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(3) three shall be appointed by the Secretary of 
the Air Force. 
(c) APPOINTMENT DEADLINE.—Members shall be 
appointed to the panel not later than 180 days after the 
date of the enactment of this Act. 
(d) DUTIES.—The panel shall be responsible for de-
veloping a set of recommendations on eliminating barriers 
to contracting with the Department of Defense and its de-
fense supply centers. 
(e) REPORT.—Not later than one year after the date 
of the enactment of this Act, the panel shall submit to 
Congress a report containing its recommendations. 
SEC. 406. INCLUSION OF THE PROVIDERS OF SERVICES 
AND INFORMATION TECHNOLOGY IN THE NA-
TIONAL 
TECHNOLOGY 
AND 
INDUSTRIAL 
BASE. 
(a) REVISED DEFINITIONS.—Section 2500 of title 
10, United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘or mainte-
nance’’ and inserting ‘‘integration, services, or infor-
mation technology’’; 
(2) in paragraph (4), by striking ‘‘or produc-
tion’’ and inserting ‘‘production, integration, serv-
ices, or information technology’’; 
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(3) in paragraph (9)(A), by striking ‘‘and man-
ufacturing’’ and inserting ‘‘manufacturing, integra-
tion, services, and information technology’’; and 
(4) by adding at the end the following new 
paragraph: 
‘‘(15) The term ‘integration’ means the process 
of providing systems engineering and technical direc-
tion for a system for the purpose of achieving capa-
bilities that satisfy program requirements.’’. 
(b) REVISED OBJECTIVES.—Section 2501(a) of such 
title is amended— 
(1) in paragraph (1), by striking ‘‘Supplying 
and equipping’’ and inserting ‘‘Supplying, equipping, 
and supporting’’; 
(2) in paragraph (2), by striking ‘‘and logistics 
for’’ and inserting ‘‘logistics, and other activities in 
support of’’; 
(3) in paragraph (4), by striking ‘‘and produce’’ 
and inserting ‘‘, produce, and support’’; and 
(4) by redesignating paragraph (6) as para-
graph (8) and inserting after paragraph (5) the fol-
lowing new paragraphs: 
‘‘(6) Providing for the generation of services ca-
pabilities that are not core functions of the armed 
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forces and that are critical to military operations 
within the national technology and industrial base. 
‘‘(7) Providing for the development, production, 
and integration of information technology within the 
national technology and industrial base.’’. 
(c) REVISED ASSESSMENTS.—Section 2505(b)(4) of 
such title is amended by inserting after ‘‘of this title)’’ 
the following ‘‘or major automated information systems 
(as defined in section 2445a of this title)’’. 
(d) REVISED POLICY GUIDANCE.—Section 2506(a) 
of such title is amended by striking ‘‘budget allocation, 
weapons’’ and inserting ‘‘strategy, management, budget 
allocation,’’. 
SEC. 407. CONSTRUCTION OF ACT ON COMPETITION RE-
QUIREMENTS 
FOR 
THE 
ACQUISITION 
OF 
SERVICES. 
Nothing in this Act or the amendments made by this 
Act shall be construed to affect the competition require-
ments of section 2304 of title 10, United States Code, with 
respect to the acquisition of services. 
SEC. 408. ACQUISITION SAVINGS PROGRAM. 
(a) PROGRAM REQUIRED.— 
(1) IN GENERAL.—The Secretary of Defense, 
acting through the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, shall carry 
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out a program to provide opportunities to provide 
cost-savings on nondevelopmental items. 
(2) SAVINGS.—The program, to be known as 
the Acquisition Savings Program, shall provide any 
person or activity within or outside the Department 
of Defense with the opportunity to offer a proposal 
to provide savings in excess of 15 percent, to be 
known as an acquisition savings proposal, for cov-
ered contracts. 
(3) SUNSET.—The program shall cease to be 
required on September 30, 2013. 
(b) 
QUALIFYING
ACQUISITION
SAVINGS
PRO-
POSALS.—A proposal shall qualify as an acquisition sav-
ings proposal for purposes of this section if it offers to 
supply a nondevelopmental item that is identical to, or 
equivalent to (under a performance specification or rel-
evant commercial standard), an item being procured under 
a covered contract. 
(c) REVIEW BY CONTRACTING OFFICER.—Each ac-
quisition savings proposal shall be reviewed by the con-
tracting officer for the covered contract concerned to de-
termine if such proposal qualifies under this section and 
to calculate the savings provided by such proposal. 
(d) ACTIONS UPON FAVORABLE REVIEW.—If the 
contracting officer for a covered contract determines after 
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review of an acquisition savings proposal that the proposal 
would provide an identical or equivalent nondevelopmental 
item at a savings in excess of 15 percent, and that a con-
tract award to the offeror of the proposal would not result 
in the violation of a minimum purchase agreement or oth-
erwise cause a breach of contract for the covered contract, 
the contracting officer may make an award under the cov-
ered contract to the offeror of the acquisition savings pro-
posal or otherwise award a contract for the nondevelop-
mental item concerned to such offeror. 
(e) ACTIONS UPON UNFAVORABLE REVIEW.—If a 
contracting officer determines after review of an acquisi-
tion savings proposal that the proposal would not satisfy 
the requirements of this section, the contracting officer 
shall debrief the person or activity offering such proposal 
within 30 days after completion of the review. 
(f) REPORT.—Not later than March 1, 2013, the Sec-
retary of Defense shall submit to the Committees on 
Armed Services of the Senate and House of Representa-
tives a report regarding the program, including the num-
ber of acquisition savings proposals submitted, the number 
favorably reviewed, the cumulative savings, and any fur-
ther recommendations for the program. 
(g) DEFINITIONS.—In this section: 
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(1) NONDEVELOPMENTAL
ITEM.—The term 
‘‘nondevelopmental item’’ has the meaning provided 
for such term in section 4 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403). 
(2) COVERED CONTRACT.—The term ‘‘covered 
contract’’— 
(A) means an indefinite delivery indefinite 
quantity contract for property as defined in sec-
tion 2304d(2) of title 10, United States Code; 
and 
(B) does not include any contract awarded 
under an exception to competitive acquisition 
authorized by the Small Business Act (15 
U.S.C. 631 et seq.) 
(3) PERFORMANCE SPECIFICATION.—The term 
‘‘performance specification’’ means a specification of 
required item functional characteristics. 
(4) COMMERCIAL STANDARD.—The term ‘‘com-
mercial standard’’ means a standard used in indus-
try promulgated by an accredited standards organi-
zations that is not a Federal entity. 
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