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‘‘(D) for the acquisition of a military pur-
pose nondevelopmental item, as defined in sec-
tion 2410r of this title, if the contracting officer 
determines in writing that— 
‘‘(i) the contract, subcontract or modi-
fication will be a firm, fixed price type con-
tract; and 
‘‘(ii) the offeror has submitted suffi-
cient information to evaluate, through 
price analysis, the reasonableness of the 
price for the military purpose nondevelop-
mental item.’’. 
(c) EFFECTIVE DATE.—Section 2410r of title 10, 
United States Code, as added by subsection (a), and the 
amendment made by subsection (b), shall apply with re-
spect to contracts entered into after the date that is 120 
days after the date of the enactment of this Act. 
TITLE II—DEFENSE 
ACQUISITION WORKFORCE 
SEC. 201. ACQUISITION WORKFORCE EXCELLENCE. 
(a) IN GENERAL.— 
(1) ACQUISITION WORKFORCE EXCELLENCE.— 
Subchapter I of chapter 87 of title 10, United States 
Code, is amended by inserting after section 1701 the 
following new section:
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‘‘§ 1701a. Management for acquisition workforce ex-
cellence 
‘‘(a) PURPOSE.—The purpose of this chapter is to re-
quire the Department of Defense to develop and manage 
a highly skilled professional acquisition workforce— 
‘‘(1) in which excellence and contribution to 
mission is rewarded; 
‘‘(2) which has the technical expertise and busi-
ness skills to ensure the Department receives the 
best value for the expenditure of public resources; 
‘‘(3) which serves as a model for performance 
management of employees of the Department; and 
‘‘(4) which is managed in a manner that com-
plements and reinforces the performance manage-
ment of the defense acquisition system pursuant to 
chapter 149 of this title. 
‘‘(b) PERFORMANCE MANAGEMENT.—In order to 
achieve the purpose set forth in subsection (a), the Sec-
retary of Defense shall— 
‘‘(1) use the full authorities provided in sub-
sections (a) through (d) of section 9902 of title 5, 
including flexibilities related to performance manage-
ment and hiring and to training of managers; 
‘‘(2) require managers to develop performance 
plans for individual members of the acquisition 
workforce in order to give members an under-
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standing of how their performance contributes to 
their organization’s mission and the success of the 
defense acquisition system (as defined in section 
2545 of this title); 
‘‘(3) to the extent appropriate, use the lessons 
learned from the acquisition demonstration project 
carried out under section 1762 of this title related 
to contribution-based compensation and appraisal, 
and how those lessons may be applied within the 
General Schedule system; 
‘‘(4) develop attractive career paths; 
‘‘(5) encourage continuing education and train-
ing; 
‘‘(6) develop appropriate procedures for warn-
ings during performance evaluations and due process 
for members of the acquisition workforce who con-
sistently fail to meet performance standards; 
‘‘(7) take full advantage of the Defense Civilian 
Leadership Program established under section 1112 
of the National Defense Authorization Act for Fiscal 
Year 2010 (Public Law 111–84; 123 Stat. 2496; 10 
U.S.C. 1580 note prec.); 
‘‘(8) use the authorities for highly qualified ex-
perts under section 9903 of title 5, to hire experts 
who are skilled acquisition professionals to—
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‘‘(A) serve in leadership positions within 
the acquisition workforce to strengthen manage-
ment and oversight; 
‘‘(B) provide mentors to advise individuals 
within the acquisition workforce on their career 
paths and opportunities to advance and excel 
within the acquisition workforce; and 
‘‘(C) assist with the design of education 
and training courses and the training of indi-
viduals in the acquisition workforce; and 
‘‘(9) use the authorities for expedited security 
clearance processing pursuant to section 1564 of 
this title. 
‘‘(c) NEGOTIATIONS.—Any action taken by the Sec-
retary under this section, or to implement this section, 
shall be subject to the requirements of chapter 71 of title 
5. 
‘‘(d) REGULATIONS.—Any rules or regulations pre-
scribed pursuant to this section shall be deemed an agency 
rule or regulation under section 7117(a)(2) of title 5, and 
shall not be deemed a Government-wide rule or regulation 
under section 7117(a)(1) of such title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such subchapter is amend-
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ed by inserting after the item relating to section 
1701 the following new item: 
‘‘1701a. Management for acquisition workforce excellence.’’. 
(b) AUTHORITY
TO APPOINT HIGHLY QUALIFIED 
EXPERTS ON PART-TIME BASIS.—Section 9903(b)(1) of 
title 5, United States Code, is amended by inserting ‘‘, 
on a full-time or part-time basis,’’ after ‘‘positions in the 
Department of Defense’’ the first place it appears. 
SEC. 202. AMENDMENTS TO THE ACQUISITION WORKFORCE 
DEMONSTRATION PROJECT. 
(a) CODIFICATION INTO TITLE 10.— 
(1) IN
GENERAL.—Chapter 87 of title 10, 
United States Code, is amended by inserting after 
section 1761 the following new section: 
‘‘§ 1762. Demonstration project relating to certain ac-
quisition personnel management policies 
and procedures 
‘‘(a) COMMENCEMENT.—The Secretary of Defense is 
encouraged to carry out a demonstration project, the pur-
pose of which is to determine the feasibility or desirability 
of one or more proposals for improving the personnel man-
agement policies or procedures that apply with respect to 
the acquisition workforce of the Department of Defense 
and supporting personnel assigned to work directly with 
the acquisition workforce.
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‘‘(b) TERMS AND CONDITIONS.—(1) Except as other-
wise provided in this subsection, any demonstration 
project described in subsection (a) shall be subject to sec-
tion 4703 of title 5 and all other provisions of such title 
that apply with respect to any demonstration project 
under such section. 
‘‘(2) Subject to paragraph (3), in applying section 
4703 of title 5 with respect to a demonstration project 
described in subsection (a)— 
‘‘(A) ‘180 days’ in subsection (b)(4) of such 
section shall be deemed to read ‘120 days’; 
‘‘(B) ‘90 days’ in subsection (b)(6) of such sec-
tion shall be deemed to read ‘30 days’; and 
‘‘(C) subsection (d)(1) of such section shall be 
disregarded. 
‘‘(3) Paragraph (2) shall not apply with respect to 
a demonstration project unless— 
‘‘(A) for each organization or team partici-
pating in the demonstration project— 
‘‘(i) at least one-third of the workforce par-
ticipating in the demonstration project consists 
of members of the acquisition workforce; and 
‘‘(ii) at least two-thirds of the workforce 
participating in the demonstration project con-
sists of members of the acquisition workforce
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and supporting personnel assigned to work di-
rectly with the acquisition workforce; and 
‘‘(B) the demonstration project commences be-
fore October 1, 2007. 
‘‘(c) LIMITATION ON NUMBER OF PARTICIPANTS.— 
The total number of persons who may participate in the 
demonstration project under this section may not exceed 
120,000. 
‘‘(d) EFFECT OF REORGANIZATIONS.—The applica-
bility of paragraph (2) of subsection (b) to an organization 
or team shall not terminate by reason that the organiza-
tion or team, after having satisfied the conditions in para-
graph (3) of such subsection when it began to participate 
in a demonstration project under this section, ceases to 
meet one or both of the conditions set forth in subpara-
graph (A) of such paragraph (3) as a result of a reorga-
nization, restructuring, realignment, consolidation, or 
other organizational change. 
‘‘(e) ASSESSMENT.—(1) The Secretary of Defense 
shall designate an independent organization to review the 
acquisition workforce demonstration project described in 
subsection (a). 
‘‘(2) Such assessment shall include: 
‘‘(A) A description of the workforce included in 
the project.
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‘‘(B) An explanation of the flexibilities used in 
the project to appoint individuals to the acquisition 
workforce and whether those appointments are based 
on competitive procedures and recognize veteran’s 
preferences. 
‘‘(C) An explanation of the flexibilities used in 
the project to develop a performance appraisal sys-
tem that recognizes excellence in performance and 
offers opportunities for improvement. 
‘‘(D) The steps taken to ensure that such sys-
tem is fair and transparent for all employees in the 
project. 
‘‘(E) How the project allows the organization to 
better meet mission needs. 
‘‘(F) An analysis of how the flexibilities in sub-
paragraphs (B) and (C) are used, and what barriers 
have been encountered that inhibit their use. 
‘‘(G) Whether there is a process for— 
‘‘(i) ensuring ongoing performance feed-
back and dialogue among supervisors, man-
agers, and employees throughout the perform-
ance appraisal period; and 
‘‘(ii) setting timetables for performance ap-
praisals.
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‘‘(H) The project’s impact on career progres-
sion. 
‘‘(I) The project’s appropriateness or inappro-
priateness in light of the complexities of the work-
force affected. 
‘‘(J) The project’s sufficiency in terms of pro-
viding protections for diversity in promotion and re-
tention of personnel. 
‘‘(K) The adequacy of the training, policy 
guidelines, and other preparations afforded in con-
nection with using the project. 
‘‘(L) Whether there is a process for ensuring 
employee involvement in the development and im-
provement of the project. 
‘‘(3) The first such assessment under this subsection 
shall be completed not later than September 30, 2011, and 
subsequent assessments shall be completed every two 
years thereafter until the termination of the project. The 
Secretary shall submit to the covered congressional com-
mittees a copy of the assessment within 30 days after re-
ceipt by the Secretary of the assessment. 
‘‘(f) COVERED CONGRESSIONAL COMMITTEES.—In 
this section, the term ‘covered congressional committees’ 
means—
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‘‘(1) the Committees on Armed Services of the 
Senate and the House of Representatives; 
‘‘(2) the Committee on Homeland Security and 
Governmental Affairs of the Senate; and 
‘‘(3) the Committee on Oversight and Govern-
ment Reform of the House of Representatives. 
‘‘(g) TERMINATION OF AUTHORITY.—The authority 
to conduct a demonstration program under this section 
shall terminate on September 30, 2017. 
‘‘(h) CONVERSION.—Within 6 months after the au-
thority to conduct a demonstration project under this sec-
tion is terminated as provided in subsection (g), employees 
in the project shall convert to the civilian personnel system 
created pursuant to section 9902 of title 5.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of subchapter V of chapter 87 
of title 10, United States Code, is amended by in-
serting after the item relating to section 1761 the 
following new item: 
‘‘1762. Demonstration project relating to certain acquisition personnel manage-
ment policies and procedures.’’. 
(b) CONFORMING REPEAL.—Section 4308 of the Na-
tional Defense Authorization Act for Fiscal Year 1996 
(Public Law 104–106; 10 U.S.C. 1701 note) is repealed.
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SEC. 203. INCENTIVE PROGRAMS FOR CIVILIAN AND MILI-
TARY 
PERSONNEL 
IN 
THE 
ACQUISITION 
WORKFORCE. 
(a) IN GENERAL.—Chapter 87 of title 10, United 
States Code, is amended by inserting after section 1762, 
as added by section 202, the following new section: 
‘‘§ 1763. Incentive programs for civilian and military 
personnel in the acquisition workforce 
‘‘(a) CIVILIAN ACQUISITION WORKFORCE INCEN-
TIVES.—The Secretary of Defense, acting through the 
Under Secretary of Defense for Acquisition, Technology, 
and Logistics, shall provide for an enhanced system of in-
centives for the encouragement of excellence in the acqui-
sition workforce by providing rewards for employees who 
contribute to achieving the agency’s performance goals. 
The system of incentives shall include provisions that— 
‘‘(1) relate salary increases, bonuses, and 
awards to performance and contribution to the agen-
cy mission (including the extent to which the per-
formance of personnel in such workforce contributes 
to achieving the goals and standards established for 
acquisition programs pursuant to section 2545 of 
this title); 
‘‘(2) provide for consideration, in personnel 
evaluations and promotion decisions, of the extent to 
which the performance of personnel in such work-
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•HR 5136 EH1S 
force contributes to achieving such goals and stand-
ards; 
‘‘(3) use the Department of Defense Civilian 
Workforce Incentive Fund established pursuant to 
section 9902(a) of title 5; and 
‘‘(4) provide opportunities for career broad-
ening experiences for high performers. 
‘‘(b) MILITARY ACQUISITION WORKFORCE INCEN-
TIVES.—The Secretaries of the military departments shall 
fully use and enhance incentive programs that reward in-
dividuals, through recognition certificates or cash awards, 
for suggestions of process improvements that contribute 
to improvements in efficiency and economy and a better 
way of doing business.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of subchapter V of chapter 87 of title 
10, United States Code, is amended by inserting after the 
item relating to section 1762, as added by section 202, 
the following new item: 
‘‘1763. Incentive programs for civilian and military personnel in the acquisition 
workforce.’’. 
SEC. 204. CAREER DEVELOPMENT FOR CIVILIAN AND MILI-
TARY 
PERSONNEL 
IN 
THE 
ACQUISITION 
WORKFORCE. 
(a) CAREER PATHS.—
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(1) AMENDMENT.—Chapter 87 of title 10, 
United States Code, is amended by inserting after 
section 1722a the following new section: 
‘‘§ 1722b. Special requirements for civilian employees 
in the acquisition field 
‘‘(a) REQUIREMENT FOR POLICY AND GUIDANCE RE-
GARDING CIVILIAN PERSONNEL IN ACQUISITION.—The 
Secretary of Defense, acting through the Under Secretary 
of Defense for Acquisition, Technology, and Logistics, 
shall establish policies and issue guidance to ensure the 
proper development, assignment, and employment of civil-
ian members of the acquisition workforce to achieve the 
objectives specified in subsection (b). 
‘‘(b) OBJECTIVES.—Policies established and guidance 
issued pursuant to subsection (a) shall ensure, at a min-
imum, the following: 
‘‘(1) A career path in the acquisition field that 
attracts the highest quality civilian personnel, from 
either within or outside the Federal Government. 
‘‘(2) A deliberate workforce development strat-
egy that increases attainment of key experiences 
that contribute to a highly qualified acquisition 
workforce. 
‘‘(3) Sufficient opportunities for promotion and 
advancement in the acquisition field.
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‘‘(4) A sufficient number of qualified, trained 
members eligible for and active in the acquisition 
field to ensure adequate capacity, capability, and ef-
fective succession for acquisition functions, including 
contingency contracting, of the Department of De-
fense. 
‘‘(5) A deliberate workforce development strat-
egy that ensures diversity in promotion, advance-
ment, and experiential opportunities commensurate 
with the general workforce outlined in this section. 
‘‘(c) INCLUSION OF INFORMATION IN ANNUAL RE-
PORT.—The Secretary of Defense shall include in the re-
port to Congress required under section 115b(d) of this 
title the following information related to the acquisition 
workforce for the period covered by the report (which shall 
be shown for the Department of Defense as a whole and 
separately for the Army, Navy, Air Force, Marine Corps, 
Defense Agencies, and Office of the Secretary of Defense): 
‘‘(1) The total number of persons serving in the 
Acquisition Corps, set forth separately for members 
of the armed forces and civilian employees, by grade 
level and by functional specialty. 
‘‘(2) The total number of critical acquisition po-
sitions held, set forth separately for members of the 
armed forces and civilian employees, by grade level
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and by other appropriate categories (including by 
program manager, deputy program manager, and di-
vision head positions). For each such category, the 
report shall specify the number of civilians holding 
such positions compared to the total number of posi-
tions filled. 
‘‘(3) The number of employees to whom the re-
quirements of subsections (b)(2)(A) and (b)(2)(B) of 
section 1732 of this title did not apply because of 
the exceptions provided in paragraphs (1) and (2) of 
section 1732(c) of this title, set forth separately by 
type of exception. 
‘‘(4) The number of program managers and 
deputy program managers who were reassigned after 
completion of a major milestone occurring closest in 
time to the date on which the person has served in 
the position for four years (as required under section 
1734(b) of this title), and the proportion of those re-
assignments to the total number of reassignments of 
program managers and deputy program managers, 
set forth separately for program managers and dep-
uty program managers. The Secretary also shall in-
clude the average length of assignment served by 
program managers and deputy program managers so 
reassigned.
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‘‘(5) The number of persons, excluding those 
reported under paragraph (4), in critical acquisition 
positions who were reassigned after a period of three 
years or longer (as required under section 1734(a) 
of this title), and the proportion of those reassign-
ments to the total number of reassignments of per-
sons, excluding those reported under paragraph (4), 
in critical acquisition positions. 
‘‘(6) The number of times a waiver authority 
was exercised under section 1724(d), 1732(d), 
1734(d), or 1736(c) of this title or any other provi-
sion of this chapter (or other provision of law) which 
permits the waiver of any requirement relating to 
the acquisition workforce, and in the case of each 
such authority, the reasons for exercising the au-
thority. The Secretary may present the information 
provided under this paragraph by category or group-
ing of types of waivers and reasons.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of subchapter II of chapter 87 
of title 10, United States Code, is amended by in-
serting after the item relating to section 1722a the 
following new item: 
‘‘1722b. Special requirements for civilian employees in the acquisition field.’’. 
(b) CAREER EDUCATION AND TRAINING.—Chapter 
87 of title 10, United States Code, is amended in section
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1723 by redesignating subsection (b) as subsection (c) and 
inserting after subsection (a) the following new subsection: 
‘‘(b) CAREER PATH REQUIREMENTS.—For each ca-
reer path, the Secretary of Defense, acting through the 
Under Secretary of Defense for Acquisition, Technology, 
and Logistics shall establish requirements for the comple-
tion of course work and related on-the-job training and 
demonstration of qualifications in the critical acquisition- 
related duties and tasks of the career path. The Secretary 
of Defense, acting through the Under Secretary, shall 
also— 
‘‘(1) encourage individuals in the acquisition 
workforce to maintain the currency of their acquisi-
tion knowledge and generally enhance their knowl-
edge of related acquisition management disciplines 
through academic programs and other self-develop-
mental activities; and 
‘‘(2) develop key work experiences, including 
the creation of a program sponsored by the Depart-
ment of Defense that facilitates the periodic inter-
action between individuals in the acquisition work-
force and the end user in such end user’s environ-
ment to enhance the knowledge base of such work-
force, for individuals in the acquisition workforce so 
that the individuals may gain in-depth knowledge
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and experience in the acquisition process and become 
seasoned, well-qualified members of the acquisition 
workforce.’’. 
SEC. 205. RECERTIFICATION AND TRAINING REQUIRE-
MENTS. 
(a) CONTINUING EDUCATION.—Section 1723 of title 
10, United States Code, as amended by section 204, is 
further amended by amending subsection (a) to read as 
follows: 
‘‘(a) QUALIFICATION REQUIREMENTS.—(1) The Sec-
retary of Defense shall establish education, training and 
experience requirements for each acquisition position, 
based on the level of complexity of duties carried out in 
the position. In establishing such requirements, the Sec-
retary shall ensure the availability and sufficiency of train-
ing in all areas of acquisition, including additional training 
courses with an emphasis on services contracting, market 
research strategies (including assessments of local con-
tracting capabilities), long-term sustainment strategies, 
information technology, and rapid acquisition. 
‘‘(2) In establishing such requirements for positions 
other than critical acquisition positions designated pursu-
ant to section 1733 of this title, the Secretary may state 
the requirements by categories of positions.
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‘‘(3) The Secretary of Defense, acting through the 
Under Secretary of Defense for Acquisition, Technology, 
and Logistics, shall establish requirements for continuing 
education and periodic renewal of an individual’s certifi-
cation. Any requirement for a certification renewal shall 
not require a renewal more often than once every five 
years.’’. 
(b) STANDARDS FOR TRAINING.— 
(1) IN GENERAL.—Subchapter IV of Chapter 
87 of title 10, United States Code, is amended by 
adding at the end the following new section: 
‘‘§ 1748. Guidance and standards for acquisition 
workforce training 
‘‘(a) FULFILLMENT STANDARDS.—The Secretary of 
Defense, acting through the Under Secretary of Defense 
for Acquisition, Technology, and Logistics, shall develop 
fulfillment standards, and implement and maintain a pro-
gram, for purposes of the training requirements of sec-
tions 1723, 1724, and 1735 of this title. Such fulfillment 
standards shall consist of criteria for determining whether 
an individual has demonstrated competence in the areas 
that would be taught in the training courses required 
under those sections. If an individual meets the appro-
priate fulfillment standard, the applicable training re-
quirement is fulfilled.
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‘‘(b) GUIDANCE AND STANDARDS RELATING TO CON-
TRACTS FOR TRAINING.—The Secretary of Defense shall 
develop appropriate guidance and standards to ensure that 
the Department of Defense will continue, where appro-
priate and cost-effective, to enter into contracts for the 
training requirements of sections 1723, 1724, and 1735 
of this title, while maintaining appropriate control over the 
content and quality of such training.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such subchapter is amend-
ed by adding at the end the following new item: 
‘‘1748. Guidance and standards for acquisition workforce training.’’. 
(3) DEADLINE
FOR
FULFILLMENT
STAND-
ARDS.—The fulfillment standards required under 
section 1748(a) of title 10, United States Code, as 
added by paragraph (1), shall be developed not later 
than 90 days after the date of the enactment of this 
Act. 
(4) CONFORMING
REPEAL.—Section 853 of 
Public Law 105–85 (111 Stat. 1851) is repealed. 
SEC. 
206. 
INFORMATION 
TECHNOLOGY 
ACQUISITION 
WORKFORCE. 
(a) IN GENERAL.— 
(1) INFORMATION
TECHNOLOGY.—Subchapter 
II of chapter 87 of title 10, United States Code, is
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amended by adding at the end the following new sec-
tion: 
‘‘§ 1725. Information technology acquisition positions 
‘‘(a) PLAN REQUIRED.—The Secretary of Defense 
shall develop and carry out a plan to strengthen the part 
of the acquisition workforce that specializes in information 
technology. The plan shall include the following: 
‘‘(1) Defined targets for billets devoted to infor-
mation technology acquisition. 
‘‘(2) Specific certification requirements for indi-
viduals in the acquisition workforce who specialize in 
information technology acquisition. 
‘‘(3) Defined career paths for individuals in the 
acquisition workforce who specialize in information 
technology acquisitions. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) The term ‘information technology’ has the 
meaning provided such term in section 11101 of title 
40 and includes information technology incorporated 
into a major weapon system. 
‘‘(2) The term ‘major weapon system’ has the 
meaning provided such term in section 2379(f) of 
this title.’’.
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(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such subchapter is amend-
ed by adding at the end the following new item: 
‘‘1725. Information technology acquisition positions.’’. 
(b) DEADLINE.—The Secretary of Defense shall de-
velop the plan required under section 1725 of title 10, 
United States Code, as added by subsection (a), not later 
than 180 days after the date of the enactment of this Act. 
SEC. 207. DEFINITION OF ACQUISITION WORKFORCE. 
Section 101(a) of title 10, United States Code, is 
amended by inserting after paragraph (17) the following 
new paragraph: 
‘‘(18) The term ‘acquisition workforce’ means 
the persons serving in acquisition positions within 
the Department of Defense, as designated pursuant 
to section 1721(a) of this title.’’. 
SEC. 
208. 
DEFENSE 
ACQUISITION 
UNIVERSITY 
CUR-
RICULUM REVIEW. 
(a) CURRICULUM REVIEW.—Not later than one year 
after the date of the enactment of this Act, the Under 
Secretary of Defense for Acquisition, Technology, and Lo-
gistics shall lead a review of the curriculum offered by the 
Defense Acquisition University to ensure it adequately 
supports the training and education requirements of ac-
quisition professionals, particularly in service contracting, 
long term sustainment strategies, information technology,
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•HR 5136 EH1S 
and rapid acquisition. The review shall also involve the 
service acquisition executives of each military department. 
(b) ANALYSIS
OF FUNDING REQUIREMENTS
FOR 
TRAINING.—Following the review conducted under sub-
section (a), the Secretary of Defense shall analyze the 
most recent future-years defense program to determine 
the amounts of estimated expenditures and proposed ap-
propriations necessary to support the training require-
ments of the amendments made by section 205 of this Act, 
including any new training requirements determined after 
the review conducted under subsection (a). The Secretary 
shall identify any additional funding needed for such 
training requirements in the separate chapter on the de-
fense acquisition workforce required in the next annual 
strategic workforce plan under 115b of title 10, United 
States Code. 
(c) REQUIREMENT FOR ONGOING CURRICULUM DE-
VELOPMENT WITH CERTAIN SCHOOLS.— 
(1) REQUIREMENT.—Section 1746 of title 10, 
United States Code, is amended by adding at the 
end the following new subsection: 
‘‘(c) CURRICULUM DEVELOPMENT.—The President 
of the Defense Acquisition University shall work with the 
relevant professional schools and degree-granting institu-
tions of the Department of Defense and military depart-
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ments to ensure that best practices are used in curriculum 
development to support acquisition workforce positions.’’. 
(2) AMENDMENT TO SECTION HEADING.—(A) 
The heading of section 1746 of such title is amended 
to read as follows: 
‘‘§ 1746. Defense Acquisition University’’. 
(B) The item relating to section 1746 in the 
table of sections at the beginning of subchapter IV 
of chapter 87 of such title is amended to read as fol-
lows: 
‘‘1746. Defense Acquisition University.’’. 
SEC. 209. COST ESTIMATING INTERNSHIP AND SCHOLAR-
SHIP PROGRAMS. 
(a) PURPOSE.—The purpose of this section is to re-
quire the Department of Defense to develop internship 
and scholarship programs in cost estimating to underscore 
the importance of cost estimating, as a core acquisition 
function, to the acquisition process. 
(b) REQUIREMENT.—The Secretary of Defense shall 
develop intern and scholarship programs in cost esti-
mating for purposes of improving education and training 
in cost estimating and providing an opportunity to meet 
any certification requirements in cost estimating. 
(c) IMPLEMENTATION.—Such programs shall be es-
tablished not later than 270 days after the date of the
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enactment of this Act and shall be implemented for a 4- 
year period following establishment of the programs. 
SEC. 210. PROHIBITION ON PERSONAL SERVICES CON-
TRACTS FOR SENIOR MENTORS. 
(a) PROHIBITION.—The Secretary of Defense shall 
prohibit the award of a contract for personal services by 
any component of the Department of Defense for the pur-
pose of obtaining the services of a senior mentor. 
(b) INTERPRETATION.—Nothing in this section shall 
be interpreted to prohibit the employment of a senior men-
tor as a highly qualified expert pursuant to section 9903 
of title 5, United States Code, subject to the pay and term 
limitations of that section. A senior mentor employed as 
a highly qualified expert shall be required to submit a fi-
nancial disclosure report and comply with all conflict of 
interest laws and regulations applicable to other Federal 
employees with similar conditions of service. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘contract for personal services’’ 
means a contract awarded under the authority of 
section 129b(a) of title 10, United States Code, or 
section 3109 of title 5, United States Code. 
(2) The term ‘‘component of the Department of 
Defense’’ means a military department, a defense
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•HR 5136 EH1S 
agency, a Department of Defense field activity, a 
unified combatant command, or the joint staff. 
(3) The term ‘‘senior mentor’’ means any per-
son— 
(A)(i) who has served as a general or flag 
officer in the Armed Forces; or 
(ii) who has served in a position at a level 
at or above the level of the senior executive 
service; 
(B) has retired within the 10 years pre-
ceding the award of a contract; and 
(C) who serves as a mentor, teacher, train-
er, or advisor to government personnel on mat-
ters pertaining to the former official duties of 
such person. 
TITLE III—FINANCIAL 
MANAGEMENT 
SEC. 301. INCENTIVES FOR ACHIEVING AUDITABILITY. 
(a) PREFERENTIAL TREATMENT AUTHORIZED.—The 
Under Secretary of Defense (Comptroller) shall ensure 
that any component of the Department of Defense that 
the Under Secretary determines has financial statements 
validated as ready for audit earlier than September 30, 
2017, shall receive preferential treatment, as the Under 
Secretary determines appropriate—
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(1) in financial matter matters, including— 
(A) consistent with the need to fund ur-
gent warfighter requirements and operational 
needs, priority in the release of appropriated 
funds to such component; 
(B) relief from the frequency of financial 
reporting of such component in cases in which 
such reporting is not required by law; 
(C) relief from departmental obligation and 
expenditure thresholds to the extent that such 
thresholds establish requirements more restric-
tive than those required by law; or 
(D) such other measures as the Under 
Secretary considers appropriate; and 
(2) in the availability of personnel management 
incentives, including— 
(A) the size of the bonus pool available to 
the financial and business management work-
force of the component; 
(B) the rates of promotion within the fi-
nancial and business management workforce of 
the component; 
(C) awards for excellence in financial and 
business management; or
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(D) the scope of work assigned to the fi-
nancial and business management workforce of 
the component. 
(b) INCLUSION OF INFORMATION IN REPORT.—The 
Under Secretary shall include information on any measure 
initiated pursuant to this section in the next semiannual 
report pursuant to section 1003(b) of the National De-
fense Authorization Act for Fiscal Year 2010 (Public Law 
111–84; 123 Stat. 2439; 10 U.S.C. 2222 note) after such 
measure is initiated. 
(c) EXPIRATION.—This section shall expire on Sep-
tember 30, 2017. 
(d) DEFINITION.—In this section, the term ‘‘compo-
nent of the Department of Defense’’ means any organiza-
tion within the Department of Defense that is required 
to submit an auditable financial statement to the Sec-
retary of Defense. 
SEC. 302. MEASURES REQUIRED AFTER FAILURE TO 
ACHIEVE AUDITABILITY. 
(a) IN GENERAL.—The Secretary of Defense shall 
ensure that corrective measures are immediately taken to 
address the failure of a component of the Department of 
Defense to achieve a financial statement validated as 
ready for audit by September 30, 2017.
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(b) MEASURES REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
shall develop and issue guidance detailing measures to be 
taken in accordance with subsection (a). Such measures 
shall include— 
(1) the development of a remediation plan to 
ensure the component can achieve a financial state-
ment validated as ready for audit within one year; 
(2) additional reporting requirements that may 
be necessary to mitigate financial risk to the compo-
nent; 
(3) delaying the release of appropriated funds 
to such component, consistent with the need to fund 
urgent warfighter requirements and operational 
needs, until such time as the Secretary is assured 
that the component will achieve a financial state-
ment validated as ready for audit within one year; 
(4) specific consequences for key personnel in 
order to ensure accountability within the leadership 
of the component; and 
(5) such other measures as the Secretary con-
siders appropriate. 
(c) DEFINITION.—The term ‘‘component’’ of the De-
partment of Defense means any organization within the
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Department of Defense that is required to submit an 
auditable financial statement to the Secretary of Defense. 
SEC. 303. REVIEW OF OBLIGATION AND EXPENDITURE 
THRESHOLDS. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) Department of Defense program managers 
should be encouraged to place a higher priority on 
seeking the best value for the Government than on 
meeting arbitrary benchmarks for spending; and 
(2) actions to carry out paragraph (1) should 
be supported by the Department’s leadership at 
every level. 
(b) POLICY REVIEW.—Not later than 180 days after 
the date of the enactment of this Act, the Chief Manage-
ment Officer of the Department of Defense, in coordina-
tion with the Chief Management Officer of each military 
department, shall review and update as necessary all rel-
evant policy and instruction regarding obligation and ex-
penditure benchmarks to ensure that such guidance does 
not inadvertently prevent achieving the best value for the 
Government in the obligation and expenditure of funds. 
(c) PROCESS REVIEW.—Not later than one year after 
the date of the enactment of this Act, the Chief Manage-
ment Officer, in coordination with the Chief Management
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Officer of each military department, the Director of the 
Office of Performance Assessment and Root Cause Anal-
ysis, the Under Secretary of Defense (Comptroller), and 
the Comptrollers of the military departments, shall con-
duct a comprehensive review of the use and value of obli-
gation and expenditure benchmarks and propose new 
benchmarks or processes for tracking financial perform-
ance, including, as appropriate— 
(1) increased reliance on individual obligation 
and expenditure plans for measuring program finan-
cial performance; 
(2) mechanisms to improve funding stability 
and to increase the predictability of the release of 
funding for obligation and expenditure; and 
(3) streamlined mechanisms for a program 
manager to submit an appeal for funding changes 
and to have such appeal evaluated promptly. 
(d) TRAINING.—The Under Secretary of Defense for 
Acquisition, Technology, and Logistics and the Under Sec-
retary of Defense (Comptroller) shall ensure that as part 
of the training required for program managers and busi-
ness managers, an emphasis is placed on obligating and 
expending appropriated funds in a manner that achieves 
the best value for the Government and that the purpose
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and limitations of obligation and expenditure benchmarks 
are made clear. 
SEC. 304. DISCLOSURE AND TRACEABILITY OF THE COST 
OF DEPARTMENT OF DEFENSE HEALTH CARE 
CONTRACTS. 
(a) DISCLOSURE REQUIREMENT.—The Secretary of 
Defense shall require— 
(1) an offeror that submits a bid or proposal in 
response to an invitation for bids or a request for 
proposals issued by a component of the Department 
of Defense for a health care contract to submit with 
the bid or proposal a disclosure of the additional 
cost, if any, contained in such bid or proposal associ-
ated with compliance with the Patient Protection 
and Affordable Care Act (Public Law 111–148) and 
the Health Care and Education Reconciliation Act of 
2010 (Public Law 111–152); and 
(2) a contractor for a health care contract 
awarded following the date of the enactment of this 
Act to disclose on an annual basis the additional 
cost, if any, incurred for such contract associated 
with compliance with the Patient Protection and Af-
fordable Care Act (Public Law 111–148) and the 
Health Care and Education Reconciliation Act of 
2010 (Public Law 111–152).
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(c) HEALTH CARE CONTRACT DEFINED.—In this 
section, the term ‘‘health care contract’’ means a contract 
in an amount greater than the simplified acquisition 
threshold for the acquisition of any of the following: 
(1) Medical supplies. 
(2) Health care services and administration, in-
cluding the services of medical personnel. 
(3) Durable medical equipment. 
(4) Pharmaceuticals. 
(5) Health care-related information technology. 
TITLE IV—INDUSTRIAL BASE 
SEC. 401. EXPANSION OF THE INDUSTRIAL BASE. 
(a) PROGRAM TO EXPAND INDUSTRIAL BASE RE-
QUIRED.—The Secretary of Defense shall establish a pro-
gram to expand the industrial base of the Department of 
Defense to increase the Department’s access to innovation 
and the benefits of competition. The program shall be lim-
ited to firms within the national technology and industrial 
base (as defined in section 2500(1) of title 10, United 
States Code). 
(b) IDENTIFYING AND COMMUNICATING WITH NON-
TRADITIONAL
SUPPLIERS.—The program established 
under subsection (a) shall use tools and resources available 
within the Federal Government and available from the pri-
vate sector, to provide a capability for identifying and
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communicating with nontraditional suppliers, including 
commercial firms and firms of all business sizes, that are 
engaged in markets of importance to the Department of 
Defense. 
(c) OUTREACH TO LOCAL FIRMS NEAR DEFENSE IN-
STALLATIONS.—The program established under sub-
section (a) shall include outreach, using procurement tech-
nical assistance centers, to notify firms of all business 
sizes in the vicinity of Department of Defense installations 
of opportunities to obtain contracts and subcontracts to 
perform work at such installations. 
(d) INDUSTRIAL BASE REVIEW.—The program re-
quired by subsection (a) shall include a continuous effort 
to review the industrial base supporting the Department 
of Defense, including the identification of markets of im-
portance to the Department of Defense. 
(e) DEFINITION.—In this section: 
(1) NONTRADITIONAL
SUPPLIERS.—The term 
‘‘nontraditional suppliers’’ means firms that have re-
ceived contracts from the Department of Defense 
with a total value of not more than $100,000 in the 
previous five years. 
(2) MARKETS
OF
IMPORTANCE
TO
THE
DE-
PARTMENT
OF
DEFENSE.—The term ‘‘markets of 
importance to the Department of Defense’’ means
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industrial sectors in which the Department of De-
fense spends more than $500,000,000 annually. 
(3) PROCUREMENT
TECHNICAL
ASSISTANCE 
CENTER.—The term ‘‘procurement technical assist-
ance center’’ means a center operating under a coop-
erative agreement with the Defense Logistics Agency 
to provide procurement technical assistance pursu-
ant to the authority provided in chapter 142 of title 
10, United States Code. 
SEC. 402. COMMERCIAL PRICING ANALYSIS. 
Section 803(c) of the Strom Thurmond National De-
fense Authorization Act for Fiscal Year 1999 (Public Law 
105–261; 10 U.S.C. 2306a note) is amended to read as 
follows: 
‘‘(c) COMMERCIAL PRICE TREND ANALYSIS.— 
‘‘(1) The Secretary of Defense shall develop and 
implement procedures that, to the maximum extent 
practicable, provide for the collection and analysis of 
information on price trends for categories of exempt 
commercial items described in paragraph (2). 
‘‘(2) A category of exempt commercial items re-
ferred to in paragraph (1) consists of exempt com-
mercial items that are in a single Federal Supply 
Group or Federal Supply Class, are provided by a 
single contractor, or are otherwise logically grouped
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for the purpose of analyzing information on price 
trends. 
‘‘(3) The analysis of information on price 
trends under paragraph (1) shall include, in any cat-
egory in which significant escalation in prices is 
identified, a more detailed examination of the causes 
of escalation for such prices within the category and 
whether such price escalation is consistent across the 
Department of Defense. 
‘‘(4) The head of a Department of Defense 
agency or the Secretary of a military department 
shall take appropriate action to address any unjusti-
fied escalation in prices being paid for items pro-
cured by that agency or military department as iden-
tified in an analysis conducted pursuant to para-
graph (1). 
‘‘(5) Not later than April 1 of each of year, the 
Secretary of Defense shall submit to the Committee 
on Armed Services of the Senate and the Committee 
on Armed Services of the House of Representatives 
a report on the analyses of price trends that were 
conducted for categories of exempt commercial items 
during the preceding fiscal year under the proce-
dures prescribed pursuant to paragraph (1). The re-
port shall include a description of the actions taken
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to identify and address any unjustified price esca-
lation for the categories of items. 
‘‘(6) This subsection shall not be in effect on 
and after April 1, 2013.’’. 
SEC. 403. CONTRACTOR AND GRANTEE DISCLOSURE OF DE-
LINQUENT FEDERAL TAX DEBTS. 
(a) REQUIREMENT.— 
(1) IN
GENERAL.—Chapter 37 of title 31, 
United States Code, is amended by adding at the 
end of subchapter II the following new section: 
‘‘§ 3720F. Contractor and grantee disclosure of delin-
quent Federal tax debts 
‘‘(a) REQUIREMENT RELATING
TO CONTRACTS.— 
The head of any executive agency that issues an invitation 
for bids or a request for proposals for a contract in an 
amount greater than the simplified acquisition threshold 
shall require each person that submits a bid or proposal 
to submit with the bid or proposal a form— 
‘‘(1) certifying that the person does not have a 
seriously delinquent tax debt; and 
‘‘(2) authorizing the Secretary of the Treasury 
to disclose to the head of the agency information 
strictly limited to verifying whether the person has 
a seriously delinquent tax debt.
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‘‘(b) REQUIREMENT RELATING
TO GRANTS.—The 
head of any executive agency that offers a grant in excess 
of an amount equal to the simplified acquisition threshold 
may not award such grant to any person unless such per-
son submits with the application for such grant a form— 
‘‘(1) certifying that the person does not have a 
seriously delinquent tax debt; and 
‘‘(2) authorizing the Secretary of the Treasury 
to disclose to the head of the executive agency infor-
mation strictly limited to verifying whether the per-
son has a seriously delinquent tax debt. 
‘‘(c) FORM FOR RELEASE OF INFORMATION.—The 
Secretary of the Treasury shall make available to all exec-
utive agencies a standard form for the certification and 
authorization described in subsections (a) and (b). 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) CONTRACT.—The term ‘contract’ means a 
binding agreement entered into by an executive 
agency for the purpose of obtaining property or serv-
ices, but does not include— 
‘‘(A) a contract for property or services 
that is intended to be entered into through the 
use of procedures other than competitive proce-
dures by reason of section 2304(c)(2) of this 
title; or