993 
ernment and private contracts (as described in 
section 15.305(a)(2)(ii) of the Federal Acquisi-
tion Regulation), in the acquisition of commer-
cial products or commercial services. 
(b) REPORT.—Not later than 180 days after the enact-
ment of this Act, the Secretary of Defense shall submit to 
the congressional defense committees a report that— 
(1) describes the findings of the review required 
by subsection (a)(1); 
(2) describes the corrective actions taken by the 
Secretary to address the issues identified pursuant to 
such review, including any findings of noncompliance 
by the Department of Defense with the requirements 
of the Federal Acquisition Streamlining Act of 1994 
(Public Law 103–355) or any other statutory or regu-
latory requirements related to advancing and ena-
bling the procurement of commercial products and 
commercial services; and 
(3) includes any recommendations of the Sec-
retary on actions that Congress may take to better en-
able to the Department of Defense to take advantage 
of the benefits of acquiring commercial products and 
commercial services. 
(c) CLARIFYING AMENDMENTS.— 
VerDate Sep 11 2014 
20:10 Aug 19, 2025
Jkt 059200
PO 00000
Frm 00993
Fmt 6652
Sfmt 6203
E:\BILLS\H3838.RH
H3838
ssavage on LAPJG3WLY3PROD with BILLS
994 
(1) TREATMENT OF MAJOR WEAPON SYSTEMS.— 
Section 3455 of title 10, United States Code, is 
amended— 
(A) in subsection (c)(1), by striking ‘‘may’’ 
and inserting ‘‘shall’’; 
(B) by amending subsection (d) to read as 
follows: 
‘‘(d) APPLICABILITY OF TRUTHFUL COST OR PRICING 
DATA REQUIREMENTS.—A product treated as a commercial 
product or purchased under procedures established for the 
procurement of commercial products under subsection (a) 
shall be treated as a commercial product for the purposes 
of chapter 271 of this title.’’; and 
(C) in subsection (e), by striking ‘‘Deputy 
Secretary of Defense’’ and inserting ‘‘Under Sec-
retary 
of 
Defense 
for 
Acquisition 
and 
Sustainment’’. 
(2) COST OR PRICING DATA EXCEPTIONS.—Sec-
tion 3703(a)(1) of title 10, United States Code, is 
amended by amending subparagraph (A) to read as 
follows: 
‘‘(A) adequate price competition; or’’. 
VerDate Sep 11 2014 
20:10 Aug 19, 2025
Jkt 059200
PO 00000
Frm 00994
Fmt 6652
Sfmt 6203
E:\BILLS\H3838.RH
H3838
ssavage on LAPJG3WLY3PROD with BILLS
995 
Subtitle D—Matters Relating to 
Commercial Innovation 
SEC. 1831. AMENDMENT TO OTHER TRANSACTION AUTHOR-
ITY. 
(a) IN GENERAL.—Section 4022 of title 10, United 
States Code, is amended— 
(1) in subsection (a)(2)— 
(A) in subparagraph (A), by striking ‘‘agen-
cy that’’ and all that follows through ‘‘the use’’ 
and inserting ‘‘agency that the use’’; 
(B) in subparagraph (B)— 
(i) in clause (i), by striking ‘‘writing 
that’’ and all that follows through ‘‘the use’’ 
and inserting ‘‘writing that the use’’; and 
(ii) in clause (ii), by striking ‘‘and’’ at 
the end; 
(C) in subparagraph (C)— 
(i) by striking ‘‘subsection (f)’’ each 
place it appears and inserting ‘‘subsection 
(e)’’; 
(ii) in clause (i)(I), by striking ‘‘the 
requirements of subsection (d)’’ and all that 
follows through ‘‘and the’’ and inserting 
‘‘the’’; and 
VerDate Sep 11 2014 
20:10 Aug 19, 2025
Jkt 059200
PO 00000
Frm 00995
Fmt 6652
Sfmt 6203
E:\BILLS\H3838.RH
H3838
ssavage on LAPJG3WLY3PROD with BILLS
996 
(iii) in clause (ii), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(D) by adding at the end the following new 
subparagraph: 
‘‘(D) may not be exercised for contracts ex-
ceeding the production of 500 units of a manu-
factured or developed product. Contracts exceed-
ing this production threshold may not be cat-
egorized as a ‘‘prototype’’ or contracted as 
such.’’; 
(2) by striking subsection (d); 
(3) by redesignating subsections (e) through (i) 
as subsections (d) through (h), respectively; and 
(4) in subsection (f), as so redesignated, by strik-
ing ‘‘subsection (f)’’ and inserting ‘‘subsection (e)’’. 
(b) CONFORMING AMENDMENTS.— 
(1) NATIONAL SECURITY ACT OF 1947.—Section 
102A(n)(6)(C) of the National Security Act of 1947 
(50 U.S.C. 3024(n)(6)(C)) is amended— 
(A) by repealing clauses (v) and (vi); and 
(B) in clause (vii)— 
(i) in the matter preceding subclause 
(I), by striking ‘‘4022(f)(2)’’ and inserting 
‘‘4022(e)(2)’’; and 
VerDate Sep 11 2014 
20:10 Aug 19, 2025
Jkt 059200
PO 00000
Frm 00996
Fmt 6652
Sfmt 6203
E:\BILLS\H3838.RH
H3838
ssavage on LAPJG3WLY3PROD with BILLS
997 
(ii) in subclause (V)(cc), by striking 
‘‘4022(f)(5)’’ and inserting ‘‘4022(e)(5)’’. 
(2) HOMELAND SECURITY ACT OF 2002.—Section 
831(d) of the Homeland Security Act of 2002 (6 
U.S.C. 391(d)) is amended by striking ‘‘4022(e)’’ and 
inserting ‘‘4022(d)’’. 
(3) JOHN
S. MCCAIN
NATIONAL
DEFENSE
AU-
THORIZATION ACT FOR FISCAL YEAR 2019.—Section 
873(c)(1) of the John S. McCain National Defense 
Authorization Act for Fiscal Year 2019 (Public Law 
115–232; 10 U.S.C. 4021 note) is amended— 
(A) in subparagraph (A), by striking ‘‘sub-
section (f)’’ and inserting ‘‘subsection (e)’’; and 
(B) in subparagraph (E), by striking ‘‘or 
(f)’’ and inserting ‘‘or (e)’’. 
(4) JAMES M. INHOFE NATIONAL DEFENSE AU-
THORIZATION ACT FOR FISCAL YEAR 2023.—Section 
322(h)(2) of the James M. Inhofe National Defense 
Authorization Act for Fiscal Year 2023 (Public Law 
117–263; 10 U.S.C. 2911 note) is amended by strik-
ing ‘‘subsection (f)’’ and inserting ‘‘subsection (e)’’. 
SEC. 1832. DATA-AS-A-SERVICE SOLUTIONS FOR WEAPON 
SYSTEM CONTRACTS. 
(a) IN GENERAL.—Chapter 323 of title 10, United 
States Code, as amended by section 1804 of this Act, is fur-
VerDate Sep 11 2014 
20:10 Aug 19, 2025
Jkt 059200
PO 00000
Frm 00997
Fmt 6652
Sfmt 6203
E:\BILLS\H3838.RH
H3838
ssavage on LAPJG3WLY3PROD with BILLS