) by striking paragraphs (2) and (4); and 
(2) by redesignating paragraphs (3), (5), (6), 
and (7) as paragraphs (2), (3), (4), and (5), respec-
tively. 
(d) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of section 
2366a of title 10, United States Code, is amended 
to read as follows: 
‘‘§ 2366a. Major defense acquisition programs: deter-
mination required before Milestone A ap-
proval’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 139 of such title is 
amended by striking the item relating to section 
2366a and inserting the following new item: 
‘‘2366a. Major defense acquisition programs: determination required before 
Milestone A approval.’’.
391 
SEC. 826. REQUIRED CERTIFICATION AND DETERMINATION 
BEFORE MILESTONE B APPROVAL OF MAJOR 
DEFENSE ACQUISITION PROGRAMS. 
(a) DETERMINATION REQUIRED
IN ADDITION
TO 
CERTIFICATION.—Subsection (a) of section 2366b of title 
10, United States Code, is amended— 
(1) in the subsection heading, by striking ‘‘CER-
TIFICATION’’ and inserting ‘‘CERTIFICATION
AND 
DETERMINATION REQUIRED’’; 
(2) by redesignating paragraph (4) as para-
graph (5); and 
(3) by striking ‘‘(3) further certifies that—’’ 
and inserting the following: 
‘‘(3) further certifies that the technology in the 
program has been demonstrated in a relevant envi-
ronment, as determined by the Milestone Decision 
Authority on the basis of an independent review and 
assessment by the Assistant Secretary of Defense 
for Research and Engineering, in consultation with 
the Deputy Assistant Secretary of Defense for De-
velopmental Test and Evaluation; 
‘‘(4) determines, in writing, that—’’. 
(b) SUBMISSION OF WRITTEN DETERMINATION TO 
CONGRESS.—Subsection (c) of such section is amended by 
adding at the end the following new paragraph:
392 
‘‘(3) At the request of any of the congressional de-
fense committees, the Secretary of Defense shall submit 
to the committee an explanation of the basis for a deter-
mination made under subsection (a)(4) with respect to a 
major defense acquisition program, together with a copy 
of the written determination. The explanation shall be sub-
mitted in unclassified form, but may include a classified 
annex.’’. 
(c) NATIONAL SECURITY WAIVER.—Subsection (d) of 
such section is amended— 
(1) in paragraph (1), by striking ‘‘certification 
requirement’’ and inserting ‘‘certification and deter-
mination requirements’’; and 
(2) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A) and in subparagraph (A), by inserting 
‘‘waiver’’ before ‘‘determination’’ each place it 
appears; and 
(B) in subparagraph (B), by striking ‘‘cer-
tification components’’ both places it appears 
and inserting ‘‘certification and determination 
components’’. 
(d) CONFORMING AMENDMENTS.—Section 2366b of 
title 10, United States Code, is further amended—
393 
(1) in subsection (b)(1), by striking ‘‘paragraph 
(1) or (2) of subsection (a)’’ and inserting ‘‘para-
graph (1), (2), or (3) of subsection (a)’’; 
(2) in subsection (d)(1), by striking ‘‘paragraph 
(1), (2), or (3) of subsection (a)’’ and inserting 
‘‘paragraph (1), (2), (3), or (4) of subsection (a)’’; 
and 
(3) in subsection (d)(2)(B), by striking ‘‘para-
graphs (1), (2), and (3) of subsection (a)’’ and in-
serting ‘‘paragraphs (1), (2), (3) and (4) of sub-
section (a)’’. 
(e) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of section 
2366b of title 10, United States Code, is amended 
to read as follows: 
‘‘§ 2366b. Major defense acquisition programs: certifi-
cation and determination required before 
Milestone B approval’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 139 of such title is 
amended by striking the item relating to section 
2366b and inserting the following new item: 
‘‘2366b. Major defense acquisition programs: certification and determination re-
quired before Milestone B approval.’’.
394 
Subtitle D—Industrial Base 
Matters 
SEC. 831. CODIFICATION AND AMENDMENT OF MENTOR- 
PROTEGE PROGRAM. 
(a) IN GENERAL.—Section 831 of the National De-
fense Authorization Act for Fiscal Year 1991 (Public Law 
101–510; 104 Stat. 1607; 10 U.S.C. 2302 note) is trans-
ferred to chapter 137 of title 10, United States Code, in-
serted so as to appear after section 2323a, redesignated 
as section 2323b, and amended— 
(1) by amending the section heading to read as 
follows: 
‘‘§ 2323b. Mentor-Protege Program’’; 
(2) by striking ‘‘pilot’’ each place such term ap-
pears; 
(3) by amending subsection (e)(1) to read as 
follows: 
‘‘(1) A developmental program for the protege 
firm, in such detail as may be reasonable, includ-
ing— 
‘‘(A) factors to assess the protege firm’s 
developmental progress under the program; and 
‘‘(B) the anticipated number and type of 
subcontracts to be awarded to the protege 
firm.’’;
395 
(4) in subsection (g)(2)(B), by striking ‘‘under 
subsection (l)(2)’’; 
(5) in subsection (h)(1), by inserting ‘‘(15 
U.S.C. 631 et seq.)’’ after ‘‘Small Business Act’’; 
(6) by striking subsection (j) and redesignating 
subsections (k) and (l) as subsections (j) and (k), re-
spectively; 
(7) by amending subsection (j) (as so redesig-
nated) to read as follows: 
‘‘(j) REGULATIONS.—The regulations implementing 
the Mentor-Protege Pilot Program established under sec-
tion 831 of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101–510; 104 Stat. 1607; 
10 U.S.C. 2302 note) as in effect on the date of enactment 
of the National Defense Authorization Act for Fiscal Year 
2016 shall apply to this section. The Secretary of Defense 
may revise such regulations or prescribe additional regula-
tions necessary to carry out this section. The Department 
of Defense policy regarding the Mentor-Protege Program 
shall be published and maintained as an appendix to the 
Department of Defense Supplement to the Federal Acqui-
sition Regulation.’’; 
(8) by striking ‘‘prescribed pursuant to sub-
section (k)’’ each place such term appears and in-
serting ‘‘described in subsection (j)’’; and
396 
(9) in subsection (k) (as so redesignated)— 
(A) in paragraph (1), by striking ‘‘means 
a business concern that meets the requirements 
of section 3(a) of the Small Business Act (15 
U.S.C. 632(a)) and the regulations promulgated 
pursuant thereto’’ and inserting ‘‘has the mean-
ing given such term under section 3 of the 
Small Business Act (15 U.S.C. 632)’’; 
(B) in paragraph (2)— 
(i) in subparagraph (D), by striking 
‘‘the severely disabled’’ and inserting ‘‘se-
verely disabled individuals’’; and 
(ii) in subparagraph (G), by inserting 
‘‘(15 U.S.C. 632(p))’’ after ‘‘Small Busi-
ness Act’’; and 
(C) by amending paragraph (8) to read as 
follows: 
‘‘(8) The term ‘severely disabled individual’ 
means an individual who is blind (as defined in sec-
tion 8501 of title 41) or a severely disabled indi-
vidual (as defined in such section).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 2323a the following new 
item: 
‘‘2323b. Mentor-Protege Program.’’.
397 
SEC. 832. AMENDMENTS TO DATA QUALITY IMPROVEMENT 
PLAN. 
(a) IN GENERAL.—Section 15(s) of the Small Busi-
ness Act (15 U.S.C. 644(s)) is amended— 
(1) by redesignating paragraph (4) as para-
graph (6); and 
(2) by inserting after paragraph (3) the fol-
lowing new paragraphs: 
‘‘(4) IMPLEMENTATION.—Not later than the 
first day of fiscal year 2017, the Administrator of 
the Small Business Administration shall implement 
the plan described in this subsection. 
‘‘(5) CERTIFICATION.—The Administrator shall 
annually provide to the Committee on Small Busi-
ness of the House of Representatives and the Com-
mittee on Small Business and Entrepreneurship of 
the Senate a certification of the accuracy and com-
pleteness of data reported on bundled and consoli-
dated contracts.’’. 
(b) GAO STUDY.— 
(1) STUDY.—Not later than the first day of fis-
cal year 2018, the Comptroller General of the 
United States shall initiate a study on the effective-
ness of the plan described in section 15(s) of the 
Small Business Act (15 U.S.C. 644(s)) that shall as-
398 
sess whether contracts were accurately labeled as 
bundled or consolidated. 
(2) CONTRACTS
EVALUATED.—For the pur-
poses of conducting the study described in para-
graph (1), the Comptroller General of the United 
States— 
(A) shall evaluate, for work in each of sec-
tors 23, 33, 54, and 56 (as defined by the 
North American Industry Classification Sys-
tem), not fewer than 100 contracts in each sec-
tor; 
(B) shall evaluate only those contracts— 
(i) awarded by an agency listed in sec-
tion 901(b) of title 31, United States 
Code; and 
(ii) that have a Base and Exercised 
Options Value, an Action Obligation, or a 
Base and All Options Value (as such terms 
are defined in the Federal procurement 
data 
system 
described 
in 
section 
1122(a)(4)(A) of title 41, United States 
Code, or any successor system); and 
(C) shall not evaluate contracts that have 
used any set aside authority.
399 
(3) REPORT.—Not later than 12 months after 
initiating the study required by paragraph (1), the 
Comptroller General of the United States shall re-
port to the Committee on Small Business of the 
House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate 
on the results from such study and, if warranted, 
any recommendations on how to improve the quality 
of data reported on bundled and consolidated con-
tracts. 
SEC. 833. NOTICE OF CONTRACT CONSOLIDATION FOR AC-
QUISITION STRATEGIES. 
(a) NOTICE REQUIREMENT FOR THE SENIOR PRO-
CUREMENT EXECUTIVE OR CHIEF ACQUISITION OFFI-
CER.—Section 44(c)(2) of the Small Business Act (15 
U.S.C. 657q(c)(2)) is amended by adding at the end the 
following: 
‘‘(C) NOTICE.—Not later than 7 days after 
making a determination that an acquisition 
strategy involving a consolidation of contract 
requirements is necessary and justified under 
subparagraph (A), the senior procurement exec-
utive or Chief Acquisition Officer shall publish 
a notice on a public website that such deter-
mination has been made. Any solicitation for a
400 
procurement related to the acquisition strategy 
may not be published earlier than 7 days after 
such notice is published. Along with the publi-
cation of the solicitation, the senior procure-
ment executive or Chief Acquisition Officer 
shall publish a justification for the determina-
tion, which shall include the information in sub-
paragraphs (A) through (E) of paragraph (1).’’. 
(b) NOTICE REQUIREMENT FOR THE HEAD OF A 
CONTRACTING AGENCY.—Section 15(e)(3) of the Small 
Business Act (15 U.S.C. 644(e)(3)) is amended to read 
as follows: 
‘‘(3) STRATEGY SPECIFICATIONS.—If the head 
of a contracting agency determines that an acquisi-
tion plan for a procurement involves a substantial 
bundling of contract requirements, the head of a 
contracting agency shall publish a notice on a public 
website that such determination has been made not 
later than 7 days after making such determination. 
Any solicitation for a procurement related to the ac-
quisition plan may not be published earlier than 7 
days after such notice is published. Along with the 
publication of the solicitation, the head of a con-
tracting agency shall publish a justification for the
401 
determination, which shall include following informa-
tion: 
‘‘(A) The specific benefits anticipated to be 
derived from the bundling of contract require-
ments and a determination that such benefits 
justify the bundling. 
‘‘(B) An identification of any alternative 
contracting approaches that would involve a 
lesser degree of bundling of contract require-
ments. 
‘‘(C) An assessment of— 
‘‘(i) the specific impediments to par-
ticipation by small business concerns as 
prime contractors that result from the 
bundling of contract requirements; and 
‘‘(ii) the specific actions designed to 
maximize participation of small business 
concerns as subcontractors (including sup-
pliers) at various tiers under the contract 
or contracts that are awarded to meet the 
requirements.’’. 
(c) TECHNICAL AMENDMENT.—Section 44(c)(1) of 
the Small Business Act (15 U.S.C. 657q(c)(1)) is amend-
ed by striking ‘‘Subject to paragraph (4), the head’’ and 
inserting ‘‘The head’’.
402 
SEC. 834. CLARIFICATION OF REQUIREMENTS RELATED TO 
SMALL BUSINESS CONTRACTS FOR SERV-
ICES. 
(a) PROCUREMENT CONTRACTS.—Section 8(a)(17) 
of the Small Business Act (15 U.S.C. 637(a)(17)) is 
amended— 
(1) in subparagraph (A), by striking ‘‘any pro-
curement contract’’ and all that follows through 
‘‘section 15’’ and inserting ‘‘any procurement con-
tract, which contract has as its principal purpose the 
supply of a product to be let pursuant to this sub-
section or subsection (m), or section 15(a), 31, or 
36,’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(C) LIMITATION.—This paragraph shall not 
apply to a contract that has as its principal purpose 
the acquisition of services or construction.’’. 
(b) SUBCONTRACTOR CONTRACTS.—Section 46(a)(4) 
of the Small Business Act (15 U.S.C. 657s(a)(4)) is 
amended by striking ‘‘for supplies from a regular dealer 
in such supplies’’ and inserting ‘‘which is principally for 
supplies from a regular dealer in such supplies, and which 
is not a contract principally for services or construction,’’.
403 
SEC. 835. REVIEW OF GOVERNMENT ACCESS TO INTELLEC-
TUAL PROPERTY RIGHTS OF PRIVATE SEC-
TOR FIRMS. 
(a) REVIEW REQUIRED.—Not later than 30 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall enter into a contract with an independent 
entity with appropriate expertise to conduct a review of 
(1) Department of Defense regulations, practices, and 
sustainment requirements related to Government access to 
and use of intellectual property rights of private sector 
firms; and (2) Department of Defense practices related 
to the procurement, management, and use of intellectual 
property rights to facilitate competition in sustainment of 
weapon systems throughout their life-cycle. The contract 
shall require that in conducting the review, the inde-
pendent entity shall consult with the National Defense 
Technology and Industrial Base Council (described in sec-
tion 2502 of title 10, United States Code) and each Center 
of Industrial and Technical Excellence (described in sec-
tion 2474 of title 10, United States Code). 
(b) REPORT.—Not later than March 1, 2016, the 
Secretary shall submit to the congressional defense com-
mittees a report on the findings of the independent entity, 
along with a description of any actions that the Secretary 
proposes to revise and clarify laws or that the Secretary
404 
may take to revise or clarify regulations related to intellec-
tual property rights. 
SEC. 836. REQUIREMENT THAT CERTAIN SHIP COMPO-
NENTS 
BE 
MANUFACTURED 
IN 
THE 
NA-
TIONAL 
TECHNOLOGY 
AND 
INDUSTRIAL 
BASE. 
(a) ADDITIONAL PROCUREMENT LIMITATION.—Sec-
tion 2534(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
‘‘(6) COMPONENTS
FOR
AUXILIARY
SHIPS.— 
Subject to subsection (k), the following components: 
‘‘(A) 
Auxiliary 
equipment, 
including 
pumps, for all shipboard services. 
‘‘(B) Propulsion system components, in-
cluding engines, reduction gears, and propellers. 
‘‘(C) Shipboard cranes. 
‘‘(D) Spreaders for shipboard cranes.’’. 
(b) IMPLEMENTATION.—Such section is further 
amended by adding at the end the following new sub-
section: 
‘‘(k) IMPLEMENTATION OF AUXILIARY SHIP COMPO-
NENT LIMITATION.—Subsection (a)(6) applies only with 
respect to contracts awarded by the Secretary of a military 
department for new construction of an auxiliary ship after 
the date of the enactment of the National Defense Author-
405 
ization Act for Fiscal Year 2016 using funds available for 
National Defense Sealift Fund programs or Shipbuilding 
and Conversion, Navy.’’. 
SEC. 837. POLICY REGARDING SOLID ROCKET MOTORS 
USED IN TACTICAL MISSILES. 
(a) POLICY.—The Secretary of Defense shall ensure 
that every tactical missile program of the Department of 
Defense that uses solid propellant as the primary propul-
sion system shall have at least one rocket motor supplier 
within the national technology and industrial base (as de-
fined in section 2500(1) of title 10, United States Code). 
(b) WAIVER.—The Secretary may waive subsection 
(a) in the case of compelling national security reasons. 
SEC. 838. FAR COUNCIL MEMBERSHIP FOR ADMINIS-
TRATOR OF SMALL BUSINESS ADMINISTRA-
TION. 
(a) ADDITION OF ADMINISTRATOR OF SMALL BUSI-
NESS ADMINISTRATION TO FEDERAL ACQUISITION REGU-
LATORY COUNCIL.—Section 1302(b)(1) of title 41, United 
States Code, is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (C); 
(2) by striking the period and inserting ‘‘; and’’ 
at the end of subparagraph (D); and
406 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(E) the Administrator of the Small Busi-
ness Administration.’’. 
(b) CONFORMING
AMENDMENTS.—Such title is 
amended— 
(1) in section 1303(a)(1)— 
(A) by striking ‘‘and the Administrator of 
National Aeronautics and Space,’’ and inserting 
‘‘the Administrator of National Aeronautics and 
Space, and the Administrator of the Small 
Business Administration,’’; and 
(B) by striking ‘‘and the National Aero-
nautics and Space Act of 1958 (42 U.S.C. 2451 
et seq.),’’ and inserting ‘‘the National Aero-
nautics and Space Act of 1958 (42 U.S.C. 2451 
et seq.), and the Small Business Act (15 U.S.C. 
631 et seq.),’’; and 
(2) in section 1121(d), by striking ‘‘and the 
General Services Administration’’ and inserting ‘‘the 
General Services Administration, and the Small 
Business Administration’’.
407 
SEC. 839. SURETY BOND REQUIREMENTS AND AMOUNT OF 
GUARANTEE. 
(a) SURETY BOND REQUIREMENTS.—Chapter 93 of 
subtitle VI of title 31, United States Code, is amended— 
(1) by adding at the end the following: 
‘‘§ 9310. Individual sureties 
‘‘If another applicable law or regulation permits the 
acceptance of a bond from a surety that is not subject 
to sections 9305 and 9306 and is based on a pledge of 
assets by the surety, the assets pledged by such surety 
shall— 
‘‘(1) consist of eligible obligations described 
under section 9303(a); and 
‘‘(2) be submitted to the official of the Govern-
ment required to approve or accept the bond, who 
shall deposit the assets with a depository described 
under section 9303(b).’’; and 
(2) in the table of contents for such chapter, by 
adding at the end the following: 
‘‘9310. Individual sureties.’’. 
(b) AMOUNT OF SURETY BOND GUARANTEE FROM 
SMALL BUSINESS ADMINISTRATION.—Section 411(c)(1) 
of the Small Business Investment Act of 1958 (15 U.S.C. 
694b(c)(1)) is amended by striking ‘‘70’’ and inserting 
‘‘90’’.
408 
(c) COMPTROLLER GENERAL STUDY
ON SURETY 
BONDS.— 
(1) STUDY.—The Comptroller General of the 
United States shall carry out a study on the fol-
lowing: 
(A) All instances during the 10-year period 
beginning on January 31, 2006, in which a sur-
ety bond proposed or issued by a surety in con-
nection with a Federal project was— 
(i) rejected by a Federal contracting 
officer; or 
(ii) accepted by a Federal contracting 
officer, but was later found to have been 
backed by insufficient collateral or to be 
otherwise deficient or with respect to which 
the surety did not perform. 
(B) The consequences to the Federal Gov-
ernment, subcontractors, and suppliers of the 
instances described under subparagraph (A). 
(C) The percentages of all Federal con-
tracts that were awarded to new startup busi-
nesses (including new startup businesses that 
are small disadvantaged businesses or disadvan-
taged business enterprises), small disadvan-
409 
taged businesses, and disadvantaged business 
enterprises as prime contractors during— 
(i) the 2-year period beginning on 
January 31, 2014 and ending on January 
31, 2016; and 
(ii) the 2-year period beginning on 
January 31, 2016 and ending on January 
31, 2018. 
(D) An assessment of the impact of the 
amendments made by this section upon the per-
centages described in subparagraph (C). 
(2) REPORT.—Not later than January 31, 
2019, the Comptroller General shall issue a report 
to the Committee on the Judiciary of the House of 
Representatives and the Committee on Homeland 
Security and Government Affairs of the Senate con-
taining all findings and determinations made in car-
rying out the study required under paragraph (1). 
(3) DEFINITIONS.—In this subsection: 
(A) DISADVANTAGED
BUSINESS
ENTER-
PRISE.—The term ‘‘disadvantaged business en-
terprise’’ has the meaning given that term 
under section 26.5 of title 49, Code of Federal 
Regulations.
410 
(B) NEW STARTUP BUSINESS.—The term 
‘‘new startup business’’ means a business that 
was formed in the 2-year period ending on the 
date on which the business bids on a Federal 
contract that requires giving a surety bond. 
(C) SMALL DISADVANTAGED BUSINESS.— 
The term ‘‘small disadvantaged business’’ has 
the meaning given the term ‘‘socially and eco-
nomically disadvantaged small business con-
cern’’ under section 8(a)(4) of the Small Busi-
ness Act (15 U.S.C. 637(a)(4)). 
SEC. 840. CERTIFICATION REQUIREMENTS FOR PROCURE-
MENT CENTER REPRESENTATIVES, BUSINESS 
OPPORTUNITY SPECIALISTS, AND COMMER-
CIAL MARKET REPRESENTATIVES. 
(a) PROCUREMENT CENTER REPRESENTATIVE RE-
QUIREMENTS.—Section 15(l)(5)(A)(iii) of the Small Busi-
ness Act (15 U.S.C. 644(l)(5)(A)(iii)) is amended by strik-
ing ‘‘except that’’ and all that follows through the period 
at the end and inserting the following: ‘‘except that— 
‘‘(I) any person serving in such a 
position on or before January 3, 
2013, may continue to serve in that 
position for a period of 5 years begin-
411 
ning on such date without the re-
quired certification; and 
‘‘(II) any person hired for such 
position after January 3, 2013, may 
have up to one calendar year from the 
date of employment to obtain the re-
quired certification.’’. 
(b) BUSINESS OPPORTUNITY SPECIALIST REQUIRE-
MENTS.— 
(1) IN GENERAL.—Section 4 of the Small Busi-
ness Act (15 U.S.C. 633) is amended by adding at 
the end the following new subsection: 
‘‘(g) CERTIFICATION REQUIREMENTS FOR BUSINESS 
OPPORTUNITY SPECIALISTS.—A Business Opportunity 
Specialist described under section 7(j)(10)(D) shall have 
a Level I Federal Acquisition Certification in Contracting 
(or any successor certification) or the equivalent Depart-
ment of Defense certification, except that— 
‘‘(1) a Business Opportunity Specialist who was 
serving on or before January 3, 2013, may continue 
to serve as a Business Opportunity Specialist for a 
period of 5 years beginning on such date without 
such a certification; and 
‘‘(2) any person hired as a Business Oppor-
tunity Specialist after January 3, 2013, may have
412 
up to one calendar year from the date of employ-
ment to obtain the required certification.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
7(j)(10)(D)(i) 
of 
such 
Act 
(15 
U.S.C. 
636(j)(10)(D)(i)) is amended by striking the second 
sentence. 
(c) COMMERCIAL MARKET REPRESENTATIVE RE-
QUIREMENTS.—Section 4 of the Small Business Act (15 
U.S.C. 633), as amended by subsection (b)(1), is further 
amended by adding at the end the following new sub-
section: 
‘‘(h) CERTIFICATION REQUIREMENTS FOR COMMER-
CIAL MARKET REPRESENTATIVES.—A commercial market 
representative referred to in section 15(q)(3) shall have 
a Level I Federal Acquisition Certification in Contracting 
(or any successor certification) or the equivalent Depart-
ment of Defense certification, except that— 
‘‘(1) a commercial market representative who 
was serving on or before the date of the enactment 
of the National Defense Authorization Act for Fiscal 
Year 2016 may continue to serve as a commercial 
market representative for a period of 5 years begin-
ning on such date without such a certification; and 
‘‘(2) any person hired as a commercial market 
representative after the date of the enactment of the
413 
National Defense Authorization Act for Fiscal Year 
2016 may have up to one calendar year from the 
date of employment to obtain the required certifi-
cation.’’. 
SEC. 841. INCLUDING SUBCONTRACTING GOALS IN AGENCY 
RESPONSIBILITIES. 
Section 1633(b) of the National Defense Authoriza-
tion Act for Fiscal Year 2013 (Public Law 112–239; 126 
Stat. 2076; 15 U.S.C. 631 note) is amended by striking 
‘‘assume responsibility for of the agency’s success in 
achieving small business contracting goals and percent-
ages’’ and inserting ‘‘assume responsibility for the agen-
cy’s success in achieving each of the small business prime 
contracting and subcontracting goals and percentages’’. 
SEC. 842. MODIFICATIONS TO REQUIREMENTS FOR QUALI-
FIED HUBZONE SMALL BUSINESS CONCERNS 
LOCATED IN A BASE CLOSURE AREA. 
(a) PERIOD FOR BASE CLOSURE AREAS.— 
(1) EXTENSION OF PERIOD.— 
(A) IN
GENERAL.—Section 152(a)(2) of 
title I of division K of the Consolidated Appro-
priations Act, 2005 (15 U.S.C. 632 note) is 
amended by striking ‘‘for a period of 5 years’’ 
and inserting ‘‘for the later of—
414 
‘‘(A) 8 years from the date of final closure; 
or 
‘‘(B) the date designated by the Adminis-
trator of the Small Business Administration 
that is based on data of the Bureau of the Cen-
sus obtained from the first decennial census 
conducted after the date of final closure.’’. 
(B) CONFORMING
AMENDMENT.—Section 
1698(b)(2) of National Defense Authorization 
Act for Fiscal Year 2013 (15 U.S.C. 632 note) 
is amended by striking ‘‘5 years’’ and inserting 
‘‘the later of— 
‘‘(A) 8 years; or 
‘‘(B) the date designated by the Adminis-
trator of the Small Business Administration de-
scribed in section 152(a)(2)(B) of title I of divi-
sion K of the Consolidated Appropriations Act, 
2005 (15 U.S.C. 632 note).’’. 
(2) EFFECTIVE
DATE; APPLICABILITY.—The 
amendments made by paragraph (1) shall— 
(A) take effect on the date of the enact-
ment of this Act; and 
(B) apply to— 
(i) a base closure area (as defined in 
section 3(p)(4)(D) of the Small Business
415 
Act (15 U.S.C. 632(p)(4)(D))) that, on the 
day before the date of the enactment of 
this Act, is treated as a HUBZone de-
scribed in section 3(p)(1)(E) of the Small 
Business Act (15 U.S.C. 632(p)(1)(E)) 
under— 
(I) section 152(a)(2) of title I of 
division K of the Consolidated Appro-
priations Act, 2005 (15 U.S.C. 632 
note); or 
(II) section 1698(b)(2) of Na-
tional Defense Authorization Act for 
Fiscal Year 2013 (15 U.S.C. 632 
note); and 
(ii) a base closure area relating to the 
closure of a military instillation under the 
authority described in clauses (i) through 
(iv) of section 3(p)(4)(D) of the Small 
Business Act (15 U.S.C. 632(p)(4)(D)) 
that occurs on or after the date of the en-
actment of this Act. 
(b) ELIGIBLE AREA FOR EMPLOYEE RESIDENCE FOR 
BASE CLOSURE HUBZONES.—Section 3(p)(5)(A)(i)(I) of 
the Small Business Act (15 U.S.C. 632(p)(5)(A)(i)(I)) is 
amended—
416 
(1) in item (aa), by striking ‘‘or’’ at the end; 
(2) by redesignating item (bb) as item (cc); and 
(3) by inserting after item (aa) the following 
new item: 
‘‘(bb) pursuant to subpara-
graph (A), (B), (C), (D), or (E) 
of paragraph (3), that its prin-
cipal office is located within a 
base closure area and that not 
fewer than 35 percent of its em-
ployees reside in such base clo-
sure 
area 
or 
in 
another 
HUBZone; or’’. 
(c) EXPANSION OF AREA INCLUDED IN BASE AREA 
CLOSURE DEFINITION.—Section 3(p)(4)(D) of the Small 
Business Act (15 U.S.C. 632(p)(4)(D)) is amended— 
(1) in clause (iv), by striking the period at the 
end and inserting ‘‘; and’’; 
(2) by redesignating clauses (i) through (iv) as 
subclauses (I) through (IV), respectively; 
(3) in the matter preceding subclause (I), as so 
redesignated, by striking ‘‘means lands within’’ and 
inserting the following: ‘‘means— 
‘‘(i) lands within’’; and
417 
(4) by adding at the end the following new 
clause: 
‘‘(ii) lands within 25 miles of the ex-
ternal boundaries of a military installation 
described in clause (i), excluding any such 
lands that are not within a qualified non-
metropolitan county.’’. 
SEC. 843. JOINT VENTURING AND TEAMING. 
(a) JOINT VENTURE OFFERS
FOR BUNDLED
OR 
CONSOLIDATED CONTRACTS.—Section 15(e)(4) of the 
Small Business Act (15 U.S.C. 644(e)(4)) is amended to 
read as follows: 
‘‘(4) CONTRACT TEAMING.— 
‘‘(A) IN GENERAL.—In the case of a solici-
tation of offers for a bundled or consolidated 
contract that is issued by the head of an agen-
cy, a small business concern that provides for 
use of a particular team of subcontractors or a 
joint venture of small business concerns may 
submit an offer for the performance of the con-
tract. 
‘‘(B) EVALUATION OF OFFERS.—The head 
of the agency shall evaluate an offer described 
in subparagraph (A) in the same manner as 
other offers, with due consideration to the capa-
418 
bilities of all of the proposed subcontractors or 
members of the joint venture as follows: 
‘‘(i) TEAMS.—When evaluating an 
offer of a small business prime contractor 
that includes a proposed team of small 
business subcontractors, the head of the 
agency shall consider the capabilities and 
past performance of each first tier subcon-
tractor that is part of the team as the ca-
pabilities and past performance of the 
small business prime contractor. 
‘‘(ii) JOINT VENTURES.—When evalu-
ating an offer of a joint venture of small 
business concerns, if the joint venture does 
not have sufficient capabilities or past per-
formance to be considered for award of a 
contract opportunity, the head of the agen-
cy shall consider the capabilities and past 
performance of each member of the joint 
venture as the capabilities past perform-
ance of the joint venture. 
‘‘(C) STATUS AS A SMALL BUSINESS CON-
CERN.—Participation of a small business con-
cern in a team or a joint venture under this 
paragraph shall not affect the status of that
419 
concern as a small business concern for any 
other purpose.’’. 
(b) TEAM AND JOINT VENTURES OFFERS FOR MUL-
TIPLE AWARD CONTRACTS.—Section 15(q)(1) of such Act 
(15 U.S.C. 644(q)(1)) is amended— 
(1) in the heading, by inserting ‘‘AND JOINT 
VENTURE’’ before ‘‘REQUIREMENTS’’; 
(2) by striking ‘‘Each Federal agency’’ and in-
serting the following: 
‘‘(A) IN
GENERAL.—Each Federal agen-
cy’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) TEAMS.—When evaluating an offer of 
a small business prime contractor that includes 
a proposed team of small business subcontrac-
tors for any multiple award contract above the 
substantial bundling threshold of the Federal 
agency, the head of the agency shall consider 
the capabilities and past performance of each 
first tier subcontractor that is part of the team 
as the capabilities and past performance of the 
small business prime contractor. 
‘‘(C) JOINT VENTURES.—When evaluating 
an offer of a joint venture of small business
420 
concerns for any multiple award contract above 
the substantial bundling threshold of the Fed-
eral agency, if the joint venture does not have 
sufficient capabilities or past performance to be 
considered for award of a contract opportunity, 
the head of the agency shall consider the capa-
bilities and past performance of each member of 
the joint venture as the capabilities and past 
performance of the joint venture.’’. 
SEC. 844. MODIFICATION TO AND SCORECARD PROGRAM 
FOR SMALL BUSINESS CONTRACTING GOALS. 
(a) AMENDMENT TO GOVERNMENTWIDE GOAL FOR 
SMALL
BUSINESS
PARTICIPATION
IN
PROCUREMENT 
CONTRACTS.—Section 15(g)(1)(A)(i) of the Small Busi-
ness Act (15 U.S.C. 644(g)(1)(A)(i) is amended by adding 
at the end the following: ‘‘In meeting this goal, the Gov-
ernment shall ensure the participation of small business 
concerns from a wide variety of industries and from a 
broad spectrum of small business concerns within each in-
dustry.’’. 
(b) SCORECARD PROGRAM FOR EVALUATING FED-
ERAL AGENCY COMPLIANCE WITH SMALL BUSINESS 
CONTRACTING GOALS.— 
(1) IN GENERAL.—Not later than September 
30, 2016, the Administrator of the Small Business
421 
Administration, in consultation with the Federal 
agencies, shall— 
(A) develop a methodology for calculating 
a score to be used to evaluate the compliance of 
each Federal agency with meeting the goals es-
tablished pursuant to section 15(g)(1)(B) of the 
Small Business Act (15 U.S.C. 644(g)(1)(B)); 
and 
(B) develop a scorecard based on such 
methodology. 
(2) AGENCY ANNUAL GOAL.—In developing the 
methodology for calculating a score described in 
paragraph (1), the Administrator shall consider each 
annual goal established by each Federal agency pur-
suant to section 15(g)(1)(B) of the Small Business 
Act (15 U.S.C. 644(g)(1)(B)). 
(3) USE OF SCORECARD.—Beginning in fiscal 
year 2017, the Administrator shall establish and 
carry out a program to use the scorecard developed 
under paragraph (1) to evaluate whether each Fed-
eral agency is creating the maximum practicable op-
portunities for the award of prime contracts and 
subcontracts to small business concerns, small busi-
ness concerns owned and controlled by service-dis-
abled veterans, qualified HUBZone small business
422 
concerns, small business concerns owned and con-
trolled by socially and economically disadvantaged 
individuals, and small business concerns owned and 
controlled by women, by assigning a score to each 
Federal agency. If the Administrator fails to estab-
lish and carry out this program before the end of 
fiscal year 2017, the Administrator may not exercise 
the authority under section 7(a)(25)(A) until such 
time as the program is implemented. 
(4) CONTENTS OF SCORECARD.—The scorecard 
developed under paragraph (1) shall include, for 
each Federal agency, the following information: 
(A) A determination of whether the Fed-
eral agency met each of the prime contract 
goals 
established 
pursuant 
to 
section 
15(g)(1)(B) of the Small Business Act (15 
U.S.C. 644(g)(1)(B)) with respect to small 
business concerns, small business concerns 
owned and controlled by service-disabled vet-
erans, qualified HUBZone small business con-
cerns, small business concerns owned and con-
trolled by socially and economically disadvan-
taged individuals, and small business concerns 
owned and controlled by women.
423 
(B) A determination of whether the Fed-
eral agency met each of the subcontract goals 
established pursuant to such section with re-
spect to small business concerns, small business 
concerns owned and controlled by service-dis-
abled veterans, qualified HUBZone small busi-
ness concerns, small business concerns owned 
and controlled by socially and economically dis-
advantaged individuals, and small business con-
cerns owned and controlled by women. 
(C) The number of small business con-
cerns, small business concerns owned and con-
trolled by service-disabled veterans, qualified 
HUBZone small business concerns, small busi-
ness concerns owned and controlled by socially 
and economically disadvantaged individuals, and 
small business concerns owned and controlled 
by women awarded prime contracts in each 
North American Industrial Classification Sys-
tem code during the fiscal year and a compari-
son to the number awarded contracts during 
the prior fiscal year, if available. 
(D) The number of small business con-
cerns, small business concerns owned and con-
trolled by service-disabled veterans, qualified
424 
HUBZone small business concerns, small busi-
ness concerns owned and controlled by socially 
and economically disadvantaged individuals, and 
small business concerns owned and controlled 
by women awarded subcontracts in each North 
American Industrial Classification System code 
during the fiscal year and a comparison to the 
number awarded contracts during the prior fis-
cal year, if available. 
(E) Any other factors that the Adminis-
trator deems important to achieve the max-
imum practicable utilization of small business 
concerns, small business concerns owned and 
controlled by service-disabled veterans, qualified 
HUBZone small business concerns, small busi-
ness concerns owned and controlled by socially 
and economically disadvantaged individuals, and 
small business concerns owned and controlled 
by women. 
(5) WEIGHTED FACTORS.—In using the score-
card to evaluate and assign a score to a Federal 
agency, the Administrator shall base— 
(A) fifty percent of the score on the dollar 
value of prime contracts described in paragraph 
(4)(A); and
425 
(B) fifty percent of the score on the infor-
mation provided in subparagraphs (B) through 
(E) of paragraph (4), weighted in a manner de-
termined by the Administrator to encourage the 
maximum practicable opportunity for the award 
of prime contracts and subcontracts to small 
business concerns, small business concerns 
owned and controlled by service-disabled vet-
erans, qualified HUBZone small business con-
cerns, small business concerns owned and con-
trolled by socially and economically disadvan-
taged individuals, and small business concerns 
owned and controlled by women. 
(6) PUBLICATION.—The scorecard used by the 
Administrator under this subsection shall be sub-
mitted to the President and Congress along with the 
report submitted under section 15(h)(2) of the Small 
Business Act (15 U.S.C. 644(h)(2)). 
(7) REPORT.—After the Administrator submits 
the scorecard for fiscal year 2018, but not later than 
March 31, 2019, the Administrator shall report to 
the Committee on Small Business of the House of 
Representatives and the Committee on Small Busi-
ness and Entrepreneurship of the Senate. Such re-
port shall include the following:
426 
(A) A description of any increase in the 
dollar amount of prime contracts and sub-
contracts awarded to small business concerns, 
small business concerns owned and controlled 
by 
service-disabled 
veterans, 
qualified 
HUBZone small business concerns, small busi-
ness concerns owned and controlled by socially 
and economically disadvantaged individuals, and 
small business concerns owned and controlled 
by women. 
(B) A description of any increase in the 
dollar amount of prime contracts and sub-
contracts awarded to small business concerns, 
small business concerns owned and controlled 
by 
service-disabled 
veterans, 
qualified 
HUBZone small business concerns, small busi-
ness concerns owned and controlled by socially 
and economically disadvantaged individuals, and 
small business concerns owned and controlled 
by women in each North American Industrial 
Classification System code. 
(C) A description of any increase to the 
number of small business concerns, small busi-
ness concerns owned and controlled by service- 
disabled veterans, qualified HUBZone small
427 
business concerns, small business concerns 
owned and controlled by socially and economi-
cally disadvantaged individuals, and small busi-
ness concerns owned and controlled by women 
awarded contracts in each North American In-
dustrial Classification System code. 
(D) The recommendation of the Adminis-
trator on continuing, modifying, expanding, or 
terminating the program established under this 
subsection. 
(8) GAO REPORT
ON
SCORECARD
METHOD-
OLOGY.—Not later than September 30, 2018, the 
Comptroller General of the United States shall sub-
mit to the Committee on Small Business of the 
House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate 
a report that— 
(A) evaluates whether the methodology 
used to calculate a score under this subsection 
accurately and effectively— 
(i) measures the compliance of each 
Federal agency with meeting the goals es-
tablished pursuant to section 15(g)(1)(B) 
of the Small Business Act (15 U.S.C. 
644(g)(1)(B)); and
428 
(ii) encourages Federal agencies to ex-
pand opportunities for mall business con-
cerns, small business concerns owned and 
controlled by service-disabled veterans, 
qualified HUBZone small business con-
cerns, small business concerns owned and 
controlled by socially and economically dis-
advantaged individuals, and small business 
concerns owned and controlled by women 
to compete for and be awarded Federal 
procurement contracts across North Amer-
ican 
Industrial 
Classification 
System 
Codes; and 
(B) if warranted, makes recommendations 
on how to improve such methodology to improve 
its accuracy and effectiveness. 
(9) DEFINITIONS.—In this subsection: 
(A) ADMINISTRATOR.—The term ‘‘Admin-
istrator’’ means the Administrator of the Small 
Business Administration. 
(B) FEDERAL AGENCY.—The term ‘‘Fed-
eral agency’’ has the meaning given the term 
‘‘agency’’ by section 551(1) of title 5, United 
States Code, but does not include the United
429 
States Postal Service or the Government Ac-
countability Office. 
(C) SCORECARD.—The term ‘‘scorecard’’ 
shall mean any summary using a rating system 
to evaluate a Federal agency’s efforts to meet 
goals established under section 15(g)(1)(B) of 
the 
Small 
Business 
Act 
(15 
U.S.C. 
644(g)(1)(B)) that— 
(i) includes the measures described in 
paragraph (4); and 
(ii) assigns a score to each Federal 
agency evaluated. 
(D) SMALL BUSINESS ACT DEFINITIONS.— 
(i) IN GENERAL.—The terms ‘‘small 
business concern’’, ‘‘small business concern 
owned and controlled by service-disabled 
veterans’’, ‘‘qualified HUBZone small busi-
ness concern’’, and ‘‘small business con-
cern owned and controlled by women’’ shall 
have the meanings given such terms under 
section 3 of the Small Business Act (15 
U.S.C. 632). 
(ii) 
SMALL
BUSINESS
CONCERNS 
OWNED
AND
CONTROLLED
BY
SOCIALLY 
AND ECONOMICALLY DISADVANTAGED IN-
430 
DIVIDUALS.—The term ‘‘small business 
concern owned and controlled by socially 
and economically disadvantaged individ-
uals’’ has the meaning given that term 
under section 8(d)(3)(C) of the Small 
Business Act (15 U.S.C. 637(d)(3)(C)). 
SEC. 845. ESTABLISHMENT OF AN OFFICE OF HEARINGS 
AND APPEALS IN THE SMALL BUSINESS AD-
MINISTRATION; PETITIONS FOR RECONSID-
ERATION OF SIZE STANDARDS. 
(a) ESTABLISHMENT OF AN OFFICE OF HEARINGS 
AND APPEALS IN THE SMALL BUSINESS ADMINISTRA-
TION.— 
(1) IN GENERAL.—Section 5 of the Small Busi-
ness Act (15 U.S.C. 634) is amended by adding at 
the end the following new subsection: 
‘‘(i) OFFICE OF HEARINGS AND APPEALS.— 
‘‘(1) ESTABLISHMENT.— 
‘‘(A) OFFICE.—There is established in the 
Administration an Office of Hearings and Ap-
peals— 
‘‘(i) to impartially decide matters re-
lating to program decisions of the Admin-
istrator—
431 
‘‘(I) for which Congress requires 
a hearing on the record; or 
‘‘(II) that the Administrator des-
ignates for hearing by regulation; and 
‘‘(ii) which shall contain the office of 
the Administration that handles requests 
submitted pursuant to sections 552 of title 
5, United States Code (commonly referred 
to as the ‘Freedom of Information Act’) 
and maintains records pursuant to section 
552a of title 5, United States Code (com-
monly referred to as the ‘Privacy Act of 
1974’). 
‘‘(B) JURISDICTION.—The Office of Hear-
ings and Appeals shall only hear appeals of 
matters as described in this Act, the Small 
Business Investment Act of 1958 (15 U.S.C. 
661 et seq.), and title 13 of the Code of Federal 
Regulations. 
‘‘(C) ASSOCIATE
ADMINISTRATOR.—The 
head of the Office of Hearings and Appeals 
shall be the Chief Hearing Officer appointed 
under section 4(b)(1), who shall be responsible 
to the Administrator. 
‘‘(2) CHIEF HEARING OFFICER DUTIES.—
432 
‘‘(A) IN
GENERAL.—The Chief Hearing 
Officer shall— 
‘‘(i) be a career appointee in the Sen-
ior Executive Service and an attorney li-
censed by a State, commonwealth, territory 
or possession of the United States, or the 
District of Columbia; and 
‘‘(ii) be responsible for the operation 
and management of the Office of Hearings 
and Appeals. 
‘‘(B) ALTERNATIVE
DISPUTE
RESOLU-
TION.—The Chief Hearing Officer may assign a 
matter for mediation or other means of alter-
native dispute resolution. 
‘‘(3) HEARING OFFICERS.— 
‘‘(A) IN GENERAL.—The Office of Hear-
ings and Appeals shall appoint Hearing Officers 
to carry out the duties described in paragraph 
(1)(A)(i). 
‘‘(B) CONDITIONS
OF
EMPLOYMENT.—A 
Hearing Officer appointed under this para-
graph— 
‘‘(i) shall serve in the excepted service 
as an employee of the Administration 
under section 2103 of title 5, United
433 
States Code, and under the supervision of 
the Chief Hearing Officer; 
‘‘(ii) shall be classified at a position to 
which section 5376 of title 5, United 
States Code, applies; and 
‘‘(iii) shall be compensated at a rate 
not exceeding the maximum rate payable 
under such section. 
‘‘(C) 
AUTHORITY; 
POWERS.—Notwith-
standing section 556(b) of title 5, United States 
Code, a Hearing Officer— 
‘‘(i) shall have the authority to hear 
claims arising under section 554 of such 
title; 
‘‘(ii) shall have the powers described 
in section 556(c) of such title; and 
‘‘(iii) shall conduct hearings and issue 
decisions in the manner described under 
sections 555, 556, and 557 of such title, as 
applicable. 
‘‘(D) TREATMENT
OF
CURRENT
PER-
SONNEL.—An individual serving as a Judge in 
the Office of Hearings and Appeals (as that po-
sition and office are designated in section 
134.101 of title 13, Code of Federal Regula-
434 
tions) on the effective date of this subsection 
shall be considered as qualified to be, and re-
designated as, a Hearing Officer. 
‘‘(4) HEARING
OFFICER
DEFINED.—In this 
subsection, the term ‘Hearing Officer’ means an in-
dividual appointed or redesignated under this sub-
section who is an attorney licensed by a State, com-
monwealth, territory or possession of the United 
States, or the District of Columbia.’’. 
(2) ASSOCIATE
ADMINISTRATOR
AS
CHIEF 
HEARING OFFICER.—Section 4(b)(1) of such Act (15 
U.S.C. 633(b)) is amended by adding at the end the 
following: ‘‘One such Associate Administrator shall 
be the Chief Hearing Officer, who shall administer 
the Office of Hearings and Appeals established 
under section 5(i).’’. 
(3) 
REPEAL
OF
REGULATION.—Section 
134.102(t) of title 13, Code of Federal Regulations, 
as in effect on January 1, 2015, (relating to types 
of hearings within the jurisdiction of the Office of 
Hearings and Appeals) shall have no force or effect. 
(b) PETITIONS
FOR RECONSIDERATION
OF SIZE 
STANDARDS FOR SMALL BUSINESS CONCERNS.—Section 
3(a) of the Small Business Act (15 U.S.C. 632(a)) is 
amended by adding at the end the following:
435 
‘‘(9) PETITIONS
FOR
RECONSIDERATION
OF 
SIZE STANDARDS.— 
‘‘(A) IN GENERAL.—A person may file a 
petition for reconsideration with the Office of 
Hearings and Appeals (as established under 
section 5(i)) of a size standard revised, modi-
fied, or established by the Administrator pursu-
ant to this subsection. 
‘‘(B) TIME LIMIT.—A person filing a peti-
tion for reconsideration described in subpara-
graph (A) shall file such petition not later than 
30 days after the publication in the Federal 
Register of the notice of final rule to revise, 
modify, or establish size standards described in 
paragraph (6). 
‘‘(C) PROCESS FOR AGENCY REVIEW.—The 
Office of Hearings and Appeals shall use the 
same process it uses to decide challenges to the 
size of a small business concern to decide a pe-
tition for review pursuant to this paragraph. 
‘‘(D) JUDICIAL REVIEW.—The publication 
of a final rule in the Federal Register described 
in subparagraph (B) shall be considered final 
agency action for purposes of seeking judicial 
review. Filing a petition for reconsideration
436 
under subparagraph (A) shall not be a condi-
tion precedent to judicial review of any such 
size standard.’’. 
SEC. 846. LIMITATIONS ON REVERSE AUCTIONS. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that, when used appropriately, reverse auctions may 
improve the Federal Government’s procurement of com-
mercially available commodities by increasing competition, 
reducing prices, and improving opportunities for small 
businesses. 
(b) LIMITATIONS
ON
REVERSE
AUCTIONS.—The 
Small Business Act (15 U.S.C. 631 et seq.) is amended— 
(1) by redesignating section 47 (15 U.S.C. 631 
note) as section 48; and 
(2) by inserting after section 46 the following 
new section: 
‘‘SEC. 47. LIMITATIONS ON REVERSE AUCTIONS. 
‘‘(a) PROHIBITION ON USING REVERSE AUCTIONS 
FOR COVERED CONTRACTS.—In the case of a covered con-
tract described in subsection (c), a reverse auction may 
not be used if the award of the contract is to be made 
under— 
‘‘(1) section 8(a); 
‘‘(2) section 8(m); 
‘‘(3) section 15(a);
437 
‘‘(4) section 15(j); 
‘‘(5) section 31; or 
‘‘(6) section 36. 
‘‘(b) LIMITATIONS ON USING REVERSE AUCTIONS.— 
In the case of the award of a contract made under para-
graphs (1) through (6) of subsection (a) that is not a cov-
ered contract, a reverse auction may be used for the award 
of such a contract, but only if the following requirements 
are met: 
‘‘(1) DECISIONS
REGARDING
USE
OF
A
RE-
VERSE AUCTION.—Subject to paragraph (2), the fol-
lowing decisions with respect to such a contract shall 
be made only by a contracting officer: 
‘‘(A) A decision to use a reverse auction as 
part of the competition for award of such a con-
tract. 
‘‘(B) Any decision made after the decision 
described in subsection (A) regarding the ap-
propriate evaluation criteria, the inclusion of 
vendors, the acceptability of vendor submissions 
(including decisions regarding timeliness), and 
the selection of the winner. 
‘‘(2) TRAINING REQUIRED.—Only a contracting 
officer who has received training on the appropriate 
use and supervision of reverse auctions may use or
438 
supervise a reverse auction for the award of such a 
contract. The training shall be provided by, or simi-
lar to the training provided by, the Defense Acquisi-
tion University as described in section 824 of the 
Carl Levin and Howard P. ‘Buck’ McKeon National 
Defense Authorization Act for Fiscal Year 2015 
(Public Law 113–291). 
‘‘(3) NUMBER
OF
OFFERS; 
REVISIONS
TO 
BIDS.—A Federal agency may not award such a con-
tract using a reverse auction if only one offer is re-
ceived or if offerors do not have the ability to submit 
revised bids with lower prices throughout the course 
of the auction. 
‘‘(4) TECHNICALLY
ACCEPTABLE
OFFERS.—A 
Federal agency awarding such a contract using a re-
verse auction shall evaluate the technical accept-
ability of offers only as technically acceptable or un-
acceptable. 
‘‘(5) USE
OF
PRICE
RANKINGS.—A Federal 
agency may not award such a contract using a re-
verse auction if at any time during the award proc-
ess the Federal agency misinforms an offeror about 
the price ranking of the offeror’s last offer sub-
mitted in relation to offers submitted by other 
offerors.
439 
‘‘(6) USE OF THIRD-PARTY AGENTS.—If a Fed-
eral agency uses a third party agent to assist with 
the award of such a contract using a reverse auc-
tion, the Federal agency shall ensure that— 
‘‘(A) inherently governmental functions (as 
such term is used in section 2303 of title 41, 
United States Code) are not performed by pri-
vate contractors, including by the third party 
agent; 
‘‘(B) information on the past contract per-
formance of offerors created by the third party 
agent and shared with the Federal agency is 
collected, maintained, and shared in compliance 
with section 1126 of title 41, United States 
Code; 
‘‘(C) information on whether an offeror is 
a responsible source (as defined in section 113 
of title 41, United States Code) that is created 
by the third party agent and shared with the 
Federal agency is shared with the offeror and 
complies with section 8(b)(7) of this Act; and 
‘‘(D) disputes between the third party 
agent and an offeror may not be used to justify 
a determination that an offeror is not a respon-
sible source (as defined in section 113 of title
440 
41, United States Code) or to otherwise restrict 
the ability of an offeror to compete for the 
award of such a contract or task or delivery 
order. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) CONTRACTING OFFICER.—The term ‘con-
tracting officer’ has the meaning given that term in 
section 2101(1) of title 41, United States Code. 
‘‘(2) COVERED CONTRACT.—The term ‘covered 
contract’ means a contract— 
‘‘(A) for design and construction services; 
‘‘(B) for goods purchased to protect Fed-
eral employees, members of the Armed Forces, 
or civilians from bodily harm; or 
‘‘(C) for goods or services other than those 
goods or services described in subparagraph (A) 
or (B)— 
‘‘(i) to be awarded based on factors 
other than price and technical responsi-
bility; or 
‘‘(ii) if awarding the contract requires 
the contracting officer to conduct discus-
sions with the offerors about their offer. 
‘‘(3) DESIGN AND CONSTRUCTION SERVICES.— 
The term ‘design and construction services’ means—
441 
‘‘(A) site planning and landscape design; 
‘‘(B) architectural and interior design; 
‘‘(C) engineering system design; 
‘‘(D) performance of construction work for 
facility, infrastructure, and environmental res-
toration projects; 
‘‘(E) delivery and supply of construction 
materials to construction sites; 
‘‘(F) construction, alteration, or repair, in-
cluding painting and decorating, of public build-
ings and public works; and 
‘‘(G) architectural and engineering services 
as defined in section 1102 of title 40, United 
States Code. 
‘‘(4) REVERSE
AUCTION.—The term ‘reverse 
auction’, with respect to procurement by an agency, 
means an auction between a group of offerors who 
compete against each other by submitting offers for 
a contract or task or delivery order with the ability 
to submit revised offers with lower prices throughout 
the course of the auction.’’. 
SEC. 847. SENSE OF CONGRESS ON PROCUREMENT OF FIRE 
HOSES. 
(a) FINDINGS.—
442 
(1) The General Services Administration has 
historically procured specialized fire hoses designed 
for combating wildfires used by the Forest Service. 
(2) A memorandum of agreement was signed on 
February 5, 2014, by the Administrator of General 
Services and the Director of the Defense Logistics 
Agency designating the Defense Logistics Agency as 
the integrated material manager and source of sup-
ply for such fire hoses. 
(3) While the intent of this agreement was to 
secure efficiencies in procurement and cost savings 
for the Government, the transfer of procurement au-
thority to the Department of Defense had the unin-
tentional effect of requiring all suppliers of such fire 
hoses to comply with the domestic sourcing require-
ments of section 2533a of title 10, United States 
Code, also known as the Berry Amendment. 
(4) There is currently only one known provider 
of such fire hoses and that provider is not fully com-
pliant with the domestic sourcing requirements of 
the Berry Amendment. 
(5) As a result of the designation of the De-
fense Logistic Agency as the integrated material 
manager for the procurement of such fire hoses and 
the new requirement for compliance with the Berry
443 
Amendment, the Forest Service does not anticipate 
the ability to procure the necessary number of fire 
hoses before the fire season begins in early June and 
is currently facing a shortfall of 56,000 hoses out of 
the 93,000 required. According to the Chief of the 
Forest Service, this shortfall represents a critical 
risk to a number of States that are likely to experi-
ence a season of above average wildfire activity. 
(6) During the period of May 1, 2014, through 
May 5, 2015, less than 9 percent of quantities of 
such hoses purchased by the Defense Logistics 
Agency were procured for the purposes of the De-
partment of Defense. 
(b) SENSE OF CONGRESS.—Based on the findings in 
subsection (a), it is the sense of Congress that procure-
ment authority for specialized fire hoses for the United 
States Forest Service should be reestablished as an activ-
ity of the General Services Administration. 
Subtitle E—Other Matters 
SEC. 851. ADDITIONAL RESPONSIBILITY FOR DIRECTOR OF 
OPERATIONAL TEST AND EVALUATION. 
(a) ADDITIONAL RESPONSIBILITY.—Section 139 of 
title 10, United States Code, is amended—
444 
(1) by redesignating subsections (c), (d), (e), 
(f), (g), (h), (i), (j), and (k) as subsections (d), (e), 
(f), (g), (h), (i), (j), (k), and (l), respectively; and 
(2) by inserting after subsection (b) the fol-
lowing new subsection (c): 
‘‘(c) The Director shall consider the potential for in-
creases in program cost estimates or delays in schedule 
estimates in the implementation of policies, procedures, 
and activities related to operational test and evaluation 
and shall take appropriate action to ensure that oper-
ational test and evaluation activities do not unnecessarily 
increase program costs or impede program schedules.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
196(c)(1)(A)(ii) of such title is amended by striking ‘‘sec-
tion 139(i)’’ and inserting ‘‘section 139(k)’’. 
SEC. 852. USE OF RECENT PRICES PAID BY THE GOVERN-
MENT IN THE DETERMINATION OF PRICE 
REASONABLENESS. 
Section 2306a(b) of title 10, United States Code, as 
amended by section 804, is further amended by adding 
at the end the following new paragraph: 
‘‘(5) A contracting officer shall consider evi-
dence provided by an offeror of recent purchase 
prices paid by the Government for the same or simi-
lar commercial items in establishing price reason-
445 
ableness on a subsequent purchase if the contracting 
officer is satisfied that the prices previously paid re-
main a valid reference for comparison after consid-
ering the totality of other relevant factors such as 
the time elapsed since the prior purchase and any 
differences in the quantities purchased or applicable 
terms and conditions.’’. 
SEC. 853. CODIFICATION OF OTHER TRANSACTION AU-
THORITY 
FOR 
CERTAIN 
PROTOTYPE 
PROJECTS. 
(a) IN GENERAL.—Section 845 of the National De-
fense Authorization Act for Fiscal Year 1994 (Public Law 
103–160; 10 U.S.C. 2371 note) is transferred to chapter 
139 of title 10, United States Code, inserted so as to ap-
pear after section 2371a, redesignated as section 2371b, 
and amended— 
(1) by amending the section heading to read as 
follows: 
‘‘§ 2371b. 
Authority 
of 
the 
Advanced 
Research 
Projects Agency to carry out certain pro-
totype projects’’; 
(2) by striking ‘‘of title 10, United States 
Code’’ each place it appears and inserting ‘‘of this 
title’’;
446 
(3) by striking ‘‘of title 41, United States 
Code’’ each place it appears and inserting ‘‘of title 
41’’; 
(4) by amending subparagraph (B) of sub-
section (d)(1) to read as follows: 
‘‘(B) all parties to the transaction other than 
the Federal Government are innovative small busi-
ness and nontraditional contractors with unique ca-
pabilities relevant to the prototype project.’’; and 
(5) by striking subsection (i). 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 2371a the following new 
item: 
‘‘2371b. Authority of the Advanced Research Projects Agency to carry out cer-
tain prototype projects.’’. 
SEC. 
854. 
AMENDMENTS 
TO 
CERTAIN 
ACQUISITION 
THRESHOLDS. 
(a) SIMPLIFIED ACQUISITION THRESHOLD GEN-
ERALLY.—Section 134 of title 41, United States Code, is 
amended 
by 
striking 
‘‘$100,000’’ 
and 
inserting 
‘‘$500,000’’. 
(b) 
MICRO-PURCHASE
THRESHOLD.—Section 
1902(a) of title 41, United States Code, is amended by 
striking ‘‘$3,000’’ and inserting ‘‘$5,000’’.
447 
(c) SPECIAL EMERGENCY PROCUREMENT AUTHOR-
ITY.—Section 1903(b)(2) of title 41, United States Code, 
is amended— 
(1) 
in 
subparagraph 
(A), 
by 
striking 
‘‘$250,000’’ and inserting ‘‘$750,000’’; and 
(2) 
in 
subparagraph 
(B), 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’. 
(d) SMALL BUSINESS CONCERN RESERVATION.— 
Section 15(j)(1) of the Small Business Act (15 U.S.C. 
644(j)(1)) is amended by striking ‘‘$100,000’’ and insert-
ing ‘‘$500,000’’. 
(e) LIMITATION.—Subsection (a) shall not apply to 
a covered item as defined in subparagraphs of (B), (C), 
(D), or (E) of section 2533a(b)(1) of title 10, United 
States Code. 
SEC. 855. REVISION OF METHOD OF ROUNDING WHEN MAK-
ING INFLATION ADJUSTMENT OF ACQUISI-
TION-RELATED DOLLAR THRESHOLDS. 
Section 1908(e)(2) of title 41, United States Code, 
is amended— 
(1) in the matter preceding subparagraph (A), 
by striking ‘‘on the day before the adjustment’’ and 
inserting ‘‘as calculated under paragraph (1)’’; 
(2) by striking ‘‘and’’ at the end of subpara-
graph (C); and
448 
(3) by striking subparagraph (D) and inserting 
the following new subparagraphs: 
‘‘(D) not less than $1,000,000, but less 
than $10,000,000, to the nearest $500,000; 
‘‘(E) not less than $10,000,000, but less 
than $100,000,000, to the nearest $5,000,000; 
‘‘(F) not less than $100,000,000, but less 
than 
$1,000,000,000, 
to 
the 
nearest 
$50,000,000; and 
‘‘(G) $1,000,000,000 or more, to the near-
est $500,000,000.’’. 
SEC. 856. REPEAL OF REQUIREMENT FOR STAND-ALONE 
MANPOWER 
ESTIMATES 
FOR 
MAJOR 
DE-
FENSE ACQUISITION PROGRAMS. 
(a) REPEAL OF REQUIREMENT.—Subsection (a)(1) 
of section 2434 of title 10, United States Code, is amend-
ed by striking ‘‘and a manpower estimate for the program 
have’’ and inserting ‘‘has’’. 
(b) CONFORMING AMENDMENTS RELATING TO REG-
ULATIONS.—Subsection (b) of such section is amended— 
(1) by striking paragraph (2); 
(2) by striking ‘‘shall require—’’ and all that 
follows through ‘‘that the independent’’ and insert-
ing ‘‘shall require that the independent’’;
449 
(3) by redesignating subparagraphs (A) and 
(B) as paragraphs (1) and (2), respectively, and re-
aligning those paragraphs so as to be two ems from 
the left margin; and 
(4) in paragraph (2), as so redesignated— 
(A) by striking ‘‘and operations and sup-
port,’’ and inserting ‘‘operations and support, 
and manpower to operate, maintain, and sup-
port the program upon full operational deploy-
ment,’’; and 
(B) by striking ‘‘; and’’ at the end and in-
serting a period. 
(c) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of such 
section is amended to read as follows: 
‘‘§ 2434. Independent cost estimates’’. 
(2) TABLE OF SECTIONS.—The item relating to 
such section in the table of sections at the beginning 
of chapter 144 of such title is amended to read as 
follows: 
‘‘2434. Independent cost estimates.’’.
450 
SEC. 857. EXAMINATION AND GUIDANCE RELATING TO 
OVERSIGHT AND APPROVAL OF SERVICES 
CONTRACTS. 
Not later than March 1, 2016, the Under Secretary 
of Defense for Acquisition, Technology, and Logistics 
shall— 
(1) complete an examination of the decision au-
thority related to acquisition of services; and 
(2) develop and issue guidance to improve capa-
bilities and processes related to requirements devel-
opment and source selection for, and oversight and 
management of, services contracts. 
SEC. 858. STREAMLINING OF REQUIREMENTS RELATING TO 
DEFENSE BUSINESS SYSTEMS. 
(a) IN GENERAL.— 
(1) REVISION.—Section 2222 of title 10, 
United States Code, is amended to read as follows: 
‘‘§ 2222. Defense business systems: business process 
reengineering; 
enterprise 
architecture; 
management 
‘‘(a) DEFENSE BUSINESS SYSTEMS GENERALLY.— 
The Secretary of Defense shall ensure that each covered 
defense business system developed, deployed, and operated 
by the Department of Defense—
451 
‘‘(1) supports efficient business processes that 
have been reviewed, and as appropriate revised, 
through business process reengineering; 
‘‘(2) is integrated into a comprehensive defense 
business enterprise architecture; and 
‘‘(3) is managed in a manner that provides visi-
bility into, and traceability of, expenditures for the 
system. 
‘‘(b) ISSUANCE OF GUIDANCE.— 
‘‘(1) SECRETARY
OF
DEFENSE
GUIDANCE.— 
The Secretary shall issue guidance to provide for the 
coordination of, and decision making for, the plan-
ning, programming, and control of investments in 
covered defense business systems. 
‘‘(2) SUPPORTING
GUIDANCE.—The Secretary 
shall direct the Deputy Chief Management Officer of 
the Department of Defense, the Under Secretary of 
Defense for Acquisition, Technology, and Logistics, 
the Chief Information Officer, and the Chief Man-
agement Officer of each of the military departments 
to issue and maintain supporting guidance, as ap-
propriate, for the guidance of the Secretary issued 
under paragraph (1).
452 
‘‘(c) GUIDANCE ELEMENTS.—The guidance issued 
under subsection (b)(1) shall include the following ele-
ments: 
‘‘(1) Policy to ensure that the business proc-
esses of the Department of Defense are continuously 
reviewed and revised— 
‘‘(A) to implement the most streamlined 
and efficient business processes practicable; 
‘‘(B) to enable the use of commercial off- 
the-shelf business systems with the fewest 
changes necessary to accommodate require-
ments and interfaces that are unique to the De-
partment of Defense; 
‘‘(C) to evaluate commercial off-the-shelf 
business systems for security, resilience, reli-
ability, interoperability, and integration with ex-
isting interrelated systems where such system 
integration and interoperability are essential to 
Department of Defense operations; 
‘‘(D) to work with commercial off-the-shelf 
business system developers and owners in 
adapting systems for Department of Defense 
use; 
‘‘(E) to work with commercial off-the-shelf 
business system developers and owners where
453 
necessary to evaluate the feasibility of making 
the necessary changes where needed to adapt 
systems for Department of Defense use; 
‘‘(F) to perform Department of Defense 
system audits to determine which systems are 
related to or rely upon the system to be re-
placed or integrated with commercial off-the- 
shelf business systems; 
‘‘(G) to include data mapping as a step in 
the testing of commercial off-the-shelf business 
systems prior to deployment; and 
‘‘(H) to perform full backup of systems 
that will be changed or replaced by the installa-
tion of commercial off-the-shelf business sys-
tems prior to installation and deployment to en-
sure reconstitution of the system to a func-
tioning state should it become necessary. 
‘‘(2) A process to establish requirements for 
covered defense business systems. 
‘‘(3) Mechanisms for the planning and control 
of investments in covered defense business systems, 
including a process for the collection and review of 
programming and budgeting information for covered 
defense business systems.
454 
‘‘(4) Policy requiring the periodic review of cov-
ered defense business systems that have been fully 
deployed, by portfolio, to ensure that investments in 
such portfolios are appropriate. 
‘‘(d) DEFENSE BUSINESS ENTERPRISE ARCHITEC-
TURE.— 
‘‘(1) BLUEPRINT.—The Secretary, working 
through the Deputy Chief Management Officer of 
the Department of Defense, shall develop and main-
tain a blueprint to guide the development of inte-
grated business processes within the Department of 
Defense. Such blueprint shall be known as the ‘de-
fense business enterprise architecture’. 
‘‘(2) PURPOSE.—The defense business enter-
prise architecture shall be sufficiently defined to ef-
fectively guide implementation of interoperable de-
fense business system solutions and shall be con-
sistent with the policies and procedures established 
by the Director of the Office of Management and 
Budget. 
‘‘(3) ELEMENTS.—The defense business enter-
prise architecture shall— 
‘‘(A) include policies, procedures, business 
data standards, business performance measures, 
and business information requirements that
455 
apply uniformly throughout the Department of 
Defense; and 
‘‘(B) enable the Department of Defense 
to— 
‘‘(i) comply with all applicable law, in-
cluding Federal accounting, financial man-
agement, and reporting requirements; 
‘‘(ii) 
routinely 
produce 
verifiable, 
timely, accurate, and reliable business and 
financial information for management pur-
poses; and 
‘‘(iii) integrate budget, accounting, 
and program information and systems. 
‘‘(4) INTEGRATION INTO INFORMATION TECH-
NOLOGY ARCHITECTURE.—(A) The defense business 
enterprise architecture shall be integrated into the 
information technology enterprise architecture re-
quired under subparagraph (B). 
‘‘(B) The Chief Information Officer of the De-
partment of Defense shall develop an information 
technology enterprise architecture. The architecture 
shall describe a plan for improving the information 
technology and computing infrastructure of the De-
partment of Defense, including for each of the major
456 
business processes conducted by the Department of 
Defense. 
‘‘(e) DEFENSE BUSINESS COUNCIL.— 
‘‘(1) REQUIREMENT FOR COUNCIL.—The Sec-
retary shall establish a Defense Business Council to 
provide advice to the Secretary on developing the de-
fense business enterprise architecture, reengineering 
the Department’s business processes, and require-
ments for defense business systems. The Council 
shall be chaired by the Deputy Chief Management 
Officer and the Chief Information Officer of the De-
partment of Defense. 
‘‘(2) MEMBERSHIP.—The membership of the 
Council shall include the following: 
‘‘(A) The Chief Management Officers of 
the military departments, or their designees. 
‘‘(B) The following officials of the Depart-
ment of Defense, or their designees: 
‘‘(i) The Under Secretary of Defense 
for Acquisition, Technology, and Logistics 
with respect to acquisition, logistics, and 
installations management processes. 
‘‘(ii) The Under Secretary of Defense 
(Comptroller) with respect to financial
457 
management and planning and budgeting 
processes. 
‘‘(iii) The Under Secretary of Defense 
for Personnel and Readiness with respect 
to human resources management proc-
esses. 
‘‘(f) APPROVALS REQUIRED FOR DEVELOPMENT.— 
‘‘(1) INITIAL APPROVAL REQUIRED.—The Sec-
retary shall ensure that a covered defense business 
system program cannot proceed into development 
(or, if no development is required, into production or 
fielding) unless the appropriate approval official (as 
specified in paragraph (2)) approves the program by 
determining that the covered defense business sys-
tem concerned— 
‘‘(A) supports a business process that has 
been, or is being as a result of the acquisition 
program, reengineered to be as streamlined and 
efficient as practicable consistent with the guid-
ance issued pursuant to subsection (b), includ-
ing business process mapping; 
‘‘(B) is in compliance with the defense 
business enterprise architecture developed pur-
suant to subsection (d) or will be in compliance 
as a result of modifications planned;
458 
‘‘(C) has valid, achievable requirements; 
and 
‘‘(D) is in compliance with the Depart-
ment’s auditability requirements. 
‘‘(2) APPROPRIATE OFFICIAL.—For purposes of 
paragraph (1), the appropriate approval official with 
respect to a covered defense business system is the 
following: 
‘‘(A) In the case of a system of a military 
department, the Chief Management Officer of 
that military department. 
‘‘(B) In the case of a system of a Defense 
Agency or Defense Field Activity or a system 
that will support the business process of more 
than one military department or Defense Agen-
cy or Defense Field Activity, the Deputy Chief 
Management Officer of the Department of De-
fense. 
‘‘(C) In the case of any system, such offi-
cial other than the applicable official under sub-
paragraph (A) or (B) as the Secretary des-
ignates for such purpose. 
‘‘(3) ANNUAL CERTIFICATION.—For any fiscal 
year in which funds are expended for development 
pursuant to a covered defense business system pro-
459 
gram, the Defense Business Council shall review the 
system and certify (or decline to certify as the case 
may be) that it continues to satisfy the requirements 
of paragraph (1). If the Council determines that cer-
tification cannot be granted, the chairman of the 
Council shall notify the appropriate approval official 
and the acquisition Milestone Decision Authority for 
the program and provide a recommendation for cor-
rective action. 
‘‘(4) OBLIGATION OF FUNDS IN VIOLATION OF 
REQUIREMENTS.—The obligation of Department of 
Defense funds for a covered defense business system 
program that has not been certified in accordance 
with paragraph (3) is a violation of section 
1341(a)(1)(A) of title 31. 
‘‘(g) RESPONSIBILITY OF MILESTONE DECISION AU-
THORITY.—The Secretary shall ensure that, as part of the 
defense acquisition system, the requirements of this sec-
tion are fully addressed by the Milestone Decision Author-
ity for a covered defense business system program as ac-
quisition process approvals are considered for such system. 
‘‘(h) ANNUAL REPORT.—Not later than March 15 of 
each year from 2016 through 2020, the Secretary shall 
submit to the congressional defense committees a report
460 
on activities of the Department of Defense pursuant to 
this section. Each report shall include the following: 
‘‘(1) A description of actions taken and planned 
with respect to the guidance required by subsection 
(b) and the defense business enterprise architecture 
developed pursuant to subsection (d). 
‘‘(2) A description of actions taken and planned 
for the reengineering of business processes by the 
Defense Business Council established pursuant to 
subsection (e). 
‘‘(3) A summary of covered defense business 
system funding and covered defense business sys-
tems approved pursuant to subsection (f). 
‘‘(4) Identification of any covered defense busi-
ness system program that during the preceding fis-
cal year was reviewed and not approved pursuant to 
subsection (f) and the reasons for the lack of ap-
proval. 
‘‘(5) Identification of any covered defense busi-
ness system program that during the preceding fis-
cal year failed to achieve initial operational capa-
bility within five years after the date the program 
received Milestone B approval.
461 
‘‘(6) For any program identified under para-
graph (5), a description of the plan to address the 
issues that caused the failure. 
‘‘(7) A discussion of specific improvements in 
business operations and cost savings resulting from 
successful covered defense business systems pro-
grams. 
‘‘(8) A copy of the most recent report of the 
Chief Management Officer of each military depart-
ment on implementation of business transformation 
initiatives by such military department in accordance 
with section 908 of the Duncan Hunter National 
Defense Authorization Act for Fiscal Year 2009 
(Public Law 110–417; 122 Stat. 4569; 10 U.S.C. 
2222 note). 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1)(A) DEFENSE
BUSINESS
SYSTEM.—The 
term ‘defense business system’ means an informa-
tion system that is operated by, for, or on behalf of 
the Department of Defense, including any of the fol-
lowing: 
‘‘(i) A financial system. 
‘‘(ii) A financial data feeder system. 
‘‘(iii) A contracting system. 
‘‘(iv) A logistics system.
462 
‘‘(v) A planning and budgeting sys-
tem. 
‘‘(vi) An installations management 
system. 
‘‘(vii) A human resources manage-
ment system. 
‘‘(viii) A training and readiness sys-
tem. 
‘‘(B) The term does not include— 
‘‘(i) a national security system; or 
‘‘(ii) an information system used ex-
clusively by and within the defense com-
missary system or the exchange system or 
other instrumentality of the Department of 
Defense conducted for the morale, welfare, 
and recreation of members of the armed 
forces using nonappropriated funds. 
‘‘(2) COVERED DEFENSE BUSINESS SYSTEM.— 
The term ‘covered defense business system’ means a 
defense business system that is expected to have a 
total amount of budget authority, over the period of 
the current future-years defense program submitted 
to Congress under section 221 of this title, in excess 
of the threshold established for the use of special
463 
simplified acquisition procedures pursuant to section 
2304(g)(1)(B) of this title. 
‘‘(3) COVERED
DEFENSE
BUSINESS
SYSTEM 
PROGRAM.—The term ‘covered defense business sys-
tem program’ means a defense acquisition program 
to develop and field a covered defense business sys-
tem or an increment of a covered defense business 
system. 
‘‘(4) ENTERPRISE ARCHITECTURE.—The term 
‘enterprise architecture’ has the meaning given that 
term in section 3601(4) of title 44. 
‘‘(5) INFORMATION SYSTEM.—The term ‘infor-
mation system’ has the meaning given that term in 
section 11101 of title 40. 
‘‘(6) NATIONAL SECURITY SYSTEM.—The term 
‘national security system’ has the meaning given 
that term in section 3542(b)(2) of title 44. 
‘‘(7) MILESTONE DECISION AUTHORITY.—The 
term ‘Milestone Decision Authority’, with respect to 
a defense acquisition program, means the individual 
within the Department of Defense designated with 
the responsibility to grant milestone approvals for 
that program. 
‘‘(8) BUSINESS PROCESS MAPPING.—The term 
‘business process mapping’ means a procedure in
464 
which the steps in a business process are clarified 
and documented in both written form and in a flow 
chart.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by striking the item relating to section 2222 and in-
serting the following new item: 
‘‘2222. Defense business systems: business process reengineering; enterprise ar-
chitecture; management.’’. 
(b) DEADLINE FOR GUIDANCE.—The guidance re-
quired by subsection (b)(1) of section 2222 of title 10, 
United States Code, as amended by subsection (a)(1), 
shall be issued not later than December 31, 2016. 
(c) REPEAL.—Section 811 of the John Warner Na-
tional Defense Authorization Act for Fiscal Year 2007 
(Public Law 109–364; 10 U.S.C. 2222 note) is repealed. 
SEC. 859. CONSIDERATION OF STRATEGIC MATERIALS IN 
PRELIMINARY DESIGN REVIEW. 
(a) CONSIDERATION.—The Under Secretary of De-
fense for Acquisition, Technology, and Logistics shall en-
sure that Department of Defense Instruction 5000.02 and 
other applicable guidance receive full consideration, during 
preliminary design review for a product, with respect to 
any strategic materials required for sustainment of the 
product over the life cycle of the product.
465 
(b) STRATEGIC MATERIALS.—In this section, the 
term ‘‘strategic materials’’ means— 
(1) materials critical to national security, as de-
fined in section 187(e)(1) of title 10, United States 
Code; and 
(2) any specialty metal, as defined in section 
2533b(l) of such title. 
SEC. 860. PROCUREMENT OF PERSONAL PROTECTIVE 
EQUIPMENT. 
(a) REQUIREMENT.—The Secretary of Defense shall 
use best value tradeoff source selection methods to the 
maximum extent practicable when procuring an item of 
personal protective equipment or critical safety items. 
(b) 
PERSONAL
PROTECTIVE
EQUIPMENT
DE-
FINED.—In this section, the term ‘‘personal protective 
equipment’’ includes the following: 
(1) Body armor components. 
(2) Combat helmets. 
(3) Combat protective eyewear. 
(4) Environmental and fire resistant clothing. 
(5) Footwear. 
(6) Organizational clothing and individual 
equipment. 
(7) Other critical safety items as determined 
appropriate by the Secretary.
466 
SEC. 861. AMENDMENTS CONCERNING DETECTION AND 
AVOIDANCE OF COUNTERFEIT ELECTRONIC 
PARTS. 
Section 818(c)(2)(B) of the National Defense Au-
thorization Act for Fiscal Year 2012 (Public Law 112– 
81; 10 U.S.C. 2302 note) is amended— 
(1) in clause (i), by inserting ‘‘electronic’’ after 
‘‘avoid counterfeit’’; 
(2) in clause (ii)— 
(A) by inserting ‘‘covered’’ after ‘‘provided 
to the’’; and 
(B) by inserting ‘‘or were obtained by the 
covered contractor in accordance with regula-
tions described in paragraph (3)’’ after ‘‘Regu-
lation’’; and 
(3) in clause (iii), by inserting ‘‘discovers the 
counterfeit electronic parts or suspect counterfeit 
electronic parts and’’ after ‘‘contractor’’. 
SEC. 862. REVISION TO DUTIES OF THE DEPUTY ASSISTANT 
SECRETARY OF DEFENSE FOR DEVELOP-
MENTAL TEST AND EVALUATION AND THE 
DEPUTY ASSISTANT SECRETARY OF DEFENSE 
FOR SYSTEMS ENGINEERING. 
Section 139b of title 10, United States Code, is 
amended— 
(1) in subsection (a)(5)—
467 
(A) in subparagraph (B), by striking ‘‘re-
view and approve or disapprove’’ and inserting 
‘‘advise in writing the milestone decision au-
thority regarding review and approval of’’; and 
(B) in subparagraph (C), by inserting ‘‘in 
order to advise relevant technical authorities for 
such programs on the incorporation of best 
practices for developmental test from across the 
Department’’ after ‘‘programs’’; and 
(2) in subsection (b)(5)— 
(A) in subparagraph (B), by striking ‘‘re-
view and approve’’ and inserting ‘‘advise in 
writing the milestone decision authority regard-
ing review and approval of’’; and 
(B) in subparagraph (C), by inserting ‘‘in 
order to advise relevant technical authorities for 
such programs on the incorporation of best 
practices for systems engineering from across 
the Department’’ after ‘‘programs’’. 
SEC. 863. EXTENSION OF LIMITATION ON AGGREGATE AN-
NUAL AMOUNT AVAILABLE FOR CONTRACT 
SERVICES. 
Section 808 of the National Defense Authorization 
Act for Fiscal Year 2012 (Public Law 112–81; 125 Stat. 
1489), as most recently amended by section 813 of the
468 
National Defense Authorization Act for Fiscal Year 2015 
(Public Law 113–291; 128 Stat. 3429) is further amend-
ed— 
(1) in subsections (a) and (b), by striking ‘‘or 
2015’’ and inserting ‘‘2015, or 2016’’; 
(2) in subsection (c)(3), by striking ‘‘and 2015’’ 
and inserting ‘‘2015, and 2016’’; 
(3) in subsection (d)(4), by striking ‘‘or 2015’’ 
and inserting ‘‘2015, or 2016’’; and 
(4) in subsection (e), by striking ‘‘2015’’ and 
inserting ‘‘2016’’. 
SEC. 864. USE OF LOWEST PRICE, TECHNICALLY ACCEPT-
ABLE EVALUATION METHOD FOR PROCURE-
MENT OF AUDIT OR AUDIT READINESS SERV-
ICES. 
(a) FINDINGS.—Congress finds the following: 
(1) Given the size and scope of the Department 
of Defense, the effort to finish and institutionalize 
auditability is one of the more challenging manage-
ment tasks that has ever faced the Department. 
(2) The acquisition of services by the Depart-
ment abides by many rules and parameters, one of 
which is the lowest price, technically acceptable 
(LPTA) evaluation method.
469 
(3) The Department’s audit effort is extremely 
complicated, requiring personnel and assistance who 
have the financial management and auditor skills 
that a non-independent public accounting firm or a 
non-credentialed firm offering the lowest price may 
not have. 
(4) In order for the Department to meet the 
September 30, 2017, audit readiness statutory dead-
line and the March 31, 2019, audit of fiscal year 
2018 statutory deadline, it is imperative that the 
Department not sacrifice contracts with firms who 
have the proper credentials and expertise to meet 
these deadlines. 
(5) The LPTA evaluation method is appro-
priate for commercial or non-complex services or 
supplies where the requirement is clearly definable 
and the risk of unsuccessful contract performance is 
minimal. However, audit and audit readiness serv-
ices are complex and evolving. 
(b) REQUIREMENTS BEFORE USING LPTA EVALUA-
TION METHOD.—Before using the lowest price, technically 
acceptable evaluation method for the procurement of audit 
or audit readiness services, the Secretary of Defense 
shall—
470 
(1) establish the values and metrics for the 
services being procured, including domain expertise 
and experience, size and scope of offeror’s team, per-
sonnel qualifications and certifications, technology, 
and tools; and 
(2) review each offeror’s past performance re-
quirements. 
SEC. 865. EXCEPTION FOR ABILITYONE PRODUCTS FROM 
AUTHORITY TO ACQUIRE PRODUCTS AND 
SERVICES PRODUCED IN AFGHANISTAN, CEN-
TRAL ASIAN STATES, AND DJIBOUTI. 
(a) EXCEPTION
FOR CERTAIN ITEMS NOT PRO-
DUCED IN AFGHANISTAN.—Section 886 of the National 
Defense Authorization Act for Fiscal Year 2008 (10 
U.S.C. 2302 note) is amended— 
(1) in subsection (a), by inserting ‘‘and except 
as provided in subsection (d),’’ after ‘‘subsection 
(b),’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(d) EXCEPTION FOR ITEMS ON THE ABILITYONE 
PROCUREMENT LIST.—The requirements of this section 
shall not apply to any product that is included in the pro-
curement list described in section 8503(a) of title 41.’’.
471 
(b) EXCEPTION
FOR CERTAIN ITEMS NOT PRO-
DUCED IN CENTRAL ASIAN STATES.—Section 801 of the 
National Defense Authorization Act for Fiscal Year 2010 
(Public Law 111-84; 123 Stat. 2400) is amended— 
(1) in subsection (a), by inserting ‘‘and except 
as provided in subsection (h),’’ after ‘‘subsection 
(b),’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(h) EXCEPTION FOR ITEMS ON THE ABILITYONE 
PROCUREMENT LIST.—The requirements of this section 
shall not apply to any product that is included in the pro-
curement list described in section 8503(a) of title 41.’’. 
(c) EXCEPTION
FOR CERTAIN ITEMS NOT PRO-
DUCED IN DJIBOUTI.—Section 1263 of the Carl Levin and 
Howard P. ‘‘Buck’’ McKeon National Defense Authoriza-
tion Act for Fiscal Year 2015 (Public Law 113-291) is 
amended— 
(1) in subsection (b), by inserting ‘‘and except 
as provided in subsection (g),’’ after ‘‘subsection 
(c),’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(g) EXCEPTION FOR ITEMS ON THE ABILITYONE 
PROCUREMENT LIST.—The requirements of this section
472 
shall not apply to any product that is included in the pro-
curement list described in section 8503(a) of title 41.’’. 
SEC. 866. EFFECTIVE COMMUNICATION BETWEEN GOVERN-
MENT AND INDUSTRY. 
Not later than 180 days after the date of the enact-
ment of this Act, the Federal Acquisition Regulatory 
Council shall prescribe a regulation making clear that 
agency acquisition personnel are permitted and encour-
aged to engage in responsible and constructive exchanges 
with industry, so long as those exchanges are consistent 
with existing law and regulation and do not promote an 
unfair competitive advantage to particular firms. 
SEC. 867. STRENGTHENING PROGRAM AND PROJECT MAN-
AGEMENT PERFORMANCE. 
(a) PLAN
ON
STRENGTHENING
PROGRAM
AND 
PROJECT MANAGEMENT PERFORMANCE.—Not later than 
180 days following the date of the enactment of this Act, 
the Director of the Office of Management and Budget, in 
consultation with the Director of the Office of Personnel 
Management, shall submit to the relevant congressional 
committees a plan for improving management of IT pro-
grams and projects. 
(b) MATTERS COVERED.—The plan required by sub-
section (a) shall include, at a minimum, the following:
473 
(1) Creation of a specialized career path for 
program management. 
(2) The development of a competency model for 
program management consistent with the IT project 
manager model. 
(3) A career advancement model that requires 
appropriate expertise and experience for advance-
ment. 
(4) A career advancement model that is more 
competitive with the private sector and that recog-
nizes both Government and private sector experi-
ence. 
(c) COMBINATION WITH OTHER CADRES PLAN.— 
The Director may combine the plan required by subsection 
(a) with the acquisition human capital plans that were de-
veloped pursuant to the October 27, 2009, guidance issued 
by the Administrator for Federal Procurement Policy in 
furtherance of section 1704(g) of title 41, United States 
Code (originally enacted as section 869 of the Duncan 
Hunter National Defense Authorization Act for Fiscal 
Year 2009 (Public Law 110-417; 122 Stat. 4553)), to ad-
dress how the agencies are meeting their human capital 
requirements to support the timely and effective acquisi-
tion of information technology.
474 
SEC. 868. SYCHRONIZATION OF DEFENSE ACQUISITION 
CURRICULA. 
Section 1746(c) of title 10, United States Code, is 
amended— 
(1) by striking ‘‘The’’ and inserting ‘‘(1) The’’; 
and 
(2) by adding at the end the following: 
‘‘(2) The President of such University shall also 
convene a review board annually with faculty rep-
resentatives from relevant professional schools and 
degree-granting institutions of the Department of 
Defense and military departments, such as the serv-
ice academies, the Naval Postgraduate School, and 
other similar schools and institutions, in order to re-
view and synchronize defense acquisition curricula 
across the entire Department of Defense.’’. 
SEC. 869. RESEARCH AND ANALYSIS OF DEFENSE ACQUISI-
TION POLICY. 
Section 1746(a) of title 10, United States Code, is 
amended by striking paragraph (2) and inserting the fol-
lowing: 
‘‘(2) research and analysis of defense acquisi-
tion policy issues from academic institutions, such as 
the Naval Postgraduate School and other Depart-
ment of Defense schools, that offer in-depth analysis 
of the entire defense acquisition decision support
475 
system from both a business and public policy per-
spective and from an operational and information 
sciences perspective.’’. 
SEC. 870. STANDARDS FOR OROCUREMENT OF SECURE IN-
FORMATION TECHNOLOGY AND CYBER SECU-
RITY SYSTEMS. 
(a) ASSESSMENT REQUIRED.—The Secretary of De-
fense shall conduct an assessment of the application of the 
Open Trusted Technology Provider Standard to Depart-
ment of Defense procurements for information technology 
and cyber security acquisitions and provide a briefing to 
the Committee on Armed Services of the House of Rep-
resentatives not later than one year after the date of the 
enactment of this Act. 
(b) ELEMENTS.—The assessment and briefing re-
quired by subsection (a) shall include the following: 
(1) Assessment of the current Open Trusted 
Technology Provider Standard to determine what as-
pects might be adopted by the Department of De-
fense and where additional development of the 
standard may be required. 
(2) Identification of the types or classes of pro-
grams where the standard might be applied most ef-
fectively, as well as identification of types or classes
476 
of programs that should specifically be excluded 
from consideration. 
(3) Assessment of the impact on current acqui-
sition regulations or policies of the adoption of the 
standard. 
(4) Recommendations the Secretary may have 
related to the adoption of the standard or improve-
ment in the standard to support Department acqui-
sitions. 
(5) Any other matters the Secretary may deem 
appropriate. 
SEC. 871. MODIFICATIONS TO THE JUSTIFICATION AND AP-
PROVAL 
PROCESS 
FOR 
CERTAIN 
SOLE- 
SOURCE CONTRACTS FOR SMALL BUSINESS 
CONCERNS. 
(a) REPEAL OF SIMPLIFIED JUSTIFICATION AND AP-
PROVAL PROCESS.—Section 811 of the National Defense 
Authorization Act for Fiscal Year 2010 (Public Law 111- 
84; 123 Stat. 2405; 41 U.S.C. 3304 note) is repealed. 
(b) REQUIREMENTS FOR JUSTIFICATION AND AP-
PROVAL PROCESS.— 
(1) 
DEFENSE
PROCUREMENTS.—Section 
2304(f)(2)(D)(ii) of title 10, United States Code, is 
amended by inserting ‘‘if such procurement is for
477 
property or services in an amount less than 
$20,000,000’’ before the semicolon at the end. 
(2) 
CIVILIAN
PROCUREMENTS.—Section 
3304(e)(4) of title 41, United States Code, is 
amended— 
(A) in subparagraph (C), by striking ‘‘or’’ 
at the end; 
(B) in subparagraph (D), by striking ‘‘or 
section 8(a) of the Small Business Act (15 
U.S.C. 637(a)).’’ and inserting ‘‘; or’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(E) the procurement is for property or 
services in an amount less than $20,000,000 
and is conducted under section 8(a) of the 
Small Business Act (15 U.S.C. 637(a)).’’. 
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
SEC. 901. REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY 
AND MARINE CORPS. 
(a) REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY AND MARINE 
CORPS.—
478 
(1) REDESIGNATION
OF
MILITARY
DEPART-
MENT.—The military department designated as the 
Department of the Navy is redesignated as the De-
partment of the Navy and Marine Corps. 
(2) 
REDESIGNATION
OF
SECRETARY
AND 
OTHER STATUTORY OFFICES.— 
(A) SECRETARY.—The position of the Sec-
retary of the Navy is redesignated as the Sec-
retary of the Navy and Marine Corps. 
(B) OTHER
STATUTORY
OFFICES.—The 
positions of the Under Secretary of the Navy, 
the four Assistant Secretaries of the Navy, and 
the General Counsel of the Department of the 
Navy are redesignated as the Under Secretary 
of the Navy and Marine Corps, the Assistant 
Secretaries of the Navy and Marine Corps, and 
the General Counsel of the Department of the 
Navy and Marine Corps, respectively. 
(b) CONFORMING
AMENDMENTS
TO
TITLE
10, 
UNITED STATES CODE.— 
(1) 
DEFINITION
OF
‘‘MILITARY
DEPART-
MENT’’.—Paragraph (8) of section 101(a) of title 
10, United States Code, is amended to read as fol-
lows:
479 
‘‘(8) The term ‘military department’ means the 
Department of the Army, the Department of the 
Navy and Marine Corps, and the Department of the 
Air Force.’’. 
(2) ORGANIZATION
OF
DEPARTMENT.—The 
first sentence of section 5011 of such title is amend-
ed to read as follows: ‘‘The Department of the Navy 
and Marine Corps is separately organized under the 
Secretary of the Navy and Marine Corps.’’. 
(3) 
POSITION
OF
SECRETARY.—Section 
5013(a)(1) of such title is amended by striking 
‘‘There is a Secretary of the Navy’’ and inserting 
‘‘There is a Secretary of the Navy and Marine 
Corps’’. 
(4) CHAPTER HEADINGS.— 
(A) The heading of chapter 503 of such 
title is amended to read as follows: 
‘‘CHAPTER 503—DEPARTMENT OF THE 
NAVY AND MARINE CORPS’’. 
(B) The heading of chapter 507 of such 
title is amended to read as follows: 
‘‘CHAPTER 507—COMPOSITION OF THE DE-
PARTMENT OF THE NAVY AND MARINE 
CORPS’’. 
(5) OTHER AMENDMENTS.—
480 
(A) Title 10, United States Code, is 
amended by striking ‘‘Department of the Navy’’ 
and ‘‘Secretary of the Navy’’ each place they 
appear other than as specified in paragraphs 
(1), (2), (3), and (4) (including in section head-
ings, subsection captions, tables of chapters, 
and tables of sections) and inserting ‘‘Depart-
ment of the Navy and Marine Corps’’ and ‘‘Sec-
retary of the Navy and Marine Corps’’, respec-
tively, in each case with the matter inserted to 
be in the same typeface and typestyle as the 
matter stricken. 
(B)(i) 
Sections 
5013(f), 
5014(b)(2), 
5016(a), 5017(2), 5032(a), and 5042(a) of 
such title are amended by striking ‘‘Assistant 
Secretaries of the Navy’’ and inserting ‘‘Assist-
ant Secretaries of the Navy and Marine Corps’’. 
(ii) The heading of section 5016 of such 
title, and the item relating to such section in 
the table of sections at the beginning of chapter 
503 of such title, are each amended by insert-
ing ‘‘and Marine Corps’’ after ‘‘of the Navy’’, 
with the matter inserted in each case to be in 
the same typeface and typestyle as the matter 
amended.
481 
(c) OTHER PROVISIONS OF LAW AND OTHER REF-
ERENCES.— 
(1) TITLE 37, UNITED STATES CODE.—Title 37, 
United States Code, is amended by striking ‘‘De-
partment of the Navy’’ and ‘‘Secretary of the Navy’’ 
each place they appear and inserting ‘‘Department 
of the Navy and Marine Corps’’ and ‘‘Secretary of 
the Navy and Marine Corps’’, respectively. 
(2) OTHER
REFERENCES.—Any reference in 
any law other than in title 10 or title 37, United 
States Code, or in any regulation, document, record, 
or other paper of the United States, to the Depart-
ment of the Navy shall be considered to be a ref-
erence to the Department of the Navy and Marine 
Corps. Any such reference to an office specified in 
subsection (a)(2) shall be considered to be a ref-
erence to that office as redesignated by that section. 
(d) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the first 
day of the first month beginning more than 60 days after 
the date of the enactment of this Act.
482 
SEC. 902. CHANGE OF PERIOD FOR CHAIRMAN OF THE 
JOINT CHIEFS OF STAFF REVIEW OF THE 
UNIFIED COMMAND PLAN. 
Section 161(b)(1) of title 10, United States Code, is 
amended by striking ‘‘two years’’ and inserting ‘‘four 
years’’. 
SEC. 903. UPDATE OF STATUTORY SPECIFICATION OF 
FUNCTIONS OF THE CHAIRMAN OF THE 
JOINT CHIEFS OF STAFF RELATING TO JOINT 
FORCE DEVELOPMENT ACTIVITIES. 
Section 153(a)(5) of title 10, United States Code, is 
amended by adding at the end the following new subpara-
graph: 
‘‘(F) Advising the Secretary on development of 
joint command, control, communications, and cyber 
capability, including integration and interoperability 
of such capability, through requirements, integrated 
architectures, data standards, and assessments.’’. 
SEC. 904. SENSE OF CONGRESS ON THE UNITED STATES 
MARINE CORPS. 
(a) FINDINGS.—Congress finds the following: 
(1) As senior United States statesman Dr. 
Henry Kissinger wrote in testimony submitted to the 
Senate Armed Services Committee on January 29, 
2015, ‘‘The United States has not faced a more di-
483 
verse and complex array of crises since the end of 
the Second World War.’’. 
(2) The rise of non-state forces and near peer 
competitors has introduced destabilizing pressures 
around the globe. 
(3) Advances in information and weapons tech-
nology have reduced the time available for the 
United States to prepare for and respond to crises 
against both known and unknown threats. 
(4) The importance of the maritime domain 
cannot be overstated. As acknowledged in the March 
2015 Navy, Marine Corps, and Coast Guard mari-
time strategy, ‘‘A Cooperative Strategy for 21st 
Century Seapower’’: ‘‘Oceans are the lifeblood of the 
interconnected global community. . . 90 percent of 
trade by volume travels across the oceans. Approxi-
mately 70 percent of the world’s population lives 
within 100 miles of the coastline.’’. 
(5) The United States must be prepared to rap-
idly respond to crises around the world regardless of 
the nation’s fiscal health. 
(6) In this global security environment, it is 
critical that the nation possess a maritime force 
whose mission and ethos is readiness—a fight to-
night force, forward deployed, that can respond im-
484 
mediately to emergent crises across the full range of 
military operations around the globe either from the 
sea or home station. 
(7) The need for such a force was recognized by 
the 82nd Congress after the major wars of the twen-
tieth century, when it mandated a core mission for 
the nation’s leanest force—the Marine Corps—to be 
most ready when the nation is least ready. 
(b) SENSE OF CONGRESS.— 
(1) It is the sense of Congress that— 
(A) the Marine Corps, within the Depart-
ment of the Navy, remain the Nation’s expedi-
tionary, crisis response force; 
(B) the need for such a force with such a 
capability has never been greater; and 
(C) accordingly, in recognition of this need 
and the wisdom of the 82nd Congress, the 
114th Congress reaffirms section 5063 of title 
10, United States Code, uniquely charging the 
United States Marine Corps with this responsi-
bility. 
(2) It is further the sense of Congress that the 
Marine Corps— 
(A) shall—
485 
(i) be organized to include not less 
than three combat divisions and three air 
wings, and such other land combat, avia-
tion, and other services as may be organic 
therein; 
(ii) 
be 
organized, 
trained, 
and 
equipped to provide fleet marine forces of 
combined arms, together with supporting 
air components, for service with the fleet 
in the seizure or defense of advanced naval 
bases and for the conduct of such land op-
erations as may be essential to the pros-
ecution of a naval campaign; and 
(iii) provide detachments and organi-
zations for service on armed vessels of the 
Navy, shall provide security detachments 
for the protection of naval property at 
naval stations and bases, and shall perform 
such other duties as the President may di-
rect; 
but these additional duties may not detract 
from nor interfere with the operations for which 
the Marine Corps is primarily organized; 
(B) shall develop, in coordination with the 
Army and the Air Force, those phases of am-
486 
phibious operations that pertain to the tactics, 
techniques, and equipment used by landing 
forces; and 
(C) is responsible, in accordance with the 
integrated joint mobilization plans, for the ex-
pansion of peacetime components of the Marine 
Corps to meet the needs of war. 
SEC. 905. ADDITIONAL REQUIREMENTS FOR STREAM-
LINING OF DEPARTMENT OF DEFENSE MAN-
AGEMENT HEADQUARTERS. 
(a) FINDINGS.— 
(1) On July 31, 2013, the then Secretary of 
Defense stated that the Department would ‘‘reduc[e] 
the Department’s major headquarters budgets by 20 
percent. . .Although the 20 percent cut applies to 
budget dollars, organizations will strive for a goal of 
20 percent reductions in government civilians and 
military personnel.’’ The then Secretary further stat-
ed that ‘‘these management reforms. . .will reduce 
the Department’s overhead and operating costs 
by...$10 billion over the next five years.’’. 
(2) Furthermore, the President’s budget re-
quest for the Department of Defense for fiscal year 
2015 stated that reductions to management head-
quarters staff and consolidation of duplicative efforts
487 
across the Department would result in a savings of 
$5.3 billion over 5 years—through fiscal year 2019. 
However, as noted by the Government Account-
ability Office in a January 2015 report (GAO–15– 
10), the Department accounted for $5.3 billion as 
efficiency savings in its budget request, but has not 
provided specific details on the reductions to man-
agement headquarters’ staff it plans to make. 
(3) In June 2014, the Government Account-
ability Office found (in GAO–14–439) that the De-
partment did not have an accurate accounting of the 
resources being devoted to management head-
quarters to use as a starting point for tracking re-
ductions to such headquarters. In April 2015, the 
Government Accountability Office reported (in 
GAO–15–404SP) that focusing reductions on man-
agement headquarters budgets and personnel, which 
tend to be inconsistently defined and often represent 
a small portion of the overall headquarters, shields 
much of the resources identified for potential reduc-
tion. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) the Secretary of Defense’s commitment in 
July 2013 to a goal of a 20 percent reduction in
488 
headquarters budgets and personnel and a goal of 
$10 billion in cost savings over five years is worth-
while and should be fully implemented; 
(2) without a clear baseline for management 
headquarters, it is difficult to demonstrate and track 
progress achieving actual savings; 
(3) any reduction in personnel should not be 
implemented as an across-the-board cut, but rather 
should be strategically designed to retain critical 
functions, capabilities, and skill sets—including but 
not limited to depots and the acquisition work-
force—and eliminate unnecessary or redundant 
functions or skill sets that do not benefit or support 
mission requirements; 
(4) functions should be performed at the lowest 
appropriate organizational level and those organiza-
tions should be empowered and held accountable; 
(5) duplicative functions at higher level organi-
zations should be eliminated; and 
(6) the movement of a function from a manage-
ment headquarters to a different Department of De-
fense organization or a lower level organization does 
not result in an efficiency, since the same budget is 
still required to perform that function.
489 
(c) REQUIREMENT TO IMPLEMENT 20 PERCENT RE-
DUCTION
IN
MANAGEMENT
HEADQUARTERS
FUNC-
TIONS.—Section 904 of the National Defense Authoriza-
tion Act for Fiscal Year 2014 (Public Law 113–66; 10 
U.S.C. 111 note) is amended by adding at the end the 
following new subsection: 
‘‘(e) IMPLEMENTATION
OF MANAGEMENT HEAD-
QUARTERS REDUCTION.—The Secretary of Defense shall 
implement the 20 percent reduction directed by the Sec-
retary in July 2013 in management headquarters budget 
and personnel by September 30, 2019, for the covered or-
ganizations in the National Capital Region (as defined in 
section 2674(f) of title 10, United States Code). Such re-
ductions shall be strategically designed to retain critical 
functions, capabilities, and skill sets. Management, func-
tions, programs, or offices shall be moved to the lowest 
appropriate organizational level. In any report issued pur-
suant to subsection (d), the Secretary may not claim a 
cost savings solely based on moving management, func-
tions, programs, or offices from one organization to an-
other.’’. 
(d) LIMITATION ON WORKING-CAPITAL FUND POSI-
TIONS.—Section 904 of the National Defense Authoriza-
tion Act for Fiscal Year 2014 (Public Law 113–66; 10
490 
U.S.C. 111 note) is further amended by adding at the end 
the following new subsection: 
‘‘(f) LIMITATION ON WORKING-CAPITAL FUND POSI-
TIONS.—In implementing the 20 percent reduction re-
ferred to in subsection (e), the Secretary of Defense may 
not reduce the number of Department of Defense civilian 
employees whose salaries are funded from working-capital 
funds except in accordance with section 2472 of title 10, 
United States Code.’’. 
(e) CHANGE IN DEADLINE FOR REQUIRED PLAN.— 
Section 904(a) of the such Act is amended by striking 
‘‘180 days after the date of the enactment of this Act’’ 
and inserting ‘‘March 31, 2016’’. 
(f) ADDITIONAL
ELEMENTS
OF
PLAN.—Section 
904(b) of such Act is amended— 
(1) by redesignating paragraphs (1), (2), and 
(3) as paragraphs (2), (3), and (4), respectively; 
(2) by inserting before paragraph (2), as so re-
designated, the following new paragraph (1): 
‘‘(1) An accurate baseline accounting of defense 
headquarters budgets and personnel as of fiscal year 
2014, including what is and is not included as part 
of management headquarters accounting, and a de-
tailed description of the number of personnel, budg-
ets, functions, capabilities, and skill sets.’’;
491 
(3) in paragraph (2), as so redesignated— 
(A) by inserting ‘‘actual and’’ before 
‘‘planned changes’’; 
(B) by striking ‘‘staffing’’ and inserting 
‘‘personnel’’; and 
(C) by inserting before the period at the 
end the following: ‘‘, set forth separately by fis-
cal year, from fiscal year 2014 through fiscal 
year 2019’’; 
(4) in paragraph (3), as so redesignated— 
(A) by striking ‘‘description of the planned 
changes’’ and inserting ‘‘detailed description of 
the actual and planned changes’’; and 
(B) by inserting before the period at the 
end the following: ‘‘, set forth separately by fis-
cal year, from fiscal year 2014 through fiscal 
year 2019’’; and 
(5) in paragraph (4), as so redesignated, by 
striking ‘‘fiscal year 2015, and estimated savings to 
be achieved for each of fiscal years 2015 through 
2024’’ and inserting ‘‘fiscal year 2014, and esti-
mated savings to be achieved, along with associated 
changes or reductions in budget, for each of fiscal 
years 2014 through 2024’’.
492 
(g) ADDITIONAL REPORT REQUIREMENTS.—Section 
904(d) of such Act is amended— 
(1) in paragraph (1), by striking ‘‘180 days 
after the date of the enactment of this Act’’ and in-
serting ‘‘March 31, 2016’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (C), by striking ‘‘in-
cluding’’ and all that follows through the end of 
the subparagraph and inserting the following: 
‘‘and specific detailed information on how the 
changes, consolidations, or reductions were 
prioritized and resulted in functions no longer 
being performed, in the fiscal year covered by 
such report.’’; 
(B) in subparagraph (F), by striking ‘‘, in-
cluding’’ and all that follows through ‘‘manage-
ment review’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(H) A separate description of— 
‘‘(i) the management functions, pro-
grams, or offices that were eliminated and 
how each represents a redundant manage-
ment or oversight function; and
493 
‘‘(ii) the management, functions, pro-
grams, or offices that were moved, and 
how moving each will result in efficiency.’’. 
SEC. 906. SENSE OF CONGRESS ON PERFORMANCE MAN-
AGEMENT AND WORKFORCE INCENTIVE SYS-
TEM. 
(a) FINDINGS.—Congress finds the following: 
(1) Section 1113 of the National Defense Au-
thorization Act for Fiscal Year 2010 (Public Law 
111–84) required the Department of Defense to in-
stitute a fair, credible, and transparent performance 
appraisal system, given the name ‘‘New Begin-
nings,’’ for employees, which— 
(A) links employee bonuses and other per-
formance-based action to employee performance 
appraisals; 
(B) ensures ongoing performance feedback 
and dialogue among supervisors, managers, and 
employees throughout the appraisal period, with 
timetables for review; and 
(C) develops performance assistance plans 
to give employees formal training, on-the-job 
training, counseling, mentoring, and other as-
sistance.
494 
(2) The military components and defense agen-
cies of the Department of Defense are currently re-
viewing the proposed ‘‘New Beginnings’’ perform-
ance management and workforce incentive system 
developed in response to section 1113 of Public Law 
111–84. 
(3) The Department of Defense anticipates it 
will begin implementation of the ‘‘New Beginnings’’ 
performance management and workforce incentive 
system in April 2016. 
(4) The authority provided in section 1113 of 
Public Law 111–84 provided the Secretary of De-
fense, in coordination with the Director of the Office 
of Personnel Management, flexibilities in promul-
gating regulations to redesign the procedures which 
are applied by the Department of Defense in making 
appointments to positions within the competitive 
service in order to— 
(A) better meet mission needs; 
(B) respond to managers’ needs and the 
needs of applicants; 
(C) produce high-quality applicants; 
(D) support timely decisions; 
(E) uphold appointments based on merit 
system principles; and
495 
(F) promote competitive job offers. 
(5) In implementing the ‘‘New Beginnings’’ 
performance management and workforce incentive 
system, section 113 of Public Law 111–84 requires 
the Secretary of Defense to comply with veterans’ 
preference requirements. 
(6) Among the criteria for the new performance 
management and workforce incentive system author-
ized under section 1113 of Public Law 111–84, the 
Secretary of Defense is required to— 
(A) adhere to merit principles; 
(B) include a means for ensuring employee 
involvement (for bargaining unit employees, 
through their exclusive representatives) in the 
design and implementation of the performance 
management and workforce incentive system; 
(C) provide for adequate training and re-
training for supervisors, managers, and employ-
ees in the implementation and operation of the 
performance management and workforce incen-
tive system; 
(D) develop a comprehensive management 
succession program to provide training to em-
ployees to develop managers for the agency and 
a program to provide training to supervisors on
496 
actions, options, and strategies a supervisor 
may use in administering the performance man-
agement and workforce incentive system; 
(E) include effective transparency and ac-
countability measures and safeguards to ensure 
that the management of the performance man-
agement and workforce incentive system is fair, 
credible, and equitable, including appropriate 
independent reasonableness reviews, internal as-
sessments, and employee surveys; 
(F) use the annual strategic workforce 
plan required by section 115b of title 10; and 
(G) ensure that adequate agency resources 
are allocated for the design, implementation, 
and administration of the performance manage-
ment and workforce incentive system. 
(7) Section 1113 of Public Law 111–84 also re-
quires the Secretary of Defense to develop a pro-
gram of training—to be completed by a supervisor 
every three years—on the actions, options, and 
strategies a supervisor may use in— 
(A) developing and discussing relevant 
goals and objectives with the employee, commu-
nicating and discussing progress relative to per-
497 
formance goals and objectives, and conducting 
performance appraisals; 
(B) mentoring and motivating employees, 
and improving employee performance and pro-
ductivity; 
(C) fostering a work environment charac-
terized by fairness, respect, equal opportunity, 
and attention to the quality of the work of em-
ployees; 
(D) effectively managing employees with 
unacceptable performance; 
(E) addressing reports of a hostile work 
environment, reprisal, or harassment of or by 
another supervisor or employee; and 
(F) allowing experienced supervisors to 
mentor new supervisors by sharing knowledge 
and advice in areas such as communication, 
critical thinking, responsibility, flexibility, moti-
vating employees, teamwork, leadership, and 
professional development, and pointing out 
strengths and areas of development. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Secretary of Defense should proceed with 
the collaborative work with employee representatives on 
the ‘‘New Beginnings’’ performance management and
498 
workforce incentive system and begin implementation of 
the new system at the earliest possible date. 
SEC. 907. GUIDELINES FOR CONVERSION OF FUNCTIONS 
PERFORMED BY CIVILIAN OR CONTRACTOR 
PERSONNEL TO PERFORMANCE BY MILITARY 
PERSONNEL. 
Section 129a of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(g) GUIDELINES FOR PERFORMANCE OF CERTAIN 
FUNCTIONS BY MILITARY PERSONNEL.—(1) Except as 
provided in paragraph (2), no functions performed by ci-
vilian personnel or contractors may be converted to per-
formance by military personnel unless— 
‘‘(A) there is a direct link between the functions 
to be performed and a military occupational spe-
cialty; and 
‘‘(B) the conversion to performance by military 
personnel is cost effective, based on Department of 
Defense instruction 7041.04 (or any successor ad-
ministrative regulation, directive, or policy). 
‘‘(2) Paragraph (1) shall not apply to the following 
functions: 
‘‘(A) Functions required by law or regulation to 
be performed by military personnel.
499 
‘‘(B) Functions related to— 
‘‘(i) missions involving operation risks and 
combatant status under the Law of War; 
‘‘(ii) specialized collective and individual 
training requiring military-unique knowledge 
and skills based on recent operational experi-
ence; 
‘‘(iii) independent advice to senior civilian 
leadership in the Department of Defense requir-
ing military-unique knowledge and skills based 
on recent operational experience; and 
‘‘(iv) command and control arrangements 
under chapter 47 of this title (the Uniform 
Code of Military Justice).’’. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
SEC. 1001. GENERAL TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.— 
(1) AUTHORITY.—Upon determination by the 
Secretary of Defense that such action is necessary in 
the national interest, the Secretary may transfer 
amounts of authorizations made available to the De-
partment of Defense in this division for fiscal year 
2016 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of au-
500 
thorizations so transferred shall be merged with and 
be available for the same purposes as the authoriza-
tion to which transferred. 
(2) LIMITATION.—Except as provided in para-
graph (3), the total amount of authorizations that 
the Secretary may transfer under the authority of 
this section may not exceed $5,000,000,000. 
(3) EXCEPTION
FOR
TRANSFERS
BETWEEN 
MILITARY PERSONNEL AUTHORIZATIONS.—A trans-
fer of funds between military personnel authoriza-
tions under title IV shall not be counted toward the 
dollar limitation in paragraph (2). 
(b) LIMITATIONS.—The authority provided by sub-
section (a) to transfer authorizations— 
(1) may only be used to provide authority for 
items that have a higher priority than the items 
from which authority is transferred; and 
(2) may not be used to provide authority for an 
item that has been denied authorization by Con-
gress. 
(c) EFFECT
ON
AUTHORIZATION
AMOUNTS.—A 
transfer made from one account to another under the au-
thority of this section shall be deemed to increase the 
amount authorized for the account to which the amount
501 
is transferred by an amount equal to the amount trans-
ferred. 
(d) NOTICE
TO CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under 
subsection (a). 
SEC. 1002. AUTHORITY TO TRANSFER FUNDS TO THE NA-
TIONAL NUCLEAR SECURITY ADMINISTRA-
TION TO SUSTAIN NUCLEAR WEAPONS MOD-
ERNIZATION AND NAVAL REACTORS. 
(a) TRANSFER AUTHORIZED.—If the amount author-
ized to be appropriated for the weapons activities of the 
National Nuclear Security Administration under section 
3101 or otherwise made available for fiscal year 2016 is 
less than $8,900,000,000 (the amount projected to be re-
quired for such activities in fiscal year 2016 as specified 
in the report under section 1251 of the National Defense 
Authorization Act for Fiscal Year 2010 (Public Law 111– 
84; 123 Stat. 2549)), the Secretary of Defense may trans-
fer, from amounts authorized to be appropriated for the 
Department of Defense for fiscal year 2016 pursuant to 
this Act, to the Secretary of Energy an amount, not to 
exceed $150,000,000, to be available only for naval reac-
tors or weapons activities of the National Nuclear Security 
Administration.
502 
(b) NOTICE TO CONGRESS.—In the event of a trans-
fer under subsection (a), the Secretary of Defense shall 
promptly notify Congress of the transfer, and shall include 
in such notice the Department of Defense account or ac-
counts from which funds are transferred. 
(c) TRANSFER MECHANISM.—Any funds transferred 
under this section shall be transferred in accordance with 
established procedures for reprogramming under section 
1001 or successor provisions of law. 
(d) CONSTRUCTION OF AUTHORITY.—The transfer 
authority provided under subsection (a) is in addition to 
any other transfer authority provided under this Act. 
SEC. 1003. ACCOUNTING STANDARDS TO VALUE CERTAIN 
PROPERTY, PLANT, AND EQUIPMENT ITEMS. 
(a) REQUIREMENT
FOR
CERTAIN
ACCOUNTING 
STANDARDS.—The Secretary of Defense shall work in co-
ordination with the Federal Accounting Standards Advi-
sory Board to establish accounting standards to value 
large and unordinary general property, plant, and equip-
ment items. 
(b) DEADLINE.—The accounting standards required 
by subsection (a) shall be established by not later than 
September 30, 2017, and be available for use for the full 
audit on the financial statements of the Department of 
Defense for fiscal year 2018, as required by section
503 
1003(a) of the National Defense Authorization Act for 
Fiscal Year 2014 (Public Law 113–66; 127 Stat. 842; 10 
U.S.C. 2222 note). 
SEC. 1004. REPORT ON AUDITABLE FINANCIAL STATE-
MENTS. 
Not later than 30 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report ranking 
all military departments and Defense Agencies in order 
of how advanced they are in achieving auditable financial 
statements as required by law. The report should not in-
clude information otherwise available in other reports to 
Congress. 
Subtitle B—Counter-Drug 
Activities 
SEC. 1011. EXTENSION OF AUTHORITY TO PROVIDE ADDI-
TIONAL SUPPORT FOR COUNTER-DRUG AC-
TIVITIES OF CERTAIN FOREIGN GOVERN-
MENTS. 
(a) EXTENSION.—Subsection (a)(2) of section 1033 
of the National Defense Authorization Act for Fiscal Year 
1998 (Public Law 105–85; 111 Stat. 1881), as most re-
cently amended by section 1013 of the National Defense 
Authorization Act for Fiscal Year 2014 (Public Law 113–
504 
66; 127 Stat. 844), is further amended by striking ‘‘2016’’ 
and inserting ‘‘2017’’. 
(b) MAXIMUM AMOUNT OF SUPPORT.—Subsection 
(e)(2) of such section 1033, as so amended, is further 
amended by striking ‘‘2016’’ and inserting ‘‘2017’’. 
SEC. 1012. STATEMENT OF POLICY ON PLAN CENTRAL 
AMERICA. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) The stability and security of Central Amer-
ican nations have a direct impact on the stability 
and security of the United States. 
(2) Over the past decade, stability and in-
creased security in the Republic of Colombia has 
pushed illicit trafficking to Central America bringing 
increased violence and instability. 
(3) Much of Central America has seen spikes in 
violence and homicides. In fiscal year 2013, the 
United Nations Office on Drugs and Crime released 
its Global Study on Homicide 2013. Four of the top 
five countries with the highest homicide rates in the 
world were Central American nations including Hon-
duras, Belize, El Salvador, and Guatemala. 
(4) In calendar year 2014, approximately 
65,000 unaccompanied alien children from Central
505 
America entered the United States through its 
southwest border. This number of such children who 
enter the United States during calendar year 2015 
is expected to be approximately the same. 
(5) The southwest border of the United States 
continues to be porous to illicit trafficking of nar-
cotics, weapons, cash, and people. 
(6) In November 2014, Guatemala, Honduras, 
and El Salvador announced a Plan for the Alliance 
for Prosperity of the Northern Triangle. This plan 
is a comprehensive approach to address the ongoing 
violence and instability facing these three nations by 
stimulating economic opportunities, improving public 
safety and rule of law, and strengthening institu-
tions to increase trust in the state. 
(7) The United States Government has stated 
its support for the Alliance for Prosperity and in-
cluded in the President’s fiscal year 2016 budget re-
quest $1,000,000,000 in Department of State funds, 
to support the strategy for United States engage-
ment in Central America. According to the strategy, 
this funding will be focused on promoting prosperity 
and regional economic integration, enhancing secu-
rity, and promoting improved governance.
506 
(8) None of the President’s $1,000,000,000 
budget request for the strategy for United States en-
gagement in Central America includes any funding 
for Department of Defense programs in the region. 
(9) The Department of Defense provides train-
ing, equipment, education, and interdiction efforts to 
address security challenges in Central America 
through detection and monitoring of illicit traf-
ficking, assistance in illicit trafficking interdictions, 
and building partnership capacities. 
(10) The Department of Defense through its 
roles and missions, is executing a plan to address se-
curity challenges in Central America in conjunction 
with the United States Strategy for Engagement in 
Central America. 
(b) POLICY.—It shall be the policy of the United 
States to prioritize a Plan Central America to address the 
threatening levels of violence, instability, illicit trafficking, 
and transnational organized crime that challenge the sov-
ereignty of Central American nations and security of the 
United States. In order to address such issues, the De-
partment of Defense shall— 
(1) increase the efforts of the Department of 
Defense as the lead agency to detect and monitor
507 
the aerial and maritime illicit trafficking into the 
United States; 
(2) increase the efforts of the Department of 
Defense to support aerial and maritime illicit traf-
ficking interdiction efforts; 
(3) increase the efforts of the Department of 
Defense to build partnership capacity with partner 
nations in Central America to confront security chal-
lenges through increased training opportunities, edu-
cation, and exercises; 
(4) enforce human rights requirements con-
sistent with section 2249e of title 10, United States 
Code, and increase the training and education re-
garding human rights provided in Central American 
nations; and 
(5) support interagency efforts in Central 
America addressing all levels of instability including 
development, education, economic, political, and se-
curity challenges. 
Subtitle C—Naval Vessels and 
Shipyards 
SEC. 1021. RESTRICTIONS ON THE OVERHAUL AND REPAIR 
OF VESSELS IN FOREIGN SHIPYARDS. 
(a) IN GENERAL.—Section 7310(b)(1) of title 10, 
United States Code, is amended—
508 
(1) by striking ‘‘In the case’’ and inserting ‘‘(A) 
Except as provided in subparagraph (B), in the 
case’’; 
(2) by striking ‘‘during the 15-month’’ and all 
that follows through ‘‘United States)’’; 
(3) by inserting before the period at the end the 
following: ‘‘, other than in the case of voyage re-
pairs’’; and 
(4) by adding at the end the following new sub-
paragraph: 
‘‘(B) The Secretary of the Navy may waive the appli-
cation of subparagraph (A) to a contract award if the Sec-
retary determines that the waiver is essential to the na-
tional security interests of the United States.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on the later of the following 
dates: 
(1) The date of the enactment of the National 
Defense Authorization Act for Fiscal Year 2017. 
(2) October 1, 2016. 
SEC. 1022. EXTENSION OF AUTHORITY FOR REIMBURSE-
MENT OF EXPENSES FOR CERTAIN NAVY 
MESS OPERATIONS AFLOAT. 
(a) EXTENSION.—Subsection (b) of section 1014 of 
the Duncan Hunter National Defense Authorization Act
509 
for Fiscal Year 2009 (Public Law 110–417; 122 Stat. 
4585), as amended by section 1021 of the Ike Skelton Na-
tional Defense Authorization Act for Fiscal Year 2011 
(Public Law 111–383, 124 Stat. 4348), is amended by 
striking ‘‘September 30, 2015’’ and inserting ‘‘September 
30, 2020’’. 
(b) TECHNICAL AND CLARIFYING AMENDMENTS.— 
Subsection (a) of such section is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘not more that’’ and inserting ‘‘not more 
than’’; and 
(2) in paragraph (2), by striking ‘‘Naval ves-
sels’’ and inserting ‘‘such vessels’’. 
SEC. 1023. AVAILABILITY OF FUNDS FOR RETIREMENT OR 
INACTIVATION 
OF 
TICONDEROGA 
CLASS 
CRUISERS OR DOCK LANDING SHIPS. 
(a) LIMITATION ON THE AVAILABILITY OF FUNDS.— 
Except as otherwise provided in this section, none of the 
funds authorized to be appropriated by this Act or other-
wise made available for the Department of Defense for 
fiscal year 2016 may be obligated or expended to retire, 
prepare to retire, inactivate, or place in storage a cruiser 
or dock landing ship. 
(b) CRUISER MODERNIZATION.—
510 
(1) IN GENERAL.—As provided by section 1026 
of the National Defense Authorization Act for Fiscal 
Year 2015 (Public Law 113–291; 128 Stat. 3490), 
the Secretary of the Navy shall begin the moderniza-
tion of two cruisers during fiscal year 2016 only 
after the receipt of the materiel required to begin 
such modernization. Such modernization shall in-
clude— 
(A) hull, mechanical, and electrical up-
grades; and 
(B) combat systems modernizations. 
(2) DURATION.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the time period for such 
modernization shall not exceed two years. 
(B) EXTENSION.—If the Secretary of the 
Navy determines that the scope of the mod-
ernization cannot be reasonably completed in 
two years, the Secretary may extend the time 
period under subparagraph (A) for an addi-
tional six months. If the Secretary issues such 
an extension, the Secretary shall submit to the 
congressional defense committees notice of the 
extension and the reasons the Secretary made 
such determination.
511 
(3) DELAY.—The Secretary of the Navy may 
delay the modernization required under paragraph 
(1) if the materiel required to begin the moderniza-
tion has not been received. 
SEC. 1024. LIMITATION ON THE USE OF FUNDS FOR RE-
MOVAL OF BALLISTIC MISSILE DEFENSE CA-
PABILITIES 
FROM 
TICONDEROGA 
CLASS 
CRUISERS. 
None of the funds authorized to be appropriated by 
this Act or otherwise made available for the Department 
of Defense may be used to remove ballistic missile defense 
capabilities from any of the 5 Ticonderoga class cruisers 
equipped with such capabilities until the Secretary of the 
Navy certifies to the congressional defense committees 
that the Navy has— 
(1) obtained the ballistic missile capabilities re-
quired by the most recent Navy Force Structure As-
sessment; or 
(2) determined to upgrade such cruisers with 
an equal or improved ballistic missile defense capa-
bility.
512 
Subtitle D—Counterterrorism 
SEC. 1031. PERMANENT AUTHORITY TO PROVIDE REWARDS 
THROUGH GOVERNMENT PERSONNEL OF AL-
LIED FORCES AND CERTAIN OTHER MODI-
FICATIONS TO DEPARTMENT OF DEFENSE 
PROGRAM TO PROVIDE REWARDS. 
(a) IN GENERAL.—Section 127b(c)(3) of title 10, 
United States Code, is amended— 
(1) in subparagraph (A), by striking ‘‘subpara-
graphs (B) and (C)’’ and inserting ‘‘subparagraph 
(B)’’; and 
(2) by striking subparagraphs (C) and (D). 
(b) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The section heading 
for section 127b of title 10, United States Code, is 
amended to read as follows: 
‘‘§ 127b. Department of Defense rewards program’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 3 of such title is amend-
ed by striking the item relating to section 127b and 
inserting the following new item: 
‘‘127b. Department of Defense rewards program.’’.
513 
SEC. 1032. CONGRESSIONAL NOTIFICATION OF SENSITIVE 
MILITARY OPERATIONS. 
Section 130f of title 10, United States Code, is 
amended— 
(1) by striking subsection (e); and 
(2) by redesignating subsection (f) as sub-
section (e). 
SEC. 1033. REPEAL OF SEMIANNUAL REPORTS ON OBLIGA-
TION AND EXPENDITURE OF FUNDS FOR 
COMBATING TERRORISM PROGRAM. 
Section 229 of title 10, United States Code, is 
amended— 
(1) by striking subsection (d); and 
(2) by redesignating subsection (e) as sub-
section (d). 
SEC. 1034. REPORTS TO CONGRESS ON CONTACT BETWEEN 
TERRORISTS AND INDIVIDUALS FORMERLY 
DETAINED AT UNITED STATES NAVAL STA-
TION, GUANTANAMO BAY, CUBA. 
(a) Section 319(c) of the Supplemental Appropria-
tions Act, 2009 (Public Law 111–32; 123 Stat. 1874; 10 
U.S.C. 801 note) is amended by inserting after paragraph 
(5) the following new paragraphs: 
‘‘(6) A summary of all contact by any means of 
communication, including telecommunications, elec-
tronic or technical means, in person, written commu-
514 
nications, or any other means of communication, re-
gardless of content, between any individual formerly 
detained at Naval Station, Guantanamo Bay, Cuba, 
and any individual known or suspected to be associ-
ated with a foreign terrorist group. 
‘‘(7) A description of whether any of the con-
tact described in the summary required by para-
graph (6) included any information or discussion 
about hostilities against the United States or its al-
lies or partners.’’. 
(b) RULE OF CONSTRUCTION.—Nothing in this sec-
tion or the amendments made by this section shall be con-
strued to terminate, alter, modify, override, or otherwise 
affect any reporting of information required under section 
319(c) of the Supplemental Appropriations Act, 2009 
(Public Law 111–32; 123 Stat. 1874; 10 U.S.C. 801 note) 
prior to the enactment of this section. 
SEC. 1035. INCLUSION IN REPORTS TO CONGRESS INFOR-
MATION ABOUT RECIDIVISM OF INDIVIDUALS 
FORMERLY DETAINED AT UNITED STATES 
NAVAL STATION, GUANTANAMO BAY, CUBA. 
Section 319(c) of the Supplemental Appropriations 
Act, 2009 (Public Law 111–32; 123 Stat. 1874; 10 U.S.C. 
801 note), as amended by section 1034, is further amend-
515 
ed by inserting after paragraph (7), as added by such sec-
tion, the following new paragraphs: 
‘‘(8) For each individual described in paragraph 
(4), the period of time between the date on which 
the individual was released or transferred from 
Naval Station, Guantanamo Bay, Cuba, and the 
date on which it is confirmed that the individual is 
suspected or confirmed of reengaging in terrorist ac-
tivities. 
‘‘(9) The average period of time described in 
paragraph (8) for all the individuals described in 
paragraph (4).’’. 
SEC. 1036. PROHIBITION ON THE USE OF FUNDS FOR THE 
TRANSFER OR RELEASE OF INDIVIDUALS DE-
TAINED AT UNITED STATES NAVAL STATION, 
GUANTANAMO BAY, CUBA. 
No amounts authorized to be appropriated or other-
wise made available to any department or agency of the 
United States Government may be used during the period 
beginning on the date of the enactment of this Act and 
ending on the date that is two years after the date of the 
enactment of this Act to transfer, release, or assist in the 
transfer or release to or within the United States, its terri-
tories, or possessions of Khalid Sheikh Mohammed or any 
other detainee who—
516 
(1) is not a United States citizen or a member 
of the Armed Forces of the United States; and 
(2) is or was held on or after January 20, 
2009, at United States Naval Station, Guantanamo 
Bay, Cuba, by the Department of Defense. 
SEC. 1037. PROHIBITION ON USE OF FUNDS TO CONSTRUCT 
OR MODIFY FACILITIES IN THE UNITED 
STATES 
TO 
HOUSE 
DETAINEES 
TRANS-
FERRED FROM UNITED STATES NAVAL STA-
TION, GUANTANAMO BAY, CUBA. 
(a) IN GENERAL.—No amounts authorized to be ap-
propriated or otherwise made available to any department 
or agency of the United States Government may be used 
during the period beginning on the date of the enactment 
of this Act and ending on the date that is two years after 
the date of the enactment of this Act to construct or mod-
ify any facility in the United States, its territories, or pos-
sessions to house any individual detained at Guantanamo 
for the purposes of detention or imprisonment in the cus-
tody or under the control of the Department of Defense. 
(b) EXCEPTION.—The prohibition in subsection (a) 
shall not apply to any modification of facilities at United 
States Naval Station, Guantanamo Bay, Cuba. 
(c) INDIVIDUAL DETAINED AT GUANTANAMO DE-
FINED.—In this section, the term ‘‘individual detained at
517 
Guantanamo’’ has the meaning given that term in section 
1039(f)(2). 
SEC. 1038. PROHIBITION ON USE OF FUNDS TO TRANSFER 
OR RELEASE INDIVIDUALS DETAINED AT 
UNITED STATES NAVAL STATION, GUANTA-
NAMO BAY, CUBA, TO COMBAT ZONES. 
(a) IN GENERAL.—No amounts authorized to be ap-
propriated or otherwise made available for the Depart-
ment of Defense may be used, during the period beginning 
on the date of the enactment of this Act and ending on 
December 31, 2016, to transfer, release, or assist in the 
transfer or release of any individual detained in the cus-
tody or under the control of the Department of Defense 
at United States Naval Station, Guantanamo Bay, Cuba, 
to a combat zone. 
(b) COMBAT ZONE DEFINED.—In this section, the 
term ‘‘combat zone’’ means any area designated as a com-
bat zone for purposes of section 112 of the Internal Rev-
enue Code of 1986 (26 U.S.C. 112) for which the income 
of a member of the Armed Forces was excluded during 
2014, 2015, or 2016 by reason of the member’s service 
on active duty in such area.
518 
SEC. 1039. REQUIREMENTS FOR CERTIFICATIONS RELAT-
ING TO THE TRANSFER OF DETAINEES AT 
UNITED STATES NAVAL STATION, GUANTA-
NAMO BAY, CUBA, TO FOREIGN COUNTRIES 
AND OTHER FOREIGN ENTITIES. 
(a) CERTIFICATION REQUIRED PRIOR
TO TRANS-
FER.— 
(1) IN GENERAL.—Except as provided in para-
graph (2) and subsection (d), the Secretary of De-
fense may not use any amounts authorized to be ap-
propriated or otherwise available to the Department 
of Defense during the period beginning on the date 
of the enactment of this Act and ending on Decem-
ber 31, 2016, to transfer any individual detained at 
Guantanamo to the custody or control of the individ-
ual’s country of origin, any other foreign country, or 
any other foreign entity unless the Secretary sub-
mits to Congress the certification described in sub-
section (b) not later than 30 days before the trans-
fer of the individual. 
(2) EXCEPTION.—Paragraph (1) shall not 
apply to any action taken by the Secretary to trans-
fer any individual detained at Guantanamo to effec-
tuate an order affecting the disposition of the indi-
vidual that is issued by a court or competent tri-
bunal of the United States having lawful jurisdiction
519 
(which the Secretary shall notify Congress of 
promptly after issuance). 
(b) CERTIFICATION.—A certification described in this 
subsection is a written certification made by the Secretary 
of Defense that— 
(1) the government of the foreign country or 
the recognized leadership of the foreign entity to 
which the individual detained at Guantanamo is to 
be transferred— 
(A) is not a designated state sponsor of 
terrorism or a designated foreign terrorist orga-
nization; 
(B) maintains control over each detention 
facility in which the individual is to be detained 
if the individual is to be housed in a detention 
facility; 
(C) is not, as of the date of the certifi-
cation, facing a threat that is likely to substan-
tially affect its ability to exercise control over 
the individual; 
(D) has taken or agreed to take effective 
actions to ensure that the individual cannot 
take action to threaten the United States, its 
citizens, or its allies in the future;
520 
(E) has taken or agreed to take such ac-
tions as the Secretary of Defense determines 
are necessary to ensure that the individual can-
not engage or reengage in any terrorist activity; 
and 
(F) has agreed to share with the United 
States any information that— 
(i) is related to the individual or any 
associates of the individual; and 
(ii) could affect the security of the 
United States, its citizens, or its allies; and 
(2) includes an assessment conducted by the 
Director of National Intelligence, in classified or un-
classified form, that such government or entity has 
the capacity and willingness, and demonstrated past 
practices (if applicable) to comply with the require-
ments under paragraph (1). 
(c) PROHIBITION IN CASES OF PRIOR CONFIRMED 
RECIDIVISM.— 
(1) PROHIBITION.—Except as provided in para-
graph (2) and subsection (d), the Secretary of De-
fense may not use any amounts authorized to be ap-
propriated or otherwise made available to the De-
partment of Defense to transfer any individual de-
tained at Guantanamo to the custody or control of
521 
the individual’s country of origin, any other foreign 
country, or any other foreign entity if there is a con-
firmed case of any individual who was detained at 
United States Naval Station, Guantanamo Bay, 
Cuba, at any time after September 11, 2001, who 
was transferred to such foreign country or entity 
and subsequently engaged in any terrorist activity. 
(2) EXCEPTION.—Paragraph (1) shall not 
apply to any action taken by the Secretary to trans-
fer any individual detained at Guantanamo to effec-
tuate an order affecting the disposition of the indi-
vidual that is issued by a court or competent tri-
bunal of the United States having lawful jurisdiction 
(which the Secretary shall notify Congress of 
promptly after issuance). 
(d) NATIONAL SECURITY WAIVER.— 
(1) IN GENERAL.—Except as provided in para-
graph (3), the Secretary of Defense may waive the 
applicability to a detainee transfer of a certification 
requirement specified in subparagraph (D) or (E) of 
subsection (b)(1) or the prohibition in subsection (c), 
if the Secretary certifies the rest of the criteria re-
quired by subsection (b) for transfers prohibited by 
(c) and determines that—
522 
(A) alternative actions will be taken to ad-
dress the underlying purpose of the requirement 
or requirements to be waived; 
(B) in the case of a waiver of subpara-
graph (D) or (E) of subsection (b)(1), it is not 
possible to certify that the risks addressed in 
the paragraph to be waived have been com-
pletely eliminated, but the actions to be taken 
under subparagraph (A) will substantially miti-
gate such risks with regard to the individual to 
be transferred; 
(C) in the case of a waiver of subsection 
(c), the Secretary has considered any confirmed 
case in which an individual who was transferred 
to the country subsequently engaged in terrorist 
activity, and the actions to be taken under sub-
paragraph (A) will substantially mitigate the 
risk of recidivism with regard to the individual 
to be transferred; and 
(D) the transfer is in the national security 
interests of the United States. 
(2) REPORTS.—Whenever the Secretary makes 
a determination under paragraph (1), the Secretary 
shall submit to the appropriate committees of Con-
523 
gress, not later than 30 days before the transfer of 
the individual concerned, the following: 
(A) A copy of the determination and the 
waiver concerned. 
(B) A statement of the basis for the deter-
mination, including— 
(i) an explanation why the transfer is 
in the national security interests of the 
United States; 
(ii) in the case of a waiver of para-
graph (D) or (E) of subsection (b)(1), an 
explanation why it is not possible to certify 
that the risks addressed in the paragraph 
to be waived have been completely elimi-
nated; and 
(iii) a classified summary of— 
(I) the individual’s record of co-
operation while in the custody of or 
under the effective control of the De-
partment of Defense; and 
(II) the agreements and mecha-
nisms in place to provide for con-
tinuing cooperation. 
(C) A summary of the alternative actions 
to be taken to address the underlying purpose
524 
of, and to mitigate the risks addressed in, the 
paragraph or subsection to be waived. 
(D) The assessment required by subsection 
(b)(2). 
(3) EXCEPTION.—The Secretary may not exer-
cise the waiver authority under paragraph (1) with 
respect to any individual detained at Guantanamo, 
who has ever been determined or assessed to be a 
detainee referred for prosecution, a detainee ap-
proved for detention, or a detainee approved for con-
ditional detention by the Guantanamo Detainee Re-
view Task Force established pursuant to Executive 
Order number 13492. 
(e) RECORD OF COOPERATION.—In assessing the risk 
that an individual detained at Guantanamo will engage in 
terrorist activity or other actions that could affect the se-
curity of the United States if released for the purpose of 
making a certification under subsection (b) or a waiver 
under subsection (d), the Secretary of Defense may give 
favorable consideration to any such individual— 
(1) who has substantially cooperated with 
United States intelligence and law enforcement au-
thorities, pursuant to a pre-trial agreement, while in 
the custody of or under the effective control of the 
Department of Defense; and
525 
(2) for whom agreements and effective mecha-
nisms are in place, to the extent relevant and nec-
essary, to provide for continued cooperation with 
United States intelligence and law enforcement au-
thorities. 
(f) COORDINATION WITH PROHIBITION ON TRANS-
FER TO YEMEN.—During the period when section 1042 
is in effect, the exception in subsection (c)(2) and the 
waiver authority under subsection (d) shall not apply to 
the transfer of any individual detained at Guantanamo to 
Yemen. 
(g) COORDINATION WITH PROHIBITION ON TRANS-
FER TO COMBAT ZONES.—During the period when section 
1038 is in effect, the exception in subsection (c)(2) and 
the waiver authority under subsection (d) shall not apply 
to the transfer of any individual detained at Guantanamo 
to a combat zone, as such term is defined in subsection 
(b) of such section. 
(h) DEFINITIONS.—In this section: 
(1) The term ‘‘appropriate committees of Con-
gress’’ means— 
(A) the Committee on Armed Services, the 
Committee on Appropriations, the Committee 
on Foreign Relations, and the Select Committee 
on Intelligence of the Senate; and
526 
(B) the Committee on Armed Services, the 
Committee on Appropriations, the Committee 
on Foreign Affairs, and the Permanent Select 
Committee on Intelligence of the House of Rep-
resentatives. 
(2) The term ‘‘individual detained at Guanta-
namo’’ means any individual located at United 
States Naval Station, Guantanamo Bay, Cuba, as of 
October 1, 2009, who— 
(A) is not a citizen of the United States or 
a member of the Armed Forces of the United 
States; and 
(B) is— 
(i) in the custody or under the control 
of the Department of Defense; or 
(ii) otherwise under detention at 
United States Naval Station, Guantanamo 
Bay, Cuba. 
(3) The term ‘‘foreign terrorist organization’’ 
means any organization so designated by the Sec-
retary of State under section 219 of the Immigra-
tion and Nationality Act (8 U.S.C. 1189). 
(i) REPEAL OF SUPERSEDED REQUIREMENTS AND 
LIMITATIONS.—Section 1035 of the National Defense Au-
527 
thorization Act for Fiscal Year 2014 (Public Law 113– 
66; 127 Stat. 851; 10 U.S.C. 801 note) is repealed. 
SEC. 1040. SUBMISSION TO CONGRESS OF CERTAIN DOCU-
MENTS RELATING TO TRANSFER OF INDIVID-
UALS DETAINED AT GUANTANAMO TO QATAR. 
(a) SUBMISSION TO CONGRESS.—Not later than 30 
days after the date of the enactment of this Act, the Attor-
ney General and the Secretary of Defense shall submit to 
the congressional defense committees and the Committees 
on the Judiciary of the Senate and House of Representa-
tives all covered correspondence. 
(b) COVERED CORRESPONDENCE.—For purposes of 
this section, the term ‘‘covered correspondence’’— 
(1) means any correspondence between the De-
partment of Defense and the Department of Justice 
or any other agency or entity of the United States 
Government that— 
(A) relates to the transfer of individuals 
detained at United States Naval Station, Guan-
tanamo Bay, Cuba, to Qatar; 
(B) is dated any time between January 1, 
2013, and June 1, 2014; and 
(C) is in the custody of the Department of 
Justice or the Department of Defense; and 
(2) includes—
528 
(A) all relevant correspondence, including 
the email exchange described in June 11, 2014, 
testimony to the Committee on Armed Services 
of the House of Representatives by the Sec-
retary of Defense and the General Counsel of 
the Department of Defense; and 
(B) any analysis of— 
(i) section 1035 of the National De-
fense Authorization Act for Fiscal Year 
2014 (Public Law 113–66; 127 Stat. 851; 
10 U.S.C. 801 note); 
(ii) section 8111 of the Consolidated 
Appropriations Act, 2014 (Public Law 
113–76; 128 Stat. 131); 
(iii) section 1341 of title 31, United 
States Code (popularly known as ‘‘the 
Antideficiency Act’’); or 
(iv) Article II of the Constitution. 
(c) LIMITATION ON THE USE OF FUNDS.—Of the 
amounts authorized to be appropriated or otherwise made 
available for the Office of the Secretary of Defense for 
fiscal year 2016, not more than 75 percent may be obli-
gated or expended until the date of the submission of all 
covered correspondence.
529 
SEC. 1041. SUBMISSION OF UNREDACTED COPIES OF DOCU-
MENTS RELATING TO THE TRANSFER OF 
CERTAIN INDIVIDUALS DETAINED AT GUAN-
TANAMO TO QATAR. 
(a) UNREDACTED DOCUMENTS REQUIRED.— 
(1) FUTURE SUBMISSIONS.—The Secretary of 
Defense shall submit an unredacted copy of any doc-
ument submitted to the Committee on Armed Serv-
ices of the House of Representatives in response to 
a request from the Committee dated June 9, 2014, 
for information regarding the transfer of five indi-
viduals from United States Naval Station, Guanta-
namo Bay, Cuba, to Qatar. 
(2) PRIOR
SUBMISSIONS.—Not later than 30 
days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the Committee 
on Armed Services of the House of Representatives 
an unredacted copy of any redacted document that 
was submitted, before the date of the enactment of 
this Act, in response to a request dated June 9, 
2014, for information regarding the transfer of five 
individuals from United States Naval Station, Guan-
tanamo Bay, Cuba, to Qatar. 
(b) LIMITATION ON THE USE OF FUNDS.—Of the 
amounts authorized to be appropriated or otherwise made 
available for the Office of the Secretary of Defense for
530 
fiscal year 2016, not more than 75 percent may be obli-
gated or expended until the date of the submission of all 
documents required to be submitted under subsection 
(a)(2). 
SEC. 1042. PROHIBITION ON USE OF FUNDS FOR TRANSFER 
OR RELEASE OF INDIVIDUALS DETAINED AT 
UNITED STATES NAVAL STATION, GUANTA-
NAMO BAY, CUBA, TO YEMEN. 
No amounts authorized to be appropriated or other-
wise made available to any department or agency of the 
United States Government may be used during the period 
beginning on the date of the enactment of this Act and 
ending on the date that is two years after the date of the 
enactment of this Act to transfer, release, or assist in the 
transfer or release of any individual detained in the cus-
tody or under the control of the Department of Defense 
at United States Naval Station, Guantanamo Bay, Cuba, 
to the custody or control of the Republic of Yemen or any 
entity within Yemen.
531 
Subtitle E—Miscellaneous 
Authorities and Limitations 
SEC. 1051. ENHANCEMENT OF AUTHORITY OF SECRETARY 
OF NAVY TO USE NATIONAL SEA-BASED DE-
TERRENCE FUND. 
(a) IN GENERAL.—Section 2218a of title 10, United 
States Code, is amended— 
(1) in subsection (c)(1), by striking ‘‘national 
sea-based deterrence vessels’’ and inserting ‘‘a class 
of twelve national sea-based deterrence vessels, and 
cross-program coordinated procurement efforts with 
other nuclear powered vessels’’; 
(2) in subsection (d), by inserting before the pe-
riod at the end the following: ‘‘and cross program 
coordinated procurement efforts with other nuclear 
powered vessels’’; 
(3) by redesignating subsections (f) and (g) as 
subsections (j) and (l), respectively; 
(4) by inserting after subsection (e) the fol-
lowing new subsections: 
‘‘(f) AUTHORITY TO ENTER INTO ECONOMIC ORDER 
QUANTITY CONTRACTS.—(1) The Secretary of the Navy 
may use funds deposited in the Fund to enter into con-
tracts known as ‘economic order quantity contracts’ with 
private shipyards and other commercial or government en-
532 
tities to achieve economic efficiencies based on production 
economies for major components or subsystems. The au-
thority under this subsection extends to the procurement 
of parts, components, and systems (including weapon sys-
tems) common with and required for other nuclear pow-
ered vessels under joint economic order quantity contracts. 
‘‘(2) A contract entered into under paragraph (1) 
shall provide that any obligation of the United States to 
make a payment under the contract is subject to the avail-
ability of appropriations for that purpose, and that total 
liability to the Government for termination of any contract 
entered into shall be limited to the total amount of funding 
obligated at time of termination. 
‘‘(g) AUTHORITY TO BEGIN MANUFACTURING AND 
FABRICATION EFFORTS PRIOR
TO SHIP AUTHORIZA-
TION.—(1) The Secretary of the Navy may use funds de-
posited into the Fund to enter into contracts for advance 
construction of national sea-based deterrence vessels to 
support achieving cost savings through workload manage-
ment, manufacturing efficiencies, or workforce stability, or 
to phase fabrication activities within shipyard and manage 
sub-tier manufacturer capacity. 
‘‘(2) A contract entered into under paragraph (1) 
shall provide that any obligation of the United States to 
make a payment under the contract is subject to the avail-
533 
ability of appropriations for that purpose, and that total 
liability to the Government for termination of any contract 
entered into shall be limited to the total amount of funding 
obligated at time of termination. 
‘‘(h) AUTHORITY TO USE INCREMENTAL FUNDING 
TO ENTER INTO CONTRACTS FOR CERTAIN ITEMS.—(1) 
The Secretary of the Navy may use funds deposited into 
the Fund to enter into incrementally funded contracts for 
advance procurement of high value, long lead time items 
for nuclear powered vessels to better support construction 
schedules and achieve cost savings through schedule re-
ductions and properly phased installment payments. 
‘‘(2) A contract entered into under paragraph (1) 
shall provide that any obligation of the United States to 
make a payment under the contract is subject to the avail-
ability of appropriations for that purpose, and that total 
liability to the Government for termination of any contract 
entered into shall be limited to the total amount of funding 
obligated at time of termination. 
‘‘(i) FACILITIES FUNDING.—The Secretary of the 
Navy may use funds deposited into the Fund to provide 
incentives for investments in critical infrastructure at nu-
clear capable shipyards and critical sub-tier vendors. Addi-
tionally, the Secretary of the Navy may use such funds 
for certain cancellation costs in the event of significant
534 
changes to the Long Range Shipbuilding Strategy for nu-
clear powered vessels.’’; 
(5) by inserting after subsection (j), as redesig-
nated by paragraph (3), the following new sub-
section: 
‘‘(k) REPORT TO CONGRESS.—(1) The Secretary of 
the Navy shall submit to the congressional defense com-
mittees, by March 1, 2016, and annually through the year 
2025, a report on the Fund. Each such report shall iden-
tify separately the amount allocated by ship for programs, 
projects, and activities for construction (including design 
of vessels), purchase, alteration, and conversion. At a min-
imum, each such report shall include— 
‘‘(A) information about the activities carried 
out using funds deposited into the Fund during the 
fiscal year covered by the report, including the sta-
tus of class design and construction efforts, includ-
ing programmatic schedules, procurement schedules, 
and funding requirements. 
‘‘(B) a plan detailing forecasted obligations and 
expenditures for construction (including design of 
vessels), purchase, alteration, and conversion of ves-
sels by ship for the fiscal year following the fiscal 
year during which the report is submitted; and
535 
‘‘(C) the identification of the stable need and 
design for items, together with a description of any 
savings associated with the authorities provided in 
subsections (e) and (f), as documented in cost esti-
mates. 
‘‘(2) The Secretary of the Navy shall provide to the 
congressional defense committees notice in writing at least 
30 days before executing any significant deviation to the 
annual plan required under paragraph (1)(B).’’; and 
(6) in subsection (l), as so redesignated, by 
adding at the end the following new paragraph: 
‘‘(3) The term ‘advance construction’ means 
shipyard manufacturing and fabrication activities 
(including sub-tier manufacturing of major compo-
nents or subsystems).’’. 
(b) AVAILABILITY
OF
CERTAIN
UNOBLIGATED 
FUNDS FOR TRANSFER.—Section 1022(b)(1) of the Na-
tional Defense Authorization Act for Fiscal Year 2015 
(Public Law 113–291; 128 Stat. 3487) is amended by 
striking ‘‘for the Navy for the Ohio Replacement Pro-
gram’’ and inserting ‘‘to the Department of Defense’’.
536 
SEC. 1052. DEPARTMENT OF DEFENSE EXCESS PROPERTY 
PROGRAM. 
(a) WEBSITE REQUIRED.—Section 2576a of title 10, 
United States Code is amended by adding at the end the 
following new subsection: 
‘‘(e) PUBLICLY ACCESSIBLE WEBSITE.—(1) The 
Secretary of Defense, acting through the Director of the 
Defense Logistics Agency, shall create and maintain a 
publicly available Internet website that provides informa-
tion on the property transferred under this section and 
the recipients of such property. 
‘‘(2) The contents of the Internet website required 
under paragraph (1) shall include all unclassified informa-
tion pertaining to the request, transfer, denial, and repos-
session of controlled property under this section, includ-
ing— 
‘‘(A) a current inventory of all controlled prop-
erty transferred to law enforcement agencies under 
this section, listed by recipient, that includes the re-
cipient’s location, by county and State, and the year 
of the transfer; 
‘‘(B) all outstanding requests for transfers of 
controlled property under this section; and 
‘‘(C) information provided by the law enforce-
ment agencies requesting transfers referred to in 
subparagraph (B).
537 
‘‘(3) The Secretary may not authorize the transfer 
of any property under this section to a Federal or State 
agency to which property has been transferred previously 
unless the agency submits to the Secretary for publication 
on the Internet website required under paragraph (1) each 
of the following: 
‘‘(A) A description of any controlled property 
transferred to the agency under this section, which 
shall be submitted by not later than 30 days after 
the date on which the agency takes possession of the 
property. 
‘‘(B) An annual report on the use of any con-
trolled property so transferred to the agency, includ-
ing a description of the context in which the prop-
erty was used. 
‘‘(4) The Secretary may not authorize the transfer 
of any property under this section to a Federal or State 
agency until 30 days after a request for the transfer has 
been published on the Internet website required under 
paragraph (1).’’. 
(b) ELIGIBILITY REQUIREMENTS.—Subsection (b) of 
such section is amended— 
(1) in paragraph (3), by striking ‘‘and’’ at the 
end;
538 
(2) in paragraph (4), by striking the period and 
inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraphs: 
‘‘(5) in the case of property that is controlled 
property, the recipient submits to the Secretary writ-
ten notice of the intent of the recipient to apply for 
the controlled property, including authorization of 
such application by the entity charged with legal 
oversight of the recipient agency; and 
‘‘(6) the recipient agency is located in a State 
with a State coordinator for the program under this 
section who— 
‘‘(A) has law enforcement experience and 
is employed by a law enforcement agency or en-
tity with oversight of law enforcement func-
tions; 
‘‘(B) serves as the custodian of controlled 
property transferred to recipients located in 
that State; and 
‘‘(C) has the authority to non-concur with 
proposed uses of such property.’’. 
(c) DEFINITION OF CONTROLLED PROPERTY.—Such 
section is further amended by adding at the end the fol-
lowing new subsection:
539 
‘‘(f) CONTROLLED PROPERTY.—In this section, the 
term ‘controlled property’ means any item assigned a de-
militarization code of B, C, D, E, F, G, or Q under De-
partment of Defense Manual 4160.21–M, ‘Defense Mate-
riel Disposition Manual’, or any successor document.’’. 
(d) EXAMINATION OF TRAINING REQUIREMENTS.— 
The Director of the Defense Logistics Agency shall enter 
into an agreement with a federally funded research and 
development center to conduct an assessment of the De-
partment of Defense excess property program under sec-
tion 2576a of title 10, United States Code, as amended 
by this section. Such assessment shall include an evalua-
tion of the policies and controls governing the determina-
tion of the suitability of recipients of controlled property 
transferred under the program, including specific rec-
ommendations relating to the training that law enforce-
ment agencies that receive such property should receive, 
at no cost to the Department of Defense, to ensure end- 
user proficiency in the use, maintenance, and sustainment 
of such property. 
(e) ONE-YEAR MANDATORY USE POLICY ASSESS-
MENT.—The Director of the Defense Logistics Agency 
shall enter into an agreement with a federally funded re-
search and development center for the conduct of an as-
sessment of the Department of Defense excess property
540 
program under section 2576a of title 10, United States 
Code, to determine if the requirement that all controlled 
property transferred under the program be used within 
one year of being transferred is achieving its intended ef-
fect. Such assessment shall also include recommendations 
on process improvement, including legislative proposals. 
(f) COMPTROLLER
GENERAL
ASSESSMENT.—Not 
later than one year after the date of the enactment of this 
Act, the Comptroller General of the United States shall 
conduct an assessment of the Department of Defense ex-
cess property program under section 2576a of title 10, 
United States Code. Such assessment shall include— 
(1) an evaluation of the transfer of controlled 
property under the program, including the manner 
in which the property was used in community law 
enforcement and the effectiveness of the Internet 
website required under subsection (e) of section 
2576a, as added by subsection (a), in providing 
transparency to the public; and 
(2) a determination of whether the transfer of 
property under the program enhances the ability of 
law enforcement agencies to carry out counter-drug 
and counter-terrorism activities in accordance with 
the purposes of the program as set forth in section 
2576a of title 10, United States Code.
541 
SEC. 1053. LIMITATION ON TRANSFER OF CERTAIN AH–64 
APACHE 
HELICOPTERS 
FROM 
ARMY 
NA-
TIONAL GUARD TO REGULAR ARMY AND RE-
LATED PERSONNEL LEVELS. 
Section 1712 of the National Defense Authorization 
Act for Fiscal Year 2015 (Public Law 113–291) is amend-
ed— 
(1) in subsection (b), by striking ‘‘March 31, 
2016’’ and inserting ‘‘June 30, 2016’’; and 
(2) in subsection (e), by striking ‘‘March 31, 
2016’’ and inserting ‘‘June 30, 2016’’ both places it 
appears. 
SEC. 1054. SPACE AVAILABLE TRAVEL FOR ENVIRON-
MENTAL 
MORALE 
LEAVE 
BY 
CERTAIN 
SPOUSES 
AND 
CHILDREN 
OF 
DEPLOYED 
MEMBERS OF THE ARMED FORCES. 
The Secretary of Defense shall revise the Air Trans-
portation Eligibility Regulation, DOD 4515.13–R, to au-
thorize space-available travel for environmental morale 
leave by unaccompanied spouses and dependent children 
of members of the Armed Forces who are deployed for 
at least 30 consecutive days under priority category IV. 
The Secretary shall also update any other instructions, di-
rectives, or internal policies necessary to facilitate such re-
vision.
542 
SEC. 1055. INFORMATION-RELATED AND STRATEGIC COM-
MUNICATIONS CAPABILITIES ENGAGEMENT 
PILOT PROGRAM. 
(a) PILOT PROGRAM REQUIRED.—The Secretary of 
Defense may carry out a pilot program or multiple pilot 
programs under which the Secretary assesses information- 
related and strategic communications capabilities to sup-
port the tactical, operational, and strategic requirements 
of the geographic and functional combatant commanders, 
including the urgent and emergent operational needs and 
the operational and theater security cooperation plans of 
such combatant commanders, to further United States na-
tional security objectives and strategic communications re-
quirements. 
(b) ELEMENTS.—Any pilot program carried out 
under subsection (a) shall include each of the following 
elements: 
(1) Clearly defined goals and end-state objec-
tives for the pilot program, including the traceability 
of such goals and objectives to the tactical, oper-
ational, or strategic requirements of the combatant 
commanders. 
(2) A process for measuring the performance 
and effectiveness of the pilot program.
543 
(3) A demonstration of a technology capability 
or concept to support the tactical, operational, or 
strategic needs of the combatant commanders. 
(4) Supporting activities and coordinating ele-
ments with joint, interagency, intergovernmental, 
and multinational partners. 
(c) GOVERNANCE.—The Secretary shall create a gov-
ernance structure for executing any pilot program carried 
out under subsection (a) that allows for centralized over-
sight and planning of the program with program execution 
decentralized to the combatant commands. The Secretary 
shall provide a written charter for such a governance 
structure by not later than the date that is 30 days after 
the date on which the Secretary decides to carry out such 
a pilot program. 
(d) NOTIFICATION REQUIRED.—By not later than 14 
days after the date on which the Secretary decides to carry 
out a pilot program under subsection (a), the Secretary 
shall submit to the congressional defense committees writ-
ten notice of the decision. Such notice shall include the 
scope of activities, funding required, sponsoring combat-
ant commander, anticipated participants, and expected 
duration of the pilot program.
544 
(e) TERMINATION.—The authority to carry out a 
pilot program under this section shall terminate on Sep-
tember 30, 2022. 
SEC. 1056. PROHIBITION ON USE OF FUNDS FOR RETIRE-
MENT OF HELICOPTER SEA COMBAT SQUAD-
RON 84 AND 85 AIRCRAFT. 
(a) PROHIBITIONS.—Except as provided by sub-
section (b), none of the funds authorized to be appro-
priated by this Act or otherwise made available for fiscal 
year 2016 for the Navy may be obligated or expended to— 
(1) retire, prepare to retire, transfer, or place 
in storage any Helicopter Sea Combat Squadron 84 
(HSC–84) or Helicopter Sea Combat Squadron 85 
(HSC–85) aircraft; or 
(2) make any changes to manning levels with 
respect to any HSC–84 or HSC–85 aircraft squad-
ron. 
(b) WAIVER.—The Secretary of the Navy may waive 
subsection (a), if the Secretary certifies to the congres-
sional defense committees that the Secretary has— 
(1) conducted a cost-benefit analysis identifying 
savings to Department of the Navy regarding de-
commissioning or deactivation of an HSC–84 or 
HSC–85 squadron;
545 
(2) identified a replacement capability to meet 
all operational requirements, including special oper-
ational-peculiar requirements of the combatant com-
mands, currently being met by the HSC–84 or 
HSC–85 squadrons and aircraft to be retired, trans-
ferred, or placed in storage; and 
(3) deployed such capability. 
SEC. 1057. LIMITATION ON AVAILABILITY OF FUNDS FOR 
DESTRUCTION OF CERTAIN LANDMINES. 
(a) LIMITATION.—Except as provided under sub-
section (b), none of the funds authorized to be appro-
priated by this Act or otherwise made available for fiscal 
year 2016 for the Department of Defense may be obli-
gated or expended for the destruction of anti-personnel 
landmines of the United States (as defined in the an-
nouncement of the President on September 23, 2014) 
until— 
(1) the Secretary of Defense publishes a com-
prehensive study on— 
(A) the tactical and operational effects of 
a ban on such landmines; and 
(B) the current state of research into oper-
ational alternatives to such landmines; 
(2) such alternatives are specifically authorized 
by law and provided appropriations;
546 
(3) such alternatives are fully deployed; 
(4) members of the Armed Forces of the United 
States and allies of the United States are trained in 
the use of such alternatives; and 
(5) the Secretary certifies to the congressional 
defense committees that the replacement of such 
landmines by such alternatives will not endanger 
members of the Armed Forces of the United States 
or allies of the United States or pose any operational 
challenges and that adequate stockpiles and manu-
facturing capacity exists to meet the needs of the 
Armed Forces of the United States and allies of the 
United States in current deployments and antici-
pated contingencies. 
(b) EXCEPTION FOR SAFETY.—The limitation under 
subsection (a) shall not apply to any anti-personnel land 
mine that the Secretary certifies has become unsafe or 
poses a safety risk if not demilitarized or destroyed. 
SEC. 1058. LIMITATION ON AVAILABILITY OF FUNDS FOR 
MODIFYING COMMAND AND CONTROL OF 
UNITED STATES PACIFIC FLEET. 
None of the funds authorized to be appropriated or 
otherwise made available for fiscal year 2016 may be obli-
gated or expended to modify command and control rela-
tionships to give Fleet Forces Command operational and
547 
administrative control of Navy forces assigned to the Pa-
cific Fleet. The command and control relationships in ef-
fect on October 1, 2004, shall remain in effect unless a 
change to such relationships is specifically authorized by 
a law. 
SEC. 1059. PROHIBITION ON THE CLOSURE OF UNITED 
STATES NAVAL STATION, GUANTANAMO BAY, 
CUBA. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) The United States military presence in the 
Republic of Cuba began in 1898, and United States 
military basing began in Cuba in 1903. 
(2) In 1934, the United States and Cuba en-
tered into the Treaty Between the United States of 
America and Cuba signed at Washington, D.C. on 
May 29, 1934. Under Article III, the treaty stipu-
lates the perpetual lease agreement between the 
United States and Cuba for the 45 square miles of 
land encompassing Guantanamo Bay, Cuba. 
(3) On March 12, 2015, Commander of United 
States Southern Command, General John Kelly, tes-
tified before the Committee on Armed Services of 
the Senate, highlighting, ‘‘Its [Naval Station Guan-
tanamo Bay] airfield and port facilities are indispen-
548 
sable to the Departments of Defense, Homeland Se-
curity, and State’s operational and contingency 
plans. . . As the only permanent U.S. military base 
in Latin America and the Caribbean, its location 
provides persistent U.S. presence and immediate ac-
cess to the region, as well as supporting a layered 
defense to secure the air and maritime approaches 
to the United States’’. 
(4) Former Commander of United States 
Southern 
Command, 
retired 
Admiral 
James 
Stavridis, recently stated ‘‘Guantanamo Bay Naval 
Station has immense strategic value above and be-
yond its reputation as a detention facility. It is the 
logistic, planning, surveillance and basing linchpin 
for the U.S. Fourth Fleet, crucial to the military for 
disaster relief, humanitarian work, medical diplo-
macy, and counternarcotics, all key missions for the 
U.S. Navy in Latin America and the Caribbean. The 
U.S. should do all in its power to maintain its legal 
control over the base’’. 
(5) In testimony in front of the Committee on 
Armed Services of the House of Representatives in 
2012, then-Commander of United States Southern 
Command, General Douglas Fraser, stated, ‘‘Absent 
a detention facility and even following the eventual
549 
demise of the Castro regime, the strategic capability 
provided by the U.S. Naval Station Guantanamo 
Bay remains essential for executing national prior-
ities throughout the Caribbean, Latin America, and 
South America’’. 
(6) As part of ‘‘normalizing’’ relations with the 
government of Cuba, announced in December 2014, 
ongoing negotiations are occurring to determine the 
diplomatic framework between the governments of 
the United States and Cuba. 
(7) In January 2015, soon after negotiations 
began between the United States and Cuba, Cuban 
President Raul Castro demanded the return of 
United States Naval Station, Guantanamo Bay, 
Cuba, to Cuba. 
(8) In February 2015, Assistant Secretary of 
State for Western Hemisphere Affairs Roberta 
Jacobson, in testimony in front of the Foreign Af-
fairs Committee of the House of Representatives, 
stated that the return of United States Naval Sta-
tion, Guantanamo Bay, Cuba, is ‘‘not on the table 
in these conversations’’, referencing current diplo-
matic negotiations. Later in her testimony Assistant 
Secretary Jacobson pointed out, referring to the pos-
sible closure of the Naval Station, that she is not a
550 
‘‘high enough ranking person to know. . .whether it 
could be in the future’’. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) the strategic, logistic, and postural signifi-
cance of United States Naval Station Guantanamo 
Bay, Cuba, is vital to the security of the United 
States; and 
(2) the United States must not relinquish con-
trol of Guantanamo Bay to the Republic of Cuba. 
(c) PROHIBITION.—United States Naval Station, 
Guantanamo Bay, Cuba, may not be closed or abandoned, 
and the President shall ensure that the obligations of the 
United States under Article III of the Treaty Between the 
United States of America and Cuba signed at Washington, 
D.C. on May 29, 1934 are met, including the payment 
of the annual lease sum to the government of Cuba, unless 
otherwise specifically provided— 
(1) by law; 
(2) in a treaty that is ratified with the advice 
and consent of the Senate; or 
(3) by a modification of the Treaty Between the 
United States of America and Cuba signed at Wash-
ington, D.C. on May 29, 1934, that is ratified with 
the advice and consent of the Senate.
551 
(d) REPORT.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the 
Commander of United States Southern Command 
shall submit to appropriate committees of Congress, 
a report setting forth a military assessment of the 
strategic implications of United States Naval Station 
Guantanamo Bay, Cuba. 
(2) ELEMENTS.—The report required under 
paragraph (1) shall include each of the following: 
(A) An historical analysis of the use and 
significance of the basing at United States 
Naval Station, Guantanamo Bay, Cuba. 
(B) A description of the personnel, re-
sources, and base operations based out of 
United States, Naval Station Guantanamo Bay, 
Cuba, as of the date of the enactment of this 
Act. 
(C) An assessment of United States Naval 
Station, Guantanamo Bay, Cuba, in support of 
the National Security Strategy, the National 
Defense Strategy, and the National Military 
Strategy. 
(D) An assessment of missions and mili-
tary requirements that United States Naval
552 
Station, Guantanamo Bay, Cuba, currently sup-
ports. 
(E) A description of the uses of United 
States Naval Station, Guantanamo Bay, Cuba 
by other United States Government agencies. 
(F) Any other related matter at the discre-
tion of the Commander. 
(3) 
APPROPRIATE
COMMITTEES
OF
CON-
GRESS.—In this subsection, the term ‘‘appropriate 
committees of Congress’’ means— 
(A) the Committee on Armed Services, the 
Committee on Appropriations, and the Com-
mittee on Foreign Affairs of the House of Rep-
resentatives; and 
(B) the Committee on Armed Services, the 
Committee on Appropriations, and the Com-
mittee on Foreign Relations of the Senate. 
SEC. 1060. PROHIBITION ON USE OF FUNDS FOR REALIGN-
MENT OF FORCES AT OR CLOSURE OF 
UNITED STATES NAVAL STATION, GUANTA-
NAMO BAY, CUBA. 
No amounts authorized to be appropriated or other-
wise made available for the Department of Defense may 
be used, during the period beginning on the date of the
553 
enactment of this Act and ending on December 31, 2016, 
to— 
(1) close or abandon United States Naval Sta-
tion, Guantanamo Bay, Cuba; 
(2) relinquish control of Guantanamo Bay to 
the Republic of Cuba; or 
(3) modify the Treaty Between the United 
States of America and Cuba signed at Washington, 
D.C. on May 29, 1934, including a modification of 
the boundaries of Guantanamo Bay, unless ratified 
with the advice and consent of the Senate. 
SEC. 1060a. CIVILIAN AVIATION ASSET MILITARY PARTNER-
SHIP PILOT PROGRAM. 
(a) PARTICIPATION.—The Secretary of Defense, in 
coordination with the Administrator of the Federal Avia-
tion Administration, may participate in a Civilian Aviation 
Asset Military Partnership Pilot Program (in this section 
referred to as the ‘‘Program’’) in accordance with this sec-
tion. 
(b) GRANT AUTHORITY.—Subject to the availability 
of appropriations to carry out this section, the Secretary 
of Defense, in coordination with the Administrator of the 
Federal Aviation Administration, may make a grant under 
the Program, on a competitive basis, to an eligible airport 
to assist a project—
554 
(1) to improve aviation infrastructure; or 
(2) to repair, replace, or otherwise improve an 
eligible tower facility at that airport. 
(c) NUMBER.—Not more than three eligible airports 
may receive a grant under the Program for a fiscal year. 
(d) AMOUNT.—The amount provided to each eligible 
airport that receives a grant under the Program may not 
exceed $2,500,000. 
(e) ELIGIBILITY.—To be eligible for a grant under 
the Program, an eligible airport shall submit to the Sec-
retary of Defense an application at such time, in such 
form, and containing such information as the Secretary, 
in coordination with the Administrator of the Federal 
Aviation Administration, determines is appropriate. An 
application shall include, at a minimum, a description of— 
(1) the proposed project with respect to which 
a grant is requested, including estimated costs; 
(2) the need for the project at the eligible air-
port, including how the project will assist both civil 
aircraft and military aircraft; and 
(3) the non-Federal funding available for the 
project. 
(f) SELECTION AND TERMS.—The Secretary of De-
fense and the Administrator of the Federal Aviation Ad-
ministration shall jointly—
555 
(1) select eligible airports to receive grants 
under the Program; and 
(2) establish the terms of each grant made 
under the Program. 
(g) FUNDING.— 
(1) FEDERAL SHARE.—The Federal share of 
the cost of a project assisted with a grant under the 
Program may not exceed 70 percent. Prioritization 
shall be given to projects with the lowest Federal 
share. 
(2) COORDINATION.—With respect to the Fed-
eral share of the cost of a project assisted with a 
grant under the Program, 50 percent of that Fed-
eral share shall be paid by the Administrator of the 
Federal Aviation Administration and 50 percent 
shall be paid by the Secretary of Defense. 
(h) TERMINATION.—The Program shall terminate at 
the end of the third fiscal year in which a grant is made 
under the Program. 
(i) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) ELIGIBLE
AIRPORT.—The term ‘‘eligible 
airport’’ means an airport at which— 
(A) military aircraft conducts operations; 
and
556 
(B) civil aircraft operations are conducted. 
(2) ELIGIBLE TOWER FACILITY.—The term ‘‘el-
igible tower facility’’ means a tower facility that— 
(A) is located at an eligible airport; 
(B) is greater than 30 years of age; and 
(C) has demonstrated failings. 
(3) AVIATION
INFRASTRUCTURE.—The term 
‘‘aviation infrastructure’’ means any activity defined 
under the term ‘‘airport development’’ in section 
47102 of title 49, United States Code. 
SEC. 1060b. SALE OR DONATION OF EXCESS PERSONAL 
PROPERTY FOR BORDER SECURITY ACTIVI-
TIES. 
Section 2576a of title 10, United States Code, is 
amended— 
(1) in subsection (a)— 
(A) in paragraph (1)(A), by striking 
‘‘counter-drug and counter-terrorism activities’’ 
and inserting ‘‘counterdrug, counterterrorism, 
and border security activities’’; and 
(B) in paragraph (2), by striking ‘‘the At-
torney General and the Director of National 
Drug Control Policy’’ and inserting ‘‘the Attor-
ney General, the Director of National Drug
557 
Control Policy, and the Secretary of Homeland 
Security, as appropriate.’’; and 
(2) in subsection (d), by striking ‘‘counter-drug 
and counter-terrorism activities’’ and inserting 
‘‘counterdrug, counterterrorism, or border security 
activities’’. 
SEC. 1060c. LIMITATION ON USE OF FUNDS TO DEACTIVATE 
440TH AIRLIFT WING. 
None of the funds authorized to be appropriated in 
this Act or otherwise made available for the Department 
of Defense may be used to deactivate the 440th airlift 
wing, or to move the personnel or aircraft of the 440th 
airlift wing, or to otherwise degrade the capabilities of the 
440th airlift wing until the Secretary of Defense certifies 
that the deactivation of the 440th airlift wing will not af-
fect the military readiness for the airborne and special op-
erations units stationed at Fort Bragg, North Carolina. 
Subtitle F—Studies and Reports 
SEC. 1061. PROVISION OF DEFENSE PLANNING GUIDANCE 
AND CONTINGENCY PLANNING GUIDANCE IN-
FORMATION TO CONGRESS. 
(a) IN GENERAL.—Section 113(g) of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new paragraph:
558 
‘‘(3) At the time of the budget submission by the 
President for a fiscal year, the Secretary of Defense shall 
include in the budget materials submitted to Congress for 
that year summaries of the guidance developed under 
paragraphs (1) and (2), as well as summaries of any plans 
developed in accordance with the guidance developed 
under paragraph (2). Such summaries shall be sufficient 
to allow the congressional defense committees to evaluate 
fully the requirements for military forces, acquisition pro-
grams, and operation and maintenance funding in the 
President’s annual budget request for the Department of 
Defense.’’. 
(b) REPORT REQUIRED.—Notwithstanding the re-
quirement under paragraph (3) of section 113(g) of title 
10, United States Code, as added by subsection (a), that 
the Secretary of Defense submit summaries under that 
paragraph at the time of the President’s annual budget 
submission, by not later than 120 days after the date of 
the enactment of this Act, the Secretary shall submit to 
the congressional defense committees a report con-
taining— 
(1) summaries of the guidance developed under 
paragraphs (1) and (2) of subsection (g) of section 
113 of title 10, United States Code; and
559 
(2) summaries of any plans developed in ac-
cordance with the guidance developed under para-
graph (2) of such subsection. 
(c) LIMITATION ON OBLIGATION OF FUNDS PENDING 
REPORT.—Of the funds authorized to be appropriated by 
this Act for Operation and Maintenance, Defense-wide, for 
the office of the Secretary of Defense, not more than 75 
percent may be obligated or expended before the date that 
is 15 days after the date on which the Secretary submits 
the report described in subsection (b). 
SEC. 1062. MODIFICATION OF CERTAIN REPORTS SUB-
MITTED BY COMPTROLLER GENERAL OF THE 
UNITED STATES. 
(a) REPORT ON NNSA BUDGET REQUESTS.—Sec-
tion 3255(a)(2) of the National Nuclear Security Adminis-
tration Act (50 U.S.C. 2455) is amended by inserting be-
fore ‘‘, the Comptroller General’’ the following: ‘‘in an 
even-numbered year, and not later than 150 days after 
the date on which the Administrator submits such mate-
rials in an odd-numbered year’’. 
(b) REPORT ON ENVIRONMENTAL MANAGEMENT.— 
Section 3134 of the National Defense Authorization Act 
for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 
2713), as amended by section 3134 of the National De-
560 
fense Authorization Act for Fiscal Year 2013 (Public Law 
112–239; 126 Stat. 2193), is further amended— 
(1) in subsection (a), by striking ‘‘a series of 
three reviews, as described in subsections (b), (c), 
and (d),’’ and inserting ‘‘reviews as described in sub-
sections (b) and (c)’’; 
(2) by striking subsection (d); and 
(3) by redesignating subsection (e) as sub-
section (d). 
SEC. 1063. REPORT ON IMPLEMENTATION OF THE GEO-
GRAPHICALLY 
DISTRIBUTED 
FORCE 
LAYDOWN IN THE AREA OF RESPONSIBILITY 
OF UNITED STATES PACIFIC COMMAND. 
(a) REPORT REQUIRED.—Not later than March 1, 
2016, the Secretary of Defense, in consultation with the 
Commander of the United States Pacific Command, shall 
submit to the congressional defense committees a report 
on Department of Defense plans for implementing the 
geographically distributed force laydown in the area of re-
sponsibility of United States Pacific Command. 
(b) MATTERS TO BE INCLUDED.—The report re-
quired under subsection (a) shall include the following: 
(1) A description of the force laydown. 
(2) A discussion of how the force laydown af-
fects the operational and contingency plans in the
561 
area of responsibility of United States Pacific Com-
mand, including a discussion on how timeliness, 
availability of forces, and risk in meeting the mili-
tary objectives contained in those plans are affected. 
(3) A discussion of the specific support asset 
requirements derived from the force laydown, includ-
ing logistical sustainment, pre-positioned stocks, sea 
and air lift and, command and control. 
(4) A discussion of the specific infrastructure 
and military construction requirements derived from 
the force laydown. 
(5) A discussion on how Department of Defense 
plans to meet the requirements identified in para-
graphs (3) and (4), including the ability of United 
States Transportation Command, the United States 
Combat Logistics Force, and the Armed Forces to 
meet those requirements. 
(6) Any other matters the Secretary of Defense 
determines to be appropriate. 
(c) FORM.—The report required under subsection (a) 
shall be submitted in unclassified form, but may include 
a classified annex.
562 
SEC. 1064. INDEPENDENT STUDY OF NATIONAL SECURITY 
STRATEGY FORMULATION PROCESS. 
(a) REQUIREMENT FOR STUDY.—The Secretary of 
Defense shall enter into a contract with an independent 
research entity described in subsection (c) to carry out a 
comprehensive study of the role of the Department of De-
fense and its process for the formulation of national secu-
rity strategy. 
(b) MATTERS COVERED.—The study required by sub-
section (a) shall include, at a minimum, the following: 
(1) Case studies of the role of the Department 
of Defense and its process for the formulation of 
previous national security strategies in place 
throughout the history of the United States, includ-
ing an examination of the development and execu-
tion of previous strategies, as well as the factors 
that contributed to the development and execution of 
successful previous strategies with specific emphasis 
on— 
(A) the frequency of strategy updates; 
(B) the synchronization of timelines and 
content among different strategies; 
(C) the prioritization of objectives; 
(D) the assignment of roles and respon-
sibilities among relevent agencies;
563 
(E) the links between strategy and 
resourcing; 
(F) the implementation of strategy within 
the planning documents of relevant agencies; 
and 
(G) the value of a competition of ideas. 
(2) A complete review and analysis of the cur-
rent national security strategy formulation process, 
as it relates to the Department of Defense, including 
an analysis of the following: 
(A) All major Government products and 
documents of national security strategy relevant 
to the Department of Defense and how they fit 
together, including— 
(i) the National Military Strategy pre-
pared by the Chairman of the Joint Chiefs 
of Staff under section 153(b)(1) of title 
10, United States Code; 
(ii) the most recent quadrennial de-
fense review conducted by the Secretary of 
Defense pursuant to section 118 of title 
10, United States Code; 
(iii) the national security strategy re-
port required under section 108 of the Na-
564 
tional Security Act of 1947 (50 U.S.C. 
3043); and 
(iv) any other relevant national secu-
rity strategy products and documents. 
(B) The time periods during which the 
products and documents covered by subpara-
graph (A) are prepared and published, and how 
they fit together. 
(C) The interaction between the White 
House and the agencies that develop such prod-
ucts and documents and formulate strategy. 
(D) All the current entities in the Federal 
Government that contribute to the national se-
curity strategy formulation process and how 
they fit together. 
(c) INDEPENDENT RESEARCH ENTITY.—The entity 
described in this subsection is an independent research en-
tity that is a not-for-profit entity or a federally funded 
research and development center with appropriate exper-
tise and analytical capability. 
(d) REPORT.—Not later than 18 months after the 
date of the enactment of this Act, the independent re-
search entity shall provide to the Secretary a report on 
the results of the study. Not later than 30 days after re-
ceipt of the report, the Secretary shall submit such report,
565 
together with any additional views or recommendations of 
the Secretary, to the congressional defense committees. 
SEC. 1065. STUDY AND REPORT ON ROLE OF DEPARTMENT 
OF DEFENSE IN FORMULATION OF LONG- 
TERM STRATEGY. 
The Secretary of Defense shall direct the Office of 
Net Assessment to conduct a study on the role of the De-
partment of Defense in the formulation of long-term strat-
egy. Not later than two years after the date of the enact-
ment of this Act, the Secretary shall submit to the con-
gressional defense committees a report on the results of 
the study, which shall include— 
(1) historical lessons learned, and recommenda-
tions for both the executive and legislative branch on 
how to create an entity or entities, programs or 
projects, or supporting efforts or activities to study 
and formulate suggestions for Department of De-
fense long-term strategy across the combination of 
military, economic, scientific, technological, geo-
political, resources, international relations, and other 
relevant areas of study related to the role of the De-
partment of Defense in national security. 
(2) key recommendations for alternative or can-
didate courses of action for establishing such an en-
tity or entities, programs or projects, or supporting
566 
efforts or activities within or outside of the Govern-
ment, including identification of areas or compo-
nents of the Government most suited to the formula-
tion of Department of Defense long-term strategy, 
or identification of new offices, organizational units, 
or supporting efforts within or outside of the Gov-
ernment focused on the development of long-term 
strategies for the Department; and 
(3) an analysis of the efforts of the Department 
of Defense to cultivate long-term strategists within 
and outside of the Department and the Government, 
including an examination of options of best methods 
to improve and support the development, training, 
and education of strategic thinkers within and out-
side of the Department and the Government. 
SEC. 1066. REPORT ON POTENTIAL THREATS TO MEMBERS 
OF THE ARMED FORCES OF UNITED STATES 
NAVAL FORCES CENTRAL COMMAND AND 
UNITED STATES FIFTH FLEET IN BAHRAIN. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report on the 
threat posed to members of the Armed Forces of the 
United States Naval Forces Central Command and the