1014 
HR 5136 RHUC 
(d) EFFECTIVE DATES.— 
(1) SECTION
204.—Section 204 of title 10, 
United States Code, as added by subsection (a), 
shall take effect on the date of the enactment of this 
Act. 
(2) SECTION 2222A.—Section 2222a of title 10, 
United States Code, as added by subsection (b), 
shall take effect 180 days after the date of the en-
actment of this Act. 
SEC. 405. BLUE RIBBON PANEL ON ELIMINATING BARRIERS 
TO CONTRACTING WITH THE DEPARTMENT 
OF DEFENSE. 
(a) REQUIREMENT TO ESTABLISH.—The Secretary 
of Defense shall establish a panel consisting of owners of 
large and small businesses that are not traditional defense 
suppliers, for purposes of creating a set of recommenda-
tions on eliminating barriers to contracting with the De-
partment of Defense and its defense supply centers. 
(b) MEMBERS.—The panel shall consist of nine mem-
bers, of whom— 
(1) three shall be appointed by the Secretary of 
the Army; 
(2) three shall be appointed by the Secretary of 
the Navy; and 
VerDate Mar 15 2010 
00:09 Jun 26, 2010
Jkt 089200
PO 00000
Frm 01014
Fmt 6652
Sfmt 6201
E:\BILLS\H5136.RHUC
H5136
mmaher on DSKD5P82C1PROD with BILLS
1015 
HR 5136 RHUC 
(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 1 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’’; 
VerDate Mar 15 2010 
00:09 Jun 26, 2010
Jkt 089200
PO 00000
Frm 01015
Fmt 6652
Sfmt 6201
E:\BILLS\H5136.RHUC
H5136
mmaher on DSKD5P82C1PROD with BILLS
1016 
HR 5136 RHUC 
(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 
VerDate Mar 15 2010 
00:09 Jun 26, 2010
Jkt 089200
PO 00000
Frm 01016
Fmt 6652
Sfmt 6201
E:\BILLS\H5136.RHUC
H5136
mmaher on DSKD5P82C1PROD with BILLS
1017 
HR 5136 RHUC 
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 
VerDate Mar 15 2010 
00:09 Jun 26, 2010
Jkt 089200
PO 00000
Frm 01017
Fmt 6652
Sfmt 6201
E:\BILLS\H5136.RHUC
H5136
mmaher on DSKD5P82C1PROD with BILLS
1018 
HR 5136 RHUC 
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 
VerDate Mar 15 2010 
00:09 Jun 26, 2010
Jkt 089200
PO 00000
Frm 01018
Fmt 6652
Sfmt 6201
E:\BILLS\H5136.RHUC
H5136
mmaher on DSKD5P82C1PROD with BILLS
1019 
HR 5136 RHUC 
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: 
VerDate Mar 15 2010 
00:09 Jun 26, 2010
Jkt 089200
PO 00000
Frm 01019
Fmt 6652
Sfmt 6201
E:\BILLS\H5136.RHUC
H5136
mmaher on DSKD5P82C1PROD with BILLS
1021 
HR 5136 RHUC 
SEC. 409. SENSE OF CONGRESS REGARDING COMPLIANCE 
WITH THE BERRY AMENDMENT, THE BUY 
AMERICAN ACT, AND LABOR STANDARDS OF 
THE UNITED STATES. 
In order to create jobs, level the playing field for do-
mestic manufacturers, and strengthen economic recovery, 
it is the sense of Congress that the Department of Defense 
should— 
(1) ensure full contractor and subcontractor 
compliance with the Berry Amendment (10 U.S.C. 
2533a) and the Buy American Act (41 U.S.C. 10a 
et seq.); and 
(2) not procure products made by manufactur-
ers in the United States that violate labor standards 
as defined under the laws of the United States. 
SEC. 410. INDUSTRIAL BASE COUNCIL AND FUND. 
(a) INDUSTRIAL BASE COUNCIL.— 
(1) IN GENERAL.—Chapter 7 of title 10, United 
States Code, is amended by adding at the end the 
following new section: 
‘‘§ 188. Industrial Base Council 
‘‘(a) COUNCIL ESTABLISHED.—There is in the De-
partment of Defense an Industrial Base Council. 
‘‘(b) MISSION.—The mission of the Industrial Base 
Council is to assist the Secretary in all matters pertaining 
to the industrial base of the Department of Defense, in-
VerDate Mar 15 2010 
00:09 Jun 26, 2010
Jkt 089200
PO 00000
Frm 01021
Fmt 6652
Sfmt 6201
E:\BILLS\H5136.RHUC
H5136
mmaher on DSKD5P82C1PROD with BILLS
1022 
HR 5136 RHUC 
cluding matters pertaining to the national defense tech-
nology and industrial base included in chapter 148 of this 
title. 
‘‘(c) MEMBERSHIP.—The following officials of the 
Department of Defense shall be members of the Council: 
‘‘(1) The Chairman of the Council, who shall be 
the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, the functions of which 
may be delegated by the Under Secretary only to the 
Principal Deputy Under Secretary of Defense for 
Acquisition, Technology, and Logistics. 
‘‘(2) The Executive Director of the Council, 
who shall be an official from within the Office of the 
Under Secretary responsible for industrial base mat-
ters and who shall report directly to the Under Sec-
retary or the Principal Deputy Under Secretary. 
‘‘(3) Officials from within the Office of the Sec-
retary of Defense, as designated by the Secretary, 
with direct responsibility for matters pertaining to 
following areas: 
‘‘(A) Manufacturing. 
‘‘(B) Research and development. 
‘‘(C) Systems engineering and system inte-
gration. 
‘‘(D) Services. 
VerDate Mar 15 2010 
00:09 Jun 26, 2010
Jkt 089200
PO 00000
Frm 01022
Fmt 6652
Sfmt 6201
E:\BILLS\H5136.RHUC
H5136
mmaher on DSKD5P82C1PROD with BILLS
1023 
HR 5136 RHUC 
‘‘(E) Information Technology. 
‘‘(F) Sustainment and logistics. 
‘‘(4) The Director of the Defense Logistics 
Agency. 
‘‘(5) Officials from the military departments, as 
designated by the Secretary of each military depart-
ment, with responsibility for industrial base matters 
relevant to the military department concerned. 
‘‘(d) DUTIES.—The Council shall assist the Secretary 
in the following: 
‘‘(1) Providing input on industrial base matters 
to strategy reviews, including quadrennial defense 
reviews performed pursuant to section 118 of this 
title. 
‘‘(2) Managing the industrial base. 
‘‘(3) Providing recommendations to the Sec-
retary on budget matters pertaining to the industrial 
base. 
‘‘(4) Providing recommendations to the Sec-
retary on supply chain management and supply 
chain vulnerability. 
‘‘(5) Providing input on industrial base matters 
to defense acquisition policy guidance. 
VerDate Mar 15 2010 
00:09 Jun 26, 2010
Jkt 089200
PO 00000
Frm 01023
Fmt 6652
Sfmt 6201
E:\BILLS\H5136.RHUC
H5136
mmaher on DSKD5P82C1PROD with BILLS
1024 
HR 5136 RHUC 
‘‘(6) Issuing and revising the Department of 
Defense technology and industrial base guidance re-
quired by section 2506 of this title. 
‘‘(7) Such other duties as are assigned by the 
Secretary. 
‘‘(e) REPORTING
OF ACTIVITIES.—The Secretary 
shall include a section describing the activities of the 
Council in the annual report to Congress required by sec-
tion 2505 of this title.’’. 
(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: 
‘‘188. Industrial Base Council.’’. 
(b) INDUSTRIAL BASE FUND.— 
(1) IN
GENERAL.—Chapter 148 of title 10, 
United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 2508. Industrial Base Fund 
‘‘(a) ESTABLISHMENT.—The Secretary of Defense 
shall establish an Industrial Base Fund (in this section 
referred to as the ‘Fund’). 
‘‘(b) CONTROL OF FUND.—The Fund shall be under 
the control of the Industrial Base Council established pur-
suant to section 188 of this title. 
VerDate Mar 15 2010 
00:09 Jun 26, 2010
Jkt 089200
PO 00000
Frm 01024
Fmt 6652
Sfmt 6201
E:\BILLS\H5136.RHUC
H5136
mmaher on DSKD5P82C1PROD with BILLS
1025 
HR 5136 RHUC 
‘‘(c) AMOUNTS IN FUND.—The Fund shall consist of 
amounts appropriated or otherwise made available to the 
Fund. 
‘‘(d) USE OF FUND.—Subject to subsection (e), the 
Fund shall be used— 
‘‘(1) to support the monitoring and assessment 
of the industrial base required by this chapter; 
‘‘(2) to address critical issues in the industrial 
base relating to urgent operation needs; 
‘‘(3) to support efforts to expand the industrial 
base; and 
‘‘(4) to address supply chain vulnerabilities. 
‘‘(e) USE OF FUND SUBJECT TO APPROPRIATIONS.— 
The authority of the Secretary of Defense to use the Fund 
under this section in any fiscal year is subject to the avail-
ability of appropriations for that purpose. 
‘‘(f) EXPENDITURES.—The Secretary shall establish 
procedures for expending monies in the Fund in support 
of the uses identified in subsection (d), including the fol-
lowing: 
‘‘(1) Direct obligations from the Fund. 
‘‘(2) Transfers of monies from the Fund to rel-
evant appropriations of the Department of De-
fense.’’. 
VerDate Mar 15 2010 
00:09 Jun 26, 2010
Jkt 089200
PO 00000
Frm 01025
Fmt 6652
Sfmt 6201
E:\BILLS\H5136.RHUC
H5136
mmaher on DSKD5P82C1PROD with BILLS
1026 
HR 5136 RHUC 
(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: 
‘‘2508. Industrial Base Fund.’’. 
TITLE V—OTHER MATTERS 
SEC. 501. CLOTHING ALLOWANCE REQUIREMENT. 
The Comptroller General shall conduct a study of the 
items purchased under section 418 of title 37, United 
States Code, to determine if there is sufficient domestic 
production of such items to adequately supply members 
of the Armed Forces and shall transmit the results of such 
study to the Secretary of Defense. Not later than 6 
months after receiving the results of such study, the Sec-
retary of Defense shall transmit to the Committees on 
Armed Services of the Senate and the House of Represent-
atives an evaluation on whether such items under the 
study should be considered subject to section 2533a of 
title 10, United States Code (popularly known as the 
‘‘Berry Amendment’’). 
SEC. 502. REQUIREMENT THAT COST OR PRICE TO THE 
FEDERAL GOVERNMENT BE GIVEN AT LEAST 
EQUAL 
IMPORTANCE 
AS 
TECHNICAL 
OR 
OTHER CRITERIA IN EVALUATING COMPETI-
TIVE PROPOSALS FOR DEFENSE CONTRACTS. 
(a) REQUIREMENT.—Subparagraph (A) of section 
2305(a)(3) of title 10, United States Code, is amended 
VerDate Mar 15 2010 
00:09 Jun 26, 2010
Jkt 089200
PO 00000
Frm 01026
Fmt 6652
Sfmt 6201
E:\BILLS\H5136.RHUC
H5136
mmaher on DSKD5P82C1PROD with BILLS
1027 
HR 5136 RHUC 
by striking ‘‘proposals; and’’ at the end of clause (ii) and 
all that follows through the end of the subparagraph and 
inserting the following: ‘‘proposals and that must be as-
signed importance at least equal to all evaluation factors 
other than cost or price when combined.’’. 
(b) WAIVER.—Section 2305(a)(3) of such title is fur-
ther amended by striking subparagraph (B) and inserting 
the following: 
‘‘(B) The requirement of subparagraph (A)(ii) relat-
ing to assigning at least equal importance to evaluation 
factors of cost or price may be waived by the head of the 
agency. The authority to issue a waiver under this sub-
paragraph may not be delegated.’’. 
(c) REPORT.—Section 2305(a)(3) of such title is fur-
ther amended by adding at the end the following new sub-
paragraph: 
‘‘(C) Not later than 180 days after the end of each 
fiscal year, the Secretary of Defense shall submit to Con-
gress, and post on a publicly available website of the De-
partment of Defense, a report containing a list of each 
waiver issued by the head of an agency under subpara-
graph (B) during the preceding fiscal year.’’. 
Passed the House of Representatives May 28, 2010. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
VerDate Mar 15 2010 
00:09 Jun 26, 2010
Jkt 089200
PO 00000
Frm 01027
Fmt 6652
Sfmt 6201
E:\BILLS\H5136.RHUC
H5136
mmaher on DSKD5P82C1PROD with BILLS