H. R. 5009—207 
(C) that has entered the engineering and manufac-
turing design phase, or equivalent phase. 
(2) The term ‘‘unit cost’’ means, with respect to a covered 
program, as applicable— 
(A) the program acquisition unit cost (as defined in 
section 4351 of title 10, United States Code); or 
(B) the procurement unit cost (as defined in such sec-
tion). 
Subtitle B—Amendments to General Con-
tracting Authorities, Procedures, and 
Limitations 
SEC. 811. REPEAL OF AND MODIFICATION TO CERTAIN DEFENSE 
ACQUISITION LAWS. 
(a) REPEALS.— 
(1) The following provisions of law are hereby repealed: 
(A) Section 805 of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108–136; 117 Stat. 
1542). 
(B) Sections 886 and 892 of the National Defense 
Authorization Act for Fiscal Year 2008 (Public Law 110– 
181; 122 Stat. 266, 270). 
(C) Section 127 of the Ike Skelton National Defense 
Authorization Act for Fiscal Year 2011 (Public Law 111– 
383; 111 Stat. 4161). 
(D) Sections 828 and 1056 of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114– 
92; 129 Stat. 910, 984). 
(E) Sections 235 and 1692 of the National Defense 
Authorization Act for Fiscal Year 2017 (Public Law 114– 
328; 130 Stat. 2064, 2636). 
(2) Section 844 of the National Defense Authorization Act 
for Fiscal Year 2012 (Public Law 112–81; 125 Stat. 1515) is 
amended— 
(A) by striking subsections (a) and (b); and 
(B) in subsection (c), by striking ‘‘(c) ANNUAL REPORT 
ON CONTRACTING IN IRAQ AND AFGHANISTAN.—Section’’ and 
inserting ‘‘Section’’. 
(b) MODIFICATION TO CERTAIN CONTRACTS RELATING TO VES-
SELS, AIRCRAFT, AND COMBAT VEHICLES.—Section 3671(b)(5) of title 
10, United States Code, is amended— 
(1) by striking subparagraphs (B) and (C); 
(2) in subparagraph (A), by striking the semicolon and 
inserting a period; and 
(3) in that matter preceding subparagraph (A), by striking 
the following: ‘‘subsection if—(A) funds’’ and inserting ‘‘sub-
section if funds’’. 
(c) MODIFICATION
TO LIMITATION
ON MILESTONE DECISION 
AUTHORITIES.—Section 4204 of title 10, United States Code, is 
amended by striking subsection (f). 
SEC. 812. MODIFICATION TO LIMITATION ON ACQUISITION OF EXCESS 
SUPPLIES. 
Section 3070 of title 10, United States Code, is amended—
H. R. 5009—208 
(1) in subsection (a), by inserting ‘‘, or in the case of 
ship maintenance, overhaul, and repair, in excess of five years 
of operating stocks’’ after ‘‘in excess of two years of operating 
stocks’’; and 
(2) in subsection (b)(2), by inserting ‘‘, to protect against 
identified risk of supply chain disruptions,’’ before ‘‘or for other 
reasons of national security’’. 
SEC. 813. MODIFICATIONS TO COMPTROLLER GENERAL ASSESSMENT 
OF ACQUISITION PROGRAMS. 
(a) IN GENERAL.—Section 3072 of title 10, United States Code, 
is amended— 
(1) in the heading, by striking ‘‘efforts’’ and inserting 
‘‘initiatives’’; 
(2) by striking ‘‘efforts’’ each place it appears and inserting 
‘‘initiatives’’; 
(3) in subsection (a), by striking ‘‘2026’’ and inserting ‘‘2029’’ 
; and 
(4) in subsection (b)— 
(A) by striking paragraph (2) and redesignating para-
graph (3) as paragraph (2); 
(B) in paragraph (2), as so redesignated, by striking 
the period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new paragraph: 
‘‘(3) other issues as determined appropriate by the Comp-
troller General.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for chapter 
203 of title 10, United States Code, is amended by striking the 
item relating to section 3072 and inserting the following: 
‘‘3072. Comptroller General assessment of acquisition programs and initiatives.’’. 
SEC. 814. MODIFICATIONS TO COMMERCIAL PRODUCT AND COMMER-
CIAL SERVICE DETERMINATIONS. 
Section 3456(c) of title 10, United States Code, is amended 
by striking paragraph (1) and inserting the following paragraph: 
‘‘(1) DETERMINATIONS.—A contract or subcontract for a 
product (including a product without a part number or a product 
with a prior part number that has the same functionality 
as the product had with the prior part number) or service 
acquired using commercial acquisition procedures under part 
12 of the Federal Acquisition Regulation shall serve as a prior 
commercial product or commercial service determination with 
respect to such product or service for purposes of this chapter, 
including when subject to minor modifications, unless— 
‘‘(A) the prior determination was not issued or approved 
by a contracting officer of the Department of Defense; or 
‘‘(B) the senior procurement executive of the military 
department or the Department of Defense as designated 
for purposes of section 1702(c) of title 41 determines in 
writing that it is no longer appropriate to acquire the 
product or service using commercial acquisition proce-
dures.’’. 
SEC. 815. APPLICATION OF RECENT PRICE HISTORY TO COST OR 
PRICING DATA REQUIREMENTS. 
Section 3702(a)(3) of title 10, United States Code, is amended— 
(1) by striking ‘‘An offeror’’ and inserting ‘‘(A) An offeror’’; 
and
H. R. 5009—209 
(2) by adding at the end the following new subparagraph: 
‘‘(B)(i) An offeror for a subcontract (at any tier) of 
a contract under this chapter that is required to submit 
cost or pricing data under subparagraph (A) with respect 
to such subcontract may submit prices paid for the covered 
goods and services of such offeror for such subcontract 
under this clause if— 
‘‘(I) such offeror is a nontraditional defense con-
tractor (as defined in section 3014 of this title); 
‘‘(II) the prices to be submitted are prices that 
were paid for the same goods and services as such 
covered goods and services; and 
‘‘(III) the price of such subcontract is not expected 
to exceed $5,000,000. 
‘‘(ii) The submission of prices paid under clause (i) 
by an offereor with respect to a subcontract shall be deemed 
to be the submission of cost or pricing data by such offeror 
with respect to such subcontract as required by subpara-
graph (A) if a contracting officer of the Department of 
Defense determines that the prices submitted under such 
clause are fair and reasonable based on supported cost 
or pricing data within the last 12 months. 
‘‘(iii) In this subparagraph, the term ‘covered goods 
and services’ means, with respect to an offeror for a sub-
contract (at any tier), the goods and services such offeror 
would provide under such subcontract.’’. 
SEC. 816. MODIFICATIONS TO AUTHORITY TO CARRY OUT CERTAIN 
PROTOTYPE 
PROJECTS 
USING 
OTHER 
TRANSACTION 
AUTHORITY. 
Section 4022(a) of title 10, United States Code, is amended— 
(1) in paragraph (2)— 
(A) in subparagraph (A), by striking ‘‘senior procure-
ment executive for the agency as designated for the purpose 
of section 1702(c) of title 41’’ and inserting ‘‘head of the 
contracting activity’’; and 
(B) in subparagraph (B)(i), by striking ‘‘Under Sec-
retary of Defense for Research and Engineering or the 
Under 
Secretary 
of 
Defense 
for 
Acquisition 
and 
Sustainment’’ and inserting ‘‘senior procurement executive 
for the agency as designated for the purpose of section 
1702(c) of title 41, or, for the Defense Advanced Research 
Projects Agency, the Defense Innovation Unit, or the Mis-
sile Defense Agency, the director of the agency,’’; and 
(2) by amending paragraph (3) to read as follows: 
‘‘(3) The authority of the head of the contracting activity, 
director of the Defense Advanced Research Projects Agency, 
director of the Defense Innovation Unit, director of the Missile 
Defense Agency, or the senior procurement executive, as 
applicable, under paragraph (2) may not be delegated.’’. 
SEC. 817. CLARIFICATION OF OTHER TRANSACTION AUTHORITY FOR 
FOLLOW ON PRODUCTION. 
Section 4022 of title 10, United States Code, is amended— 
(1) in subsection (e), by adding at the end the following 
new paragraph:
H. R. 5009—210 
‘‘(6) The term ‘follow-on production contract or transaction’ 
means a contract or transaction to produce, sustain, or other-
wise implement the results of a successfully completed proto-
type project for continued or expanded use by the Department 
of Defense.’’; and 
(2) in subsection (f)— 
(A) in paragraph (1), by adding at the end the following: 
‘‘A follow-on production award may be provided for in a 
transaction entered into under this section for a prototype 
project, awarded with respect to such a transaction as 
one or more separate awards, or a combination thereof.’’; 
and 
(B) in paragraph (2), by inserting ‘‘, one or more sepa-
rate awards of follow-on production contracts or trans-
actions with respect to a transaction described in such 
paragraph, or a combination thereof,’’ after ‘‘paragraph (1)’’. 
SEC. 818. CLARIFICATION OF OTHER TRANSACTION AUTHORITY FOR 
FACILITY REPAIR. 
(a) IN GENERAL.—Section 4022(i) of title 10, United States 
Code, is amended— 
(1) in paragraph (2)— 
(A) in subparagraph (A), by striking ‘‘except for projects 
carried out for the purpose of repairing a facility,’’; 
(B) by inserting ‘‘(A)’’ before ‘‘In carrying out’’; 
(C) by redesignating subparagraphs (A) and (B) as 
clauses (i) and (ii), respectively; and 
(D) by adding at the end the following new subpara-
graph: 
‘‘(B) The requirements of this paragraph shall not apply 
to projects carried out for the purpose of repairing a facility.’’; 
and 
(2) in paragraph (4)(A), by striking ‘‘September 30, 2025’’ 
and inserting ‘‘September 30, 2030’’. 
(b) APPLICABILITY.—This section and the amendments made 
by this section shall apply with respect to a transaction for a 
prototype project under section 4022(i) of title 10, United States 
Code, entered into on or after the date of the enactment of this 
section. 
SEC. 819. OPEN INTERFACE STANDARDS FOR CONTRACTS OF THE 
DEPARTMENT OF DEFENSE. 
Section 4401 of title 10, United States Code, is amended— 
(1) by redesignating subsection (b) as subsection (c); and 
(2) by inserting after subsection (a) the following: 
‘‘(b) DISCLOSURE REQUIRED.—Not later than one year after 
the date of the enactment of this subsection, the Secretary of 
Defense 
shall 
make 
publicly 
available 
any 
standards 
for 
implementation of the modular open system approaches for con-
tracts, unless the service acquisition executive with respect to a 
specific contract submits to the Secretary a request to not disclose 
such standards and the Secretary approves such request.’’. 
SEC. 820. UPDATES TO EARNED VALUE MANAGEMENT SYSTEM 
REQUIREMENTS. 
Section 827(a) of the National Defense Authorization Act for 
Fiscal Year 2024 (Public Law 118–31; 10 U.S.C. note prec. 4601) 
is amended—
H. R. 5009—211 
(1) by striking ‘‘date of the enactment of this Act’’ and 
inserting ‘‘date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2025’’; and 
(2) by striking paragraphs (2) and (3) and inserting the 
following: 
‘‘(2) increase the contract value threshold associated with 
earned value management system requirements for cost con-
tracts or incentive contracts from $20,000,000 to $50,000,000; 
and 
‘‘(3) increase the contract value threshold associated 
requiring a defense contractor to use an approved earned value 
management system from $50,000,000 to $100,000,000.’’. 
SEC. 821. INCLUSION OF JAPAN AND THE REPUBLIC OF KOREA IN 
CONTESTED LOGISTICS DEMONSTRATION AND PROTO-
TYPING PROGRAM. 
Section 842(h)(2) of the National Defense Authorization Act 
for Fiscal Year 2024 (Public Law 118–31) is amended— 
(1) by redesignating subparagraphs (C), (D), and (E) as 
subparagraphs (D), (F), and (G), respectively; 
(2) by inserting after subparagraph (B) the following new 
subparagraph: 
‘‘(C) Japan;’’; and 
(3) by inserting after subparagraph (D), as redesignated 
by paragraph (1), the following new subparagraph: 
‘‘(E) the Republic of Korea;’’. 
SEC. 822. AVOIDANCE OF USE OF LOWEST PRICE TECHNICALLY 
ACCEPTABLE 
SOURCE 
SELECTION 
CRITERIA 
FOR 
PROCUREMENT OF MUNITIONS RESPONSE SERVICES. 
Section 880(c)(1) of the John S. McCain National Defense 
Authorization Act for Fiscal Year 2019 (41 U.S.C. 3701 note) is 
amended by inserting ‘‘munitions response services,’’ after ‘‘tele-
communications devices and services,’’. 
SEC. 823. USE OF FIXED-PRICE TYPE CONTRACTS FOR CERTAIN SHIP-
BUILDING PROGRAMS. 
Section 818 of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109–364) is amended by 
adding at the end the following new subsection: 
‘‘(g) CONDITIONS WITH RESPECT TO CERTAIN SHIPBUILDING CON-
TRACTS.— 
‘‘(1) LIMITATION.—With respect to a fixed-price type con-
tract for the procurement of shipbuilding associated with a 
major defense acquisition program, the number of ships to 
be procured under such contract, including all options, may 
not be more than two if the scope of the work of such contract 
includes the detail design and the construction of items for 
such a major defense acquisition program. 
‘‘(2) WAIVER.—The Secretary concerned may waive the 
limitation in paragraph (1) if such Secretary submits to the 
congressional defense committees, not later than 30 days after 
issuance of such waiver, a written notification of such waiver 
that includes a certification that the basic and functional design 
of any ship to be procured under a contract described in para-
graph (1) are complete. 
‘‘(3) DEFINITIONS.—In this subsection:
H. R. 5009—212 
‘‘(A) The term ‘basic and functional design’ has the 
meaning given in section 8669c of title 10, United States 
Code. 
‘‘(B) The term ‘construction’ means steel cutting and 
module fabrication, assembly, and outfitting, keel laying, 
and module erection supporting the launch and eventual 
delivery of a completed ship. 
‘‘(C) The term ‘detail design’ means design using com-
puter-aided modeling to enable the generation of work 
instructions for construction of the ship, where such work 
instructions show detailed system information and support 
construction, including guidance for subcontractors and 
suppliers, installation drawings, schedules, material lists, 
and lists of prefabricated materials and parts.’’. 
SEC. 824. EXTENSION OF TEMPORARY AUTHORITY TO MODIFY CER-
TAIN CONTRACTS AND OPTIONS BASED ON THE EFFECTS 
OF INFLATION. 
Subsection (e) of the first section of Public Law 85–804 (50 
U.S.C. 1431(e)) is amended by striking ‘‘December 31, 2024’’ and 
inserting ‘‘December 31, 2025’’. 
Subtitle C—Provisions Relating to 
Workforce Development 
SEC. 831. MODIFICATION TO THE TERM OF APPOINTMENT OF THE 
PRESIDENT OF THE DEFENSE ACQUISITION UNIVERSITY. 
Section 1746(e)(3) of title 10, United States Code, is amended 
by striking the second sentence and inserting the following: ‘‘The 
preceding sentence does not apply to the President of the Defense 
Acquisition University serving on January 1, 2025, who shall serve 
a maximum term of three years beginning on the date of the 
enactment of the National Defense Authorization Act for Fiscal 
Year 2025 without an option for extension of such term.’’. 
SEC. 832. UPDATED ACQUISITION AND SUSTAINMENT TRAINING. 
(a) IN GENERAL.—Subchapter IV of chapter 87 of title 10, 
United States Code, is amended by adding at the end the following 
new section: 
‘‘§ 1749. Field training for acquisition and sustainment 
‘‘(a) TRAINING PROGRAM.—Not later than 180 days after the 
date of the enactment of this section, the Under Secretary for 
Acquisition and Sustainment shall establish a training program 
that supports cross-functional personnel and contractors of the 
Department of Defense involved in any phase of the acquisition 
and sustainment lifecycle in making important decisions with 
respect to acquisition or sustainment, including requirements 
validation, the development of an acquisition strategy, awarding 
contracts, and ongoing management of performance and governance. 
‘‘(b) ELEMENTS.—The training program established under sub-
section (a) shall— 
‘‘(1) create deployable training teams to coach the cross- 
functional personnel and contractors described in subsection 
(a) and facilitate such personnel and contractors successfully
H. R. 5009—213 
completing a phase of an acquisition or sustainment effort 
with the same training team to the maximum extent possible; 
‘‘(2) to the extent practicable, ensure that the same training 
team under paragraph (1) provides the support described under 
such paragraph with respect to a phase of an acquisition or 
sustainment effort until such phase is completed or otherwise 
ends; 
‘‘(3) provide to the cross-functional personnel and contrac-
tors described in subsection (a) short, intermittent lessons on 
innovative acquisition and fielding procedures, flexible con-
tracting frameworks, and business negotiation skills that are 
timed to align the topics of the lessons to relevant activities 
under a phase of an acquisition or sustainment effort; 
‘‘(4) emphasizes— 
‘‘(A) the acquisition of commercial products, commercial 
services, and commercially available off-the-shelf items (as 
such terms are defined in sections 103, 103a, and 104, 
respectively, of title 41); 
‘‘(B) technology procured ‘as-a-service’ or as a consump-
tion-based solution (as defined in section 834 of the William 
M. (Mac) Thornberry National Defense Authorization Act 
for Fiscal Year 2021 (10 U.S.C. 4571 note)); and 
‘‘(C) using the middle tier acquisition pathways under 
section 3602 of this title and the pathways under section 
3603 of this title; and 
‘‘(5) include a process for collecting feedback on the training 
program and performance of the training teams to improve 
the training program. 
‘‘(c) TRAINING TEAM REQUIREMENTS.—Each training team cre-
ated under the training program— 
‘‘(1) include at not less than one individual from the private 
sector or academia with expertise in conducting commercial 
transactions; and 
‘‘(2) has excellent facilitation skills and can coach the cross- 
functional personnel and contractors described in subsection 
(a) on applying the best practices to the formulation of acquisi-
tion and sustainment programs and contracts; 
‘‘(d) CERTIFICATION.—The Under Secretary of Defense for 
Acquisition and Sustainment shall ensure that each member of 
the acquisition workforce who participates in the training program 
established under subsection (a) can meet up to 80 hours of a 
continuous education requirement established under section 1723 
of this title by participating in the training program. 
‘‘(e) PILOT PROGRAM.—During fiscal year 2025, the Secretary 
of each military department shall carry out not less than one 
pilot program— 
‘‘(1) under which the military department shall receive 
support under the training program established under sub-
section (a) with respect to acquisition and sustainment efforts 
of high importance or urgency to the military department; 
and 
‘‘(2) which the Under Secretary for Acquisition and 
Sustainment shall use to develop the training material and 
procedures for the training program. 
‘‘(f) FUNDING REQUIREMENTS.—The Under Secretary for Acquisi-
tion and Sustainment is authorized to use funds available for the
H. R. 5009—214 
Defense Acquisition University for civilian faculty members, con-
tracts, and associated travel and expenses to carry out the training 
program established in (a) starting in fiscal year 2025, and for 
fiscal years 2027 through fiscal year 2031— 
‘‘(1) not less than 25 percent of civilian faculty members 
authorized under section 1746 of this title shall be detailed 
on a reimbursable basis to the training program established 
in (a) for a minimum of half of their time; and 
‘‘(2) not less than 25 percent of all contract or agreement 
obligations in support of Defense Acquisition University shall 
be reserved for the training program established in (a), 
including the training of civilian faculty members to facilitate 
programs under the training program. 
‘‘(g) REPORT.—Not later than November 1, 2026, the Under 
Secretary for Acquisition and Sustainment shall provide a report 
to the Committees on Armed Services of the Senate and House 
of Representatives on the training program required under sub-
section (a), including— 
‘‘(1) the number and qualifications of civilian faculty mem-
bers detailed to the training program under subsection (f)(1), 
including any training requirements they receive to facilitate 
programs under the training program; 
‘‘(2) an identification of contractor or university support 
for the training program pursuant to subsection (f)(2); 
‘‘(3) a budget for the training program that meets the 
requirements of subsection (f); 
‘‘(4) the status and success of the pilot program; and 
‘‘(5) any additional information or recommendations with 
respect to the training program that the Under Secretary of 
Defense for Acquisition and Sustainment determines appro-
priate.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for chapter 
87 of title 10, United States Code, is amended by inserting after 
the item relating to section 1748 the following new item: 
‘‘1749. Field training for acquisition and sustainment.’’. 
SEC. 833. EXTENSION OF DEMONSTRATION PROJECT RELATING TO 
CERTAIN ACQUISITION PERSONNEL MANAGEMENT POLI-
CIES AND PROCEDURES. 
Section 1762(g) of title 10, United States Code, is amended 
by striking ‘‘December 31, 2026’’ and inserting ‘‘December 31, 2031’’. 
SEC. 834. PERFORMANCE INCENTIVES RELATED TO COMMERCIAL 
PRODUCT AND COMMERCIAL SERVICE DETERMINATIONS. 
Section 3453(b) of title 10, United States Code, is amended— 
(1) in paragraph (5), by striking ‘‘and’’ at the end; 
(2) in paragraph (6), by striking the period at the end 
and inserting ‘‘; and’’; and 
(3) by adding the following new paragraph: 
‘‘(7) establish criteria in performance evaluations for appro-
priate personnel to reward risk-informed decisions that maxi-
mize the acquisition of commercial products, commercial serv-
ices, or nondevelopmental items other than commercial prod-
ucts.’’. 
SEC. 835. MODIFICATION TO EXTRAMURAL ACQUISITION INNOVATION 
AND RESEARCH ACTIVITIES. 
Section 4142 of title 10, United States Code, is amended—
H. R. 5009—215 
(1) by striking subsection (c); 
(2) by redesignating subsections (d), (e), and (f) as sub-
sections (c), (d), and (e), respectively; 
(3) in subsection (a), by striking ‘‘subsection (d)’’ and 
inserting ‘‘subsection (c)’’; and 
(4) in subsection (e), as so redesignated, by striking 
‘‘Director’’ and inserting ‘‘Under Secretary of Defense for 
Acquisition and Sustainment’’. 
SEC. 836. PROHIBITION ON THE TRANSFER OF CERTAIN DATA ON 
EMPLOYEES OF THE DEPARTMENT OF DEFENSE TO THIRD 
PARTIES. 
Section 4662 of title 10, United States Code, is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘and that would be permissible pursu-
ant to statute or guidance from the Director of the Office 
of Management and Budget.’’ and inserting a period; and 
(B) by inserting at the end the following: ‘‘This provi-
sion does not apply in circumstances where the transfer 
of such data would otherwise be authorized by law.’’; 
(2) by amending subsection (b) to read as follows: 
‘‘(b) WAIVER.—The Secretary of Defense may waive the require-
ments of subsection (a) with respect to the sale, licensing, or other 
transfer of covered individually identifiable Department employee 
data if the Secretary determines that such waiver— 
‘‘(1) appropriately considers the privacy risks to the 
employee of the Department of Defense to which such data 
relates; and 
‘‘(2) is necessary in the interest of national security.’’; 
(3) by redesignating subsection (c) as subsection (d); 
(4) by amending paragraph (1) of subsection (d), as so 
redesignated, to read as follows: 
‘‘(1) The term ‘covered individually identifiable Department 
employee data’ means individually identifiable Department 
employee data obtained by a contractor or subcontractor 
described in subsection (a).’’; and 
(5) by inserting after subsection (b) the following new sub-
section: 
‘‘(c) REPORT.—Not later than January 15, 2026, and annually 
thereafter for four years, the Under Secretary of Defense for Acquisi-
tion and Sustainment, shall submit to the congressional defense 
committees a report on the use of the waiver authority under 
subsection (b) for the fiscal year preceding the date of submission 
of the report. The report shall include, for each use of the waiver— 
‘‘(1) the specific justification for providing the waiver; 
‘‘(2) an identification of the contractor or subcontractor 
that is the subject of the waiver request; and 
‘‘(3) an identification of the purpose of the sale, licensing, 
or transfer of covered individually identifiable Department 
employee data that is the subject of the waiver request.’’. 
SEC. 837. MODIFICATIONS TO CONTRACTOR EMPLOYEE PROTECTIONS 
FROM REPRISAL FOR DISCLOSURE OF CERTAIN INFORMA-
TION. 
Section 4701(c) of title 10, United States Code, is amended— 
(1) by redesignating paragraphs (2), (3), (4), (5), (6), and 
(7) as paragraphs (3), (4), (5), (6), (7), and (8), respectively;
H. R. 5009—216 
(2) by inserting after paragraph (1) the following new para-
graph: 
‘‘(2) Not later than 30 days after receiving an Inspector General 
report pursuant to subsection (b), the head of the agency concerned 
shall notify the complainant and the Inspector General, in writing, 
of either the actions ordered or the decision to deny relief. After 
such notification, if the head of the agency concerned changes 
the actions ordered or the decision to deny relief, the head of 
the agency concerned shall notify the complainant and the Inspector 
General, in writing, of the change not later than 30 days after 
the change occurs.’’; 
(3) in paragraph (3), as redesignated by paragraph (1) 
of this section, by striking ‘‘paragraph (b)(2)(B)’’ and inserting 
‘‘paragraph (2)(B) of such subsection’’; and 
(4) in paragraph (4), as so redesignated, by striking ‘‘para-
graph (2)’’ and inserting ‘‘paragraph (3)’’. 
SEC. 838. DETAIL AUTHORITY FOR DEFENSE ADVANCED RESEARCH 
PROJECTS AGENCY TO PROVIDE TECHNOLOGY TRANSI-
TION SUPPORT. 
Section 806 of the National Defense Authorization Act for Fiscal 
Year 2024 (Public Law 118–31; 10 U.S.C. 1701 note) is amended— 
(1) by redesignating subsections (d) and (e) as subsections 
(e) and (f), respectively; and 
(2) by inserting after subsection (c) the following new sub-
section: 
‘‘(d) DARPA DETAILEES AUTHORIZED.— 
‘‘(1) AUTHORITY.—The Director of the Defense Advanced 
Research Projects Agency, upon a request from the Principal 
Technology Transition Advisor of a military department, may 
detail personnel of the Agency to such military department 
for a period not to exceed one year to provide technology transi-
tion support for technology of the Agency that is to be acquired 
by such military department. 
‘‘(2) EXTENSION.—The Under Secretary of Defense for 
Research and Engineering may extend a detail under paragraph 
(1) for a period of not more than 6 additional months.’’. 
SEC. 839. EMPLOYMENT TRANSPARENCY REGARDING INDIVIDUALS 
WHO PERFORM WORK IN, FOR, OR ARE SUBJECT TO THE 
LAWS OR CONTROL OF THE PEOPLE’S REPUBLIC OF 
CHINA. 
Section 855 of the National Defense Authorization Act for Fiscal 
Year 2022 (Public Law 117–81; 10 U.S.C. 4651 note prec.) is 
amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by inserting ‘‘, for, or are subject 
to the laws or control of’’ after ‘‘perform work in’’; and 
(B) in paragraph (3)— 
(i) by redesignating subparagraphs (A) and (B) 
as clauses (i) and (ii) and moving such clauses, as 
so redesignated, two ems to the right; 
(ii) by striking ‘‘If a covered entity’’ and inserting 
‘‘(A) IN GENERAL.—If a covered company’’; 
(iii) by inserting ‘‘, for, or are subject to the laws 
or control of’’ after ‘‘any individual who will perform 
work in’’;
H. R. 5009—217 
(iv) in clause (i), as so redesignated, by striking 
‘‘perform work in the People’s Republic of China’’ and 
inserting ‘‘perform such work’’; and 
(v) in clause (ii), as so redesignated— 
(I) by inserting ‘‘and each other location’’ after 
‘‘China’’; and 
(II) by striking ‘‘performed.’’ and inserting the 
following: ‘‘performed; and 
‘‘(iii) whether an agency or instrumentality of the 
People’s Republic of China or any other covered entity 
has requested access to data or otherwise acquired 
data from the covered entity required to make a disclo-
sure under paragraph (1) or (2) pursuant to any law 
or regulation of the People’s Republic of China. 
‘‘(B) ADDITIONAL
DISCLOSURE
OF
INFORMATION
AND 
ADDITIONAL MEASURES REGARDING CERTAIN ENTITIES.— 
‘‘(i) IN GENERAL.—If a covered entity performing 
a covered contract for services dealing with commercial 
computer software or noncommercial computer soft-
ware and is required to make a disclosure under para-
graph (1) or (2), such covered entity shall— 
‘‘(I) describe the process for disclosing a cyber-
security vulnerability, if such covered entity is also 
required to disclose any cybersecurity vulnerability 
to the Ministry of Industry and Information Tech-
nology or any other agency or instrumentality of 
the People’s Republic of China; and 
‘‘(II) provide any information related to how 
a United States affiliate is notified of a vulner-
ability described in subclause (I). 
‘‘(ii) ISSUANCE OF REGULATIONS.—Not later than 
180 days after the date of the enactment of this 
subparagraph, the Secretary shall revise the Defense 
Federal 
Acquisition 
Regulation 
Supplement 
to 
require— 
‘‘(I) a covered entity to require that an indi-
vidual or entity performing work on a covered 
contract in the People’s Republic of China on behalf 
of the covered entity to notify the covered entity 
within 48 hours of such individual or entity 
reporting any software vulnerability related to 
such covered contract to the Ministry of Industry 
and Information Technology or any other agency 
or instrumentality of the People’s Republic of 
China; and 
‘‘(II) the covered entity to retain and furnish 
to 
the 
Department 
of 
Defense 
information 
regarding any cybersecurity vulnerability reported 
to the Ministry of Industry and Information Tech-
nology or any other agency or instrumentality of 
the People’s Republic of China with respect to 
which the covered entity received a notice pursuant 
to subclause (I).’’; and 
(2) in subsection (d)— 
(A) in paragraph (1), by striking ‘‘with a value in 
excess of $5,000,000, excluding’’ and inserting ‘‘for, or
H. R. 5009—218 
including, any information and communications technology, 
including’’; and 
(B) in paragraph (2), by inserting ‘‘, for, or subject 
to the laws or control of’’ after ‘‘a covered contract in’’. 
SEC. 840. DESIGNATION OF PROGRAM EXECUTIVE OFFICE FOR 
ACQUISITION OF OPEN-SOURCE INTELLIGENCE TOOLS 
FOR ARMY. 
(a) IN GENERAL.—The Secretary of the Army may designate 
an existing program executive office within the Army to be respon-
sible for the acquisition of open-source intelligence tools for the 
Army. 
(b) RESPONSIBILITIES.—If the Secretary of the Army designates 
an existing program office under subsection (a), that office shall 
be responsible for the selection, procurement, and evaluation of 
open-source intelligence tools for the Army. 
(c) OPEN-SOURCE INTELLIGENCE TOOLS DEFINED.—In this sec-
tion, the term ‘‘open-source intelligence tools’’ has the meaning 
given that term in section 430b(d) of title 10, United States Code. 
Subtitle D—Provisions Relating to Supply 
Chains and Domestic Sourcing 
SEC. 841. ENHANCING REQUIREMENTS FOR INFORMATION RELATING 
TO SUPPLY CHAIN RISK. 
Section 3252 of title 10, United States Code, is amended— 
(1) in subsection (b)— 
(A) by amending paragraph (1) to read as follows: 
‘‘(1) consulting with procurement or other relevant officials 
of the covered agency;’’; 
(B) in paragraph (2), by striking ‘‘with the concurrence 
of the Under Secretary of Defense for Acquisition and 
Sustainment,’’; and 
(C) in paragraph (3)— 
(i) by amending subparagraph (A) to read as fol-
lows: 
‘‘(A) a summary of the risk assessment that serves 
as the basis for the written determination required by 
paragraph (2); and’’; 
(ii) by striking subparagraphs (B) and (C); and 
(iii) by redesignating subparagraph (D) as subpara-
graph (B); 
(2) by striking subsection (c); and 
(3) by redesignating subsections (d) and (e) as subsections 
(c) and (d), respectively. 
SEC. 842. DOMESTIC PRODUCTION OF STAINLESS STEEL FLATWARE 
AND DINNERWARE. 
(a) IN GENERAL.—Section 4862(b) of title 10, United States 
Code, is amended by inserting after paragraph (2) the following 
new paragraphs: 
‘‘(3) Stainless steel flatware. 
‘‘(4) Dinnerware.’’. 
(b) EFFECTIVE DATE.—Paragraphs (3) and (4) of section 4862(b) 
of title 10, United States Code, as added by subsection (a), shall 
take effect on January 1, 2026.
H. R. 5009—219 
(c) SUNSET.—Paragraphs (3) and (4) of section 4862(b) of title 
10, United States Code, as added by subsection (a), are repealed 
effective January 1, 2029. 
SEC. 843. CLARIFICATION OF EXCEPTION TO BERRY AMENDMENT 
REQUIREMENTS FOR PROCUREMENT OF VESSELS IN FOR-
EIGN WATERS. 
Section 4862(d)(2) of title 10, United States Code, is amended 
by inserting ‘‘, or for,’’ after ‘‘Procurements by’’. 
SEC. 844. TECHNICAL EDITS TO SOURCING REQUIREMENTS FOR STRA-
TEGIC MATERIALS AND SENSITIVE MATERIALS. 
(a) STRATEGIC MATERIALS.—Section 4863 of title 10, United 
States Code, is amended— 
(1) in subsection (b)— 
(A) in paragraph (1), by inserting ‘‘at a reasonable 
price’’ after ‘‘when needed’’; and 
(B) by adding at the end the following new paragraph: 
‘‘(3) The authority in subsection (b)(1)— 
‘‘(A) may be delegated to the head of contracting activity 
for the relevant component for an exception for a single acquisi-
tion program; 
‘‘(B) may be delegated to the senior acquisition executive 
of a military department for an exception for multiple programs 
within such military department; and 
‘‘(C) may be delegated to the Undersecretary of Defense 
for Acquisition and Sustainment for an exception for more 
than one military department.’’; 
(2) in subsection (c)(1)— 
(A) by striking ‘‘in support of combat operations or’’; 
and 
(B) by inserting ‘‘or for use outside of the United 
States’’ after ‘‘contingency operations’’; and 
(3) in subsection (k)— 
(A) in paragraph (1), by inserting ‘‘or the Secretary 
of the military department concerned’’ after ‘‘Secretary of 
Defense’’; and 
(B) by amending subparagraph (2)(A) to read as fol-
lows: 
‘‘(A) may be delegated— 
‘‘(i) to the senior acquisition executive of the military 
department concerned for a waiver for one or more acquisi-
tion programs within the such military department; and 
‘‘(ii) to the Deputy Secretary of Defense or the Under 
Secretary of Defense for Acquisition and Sustainment for 
a waiver applicable to more than one military department;’’. 
(b) SENSITIVE MATERIALS.—Section 4872 of title 10, United 
States Code, is amended— 
(1) in subsection (a), in the matter preceding paragraph 
(1), by inserting ‘‘or (e)’’ after ‘‘subsection (c)’’; 
(2) in subsection (c)— 
(A) in paragraph (1), by inserting ‘‘or the Secretary 
of the military department concerned’’ after ‘‘Secretary of 
Defense’’; and 
(B) in paragraph (2), by inserting ‘‘in support of contin-
gency operations or’’ before ‘‘for use outside’’; 
(3) by redesignating subsection (d) as subsection (f); and
H. R. 5009—220 
(4) by inserting after subsection (c) the following new sub-
sections: 
‘‘(d) DELEGATION.—The authorities in subsection (c)— 
‘‘(1) may be delegated to the head of contracting activity 
for the relevant component for an exception for a single acquisi-
tion program; 
‘‘(2) may be delegated to the senior acquisition executive 
of a military department for an exception for multiple programs 
within such military department; and 
‘‘(3) may be delegated to the Undersecretary of Defense 
for Acquisition and Sustainment for an exception for more 
than one military department. 
‘‘(e) NATIONAL SECURITY WAIVER.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection (a), the Sec-
retary of Defense of the Secretary or the Secretary of the 
military department concerned, may accept the delivery of an 
end item containing covered material manufactured in a cov-
ered nation if the Secretary determines in writing that accept-
ance of such end item is necessary to the national security 
interests of the United States. 
‘‘(2) DELEGATION.—A written determination under para-
graph (1)— 
‘‘(A) may be delegated— 
‘‘(i) to the senior acquisition executive of the mili-
tary department concerned for a waiver for one or 
more acquisition programs within such military depart-
ment; and 
‘‘(ii) to the Deputy Secretary of Defense or the 
Under Secretary of Defense for Acquisition and 
Sustainment for a waiver applicable to more than one 
military department; 
‘‘(B) shall specify the quantity of end items to which 
the waiver applies and the time period over which the 
waiver applies; and 
‘‘(C) shall be provided to the congressional defense 
committees prior to making such a determination (except 
that in the case of an urgent national security requirement, 
such certification may be provided to the defense commit-
tees up to 7 days after it is made).’’. 
SEC. 845. AMENDMENT TO REQUIREMENT TO BUY STRATEGIC MATE-
RIALS CRITICAL TO NATIONAL SECURITY FROM AMERICAN 
SOURCES. 
Section 4863 of title 10, United States Code, is amended— 
(1) in subsection (d)(1)(B), by inserting ‘‘qualifying’’ before 
‘‘foreign’’; and 
(2) in subsection (m), by adding at the end the following 
new paragraph: 
‘‘(11) The term ‘qualifying foreign government’ means the 
government of a country with which the United States has 
in effect a reciprocal defense procurement agreement or memo-
randum of understanding entered into pursuant to section 4851 
of this title.’’. 
SEC. 846. MODIFICATION TO MISCELLANEOUS LIMITATIONS ON THE 
PROCUREMENT OF GOODS OTHER THAN UNITED STATES 
GOODS. 
Section 4864(k) of title 10, United States Code, is amended—
H. R. 5009—221 
(1) by striking the second sentence; 
(2) by inserting ‘‘(1)’’ before ‘‘Subsection (a)(3)’’; and 
(3) by adding at the end the following new paragraph: 
‘‘(2) For purposes of this subsection, the term ‘auxiliary ship’— 
‘‘(A) with respect to a contract entered into after December 
20, 2019, does not include an icebreaker or a special mission 
ship; and 
‘‘(B) with respect to a contract entered into on or after 
the date of the enactment of the National Defense Authorization 
Act for Fiscal Year 2025, includes an icebreaker or a special 
mission ship, unless the Secretary of the Navy certifies to 
Congress that the forecasted sales over a four-year period of 
large medium-speed diesel engines manufactured in the 
national technology and industrial base will not fall below 
the minimum sustaining rate for plant operations of a dimin-
ishing manufacturing source.’’. 
SEC. 847. INCLUSION OF RECYCLED AND REUSED MINERALS AND 
METALS IN PREFERENCE FOR SOURCING OF STRATEGIC 
AND CRITICAL MATERIALS. 
Section 848(b) of the William M. (Mac) Thornberry National 
Defense Authorization Act for Fiscal Year 2021 (Public Law 116– 
283; 134 Stat. 3769; 10 U.S.C. 4811 note) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (B), by inserting ‘‘, including proc-
essing of strategic and critical materials derived from 
recycled or reused minerals or metals,’’ after ‘‘United 
States’’; and 
(B) in subparagraph (C), by inserting ‘‘, including such 
materials derived from recycled or reused minerals or 
metals,’’ after ‘‘materials’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (C), by striking ‘‘; and’’ and 
inserting a semicolon; 
(B) by redesignating subparagraph (D) as subpara-
graph (E); and 
(C) by inserting after subparagraph (C) the following 
new subparagraph (D): 
‘‘(D) the development of cost-effective sources of supply 
of strategic and critical materials derived from recycled 
or reused minerals or metals; and’’. 
SEC. 848. DOMESTIC NONAVAILABILITY DETERMINATIONS LIST. 
(a) IN GENERAL.—Not later than 180 days after the date of 
the enactment of this Act, the Under Secretary of Defense for 
Acquisition and Sustainment shall develop and maintain a list 
of all domestic nonavailability determinations. 
(b) SUBMISSION TO CONGRESS.—Not later than 30 days after 
the Under Secretary for Acquisition and Sustainment develops the 
list required under subsection (a), and annually thereafter, the 
Under Secretary for Acquisition and Sustainment shall submit to 
Congress a list of all domestic nonavailability determinations made 
during the one year period ending on the date on which the Under 
Secretary for Acquisition and Sustainment submits such list. 
(c) PLAN FOR INFORMING INDUSTRY.—Not later than 30 days 
after the Under Secretary of Defense for Acquisition and 
Sustainment develops the list required under subsection (a), the
H. R. 5009—222 
Under Secretary for Acquisition and Sustainment shall develop 
a plan for sharing such list with industry partners. 
(d) DOMESTIC NONAVAILABILITY DETERMINATION DEFINED.—In 
this section, the term ‘‘domestic nonavailability determination’’ 
means a determination made for purposes of providing an avail-
ability exception pursuant to section 4862(c) of title 10, United 
States Code. 
SEC. 849. SUPPLY CHAIN ILLUMINATION INCENTIVES. 
(a) IN GENERAL.—Not later than April 1, 2026, the Secretary 
of Defense shall develop and implement policies, procedures, and 
tools to incentivize each contractor of the Department of Defense 
to assess and monitor the entire supply chain of goods and services 
provided to the Department by such contractor to identify potential 
vulnerabilities and noncompliance risks with respect to such goods 
and services. 
(b) BRIEFING.—Not later than September 30, 2025, the Sec-
retary of Defense shall provide to the Committees on Armed Serv-
ices of the Senate and House of Representatives a briefing on 
the development and implementation of the policies, procedures, 
and tools under subsection (a), including information on obstacles 
to developing and implementing such policies, if any, and additional 
authorities or resources required to develop and implement such 
policies. 
SEC. 850. REPORT AND UPDATED GUIDANCE ON CONTINUED RISK 
MANAGEMENT FOR PHARMACEUTICAL SUPPLY CHAINS OF 
DEPARTMENT OF DEFENSE. 
(a) IN GENERAL.—Not later than two years after the date of 
the enactment of this Act, the Under Secretary of Defense for 
Acquisition and Sustainment shall— 
(1) submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report on— 
(A) existing information streams within the Federal 
Government, if any, for excipients and key starting mate-
rials for final drug products that may be used to assess 
the reliance by the Department of Defense on high-risk 
foreign suppliers analyzed in the report required under 
section 860(a) of the National Defense Authorization Act 
for Fiscal Year 2023 (Public Law 117–263; 136 Stat. 2734; 
10 U.S.C. 3241 note prec.); 
(B) active pharmaceutical ingredients, final drug prod-
ucts, and respective excipients and key starting materials 
analyzed in such report that are manufactured in a high- 
risk foreign country, as determined by the Secretary of 
Defense; 
(C) any limitations on the ability of the Secretary to— 
(i) obtain or analyze the information identified 
under subparagraphs (A) and (B); 
(ii) monitor the temperature of active pharma-
ceutical ingredients, final drug products, and respective 
excipients and key starting materials throughout the 
supply chain of the Department; and 
(iii) use data analytics to monitor vulnerabilities 
in the pharmaceutical supply chain of the Department; 
(D) how the Secretary plans to address the limitations 
identified under subparagraph (C); and
H. R. 5009—223 
(E) any recommendations of the Secretary to address 
those limitations; and 
(2) update risk management guidance developed by the 
Under Secretary under section 860(a)(1) of the National Defense 
Authorization Act for Fiscal Year 2023 (Public Law 117–263; 
10 U.S.C. 3241 note prec.) to include any relevant findings 
identified in paragraph (1). 
(b) FDA DETERMINATIONS.—For the purposes of this section, 
the excipients and key starting materials for final drug products 
shall be such excipients and key starting materials as determined 
by the Food and Drug Administration or under regulations issued 
by the Food and Drug Administration. 
Subtitle E—Prohibitions and Limitations 
on Procurement 
SEC. 851. PROHIBITION ON CONTRACTING WITH COVERED ENTITIES 
THAT CONTRACT WITH LOBBYISTS FOR CHINESE MILI-
TARY COMPANIES. 
(a) IN GENERAL.—Chapter 363 of title 10, United States Code, 
is amended by adding at the end the following new section: 
‘‘§ 4663. Prohibition on contracting with covered entities that 
contract with lobbyists for Chinese military compa-
nies 
‘‘(a) PROHIBITION ON ENTERING INTO CONTRACTS WITH COVERED 
ENTITIES.—Except as provided in subsection (c), the Secretary of 
Defense may not enter into a contract with an entity, a parent 
company of such entity, or a subsidiary of such entity is a party 
to a contract with a covered lobbyist. 
‘‘(b) EXCEPTION.—The prohibition in subsection (a) shall not 
apply with respect to an entity that made reasonable inquires 
regarding the lobbying activities of another entity and determined 
such entity was not a covered lobbyist. 
‘‘(c) WAIVER.—Upon notification to Congress, the Secretary of 
Defense may waive the requirements of this section. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘covered lobbyist’ means an entity that 
engages in lobbying activities for any entity determined to 
be a Chinese military company listed in accordance with section 
1260H of the William M. (Mac) Thornberry National Defense 
Authorization Act for Fiscal Year 2021 (10 U.S.C. 113 note). 
‘‘(2) The term ‘lobbying activities’ has the meaning given 
in section 1045(c) of the National Defense Authorization Act 
for Fiscal Year 2018 (10 U.S.C. 971 note prec.).’’. 
(b) EFFECTIVE DATE.—This section and the amendments made 
by this section shall take effect on June 30, 2026. 
SEC. 852. NOTIFICATION OF CHANGES TO CERTAIN TRANSPORTATION 
CONTRACTS. 
(a) IN GENERAL.—The Secretary of Defense shall provide a 
written notification and briefing to the congressional defense 
committees not later than 90 days before the date on which the 
Secretary will implement any rule, regulation, or policy change 
which would—
H. R. 5009—224 
(1) waive, exempt, or reduce any requirement, including 
any security clearance requirements, regarding transportation 
protective services for any transportation service provider; or 
(2) allow the award of a contract or order to a transpor-
tation service provider for any shipment that requires any 
transportation protective service if such transportation service 
provider is not authorized by the Department of Defense to 
transport cargo regarding such a transportation protective 
service. 
(b) TRANSPORTATION PROTECTIVE SERVICE; TRANSPORTATION 
SERVICE PROVIDER DEFINED.—In this section, the terms ‘‘transpor-
tation protective service’’ and ‘‘transportation service provider’’ have 
the meanings given such terms, respectively, in the publication 
of the Military Surface Deployment and Distribution Command 
of the Department of Defense issued September 12, 2022, and 
titled 
‘‘MILITARY 
FREIGHT 
TRAFFIC 
UNIFIED 
RULES 
PUBLICATION-1 (MFTURP-1)’’, or any successor thereto. 
SEC. 853. PROHIBITION ON PROCUREMENT OF COVERED SEMICON-
DUCTOR PRODUCTS AND SERVICES FROM COMPANIES 
PROVIDING COVERED SEMICONDUCTOR PRODUCTS AND 
SERVICES TO HUAWEI. 
(a) PROHIBITION.—Beginning on the date that is 270 days after 
the enactment of this Act, the Secretary of Defense shall not enter 
into or renew a contract for the procurement of any covered semicon-
ductor products and services for the Department of Defense with 
any entity that knowingly provides covered semiconductor products 
and services to Huawei. 
(b) CERTIFICATION PROCESS.—The Secretary of Defense shall, 
not later than the date on which the prohibition in subsection 
(a) takes effect, develop and implement a process requiring each 
entity seeking to provide covered semiconductor products and serv-
ices to the Department of Defense to certify to the Department 
that such entity is not an entity covered by such prohibition. 
(c) WAIVER.—The Secretary of Defense may waive the prohibi-
tion under subsection (a) on a case-by-case basis as may be nec-
essary in the interest of national security, if the Secretary deter-
mines that the covered semiconductor products and services to 
be acquired are— 
(1) only available from an entity otherwise covered by 
such prohibition; and 
(2) are required for national security systems or priority 
missions of the Department of Defense. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘covered semiconductor products and services’’ 
means— 
(A) semiconductors; 
(B) equipment for manufacturing semiconductors; and 
(C) tools for designing semiconductors. 
(2) The term ‘‘Huawei’’ means— 
(A) Huawei Technologies Company; 
(B) any entity that is a subsidiary, owner, beneficial 
owner, affiliate, or successor of Huawei Technologies Com-
pany; and 
(C) any entity that is directly or indirectly controlled 
by Huawei Technologies Company.
H. R. 5009—225 
SEC. 854. PROHIBITION ON CONTRACTS FOR ONLINE TUTORING SERV-
ICES. 
The Secretary of Defense may not enter into a contract for 
online tutoring services which could result in personal data of 
citizens of the United States being transferred to the control of 
the People’s Republic of China. 
SEC. 855. LIMITATION ON AVAILABILITY OF FUNDS FOR COVERED CON-
TRACTORS ENGAGED IN AN ANTI-ISRAEL BOYCOTT. 
(a) LIMITATION.—None of the funds authorized to be appro-
priated or otherwise made available for fiscal year 2025 for the 
Department of Defense may be obligated or expended to knowingly 
enter into a contract for goods or services for the Defense Com-
missary Agency on or after the date of the enactment of this 
Act with a covered contractor that has engaged in, or engages 
in, a boycott of the State of Israel. 
(b) DEFINITIONS.—In this section: 
(1) The term ‘‘boycott of the State of Israel’’ means engaging 
in a boycott action targeting— 
(A) the State of Israel; 
(B) companies or individuals doing business in, or with, 
the State of Israel; or 
(C) companies authorized by, licensed by, or organized, 
under the laws of the State of Israel, to do business. 
(2) The term ‘‘company’’ means an entity on the Department 
of Commerce Antiboycott Compliance Requester List main-
tained under section 1773 of the Anti-Boycott Act of 2018 
(part II of title XVII of Public Law 115–232; 50 U.S.C. 4842). 
(3) The term ‘‘covered contractor’’ means a contractor that 
has provided or agreed to provide goods or services to the 
Defense Commissary Agency in a total amount greater than 
or equal to $10,000,000 during the period beginning on October 
1, 2023, and ending on September 30, 2025. 
SEC. 856. PROCUREMENT OF CLEANING PRODUCTS. 
The Secretary of Defense shall procure, to the maximum extent 
practicable, only those cleaning products that are identified— 
(1) under the Safer Choice program; or 
(2) by an independent third-party organization that pro-
vides certifications in a manner consistent with the Safer Choice 
program. 
SEC. 857. PLAN FOR PRODUCTION OF COVERED MUNITIONS FOR 
PROCUREMENT BY THE DEPARTMENT OF DEFENSE. 
(a) PLAN.—Not later than 120 days after the date of the enact-
ment of this Act, the Secretary of Defense shall develop a plan 
for the production by private entities of covered munitions for 
procurement by the Department of Defense. 
(b) ELEMENTS.—The plan required under subsection (a) shall 
include a detailed description of challenges related to the procure-
ment of covered munitions, and proposed actions to remediate such 
challenges, in the following areas: 
(1) Regulations for net explosive weight or other environ-
mental and safety considerations for covered munitions. 
(2) Intellectual property rights law and regulations 
applicable to the procurement of covered munitions.
H. R. 5009—226 
(3) Methods to reimburse intellectual property holders and 
private entities for potential expenses incurred in the produc-
tion of covered munitions. 
(4) Manufacturing and testing equipment lead times. 
(5) Considerations relating to technical data, personnel 
transparency, and the ability of individuals to move between 
positions in the Federal Government and positions at entities 
that produce covered munitions. 
(6) Workforce training. 
(7) Any other challenges the Secretary determines nec-
essary. 
(c) SELECTION OF COVERED MUNITIONS.—Not later than June 
1, 2025, the Secretary of Defense shall designate a minimum of 
two and a maximum of four covered munitions from at least two 
military departments for inclusion in the plan required under sub-
section (a). 
(d) USE OF INNOVATIVE INTELLECTUAL PROPERTY STRATEGIES.— 
The Secretary of Defense may consider the use of innovative 
intellectual property strategies pursuant to section 808 of the 
National Defense Authorization Act for Fiscal Year 2024 (Public 
Law 118–31; 10 U.S.C. 3791 note) in developing the plan required 
under subsection (a). 
(e) BRIEFING REQUIREMENT.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
brief the congressional defense committees on the status and 
progress of the development of the plan. 
(f) COVERED MUNITIONS DEFINED.—In this section, the term 
‘‘covered munitions’’ means licensed munitions, test platforms for 
munitions, or weapon systems, including— 
(1) munitions, test platforms, or weapon systems that 
could— 
(A) replace stocks of munitions, test platforms, or 
weapon systems, as applicable, to meet the Out-Year 
Unconstrained Total Munitions Requirement (as defined 
in section 222c of title 10, United States Code); or 
(B) deliver similar effects as munitions, test platforms, 
or weapon systems in use by the Department of Defense 
on the date of the enactment of this Act; and 
(2) munitions, test platforms, or weapon systems— 
(A) selected for inclusion in the plan required under 
subsection (a); and 
(B) for which an intellectual property holder or owner 
of such munitions, test platforms, or weapon systems agrees 
to such inclusion. 
SEC. 858. PROCUREMENT OF COVERED HEARING PROTECTION 
DEVICES. 
(a) IN GENERAL.—The Secretary of Defense, in coordination 
with the head of the Hearing Center of Excellence, may enter 
into one or more contracts to procure covered hearing protection 
devices for members of the Armed Forces. 
(b) PRIORITIZATION.—The Secretary shall prioritize the award 
of such a contract to a domestic offeror. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘covered hearing protection device’’ means 
an active hearing protection device—
H. R. 5009—227 
(A) that is a commercially available off-the-shelf item 
(as defined in section 104 of title 41, United States Code); 
and 
(C) that has been identified, tested, and qualified by 
the Hearing Center of Excellence. 
(2) The term ‘‘Hearing Center of Excellence’’ means the 
center of excellence for hearing loss and auditory system injury 
established pursuant to section 721 of the Duncan Hunter 
National Defense Authorization Act for Fiscal Year 2009 (Public 
Law 110–417). 
Subtitle F—Industrial Base Matters 
SEC. 861. CODIFICATION AND MODIFICATION OF PILOT PROGRAM TO 
ACCELERATE THE PROCUREMENT AND FIELDING OF 
INNOVATIVE TECHNOLOGIES. 
(a) IN GENERAL.—Chapter 253 of title 10, United States Code, 
as amended by this title, is further amended by adding at the 
end the following new section: 
‘‘§ 3604. Program to accelerate the procurement and fielding 
of innovative technologies 
‘‘(a) PROGRAM.—Subject to availability of appropriations, the 
Secretary of Defense shall establish a competitive, merit-based pro-
gram to accelerate the procurement and fielding of innovative tech-
nologies by, with respect to such technologies— 
‘‘(1) reducing acquisition or life-cycle costs; 
‘‘(2) addressing technical risks; 
‘‘(3) improving the timeliness and thoroughness of test and 
evaluation outcomes; and 
‘‘(4) rapidly implementing such technologies to directly sup-
port defense missions. 
‘‘(b) GUIDELINES.— 
‘‘(1) IN GENERAL.—The Secretary shall issue guidelines for 
the operation of the program established under this section. 
‘‘(2) CONTENTS.—At a minimum, the guidelines for the 
operation of the program established under this section required 
under paragraph (1) shall provide for the following: 
‘‘(A) The issuance of one or more solicitations for pro-
posals by the Department of Defense in support of the 
program, with a priority established for technologies devel-
oped by small business concerns (as defined under section 
3 of the Small Business Act (15 U.S.C. 632)) or nontradi-
tional defense contractors (as defined under section 3014 
of this title). 
‘‘(B) The issuance of not more than two solicitations 
for proposals by the Department of Defense in support 
of the program each fiscal year for innovative technologies 
from entities that, during the one-year period preceding 
the issuance of the solicitation, have not performed on 
contracts and subcontracts for the Department under which 
the aggregate obligations of the Department to such entity 
for such period exceeds $400,000,000. 
‘‘(C) A process for— 
‘‘(i) the review of proposals received in response 
to a solicitation issued under subparagraph (A) by
H. R. 5009—228 
the Secretary of Defense and by each Secretary of 
a military department; 
‘‘(ii) the merit-based selection of the most prom-
ising cost-effective proposals; and 
‘‘(iii) the procurement of goods or services offered 
by such a proposal through contracts, cooperative 
agreements, other transaction authority, or by another 
appropriate process. 
‘‘(c) MAXIMUM AMOUNT.—The total amount of funding provided 
for any proposal selected for an award under the program estab-
lished under this section shall not exceed $50,000,000, unless the 
Secretary (or designee of the Secretary) approves a greater amount 
of funding. 
‘‘(d) DATA COLLECTION.— 
‘‘(1) PLAN REQUIRED BEFORE IMPLEMENTATION.—The Sec-
retary of Defense may not provide funding under this section 
until the date on which the Secretary— 
‘‘(A) completes a plan for carrying out the data collec-
tion required under paragraph (2); and 
‘‘(B) submits the plan to the congressional defense 
committees. 
‘‘(2) DATA
COLLECTION
REQUIRED.—The Secretary of 
Defense shall collect and analyze data on the program estab-
lished under this section for the purposes of— 
‘‘(A) developing and sharing best practices for achieving 
the objectives of the program; 
‘‘(B) providing information on the implementation of 
the program and related policy issues; and 
‘‘(C) reporting to the congressional defense committees 
as required under subsection (e). 
‘‘(e) BIANNUAL REPORT.—Not later than March 1 and September 
1 of each year beginning after the date of the enactment of this 
section, the Secretary of Defense shall submit to the congressional 
defense committees a report on the program established under 
this section. 
‘‘(f) CONGRESSIONAL NOTIFICATION.—The Secretary of Defense 
shall notify the congressional defense committees within 30 days 
after funding has been provided for a proposal selected for an 
award under the program established under this section.’’. 
(b) REPEAL OF SUPERCEDED AUTHORITY.—Section 834 of the 
National Defense Authorization Act for Fiscal Year 2022 (Public 
Law 117–81; 10 U.S.C. 4061 note) is repealed. 
SEC. 862. PROGRAM FOR DISTRIBUTION SUPPORT AND SERVICES FOR 
CONTRACTORS. 
Section 883 of the National Defense Authorization Act for Fiscal 
Year 2017 (Public Law 114–328; 10 U.S.C. 4292 note prec.) is 
amended— 
(1) in the section heading, by striking ‘‘PILOT PROGRAM 
FOR DISTRIBUTION SUPPORT AND SERVICES FOR WEAPON SYS-
TEMS CONTRACTORS’’ and inserting ‘‘PROGRAM FOR DISTRIBU-
TION SUPPORT AND SERVICES FOR CONTRACTORS’’; 
(2) in subsection (a)— 
(A) by striking ‘‘eight-year pilot’’; and 
(B) by striking ‘‘for the production, modification, 
maintenance, or repair of a weapon system that is’’; 
(3) by amending subsection (b) to read as follows:
H. R. 5009—229 
‘‘(b) SUPPORT CONTRACTS.—Any storage and distribution serv-
ices to be provided under the program under this section to a 
contractor in support of the performance of a contract described 
in subsection (a) shall be provided under a separate contract that 
is entered into by the Director of the Defense Logistics Agency 
with that contractor. The requirements of section 2208(h) of title 
10, United States Code, and the regulations prescribed pursuant 
to such section shall apply to any such separate support contract 
between the Director of the Defense Logistics Agency and the con-
tractor.’’; 
(4) in subsection (c), by striking ‘‘contract described in 
subsection (a) are storage and distribution’’ and inserting ‘‘con-
tract entered into by the Department include storage and dis-
tribution’’; 
(5) in subsection (d)— 
(A) by striking the term ‘‘pilot’’ each place it appears; 
(B) in paragraph (1)— 
(i) by striking ‘‘A requirement for the solicitation 
of offers for a contract described in subsection (a), 
for which storage and distribution services are to be 
made available’’ and inserting ‘‘A requirement to notify 
a contractor or potential contractor for which storage 
and distribution services are to be made available’’; 
(ii) in subparagraph (A), by striking ‘‘to any con-
tractor awarded the contract, but only’’; and 
(iii) in subparagraph (B), by striking ‘‘that are 
to be made available’’ and inserting ‘‘that are avail-
able’’; and 
(C) in paragraph (6), by striking ‘‘include a clause 
to indemnify the Government against any failure by the 
contractor to perform the support contract, and to remain 
responsible’’ and inserting ‘‘include a requirement that any 
failure by the contractor to perform the primary contract 
is not excusable based on use of the support contract, 
and the contractor is to remain responsible’’; 
(6) in subsection (e), by striking ‘‘pilot’’; and 
(7) by striking subsections (f) and (g) and inserting the 
following: 
‘‘(f) BRIEFINGS.—Not later than April 1, 2025, and annually 
thereafter for five years, the Director of the Defense Logistics 
Agency, in consultation with the Comptroller General, shall submit 
to the Committees on Armed Services of the Senate and House 
of Representatives a briefing and report describing— 
‘‘(1) the cost effectiveness for both the Government and 
industry of the program; 
‘‘(2) how support contracts under the program affected 
meeting the requirements of primary contracts; and 
‘‘(3) the number of and location of existing contracts.’’. 
SEC. 863. EXTENSION OF THE PILOT PROGRAM FOR STREAMLINING 
AWARDS FOR INNOVATIVE TECHNOLOGY PROJECTS. 
Section 873 of the National Defense Authorization Act for Fiscal 
Year 2016 (Public Law 114–92; 10 U.S.C. 3702 note) is amended— 
(1) in subsection (a)(2), by inserting ‘‘, a multiyear contract 
(as defined in section 3501 of title 10, United States Code), 
a block buy or multi-ship buy authorized by Congress, or the’’ 
after ‘‘Small Business Innovation Research Program’’; and
H. R. 5009—230 
(2) in subsection (f), by striking ‘‘October 1, 2024’’ and 
inserting ‘‘October 1, 2029’’. 
SEC. 864. USE OF CAPABILITY-BASED ANALYSIS OF PRICE OF GOODS 
OR SERVICES OFFERED BY NONTRADITIONAL DEFENSE 
CONTRACTORS. 
(a) PILOT PROGRAM.—A contracting officer of the Department 
of Defense may use alternative capability-based analysis to deter-
mine whether the proposed price or fee for a commercial product 
or commercial service offered by a nontraditional defense contractor 
(as that term is defined in section 3014 of title 10, United States 
Code) is fair and reasonable. 
(b) REPORT.—Not later than February 1, 2028, the Under Sec-
retary of Defense for Acquisition and Sustainment shall submit 
to the Committees on Armed Services of the Senate and the House 
of Representatives a report evaluating the use of the authority 
under subsection (a), including the following elements: 
(1) A summary of activities conducted because of the inclu-
sion of alternative capability-based analysis into the evaluation 
of proposals offered by nontraditional contractors, including 
specific examples. 
(2) An analysis of the effectiveness of the authority under 
subsection (a) in increasing nontraditional defense contractor 
participation in the defense industrial base and in increasing 
access by the Department of Defense to new technologies or 
capabilities. 
(3) Recommendations on— 
(A) the continuation of the authority under subsection 
(a); 
(B) changes to existing law; and 
(C) the expansion of the program to include other 
contractors. 
(c) SUNSET.—The authority under subsection (a) shall expire 
on September 30, 2029. 
(d) ALTERNATIVE CAPACITY-BASED ANALYSIS DEFINED.—In this 
section, the term ‘‘alternative capability-based analysis’’ means an 
analysis of the value to the Federal Government of a commercial 
product or commercial service that considers one or more of the 
following elements: 
(1) The fitness of the product or service for the particular 
purpose such commercial product or commercial service is being 
procured. 
(2) The unique nature of, technical expertise required to 
produce or provide, and the non-Federal resources expended 
to develop such commercial product or commercial service. 
(3) The business model or financial projections of the non-
traditional defense contractor, commensurate with the scale 
of the potential investment by the Secretary of Defense, which 
may include cost information, self-funded risk, financial projec-
tions, expenditure rates, estimates of total sales market, and 
other financial, technical, or management data. 
(4) The estimated total cost avoidance or increased capacity 
afforded by such commercial product or commercial service 
in relation to current and future costs of programs and oper-
ations that provide the same or similar capabilities. 
(5) Input from the anticipated users of such commercial 
product or commercial service on the potential value added
H. R. 5009—231 
by the improved capabilities or production processes resulting 
from such commercial product or commercial service. 
SEC. 865. QUALIFICATION OF INDUSTRIAL CAPABILITIES. 
(a) ESTABLISHMENT OF PROCESS.—Not later than one year after 
the date of the enactment of this Act, the Secretary of Defense, 
in coordination with each Secretary of a military department and 
the Director of the Defense Logistics Agency, shall establish a 
process to rapidly qualify and approve alternate or additional 
sources of supply for industrial capabilities identified in subsection 
(b) for use in combat. 
(b) IDENTIFICATION.—With respect to the process required by 
subsection (a), the Secretary of Defense shall seek to expand indus-
trial capability and capacity to— 
(1) produce energetic materials, solid rocket motors, 
unmanned systems, space systems, or electrical components; 
(2) supply castings and forgings; and 
(3) use additive or other advanced manufacturing tech-
niques. 
(c) APPLICATION.—The Secretary of Defense shall ensure that 
process required by subsection (a) is applied in a manner in which 
one or more documented supply chain deficiencies in the acquisition 
or sustainment of a weapon system of the Department of Defense 
is addressed. 
(d) ELEMENTS.—In developing the process required by sub-
section (a), the Secretary of Defense shall ensure that— 
(1) not later than 180 days after the date of the enactment 
of this Act, policies implementing such process are established 
to encourage and support the delegation of material review 
board authorities, processes, and approvals to the contractor 
or subcontractor (at any tier) with respect to non-safety critical 
items for industrial capabilities covered in subsection (b); 
(2) commercial processes and procedures for the evaluation 
and qualification of vendors, including manufacturers and 
distributors, that are part of the process required by subsection 
(a) are examined and implemented where feasible and advis-
able, including forms and templates such as Sources Approval 
Requests and Alternative Offers; 
(3) the process required by subsection (a) includes processes 
that are implemented and, if necessary, military specifications 
or other similar requirements documents are developed to pre- 
qualify vendors to supply safety critical items or mission critical 
items for industrial capabilities based on— 
(A) an assessment of the vendor’s material and process 
controls to assure conformance to specification and contrac-
tual requirements; and 
(B) audit and inspection requirements of the Depart-
ment of Defense; 
(4) test reports are reviewed and notice of an approval 
decision is provided to requesting member of the acquisition 
workforce (as defined in section 101 of title 10, United States 
Code) not later than 45 days after the date on which a test 
is completed; 
(5) processes for qualification of safety critical or flight 
critical end items produced through advanced processes and 
technologies, such as additive manufacturing, are established;
H. R. 5009—232 
(6) alternative material types that could be a viable replace-
ment or an interchangeable source of material are considered 
for evaluation and qualification using streamlined requirements 
to streamline qualification requirements; 
(7) processes are developed, where appropriate, for quali-
fication of a system or subsystem by a designated approval 
authority within a military department to avoid the need for 
qualification of individual parts while ensuring the performance 
of parts and the interactions of the parts in the system or 
subsystem; and 
(8) pathways are developed to streamline and consolidate 
the approval authority of the process established in subsection 
(a). 
(e) EXPEDITED PROCESSES
FOR MILITARY-UNIQUE SPECIFICA-
TIONS AND TEST PROCEDURES.—To support successful implementa-
tion of the process required by subsection (a), the Secretary shall— 
(1) to the maximum extent practicable, reduce the need 
for military-unique specification and test procedures; 
(2) develop a process to streamline and expedite the 
drafting and approval of military specifications (including mili-
tary performance specifications) and technical publications 
that— 
(A) details the performance or functions required by 
the industrial capabilities described in subsection (b) or 
the weapon system described in subsection (c) and do not 
constrain implementation of such process; 
(B) is completed, upon request by a member of the 
acquisition workforce— 
(i) not later than 30 days after the date of such 
request, for unmanned items, non-safety critical items, 
or non-mission critical items; and 
(ii) not later than 180 days after the date of such 
request, for safety critical items or mission critical 
items; and 
(C) accounts for resource constraints by prioritizing 
requests for inclusion in the process established in sub-
section (a); and 
(3) develop a process to develop, produce, and test parts 
described in subsection (b), and may test through failure, to 
create data to support the drafting of specifications and test 
procedures. 
(f) EXEMPTIONS.—Industrial capabilities approved under the 
process required by subsection (a) that do not present a safety 
risk to human life— 
(1) shall be exempt from Class A and Class B mishap 
investigations, as defined by the Secretary of Defense; and 
(2) shall be subject to streamlined investigation procedures, 
as determined by the Secretary of Defense, with respect to 
a mishap. 
(g) PROTECTIONS.—Approval authorities responsible for the 
process required by subsection (a) shall not be held liable by the 
Department of Defense for mishaps with respect to industrial 
capabilities approved pursuant to the process required by subsection 
(a) without evidence of willful misconduct, gross negligence, or 
intentional fraud.
H. R. 5009—233 
(h) INTERIM BRIEFING.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense, in coordina-
tion with each Secretary of a military department and the Director 
of the Defense Logistics Agency, shall provide to the Committees 
on Armed Services of the Senate and the House of Representatives 
a briefing with a detailed plan to implement the process required 
by subsection (a), including definitions and processes related to 
time limitations for drafting and approval of military specifications 
and technical publications in subsection (d)(1)(B). 
(i) INVESTMENT ROADMAP.—Not later than one year after the 
date of the enactment of this Act, the Secretary of Defense, in 
coordination with each Secretary of a military department and 
the Director of the Defense Logistics Agency, shall provide to the 
congressional defense committees a report on the resourcing and 
investment required to modernize the infrastructure and personnel 
for materials and process development, certification, and qualifica-
tion. 
(j) REPORT.—Not later than September 30, 2027, the Secretary 
of Defense, in coordination with each Secretary of a military depart-
ment and the Director of the Defense Logistics Agency, shall submit 
to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the progress, challenges, and lessons 
learned in carrying out the requirements of this section, including 
the viability of applying the process required by subsection (a) 
more broadly across additional industrial capabilities. 
SEC. 866. SOLID ROCKET MOTOR INDUSTRIAL BASE. 
(a) IN GENERAL.—Not later than March 1, 2025, the Under 
Secretary of Defense for Acquisition and Sustainment, acting 
through the Director of the Joint Production Accelerator Cell of 
the Department of Defense and the Assistant Secretary of Defense 
for Industrial Base Policy, shall submit to the congressional defense 
committees a strategy for ensuring that the defense industrial 
base of the United States can meet requirements for programs 
of record relating to solid rocket motors. 
(b) COORDINATION.—In developing the strategy required under 
subsection (a), the Under Secretary of Defense for Acquisition and 
Sustainment shall coordinate with the following: 
(1) The Assistant Secretary of the Navy for Research, 
Development, and Acquisition. 
(2) The Assistant Secretary of the Army for Acquisition, 
Logistics, and Technology. 
(3) The Assistant Secretary of the Air Force for Acquisition, 
Technology, and Logistics. 
(4) The Assistant Secretary of the Air Force for Space 
Acquisition and Integration. 
(5) The Director of the Missile Defense Agency. 
(c) ELEMENTS.—The strategy under subsection (a) shall include 
the following: 
(1) An assessment of emerging technologies or manufac-
turing processes that would support the modernization or evo-
lution of the defense industrial base of the United States to 
meet requirements for programs of record relating to solid 
rocket motors. 
(2) A plan to prioritize government funding for the fol-
lowing:
H. R. 5009—234 
(A) Government-owned, Government-operated ener-
getic materials facilities. 
(B) Government-owned, contractor-operated energetic 
materials facilities. 
(C) Private energetic materials facilities. 
(d) REVIEW AND REPORT.— 
(1) REVIEW.—Not later than March 1, 2025, the Secretary 
of Defense shall seek to enter into a contract with a federally 
funded research and development center to conduct a review 
of the of the defense industrial base of the United States 
for solid rocket motors that includes the following: 
(A) An assessment of the capacity and capability of 
existing solid rocket motor industrial base, including the 
supply base and personnel of such manufacturers, to sup-
port the expansion of the solid rocket motor industrial 
base. 
(B) The capability and capacity of potential new 
entrants to the solid rocket motor industrial base, including 
private entities funded by the Federal Government. 
(C) An assessment of the process for qualifying new 
entrants, including new manufacturing processes, for solid 
rocket motors. 
(D) An assessment of the capacity and capability of 
the solid rocket motor industrial base to support the 
demands of existing programs of record. 
(E) An assessment of the capacity and capability of 
the solid rocket motor industrial base to support potential 
future demands of programs of record. 
(F) A mapping of programs of record and potential 
future munitions programs to solid rocket motor manufac-
turer throughput. 
(G) Identification of current and potential shortfalls 
in common precursors and chemicals. 
(H) A broad assessment of commercial sector, civil 
sector, and Department of Defense pressures on the solid 
rocket motor industrial base. 
(2) REPORT.— 
(A) TO
SECRETARY.—Not later than September 30, 
2025, a federally funded research and development center 
that enters into contract under this subsection shall submit 
to the Secretary of Defense a report on the results of 
the review conducted under paragraph (1). 
(B) TO CONGRESS.—Not later than 30 days after receipt 
of the report described in subparagraph (A), the Secretary 
of Defense shall submit such report, along with any com-
ments of the Secretary, to the congressional defense 
committees. 
(e) ENERGETIC MATERIALS DEFINED.—The term ‘‘energetic mate-
rials’’ has the meaning given in section 148 of title 10, United 
States Code. 
SEC. 867. PROMULGATE GUIDANCE RELATING TO CERTAIN DEPART-
MENT OF DEFENSE CONTRACTS. 
Not later than January 31, 2025, the Secretary of Defense 
shall issue guidance on the governance and oversight of the con-
tracts of the Department of Defense that support or enable sensitive 
activities.
H. R. 5009—235 
Subtitle G—Small Business Matters 
SEC. 871. PILOT PROGRAM FOR THE PARTICIPATION OF MILITARY 
RESEARCH AND EDUCATIONAL INSTITUTIONS IN THE 
STTR PROGRAM. 
Section 9 of the Small Business Act (15 U.S.C. 638) is amended 
by adding at the end the following: 
‘‘(yy) PILOT PROGRAM
FOR
THE PARTICIPATION
OF MILITARY 
RESEARCH
AND EDUCATIONAL INSTITUTIONS
IN
THE STTR PRO-
GRAM.— 
‘‘(1) IN GENERAL.—Not later than 180 days after the date 
of enactment of this subsection, the Secretary of Defense shall 
establish a pilot program to enable any undergraduate, grad-
uate, or postgraduate degree-granting military research or edu-
cational institution established under title 10, United States 
Code, to participate in the STTR program of the Department 
of Defense. 
‘‘(2) SUNSET.—The authority to carry out the pilot program 
under this subsection shall end on September 30, 2025.’’. 
SEC. 872. DEPARTMENT OF DEFENSE PILOT PROGRAM FOR PRELIMI-
NARY CALCULATION ESTIMATES FOR CERTAIN PRO-
GRAMS. 
Section 9 of the Small Business Act (15 U.S.C. 638), as amended 
by section 871, is further amended by adding at the end the fol-
lowing: 
‘‘(zz) BUDGET CALCULATION PILOT PROGRAM.— 
‘‘(1) PILOT.— 
‘‘(A) IN GENERAL.—In order to more rapidly estimate 
allocations for the SBIR and STTR programs of the Depart-
ment of Defense, the Secretary of Defense shall conduct 
a budget calculation pilot program that requires the cal-
culation of total expenditures for the SBIR and STTR pro-
grams in the Department of Defense and determination 
of related allocations in accordance with subparagraphs 
(B) and (C), and paragraph (2), respectively. 
‘‘(B) SBIR PROGRAM.—Beginning in fiscal year 2025, 
the Department of Defense shall calculate required budget 
expenditures for its SBIR program as not less than 3.25 
percent of the average of the total research, development, 
test, and evaluation extramural budget of the Department 
for the 2 most recent fully obligated fiscal year budgets. 
‘‘(C) STTR PROGRAM.—Beginning in fiscal year 2025, 
the Department of Defense shall calculate required budget 
expenditures for its STTR program as not less than 0.46 
percent of the average of the total research, development, 
test, and evaluation extramural budget of the Department 
for the 2 most recent fully obligated fiscal year budgets. 
‘‘(2) ALLOCATIONS.—Not later than 30 days after the date 
of enactment of an appropriations bill for the Department of 
Defense for a fiscal year, the Department shall determine and 
make adjustments for actual allocations related to the SBIR 
and STTR programs of the Department. 
‘‘(3) SUNSET.—The pilot program under this subsection 
shall terminate on September 30, 2025.’’.
H. R. 5009—236 
SEC. 873. BOOTS TO BUSINESS PROGRAM. 
(a) IN GENERAL.—Section 32 of the Small Business Act (15 
U.S.C. 657b) is amended by adding at the end the following: 
‘‘(h) BOOTS TO BUSINESS PROGRAM.— 
‘‘(1) COVERED INDIVIDUAL DEFINED.—In this subsection, the 
term ‘covered individual’ means— 
‘‘(A) an individual who is participating in the Transi-
tion Assistance Program established under section 1144 
of title 10, United States Code, subject to an availability 
determination by the Secretary of the military department 
concerned; 
‘‘(B) a servicemember in the National Guard or 
Reserves not on active duty. 
‘‘(C) an individual who— 
‘‘(i) served on active duty in any branch of the 
Armed Forces, including the National Guard or 
Reserves; and 
‘‘(ii) was discharged or released from such service 
under conditions other than dishonorable; or 
‘‘(D) a spouse or dependent of an individual described 
in subparagraph (A), (B), or (C). 
‘‘(2) ESTABLISHMENT.—During the period beginning on the 
date of enactment of this subsection and ending on September 
30, 2028, the Administrator shall carry out a program to be 
known as the ‘Boots to Business Program’ to provide 
entrepreneurship training to covered individuals. 
‘‘(3) GOALS.—The goals of the Boots to Business Program 
are to— 
‘‘(A) provide assistance and in-depth training to covered 
individuals interested in business ownership; and 
‘‘(B) provide covered individuals with the tools, skills, 
and knowledge necessary to identify a business oppor-
tunity, draft a business plan, identify sources of capital, 
connect with local resources for small business concerns, 
and start up a small business concern. 
‘‘(4) PROGRAM COMPONENTS.— 
‘‘(A) IN GENERAL.—The Boots to Business Program may 
include— 
‘‘(i) a presentation providing exposure to the 
considerations involved in self-employment and owner-
ship of a small business concern; 
‘‘(ii) an online, self-study course focused on the 
basic skills of entrepreneurship, the language of busi-
ness, and the considerations involved in self-employ-
ment and ownership of a small business concern; 
‘‘(iii) an in-person classroom instruction component 
providing an introduction to the foundations of self- 
employment and ownership of a small business con-
cern; and 
‘‘(iv) in-depth training delivered through online 
instruction, including an online course that leads to 
the creation of a business plan. 
‘‘(B) COLLABORATION.—The Administrator may— 
‘‘(i) collaborate with public and private entities 
to develop course curricula for the Boots to Business 
Program; and
H. R. 5009—237 
‘‘(ii) modify program components in coordination 
with entities participating in a Warriors in Transition 
program, as defined in section 738(e) of the National 
Defense Authorization Act for Fiscal Year 2013 (10 
U.S.C. 1071 note). 
‘‘(C) USE
OF
RESOURCE
PARTNERS
AND
DISTRICT 
OFFICES.— 
‘‘(i) IN GENERAL.—The Administrator shall— 
‘‘(I) ensure that Veteran Business Outreach 
Centers regularly participate, on a nationwide 
basis, in the Boots to Business Program; and 
‘‘(II) to the maximum extent practicable, use 
district offices of the Administration and a variety 
of other resource partners and entities in admin-
istering the Boots to Business Program. 
‘‘(ii) GRANT AUTHORITY.—In carrying out clause (i), 
the Administrator may make grants, subject to the 
availability of appropriations in advance, to Veteran 
Business Outreach Centers, other resource partners, 
or other entities to carry out components of the Boots 
to Business Program. 
‘‘(D) AVAILABILITY TO DEPARTMENT OF DEFENSE AND 
THE
DEPARTMENT
OF
LABOR.—The Administrator shall 
make available to the Secretary of Defense and the Sec-
retary of Labor information regarding the Boots to Business 
Program, including all course materials and outreach mate-
rials related to the Boots to Business Program, for inclusion 
on the websites of the Department of Defense and the 
Department of Labor relating to the Transition Assistance 
Program, in the Transition Assistance Program manual, 
and in other relevant materials available for distribution 
from the Secretary of Defense and the Secretary of Labor. 
‘‘(E) AVAILABILITY
TO
DEPARTMENT
OF
VETERANS 
AFFAIRS.—In consultation with the Secretary of Veterans 
Affairs, the Administrator shall make available for distribu-
tion and display on the website of the Department of Vet-
erans Affairs and at local facilities of the Department of 
Veterans Affairs outreach materials regarding the Boots 
to Business Program, which shall, at a minimum— 
‘‘(i) describe the Boots to Business Program and 
the services provided; and 
‘‘(ii) include eligibility requirements for partici-
pating in the Boots to Business Program. 
‘‘(F) AVAILABILITY
TO
OTHER
PARTICIPATING
AGEN-
CIES.—The 
Administrator 
shall 
ensure 
information 
regarding the Boots to Business Program, including all 
course materials and outreach materials related to the 
Boots to Business Program, is made available to other 
participating agencies in the Transition Assistance Pro-
gram and upon request of other agencies. 
‘‘(5) COMPETITIVE BIDDING PROCEDURES.—The Administra-
tion shall use relevant competitive bidding procedures with 
respect to any contract or cooperative agreement executed by 
the Administration under the Boots to Business Program. 
‘‘(6) PUBLICATION OF NOTICE OF FUNDING OPPORTUNITY.— 
Not later than 30 days before the deadline for submitting 
applications for any funding opportunity under the Boots to
H. R. 5009—238 
Business Program, the Administration shall publish a notice 
of the funding opportunity. 
‘‘(7) REPORT.—Not later than 180 days after the date of 
enactment of this subsection, and not less frequently than 
annually thereafter, the Administrator shall submit to the Com-
mittee on Small Business and Entrepreneurship of the Senate 
and the Committee on Small Business of the House of Rep-
resentatives a report on the performance and effectiveness of 
the Boots to Business Program, which— 
‘‘(A) may be included as part of another report sub-
mitted to such committees by the Administrator related 
to the Office of Veterans Business Development; and 
‘‘(B) shall summarize available information relating 
to— 
‘‘(i) grants awarded under paragraph (4)(C); 
‘‘(ii) the total cost of the Boots to Business Pro-
gram; 
‘‘(iii) the number of program participants using 
each component of the Boots to Business Program; 
‘‘(iv) the completion rates for each component of 
the Boots to Business Program; 
‘‘(v) to the extent possible— 
‘‘(I) the demographics of program participants, 
to include gender, age, race, ethnicity, and rela-
tionship to military; 
‘‘(II) the number of program participants that 
connect with a district office of the Administration, 
a Veteran Business Outreach Center, or another 
resource partner of the Administration; 
‘‘(III) the number of program participants that 
start a small business concern; 
‘‘(IV) the results of the Boots to Business and 
Boots to Business Reboot course quality surveys 
conducted by the Office of Veterans Business 
Development before and after attending each of 
those courses, including a summary of any com-
ments received from program participants; 
‘‘(V) the results of the Boots to Business Pro-
gram outcome surveys conducted by the Office of 
Veterans Business Development, including a sum-
mary of any comments received from program 
participants; and 
‘‘(VI) the results of other germane participant 
satisfaction surveys; 
‘‘(C) an evaluation of the overall effectiveness of the 
Boots to Business Program based on each geographic region 
covered by the Administration during the most recent fiscal 
year; 
‘‘(D) an assessment of additional performance outcome 
measures for the Boots to Business Program, as identified 
by the Administrator; 
‘‘(E) any recommendations of the Administrator for 
improvement of the Boots to Business Program, which may 
include expansion of the types of individuals who are cov-
ered individuals; 
‘‘(F) an explanation of how the Boots to Business Pro-
gram has been integrated with other transition programs
H. R. 5009—239 
and related resources of the Administration and other Fed-
eral agencies; and 
‘‘(G) any additional information the Administrator 
determines necessary.’’. 
(b) GRANTS, CONTRACTS, AND COOPERATIVE AGREEMENTS WITH 
DISABLED VETERANS, VETERANS, AND MEMBERS
OF
A RESERVE 
COMPONENT OF THE ARMED FORCES.—Section 8(b)(17) of the Small 
Business Act (15 U.S.C. 637(b)(17)) is amended by striking ‘‘Forces.’’ 
and inserting ‘‘Forces, provided that— 
‘‘(A) the Administrator considers the needs of disabled 
veterans (as defined in section 4211(3) of title 38, United 
States Code), veterans, and members of a reserve compo-
nent of the Armed Forces equally, as part of the criteria 
for funding a continuation award or during the competition 
process for any grant, contract, or cooperative agreement 
made or entered into under this paragraph, including 
assigning equal value to any factors based on a designation 
as a disabled veteran (as defined in section 4211(3) of 
title 38, United States Code), veteran, or member of a 
reserve component of the Armed Forces, and equally consid-
ering the ability of applicants to provide Boots to Business 
on military installations and the ability of applicants to 
provide Boots to Business Reboot training off military 
installations; 
‘‘(B) for purposes of subparagraph (A), the term 
‘continuation award’ means a renewal or recompete, 
awarded at the discretion of the Administrator, for another 
5-year project period for a grant, contract, or cooperative 
agreement under this paragraph that is made up of a 
base project period of 12 months, with up to 4 option 
periods of 12 months, subject to continuing program 
authority, availability of funds, and satisfactory perform-
ance by the recipient organization; 
‘‘(C) the Administrator shall, not later than 1 year 
after the date of enactment of subparagraph (A), issue 
guidance on the criteria described in subparagraph (A) 
to existing recipients of any grant, contract, or cooperative 
agreement made or entered into under this paragraph; 
‘‘(D) the Administrator shall, for each budget period 
beginning after the date of the issuance of the guidance 
under subparagraph (C), incorporate the criteria described 
in subparagraph (A) into the funding agreement, and 
existing recipients of any grant, contract, or cooperative 
made or entered into under this paragraph shall have 
1 full budget period to comply; 
‘‘(E) if an existing recipient of any grant, contract, 
or cooperative agreement made or entered into under this 
paragraph does not meet the criteria included in the guid-
ance issued under subparagraph (C) during the budget 
period described in subparagraph (D), the existing recipient 
shall have a period of 1 year, beginning after the budget 
period in which the existing recipient was assessed, to 
reach satisfactory performance and compliance with all 
terms and conditions of the award; 
‘‘(F) if the Administrator fails to give equal weight 
to the needs of the groups described in subparagraph (A) 
during the competition process for any grant, contract,
H. R. 5009—240 
or cooperative agreement made or entered into under this 
paragraph, the Administrator shall, not later than 60 days 
after the closing date of the grant, contract, or cooperative 
agreement, provide written justification to the Committee 
on Small Business and Entrepreneurship of the Senate 
and the Committee on Small Business of the House of 
Representatives regarding why the grant, contract, or 
cooperative agreement was not made or entered into pursu-
ant to subparagraph (A); and 
‘‘(G) the Administrator shall provide full and fair 
consideration to any entity that has applied for a grant, 
contract, or cooperative agreement under this paragraph 
before the date of enactment of subparagraph (A), if that 
entity applies for a future funding opportunity under this 
paragraph.’’. 
SEC. 874. ESTABLISHMENT OF PILOT PROGRAM FOR ACCESS TO 
SHARED CLASSIFIED COMMERCIAL INFRASTRUCTURE. 
(a) PILOT PROGRAM REQUIRED.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of Defense 
shall establish a pilot program on streamlining access for small 
business concerns and institutions of higher learning to shared 
classified commercial infrastructure— 
(1) to expand access to secret or collateral accredited facili-
ties and sensitive compartmented information facilities and 
special access program facilities to securely perform work under 
existing classified contracts; 
(2) to reduce the cost and administrative requirements 
for a facility to receive and maintain accreditation and certifi-
cation as an accredited facility; 
(3) to increase opportunities for small business concerns 
and institutions of higher learning to have access to and com-
pete for classified contracts; and 
(4) to identify policy barriers that prevent components of 
the Department of Defense from more broadly using shared 
classified commercial infrastructure and prototyping proposed 
solutions. 
(b) DESIGNATION OF PRINCIPAL CIVILIAN OFFICIAL.— 
(1) IN GENERAL.—The Secretary shall designate an existing 
civilian official of the Department of Defense who shall be 
responsible for the administration of the pilot program estab-
lished under subsection (a). 
(2) RESPONSIBILITIES.—The responsibilities of the civilian 
official designated under paragraph (1) shall include the fol-
lowing: 
(A) To seek to enter into a contact or other agreement 
with one or more private entities— 
(i) for access for contractors and components of 
the Department of Defense to shared classified 
commercial infrastructure; and 
(ii) to facilitate the use of such infrastructure by 
covered small business concerns and institutions of 
higher learning. 
(B) In consultation with the Office of the Director 
of National Intelligence, to coordinate with the Director 
of the Defense Counterintelligence and Security Agency, 
the Director of the Defense Intelligence Agency, and the
H. R. 5009—241 
Director of the Defense Information Systems Agency to 
update or prescribe policies and regulations governing the 
process and timelines pertaining to how shared commercial 
classified infrastructure may obtain relevant facility 
authorizations and access to secure information technology 
networks from the Department of Defense. 
(C) To make recommendations to the Secretary of 
Defense regarding the modernization, streamlining, and 
acceleration of the approval process of the Department 
of Defense for contacts, subcontracts, and co-use or joint 
use agreements for shared classified commercial infrastruc-
ture. 
(D) The development and maintenance of metrics 
tracking the outcomes of each request made under the 
pilot program for the accreditation of shared commercial 
classified infrastructure as an accredited facility. 
(c) REQUIREMENTS.— 
(1) POLICIES AND REGULATIONS.—As part of the pilot pro-
gram established under subsection (a), the Director of the 
Defense Counterintelligence and Security Agency, the Director 
of the Defense Intelligence Agency, and the Director of the 
Defense Information Systems Agency shall each update or pre-
scribe policies and regulations governing the processes and 
timelines pertaining to how shared commercial classified infra-
structure may obtain relevant facility sponsorship, associated 
authorizations and accreditation, and access to relevant secure 
information technology networks from the Department of 
Defense. 
(2) MODERNIZATION, STREAMLINING, AND ACCELERATION.— 
The Secretary of Defense shall ensure that the pilot program 
established under subsection (a) includes efforts to modernize, 
streamline, and accelerate the approval process of the Depart-
ment of Defense for shared, co-use, and joint use agreements 
to facilitate the access of small business concerns and institu-
tions of higher learning performing under contracts or other 
agreements with the Department to classified environments. 
(d) REPORTS.— 
(1) IN GENERAL.—The Secretary of Defense shall submit 
to the congressional defense committees, Permanent Select 
Committee on Intelligence of the House of Representatives and 
the Select Committee on Intelligence of the Senate, a report 
on the pilot program established under subsection (a)— 
(A) after the establishment of such pilot program, but 
not later than two years after the establishment of such 
pilot program; and 
(B) after the termination of such pilot program pursu-
ant to subsection (e), but not later than 120 days after 
such termination. 
(2) CONTENTS.—Each report submitted pursuant to para-
graph (1) shall include the following: 
(A) A list of each request made under the pilot program 
for the accreditation of a facility as an accredited facility, 
including the date on which the request was made to 
the civilian official designated under subsection (b) and 
to the relevant facility accreditation agency. 
(B) A list of the total number of personnel authorized 
to conduct inspections under the pilot program for the
H. R. 5009—242 
accreditation and certification of facilities as accredited 
facilities. 
(C) Actions taken by the civilian official designated 
under subsection (b) to streamline the process of the 
Department of Defense for approval of co-use and joint 
use agreements to facilitate the access of small business 
concerns and institutions of higher learning performing 
under contracts or other agreements with the Department 
to classified environments, including any updated or new 
policies or guidance issued as a result of the pilot program. 
(D) A list of all unutilized and currently accredited 
sensitive compartmented information facilities owned and 
operated by the Department of Defense that are located 
within 25 miles of a facility described in subsection (a)(1). 
(E) A list of the metrics or other measures used by 
the Department of Defense to assess the benefits to the 
Department from the pilot program established under sub-
section (a), and any other metrics the Secretary of Defense 
deems appropriate. 
(e) TERMINATION.—The authority to carry out the pilot program 
required by subsection (a) and the requirements of this section 
shall terminate on September 30, 2030. 
(f) DEFINITIONS.—In this section: 
(1) The term ‘‘institution of higher learning’’ has the 
meaning given such term in section 3452(f) of title 38, United 
States Code. 
(2) The term ‘‘shared commercial classified infrastructure’’ 
means 
fully 
managed, 
shared, 
classified 
infrastructure 
(including physical facilities), and associated services that are 
operated by a private third-party for the benefit of appropriately 
cleared government and contractor personnel who have limited 
or constrained access to secret collateral and sensitive compart-
mented information facilities. 
(3) The term ‘‘small business concern’’ has the meaning 
given such term under section 3 of the Small Business Act 
(15 U.S.C. 632). 
SEC. 875. ACCESSIBILITY AND CLARITY IN COVERED NOTICES FOR 
SMALL BUSINESS CONCERNS. 
(a) IN GENERAL.—Each covered notice shall be written in a 
manner— 
(1) such that a small business concern can easily under-
stand the intent of the covered notice; and 
(2) that— 
(A) is clear, concise, and well-organized; and 
(B) to the maximum extent practicable, follows other 
best practices appropriate to the subject or field of the 
covered notice and the intended audience of the covered 
notice. 
(b) INCLUSION
OF KEY WORDS
IN COVERED NOTICES.—Each 
covered notice shall, to the maximum extent practicable, include 
key words in the description of the covered notice such that a 
small business concern seeking contract opportunities using the 
single Government-wide point of entry described under section 1708 
of title 41, United States Code, can easily identify and understand 
such covered notice.
H. R. 5009—243 
(c) RULEMAKING.—Not later than 90 days after the date of 
the enactment of this Act, the Secretary of Defense shall issue 
rules to carry out this section. 
(d) DEFINITIONS.—In this section: 
(1) COVERED NOTICE.—The term ‘‘covered notice’’ means 
a notice that— 
(A) the Secretary of Defense or a Secretary of a military 
department publishes on SAM.gov (or any successor 
website) marketing Federal contract opportunities; and 
(B) pertains to small business concerns, such as a 
sources sought notice or a solicitation restricted to competi-
tion among small business concerns. 
(2) SMALL BUSINESS CONCERN.—The term ‘‘small business 
concern’’ has the meaning given the term under section 3 of 
the Small Business Act (15 U.S.C. 632). 
SEC. 876. SMALL BUSINESS BILL OF RIGHTS. 
(a) IN GENERAL.—Not later than one year after the date of 
the enactment of this Act, the Secretary of Defense, acting through 
the Small Business Integration Group in the Department of Defense 
led by the Under Secretary of Defense for Acquisition and 
Sustainment, shall develop a Small Business Bill of Rights for 
the Department of Defense and its components. 
(b) PURPOSE.—The Small Business Integration Group in the 
Department of Defense shall design the Small Business Bill of 
Rights required under subsection (a) to ensure a healthy partner-
ship between the Department of Defense and the defense industrial 
base and to encourage small businesses to contract with the Depart-
ment by ensuring customer service issues and conflicts between 
the Department and small businesses related to acquisitions by 
the Department are resolved in an expeditious manner and that 
small businesses are aware of their rights to assistance under 
Federal law in resolving such issues. 
(c) CONTENT.—The Bill of Rights required under subsection 
(a) shall do the following: 
(1) Authorize the Director of Small Business Programs 
of the Department to establish a resolution process to which 
all Department of Defense components, members of the small 
business professional workforce of the Department, and other 
relevant officials and organizations of the Department, must 
adhere. 
(2) Authorize the Director of Small Business Programs 
of the Department, each Director of Small Business Programs 
of a military department, and members of the small business 
professional workforce of the Department of Defense to— 
(A) request assistance from members of the acquisition 
workforce in their component of the Department with the 
customer service issues and conflicts described in sub-
section (b); 
(B) require a timely responses from such members; 
and 
(C) establish a framework for implementation by the 
components of the Department, members of the small busi-
ness professional workforce, and other relevant officials 
and organizations of the Department providing for fair 
and reasonable resolution of complaints by small business 
for issues between small businesses and the Department.
H. R. 5009—244 
(3) Ensure that small businesses are informed of— 
(A) the rights of small businesses to assistance under 
the Small Business Regulatory Enforcement Fairness Act 
(5 U.S.C. 601 note), the Small Business Act (15 U.S.C. 
631 et seq.), chapter 388 of title 10, United States Code, 
and any other applicable law; 
(B) how to contact each task and delivery ombudsman 
designated under section 3406(g) of title 10, United States 
Code; 
(C) how to contact the Office of Small Business Pro-
grams of the Department of Defense and the Office of 
Small Business Programs of each military department; and 
(D) how to contact each advocate for competition in 
the Department of Defense designated pursuant to section 
1705(a) of title 41, United States Code. 
(4) Establish guidance— 
(A) for the acquisition workforce of the Department 
of Defense on the rights of small businesses under Federal 
law and the regulations issued thereunder, including the 
Federal Acquisition Regulation and FAR and the Defense 
Federal Acquisition Regulation Supplement; 
(B) on the duties and authorities of the task and 
delivery ombudsmans designated under section 3406(g) of 
title 10, United States Code, and the advocates for competi-
tion in the Department of Defense designated pursuant 
to section 1705(a) of title 41, United States Code; and 
(C) on a reasonable and practical timeline, as deter-
mined by the Undersecretary of Defense for Acquisition 
and Sustainment, for contracting officers of the Department 
to response to an inquiry from the Office of Small Business 
Programs of the Department of Defense or the Office of 
Small Business Programs of each military department. 
(5) Coordinate assistance under the Bill of Rights with 
other regulatory compliance assistance to small business con-
cerns, current and desired sets of authorities, roles, and respon-
sibilities across the Offices of Small Business Programs of the 
Department of Defense, APEX Accelerators, members of the 
small business professional workforce of the Department of 
Defense, and other relevant officials or organizations of the 
Department. 
(d) ANNUAL BRIEFINGS.— 
(1) IN GENERAL.—Not later than one year after the date 
of the enactment of this Act, and annually thereafter, the 
Director of Small Business Programs of the Department shall 
provide to the Secretary of Defense and the Committees on 
Armed Services of the House of Representatives and the Senate 
a briefing on the annual metrics collected under paragraph 
(2) for the year covered by the report. 
(2) COLLECTION OF ANNUAL METRICS.— 
(A) The Office of Small Business Programs of the 
Department of Defense shall— 
(i) develop annual metrics on the submission of 
complaints by contractors of the Department of Defense 
pursuant to the Small Business Bill of Rights required 
under subsection (a); 
(ii) provide each component of the Department 
such annual metrics; and
H. R. 5009—245 
(iii) collect and consolidate such annual metrics 
submitted to the Office under subparagraph (B). 
(B) Each component of the Department of Defense 
shall collect and submit to the Office of Small Business 
Programs of the Department of Defense the annual metrics. 
(e) IMPLEMENTATION BRIEFING.—Not later than 180 days after 
the date of the enactment of this Act, the Under Secretary of 
Defense for Acquisition and Sustainment shall provide to the 
Committees on Armed Services of the House of Representatives 
and the Senate a briefing detailing the Small Business Bill of 
Rights required under subsection (a) and the plan to implement 
such Small Business Bill of Rights. 
(f) DEFINITIONS.—In this section— 
(1) the term ‘‘Director of Small Business Programs of the 
Department’’ means the Director of Small Business Programs 
in the Department of Defense appointed under section 144 
of title 10, United States Code; 
(2) the term ‘‘Director of Small Business Programs of a 
military department’’ means— 
(A) the Director of Small Business Programs in the 
Department of the Army appointed under section 7024 
of title 10, United States Code; 
(B) the Director of Small Business Programs in the 
Department of the Navy appointed under section 8028 
of such title; or 
(C) the Director of Small Business Programs in the 
Department of the Air Force appointed under section 9024 
of such title; and 
(3) the term ‘‘military department’’ has the meaning given 
such term in section 101(a) of title 10, United States Code. 
Subtitle H—Other Matters 
SEC. 881. CLARIFICATION OF WAIVER AUTHORITY FOR ORGANIZA-
TIONAL AND CONSULTANT CONFLICTS OF INTEREST. 
Section 9.503 of the Federal Acquisition Regulation shall be 
revised to require that— 
(1) a request for a waiver under such section include a 
written justification for such waiver; and 
(2) the head of a Federal agency may not delegate such 
waiver authority below the level of the deputy head of such 
agency. 
SEC. 882. REVERSE ENGINEERING OR RE-ENGINEERING FOR PRODUC-
TION OF ITEMS. 
(a) REVERSE ENGINEERING OR RE-ENGINEERING PROCESS.—Not 
later than one year after the date of the enactment of this Act, 
the Under Secretary of Defense for Acquisition and Sustainment, 
in coordination with each Secretary of a military department and 
the Director of the Defense Logistics Agency, shall establish a 
process to— 
(1) identify items for which— 
(A) technical data is not available; or 
(B) rights in such technical data does not allow for 
manufacturing of the item; and
H. R. 5009—246 
(2) create streamlined procedures for production of a item 
identified under paragraph (1) through reverse engineering or 
re-engineering— 
(A) if production of the item may be required for point 
of use manufacturing or for a contested logistics environ-
ment (as defined in section 2926 of title 10, United States 
Code); 
(B) if the manufacturer of the item will not meet the 
schedule for delivery required by the contracting officer 
to maintain weapon system readiness or responsiveness 
in the event of mobilization; or 
(C) with respect to a item for which a head of the 
contracting activity can only acquire by entering into a 
sole source contract, if such head submits to the service 
acquisition executive (as defined in section 101 of title 
10, United States Code) a written determination that such 
reverse engineering or re-engineering is beneficial to sus-
tain training or operations of the Department of Defense 
with respect to such item. 
(b) ANNUAL REPORT.— 
(1) IN GENERAL.—Not later than one year after the date 
of the enactment of this Act, and annually thereafter until 
December 31, 2030, the Under Secretary of Defense for Acquisi-
tion and Sustainment, in coordination with each Secretary of 
a military department and the Director of the Defense Logistics 
Agency, shall submit to the congressional defense committees 
a report on the use of reverse engineering or re-engineering 
carried out pursuant to the process required under subsection 
(a). 
(2) CONTENTS.—Each report required by paragraph (1) shall 
include the following: 
(A) A list of items produced through reverse 
engineering or re-engineering, disaggregated by element 
of the Department of Defense described in section 111(b) 
of title 10, United States Code that used the process estab-
lished under subsection (a). 
(B) Representative case studies of items listed under 
subparagraph (A), including a description of the use case 
of each item, the efforts used to acquire the technical 
data or technical data rights needed to manufacture the 
item, and the estimated cost or time savings obtained, 
the estimated cost or time savings obtained over an esti-
mated time horizon of ten years of acquisition require-
ments, including the identification of recurring and non-
recurring costs. 
(C) Recommendations and lessons learned that may 
inform contracting guidance and procedures, especially 
regarding the creation of technical data packages and tech-
nical data rights through reverse engineering or re- 
engineering. 
SEC. 883. PROCUREMENT OF DEPARTMENT OF DEFENSE BATTERIES. 
(a) IN GENERAL.—The Secretary of Defense shall— 
(1) coordinate a Department of Defense-wide approach to 
establishing a battery strategy to further leverage the advance-
ments of domestic and allied commercial industry with respect 
to batteries; and
H. R. 5009—247 
(2) in coordination with the Secretaries of the military 
departments and the other relevant elements of the Department 
of Defense, identify mechanisms for measuring and addressing 
risks to the defense supply chain, diminishing manufacturing 
capability, and material shortages for legacy system batteries 
by transitioning the Department to safer batteries with higher 
energy capabilities with supply chain growth. 
(b) LEGACY BATTERY STRATEGY CONTENTS.—The strategy estab-
lished pursuant to subsection (a)(1) strategy shall include the fol-
lowing: 
(1) The establishment of a Department of Defense-wide 
accounting of advanced batteries for current and future applica-
tions, including obsolete batteries in existing systems, and 
improved mechanisms for aligning the battery procurement 
requirements across the Department. 
(2) Requirements for the supply chain for batteries for 
the Department of Defense to enable to Department to leverage 
advancements by domestic industry and industry located in 
allies of the United States with respect to batteries. 
(3) The application of the requirements described in para-
graph (2) to the near-term, mid-term, and long-term horizons 
of the Department. 
(4) Creating a Department of Defense-wide Science and 
Technology battery strategy, in coordination with the military 
services, to define an approach, technical targets, and link 
into procurement activities. 
(5) Consideration of the existing battery strategies com-
pleted by the services. 
(6) A determination of how the military services can stand-
ardize the battery systems across the existing and future pro-
grams of such Armed Service. 
(7) Identify obstacles with respect to the raw materials 
required to achieve the goals of the strategy established pursu-
ant to subsection (a)(1) and determine ways to overcome such 
obstacles, including through the Industrial Base Analysis and 
Sustainment program of the Department of Defense and the 
use of authorities under the Defense Production Act (50 U.S.C. 
4501 et seq.). 
(8) Processes and guidelines for rapid testing and certifi-
cation to field batteries. 
(9) A discussion of the workforce challenges, if any, that 
may inhibit the Department of Defense from achieving the 
goals of the strategy established pursuant to subsection (a)(1). 
(c) BRIEFINGS AND FINAL REPORT.— 
(1) INITIAL BRIEFING.—Not later than 180 days after enact-
ment, the Secretary of Defense, in consultation with the Secre-
taries of the military departments and the other relevant ele-
ments of the Department of Defense, shall brief the Committees 
on Armed Services of the Senate and House of Representatives 
on the approach to establishing the strategy described in sub-
section (a)(1). 
(2) UPDATE BRIEFINGS.—Not later than 180 days after the 
date of the briefing under paragraph (1), and not less frequently 
than every 6 months thereafter until the strategy described 
in subsection (a)(1) is established, the Secretary of Defense, 
in consultation with the Secretaries of the military departments 
and the other relevant elements of the Department of Defense,
H. R. 5009—248 
shall provide to the Committees on Armed Services of the 
Senate and House of Representatives a briefing on the status 
of the establishment of such strategy. 
(3) FINAL REPORT.—Not later than September 30, 2026, 
the Secretary of Defense, in consultation with the Secretaries 
of the military departments and the other relevant elements 
of the Department of Defense, shall submit to the Committees 
on Armed Services of the Senate and the House of Representa-
tives a final report on the establishment of the strategy pursu-
ant to subsection (a). 
(d) MILITARY DEPARTMENT DEFINED.—In this section, the term 
‘‘military department’’ has the meaning given such term in section 
101(a) of title 10, United States Code. 
SEC. 884. ADVISORY PANEL ON THE REQUIREMENTS PROCESS OF THE 
DEPARTMENT OF DEFENSE. 
(a) ESTABLISHMENT.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall establish 
and maintain within the Department of Defense an advisory panel 
on streamlining the requirements process of the Department of 
Defense. 
(b) MEMBERSHIP.— 
(1) IN GENERAL.—The advisory panel shall consist of not 
more than 10 members to be appointed as follows: 
(A) Four by the Secretary of Defense. 
(B) Two by each Secretary of a military department. 
(2) REQUIREMENTS FOR APPOINTMENTS.— 
(A) EXPERIENCE.—Members appointed under para-
graph (1) shall have experience in matters relating to— 
(i) requirements processes of the Department of 
Defense; or 
(ii) innovative requirements processes and product 
development methods of the private sector. 
(B) DIVERSITY.—In making appointments to the 
advisory panel established in subsection (a), the Secretary 
of Defense and each Secretary of a military department 
shall ensure that members they appoint reflect diverse 
experiences in the public and private sectors. 
(c) DUTIES.— 
(1) IN GENERAL.—The advisory panel shall advise the Sec-
retary of Defense on the effectiveness of the requirements 
process and develop options for reform. 
(2) BASIS FOR PROVISION OF ADVICE.—For purposes of pro-
viding advice to the Secretary pursuant to this subsection, 
the advisory panel shall— 
(A) review, synthesize, and evaluate recommendations 
from literature and expert interviews on reform of the 
requirements processes of the Department of Defense. 
(B) review, synthesize, and evaluate recommendations 
from literature and expert interviews on how innovative 
requirements processes and product development methods 
of the private sector are implemented; 
(C) examine the Joint Capabilities Integration and 
Development System process and the degree to which it 
is effective in facilitating defense modernization; 
(D) examine alternative requirements processes of the 
Department of Defense, including—
H. R. 5009—249 
(i) the Joint Urgent Operational Needs Statement 
and Joint Emergent Operational Needs Statement 
associated with the Urgent Capability Acquisition 
Pathway (as defined by Department of Defense Instruc-
tion 5000.81, or a successor instruction); 
(ii) an acquisition program or project that is carried 
out using the rapid fielding or rapid prototyping 
acquisition pathway under section 3602 of title 10, 
United States Code (as added by this Act); and 
(iii) any user agreements and capability needs 
statements associated with a software acquisition path-
way established under section 3603 of title 10, United 
States Code (as added by this Act); 
(E) consider potential alternatives to requirements 
processes and practices to maximize the ability of the 
Department of Defense to respond in a timely manner 
to current and future threats; and 
(F) make legislative and policy recommendations to 
improve requirements processes and practices to field the 
operational capabilities necessary to outpace near-peer 
competitors, provide data and analytical insight, and sup-
port an integrated budget that is aligned with the most 
recent national defense strategy required under section 
113(g) of title 10, United States Code. 
(d) ADMINISTRATIVE MATTERS.—The Secretary of Defense shall 
provide the advisory panel established pursuant to subsection (a) 
with timely access to appropriate information, data, resources, and 
analysis so that the advisory panel may conduct a thorough and 
independent assessment as required under such subsection. 
(e) ANNUAL REPORTS.—Not later than September 30, 2025, 
and annually thereafter, the advisory panel shall submit to the 
Secretary of Defense and the Committees on Armed Services of 
the Senate and the House of Representatives a report describing 
the results of the activities of the advisory panel during the pre-
ceding year. 
(f) TERMINATION.—The advisory panel shall terminate on the 
date that is three years after the date of the establishment of 
the advisory panel pursuant to subsection (a). 
SEC. 885. PROPOSAL FOR PAYMENT OF COSTS FOR CERTAIN GOVERN-
MENT ACCOUNTABILITY OFFICE BID PROTESTS. 
(a) IN GENERAL.—Not later than 180 days after the date of 
the enactment of this Act, the Comptroller General of the United 
States, in coordination with the Secretary of Defense, shall submit 
to the covered committees a proposal that includes the following: 
(1) A process for enhanced pleading standards described 
in subsection (b). 
(2) The benchmarks described in subsection (c). 
(3) A process for payment by an unsuccessful party in 
a covered protest to the Government and the contractor 
awarded the contract that was the subject of the bid protest 
in accordance with the benchmarks described in subsection 
(c). 
(b) ENHANCED PLEA STANDARDS.—The process for enhanced 
pleading standards described in this subsection is a process under 
which the Comptroller General shall apply enhanced pleading 
standards, as developed by the Comptroller General in coordination
H. R. 5009—250 
with the Secretary of Defense, to an interested party with respect 
to a covered protest submitted by such interested party for which 
such interested party is seeking access to administrative records 
of the Department of Defense, prior to making a determination 
with respect to such access. 
(c) BENCHMARKS.—The benchmarks described in this subsection 
are as follows: 
(1) A chart of the average costs to the Department of 
Defense and the Government Accountability Office of a covered 
protest based on the value of the contract that is the subject 
of the covered protest. 
(2) A chart of the costs of the lost profit rates of the 
contractor awarded a contract that was the subject of a covered 
protest after such award. 
(d) LOST PROFIT CALCULATION.—With respect to contracts that 
are the subject of a covered protest, the lost profit rates under 
subsection (c)(2) shall be equal to the profit that the contractor 
awarded the contract would have earned if the contractor has 
performed under such contract during the period performance under 
such contract by such contractor was suspended under section 
3553(d) of title 31, United States Code, pursuant to such covered 
protest. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘covered committees’’ means the following: 
(A) The congressional defense committees. 
(B) The Committee on Oversight and Accountability 
of the House of Representatives. 
(C) The Committee on Homeland Security and Govern-
mental Affairs of the Senate. 
(2) The term ‘‘covered protest’’ means a protest submitted 
by an interested party to the Comptroller General under 
chapter 35 of title 31, United States Code, for a determination 
by the Comptroller General under such chapter. 
(3) The terms ‘‘interested party’’ and ‘‘protest’’ have the 
meanings given such terms in section 3551 of title 31, United 
States Code. 
(f) DOLLAR THRESHOLD FOR TASK ORDER PROTESTS.—Section 
3406(f)(1)(B) of title 10, United States Code, is amended by striking 
‘‘$25,000,000’’ and inserting ‘‘$35,000,000’’. 
SEC. 886. BRIEFINGS, CERTIFICATION, AND LIMITATION ON AVAIL-
ABILITY OF FUNDS RELATED TO FUEL SERVICES FINAN-
CIAL MANAGEMENT CONTRACTS. 
(a) BRIEFING ON BID PROTEST.—Not later than 30 days after 
the date of the enactment of this Act, the Secretary of Defense 
shall provide to the Committees on Armed Services of the Senate 
and the House of Representatives a briefing on— 
(1) the results of the bid protest published by the Comp-
troller General of the United States on August 28, 2024 (B- 
420857.8, B-420857.9, relating to Kropp Holdings, Inc.), 
including with regard to the element relating to consideration 
of the conflicts of interest mitigation plan; and 
(2) the proposed next steps with respect to the acquisition 
of financial management services for Department of Defense 
fuel contracts. 
(b) BRIEFING ON CONFLICT OF INTEREST.—Not later than 30 
days after the date of the enactment of this Act, the Secretary
H. R. 5009—251 
shall provide to the Committees on Armed Services of the Senate 
and the House of Representatives a briefing on how the Secretary 
will ensure that price sensitive information is not shared between 
fuel financial management entities and fuel provider entities. 
(c) CERTIFICATION.—Not later than 30 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 House 
of Representatives a written certification that no conflict of interest 
exists with respect to a contract for financial management services 
for fuel contracts of the Department of Defense. 
(d) LIMITATION ON AVAILABILITY OF FUNDS.—On and after June 
1, 2025, the Secretary of Defense may not obligate or expend funds 
authorized to be appropriated by this Act or otherwise made avail-
able for fiscal year 2025 on any contract for financial management 
services for fuel contracts of the Department of Defense in which 
the contractor is also a fuel provider until the Committees on 
Armed Services of the Senate and House of Representatives receive 
the briefing described in subsection (b) and certification described 
in subsection (c). 
SEC. 887. IMPLEMENTATION OF COMPTROLLER GENERAL REC-
OMMENDATIONS RELATING TO CERTAIN SPARE PARTS 
FOR F–35 AIRCRAFT. 
(a) IN GENERAL.—The Secretary of Defense, acting through 
the Under Secretary of Defense for Acquisition and Sustainment, 
shall implement the recommendations contained in the report of 
the Comptroller General of the United States published on May 
23, 2023, and titled ‘‘F–35 Program: DOD Needs Better Account-
ability for Global Spare Parts and Reporting of Losses Worth Mil-
lions’’ (GAO-23-106098). 
(b) REPORT.—Not later than December 31, 2025, the Secretary 
shall submit to Congress a report on the progress of the imple-
menting recommendations as required by subsection (a). 
SEC. 888. TRACKING AWARDS MADE THROUGH OTHER TRANSACTION 
AUTHORITY. 
(a) IN GENERAL.—Not later than one year after the date of 
the enactment of this Act, the Under Secretary of Defense for 
Acquisition and Sustainment shall establish a process to track 
the number and value of awards to small businesses and nontradi-
tional defense contractors performing on transactions using other 
transaction authority, including transactions carried out through 
consortia. 
(b) DATA COLLECTION.—The Under Secretary of Defense for 
Acquisition and Sustainment shall, to the extent practicable— 
(1) minimize the reporting requirements imposed on small 
businesses and nontraditional defense contractors by the 
process established under subsection (a); and 
(2) maximize the use of existing data collection processes 
of the Department of Defense or the expertise of a consortia- 
manager under such process. 
(c) DEFINITIONS.—In this section: 
(1) NONTRADITIONAL
DEFENSE
CONTRACTOR.—The term 
‘‘nontraditional defense contractor’’ has the meaning given such 
term in section 3014 of title 10, United States Code. 
(2) OTHER
TRANSACTION
AUTHORITY.—The term ‘‘other 
transaction authority’’ means the authority provided under sec-
tions 4021 and 4022 of title 10, United States Code.
H. R. 5009—252 
(3) SMALL BUSINESS.—The term ‘‘small business’’ has the 
meaning given the term ‘‘small business concern’’ under section 
3(a) of the Small Business Act (15 U.S.C. 632(a)). 
TITLE IX—DEPARTMENT OF DEFENSE 
ORGANIZATION AND MANAGEMENT 
Subtitle A—Office of the Secretary of Defense and Related Matters 
Sec. 901. Requirement to notify Congress when Deputy Secretary of Defense is per-
forming functions and duties of Secretary of Defense. 
Sec. 902. Establishment of Department of Defense Performance Improvement Offi-
cer. 
Sec. 903. Enhanced coordination on international cooperation activities. 
Sec. 904. Increase in authorized number of Deputy Assistant Secretaries of De-
fense. 
Sec. 905. Modifications to the Office of Strategic Capital. 
Sec. 906. Limitation on availability of funds until Department of Defense complies 
with certain legal requirements. 
Sec. 907. Matters relating to Assistant Secretary of Defense for Special Operations 
and Low Intensity Conflict. 
Sec. 908. Inclusion in defense planning guidance of guidance on size, structure, and 
posture of special operations forces. 
Sec. 909. Review of roles and responsibilities of the Chief Talent Management Offi-
cer and the Office of the Under Secretary of Defense for Personnel and 
Readiness. 
Sec. 910. Plan for adequate staffing of Office of Assistant Secretary of Defense for 
Industrial Base Policy and Joint Production Accelerator Cell. 
Subtitle B—Other Department of Defense Organization and Management Matters 
Sec. 921. Department of Defense Senior Intelligence Oversight Official. 
Sec. 922. Codification of the Joint Federated Assurance Center. 
Sec. 923. Codification of additional staff corps of the Navy. 
Sec. 924. Establishment of Office of Expanded Competition. 
Sec. 925. Counter unmanned aerial systems task force. 
Sec. 926. Affiliate relationships between Army special operations forces and com-
bat-enabling units of general purpose forces. 
Sec. 927. Force sizing methodology. 
Subtitle A—Office of the Secretary of 
Defense and Related Matters 
SEC. 901. REQUIREMENT TO NOTIFY CONGRESS WHEN DEPUTY SEC-
RETARY OF DEFENSE IS PERFORMING FUNCTIONS AND 
DUTIES OF SECRETARY OF DEFENSE. 
Section 132(b) of title 10, United States Code, is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; 
(2) by striking ‘‘The Deputy Secretary shall act’’ and 
inserting the following: 
‘‘(2)(A) The Deputy Secretary shall act’’; and 
(3) by adding at the end the following new subparagraph: 
‘‘(B) If the Secretary is unable to perform the functions and 
duties of the office as described in subparagraph (A), the Deputy 
Secretary, or any other individual performing such functions and 
duties in accordance with applicable law, shall, not later than 
24 hours before any planned transfer of such functions and duties 
or 24 hours after any unplanned transfer of such functions and 
duties, notify the following of the transfer: 
‘‘(i) The Committee on Armed Services, the Committee 
on Appropriations, and the majority and minority leaders of 
the Senate.
H. R. 5009—253 
‘‘(ii) The Committee on Armed Services, the Committee 
on Appropriations, the Speaker, and the minority leader of 
the House of Representatives.’’. 
SEC. 902. ESTABLISHMENT OF DEPARTMENT OF DEFENSE PERFORM-
ANCE IMPROVEMENT OFFICER. 
(a) IN GENERAL.—Chapter 4 of title 10, United States Code, 
is amended by inserting after section 132 the following new section: 
‘‘§ 132a. Performance improvement officer 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) There is a Performance Improvement Officer of the 
Department of Defense, to be appointed by the Secretary of 
Defense from among the ranks of qualified individuals from 
the senior career civil service. 
‘‘(2) The Performance Improvement Officer shall be 
appointed from among persons described in paragraph (1) who 
have an extensive management or business background and 
experience with managing large or complex organizations, 
organizational change management, or business transformation 
activities. 
‘‘(b) DEPUTY.—The Performance Improvement Officer shall be 
supported by a Deputy who shall be appointed by the Secretary 
of Defense from among the ranks of qualified individuals from 
the senior career civil service. The Deputy shall be the first assistant 
to the Performance Improvement Officer and shall assist that 
Officer in the performance of the duties of that position and shall 
act for, and exercise the powers of, the Officer when that Officer 
dies, resigns, or is otherwise unable to perform the functions and 
duties of the office. 
‘‘(c) DUTIES AND RESPONSIBILITIES.—Subject to the authority, 
direction, and control of the Secretary of Defense and the Deputy 
Secretary of Defense, the Performance Improvement Officer shall 
perform such duties, exercise such powers, and have such respon-
sibilities as the Secretary or the Deputy Secretary may prescribe, 
including the following: 
‘‘(1) Responsibility for updating and implementing the Stra-
tegic Management Plan of the Department of Defense required 
by section 904(d) of the National Defense Authorization Act 
of Fiscal Year 2008 (Public Law 110–181; 10 U.S.C. note prec. 
2201). 
‘‘(2) Responsibility for chairing the Defense Performance 
Improvement Council (or any successor organization). 
‘‘(3) Responsibility for the Defense Performance Improve-
ment Framework, as established under section 125a of this 
title. 
‘‘(4) Responsibility for the execution of not fewer than two 
annual meetings of the Defense Management Action Group 
(or any successor organization) with agendas relating to the 
Strategic Management Plan described in paragraph (1). 
‘‘(5) Oversight of transformational business modernization 
and business process re-engineering of the Department of 
Defense. 
‘‘(6) Oversight and tracking the implementation of— 
‘‘(A) solutions to solve issues identified by the High 
Risk List maintained by the Government Accountability 
Office; and
H. R. 5009—254 
‘‘(B) other recommendations of such Office. 
‘‘(7) Serving as the lead official devoted to modernizing 
the business processes of the Department that serve as the 
baseline for all external acquisition and internal operations. 
‘‘(8) Oversight and management of the Defense Manage-
ment Institute (as established pursuant to the memorandum 
of the Director of Administration and Management of the 
Department dated January 13, 2023), or any successor 
organization. 
‘‘(9) Serving as co-chair of the Defense Business Council 
in accordance with section 2222(f)(1) of this title. 
‘‘(10) Maintaining authority for convening meetings of per-
sonnel and organizations of the Department on matters relating 
to the duties and responsibilities described in this subsection.’’. 
(b) ADDITION OF PERFORMANCE IMPROVEMENT OFFICER AS CO- 
CHAIR OF DEFENSE BUSINESS COUNCIL.—Section 2222(f)(1) of title 
10, United States Code, is amended, in the second sentence— 
(1) by striking ‘‘chaired’’ and inserting ‘‘co-chaired’’; and 
(2) by inserting ‘‘and the Performance Improvement Officer’’ 
after ‘‘Officer’’. 
(c) GUIDANCE REQUIRED.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
issue rules, regulations, policies, or other guidance (as appro-
priate)— 
(1) to clearly delineate the authorities and responsibilities 
of the Performance Improvement Officer of the Department 
of Defense established under section 132a of title 10, United 
States Code, as added by subsection (a); and 
(2) setting forth a charter for the office (including personnel, 
facilities, and other infrastructure) supporting the position of 
the Performance Improvement Officer. 
SEC. 903. ENHANCED COORDINATION ON INTERNATIONAL COOPERA-
TION ACTIVITIES. 
(a) UPDATE OF RESPONSIBILITIES OF THE UNDER SECRETARY 
OF DEFENSE FOR ACQUISITION AND SUSTAINMENT.— 
(1) IN GENERAL.—Section 133b(b) of title 10, United States 
Code, is amended— 
(A) in paragraph (8), by striking ‘‘and’’ at the end; 
(B) in paragraph (9)(C), by striking the period at the 
end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new paragraph: 
‘‘(10) advising the Secretary on, establishing policies on, 
and supervising, the activities of the Department relating to 
international cooperation and agreements regarding industrial 
base collaboration and coordination, including cooperative 
development 
and 
co-production, 
reciprocal 
production, 
exportability considerations, supply chain integration, security 
of supply chain agreements, and acquisition and cross-service 
agreements.’’. 
(2) GUIDANCE
REQUIRED.—Not later than July 1, 2025, 
the Secretary of Defense shall update relevant policies and 
guidance related to the duties of the Under Secretary of Defense 
for 
Acquisition 
and 
Sustainment 
prescribed 
in 
section 
133b(b)(10) of title 10, United States Code, as added by para-
graph (1). 
(b) CROSS-FUNCTIONAL TEAMS.—
H. R. 5009—255 
(1) ESTABLISHMENT.—Not later than July 1, 2025, the Sec-
retary of Defense shall establish not fewer than two Cross- 
Functional Teams to coordinate and support international 
cooperation activities of the Department of Defense. 
(2) PURPOSE.—Of the Cross-Functional Teams required 
under paragraph (1)— 
(A) at least one shall be dedicated to a geographic 
area of interest, such as a specific country or subset of 
an area of responsibility for a geographic combatant com-
mand; and 
(B) at least one shall be dedicated to a functional 
area of interest, such as munitions production, logistics, 
or additive manufacturing. 
(3) PARTICIPATION.—The Cross-Functional Teams estab-
lished under paragraph (1)— 
(A) shall include representation from— 
(i) the Office of the Under Secretary of Defense 
for Policy; 
(ii) the Office of the Under Secretary of Defense 
for Acquisition and Sustainment; and 
(iii) the Office of the Under Secretary of Defense 
for Research and Engineering; and 
(B) may include such other participants from across 
the Department of Defense as the Secretary of Defense 
determines appropriate. 
(4) CHAIRPERSON.—Each Cross-Functional Team shall have 
a Chairperson who shall be designated by the Secretary of 
Defense from among the representatives on the Team from 
the Offices specified in paragraph (3)(A). 
(c) STUDY
ON
CAPACITY
FOR
EXPANDED
INTERNATIONAL 
COOPERATION ACTIVITIES.— 
(1) IN GENERAL.—Not later than March 1, 2025, the Sec-
retary of Defense shall seek to enter into a contract with 
a federally funded research and development center or a univer-
sity-affiliated nonprofit organization to— 
(A) conduct a study with respect to whether the 
organization, resourcing, manning, and training of the 
Department of Defense for international cooperation activi-
ties is sufficient to support expanded demand for security 
cooperation activities with countries that are allies and 
partners of the United States; and 
(B) submit to the Secretary a report on the results 
of the study. 
(2) ELEMENTS.—The study conducted under paragraph (1) 
shall include the following: 
(A) An assessment of the roles and responsibilities 
of the Under Secretary of Defense for Policy, the Deputy 
Assistant Secretary of Defense for International and 
Industry Engagement, and any other officials the Secretary 
considers appropriate to include, to reduce overlap and 
increase cooperation between components of the Depart-
ment of Defense with respect to international cooperation 
activities. 
(B) An identification and assessment of mechanisms 
for coordination with the Department of State with respect 
to such activities.
H. R. 5009—256 
(C) An identification and assessment of existing tools 
in the Department of Defense to support international 
cooperation, including the Global Research Watch Program 
and the international research offices of the military 
departments. 
(D) An identification of industry fora, training or 
wargaming opportunities, and exercise events that could 
be leveraged to support increased international cooperation 
activities. 
(E) An assessment of the success, as of the date of 
the enactment of this Act, in integrating the defense indus-
trial bases of the United States and countries that are 
allies and partners of the United States, including rec-
ommendations with respect to— 
(i) goals for the end-state of that integration; and 
(ii) how to integrate those goals into the strategic 
planning documents and guidance of the Department 
of Defense. 
(F) An identification of additional opportunities for 
international defense industrial base cooperation and spe-
cific challenges to acting on those opportunities. 
(G) Any other matter the Secretary of Defense deter-
mines relevant. 
(3) SUBMISSION TO CONGRESS.—Not later than September 
1, 2025, the Secretary of Defense shall submit to the congres-
sional defense committees— 
(A) the report received by the Secretary under para-
graph (1)(B); and 
(B) any comments of the Secretary with respect to 
such report. 
(4) NONPROFIT ORGANIZATION DEFINED.—In this subsection, 
the term ‘‘nonprofit organization’’ means an organization 
described in section 501(c)(3) of the Internal Revenue Code 
of 1986 and exempt from tax under section 501(a) of such 
Code. 
SEC. 904. INCREASE IN AUTHORIZED NUMBER OF DEPUTY ASSISTANT 
SECRETARIES OF DEFENSE. 
Section 138(e) of title 10, United States Code, is amended 
by striking ‘‘60’’ and inserting ‘‘62’’. 
SEC. 905. MODIFICATIONS TO THE OFFICE OF STRATEGIC CAPITAL. 
(a) IN GENERAL.—Section 149 of title 10, United States Code, 
is amended— 
(1) by redesignating subsection (e) as subsection (f); 
(2) by inserting after subsection (d) the following new sub-
section: 
‘‘(e) PILOT PROGRAM
ON CAPITAL ASSISTANCE
TO SUPPORT 
DEFENSE INVESTMENT IN THE INDUSTRIAL BASE.— 
‘‘(1) To the extent and in such amounts as specifically 
provided in advance in appropriations Acts for the purposes 
detailed in this subsection, the Secretary of Defense, acting 
through the Director, may carry out a pilot program under 
this subsection to provide capital assistance to eligible entities 
for eligible investments to develop technologies that support 
the duties and elements of the Office and meet the needs 
of the Department of Defense.
H. R. 5009—257 
‘‘(2)(A) An eligible entity seeking capital assistance for an 
eligible investment under this subsection shall submit to the 
Director an application at such time, in such manner, and 
containing such information as the Director may require. 
‘‘(B) The Director shall establish criteria for selecting 
among eligible investments for which applications are sub-
mitted under subparagraph (A). The criteria shall include— 
‘‘(i) the extent to which an investment supports the national 
security or economic interests of the United States; 
‘‘(ii) the likelihood that capital assistance provided for an 
investment would enable the investment to proceed sooner than 
the investment would otherwise be able to proceed; and 
‘‘(iii) the creditworthiness of an investment. 
‘‘(3)(A)(i) To the extent and in such amounts as specifically 
provided in advance in appropriations Acts for the purposes 
detailed in this subsection, the Director may provide loans 
or loan guarantees to finance or refinance the costs of an 
eligible investment selected pursuant to paragraph (2)(B). 
‘‘(ii)(I)(aa) Except as provided under item (bb), the 
interest rate on a loan provided under clause (i) shall 
be not less than the yield on marketable United States 
Treasury securities of a similar maturity to the maturity 
of the loan on the date of execution of the loan agreement. 
‘‘(bb) The Director may waive the requirement 
under item (aa) with respect to an investment if the 
investment is determined by the Secretary of Defense 
to be vital to the national security of the United States. 
‘‘(cc) The Director shall establish separate and dis-
tinct criteria for interest rates for loan guarantees 
with private sector lending institutions. 
‘‘(II) The final maturity date of a loan provided under 
clause (i) shall be not later than 50 years after the date 
on which the loan was provided. 
‘‘(III) A loan provided under clause (i) may be paid 
earlier than is provided for under the loan agreement with-
out a penalty. 
‘‘(IV)(aa) A loan provided under clause (i) shall not 
be subordinated to the claims of any holder of investment 
obligations in the event of bankruptcy, insolvency, or liq-
uidation of the obligor. 
‘‘(bb) The Director may waive the requirement under 
item (aa) with respect to the investment in order to mitigate 
risks to loan repayment. 
‘‘(V) The Director may sell to another entity or reoffer 
into the capital markets a loan provided under clause (i) 
if the Director determines that the sale or reoffering can 
be made on favorable terms. 
‘‘(VI) Any loan guarantee provided under clause (i) 
shall specify the percentage of the principal amount 
guaranteed. If the Secretary determines that the obligor 
of a loan guaranteed by the Department of Defense defaults 
on the loan, the Director shall pay the holder, or such 
other party, as specified in the loan guarantee agreement. 
‘‘(VII) The Director shall establish a credit rating 
system to ensure a reasonable assurance of repayment. 
The system may include use of existing credit rating agen-
cies where appropriate.
H. R. 5009—258 
‘‘(VIII) Loans and loan guarantees provided under 
clause (i) shall be subject to such other terms and conditions 
and contain such other covenants, representations, warran-
ties, and requirements (including requirements for audits) 
as the Secretary determines appropriate. 
‘‘(IX) Loans and loan guarantees provided under clause 
(i) shall be subject to the requirements of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661 et seq.). 
‘‘(B) Subject to appropriations Acts, the Director may 
provide technical assistance with respect to developing and 
financing investments to eligible entities seeking capital 
assistance for eligible investments and eligible entities 
receiving capital assistance under this subsection. 
‘‘(C)(i) To the extent and in such amounts as specifically 
provided in advance in appropriations Acts for the purposes 
detailed in this subsection, the Director shall provide to 
an eligible investment selected pursuant to paragraph 
(2)(B) the amount of capital assistance necessary to carry 
out the investment. 
‘‘(ii) All financial transactions conducted under this 
subsection shall be conducted in United States dollars. 
‘‘(4) The requirements of subsection (d) shall apply to 
eligible investments under this subsection. 
‘‘(5)(A)(i) There is established in the Treasury of the United 
States a Department of Defense Credit Program Account to 
make and guarantee loans under this subsection in accordance 
with section 502 of the Federal Credit Reform Act of 1990 
(2 U.S.C. 661a). 
‘‘(ii) The Credit Program Account shall consist of 
amounts appropriated pursuant to the authorization of 
appropriations. 
‘‘(B) To the extent and in such amounts as specifically 
provided in advance in appropriations Acts for the purposes 
detailed in this subsection, the Director is authorized to pay, 
from amounts in the Department of Defense Credit Program 
Account— 
‘‘(i) the cost, as defined in section 502 of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661a), of loans and 
loan guarantees and other capital assistance; 
‘‘(ii) administrative expenses associated with activities 
under this subsection; 
‘‘(iii) project-specific transaction costs; and 
‘‘(iv) the cost of providing support authorized by this 
subsection. 
‘‘(6) The Secretary of Defense may prescribe such regula-
tions as the Secretary determines to be appropriate to carry 
out this subsection. 
‘‘(7) Not later than the first Monday in February of a 
fiscal year, the Secretary of Defense shall submit to the congres-
sional defense committees an annual report describing activities 
carried out pursuant to this subsection in the preceding fiscal 
year and the goals of the Department of Defense in accordance 
with this subsection for the next fiscal year. 
‘‘(8) The Secretary of Defense shall notify the congressional 
defense committees not later than 30 days after a use of loans, 
loan guarantees, or technical assistance under this subsection.
H. R. 5009—259 
‘‘(9)(A) The authority of the Director to make new loans 
and provide new loan guarantees under subparagraph (A)(i) 
of paragraph (3) shall expire on October 1, 2028. Any loans 
or loan guarantees provided under such subparagraph that 
are outstanding as of such date shall continue to be subject 
to the terms, conditions, and other requirements of this sub-
section. 
‘‘(B) The authority of the Director to provide technical 
assistance to eligible entities under subparagraph (B) of para-
graph (3) shall expire on October 1, 2028.’’; and 
(3) in subsection (f), as so redesignated— 
(A) in paragraph (2), by adding at the end the following 
new subparagraphs: 
‘‘(FF) Strategic maritime infrastructure. 
‘‘(GG) Critical minerals and materials.’’; and 
(B) by adding at the end the following new paragraph: 
‘‘(5) The term ‘obligor’ means a party that is primarily 
liable for payment of the principal or interest on a loan.’’. 
(b) CONFORMING
REPEAL.—Section 903(b) of the National 
Defense Authorization Act for Fiscal Year 2024 (Public Law 118– 
31; 10 U.S.C. 4811 note) is repealed. 
SEC. 906. LIMITATION ON AVAILABILITY OF FUNDS UNTIL DEPART-
MENT OF DEFENSE COMPLIES WITH CERTAIN LEGAL 
REQUIREMENTS. 
Of the funds authorized to be appropriated by this Act or 
otherwise made available for fiscal year 2025 for the Office of 
the Assistant Secretary of Defense for Legislative Affairs, not more 
than 90 percent may be obligated or expended until the date on 
which the Deputy Secretary of Defense certifies to the congressional 
defense committees that the Department of Defense has imple-
mented section 1046 of the James M. Inhofe National Defense 
Authorization Act for Fiscal Year 2023 (Public Law 117–263; 10 
U.S.C. 111 note). 
SEC. 907. MATTERS RELATING TO ASSISTANT SECRETARY OF DEFENSE 
FOR SPECIAL OPERATIONS AND LOW INTENSITY CON-
FLICT. 
(a) IN GENERAL.—Not later than one year after the date of 
the enactment of this Act, the Secretary of Defense shall— 
(1) using a systematic approach, identify and update rel-
evant policies, processes, and policy guidance of the Department 
of Defense to fully implement and institutionalize the position 
of Assistant Secretary of Defense for Special Operations and 
Low Intensity Conflict (in this section referred to as the ‘‘Assist-
ant Secretary’’) to ensure that the Assistant Secretary exercises 
authority, direction, and control of all special-operations 
peculiar administrative matters relating to the organization, 
training, and equipping of special operations forces as required 
under section 138(b)(2)(A)(i) of title 10, United States Code, 
including— 
(A) special operations budgeting and programming, 
legislative affairs, operations, personnel, and public affairs 
activities; and 
(B) protocols for participation in decision-making fora 
of the Department involving special operations forces; 
(2) develop a long-term staffing plan for the Secretariat 
for Special Operations established under section 139b(a) of
H. R. 5009—260 
title 10, United States Code, that incorporates strategic 
workforce planning principles, including an articulation of the 
mission of the Secretariat, an identification of critical skill 
gaps, and a strategy to hire personnel to address such gaps; 
(3) produce written departmental guidance to clarify the 
respective administrative roles of the Under Secretary of 
Defense for Policy and the Assistant Secretary, including guid-
ance to ensure adequate support for the Secretariat from Wash-
ington Headquarters Services, the Office of the Director of 
Administration and Management, Joint Service Provider, and 
other administrative offices of the Department; 
(4) establish a process for development, coordination, and 
issuance by the Assistant Secretary of special operations 
instructions and other Department-wide policies, instructions, 
directive-type memorandums, or other documents consistent 
with the responsibilities assigned to the Assistant Secretary; 
(5) establish a process for the Assistant Secretary and 
the Commander of the United States Special Operations Com-
mand to monitor the promotions of members of special oper-
ations forces and coordinate with the military departments 
regarding the assignment, retention, training, professional mili-
tary education, and special and incentive pays of members 
of special operations forces consistent with the responsibilities 
assigned to the Assistant Secretary and the Commander; and 
(6) establish a Center for Special Operations Analysis to 
lead special operations-related analysis for the Department and 
ensure senior civilian and military leaders have adequate 
analytical support for decision making related to the organiza-
tion, training, equipping, and employment of special operations 
forces. 
(b) PLAN REQUIRED.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a plan, including appro-
priate milestones and timelines for completion, for achieving the 
requirements under subsection (a). 
SEC. 908. INCLUSION IN DEFENSE PLANNING GUIDANCE OF GUIDANCE 
ON SIZE, STRUCTURE, AND POSTURE OF SPECIAL OPER-
ATIONS FORCES. 
(a) IN GENERAL.—As part of the annual Defense Planning Guid-
ance issued under section 113(g)(2)(A) of title 10, United States 
Code, the Secretary of Defense shall include guidance with respect 
to the size, structure, posture, and other force development planning 
priorities specific to special operations forces. 
(b) REPORT REQUIRED.— 
(1) IN
GENERAL.—Not later than March 1, 2025, and 
annually thereafter for five years, the Secretary of Defense 
shall submit to the congressional defense committees a report 
detailing how the Defense Planning Guidance issued under 
section 113(g)(2)(A) of title 10, United States Code, specifically 
accounts for the size, structure, posture, and other force 
development planning priorities specific to special operations 
forces necessary— 
(A) to support the National Defense Strategy under 
section 113(g)(1) of that title; and 
(B) to carry out the special operations activities speci-
fied in section 167(k) of that title.
H. R. 5009—261 
(2) ELEMENTS.—The annual report required by paragraph 
(1) shall, at a minimum— 
(A) describe specific actions taken by the Secretary 
of the Army, the Secretary of the Air Force, and the Sec-
retary of the Navy to coordinate requirements for the 
organization, training, and equipping of special operations 
forces with the Assistant Secretary of Defense for Special 
Operations and Low Intensity Conflict, consistent with 
responsibilities and authorities of the Assistant Secretary 
under section 138(b)(2)(A) of title 10, United States Code, 
in order to achieve the objectives of— 
(i) the National Defense Strategy; 
(ii) the Joint Warfighting Concept; 
(iii) the Joint Concept for Competing; and 
(iv) the Strategy for Operations in the Information 
Environment; and 
(B) include specific recommendations developed by the 
Assistant Secretary of Defense for Special Operations and 
Low Intensity Conflict, in coordination with the Com-
mander of the United States Special Operations Command, 
for the size, organization, budget, training, and equipping 
of special operations forces to meet the objectives of the 
strategies and concepts specified in clauses (i) through 
(iv) of subparagraph (A). 
SEC. 909. REVIEW OF ROLES AND RESPONSIBILITIES OF THE CHIEF 
TALENT MANAGEMENT OFFICER AND THE OFFICE OF THE 
UNDER SECRETARY OF DEFENSE FOR PERSONNEL AND 
READINESS. 
(a) REVIEW REQUIRED.—The Secretary of Defense shall seek 
to enter into a contract or other agreement with a qualified 
organization to conduct a review of— 
(1) the roles and responsibilities of the Chief Talent 
Management Officer of the Department of Defense; and 
(2) the structure, mission, and operation of the Office of 
the Under Secretary of Defense Personnel and Readiness. 
(b) ELEMENTS.—In carrying out the review under subsection 
(a), the qualified organization concerned shall— 
(1) develop a strategy for the implementation of the position 
of the Chief Talent Management Officer of the Department 
of Defense pursuant to which the Officer shall be responsible 
for— 
(A) serving as the principal staff assistant to the Sec-
retary of Defense and Deputy Secretary of Defense on 
matters relating to total force talent management within 
the Department of Defense, including talent management 
for military personnel (including members of the active 
and reserve components of the Armed Forces) and civilian 
personnel of the Department; 
(B) developing and implementing the overall talent 
strategy for military and civilian personnel in the Depart-
ment of Defense, which shall include working across the 
military departments, Joint Staff, Office of the Secretary 
of Defense, and with interagency partners to lead the total 
force talent acquisition and management efforts of the 
Department;
H. R. 5009—262 
(C) overseeing updates and reforms for remote and 
hybrid work, the use of enabling technology, practices for 
developing and tracking talent, and encouraging movement 
of talent across components, agencies, and non-govern-
mental entities to help promote flexible career pathways 
and increase retention; 
(D) matching talent to needs within the Department 
and integrate broad upskilling and reskilling programs to 
create the future national defense workforce; 
(E) coordinating all talent programs within the Depart-
ment, including by developing pathways for permeability 
between uniformed and non-uniformed service opportuni-
ties and opportunities in the private sector; 
(F) maintaining, strengthening, and improving the 
Department’s use of competitive service hiring authorities 
under title 5, United States Code, and the authorities avail-
able under section 129 of title 10, United States Code, 
to ensure the Department recruits and retains a strong 
and professional civilian workforce; 
(G) studying and promoting best practices for workforce 
development from the government, nonprofit, academic, 
and private sectors; 
(H) serving as the principal liaison between the Depart-
ment and the national security talent industrial and 
innovation base; 
(I) carrying out programs, projects, and other activities 
to strengthen the national security talent industrial and 
innovation base; 
(J) identifying rules, regulations, policies, and guidance 
related to military and civilian talent management that 
require change for the purposes of achieving efficiencies 
and meeting the personnel needs of the Department; 
(K) coordinating with the Joint Staff and the Com-
manders of the combatant commands to identify talent 
needs to meet operational challenges; 
(L) developing an employer brand for the Department 
of Defense that positions the Department as a sought after 
employer; 
(M) developing a capability to rapidly prototype 
workforce development and talent acquisition approaches 
with non-profit, academic, Government, and private sector 
agencies and organizations; 
(N) seeking partnerships with multiple intermediary 
organizations, including academic institutions and other 
key stakeholders in the talent industrial and innovation 
base, to carry out activities to support the development 
of pools of qualified individuals with the skills and expertise 
necessary to meet critical personnel needs of the Depart-
ment of Defense, which may include activities such as 
the identification, training, and vetting of critical talent 
for the Department, including individuals with expertise 
relating to artificial intelligence, biotechnology, cybersecu-
rity, materials and manufacturing, business processes, ven-
ture capital, financial markets, and other critical areas; 
and
H. R. 5009—263 
(O) carrying out such other duties relating to talent 
management as may be assigned by the Secretary of 
Defense; 
(2) develop recommendations for any additional authorities 
or funding that may be required for the Chief Talent Manage-
ment Officer to carry out the responsibilities specified in para-
graph (1); 
(3) review the structure of the Office of the Under Secretary 
of Defense for Personnel and Readiness and evaluate the ability 
of that Office to effectively address total force talent manage-
ment, including military and civilian personnel; and 
(4) develop recommendations for restructuring the Office 
of the Under Secretary of Defense for Personnel and Readiness 
to ensure the Office is able to effectively address total force 
talent management as described in paragraph (3) and support 
the Chief Talent Management Officer in carrying out the 
responsibilities described in paragraph (1). 
(c) REPORT.—Not later than January 1, 2026, the Secretary 
of Defense shall submit to the Committees on Armed Services 
of the Senate and the House of Representatives a report on the 
results of the review conducted under subsection (a). Such report 
shall include— 
(1) the results of the review with respect to each element 
specified in subsection (b); and 
(2) such other information as the Secretary determines 
appropriate. 
(d) QUALIFIED ORGANIZATION DEFINED.—In this section, the 
term ‘‘qualified organization’’ means an independent organization 
with experience in the field of talent acquisition and management, 
as determined by the Secretary of Defense. 
SEC. 910. PLAN FOR ADEQUATE STAFFING OF OFFICE OF ASSISTANT 
SECRETARY OF DEFENSE FOR INDUSTRIAL BASE POLICY 
AND JOINT PRODUCTION ACCELERATOR CELL. 
(a) IN GENERAL.—Not later than 90 days after the date of 
the enactment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a plan for adequately 
staffing the Office of the Assistant Secretary of Defense for Indus-
trial Base Policy and the Joint Production Accelerator Cell to advise 
and generate options for the Under Secretary of Defense for Acquisi-
tion and Sustainment relating to the duties described in section 
133b(b)(3) of title 10, United States Code, including— 
(1) identifying Chinese military companies, contracting 
restrictions, and transactions involving foreign entities; 
(2) outbound investment monitoring; and 
(3) supply chain analysis, supplier health analysis, produc-
tion capacity analysis, and such other analyses as the Under 
Secretary may require. 
(b) ELEMENTS.—The plan required by subsection (a) shall 
include the following: 
(1) An estimate of— 
(A) the number of personnel necessary to fulfill the 
responsibilities of the Office of the Assistant Secretary 
of Defense for Industrial Base Policy and the Joint Produc-
tion Accelerator Cell in supporting the Under Secretary 
of Defense for Acquisition and Sustainment relating to
H. R. 5009—264 
the duties described in section 133b(b)(3) of title 10, United 
States Code; and 
(B) associated funding across the period covered by 
the most recent future-years defense program under section 
221 of that title. 
(2) A hiring plan, with milestones, for gradually increasing 
the number of personnel in the Office of the Assistant Secretary 
of Defense for Industrial Base Policy and the Joint Production 
Accelerator Cell to the number described in paragraph (1)(A). 
(3) A breakdown of the optimal mix of military, civilian, 
and contractor personnel in the Office of the Assistant Secretary 
of Defense for Industrial Base Policy and the Joint Production 
Accelerator Cell. 
(4) An identification of any anticipated funding shortfalls 
for personnel in the Office of the Assistant Secretary of Defense 
for Industrial Base Policy and the Joint Production Accelerator 
Cell across the period covered by the most recent future-years 
defense program. 
(5) Any other matters the Secretary of Defense determines 
relevant. 
Subtitle B—Other Department of Defense 
Organization and Management Matters 
SEC. 921. DEPARTMENT OF DEFENSE SENIOR INTELLIGENCE OVER-
SIGHT OFFICIAL. 
(a) IN GENERAL.—Subchapter I of chapter 21 of title 10, United 
States Code, is amended by adding at the end the following: 
‘‘§ 430c. Senior intelligence oversight official 
‘‘(a) ESTABLISHMENT.—The Secretary of Defense, or a designee 
of the Secretary determined by regulations prescribed by the Sec-
retary, shall designate a civilian employee of the Department of 
Defense in the Senior Executive Service to serve as the Senior 
Intelligence Oversight Official. 
‘‘(b) RESPONSIBILITIES.—The Senior Intelligence Oversight Offi-
cial shall conduct independent oversight of all intelligence, counter-
intelligence, and intelligence-related activities of the Department 
of Defense and shall have such other related responsibilities as 
may be determined by the Secretary. 
‘‘(c) ACCESS.—The Senior Intelligence Oversight Official shall 
have— 
‘‘(1) access to all information necessary to carry out the 
responsibilities and functions of the Senior Intelligence Over-
sight Official, as determined by the Secretary; and 
‘‘(2) direct access to the Secretary of Defense and the 
Deputy Secretary of Defense, as circumstances require in the 
determination of the Senior Intelligence Oversight Official.’’. 
(b) REVIEW OF REGULATIONS.—The Secretary of Defense shall 
review and update, as appropriate, Department of Defense Directive 
5148.13, and any associated or successor regulation or directive, 
to conform to section 430c of title 10, United States Code, as 
added by subsection (a).
H. R. 5009—265 
SEC. 922. CODIFICATION OF THE JOINT FEDERATED ASSURANCE 
CENTER. 
(a) IN GENERAL.—Subchapter III of chapter 303 of title 10, 
United States Code, is amended by adding at the end the following 
new section: 
‘‘§ 4128. Joint Federated Assurance Center 
‘‘(a) ESTABLISHMENT.—There is in the Office of the Under Sec-
retary of Defense for Research and Engineering a Joint Federated 
Assurance Center (referred to in this section as the ‘Center’). 
‘‘(b) PURPOSE.—The purpose of the Center shall be to serve 
as a joint, Department-wide federation of organizations and 
capabilities to support the assurance needs of the Department of 
Defense by ensuring, pursuant to policies related to hardware and 
software assurance and supply chain risk management, that the 
software and hardware developed, acquired, maintained, and used 
by the Department are free from intentional and unintentional 
vulnerability during the life-cycle of development and deployment 
of assured, trustworthy defense systems. 
‘‘(c) GOVERNANCE.— 
‘‘(1) The Center shall be governed by an Executive Steering 
Group. The Executive Steering Group shall continually evaluate 
the Center’s capabilities to support the hardware and software 
assurance needs of the Department. 
‘‘(2) The Executive Steering Group shall be composed of 
one or more representatives from each of the organizations 
that comprise the Center. 
‘‘(3) The Under Secretary of Defense for Research and 
Engineering and the Under Secretary of Defense for Acquisition 
and Sustainment shall serve as co-Chairpersons of the Execu-
tive Steering Group. 
‘‘(d) DUTIES.—The duties of the Center are as follows: 
‘‘(1) Providing knowledge management capabilities for 
hardware and software assurance for the Department. 
‘‘(2) Providing Department-wide visibility on strategy, use 
cases, procurement, investment, and other relevant activities 
to aggregate, to the extent practicable, assurance tool purchases 
by the Department. 
‘‘(3) Developing and standardizing policies, procedures, 
competencies, risk assessment methodologies, and independent 
validation and verification test capabilities— 
‘‘(A) to support timely and cost-effective fielding of 
current and future technologies to the Department; 
‘‘(B) to ensure sustainment of enduring capability needs 
across the life-cycle of Department of Defense programs 
and determine the sustainment factors related to the assur-
ance of future hardware and software systems; 
‘‘(C) to increase efficiencies across Department of 
Defense programs through the use of emerging assurance 
technologies; and 
‘‘(D) to leverage economies of scale through coordinated 
acquisition and use of hardware and software assurance 
technologies. 
‘‘(4) Promoting assurance capabilities for hardware and 
software assurance— 
‘‘(A) to mature assessment criteria and enable scalable 
deployment of commercial best practices, such as through
H. R. 5009—266 
the fostering and maturation of evidence-based assurance 
of trusted defense microelectronics system needs, with 
emphasis on commercial security protocols that are 
transferable to defense applications; 
‘‘(B) to scale the Center for Department-wide access, 
through the resourcing of adequate personnel to address 
standardization and automation of data collection and anal-
ysis; 
‘‘(C) to utilize data from commercial assurance proc-
esses to support the development of Department hardware 
and software that meet standards, applications, and 
requirements, including through comparative analysis and 
data modeling; 
‘‘(D) to seek and apply commercial best practices, where 
practicable, through industry collaboration; and 
‘‘(E) to develop and align Department policy, invest-
ments, and activities with commercial best practices, to 
the extent practicable. 
‘‘(5) For contracts for application-specific integrated circuits 
designed by defense industrial base contractors, develop guid-
ance for— 
‘‘(A) the consideration of evidence-based assurance 
processes and techniques that are included in the contract 
data requirements list, to the extent practicable; 
‘‘(B) the use of commercial best practices, as applicable, 
for confidentiality, integrity and availability; and 
‘‘(C) the development of a library of certified third- 
party intellectual property for reuse, including streamlining 
legal mechanisms for data collection and sharing, and 
enhanced use of automation technology to achieve effi-
ciency. 
‘‘(6) The assessment, creation, prototyping, maturation, and 
maintenance of relevant assurance practices, including the 
validation and maturation of evidence based assurance 
methods, for the development, procurement, and deployment 
of hardware and software assurance tools and processes, 
including— 
‘‘(A) development and assessment of validation methods 
for such processes and techniques, in coordination with 
the developmental and operational test and evaluation 
community, as the Executive Steering Group determines 
necessary; 
‘‘(B) development and assessment of threat models that 
comprehensively characterize the threat to microelectronics 
confidentiality, integrity, and availability across the entire 
supply chain, and the design, production, packaging, and 
deployment cycle to support risk management and risk 
mitigation; and 
‘‘(C) support development of guides to inform use and 
decision-making by program evaluators, program offices, 
and industry to meet software and hardware assurance 
requirements. 
‘‘(e) REVISED CHARTER.—Not later than 180 days after the 
date of the enactment of this section, the Secretary of Defense 
shall issue a revised charter for the Center. The charter shall 
set forth—
H. R. 5009—267 
‘‘(1) the role and authorities of the Center and the Executive 
Steering Group; 
‘‘(2) the requirement of the Center to establish guidelines 
for the development of improved software code vulnerability 
analysis and testing tools; 
‘‘(3) the requirement of the Center to establish guidelines 
for the development of improved hardware vulnerability testing 
and protection tools; and 
‘‘(4) the manner in which the Center will connect to the 
Department’s major governance and resourcing processes to 
ensure the continuation of Center duties.’’. 
(b) BRIEFING REQUIRED.—Not later than 240 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
provide to the Committees on Armed Services of the Senate and 
the House of Representatives a briefing on the status of— 
(1) the establishment of the Joint Federated Assurance 
Center under section 4218 of title 10, United States Code, 
as added by subsection (a); and 
(2) the revisions to the charter of the Center required 
under subsection (e) of such section 4128. 
(c) CONFORMING REPEAL.—Section 937 of the National Defense 
Authorization Act for Fiscal Year 2014 (Public Law 113–66; 10 
U.S.C. 2224 note) is repealed. 
SEC. 923. CODIFICATION OF ADDITIONAL STAFF CORPS OF THE NAVY. 
(a) CODIFICATION.—Section 8090 of title 10, United States Code, 
is amended, in subsection (a)— 
(1) in paragraph (4), by striking ‘‘and’’; 
(2) by redesignating paragraph (5) as paragraph (9); and 
(3) by inserting, after paragraph (4), the following new 
paragraphs: 
‘‘(5) the Supply Corps; 
‘‘(6) the Civil Engineer Corps; 
‘‘(7) the Nurse Corps; 
‘‘(8) the Medical Service Corps; and’’. 
(b) 
CONFORMING
AMENDMENT.—Such 
section 
is 
further 
amended, in subsection (b)(1), by striking ‘‘Medical Corps, the 
Dental Corps, the Judge Advocate General’s Corps, and the Chap-
lain Corps’’ and inserting ‘‘staff corps specified in subsection (a)’’. 
SEC. 924. ESTABLISHMENT OF OFFICE OF EXPANDED COMPETITION. 
(a) IN GENERAL.—Chapter 903 of title 10, United States Code, 
is amended by adding at the end the following new section: 
‘‘§ 9025. Office of Expanded Competition 
‘‘(a) ESTABLISHMENT.—There is in the Office of the Secretary 
of the Air Force an office to be known as the Office of Expanded 
Competition (in this section referred to as the ‘Office’). 
‘‘(b) DIRECTOR.—The head of the Office shall be the Director. 
The Director shall be appointed by the Secretary of the Air Force 
from among employees of the Department of Defense with requisite 
subject matter expertise who— 
‘‘(1) are in a Senior Executive Service position (as defined 
in section 3132 of title 5) at the time of appointment; or 
‘‘(2) are not in a Senior Executive Service position at the 
time of appointment, but meet the Executive Core Qualifica-
tions (ECQs) for such a position. 
‘‘(c) DUTIES.—The duties of the Office are as follows:
H. R. 5009—268 
‘‘(1) In consultation with other components of the Depart-
ment of Defense and the Federal Government, conduct coordi-
nated and integrated assessments of adversarial capital flows 
into industries or businesses of interest to the Department 
of Defense. 
‘‘(2) Identify and prioritize promising critical technologies 
and assets for the Joint Force in need of capital assistance, 
including critical technologies and assets available from foreign 
entities. 
‘‘(3) Fund investments in such technologies and assets, 
including supply chain technologies not always supported 
through direct investment. 
‘‘(4) Support the coordination and outreach efforts of tech-
nology scouting and acquisition elements within the Depart-
ment of Defense to enable investment decision-making by those 
elements that counteract entities employing adversarial capital 
flows against industries or businesses described in paragraph 
(1), including the employment of relevant authorities vested 
in other components of the Department and the Federal Govern-
ment. 
‘‘(5) Identify, accelerate, and sustain the establishment, 
research, development, construction, procurement, leasing, 
consolidation, alteration, improvement, modernization, and 
repair of tangible and intangible assets vital to the national 
security of the United States. 
‘‘(6) Help the Department of Defense provide capital assist-
ance to entities, including foreign entities, engaged in invest-
ments that facilitate the efforts of the Department. 
‘‘(7) Experiment, prototype, test, or validate Government- 
developed or commercially developed analytical tools, processes, 
and tradecraft to improve the due diligence and investment 
analysis processes for the Department of Defense, including 
the employment of relevant delegated authorities vested in 
other components of the Department and the Federal Govern-
ment. 
‘‘(8) Assist the Secretary of Defense in developing access 
and placement using commercial means. 
‘‘(9) Otherwise engage with, coordinate, and collaborate 
with other components of the Department of Defense and the 
Federal Government to maximize efficiencies and promote 
whole-of-government solutions to protect the national security 
of the United States. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘adversarial capital flow’ means an invest-
ment by— 
‘‘(A) the government of a country that is an adversary 
of the United States; or 
‘‘(B) an entity organized under the laws of, or otherwise 
subject to the jurisdiction of, such a country. 
‘‘(2) The term ‘capital assistance’ means a loan, loan guar-
antee, or technical assistance.’’. 
(b) BRIEFING.—Not later than 180 days after the date of the 
enactment of this Act, the Secretary of the Air Force shall provide 
to the congressional defense committees a briefing on the status 
of the implementation of the Office of Expanded Competition as 
required under section 9025 of title 10, United States Code (as 
added by subsection (a)).
H. R. 5009—269 
SEC. 925. COUNTER UNMANNED AERIAL SYSTEMS TASK FORCE. 
(a) IN GENERAL.—Not later than 30 days after the date of 
the enactment of this Act, the Secretary of Defense shall establish, 
or designate from existing organizations and personnel of the 
Department of Defense, a counter unmanned aerial systems task 
force, to be known as the ‘‘C-UAS Task Force’’. 
(b) REVIEW OF MEMORANDA AND DIRECTIVES.— 
(1) IN GENERAL.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense and 
the Chairman of the Joint Chiefs of Staff, acting through the 
C-UAS Task Force, shall review and, if necessary, consolidate 
and update all Department of Defense memoranda and direc-
tives related to the countering of unmanned aircraft systems 
in United States airspace to provide clarity to and an expedited 
decision-making process for commanders with respect to effec-
tively countering unmanned aircraft systems or unmanned air-
craft incursions at military installations in the United States. 
(2) INCLUDED MEMORANDA AND DIRECTIVES.—The memo-
randa and directives required to be reviewed and, if necessary, 
consolidated and updated under paragraph (1) include the fol-
lowing: 
(A) The Counter-Small Unmanned Aircraft Systems 
Strategy of the Department of Defense, dated January 
7, 2021. 
(B) The Deputy Secretary of Defense Memorandum 
entitled ‘‘Risk-based Assessment in Support of Counter- 
Unmanned Aircraft Activities to Protect DOD Facilities 
and Assets’’ and dated May 7, 2020. 
(C) Deputy Secretary of Defense Policy Memorandum 
16–003, 
entitled 
‘‘Interim 
Guidance 
for 
Countering 
Unmanned Aircraft’’ and dated August 18, 2016. 
(D) Deputy Secretary of Defense Policy Memorandum 
17–00X, entitled ‘‘Supplemental Guidance for Countering 
Unmanned Aircraft’’ and dated July 5, 2017. 
(E) Chairman of the Joint Chiefs of Staff Notice 3124, 
entitled ‘‘Interim Guidance for Countering Unmanned Air-
craft’’ and dated February 8, 2017. 
(F) Other related general administrative notices of the 
Joint Staff. 
(G) Any other associated memoranda or directives of 
the Department of Defense relating to unmanned aircraft 
systems, as the Secretary of Defense and the Chairman 
of the Joint Chiefs of Staff determine necessary. 
(c) ISSUANCE OF UPDATED GUIDANCE.— 
(1) IN GENERAL.—Not later than 120 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
issue new memoranda, directives, and guidance related to 
authorities to counter unmanned aircraft systems. 
(2) DISSEMINATION
TO
INSTALLATION
COMMANDERS.—The 
Secretary of Defense shall ensure that memoranda, directives, 
and guidance issued under paragraph (1), and any subsequent 
memoranda, directives and guidance, are included in pre- 
briefings for any officers that assume command of a military 
installation in the United States on or after July 1, 2025. 
(3) STANDARD
OPERATING
PROCEDURES
FOR
MILITARY 
INSTALLATIONS.—
H. R. 5009—270 
(A) IN GENERAL.—Not later than 60 days after the 
issuance of the memoranda, directives, and guidance 
required by paragraph (1), each commander of a military 
installation shall issue operating procedures specific to 
their military installation for countering unmanned aircraft 
systems at the installation. 
(B) EXTENSION
DURING
CHANGES
IN
COMMAND.—If 
there is a change of command of a military installation 
during the 60-day period described in subparagraph (A), 
the incoming commander of the installation shall issue 
operating procedures specific to their military installation 
required by that subparagraph not later than 60 days 
after receiving the pre-briefing described in paragraph (2). 
(d) REPORT ON EXISTING TRAINING EFFORTS.—Not later than 
120 days after the date of the enactment of this Act, the Secretary 
of Defense shall submit to the congressional defense committees 
a report on the counter-unmanned aircraft systems training efforts 
of the Department of Defense in effect as of the date of the enact-
ment of this Act. The report shall include— 
(1) a description of any training that is commonly provided 
to members of the Armed Forces on countering threats posed 
by unmanned aircraft systems; and 
(2) a summary of the training curriculum that is provided 
for installation commanders and deployed forces to counter 
unmanned aircraft systems. 
SEC. 926. AFFILIATE RELATIONSHIPS BETWEEN ARMY SPECIAL OPER-
ATIONS FORCES AND COMBAT-ENABLING UNITS OF GEN-
ERAL PURPOSE FORCES. 
(a) LIMITATION.—None of the funds authorized to be appro-
priated by this Act or otherwise made available for fiscal year 
2025 for the Department of Defense may be obligated or expended 
to complete the special operations force structure reductions 
described in subsection (b) until the date on which the assessment 
required under subsection (c) is submitted to the congressional 
defense committees. 
(b) FORCE STRUCTURE REDUCTIONS DESCRIBED.—The special 
operations force structure reductions described in this subsection 
are the proposed reductions to the end strengths of the special 
operations forces of the Army announced by the Army on February 
27, 2024, as part of the Total Army Analysis process. 
(c) ASSESSMENT OF FEASIBILITY AND ADVISABILITY OF AFFILIATE 
RELATIONSHIPS.— 
(1) IN GENERAL.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of the Army and 
the Assistant Secretary of Defense for Special Operations and 
Low Intensity Conflict shall jointly submit to the congressional 
defense committees a report assessing the feasibility and advis-
ability of establishing affiliate relationships between units of 
the Army special operations forces and Army general purpose 
forces for the purpose of enhancing military readiness and 
effectiveness. 
(2) ELEMENTS.—The report required by paragraph (1) shall 
include, at a minimum, the following: 
(A) An assessment of the feasibility and advisability 
of establishing formal affiliate relationships between units 
of the Army special operations forces and combat-enabling
H. R. 5009—271 
units of the Army general purpose forces, including units 
that perform the following missions: 
(i) Logistics. 
(ii) Intelligence. 
(iii) Communications. 
(iv) Explosive ordnance disposal. 
(v) Electronic warfare. 
(vi) Rotary wing support. 
(vii) Combat medicine. 
(viii) Information operations. 
(ix) Civil affairs. 
(x) Such other missions as the Secretary and the 
Assistant Secretary consider relevant. 
(B) A summary of organic forces and assigned forces 
conducting the missions described in subparagraph (A) for 
Army special operations forces as of the date of the enact-
ment of this Act. 
(3) CONSIDERATIONS.—In developing the report required 
by paragraph (1), the Secretary and the Assistant Secretary 
shall take into account the following: 
(A) The enabling requirements of both the Army special 
operations forces and the Army general purpose forces. 
(B) The availability of high-demand, low-density 
enabling capabilities of the Army general purpose forces. 
(C) Deployment-to-dwell standards. 
(D) The ability of Army general purpose forces and 
Army special operations forces to fulfill current service 
specific and joint force requirements. 
(d) PLAN FOR ESTABLISHING AFFILIATE RELATIONSHIPS.—If, in 
the report required by subsection (c)(1), the Secretary and the 
Assistant Secretary determine that it is feasible and advisable 
to establish formal affiliate relationships between units of the Army 
special operations forces and combat-enabling units of the Army 
general purpose forces, then, not later than 270 days after the 
date of the enactment of this Act, the Secretary and the Assistant 
Secretary shall jointly submit to the congressional defense commit-
tees a plan for establishing such relationships that includes, at 
a minimum, an identification of units to be affiliated and a timeline 
for doing so. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘affiliate relationship’’ means a habitual rela-
tionship between a unit or units of the Army special operations 
forces and a combat-enabling unit or units of the Army general 
purpose forces pursuant to which the general and special oper-
ations forces units regularly train together, conduct exercises 
together, and when required, deploy together. 
(2) The term ‘‘special operations forces’’ means the forces 
identified under section 167(j) of title 10, United States Code, 
or a member of the Armed Forces carrying out special oper-
ations activities. 
(3) The term ‘‘special operations activities’’ means activities 
described in section 167(k) of title 10, United States Code, 
and includes any support services provided for the execution 
such activities, including logistics, communications, and intel-
ligence activities.
H. R. 5009—272 
SEC. 927. FORCE SIZING METHODOLOGY. 
(a) IN GENERAL.—Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall develop 
a methodology for analyzing United States military force sizing 
necessary to conduct activities below the threshold of traditional 
armed conflict in support of strategic competition, including the 
following: 
(1) Campaigning. 
(2) Building capacity of and security cooperation with 
partner countries. 
(3) Information operations. 
(4) Civil affairs. 
(5) Irregular warfare. 
(6) Operational preparation of the environment. 
(b) REPORT REQUIRED.—Not later than 270 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report on the methodology 
developed under subsection (a) that includes, at a minimum, the 
following: 
(1) An explanation of the methodology and how the method-
ology is intended to be applied to future force sizing analysis. 
(2) An articulation of the roles and responsibilities of rel-
evant officials, branches of the Armed Forces, and commands 
in utilizing the methodology. 
(3) Such other matters as the Secretary considers relevant. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
Sec. 1001. General transfer authority. 
Sec. 1002. Repeal of audit incentive element in report requirement of Financial Im-
provement and Audit Remediation Plan. 
Sec. 1003. Authority to use Defense Modernization Account funds for time-sensitive 
equipment modernization. 
Sec. 1004. Extension of audit requirement for Department of Defense components. 
Sec. 1005. Revision of Department of Defense financial management regulation. 
Sec. 1006. Establishment of cross-functional team to oversee implementation of rec-
ommendations of Commission on Planning, Programming, Budgeting, 
and Execution Reform. 
Sec. 1007. Use of technology using artificial intelligence to facilitate audit of the fi-
nancial statements of the Department of Defense for fiscal year 2025. 
Subtitle B—Counterdrug Activities 
Sec. 1011. Support for counterdrug activities affecting flow of drugs into United 
States. 
Sec. 1012. Authority for detection and monitoring of illegal drugs regardless of des-
tination. 
Sec. 1013. Review, assessment, and analysis of governance structure and strategy 
of Department of Defense counter-narcotics and counter-transnational 
organized crime activities. 
Subtitle C—Naval Vessels and Shipyards 
Sec. 1021. Briefing required in the event of a proposed reduction in battle force 
ships as part of the annual naval vessel construction plan and certifi-
cation. 
Sec. 1022. Modification of authority to purchase used vessels under the National 
Defense Sealift Fund. 
Sec. 1023. Modifications to ship repair authorities. 
Sec. 1024. Improving Navy assessments required prior to start of construction on 
first ship of a shipbuilding program. 
Sec. 1025. Prohibition on contracting with shipyards controlled by a foreign adver-
sary country.
H. R. 5009—273 
Sec. 1026. Exception to prohibition of overhaul, repair, or maintenance of certain 
vessels in shipyards outside the United States or Guam. 
Sec. 1027. Strategy on development of naval rearm at sea capability. 
Sec. 1028. Authority to use incremental funding for the Virginia-class submarine 
program. 
Sec. 1029. Authority to use incremental funding to enter into a contract for the con-
struction of an Arleigh Burke class destroyer. 
Sec. 1030. Pilot program on use of automated inspection technologies at shipyards. 
Sec. 1031. Requirements for the unmanned maritime autonomy architecture. 
Sec. 1032. Competitive demonstration of large and extra large unmanned under-
water vehicles. 
Sec. 1033. Requirement for mature ship design. 
Subtitle D—Counterterrorism 
Sec. 1041. Extension of prohibition on use of funds for transfer or release of indi-
viduals detained at United States Naval Station, Guantanamo Bay, 
Cuba, to the United States. 
Sec. 1042. Extension of prohibition on use of funds to construct or modify facilities 
in the United States to house detainees transferred from United States 
Naval Station, Guantanamo Bay, Cuba. 
Sec. 1043. Extension of prohibition on use of funds for transfer or release of indi-
viduals detained at United States Naval Station, Guantanamo Bay, 
Cuba, to certain countries. 
Sec. 1044. Extension of prohibition on use of funds to close or relinquish control of 
United States Naval Station, Guantanamo Bay, Cuba. 
Subtitle E—Miscellaneous Authorities and Limitations 
Sec. 1051. Authority to contribute to innovation fund. 
Sec. 1052. Extension of authority for reimbursement of expenses for certain Navy 
mess operations. 
Sec. 1053. Assessments of casualties and fatalities during hostilities. 
Sec. 1054. Establishment of major mishap incident designation classification for 
Department of Defense incidents. 
Sec. 1055. Prohibition on use of funds for EcoHealth Alliance and the Wuhan Insti-
tute of Virology. 
Sec. 1056. Prohibition on Department of Defense transportation of currency to 
Taliban or Islamic Emirate of Afghanistan. 
Sec. 1057. Prohibition on use of funds for the Badr Organization and related orga-
nizations. 
Sec. 1058. Limitation on use of funds pending provision of briefing on reliance of 
People’s Liberation Army on imported fossil fuels for energy. 
Sec. 1059. Prohibition on use of funds to support entertainment projects with ties 
to the Government of the People’s Republic of China. 
Subtitle F—Studies and Reports 
Sec. 1061. Chief of Navy Reserve annual report. 
Sec. 1062. Modification and extension of requirement for combatant command risk 
assessment for airborne intelligence, surveillance, and reconnaissance. 
Sec. 1063. Extension of briefing requirement regarding civil authorities at the 
Southwest border. 
Sec. 1064. Extension of annual report on civilian casualties in connection with 
United States military operations. 
Sec. 1065. Review of irregular warfare authorities. 
Sec. 1066. Reports on approval and deployment of lethal autonomous weapon sys-
tems. 
Sec. 1067. Congressional notice regarding execute orders issued at the direction of 
the President or the Secretary of Defense. 
Sec. 1068. Mobility capability requirements study. 
Sec. 1069. Biodefense posture reviews. 
Sec. 1070. Briefings on attempts by aliens and foreign actors to access military in-
stallations without authorization. 
Sec. 1071. Report on resourcing of Arctic Strategy. 
Sec. 1072. Analyses and reports on air superiority of the Joint Force. 
Sec. 1073. Exercise for countering unmanned aerial systems. 
Sec. 1074. Report on operational plans of the Department of Defense. 
Sec. 1075. Quarterly reports on funerals at Arlington National Cemetery on hold 
until caisson services resume. 
Sec. 1076. Plan for enhancement of special operations riverine capability. 
Sec. 1077. Annual reports on the Postsecondary Education Complaint System. 
Sec. 1078. Study and report on Department of Defense use of unmanned ground ve-
hicle systems manufactured by certain foreign entities.
H. R. 5009—274 
Subtitle G—Other Matters 
Sec. 1081. Introduction of entities in transactions critical to national security. 
Sec. 1082. Installation energy plans and assessment for reduction of reliance on 
Russian energy. 
Sec. 1083. Extension of the National Commission on the Future of the Navy. 
Sec. 1084. Modification of National Security Commission on Emerging Bio-
technology. 
Sec. 1085. Modification of defense sensitive support notification requirement. 
Sec. 1086. Plan for additional skill identifiers for Army Mountain Warfare School. 
Sec. 1087. Establishment of Department of Defense working group on multilateral 
artificial intelligence coordination. 
Sec. 1088. Resumption of caisson services at funeral services at Arlington National 
Cemetery. 
Sec. 1089. Liaison with Counter Unmanned Aerial Systems Task Force. 
Sec. 1090. Responding to unmanned aircraft systems incursions. 
Sec. 1091. Prioritization of accreditation of sensitive compartmented information fa-
cilities supporting DX-rated programs. 
Sec. 1092. Establishment of national security capital forum. 
Sec. 1093. Implementation of Comptroller General recommendations relating to the 
food program of the Department of Defense. 
Sec. 1094. Pilot program to provide military aircraft support to air shows. 
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 Department of Defense in this division for 
fiscal year 2025 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of authorizations 
so transferred shall be merged with and be available for the 
same purposes as the authorization to which transferred. 
(2) LIMITATION.—Except as provided in paragraph (3), the 
total amount of authorizations that the Secretary may transfer 
under 
the 
authority 
of 
this 
section 
may 
not 
exceed 
$6,000,000,000. 
(3) EXCEPTION
FOR
TRANSFERS
BETWEEN
MILITARY
PER-
SONNEL AUTHORIZATIONS.—A transfer of funds between military 
personnel authorizations under title IV shall not be counted 
toward the dollar limitation in paragraph (2). 
(b) LIMITATIONS.—The authority provided by subsection (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 Congress. 
(c) EFFECT
ON AUTHORIZATION AMOUNTS.—A transfer made 
from one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the account 
to which the amount is transferred by an amount equal to the 
amount transferred. 
(d) NOTICE TO CONGRESS.—The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).
H. R. 5009—275 
SEC. 1002. REPEAL OF AUDIT INCENTIVE ELEMENT IN REPORT 
REQUIREMENT OF FINANCIAL IMPROVEMENT AND AUDIT 
REMEDIATION PLAN. 
Section 240b(b)(1)(B) of title 10, United States Code, is amended 
by striking clause (ix). 
SEC. 1003. AUTHORITY TO USE DEFENSE MODERNIZATION ACCOUNT 
FUNDS FOR TIME-SENSITIVE EQUIPMENT MODERNIZA-
TION. 
(a) IN GENERAL.—Section 3136(d) of title 10, United States 
Code, is amended by adding at the end the following new para-
graphs: 
‘‘(5) For procuring and integrating available commercial 
technologies and services to satisfy a joint urgent operational 
need, joint emergent operational need, or a validated service 
requirement. 
‘‘(6) For providing infrastructure to support Department 
goals of accelerating the fielding and adoption of new capabili-
ties.’’. 
(b) LIMITATION.—Paragraphs (5) and (6) of subsection (d) of 
section 3136 of title 10, United States Code, as added by subsection 
(a), shall apply only with respect to funds made available, and 
transferred to the Defense Modernization Account, on or after the 
date of the enactment of this Act. 
SEC. 1004. EXTENSION OF AUDIT REQUIREMENT FOR DEPARTMENT 
OF DEFENSE COMPONENTS. 
Section 1004(a) of the National Defense Authorization Act for 
Fiscal Year 2024 (Public Law 118–81; 10 U.S.C. 240d note) is 
amended by striking ‘‘During fiscal year 2024, and during each 
of the nine fiscal years thereafter,’’ and inserting ‘‘During each 
of fiscal years 2024 through 2034,’’. 
SEC. 1005. REVISION OF DEPARTMENT OF DEFENSE FINANCIAL 
MANAGEMENT REGULATION. 
(a) Not later than September 30, 2026, the Under Secretary 
of Defense (Comptroller) shall revise the Department of Defense 
Financial Management Regulation 7000.14-R. The Under Secretary 
shall ensure that the revised regulation— 
(1) is consistent and clear throughout; 
(2) includes updated guidance with respect to legislative 
and regulatory requirements; and 
(3) does not include any outdated guidance or guidance 
subject to change annually in an annual appropriations Act. 
(b) CONSIDERATIONS.—In revising the regulation under sub-
section (a), the Under Secretary shall— 
(1) prioritize clarity and accessibility in the language and 
direction provided, including improvements to the coordination 
and approval process for recommended changes; 
(2) review and adopt modern financial practices that better 
align to current development and production cycles; 
(3) consider information technology solutions to improve 
the accessibility and usability of the Financial Management 
Regulation; and 
(4) in consultation with the Cross-Functional Team estab-
lished under section 1006 consider the recommendations of 
the Commission on Planning, Programming, Budgeting, and 
Execution Reform.