H. R. 5122—222
‘‘(2) The quality assurance program established under para-
graph (1) shall also include the following elements: 
‘‘(A) 
The 
types 
of 
healthcare 
providers 
conducting 
postdeployment health assessments. 
‘‘(B) The training received by such providers applicable 
to the conduct of such assessments, including training on 
assessments and referrals relating to mental health. 
‘‘(C) The guidance available to such providers on how to 
apply the clinical practice guidelines developed under sub-
section (e)(1) in determining whether to make a referral for 
further evaluation of a member of the armed forces relating 
to mental health. 
‘‘(D) The effectiveness of the tracking mechanisms required 
under this section in ensuring that members who receive refer-
rals for further evaluations relating to mental health receive 
such evaluations and obtain such care and services as are 
warranted. 
‘‘(E) Programs established for monitoring the mental health 
of each member who, after deployment to a combat operation 
or contingency operations, is known—
‘‘(i) to have a mental health condition or disorder; 
or 
‘‘(ii) to be receiving treatment, including psychotropic 
medications, for a mental health condition or disorder.’’. 
(e) COMPTROLLER GENERAL REPORTS ON IMPLEMENTATION OF 
REQUIREMENTS.—
(1) STUDY ON IMPLEMENTATION.—The Comptroller General 
of the United States shall carry out a study of the implementa-
tion of the requirements of the amendments made by this 
section. 
(2) REPORTS.—Not later than March 1, 2008, the Comp-
troller General shall submit to the Committees on Armed Serv-
ices of the Senate and the House of Representatives a report 
on the study carried out under paragraph (1). 
(f) IMPLEMENTATION.—The Secretary of Defense shall imple-
ment the requirements of the amendments made by this section 
not later than six months after the date of the enactment of this 
Act. 
(g) REPORT REQUIRED.—The Secretary of Defense shall submit 
to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the actions taken to implement 
the requirements of the amendments made by this section not 
later than June 1, 2007. 
Subtitle D—Other Matters 
SEC. 741. PILOT PROJECTS ON EARLY DIAGNOSIS AND TREATMENT 
OF POST TRAUMATIC STRESS DISORDER AND OTHER 
MENTAL HEALTH CONDITIONS. 
(a) PILOT PROJECTS REQUIRED.—The Secretary of Defense shall 
carry out not less than three pilot projects to evaluate the efficacy 
of various approaches to improving the capability of the military 
and civilian health care systems to provide early diagnosis and 
treatment of post traumatic stress disorder and other mental health 
conditions.
H. R. 5122—223
(b) DURATION.—Any pilot project carried out under this section 
shall begin not later than October 1, 2007, and cease on September 
30, 2008. 
(c) PILOT PROJECT REQUIREMENTS.—
(1) DIAGNOSTIC AND TREATMENT APPROACHES.—One of the 
pilot projects under this section shall be designed to evaluate 
effective diagnostic and treatment approaches for use by pri-
mary care providers in the military health care system in 
order to improve the capability of such providers to diagnose 
and treat post traumatic stress disorder. 
(2) NATIONAL GUARD OR RESERVE MEMBERS.—
(A) One of the pilot projects under this section shall 
be focused on members of the National Guard or Reserves 
who are located more than 40 miles from a military medical 
facility and who are served primarily by civilian community 
health resources. 
(B) The pilot project described in subparagraph (A) 
shall be designed to develop educational materials and 
other tools for use by members of the National Guard 
or Reserves who come into contact with other members 
of the National Guard or Reserves who may suffer from 
post traumatic stress disorder in order to encourage and 
facilitate early reporting and referral for treatment. 
(3) OUTREACH.—One of the pilot projects under this section 
shall be designed to provide outreach to the family members 
of the members of the Armed Forces on post traumatic stress 
disorder and other mental health conditions. 
(d) EVALUATION
OF PILOT PROJECTS.—The Secretary shall 
evaluate each pilot project carried out under this section in order 
to assess the effectiveness of the approaches taken under such 
pilot project—
(1) to improve the capability of the military and civilian 
health care systems to provide early diagnosis and treatment 
of post traumatic stress disorder and other mental health condi-
tions among members of the regular components of the Armed 
Forces, and among members of the National Guard and 
Reserves, who have returned from deployment; and 
(2) to provide outreach to the family members of the mem-
bers of the Armed Forces described in paragraph (1) on post 
traumatic stress disorder and other mental health conditions 
among such members of the Armed Forces. 
(e) REPORT TO CONGRESS.—
(1) REPORT REQUIRED.—Not later than December 31, 2008, 
the Secretary shall submit to the congressional defense commit-
tees a report on the pilot projects carried out under this section. 
(2) ELEMENTS.—The report required by paragraph (1) shall 
include the following: 
(A) A description of each pilot project carried out under 
this section. 
(B) An assessment of the effectiveness of the 
approaches taken under each pilot project to improve the 
capability of the military and civilian health care systems 
to provide early diagnosis and treatment of post traumatic 
stress disorder and other mental health conditions among 
members of the Armed Forces.
H. R. 5122—224
(C) Any recommendations for legislative or administra-
tive action that the Secretary considers appropriate in light 
of the pilot projects, including recommendations on—
(i) the training of health care providers in the 
military and civilian health care systems on early diag-
nosis and treatment of post traumatic stress disorder 
and other mental health conditions; and 
(ii) the provision of outreach on post traumatic 
stress disorder and other mental health conditions to 
members of the National Guard and Reserves who 
have returned from deployment. 
(D) A plan, in light of the pilot projects, for the improve-
ment of the health care services provided to members of 
the Armed Forces in order to better assure the early diag-
nosis and treatment of post traumatic stress disorder and 
other mental health conditions among members of the 
Armed Forces, including a specific plan for outreach on 
post traumatic stress disorder and other mental health 
conditions to members of the National Guard and Reserves 
who have returned from deployment in order to facilitate 
and enhance the early diagnosis and treatment of post 
traumatic stress disorder and other mental health condi-
tions among such members of the National Guard and 
Reserves. 
SEC. 742. REQUIREMENT TO CERTIFY AND REPORT ON CONVERSION 
OF MILITARY MEDICAL AND DENTAL POSITIONS TO 
CIVILIAN MEDICAL AND DENTAL POSITIONS. 
(a) PROHIBITION ON CONVERSIONS.—
(1) SUBMISSION OF CERTIFICATION.—The Secretary of a mili-
tary department may not convert any military medical or dental 
position to a civilian medical or dental position in a fiscal 
year until the Secretary submits to the congressional defense 
committees with respect to that fiscal year a certification that 
the conversions within that department will not increase cost 
or decrease quality of care or access to care. 
(2) REPORT ON CERTIFICATION.—Each certification under 
paragraph (1) shall include a written report setting forth the 
following: 
(A) The methodology used by the Secretary in making 
the determinations necessary for the certification. 
(B) The number of military medical or dental positions, 
by grade or band and specialty, planned for conversion 
to civilian medical or dental positions. 
(C) The results of a market survey in each affected 
area of the availability of civilian medical and dental care 
providers in such area in order to determine whether the 
civilian medical and dental care providers available in such 
area are adequate to fill the civilian positions created by 
the conversion of military medical and dental positions 
to civilian positions in such area. 
(D) An analysis, by affected area, showing the extent 
to which access to health care and cost of health care 
will be affected in both the direct care and purchased 
care systems, including an assessment of the effect of any 
increased shifts in patient load from the direct care to 
the purchased care system, or any delays in receipt of
H. R. 5122—225
care in either the direct or purchased care system because 
of the planned conversions. 
(E) The extent to which military medical and dental 
positions planned for conversion to civilian medical or 
dental positions will affect recruiting and retention of uni-
formed medical and dental personnel. 
(F) A comparison of the full costs for the military 
medical and dental positions planned for conversion with 
the estimated full costs for civilian medical and dental 
positions, including expenses such as recruiting, salary, 
benefits, training, and any other costs the Department 
identifies. 
(G) An assessment showing that the military medical 
or dental positions planned for conversion are in excess 
of the military medical and dental positions needed to 
meet medical and dental readiness requirements of the 
uniformed services, as determined jointly by all the uni-
formed services. 
(H) An identification of each medical and dental posi-
tion scheduled to be converted to a civilian position in 
the subsequent fiscal year, including the location of each 
position scheduled for conversion, the estimated cost of 
such conversion, and whether or not civilian personnel 
are available in the location for filling a converted military 
medical or dental position. 
(3) SUBMISSION DEADLINE.—A certification and report with 
respect to any fiscal year after fiscal year 2007 shall be sub-
mitted at the same time the budget of the President for such 
fiscal year is submitted to Congress pursuant to section 1105(a) 
of title 31, United States Code. 
(b) REQUIREMENT FOR COMPTROLLER GENERAL REVIEW.—Not 
later than 120 days after the submission of the budget of the 
President for a fiscal year, the Comptroller General shall submit 
to the congressional defense committees a report on any certifi-
cations and reports submitted with respect to that fiscal year under 
subsection (a). 
(c) REQUIREMENT
TO RESUBMIT CERTIFICATION
AND REPORT 
REQUIRED BY PUBLIC LAW 109–163.—The Secretary of each military 
department shall resubmit the certification and report required 
by section 744(a) of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3360; 10 U.S.C. 
129c note). Such resubmissions shall address in their entirety the 
elements required by section 744(a)(2) of such Act. 
(d) SPECIAL REQUIREMENTS FOR FISCAL YEAR 2007 CERTIFI-
CATION.—
(1) LIST
OF
2007
PLANNED
CONVERSIONS.—The report 
required by paragraph (2) of subsection (a) with respect to 
fiscal year 2007 shall contain, in addition to the elements 
required by that paragraph, a list of each military medical 
or dental position scheduled to be converted to a civilian medical 
or dental position in fiscal year 2007. 
(2) RESUBMISSION REQUIRED FIRST.—The certification and 
report required by subsection (a) with respect to fiscal year 
2007 may not be submitted prior to the resubmission required 
by subsection (c). 
(3) PROHIBITION
ON
CONVERSIONS
DURING
FISCAL
YEAR 
2007.—No conversions of a military medical or dental position
H. R. 5122—226
may occur during fiscal year 2007 prior to both the resubmission 
required by subsection (c) and the submission of the certification 
and report required by subsection (a). 
(e) REPORT ON FISCAL YEAR 2008 CONVERSION.—Not later than 
90 days after the date of the enactment of this Act, the Secretary 
of Defense shall submit to the Committees on Armed Services 
of the Senate and House of Representatives a report that identifies 
the military medical or dental positions scheduled to be converted 
to civilian medical or dental positions in fiscal year 2008. Such 
report shall include the location of the positions scheduled for 
conversion, the estimated cost of such conversion, and whether 
or not civilian personnel are available in the location for filling 
the proposed converted military medical or dental position. 
(f) DEFINITIONS.—In this section: 
(1) The term ‘‘military medical or dental position’’ means 
a position for the performance of health care functions within 
the Armed Forces held by a member of the Armed Forces. 
(2) The term ‘‘civilian medical or dental position’’ means 
a position for the performance of health care functions within 
the Department of Defense held by an employee of the Depart-
ment or of a contractor of the Department. 
(3) The term ‘‘affected area’’ means an area in which mili-
tary medical or dental positions were converted to civilian 
medical or dental positions before October 1, 2004, or in which 
such conversions are scheduled to occur in the future. 
(4) The term ‘‘uniformed services’’ has the meaning given 
that term in section 1072(1) of title 10, United States Code. 
(5) The term ‘‘conversion’’, with respect to a military med-
ical or dental position, means a change, effective as of the 
date of the documentation by the Department of Defense 
making the change, of the position to a civilian medical or 
dental position. 
SEC. 743. THREE-YEAR EXTENSION OF JOINT INCENTIVES PROGRAM 
ON SHARING OF HEALTH CARE RESOURCES BY THE 
DEPARTMENT OF DEFENSE AND DEPARTMENT OF VET-
ERANS AFFAIRS. 
Section 8111(d)(3) of title 38, United States Code, is amended 
by striking ‘‘September 30, 2007’’ and inserting ‘‘September 30, 
2010’’. 
SEC. 744. TRAINING CURRICULA FOR FAMILY CAREGIVERS ON CARE 
AND ASSISTANCE FOR MEMBERS AND FORMER MEMBERS 
OF THE ARMED FORCES WITH TRAUMATIC BRAIN INJURY. 
(a) TRAUMATIC BRAIN INJURY FAMILY CAREGIVER PANEL.—
(1) ESTABLISHMENT.—The Secretary of Defense shall estab-
lish a panel within the Department of Defense, to be known 
as the ‘‘Traumatic Brain Injury Family Caregiver Panel’’, to 
develop coordinated, uniform, and consistent training curricula 
to be used in training family members in the provision of 
care and assistance to members and former members of the 
Armed Forces with traumatic brain injuries. 
(2) MEMBERS.—The Traumatic Brain Injury Family Care-
giver Panel shall consist of 15 members appointed by the Sec-
retary of Defense from among the following: 
(A) Physicians, nurses, rehabilitation therapists, and 
other individuals with an expertise in caring for and 
assisting individuals with traumatic brain injury, including
H. R. 5122—227
persons who specialize in caring for and assisting individ-
uals with traumatic brain injury incurred in combat. 
(B) Representatives of family caregivers or family care-
giver associations. 
(C) Health and medical personnel of the Department 
of Defense and the Department of Veterans Affairs with 
expertise in traumatic brain injury and personnel and 
readiness representatives of the Department of Defense 
with expertise in traumatic brain injury. 
(D) Psychologists or other individuals with expertise 
in the mental health treatment and care of individuals 
with traumatic brain injury. 
(E) Experts in the development of training curricula. 
(F) Family members of members of the Armed Forces 
with traumatic brain injury. 
(G) Such other individuals the Secretary considers 
appropriate. 
(3) CONSULTATION.—In establishing the Traumatic Brain 
Injury Family Caregiver Panel and appointing the members 
of the Panel, the Secretary of Defense shall consult with the 
Secretary of Veterans Affairs. 
(b) DEVELOPMENT OF CURRICULA.—
(1) DEVELOPMENT.—The Traumatic Brain Injury Family 
Caregiver Panel shall develop training curricula to be used 
by family members of members and former members of the 
Armed Forces on techniques, strategies, and skills for care 
and assistance for such members and former members with 
traumatic brain injury. 
(2) SCOPE OF CURRICULA.—The curricula shall—
(A) be based on empirical research and validated tech-
niques; and 
(B) shall provide for training that permits recipients 
to tailor caregiving to the unique circumstances of the 
member or former member of the Armed Forces receiving 
care. 
(3) PARTICULAR
REQUIREMENTS.—In developing the cur-
ricula, the Traumatic Brain Injury Family Caregiver Panel 
shall—
(A) specify appropriate training commensurate with 
the severity of traumatic brain injury; and 
(B) identify appropriate care and assistance to be pro-
vided for the degree of severity of traumatic brain injury 
for caregivers of various levels of skill and capability. 
(4) USE OF EXISTING MATERIALS.—In developing the cur-
ricula, the Traumatic Brain Injury Family Caregiver Panel 
shall use and enhance any existing training curricula, mate-
rials, and resources applicable to such curricula as the Panel 
considers appropriate. 
(5) DEADLINE FOR DEVELOPMENT.—The Traumatic Brain 
Injury Family Caregiver Panel shall develop the curricula not 
later than one year after the date of the enactment of this 
Act. 
(c) DISSEMINATION OF CURRICULA.—
(1) DISSEMINATION MECHANISMS.—The Secretary of Defense 
shall develop mechanisms for the dissemination of the curricula 
developed under subsection (b)—
H. R. 5122—228
(A) to health care professionals who treat or otherwise 
work with members and former members of the Armed 
Forces with traumatic brain injury; 
(B) to family members affected by the traumatic brain 
injury of such members and former members; and 
(C) to other care or support personnel who may provide 
service to members or former members affected by trau-
matic brain injury. 
(2) USE
OF
EXISTING
MECHANISMS.—In developing such 
mechanisms, the Secretary may use and enhance existing 
mechanisms, including the Military Severely Injured Center 
(authorized under section 564 of this Act) and the programs 
for service to severely injured members established by the 
military departments. 
(d) REPORT.—Not later than one year after the development 
of the curricula required by subsection (b), the Secretary of Defense 
and the Secretary of Veterans Affairs shall submit to the Commit-
tees on Armed Services and Veterans Affairs of the Senate and 
the House of Representatives a report on the following: 
(1) The actions undertaken under this section. 
(2) Recommendations for the improvement or updating of 
training curriculum developed and provided under this section. 
SEC. 745. RECOGNITION OF REPRESENTATIVE LANE EVANS UPON HIS 
RETIREMENT FROM THE HOUSE OF REPRESENTATIVES. 
(a) FINDINGS.—Congress makes the following findings: 
(1) Representative Lane Evans was elected to the House 
of Representatives in 1982 and is completing his 12th term 
representing the people of Illinois’ 17th Congressional district. 
(2) As a member of the Committee on Armed Services 
of the House of Representatives since 1988, Representative 
Evans has worked to bring common sense priorities to defense 
spending and strengthen the military’s conventional readiness. 
(3) Representative Evans has served as the ranking 
member of the Committee on Veterans’ Affairs of the House 
of Representatives since 1997 and has been a tireless advocate 
for military veterans, ensuring that veterans receive the med-
ical care they need and advocating for individuals suffering 
from post-traumatic stress disorder and Gulf War Syndrome. 
(5) Drawing on his own experience as a member of the 
Marine Corps, Representative Evans has tirelessly fought for 
both current members of the Armed Forces and veterans and 
has been a leader in legislative efforts to assist members 
exposed to Agent Orange. 
(4) Representative Evans’ efforts to improve the transition 
of individuals from military service to the care of the Depart-
ment of Veterans Affairs will continue to benefit generations 
of veterans long into the future. 
(6) Representative Evans is credited with bringing new 
services to veterans living in his Congressional district, 
including outpatient clinics in the Quad Cities and Quincy 
and the Quad-Cities Vet Center. 
(7) Representative Evans has worked with local leaders 
to promote the Rock Island Arsenal and has seen it win new 
jobs and missions through his support. 
(b) RECOGNITION.—Congress recognizes and commends Rep-
resentative Lane Evans for his 24 years of service to benefit the
H. R. 5122—229
people of Illinois, members of the Armed Forces and their families, 
veterans, and the United States. 
TITLE VIII—ACQUISITION POLICY, AC-
QUISITION MANAGEMENT, AND RE-
LATED MATTERS
Subtitle A—Provisions Relating to Major Defense Acquisition Programs 
Sec. 801. Requirements management certification training program. 
Sec. 802. Additional requirements relating to technical data rights. 
Sec. 803. Study and report on revisions to Selected Acquisition Report require-
ments. 
Sec. 804. Biannual updates on implementation of acquisition reform in the Depart-
ment of Defense. 
Sec. 805. Additional certification requirements for major defense acquisition pro-
grams before proceeding to Milestone B. 
Sec. 806. Original baseline estimate for major defense acquisition programs. 
Sec. 807. Lead system integrators. 
Subtitle B—Acquisition Policy and Management 
Sec. 811. Time-certain development for Department of Defense information tech-
nology business systems. 
Sec. 812. Pilot program on time-certain development in acquisition of major weapon 
systems. 
Sec. 813. Establishment of Panel on Contracting Integrity. 
Sec. 814. Linking of award and incentive fees to acquisition outcomes. 
Sec. 815. Report on defense instruction relating to contractor personnel authorized 
to accompany Armed Forces. 
Sec. 816. Major automated information system programs. 
Sec. 817. Internal controls for procurements on behalf of the Department of De-
fense by certain non-defense agencies. 
Sec. 818. Determination of contract type for development programs. 
Sec. 819. Three-year extension of requirement for reports on commercial price 
trend analyses of the Department of Defense. 
Sec. 820. Government performance of critical acquisition functions. 
Subtitle C—Amendments to General Contracting Authorities, Procedures, and 
Limitations 
Sec. 831. One-year extension of special temporary contract closeout authority. 
Sec. 832. Limitation on contracts for the acquisition of certain services. 
Sec. 833. Use of Federal supply schedules by State and local governments for goods 
and services for recovery from natural disasters, terrorism, or nuclear, 
biological, chemical, or radiological attack. 
Sec. 834. Waivers to extend task order contracts for advisory and assistance serv-
ices. 
Subtitle D—United States Defense Industrial Base Provisions 
Sec. 841. Assessment and annual report of United States defense industrial base 
capabilities and acquisitions of articles, materials, and supplies manu-
factured outside the United States. 
Sec. 842. Protection of strategic materials critical to national security. 
Sec. 843. Strategic Materials Protection Board. 
Subtitle E—Other Matters 
Sec. 851. Report on former Department of Defense officials employed by contractors 
of the Department of Defense. 
Sec. 852. Report and regulations on excessive pass-through charges. 
Sec. 853.
Program manager empowerment and accountability. 
Sec. 854. Joint policies on requirements definition, contingency program manage-
ment, and contingency contracting. 
Sec. 855. Clarification of authority to carry out certain prototype projects. 
Sec. 856. Contracting with employers of persons with disabilities. 
Sec. 857. Enhanced access for small business. 
Sec. 858. Procurement goal for Hispanic-serving institutions.
H. R. 5122—230
Subtitle A—Provisions Relating to Major 
Defense Acquisition Programs 
SEC. 801. REQUIREMENTS MANAGEMENT CERTIFICATION TRAINING 
PROGRAM. 
(a) TRAINING PROGRAM.—
(1) REQUIREMENT.—The Under Secretary of Defense for 
Acquisition, Technology, and Logistics, in consultation with 
the Defense Acquisition University, shall develop a training 
program to certify military and civilian personnel of the Depart-
ment of Defense with responsibility for generating requirements 
for major defense acquisition programs (as defined in section 
2430(a) of title 10, United States Code). 
(2) COMPETENCY AND OTHER REQUIREMENTS.—The Under 
Secretary shall establish competency requirements for the per-
sonnel undergoing the training program. The Under Secretary 
shall define the target population for such training program 
by identifying which military and civilian personnel should 
have responsibility for generating requirements. The Under 
Secretary also may establish other training programs for per-
sonnel not subject to chapter 87 of title 10, United States 
Code, who contribute significantly to other types of acquisitions 
by the Department of Defense. 
(b) APPLICABILITY.—Effective on and after September 30, 2008, 
a member of the Armed Forces or an employee of the Department 
of Defense with authority to generate requirements for a major 
defense acquisition program may not continue to participate in 
the requirements generation process unless the member or employee 
successfully completes the certification training program developed 
under this section. 
(c) REPORTS.—The Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and House of Rep-
resentatives an interim report, not later than March 1, 2007, and 
a final report, not later than March 1, 2008, on the implementation 
of the training program required under this section. 
SEC. 802. ADDITIONAL REQUIREMENTS RELATING TO TECHNICAL 
DATA RIGHTS. 
(a) ADDITIONAL REQUIREMENTS RELATING TO TECHNICAL DATA 
RIGHTS.—Section 2320 of title 10, United States Code, is amended 
by adding at the end the following new subsection: 
‘‘(e) The Secretary of Defense shall require program managers 
for major weapon systems and subsystems of major weapon systems 
to assess the long-term technical data needs of such systems and 
subsystems and establish corresponding acquisition strategies that 
provide for technical data rights needed to sustain such systems 
and subsystems over their life cycle. Such strategies may include 
the development of maintenance capabilities within the Department 
of Defense or competition for contracts for sustainment of such 
systems or subsystems. Assessments and corresponding acquisition 
strategies developed under this section with respect to a weapon 
system or subsystem shall—
‘‘(1) be developed before issuance of a contract solicitation 
for the weapon system or subsystem;
H. R. 5122—231
‘‘(2) address the merits of including a priced contract option 
for the future delivery of technical data that were not acquired 
upon initial contract award; 
‘‘(3) address the potential for changes in the sustainment 
plan over the life cycle of the weapon system or subsystem; 
and 
‘‘(4) apply to weapon systems and subsystems that are 
to be supported by performance-based logistics arrangements 
as well as to weapons systems and subsystems that are to 
be supported by other sustainment approaches.’’. 
(b) MODIFICATION OF PRESUMPTION OF DEVELOPMENT EXCLU-
SIVELY AT PRIVATE EXPENSE.—Section 2321(f) of title 10, United 
States Code, is amended—
(1) by striking ‘‘EXPENSE
FOR COMMERCIAL ITEMS CON-
TRACTS.—In’’ and inserting ‘‘EXPENSE.—(1) Except as provided 
in paragraph (2), in’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(2) In the case of a challenge to a use or release restriction 
that is asserted with respect to technical data of a contractor 
or subcontractor (whether or not under a contract for commercial 
items) for a major system or a subsystem or component thereof 
on the basis that the major system, subsystem or component was 
developed exclusively at private expense, the challenge to the use 
or release restriction shall be sustained unless information provided 
by the contractor or subcontractor demonstrates that the item was 
developed exclusively at private expense.’’. 
(c) REGULATIONS.—Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall revise 
regulations under section 2320 of title 10, United States Code, 
to implement subsection (e) of such section (as added by this sec-
tion), including incorporating policy changes developed under such 
subsection into Department of Defense Directive 5000.1 and Depart-
ment of Defense Instruction 5000.2. 
SEC. 803. STUDY AND REPORT ON REVISIONS TO SELECTED ACQUISI-
TION REPORT REQUIREMENTS. 
(a) STUDY REQUIREMENT.—The Secretary of Defense, acting 
through the Under Secretary of Defense for Acquisition, Technology, 
and Logistics in coordination with the service acquisition executives 
of each military department, shall conduct a study on revisions 
to requirements relating to Selected Acquisition Reports, as set 
forth in section 2432 of title 10, United States Code. 
(b) MATTERS COVERED.—The study required under subsection 
(a) shall—
(1) focus on incorporating into the Selected Acquisition 
Report those elements of program progress that the Department 
of Defense considers most relevant to evaluating the perform-
ance and progress of major defense acquisition programs, with 
particular reference to the cost estimates and program schedule 
established when a major defense acquisition program receives 
Milestone B approval; 
(2) address the need to ensure that data provided through 
the Selected Acquisition Report is consistent with data provided 
through internal Department of Defense reporting systems for 
management purposes; and
H. R. 5122—232
(3) include any recommendations to add to, modify, or 
delete elements of the Selected Acquisition Report, consistent 
with the findings of the study. 
(c) REPORT.—Not later than March 1, 2007, the Secretary shall 
submit to the Committees on Armed Services of the Senate and 
the House of Representatives a report on the results of the study, 
including such recommendations as the Secretary considers appro-
priate. 
SEC. 804. BIANNUAL UPDATES ON IMPLEMENTATION OF ACQUISITION 
REFORM IN THE DEPARTMENT OF DEFENSE. 
(a) BIANNUAL UPDATES REQUIREMENT.—Not later than January 
1 and July 1 of each year, beginning with January 1, 2007, the 
Secretary of Defense shall provide to the Committees on Armed 
Services of the Senate and the House of Representatives a report 
containing an update on the implementation of plans to reform 
the acquisition system in the Department of Defense. 
(b) MATTERS COVERED.—Each report provided under subsection 
(a) shall cover the implementation of reforms of the processes for 
acquisition, including generation of requirements, award of con-
tracts, and financial management. At a minimum, the reports shall 
take into account the recommendations made by the following: 
(1) The Defense Acquisition Performance Assessment 
Panel. 
(2) The Defense Science Board Summer Study on Trans-
formation, issued in February 2006. 
(3) The Beyond Goldwater-Nichols Study of the Center 
for Strategic and International Studies. 
(4) The Quadrennial Defense Review, issued February 6, 
2006. 
(c) RECOMMENDATIONS.—Each report submitted under sub-
section (a) shall include such recommendations as the Secretary 
considers appropriate, and implementation plans for the rec-
ommendations. 
(d) TERMINATION OF REPORT REQUIREMENT.—The requirement 
to submit reports under subsection (a) shall terminate on December 
31, 2008. 
SEC. 805. ADDITIONAL CERTIFICATION REQUIREMENTS FOR MAJOR 
DEFENSE ACQUISITION PROGRAMS BEFORE PROCEEDING 
TO MILESTONE B. 
(a) ADDITIONAL CERTIFICATION REQUIREMENTS.—Subsection (a) 
of section 2366a of title 10, United States Code, is amended—
(1) by redesignating paragraph (7) as paragraph (10); 
(2) by redesignating paragraphs (1) through (6) as para-
graphs (2) through (7), respectively; 
(3) by inserting before paragraph (2) (as so redesignated) 
the following new paragraph (1): 
‘‘(1) appropriate market research has been conducted prior 
to technology development to reduce duplication of existing 
technology and products;’’; 
(4) in paragraph (7) (as so redesignated), by striking ‘‘and’’ 
at the end; and 
(5) by inserting after such paragraph (7) the following 
new paragraphs: 
‘‘(8) reasonable cost and schedule estimates have been 
developed to execute the product development and production 
plan under the program;
H. R. 5122—233
‘‘(9) funding is available to execute the product development 
and production plan under the program, through the period 
covered by the future-years defense program submitted during 
the fiscal year in which the certification is made, consistent 
with the estimates described in paragraph (8) for the program; 
and’’. 
(b) WAIVER FOR NATIONAL SECURITY.—Subsection (c) of such 
section is amended by striking ‘‘(5), or (6)’’ and inserting ‘‘(5), 
(6), (7), (8), or (9)’’. 
SEC. 806. ORIGINAL BASELINE ESTIMATE FOR MAJOR DEFENSE 
ACQUISITION PROGRAMS. 
Section 2435(d)(1) of title 10, United States Code, is amended 
by inserting after ‘‘with respect to the program under subsection 
(a)’’ the following: ‘‘prepared before the program enters system 
development and demonstration, or at program initiation, whichever 
occurs later’’. 
SEC. 807. LEAD SYSTEM INTEGRATORS. 
(a) LIMITATIONS
ON CONTRACTORS ACTING
AS LEAD SYSTEM 
INTEGRATORS.—
(1) IN GENERAL.—Chapter 141 of title 10, United States 
Code, is amended by adding at the end the following new 
section: 
‘‘§ 2410p. Contracts: limitations on lead system integrators 
‘‘(a) IN GENERAL.—Except as provided in subsection (b), no 
entity performing lead system integrator functions in the acquisition 
of a major system by the Department of Defense may have any 
direct financial interest in the development or construction of any 
individual system or element of any system of systems. 
‘‘(b) EXCEPTION.—An entity described in subsection (a) may 
have a direct financial interest in the development or construction 
of an individual system or element of a system of systems if—
‘‘(1) the Secretary of Defense certifies to the Committees 
on Armed Services of the Senate and the House of Representa-
tives that—
‘‘(A) the entity was selected by the Department of 
Defense as a contractor to develop or construct the system 
or element concerned through the use of competitive proce-
dures; and 
‘‘(B) the Department took appropriate steps to prevent 
any organizational conflict of interest in the selection 
process; or 
‘‘(2) the entity was selected by a subcontractor to serve 
as a lower-tier subcontractor, through a process over which 
the entity exercised no control. 
‘‘(c) CONSTRUCTION.—Nothing in this section shall be construed 
to preclude an entity described in subsection (a) from performing 
work necessary to integrate two or more individual systems or 
elements of a system of systems with each other.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 141 of such title is amended by adding 
at the end the following new item:
‘‘2410p. Contracts: limitations on lead system integrators’’.
H. R. 5122—234
(3) EFFECTIVE
DATE.—Section 2410p of title 10, United 
States Code, as added by paragraph (1), shall apply with respect 
to contracts entered into after December 31, 2006. 
(b) UPDATE OF REGULATIONS ON LEAD SYSTEM INTEGRATORS.—
Not later than December 31, 2006, the Secretary of Defense shall 
update the acquisition regulations of the Department of Defense 
in order to specify fully in such regulations the matters with respect 
to lead system integrators set forth in section 805(b) of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109–
163; 119 Stat. 3372) and the amendments made by subsection 
(a). 
(c) ADDITIONAL
REPORT
REQUIREMENTS.—The Secretary of 
Defense shall include in the report required by section 805 of 
such Act—
(1) a precise and comprehensive definition of the term 
‘‘lead system integrator’’, as that term is used in such section; 
and 
(2) a specification of various types of contracts and fee 
structures that are appropriate for use by lead system integra-
tors in the production, fielding, and sustainment of complex 
systems. 
Subtitle B—Acquisition Policy and 
Management 
SEC. 811. TIME-CERTAIN DEVELOPMENT FOR DEPARTMENT OF 
DEFENSE INFORMATION TECHNOLOGY BUSINESS SYS-
TEMS. 
(a) MILESTONE A LIMITATION.—The Department of Defense 
executive or entity that is the milestone decision authority for 
an information system described in subsection (c) may not provide 
Milestone A approval for the system unless, as part of the decision 
process for such approval, that authority determines that the system 
will achieve initial operational capability within a specified period 
of time not exceeding five years. 
(b) INITIAL
OPERATIONAL
CAPABILITY
LIMITATION.—If an 
information system described in subsection (c), having received 
Milestone A approval, has not achieved initial operational capability 
within five years after the date of such approval, the system shall 
be deemed to have undergone a critical change in program requiring 
the evaluation and report required by section 2445c(d) of title 
10, United States Code (as added by section 816 of this Act). 
(c) COVERED SYSTEMS.—An information system described in 
this subsection is any Department of Defense information tech-
nology business system that is not a national security system, 
as defined in 3542(b)(2) of title 44, United States Code. 
(d) DEFINITIONS.—In this section: 
(1) MILESTONE DECISION AUTHORITY.—The term ‘‘milestone 
decision authority’’ has the meaning given that term in Depart-
ment of Defense Instruction 5000.2, dated May 12, 2003. 
(2) MILESTONE A.—The term ‘‘Milestone A’’ has the meaning 
given that term in Department of Defense Instruction 5000.2, 
dated May 12, 2003.
H. R. 5122—235
SEC. 812. PILOT PROGRAM ON TIME-CERTAIN DEVELOPMENT IN 
ACQUISITION OF MAJOR WEAPON SYSTEMS. 
(a) PILOT PROGRAM AUTHORIZED.—The Secretary of Defense 
may carry out a pilot program on the use of time-certain develop-
ment in the acquisition of major weapon systems. 
(b) PURPOSE
OF PILOT PROGRAM.—The purpose of the pilot 
program authorized by subsection (a) is to assess the feasibility 
and advisability of utilizing time-certain development in the acquisi-
tion of major weapon systems in order to deliver new capabilities 
to the warfighter more rapidly through—
(1) disciplined decision-making; 
(2) emphasis on technological maturity; and 
(3) appropriate trade-offs between—
(A) cost and system performance; and 
(B) program schedule. 
(c) INCLUSION OF SYSTEMS IN PILOT PROGRAM.—
(1) IN GENERAL.—The Secretary of Defense may include 
a major weapon system in the pilot program only if—
(A) the major weapon system meets the criteria under 
paragraph (2) in accordance with that paragraph; and 
(B) the Milestone Decision Authority nominates such 
program to the Secretary of Defense for inclusion in the 
program. 
(2) CRITERIA.—For purposes of paragraph (1) a major 
weapon system meets the criteria under this paragraph only 
if the Milestone Decision Authority determines, in consultation 
with the service acquisition executive for the military depart-
ment carrying out the acquisition program for the system and 
one or more combatant commanders responsible for fielding 
the system, that—
(A) the certification requirements of section 2366a of 
title 10, United States Code (as amended by section 805 
of this Act), have been met, and no waivers have been 
granted from such requirements; 
(B) a preliminary design has been reviewed using sys-
tems engineering, and the system, as so designed, will 
meet battlefield needs identified by the relevant combatant 
commanders after appropriate requirements analysis; 
(C) a representative model or prototype of the system, 
or key subsystems, has been demonstrated in a relevant 
environment, such as a well-simulated operational environ-
ment; 
(D) an independent cost estimate has been conducted 
and used as the basis for funding requirements for the 
acquisition program for the system; 
(E) the budget of the military department responsible 
for carrying out the acquisition program for the system 
provides the funding necessary to execute the product 
development and production plan consistent with the 
requirements identified pursuant to subparagraph (D); 
(F) an appropriately qualified program manager has 
entered into a performance agreement with the Milestone 
Decision Authority that establishes expected parameters 
for the cost, schedule, and performance of the acquisition 
program for the system, consistent with a business case 
for such acquisition program;