449 
(A) by redesignating subparagraph (E) as 
subparagraph (G); 
(B) by striking ‘‘and’’ at the end of sub-
paragraph (D); and 
(C) by inserting after subparagraph (D) 
the following new subparagraphs: 
‘‘(E) life-cycle sustainment planning has 
identified and evaluated relevant sustainment 
costs throughout development, production, oper-
ation, sustainment, and disposal of the pro-
gram, and any alternatives, and that such costs 
are reasonable and have been accurately esti-
mated; 
‘‘(F) the requirements for core logistics ca-
pabilities and associated sustaining workload 
for the program have been identified; and’’. 
(2) DEFINITION.—Subsection (g) of such sec-
tion is amended by striking paragraph (5) (relating 
to Key Decision Point B) and inserting the following 
new paragraph (5): 
‘‘(5) The term ‘core logistics capabilities’ means 
the core logistics capabilities identified under section 
2464(a) of this title.’’. 
(c) GUIDANCE.—Not later than 120 days after the 
date of the enactment of this Act, the Secretary of Defense
450 
shall issue guidance implementing the amendments made 
by subsections (a) and (b) in a manner that is consistent 
across the Department of Defense. 
(d) ELIMINATION OF REFERENCES TO KEY DECI-
SION POINTS A AND B.— 
(1) AMENDMENTS TO SECTION 2366A.—Section 
2366a of title 10, United States Code, is amended— 
(A) in the section heading, by striking ‘‘or 
Key Decision Point’’; 
(B) in subsection (a), in the matter pre-
ceding paragraph (1), by striking ‘‘, or Key De-
cision Point A approval in the case of a space 
program,’’ and by striking ‘‘, or Key Decision 
Point B approval in the case of a space pro-
gram,’’; and 
(C) in subsection (b)— 
(i) in paragraph (1), by striking ‘‘(or 
Key Decision Point A approval in the case 
of a space program)’’; and 
(ii) in paragraph (2)(C)(ii), by strik-
ing ‘‘, or Key Decision Point A approval in 
the case of a space program,’’. 
(2) AMENDMENTS TO SECTION 2366B.—Section 
2366b of such title is amended—
451 
(A) in the section heading, by striking ‘‘or 
Key Decision Point B’’; 
(B) in subsection (a), in the matter pre-
ceding paragraph (1), by striking ‘‘, or Key De-
cision Point B approval in the case of a space 
program,’’; and 
(C) in subsections (b)(2) and (d)(1), by 
striking ‘‘(or Key Decision Point B approval in 
the case of a space program)’’ each place it ap-
pears. 
(3) AMENDMENTS TO TABLE OF SECTIONS.— 
The items relating to sections 2366a and 2366b in 
the table of sections at the beginning of chapter 139 
of such title are amended to read as follows: 
‘‘2366a. Major defense acquisition programs: certification required before Mile-
stone A approval. 
‘‘2366b. Major defense acquisition programs: certification required before Mile-
stone B approval.’’. 
(4) ADDITIONAL CONFORMING AMENDMENTS.— 
Section 2433a(c)(1) of such title is amended by 
striking ‘‘, or Key Decision Point approval in the 
case of a space program,’’ each place it appears in 
subparagraphs (B) and (C). 
SEC. 802. REVISION TO LAW RELATING TO DISCLOSURES 
TO LITIGATION SUPPORT CONTRACTORS. 
(a) IN GENERAL.—
452 
(1) REVISED
AUTHORITY
TO
COVER
DISCLO-
SURES UNDER LITIGATION SUPPORT CONTRACTS.— 
Chapter 3 of title 10, United States Code, is amend-
ed by inserting after section 129c the following new 
section: 
‘‘§ 129d. Disclosure to litigation support contractors 
‘‘(a) DISCLOSURE AUTHORITY.—An officer or em-
ployee of the Department of Defense may disclose sen-
sitive information to a litigation support contractor if— 
‘‘(1) the disclosure is for the sole purpose of 
providing litigation support to the Government in 
the form of administrative, technical, or professional 
services during or in anticipation of litigation; and 
‘‘(2) under a contract with the Government, the 
litigation support contractor agrees to and acknowl-
edges— 
‘‘(A) that sensitive information furnished 
will be accessed and used only for the purposes 
stated in the relevant contract; 
‘‘(B) that the contractor will take all pre-
cautions necessary to prevent disclosure of the 
sensitive information provided to the contractor; 
‘‘(C) that such sensitive information pro-
vided to the contractor under the authority of 
this section shall not be used by the contractor
453 
to compete against a third party for Govern-
ment or non-Government contracts; and 
‘‘(D) that the violation of subparagraph 
(A), (B), or (C) is a basis for the Government 
to terminate the litigation support contract of 
the contractor. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) The term ‘litigation support contractor’ 
means a contractor (including an expert or technical 
consultant) under contract with the Department of 
Defense to provide litigation support. 
‘‘(2) The term ‘sensitive information’ means 
confidential commercial, financial, or proprietary in-
formation, technical data, or other privileged infor-
mation.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 129c 
the following new item: 
‘‘129d. Disclosure to litigation support contractors.’’. 
(b) REPEAL OF SUPERSEDED PROVISIONS ENACTED 
IN PUBLIC LAW 111–383.—Section 2320 of such title is 
amended— 
(1) in subsection (c)(2)— 
(A) by striking ‘‘subsection (a)’’ and all 
that follows through ‘‘a covered Government’’
454 
and inserting ‘‘subsection (a), allowing a cov-
ered Government’’; and 
(B) by striking subparagraph (B); and 
(2) by striking subsection (g). 
SEC. 803. EXTENSION OF APPLICABILITY OF THE SENIOR 
EXECUTIVE 
BENCHMARK 
COMPENSATION 
AMOUNT FOR PURPOSES OF ALLOWABLE 
COST LIMITATIONS UNDER DEFENSE CON-
TRACTS. 
(a) CERTAIN
COMPENSATION
NOT
ALLOWABLE 
UNDER DEFENSE CONTRACTS.—Subsection (e)(1)(P) of 
section 2324 of title 10, United States Code, is amended 
by striking ‘‘senior executives of contractors’’ and insert-
ing ‘‘any individual performing under the covered con-
tract’’. 
(b) CONFORMING AMENDMENT.—Subsection (l) of 
such section is amended by striking paragraph (5). 
(c) EFFECTIVE DATE.—The amendments made by 
this section— 
(1) shall be implemented in the Federal Acqui-
sition Regulation within 180 days after the date of 
the enactment of this Act; and 
(2) shall apply with respect to costs of com-
pensation incurred after January 1, 2012, under
455 
contracts entered into before, on, or after the date 
of the enactment of this Act. 
SEC. 804. SUPPLIER RISK MANAGEMENT. 
(a) SUPPLIER RISK MANAGEMENT.—In order to re-
duce waste, fraud, and abuse and ensure that the Depart-
ment of Defense awards contracts to responsible suppliers, 
the Secretary of Defense shall manage supplier risk in ac-
cordance with this section and with the requirements of 
section 8(b)(7) of the Small Business Act (15 U.S.C. 
637(b)(7)). 
(b) EVALUATION
OF
SUPPLIER
RISK
BEFORE 
AWARD OF CONTRACT.—The Secretary shall direct con-
tracting personnel to use a business credit reporting bu-
reau (or such other objective source of business informa-
tion as the Secretary considers appropriate) to evaluate 
supplier risk on all contract actions. 
(c) IDENTIFICATION AND TRACKING OF SUPPLIERS 
AFTER AWARD OF CONTRACT.—The Secretary shall en-
sure that existing suppliers, including subcontractors and 
sources of supply, are identified and tracked. In imple-
menting this subsection, the Secretary shall use an auto-
mated commercial-off-the-shelf product to identify sup-
pliers by location and to monitor suppliers for events that 
may affect supplier performance, including debarments 
and suspensions, mergers and acquisitions, bankruptcy fil-
456 
ings, criminal proceedings against a person or company, 
financial changes, or deterioration of a company. 
SEC. 805. EXTENSION OF AVAILABILITY OF FUNDS IN THE 
DEFENSE ACQUISITION WORKFORCE DEVEL-
OPMENT FUND. 
(a) 
AVAILABILITY.—Paragraph 
(6) 
of 
section 
1705(e) of title 10, United States Code, is amended to 
read as follows: 
‘‘(6) DURATION
OF
AVAILABILITY.—Amounts 
credited to the Fund in accordance with subsection 
(d)(2), transferred to the Fund pursuant to sub-
section (d)(3), appropriated to the Fund, or depos-
ited to the Fund shall remain available for obligation 
in the fiscal year for which credited, transferred, ap-
propriated, or deposited and the two succeeding fis-
cal years.’’. 
(b) EFFECTIVE DATE.—Paragraph (6) of such sec-
tion, as amended by subsection (a), shall not apply to 
funds directly appropriated to the Fund before the date 
of the enactment of this Act. 
SEC. 806. DEFENSE CONTRACT AUDIT AGENCY ANNUAL RE-
PORT. 
(a) DEFENSE CONTRACT AUDIT AGENCY ANNUAL 
REPORT.—Chapter 137 of title 10, United States Code,
457 
is amended by inserting after section 2313 the following 
new section: 
‘‘§ 2313a. Defense Contract Audit Agency: annual re-
port 
‘‘(a) REQUIRED REPORT.—The Director of the De-
fense Contract Audit Agency shall prepare an annual re-
port of the activities of the Agency during the previous 
fiscal year. The report shall include, at a minimum— 
‘‘(1) a description of significant problems, 
abuses, and deficiencies found during the conduct of 
contractor audits; 
‘‘(2) a description of the recommendations for 
corrective action made during the reporting period 
with respect to significant problems, abuses, or defi-
ciencies identified pursuant to paragraph (1); 
‘‘(3) a summary of each particularly significant 
audit; 
‘‘(4) statistical tables showing— 
‘‘(A) the total number of audit reports 
completed and pending; 
‘‘(B) the priority given to each type of 
audit; 
‘‘(C) the length of time taken for each type 
of audit; and
458 
‘‘(D) the total dollar value of questioned 
costs (including a separate category for the dol-
lar value of unsupported costs); 
‘‘(5) a summary of the pending audits, along 
with a rationale for why each pending audit is not 
yet completed; and 
‘‘(6) a summary of any recommendations of ac-
tions or resources needed to improve the audit proc-
ess. 
‘‘(b) SUBMISSION OF ANNUAL REPORT.—Not later 
than March 30 of each year, the Director shall submit to 
the congressional defense committees the report required 
by subsection (a). 
‘‘(c) PUBLIC AVAILABILITY.—Not later than 60 days 
after the submission of an annual report to the congres-
sional defense committees under subsection (b), the Direc-
tor shall make the report available on the publicly avail-
able website of the Agency or such other publicly available 
website as the Director considers appropriate.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 2313 the following new 
item: 
‘‘2313a. Defense Contract Audit Agency: annual report.’’.
459 
Subtitle B—Amendments to Gen-
eral 
Contracting 
Authorities, 
Procedures, and Limitations 
SEC. 811. CALCULATION OF TIME PERIOD RELATING TO RE-
PORT ON CRITICAL CHANGES IN MAJOR 
AUTOMATED INFORMATION SYSTEMS. 
Section 2445c(d)(2)(A) of title 10, United States 
Code, is amended by inserting before the semicolon at the 
end the following: ‘‘after contract award (excluding any 
time during which the contract award is subject to a bid 
protest)’’. 
SEC. 812. CHANGE IN DEADLINE FOR SUBMISSION OF SE-
LECTED ACQUISITION REPORTS FROM 60 TO 
45 DAYS. 
Section 2432(f) of title 10, United States Code, is 
amended by striking ‘‘60’’ and inserting ‘‘45’’. 
SEC. 813. EXTENSION OF SUNSET DATE FOR CERTAIN PRO-
TESTS OF TASK AND DELIVER ORDER CON-
TRACTS. 
Paragraph (3) of section 4106(f) of title 41, United 
States Code, is amended to read as follows: 
‘‘(3) EFFECTIVE
PERIOD.—Paragraph (1)(B) 
and paragraph (2) of this subsection shall not be in 
effect after September 30, 2016.’’.
460 
SEC. 814. CLARIFICATION OF DEPARTMENT OF DEFENSE 
AUTHORITY 
TO 
PURCHASE 
RIGHT-HAND 
DRIVE PASSENGER SEDANS. 
Section 2253(a)(2) of title 10, United States Code, 
is amended by striking ‘‘vehicles’’ and inserting ‘‘pas-
senger sedans’’. 
SEC. 815. AMENDMENT RELATING TO BUYING TENTS, TAR-
PAULINS, 
OR 
COVERS 
FROM 
AMERICAN 
SOURCES. 
Section 2533a(b)(1)(C) of title 10, United States 
Code, is amended by inserting ‘‘(and the materials and 
components thereof)’’ after ‘‘tents, tarpaulins, or covers’’. 
SEC. 816. PARA-ARAMID FIBERS AND YARNS. 
(a) REPEAL OF FOREIGN SUPPLIER EXEMPTION.— 
Section 807 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105– 
261; 112 Stat. 2084) is repealed. 
(b) PROHIBITION ON SPECIFICATION IN SOLICITA-
TIONS.—No solicitation issued by the Department of De-
fense may include a requirement that proposals submitted 
pursuant to such solicitation must include the use of para- 
aramid fibers and yarns.
461 
SEC. 817. REPEAL OF SUNSET OF AUTHORITY TO PROCURE 
FIRE RESISTANT RAYON FIBER FROM FOR-
EIGN SOURCES FOR THE PRODUCTION OF 
UNIFORMS. 
Subsection (f) of section 829 of the National Defense 
Authorization Act for Fiscal Year 2008 (Public Law 110– 
181; 122 Stat. 229; 10 U.S.C. 2533a note) is repealed. 
Subtitle C—Provisions Relating to 
Contracts in Support of Contin-
gency Operations in Iraq or Af-
ghanistan 
SEC. 821. RESTRICTIONS ON AWARDING CONTRACTS IN 
SUPPORT OF CONTINGENCY OPERATIONS IN 
IRAQ OR AFGHANISTAN TO ADVERSE ENTI-
TIES. 
(a) PROHIBITION ON CONTRACTS WITH ADVERSE 
ENTITIES.—Effective on the date occurring 60 days after 
the date of the enactment of this Act, the Secretary of 
Defense may not award a contract in support of a contin-
gency operation in Iraq or Afghanistan to an adverse enti-
ty. 
(b) VOIDING CONTRACTS WITH ADVERSE ENTI-
TIES.—With respect to any contract in effect before, on, 
or after the effective date of the prohibition in subsection 
(a), if the Secretary of Defense determines under sub-
section (c) that the contract, or any subcontract under the
462 
contract, is being performed by an adverse entity, the Sec-
retary may, in accordance with applicable law— 
(1) void the contract; or 
(2) require the prime contractor to void any 
such subcontract. 
(c) DETERMINATION OF ADVERSE ENTITY.— 
(1) IN GENERAL.—For purposes of this section, 
an adverse entity is any foreign entity or foreign in-
dividual that the Secretary of Defense, acting 
through the Commander of the United States Cen-
tral Command, determines, based on credible evi-
dence— 
(A) is directly engaged in hostilities or is 
substantially supporting forces that are engaged 
in hostilities against the United States or its co-
alition partners in a contingency operation in 
Iraq or Afghanistan; and 
(B) is performing on a contract awarded, 
or task or delivery order issued, by or on behalf 
of the Department of Defense as a contractor, 
a subcontractor, or an employee of a contractor 
or subcontractor. 
(2) NOTIFICATION.—Upon a determination by 
the Commander that an individual or entity is an 
adverse entity, the Commander shall notify in writ-
463 
ing the head of the contracting activity responsible 
for the contingency operation concerned. 
(3) REVIEW.—Not later than 15 days after re-
ceipt of a notification under paragraph (2), the head 
of the contracting activity shall— 
(A) review the contracts concerned, and 
any subcontracts under such contracts, awarded 
under the authority of the head of the con-
tracting activity to verify whether the adverse 
entity is currently performing under any such 
contract or subcontract; and 
(B) notify the Commander in writing of 
any contracts or subcontracts that the head 
verifies are being performed by the adverse en-
tity. 
(d) GUIDANCE.—Not later than 30 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall issue guidance to implement this section. The guid-
ance shall include, at a minimum, the following: 
(1) A requirement for each contract awarded in 
support of a contingency operation in Iraq or Af-
ghanistan awarded after the date of the enactment 
of this Act to include a clause pertaining to the au-
thority provided under subsection (b).
464 
(2) Criteria by which such authority will be ap-
plied, including criteria to ensure compliance with 
applicable laws. 
SEC. 822. AUTHORITY TO USE HIGHER THRESHOLDS FOR 
PROCUREMENTS IN SUPPORT OF CONTIN-
GENCY OPERATIONS. 
With respect to a procurement of property or services 
by or for the Department of Defense that the Secretary 
of Defense determines are to be used in support of a con-
tingency operation in Iraq or Afghanistan, regardless of 
whether the award of a contract, or the making of a pur-
chase, for the procurement is inside or outside the United 
States— 
(1) the simplified acquisition threshold is 
deemed to be $1,000,000; and 
(2) the micro-purchase threshold is deemed to 
be $25,000. 
SEC. 823. AUTHORITY TO EXAMINE RECORDS OF FOREIGN 
CONTRACTORS PERFORMING CONTRACTS IN 
SUPPORT OF CONTINGENCY OPERATIONS IN 
IRAQ OR AFGHANISTAN. 
(a) AUTHORITY.—Except as provided in subsection 
(b), the Secretary of Defense may examine the records of 
a foreign contractor performing a contract in support of 
a contingency operation in Iraq or Afghanistan.
465 
(b) EXCEPTION.—Subsection (a) does not apply to a 
foreign contractor that is a foreign government or agency 
thereof or that is precluded by applicable laws from mak-
ing its records available for examination. 
(c) GUIDANCE.—Not later than 30 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall issue guidance to implement this section. 
SEC. 824. DEFINITIONS. 
In this subtitle: 
(1) CONTRACT IN SUPPORT OF A CONTINGENCY 
OPERATION IN IRAQ OR AFGHANISTAN.—The term 
‘‘contract in support of a contingency operation in 
Iraq or Afghanistan’’ means a contract awarded by 
the Secretary of Defense for the procurement of 
property or services to be used outside the United 
States in support of a contingency operation in Iraq 
or Afghanistan. 
(2) 
CONTINGENCY
OPERATION.—The 
term 
‘‘contingency operation’’ has the meaning provided 
by section 101(a)(13) of title 10, United States 
Code. 
(3) RECORDS.—The term ‘‘records’’ has the 
meaning provided by section 2313(l) of title 10, 
United States Code.
466 
(4) FOREIGN CONTRACTOR.—The term ‘‘foreign 
contractor’’ means a contractor or subcontractor or-
ganized or existing under the laws of a country other 
than the United States. 
SEC. 825. QUALITY ASSURANCE SURVEILLANCE PLAN FOR 
SECURITY CONTRACTORS OPERATING IN AF-
GHANISTAN AND IN SUPPORT OF OTHER 
CONTINGENCY OPERATIONS. 
(a) IN GENERAL.—The Secretary of Defense shall es-
tablish a plan to be known as a ‘‘Quality Assurance Sur-
veillance Plan’’ setting standards that must be incor-
porated in Department of Defense oversight plans gov-
erning all security contractors operating in Afghanistan, 
and other future contingency operations, under a contract 
or subcontract funded by the Department of Defense. The 
Secretary shall designate a single appropriate official sta-
tioned in the country of operations to review each security 
contract or subcontract involving security contractors 
funded by the Department of Defense for compliance with 
the Quality Assurance Surveillance Plan. Such official 
shall certify that the official has reviewed the oversight 
plan for that contract, that the oversight plan is appro-
priate for that contract, that there is an appropriate num-
ber of appropriately trained personnel available to oversee 
that contract, and confirm that any and all licenses and
467 
permits required by the security contractor and its em-
ployees have been reviewed and verified as current and au-
thentic. 
(b) DEADLINE FOR IMPLEMENTATION.—These re-
quirements under subsection (a) shall be implemented by 
not later than six months after the date of enactment of 
this Act. 
(c) COMPTROLLER
GENERAL
ASSESSMENT.—The 
Comptroller General of the United States shall conduct 
an assessment the Department of Defense’s compliance 
with this section and, not later than 6 months after the 
requirements of this section are implemented pursuant to 
subsection (b), shall submit to Congress a report on such 
assessment. 
SEC. 826. COMPETITION AND REVIEW OF CONTRACTS FOR 
PROPERTY OR SERVICES IN SUPPORT OF A 
CONTINGENCY OPERATION. 
(a) CONTRACTING GOALS.—Not later than 90 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall— 
(1) establish goals for competition in contracts 
awarded by the Secretary of Defense for the pro-
curement of property or services to be used outside 
the United States in support of a contingency oper-
ation; and
468 
(2) shall develop processes by which to measure 
and monitor such competition, including in task- 
order categories for services, construction, and sup-
plies. 
(b) ANNUAL REVIEW OF CERTAIN CONTRACTS.— 
(1) REVIEW REQUIRED.—For each year the Lo-
gistics Civil Augmentation Program contract, or 
other similar omnibus contract awarded by the Sec-
retary of Defense for the procurement of property or 
services to be used outside the United States in sup-
port of a contingency operation, is in force, the Sec-
retary shall require a competition advocate of the 
Department of Defense to conduct an annual review 
of each such contract. 
(2) COMPETITIVE AWARDS.—Based on the find-
ings of a review conducted under paragraph (1), the 
Secretary shall identify subcontracts that may rea-
sonably be treated as prime contract for purpose of 
a competition and take such steps as may be nec-
essary to establish a competitive award basis for 
such a contract in a timely manner. 
(c) ANNUAL REPORT ON CONTRACTING IN IRAQ AND 
AFGHANISTAN.— Section 863(a)(2) of the National De-
fense Authorization Act for Fiscal Year 2008 (110–181; 
10 U.S.C. 2302 note) is amended—
469 
(1) 
by 
redesignating 
subparagraphs 
(F) 
through (H) as subparagraphs (H) through (J), re-
spectively; and 
(2) by inserting after subparagraph (E) the fol-
lowing new subparagraphs: 
‘‘(F) Percentage of contracts awarded on a 
competitive basis as compared to established 
goals for competition in contingency contracting 
actions. 
‘‘(G) Justification for any non-competi-
tively awarded contingency contracts that are 
not otherwise deemed to be not suitable for 
competition’’. 
Subtitle D—Defense Industrial 
Base Matters 
SEC. 831. ASSESSMENT OF THE DEFENSE INDUSTRIAL BASE 
PILOT PROGRAM. 
(a) REPORT.—Not later than March 1, 2012, the 
Secretary of Defense shall submit to the congressional de-
fense committees a report on the defense industrial base 
pilot program of the Department of Defense. 
(b) ELEMENTS.—The report required by subsection 
(a) shall include each of the following:
470 
(1) A quantitative and qualitative analysis of 
the effectiveness of the defense industrial base pilot 
program. 
(2) An assessment of the legal, policy, or regu-
latory challenges associated with effectively exe-
cuting the pilot program. 
(3) Recommendations for changes to the legal, 
policy, or regulatory framework for the pilot pro-
gram to make it more effective. 
(4) A description of any plans to expand the 
pilot program, including to other sectors beyond the 
defense industrial base. 
(5) An assessment of the potential legal, policy, 
or regulatory challenges associated with expanding 
the pilot program. 
(6) Any other matters the Secretary considers 
appropriate. 
(c) FORM.—The report required under this section 
shall be submitted in unclassified form, but may include 
a classified annex. 
SEC. 832. DEPARTMENT OF DEFENSE ASSESSMENT OF IN-
DUSTRIAL BASE FOR POTENTIAL SHORT-
FALLS. 
(a) ASSESSMENT REQUIRED.—The Secretary of De-
fense shall undertake an assessment of the current and
471 
long-term availability within the United States industrial 
base of critical equipment, components, subcomponents, 
and materials needed to support short or prolonged con-
ventional conflicts. In carrying out the assessment, the 
Secretary shall— 
(1) identify items that the Secretary determines 
are critical to military readiness, including key com-
ponents, subcomponents, and materials; 
(2) perform a risk assessment of the supply 
chain for items identified under paragraph (1) and 
an evaluation of the extent to which— 
(A) the supply chain for such items could 
be disrupted by a first strike on the United 
States; and 
(B) the industrial base obtains such items 
from foreign sources; and 
(3) develop mitigation strategies to address any 
gaps and vulnerabilities in the ability of the Depart-
ment to respond to potential contingencies identified 
in operational plans of the combatant commanders if 
the sources that provide items identified under para-
graph (1) should become unavailable. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense
472 
shall submit to Congress a report containing the findings 
of the assessment required under subsection (a). 
(c) GAO REVIEW.—The Comptroller General of the 
United States shall review the assessment required under 
subsection (a) and the report required under subsection 
(b) and submit to Congress a report on such review. The 
review shall include an assessment of— 
(1) the completeness of the report; 
(2) the reasonableness of the methodology used 
to develop the report; 
(3) the conclusions contained in the report; and 
(4) the extent to which the Department has im-
plemented a Department-wide framework to identify 
and address gaps and vulnerabilities in the supply 
chain. 
SEC. 833. COMPTROLLER GENERAL ASSESSMENT OF GOV-
ERNMENT COMPETITION IN THE DEPART-
MENT OF DEFENSE INDUSTRIAL BASE. 
(a) COMPTROLLER
GENERAL
ASSESSMENT
RE-
QUIRED.—The Comptroller General of the United States 
shall carry out an assessment of the effect of Government 
mandated and supported competition in the Department 
of Defense industrial base that includes, at a minimum, 
the following:
473 
(1) An examination of the aerospace propulsion 
business volume that the Department generates and 
whether such volume facilitates or supports multiple 
levels of competitors. 
(2) An examination of the factors necessary to 
achieve cost effectiveness in initiating and sup-
porting a competitive industrial base. 
(3) An examination of the actual costs of devel-
oping a second source for previous private sector 
provided materials versus savings provided through 
such competitions. 
(4) The advantages and disadvantages of other 
potential options or methods as well as any short-
falls in the current processes. 
(5) Recommendations for any administrative or 
legislative action that the Comptroller General 
deems appropriate in the context of the assessment. 
(b) REPORT.—Not later than April 1, 2012, the 
Comptroller General shall submit to the Chairmen and 
ranking members of the Committees on Armed Services 
of the Senate and the House of Representatives a report 
on the findings and recommendations, as appropriate, of 
the Comptroller General with respect to the assessment 
conducted. The Comptroller General shall receive com-
474 
ments from the Secretary of Defense and others, as appro-
priate. 
SEC. 834. REPORT ON IMPACT OF FOREIGN BOYCOTTS ON 
THE DEFENSE INDUSTRIAL BASE. 
(a) IN GENERAL.—Not later than February 1, 2012, 
the Comptroller General of the United States shall submit 
to the appropriate congressional committees a report set-
ting forth an assessment of the impact of foreign boycotts 
on the defense industrial base. 
(b) ELEMENTS.—The report required by subsection 
(a) shall include— 
(1) a summary of foreign boycotts that posed a 
material risk to the defense industrial base from 
January 2008 to the date of enactment of this Act; 
(2) the apparent objectives of each such boy-
cott; 
(3) an assessment of harm to the defense indus-
trial base as a result of each such boycott; 
(4) an assessment of the sufficiency of Depart-
ment of Defense and Department of State efforts to 
mitigate the material risks of any such boycott to 
the defense industrial base; and 
(5) recommendations of the Comptroller Gen-
eral to reduce the material risks of foreign boycotts 
to the defense industrial base, including rec-
475 
ommendations for changes to legislation, regulation, 
policy, or procedures. 
(c) CONFIDENTIALITY.—The Comptroller General 
shall not publicly disclose the names of any person, organi-
zation, or entity involved in or affected by any foreign boy-
cott identified in the report required under subsection (a) 
without the express written approval of the person, organi-
zation, or entity concerned. 
(d) DEFINITIONS.—In this section: 
(1) FOREIGN
BOYCOTT.—The term ‘‘foreign 
boycott’’ means any policy or practice adopted by a 
foreign government or foreign business enterprise in-
tended to directly penalize, disadvantage, or harm 
any contractor or subcontractor of the Department 
of Defense, or otherwise dissociate the foreign gov-
ernment or foreign business enterprise from such a 
contractor or subcontractor on account of the provi-
sion by that contractor or subcontractor of any prod-
uct or service to the Department. 
(2) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the congressional defense committees; 
and
476 
(B) the Committee on Foreign Affairs of 
the House of Representatives and the Com-
mittee on Foreign Relations of the Senate. 
SEC. 835. RARE EARTH MATERIAL INVENTORY PLAN. 
(a) REQUIREMENT.—Not later than 180 days after 
the date of the enactment of this Act, the Administrator 
of the Defense Logistics Agency Strategic Materials shall 
submit to the Secretary of Defense a plan to establish an 
inventory of rare earth materials necessary to ensure the 
long-term availability of such rare earth materials, as 
identified by the report required by section 843 of the Ike 
Skelton National Defense Authorization Act for Fiscal 
Year 2011 (Public Law 111–383; 124 Stat. 4282) and 
as otherwise determined to be necessary. The plan shall— 
(1) identify and describe the steps necessary to 
create an inventory of rare earth materials, includ-
ing oxides, metals, alloys, and magnets, to support 
national defense requirements and ensure reliable 
sources of such materials for defense purposes; 
(2) provide a detailed cost-benefit analysis of 
creating such an inventory in accordance with Office 
of Management and Budget Circular A–94; 
(3) provide an analysis of the potential market 
effects, including effects on the pricing and commer-
477 
cial availability of such rare earth materials, associ-
ated with creating such an inventory; 
(4) identify and describe the mechanisms avail-
able to the Administrator to make such an inventory 
accessible, including by purchase, to entities requir-
ing such rare earth materials to support national de-
fense requirements, including producers of end items 
containing rare earth materials; 
(5) provide a detailed explanation of the ability 
of the Administrator to authorize the sale of excess 
materials to support a Rare Earth Material Stock-
pile Inventory Program; 
(6) analyze any potential requirements to 
amend or revise the Defense Logistics Agency Stra-
tegic Materials Annual Material Plan for Fiscal Year 
2012 and subsequent years to reflect an inventory of 
rare earth materials to support national defense re-
quirements; 
(7) identify and describe the steps necessary to 
develop or maintain a competitive, multi-source sup-
ply-chain to avoid reliance on a single source of sup-
ply; 
(8) identify and describe supply sources consid-
ered by the Administrator to be reliable, including 
an analysis of the capabilities of such sources to
478 
produce such materials in forms required for mili-
tary applications in the next five years, as well as 
the security of upstream supply for these sources of 
material; and 
(9) include such other considerations and rec-
ommendations as necessary to support the establish-
ment of such inventory. 
(b) DETERMINATION.— 
(1) IN GENERAL.—Not later than 90 days after 
the date on which the plan is submitted under sub-
section (a), the Secretary of Defense shall determine 
whether to execute the plan described in subsection 
(a). 
(2) SUBMITTAL.—The Secretary shall submit to 
the congressional defense committees— 
(A) the plan under subsection (a); and 
(B) a notice of the determination under 
paragraph (1). 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘rare earth’’ means any of the 
following chemical elements in any of their physical 
forms or chemical combinations and alloys: 
(A) Scandium. 
(B) Yttrium. 
(C) Lanthanum.
479 
(D) Cerium. 
(E) Praseodymium. 
(F) Neodymium. 
(G) Promethium. 
(H) Samarium. 
(I) Europium. 
(J) Gadolinium. 
(K) Terbium. 
(L) Dysprosium. 
(M) Holmium. 
(N) Erbium. 
(O) Thulium. 
(P) Ytterbium. 
(Q) Lutetium. 
(2) The term ‘‘capability’’ means the required 
facilities, manpower, technological knowhow, and in-
tellectual property necessary for the efficient and ef-
fective production of rare earth materials. 
Subtitle E—Other Matters 
SEC. 841. MISCELLANEOUS AMENDMENTS TO PUBLIC LAW 
111–383 RELATING TO ACQUISITION. 
(a) AMENDMENTS TO CAPABILITIES COVERED BY 
ACQUISITION PROCESS FOR RAPID FIELDING.—Section 
804(b)(3) of the Ike Skelton National Defense Authoriza-
480 
tion Act for Fiscal Year 2011 (Public Law 111–383; 124 
Stat. 4256; 10 U.S.C. 2302 note) is amended— 
(1) by inserting ‘‘and’’ at the end of subpara-
graph (B); 
(2) by striking ‘‘; and’’ at the end of subpara-
graph (C) and inserting a period; and 
(3) by striking subparagraph (D). 
(b) AMENDMENTS TO ELEMENTS OF GUIDANCE ON 
MANAGEMENT OF MANUFACTURING RISK IN MAJOR DE-
FENSE ACQUISITION PROGRAMS.—Section 812(b) of such 
Act (Public Law 111–383; 124 Stat. 4264; 10 U.S.C. 
2430) is amended— 
(1) by striking paragraph (1); and 
(2) by redesignating paragraphs (2), (3), (4), 
and (5) as paragraphs (1), (2), (3), and (4), respec-
tively. 
(c) AMENDMENTS TO DEFENSE RESEARCH AND DE-
VELOPMENT
RAPID
INNOVATION
PROGRAM.—Section 
1073 of such Act (Public Law 111–383; 124 Stat. 4366; 
10 U.S.C. 2359a note) is amended— 
(1) in subsection (a), by striking ‘‘shall’’ in the 
first sentence and inserting ‘‘may’’; and 
(2) in subsection (b), by amending the first sen-
tence to read as follows: ‘‘If the Secretary estab-
lishes a program under subsection (a), the Secretary
481 
shall issue guidelines for the operation of the pro-
gram.’’. 
SEC. 842. PROCUREMENT OF PHOTOVOLTAIC DEVICES. 
(a) REVISION
TO CONTRACTS DESCRIBED.—Sub-
section (b) of section 846 of the Ike Skelton National De-
fense Authorization Act for Fiscal Year 2011 (Public Law 
111–383; 124 Stat. 4285; 10 U.S.C. 2534 note) is amend-
ed by striking ‘‘For the purposes of this section,’’ and all 
that follows through the end and inserting the following: 
‘‘For the purposes of this section, the Department of De-
fense is deemed to own a photovoltaic device if the device 
is installed on Department of Defense property or in a 
facility owned or leased by or for the Department of De-
fense.’’. 
(b) REVISION
TO DEFINITION
OF PHOTOVOLTAIC 
DEVICES.—Subsection (c) of such section is amended by 
striking ‘‘means’’ and all that follows through the end and 
inserting the following: ‘‘means devices that convert light 
directly into electricity.’’.
482 
SEC. 843. CLARIFICATION OF JURISDICTION OF THE 
UNITED STATES DISTRICT COURTS TO HEAR 
BID PROTEST DISPUTES INVOLVING MARI-
TIME CONTRACTS. 
(a) EXCLUSIVE JURISDICTION.—Section 1491(b) of 
title 28, United States Code, is amended by adding at the 
end the following new paragraph: 
‘‘(6) Jurisdiction over any action described in 
paragraph (1) arising out of a maritime contract, or 
a solicitation for a proposed maritime contract, shall 
be governed by this section and shall not be subject 
to the jurisdiction of the district courts of the 
United States under the Suits in Admiralty Act 
(chapter 309 of title 46) or the Public Vessels Act 
(chapter 311 of title 46).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to any cause of action filed on 
or after the first day of the first month beginning more 
than 30 days after the date of the enactment of this Act. 
SEC. 844. EXEMPTION OF DEPARTMENT OF DEFENSE FROM 
ALTERNATIVE 
FUEL 
PROCUREMENT 
RE-
QUIREMENT. 
Section 526 of the Energy Independence and Security 
Act of 2007 (Public Law 110–140; 42 U.S.C. 17142) is 
amended by adding at the end the following: ‘‘This section 
shall not apply to the Department of Defense.’’.
483 
SEC. 845. PREFERENCE FOR POTENTIAL CONTRACTORS 
THAT CARRY OUT CERTAIN ACTIVITIES. 
In evaluating offers submitted in response to a solici-
tation for contracts, the Secretary of Defense shall provide 
a preference to any offeror that— 
(1) enhances undergraduate, graduate, and doc-
toral programs in science, technology, engineering 
and math (in this section referred to as ‘‘STEM’’ 
disciplines); 
(2) makes investments, such as programming 
and curriculum development, in STEM programs 
within elementary and secondary schools; 
(3) encourages employees to volunteer in Title 
I schools in order to enhance STEM education and 
programs; 
(4) makes personnel available to advise and as-
sist faculty at such colleges and universities in the 
performance of STEM research and disciplines crit-
ical to the functions of the Department of Defense; 
(5) establishes partnerships between the offeror 
and historically Black colleges and universities and 
minority institutions for the purpose of training stu-
dents in scientific disciplines; 
(6) awards scholarships and fellowships, and es-
tablishes cooperative work-education programs in 
scientific disciplines; or
484 
(7) conducts recruitment activities at histori-
cally black colleges and universities and other minor-
ity-serving institutions or offers internships or ap-
prenticeships. 
SEC. 846. REPORTS ON USE OF INDEMNIFICATION AGREE-
MENTS. 
(a) IN GENERAL.—Chapter 137 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 2335. Reports on use of indemnification agree-
ments 
‘‘(a) IN GENERAL.—Beginning October 1, 2011, not 
later than 90 days after the date on which any action de-
scribed in subsection (b)(1) occurs, the Secretary of De-
fense shall submit to the congressional defense committees 
and the Committees on the Budget of the House of Rep-
resentatives and the Senate a report on such action. 
‘‘(b) ACTION DESCRIBED.—(1) An action described 
in this paragraph is the Secretary of Defense— 
‘‘(A) entering into a contract that includes an 
indemnification agreement; or 
‘‘(B) modifying an existing indemnification 
agreement in any contract. 
‘‘(2) Paragraph (1) shall not apply to any contract 
awarded in accordance with—
485 
‘‘(A) section 2354 of this title; or 
‘‘(B) the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42 
U.S.C. 9601 et seq.). 
‘‘(c) MATTERS INCLUDED.—For each contract cov-
ered in a report under subsection (a), the report shall in-
clude— 
‘‘(1) the name of the contractor; 
‘‘(2) the actual cost or estimated potential cost 
involved; 
‘‘(3) a description of the items, property, or 
services for which the contract is awarded; and 
‘‘(4) a justification of the contract including the 
indemnification agreement. 
‘‘(d) NATIONAL SECURITY.—The Secretary may omit 
any information in a report under subsection (a) if the 
Secretary— 
‘‘(1) determines that the disclosure of such in-
formation is not in the national security interests of 
the United States; and 
‘‘(2) includes in the report a justification of the 
determination made under paragraph (1).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘2335. Reports on use of indemnification agreements.’’.
486 
SEC. 847. PROHIBITION ON DISCLOSURE OF POLITICAL 
CONTRIBUTIONS. 
(a) IN GENERAL.—Chapter 47 of title 41, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 4712. Prohibition on disclosure of political con-
tributions 
‘‘(a) PROHIBITION.—An executive agency may not re-
quire an entity submitting an offer for a Federal contract 
or otherwise participating in acquisition of property or 
services by the Federal Government to disclose any of the 
following information as a condition of submitting the 
offer or otherwise participating in such acquisition: 
‘‘(1) Any payment consisting of a contribution, 
expenditure, independent expenditure, or disburse-
ment for an electioneering communication that is 
made by the entity, its officers or directors, or any 
of its affiliates or subsidiaries to a candidate for 
election for Federal office or to a political com-
mittee, or that is otherwise made with respect to any 
election for Federal office. 
‘‘(2) Any disbursement of funds (other than a 
payment described in paragraph (1)) made by the 
entity, its officers or directors, or any of its affiliates 
or subsidiaries to any individual or entity with the 
intent or the reasonable expectation that the indi-