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(F) MILESTONE 5.—The time for limited
production and field testing of the system under
a major defense acquisition program.
(G) MILESTONE 6.—The time for initiation
of full-rate production of the system under a
major defense acquisition program.
(6) Requiring the Milestone Decision Authority
for a major defense acquisition program to specify, at
the time of Milestone B approval, or Key Decision
Point B approval, as applicable, the period of time
that will be required to deliver an initial operational
capability to the relevant combatant commanders.
(7) Establishing a materiel solutions process for
addressing identified gaps in critical warfighting ca-
pabilities, under which process the Under Secretary of
Defense for Acquisition, Technology, and Logistics
circulates among the military departments and ap-
propriate Defense Agencies a request for proposals for
technologies and systems to address such gaps.
(8) Modifying the role played by chiefs of staff
of the Armed Forces in the requirements, resource al-
location, and acquisition processes.
(c) CONSULTATION.—In conducting the review re-
quired under subsection (b) for the report required by sub-
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section (a), the Comptroller General shall obtain the views
of the following:
(1) Senior acquisition officials currently serving
in the Department of Defense.
(2) Individuals who formerly served as senior ac-
quisition officials in the Department of Defense.
(3) Participants in previous reviews of the orga-
nization and structure of the Department of Defense
for the acquisition of major weapon systems, includ-
ing the President’s Blue Ribbon Commission on De-
fense Management in 1986.
(4) Other experts on the acquisition of major
weapon systems.
(5) Appropriate experts in the Government Ac-
countability Office.
SEC. 804. INVESTMENT STRATEGY FOR MAJOR DEFENSE AC-
QUISITION PROGRAMS.
(a) REPORT REQUIRED.—Not later than 180 days
after the date of the enactment of this Act, the Secretary
of Defense shall submit to the congressional defense commit-
tees a report on the strategies of the Department of Defense
for the allocation of funds and other resources under major
defense acquisition programs.
(b) ELEMENTS.—The report required by subsection (a)
shall address, at a minimum, Department of Defense orga-
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nizations, procedures, and approaches for the following pur-
poses:
(1) To establish priorities among needed capa-
bilities under major defense acquisition programs,
and to assess the resources (including funds, tech-
nologies, time, and personnel) needed to achieve such
capabilities.
(2) To balance cost, schedule, and requirements
for major defense acquisition programs to ensure the
most efficient use of Department of Defense resources.
(3) To ensure that the budget, requirements, and
acquisition processes of the Department of Defense
work in a complementary manner to achieve desired
results.
(c) ROLE OF TRI-CHAIR COMMITTEE IN RESOURCE
ALLOCATION.—
(1) IN GENERAL.—The report required by sub-
section (a) shall also address the role of the committee
described in paragraph (2) in the resource allocation
process for major defense acquisition programs.
(2) COMMITTEE.—The committee described in
this paragraph is a committee (to be known as the
‘‘Tri-Chair Committee’’) composed of the following:
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(A) The Under Secretary of Defense for Ac-
quisition, Technology, and Logistics, who is one
of the chairs of the committee.
(B) The Vice Chairman of the Joint Chiefs
of Staff, who is one of the chairs of the com-
mittee.
(C) The Director of Program Analysis and
Evaluation, who is one of the chairs of the com-
mittee.
(D) Any other appropriate officials of the
Department of Defense, as jointly agreed upon
by the Under Secretary and the Vice Chairman.
(d) RECOMMENDATIONS.—The report required by sub-
section (a) shall include any recommendations, including
recommendations for legislative action, that the Secretary
considers appropriate to improve the organizations, proce-
dures, and approaches described in the report.
SEC. 805. REPORT ON IMPLEMENTATION OF RECOMMENDA-
TIONS ON TOTAL OWNERSHIP COST FOR
MAJOR WEAPON SYSTEMS.
(a) REPORT REQUIRED.—Not later than 180 days
after the date of the enactment of this Act, the Secretary
of Defense shall submit to the congressional defense commit-
tees a report on the extent of the implementation of the rec-
ommendations set forth in the February 2003 report of the
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Government Accountability Office entitled ‘‘Setting Re-
quirements Differently Could Reduce Weapon Systems’
Total Ownership Costs’’.
(b) ELEMENTS.—The report required by subsection (a)
shall include the following:
(1) For each recommendation described in sub-
section (a) that has been implemented, or that the
Secretary plans to implement—
(A) a summary of all actions that have been
taken to implement such recommendation; and
(B) a schedule, with specific milestones, for
completing the implementation of such rec-
ommendation.
(2) For each recommendation that the Secretary
has not implemented and does not plan to
implement—
(A) the reasons for the decision not to im-
plement such recommendation; and
(B) a summary of any alternative actions
the Secretary plans to take to address the pur-
poses underlying such recommendation.
(3) A summary of any additional actions the
Secretary has taken or plans to take to ensure that
total ownership cost is appropriately considered in
the requirements process for major weapon systems.
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Subtitle B—Amendments Relating
to General Contracting Authori-
ties, Procedures, and Limita-
tions
SEC. 821. ENHANCED COMPETITION REQUIREMENTS FOR
TASK AND DELIVERY ORDER CONTRACTS.
(a) LIMITATION ON SINGLE AWARD CONTRACTS.—Sec-
tion 2304a(d) of title 10, United States Code, is amended—
(1) by redesignating paragraph (3) as para-
graph (4); and
(2) by inserting after paragraph (2) the fol-
lowing new paragraph (3):
‘‘(3) No task or delivery order contract in an amount
estimated to exceed $100,000,000 (including all options)
may be awarded to a single contractor unless the head of
the agency determines in writing that—
‘‘(A) because of the size, scope, or method of per-
formance of the requirement, it would not be practical
to award multiple task or delivery order contracts;
‘‘(B) the task or delivery orders expected under
the contract are so integrally related that only a sin-
gle contractor can reasonably perform the work;
‘‘(C) the contract provides only for firm, fixed
price task orders or delivery orders for—
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‘‘(i) products for which unit prices are es-
tablished in the contract; or
‘‘(ii) services for which prices are estab-
lished in the contract for the specific tasks to be
performed; or
‘‘(D) only one contractor is qualified and capa-
ble of performing the work at a reasonable price to the
government.’’.
(b) ENHANCED COMPETITION FOR ORDERS IN EXCESS
OF $5,000,000.—Section 2304c of such title is amended—
(1) by redesignating subsections (d), (e), and (f)
as subsections (e), (f), and (g), respectively;
(2) by inserting after subsection (c) the following
new subsection (d):
‘‘(d) ENHANCED COMPETITION FOR ORDERS IN EX-
CESS OF $5,000,000.—In the case of a task or delivery order
in excess of $5,000,000, the requirement to provide all con-
tractors a fair opportunity to be considered under sub-
section (b) is not met unless all such contractors are pro-
vided, at a minimum—
‘‘(1) a notice of the task or delivery order that
includes a clear statement of the agency’s require-
ments;
‘‘(2) a reasonable period of time to provide a
proposal in response to the notice;
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‘‘(3) disclosure of the significant factors and sub-
factors, including cost or price, that the agency ex-
pects to consider in evaluating such proposals, and
their relative importance;
‘‘(4) in the case of an award that is to be made
on a best value basis, a written statement docu-
menting the basis for the award and the relative im-
portance of quality and price or cost factors; and
‘‘(5) an opportunity for a post-award debriefing
consistent with the requirements of section 2305(b)(5)
of this title.’’; and
(3) by striking subsection (e), as redesignated by
paragraph (1), and inserting the following new sub-
section (e):
‘‘(e) PROTESTS.—(1) A protest is not authorized in
connection with the issuance or proposed issuance of a task
or delivery order except for—
‘‘(A) a protest on the ground that the order in-
creases the scope, period, or maximum value of the
contract under which the order is issued; or
‘‘(B) a protest of an order valued in excess of
$5,000,000.
‘‘(2) Notwithstanding section 3556 of title 31, the
Comptroller General of the United States shall have exclu-
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sive jurisdiction of a protest authorized under paragraph
(1)(B).’’.
(c) EFFECTIVE DATES.—
(1) SINGLE
AWARD
CONTRACTS.—The amend-
ments made by subsection (a) shall take effect on the
date that is 60 days after the date of the enactment
of this Act, and shall apply with respect to any con-
tract awarded on or after such date.
(2) ORDERS
IN
EXCESS
OF
$5,000,000.—The
amendments made by subsection (b) shall take effect
on the date that is 60 days after the date of the enact-
ment of this Act, and shall apply with respect to any
task or delivery order awarded on or after such date.
SEC. 822. CLARIFICATION OF RULES REGARDING THE PRO-
CUREMENT OF COMMERCIAL ITEMS.
(a) TREATMENT OF SUBSYSTEMS, COMPONENTS, AND
SPARE PARTS AS COMMERCIAL ITEMS.—
(1) IN
GENERAL.—Section 2379 of title 10,
United States Code, is amended—
(A) by striking subsection (b) and inserting
the following new subsection (b):
‘‘(b) TREATMENT OF SUBSYSTEMS AS COMMERCIAL
ITEMS.—A subsystem of a major weapon system shall be
treated as a commercial item and purchased under proce-
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dures established for the procurement of commercial items
only if—
‘‘(1) the subsystem is intended for a major weap-
on system that is being purchased, or has been pur-
chased, under procedures established for the procure-
ment of commercial items in accordance with the re-
quirements of subsection (a);
‘‘(2) the Secretary of Defense determines that—
‘‘(A) the subsystem is a commercial item, as
defined in section 4(12) of the Office of Federal
Procurement Policy Act (41 U.S.C. 403(12));
and
‘‘(B) the treatment of the subsystem as a
commercial item is necessary to meet national
security objectives; or
‘‘(3) the contractor demonstrates that it has sold,
leased, or licensed the subsystem or an item that is
the same as the subsystem, but for modifications de-
scribed in subparagraphs (B) and (C) of section 4(12)
of the Office of Federal Procurement Policy Act, in
significant quantities to the general public.’’;
(B) by redesignating subsections (c) and (d)
as subsections (e) and (f), respectively; and
(C) by inserting after subsection (b) the fol-
lowing new subsections (c) and (d):
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‘‘(c) TREATMENT OF COMPONENTS AND SPARE PARTS
AS COMMERCIAL ITEMS.—A component or spare part for
a major weapon system may be treated as a commercial
item, and purchased under procedures established for the
procurement of commercial items, only if—
‘‘(1) the component or spare part is intended
for—
‘‘(A) a major weapon system that is being
purchased, or has been purchased, under proce-
dures established for the procurement of commer-
cial items in accordance with the requirements of
subsection (a); or
‘‘(B) a subsystem of a major weapon system
that is being purchased, or has been purchased,
under procedures established for the procurement
of commercial items in accordance with the re-
quirements of subsection (b); or
‘‘(2) the contractor demonstrates that it has sold,
leased, or licensed the component or spare part, or an
item that is the same as the component or spare part,
but for modifications described in subparagraphs (B)
and (C) of section 4(12) of the Office of Federal Pro-
curement Policy Act, in significant quantities to the
general public.
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‘‘(d) PRICE INFORMATION.—In the case of any major
weapon system, subsystem, component, or spare part pur-
chased under procedures established for the procurement of
commercial items under the authority of this section, the
contractor shall provide data other than certified cost or
pricing data, including information on prices at which the
same item or similar items have previously been sold to the
general public, that is adequate for evaluating, through
price analysis, the reasonableness of the price of the con-
tract, subcontract, or modification of the contract or sub-
contract pursuant to which such major weapon system, sub-
system, component or spare part, as the case may be, will
be purchased.’’.
(2) CONFORMING
AMENDMENT
TO
TECHNICAL
DATA PROVISION.—Section 2321(f)(2) of such title is
amended by striking ‘‘(whether or not under a con-
tract for commercial items)’’ and inserting ‘‘(other
than technical data for a subsystem, component, or
spare part that is determined to be a commercial item
in accordance with the requirements of section 2379
of this title)’’.
(b) SALES OF COMMERCIAL ITEMS TO NONGOVERN-
MENTAL ENTITIES.—Not later than 180 days after the date
of the enactment of this Act, the Secretary of Defense shall
modify the regulations of the Department of Defense on the
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procurement of commercial items in order to clarify that
the terms ‘‘general public’’ and ‘‘nongovernmental entities’’
in such regulations do not include the following:
(1) The Federal Government or a State, local, or
foreign government.
(2) A contractor or subcontractor acting on be-
half of the Federal Government or a State, local, or
foreign government.
(c) HARMONIZATION OF THRESHOLDS FOR COST OR
PRICING DATA.—Section 2306a(b)(3)(A) of title 10, United
States Code, is amended by striking ‘‘$500,000’’ and insert-
ing ‘‘the amount specified in subsection (a)(1)(A)(i), as ad-
justed from time to time under subsection (a)(7),’’.
SEC. 823. CLARIFICATION OF RULES REGARDING THE PRO-
CUREMENT OF COMMERCIAL SERVICES.
Notwithstanding section 8002(d) of the Federal Acqui-
sition Streamlining Act of 1994 (41 U.S.C. 264 note), the
Secretary of Defense shall modify the regulations of the De-
partment of Defense on procurements for or on behalf of
the Department of Defense in order to prohibit the use of
time and materials contracts or labor-hour contracts to pur-
chase as commercial items any category of commercial serv-
ices other than the following:
(1) Commercial services procured for support of
a commercial item, as described in section 4(12)(E)
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of the Office of Federal Procurement Policy Act (41
U.S.C. 403(12)(E)).
(2) Emergency repair services.
SEC. 824. MODIFICATION OF COMPETITION REQUIREMENTS
FOR PURCHASES FROM FEDERAL PRISON IN-
DUSTRIES.
(a) 
MODIFICATION
OF
COMPETITION
REQUIRE-
MENTS.—
(1) IN
GENERAL.—Section 2410n of title 10,
United States Code, is amended by striking sub-
sections (a) and (b) and inserting the following new
subsections (a) and (b):
‘‘(a) PRODUCTS FOR WHICH FEDERAL PRISON INDUS-
TRIES DOES NOT HAVE SIGNIFICANT MARKET SHARE.—
(1) Before purchasing a product listed in the latest edition
of the Federal Prison Industries catalog under section
4124(d) of title 18 for which Federal Prison Industries does
not have a significant market share, the Secretary of De-
fense shall conduct market research to determine whether
the product is comparable to products available from the
private sector that best meet the needs of the Department
in terms of price, quality, and time of delivery.
‘‘(2) If the Secretary determines that a Federal Prison
Industries product described in paragraph (1) is not com-
parable in price, quality, or time of delivery to products
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of the private sector that best meets the needs of the Depart-
ment in terms of price, quality, and time of delivery, the
Secretary shall use competitive procedures for the procure-
ment of the product, or shall make an individual purchase
under a multiple award contract in accordance with the
competition requirements applicable to such contract. In
conducting such a competition, the Secretary shall consider
a timely offer from Federal Prison Industries.
‘‘(b) PRODUCTS FOR WHICH FEDERAL PRISON INDUS-
TRIES HAS SIGNIFICANT MARKET SHARE.—(1) The Sec-
retary of Defense may purchase a product listed in the lat-
est edition of the Federal Prison Industries catalog for
which Federal Prison Industries has a significant market
share only if the Secretary uses competitive procedures for
the procurement of the product or makes an individual pur-
chase under a multiple award contract in accordance with
the competition requirements applicable to such contract.
In conducting such a competition, the Secretary shall con-
sider a timely offer from Federal Prison Industries.
‘‘(2) For purposes of this subsection, Federal Prison
Industries shall be treated as having a significant share of
the market for a product if the Secretary, in consultation
with the Administrator of Federal Procurement Policy, de-
termines that the Federal Prison Industries’ share of the
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Department of Defense market for the category of products
including such product is greater than 5 percent.’’.
(2) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect 60 days after the date
of the enactment of this Act.
(b) LIST OF PRODUCTS FOR WHICH FEDERAL PRISON
INDUSTRIES HAS SIGNIFICANT MARKET SHARE.—
(1) INITIAL LIST.—Not later than 60 days after
the date of the enactment of this Act, the Secretary of
Defense shall publish a list of product categories for
which Federal Prison Industries’ share of the Depart-
ment of Defense market is greater than 5 percent,
based on the most recent fiscal year for which data
is available.
(2) MODIFICATION.—The Secretary may modify
the list published under paragraph (1) at any time
if the Secretary determines that new data require
adding a product category to the list or omitting a
product category from the list.
(3) CONSULTATION.—The Secretary shall carry
out this subsection in consultation with the Adminis-
trator for Federal Procurement Policy.
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SEC. 825. FIVE-YEAR EXTENSION OF AUTHORITY TO CARRY
OUT CERTAIN PROTOTYPE PROJECTS.
Section 845(i) of the National Defense Authorization
Act for Fiscal Year 1994 (10 U.S.C. 2371 note) is amended
by striking ‘‘September 30, 2008’’ and inserting ‘‘September
30, 2013’’.
SEC. 826. MULTIYEAR PROCUREMENT AUTHORITY FOR
ELECTRICITY 
FROM 
RENEWABLE 
ENERGY
SOURCES.
(a) MULTIYEAR PROCUREMENT AUTHORIZED.—Chap-
ter 141 of title 10, United States Code, is amended by add-
ing at the end the following new section:
‘‘§ 2410q. Multiyear procurement authority: purchase
of 
electricity 
from 
renewable 
energy
sources
‘‘(a) MULTIYEAR CONTRACTS AUTHORIZED.—Subject
to subsection (b), the Secretary of Defense may enter into
contracts for a period not to exceed 10 years for the pur-
chase of electricity from sources of renewable energy, as that
term is defined in section 203(b)(2) of the Energy Policy
Act of 2005 (42 U.S.C. 15852(b)(2)).
‘‘(b) LIMITATIONS ON CONTRACTS FOR PERIODS IN
EXCESS OF FIVE YEARS.—The Secretary may exercise the
authority in subsection (a) to enter a contract for a period
in excess of five years only if the Secretary determines, on
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the basis of a business case prepared by the Department
of Defense that—
‘‘(1) the proposed purchase of electricity under
such contract is cost effective for the Department of
Defense; and
‘‘(2) it would not be possible to purchase elec-
tricity from the source in an economical manner
without the use of a contract for a period in excess
of five years.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 141 of such title is amended by
adding at the end the following new item:
‘‘2410q. Multiyear procurement authority: purchase of electricity from renewable
energy sources.’’.
SEC. 827. PROCUREMENT OF FIRE RESISTANT RAYON FIBER
FOR THE PRODUCTION OF UNIFORMS FROM
FOREIGN SOURCES.
(a) AUTHORITY TO PROCURE.—The Secretary of De-
fense may procure fire resistant rayon fiber for the produc-
tion of uniforms that is manufactured in a foreign country
referred to in subsection (d) if the Secretary determines ei-
ther of the following:
(1) That fire resistant rayon fiber for the pro-
duction of uniforms is not available from sources
within the national technology and industrial base.
(2) That—
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(A) procuring fire resistant rayon fiber
manufactured from suppliers within the national
technology and industrial base would result in
sole-source contracts or subcontracts for the sup-
ply of fire resistant rayon fiber; and
(B) such sole-source contracts or sub-
contracts would not be in the best interests of the
Government or consistent with the objectives of
section 2304 of title 10, United States Code.
(b) SUBMISSION TO CONGRESS.—Not later than 30
days after making a determination under subsection (a),
the Secretary shall submit to Congress a copy of the deter-
mination.
(c) APPLICABILITY TO SUBCONTRACTS.—The authority
under subsection (a) applies with respect to subcontracts
under Department of Defense contracts as well as to such
contracts.
(d) FOREIGN COUNTRIES COVERED.—The authority
under subsection (a) applies with respect to a foreign coun-
try that—
(1) is a party to a defense memorandum of un-
derstanding entered into under section 2531 of this
title; and
(2) does not discriminate against defense items
produced in the United States to a greater degree
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than the United States discriminates against defense
items produced in that country.
(e) NATIONAL TECHNOLOGY AND INDUSTRIAL BASE
DEFINED.—In this section, the term ‘‘national technology
and industrial base’’ has the meaning given that term in
section 2500 of title 10, United States Code.
(f) SUNSET.—The authority under subsection (a) shall
expire on the date that is five years after the date of the
enactment of this Act.
SEC. 828. PROHIBITION ON USE OF EARMARKS TO AWARD
NO BID CONTRACTS AND NONCOMPETITIVE
GRANTS.
(a) PROHIBITION.—
(1) CONTRACTS.—
(A) IN
GENERAL.—Notwithstanding any
other provision of this Act, all contracts awarded
by the Department of Defense to implement new
programs or projects pursuant to congressional
initiatives shall be awarded using competitive
procedures in accordance with the requirements
of section 2304 of title 10, United States Code,
and the Federal Acquisition Regulation.
(B) BID
REQUIREMENT.—Except as pro-
vided in paragraph (3), no contract may be
awarded by the Department of Defense to imple-
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ment a new program or project pursuant to a
congressional initiative unless more than one bid
is received for such contract.
(2) GRANTS.—Notwithstanding any other provi-
sion of this Act, no funds may be awarded by the De-
partment of Defense by grant or cooperative agree-
ment to implement a new program or project pursu-
ant to a congressional initiative unless the process
used to award such grant or cooperative agreement
uses competitive or merit-based procedures to select
the grantee or award recipient. Except as provided in
paragraph (3), no such grant or cooperative agree-
ment may be awarded unless applications for such
grant or cooperative agreement are received from two
or more applicants that are not from the same orga-
nization and do not share any financial, fiduciary, or
other organizational relationship.
(3) WAIVER AUTHORITY.—
(A) IN GENERAL.—If the Secretary of De-
fense does not receive more than one bid for a
contract under paragraph (1)(B) or does not re-
ceive more than one application from unaffili-
ated applicants for a grant or cooperative agree-
ment under paragraph (2), the Secretary may
waive such bid or application requirement if the
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Secretary determines that the new program or
project—
(i) cannot be implemented without a
waiver; and
(ii) will help meet important national
defense needs.
(B) CONGRESSIONAL NOTIFICATION.—If the
Secretary of Defense waives a bid requirement
under subparagraph (A), the Secretary must, not
later than 10 days after exercising such waiver,
notify Congress and the Committees on Armed
Services of the Senate and the House of Rep-
resentatives.
(4) CONTRACTING AUTHORITY.—The Secretary of
Defense may, as appropriate, utilize existing con-
tracts to carry out congressional initiatives.
(b) ANNUAL REPORT.—
(1) IN GENERAL.—Not later than December 31,
2008, and December 31 of each year thereafter, the
Secretary of Defense shall submit to Congress a report
on congressional initiatives for which amounts were
appropriated or otherwise made available for the fis-
cal year ending during such year.
(2) CONTENT.—Each report submitted under
paragraph (1) shall include with respect to each con-
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tract, grant, or cooperative agreement awarded to im-
plement a new program or project pursuant to a con-
gressional initiative—
(A) the name of the recipient of the funds
awarded through such contract or grant;
(B) the reason or reasons such recipient was
selected for such contract or grant; and
(C) the number of entities that competed for
such contract or grant.
(3) PUBLICATION.—Each report submitted under
paragraph (1) shall be made publicly available
through the Internet website of the Department of De-
fense.
(c) CONGRESSIONAL INITIATIVE DEFINED.—In this
section, the term ‘‘congressional initiative’’ means a provi-
sion of law or a directive contained within a committee
report or joint statement of managers of an appropriations
Act that specifies—
(1) the identity of a person or entity selected to
carry out a project, including a defense system, for
which funds are appropriated or otherwise made
available by that provision of law or directive and
that was not requested by the President in a budget
submitted to Congress;
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(2) the specific location at which the work for a
project is to be done; and
(3) the amount of the funds appropriated or oth-
erwise made available for such project.
(d) APPLICABILITY.—This section shall apply with re-
spect to funds appropriated or otherwise made available for
fiscal years beginning after September 30, 2007, and to con-
gressional initiatives initiated after the date of the enact-
ment of this Act.
Subtitle C—Acquisition Policy and
Management
SEC. 841. JOINT REQUIREMENTS OVERSIGHT COUNCIL.
(a) ADVISORS.—Section 181 of title 10, United States
Code, is amended—
(1) by redesignating subsection (c) as subsection
(d); and
(2) by inserting after subsection (b) the following
new subsection (c):
‘‘(c) ADVISORS.—The Under Secretary of Defense for
Acquisition, Technology, and Logistics and the Under Sec-
retary of Defense (Comptroller) shall serve as advisors to
the Council on matters within their authority and exper-
tise.’’.
(b) CONSULTATION.—Section 2433(e)(2) of such title
is amended by inserting ‘‘, after consultation with the Joint
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Requirements Oversight Council regarding program re-
quirements,’’ after ‘‘Secretary of Defense’’ in the matter pre-
ceding subparagraph (A).
SEC. 842. MANAGEMENT STRUCTURE FOR THE PROCURE-
MENT OF CONTRACT SERVICES.
(a) AUTHORITY TO ESTABLISH CONTRACT SUPPORT
ACQUISITION CENTERS.—Subsection (b) of section 2330 of
title 10, United States Code, is amended by adding at the
end the following new paragraph:
‘‘(4) Each senior official responsible for the manage-
ment of acquisition of contract services is authorized to es-
tablish a center (to be known as a ‘Contract Support Acqui-
sition Center’) to act as executive agent for the acquisition
of contract services. Any center so established shall be sub-
ject to the provisions of subsection (c).’’.
(b) DIRECTION, STAFF, AND SUPPORT.—Such section
is further amended—
(1) by redesignating subsection (c) as subsection
(d); and
(2) by inserting after subsection (b) the following
new subsection (c):
‘‘(c) DIRECTION, STAFF, AND SUPPORT OF CONTRACT
SUPPORT ACQUISITION CENTERS.—(1) The Contract Sup-
port Acquisition Center established by a senior official re-
sponsible for the management of acquisition of contract
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services under subsection (b)(4) shall be subject to the direc-
tion, supervision, and oversight of such senior official.
‘‘(2) The Secretary of Defense or the Secretary of the
military department concerned may transfer to a Contract
Support Acquisition Center any personnel under the au-
thority of such Secretary whose principal duty is the acqui-
sition of contract services.
‘‘(3)(A) Except as provided in subparagraph (E), the
Secretary of Defense may accept from the head of a depart-
ment or agency outside the Department of Defense a trans-
fer to any Contract Support Acquisition Center under sub-
section (b)(4) of all or part of any organizational unit of
such other department or agency that is primarily engaged
in the acquisition of contract services if, during the most
recent year for which data is available before such transfer,
more than 50 percent of the contract services acquired by
such organizational unit (as determined on the basis of
cost) were acquired on behalf of the Department of Defense.
‘‘(B) The head of a department or agency outside the
Department of Defense may transfer in accordance with
this paragraph an organizational unit that is authorized
to be accepted under subparagraph (A).
‘‘(C) A transfer under this paragraph may be made
and accepted only pursuant to a memorandum of under-
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standing entered into by the head of the department or
agency making the transfer and the Secretary of Defense.
‘‘(D) A transfer of an organizational unit under this
paragraph shall include the transfer of the personnel of such
organizational unit, the assets of such organizational unit,
and the contracts of such organizational unit, to the extent
provided in the memorandum of understanding governing
the transfer of the unit.
‘‘(E) This paragraph does not authorize a transfer of
the multiple award schedule program of the General Serv-
ices Administration as described in section 2302(2)(C) of
this title.’’.
SEC. 843. SPECIFICATION OF AMOUNTS REQUESTED FOR
PROCUREMENT OF CONTRACT SERVICES.
(a) SPECIFICATION OF AMOUNTS REQUESTED.—The
budget justification materials submitted to Congress in sup-
port of the budget of the Department of Defense for any
fiscal year after fiscal year 2008 shall identify clearly and
separately the amounts requested in each budget account
for the procurement of contract services.
(b) CONTRACT SERVICES DEFINED.—In this section,
the term ‘‘contract services’’—
(1) means services from contractors; but
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(2) excludes services relating to research and de-
velopment and services relating to military construc-
tion.
SEC. 844. DEPARTMENT OF DEFENSE ACQUISITION WORK-
FORCE DEVELOPMENT FUND.
(a) PURPOSE.—The purpose of this section is to ensure
that the Department of Defense acquisition workforce has
the capacity, in both personnel and skills, needed to prop-
erly perform its mission, provide appropriate oversight of
contractor performance, and ensure that the Department re-
ceives the best value for the expenditure of public resources.
(b) DEPARTMENT OF DEFENSE ACQUISITION WORK-
FORCE DEVELOPMENT FUND.—
(1) ESTABLISHMENT.—The Secretary of Defense
shall establish a fund to be known as the ‘‘Depart-
ment of Defense Acquisition Workforce Fund’’ (in this
section referred to as the ‘‘Fund’’) to provide funds for
the recruitment, training, and retention of acquisition
personnel of the Department of Defense for the pur-
pose of this section.
(2) MANAGEMENT.—The Fund shall be managed
by a senior official of the Department of Defense des-
ignated by the Secretary for that purpose.
(c) ELEMENTS.—