656 
‘‘(ii) the specific identification, as a budg-
etary line item, for the funding under such pro-
grams. 
‘‘(B) An assessment of the budget, including sig-
nificant changes, priorities, challenges, and risks. 
‘‘(C) Any additional matters the Secretary deter-
mines appropriate. 
‘‘(3) Each report under paragraph (1) shall be sub-
mitted in unclassified form, but may include a classified 
annex. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘budget’, with respect to a fiscal 
year, means the budget for that fiscal year that is 
submitted to Congress by the President under section 
1105(a) of title 31. 
‘‘(2) The term ‘defense budget materials’, with 
respect to a fiscal year, means the materials sub-
mitted to Congress by the Secretary of Defense in sup-
port of the budget for that fiscal year. 
‘‘(3) The term ‘missile defense and defeat pro-
grams’ means active and passive ballistic missile de-
fense programs, cruise missile defense programs for 
the homeland, and missile defeat programs.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended by 
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inserting after the item relating to section 239 the fol-
lowing new item: 
‘‘239a. Missile defense and defeat programs: major force program and budget as-
sessment.’’. 
(b) TRANSITION
OF BALLISTIC MISSILE DEFENSE 
PROGRAMS TO MILITARY DEPARTMENTS.— 
(1) REQUIREMENT.—Not later than the date on 
which the budget of the President for fiscal year 2020 
is submitted under section 1105 of title 31, United 
States Code, the Secretary of Defense shall transfer 
the acquisition authority and the total obligational 
authority for each missile defense program described 
in paragraph (2) from the Missile Defense Agency to 
a military department. 
(2) MISSILE DEFENSE PROGRAM DESCRIBED.—A 
missile defense program described in this paragraph 
is a missile defense program of the Missile Defense 
Agency that, as of the date specified in paragraph 
(1), has received Milestone C approval (as defined in 
section 2366 of title 10, United States Code). 
(3) REPORT.— 
(A) IN GENERAL.—Not later than one year 
after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the congres-
sional defense committees a report on the plans 
of the Department of Defense for the transition 
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of missile defense programs from the Missile De-
fense Agency to the military departments pursu-
ant to paragraph (1). 
(B) SCOPE.—The report under subpara-
graph (A) shall cover the period covered by the 
future-years defense program that is submitted 
under section 221 of title 10, United States Code, 
in the year in which such report is submitted. 
(C) 
MATTERS
INCLUDED.—The 
report 
under subparagraph (A) shall include the fol-
lowing: 
(i) An identification of— 
(I) the missile defense programs 
planned to be transitioned from the 
Missile Defense Agency to the military 
departments; and 
(II) the missile defense programs, 
if any, not planned for transition to 
the military departments. 
(ii) The schedule for transition of each 
missile defense program planned to be 
transitioned to a military department, and 
an explanation of such schedule. 
(iii) A description of— 
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(I) the status of the plans of the 
Missile Defense Agency and the mili-
tary departments for the transition of 
missile defense programs from that 
agency to the military departments; 
and 
(II) the status of any agreement 
between the Missile Defense Agency 
and one or more of the military de-
partments on the transition of any 
such program from that agency to the 
military departments, including any 
agreement on the operational test cri-
teria that must be achieved before such 
transition. 
(iv) An identification of the element of 
the Department of Defense (whether the Mis-
sile Defense Agency, a military department, 
or both) that will be responsible for funding 
each 
missile 
defense 
program 
to 
be 
transitioned to a military department, and 
at what date. 
(v) A description of the type of funds 
that will be used (whether funds for re-
search, development, test, and evaluation, 
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procurement, military construction, or oper-
ation and maintenance) for each missile de-
fense program to be transitioned to a mili-
tary department. 
(vi) An explanation of the number of 
systems planned for procurement for each 
missile defense program to be transitioned 
to a military department, and the schedule 
for procurement of each such system. 
(vii) A description of how the Missile 
Defense Agency will continue the responsi-
bility for the research and development of 
improvements to missile defense programs. 
(c) ROLE OF MISSILE DEFENSE AGENCY.— 
(1) IN GENERAL.—Chapter 8 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 205. Missile Defense Agency 
‘‘(a) TERM OF DIRECTOR.—The Director of the Missile 
Defense Agency shall be appointed for a six-year term. 
‘‘(b) REPORTING.—The Missile Defense Agency shall be 
under the authority, direction, and control of the Under 
Secretary of Defense for Research and Engineering.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of subchapter II of such chap-
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ter is amended by adding at the end the following 
new item: 
‘‘205. Missile Defense Agency.’’. 
(3) APPLICATION.— 
(A) TERMS.—Subsection (a) of section 205 
of title 10, United States Code, as added by 
paragraph (1), shall apply the day following the 
date on which the present incumbent in the office 
of the Director of the Missile Defense Agency, as 
of the date of the enactment of this Act, ceases 
to serve as such. 
(B) REPORTING.—Subsection (b) of such 
section 205 shall apply beginning on February 
1, 2018. In carrying out such subsection, the 
Missile Defense Agency shall be under the au-
thority, direction, and control of the Under Sec-
retary of Defense for Research and Engineering 
in the same manner as the Missile Defense Agen-
cy was under the authority, direction, and con-
trol of the Under Secretary of Defense for Acqui-
sition, Technology, and Logistics pursuant to 
Department of Defense Directive 5134.09. Any 
reference in such Instruction to the Under Sec-
retary of Defense for Acquisition, Technology, 
and Logistics shall be deemed to be a reference 
to the Under Secretary of Defense for Research 
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and Engineering, including with respect to the 
Under Secretary serving as the chairman of the 
Missile Defense Executive Board. 
SEC. 1682. PRESERVATION OF THE BALLISTIC MISSILE DE-
FENSE CAPACITY OF THE ARMY. 
(a) LIMITATION.—None of the funds authorized to be 
appropriated by this Act or otherwise made available for 
fiscal year 2018 or any fiscal year thereafter for the Army 
may be obligated or expended to demilitarize any GEM– 
T interceptor or remove any such interceptor from the oper-
ational inventory of the Army until the date on which the 
Secretary of the Army submits to the congressional defense 
committees the evaluation conducted under subsection (b). 
(b) EVALUATION.—The Secretary and the Chief of 
Staff of the Army shall jointly conduct an evaluation of 
the ability of the Army to meet warfighter requirements and 
operational needs if GEM–T interceptors are removed from 
the operational inventory of the Army. In conducting such 
evaluation, the Secretary and the Chief of Staff shall evalu-
ate whether the Army can maintain an inventory of inter-
ceptors necessary to retain the capability provided by 
GEM–T interceptors and to meet such operational needs by 
either— 
(1) recertifying GEM–T interceptors (either with 
or without modification); or 
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(2) developing, testing, and fielding a new low- 
cost interceptor that can be placed on the operational 
inventory of the Army prior to the retirement of 
GEM-T interceptors. 
(c) EXCEPTION.—The limitation in subsection (a) 
shall not apply to activities that the Secretary determines 
are critical to the safety of GEM–T interceptors. 
(d) GEM–T INTERCEPTOR DEFINED.—In this section, 
the term ‘‘GEM–T interceptor’’ means the Patriot guidance 
enhanced missile TBM. 
SEC. 1683. MODERNIZATION OF ARMY LOWER TIER AIR AND 
MISSILE DEFENSE SENSOR. 
(a) APPROVAL OF ACQUISITION STRATEGY.— 
(1) IN GENERAL.—Not later than April 15, 2018, 
the Secretary of the Army shall issue an acquisition 
strategy for a 360-degree lower tier air and missile 
defense sensor that achieves initial operating capa-
bility by not later than January 1, 2022. 
(2) REQUIREMENTS.—The acquisition strategy 
under paragraph (1) shall— 
(A) ensure the use of competitive procedures; 
(B) clearly describe the open-architecture 
design to be used; 
(C) provide a comprehensive fielding plan 
that provides 360-degree lower tier air and mis-
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sile defense sensor capability to all units of the 
Army by not later than January 1, 2026; 
(D) define the operation and sustainment 
cost savings of the acquisition strategy and other 
acquisition options of the Army; 
(E) identify any programmatic cost avoid-
ance that could be achieved through co-produc-
tion, co-development, or foreign military sales; 
(F) ensure the fielding of an interim gap- 
filler capability to the highest priority forces 
(consisting of not less than three battalions) for 
imminent threats; and 
(G) identify the estimated cost to field both 
the 360-degree lower tier air and missile defense 
sensor capability and the interim capability 
pursuant to subparagraph (E). 
(3) LIMITATION.—If the Secretary of the Army 
does not issue the acquisition strategy under sub-
section (a) by April 15, 2018, none of the funds au-
thorized to be appropriated by this Act or otherwise 
made available for fiscal year 2018 for the lower tier 
air and missile defense sensor of the Army that are 
unobligated as of such date may be obligated or ex-
pended. 
(b) CONDITIONAL TRANSFER.— 
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(1) MDA.—If the Secretary of the Army does not 
issue the acquisition strategy under subsection (a) by 
April 15, 2018, the Secretary of Defense shall transfer 
from the Secretary of the Army to the Director of the 
Missile Defense Agency— 
(A) the responsibility to issue the acquisi-
tion strategy described in subsection (a) by not 
later than December 15, 2018; and 
(B) beginning on the date of such approval, 
the responsibility to implement such acquisition 
strategy to procure a 360-degree lower tier air 
and missile defense sensor. 
(2) ARMY.—If the Secretary of Defense carries 
out the transfer under paragraph (1), after the 360- 
degree lower tier air and missile defense sensor 
achieves Milestone B approval (or equivalent), but be-
fore such sensor achieves Milestone C approval (or 
equivalent), the Secretary of Defense shall transfer 
from the Director of the Missile Defense Agency to the 
Secretary of the Army the responsibility to procure 
such sensor. 
(c) DEFINITIONS.—The terms ‘‘Milestone B approval’’ 
and ‘‘Milestone C approval’’ have the meanings given those 
terms in section 2366 of title 10, United States Code. 
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SEC. 1684. ENHANCEMENT OF OPERATIONAL TEST AND 
EVALUATION 
OF 
BALLISTIC 
MISSILE 
DE-
FENSE SYSTEM. 
Not later than 90 days after the date of the enactment 
of this Act, the Director of the Missile Defense Agency, the 
Director of Operational Test and Evaluation, the Secretary 
of the Army, and the Secretary of the Navy shall jointly 
ensure that— 
(1) the test plans of the Integrated Master Test 
Plan of the ballistic missile defense system include 
planned tests activity of the lower tier ballistic mis-
sile defenses of the Army; 
(2) such plans prioritize the integration of such 
defenses with elements of the ballistic missile defense 
system; and 
(3) such plans are clearly described in such Inte-
grated Master Test Plan. 
SEC. 1685. DEFENSE OF HAWAII FROM NORTH KOREAN BAL-
LISTIC MISSILE ATTACK. 
(a) FINDINGS; SENSE OF CONGRESS.— 
(1) FINDINGS.—Congress finds the following: 
(A) The North Korean ballistic missile 
threat to the United States, including Hawaii, is 
growing rapidly. 
(B) Since Kim Jong-un took power in 2012, 
North Korea has conducted 78 ballistic missile 
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tests, of which 61 are considered to have been 
successful. 
(C) The existing ballistic missile defense 
protection for Hawaii, including the ground- 
based midcourse defense system in Alaska, and 
the sea-based x-band radar, provide limited bal-
listic missile defense capabilities today. 
(D) Through use of existing ballistic missile 
defense assets, including AN/TPY–2 radars and 
the Aegis Ashore Site located on the Pacific Mis-
sile Range Facility, the ballistic missile defense 
of Hawaii could benefit from a near-term im-
provement by adding a layer of defense. 
(E) The proposed program of record for a 
medium range discriminating radar to be fully 
mission capable after 2023 would leave the de-
fense of Hawaii dependent only on the ground- 
based midcourse defense system in Alaska, and 
the sea-based x-band radar until that time, while 
the threat to the United States, including Ha-
waii, from North Korean ballistic missiles con-
tinues to grow. 
(F) The National Defense Authorization Act 
for Fiscal Year 2017 (Public Law 114–328) re-
quired that the Missile Defense Agency plan to 
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provide additional ballistic missile defense sensor 
coverage for the defense of Hawaii and ‘‘field 
such radar or equivalent sensor by not later than 
December 31, 2021’’. 
(G) When asked at a hearing of the Com-
mittee on Armed Services of the House of Rep-
resentatives on April 26, 2017, about the threat 
to Hawaii from North Korean ballistic missiles, 
the Commander of the United States Pacific 
Command, Admiral Harry Harris, testified that 
‘‘Kim Jong-un is clearly in a position to threat-
en Hawaii today. . .I believe that our ballistic 
missile (defense) architecture is sufficient to pro-
tect Hawaii today. But it can be overwhelmed’’ 
and ‘‘I think that we would be better served, my 
personal opinion, is that we would be better 
served with a defensive Hawaii radar and inter-
ceptors in Hawaii. I know that is being dis-
cussed’’. 
(2) SENSE
OF
CONGRESS.—It is the sense of 
Congress that Congress supports assessing the feasi-
bility of improving the missile defense of Hawaii 
from the evolving ballistic missile threat, including 
from North Korea, through a permanent missile de-
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fense sensor capability and the possible introduction 
of interim missile defense coverage. 
(b) SEQUENCED APPROACH.—The Secretary of Defense 
shall protect the test and training operations of the Pacific 
Missile Range Facility, and assess the siting and 
functionality of a discrimination radar for homeland de-
fense throughout the Hawaiian Islands before assessing the 
feasibility of improving the missile defense of Hawaii by 
using existing missile defense assets that could materially 
improve the defense of Hawaii. 
(c) TEST.—The Director of the Missile Defense Agency 
shall— 
(1) not later than 270 days after the date of the 
enactment of this Act, conduct a test to evaluate and 
demonstrate, if technologically feasible, the capability 
to defeat a simple intercontinental ballistic missile 
threat using the standard missile 3 block IIA missile 
interceptor; and 
(2) as part of the integrated master test plan for 
the ballistic missile defense system, develop a plan to 
demonstrate a capability to defeat a complex inter-
continental ballistic missile threat, including a com-
plex threat posed by the intercontinental ballistic mis-
siles of North Korea. 
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(d) REPORT.—Not later than 120 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to the congressional defense committees a report— 
(1) that indicates whether demonstrating an 
intercontinental ballistic missile defense capability 
against North Korean ballistic missiles by the stand-
ard missile 3 block IIA missile interceptor poses any 
risks to strategic stability; and 
(2) if the Secretary determines under paragraph 
(1) that such demonstration poses such risks to stra-
tegic stability, a description of any plan developed 
and implemented by the Secretary to address and 
mitigate such risks, as determined appropriate by the 
Secretary. 
SEC. 1686. AEGIS ASHORE ANTI-AIR WARFARE CAPABILITY. 
(a) AUTHORIZATION.—Using funds authorized to be 
appropriated by sections 101 and 201 of this Act or other-
wise made available for fiscal year 2018 for procurement 
and research, development, test, and evaluation, as specified 
in the funding tables in division D, the Secretary of Defense 
shall continue the development, procurement, and deploy-
ment of anti-air warfare capabilities at each Aegis Ashore 
site in Romania and Poland. The Secretary shall ensure 
the deployment of such capabilities— 
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(1) at such sites in Romania by not later than 
one year after the date of the enactment of this Act; 
and 
(2) at such sites in Poland by not later than one 
year after the declaration of operational status for 
such sites. 
(b) REPROGRAMMING
AND
TRANSFERS.—Any re-
programming or transfer made to carry out subsection (a) 
shall be carried out in accordance with established proce-
dures for reprogramming or transfers. 
SEC. 1687. IRON DOME SHORT-RANGE ROCKET DEFENSE 
SYSTEM, ISRAELI COOPERATIVE MISSILE DE-
FENSE PROGRAM CODEVELOPMENT AND CO-
PRODUCTION, AND ARROW 3 TESTING. 
(a) IRON DOME SHORT-RANGE ROCKET DEFENSE 
SYSTEM.— 
(1) AVAILABILITY OF FUNDS.—Of the funds au-
thorized to be appropriated by this Act or otherwise 
made available for fiscal year 2018 for procurement, 
Defense-wide, and available for the Missile Defense 
Agency, not more than $92,000,000 may be provided 
to the Government of Israel to procure Tamir inter-
ceptors for the Iron Dome short-range rocket defense 
system through coproduction of such interceptors in 
the United States by industry of the United States. 
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(2) CONDITIONS.— 
(A) 
AGREEMENT.—Funds 
described 
in 
paragraph (1) for the Iron Dome short-range 
rocket defense program shall be available subject 
to the terms and conditions in the Agreement Be-
tween the Department of Defense of the United 
States of America and the Ministry of Defense of 
the State of Israel Concerning Iron Dome De-
fense System Procurement, signed on March 5, 
2014, subject to an amended bilateral inter-
national agreement for coproduction for Tamir 
interceptors. In negotiations by the Missile De-
fense Agency and the Missile Defense Organiza-
tion of the Government of Israel regarding such 
production, the goal of the United States is to 
maximize opportunities for coproduction of the 
Tamir interceptors described in paragraph (1) 
in the United States by industry of the United 
States. 
(B) CERTIFICATION.—Not later than 30 
days prior to the initial obligation of funds de-
scribed in paragraph (1), the Director of the 
Missile Defense Agency and the Under Secretary 
of Defense for Acquisition, Technology, and Lo-
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gistics shall jointly submit to the appropriate 
congressional committees— 
(i) a certification that the amended bi-
lateral international agreement specified in 
subparagraph (A) is being implemented as 
provided in such agreement; and 
(ii) an assessment detailing any risks 
relating to the implementation of such 
agreement. 
(b) ISRAELI COOPERATIVE MISSILE DEFENSE PRO-
GRAM CODEVELOPMENT AND COPRODUCTION.— 
(1) IN GENERAL.—Subject to paragraph (2), of 
the funds authorized to be appropriated for fiscal year 
2018 for procurement, Defense-wide, and available for 
the Missile Defense Agency— 
(A) not more than $221,500,000 may be 
provided to the Government of Israel to procure 
the David’s Sling Weapon System, including for 
coproduction of parts and components in the 
United States by United States industry; and 
(B) not more than $287,300,000 may be 
provided to the Government of Israel for the 
Arrow 3 Upper Tier Interceptor Program, in-
cluding for coproduction of parts and compo-
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nents in the United States by United States in-
dustry. 
(2) CERTIFICATION.— 
(A) CRITERIA.—Except as provided by 
paragraph (3), the Under Secretary of Defense 
for Acquisition, Technology, and Logistics shall 
submit to the appropriate congressional commit-
tees a certification that— 
(i) the Government of Israel has dem-
onstrated the successful completion of the 
knowledge points, technical milestones, and 
production readiness reviews required by 
the research, development, and technology 
agreements for the David’s Sling Weapon 
System and the Arrow 3 Upper Tier Devel-
opment Program, respectively; 
(ii) funds specified in subparagraphs 
(A) and (B) of paragraph (1) will be pro-
vided on the basis of a one-for-one cash 
match made by Israel for such respective 
systems or in another matching amount 
that otherwise meets best efforts (as mutu-
ally agreed to by the United States and 
Israel); 
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(iii) the United States has entered into 
a bilateral international agreement with 
Israel that establishes, with respect to the 
use of such funds— 
(I) in accordance with clause (iv), 
the terms of coproduction of parts and 
components of such respective systems 
on the basis of the greatest practicable 
coproduction of parts, components, and 
all-up rounds (if appropriate) by 
United States industry and minimizes 
nonrecurring 
engineering 
and 
facilitization expenses to the costs need-
ed for coproduction; 
(II) complete transparency on the 
requirement of Israel for the number of 
interceptors and batteries of such re-
spective systems that will be procured, 
including with respect to the procure-
ment plans, acquisition strategy, and 
funding profiles of Israel; 
(III) technical milestones for co-
production of parts and components 
and procurement of such respective sys-
tems; and 
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(IV) joint approval processes for 
third-party sales of such respective sys-
tems and the components of such re-
spective systems; 
(iv) the level of coproduction described 
in clause (iii)(I) for the Arrow 3 Upper 
Tier Interceptor Program and the David’s 
Sling Weapon System is not less than 50 
percent; and 
(v) there is a separate, clear plan for 
each of the David’s Sling Weapon System 
and the Arrow 3 Upper Tier Interceptor 
Program for improving the affordability of 
the respective system, and each such plan is 
approved by a United States-Israeli joint 
working group on cost-reduction for such re-
spective system. 
(B) NUMBER.—In carrying out subpara-
graph (A), the Under Secretary may submit— 
(i) one certification covering both the 
David’s Sling Weapon System and the 
Arrow 3 Upper Tier Interceptor Program; 
or 
(ii) separate certifications for each re-
spective system. 
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(C) TIMING.—The Under Secretary shall 
submit to the congressional defense committees 
the certification under subparagraph (A) by not 
later than 60 days before the funds specified in 
paragraph (1) for the respective system covered 
by the certification are provided to the Govern-
ment of Israel. 
(3) WAIVER.—The Under Secretary may waive 
the certification required by paragraph (2) if the 
Under Secretary certifies to the appropriate congres-
sional committees that the Under Secretary has re-
ceived sufficient data from the Government of Israel 
to demonstrate— 
(A) the funds specified in subparagraphs 
(A) and (B) of paragraph (1) are provided to 
Israel solely for funding the procurement of long- 
lead components and critical hardware in ac-
cordance with a production plan, including a 
funding profile detailing Israeli contributions for 
production, including long-lead production, of ei-
ther David’s Sling Weapon System or the Arrow 
3 Upper Tier Interceptor Program; 
(B) such long-lead components have success-
fully completed knowledge points, technical mile-
stones, and production readiness reviews; and 
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(C) the long-lead procurement will be con-
ducted in a manner that maximizes coproduc-
tion in the United States without incurring non-
recurring engineering activity or cost other than 
such activity or cost required for suppliers of the 
United States to start or restart production in 
the United States. 
(4) BRIEFING.—Not later than 30 days after the 
date on which both plans described in paragraph 
(2)(A)(v) are completed, the Under Secretary shall 
provide to the appropriate congressional committees a 
joint briefing on such plans. 
(c) LIMITATION ON AVAILABILITY OF FUNDING FOR 
CERTAIN ARROW 3 TESTING.—Of the funds authorized to 
be appropriated by this Act or otherwise made available 
for fiscal year 2018 for the Missile Defense Agency, not more 
than $105,000,000 may be obligated or expended for— 
(1) testing of the Arrow 3 Upper Tier Develop-
ment Program that is carried out at ranges located 
in the United States; and 
(2) expenses relating to such testing that the Di-
rector determines to be required and appropriate. 
(d) CROSS REFERENCE.—The amounts and purposes 
referred to in this section correspond to amounts specified 
for such purposes in the funding tables in division D. 
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(e) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means the following: 
(1) The congressional defense committees. 
(2) The Committee on Foreign Affairs of the 
House of Representatives and the Committee on For-
eign Relations of the Senate. 
SEC. 1688. REVIEW OF PROPOSED GROUND-BASED MID-
COURSE DEFENSE SYSTEM CONTRACT. 
(a) LIMITATION
ON
CHANGES
TO
CONTRACTING 
STRATEGY.—The Director of the Missile Defense Agency 
may not change the contracting strategy for the systems in-
tegration, operations, and test of the ground-based mid-
course defense system until the date on which— 
(1) the report under subsection (b)(3) is sub-
mitted to the congressional defense committees; and 
(2) a period of 30 days has elapsed following the 
date of such submission. 
(b) REVIEW.— 
(1) IN GENERAL.—The Director of Cost Assess-
ment and Program Evaluation shall conduct a review 
of the contract for the systems integration, operations, 
and test of the ground-based midcourse defense sys-
tem. Such review shall include the following: 
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(A) Contract performance of current indus-
try-led prime contract approach, including with 
respect to— 
(i) system readiness performance and 
reliability growth; 
(ii) 
development, 
integration, 
and 
fielding of new homeland defense capabili-
ties; and 
(iii) cost performance against baseline 
contract. 
(B) With respect to alternate contracting 
approaches— 
(i) an enumeration and detailing of 
any specific benefits for each such alternate 
approach; 
(ii) an identification of specific costs to 
switching to each such alternate approach; 
and 
(iii) detailing of the specific risks of 
each such alternate approach to homeland 
defense, including regarding schedule, costs, 
and the sustainment, maintenance, develop-
ment, and fielding, of integrated capabili-
ties. 
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(C) With respect to contracting approaches 
that transition to Federal Government-led sys-
tems engineering integration and test— 
(i) an enumeration of the processes, 
procedures, and command media that have 
been established by the Missile Defense 
Agency and proven to be effective for the 
execution of programs that are of the scale 
of the ground-based midcourse defense sys-
tem; and 
(ii) the manner in which a new con-
tract will control for growth in the per-
sonnel and support contracts of the Federal 
Government to support cost growth and 
minimize the risk of schedule delay. 
(D) A baseline for historical and current 
staffing of the ground-based midcourse defense 
system program, specifically with respect to per-
sonnel of the Federal Government, personnel of 
federally funded research and development cen-
ters, personnel of departments and agencies of 
the Federal Government, and support contrac-
tors. 
(E) Projections of the staffing categories 
specified in subparagraph (D) under a new con-
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tracting strategy and how such staffing cat-
egories will be limited to prevent significant cost 
growth and to minimize the risk of schedule 
delays. 
(F) The views and recommendations of the 
Director for any changes the current ground- 
based midcourse defense system contract or a 
new contract, including the proposed contracting 
strategy of the Missile Defense Agency. 
(G) Any other such matters the Director de-
termines appropriate. 
(2) TRANSMISSION.—The Director of Cost Assess-
ment and Program Evaluation shall transmit to the 
Under Secretary of Defense for Research and Engi-
neering and the Missile Defense Executive Board the 
review under paragraph (1). 
(3) REPORT.—Not later than 30 days after the 
date on which the Under Secretary and the Missile 
Defense Executive Board receive the review under 
paragraph (1), the Under Secretary and Board shall 
jointly submit to the congressional defense committees 
a report containing— 
(A) the review, without change; and 
(B) any views and recommendations of the 
Under Secretary and the Board on such review. 
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SEC. 1689. SENSE OF CONGRESS AND PLAN FOR DEVELOP-
MENT OF SPACE-BASED SENSOR LAYER FOR 
BALLISTIC MISSILE DEFENSE. 
(a) SENSE OF CONGRESS.—It is the sense of Congress 
that— 
(1) the defense of the homeland, the deployed 
members of the Armed Forces, and the allies of the 
United States against the threat of attack by ballistic 
and hypersonic missiles is the highest priority of the 
Missile Defense Agency; 
(2) the Missile Defense Agency, and the Defense 
Agencies 
and 
combat 
support 
agencies, 
must 
prioritize the design, development, and deployment of 
the space-based missile defense sensor layer; 
(3) a space-based missile defense sensor layer is 
essential for the future of the missile defense of the 
homeland, the deployed members of the Armed Forces, 
and the allies of the United States; and 
(4) such a space-based layer can, and should, 
benefit a multitude of other important defense and in-
telligence requirements, including targeting and space 
situational awareness. 
(b) DEVELOPMENT.—After the date on which the Di-
rector of the Missile Defense Agency submits the plan under 
subsection (c), the Director, in coordination with the Sec-
retary of the Air Force and the heads of the Defense Agen-
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cies and combat support agencies that the Director deter-
mines appropriate, shall develop a space-based ballistic 
missile defense sensor layer that— 
(1) provides missile defense engagement quality 
precision tracking data of the United States begin-
ning in the boost phase and continuing throughout 
subsequent flight regimes; and 
(2) serves other defense and intelligence require-
ments for intelligence, surveillance, and reconnais-
sance, including targeting and space situational 
awareness; and 
(3) achieves an operational prototype payload at 
the earliest practicable date. 
(c) SPACE-BASED MISSILE DEFENSE SENSOR LAYER 
PLAN.—Not later than one year after the date of the enact-
ment of this Act, the Director shall submit to the appro-
priate congressional committees a plan that includes— 
(1) how the Director will carry out subsection 
(b), including with respect to the estimated costs— 
(A) for the operational prototype payload 
specified in paragraph (3) of such subsection; 
and 
(B) to develop, acquire, and deploy, and the 
lifecycle costs to operate and sustain, a space- 
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based sensor layer and support systems to pro-
vide global missile defense coverage; 
(2) an assessment of the maturity of critical 
technologies necessary to make operational such a 
space-based sensor layer, and recommendations for 
any research and development activities to rapidly 
mature such technologies; 
(3) an assessment of what capabilities such a 
space-based sensor layer can contribute that other sen-
sor layers do not contribute; 
(4) how the Director will leverage the use of na-
tional technical means, commercially available space 
and terrestrial capabilities, hosted payloads, small 
satellites, and other capabilities to carry out sub-
section (b); and 
(5) any other matters the Director determines 
appropriate. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the congressional defense committees; 
and 
(B) the Select Committee on Intelligence of 
the Senate and the Permanent Select Committee 
on Intelligence of the House of Representatives. 
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(2) The term ‘‘combat support agency’’ has the 
meaning given that term in section 193(f) of title 10, 
United States Code. 
(3) The term ‘‘Defense Agency’’ has the meaning 
given that term in section 101(a)(11) of title 10, 
United States Code. 
SEC. 1690. SENSE OF CONGRESS AND PLAN FOR DEVELOP-
MENT OF SPACE-BASED BALLISTIC MISSILE 
INTERCEPT LAYER. 
(a) SENSE OF CONGRESS.—It is the sense of Congress 
that— 
(1) a space-based missile defense layer will ex-
ploit the natural advantages of space systems and in-
tegrate them into the ballistic missile defense system; 
and 
(2) these advantages include— 
(A) a 24/7 global presence to defend against 
asymmetric threats; 
(B) access to geographically denied areas; 
(C) an ability to close a global fire control 
loop for such system; 
(D) complementing existing terrestrial ca-
pabilities; and 
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(E) increasing the overall survivability and 
resilience of the entire national missile defense 
system. 
(b) DEVELOPMENT.—The Director of the Missile De-
fense Agency shall develop a space-based ballistic missile 
intercept layer to the ballistic missile defense system that 
is— 
(1) regionally focused; 
(2) capable of providing boost-phase defense; and 
(3) achieves an operational capability at the ear-
liest practicable date. 
(c) SPACE-BASED BALLISTIC MISSILE INTERCEPT 
LAYER PLAN.—Not later than one year after the date of 
the enactment of this Act, the Director shall submit to the 
appropriate congressional committees a plan to carry out 
subsection (b) during the five-year period following the date 
of the plan. Such plan shall include the following: 
(1) A concept definition phase consisting of mul-
tiple awarded contracts to identify feasible solutions 
consistent with architectural principles, performance 
goals, and price points established by the Director, 
such as contracts relating to— 
(A) refined requirements; 
(B) conceptual designs; 
(C) technology readiness assessments; 
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(D) critical technical and operational 
issues; 
(E) cost, schedule, performance estimates; 
and 
(F) risk reduction plans. 
(2) A technology risk reduction phase consisting 
of up to three competitively awarded contracts focused 
on maturing, integrating, and characterizing key 
technologies, algorithms, components, and sub-sys-
tems, such as contracts relating to— 
(A) refined concepts and designs; 
(B) engineering trade studies; 
(C) medium-to-high fidelity digital rep-
resentations of the space-based ballistic missile 
intercept weapon system; and 
(D) a proposed integration and test se-
quence that could potentially lead to a live-fire 
boost phase intercept during fiscal year 2022. 
(3) During the technology risk reduction phase, 
contractors will define proposed demonstrations to a 
preliminary design review level prior to a technology 
development phase down-select. 
(4) A technology development phase consisting of 
two competitively awarded contracts to mature the 
preferred space-based ballistic missile intercept weap-
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on system concepts and to potentially conduct a live- 
fire boost phase intercept fly-off during fiscal year 
2022 with brassboard hardware and prototype soft-
ware on a path to the operational goal. 
(5) A concurrent space-based ballistic missile 
intercept weapon system fire control test bed activity 
that incrementally incorporates modeling and simula-
tion elements, real-world data, hardware, algorithms, 
and systems to evaluate with increasing confidence 
the performance of evolving designs and concepts of 
such weapon system from target detection to intercept. 
(6) Any other matters the Director determines 
appropriate. 
(d) ESTABLISHMENT OF SPACE TEST BED.—In car-
rying out subsection (b), the Director of the Missile Defense 
Agency shall establish a space test bed to— 
(1) conduct research and development regarding 
options for a space-based defensive layer, including 
with respect to space-based interceptors and directed 
energy platforms; and 
(2) identify the most cost-efficient and promising 
technological solutions to implementing such layer. 
(e) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means— 
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(1) the congressional defense committees; and 
(2) the Select Committee on Intelligence of the 
Senate and the Permanent Select Committee on Intel-
ligence of the House of Representatives. 
SEC. 1691. LIMITATION ON AVAILABILITY OF FUNDS FOR 
GROUND-BASED MIDCOURSE DEFENSE ELE-
MENT OF THE BALLISTIC MISSILE DEFENSE 
SYSTEM. 
Of the funds authorized to be appropriated by this Act 
or otherwise made available for fiscal year 2018 for the 
ground-based midcourse defense element of the ballistic mis-
sile defense system, $50,000,000 may not be obligated or ex-
pended until the date on which the Secretary of Defense 
provides to the congressional defense committees— 
(1) a written certification that the risk of mis-
sion failure of ground-based midcourse interceptor en-
hanced kill vehicles due to foreign object debris has 
been minimized; or 
(2) if the certification under paragraph (1) can-
not be made, a briefing on the corrective measures 
that will be carried out to minimize such risk, includ-
ing— 
(A) a timeline for the implementation of the 
measures; and 
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(B) the estimated cost of implementing the 
measures. 
SEC. 1692. CONVENTIONAL PROMPT GLOBAL STRIKE WEAP-
ONS SYSTEM. 
(a) EARLY OPERATIONAL CAPABILITY.—The Secretary 
of Defense, in coordination with the Chairman of the Joint 
Chiefs of Staff, shall plan to reach early operational capa-
bility for the conventional prompt strike weapon system by 
not later than September 30, 2022. 
(b) LIMITATION ON AVAILABILITY OF FUNDS.—Of the 
funds authorized to be appropriated by this Act or otherwise 
made available for fiscal year 2018 for research, develop-
ment, test, and evaluation, Defense-wide, for the conven-
tional prompt global strike weapons system, not more than 
50 percent may be obligated or expended until the date on 
which the Chairman of the Joint Chiefs of Staff, in con-
sultation with the Chief of Staff of the Army, the Com-
mander of the United States European Command, the Com-
mander of the United States Pacific Command, and the 
Commander of the United States Strategic Command, sub-
mits to the congressional defense committees, a report on— 
(1) the required level of resources that is con-
sistent with the level of priority assigned to the asso-
ciated capability gap; 
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(2) the estimated period for the delivery of a me-
dium-range early operational capability, the required 
level of resources necessary to field a medium-range 
conventional prompt global strike weapon within the 
United States (including the territories and posses-
sions of the United States), and a detailed plan con-
sistent with the urgency of the associated capability 
gap across multiple platforms; 
(3) the joint performance requirements that— 
(A) ensure interoperability, where appro-
priate, between and among joint military capa-
bilities; and 
(B) are necessary, as designated by the 
Chairman of the Joint Chiefs of Staff, to fulfill 
capability gaps of more than one military de-
partment, Defense Agency, or other element of 
the Department; and 
(4) in coordination with the Secretary of De-
fense, any plan (including policy options) considered 
appropriate to address any potential risks of ambi-
guity from the launch or employment of such a capa-
bility. 
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SEC. 1693. DETERMINATION OF LOCATION OF CONTI-
NENTAL UNITED STATES INTERCEPTOR SITE. 
(a) DETERMINATION.—Not later than 30 days after the 
date on which the Ballistic Missile Defense Review is issued, 
the Secretary of Defense shall determine the location of a 
potential additional continental United States interceptor 
site. In making such determination, the Secretary shall con-
sider the full spectrum of contributing factors, including 
with respect to each of the following: 
(1) Strategic and operational effectiveness, in-
cluding with respect to the location that is the most 
advantageous site to the continental United States, 
including by having the capability to provide shoot- 
assess-shoot coverage to the entire continental United 
States. 
(2) Existing infrastructure at the location. 
(3) Economic impacts. 
(4) Public support. 
(5) Cost to construct and operate. 
(b) REPORT.—Not later than 30 days after making the 
determination described in subsection (a), the Secretary 
shall submit to the congressional defense committees a re-
port detailing all of the contributing factors considered by 
the Secretary in making such determination, including any 
other factors that the Secretary considered, including any 
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relevant recommendations of the Ballistic Missile Defense 
Review. 
Subtitle G—Other Matters 
SEC. 1695. PROTECTION OF CERTAIN FACILITIES AND AS-
SETS FROM UNMANNED AIRCRAFT. 
Subparagraph (C) of section 130i(e)(1) of title 10, 
United States Code, is amended to read as follows: 
‘‘(C)(i) relates to— 
‘‘(I) the nuclear deterrence 
mission of the Department of De-
fense, including with respect to 
nuclear command and control, in-
tegrated tactical warning and at-
tack assessment, and continuity of 
government; 
‘‘(II) the missile defense mis-
sion of the Department; or 
‘‘(III) the national security 
space mission of the Department; 
or 
‘‘(ii) is part of a Major Range 
and Test Facility Base (as defined in 
section 196(i) of this title).’’. 
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SEC. 1696. USE OF COMMERCIAL ITEMS IN DISTRIBUTED 
COMMON GROUND SYSTEMS. 
(a) IN GENERAL.—Except as provided in subsection 
(b), the procurement process for each covered Distributed 
Common Ground System shall be carried out in accordance 
with section 2377 of title 10, United States Code. 
(b) EXCEPTIONS.—Section 2377 of title 10, United 
States Code, shall not apply to the procurement of an item 
or service for a covered Distributed Common Ground Sys-
tem if the item or service— 
(1) is used to integrate the capabilities of the 
system with another information system, in a case in 
which such integration is required; or 
(2) is not available in an existing commercial 
product. 
(c) DEFINITIONS.—In this section: 
(1) APPROPRIATE CONGRESSIONAL COMMITTEES 
DEFINED.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the congressional defense committees; 
and 
(B) the Select Committee on Intelligence of 
the Senate and the Permanent Select Committee 
on Intelligence of the House of Representatives. 
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(2) COVERED DCGS SYSTEM.—The term ‘‘covered 
Distributed Common Ground System’’ includes the 
following: 
(A) The Distributed Common Ground Sys-
tem of the Army. 
(B) The Distributed Common Ground Sys-
tem of the Navy. 
(C) The Distributed Common Ground Sys-
tem of the Marine Corps. 
(D) The Distributed Common Ground Sys-
tem of the Air Force. 
(E) The Distributed Common Ground Sys-
tem of the Special Operations Forces. 
SEC. 1697. INDEPENDENT ASSESSMENT OF COSTS RELAT-
ING TO AMMONIUM PERCHLORATE. 
(a) ASSESSMENT.—Not later than 30 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall seek to enter into a contract with a federally funded 
research and development center to conduct an assessment 
of the costs to the Department of Defense relating to contrac-
tors and subcontractors of the Department using a new sup-
plier of ammonium perchlorate for weapon systems. 
(b) ELEMENTS.—The assessment under subsection (a) 
shall include the following: 
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(1) For each weapon system that must be re-
qualified by reason of the new supplier of ammonium 
perchlorate as described in subsection (a), an estimate 
of the requalification costs. 
(2) The types and number of tests that are need-
ed for any such requalification, including whether 
any currently planned tests, as of the date of the as-
sessment, may be leveraged, or testing across pro-
grams may be used, to decrease requalification costs 
while retaining and ensuring qualification standards. 
(3) Estimates of any other costs relating to am-
monium perchlorate that the Secretary determines ap-
propriate. 
(c) SUBMISSION.—Not later than 120 days after the 
date of the enactment of this Act, the Secretary shall submit 
to the congressional defense committees the assessment 
under subsection (a), without change, together with any 
comments or views of the Secretary regarding the assess-
ment. 
SEC. 1698. LIMITATION AND BUSINESS CASE ANALYSIS RE-
GARDING AMMONIUM PERCHLORATE. 
(a) IN GENERAL.—The Secretary of Defense, acting 
through the Director of Cost Assessment and Program Eval-
uation, shall conduct a business case analysis regarding the 
options of the Federal Government to ensure a robust do-
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mestic industrial base to supply ammonium perchlorate for 
use in solid rocket motors. Such analysis should include as-
sessments of the near and long-term costs, program impacts, 
opportunities for competition, opportunities for redundant 
or complementary capabilities, and national security im-
plications of— 
(1) continuing to rely on one domestic provider; 
(2) supporting development of a second domestic 
source; 
(3) procuring ammonium perchlorate as Govern-
ment-furnished material and providing it to all nec-
essary programs; and 
(4) such other options as the Secretary deter-
mines appropriate. 
(b) ELEMENTS.—The analysis under subsection (a) 
shall, at minimum, include— 
(1) an estimate of all associated costs, including 
development, procurement, and qualification costs, as 
applicable; 
(2) an assessment of options, under various sce-
narios, for the quantity of ammonium perchlorate 
that would be required by the Department of Defense; 
and 
(3) the assessment of the Secretary of how the re-
quirements for ammonium perchlorate of other Fed-
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eral agencies impact the requirements of the Depart-
ment of Defense. 
(c) REPORT.—The Secretary shall submit the business 
case analysis required by subsection (a) to the Comptroller 
General of the United States and the Committees on Armed 
Services of the Senate and House of Representatives by 
March 1, 2018, along with any views of the Secretary. 
(d) REVIEW.—The Comptroller General of the United 
States shall conduct a review of the report submitted by 
the Secretary under subsection (c) and, not later than 30 
days after receiving such report, provide a briefing on such 
review to the Committees on Armed Services of the Senate 
and House of Representatives. 
(e) LIMITATION.—None of the funds authorized to be 
appropriated by this Act or otherwise made available for 
fiscal year 2018 for the Department of Defense may be obli-
gated or expended for the development or construction of 
a new source for ammonium perchlorate until 45 days after 
the date on which the report under subsection (c) is sub-
mitted to the Comptroller General and the Committees on 
Armed Services of the Senate and House of Representatives. 
(f) WAIVER.—The Secretary of Defense may waive the 
limitation under subsection (e) if the Secretary— 
(1) determines such waiver to be in the national 
security interest of the United States; and 
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(2) submits written notification of such deter-
mination to the congressional defense committees and 
waits 15 days. 
SEC. 1699. INDUSTRIAL BASE FOR LARGE SOLID ROCKET 
MOTORS AND RELATED TECHNOLOGIES. 
(a) PLAN.—The Secretary of Defense, in consultation 
with the Administrator of the National Aeronautics and 
Space Administration, shall develop a plan to ensure a ro-
bust domestic industrial base for large solid rocket motors, 
including with respect to the critical technologies, sub-
systems, components, and materials within and relating to 
such rocket motors. 
(b) SUSTAINMENT
OF DOMESTIC SUPPLIERS.—The 
Secretary shall develop the plan under subsection (a) in a 
manner that, if carried out, sustains not less than two do-
mestic suppliers for each of the following: 
(1) Large solid rocket motors. 
(2) Small liquid-fueled rocket engines. 
(3) Aeroshells for reentry vehicles (or reentry 
bodies). 
(4) 
Strategic 
radiation-hardened 
microelec-
tronics. 
(5) Any other critical technologies, subsystems, 
components, and materials within and relating to 
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large solid rocket motors that the Secretary deter-
mines appropriate. 
(c) REPORT.— 
(1) SUBMISSION.—Not later than February 1, 
2018, the Secretary shall submit to the Committee on 
Armed Services and the Permanent Select Committee 
on Intelligence of the House of Representatives and 
the Committee on Armed Services of the Senate a re-
port that includes the plan under subsection (a). 
(2) MATTERS INCLUDED.—With respect to the 
sustainment of domestic suppliers as described in sub-
section (b), the report under paragraph (1) shall in-
clude the views of the Secretary on the following: 
(A) Such sustainment of not less than two 
domestic suppliers for each item specified in 
paragraphs (1) through (5) of such subsection. 
(B) The risks within the industrial base for 
each such item. 
(C) 
The 
estimated 
costs 
for 
such 
sustainment. 
(D) The opportunities to ensure or promote 
competition within the industrial base for each 
such item. 
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SEC. 1699A. PILOT PROGRAM ON ENHANCING INFORMA-
TION SHARING FOR SECURITY OF SUPPLY 
CHAIN. 
(a) ESTABLISHMENT.—Not later than June 1, 2019, 
the Secretary of Defense shall establish a pilot program to 
enhance information sharing with cleared defense contrac-
tors to ensure all source information is appropriately, sin-
gularly, and exclusively shared for the purpose of ensuring 
the security of the supply chain of covered programs. 
(b) SELECTION.—The Secretary shall select 10 acquisi-
tion or sustainment programs of the Department of Defense 
to participate in the pilot program under subsection (a), 
of which— 
(1) not fewer than one program shall be related 
to nuclear weapons; 
(2) not fewer than one program shall be related 
to nuclear command, control, and communications; 
(3) not fewer than one program shall be related 
to continuity of government; 
(4) not fewer than one program shall be related 
to ballistic missile defense; 
(5) not fewer than one program shall be related 
to other command and control systems; and 
(6) not fewer than one program shall be related 
to logistics. 
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(c) REPORT.—Not later than March 1, 2018, the Sec-
retary shall submit to the congressional defense committees 
a report that includes— 
(1) details on how the Secretary will establish 
the pilot program under subsection (a) to ensure all 
source information is appropriately, singularly, and 
exclusively shared for the purpose of ensuring the se-
curity of the supply chain of covered programs; and 
(2) the identification of any legislative action or 
administrative action required to provide the Sec-
retary with specific additional authorities required to 
fully implement the pilot program. 
(d) CLEARED DEFENSE CONTRACTORS DEFINED.—In 
this section, the term ‘‘cleared defense contractors’’ means 
contractors of the Department of Defense who have a secu-
rity clearance, including contractor facilities that have a 
security clearance. 
SEC. 1699B. COMMISSION TO ASSESS THE THREAT TO THE 
UNITED STATES FROM ELECTROMAGNETIC 
PULSE ATTACKS AND EVENTS. 
(a) ESTABLISHMENT.—There is hereby established a 
commission to be known as the ‘‘Commission to Assess the 
Threat to the United States from Electromagnetic Pulse At-
tacks and Events’’ (hereafter in this section referred to as 
the ‘‘Commission’’). The purpose of the Commission is to 
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assess and make recommendations with respect to the threat 
to the United States from electromagnetic pulse attacks and 
events. 
(b) COMPOSITION.— 
(1) MEMBERSHIP.—The Commission shall be 
composed of 12 members appointed as follows: 
(A) Three members appointed by the chair 
of the Committee on Armed Services of the House 
of Representatives. 
(B) Three members appointed by the rank-
ing minority member of the Committee on 
Armed Services of the House of Representatives. 
(C) Three members appointed by the chair 
of the Committee on Armed Services of the Sen-
ate. 
(D) Three members appointed by the rank-
ing minority member of the Committee on 
Armed Services of the Senate. 
(2) CHAIR AND VICE CHAIR.— 
(A) CHAIR.—The chair of the Committee on 
Armed Services of the House of Representative 
and the chair of the Committee on Armed Serv-
ices of the Senate shall jointly designate one 
member of the Commission to serve as chair of 
the Commission. 
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(B) VICE
CHAIR.—The ranking minority 
member of the Committee on Armed Services of 
the House of Representative and the ranking mi-
nority member of the Committee on Armed Serv-
ices of the Senate shall jointly designate one 
member of the Commission to serve as vice chair 
of the Commission. 
(3) SECURITY CLEARANCE REQUIRED.—Each in-
dividual appointed as a member of the Commission 
shall possess (or have recently possessed before the 
date of such appointment) the appropriate security 
clearance necessary to carry out the duties of the 
Commission. 
(4) QUALIFICATION.—Members of the Commis-
sion shall be appointed from among private United 
States citizens with knowledge and expertise in the 
scientific, technical, and defense aspects of electro-
magnetic pulse threats and vulnerabilities. 
(5) PERIOD
OF
APPOINTMENT; VACANCIES.— 
Members shall be appointed for the life of the Com-
mission. Any vacancy in the Commission shall be 
filled in the same manner as the original appoint-
ment. 
(c) DUTIES.— 
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(1) REVIEW
AND
ASSESSMENT.—The Commis-
sion shall review and assess— 
(A) the nature, magnitude, and likelihood of 
potential electromagnetic pulse (hereafter in sec-
tion referred to as ‘‘EMP’’) attacks and events, 
both manmade and natural, that could be di-
rected at or affect the United States within the 
next 20 years; 
(B) the vulnerability of United States mili-
tary and civilian systems to EMP attacks and 
events, including with respect to emergency pre-
paredness and immediate response; 
(C) the capability of the United States to 
repair and recover from damage inflicted on 
United States military and civilian systems by 
EMP attacks and events; and 
(D) the feasibility and cost of hardening 
critical military and civilian systems against 
EMP attack and events. 
(2) RECOMMENDATIONS.—The Commission shall 
recommend any actions it believes should be taken by 
the United States to better prepare, prevent, mitigate, 
or recover military and civilian systems with respect 
to EMP attacks and events. 
(d) COOPERATION FROM GOVERNMENT.— 
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(1) COOPERATION.—In carrying out its duties, 
the Commission shall receive the full and timely co-
operation of the Secretary of Defense and the perti-
nent heads of any other Federal agency in providing 
the Commission with analysis, briefings, and other 
information necessary for the fulfillment of its respon-
sibilities. 
(2) LIAISON.—The Secretary shall designate at 
least one officer or employee of the Department of De-
fense to serve as a liaison officer between the Depart-
ment and the Commission. 
(e) REPORT.— 
(1) FINAL REPORT.— 
(A) IN GENERAL.—Not later than December 
1, 2018, the Commission shall submit to the 
President, the Secretary of Defense, the Com-
mittee on Armed Services of the House of Rep-
resentatives, and the Committee on Armed Serv-
ices of the Senate a report on the findings, con-
clusions, and recommendations of the Commis-
sion. 
(B) FORM
OF
REPORT.—The report sub-
mitted to Congress under subparagraph (A) shall 
be submitted in unclassified form, but may in-
clude a classified annex. 
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(2) VIEWS OF THE SECRETARY.—Not later than 
90 days after the submittal of the report under para-
graph (1), the Secretary of Defense shall submit to the 
Committee on Armed Services of the House of Rep-
resentatives and the Committee on Armed Services of 
the Senate a report that contains the views of the Sec-
retary with respect to the findings, conclusions, and 
recommendations of the Commission and any actions 
the Secretary intends to take as a result. 
(3) INTERIM BRIEFING.—Not later than June 1, 
2018, the Commission shall provide to the Committee 
on Armed Services of the House of Representatives 
and the Committee on Armed Services of the Senate 
a briefing on the status of the activities of the Com-
mission, including a discussion of any interim rec-
ommendations. 
(f) FUNDING.—Of the amounts authorized to be appro-
priated by this Act for the Department of Defense, 
$3,000,000 is available to fund the activities of the Commis-
sion, as specified in the funding tables in division D. 
(g) APPLICATION OF FEDERAL ADVISORY COMMITTEE 
ACT.—The Federal Advisory Committee Act (5 U.S.C. 
App.) shall apply to the Commission. 
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(h) TERMINATION.—The Commission shall terminate 
three months after the date on which the Secretary of De-
fense submits the report under subsection (e)(2). 
(i) REPEAL.—Title XIV of Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (Public 
Law 106-398) is repealed. 
SEC. 1699C. PILOT PROGRAM ON ELECTROMAGNETIC SPEC-
TRUM MAPPING. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall establish a pilot program to assess the viability of 
space-based mapping of the electromagnetic spectrum used 
by the Department of Defense. 
(b) DURATION.—The authority of the Secretary to 
carry out the pilot program under subsection (a) shall ter-
minate on the date that is one year after the date of the 
enactment of this Act. 
(c) INTERIM BRIEFING.—Not later than 60 days after 
the date of enactment of this Act, the Secretary of Defense 
shall provide a briefing to the Committees on Armed Serv-
ices of the House of Representatives and the Senate (and 
to any other congressional defense committee upon request) 
demonstrating how the Secretary plans to implement the 
pilot program under subsection (a). 
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(d) FINAL BRIEFING.—Not later than 90 days after 
the pilot program under subsection (a) is completed, the 
Secretary shall provide a briefing to the Committees on 
Armed Services of the House of Representatives and the 
Senate (and to any other congressional defense committee 
upon request) on the utility, cost, and other considerations 
regarding the mapping of the electromagnetic spectrum used 
by the Department of Defense. 
TITLE XVII—MATTERS RELATING 
TO 
SMALL 
BUSINESS 
PRO-
CUREMENT 
Subtitle 
A—Improving 
Trans-
parency and Clarity for Small 
Businesses 
SEC. 1701. IMPROVING REPORTING ON SMALL BUSINESS 
GOALS. 
(a) IN GENERAL.—Section 15(h)(2)(E) of the Small 
Business Act (15 U.S.C. 644(h)(2)(E)) is amended— 
(1) in clause (i)— 
(A) in subclause (III), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclauses: 
‘‘(V) that were purchased by an-
other entity after the initial contract 
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was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns for purposes 
of the initial contract; and 
‘‘(VI) that were awarded using a 
procurement method that restricted 
competition to small business concerns 
owned and controlled by service-dis-
abled veterans, qualified HUBZone 
small business concerns, small business 
concerns owned and controlled by so-
cially and economically disadvantaged 
individuals, small business concerns 
owned and controlled by women, or a 
subset of any such concerns;’’; 
(2) in clause (ii)— 
(A) in subclause (IV), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclauses: 
‘‘(VI) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns owned and 
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controlled by service-disabled veterans 
for purposes of the initial contract; 
and 
‘‘(VII) that were awarded using a 
procurement method that restricted 
competition to qualified HUBZone 
small business concerns, small business 
concerns owned and controlled by so-
cially and economically disadvantaged 
individuals, small business concerns 
owned and controlled by women, or a 
subset of any such concerns;’’; 
(3) in clause (iii)— 
(A) in subclause (V), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclauses: 
‘‘(VII) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be qualified HUBZone small business 
concerns for purposes of the initial 
contract; and 
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‘‘(VIII) that were awarded using 
a procurement method that restricted 
competition to small business concerns 
owned and controlled by service-dis-
abled veterans, small business concerns 
owned and controlled by socially and 
economically disadvantaged individ-
uals, small business concerns owned 
and controlled by women, or a subset 
of any such concerns;’’; 
(4) in clause (iv)— 
(A) in subclause (V), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclauses: 
‘‘(VII) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns owned and 
controlled by socially and economically 
disadvantaged individuals for purposes 
of the initial contract; and 
‘‘(VIII) that were awarded using 
a procurement method that restricted 
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(B) in subclause (V), by inserting ‘‘and’’ at 
the end; and 
(C) by adding at the end the following new 
subclause: 
‘‘(VI) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns owned by a 
Native Hawaiian Organization for 
purposes of the initial contract;’’; 
(7) in clause (vii)— 
(A) in subclause (IV), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclause: 
‘‘(VI) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns owned by 
an Alaska Native Corporation for pur-
poses of the initial contract; and’’; and 
(8) in clause (viii)— 
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(A) in subclause (VII), by striking ‘‘and’’ at 
the end; 
(B) in subclause (VIII), by striking ‘‘and’’ 
at the end; and 
(C) by adding at the end the following new 
subclauses: 
‘‘(IX) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed to 
be small business concerns owned and 
controlled by women for purposes of the 
initial contract; and 
‘‘(X) that were awarded using a 
procurement method that restricted 
competition to small business concerns 
owned and controlled by service-dis-
abled veterans, qualified HUBZone 
small business concerns, small business 
concerns owned and controlled by so-
cially and economically disadvantaged 
individuals, or a subset of any such 
concerns; and’’. 
(b) EFFECTIVE DATE.—The Administrator of the 
Small Business Administration shall be required to report 
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on the information required by clauses (i)(V), (ii)(VI), 
(iii)(VII), (iv)(VII), (v)(VI), (vi)(VI), (vii)(VI), and 
(viii)(IX) of section 15(h)(2)(E) of the Small Business Act 
(15 U.S.C. 644(h)(2)(E)) beginning on the date that such 
information is available in the Federal Procurement Data 
System, the System for Award Management, or any new 
or successor system. 
SEC. 1702. UNIFORMITY IN PROCUREMENT TERMINOLOGY. 
(a) IN GENERAL.—Section 15(j)(1) of the Small Busi-
ness Act (15 U.S.C. 644(j)(1)) is amended by striking 
‘‘greater than $2,500 but not greater than $100,000’’ and 
inserting ‘‘greater than the micro-purchase threshold, but 
not greater than the simplified acquisition threshold’’. 
(b) TECHNICAL AMENDMENT.—Section 3(m) of the 
Small Business Act (15 U.S.C. 632(m)) is amended to read 
as follows: 
‘‘(m) DEFINITIONS RELATING TO CONTRACTING.—In 
this Act: 
‘‘(1) PRIME CONTRACT.—The term ‘prime con-
tract’ has the meaning given such term in section 
8701(4) of title 41, United States Code. 
‘‘(2) PRIME CONTRACTOR.—The term ‘prime con-
tractor’ has the meaning given such term in section 
8701(5) of title 41, United States Code. 
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‘‘(3) SIMPLIFIED
ACQUISITION
THRESHOLD.— 
The term ‘simplified acquisition threshold’ has the 
meaning given such term in section 134 of title 41, 
United States Code. 
‘‘(4) MICRO-PURCHASE THRESHOLD.—The term 
‘micro-purchase threshold’ has the meaning given such 
term in section 1902 of title 41, United States Code. 
‘‘(5) TOTAL
PURCHASES
AND
CONTRACTS
FOR 
PROPERTY AND SERVICES.—The term ‘total purchases 
and contracts for property and services’ shall mean 
total number and total dollar amount of contracts 
and orders for property and services.’’. 
SEC. 1703. RESPONSIBILITIES OF COMMERCIAL MARKET 
REPRESENTATIVES. 
Section 4(h) of the Small Business Act (15 U.S.C. 
633(h)) is amended to read as follows: 
‘‘(h) COMMERCIAL MARKET REPRESENTATIVES.— 
‘‘(1) DUTIES.—The principal duties of a com-
mercial market representative employed by the Ad-
ministrator and reporting to the senior official ap-
pointed by the Administrator with responsibilities 
under sections 8, 15, 31, and 36 (or the designee of 
such official) shall be to advance the policies estab-
lished in section 8(d)(1) relating to subcontracting. 
Such duties shall include— 
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‘‘(A) helping prime contractors to find 
small business concerns that are capable of per-
forming subcontracts; 
‘‘(B) for contractors awarded contracts con-
taining the clause described in section 8(d)(3), 
providing— 
‘‘(i) counseling on the contractor’s re-
sponsibility to maximize subcontracting op-
portunities for small business concerns; 
‘‘(ii) instruction on methods and tools 
to identify potential subcontractors that are 
small business concerns; and 
‘‘(iii) assistance to increase awards to 
subcontractors that are small business con-
cerns through visits, training, and reviews 
of past performance; 
‘‘(C) providing counseling on how a small 
business concern may promote its capacity to 
contractors awarded contracts containing the 
clause described in section 8(d)(3); and 
‘‘(D) conducting periodic reviews of con-
tractors awarded contracts containing the clause 
described in section 8(d)(3) to assess compliance 
with subcontracting plans required under section 
8(d)(6). 
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‘‘(2) CERTIFICATION REQUIREMENTS.— 
‘‘(A) IN GENERAL.—Consistent with the re-
quirements of subparagraph (B), a commercial 
market representative referred to in section 
15(q)(3) shall have a Level I Federal Acquisition 
Certification in Contracting (or any successor 
certification) or the equivalent Department of 
Defense certification. 
‘‘(B) DELAY OF CERTIFICATION REQUIRE-
MENT.—The certification described in subpara-
graph (A) is not required— 
‘‘(i) for any person serving as a com-
mercial market representative on the date of 
the enactment of this subsection, until the 
date that is one calendar year after the date 
such person was appointed as a commercial 
market representative; or 
‘‘(ii) for any person serving as a com-
mercial market representative on or before 
November 25, 2015, until November 25, 
2020. 
‘‘(3) JOB POSTING REQUIREMENTS.—The duties 
and certification requirements described in this sub-
section shall be included in any initial job posting for 
the position of a commercial market representative.’’. 
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SEC. 1704. RESPONSIBILITIES OF BUSINESS OPPORTUNITY 
SPECIALISTS. 
Section 4(g) of the Small Business Act (15 U.S.C. 
633(g)) is amended to read as follows: 
‘‘(g) BUSINESS OPPORTUNITY SPECIALISTS.— 
‘‘(1) DUTIES.—The exclusive duties of a Business 
Opportunity Specialist employed by the Adminis-
trator and reporting to the senior official appointed 
by the Administrator with responsibilities under sec-
tions 8, 15, 31, and 36 (or the designee of such offi-
cial) shall be to implement sections 7, 8, and 45 and 
to complete other duties related to contracting pro-
grams under this Act. Such duties shall include— 
‘‘(A) with respect to small business concerns 
eligible to receive contracts and subcontracts pur-
suant to section 8(a)— 
‘‘(i) providing guidance, counseling, 
and referrals for assistance with technical, 
management, financial, or other matters 
that will improve the competitive viability 
of such concerns; 
‘‘(ii) identifying causes of success or 
failure of such concerns; 
‘‘(iii) providing comprehensive assess-
ments of such concerns, including identi-
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fying the strengths and weaknesses of such 
concerns; 
‘‘(iv) monitoring and documenting 
compliance with the requirements of sec-
tions 7 and 8 and any regulations imple-
menting those sections; 
‘‘(v) explaining the requirements of sec-
tions 7, 8, 15, 31, 36, and 45; and 
‘‘(vi) advising on compliance with con-
tracting regulations (including the Federal 
Acquisition Regulation) after award of such 
a contract or subcontract; 
‘‘(B) reviewing and monitoring compliance 
with mentor-protege agreements under section 
45; 
‘‘(C) representing the interests of the Ad-
ministrator and small business concerns in the 
award, modification, and administration of con-
tracts and subcontracts awarded pursuant to sec-
tion 8(a); and 
‘‘(D) reporting fraud or abuse under section 
7, 8, 15, 31, 36, or 45 or any regulations imple-
menting such sections. 
‘‘(2) CERTIFICATION REQUIREMENTS.— 
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‘‘(A) IN GENERAL.—Consistent with the re-
quirements of subparagraph (B), a Business Op-
portunity Specialist described under section 
7(j)(10)(D) shall have a Level I Federal Acquisi-
tion Certification in Contracting (or any suc-
cessor certification) or the equivalent Depart-
ment of Defense certification. 
‘‘(B) DELAY OF CERTIFICATION REQUIRE-
MENT.—The certification described in subpara-
graph (A) is not required— 
‘‘(i) for any person serving as a Busi-
ness Opportunity Specialist on the date of 
the enactment of this subsection, until the 
date that is one calendar year after the date 
such person was appointed as a Business 
Opportunity Specialist; or 
‘‘(ii) for any person serving as a Busi-
ness Opportunity Specialist on or before 
January 3, 2013, until January 3, 2020. 
‘‘(3) JOB POSTING REQUIREMENTS.—The duties 
and certification requirements described in this sub-
section shall be included in any initial job posting for 
the position of a Business Opportunity Specialist.’’. 
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Subtitle B—Women’s Business 
Programs 
SEC. 1711. OFFICE OF WOMEN’S BUSINESS OWNERSHIP. 
Section 29(g) of the Small Business Act (15 U.S.C. 
656(g)) is amended— 
(1) in paragraph (2), by striking subparagraphs 
(B) and (C) and inserting the following: 
‘‘(B) RESPONSIBILITIES.—The responsibil-
ities of the Assistant Administrator shall be to 
administer the programs and services of the Of-
fice of Women’s Business Ownership. 
‘‘(C) DUTIES.—The Assistant Adminis-
trator shall perform the following functions with 
respect to the Office of Women’s Business Owner-
ship: 
‘‘(i) Recommend the annual adminis-
trative and program budgets of the Office 
and eligible entities receiving a grant under 
the Women’s Business Center Program. 
‘‘(ii) Review the annual budgets sub-
mitted by each eligible entity receiving a 
grant under the Women’s Business Center 
Program. 
‘‘(iii) Select applicants to receive 
grants to operate a women’s business center 
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after reviewing information required by this 
section, including the budget of each appli-
cant. 
‘‘(iv) Collaborate with other Federal 
departments and agencies, State and local 
governments, not-for-profit organizations, 
and for-profit enterprises to maximize utili-
zation of taxpayer dollars and reduce (or 
eliminate) any duplication among the pro-
grams overseen by the Office of Women’s 
Business Ownership and those of other enti-
ties that provide similar services to women 
entrepreneurs. 
‘‘(v) Maintain a clearinghouse to pro-
vide for the dissemination and exchange of 
information between women’s business cen-
ters. 
‘‘(vi) Serve as the vice chairperson of 
the Interagency Committee on Women’s 
Business Enterprise and as the liaison for 
the National Women’s Business Council.’’; 
and 
(2) by adding at the end the following: 
‘‘(3) MISSION.—The mission of the Office of 
Women’s Business Ownership shall be to assist women 
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entrepreneurs to start, grow, and compete in global 
markets by providing quality support with access to 
capital, access to markets, job creation, growth, and 
counseling by— 
‘‘(A) fostering participation of women en-
trepreneurs in the economy by overseeing a net-
work of women’s business centers throughout 
States and territories; 
‘‘(B) creating public-private partnerships to 
support women entrepreneurs and conducting 
outreach and education to startup and existing 
small business concerns owned and controlled by 
women; and 
‘‘(C) working with other programs overseen 
by the Administrator to ensure women are well- 
represented and being served and identifying 
gaps where participation by women could be in-
creased. 
‘‘(4) ACCREDITATION PROGRAM.— 
‘‘(A) ESTABLISHMENT.—Not later than 270 
days after the date of enactment of this para-
graph, the Administrator shall establish stand-
ards for an accreditation program for accred-
iting eligible entities receiving a grant under 
this section. 
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‘‘(B) TRANSITION
PROVISION.—Before the 
date on which standards are established under 
subparagraph (A), the Administrator may not 
terminate a grant under this section absent evi-
dence of fraud or other criminal misconduct by 
the recipient. 
‘‘(C) CONTRACTING
AUTHORITY.—The Ad-
ministrator may provide financial assistance, by 
contract or otherwise, to a relevant national 
women’s business center representative associa-
tion to provide assistance in establishing the 
standards required under subparagraph (A) or 
for carrying out an accreditation program pur-
suant to such standards.’’. 
SEC. 1712. WOMEN’S BUSINESS CENTER PROGRAM. 
(a) DEFINITIONS.—Section 29(a) of the Small Busi-
ness Act (15 U.S.C. 656(a)) is amended— 
(1) by striking paragraph (4); 
(2) by redesignating paragraphs (2) and (3) as 
paragraphs (3) and (4), respectively; 
(3) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) the term ‘eligible entity’ means— 
‘‘(A) an organization described in section 
501(c) of the Internal Revenue Code of 1986 and 
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exempt from taxation under section 501(a) of 
such Code; 
‘‘(B) a State, regional, or local economic de-
velopment organization, so long as the organiza-
tion certifies that grant funds received under this 
section will not be commingled with other funds; 
‘‘(C) an institution of higher education, un-
less such institution is currently receiving a 
grant under section 21; 
‘‘(D) a development, credit, or finance cor-
poration chartered by a State, so long as the cor-
poration certifies that grant funds received under 
this section will not be commingled with other 
funds; or 
‘‘(E) any combination of entities listed in 
subparagraphs (A) through (D);’’; and 
(4) by adding at the end the following: 
‘‘(5) the term ‘women’s business center’ means 
the location at which counseling and training on the 
management, operations (including manufacturing, 
services, and retail), access to capital, international 
trade, Government procurement opportunities, and 
any other matter is needed to start, maintain, or ex-
pand a small business concern owned and controlled 
by women.’’. 
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(b) AUTHORITY.—Section 29(b) of the Small Business 
Act (15 U.S.C. 656(b)) is amended— 
(1) by redesignating paragraphs (1), (2), and (3) 
as subparagraphs (A), (B), and (C), respectively, and 
adjusting the margins accordingly; 
(2) by striking ‘‘The Administration’’ and all 
that follows through ‘‘5-year projects’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—There is established a Wom-
en’s Business Center Program under which the Ad-
ministrator may provide a grant to any eligible enti-
ty to operate one or more women’s business centers’’; 
(3) by striking ‘‘The projects shall’’ and insert-
ing the following: 
‘‘(2) USE OF FUNDS.—The women’s business cen-
ters shall be designed to provide counseling and train-
ing that meets the needs of women, especially socially 
or economically disadvantaged women, and shall’’; 
and 
(4) by adding at the end the following: 
‘‘(3) AMOUNT OF GRANTS.— 
‘‘(A) IN GENERAL.—The amount of a grant 
provided under this subsection to an eligible en-
tity per project year shall be not more than 
$185,000 (as such amount is annually adjusted 
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by the Administrator to reflect the change in in-
flation). 
‘‘(B) ADDITIONAL GRANTS.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraph (A), with respect to an eligi-
ble entity that has received $185,000 under 
this subsection in a project year, the Ad-
ministrator may award an additional 
grant under this subsection of up to $65,000 
during such project year if the Adminis-
trator determines that the eligible entity— 
‘‘(I) agrees to obtain, after its ap-
plication has been approved and notice 
of award has been issued, cash con-
tributions from non-Federal sources of 
1 non-Federal dollar for each Federal 
dollar; 
‘‘(II) is in good standing with the 
Women’s Business Center Program; 
and 
‘‘(III) has met performance goals 
for the previous project year, if appli-
cable. 
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‘‘(ii) 
LIMITATIONS.—The 
Adminis-
trator may only award additional grants 
under clause (i)— 
‘‘(I) during the 3rd and 4th quar-
ters of the fiscal year; and 
‘‘(II) from unobligated amounts 
made available to the Administrator to 
carry out this section. 
‘‘(4) NOTICE
AND
COMMENT
REQUIRED.—The 
Administrator may only make a change to the stand-
ards by which an eligible entity obtains or maintains 
grants under this section, the standards for accredita-
tion, or any other requirement for the operation of a 
women’s business center if the Administrator first 
provides notice and the opportunity for public com-
ment, as set forth in section 553(b) of title 5, United 
States Code, without regard to any exceptions pro-
vided for under such section.’’. 
(c) CONDITIONS OF PARTICIPATION.—Section 29(c) of 
the Small Business Act (15 U.S.C. 656(c)) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘the recipient organization’’ 
and inserting ‘‘an eligible entity’’; and 
(B) by striking ‘‘financial assistance’’ and 
inserting ‘‘a grant’’; 
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(2) in paragraph (3)— 
(A) by striking ‘‘financial assistance au-
thorized pursuant to this section may be made 
by grant, contract, or cooperative agreement 
and’’ and inserting ‘‘grants authorized pursuant 
to this section’’; and 
(B) in the second sentence, by striking ‘‘a 
recipient organization’’ and inserting ‘‘an eligi-
ble entity’’; 
(3) in paragraph (4)— 
(A) by striking ‘‘recipient of assistance’’ 
and inserting ‘‘eligible entity’’; 
(B) by striking ‘‘during any project, it shall 
not be eligible thereafter’’ and inserting ‘‘during 
any project for 2 consecutive years, the eligible 
entity shall not be eligible at any time after that 
2-year period’’; 
(C) by striking ‘‘such organization’’ and in-
serting ‘‘the eligible entity’’; and 
(D) by striking ‘‘the recipient’’ and insert-
ing ‘‘the eligible entity’’; and 
(4) by adding at end the following: 
‘‘(5) SEPARATION OF PROJECT AND FUNDS.—An 
eligible entity shall— 
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‘‘(A) carry out a project under this section 
separately from other projects, if any, of the eli-
gible entity; and 
‘‘(B) separately maintain and account for 
any grants under this section. 
‘‘(6) EXAMINATION OF ELIGIBLE ENTITIES.— 
‘‘(A) REQUIRED SITE VISIT.—Each appli-
cant, prior to receiving a grant under this sec-
tion, shall have a site visit by an employee of the 
Administration, in order to ensure that the ap-
plicant has sufficient resources to provide the 
services for which the grant is being provided. 
‘‘(B) ANNUAL REVIEW.—An employee of the 
Administration shall— 
‘‘(i) conduct an annual review of the 
compliance of each eligible entity receiving 
a grant under this section with the grant 
agreement, including a financial examina-
tion; and 
‘‘(ii) provide such review to the eligible 
entity as required under subsection (l). 
‘‘(7) REMEDIATION OF PROBLEMS.— 
‘‘(A) PLAN OF ACTION.—If a review of an 
eligible entity under paragraph (6)(B) identifies 
any problems, the eligible entity shall, within 45 
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calendar days after receiving such review, pro-
vide the Assistant Administrator with a plan of 
action, including specific milestones, for cor-
recting such problems. 
‘‘(B) PLAN OF ACTION REVIEW BY THE AS-
SISTANT
ADMINISTRATOR.—The Assistant Ad-
ministrator shall review each plan of action sub-
mitted under subparagraph (A) within 30 cal-
endar days after receiving such plan and— 
‘‘(i) if the Assistant Administrator de-
termines that such plan will bring the eligi-
ble entity into compliance with all the 
terms of the grant agreement, approve such 
plan; or 
‘‘(ii) if the Assistant Administrator de-
termines that such plan is inadequate to 
remedy the problems identified in the an-
nual review to which the plan of action re-
lates, the Assistant Administrator shall set 
forth such reasons in writing and provide 
such determination to the eligible entity 
within 15 calendar days after such deter-
mination. 
‘‘(C) AMENDMENT TO PLAN OF ACTION.—An 
eligible entity receiving a determination under 
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subparagraph (B)(ii) shall have 30 calendar 
days after the receipt of the determination to 
amend the plan of action to satisfy the problems 
identified by the Assistant Administrator and re-
submit such plan to the Assistant Administrator. 
‘‘(D) AMENDED PLAN REVIEW BY THE AS-
SISTANT ADMINISTRATOR.—Within 15 calendar 
days after the receipt of an amended plan of ac-
tion under subparagraph (C), the Assistant Ad-
ministrator shall either approve or reject such 
plan and provide such approval or rejection in 
writing to the eligible entity. 
‘‘(E) APPEAL
OF
ASSISTANT
ADMINIS-
TRATOR DETERMINATION.— 
‘‘(i) IN GENERAL.—If the Assistant Ad-
ministrator rejects an amended plan under 
subparagraph (D), the eligible entity shall 
have the opportunity to appeal such deci-
sion to the Administrator, who may dele-
gate such appeal to an appropriate officer 
of the Administration. 
‘‘(ii) 
OPPORTUNITY
FOR
EXPLA-
NATION.—Any 
appeal 
described 
under 
clause (i) shall provide an opportunity for 
the eligible entity to provide, in writing, an 
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explanation of why the eligible entity’s plan 
remedies the problems identified in the an-
nual review. 
‘‘(iii) NOTICE
OF
DETERMINATION.— 
The determination of the appeal shall be 
provided to the eligible entity, in writing, 
within 15 calendar days after the eligible 
entity’s filing of the appeal. 
‘‘(iv) EFFECT OF FAILURE TO ACT.—If 
the Administrator fails to act on an appeal 
made under this subparagraph within the 
15 calendar day period specified under 
clause (iii), the eligible entity’s amended 
plan of action submitted under subpara-
graph (C) shall be deemed to be approved. 
‘‘(8) TERMINATION OF GRANT.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall require that, if an eligible entity fails to 
comply with a plan of action approved by the 
Assistant 
Administrator 
under 
paragraph 
(7)(B)(i) or an amended plan of action approved 
by the Assistant Administrator under paragraph 
(7)(D) or approved on appeal under paragraph 
(7)(E), the Assistant Administrator terminate 
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the grant provided to the eligible entity under 
this section. 
‘‘(B) APPEAL OF TERMINATION.—An eligi-
ble entity that has a grant terminated under 
subparagraph (A) shall have the opportunity to 
challenge the termination on the record and after 
an opportunity for a hearing. 
‘‘(C) FINAL
AGENCY
ACTION.—The deter-
mination made pursuant to subparagraph (B) 
shall be considered final agency action for the 
purposes of chapter 7 of title 5, United States 
Code.’’. 
(d) SUBMISSION OF 5-YEAR PLAN.—Section 29(e) of 
the Small Business Act (15 U.S.C. 656(e)) is amended— 
(1) by striking ‘‘applicant organization’’ and in-
serting ‘‘eligible entity’’; 
(2) by striking ‘‘a recipient organization’’ and 
inserting ‘‘an eligible entity’’; 
(3) by striking ‘‘financial assistance’’ and insert-
ing ‘‘grants’’; and 
(4) by striking ‘‘site’’. 
(e) APPLICATIONS
AND
CRITERIA
FOR
INITIAL 
GRANT.—Subsection (f) of section 29 of the Small Business 
Act (15 U.S.C. 656) is amended to read as follows: 
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‘‘(f) APPLICATIONS
AND
CRITERIA
FOR
INITIAL 
GRANT.— 
‘‘(1) APPLICATION.—Each eligible entity desiring 
a grant under subsection (b) shall submit to the Ad-
ministrator an application that contains— 
‘‘(A) a certification that the eligible enti-
ty— 
‘‘(i) has designated an executive direc-
tor or program manager, who may be com-
pensated using grant funds under subsection 
(b) or other sources, to manage the women’s 
business center for which a grant under sub-
section (b) is sought; and 
‘‘(ii) meets the accounting and report-
ing requirements established by the Director 
of the Office of Management and Budget; 
‘‘(B) information demonstrating that the el-
igible entity has the ability and resources to meet 
the needs of the market to be served by the wom-
en’s business center, including the ability to ob-
tain the non-Federal contribution required under 
subsection (c); 
‘‘(C) information relating to the assistance 
to be provided by the women’s business center in 
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ing an accreditation program, and post-award 
conference costs: 
‘‘(i) For the first fiscal year beginning 
after the date of the enactment of this sub-
paragraph, 2.65 percent. 
‘‘(ii) For the second fiscal year begin-
ning after the date of the enactment of this 
subparagraph and each fiscal year there-
after through fiscal year 2021, 2.5 percent.’’; 
and 
(4) in subsection (m)— 
(A) in paragraph (2), by striking ‘‘sub-
section (b) or (l)’’ and inserting ‘‘this subsection 
or subsection (b)’’; and 
(B) in paragraph (4)(D), by striking ‘‘or 
subsection (l)’’. 
(i) EFFECT ON EXISTING GRANTS.— 
(1) TERMS AND CONDITIONS.—A nonprofit orga-
nization receiving a grant under section 29(m) of the 
Small Business Act (15 U.S.C. 656(m)), as in effect 
on the day before the date of enactment of this Act, 
shall continue to receive the grant under the terms 
and conditions in effect for the grant on the day be-
fore the date of enactment of this Act, except that the 
nonprofit organization may not apply for a continu-
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ation of the grant under section 29(m)(5) of the 
Small Business Act (15 U.S.C. 656(m)(5)), as in ef-
fect on the day before the date of enactment of this 
Act. 
(2) LENGTH OF CONTINUATION GRANT.—The Ad-
ministrator of the Small Business Administration 
may award a grant under section 29(m) of the Small 
Business Act to a nonprofit organization receiving a 
grant under section 29(m) of the Small Business Act 
(15 U.S.C. 656(m)), as in effect on the day before the 
date of enactment of this Act, for the period— 
(A) beginning on the day after the last day 
of the grant agreement under such section 29(m); 
and 
(B) ending at the end of the third fiscal 
year beginning after the date of enactment of 
this Act. 
SEC. 1713. MATCHING REQUIREMENTS UNDER WOMEN’S 
BUSINESS CENTER PROGRAM. 
Section 29(c) of the Small Business Act (15 U.S.C. 
656(c)), as amended by this Act, is further amended by add-
ing at the end the following new paragraph: 
‘‘(9) WAIVER OF NON-FEDERAL SHARE.— 
‘‘(A) IN GENERAL.—Upon request by an eli-
gible entity, and in accordance with this para-
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graph, the Administrator may waive, in whole 
or in part, the requirement to obtain non-Fed-
eral funds under this subsection for counseling 
and training activities of the eligible entity car-
ried out using a grant under this section for a 
fiscal year. The Administrator may not waive 
the requirement for an eligible entity to obtain 
non-Federal funds under this paragraph for 
more than a total of 2 consecutive fiscal years. 
‘‘(B) 
CONSIDERATIONS.—In 
determining 
whether to waive the requirement to obtain non- 
Federal funds under this paragraph, the Admin-
istrator shall consider— 
‘‘(i) the economic conditions affecting 
the eligible entity; 
‘‘(ii) the impact a waiver under this 
paragraph would have on the credibility of 
the Women’s Business Center Program 
under this section; 
‘‘(iii) the demonstrated ability of the 
eligible entity to raise non-Federal funds; 
and 
‘‘(iv) the performance of the eligible en-
tity. 
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