282 
Sec. 865. Requirement to review references to services acquisition throughout 
the Federal Acquisition Regulation and the Defense Federal 
Acquisition Regulation Supplement. 
Sec. 866.
Pilot program on acquisition of military purpose nondevelopmental 
items. 
PART II—DEFENSE ACQUISITION WORKFORCE 
Sec. 871. Acquisition workforce excellence. 
Sec. 872. Amendments to the acquisition workforce demonstration project. 
Sec. 873. Career development for civilian and military personnel in the acquisi-
tion workforce. 
Sec. 874. Recertification and training requirements. 
Sec. 875. Information technology acquisition workforce. 
Sec. 876. Definition of acquisition workforce. 
Sec. 877. Defense Acquisition University curriculum review. 
PART III—FINANCIAL MANAGEMENT 
Sec. 881. Audit readiness of financial statements of the Department of De-
fense. 
Sec. 882. Review of obligation and expenditure thresholds. 
Sec. 883. Disclosure and traceability of the cost of Department of Defense 
health care contracts. 
PART IV—INDUSTRIAL BASE 
Sec. 891. Expansion of the industrial base. 
Sec. 892. Price trend analysis for supplies and equipment purchased by the De-
partment of Defense. 
Sec. 893. Contractor business systems. 
Sec. 894. Review and recommendations on eliminating barriers to contracting 
with the Department of Defense. 
Sec. 895. Inclusion of the providers of services and information technology in 
the national technology and industrial base. 
Sec. 896. Deputy Assistant Secretary of Defense for Manufacturing and Indus-
trial Base Policy; Industrial Base Fund. 
Subtitle A—Acquisition Policy and 
Management 
SEC. 801. DISCLOSURE TO LITIGATION SUPPORT CONTRAC-
TORS. 
(a) IN GENERAL.—Section 2320 of title 10, United 
States Code, is amended— 
(1) in subsection (c)(2)— 
(A) by striking ‘‘subsection (a), allowing’’ 
and inserting ‘‘subsection (a)— 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00282
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
283 
‘‘(A) allowing’’; and 
(B) by adding at the end the following new 
subparagraph: 
‘‘(B) allowing a covered litigation support 
contractor access to and use of any technical, 
proprietary, or confidential data delivered under 
a contract for the sole purpose of providing liti-
gation support to the Government in the form 
of administrative, technical, or professional 
services during or in anticipation of litigation; 
or’’; and 
(2) by inserting after subsection (f) the fol-
lowing: 
‘‘(g) In this section, the term ‘covered litigation sup-
port contractor’ means a contractor (including an expert 
or technical consultant) under contract with the Depart-
ment of Defense to provide litigation support, which con-
tractor executes a contract with the Government agreeing 
to and acknowledging— 
‘‘(1) that proprietary or nonpublic technical 
data furnished will be accessed and used only for the 
purposes stated in that contract; 
‘‘(2) that the covered litigation support con-
tractor will take all reasonable steps to protect the 
proprietary and nonpublic nature of the technical 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00283
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
284 
data furnished to the covered litigation support con-
tractor; and 
‘‘(3) that such technical data provided to the 
covered litigation support contractor under the au-
thority of this section shall not be used by the cov-
ered litigation support contractor to compete against 
the third party for Government or non-Government 
contracts.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on the date that is 120 
days after the date of the enactment of this Act. 
SEC. 802. DESIGNATION OF ENGINE DEVELOPMENT AND 
PROCUREMENT PROGRAM AS MAJOR SUB-
PROGRAM. 
(a) DESIGNATION
AS MAJOR SUBPROGRAM.—Not 
later than 30 days after the date of the enactment of this 
Act, the Secretary of Defense shall designate an engine 
development and procurement program as a major subpro-
gram of the F–35 Lightning II aircraft major defense ac-
quisition program, in accordance with section 2430a of 
title 10, United States Code. 
(b) ORIGINAL BASELINE.—For purposes of reporting 
requirements referred to in section 2430a(b) of title 10, 
United States Code, for the major subprogram designated 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00284
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
285 
under subsection (a), the Secretary shall use the Milestone 
B decision as the original baseline for the subprogram. 
(c) 
ACTIONS
FOLLOWING
CRITICAL
COST 
GROWTH.— 
(1) IN GENERAL.—Subject to paragraph (2), to 
the extent that the Secretary elects to restructure 
the Lightning II aircraft major defense acquisition 
program subsequent to a reassessment and actions 
required by subsections (a) and (c) of section 2433a 
of title 10, United States Code, during fiscal year 
2010, and also conducts such reassessment and ac-
tions with respect to an F–35 engine development 
and procurement program (including related report-
ing based on the original baseline as defined in sub-
section (c)), the requirements of section 2433a of 
such title with respect to a major subprogram des-
ignated under subsection (a) shall be considered to 
be met with respect to the major subprogram. 
(2) LIMITATION.—Actions taken in accordance 
with paragraph (1) shall be considered to meet the 
requirements of section 2433a of title 10, United 
States Code, with respect to a major subprogram 
designated under subsection (a) only to the extent 
that designation as a major subprogram would re-
quire the Secretary of Defense to conduct a reas-
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00285
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
286 
sessment and take actions pursuant to such section 
2433a for such a subprogram upon enactment of 
this Act. The requirements of such section 2433a 
shall not be considered to be met with respect to 
such a subprogram in the event that additional pro-
grammatic changes, following the date of the enact-
ment of this Act, cause the program acquisition unit 
cost or procurement unit cost of such a subprogram 
to increase by a percentage equal to or greater than 
the critical cost growth threshold (as defined in sec-
tion 2433(a)(5) of such title) for the subprogram. 
SEC. 803. ENHANCEMENT OF DEPARTMENT OF DEFENSE 
AUTHORITY TO RESPOND TO COMBAT AND 
SAFETY EMERGENCIES THROUGH RAPID AC-
QUISITION AND DEPLOYMENT OF URGENTLY 
NEEDED SUPPLIES. 
(a) REQUIREMENT TO ESTABLISH PROCEDURES.— 
Subsection (a) of section 806 of the Bob Stump National 
Defense Authorization Act for Fiscal Year 2003 (10 
U.S.C. 2302 note) is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘items’’ and inserting ‘‘supplies’’; and 
(2) by striking paragraph (1) and inserting the 
following new paragraph (1): 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00286
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
287 
‘‘(1)(A) currently under development by the De-
partment of Defense or available from the commer-
cial sector; or 
‘‘(B) require only minor modifications to sup-
plies described in subparagraph (A); and’’. 
(b) ISSUES TO BE ADDRESSED.—Subsection (b) of 
such section is amended— 
(1) in paragraph (1)(B), by striking ‘‘items’’ 
and inserting ‘‘supplies’’; and 
(2) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘items’’ and inserting ‘‘sup-
plies’’; 
(B) in subparagraphs (A) and (B), by 
striking ‘‘an item’’ and inserting ‘‘the supplies’’; 
and 
(C) in subparagraph (C), by inserting ‘‘and 
utilization’’ after ‘‘deployment’’. 
(c) RESPONSE
TO COMBAT EMERGENCIES.—Sub-
section (c) of such section is amended— 
(1) by striking ‘‘equipment’’ each place it ap-
pears other than paragraph (5) and inserting ‘‘sup-
plies’’; 
(2) by striking ‘‘combat capability’’ each place 
it appears; 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00287
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
288 
(3) by striking ‘‘that has resulted in combat fa-
talities’’ each place it appears and inserting ‘‘that 
has resulted in combat casualties, or is likely to re-
sult in combat casualties’’; 
(4) in paragraph (1), by striking ‘‘is’’ and in-
serting ‘‘are’’; 
(5) in paragraph (2)— 
(A) in subparagraph (A), by striking ‘‘is’’ 
each place it appears and inserting ‘‘are’’; and 
(B) in subparagraph (B), by striking ‘‘fa-
talities’’ at the end and inserting ‘‘casualties’’; 
(6) by amending paragraph (3) to read as fol-
lows: 
‘‘(3) In any fiscal year in which the Secretary makes 
a determination described in paragraph (1), the Secretary 
may use any funds available to the Department of Defense 
for that fiscal year for acquisitions of supplies under this 
section if the determination includes a written finding that 
the use of such funds is necessary to address the combat 
capability deficiency in a timely manner. The authority of 
this section may not be used to acquire supplies in an 
amount aggregating more than $200,000,000 during any 
such fiscal year.’’; 
(7) in paragraph (4)— 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00288
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
289 
(A) by inserting ‘‘, in consultation with the 
Director of the Office of Management and 
Budget,’’ after ‘‘shall’’; and 
(B) by striking ‘‘Each such notice’’ and in-
serting ‘‘For each such determination, the no-
tice under the preceding sentence’’; and 
(8) in paragraph (5), by striking ‘‘that equip-
ment’’ and inserting ‘‘the supplies concerned’’. 
(d) WAIVER OF CERTAIN STATUES AND REGULA-
TIONS.—Subsection (d)(1) of such section is amended by 
striking ‘‘equipment’’ in subparagraphs (A), (B), and (C) 
and inserting ‘‘supplies’’. 
(e) TESTING REQUIREMENT.—Subsection (e) of such 
section is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘an item’’ and inserting ‘‘the 
supplies’’; and 
(B) in subparagraph (B), by striking ‘‘of 
the item’’ and all that follows through ‘‘require-
ments document’’ and inserting ‘‘of the supplies 
in meeting the original requirements for the 
supplies (as stated in a statement of the urgent 
operational need’’; 
(2) in paragraph (2)— 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00289
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
290 
(A) by striking ‘‘an item’’ and inserting 
‘‘supplies’’; and 
(B) by striking ‘‘the item’’ and inserting 
‘‘the supplies’’; and 
(3) in paragraph (3), by striking ‘‘items’’ each 
place it appears and inserting ‘‘supplies’’. 
(f) LIMITATION.—Subsection (f) of such section is 
amended to read as follows: 
‘‘(f) LIMITATION.—In the case of supplies that are 
part of a major system for which a low-rate initial produc-
tion quantity determination has been made pursuant to 
section 2400 of title 10, United States Code, the quantity 
of such supplies acquired using the procedures prescribed 
pursuant to this section may not exceed an amount con-
sistent with complying with limitations on the quantity of 
articles approved for low-rate initial production for such 
system. Any such supplies shall be included in any relevant 
calculation of quantities for low-rate initial production for 
the system concerned.’’. 
SEC. 804. REVIEW OF ACQUISITION PROCESS FOR RAPID 
FIELDING OF CAPABILITIES IN RESPONSE TO 
URGENT OPERATIONAL NEEDS. 
(a) REVIEW OF RAPID ACQUISITION PROCESS RE-
QUIRED.— 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00290
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
291 
(1) IN
GENERAL.—Not later than one year 
after the date of the enactment of this Act, the Sec-
retary of Defense shall complete a review of the 
process for the fielding of capabilities in response to 
urgent operational needs and submit a report on the 
review to the congressional defense committees. 
(2) REVIEW
AND
REPORT
REQUIREMENTS.— 
The review pursuant to this section shall include 
consideration of various improvements to the acqui-
sition process for rapid fielding of capabilities in re-
sponse to urgent operational needs. For each im-
provement, the report on the review shall discuss— 
(A) the Department’s review of the im-
provement; 
(B) if the improvement is being imple-
mented by the Department, a schedule for im-
plementing the improvement; and 
(C) if the improvement is not being imple-
mented by the Department, an explanation of 
why the improvement is not being implemented. 
(3) IMPROVEMENTS TO BE CONSIDERED.—The 
improvements that shall be considered during the re-
view are the following: 
(A) Providing a streamlined, expedited, 
and tightly integrated iterative approach to— 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00291
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
292 
(i) the identification and validation of 
urgent operational needs; 
(ii) the analysis of alternatives and 
identification of preferred solutions; 
(iii) the development and approval of 
appropriate requirements and acquisition 
documents; 
(iv) the identification and minimiza-
tion of development, integration, and man-
ufacturing risks; 
(v) the consideration of operation and 
sustainment costs; 
(vi) the allocation of appropriate fund-
ing; and 
(vii) the rapid production and delivery 
of required capabilities. 
(B) Clearly defining the roles and respon-
sibilities of the Office of the Secretary of De-
fense, the Joint Chiefs of Staff, the military de-
partments, and other components of the De-
partment of Defense for carrying out all phases 
of the process. 
(C) Designating a senior official within the 
Office of the Secretary of Defense with primary 
responsibility for making recommendations to 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00292
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
293 
the Secretary on the use of the authority pro-
vided by subsections (c) and (d) of section 806 
of the Bob Stump National Defense Authoriza-
tion Act for Fiscal Year 2003 (10 U.S.C. 2302 
note), as amended by section 803 of this Act, 
in appropriate circumstances. 
(D) Establishing a target date for the 
fielding of a capability pursuant to each vali-
dated urgent operational need. 
(E) Implementing a system for— 
(i) documenting key process mile-
stones, such as funding, acquisition, field-
ing, and assessment decisions and actions; 
and 
(ii) tracking the cost, schedule, and 
performance of acquisitions conducted pur-
suant to the process. 
(F) Establishing a formal feedback mecha-
nism for the commanders of the combatant 
commands to provide information to the Joint 
Chiefs of Staff and senior acquisition officials 
on how well fielded solutions are meeting urgent 
operational needs. 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00293
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
294 
(G) Establishing a dedicated source of 
funding for the rapid fielding of capabilities in 
response to urgent operational needs. 
(H) Issuing guidance to provide for the ap-
propriate transition of capabilities acquired 
through rapid fielding into the traditional budg-
et, requirements, and acquisition process for 
purposes of contracts for follow-on production, 
sustainment, and logistics support. 
(I) Such other improvements as the Sec-
retary considers appropriate. 
(b) DISCRIMINATING URGENT OPERATIONAL NEEDS 
FROM TRADITIONAL REQUIREMENTS.— 
(1) EXPEDITED REVIEW PROCESS.—Not later 
than 270 days after the date of the enactment of 
this Act, the Secretary shall develop and implement 
an expedited review process to determine whether 
capabilities proposed as urgent operational needs are 
appropriate for fielding through the process for the 
rapid fielding of capabilities or should be fielded 
through the traditional acquisition process. 
(2) ELEMENTS.—The review process developed 
and implemented pursuant to paragraph (1) shall— 
(A) apply to the rapid fielding of capabili-
ties in response to joint urgent operational need 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00294
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
295 
statements and to other urgent operational 
needs statements generated by the military de-
partments and the combatant commands; 
(B) identify officials responsible for mak-
ing determinations described in paragraph (1); 
(C) establish appropriate time periods for 
making such determinations; 
(D) set forth standards and criteria for 
making such determinations based on consider-
ations of urgency, risk, and life-cycle manage-
ment; 
(E) establish appropriate thresholds for 
the applicability of the review process, or of ele-
ments of the review process; and 
(F) authorize appropriate officials to make 
exceptions from standards and criteria estab-
lished under subparagraph (D) in exceptional 
circumstances. 
(3) COVERED CAPABILITIES.—The review proc-
ess developed and implemented pursuant to para-
graph (1) shall provide that, subject to such excep-
tions as the Secretary considers appropriate for pur-
poses of this section, the acquisition process for 
rapid fielding of capabilities in response to urgent 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00295
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
296 
operational needs is appropriate only for capabilities 
that— 
(A) can be fielded within a period of two 
to 24 months; 
(B) do not require substantial development 
effort; 
(C) are based on technologies that are 
proven and available; and 
(D) can appropriately be acquired under 
fixed price contracts. 
(4) INCLUSION
IN
REPORT.—The Secretary 
shall include a description of the expedited review 
process implemented pursuant to paragraph (1) in 
the report required by subsection (a). 
SEC. 805. ACQUISITION OF MAJOR AUTOMATED INFORMA-
TION SYSTEM PROGRAMS. 
(a) PROGRAM TO IMPROVE INFORMATION TECH-
NOLOGY PROCESSES.— 
(1) IN
GENERAL.—Chapter 131 of title 10, 
United States Code, is amended by inserting after 
section 2223 the following new section: 
‘‘§ 2223a. Information technology acquisition plan-
ning and oversight requirements 
‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary 
of Defense shall establish a program to improve the plan-
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00296
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
297 
ning and oversight processes for the acquisition of major 
automated information systems by the Department of De-
fense. 
‘‘(b) PROGRAM COMPONENTS.—The program estab-
lished under subsection (a) shall include— 
‘‘(1) a documented process for information 
technology acquisition planning, requirements devel-
opment and management, project management and 
oversight, earned value management, and risk man-
agement; 
‘‘(2) the development of appropriate metrics 
that can be implemented and monitored on a real- 
time basis for performance measurement of— 
‘‘(A) processes and development status of 
investments in major automated information 
system programs; 
‘‘(B) continuous process improvement of 
such programs; and 
‘‘(C) achievement of program and invest-
ment outcomes; 
‘‘(3) a process to ensure that key program per-
sonnel have an appropriate level of experience, train-
ing, and education in the planning, acquisition, exe-
cution, management, and oversight of information 
technology systems; 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00297
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
298 
‘‘(4) a process to ensure sufficient resources 
and infrastructure capacity for test and evaluation 
of information technology systems; 
‘‘(5) a process to ensure that military depart-
ments and Defense Agencies adhere to established 
processes and requirements relating to the planning, 
acquisition, execution, management, and oversight of 
information technology programs and developments; 
and 
‘‘(6) a process under which an appropriate De-
partment of Defense official may intervene or termi-
nate the funding of an information technology in-
vestment if the investment is at risk of not achieving 
major project milestones.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 131 of such title 
is amended by inserting after the item relating to 
section 2223 the following new item: 
‘‘2223a. Information technology acquisition planning and oversight require-
ments.’’. 
(b) ANNUAL
REPORT
TO
CONGRESS.—Section 
2445b(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraphs: 
‘‘(5) For each major automated information 
system program for which such information has not 
been provided in a previous annual report— 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00298
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
299 
‘‘(A) a description of the business case 
analysis (if any) that has been prepared for the 
program and key functional requirements for 
the program; 
‘‘(B) a description of the analysis of alter-
natives conducted with regard to the program; 
‘‘(C) an assessment of the extent to which 
the program, or portions of the program, have 
technical requirements of sufficient clarity that 
the program, or portions of the program, may 
be feasibly procured under firm, fixed-price con-
tracts; 
‘‘(D) the most recent independent cost es-
timate or cost analysis for the program pro-
vided by the Director of Cost Assessment and 
Program Evaluation in accordance with section 
2334(a)(6) of this title; 
‘‘(E) a certification by a Department of 
Defense acquisition official with responsibility 
for the program that all technical and business 
requirements have been reviewed and validated 
to ensure alignment with the business case; and 
‘‘(F) an explanation of the basis for the 
certification described in subparagraph (E). 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00299
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
300 
‘‘(6) For each major automated information 
system program for which the information required 
under paragraph (5) has been provided in a previous 
annual report, a summary of any significant changes 
to the information previously provided.’’. 
SEC. 806. REQUIREMENTS FOR INFORMATION RELATING 
TO SUPPLY CHAIN RISK. 
(a) AUTHORITY.—Subject to subsection (b), the head 
of a covered agency may— 
(1) carry out a covered procurement action; and 
(2) limit, notwithstanding any other provision 
of law, in whole or in part, the disclosure of informa-
tion relating to the basis for carrying out a covered 
procurement action. 
(b) DETERMINATION AND NOTIFICATION.—The head 
of a covered agency may exercise the authority provided 
in subsection (a) only after— 
(1) obtaining a joint recommendation by the 
Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics and the Chief Information Of-
ficer of the Department of Defense, on the basis of 
a risk assessment by the Under Secretary of Defense 
for Intelligence, that there is a significant supply 
chain risk to a covered system; 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00300
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
301 
(2) making a determination in writing, in un-
classified or classified form, with the concurrence of 
the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, that— 
(A) use of the authority in subsection 
(a)(1) is necessary to protect national security 
by reducing supply chain risk; 
(B) less intrusive measures are not reason-
ably available to reduce such supply chain risk; 
and 
(C) in a case where the head of the covered 
agency plans to limit disclosure of information 
under subsection (a)(2), the risk to national se-
curity due to the disclosure of such information 
outweighs the risk due to not disclosing such 
information; and 
(3) providing a classified or unclassified notice 
of the determination made under paragraph (2) to 
the appropriate congressional committees, which no-
tice shall include— 
(A) the information required by section 
2304(f)(3) of title 10, United States Code; 
(B) the joint recommendation by the 
Under Secretary of Defense for Acquisition, 
Technology, and Logistics and the Chief Infor-
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00301
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
302 
mation Officer of the Department of Defense as 
specified in paragraph (1); 
(C) a summary of the risk assessment by 
the Under Secretary of Defense for Intelligence 
that serves as the basis for the joint rec-
ommendation specified in paragraph (1); and 
(D) a summary of the basis for the deter-
mination, including a discussion of less intru-
sive measures that were considered and why 
they were not reasonably available to reduce 
supply chain risk. 
(c) DELEGATION.—The head of a covered agency 
may not delegate the authority provided in subsection (a) 
or the responsibility to make a determination under sub-
section (b) to an official below the level of the service ac-
quisition executive for the agency concerned. 
(d) LIMITATION ON DISCLOSURE.—If the head of a 
covered agency has exercised the authority provided in 
subsection (a)(2) to limit disclosure of information— 
(1) no action undertaken by the agency head 
under such authority shall be subject to review in a 
bid protest before the Government Accountability 
Office or in any Federal court; and 
(2) the agency head shall— 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00302
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
303 
(A) notify appropriate parties of a covered 
procurement action and the basis for such ac-
tion only to the extent necessary to effectuate 
the covered procurement action; 
(B) notify other Department of Defense 
components or other Federal agencies respon-
sible for procurements that may be subject to 
the same or similar supply chain risk, in a man-
ner and to the extent consistent with the re-
quirements of national security; and 
(C) ensure the confidentiality of any such 
notifications. 
(e) DEFINITIONS.—In this section: 
(1) HEAD OF A COVERED AGENCY.—The term 
‘‘head of a covered agency’’ means each of the fol-
lowing: 
(A) The Secretary of Defense. 
(B) The Secretary of the Army. 
(C) The Secretary of the Navy. 
(D) The Secretary of the Air Force. 
(2) COVERED
PROCUREMENT
ACTION.—The 
term ‘‘covered procurement action’’ means any of 
the following actions, if the action takes place in the 
course of conducting a covered procurement: 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00303
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
304 
(A) The exclusion of a source that fails to 
meet qualification standards established in ac-
cordance with the requirements of section 2319 
of title 10, United States Code, for the purpose 
of reducing supply chain risk in the acquisition 
of covered systems. 
(B) The exclusion of a source that fails to 
achieve an acceptable rating with regard to an 
evaluation factor providing for the consideration 
of supply chain risk in the evaluation of pro-
posals for the award of a contract or the 
issuance of a task or delivery order. 
(C) The decision to withhold consent for a 
contractor to subcontract with a particular 
source or to direct a contractor for a covered 
system to exclude a particular source from con-
sideration for a subcontract under the contract. 
(3) COVERED PROCUREMENT.—The term ‘‘cov-
ered procurement’’ means— 
(A) a source selection for a covered system 
or a covered item of supply involving either a 
performance specification, as provided in sec-
tion 2305(a)(1)(C)(ii) of title 10, United States 
Code, or an evaluation factor, as provided in 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00304
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
305 
section 2305(a)(2)(A) of such title, relating to 
supply chain risk; 
(B) the consideration of proposals for and 
issuance of a task or delivery order for a cov-
ered system or a covered item of supply, as pro-
vided in section 2304c(d)(3) of title 10, United 
States Code, where the task or delivery order 
contract concerned includes a contract clause 
establishing a requirement relating to supply 
chain risk; or 
(C) any contract action involving a con-
tract for a covered system or a covered item of 
supply where such contract includes a clause es-
tablishing requirements relating to supply chain 
risk. 
(4) SUPPLY CHAIN RISK.—The term ‘‘supply 
chain risk’’ means the risk that an adversary may 
sabotage, maliciously introduce unwanted function, 
or otherwise subvert the design, integrity, manufac-
turing, production, distribution, installation, oper-
ation, or maintenance of a covered system so as to 
surveil, deny, disrupt, or otherwise degrade the func-
tion, use, or operation of such system. 
(5) COVERED SYSTEM.—The term ‘‘covered sys-
tem’’ means a national security system, as that term 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00305
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
306 
is defined in section 3542(b) of title 44, United 
States Code. 
(6) COVERED
ITEM
OF
SUPPLY.—The term 
‘‘covered item of supply’’ means an item of informa-
tion technology (as that term is defined in section 
11101 of title 40, United States Code) that is pur-
chased for inclusion in a covered system, and the 
loss of integrity of which could result in a supply 
chain risk for a covered system. 
(7) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) in the case of a covered system in-
cluded in the National Intelligence Program or 
the Military Intelligence Program, the Select 
Committee on Intelligence of the Senate, the 
Permanent Select Committee on Intelligence of 
the House of Representatives, and the congres-
sional defense committees; and 
(B) in the case of a covered system not 
otherwise included in subparagraph (A), the 
congressional defense committees. 
(f) EFFECTIVE DATE.—The requirements of this sec-
tion shall take effect on the date that is 180 days after 
the date of the enactment of this Act and shall apply to— 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00306
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
307 
(1) contracts that are awarded on or after such 
date; and 
(2) task and delivery orders that are issued on 
or after such date pursuant to contracts that award-
ed before, on, or after such date. 
(g) SUNSET.—The authority provided in this section 
shall expire on the date that is three years after the date 
of the enactment of this Act. 
Subtitle B—Provisions Relating to 
Major Defense Acquisition Pro-
grams 
SEC. 811. COST ESTIMATES FOR PROGRAM BASELINES AND 
CONTRACT NEGOTIATIONS FOR MAJOR DE-
FENSE 
ACQUISITION 
AND 
MAJOR 
AUTO-
MATED INFORMATION SYSTEM PROGRAMS. 
Section 2334 of title 10, United States Code, is 
amended— 
(1) in subsection (d)— 
(A) in paragraph (1)— 
(i) by striking ‘‘paragraph (2)’’ and 
inserting ‘‘paragraph (3)’’; and 
(ii) by striking ‘‘, the rationale for se-
lecting such confidence level, and, if such 
confidence level is less than 80 percent, the 
justification for selecting a confidence level 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00307
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
308 
of less than 80 percent; and’’ and inserting 
‘‘and the rationale for selecting such con-
fidence level;’’; 
(B) by redesignating paragraph (2) as 
paragraph (3); and 
(C) by inserting after paragraph (1) the 
following new paragraph (2): 
‘‘(2) ensure that such confidence level provides 
a high degree of confidence that the program can be 
completed without the need for significant adjust-
ment to program budgets; and’’; 
(2) by redesignating subsections (e) and (f) as 
subsections (f) and (g), respectively; and 
(3) by inserting after subsection (d) the fol-
lowing new subsection (e): 
‘‘(e) ESTIMATES
FOR PROGRAM BASELINE
AND 
ANALYSES AND TARGETS FOR CONTRACT NEGOTIATION 
PURPOSES.—(1) The policies, procedures, and guidance 
issued by the Director of Cost Assessment and Program 
Evaluation in accordance with the requirements of sub-
section (a) shall provide that— 
‘‘(A) cost estimates developed for baseline de-
scriptions and other program purposes conducted 
pursuant to subsection (a)(6) are not to be used for 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00308
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
309 
the purpose of contract negotiations or the obliga-
tion of funds; and 
‘‘(B) cost analyses and targets developed for 
the purpose of contract negotiations and the obliga-
tion of funds are based on the Government’s reason-
able expectation of successful contractor perform-
ance in accordance with the contractor’s proposal 
and previous experience. 
‘‘(2) The Program Manager and contracting officer 
for each major defense acquisition program and major 
automated information system program shall ensure that 
cost analyses and targets developed for the purpose of con-
tract negotiations and the obligation of funds are carried 
out in accordance with the requirements of paragraph (1) 
and the policies, procedures, and guidance issued by the 
Director of Cost Assessment and Program Evaluation. 
‘‘(3) Funds that are made available for a major de-
fense acquisition program or major automated information 
system program in accordance with a cost estimate con-
ducted pursuant to subsection (a)(6), but are excess to 
a cost analysis or target developed pursuant to paragraph 
(2), shall remain available for obligation in accordance 
with the terms of applicable authorization and appropria-
tions Acts. 
‘‘(4) Funds described in paragraph (3)— 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00309
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
310 
‘‘(A) may be used— 
‘‘(i) to cover any increased program costs 
identified by a revised cost analysis or target 
developed pursuant to paragraph (2); 
‘‘(ii) to acquire additional end items in ac-
cordance with the requirements of section 2308 
of this title; or 
‘‘(iii) to cover the cost of risk reduction 
and process improvements; and 
‘‘(B) may be reprogrammed, in accordance with 
established procedures, only if determined to be ex-
cess to program needs on the basis of a cost esti-
mate developed with the concurrence of the Director 
of Cost Assessment and Program Evaluation.’’. 
SEC. 812. MANAGEMENT OF MANUFACTURING RISK IN 
MAJOR DEFENSE ACQUISITION PROGRAMS. 
(a) GUIDANCE REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall issue comprehensive guidance on the 
management of manufacturing risk in major defense ac-
quisition programs. 
(b) ELEMENTS.—The guidance issued under sub-
section (a) shall, at a minimum— 
(1) require the use of manufacturing readiness 
levels as a basis for measuring, assessing, reporting, 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00310
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
311 
and communicating manufacturing readiness and 
risk on major defense acquisition programs through-
out the Department of Defense; 
(2) provide guidance on the definition of manu-
facturing readiness levels and how manufacturing 
readiness levels should be used to assess manufac-
turing risk and readiness in major defense acquisi-
tion programs; 
(3) specify manufacturing readiness levels that 
should be achieved at key milestones and decision 
points for major defense acquisition programs; 
(4) identify tools and models that may be used 
to assess, manage, and reduce risks that are identi-
fied in the course of manufacturing readiness assess-
ments for major defense acquisition programs; and 
(5) require appropriate consideration of the 
manufacturing readiness and manufacturing readi-
ness processes of potential contractors and sub-
contractors as a part of the source selection process 
for major defense acquisition programs. 
(c) MANUFACTURING READINESS EXPERTISE.—The 
Secretary shall ensure that— 
(1) the acquisition workforce chapter of the an-
nual strategic workforce plan required by section 
115b of title 10, United States Code, includes an as-
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00311
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
312 
sessment of the critical manufacturing readiness 
knowledge and skills needed in the acquisition work-
force and a plan of action for addressing any gaps 
in such knowledge and skills; and 
(2) the need of the Department for manufac-
turing readiness knowledge and skills is given appro-
priate consideration, comparable to the consideration 
given to other program management functions, as 
the Department identifies areas of need for funding 
through the Defense Acquisition Workforce Develop-
ment Fund established in accordance with the re-
quirements of section 1705 of title 10, United States 
Code. 
(d) MAJOR DEFENSE ACQUISITION PROGRAM DE-
FINED.—In this section, the term ‘‘major defense acquisi-
tion program’’ has the meaning given that term in section 
2430(a) of title 10, United States Code. 
SEC. 813. MODIFICATION AND EXTENSION OF REQUIRE-
MENTS OF THE WEAPON SYSTEM ACQUISI-
TION REFORM ACT OF 2009. 
(a) EXTENSION OF REPORTING REQUIREMENTS.— 
Section 102(b) of the Weapon Systems Acquisition Re-
form Act of 2009 (Public Law 111–23; 123 Stat. 1714; 
10 U.S.C. 2430 note) is amended— 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00312
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
313 
(1) in paragraph (2), by inserting ‘‘, and not 
later than February 15 of each year from 2011 
through 2014’’ after ‘‘Not later than 180 days after 
the date of the enactment of this Act’’; and 
(2) in paragraph (3), by striking ‘‘The first an-
nual report’’ and inserting ‘‘Each annual report 
from 2010 through 2014’’. 
(b) CLARIFICATION THAT PROTOTYPES MAY BE AC-
QUIRED FROM COMMERCIAL, GOVERNMENT, OR ACA-
DEMIC SOURCES.—Paragraph (4) of section 203(a) of the 
Weapon Systems Acquisition Reform Act of 2009 (Public 
Law 111–23; 123 Stat. 1722; 10 U.S.C. 2430 note) is 
amended to read as follows: 
‘‘(4) That prototypes— 
‘‘(A) may be required under paragraph (1) 
or (3) for the system to be acquired or, if proto-
typing of the system is not feasible, for critical 
subsystems of the system; and 
‘‘(B) may be acquired from commercial, 
government, or academic sources.’’. 
(c) CLARIFICATION THAT CERTIFICATIONS ARE NOT 
REQUIRED
FOR MAJOR DEFENSE ACQUISITION PRO-
GRAMS FOLLOWING MILESTONE C APPROVAL.—Section 
204(c)(2) of the Weapon Systems Acquisition Reform Act 
of 2009 (123 Stat. 1724) is amended— 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00313
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
314 
(1) in subparagraph (A), by striking ‘‘; and’’ 
and inserting a semicolon; 
(2) in subparagraph (B), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(C) has not yet achieved a Milestone C 
approval.’’. 
(d) CLARIFICATION THAT CERTAIN MILESTONE B 
CERTIFICATION CRITERIA MAY BE WAIVED.— 
(1) WAIVER AUTHORITY.—Effective as of May 
22, 2009, section 2366b(d) of title 10, United States 
Code, as amended by section 205(a)(1) of the Weap-
on Systems Acquisition Reform Act of 2009 (123 
Stat. 1724), is amended— 
(A) in paragraph (1), by striking ‘‘speci-
fied in paragraph (1) or (2) of subsection (a)’’ 
and inserting ‘‘specified in paragraph (1), (2), 
or (3) of subsection (a)’’; and 
(B) in paragraph (2), by striking ‘‘speci-
fied in paragraphs (1) and (2) of subsection 
(a)’’ and inserting ‘‘specified in paragraphs (1), 
(2), and (3) of subsection (a)’’. 
(2) DETERMINATION REGARDING SATISFACTION 
OF CERTIFICATION COMPONENTS.—Effective as of 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00314
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
315 
May 22, 2009, and as if included therein as enacted, 
section 205(b)(1) of the Weapon Systems Acquisi-
tion Reform Act of 2009 (10 U.S.C. 2366b note) is 
amended by striking ‘‘certification components speci-
fied in paragraphs (1) and (2) of subsection (a) of 
section 2366b of title 10, United States Code’’ and 
inserting ‘‘certification components specified in para-
graphs (1), (2), and (3) of subsection (a) of section 
2366b of title 10, United States Code’’. 
(e) CORRECTION TO REFERENCE.—Effective as of 
May 22, 2009, and as if included therein as enacted, sec-
tion 205(c) of the Weapon Systems Acquisition Reform 
Act of 2009 (10 U.S.C. 2433a note) is amended by strik-
ing 
‘‘section 
2433a(c)(3)’’ 
and 
inserting 
‘‘section 
2433a(c)(1)(C)’’. 
SEC. 814. INCLUSION OF MAJOR SUBPROGRAMS TO MAJOR 
DEFENSE ACQUISITION PROGRAMS UNDER 
VARIOUS ACQUISITION-RELATED REQUIRE-
MENTS. 
(a) REPORTING REQUIREMENTS.—Section 2430a(b) 
of title 10, United States Code, is amended— 
(1) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively; 
(2) by inserting ‘‘(1)’’ before ‘‘If the Sec-
retary’’; 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00315
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
316 
(3) in subparagraph (A), as so redesignated, by 
inserting ‘‘(other than as provided in paragraph 
(2))’’ before the semicolon; and 
(4) by adding at the end the following new 
paragraph: 
‘‘(2) For a major defense acquisition program for 
which a designation of a major subprogram has been made 
under subsection (a), unit costs under this chapter shall 
be submitted in accordance with the definitions in sub-
section (d).’’. 
(b) MILESTONE A APPROVAL CERTIFICATION RE-
QUIREMENTS.—Section 2366a of such title is amended— 
(1) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘a major 
defense acquisition program certified by the 
Milestone Decision Authority under subsection 
(a), if the projected cost of the program’’ and 
inserting ‘‘a major defense acquisition program 
certified by the Milestone Decision Authority 
under subsection (a) or a designated major sub-
program of such program, if the projected cost 
of the program or subprogram’’; and 
(B) in paragraph (2), by inserting ‘‘or des-
ignated major subprogram’’ after ‘‘major de-
fense acquisition program’’; and 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00316
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
317 
(2) in subsection (c)— 
(A) by redesignating paragraphs (2), (3), 
(4), and (5) as paragraphs (3), (4), (5), and 
(6), respectively; and 
(B) by inserting after paragraph (1) the 
following new paragraph (2): 
‘‘(2) The term ‘designated major subprogram’ 
means a major subprogram of a major defense ac-
quisition 
program 
designated 
under 
section 
2430a(a)(1) of this title.’’. 
(c) MILESTONE B APPROVAL CERTIFICATION RE-
QUIREMENTS.—Section 2366b of such title is amended— 
(1) in subsection (b)(1)— 
(A) by striking ‘‘any changes to the pro-
gram’’ and inserting ‘‘any changes to the pro-
gram or a designated major subprogram of 
such program’’; and 
(B) in subparagraph (B), by striking ‘‘oth-
erwise cause the program’’ and inserting ‘‘oth-
erwise cause the program or subprogram’’; and 
(2) in subsection (g)— 
(A) by redesignating paragraphs (2), (3), 
and (4) as paragraphs (3), (4), and (5), respec-
tively; and 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00317
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
318 
(B) by inserting after paragraph (1) the 
following new paragraph (2): 
‘‘(2) The term ‘designated major subprogram’ 
means a major subprogram of a major defense ac-
quisition 
program 
designated 
under 
section 
2430a(a)(1) of this title.’’. 
(d) 
CONFORMING
AMENDMENTS
TO
SECTION 
2399.—Subsection (a) of section 2399 of such title is 
amended to read as follows: 
‘‘(a) CONDITION FOR PROCEEDING BEYOND LOW- 
RATE INITIAL PRODUCTION.—(1) The Secretary of De-
fense shall provide that a covered major defense acquisi-
tion program or a covered designated major subprogram 
may not proceed beyond low-rate initial production until 
initial operational test and evaluation of the program or 
subprogram is completed. 
‘‘(2) In this subsection: 
‘‘(A) The term ‘covered major defense acquisi-
tion program’ means a major defense acquisition 
program that involves the acquisition of a weapon 
system that is a major system within the meaning 
of that term in section 2302(5) of this title. 
‘‘(B) The term ‘covered designated major sub-
program’ means a major subprogram designated 
under section 2430a(a)(1) of this title that is a 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00318
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
319 
major subprogram of a covered major defense acqui-
sition program.’’. 
(e) 
CONFORMING
AMENDMENTS
TO
SECTION 
2434.—Section 2434(a) of such title is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘The Secretary of 
Defense’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) The provisions of this section shall apply to any 
major subprogram of a major defense acquisition program 
(as designated under section 2430a(a)(1) of this title) in 
the same manner as those provisions apply to a major de-
fense acquisition program, and any reference in this sec-
tion to a program shall be treated as including such a sub-
program.’’. 
Subtitle C—Amendments to Gen-
eral 
Contracting 
Authorities, 
Procedures, and Limitations 
SEC. 821. PROVISIONS RELATING TO FIRE RESISTANT 
FIBER FOR PRODUCTION OF MILITARY UNI-
FORMS. 
(a) EXTENSION.—Section 829 of the National De-
fense Authorization Act for Fiscal Year 2008 (Public Law 
110–181; 122 Stat. 229; 10 U.S.C. 2533a note) is amend-
ed in subsection (f) by striking ‘‘on the date that is five 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00319
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
320 
years after the date of the enactment of this Act’’ and 
inserting ‘‘on January 1, 2015’’. 
(b) PROHIBITION ON SPECIFICATION IN SOLICITA-
TIONS.—No solicitation issued before January 1, 2015, by 
the Department of Defense may include a requirement 
that proposals submitted pursuant to such solicitation 
must include the use of fire resistant rayon fiber. 
(c) REPORT REQUIRED.— 
(1) IN GENERAL.—Not later than March 15, 
2011, the Comptroller General of the United States 
shall submit to the Committees on Armed Services 
of the Senate and the House of Representatives a 
report on the supply chain for fire resistant fiber for 
the production of military uniforms. 
(2) ELEMENTS.—The report required by para-
graph (1) shall include, at a minimum, an analysis 
of the following: 
(A) The current and anticipated sources of 
fire resistant rayon fiber for the production of 
military uniforms. 
(B) The extent to which fire resistant 
rayon fiber has unique properties that provide 
advantages for the production of military uni-
forms. 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00320
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
321 
(C) The extent to which the efficient pro-
curement of fire resistant rayon fiber for the 
production of military uniforms is impeded by 
existing statutory or regulatory requirements. 
(D) The actions the Department of De-
fense has taken to identify alternatives to fire 
resistant rayon fiber for the production of mili-
tary uniforms. 
(E) The extent to which such alternatives 
provide an adequate substitute for fire resistant 
rayon fiber for the production of military uni-
forms. 
(F) The impediments to the use of such al-
ternatives, and the actions the Department has 
taken to overcome such impediments. 
(G) The extent to which uncertainty re-
garding the future availability of fire resistant 
rayon fiber results in instability or inefficiency 
for elements of the United States textile indus-
try that use fire resistant rayon fiber, and the 
extent to which that instability or inefficiency 
results in less efficient business practices, im-
pedes investment and innovation, and thereby 
results or may result in higher costs, delayed 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00321
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
322 
delivery, or a lower quality of product delivered 
to the Government. 
(H) The extent to which any modifications 
to existing law or regulation may be necessary 
to ensure the efficient acquisition of fire resist-
ant fiber or alternative fire resistant products 
for the production of military uniforms. 
SEC. 822. REPEAL OF REQUIREMENT FOR CERTAIN PRO-
CUREMENTS FROM FIRMS IN THE SMALL 
ARMS PRODUCTION INDUSTRIAL BASE. 
(a) REPEAL.—Section 2473 of title 10, United States 
Code, is repealed. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 146 of such title is amended 
by striking the item relating to section 2473. 
SEC. 823. REVIEW OF REGULATORY DEFINITION RELATING 
TO PRODUCTION OF SPECIALTY METALS. 
(a) REVIEW REQUIRED.—The Secretary of Defense 
shall review the regulations specified in subsection (b) to 
ensure that the definition of the term ‘‘produce’’ in such 
regulations complies with the requirements of section 
2533b of title 10, United States Code. In carrying out 
the review, the Secretary shall seek public comment, con-
sider congressional intent, and revise the regulations as 
the Secretary considers necessary and appropriate. 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00322
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
323 
(b) REGULATIONS SPECIFIED.—The regulations re-
ferred to in subsection (a) are any portion of subpart 
252.2 of the defense supplement to the Federal Acquisi-
tion Regulation that includes a definition of the term 
‘‘produce’’ for purposes of implementing section 2533b of 
title 10, United States Code. 
(c) COMPLETION OF REVIEW.—The Secretary shall 
complete the review required by subsection (a) and any 
necessary and appropriate revisions to the defense supple-
ment to the Federal Acquisition Regulation not later than 
270 days after the date of the enactment of this Act. 
SEC. 824. GUIDANCE RELATING TO RIGHTS IN TECHNICAL 
DATA. 
(a) REVIEW OF GUIDANCE.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall review guidance issued by the military 
departments on the implementation of section 2320(e) of 
title 10, United States Code, to ensure that such guidance 
is consistent with the guidance issued by the Under Sec-
retary of Defense for Acquisition, Technology, and Logis-
tics and the requirements of this section. Such guidance 
shall be designed to ensure that the United States— 
(1) preserves the option of competition for con-
tracts for the production and sustainment of systems 
or subsystems that are developed exclusively with 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00323
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
324 
Federal funds as defined in accordance with the 
amendments made by this section; and 
(2) is not required to pay more than once for 
the same technical data. 
(b) RIGHTS IN TECHNICAL DATA.—Section 2320(a) 
of title 10, United States Code, is amended— 
(1) in paragraph (2)(F)(i)— 
(A) by redesignating subclauses (I) and 
(II) as subclauses (II) and (III), respectively; 
and 
(B) by inserting before subclause (II), as 
so redesignated, the following new subclause 
(I): 
‘‘(I) rights in technical data described 
in subparagraph (A) for which a use or re-
lease restriction has been erroneously as-
serted by a contractor or subcontractor;’’; 
and 
(2) in paragraph (3), by striking ‘‘for the pur-
poses of definitions under this paragraph’’ and in-
serting ‘‘for the purposes of paragraph (2)(B), but 
shall be considered to be Federal funds for the pur-
poses of paragraph (2)(A)’’. 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00324
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
325 
(c) VALIDATION OF PROPRIETARY DATA RESTRIC-
TIONS.—Section 2321(d)(2) of title 10, United States 
Code, is amended— 
(1) in subparagraph (A), by striking ‘‘A chal-
lenge’’ and inserting ‘‘Except as provided in sub-
paragraph (C), a challenge’’; and 
(2) by adding at the end the following new sub-
paragraph (C): 
‘‘(C) The limitation in this paragraph shall not apply 
to a case in which the Secretary finds that reasonable 
grounds exist to believe that a contractor or subcontractor 
has erroneously asserted a use or release restriction with 
regard 
to 
technical 
data 
described 
in 
section 
2320(a)(2)(A) of this title.’’. 
SEC. 825. EXTENSION OF SUNSET DATE FOR CERTAIN PRO-
TESTS OF TASK AND DELIVERY ORDER CON-
TRACTS. 
Paragraph (3) of section 2304c(e) of title 10, United 
States Code, is amended to read as follows: 
‘‘(3) Paragraph (1)(B) and paragraph (2) of this sub-
section shall not be in effect after September 30, 2016.’’. 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00325
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
326 
SEC. 826. INCLUSION OF OPTION AMOUNTS IN LIMITA-
TIONS ON AUTHORITY OF THE DEPARTMENT 
OF DEFENSE TO CARRY OUT CERTAIN PRO-
TOTYPE PROJECTS. 
Section 845 of the National Defense Authorization 
Act for Fiscal Year 1994 (10 U.S.C. 2371 note) is amend-
ed— 
(1) in subsection (a)(2)— 
(A) in subparagraph (A), by inserting ‘‘(in-
cluding all options)’’ after ‘‘not in excess of 
$100,000,000’’; and 
(B) in subparagraph (B), by inserting 
‘‘(including all options)’’ after ‘‘in excess of 
$100,000,000’’; and 
(2) in subsection (e)(3)(A), by inserting ‘‘(in-
cluding all options)’’ after ‘‘does not exceed 
$50,000,000’’. 
SEC. 827. PERMANENT AUTHORITY FOR DEFENSE ACQUISI-
TION CHALLENGE PROGRAM; PILOT EXPAN-
SION OF PROGRAM. 
(a) PERMANENT AUTHORITY.—Section 2359b of title 
10, United States Code, is amended— 
(1) by striking subsections (j) and (k); and 
(2) by redesignating subsection (l) as subsection 
(j). 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00326
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
327 
(b) PILOT PROGRAM.—Section 2359b of title 10, 
United States Code, as amended by subsection (a), is fur-
ther amended by adding at the end the following new sub-
section (k): 
‘‘(k) PILOT PROGRAM FOR PROGRAMS OTHER THAN 
MAJOR DEFENSE ACQUISITION PROGRAMS.— 
‘‘(1) IN
GENERAL.—The Under Secretary of 
Defense for Acquisition, Technology, and Logistics 
shall carry out a pilot program to expand the use of 
the authority provided in this section to provide op-
portunities for the introduction of innovative and 
cost-saving approaches to programs other than 
major defense acquisition programs through the sub-
mission, review, and implementation, where appro-
priate, of qualifying proposals. 
‘‘(2) QUALIFYING
PROPOSALS.—For purposes 
of this subsection, a qualifying proposal is an offer 
to supply a nondevelopmental item that— 
‘‘(A) is evaluated as achieving a level of 
performance that is at least equal to the level 
of performance of an item being procured under 
a covered acquisition program and as providing 
savings in excess of 15 percent after consid-
ering all costs to the Government of imple-
menting such proposal; or 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00327
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
328 
‘‘(B) is evaluated as achieving a level of 
performance that is significantly better than the 
level of performance of an item being procured 
under a covered acquisition program without 
any increase in cost to the Government. 
‘‘(3) REVIEW PROCEDURES.—The Under Sec-
retary shall adopt modifications as may be needed to 
the procedures applicable to the Challenge Program 
to provide for Department of Defense review of, and 
action on, qualifying proposals. Such procedures 
shall include, at a minimum, the issuance of a broad 
agency announcement inviting interested parties to 
submit qualifying proposals in areas of interest to 
the Department. 
‘‘(4) DEFINITIONS.—In this subsection: 
‘‘(A) NONDEVELOPMENTAL
ITEM.—The 
term ‘nondevelopmental item’ has the meaning 
given that term in section 4 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 
403). 
‘‘(B) COVERED ACQUISITION PROGRAM.— 
The term ‘covered acquisition program’ means 
any acquisition program of the Department of 
Defense other than a major defense acquisition 
program, but does not include any contract 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00328
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
329 
awarded under an exception to competitive ac-
quisition authorized by the Small Business Act 
(15 U.S.C. 631 et seq.) 
‘‘(C) 
LEVEL
OF
PERFORMANCE.—The 
term ‘level of performance’, with respect to a 
nondevelopmental item, means the extent to 
which the item demonstrates required item 
functional characteristics. 
‘‘(5) SUNSET.—The authority to carry out the 
pilot program under this subsection shall terminate 
on the date that is five years after the date of the 
enactment of this Act.’’. 
SEC. 828. ENERGY SAVINGS PERFORMANCE CONTRACTS. 
(a) COMPETITION REQUIREMENTS FOR TASK OR DE-
LIVERY ORDERS UNDER ENERGY SAVINGS PERFORM-
ANCE CONTRACTS.—Section 801 of the National Energy 
Conservation Policy Act (42 U.S.C. 8287) is amended by 
adding at the end the following: 
‘‘(c) TASK OR DELIVERY ORDERS.—(1) The head of 
a Federal agency may issue a task or delivery order under 
an energy savings performance contract by— 
‘‘(A) notifying all contractors that have received 
an award under such contract that the agency pro-
poses to discuss energy savings performance services 
for some or all of its facilities and, following a rea-
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00329
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
330 
sonable period of time to provide a proposal in re-
sponse to the notice, soliciting from such contractors 
the submission of expressions of interest in, and con-
tractor qualifications for, performing site surveys or 
investigations and feasibility designs and studies, 
and including in the notice summary information 
concerning energy use for any facilities that the 
agency has specific interest in including in such task 
or delivery order; 
‘‘(B) reviewing all expressions of interest and 
qualifications submitted pursuant to the notice 
under subparagraph (A); 
‘‘(C) selecting two or more contractors (from 
among those reviewed under subparagraph (B)) to 
conduct discussions concerning the contractors’ re-
spective qualifications to implement potential energy 
conservation measures, including— 
‘‘(i) requesting references and specific de-
tailed examples with respect to similar efforts 
and the resulting energy savings of such similar 
efforts; and 
‘‘(ii) requesting an explanation of how such 
similar efforts relate to the scope and content 
of the task or delivery order concerned; 
‘‘(D) selecting and authorizing— 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00330
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
331 
‘‘(i) more than one contractor (from 
among those selected under subparagraph (C)) 
to conduct site surveys, investigations, feasi-
bility designs and studies, or similar assess-
ments for the energy savings performance con-
tract services (or for discrete portions of such 
services), for the purpose of allowing each such 
contractor to submit a firm, fixed-price proposal 
to implement specific energy conservation meas-
ures; or 
‘‘(ii) one contractor (from among those se-
lected under subparagraph (C)) to conduct a 
site survey, investigation, feasibility design and 
study, or similar assessment for the purpose of 
allowing the contractor to submit a firm, fixed- 
price proposal to implement specific energy con-
servation measures; 
‘‘(E) providing a debriefing to any contractor 
not selected under subparagraph (D); 
‘‘(F) negotiating a task or delivery order for en-
ergy savings performance contracting services with 
the contractor or contractors selected under sub-
paragraph (D) based on the energy conservation 
measures identified; and 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00331
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
332 
‘‘(G) issuing a task or delivery order for energy 
savings performance contracting services to such 
contractor or contractors. 
‘‘(2) The issuance of a task or delivery order for en-
ergy savings performance contracting services pursuant to 
paragraph (1) is deemed to satisfy the task and delivery 
order competition requirements in section 2304c(d) of title 
10, United States Code, and section 303J(d) of the Fed-
eral Property and Administrative Services Act of 1949 (41 
U.S.C. 253j(d)). 
‘‘(3) The Secretary may issue guidance as necessary 
to agencies issuing task or delivery orders pursuant to 
paragraph (1).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) is inapplicable to task or delivery orders 
issued before the date of enactment of this Act. 
SEC. 829. DEFINITION OF MATERIALS CRITICAL TO NA-
TIONAL SECURITY. 
(a) DEFINITIONS.—Section 187 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new subsection: 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘materials critical to national se-
curity’ means materials— 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00332
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
333 
‘‘(A) upon which the production or 
sustainment of military equipment is depend-
ent; and 
‘‘(B) the supply of which could be re-
stricted by actions or events outside the control 
of the Government of the United States. 
‘‘(2) The term ‘military equipment’ means 
equipment used directly by the armed forces to carry 
out military operations. 
‘‘(3) The term ‘secure supply’, with respect to 
a material, means the availability of a source or 
sources for the material, including the full supply 
chain for the material and components containing 
the material.’’. 
(b) AMENDMENT RELATING TO DUTIES.—Subsection 
(b) of section 187 of such title is amended to read as fol-
lows: 
‘‘(b) DUTIES.—In addition to other matters assigned 
to it by the Secretary of Defense, the Board shall— 
‘‘(1) determine the need to provide a long term 
secure supply of materials designated as critical to 
national security to ensure that national defense 
needs are met; 
‘‘(2) analyze the risk associated with each mate-
rial designated as critical to national security and 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00333
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
334 
the effect on national defense that the nonavail-
ability of such material would have; 
‘‘(3) recommend a strategy to the President to 
ensure a secure supply of materials designated as 
critical to national security; 
‘‘(4) recommend such other strategies to the 
President as the Board considers appropriate to 
strengthen the industrial base with respect to mate-
rials critical to national security; and 
‘‘(5) publish not less frequently than once every 
two years in the Federal Register recommendations 
regarding materials critical to national security, in-
cluding a list of specialty metals, if any, rec-
ommended for addition to, or removal from, the defi-
nition of ‘specialty metal’ for purposes of section 
2533b of this title.’’. 
Subtitle D—Contractor Matters 
SEC. 831. OVERSIGHT AND ACCOUNTABILITY OF CONTRAC-
TORS 
PERFORMING 
PRIVATE 
SECURITY 
FUNCTIONS IN AREAS OF COMBAT OPER-
ATIONS. 
(a) ENHANCEMENT OF OVERSIGHT AND ACCOUNT-
ABILITY.—Section 862 of the National Defense Authoriza-
tion Act for Fiscal Year 2008 (Public Law 110–181; 10 
U.S.C. 2302 note) is amended— 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00334
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
335 
(1) in subsection (b)(2)— 
(A) in subparagraph (A), by striking 
‘‘comply with regulations’’ and inserting ‘‘en-
sure that the contractor and all employees of 
the contractor or any subcontractor who are re-
sponsible for performing private security func-
tions under such contract comply with regula-
tions’’; 
(B) in subparagraph (B)— 
(i) by striking ‘‘comply with’’ and all 
that follows through ‘‘in accordance with’’ 
and inserting ‘‘ensure that the contractor 
and all employees of the contractor or any 
subcontractor who are responsible for per-
forming private security functions under 
such contract comply with’’; and 
(ii) by striking ‘‘and’’ at the end; 
(C) in subparagraph (C), by striking the 
period at the end and inserting ‘‘; and’’; and 
(D) by adding at the end the following new 
subparagraph: 
‘‘(D) ensure that the contract clause is in-
cluded in subcontracts awarded to any subcon-
tractor at any tier who is responsible for per-
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00335
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
336 
forming private security functions under the 
contract.’’; 
(2) by redesignating subsections (c) and (d) as 
subsections (f) and (g), respectively; and 
(3) by inserting after subsection (b) the fol-
lowing new subsections: 
‘‘(c) OVERSIGHT.—It shall be the responsibility of the 
head of the contracting activity responsible for each cov-
ered contract to ensure that the contracting activity takes 
appropriate steps to assign sufficient oversight personnel 
to the contract to— 
‘‘(1) ensure that the contractor responsible for 
performing private security functions under such 
contract comply with the regulatory requirements 
prescribed pursuant to subsection (a) and the con-
tract requirements established pursuant to sub-
section (b); and 
‘‘(2) make the determinations required by sub-
section (d). 
‘‘(d) REMEDIES.—The failure of a contractor under 
a covered contract to comply with the requirements of the 
regulations prescribed under subsection (a) or the contract 
clause inserted in a covered contract pursuant to sub-
section (b), as determined by the contracting officer for 
the covered contract— 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00336
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS
337 
‘‘(1) shall be included in appropriate databases 
of past performance and considered in any responsi-
bility determination or evaluation of the past per-
formance of the contractor for the purpose of a con-
tract award decision, as provided in section 6(j) of 
the Office of Federal Procurement Policy Act (41 
U.S.C. 405(j)); 
‘‘(2) in the case of an award fee contract— 
‘‘(A) shall be considered in any evaluation 
of contract performance by the contractor for 
the relevant award fee period; and 
‘‘(B) may be a basis for reducing or deny-
ing award fees for such period, or for recov-
ering all or part of award fees previously paid 
for such period; and 
‘‘(3) in the case of a failure to comply that is 
severe, prolonged, or repeated— 
‘‘(A) shall be referred to the suspension or 
debarment official for the appropriate agency; 
and 
‘‘(B) may be a basis for suspension or de-
barment of the contractor. 
‘‘(e) RULE OF CONSTRUCTION.—The duty of a con-
tractor under a covered contract to comply with the re-
quirements of the regulations prescribed under subsection 
VerDate Mar 15 2010 
22:50 Dec 16, 2010
Jkt 099200
PO 00000
Frm 00337
Fmt 6652
Sfmt 6201
E:\BILLS\H6523.IH
H6523
mstockstill on DSKH9S0YB1PROD with BILLS