(1) The acquisition of services can be extremely 
complex, and program management skills, tools, and 
processes need to be applied to services acquisitions. 
(2) An emphasis on the concept of ‘‘services’’ 
throughout the Federal Acquisition Regulation would 
enhance and support the procurement and project 
management community in all aspects of the acquisi-
tion planning process, including requirements devel-
opment, assessment of reasonableness, and post-award 
management and oversight. 
(b) REQUIREMENT FOR CHANGES TO FAR.—The Fed-
eral Acquisition Regulation shall be revised to provide, 
throughout the Regulation, appropriate references to serv-
ices contracting that are in addition to references provided 
in part 37 (which relates specifically to services con-
tracting). 
(c) DEADLINE.—This section shall be carried out with-
in 270 days after the date of the enactment of this Act. 
SEC. 108. PROCUREMENT OF MILITARY PURPOSE NON-
DEVELOPMENTAL ITEMS. 
(a) IN GENERAL.— 
(1) PROCUREMENT OF MILITARY PURPOSE NON-
DEVELOPMENTAL
ITEMS.—Chapter 141 of title 10, 
United States Code, is amended by adding at the end 
the following new section: 
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‘‘§ 2410r. Military purpose nondevelopmental items 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) The term ‘military purpose nondevelop-
mental item’ means an item— 
‘‘(A) developed exclusively at private ex-
pense; 
‘‘(B) that meets a validated military re-
quirement and for which the United States has 
rights in technical data as prescribed in section 
2320(a)(2)(B) of this title, as certified in writing 
by the responsible program manager; 
‘‘(C) for which delivery of an initial lot of 
production-representative items may be made 
within nine months after contract award; and 
‘‘(D) for which the unit cost is less than 
$10,000,000. 
‘‘(2) The term ‘item’ has the meaning provided 
in section 2302(3) of this title. 
‘‘(b) REQUIREMENTS.—The Secretary of Defense shall 
ensure that, with respect to a contract for the acquisition 
of a military purpose nondevelopmental item, the following 
requirements apply: 
‘‘(1) The contract shall be awarded using com-
petitive procedures in accordance with section 2304 of 
this title. 
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‘‘(2) Certain contract clauses, as specified in reg-
ulations prescribed under subsection (c), shall be in-
cluded in each such contract. 
‘‘(3) The type of contract used shall be a firm, 
fixed price type contract. 
‘‘(c) REGULATIONS.—The Secretary of Defense shall 
prescribe regulations to carry out this section. Such regula-
tions shall be included in regulations of the Department of 
Defense prescribed as part of the Federal Acquisition Regu-
lation. At a minimum, the regulations shall include— 
‘‘(1) a list of contract clauses to be included in 
each contract for the acquisition of a military pur-
pose nondevelopmental item; 
‘‘(2) definitions for the terms ‘developed’ and ‘ex-
clusively at private expense’ that— 
‘‘(A) are consistent with the definitions de-
veloped for such terms in accordance with 
2320(a)(3) of this title; and 
‘‘(B) also exclude an item developed in part 
or in whole with— 
‘‘(i) foreign government funding; or 
‘‘(ii) foreign or Federal Government 
loan financing at nonmarket rates; and 
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