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(f) TERMINATION OF AUTHORITY.—The Secretary of 
Defense may not exercise the authority provided in sub-
section (a) on and after the date occurring 18 months 
after the date of the enactment of this Act. 
(g) REPORT ON AUTHORITY.—Not later than April 
1, 2010, the Secretary of Defense shall submit to the con-
gressional defense committees a report on the use of the 
authority provided in subsection (a). The report shall ad-
dress, at a minimum, following: 
(1) The number of determinations made by the 
Secretary pursuant to subsection (b). 
(2) A description of the products and services 
acquired using the authority. 
(3) The extent to which the use of the authority 
has met the objectives of subparagraph (A), (B), or 
(C) of subsection (b)(2). 
(4) A list of the countries providing products or 
services as a result of a determination made pursu-
ant to subsection (b). 
(5) Any recommended modifications to the au-
thority. 
SEC. 802. ASSESSMENT OF IMPROVEMENTS IN SERVICE 
CONTRACTING. 
(a) ASSESSMENT REQUIRED.—The Under Secretary 
of Defense for Acquisition, Technology, and Logistics shall 
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HR 2647 PCS 
provide for an independent assessment of improvements 
in the procurement and oversight of services by the De-
partment of Defense. The assessment shall be conducted 
by a federally funded research and development center se-
lected by the Under Secretary. 
(b) MATTERS COVERED.—The assessment required 
by subsection (a) shall include the following: 
(1) An assessment of the quality and complete-
ness of guidance relating to the procurement of serv-
ices, including implementation of statutory and regu-
latory authorities and requirements. 
(2) A determination of the extent to which best 
practices are being developed for setting require-
ments and developing statements of work. 
(3) A determination of whether effective stand-
ards to measure performance have been developed. 
(4) An assessment of the effectiveness of peer 
reviews within the Department of Defense of con-
tracts for services and whether such reviews are 
being conducted at the appropriate dollar threshold. 
(5) An assessment of the management structure 
for the procurement of services, including how the 
military departments and Defense Agencies have im-
plemented section 2330 of title 10, United States 
Code. 
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HR 2647 PCS 
(6) A determination of whether the performance 
savings goals required by section 802 of the Na-
tional Defense Authorization Act for Fiscal Year 
2002 (10 U.S.C. 2330 note) are being achieved. 
(7) An assessment of the effectiveness of the 
Acquisition Center of Excellence for Services estab-
lished pursuant to section 1431(b) of the Services 
Acquisition Reform Act of 2003 (title XIV of Public 
Law 108–136; 117 Stat. 1671; 41 U.S.C. 405 note) 
and the feasibility of creating similar centers of ex-
cellence in the military departments. 
(8) An assessment of the quality and sufficiency 
of the acquisition workforce for the procurement and 
oversight of services. 
(9) Such other related matters as the Under 
Secretary considers appropriate. 
(c) REPORT.—Not later than March 10, 2010, the 
Under Secretary shall submit to the congressional defense 
committees a report on the results of the assessment, in-
cluding such comments and recommendations as the 
Under Secretary considers appropriate. 
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HR 2647 PCS 
SEC. 803. DISPLAY OF ANNUAL BUDGET REQUIREMENTS 
FOR PROCUREMENT OF CONTRACT SERV-
ICES AND RELATED CLARIFYING TECHNICAL 
AMENDMENTS. 
(a) CODIFICATION
OF REQUIREMENT
FOR SPECI-
FICATION OF AMOUNTS REQUESTED FOR PROCUREMENT 
OF CONTRACT SERVICES.— 
(1) IN GENERAL.—Chapter 9 of title 10, United 
States Code, is amended by inserting after section 
235, as added by section 242(a) of this Act, the fol-
lowing new section: 
‘‘§ 236. Procurement of contract services: specifica-
tion of amounts requested in budget 
‘‘(a) SUBMISSION WITH ANNUAL BUDGET JUS-
TIFICATION DOCUMENTS.—The Secretary of Defense shall 
submit to the President, as a part of the defense budget 
materials for a fiscal year, information described in sub-
section (b) with respect to the procurement of contract 
services. 
‘‘(b) INFORMATION PROVIDED.—For each budget ac-
count, the materials submitted shall clearly and separately 
identify— 
‘‘(1) the amount requested for the procurement 
of contract services for each Department of Defense 
component, installation, or activity; 
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HR 2647 PCS 
‘‘(2) the amount requested for each type of 
service to be provided; and 
‘‘(3) the number of full-time contractor employ-
ees (or the equivalent of full-time in the case of 
part-time contractor employees) projected and justi-
fied for each Department of Defense component, in-
stallation, or activity based on the inventory of con-
tracts for services required by subsection (c) of sec-
tion 2330a of this title and the review required by 
subsection (e) of such section. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘contract services’— 
‘‘(A) means services from contractors; but 
‘‘(B) excludes services relating to research 
and development and services relating to mili-
tary construction. 
‘‘(2) The term ‘defense budget materials’, with 
respect to a fiscal year, means the materials sub-
mitted to the President by the Secretary of Defense 
in support of the budget for that fiscal year. 
‘‘(3) The term ‘budget’, with respect to a fiscal 
year, means the budget for that fiscal year that is 
submitted to Congress by the President under sec-
tion 1105(a) of title 31.’’. 
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HR 2647 PCS 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by adding at the end the following new item: 
‘‘236. Procurement of contract services: specification of amounts requested in 
budget.’’. 
(3) REPEAL OF SUPERSEDED PROVISION.—Sec-
tion 806 of the National Defense Authorization Act 
for Fiscal Year 2008 (Public Law 110–181; 10 
U.S.C. 221 note) is repealed. 
(b) CLARIFICATION OF CONTRACT SERVICES REVIEW 
AND PLANNING REQUIREMENTS.—Section 2330a(e) of 
title 10, United States Code, is amended in paragraph (4) 
by inserting after ‘‘plan’’ the following: ‘‘and a contracts 
services requirements approval process’’. 
SEC. 804. DEMONSTRATION AUTHORITY FOR ALTERNATIVE 
ACQUISITION PROCESS FOR DEFENSE INFOR-
MATION TECHNOLOGY PROGRAMS. 
(a) AUTHORITY.—The Secretary of Defense may des-
ignate up to 10 information technology programs annually 
to be included in a demonstration of an alternative acqui-
sition process for rapidly acquiring information technology 
capabilities. In designating the programs, the Secretary 
may select any information technology program in any of 
the military departments or Defense Agencies that has re-
ceived milestone A approval, but has not yet received mile-
stone B approval. 
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HR 2647 PCS 
(b) PROCEDURES.—The Secretary of Defense shall 
establish procedures for the exercise of the authority 
under subsection (a), including a process for measuring 
the effectiveness of the alternative acquisition process to 
be demonstrated. The Secretary of Defense shall notify 
the congressional defense committees of those procedures 
before any exercise of that authority. 
(c) REQUIREMENT TO PAY FULL COST IN YEAR OF 
DELIVERY.—No contract to acquire an information tech-
nology system may be entered into using the authority 
under subsection (a) unless the funds for the full cost of 
such system are obligated or expended in the fiscal year 
of delivery of the system. 
(d) ANNUAL REPORT.—By March 1 of each year, be-
ginning March 1, 2010, and ending March 1, 2016, the 
Secretary of Defense shall submit to the congressional de-
fense committees a report on the activities carried out 
under the authority under subsection (a) during the pre-
ceding year. Each report shall include, at a minimum, the 
following: 
(1) A description of each information tech-
nology program in the demonstration, including 
goals, funding, and military department or Defense 
Agency sponsors. 
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HR 2647 PCS 
(2) A description of the methods for measuring 
the effectiveness of the alternative acquisition proc-
ess for each information technology program in the 
demonstration. 
(3) Identification of any significant systemic or 
process issues impeding the effectiveness of the al-
ternative acquisition process. 
(e) PERIOD OF AUTHORITY.—The authority under 
subsection (a) shall be in effect during each of fiscal years 
2010 through 2015. 
SEC. 805. LIMITATION ON PERFORMANCE OF PRODUCT 
SUPPORT INTEGRATOR FUNCTIONS. 
(a) LIMITATION.— 
(1) IN
GENERAL.—Chapter 141 of title 10, 
United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 2410r. Contractor sustainment support arrange-
ments: limitation on product support in-
tegrator functions 
‘‘(a) LIMITATION.—A product support integrator 
function for a covered major system may be performed 
only by a member of the armed forces or an employee of 
the Department of Defense. 
‘‘(b) DEFINITIONS.—In this section: 
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HR 2647 PCS 
‘‘(1) The term ‘product support integrator func-
tion’ means the function of integrating all sources of 
support for a major system, both public and private, 
and includes the integration of sustainment support 
arrangements at the level of the program office re-
sponsible for sustainment of such system. 
‘‘(2) The term ‘covered major system’ means a 
major system for which a sustainment support ar-
rangement is employed. 
‘‘(3) The term ‘sustainment support arrange-
ment’ means a contract, task order, or other con-
tractual 
arrangement 
for 
the 
integration 
of 
sustainment or logistics support such as materiel 
management, configuration management, data man-
agement, supply, distribution, repair, overhaul, prod-
uct improvement, calibration, maintenance, readi-
ness, reliability, availability, mean down time, cus-
tomer wait time, foot print reduction, reduced own-
ership costs and other tasks normally performed as 
part of the logistics support required for a major 
system. The term includes any of the following ar-
rangements: 
‘‘(A) Contractor performance-based logis-
tics. 
‘‘(B) Contractor sustainment support. 
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HR 2647 PCS 
‘‘(C) Contractor logistics support. 
‘‘(D) Contractor life cycle product support. 
‘‘(E) Contractor weapons system product 
support. 
‘‘(3) The term ‘major system’ means that com-
bination of elements that will function together to 
produce the capabilities required to fulfill a mission 
need as defined in section 2302(d) this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by adding after the item relating to section 2410q 
the following new item: 
‘‘2410r. Contractor sustainment support arrangements: limitation on product 
support integrator functions.’’. 
(b) EFFECTIVE DATE.—Section 2410r of title 10, 
United States Code, as added by subsection (a), shall 
apply to contracts entered into after September 30, 2010. 
Subtitle B—Amendments to Gen-
eral 
Contracting 
Authorities, 
Procedures, and Limitations 
SEC. 811. REVISION OF DEFENSE SUPPLEMENT RELATING 
TO 
PAYMENT 
OF 
COSTS 
PRIOR 
TO 
DEFINITIZATION. 
(a) REQUIREMENT.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall revise the Defense Supplement to the Fed-
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HR 2647 PCS 
eral Acquisition Regulation to require that, if a clause re-
lating to payment of costs prior to definitization of costs 
is included in a contract of the Department of Defense, 
the clause shall apply— 
(1) to the contract regardless of the type of 
contract; and 
(2) to each contractual action pursuant to the 
contract. 
(b) CONTRACTUAL ACTION.—In this section, the 
term ‘‘contractual action’’ includes a task order or delivery 
order. 
SEC. 812. REVISIONS TO DEFINITIONS RELATING TO CON-
TRACTS IN IRAQ AND AFGHANISTAN. 
(a) REVISIONS
TO DEFINITION
OF CONTRACT
IN 
IRAQ OR AFGHANISTAN.—Section 864(a)(2) of the Na-
tional Defense Authorization Act for Fiscal Year 2008 
(Public Law 110–181; 122 Stat. 258; 10 U.S.C. 2302 
note) is amended— 
(1) by striking ‘‘or a task order or delivery 
order at any tier issued under such a contract’’ and 
inserting ‘‘a task order or delivery order at any tier 
issued under such a contract, a grant, or a coopera-
tive agreement’’; 
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HR 2647 PCS 
(2) by striking in the parenthetical ‘‘or task 
order or delivery order’’ and inserting ‘‘task order, 
delivery order, grant, or cooperative agreement’’; 
(3) by striking ‘‘or task or delivery order’’ after 
the parenthetical and inserting ‘‘task order, delivery 
order, grant, or cooperative agreement’’; and 
(4) by striking ‘‘14 days’’ and inserting ‘‘30 
days’’. 
(b) REVISION TO DEFINITION OF COVERED CON-
TRACT.—Section 864(a)(3) of such Act (Public Law 110– 
181; 122 Stat. 259; 10 U.S.C. 2302 note) is amended— 
(1) by striking ‘‘or’’ at the end of subparagraph 
(B); 
(2) by striking the period and inserting a semi-
colon at the end of subparagraph (C); and 
(3) by adding at the end the following new sub-
paragraphs: 
‘‘(D) a grant for the performance of serv-
ices in an area of combat operations, as des-
ignated by the Secretary of Defense under sub-
section (c) of section 862; or 
‘‘(E) a cooperative agreement for the per-
formance of services in such an area of combat 
operations.’’. 
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HR 2647 PCS 
(c) REVISION TO DEFINITION OF CONTRACTOR.— 
Paragraph (4) of section 864(a) of such Act (Public Law 
110–181; 122 Stat. 259; 10 U.S.C. 2302 note) is amended 
to read as follows: 
‘‘(4) CONTRACTOR.—The term ‘contractor’, 
with respect to a covered contract, means— 
‘‘(A) in the case of a covered contract that 
is a contract, subcontract, task order, or deliv-
ery order, the contractor or subcontractor car-
rying out the covered contract; 
‘‘(B) in the case of a covered contract that 
is a grant, the grantee; and 
‘‘(C) in the case of a covered contract that 
is a cooperative agreement, the recipient.’’. 
(d) REVISION IN VALUE OF CONTRACTS COVERED BY 
CERTAIN REPORT.—Section 1248(c)(1)(B) of such Act 
(Public Law 110–181; 122 Stat. 400) is amended by strik-
ing ‘‘$25,000’’ and inserting ‘‘$100,000’’. 
SEC. 813. AMENDMENT TO NOTIFICATION REQUIREMENTS 
FOR AWARDS OF SINGLE SOURCE TASK OR 
DELIVERY ORDERS. 
(a) CONGRESSIONAL DEFENSE COMMITTEES.—Sub-
paragraph (B) of section 2304a(d)(3) of title 10, United 
States Code, is amended to read as follows: 
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HR 2647 PCS 
‘‘(B) The head of the agency shall notify the congres-
sional defense committees within 30 days after any deter-
mination under clause (i), (ii), (iii), or (iv) of subpara-
graph (A).’’. 
(b) CONGRESSIONAL INTELLIGENCE COMMITTEES.— 
Any notification provided under subparagraph (B) of sec-
tion 2304a(d)(3) of title 10, United States Code, as 
amended by subsection (a), shall also be provided to the 
Permanent Select Committee on Intelligence of the House 
of Representatives and the Select Committee on Intel-
ligence of the Senate if the source of funds for the task 
or delivery order contract concerned is the National Intel-
ligence Program or the Military Intelligence Program. 
SEC. 814. CLARIFICATION OF UNIFORM SUSPENSION AND 
DEBARMENT REQUIREMENT. 
Section 2455(a) of the Federal Acquisition Stream-
lining Act of 1994 (31 U.S.C. 6101 note) is amended by 
inserting ‘‘at any level, including subcontracts at any 
tier,’’ in the second sentence after ‘‘any procurement or 
nonprocurement activity’’. 
SEC. 815. EXTENSION OF AUTHORITY FOR USE OF SIM-
PLIFIED 
ACQUISITION 
PROCEDURES 
FOR 
CERTAIN COMMERCIAL ITEMS. 
Section 4202 of the Clinger–Cohen Act of 1996 (Di-
vision D of Public Law 104–106; 110 Stat. 652; 10 U.S.C. 
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HR 2647 PCS 
2304 note) as amended by section 822 of the National 
Defense Authorization Act for Fiscal Year 2008 (Public 
Law 110–181; 122 Stat. 226) is amended in subsection 
(e) by striking ‘‘2010’’ and inserting ‘‘2012’’. 
SEC. 816. REVISION TO DEFINITIONS OF MAJOR DEFENSE 
ACQUISITION PROGRAM AND MAJOR AUTO-
MATED INFORMATION SYSTEM. 
(a) MAJOR DEFENSE ACQUISITION PROGRAM.—Sec-
tion 2430 of title 10, United States Code, is amended by 
adding at the end the following new subsection: 
‘‘(d) In the case of a Department of Defense acquisi-
tion program that, by reason of paragraph (2) of section 
2445a(a) of this title, is a major automated information 
system program under chapter 144A of this title and that, 
by reason of paragraph (2) of subsection (a), is a major 
defense acquisition program under this chapter, the Sec-
retary of Defense may designate that program to be treat-
ed only as a major automated information system program 
or to be treated only as a major defense acquisition pro-
gram.’’. 
(b) MAJOR AUTOMATED INFORMATION SYSTEM.— 
Section 2445a(a) of such title is amended by inserting 
‘‘that is not a highly sensitive classified program (as deter-
mined by the Secretary of Defense)’’ after ‘‘(either as a 
product or service)’’. 
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HR 2647 PCS 
SEC. 817. SMALL ARMS PRODUCTION INDUSTRIAL BASE. 
Section 2473 of title 10, United States Code, is 
amended— 
(1) by amending subsection (c) to read as fol-
lows: 
‘‘(c) 
SMALL
ARMS
PRODUCTION
INDUSTRIAL 
BASE.—In this section, the term ‘small arms production 
industrial base’ means the persons and organizations that 
are engaged in the production or maintenance of small 
arms within the United States.’’; and 
(2) in subsection (d), by adding at the end the 
following new paragraph: 
‘‘(6) Pistols.’’. 
SEC. 818. PUBLICATION OF JUSTIFICATION FOR BUNDLING 
OF CONTRACTS OF THE DEPARTMENT OF DE-
FENSE. 
(a) REQUIREMENT TO PUBLISH JUSTIFICATION FOR 
BUNDLING.—A contracting officer of the Department of 
Defense carrying out a covered acquisition shall publish 
the justification required by paragraph (f) of subpart 
7.107 of the Federal Acquisition Regulation on the 
website known as FedBizOpps.gov (or any successor site) 
30 days prior to the release of a solicitation for such acqui-
sition. 
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HR 2647 PCS 
(b) COVERED ACQUISITION DEFINED.—In this sec-
tion, the term ‘‘covered acquisition’’ means an acquisition 
that is— 
(1) funded entirely using funds of the Depart-
ment of Defense; and 
(2) covered by subpart 7.107 of the Federal Ac-
quisition Regulation (relating to acquisitions involv-
ing bundling). 
(c) CONSTRUCTION.—(1) Nothing in this section 
shall be construed to alter the responsibility of a con-
tracting officer to provide the justification referred to in 
subsection (a) with respect to a covered acquisition, or 
otherwise provide notification, to any party concerning 
such acquisition under any other requirement of law or 
regulation. 
(2) Nothing in this section shall be construed to re-
quire the public availability of information that is exempt 
from public disclosure under section 552(b) of title 5, 
United States Code, or is otherwise restricted from public 
disclosure by law or Executive order. 
(3) Nothing in this section shall be construed to re-
quire a contracting officer to delay the issuance of a solici-
tation in order to meet the requirements of subsection (a) 
if the expedited issuance of such solicitation is otherwise 
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HR 2647 PCS 
authorized under any other requirement of law or regula-
tion. 
SEC. 819. CONTRACT AUTHORITY FOR ADVANCED COMPO-
NENT DEVELOPMENT OR PROTOTYPE UNITS. 
(a) AUTHORITY.—A contract initially awarded from 
the competitive selection of a proposal resulting from a 
general solicitation referred to in section 2302(2)(B) of 
title 10, United States Code, may contain a contract op-
tion for— 
(1) the provision of advanced component devel-
opment and prototype of technology developed in the 
initial underlying contract; or 
(2) the delivery of initial or additional prototype 
items if the item or a prototype thereof is created 
as the result of work performed under the initial 
competed research contract. 
(b) DELIVERY.—A contract option as described in 
subsection (a)(2) shall require the delivery of the minimal 
amount of initial or additional prototype items to allow 
for the timely competitive solicitation and award of a fol-
low-on development or production contract for those items. 
Such contract option may have a value only up to three 
times the value of the base contract ceiling and any subse-
quent development or procurement must be subject to the 
terms of section 2304 of title 10, United States Code. 
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HR 2647 PCS 
(c) TERM.—A contract option as described in sub-
section (a)(1) shall be for a term of not more than 12 
months. 
(d) USE OF AUTHORITY.—Each military department 
may use the authority provided in subsection (a) to exer-
cise a contract option described in that subsection up to 
four times a year, and the Secretary of Defense may ap-
prove up to an additional four total options a year for 
projects supported by agencies of the Department of De-
fense, until September 30, 2014. 
(e) REPORT.—The Secretary of Defense shall submit 
to the congressional defense committees a report on the 
use of the authority provided by subsection (a) not later 
than March 1, 2014. The report shall, at a minimum, de-
scribe— 
(1) the number of times the contract options 
were exercised under such authority and the scope of 
each such option; 
(2) the circumstances that rendered the mili-
tary department or defense agency unable to solicit 
and award a follow-on development or production 
contract in a timely fashion, but for the use of such 
authority; 
(3) the extent to which such authority increased 
competition and improved technology transition; and 
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HR 2647 PCS 
(4) any recommendations regarding the modi-
fication or extension of such authority. 
Subtitle C—Other Matters 
SEC. 821. ENHANCED EXPEDITED HIRING AUTHORITY FOR 
DEFENSE ACQUISITION WORKFORCE POSI-
TIONS. 
(a) IN GENERAL.—Section 1705(h)(1) of title 10, 
United States Code, is amended— 
(1) in subparagraph (A), by striking ‘‘acquisi-
tion positions within the Department of Defense as 
shortage category positions’’ and inserting ‘‘acquisi-
tion workforce positions as positions for which there 
exists a shortage of candidates or there is a critical 
hiring need’’; and 
(2) in subparagraph (B), by striking ‘‘highly’’. 
(b) TECHNICAL AMENDMENT.—Such section is fur-
ther amended by striking ‘‘United States Code,’’ in the 
matter preceding subparagraph (A). 
SEC. 822. ACQUISITION WORKFORCE DEVELOPMENT FUND 
AMENDMENTS. 
(a) REVISIONS TO CREDITS TO FUND.— 
(1) REMITTANCE BY FISCAL YEAR INSTEAD OF 
QUARTER.—Subparagraph (B) of section 1705(d)(2) 
of title 10, United States Code, is amended— 
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HR 2647 PCS 
(A) in the first sentence, by striking ‘‘the 
third fiscal year quarter’’ and all that follows 
through ‘‘thereafter’’ and inserting ‘‘each fiscal 
year’’; and 
(B) by striking ‘‘quarter’’ before ‘‘for serv-
ices’’. 
(2) AUTHORITY TO SUSPEND REMITTANCE RE-
QUIREMENT.—Section 1705(d)(2) of such title is 
further amended by adding at the end the following 
new subparagraph: 
‘‘(E) The Secretary of Defense may suspend 
the requirement to remit amounts under subpara-
graph (B), or reduce the amount required to be re-
mitted under that subparagraph, for fiscal year 
2010 or any subsequent fiscal year for which 
amounts appropriated to the Fund are in excess of 
the amount specified for that fiscal year in subpara-
graph (D).’’. 
(b) REVISION TO EMPLOYEES COVERED BY PROHIBI-
TION OF PAYMENT OF BASE SALARY.—Paragraph (5) of 
section 1705(e) of such title is amended by striking ‘‘who 
was an employee of the Department as of the date of the 
enactment of the National Defense Authorization Act for 
Fiscal Year 2008’’ and inserting ‘‘who, as of January 28, 
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HR 2647 PCS 
2008, was an employee of the Department serving in a 
position in the acquisition workforce’’. 
(c) TECHNICAL AMENDMENTS.—Section 1705 of 
such title is further amended— 
(1) in subsection (a), by inserting ‘‘Develop-
ment’’ after ‘‘Workforce’’; and 
(2) in subsection (f), by striking ‘‘beginning 
with fiscal year 2008’’ in the matter preceding para-
graph (1). 
SEC. 823. REPORTS TO CONGRESS ON FULL DEPLOYMENT 
DECISIONS FOR MAJOR AUTOMATED INFOR-
MATION SYSTEM PROGRAMS. 
(a) 
IMPLEMENTATION
SCHEDULE.—Section 
2445b(b)(2) of title 10, United States Code, is amended 
by striking ‘‘, initial operational capability, and full oper-
ational capability’’ and inserting ‘‘and full deployment de-
cision’’. 
(b) CRITICAL
CHANGES
IN
PROGRAM.—Section 
2445c(d)(2)(A) of such title is amended by striking ‘‘ini-
tial operational capability’’ and inserting ‘‘a full deploy-
ment decision’’. 
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SEC. 824. REQUIREMENT FOR SECRETARY OF DEFENSE TO 
DENY AWARD AND INCENTIVE FEES TO COM-
PANIES FOUND TO JEOPARDIZE HEALTH OR 
SAFETY OF GOVERNMENT PERSONNEL. 
(a) REQUIREMENT TO DENY AWARD AND INCENTIVE 
FEES.— 
(1) PRIME
CONTRACTORS.—The Secretary of 
Defense shall prohibit the payment of award and in-
centive fees to any defense contractor— 
(A) that has been determined, through a 
criminal, civil, or administrative proceeding that 
results in a disposition listed in subsection (c), 
in the performance of a covered contract to 
have caused serious bodily injury or death to 
any civilian or military personnel of the Govern-
ment through gross negligence or with reckless 
disregard for the safety of such personnel; or 
(B) that awarded a subcontract under a 
covered contract to a subcontractor that has 
been determined, through a criminal, civil, or 
administrative proceeding that results in a dis-
position listed in subsection (c), in the perform-
ance of the subcontract to have caused serious 
injury or death to any civilian or military per-
sonnel of the Government, through gross neg-
ligence or with reckless disregard for the safety 
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