TITLE III—FINANCIAL MANAGEMENT 
Sec. 301. Incentives for achieving auditability. 
Sec. 302. Measures required after failure to achieve auditability. 
Sec. 303. Review of obligation and expenditure thresholds. 
Sec. 304. Disclosure and traceability of the cost of Department of Defense 
health care contracts. 
TITLE IV—INDUSTRIAL BASE 
Sec. 401. Expansion of the industrial base. 
Sec. 402. Commercial pricing analysis. 
Sec. 403. Contractor and grantee disclosure of delinquent Federal tax debts. 
Sec. 404. Independence of contract audits and business system reviews. 
Sec. 405. Blue ribbon panel on eliminating barriers to contracting with the De-
partment of Defense. 
Sec. 406. Inclusion of the providers of services and information technology in 
the national technology and industrial base. 
Sec. 407. Construction of Act on competition requirements for the acquisition 
of services. 
Sec. 408. Acquisition Savings Program. 
Sec. 409. Sense of Congress regarding compliance with the Berry Amendment, 
the Buy American Act, and labor standards of the United 
States. 
Sec. 410. Industrial Base Council and Fund. 
TITLE V—OTHER MATTERS 
Sec. 501. Clothing allowance requirement. 
Sec. 502. Requirement that cost or price to the Federal Government be given 
at least equal importance as technical or other criteria in evalu-
ating competitive proposals for defense contracts. 
TITLE I—DEFENSE ACQUISITION 
SYSTEM 
SEC. 101. PERFORMANCE MANAGEMENT OF THE DEFENSE 
ACQUISITION SYSTEM. 
(a) PERFORMANCE MANAGEMENT OF THE DEFENSE 
ACQUISITION SYSTEM.— 
(1) IN GENERAL.—Part IV of title 10, United 
States Code, is amended by inserting after chapter 
148 the following new chapter:
‘‘CHAPTER 149—PERFORMANCE MANAGE-
MENT OF THE DEFENSE ACQUISITION 
SYSTEM 
‘‘Sec. 
‘‘2545. Performance assessments of the defense acquisition system. 
‘‘2546. Audits of performance assessments. 
‘‘2547. Use of performance assessments for managing performance. 
‘‘2548. Acquisition-related functions of the Chiefs of Staff of the armed forces. 
‘‘§ 2545. Performance assessments of the defense ac-
quisition system 
‘‘(a) PERFORMANCE ASSESSMENTS REQUIRED.—(1) 
The Secretary of Defense shall ensure that all elements 
of the defense acquisition system are subject to regular 
performance assessments— 
‘‘(A) to determine the extent to which such ele-
ments deliver appropriate value to the Department 
of Defense; and 
‘‘(B) to enable senior officials of the Depart-
ment of Defense to manage the elements of the de-
fense acquisition system to maximize their value to 
the Department. 
‘‘(2) The performance of each element of the defense 
acquisition system shall be assessed as needed, but not 
less often than annually. 
‘‘(3) The Secretary shall ensure that the performance 
assessments required by this subsection are appropriately 
tailored to reflect the diverse nature of defense acquisition 
so that the performance assessment of each element of the
defense acquisition system accurately reflects the work 
performed by such element. 
‘‘(b) SYSTEMWIDE CATEGORIES.—(1) The Secretary 
of Defense shall establish categories of metrics for the de-
fense acquisition system, including, at a minimum, cat-
egories relating to cost, quality, delivery, workforce, and 
policy implementation that apply to all elements of the de-
fense acquisition system. 
‘‘(2) The Secretary of Defense shall issue guidance 
for service acquisition executives within the Department 
of Defense on the establishment of metrics, and goals and 
standards relating to such metrics, within the categories 
established by the Secretary under paragraph (1) to en-
sure that there is sufficient uniformity in performance as-
sessments across the defense acquisition system so that 
elements of the defense acquisition system can be mean-
ingfully compared. 
‘‘(c) METRICS, GOALS, AND STANDARDS.—(1) Each 
service acquisition executive of the Department of Defense 
shall establish metrics to be used in the performance as-
sessments required by subsection (a) for each element of 
the defense acquisition system for which such executive 
is responsible within the categories established by the Sec-
retary under subsection (b). Such metrics shall be appro-
priately tailored pursuant to subsection (a)(3) and may 
include measures of— 
‘‘(A) cost, quality, and delivery; 
‘‘(B) contractor performance, including compli-
ance with the Department of Defense policy regard-
ing the participation of small business concerns 
owned and controlled by socially and economically 
disadvantaged individuals, veteran-owned small busi-
nesses, service-disabled, veteran-owned small busi-
nesses, and women-owned small businesses; 
‘‘(C) excessive use of contract bundling and 
availability of non-bundled contract vehicles; 
‘‘(D) workforce quality and program manager 
tenure (where applicable); 
‘‘(E) the quality of market research; 
‘‘(F) appropriate use of integrated testing; 
‘‘(G) appropriate consideration of long-term 
sustainment and energy efficiency; and 
‘‘(H) appropriate acquisition of technical data 
and other rights and assets necessary to support 
long-term sustainment. 
‘‘(2) Each service acquisition executive within the De-
partment of Defense shall establish goals and standards 
(including, at a minimum, a threshold standard and an 
objective goal) for each metric established under para-