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SEC. 822. PROHIBITION OF EXCESSIVE PASS-THROUGH 
CONTRACTS AND CHARGES IN THE ACQUISI-
TION OF SERVICES. 
(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of this Act, the Federal Acquisition 
Regulation shall be revised to— 
(1) prohibit the award of a covered contract or 
task order unless the contractor agrees that at least 50 
percent of the direct labor cost of services to be per-
formed under the contract or task order will be ex-
pended for employees of the contractor or of a subcon-
tractor that is specifically identified and authorized 
to perform such work in the contract or task order; 
(2) provide that the contracting officer for a cov-
ered contract or task order may authorize reliance 
upon a subcontractor or subcontractors to meet the re-
quirement in paragraph (1) only upon a written de-
termination that such reliance is in the best interest 
of the executive agency concerned, after taking into 
account the added cost for overhead (including general 
and administrative costs) and profit that may be in-
curred as a result of the pass-through; 
(3) require the contracting officer for a covered 
contract or task order for which more than 70 percent 
of the direct labor cost of services to be performed will 
be expended for persons other than employees of the
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contractor to ensure that amounts paid to the con-
tractor for overhead (including general and adminis-
trative costs) and profit are reasonable in relation to 
the cost of direct labor provided by employees of the 
contractor and any other costs directly attributable to 
the management of the subcontract by employees of 
the contractor; 
(4) include such exceptions to the requirements 
in paragraphs (2) and (3) as the Federal Acquisition 
Regulatory Council considers appropriate in the in-
terests of the United States, which exceptions shall be 
permissible only in exceptional circumstances and for 
instances demonstrated by the Council to be cost-effec-
tive; and 
(5) include such exceptions to the requirements 
in paragraphs (2) and (3) as the Secretary of Defense 
considers appropriate in the interests of the national 
defense. 
(b) COVERED CONTRACT OR TASK ORDER DEFINED.— 
In this section, the term ‘‘covered contract or task order’’ 
means a contract or task order for the performance of serv-
ices (other than construction) with a value in excess of the 
simplified acquisition threshold that is entered into for or 
on behalf of an executive agency, except that such term does
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† HR 4310 EAS1S 
not include any contract or task order that provides a firm, 
fixed price for each task to be performed and is— 
(1) awarded on the basis of adequate price com-
petition; or 
(2) for the acquisition of commercial services as 
defined in paragraphs (5) and (6) of section 103 of 
title 41, United States Code. 
(c) EFFECTIVE DATE.—The requirements of this sec-
tion shall apply to— 
(1) covered contracts that are awarded on or 
after the date that is 90 days after the date of the en-
actment of this Act; and 
(2) covered task orders that are awarded on or 
after the date that is 90 days after the date of the en-
actment of this Act under contracts that are awarded 
before, on, or after such date. 
(d) OTHER DEFINITIONS.—In this section: 
(1) The term ‘‘executive agency’’ has the mean-
ing given that term in section 133 of title 41, United 
States Code. 
(2) The term ‘‘Federal Acquisition Regulatory 
Council’’ means the Federal Acquisition Regulatory 
Council under section 1302(a) of title 41, United 
States Code.
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(e) CONFORMING REPEAL.—Section 852 of the John 
Warner National Defense Authorization Act for Fiscal Year 
2007 (120 Stat. 2340) is repealed. 
SEC. 823. AVAILABILITY OF AMOUNTS IN DEFENSE ACQUISI-
TION WORKFORCE DEVELOPMENT FUND FOR 
TEMPORARY MEMBERS OF WORKFORCE. 
(a) IN GENERAL.—Section 1705 of title 10, United 
States Code, is amended— 
(1) in subsection (e)— 
(A) in paragraph (1), by adding at the end 
the following new sentence: ‘‘In the case of tem-
porary members of the acquisition workforce des-
ignated pursuant to subsection (h)(2), such funds 
shall be available only for the limited purpose of 
providing training in the performance of acqui-
sition-related functions and duties.’’; and 
(B) in paragraph (5), by inserting before 
the period at the end the following: ‘‘, and who 
has continued in the employment of the Depart-
ment since such time without a break in such 
employment of more than a year’’; 
(2) by striking subsection (g); 
(3) by redesignating subsection (h) as subsection 
(g); and
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† HR 4310 EAS1S 
(4) by adding at the end the following new sub-
section (h): 
‘‘(h) ACQUISITION WORKFORCE DEFINED.—In this 
section, the term ‘acquisition workforce’ means the fol-
lowing: 
‘‘(1) Personnel in positions designated under sec-
tion 1721 of this title as acquisition positions for pur-
poses of this chapter. 
‘‘(2) Other military personnel or civilian em-
ployees of the Department of Defense who— 
‘‘(A) contribute significantly to the acquisi-
tion process by virtue of their assigned duties; 
and 
‘‘(B) are designated as temporary members 
of the acquisition workforce by the Under Sec-
retary of Defense for Acquisition, Technology, 
and Logistics, or by the senior acquisition execu-
tive of a military department, for the limited 
purpose of receiving training for the performance 
of acquisition-related functions and duties.’’. 
(b) EXTENSION OF EXPEDITED HIRING AUTHORITY.— 
Subsection (g) of such section, as redesignated by subsection 
(a)(3) of this section, is further amended in paragraph (2) 
by striking ‘‘September 30, 2015’’ and inserting ‘‘September 
30, 2017’’.
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(c) PLAN REQUIRED.—Not later than 180 days after 
the date of the enactment of this Act, the Under Secretary 
of Defense for Acquisition, Technology, and Logistics shall 
develop a plan for the implementation of the authority pro-
vided by the amendments made by subsection (a) with re-
gard to temporary members of the defense acquisition work-
force. The plan shall include policy, criteria, and processes 
for designating temporary members and appropriate safe-
guards to prevent the abuse of such authority. 
SEC. 824. DEPARTMENT OF DEFENSE POLICY ON CON-
TRACTOR PROFITS. 
(a) REVIEW OF GUIDELINES ON PROFITS.—The Sec-
retary of Defense shall review the profit guidelines in the 
Department of Defense Supplement to the Federal Acquisi-
tion Regulation in order to identify any modifications to 
such guidelines that are necessary to ensure an appropriate 
link between contractor profit and contractor performance. 
(b) MATTERS TO BE CONSIDERED.—In conducting the 
review required by subsection (a), the Secretary shall con-
sider, at a minimum, the following: 
(1) Appropriate levels of profit needed to sustain 
competition in the defense industry, taking into ac-
count contractor investment and cash flow. 
(2) Appropriate adjustments to address contract 
and performance risk assumed by the contractor, tak-
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† HR 4310 EAS1S 
ing into account the extent to which such risk is 
passed on to subcontractors. 
(3) Appropriate incentives for superior perform-
ance in delivering quality products and services in a 
timely and cost-effective manner, taking into account 
such factors as prime contractor cost reduction, con-
trol of overhead costs, subcontractor cost reduction, 
subcontractor management, and effective competition 
(including the utilization of small business) at the 
subcontract level. 
(c) MODIFICATION OF GUIDELINES.—Not later than 
180 days after the date of the enactment of this Act, the 
Secretary shall modify the profit guidelines described in 
subsection (a) so as to achieve the link described that sub-
section. 
(d) REPORT.—Upon the completion of the modifica-
tion of the profit guidelines required by subsection (c), the 
Secretary shall submit to the congressional defense commit-
tees a report on the actions of the Secretary under this sec-
tion. The report shall set forth the following: 
(1) The results of the review conducted under 
subsection (a). 
(2) A description of the modification carried out 
under subsection (c).
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SEC. 825. MODIFICATION OF AUTHORITIES ON INTERNAL 
CONTROLS FOR PROCUREMENTS ON BEHALF 
OF THE DEPARTMENT OF DEFENSE BY CER-
TAIN NON-DEFENSE AGENCIES. 
(a) DISCRETIONARY AUTHORITY.—Subsection (a) of 
section 801 of the National Defense Authorization Act for 
Fiscal Year 2008 (10 U.S.C. 2304 note) is amended— 
(1) in paragraph (1), by striking ‘‘shall, not 
later than the date specified in paragraph (2),’’ and 
inserting ‘‘may’’; 
(2) by striking paragraph (2); 
(3) by redesignating paragraphs (3) through (6) 
as paragraphs (2) through (5), respectively; 
(4) in paragraph (3), as redesignated by para-
graph (3) of this section— 
(A) by striking ‘‘required under this sub-
section’’ and inserting ‘‘to be performed under 
this subsection’’; and 
(B) by striking ‘‘shall’’ and inserting 
‘‘may’’; and 
(5) in paragraph (4), as so redesignated, by 
striking ‘‘shall’’ and inserting ‘‘may’’. 
(b) CONFORMING AMENDMENTS.—Subsection (b)(1)(B) 
of such section is amended—
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† HR 4310 EAS1S 
(1) in clause (i), by striking ‘‘required by sub-
section (a)(4)’’ and inserting ‘‘to be entered into 
under subsection (a)(3)’’; and 
(2) in clause (ii)— 
(A) by striking ‘‘required by subsection (a)’’ 
and inserting ‘‘provided for under subsection 
(a)’’; and 
(B) by striking ‘‘subsection (a)(5)’’ and in-
serting ‘‘subsection (a)(4)’’. 
SEC. 826. EXTENSION OF PILOT PROGRAM ON MANAGE-
MENT OF SUPPLY-CHAIN RISK. 
Section 806(g) of the Ike Skelton National Defense Au-
thorization Act for Fiscal Year 2011 (Public Law 111–383; 
124 Stat. 4262; 10 U.S.C. 2304 note) is amended by strik-
ing ‘‘the date that is three years after the date of the enact-
ment of this Act’’ and inserting ‘‘January 1, 2016’’. 
SEC. 
827. 
SENSE 
OF 
SENATE 
ON 
THE 
CONTINUING 
PROGRESS OF THE DEPARTMENT OF DE-
FENSE IN IMPLEMENTING ITS ITEM UNIQUE 
IDENTIFICATION INITIATIVE. 
(a) FINDINGS.—The Senate makes the following find-
ings: 
(1) In 2003, the Department of Defense initiated 
the Item Unique Identification (IUID) Initiative, 
which requires the marking and tracking of assets de-
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† HR 4310 EAS1S 
ployed throughout the Armed Forces or in the posses-
sion of Department contractors. 
(2) The Initiative has the potential for realizing 
significant cost savings and improving the manage-
ment of defense equipment and supplies throughout 
their lifecycle. 
(3) The Initiative can help the Department com-
bat the growing problem of counterfeits in the mili-
tary supply chain. 
(b) SENSE OF SENATE.—It is the sense of the Senate— 
(1) to support efforts by the Department of De-
fense to implement the Item Unique Identification 
Initiative; 
(2) to support measures to verify contractor com-
pliance with section 252.211–7003 (entitled ‘‘Item 
Identification and Valuation’’) of the Defense Supple-
ment to the Federal Acquisition Regulation, on 
Unique Identification, which states that a unique 
identification equivalent recognized by the Depart-
ment is required for certain acquisitions; 
(3) to encourage the Armed Forces to adopt and 
implement Item Unique Identification actions and 
milestones; and 
(4) to support investment of sufficient resources 
and continued training and leadership to enable the
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† HR 4310 EAS1S 
Department to capture meaningful data and optimize 
the benefits of the Item Unique Identification Initia-
tive. 
Subtitle C—Amendments Relating 
to General Contracting Authori-
ties, Procedures, and Limita-
tions 
SEC. 841. APPLICABILITY OF TRUTH IN NEGOTIATIONS ACT 
TO MAJOR SYSTEMS AND RELATED SUB-
SYSTEMS, 
COMPONENTS, 
AND 
SUPPORT 
SERVICES. 
(a) AUTHORITY TO REQUIRE SUBMISSION OF COST OR 
PRICING DATA.—Subsection (c) of section 2306a of title 10, 
United States Code, is amended— 
(1) in the subsection caption, by striking 
‘‘BELOW-THRESHOLD’’ and inserting ‘‘CERTAIN’’; and 
(2) in paragraph (2), by inserting before the pe-
riod at the end the following: ‘‘, except in the case of 
either of the following: 
‘‘(A) A major system or a subsystem or 
component thereof that is not a commercially 
available off-the-shelf item (as defined in section 
104 of title 41) and was not developed exclu-
sively at private expense as demonstrated in ac-
338 
† HR 4310 EAS1S 
cordance with the requirements of section 
2321(f)(2) of this title. 
‘‘(B) Services that are procured for support 
of a system, subsystem, or component described 
in subparagraph (A).’’. 
(b) AUTHORITY TO REQUIRE SUBMISSION OF OTHER 
INFORMATION.—Subsection (d)(1) of such section is amend-
ed by striking ‘‘at a minimum’’ and all that follows and 
inserting ‘‘at a minimum— 
‘‘(A) appropriate information on the prices 
at which the same item or similar items have 
previously been sold that is adequate for evalu-
ating the reasonableness of the price for the pro-
curement; and 
‘‘(B) in the case of a system, subsystem, 
component, or services described in subpara-
graph (A) or (B) of subsection (c)(2) for which 
price information described in subparagraph (A) 
of this paragraph is not adequate to evaluate 
price reasonableness, uncertified cost data that is 
adequate for evaluating the reasonableness of the 
price for the procurement.’’. 
(c) TECHNICAL AMENDMENT.—Subsection (c)(3) of 
such section is amended by striking ‘‘paragraph’’ and in-
serting ‘‘subsection’’.
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† HR 4310 EAS1S 
SEC. 842. MAXIMUM AMOUNT OF ALLOWABLE COSTS OF 
COMPENSATION OF CONTRACTOR EMPLOY-
EES. 
(a) MODIFICATION OF MAXIMUM AMOUNT.—Section 
2324(e)(1)(P) of title 10, United States Code, is amended 
by striking ‘‘the benchmark’’ and all that follows through 
‘‘section 1127 of title 41’’ and inserting ‘‘the annual 
amount payable under the aggregate limitation on pay as 
established by the Office of Management and Budget (cur-
rently $230,700)’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on January 1, 2013, and shall 
apply with respect to costs of compensation incurred on or 
after that date under contracts entered into before, on, or 
after that date. 
(c) REPORT ON ALLOWABLE COSTS OF EMPLOYEE 
COMPENSATION.—Not later than 120 days after the date of 
the enactment of this Act, the Inspector General of the De-
partment of Defense shall submit to Congress a report on 
the effect of the modification of allowable costs of contractor 
compensation of employees made by subsection (a). The re-
port shall include the following: 
(1) The total number of contractor employees 
whose allowable costs of compensation in fiscal year 
2012 exceeded the amount of allowable costs under the 
modification made by subsection (a).
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† HR 4310 EAS1S 
(2) The total number of contractor employees 
whose allowable costs of compensation in each of fiscal 
years 2010, 2011, and 2012 would have exceeded the 
amount of allowable costs under section 2324(e)(1)(P) 
of title 10, United States Code, as amended by section 
803(a) of the National Defense Authorization Act for 
Fiscal Year 2012 (Public Law 112–81; 125 Stat. 
1485). 
(3) The total number of contractor employees 
whose allowable costs of compensation in each of fiscal 
years 2010, 2011, and 2012 exceeded the amount pay-
able to the President under section 102 of title 3, 
United States Code. 
(4) The total number of contractor employees in 
fiscal year 2012 that could have been characterized as 
falling within a narrowly targeted exception estab-
lished by the Secretary of Defense under section 
2324(e)(1)(P) of title 10, United States Code, as a re-
sult of the amendment made by section 803(a)(2) of 
the National Defense Authorization Act for Fiscal 
Year 2012. 
(5) An assessment whether the compensation 
amounts provided in fiscal year 2012 to employees 
who were characterized by their employers as falling 
within a narrowly targeted exception described in
341 
† HR 4310 EAS1S 
paragraph (4) were provided compensation amounts 
in that fiscal year in manner consistent with private 
sector practice. 
(6) The duties and services performed in fiscal 
year 2012 by employees who were characterized by 
their employers as falling within a narrowly targeted 
exception described in paragraph (4). 
(7) An assessment whether there are Federal ci-
vilian employees who perform duties and services 
comparable to the duties and services described pursu-
ant to paragraph (6). 
SEC. 843. DEPARTMENT OF DEFENSE ACCESS TO AND USE 
OF CONTRACTOR INTERNAL AUDIT REPORTS. 
(a) CLARIFICATION OF AUDIT ACCESS AUTHORITY.— 
Section 2313(a)(2) of title 10, United States Code, is 
amended— 
(1) in subparagraph (C), by striking ‘‘or’’ at the 
end; 
(2) in subparagraph (D), by striking the period 
at the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(E) the efficacy of contractor or subcontractor 
internal controls and the reliability of contractor or 
subcontractor business systems.’’.
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† HR 4310 EAS1S 
(b) GUIDANCE ON ACCESS.— 
(1) GUIDANCE
REQUIRED.—Not later than 90 
days after the date of the enactment of this Act, the 
Director of the Defense Contract Audit Agency shall 
issue revised guidance on Defense Contract Audit 
Agency auditor access to defense contractor internal 
audit reports and supporting materials. 
(2) PURPOSE.—The purpose of the guidance 
issued pursuant to paragraph (1) shall be to ensure 
that the Defense Contract Audit Agency has sufficient 
access to contractor internal audit reports and sup-
porting materials in order to— 
(A) evaluate and test the efficacy of con-
tractor internal controls and the reliability of as-
sociated contractor business systems; and 
(B) assess the amount of risk and level of 
testing required in connection with specific au-
dits to be conducted by the Agency. 
(3) MATTERS TO BE ADDRESSED.—The guidance 
issued pursuant to paragraph (1) shall address, at a 
minimum, the following: 
(A) The extent to which Defense Contract 
Audit Agency auditors should request access to 
defense contractor internal audit reports and 
supporting materials.
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† HR 4310 EAS1S 
(B) The circumstances in which follow-up 
actions, including subpoenas, may be required to 
ensure Agency access to audit reports and sup-
porting materials. 
(C) The designation of Agency audit offi-
cials responsible for coordinating issues per-
taining to Agency requests for audit reports and 
supporting materials. 
(D) The purposes for which Agency auditors 
may use audit reports and supporting materials. 
(E) Any protections that may be required to 
ensure that audit reports and supporting mate-
rials are not misused. 
(F) Requirements for tracking Agency re-
quests for audit reports and supporting mate-
rials. 
(c) FAILURE TO PROVIDE ACCESS.—Not later than 
180 days after the date of the enactment of this Act, the 
Secretary of Defense shall revise the program required by 
section 893 of the Ike Skelton National Defense Authoriza-
tion Act for Fiscal Year 2011 (Public Law 111–383; 124 
Stat. 4311; 10 U.S.C. 2302 note) in order to— 
(1) ensure that any assessment of the adequacy 
of contractor business systems takes into account the 
efficacy of contractor internal controls, including con-
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† HR 4310 EAS1S 
tractor internal audit reports and supporting mate-
rials, that are relevant to such assessment; and 
(2) provide that the refusal of a contractor to 
permit access to contractor internal audit reports and 
supporting materials that are relevant to such an as-
sessment is a basis for disapproving the contractor 
business system or systems to which such materials 
are relevant and taking the remedial actions author-
ized under section 893. 
SEC. 844. ENHANCEMENT OF WHISTLEBLOWER PROTEC-
TIONS FOR CONTRACTOR EMPLOYEES. 
(a) IN GENERAL.—Subsection (a) of section 2409 of 
title 10, United States Code, is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘An employee’’; 
(2) in paragraph (1), as so designated— 
(A) by inserting ‘‘or subcontractor’’ after 
‘‘employee of a contractor’’; 
(B) by striking ‘‘a Member of Congress’’ 
and all that follows through ‘‘the Department of 
Justice’’ and inserting ‘‘a person or body de-
scribed in paragraph (2)’’; 
(C) by inserting ‘‘an abuse of authority re-
lating to a Department of Defense contract or 
grant,’’ after ‘‘Department of Defense funds,’’; 
and
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† HR 4310 EAS1S 
(D) by inserting ‘‘, rule, or regulation’’ 
after ‘‘a violation of law’’; and 
(3) by adding at the end the following new para-
graphs: 
‘‘(2) The persons and bodies described in this para-
graph are the persons and bodies as follows: 
‘‘(A) A Member of Congress or a representative 
of a committee of Congress. 
‘‘(B) An Inspector General. 
‘‘(C) The Government Accountability Office. 
‘‘(D) A Department of Defense employee respon-
sible for contract oversight or management. 
‘‘(E) An authorized official of the Department of 
Justice or other law enforcement agency. 
‘‘(F) A court or grand jury. 
‘‘(G) A management official or other employee of 
the contractor or subcontractor who has the responsi-
bility to investigate, discover, or address misconduct. 
‘‘(3) For the purposes of paragraph (1)— 
‘‘(A) an employee who initiates or provides evi-
dence of contractor or subcontractor misconduct in 
any judicial or administrative proceeding relating to 
waste, fraud, or abuse on a Department of Defense 
contract shall be deemed to have made a disclosure 
covered by such paragraph; and
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† HR 4310 EAS1S 
‘‘(B) a reprisal described in paragraph (1) is 
prohibited even if it is undertaken at the request of 
a Department of Defense official, unless the request 
takes the form of a non-discretionary directive and is 
within the authority of the Department of Defense of-
ficial making the request.’’. 
(b) INVESTIGATION OF COMPLAINTS.—Subsection (b) 
of such section is amended— 
(1) in paragraph (1), by inserting ‘‘fails to al-
lege a violation of the prohibition in subsection (a), 
or has previously been addressed in another Federal 
or State judicial or administrative proceeding initi-
ated by the complainant,’’ after ‘‘is frivolous,’’; 
(2) in paragraph (2)— 
(A) in subparagraph (A), by inserting ‘‘, 
fails to allege a violation of the prohibition in 
subsection (a), or has previously been addressed 
in another Federal or State judicial or adminis-
trative proceeding initiated by the complainant’’ 
after ‘‘is frivolous’’; and 
(B) in subparagraph (B), by inserting ‘‘, up 
to 180 days,’’ after ‘‘such additional period of 
time’’; and 
(3) by adding at the end the following new para-
graphs:
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† HR 4310 EAS1S 
‘‘(3) The Inspector General may not respond to any 
inquiry or disclose any information from or about any per-
son alleging the reprisal, except to the extent that such re-
sponse or disclosure is— 
‘‘(A) made with the consent of the person alleg-
ing the reprisal; 
‘‘(B) made in accordance with the provisions of 
section 552a of title 5 or as required by any other ap-
plicable Federal law; or 
‘‘(C) necessary to conduct an investigation of the 
alleged reprisal. 
‘‘(4) A complaint may not be brought under this sub-
section more than three years after the date on which the 
alleged reprisal took place.’’. 
(c) REMEDY AND ENFORCEMENT AUTHORITY.—Sub-
section (c) of such section is amended— 
(1) in paragraph (1)(B), by striking ‘‘the com-
pensation (including back pay)’’ and inserting ‘‘com-
pensatory damages (including back pay)’’; 
(2) in paragraph (2), by adding at the end fol-
lowing new sentence: ‘‘An action under this para-
graph may not be brought more than two years after 
the date on which remedies are deemed to have been 
exhausted.’’;
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† HR 4310 EAS1S 
(3) in paragraph (4), by striking ‘‘and compen-
satory and exemplary damages.’’ and inserting ‘‘, 
compensatory and exemplary damages, and attorney 
fees and costs. The person upon whose behalf an order 
was issued may also file such an action or join in an 
action filed by the head of the agency.’’; 
(4) in paragraph (5), by adding at the end the 
following new sentence: ‘‘Filing such an appeal shall 
not act to stay the enforcement of the order of the 
head of an agency, unless a stay is specifically en-
tered by the court.’’; and 
(5) by adding at the end the following new para-
graphs: 
‘‘(6) The legal burdens of proof specified in section 
1221(e) of title 5 shall be controlling for the purposes of 
any investigation conducted by an Inspector General, deci-
sion by the head of an agency, or judicial or administrative 
proceeding to determine whether discrimination prohibited 
under this section has occurred. 
‘‘(7) The rights and remedies provided for in this sec-
tion may not be waived by any agreement, policy, form, 
or condition of employment, including by any predispute 
arbitration agreement, other than an arbitration provision 
in a collective bargaining agreement.’’.
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† HR 4310 EAS1S 
(d) NOTIFICATION OF EMPLOYEES.—Such section is 
further amended— 
(1) by redesignating subsections (d) and (e) as 
subsections (e) and (f), respectively; and 
(2) by inserting after subsection (c) the following 
new subsection (d): 
‘‘(d) NOTIFICATION OF EMPLOYEES.—The Secretary of 
Defense shall ensure that contractors and subcontractors of 
the Department of Defense inform their employees in writ-
ing of the rights and remedies provided under this section, 
in the predominant native language of the workforce.’’. 
(e) ABUSE OF AUTHORITY DEFINED.—Subsection (f) 
of such section, as redesignated by subsection (d)(1) of this 
section, is further amended by adding at the end the fol-
lowing new paragraph: 
‘‘(6) The term ‘abuse of authority’ means an ar-
bitrary and capricious exercise of authority that is 
inconsistent with the mission of the Department of 
Defense or the successful performance of a Department 
of Defense contract or grant.’’. 
(f) ALLOWABILITY OF LEGAL FEES.—Section 2324(k) 
of such title is amended— 
(1) in paragraph (1), by striking ‘‘commenced by 
the United States or a State’’ and inserting ‘‘com-
menced by the United States, by a State, or by a con-
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† HR 4310 EAS1S 
tractor employee submitting a complaint under sec-
tion 2409 of this title’’; and 
(2) in paragraph (2)(C), by striking ‘‘the impo-
sition of a monetary penalty’’ and inserting ‘‘the im-
position of a monetary penalty or an order to take 
corrective action under section 2409 of this title’’. 
(g) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall take effect on the date that is 180 
days after the date of the enactment of this Act, and 
shall apply to— 
(A) all contracts awarded on or after such 
date; 
(B) all task orders entered on or after such 
date pursuant to contracts awarded before, on, or 
after such date; and 
(C) all contracts awarded before such date 
that are modified to include a contract clause 
providing for the applicability of such amend-
ments. 
(2) REVISION
OF
DOD
SUPPLEMENT
TO
THE 
FAR.—Not later than 180 days after the date of the 
enactment of this Act, the Department of Defense 
Supplement to the Federal Acquisition Regulation
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† HR 4310 EAS1S 
shall be revised to implement the requirements arising 
under the amendments made by this section. 
(3) INCLUSION OF CONTRACT CLAUSE IN CON-
TRACTS AWARDED BEFORE EFFECTIVE DATE.—At the 
time of any major modification to a contract that 
was awarded before the date that is 180 days after the 
date of the enactment of this Act, the head of the con-
tracting agency shall make best efforts to include in 
the contract a contract clause providing for the appli-
cability of the amendments made by this section to 
the contract. 
SEC. 844A. WHISTLEBLOWER PROTECTIONS FOR NON-DE-
FENSE CONTRACTORS. 
(a) WHISTLEBLOWER PROTECTIONS.— 
(1) IN GENERAL.—Chapter 47 of title 41, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 4712. CONTRACTOR AND GRANTEE EMPLOYEES: PRO-
TECTION FROM REPRISAL FOR DISCLOSURE 
OF CERTAIN INFORMATION. 
‘‘(a) PROHIBITION OF REPRISALS.— 
‘‘(1) IN GENERAL.—An employee of a contractor, 
subcontractor, or grantee may not be discharged, de-
moted, or otherwise discriminated against as a re-
prisal for disclosing to a person or body described in
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† HR 4310 EAS1S 
paragraph (2) information that the employee reason-
ably believes is evidence of gross mismanagement of a 
Federal contract or grant, a gross waste of Federal 
funds, an abuse of authority relating to a Federal 
contract or grant, a substantial and specific danger 
to public health or safety, or a violation of law, rule, 
or regulation related to a Federal contract (including 
the competition for or negotiation of a contract) or 
grant. 
‘‘(2) PERSONS AND BODIES COVERED.—The per-
sons and bodies described in this paragraph are the 
persons and bodies as follows: 
‘‘(A) A Member of Congress or a representa-
tive of a committee of Congress. 
‘‘(B) An Inspector General. 
‘‘(C) The Government Accountability Office. 
‘‘(D) A Federal employee responsible for 
contract or grant oversight or management at 
the relevant agency. 
‘‘(E) An authorized official of the Depart-
ment of Justice or other law enforcement agency. 
‘‘(F) A court or grand jury. 
‘‘(G) A management official or other em-
ployee of the contractor, subcontractor, or grantee
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† HR 4310 EAS1S 
who has the responsibility to investigate, dis-
cover, or address misconduct. 
‘‘(3) RULES OF CONSTRUCTION.—For the pur-
poses of paragraph (1)— 
‘‘(A) an employee who initiates or provides 
evidence of contractor, subcontractor, or grantee 
misconduct in any judicial or administrative 
proceeding relating to waste, fraud, or abuse on 
a Federal contract or grant shall be deemed to 
have made a disclosure covered by such para-
graph; and 
‘‘(B) a reprisal described in paragraph (1) 
is prohibited even if it is undertaken at the re-
quest of an executive branch official, unless the 
request takes the form of a non-discretionary di-
rective and is within the authority of the execu-
tive branch official making the request. 
‘‘(b) INVESTIGATION OF COMPLAINTS.— 
‘‘(1) SUBMISSION OF COMPLAINT.—A person who 
believes that the person has been subjected to a re-
prisal prohibited by subsection (a) may submit a 
complaint to the Inspector General of the executive 
agency involved. Unless the Inspector General deter-
mines that the complaint is frivolous, fails to allege 
a violation of the prohibition in subsection (a), or has
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† HR 4310 EAS1S 
previously been addressed in another Federal or State 
judicial or administrative proceeding initiated by the 
complainant, the Inspector General shall investigate 
the complaint and, upon completion of such investiga-
tion, submit a report of the findings of the investiga-
tion to the person, the contractor or grantee con-
cerned, and the head of the agency. 
‘‘(2) INSPECTOR GENERAL ACTION.— 
‘‘(A) DETERMINATION
OR
SUBMISSION
OF 
REPORT
ON
FINDINGS.—Except as provided 
under subparagraph (B), the Inspector General 
shall make a determination that a complaint is 
frivolous, fails to allege a violation of the prohi-
bition in subsection (a), or has previously been 
addressed in another Federal or State judicial or 
administrative proceeding initiated by the com-
plainant or submit a report under paragraph 
(1) within 180 days after receiving the com-
plaint. 
‘‘(B) EXTENSION OF TIME.—If the Inspector 
General is unable to complete an investigation in 
time to submit a report within the 180-day pe-
riod specified in subparagraph (A) and the per-
son submitting the complaint agrees to an exten-
sion of time, the Inspector General shall submit
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a report under paragraph (1) within such addi-
tional period of time, up to 180 days, as shall 
be agreed upon between the Inspector General 
and the person submitting the complaint. 
‘‘(3) PROHIBITION
ON
DISCLOSURE.—The In-
spector General may not respond to any inquiry or 
disclose any information from or about any person 
alleging the reprisal, except to the extent that such re-
sponse or disclosure is— 
‘‘(A) made with the consent of the person al-
leging the reprisal; 
‘‘(B) made in accordance with the provi-
sions of section 552a of title 5 or as required by 
any other applicable Federal law; or 
‘‘(C) necessary to conduct an investigation 
of the alleged reprisal. 
‘‘(4) TIME LIMITATION.—A complaint may not 
be brought under this subsection more than three 
years after the date on which the alleged reprisal took 
place. 
‘‘(c) REMEDY AND ENFORCEMENT AUTHORITY.— 
‘‘(1) IN GENERAL.—Not later than 30 days after 
receiving an Inspector General report pursuant to 
subsection (b), the head of the executive agency con-
cerned shall determine whether there is sufficient basis
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† HR 4310 EAS1S 
to conclude that the contractor or grantee concerned 
has subjected the complainant to a reprisal prohibited 
by subsection (a) and shall either issue an order de-
nying relief or shall take one or more of the following 
actions: 
‘‘(A) Order the contractor or grantee to take 
affirmative action to abate the reprisal. 
‘‘(B) Order the contractor or grantee to re-
instate the person to the position that the person 
held before the reprisal, together with compen-
satory damages (including back pay), employ-
ment benefits, and other terms and conditions of 
employment that would apply to the person in 
that position if the reprisal had not been taken. 
‘‘(C) Order the contractor or grantee to pay 
the complainant an amount equal to the aggre-
gate amount of all costs and expenses (including 
attorneys’ fees and expert witnesses’ fees) that 
were reasonably incurred by the complainant for, 
or in connection with, bringing the complaint re-
garding the reprisal, as determined by the head 
of the executive agency. 
‘‘(2) EXHAUSTION OF REMEDIES.—If the head of 
an executive agency issues an order denying relief 
under paragraph (1) or has not issued an order with-
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† HR 4310 EAS1S 
in 210 days after the submission of a complaint 
under subsection (b), or in the case of an extension 
of time under paragraph (b)(2)(B), not later than 30 
days after the expiration of the extension of time, and 
there is no showing that such delay is due to the bad 
faith of the complainant, the complainant shall be 
deemed to have exhausted all administrative remedies 
with respect to the complaint, and the complainant 
may bring a de novo action at law or equity against 
the contractor or grantee to seek compensatory dam-
ages and other relief available under this section in 
the appropriate district court of the United States, 
which shall have jurisdiction over such an action 
without regard to the amount in controversy. Such an 
action shall, at the request of either party to the ac-
tion, be tried by the court with a jury. An action 
under this paragraph may not be brought more than 
two years after the date on which remedies are 
deemed to have been exhausted. 
‘‘(3) ADMISSIBILITY OF EVIDENCE.—An Inspec-
tor General determination and an agency head order 
denying relief under paragraph (2) shall be admis-
sible in evidence in any de novo action at law or eq-
uity brought pursuant to this subsection.
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‘‘(4) ENFORCEMENT
OF
ORDERS.—Whenever a 
person fails to comply with an order issued under 
paragraph (1), the head of the executive agency con-
cerned shall file an action for enforcement of such 
order in the United States district court for a district 
in which the reprisal was found to have occurred. In 
any action brought under this paragraph, the court 
may grant appropriate relief, including injunctive re-
lief, compensatory and exemplary damages, and at-
torney fees and costs. The person upon whose behalf 
an order was issued may also file such an action or 
join in an action filed by the head of the executive 
agency. 
‘‘(5) JUDICIAL REVIEW.—Any person adversely 
affected or aggrieved by an order issued under para-
graph (1) may obtain review of the order’s conform-
ance with this subsection, and any regulations issued 
to carry out this section, in the United States court 
of appeals for a circuit in which the reprisal is al-
leged in the order to have occurred. No petition seek-
ing such review may be filed more than 60 days after 
issuance of the order by the head of the executive 
agency. Review shall conform to chapter 7 of title 5. 
Filing such an appeal shall not act to stay the en-
forcement of the order of the head of an executive
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† HR 4310 EAS1S 
agency, unless a stay is specifically entered by the 
court. 
‘‘(6) BURDENS OF PROOF.—The legal burdens of 
proof specified in section 1221(e) of title 5 shall be 
controlling for the purposes of any investigation con-
ducted by an Inspector General, decision by the head 
of an executive agency, or judicial or administrative 
proceeding to determine whether discrimination pro-
hibited under this section has occurred. 
‘‘(7) RIGHTS AND REMEDIES NOT WAIVABLE.— 
The rights and remedies provided for in this section 
may not be waived by any agreement, policy, form, 
or condition of employment, including by any 
predispute arbitration agreement, other than an arbi-
tration provision in a collective bargaining agree-
ment. 
‘‘(d) NOTIFICATION OF EMPLOYEES.—The head of each 
executive agency shall ensure that contractors, subcontrac-
tors, and grantees of the agency inform their employees in 
writing of the rights and remedies provided under this sec-
tion, in the predominant native language of the workforce. 
‘‘(e) CONSTRUCTION.—Nothing in this section may be 
construed to authorize the discharge of, demotion of, or dis-
crimination against an employee for a disclosure other than 
a disclosure protected by subsection (a) or to modify or der-
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† HR 4310 EAS1S 
ogate from a right or remedy otherwise available to the em-
ployee. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) The term ‘abuse of authority’ means an ar-
bitrary and capricious exercise of authority that is 
inconsistent with the mission of the executive agency 
concerned or the successful performance of a contract 
or grant of such agency. 
‘‘(2) The term ‘Inspector General’ means an In-
spector General appointed under the Inspector Gen-
eral Act of 1978 and any Inspector General that re-
ceives funding from, or has oversight over contracts or 
grants awarded for or on behalf of, the executive agen-
cy concerned.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended by 
adding at the end the following new item: 
‘‘4712. Contractor and grantee employees: protection from reprisal for disclosure 
of certain information.’’. 
(b) ALLOWABILITY OF LEGAL FEES.—Section 4310 of 
title 41, United States Code, is amended— 
(1) in subsection (b), by striking ‘‘commenced by 
the Federal Government or a State’’ and inserting 
‘‘commenced by the Federal Government, by a State, 
or by a contractor or grantee employee submitting a 
complaint under section 4712 of this title’’; and
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† HR 4310 EAS1S 
(2) in subsection (c)(3), by striking ‘‘the imposi-
tion of a monetary penalty’’ and inserting ‘‘the impo-
sition of a monetary penalty or an order to take cor-
rective action under section 4712 of this title’’. 
(c) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendments made by 
this section shall take effect on the date that is 180 
days after the date of the enactment of this Act, and 
shall apply to— 
(A) all contracts and grants awarded on or 
after such date; 
(B) all task orders entered on or after such 
date pursuant to contracts awarded before, on, or 
after such date; and 
(C) all contracts awarded before such date 
that are modified to include a contract clause 
providing for the applicability of such amend-
ments. 
(2) REVISION OF FEDERAL ACQUISITION REGU-
LATION.—Not later than 180 days after the date of 
the enactment of this Act, the Federal Acquisition 
Regulation shall be revised to implement the require-
ments arising under the amendments made by this 
section.
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† HR 4310 EAS1S 
(3) INCLUSION OF CONTRACT CLAUSE IN CON-
TRACTS AWARDED BEFORE EFFECTIVE DATE.—At the 
time of any major modification to a contract that 
was awarded before the date that is 180 days after the 
date of the enactment of this Act, the head of the con-
tracting agency shall make best efforts to include in 
the contract a contract clause providing for the appli-
cability of the amendments made by this section to 
the contract. 
SEC. 845. EXTENSION OF CONTRACTOR CONFLICT OF IN-
TEREST LIMITATIONS. 
(a) ASSESSMENT OF EXTENSION OF LIMITATIONS TO 
CERTAIN ADDITIONAL FUNCTIONS AND CONTRACTS.—Not 
later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense shall review the guidance on 
personal conflicts of interest for contractor employees issued 
pursuant to section 841(a) of the Duncan Hunter National 
Defense Authorization Act for Fiscal Year 2009 (Public 
Law 110–417; 122 Stat. 4537) in order to determine wheth-
er it would be in the best interest of the Department of De-
fense and the taxpayers to extend such guidance to personal 
conflicts of interest by contractor personnel performing any 
of the following: 
(1) Functions other than acquisition functions 
that are closely associated with inherently govern-
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† HR 4310 EAS1S 
mental functions (as that term is defined in section 
2383(b)(3) of title 10, United States Code). 
(2) Personal services contracts (as that term is 
defined in section 2330a(g)(5) of title 10, United 
States Code). 
(3) Contracts for staff augmentation services (as 
that term is defined in section 808(d)(3) of the Na-
tional Defense Authorization Act for Fiscal Year 2012 
(Public Law 112–81; 125 Stat. 1490)). 
(b) EXTENSION OF LIMITATIONS.—If the Secretary de-
termines pursuant to the review under subsection (a) that 
the guidance on personal conflicts of interest should be ex-
tended, the Secretary shall revise the Defense Supplement 
to the Federal Acquisition Regulation to the extent nec-
essary to achieve such extension. 
(c) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary shall submit to 
the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representa-
tives a report setting forth the following: 
(1) A summary of the review conducted under 
subsection (a). 
(2) A summary description of any revisions of 
regulations carried out under subsection (b).
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† HR 4310 EAS1S 
SEC. 846. REPEAL OF SUNSET FOR CERTAIN PROTESTS OF 
TASK AND DELIVERY ORDER CONTRACTS. 
Section 2304c(e) of title 10, United States Code, is 
amended by striking paragraph (3). 
SEC. 847. REPORTS ON USE OF INDEMNIFICATION AGREE-
MENTS. 
(a) IN GENERAL.—Not later than 90 days after the 
end of each of fiscal years 2013 through 2016, the Secretary 
of Defense shall submit to the appropriate committees of 
Congress a report on any actions described in subsection 
(b) which occurred during the preceding fiscal years. 
(b) ACTIONS DESCRIBED.— 
(1) IN GENERAL.—An action described in this 
subsection is the Secretary of Defense— 
(A) entering into a contract that includes 
an indemnification provision relating to bodily 
injury caused by negligence or relating to wrong-
ful death; or 
(B) modifying an existing contract to in-
clude a provision described in subparagraph (A) 
in a contract. 
(2) EXCLUDED
CONTRACTS.—Paragraph (1) 
shall not apply to any contract awarded in accord-
ance with— 
(A) section 2354 of title 10, United States 
Code; or
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† HR 4310 EAS1S 
(B) the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 
(42 U.S.C. 9601 et seq.). 
(c) MATTERS INCLUDED.—For each action covered in 
a report under subsection (a), the report shall include— 
(1) the name of the contractor; 
(2) a description of the indemnification provi-
sion included in the contract; and 
(3) a justification for the contract including the 
indemnification provision. 
(d) FORM.—Each report under subsection (a) shall be 
submitted in unclassified form, but may include a classified 
annex. 
(e) APPROPRIATE COMMITTEES
OF CONGRESS DE-
FINED.—In this section, the term ‘‘appropriate committees 
of Congress’’ means— 
(1) the Committee on Armed Services, the Com-
mittee on the Budget, and the Committee on Appro-
priations of the Senate; and 
(2) the Committee on Armed Services, the Com-
mittee on the Budget, and the Committee on Appro-
priations of the House of Representatives.
366 
† HR 4310 EAS1S 
SEC. 848. CONTRACTING WITH SMALL BUSINESS CONCERNS 
OWNED AND CONTROLLED BY WOMEN. 
(a) PROCUREMENT PROGRAM
FOR WOMEN-OWNED 
SMALL BUSINESS CONCERNS.—Section 8(m)(2) of the 
Small Business Act (15 U.S.C. 637(m)(2)) is amended— 
(1) in subparagraph (A), by striking ‘‘who are 
economically disadvantaged’’; 
(2) in subparagraph (C), by striking ‘‘paragraph 
(3)’’ and inserting ‘‘paragraph (4)’’; 
(3) by striking subparagraph (D); and 
(4) by redesignating subparagraphs (E) and (F) 
as subparagraphs (D) and (E), respectively. 
(b) STUDY
AND REPORT
ON REPRESENTATION
OF 
WOMEN.—Section 29 of the Small Business Act (15 U.S.C. 
656) is amended by adding at the end the following: 
‘‘(o) STUDY AND REPORT ON REPRESENTATION OF 
WOMEN.— 
‘‘(1) STUDY.—The Administrator shall periodi-
cally conduct a study to identify industries, as de-
fined under the North American Industry Classifica-
tion System, underrepresented by small business con-
cerns owned and controlled by women. 
‘‘(2) REPORT.—Not later than 5 years after the 
date of enactment of this subsection, and every 5 
years thereafter, the Administrator shall submit to the 
Committee on Small Business and Entrepreneurship
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† HR 4310 EAS1S 
of the Senate and the Committee on Small Business 
of the House of Representatives a report on the results 
of each study under paragraph (1) conducted during 
the 5-year period ending on the date of the report.’’. 
Subtitle D—Provisions Relating to 
Wartime Contracting 
SEC. 860. SHORT TITLE. 
This subtitle may be cited as the ‘‘Wartime Con-
tracting Reform Act of 2012’’. 
SEC. 861. RESPONSIBILITY WITHIN DEPARTMENT OF DE-
FENSE FOR CONTRACT SUPPORT FOR OVER-
SEAS CONTINGENCY OPERATIONS. 
(a) RESPONSIBILITY.— 
(1) IN GENERAL.—Not later than one year after 
the date of the enactment of this Act, the Secretary of 
Defense shall prescribe in regulations the chain of au-
thority and responsibility within the Department of 
Defense for policy, planning, and execution of con-
tract support for overseas contingency operations. 
(2) ELEMENTS.—The regulations under para-
graph (1) shall, at a minimum— 
(A) specify the officials, offices, and compo-
nents of the Department within the chain of au-
thority and responsibility described in para-
graph (1);
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† HR 4310 EAS1S 
(B) identify for each official, office, and 
component specified under subparagraph (A)— 
(i) requirements for policy, planning, 
and execution of contract support for over-
seas contingency operations, including, at a 
minimum, 
requirements 
in 
connection 
with— 
(I) coordination of functions, au-
thorities, and responsibilities related to 
operational contract support for over-
seas contingency operations; 
(II) assessments of total force data 
in support of Department force plan-
ning scenarios, including the appro-
priateness of and necessity for the use 
of contractors for identified functions; 
(III) determinations of capability 
requirements for non-acquisition com-
munity operational contract support, 
and identification of resources required 
for planning, training, and execution 
to meet such requirements; 
(IV) determinations of policy re-
garding the use of contractors by func-
tion, and identification of the training
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† HR 4310 EAS1S 
exercises that will be required for con-
tract support (including an assessment 
whether or not such exercises will in-
clude contractors); and 
(V) establishment of an inventory, 
and identification of areas of high risk 
and trade offs, for use of contract sup-
port in overseas contingency operations 
and for areas in which members of the 
Armed Forces will be used in such op-
erations instead of contract support; 
and 
(ii) roles, authorities, responsibilities, 
and lines of supervision for the achievement 
of the requirements identified under clause 
(i), including the position within the chain 
of authority and responsibility described in 
paragraph (1) with responsibility for re-
porting directly to the Secretary regarding 
policy, planning, and execution of contract 
support for overseas contingency operations; 
and 
(C) ensure that the chain of authority and 
responsibility described in paragraph (1) is ap-
propriately aligned with, and appropriately in-
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† HR 4310 EAS1S 
tegrated into, the structure of the Department for 
the conduct of overseas contingency operations, 
including the military departments, the Joint 
Staff, and the commanders of the unified com-
batant commands. 
(b) SECRETARY
OF DEFENSE REPORT.—Not later 
than one year after the date of the enactment of this Act, 
the Secretary shall submit to the congressional defense com-
mittees a report on the regulations prescribed under sub-
section (a). The report shall set forth the following: 
(1) The regulations. 
(2) A comprehensive description of the require-
ments identified under clause (i) of subsection 
(a)(2)(B), and a comprehensive description of the 
manner in which the roles, authorities, responsibil-
ities, and lines of supervision under clause (ii) of that 
subsection will further the achievement of such re-
quirements. 
(3) A comprehensive description of the manner 
in which the regulations will meet the requirements 
in subsection (a)(2)(C). 
(c) COMPTROLLER GENERAL REPORT.— 
(1) IN
GENERAL.—Not later than 18 months 
after the date of the enactment of this Act, the Comp-
troller General of the United States shall submit to
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† HR 4310 EAS1S 
the appropriate committees of Congress a report on 
the progress of the Department of Defense in imple-
menting the regulations prescribed under subsection 
(a). The report may include such additional com-
ments and information on the regulations and the 
implementation of the regulations as the Comptroller 
General considers appropriate. 
(2) APPROPRIATE
COMMITTEES
OF
CONGRESS 
DEFINED.—In this subsection, the term ‘‘appropriate 
committees of Congress’’ means— 
(A) the Committee on Armed Services, the 
Committee on Homeland Security and Govern-
mental Affairs, and the Committee on Appro-
priations of the Senate; and 
(B) the Committee on Armed Services, the 
Committee on Oversight and Government Re-
form, and the Committee on Appropriations of 
the House of Representatives. 
SEC. 862. ANNUAL REPORTS ON CONTRACT SUPPORT FOR 
OVERSEAS CONTINGENCY OPERATIONS IN-
VOLVING COMBAT OPERATIONS. 
(a) REPORTS REQUIRED.— 
(1) DEPARTMENT OF DEFENSE.—Not later than 
one year after the commencement or designation of a 
contingency operation outside the United States that
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† HR 4310 EAS1S 
includes combat operations, and annually thereafter 
until the termination of the operation, the Secretary 
of Defense shall, except as provided in subsection (b), 
submit to the appropriate committees of Congress a 
report on contract support for the Department of De-
fense for the operation. 
(2) DEPARTMENT OF STATE AND USAID.—Not 
later than one year after the commencement or des-
ignation of a contingency operation outside the 
United States that includes combat operations, and 
annually thereafter until the termination of the oper-
ation, the Secretary of State and the Administrator 
of the United States Agency for International Devel-
opment shall, except as provided in subsection (b), 
each submit to the appropriate committees of Con-
gress a report on contract support for the operation 
for the Department of State or the United States 
Agency for International Development, as the case 
may be. 
(b) EXCEPTION.—If the total annual amount of obliga-
tions for contracts for support of a contingency operation 
otherwise described by subsection (a) do not exceed 
$250,000,000 in an annual reporting period otherwise cov-
ered by that subsection, no report shall be required on the
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† HR 4310 EAS1S 
operation under that subsection for that annual reporting 
period. 
(c) ELEMENTS.— 
(1) IN
GENERAL.—Each report of an agency 
under subsection (a) regarding an operation shall set 
forth the following: 
(A) A description and assessment of the pol-
icy, planning, management, and oversight of the 
agency with respect to contract support for the 
operation. 
(B) With respect to contracts entered into in 
connection with the operation: 
(i) The total number of contracts en-
tered into as of the date of such report. 
(ii) The total number of such contracts 
that are active as of such date. 
(iii) The total value of contracts en-
tered into as of such date. 
(iv) The total value of such contracts 
that are active as of such date. 
(v) An identification of the extent to 
which the contracts entered into as of such 
date were entered into using competitive 
procedures.
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† HR 4310 EAS1S 
(vi) The total number of contractor 
personnel working under contracts entered 
into as of the end of each calendar quarter 
during the one-year period ending on such 
date. 
(vii) The total number of contractor 
personnel performing security functions 
under contracts entered into as of the end of 
each calendar quarter during the one-year 
period ending on such date. 
(viii) The total number of contractor 
personnel killed or wounded under any con-
tracts entered into. 
(C) The sources of information and data 
used to prepare the portion of such report re-
quired by subparagraph (B). 
(D) A description of any known limitations 
of the information or data reported under sub-
paragraph (B), including known limitations in 
methodology or data sources. 
(E) Any plans for strengthening collection, 
coordination, and sharing of information on con-
tracts entered into in connection with the oper-
ation.
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† HR 4310 EAS1S 
(2) ESTIMATES.—In determining the total num-
ber of contractor personnel working under contracts 
for purposes of paragraph (1)(B)(vi), the Secretary or 
the Administrator may use estimates for any category 
of contractor personnel for which such Secretary or 
the Administrator, as the case may be, determines it 
is not feasible to provide an actual count. Each report 
under subsection (a) shall fully disclose the extent to 
which such an estimate is used in lieu of an actual 
count. 
(d) PROHIBITION ON PREPARATION BY CONTRACTOR 
PERSONNEL.—A report under subsection (a) may not be 
prepared by contractor personnel. 
(e) USE OF EXISTING REPORTS FOR CERTAIN CONTIN-
GENCY OPERATIONS.—The requirement to submit reports 
under subsection (a) on a contingency operation in Iraq 
or Afghanistan may be met by the submittal of the reports 
required by section 863 of the National Defense Authoriza-
tion Act for Fiscal Year 2008 (10 U.S.C. 2302 note). 
(f) APPROPRIATE COMMITTEES
OF CONGRESS DE-
FINED.—In this section, the term ‘‘appropriate committees 
of Congress’’ means— 
(1) the Committee on Armed Services, the Com-
mittee on Foreign Relations, the Committee on Home-
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† HR 4310 EAS1S 
land Security and Governmental Affairs, and the 
Committee on Appropriations of the Senate; and 
(2) the Committee on Armed Services, the Com-
mittee on Foreign Affairs, the Committee on Over-
sight and Government Reform, and the Committee on 
Appropriations of the House of Representatives. 
SEC. 863. INCLUSION OF CONTRACT SUPPORT IN CERTAIN 
REQUIREMENTS FOR DEPARTMENT OF DE-
FENSE 
PLANNING, 
JOINT 
PROFESSIONAL 
MILITARY EDUCATION, AND MANAGEMENT 
STRUCTURE. 
(a) READINESS REPORTING SYSTEM.—Section 117(c) 
of title 10, United States Code, is amended by adding at 
the end the following new paragraph: 
‘‘(8) Measure, on an annual basis, the capability 
of operational contract support to support current 
and anticipated wartime missions of the armed 
forces.’’. 
(b) CONTINGENCY PLANNING
AND PREPAREDNESS 
FUNCTIONS OF CJCS.—Section 153(a)(3) of such title is 
amended by adding at the end the following new subpara-
graph: 
‘‘(E) In coordination with the Under Secretary 
of Defense for Acquisition, Technology, and Logistics, 
the Secretaries of the military departments, the heads
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† HR 4310 EAS1S 
of the Defense Agencies, and the commanders of the 
combatant commands, determining the operational 
contract support requirements of the armed forces and 
recommending the resources required to improve and 
enhance operational contract support for the armed 
forces and planning for such operational contract 
support.’’. 
(c) JOINT PROFESSIONAL MILITARY EDUCATION.— 
(1) CONTINGENCY
OPERATIONS
AS
MATTER 
WITHIN COURSE OF JPME.—Section 2151(a) of such 
title is amended by adding at the end the following 
new paragraph: 
‘‘(6) Contingency operations.’’. 
(2) 
CURRICULUM
FOR
THREE-PHASE
AP-
PROACH.—Section 2154 of such title is amended by 
adding at the end the following new subsection: 
‘‘(c) CURRICULUM RELATING TO CONTINGENCY OPER-
ATIONS.—(1) The curriculum for each phase of joint profes-
sional military education implemented under this section 
shall include content appropriate for such phase on the fol-
lowing: 
‘‘(A) Requirements definition. 
‘‘(B) Contingency program management. 
‘‘(C) Contingency contracting.
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‘‘(D) The strategic impact of contracting on 
military missions. 
‘‘(2) In this subsection, the terms ‘requirements defini-
tion’, ‘contingency program management’, and ‘contingency 
contracting’ have the meaning given those terms in section 
2333(f) of this title.’’. 
(d) MANAGEMENT STRUCTURE.—Section 2330(c)(2) of 
such title is amended by striking ‘‘other than services’’ and 
all that follows and inserting ‘‘including services in support 
of contingency operations. The term does not include serv-
ices relating to research and development or military con-
struction.’’. 
SEC. 864. RISK ASSESSMENT AND MITIGATION FOR CON-
TRACTOR PERFORMANCE OF CRITICAL FUNC-
TIONS IN SUPPORT OF OVERSEAS CONTIN-
GENCY OPERATIONS. 
(a) COMPREHENSIVE RISK ASSESSMENT AND MITIGA-
TION PLAN REQUIRED.— 
(1) IN GENERAL.—Subject to paragraphs (2) and 
(3), not later than six months after the commence-
ment or designation of an overseas contingency oper-
ation that includes or is expected to include combat 
operations, the head of each covered agency shall per-
form a comprehensive risk assessment and develop a 
risk mitigation plan for operational and political
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risks associated with contractor performance of crit-
ical functions in support of the operation for such 
covered agency. 
(2) EXCEPTIONS.—Except as provided in para-
graph (3), a risk assessment and risk mitigation plan 
shall not be required under paragraph (1) for an 
overseas contingency operation if both— 
(A) the operation is not expected to con-
tinue for more than one year; and 
(B) the total annual amount of obligations 
by the United States Government for contracts 
for support of or in connection with the oper-
ation is not expected to exceed, $250,000,000 in 
any fiscal year. 
(3) TERMINATION
OF
EXCEPTIONS.—Notwith-
standing paragraph (2), the head of a covered agency 
shall perform a risk assessment and develop a risk 
mitigation plan under paragraph (1) for an overseas 
contingency operation with regard to which a risk as-
sessment and risk mitigation plan has not previously 
been performed under paragraph (1) not later than 
60 days after the first date on which either of the fol-
lowing occurs: 
(A) The operation has continued for more 
than one year.
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(B) The total amount of obligations by the 
United States Government for contracts for sup-
port of or in connection with the operation has 
exceeded $250,000,000 in a fiscal year. 
(b) COMPREHENSIVE RISK ASSESSMENTS.—A com-
prehensive risk assessment for an overseas contingency oper-
ation under subsection (a) shall consider, at a minimum, 
risks relating to the following: 
(1) The goals and objectives of the operation 
(such as risks from behavior that injures innocent 
members of the local population or outrages their sen-
sibilities). 
(2) The continuity of the operation (such as risks 
from contractors walking off the job or being unable 
to perform when there is no timely back-up avail-
able). 
(3) The safety of military and civilian personnel 
of the United States if the presence or performance of 
contractor personnel creates unsafe conditions or in-
vites attack. 
(4) The managerial control of the Government 
over the operation (such as risks from over-reliance on 
contractors to monitor other contractors with inad-
equate means for Government personnel to monitor 
their work).
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(5) The critical organic or core capabilities of 
the Government, including critical knowledge or insti-
tutional memory of key operations areas and subject- 
matter expertise. 
(6) The ability of the Government to control 
costs, avoid organizational or personal conflicts of in-
terest, and minimize waste, fraud, and abuse. 
(c) RISK MITIGATION PLANS.—A risk mitigation plan 
for an overseas contingency operation under subsection (a) 
shall include, at a minimum, the following: 
(1) For each high risk area identified in the 
comprehensive risk assessment for the operation per-
formed under subsection (a)— 
(A) specific actions to mitigate or reduce 
such risk, including, but not limited to, the de-
velopment of alternative capabilities to reduce 
reliance on contractor performance of critical 
functions; 
(B) measurable milestones for the imple-
mentation of planned risk mitigation or risk re-
duction measures; and 
(C) a process for monitoring, measuring, 
and documenting progress in mitigating or re-
ducing risk.
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(2) A continuing process for identifying and ad-
dressing new and changed risks arising in the course 
of the operation, including the periodic reassessment 
of risks and the development of appropriate risk miti-
gation or reduction plans for any new or changed 
high risk area identified. 
(d) REPORTS TO CONGRESS.— 
(1) IN GENERAL.—Not later than 30 days after 
the completion of a comprehensive risk assessment 
and risk mitigation plan under subsection (a), the 
head of the covered agency concerned shall submit to 
the appropriate committees of Congress a report set-
ting forth a summary description of the assessment 
and plan, including a description of the risks identi-
fied through the assessment and the actions to be 
taken to address such risks. 
(2) FORM.—Each report shall be submitted in 
unclassified form, but may include a classified annex. 
(e) CRITICAL FUNCTIONS.—For purposes of this sec-
tion, critical functions include, at a minimum, the fol-
lowing: 
(1) Private security functions, as that term is 
defined in section 864(a)(5) of the National Defense 
Authorization Act for Fiscal Year 2008 (10 U.S.C. 
2302 note).
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(2) Training and advising government per-
sonnel, including military and security personnel, of 
a host nation. 
(3) Conducting intelligence or information oper-
ations. 
(4) Any other functions that are closely associ-
ated with inherently governmental functions, includ-
ing the functions set forth in section 7.503(d) of the 
Federal Acquisition Regulation. 
(f) DEFINITIONS.—In this section: 
(1) The term ‘‘appropriate committees of Con-
gress’’ means— 
(A) the Committee on Armed Services, the 
Committee on Foreign Relations, the Committee 
on Homeland Security and Governmental Af-
fairs, and the Committee on Appropriations of 
the Senate; and 
(B) the Committee on Armed Services, the 
Committee on Foreign Affairs, the Committee on 
Oversight and Government Reform, and the 
Committee on Appropriations of the House of 
Representatives. 
(2) The term ‘‘covered agency’’ means the fol-
lowing: 
(A) The Department of Defense.
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(B) The Department of State. 
(C) The United States Agency for Inter-
national Development. 
(3) The term ‘‘overseas contingency operation’’ 
means a military operation outside the United States 
and its territories and possessions that is a contin-
gency operation (as that term is defined in section 
101(a)(13) of title 10, United States Code). 
SEC. 865. EXTENSION AND MODIFICATION OF REPORTS ON 
CONTRACTING IN IRAQ AND AFGHANISTAN. 
(a) TWO-YEAR EXTENSION
OF REQUIREMENT
FOR 
JOINT REPORT.—Subsection (a)(5) of section 863 of the Na-
tional Defense Authorization Act for Fiscal Year 2008 (10 
U.S.C. 2302 note) is amended by striking ‘‘February 1, 
2013’’ and inserting ‘‘February 1, 2015’’. 
(b) REPEAL OF COMPTROLLER GENERAL REVIEW.— 
Such section is further amended by striking subsection (b). 
(c) CONFORMING AMENDMENTS.— 
(1) IN
GENERAL.—Such section is further 
amended— 
(A) by striking ‘‘JOINT
REPORT
RE-
QUIRED.—’’ and all that follows through ‘‘para-
graph (6)’’ and inserting ‘‘IN GENERAL.—Except 
as provided in subsection (f)’’;
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(B) by striking ‘‘this subsection’’ each place 
it appears and inserting ‘‘this section’’; 
(C) 
by 
redesignating 
paragraphs 
(2) 
through (7) as subsections (b) through (g), re-
spectively, and indenting the left margins of such 
subsections, as so redesignated, two ems from the 
left margin; 
(D) in subsection (b), as redesignated by 
subparagraph (C) of this paragraph, by redesig-
nating subparagraphs (A) through (H) as para-
graphs (1) through (8), respectively, and indent-
ing the left margin of such paragraphs, as so re-
designated, four ems from the left margin; 
(E) in subsection (c), as redesignated by 
subparagraph (C) of this paragraph— 
(i) by redesignating subparagraphs (A) 
through (C) as paragraphs (1) through (3), 
respectively, and indenting the left margin 
of such paragraphs, as so redesignated, four 
ems from the left margin; and 
(ii) by striking ‘‘paragraph (2)’’ each 
place it appears and inserting ‘‘subsection 
(b)’’; 
(F) in subsection (f), as redesignated by 
subparagraph (C) of this paragraph, by striking
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‘‘this paragraph’’ and inserting ‘‘this sub-
section’’; and 
(G) in subsection (g), as so redesignated, by 
striking ‘‘paragraph (2)(F)’’ and inserting ‘‘sub-
section (b)(6)’’. 
(2) HEADING AMENDMENT.—The heading of such 
section is amended by striking ‘‘AND
COMP-
TROLLER GENERAL REVIEW’’. 
SEC. 866. EXTENSION OF TEMPORARY AUTHORITY TO AC-
QUIRE PRODUCTS AND SERVICES IN COUN-
TRIES ALONG A MAJOR ROUTE OF SUPPLY TO 
AFGHANISTAN. 
(a) EXTENSION.—Subsection (f) of section 801 of the 
National Defense Authorization Act for Fiscal Year 2010 
(Public Law 111–84; 123 Stat. 2399) is amended by strik-
ing ‘‘on or after the date occurring three years after the 
date of the enactment of this Act’’ and inserting ‘‘after De-
cember 31, 2014’’. 
(b) REPEAL
OF
EXPIRED
REPORTING
REQUIRE-
MENT.—Subsection (g) of such section is repealed. 
(c) CLERICAL AMENDMENT.—The heading of such sec-
tion is amended by striking ‘‘; REPORT’’.
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SEC. 867. COMPLIANCE WITH BERRY AMENDMENT RE-
QUIRED FOR UNIFORM COMPONENTS SUP-
PLIED TO AFGHANISTAN MILITARY OR AF-
GHANISTAN NATIONAL POLICE. 
(a) REQUIREMENT.—In the case of any textile compo-
nents supplied by the Department of Defense to the Afghani-
stan National Army or the Afghanistan National Police for 
purposes of production of uniforms, section 2533a of title 
10, United States Code, shall apply, and no exceptions or 
exemptions under that section shall apply. 
(b) EFFECTIVE DATE.—This section shall apply to so-
licitations issued and contracts awarded for the procure-
ment of textile components described in subsection (a) after 
the date of the enactment of this Act. 
SEC. 868. SENSE OF SENATE ON THE CONTRIBUTIONS OF 
LATVIA AND OTHER NORTH ATLANTIC TREA-
TY ORGANIZATION MEMBER NATIONS TO THE 
SUCCESS OF THE NORTHERN DISTRIBUTION 
NETWORK. 
(a) FINDINGS.—The Senate makes the following find-
ings: 
(1) The remote and austere environments in 
which United States troops are required to operate as 
part of the International Security Assistance Force 
(ISAF) mission in Afghanistan have increased the 
need for reliable lines of supply in southwest Asia.
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(2) The country of Afghanistan presents unique 
logistics challenges, which have precipitated the devel-
opment of several redundant lines of supply. 
(3) United States Transportation Command and 
the Defense Logistics Agency (DLA), in consultation 
with United States Embassy officials and other par-
ties, have successfully established memoranda of un-
derstanding and other agreements with nations in 
and around southwest Asia to ensure the reliability of 
lines of supply to Afghanistan. 
(4) The lines of supply through Pakistan have 
been repeatedly threatened by instability in that 
country. Airlifting goods to Afghanistan, while safer, 
is expensive. 
(5) The Northern Distribution Network (NDN) 
was established in late 2008 to ensure that a safe and 
cost-effective line of supply is available for United 
States troops in Afghanistan. 
(6) The two prongs of supply provided by the 
Northern Distribution Network ship nonlethal goods 
from the Baltic ports in the north and the Caucauses 
in the west to southwest Asia and Afghanistan. 
(7) The Northern Distribution Network has been 
successful and now handles more than 50 percent of 
cargo shipped to Afghanistan.
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(8) North Atlantic Treaty Organization (NATO) 
member nations along the Northern Distribution Net-
work routes have contributed significantly to the suc-
cess of the Northern Distribution Network. 
(9) The United States has strong economic ties 
to Northern Distribution Network nations that are 
members of the North Atlantic Treaty Organization, 
and these nations may be able to provide quality 
goods and services for near and long-term use by the 
Department of Defense. 
(10) Since 2009 the port of Riga, on the Baltic 
Sea, has been a critical overland entry point for goods 
being shipped using the Northern Distribution Net-
work. Latvia is a member of the North Atlantic Trea-
ty Organization and has been an ally of the United 
States in the region for many years. 
(11) In September 2010, the Defense Logistics 
Agency, the General Services Administration, and 
other parties hosted a local procurement conference in 
Riga, Latvia. 
(12) One hundred nine Latvian vendors attended 
the September 2010 conference in Riga, and contracts 
with Latvian vendors have been entered into as a re-
sult.
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† HR 4310 EAS1S 
(13) In May 2012, Latvia hosted an inter-
national workshop in Riga to examine ways of trans-
forming the Northern Distribution Network from a 
route for the delivery of United States and other Al-
lies’ non-lethal goods to Afghanistan into a commer-
cial route that would support the economic growth of 
Afghanistan and the southwest Asia region. 
(b) SENSE OF SENATE.—It is the sense of the Senate 
that— 
(1) Latvia and other North Atlantic Treaty Or-
ganization member nations along the Northern Dis-
tribution Network routes are key economic and secu-
rity partners of the United States and are to be com-
mended for their contribution to ensuring United 
States and International Security Assistance Force 
troops have reliable lines of supply to achieve the mis-
sion in Afghanistan; 
(2) when quality products at competitive prices 
are available, significant effort should be made to pro-
cure goods locally from Latvia and other North Atlan-
tic Treaty Organization member nations along the 
Northern Distribution Network routes; and 
(3) Latvia and other North Atlantic Treaty Or-
ganization member nations along the Northern Dis-
tribution Network routes remain allies of the United
391 
† HR 4310 EAS1S 
States in the region, and a mutually beneficial rela-
tionship should continue to be cultivated between the 
United States and Latvia and such other nations in 
the future. 
SEC. 869. RESPONSIBILITIES OF INSPECTORS GENERAL 
FOR OVERSEAS CONTINGENCY OPERATIONS. 
(a) IN GENERAL.—The Inspector General Act of 1978 
(5 U.S.C. App.) is amended— 
(1) by redesignating section 8L as section 8M; 
and 
(2) by inserting after section 8K the following 
new section 8L: 
‘‘SEC. 8L. SPECIAL PROVISIONS CONCERNING OVERSEAS 
CONTINGENCY OPERATIONS. 
‘‘(a) IN GENERAL.—Upon the commencement or des-
ignation of a military operation as an overseas contingency 
operation that exceeds 90 days, the Inspectors General spec-
ified in subsection (b) shall have the responsibilities speci-
fied in this section. 
‘‘(b) INSPECTORS GENERAL.—The Inspectors General 
specified in this subsection are the Inspectors General as 
follows: 
‘‘(1) The Inspector General of the Department of 
Defense.
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‘‘(2) The Inspector General of the Department of 
State. 
‘‘(3) The Inspector General of the United States 
Agency for International Development. 
‘‘(c) STANDING COMMITTEE ON OVERSEAS CONTIN-
GENCY OPERATIONS.—(1) The Council of Inspectors Gen-
eral on Integrity and Efficiency (CIGIE) shall establish a 
standing committee on overseas contingency operations. The 
standing committee shall consist of the following: 
‘‘(A) A chair, who shall be the Lead Inspector 
General for an overseas contingency operation under 
subsection (d) if such an operation is underway, and 
shall be an Inspector General specified in subsection 
(b) selected by the Inspectors General specified in that 
subsection from among themselves if such an oper-
ation is not underway. 
‘‘(B) The other Inspectors General specified in 
subsection (b). 
‘‘(C) For the duration of any contingency oper-
ation that exceeds 90 days, any other inspectors gen-
eral determined by the chair, in coordination with the 
other Inspectors General specified in subsection (b), to 
have actual or potential areas of responsibility with 
respect to the contingency operation.
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‘‘(2) The standing committee shall have such on-going 
responsibilities, including planning, coordination, and de-
velopment of practices, to improve oversight of overseas con-
tingency operations as the chair considers appropriate. 
‘‘(3)(A) For the duration of any contingency operation 
that exceeds 90 days, the standing committee shall develop 
and update on an annual basis a joint-strategic plan for 
ongoing and planned oversight of the contingency operation 
by the Inspectors General specified in subsection (b) and 
designated pursuant to paragraph (1)(C), including the fol-
lowing: 
‘‘(i) Audit and available inspection plans. 
‘‘(ii) An overall assessment of such oversight, in-
cluding projects or areas (whether departmental or 
government-wide) of concern or in need of further re-
view. 
‘‘(iii) Such other matters as the Lead Inspector 
General for the contingency operation considers ap-
propriate. 
‘‘(B) Each plan under this paragraph, and any update 
of such plan, shall be made available on an Internet website 
available to the public. Each plan, and any update of such 
plan, made so available shall be made available in unclassi-
fied form.
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† HR 4310 EAS1S 
‘‘(d) LEAD INSPECTOR GENERAL FOR OVERSEAS CON-
TINGENCY OPERATIONS.—(1) There shall be a lead inspec-
tor general for each overseas contingency operation that ex-
ceeds 90 days (in this section referred to as the ‘Lead In-
spector General’ for the contingency operation concerned). 
‘‘(2) The Lead Inspector General for a contingency op-
eration shall be the Inspector General of the Department 
of Defense, who shall assume such role not later than 90 
days after the commencement or designation of the military 
operation concerned as a contingency operation. 
‘‘(e) RESPONSIBILITIES OF LEAD INSPECTOR GEN-
ERAL.—(1) The Lead Inspector General for an overseas con-
tingency operation shall have the following responsibilities: 
‘‘(A) To conduct oversight, in full coordination 
with the other Inspectors General specified in sub-
section (b), over all aspects of the contingency oper-
ation and to ensure, either through joint or indi-
vidual audits, inspections, and investigations, inde-
pendent and effective oversight of all programs and 
operations of all departments and agencies in the con-
tingency operation. 
‘‘(B) To appoint, from among the offices of the 
other Inspectors General specified in subsection (b), 
an Inspector General to act as Associate Inspector 
General for the overseas contingency operation who
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† HR 4310 EAS1S 
shall act in a coordinating role to assist the Lead In-
spector General in the discharge of responsibilities 
under this subsection. 
‘‘(C)(i) If none of the Inspectors General speci-
fied in subsection (b) has principal jurisdiction over 
a matter with respect to the contingency operation, to 
exercise responsibility for discharging oversight re-
sponsibilities in accordance with this Act with respect 
to such matter. 
‘‘(ii) If more than one of the Inspectors General 
specified in subsection (b) has jurisdiction over a 
matter with respect to the contingency operation, to 
determine principal jurisdiction for discharging over-
sight responsibilities in accordance with this Act with 
respect to such matter. 
‘‘(D) To carry out such other responsibilities re-
lating to the coordination and efficient and effective 
discharge by the Inspectors General specified in sub-
section (b) of duties relating to the contingency oper-
ation as the Lead Inspector General shall specify. 
‘‘(2) The Lead Inspector General for an overseas con-
tingency operation shall discharge the responsibilities for 
the contingency operation under this subsection in a man-
ner consistent with the authorities and requirements of this 
Act generally and the authorities and requirements applica-
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† HR 4310 EAS1S 
ble to the Inspectors General specified in subsection (b) 
under this Act. 
‘‘(f) REPORTS.—(1) The Lead Inspector General for an 
overseas contingency operation shall, in coordination with 
the other Inspectors General specified in subsection (b), sub-
mit to the appropriate committees of Congress on a semi- 
annual basis, and make available on an Internet website 
available to the public, a report summarizing, for the semi- 
annual period, the activities of the Lead Inspector General 
and the other Inspectors General specified in subsection (b) 
with respect to the contingency operation, including— 
‘‘(A) the status and results of audits, inspections, 
and closed investigations, and of the number of refer-
rals to the Department of Justice; 
‘‘(B) updates and changes to overall plans for the 
review of the contingency operation by inspectors gen-
eral, including plans for inspections and audits; and 
‘‘(C) the activities under programs and oper-
ations funded with amounts appropriated or other-
wise made available for the overseas contingency oper-
ation, including the information specified in para-
graph (2). 
‘‘(2) The information specified in this paragraph with 
respect to an overseas contingency operation is as follows:
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‘‘(A) Obligations and expenditures of appro-
priated funds. 
‘‘(B) A project-by-project and program-by-pro-
gram accounting of the costs incurred to date for the 
contingency operation, together with the estimate of 
the Department of Defense, the Department of State, 
and the United States Agency for International De-
velopment, as applicable, of the costs to complete each 
project and program above the simplified acquisition 
threshold. 
‘‘(C) Revenues attributable to or consisting of 
funds provided by foreign nations or international or-
ganizations to programs and projects for the contin-
gency operation that are funded by any department 
or agency of the United States Government, and any 
obligations or expenditures of such revenues. 
‘‘(D) Revenues attributable to or consisting of 
foreign assets seized or frozen that contribute to pro-
grams and projects for the contingency operation that 
are funded by any department or agency of the 
United States Government, and any obligations or ex-
penditures of such revenues. 
‘‘(E) Operating expenses of agencies or entities 
receiving amounts appropriated or otherwise made 
available for the contingency operation.
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‘‘(F) In the case of any contract, grant, agree-
ment, or other funding mechanism described in para-
graph (3) with respect to the contingency operation— 
‘‘(i) the amount of the contract, grant, 
agreement, or other funding mechanism; 
‘‘(ii) a brief discussion of the scope of the 
contract, grant, agreement, or other funding 
mechanism; 
‘‘(iii) a discussion of how the department or 
agency of the United States Government involved 
in the contract, grant, agreement, or other fund-
ing mechanism identified, and solicited offers 
from, potential individuals or entities to perform 
the contract, grant, agreement, or other funding 
mechanism, together with a list of the potential 
individuals or entities that were issued solicita-
tions for the offers; and 
‘‘(iv) the justification and approval docu-
ments on which was based the determination to 
use procedures other than procedures that pro-
vide for full and open competition. 
‘‘(3) A contract, grant, agreement, or other funding 
mechanism described in this paragraph is any major con-
tract, grant, agreement, or other funding mechanism that 
is entered into by any department or agency of the United
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† HR 4310 EAS1S 
States Government that involves the use of amounts appro-
priated or otherwise made available for reconstruction and 
other related activities in the contingency operation con-
cerned with any public or private sector entity, including 
any of the following purposes: 
‘‘(A) To build or rebuild physical infrastructure. 
‘‘(B) To establish or reestablish a political or so-
cietal function or institution. 
‘‘(C) To provide products or services. 
‘‘(4) Each report under this subsection shall be sub-
mitted in unclassified form, but may include a classified 
annex. 
‘‘(g) TEMPORARY
EMPLOYMENT
AUTHORITY.—(1) 
Each Inspector General specified in subsection (b) may em-
ploy, on a temporary basis using the authorities in section 
3161 of title 5, United States Code (but without regard to 
subsections (a) and (b)(2) of such section), such auditors, 
inspectors, investigators, and other personnel as such In-
spector General considers appropriate for purposes of assist-
ing such Inspector General in discharging responsibilities 
under subsection (e) with respect to an overseas contingency 
operation. 
‘‘(2) The employment under this subsection of an an-
nuitant described in section 9902(g) of title 5, United States 
Code, shall be governed by the provisions of such section
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† HR 4310 EAS1S 
as if the position to which employed was a position in the 
Department of Defense. 
‘‘(3) The employment under this subsection of an an-
nuitant receiving an annuity under the Foreign Service Re-
tirement and Disability System under chapter 8 of the For-
eign Service Act of 1980 (22 U.S.C. 4041 et seq.) shall be 
treated as employment in an elective position in the Gov-
ernment on a temporary basis under section 824(b) of the 
Foreign Service Act of 1980 (22 U.S.C. 4064(b)) for which 
continued receipt of annuities may be elected as provided 
in such section. 
‘‘(4) The authority to employ personnel under this sub-
section for a contingency operation shall cease as provided 
for in subsection (h). 
‘‘(h) SUNSET FOR PARTICULAR CONTINGENCY OPER-
ATIONS.—The requirements and authorities of this section 
with respect to an overseas contingency operation shall 
cease at the earlier of— 
‘‘(1) the end of the first fiscal year after the com-
mencement or designation of the contingency oper-
ation in which the total amount appropriated for the 
contingency operation is less than $250,000,000 (in 
constant fiscal year 2012 dollars); or
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† HR 4310 EAS1S 
‘‘(2) the date that is 18 months after the date of 
the issuance by the Secretary of Defense of an order 
terminating the contingency operation. 
‘‘(i) CONSTRUCTION OF AUTHORITY.—Nothing in this 
Act shall be construed to limit the ability of the Inspectors 
General specified in subsection (b) to enter into agreements 
to conduct joint audits, inspections, or investigations in the 
exercise of their oversight responsibilities in accordance 
with this Act with respect to overseas contingency oper-
ations. 
‘‘(j) DEFINITIONS.—In this section: 
‘‘(1) The term ‘overseas contingency operation’ 
means a military operation outside the United States 
and its territories and possessions that is a contin-
gency operation (as that term is defined in section 
101(a)(13) of title 10, United States Code). 
‘‘(2) The term ‘simplified acquisition threshold’ 
has the meaning provided that term in section 
2302(7) of title 10, United States Code.’’. 
(b) CONFORMING AMENDMENT RELATING
TO TEM-
PORARY EMPLOYMENT AUTHORITY.—Section 3161 of title 
5, United States Code, is amended by adding at the end 
the following new subsection: 
‘‘(j) LEAD INSPECTORS GENERAL FOR OVERSEAS CON-
TINGENCY OPERATIONS AS TEMPORARY ORGANIZATION.—
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† HR 4310 EAS1S 
In addition to the meaning given that term in subsection 
(a), the term ‘temporary organization’ for purposes of this 
subchapter shall, without regard to subsections (a) and 
(b)(2) of this section, also include the Lead Inspector Gen-
eral for an overseas contingency operation under section 8L 
of the Inspector General Act of 1978 and the Inspectors Gen-
eral and inspector general office personnel assisting the 
Lead Inspector General in the discharge of responsibilities 
and authorities under subsection (e) of such section 8L with 
respect to the contingency operation.’’. 
SEC. 870. AGENCY REPORTS AND INSPECTOR GENERAL AU-
DITS OF CERTAIN INFORMATION ON OVER-
SEAS CONTINGENCY OPERATIONS. 
(a) AGENCY REPORTS.—Not later than 180 days after 
the commencement or designation of a military operation 
as an overseas contingency operation and semi-annually 
thereafter during the duration of the contingency operation, 
the Secretary of Defense, the Secretary of State, and the 
Administrator of the United States Agency for Inter-
national Development shall each make available to the In-
spector General of the department or agency concerned the 
information required by subsection (f)(2) of section 8L of 
the Inspector General Act of 1978 (as amended by section 
869 of this Act) on the contingency operation.
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† HR 4310 EAS1S 
(b) INSPECTOR GENERAL AUDITS.—Not later than 90 
days after receipt of a report under subsection (a), each In-
spector General referred to in that subsection shall— 
(1) perform an audit on the quality of the infor-
mation submitted in such report, including an assess-
ment of the completeness and accuracy of the infor-
mation and the extent to which the information fully 
satisfies the requirements of such Inspector General in 
preparing the semi-annual report described in sub-
section (f)(1)(C) of section 8L of the Inspector General 
Act of 1978 (as so amended); and 
(2) submit to the appropriate committees of Con-
gress a report on the reliability, accuracy, and com-
pleteness of the information, including any signifi-
cant problems in such information. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘appropriate committees of Con-
gress’’ means— 
(A) the Committee on Armed Services, the 
Committee on Foreign Relations, the Committee 
on Homeland Security and Governmental Af-
fairs, and the Committee on Appropriations of 
the Senate; and 
(B) the Committee on Armed Services, the 
Committee on Foreign Affairs, the Committee on
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Oversight and Government Reform, and the 
Committee on Appropriations of the House of 
Representatives. 
(2) The term ‘‘overseas contingency operation’’ 
means a military operation outside the United States 
and its territories and possessions that is a contin-
gency operation (as that term is defined in section 
101(a)(13) of title 10, United States Code). 
SEC. 871. OVERSIGHT OF CONTRACTS AND CONTRACTING 
ACTIVITIES FOR OVERSEAS CONTINGENCY 
OPERATIONS IN RESPONSIBILITIES OF CHIEF 
ACQUISITION OFFICERS OF FEDERAL AGEN-
CIES. 
(a) IN GENERAL.—Subsection (b)(3) of section 1702 
of title 41, United States Code, is amended— 
(1) by redesignating subparagraphs (F) and (G) 
as subparagraphs (G) and (H), respectively; and 
(2) by inserting after subparagraph (E) the fol-
lowing new subparagraph (F): 
‘‘(F) advising the executive agency on the appli-
cability of relevant policy on the contracts of the 
agency for overseas contingency operations and ensur-
ing the compliance of the contracts and contracting 
activities of the agency with such policy;’’.
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† HR 4310 EAS1S 
(b) DEFINITION.—Such section is further amended by 
adding at the following new subsection: 
‘‘(d) OVERSEAS
CONTINGENCY
OPERATIONS
DE-
FINED.—In this section, the term ‘overseas contingency op-
erations’ means military operations outside the United 
States and its territories and possessions that are a contin-
gency operation (as that term is defined in section 
101(a)(13) of title 10).’’. 
SEC. 872. REPORTS ON RESPONSIBILITY WITHIN DEPART-
MENT OF STATE AND THE UNITED STATES 
AGENCY FOR INTERNATIONAL DEVELOPMENT 
FOR CONTRACT SUPPORT FOR OVERSEAS 
CONTINGENCY OPERATIONS. 
(a) DOS AND USAID REPORTS REQUIRED.—Not later 
than six months after the date of the enactment of this Act, 
the Secretary of State and the Administrator of the United 
States Agency for International Development shall, in con-
sultation with the Chief Acquisition Officer of the Depart-
ment of State and the Chief Acquisition Officer of the 
United States Agency for International Development, re-
spectively, each submit to the appropriate committees of 
Congress an assessment of Department of State and United 
States Agency for International Development policies gov-
erning contract support in overseas contingency operations.
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(b) ELEMENTS.—Each report under subsection (a) 
shall include the following: 
(1) A description and assessment of the roles and 
responsibilities of the officials, offices, and components 
of the Department of State or the United States Agen-
cy for International Development, as applicable, with-
in the chain of authority and responsibility for pol-
icy, planning, and execution of contract support for 
overseas contingency operations. 
(2) Procedures and processes of the Department 
or Agency, as applicable, on the following in connec-
tion with contract support for overseas contingency 
operations: 
(A) Collection, inventory, and reporting of 
data. 
(B) Acquisition planning. 
(C) Solicitation and award of contracts. 
(D) Requirements development and man-
agement. 
(E) Contract tracking and oversight. 
(F) Performance evaluations. 
(G) Risk management. 
(H) Interagency coordination and transi-
tion planning.
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(3) Strategies and improvements necessary for 
the Department or the Agency, as applicable, to ad-
dress reliance on contractors, workforce planning, and 
the recruitment and training of acquisition workforce 
personnel, including the anticipated number of per-
sonnel needed to perform acquisition management 
and oversight functions and plans for achieving per-
sonnel staffing goals, in connection with overseas con-
tingency operations. 
(c) COMPTROLLER GENERAL REPORT.—Not later than 
one year after the date of the enactment of this Act, the 
Comptroller General of the United States shall submit to 
the appropriate committees of Congress a report on the 
progress of the efforts of the Department of State and the 
United States Agency for International Development in im-
plementing improvements and changes identified under 
paragraphs (1) through (3) of subsection (b) in the reports 
required by subsection (a), together with such additional in-
formation as the Comptroller General considers appropriate 
to further inform such committees on issues relating to the 
reports required by subsection (a). 
(d) APPROPRIATE COMMITTEES OF CONGRESS DE-
FINED.—In this section, the term ‘‘appropriate committees 
of Congress’’ means—
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(1) the Committee on Foreign Relations, the 
Committee on Armed Services, the Committee on 
Homeland Security and Governmental Affairs, and 
the Committee on Appropriations of the Senate; and 
(2) the Committee on Foreign Affairs, the Com-
mittee on Armed Services, the Committee on Over-
sight and Government Reform, and the Committee on 
Appropriations of the House of Representatives. 
SEC. 873. PROFESSIONAL EDUCATION FOR DEPARTMENT 
OF STATE PERSONNEL ON ACQUISITION FOR 
DEPARTMENT OF STATE SUPPORT AND PAR-
TICIPATION IN OVERSEAS CONTINGENCY OP-
ERATIONS. 
(a) PROFESSIONAL EDUCATION REQUIRED.—The Sec-
retary of State shall develop and administer for Depart-
ment of State personnel specified in subsection (b) a course 
of professional education on acquisition by the Department 
of State for Department of State support for, and participa-
tion in, overseas contingency operations. 
(b) COVERED DEPARTMENT OF STATE PERSONNEL.— 
The Department of State personnel specified in this sub-
section are as follows: 
(1) The Chief Acquisition Officer of the Depart-
ment of State.
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(2) Personnel of the Department designated by 
the Chief Acquisition Officer, including contracting 
officers and other contracting personnel. 
(3) Such other personnel of the Department as 
the Secretary of State shall designate for purposes of 
this section. 
(c) ELEMENTS.— 
(1) CURRICULUM CONTENT.—The course of pro-
fessional education under this section shall include 
appropriate content on the following: 
(A) Contingency contracting. 
(B) Contingency program management. 
(C) The strategic impact of contracting 
costs on the mission and activities of the Depart-
ment of State. 
(D) Such other matters relating to acquisi-
tion by the Department for Department support 
for, or participation in, overseas contingency op-
erations as the Secretary of State considers ap-
propriate. 
(2) PHASED APPROACH.—The course of profes-
sional education may be broken into two or more 
phases of professional education with curriculum or 
modules of education suitable for the Department of 
State personnel specified in subsection (b) at different
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† HR 4310 EAS1S 
phases of professional advancement within the De-
partment. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘contingency contracting’’ means 
all stages of the process of acquiring property or serv-
ices by the Department of State for Department of 
State support for, and participation in, overseas con-
tingency operations. 
(2) The term ‘‘contingency program manage-
ment’’ means the process of planning, organizing, 
staffing, controlling, and leading specific acquisition 
programs and activities of the Department of State 
for Department of State support for, and participa-
tion in, overseas contingency operations. 
(3) The term ‘‘overseas contingency operation’’ 
means a military operation outside the United States 
and its territories and possessions that is a contin-
gency operation (as that term is defined in section 
101(a)(13) of title 10, United States Code). 
SEC. 874. DATABASE ON PRICE TRENDS OF ITEMS AND 
SERVICES UNDER FEDERAL CONTRACTS. 
(a) DATABASE REQUIRED.— 
(1) IN GENERAL.—Chapter 33 of title 41, United 
States Code, is amended by adding at the end the fol-
lowing new section:
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† HR 4310 EAS1S 
‘‘§ 3312. Database on price trends of items and serv-
ices under Federal contracts 
‘‘(a) DATABASE REQUIRED.—The Administrator shall 
establish and maintain a database of information on price 
trends for items and services under contracts with the Fed-
eral Government. The information in the database shall be 
designed to assist Federal acquisition officials in the fol-
lowing: 
‘‘(1) Monitoring developments in price trends for 
items and services under contracts with the Federal 
Government. 
‘‘(2) Conducting pricing or cost analyses for 
items and services under offers for contracts with the 
Federal Government, or otherwise conducting deter-
minations of the reasonableness of prices for items 
and services under such offers, and addressing un-
justified escalation in prices being paid by the Fed-
eral Government for items and services under con-
tracts with the Federal Government. 
‘‘(b) USE.—(1) The database under subsection (a) 
shall be available to executive agencies in the evaluation 
of offers for contracts with the Federal Government for items 
and services. 
‘‘(2) The Secretary of Defense may satisfy the require-
ments of this section by complying with the requirements
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† HR 4310 EAS1S 
of section 892 of the Ike Skelton National Defense Author-
ization Act for Fiscal Year 2011 (10 U.S.C. 2306a note).’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 33 of such title is 
amended by adding at the end the following new item: 
‘‘3312. Database on price trends of items and services under Federal contracts.’’. 
(b) USE OF ELEMENTS OF DEPARTMENT OF DEFENSE 
PILOT PROJECT.—In establishing the database required by 
section 3312 of title 41, United States Code (as added by 
subsection (a)), the Administrator of Federal Procurement 
Policy shall use and incorporate appropriate elements of 
the pilot project on pricing of the Department of Defense 
being carried out by the Director of Defense Pricing. 
SEC. 875. INFORMATION ON CORPORATE CONTRACTOR 
PERFORMANCE AND INTEGRITY THROUGH 
THE FEDERAL AWARDEE PERFORMANCE AND 
INTEGRITY INFORMATION SYSTEM. 
(a) INCLUSION OF CORPORATIONS AMONG COVERED 
PERSONS.—Subsection (b) of section 872 of the Duncan 
Hunter National Defense Authorization Act for Fiscal Year 
2009 (Public Law 110–417; 122 Stat. 4555) is amended 
by inserting ‘‘(including a corporation)’’ after ‘‘Any per-
son’’ both places it appears. 
(b) INFORMATION ON CORPORATIONS.—Subsection (d) 
of such section is amended by adding at the end the fol-
lowing new paragraph:
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† HR 4310 EAS1S 
‘‘(3) INFORMATION ON CORPORATIONS.—The in-
formation on a corporation in the database shall, to 
the extent practicable, include information on any 
parent, subsidiary, or successor entities to the cor-
poration in manner designed to give the acquisition 
officials using the database a comprehensive under-
standing of the performance and integrity of the cor-
poration in carrying out Federal contracts and 
grants.’’. 
SEC. 876. INCLUSION OF DATA ON CONTRACTOR PERFORM-
ANCE IN PAST PERFORMANCE DATABASES 
FOR EXECUTIVE AGENCY SOURCE SELECTION 
DECISIONS. 
(a) STRATEGY REQUIRED.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Federal Ac-
quisition Regulatory Council shall develop a strategy 
for ensuring that timely, accurate, and complete in-
formation on contractor performance is included in 
past performance databases used by executive agencies 
for making source selection decisions. 
(2) CONSULTATION
WITH
USDATL.—In devel-
oping the strategy required by this subsection, the 
Federal Acquisition Regulatory Council shall consult 
with the Under Secretary of Defense for Acquisition,
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† HR 4310 EAS1S 
Technology, and Logistics to ensure that the strategy 
is, to the extent practicable, consistent with the strat-
egy developed by the Under Secretary pursuant to sec-
tion 806 of the National Defense Authorization Act 
for Fiscal Year 2012 (Public Law 112–81; 125 Stat. 
1487; 10 U.S.C. 2302 note). 
(b) ELEMENTS.—The strategy required by subsection 
(a) shall, at a minimum— 
(1) establish standards for the timeliness and 
completeness of past performance submissions for pur-
poses of databases described in subsection (a); 
(2) assign responsibility and management ac-
countability for the completeness of past performance 
submissions for such purposes; and 
(3) ensure that past performance submissions for 
such purposes are consistent with award fee evalua-
tions in cases where such evaluations have been con-
ducted. 
(c) CONTRACTOR COMMENTS.—Not later than 180 
days after the date of the enactment of this Act, the Federal 
Acquisition Regulation shall be revised to require the fol-
lowing: 
(1) That affected contractors are provided, in a 
timely manner, information on contractor perform-
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† HR 4310 EAS1S 
ance to be included in past performance databases in 
accordance with subsection (a). 
(2) That such contractors are afforded up to 14 
calendar days, from the date of delivery of the infor-
mation provided in accordance with paragraph (1), 
to submit comments, rebuttals, or additional informa-
tion pertaining to past performance for inclusion in 
such databases. 
(3) That agency evaluations of contractor past 
performance, including any information submitted 
under paragraph (2), are included in the relevant 
past performance database not later than the date 
that is 14 days after the date of delivery of the infor-
mation provided in accordance with paragraph (1). 
(d) CONSTRUCTION.—Nothing in this section shall be 
construed to prohibit a contractor from submitting com-
ments, rebuttals, or additional information pertaining to 
past performance after the period described in subsection 
(c)(2) has elapsed or to prohibit a contractor from chal-
lenging a past performance evaluation in accordance with 
applicable laws, regulations, or procedures. 
(e) COMPTROLLER GENERAL REPORT.—Not later than 
18 months after the date of the enactment of this Act, the 
Comptroller General of the United States shall submit to 
the appropriate committees of Congress a report on the ac-
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† HR 4310 EAS1S 
tions taken by the Federal Acquisition Regulatory Council 
pursuant to this section, including an assessment of the fol-
lowing: 
(1) The extent to which the strategy required by 
subsection (a) is consistent with the strategy developed 
by the Under Secretary of Defense for Acquisition, 
Technology, and Logistics as described in subsection 
(a)(2). 
(2) The extent to which the actions of the Federal 
Acquisition Regulatory Council pursuant to this sec-
tion have otherwise achieved the objectives of this sec-
tion. 
(f) DEFINITIONS.—In this section: 
(1) The term ‘‘appropriate committees of Con-
gress’’ means— 
(A) the Committee on Armed Services, the 
Committee on Foreign Relations, the Committee 
on Homeland Security and Governmental Af-
fairs, and the Committee on Appropriations of 
the Senate; and 
(B) the Committee on Armed Services, the 
Committee on Foreign Affairs, the Committee on 
Oversight and Government Reform, and the 
Committee on Appropriations of the House of 
Representatives.
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† HR 4310 EAS1S 
(2) The term ‘‘executive agency’’ has the mean-
ing given that term in section 133 of title 41, United 
States Code, except that the term excludes the Depart-
ment of Defense and the military departments. 
(3) The term ‘‘Federal Acquisition Regulatory 
Council’’ means the Federal Acquisition Regulatory 
Council under section 1302(a) of title 41, United 
States Code. 
SEC. 877. PUBLIC AVAILABILITY OF DATABASE OF SENIOR 
DEPARTMENT OF DEFENSE OFFICIALS SEEK-
ING EMPLOYMENT WITH DEFENSE CONTRAC-
TORS. 
Section 847(b) of the National Defense Authorization 
Act for Fiscal Year 2008 (Public Law 110–181; 10 U.S.C. 
1701 note) is amended by adding at the end the following 
new paragraph: 
‘‘(3) PUBLIC AVAILABILITY OF INFORMATION.— 
The Secretary of Defense shall make available online 
to the public any information contained in the data-
base or repository required under paragraph (1) that 
is not confidential, personal, or proprietary in na-
ture.’’.
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Subtitle E—Other Matters 
SEC. 881. REQUIREMENTS AND LIMITATIONS FOR SUSPEN-
SION AND DEBARMENT OFFICIALS OF THE 
DEPARTMENT OF DEFENSE, THE DEPART-
MENT OF STATE, AND THE UNITED STATES 
AGENCY 
FOR 
INTERNATIONAL 
DEVELOP-
MENT. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the head of the covered 
agency concerned shall ensure the following: 
(1) There shall be not less than one suspension 
and debarment official— 
(A) in the case of the Department of De-
fense, for each of the Department of the Army, 
the Department of the Navy, the Department of 
the Air Force, and the Defense Logistics Agency; 
(B) for the Department of State; and 
(C) for the United States Agency for Inter-
national Development. 
(2) A suspension and debarment official under 
paragraph (1) may not report to or be subject to the 
supervision of the acquisition office or the Inspector 
General of— 
(A) in the case of the Department of De-
fense, either the Department of Defense or the
419 
† HR 4310 EAS1S 
military department or Defense Agency con-
cerned; and 
(B) in the case of any other covered agency, 
the acquisition office or the Inspector General of 
such agency. 
(3)(A) Except as provided in subparagraph (B), 
the duties of a suspension and debarment official 
under paragraph (1) may include only the following: 
(i) The direction, management, and over-
sight of suspension and debarment activities. 
(ii) The direction, management, and over-
sight of fraud remedies activities. 
(iii) Membership and participation in the 
Interagency Committee on Debarment and Sus-
pension in accordance with Executive Order No. 
12549 and section 873 of the Duncan Hunter 
National Defense Authorization Act for Fiscal 
Year 2009 (as amended by this section). 
(B) The limitation in subparagraph (A) shall 
not be construed to prohibit a suspension and debar-
ment official under paragraph (1) from providing au-
thorized legal advice to the extent that the provision 
of such advice does not present a conflict of interest 
with the exercise of the duties of the suspension and 
debarment official under subparagraph (A).
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† HR 4310 EAS1S 
(4) Each suspension and debarment official 
under paragraph (1) shall have a staff and resources 
adequate for the discharge of the suspension and de-
barment responsibilities of such official. 
(5) Each suspension and debarment official 
under paragraph (1) shall document the basis for any 
decision taken pursuant to a referral in accordance 
with the policies established under paragraph (7), in-
cluding, but not limited to, the following: 
(A) Any decision to suspend or debar any 
person or entity. 
(B) Any decision not to suspend or debar 
any person or entity. 
(C) Any decision declining to pursue sus-
pension or debarment of any person or entity. 
(D) Any administrative agreement entered 
with any person or persons in lieu of suspension 
or debarment of such person or entity. 
(6) Any decision under subparagraphs (B) 
through (D) of paragraph (5) shall not preclude a 
subsequent decision by a suspension and debarment 
official under paragraph (1) to suspend, debar, or 
enter into any administrative agreement with any 
person or entity based on additional information or 
changed circumstances. All cases, whether based on re-
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† HR 4310 EAS1S 
ferral or internally developed, shall be documented 
prior to closure by the suspension and debarment offi-
cial. 
(7) Each suspension and debarment official 
under paragraph (1) shall, in consultation with the 
General Counsel of the covered agency concerned, es-
tablish in writing policies for the consideration of the 
following: 
(A) Referrals of suspension and debarment 
matters. 
(B) Suspension and debarment matters that 
are not referred. 
(b) COVERED AGENCY DEFINED.—In subsection (a), 
the term ‘‘covered agency’’ means the following: 
(1) The Department of Defense. 
(2) The Department of State. 
(3) The United States Agency for International 
Development. 
(c) DUTIES OF INTERAGENCY COMMITTEE ON DEBAR-
MENT AND SUSPENSION.—Section 873 of the Duncan Hun-
ter National Defense Authorization Act for Fiscal Year 2009 
(31 U.S.C. 6101 note) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by inserting ‘‘, in-
cluding with respect to contracts in connection
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† HR 4310 EAS1S 
with contingency operations’’ before the semi-
colon; and 
(B) in paragraph (7)— 
(i) in subparagraph (B), by striking 
‘‘and’’ at the end; 
(ii) in subparagraph (C), by striking 
the period at the end and inserting a semi-
colon; and 
(iii) by adding at the end the following 
new subparagraphs 
‘‘(D) 
a 
summary 
of 
suspensions, 
debarments, and administrative agreements dur-
ing the previous year; and 
‘‘(E) a summary of referrals of suspension 
and debarment matters received during the pre-
vious year, including an identification of the 
agencies making such referrals and an assess-
ment of the timeliness of such referrals.’’; and 
(2) by striking subsection (b) and inserting the 
following new subsections: 
‘‘(b) DATE OF SUBMITTAL OF ANNUAL REPORTS.—The 
annual report required by subsection (a)(7) shall be sub-
mitted not later than 120 days after the end of the first 
fiscal year ending after the date of the enactment of the
423 
† HR 4310 EAS1S 
National Defense Authorization Act for Fiscal Year 2013, 
and annually thereafter. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘contingency operation’ has the 
meaning given that term in section 101(a)(13) of title 
10, United States Code. 
‘‘(2) The term ‘Interagency Committee on Debar-
ment and Suspension’ means the committee con-
stituted under sections 4 and 5 of Executive Order 
No. 12549.’’. 
SEC. 881A. ADDITIONAL BASES FOR SUSPENSION OR DE-
BARMENT. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Federal Acquisition 
Regulation shall be revised to provide for the automatic re-
ferral of a person described in subsection (b) to the appro-
priate suspension and debarment official for a determina-
tion whether or not the person should be suspended or 
debarred. 
(b) COVERED PERSONS.—A person described in this 
subsection is any person as follows: 
(1) A person who has been charged with a Fed-
eral criminal offense relating to the award or per-
formance of a contract of an executive agency.
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† HR 4310 EAS1S 
(2) A person who has been alleged, in a civil or 
criminal proceeding brought by the United States, to 
have engaged in fraudulent actions in connection 
with the award or performance of a contract of an ex-
ecutive agency. 
(3) A person that does not maintain an office 
within the United States and has been determined by 
the head of a contracting agency of an executive agen-
cy to have failed to pay or refund amounts due or 
owed to the Federal Government in connection with 
the performance of a contract of the executive agency. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘executive agency’’ has the mean-
ing given that term in section 133 of title 41, United 
States Code. 
(2) The term ‘‘person’’ has the meaning given 
that term in section 1 of title 1, United States Code. 
SEC. 882. UNIFORM CONTRACT WRITING SYSTEM REQUIRE-
MENTS. 
(a) UNIFORM
STANDARDS
AND
CONTROLS
RE-
QUIRED.—Not later than 180 days after the date of the en-
actment of this Act, the officials specified in subsection (b) 
shall— 
(1) establish uniform data standards, internal 
control requirements, independent verification and
425 
† HR 4310 EAS1S 
validation requirements, and business process rules 
for processing procurement requests, contracts, re-
ceipts, and invoices by the Department of Defense or 
other executive agencies, as applicable; 
(2) establish and maintain one or more approved 
electronic contract writing systems that conform with 
the standards, requirements, and rules established 
pursuant to paragraph (1); and 
(3) require the use of electronic contract writing 
systems approved in accordance with paragraph (2) 
for all contracts entered into by the Department of 
Defense or other executive agencies, as applicable. 
(b) COVERED OFFICIALS.—The officials specified in 
this subsection are the following: 
(1) The Secretary of Defense, with respect to the 
Department of Defense and the military departments. 
(2) The Administrator of the Office of Federal 
Procurement Policy, with respect to the executive 
agencies other than the Department of Defense and 
the military departments. 
(c) ELECTRONIC WRITING SYSTEMS FOR DEPARTMENT 
OF
STATE
AND
USAID.—Notwithstanding subsection 
(b)(2), the Secretary of State and the Administrator of the 
United States Agency for International Development may 
meet the requirements of subsection (a)(2) with respect to
426 
† HR 4310 EAS1S 
approved electronic contract writing systems for the De-
partment of State and the United States Agency for Inter-
national Development, respectively, if the Secretary and the 
Administrator, as the case may be, demonstrate to the Ad-
ministrator of the Office of Federal Procurement Policy that 
prior investment of resources in existing contract writing 
systems will result in the most cost effective and efficient 
means to satisfy such requirements. 
(d) PHASE-IN OF IMPLEMENTATION OF REQUIREMENT 
FOR APPROVED SYSTEMS.—The officials specified in sub-
section (b) may phase in the implementation of the require-
ment to use approved electronic contract writing systems 
in accordance with subsection (a)(3) over a period of up 
to five years beginning with the date of the enactment of 
this Act. 
(e) REPORTS.—Not later than 180 days after the date 
of the enactment of this Act, the officials specified in sub-
section (b) shall each submit to the appropriate committees 
of Congress a report on the implementation of the require-
ments of this section. Each report shall, at a minimum— 
(1) describe the standards, requirements, and 
rules established pursuant to subsection (a)(1); 
(2) identify the electronic contract writing sys-
tems approved pursuant to subsection (a)(2) and, if 
multiple systems are approved, explain why the use
427 
† HR 4310 EAS1S 
of such multiple systems is the most efficient and ef-
fective approach to meet the contract writing needs of 
the Federal Government; and 
(3) provide the schedule for phasing in the use 
of approved electronic contract writing systems in ac-
cordance with subsections (a)(3) and (d). 
(f) DEFINITIONS.—In this section: 
(1) The term ‘‘appropriate committees of Con-
gress’’ means— 
(A) the Committee on Armed Services, the 
Committee on Foreign Relations, the Committee 
on Homeland Security and Governmental Af-
fairs, and the Committee on Appropriations of 
the Senate; and 
(B) the Committee on Armed Services, the 
Committee on Foreign Affairs, the Committee on 
Oversight and Government Reform, and the 
Committee on Appropriations of the House of 
Representatives. 
(2) The term ‘‘executive agency’’ has the mean-
ing given that term in section 133 of title 41, United 
States Code.
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† HR 4310 EAS1S 
SEC. 883. COMPTROLLER GENERAL OF THE UNITED STATES 
REVIEW OF USE BY THE DEPARTMENT OF DE-
FENSE, THE DEPARTMENT OF STATE, AND 
THE UNITED STATES AGENCY FOR INTER-
NATIONAL DEVELOPMENT OF URGENT AND 
COMPELLING EXCEPTION TO COMPETITION. 
(a) REVIEW REQUIRED.—The Comptroller General of 
the United States shall review each of the following: 
(1) The use by the Department of Defense of the 
unusual and compelling urgency exception to full and 
open competition provided in section 2304(c)(2) of 
title 10, United States Code. 
(2) The use by each of the Department of State 
and the United States Agency for International De-
velopment of the unusual and compelling urgency ex-
ception to full and open competition provided in sec-
tion 3304(a)(2) of title 41, United States Code. 
(b) MATTERS TO BE REVIEWED.—The review of the 
use of an unusual and compelling urgency exception re-
quired by subsection (a) shall include a review of the fol-
lowing: 
(1) The pattern of use of the exception by acqui-
sition organizations within the Department of De-
fense, the Department of State, and the United States 
Agency for International Development in order to de-
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† HR 4310 EAS1S 
termine which organizations are commonly using the 
exception and the frequency of such use. 
(2) The range of items or services being acquired 
through the use of the exception. 
(3) The process for reviewing and approving jus-
tifications involving the exception. 
(4) Whether the justifications for use of the ex-
ception typically meet the relevant requirements of the 
Federal Acquisition Regulation applicable to the use 
of the exception. 
(5) The extent to which the exception is used to 
solicit bids or proposals from only one source and the 
extent to which such sole-source procurements are ap-
propriately documented and justified. 
(6) The compliance of the Department of De-
fense, the Department of State, and the United States 
Agency for International Development with the re-
quirements of section 2304(d)(3) of title 10, United 
States Code, or section 3304(c)(1)(B) of title 41, 
United States Code, as applicable, that limit the du-
ration of contracts awarded pursuant to the exception 
and require approval for any such contract in excess 
of one year. 
(c) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Comptroller General shall
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submit to the appropriate committees of Congress a report 
on the review required by subsection (a), including a discus-
sion of each of the matters specified in subsection (b). The 
report shall include any recommendations relating to the 
matters reviewed that the Comptroller General considers ap-
propriate. 
(d) APPROPRIATE COMMITTEES OF CONGRESS DE-
FINED.—In this section, the term ‘‘appropriate committees 
of Congress’’ means— 
(1) the Committee on Armed Services, the Com-
mittee on Foreign Relations, the Committee on Home-
land Security and Governmental Affairs, and the 
Committee on Appropriations of the Senate; and 
(2) the Committee on Armed Services, the Com-
mittee on Foreign Affairs, the Committee on Over-
sight and Government Reform, and the Committee on 
Appropriations of the House of Representatives. 
SEC. 884. AUTHORITY TO PROVIDE FEE-FOR-SERVICE IN-
SPECTION AND TESTING BY DEFENSE CON-
TRACT MANAGEMENT AGENCY FOR CERTAIN 
CRITICAL EQUIPMENT IN THE ABSENCE OF A 
PROCUREMENT CONTRACT. 
(a) AUTHORITY.—Section 2539b of title 10, United 
States Code, is amended— 
(1) in subsection (a)—
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† HR 4310 EAS1S 
(A) in paragraph (3), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (4), by striking the period 
at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(5) make available to any person or entity, in 
advance of the award of a procurement contract, 
through contracts or other appropriate arrangements 
and subject to subsection (c), the services of the De-
fense Contract Management Agency for testing and 
inspection of items when such testing and inspection 
is determined by such Secretary to be critical to a 
specific program of the Department of Defense.’’; 
(2) by redesignating subsections (c) and (d) as 
subsections (d) and (e), respectively; and 
(3) by inserting after subsection (b) the following 
new subsection (c): 
‘‘(c) DCMA SERVICES.—Services of the Defense Con-
tract Management Agency may be made available under 
subsection (a)(5) only if the contract or other arrangement 
for those services— 
‘‘(1) holds the United States harmless if the 
items covered by the contract or other arrangement 
(whether or not tested and inspected under the con-
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† HR 4310 EAS1S 
tract or other arrangement) are not subsequently or-
dered by or delivered to the United States under a 
procurement contract entered into after the contract 
or other arrangement is entered into; and 
‘‘(2) holds the United States harmless against 
any claim arising out of the inspection and testing, 
or the use in any commercial application, of the 
equipment tested and inspected by the Defense Con-
tract Management Agency under the contract or other 
arrangement.’’. 
(b) FEES.—Subsection (d) of such section, as redesig-
nated by subsection (a)(2) of this section, is amended— 
(1) in the first sentence, by striking ‘‘and (a)(4)’’ 
and inserting ‘‘, (a)(4), and (a)(5)’’; and 
(2) in the second sentence— 
(A) by inserting ‘‘, travel, and other inci-
dental overhead expenses’’ after ‘‘salaries’’; and 
(B) by inserting ‘‘or inspection’’ before the 
period at the end. 
(c) USE OF FEES.—Subsection (e) of such section, as 
so redesignated, is amended by striking ‘‘and (a)(4)’’ and 
inserting ‘‘, (a)(4), and (a)(5)’’.
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SEC. 885. DISESTABLISHMENT OF DEFENSE MATERIEL 
READINESS BOARD. 
(a) DISESTABLISHMENT OF BOARD.—The Defense Ma-
teriel Readiness Board established pursuant to section 871 
of the National Defense Authorization Act for Fiscal Year 
2008 (Public Law 110–181; 10 U.S.C. 117 note) is hereby 
disestablished. 
(b) TERMINATION OF STRATEGIC READINESS FUND.— 
The Department of Defense Strategic Readiness Fund estab-
lished by section 872(d) of the National Defense Authoriza-
tion Act for Fiscal Year 2008 (10 U.S.C. 117 note) is hereby 
closed. 
(c) REPEAL.—Subtitle G of title VIII of the National 
Defense Authorization Act for Fiscal Year 2008 (10 U.S.C. 
117 note) is repealed. 
SEC. 886. MODIFICATION OF PERIOD OF WAIT FOLLOWING 
NOTICE TO CONGRESS OF INTENT TO CON-
TRACT FOR LEASES OF CERTAIN VESSELS 
AND VEHICLES. 
Section 2401(h)(2) of title 10, United States Code, is 
amended by striking ‘‘of continuous session of Congress’’. 
SEC. 887. EXTENSION OF OTHER TRANSACTION AUTHOR-
ITY. 
Section 845(i) of the National Defense Authorization 
Act for Fiscal Year 1994 (10 U.S.C. 2371 note) is amended
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† HR 4310 EAS1S 
by striking ‘‘September 30, 2013’’ and inserting ‘‘September 
30, 2018’’. 
SEC. 888. SUBCONTRACTOR NOTIFICATIONS. 
Section 8(d) of the Small Business Act (15 U.S.C. 
637(d)) is amended by adding at the end the following: 
‘‘(13) NOTIFICATION REQUIREMENT.—An offeror with 
respect to a contract let by a Federal agency that is to be 
awarded pursuant to the negotiated method of procurement 
that intends to identify a small business concern as a poten-
tial subcontractor in the offer relating to the contract shall 
notify the small business concern that the offeror intends 
to identify the small business concern as a potential subcon-
tractor in the offer. 
‘‘(14) REPORTING
BY SUBCONTRACTORS.—The Ad-
ministrator shall establish a reporting mechanism that al-
lows a subcontractor to report fraudulent activity by a con-
tractor with respect to a subcontracting plan submitted to 
a procurement authority under paragraph (4)(B).’’. 
SEC. 889. REPORT BY THE SUSPENSION AND DEBARMENT 
OFFICIALS OF THE MILITARY DEPARTMENTS 
AND THE DEFENSE LOGISTICS AGENCY. 
(a) REPORT REQUIRED.—Not later than 60 days after 
the date of the enactment of this Act, the suspension and 
debarment official of each agency specified in subsection (b) 
shall submit to the congressional defense committees a re-
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† HR 4310 EAS1S 
port on the suspension and debarment activities of such offi-
cial containing the information specified in subsection (c). 
(b) COVERED AGENCIES.—The agencies specified in 
this subsection are the following: 
(1) The Department of the Army. 
(2) The Department of the Navy. 
(3) The Department of the Air Force. 
(4) The Defense Logistics Agency. 
(c) COVERED INFORMATION.—The information speci-
fied in this subsection to be included in the report of a sus-
pension and debarment official under subsection (a) is the 
following: 
(1) The number of open suspension and debar-
ment cases of such official as of the date of such re-
port. 
(2) The current average processing time for sus-
pension and debarment cases. 
(3) The target goal of such official for average 
processing time for suspension and debarment pro-
posals. 
(4) If the average time required for such official 
to process suspension and debarment proposals is 
more than twice the target goal specified under para-
graph (3)—
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† HR 4310 EAS1S 
(A) an explanation why the average time 
exceeds the target goal by more than twice the 
target goal; and 
(B) a description of the actions to be taken 
by such official to ensure that the average proc-
essing time for suspension and debarment pro-
posals meets the target goal. 
SEC. 889A. STUDY ON ARMY SMALL ARMS AND AMMUNITION 
ACQUISITION. 
(a) STUDY.— 
(1) IN GENERAL.—Not later than 30 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall enter into a contract with a Federally 
Funded Research and Development Center to conduct 
a study on the Army’s acquisition of small arms and 
ammunition to determine each of the following: 
(A) A comparative evaluation of the current 
military small arms in use by United States 
general purpose and special operations forces, al-
lied foreign militaries, and those potential can-
didate small arms not necessarily in use mili-
tarily but available commercially. 
(B) An assessment of the Department of De-
fense’s current plans to modernize its small arms 
capabilities.
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† HR 4310 EAS1S 
(C) A comparative evaluation of the Army’s 
standard small arms ammunition with other 
small arms ammunition alternatives. 
(2) FACTORS TO CONSIDER.—The study required 
under subsection (a) shall take into consideration the 
following factors: 
(A) Current and future operating environ-
ments as specified or referred to in Department 
of Defense strategic guidance and planning docu-
ments. 
(B) Modifications and improvements re-
cently applied to United States general purpose 
and special operations forces small arms as well 
as their potential for continued modification and 
improvement. 
(C) Industrial base impacts. 
(3) ACCESS TO INFORMATION.—The Secretary of 
Defense and the Secretary of the Army shall ensure 
that the Federally Funded Research and Development 
Center conducting the study required under subsection 
(a) has access to all necessary data, records, analysis, 
personnel, and other resources necessary to complete 
the study. 
(b) REPORT.—
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† HR 4310 EAS1S 
(1) IN GENERAL.—Not later than September 30, 
2013, the Secretary of Defense shall submit to the con-
gressional defense committees a report containing the 
results of the study conducted under subsection (a), 
together with the comments of the Secretary of Defense 
on the findings contained in the study. 
(2) CLASSIFIED ANNEX.—The report shall be in 
unclassified form, but may contain a classified annex. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘small arms’’ means— 
(A) firearms up to but not including .50 
caliber; and 
(B) shotguns. 
(2) The term ‘‘small arms ammunition’’ means 
ammunition or ordnance for— 
(A) firearms up to but not including .50 
caliber; and 
(B) shotguns. 
SEC. 889B. ANNUAL REPORT ON DEFENSE CONTRACTING 
FRAUD. 
(a) ANNUAL STUDY AND REPORT.—The Secretary of 
Defense shall conduct an annual study on defense con-
tracting fraud and submit a report containing the findings 
of such study to the congressional defense committees.
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† HR 4310 EAS1S 
(b) REPORT CONTENTS.—The report required under 
subsection (a) shall include with respect to the most recent 
reporting period the following elements: 
(1) An assessment of the total value of Depart-
ment of Defense contracts entered into to with con-
tractors that have been indicted for, settled charges of, 
been fined by any Federal department or agency for, 
or been convicted of fraud in connection with any 
contract or other transaction entered into with the 
Federal Government. 
(2) Recommendations by the Inspector General 
of the Department of Defense or other appropriate De-
partment of Defense official regarding how to penalize 
contractors repeatedly involved in fraud in connection 
with contracts or other transactions entered into with 
the Federal Government, including an update on im-
plementation by the Department of any previous such 
recommendations. 
SEC. 889C. PLAN TO INCREASE NUMBER OF CONTRACTORS 
ELIGIBLE 
FOR 
CONTRACTS 
UNDER 
AIR 
FORCE NETCENTS-2 CONTRACT. 
(a) PLAN REQUIRED.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of De-
fense shall submit to the congressional defense committees 
a plan to increase the number of contractors eligible to be
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† HR 4310 EAS1S 
awarded contracts under the Air Force’s Network-Centric 
Solutions-2 (NETCENTS-2) indefinite-delivery, indefinite- 
quantity (IDIQ) contract. 
(b) CONTENT.—The plan required under subsection (a) 
shall include the following elements: 
(1) A recommendation and rationale for a max-
imum number of contractors to be eligible for contract 
awards under NETCENTS-2 to foster competition 
and reduce overall costs associated with hardware and 
operation and maintenance of Air Networks. 
(2) The methodology used to periodically review 
existing eligible NETCENTS-2 contractors and con-
tracts. 
(3) A timeline to increase the current number of 
eligible contractors under NETCENTS-2 and dates of 
future ‘‘on-ramps’’ under NETCENTS-2 to assess 
current eligible contractors and add additional eligi-
ble contractors. 
SEC. 889D. INCLUSION OF INFORMATION ON COMMON 
GROUNDS FOR SUSTAINING BID PROTESTS IN 
ANNUAL GOVERNMENT ACCOUNTABILITY OF-
FICE REPORTS TO CONGRESS. 
The Comptroller General of the United States shall in-
clude in the annual report to Congress on the Government 
Accountability Office each year a list of the most common
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† HR 4310 EAS1S 
grounds for sustaining protests relating to bids for contracts 
during such year. 
SEC. 889E. SMALL BUSINESS HUBZONES. 
(a) DEFINITION.—In this section, the term ‘‘covered 
base closure area’’ means a base closure area that, on or 
before the date of enactment of this Act, was treated as a 
HUBZone for purposes of the Small Business Act (15 
U.S.C. 631 et seq.) pursuant to section 152(a)(2) of the 
Small Business Reauthorization and Manufacturing Assist-
ance Act of 2004 (15 U.S.C. 632 note). 
(b) TREATMENT AS HUBZONE.— 
(1) IN GENERAL.—Subject to paragraph (2), a 
covered base closure area shall be treated as a 
HUBZone for purposes of the Small Business Act (15 
U.S.C. 631 et seq.) during the 5-year period begin-
ning on the date of enactment of this Act. 
(2) LIMITATION.—The total period of time that 
a covered base closure area is treated as a HUBZone 
for purposes of the Small Business Act (15 U.S.C. 631 
et seq.) pursuant to this section and section 152(a)(2) 
of the Small Business Reauthorization and Manufac-
turing Assistance Act of 2004 (15 U.S.C. 632 note) 
may not exceed 5 years.
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† HR 4310 EAS1S 
Subtitle F—Ending Trafficking in 
Government Contracting 
SEC. 891. SHORT TITLE. 
This subtitle may be cited as the ‘‘End Trafficking in 
Government Contracting Act of 2012’’. 
SEC. 892. DEFINITIONS. 
In this subtitle: 
(1) COMMERCIAL SEX ACT.—The term ‘‘commer-
cial sex act’’ has the meaning given the term in sec-
tion 22.1702 of the Federal Acquisition Regulation 
(or any similar successor regulation). 
(2) EXECUTIVE
AGENCY.—The term ‘‘executive 
agency’’ has the meaning given the term in section 
133 of title 41, United States Code. 
(3) SUBCONTRACTOR.—The term ‘‘subcontractor’’ 
means a recipient of a contract at any tier under a 
grant, contract, or cooperative agreement. 
(4) 
SUBGRANTEE.—The 
term 
‘‘subgrantee’’ 
means a recipient of a grant at any tier under a 
grant or cooperative agreement. 
(5) UNITED STATES.—The term ‘‘United States’’ 
has the meaning provided in section 103(12) of the 
Trafficking Victims Protection Act of 2000 (22 U.S.C. 
7102(12)).
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† HR 4310 EAS1S 
SEC. 893. CONTRACTING REQUIREMENTS. 
(a) IN GENERAL.—Section 106(g) of the Trafficking 
Victims Protection Act of 2000 (22 U.S.C. 7104(g)) is 
amended by striking ‘‘if the grantee or any subgrantee,’’ 
and all that follows through the period at the end and in-
serting the following: ‘‘or take any of the other remedial 
actions authorized under section 895(c) of the End Traf-
ficking in Government Contracting Act of 2012, if the 
grantee or any subgrantee, or the contractor or any subcon-
tractor, engages in, or uses labor recruiters, brokers, or other 
agents who engage in— 
‘‘(i) severe forms of trafficking in per-
sons; 
‘‘(ii) the procurement of a commercial 
sex act during the period of time that the 
grant, contract, or cooperative agreement is 
in effect; 
‘‘(iii) the use of forced labor in the per-
formance of the grant, contract, or coopera-
tive agreement, or 
‘‘(iv) acts that directly support or ad-
vance trafficking in persons, including the 
following acts: 
‘‘(I) Destroying, concealing, re-
moving, confiscating, or otherwise de-
nying an employee access to that em-
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† HR 4310 EAS1S 
ployee’s identity or immigration docu-
ments. 
‘‘(II) Failing to pay return trans-
portation costs to an employee upon 
the end of employment, unless— 
‘‘(aa) 
exempted 
from 
the 
duty to repatriate by the Federal 
department or agency providing 
or entering into the grant, con-
tract, or cooperative agreement; or 
‘‘(bb) the employee is a vic-
tim of human trafficking seeking 
victim services or legal redress in 
the country of employment or a 
witness in a human trafficking 
enforcement action. 
‘‘(III) Soliciting a person for the 
purpose of employment, or offering em-
ployment, by means of materially false 
or fraudulent pretenses, representa-
tions, or promises regarding that em-
ployment. 
‘‘(IV) Charging recruited employ-
ees unreasonable placement or recruit-
ment fees, such as fees equal to or
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† HR 4310 EAS1S 
greater than the employee’s monthly 
salary, or recruitment fees that violate 
the laws of the country from which an 
employee is recruited. 
‘‘(V) 
Providing 
or 
arranging 
housing that fails to meet the host 
country housing and safety stand-
ards.’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect 90 days after the date of the 
enactment of this Act. 
SEC. 894. COMPLIANCE PLAN AND CERTIFICATION RE-
QUIREMENT. 
(a) REQUIREMENT.—The head of an executive agency 
may not provide or enter into a grant, contract, or coopera-
tive agreement if the estimated value of the services required 
to be performed under the grant, contract, or cooperative 
agreement outside the United States exceeds $500,000, un-
less a duly designated representative of the recipient of such 
grant, contract, or cooperative agreement certifies to the 
contracting or grant officer prior to receiving an award and 
on an annual basis thereafter, after having conducted due 
diligence, that— 
(1) the recipient has implemented a plan to pre-
vent the activities described in section 106(g) of the
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† HR 4310 EAS1S 
Trafficking Victims Protection Act of 2000 (22 U.S.C. 
7104(g)), as amended by section 3, and is in compli-
ance with that plan; 
(2) the recipient has implemented procedures to 
prevent any activities described in such section 106(g) 
and to monitor, detect, and terminate any subcon-
tractor, subgrantee, or employee of the recipient en-
gaging in any activities described in such section; 
and 
(3) to the best of the representative’s knowledge, 
neither the recipient, nor any subcontractor or sub-
grantee of the recipient or any agent of the recipient 
or of such a subcontractor or subgrantee, is engaged 
in any of the activities described in such section. 
(b) LIMITATION.—Any plan or procedures imple-
mented pursuant to subsection (a) shall be appropriate to 
the size and complexity of the grant, contract, or cooperative 
agreement and to the nature and scope of its activities, in-
cluding the number of non-United States citizens expected 
to be employed. 
(c) DISCLOSURE.—The recipient shall provide a copy 
of the plan to the contracting or grant officer upon request, 
and as appropriate, shall post the useful and relevant con-
tents of the plan or related materials on its website and 
at the workplace.
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† HR 4310 EAS1S 
(d) GUIDANCE.—The President, in consultation with 
the Secretary of State, the Attorney General, the Secretary 
of Defense, the Secretary of Labor, the Secretary of Home-
land Security, the Administrator for the United States 
Agency for International Development, and the heads of 
such other executive agencies as the President deems appro-
priate, shall establish minimum requirements for contractor 
plans and procedures to be implemented pursuant to this 
section. 
(e) REGULATIONS.—Not later than 270 days after the 
date of the enactment of this Act, the Federal Acquisition 
Regulation shall be amended to carry out the purposes of 
this section. 
(f) EFFECTIVE DATE.—The requirements under sub-
section (a) and (c) shall apply to grants, contracts, and 
cooperative agreements entered into on or after the date that 
is 90 days after the Federal Acquisition Regulation is 
amended pursuant to subsection (e). 
SEC. 895. MONITORING AND INVESTIGATION OF TRAF-
FICKING IN PERSONS. 
(a) REFERRAL AND INVESTIGATION.— 
(1) REFERRAL.—If the contracting or grant offi-
cer of an executive agency for a grant, contract, or co-
operative agreement receives credible information that 
a recipient of the grant, contract, or cooperative
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† HR 4310 EAS1S 
agreement; any subgrantee or subcontractor of the re-
cipient; or any agent of the recipient or of such a sub-
grantee or subcontractor, has engaged in an activity 
described in section 106(g) of the Trafficking Victims 
Protection Act of 2000 (22 U.S.C. 7104(g)), as 
amended by section 893, including a report from a 
contracting officer representative, an auditor, an al-
leged victim or victim’s representative, or any other 
credible source, the contracting or grant officer shall 
promptly refer the matter to the agency’s Office of In-
spector General for investigation. The contracting of-
ficer may also direct the contractor to take specific 
steps to abate an alleged violation or enforce the re-
quirements of a compliance plan implemented pursu-
ant to section 894. 
(2) INVESTIGATION.—Where appropriate, an In-
spector General who receives credible information that 
a recipient of the grant, contract, or cooperative 
agreement; any subgrantee or subcontractor of the re-
cipient; or any agent of the recipient or of such a sub-
grantee or subcontractor, has engaged in an activity 
described in section 106(g) of the Trafficking Victims 
Protection Act of 2000 (22 U.S.C. 7104(g)), as 
amended by section 893, pursuant to a referral under 
paragraph (1) or otherwise, shall promptly initiate
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† HR 4310 EAS1S 
an investigation of the matter. In the event that an 
Inspector General does not initiate an investigation, 
the Inspector General shall provide an explanation 
for the decision not to investigate. 
(3) CRIMINAL INVESTIGATION.—If the matter is 
referred to the Department of Justice for criminal 
prosecution, the Inspector General may suspend any 
investigation under this subsection pending the out-
come of the criminal prosecution. If the criminal in-
vestigation results in an indictment of the recipient 
of a contract, grant, or cooperative agreement; any 
subgrantee or subcontractor of the recipient; or any 
agent of the recipient or of a subgrantee or subcon-
tractor, the Inspector General shall notify the head of 
the executive agency that awarded the contract, grant, 
or cooperative agreement of the indictment. If the 
criminal investigation results in a decision not to 
prosecute, the Inspector General shall resume any in-
vestigation that was suspended pursuant to this para-
graph. 
(b) REPORT AND DETERMINATION.— 
(1) REPORT.—Upon completion of an investiga-
tion under subsection (a), the Inspector General shall 
submit a report on the investigation, including con-
clusions about whether the recipient of a grant, con-
450 
† HR 4310 EAS1S 
tract, or cooperative agreement; any subcontractor or 
subgrantee of the recipient; or any agent of the recipi-
ent or of such a subcontractor or subgrantee, engaged 
in any of the activities described in section 106(g) of 
the Trafficking Victims Protection Act of 2000 (22 
U.S.C. 7104(g)), as amended by section 893, to the 
head of the executive agency that awarded the con-
tract, grant, or cooperative agreement. 
(2) DETERMINATION.—Upon receipt of an In-
spector General’s report pursuant to paragraph (1), 
the head of the executive agency shall make a written 
determination whether the recipient of a contract, 
grant, or cooperative agreement; any subgrantee or 
subcontractor of the recipient; or any agent of the re-
cipient or of a subgrantee or subcontractor, engaged 
in any of the activities described in section 106(g) of 
the Trafficking Victims Protection Act of 2000 (22 
U.S.C. 7104(g)), as amended by section 893. 
(c) REMEDIAL ACTIONS.— 
(1) IN GENERAL.—If the head of an executive 
agency determines pursuant to subsection (b)(2) that 
the recipient of a contract, grant, or cooperative 
agreement; any subgrantee or subcontractor of the re-
cipient; or any agent of the recipient or of a sub-
grantee or subcontractor, engaged in any of the ac-
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† HR 4310 EAS1S 
tivities described in section 106(g) of the Trafficking 
Victims Protection Act of 2000 (22 U.S.C. 7104(g)), 
as amended by section 893, or is notified of an indict-
ment for an offense under subsection (a)(3), the head 
of agency shall consider taking one or more of the fol-
lowing remedial actions: 
(A) Requiring the recipient to remove an 
employee from the performance of work under the 
grant, contract, or cooperative agreement. 
(B) Requiring the recipient to terminate a 
subcontract or subgrant. 
(C) Suspending payments under the grant, 
contract, or cooperative agreement until such 
time as the recipient of the grant, contract, or 
cooperative agreement has taken appropriate re-
medial action. 
(D) Withholding award fees, consistent with 
the award fee plan, for the performance period 
in which the agency determined the contractor or 
subcontractor engaged in any of the activities de-
scribed in such section 106(g). 
(E) Declining to exercise available options 
under the contract.
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† HR 4310 EAS1S 
(F) Terminating the contract for default or 
cause, in accordance with the termination clause 
for the contract. 
(G) Referring the matter to the agency sus-
pension and debarment official. 
(2) SAVINGS
CLAUSE.—Nothing in this sub-
section shall be construed as limiting the scope of ap-
plicable remedies available to the Federal Govern-
ment. 
(3) MITIGATING FACTOR.—Where applicable, the 
head of an executive agency may consider whether the 
contractor or grantee had a plan in place under sec-
tion 894, and was in compliance with that plan at 
the time of the violation, as a mitigating factor in de-
termining which remedies, if any, should apply. 
(4) AGGRAVATING
FACTOR.—Where applicable, 
the head of an executive agency may consider the fail-
ure of a contractor or grantee to abate an alleged vio-
lation or enforce the requirements of a compliance 
plan when directed by a contracting officer pursuant 
to subsection (a)(1) as an aggravating factor in deter-
mining which remedies, if any, should apply. 
(d) 
INCLUSION
OF
REPORT
CONCLUSIONS
IN 
FAPIIS.—
453 
† HR 4310 EAS1S 
(1) IN
GENERAL.—The head of an executive 
agency shall ensure that any written determination 
under subsection (b) is included in the Federal 
Awardee Performance and Integrity Information Sys-
tem (FAPIIS). 
(2) AMENDMENT TO TITLE 41, UNITED STATES 
CODE.—Section 2313(c)(1)(E) of title 41, United 
States Code, is amended to read as follows: 
‘‘(E) In an administrative proceeding— 
‘‘(i) a final determination of contractor 
fault by the Secretary of Defense pursuant 
to section 823(d) of the National Defense 
Authorization Act for Fiscal Year 2010 (10 
U.S.C. 2302 note; Public Law 111–84); or 
‘‘(ii) a final determination, pursuant 
to section 895(b)(2) of the End Trafficking 
in Government Contracting Act of 2012, 
that the contractor, a subcontractor, or an 
agent of the contractor or subcontractor en-
gaged in any of the activities described in 
section 106(g) of the Trafficking Victims 
Protection 
Act 
of 
2000 
(22 
U.S.C. 
7104(g)).’’.
454 
† HR 4310 EAS1S 
SEC. 896. NOTIFICATION TO INSPECTORS GENERAL AND 
COOPERATION WITH GOVERNMENT. 
(a) IN GENERAL.—The head of an executive agency 
making or awarding a grant, contract, or cooperative agree-
ment shall require that the recipient of the grant, contract, 
or cooperative agreement— 
(1) immediately inform the Inspector General of 
the executive agency of any information it receives 
from any source that alleges credible information that 
the recipient; any subcontractor or subgrantee of the 
recipient; or any agent of the recipient or of such a 
subcontractor or subgrantee, has engaged in conduct 
described in section 106(g) of the Trafficking in Vic-
tims Protection Act of 2000 (22 U.S.C. 7104(g)), as 
amended by section 3 of this Act; and 
(2) fully cooperate with any Federal agencies re-
sponsible for audits, investigations, or corrective ac-
tions relating to trafficking in persons. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect 90 days after the date of the 
enactment of this Act. 
SEC. 897. EXPANSION OF FRAUD IN FOREIGN LABOR CON-
TRACTING TO INCLUDE ATTEMPTED FRAUD 
AND WORK OUTSIDE THE UNITED STATES. 
(a) IN GENERAL.—Section 1351 of title 18, United 
States Code, is amended—
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(1) by striking ‘‘Whoever knowingly and with the 
intent to defraud recruits, solicits or hires a person 
outside the United States’’ and inserting ‘‘(a) WORK 
INSIDE
THE UNITED STATES.—Whoever knowingly 
and with the intent to defraud recruits, solicits, or 
hires a person outside the United States, or attempts 
to do so,’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) WORK OUTSIDE THE UNITED STATES.—Whoever 
knowingly and with intent to defraud recruits, solicits, or 
hires a person outside the United States, or attempts to do 
so, for purposes of employment performed on a United 
States Government contract performed outside the United 
States, or on a United States military installation or mis-
sion outside the United States or other property or premises 
outside the United States owned or controlled by the United 
States Government, by means of materially false or fraudu-
lent pretenses, representations, or promises regarding that 
employment, shall be fined under this title or imprisoned 
for not more than 5 years, or both.’’. 
(b) SPECIAL RULE FOR ALIEN VICTIMS.—No alien 
may be admitted to the United States pursuant to subpara-
graph (U) of section 101(a)(15) of the Immigration and Na-
tionality Act (8 U.S.C. 1101(a)(15)) as a result of the alien
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being a victim of a crime described in subsection (b) of sec-
tion 1351 of title 18, United States Code, as added by sub-
section (a). 
SEC. 898. IMPROVING DEPARTMENT OF DEFENSE ACCOUNT-
ABILITY FOR REPORTING TRAFFICKING IN 
PERSONS CLAIMS AND VIOLATIONS. 
Section 105(d)(7)(H) of the Trafficking Victims Pro-
tection Act of 2000 (22 U.S.C. 7103(d)(7)(H)) is amend-
ed— 
(1) in clause (ii), by striking ‘‘and’’ at the end; 
(2) by redesignating clause (iii) as clause (iv); 
(3) by inserting after clause (ii) the following 
new clause: 
‘‘(iii) all known trafficking in persons 
cases reported to the Under Secretary of De-
fense for Personnel and Readiness;’’; 
(4) in clause (iv), as redesignated by paragraph 
(2), by inserting ‘‘and’’ at the end after the semicolon; 
and 
(5) by adding at the end the following new 
clause: 
‘‘(v) all trafficking in persons activities 
of contractors reported to the Under Sec-
retary of Defense for Acquisition, Tech-
nology, and Logistics;’’.
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SEC. 899. RULES OF CONSTRUCTION. 
(a) LIABILITY.—Excluding section 897, nothing in 
this subtitle shall be construed to supersede, enlarge, or di-
minish the common law or statutory liabilities of any 
grantee, subgrantee, contractor, subcontractor, or other 
party covered by section 106(g) of the Trafficking Victims 
Protection Act of 2000 (22 U.S.C. 7104(g)), as amended by 
section 893. 
(b) AUTHORITY OF DEPARTMENT OF JUSTICE.—Noth-
ing in this subtitle shall be construed as diminishing or 
otherwise modifying the authority of the Attorney General 
to investigate activities covered by this subtitle. 
(c) PROSPECTIVE EFFECT.—Nothing in this subtitle, 
or the amendments made by this subtitle, shall be construed 
to apply to a contract or grant entered into or renewed be-
fore the date of the enactment of this subtitle.
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TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND 
MANAGEMENT 
Subtitle A—Department of Defense 
Management 
SEC. 901. DEFINITION AND REPORT ON TERMS ‘‘PREPARA-
TION OF THE ENVIRONMENT’’ AND ‘‘OPER-
ATIONAL PREPARATION OF THE ENVIRON-
MENT’’ FOR JOINT DOCTRINE PURPOSES. 
(a) DEFINITIONS REQUIRED.—Not later than 90 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall define for purposes of joint doctrine the fol-
lowing terms: 
(1) The term ‘‘preparation of the environment’’. 
(2) The term ‘‘operational preparation of the en-
vironment’’. 
(b) REPORT REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report on the 
terms defined under subsection (a). The report shall include 
the following: 
(1) The definition of the term ‘‘preparation of 
the environment’’ pursuant to subsection (a).
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(2) Examples of activities meeting the definition 
of the term ‘‘preparation of the environment’’ by spe-
cial operations forces and general purpose forces. 
(3) The definition of the term ‘‘operational prep-
aration of the environment’’ pursuant to subsection 
(a). 
(4) Examples of activities meeting the definition 
of the term ‘‘operational preparation of the environ-
ment’’ by special operations forces and general pur-
pose forces. 
(5) An assessment of the appropriate roles of spe-
cial operations forces and general purpose forces in 
conducting activities meeting the definition of the 
term ‘‘preparation of the environment’’ and the defi-
nition of the term ‘‘operational preparation of the en-
vironment’’. 
SEC. 902. EXPANSION OF DUTIES AND RESPONSIBILITIES 
OF THE NUCLEAR WEAPONS COUNCIL. 
(a) GUIDANCE ON NUCLEAR COMMAND, CONTROL, AND 
COMMUNICATIONS SYSTEMS.—Subsection (d) of section 179 
of title 10, United States Code, is amended— 
(1) by redesignating paragraph (10) as para-
graph (11); and 
(2) by inserting after paragraph (9) the fol-
lowing new paragraph (10):
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‘‘(10) Providing programmatic guidance on nu-
clear command, control and communications sys-
tems.’’. 
(b) BUDGET AND FUNDING MATTERS.—Such section 
is further amended— 
(1) by redesignating subsection (f) as subsection 
(g); and 
(2) by inserting after subsection (e) the following 
new subsection (f): 
‘‘(f) BUDGET AND FUNDING MATTERS.—(1) The Coun-
cil shall submit to Congress each year, at the same time 
the budget of the President for the fiscal year beginning in 
such year is submitted to Congress pursuant to section 
1105(a) of title 31, a certification whether or not the 
amounts requested for the National Nuclear Security Ad-
ministration in such budget, and anticipated over the four 
fiscal years following such budget, meets nuclear stockpile 
and stockpile stewardship program requirements for such 
fiscal year and over such four fiscal years. If a member 
of the Council does not concur in a certification, the certifi-
cation shall include the reasons for the member’s non-con-
currence. 
‘‘(2) If a House of Congress adopts a bill authorizing 
or appropriating funds for the National Nuclear Security 
Administration for nuclear stockpile and stockpile steward-
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ship program activities or other activities that, as deter-
mined by the Council, provides insufficient funds for such 
activities for the period covered by such bill, the Council 
shall notify the congressional defense committees of the de-
termination.’’. 
SEC. 903. FAILURE OF THE DEPARTMENT OF DEFENSE TO 
OBTAIN AUDITS WITH AN UNQUALIFIED OPIN-
ION ON ITS FINANCIAL STATEMENTS BY FIS-
CAL YEAR 2017. 
If the Department of Defense fails to obtain an audit 
with an unqualified opinion on its financial statements for 
fiscal year 2017, the following shall take effect, effective as 
of the date of the issuance of the opinion on such audit: 
(1) REORGANIZATION OF RESPONSIBILITIES OF 
CHIEF MANAGEMENT OFFICER.— 
(A) POSITION OF CHIEF MANAGEMENT OFFI-
CER.—Section 132a of title 10, United States 
Code, is amended to read as follows: 
‘‘§ 132a. Chief Management Officer 
‘‘(a) IN GENERAL.—(1) There is a Chief Management 
Officer of the Department of Defense, appointed from civil-
ian life by the President, by and with the advice and con-
sent of the Senate. 
‘‘(2) Any individual nominated for appointment as 
Chief Management Officer shall be an individual who has—
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‘‘(A) extensive executive level leadership and 
management experience in the public or private sec-
tor; 
‘‘(B) strong leadership skills; 
‘‘(C) a demonstrated ability to manage large and 
complex organizations; and 
‘‘(D) a proven record in achieving positive oper-
ational results. 
‘‘(b) POWERS AND DUTIES.—The Chief Management 
Officer shall perform such duties and exercise such powers 
as the Secretary of Defense may prescribe. 
‘‘(c) SERVICE AS CHIEF MANAGEMENT OFFICER.—(1) 
The Chief Management Officer is the Chief Management Of-
ficer of the Department of Defense. 
‘‘(2) In serving as the Chief Management Officer of the 
Department of Defense, the Chief Management Officer shall 
be responsible for the management and administration of 
the Department of Defense with respect to the following: 
‘‘(A) The expenditure of funds, accounting, and 
finance. 
‘‘(B) Procurement, including procurement of any 
enterprise resource planning (ERP) system and any 
information technology (IT) system that is a finan-
cial feeder system, human resources system, or logis-
tics system.
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‘‘(C) Facilities, property, nonmilitary equip-
ment, and other resources. 
‘‘(D) Strategic planning, and annual perform-
ance planning, and identification and tracking of 
performance measures. 
‘‘(E) Internal audits and management analyses 
of the programs and activities of the Department, in-
cluding the Defense Contract Audit Agency. 
‘‘(F) Such other areas or matters as the Sec-
retary of Defense may designate. 
‘‘(3) The head of the Defense Contract Audit Agency 
shall be under the supervision of, and shall report directly 
to, the Chief Management Officer. 
‘‘(d) PRECEDENCE.—The Chief Management Officer 
takes precedence in the Department of Defense after the Sec-
retary of Defense and the Deputy Secretary of Defense.’’. 
(B) CONFORMING AMENDMENTS.— 
(i) Section 131(b) of title 10, United 
States Code, is amended— 
(I) by striking paragraph (3); 
(II) by redesignating paragraph 
(2) as paragraph (3); and 
(III) by inserting after paragraph 
(1) the following new paragraph (2):
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† HR 4310 EAS1S 
‘‘(2) The Chief Management Officer of the De-
partment of Defense.’’. 
(ii) Section 132 of such title is amend-
ed— 
(I) by striking subsection (c); and 
(II) by redesignating subsections 
(d) and (e) as subsections (c) and (d), 
respectively. 
(iii) Section 133(e)(1) of such title is 
amended by striking ‘‘and the Deputy Sec-
retary of Defense’’ and inserting ‘‘, the Dep-
uty Secretary of Defense, and the Chief 
Management Officer of the Department of 
Defense’’. 
(iv) Such title is further amended by 
inserting ‘‘the Chief Management Officer of 
the Department of Defense,’’ after ‘‘the Dep-
uty Secretary of Defense,’’ each place it ap-
pears in the provisions as follows: 
(I) Section 133(e)(2). 
(II) Section 134(c). 
(v) Section 137a(d) of such title is 
amended by striking ‘‘the Secretaries of the 
military departments,’’ and all that follows 
and inserting ‘‘the Chief Management Offi-
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† HR 4310 EAS1S 
cer of the Department of Defense, the Secre-
taries of the military departments, and the 
Under Secretaries of Defense.’’. 
(vi) Section 138(d) of such title is 
amended by striking ‘‘the Secretaries of the 
military departments,’’ and all that follows 
through the period and inserting ‘‘the Chief 
Management Officer of the Department of 
Defense, the Secretaries of the military de-
partments, the Under Secretaries of Defense, 
and the Director of Defense Research and 
Engineering.’’. 
(C) CLERICAL AMENDMENT.—The table of 
sections at the beginning of chapter 4 of such 
title is amended by striking the item relating to 
section 132a and inserting the following new 
item: 
‘‘132a. Chief Management Officer.’’. 
(D) EXECUTIVE SCHEDULE.—Section 5313 
of title 5, United States Code, is amended by 
adding at the end the following: 
‘‘Chief Management Officer of the Department of 
Defense.’’. 
(E) REFERENCE IN LAW.—Any reference in 
any provision of law to the Chief Management 
Officer of the Department of Defense shall be
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† HR 4310 EAS1S 
deemed to refer to the Chief Management Officer 
of the Department of Defense under section 132a 
of title 10, United States Code (as amended by 
this paragraph). 
(2) JURISDICTION OF DFAS.— 
(A) TRANSFER
TO
DEPARTMENT
OF
THE 
TREASURY.—Jurisdiction of the Defense Finance 
and Accounting Service (DFAS) is transferred 
from the Department of Defense to the Depart-
ment of the Treasury. 
(B) ADMINISTRATION.—The Secretary of the 
Treasury shall administer the Defense Finance 
and Accounting Service following transfer under 
this paragraph through the Financial Manage-
ment Service of the Department of the Treasury. 
(C) MEMORANDUM OF UNDERSTANDING.— 
The Secretary of Defense and the Secretary of the 
Treasury shall jointly enter into a memorandum 
of understanding regarding the transfer of juris-
diction of the Defense Finance and Accounting 
Service under this paragraph. The memorandum 
of understanding shall provide for the transfer of 
the personnel and other resources of the Service 
to the Department of the Treasury and for the 
assumption of responsibility for such personnel
467 
† HR 4310 EAS1S 
and resources by the Department of the Treas-
ury. 
(D) CONSTRUCTION.—Nothing in this para-
graph shall be construed as terminating, alter-
ing, or revising any responsibilities or authori-
ties of the Defense Finance and Accounting Serv-
ice (other than responsibilities and authorities in 
connection with the exercise of jurisdiction of the 
Service following transfer under this paragraph). 
SEC. 904. INFORMATION FOR DEPUTY CHIEF MANAGEMENT 
OFFICER OF THE DEPARTMENT OF DEFENSE 
FROM THE MILITARY DEPARTMENTS AND DE-
FENSE AGENCIES FOR DEFENSE BUSINESS 
SYSTEM INVESTMENT REVIEWS. 
Section 2222(g) of title 10, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(3)(A) The investment management process required 
by paragraph (1) shall include requirements for the mili-
tary departments and the Defense Agencies to submit to the 
Deputy Chief Management Officer such information on cov-
ered defense business system programs as the Deputy Chief 
Management Officer shall require for the review of defense 
business system programs under the process. Such informa-
tion shall be submitted to the Deputy Chief Management
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† HR 4310 EAS1S 
Officer in a standardized format established by the Deputy 
Chief Management Officer for purposes of this paragraph.’’ 
Subtitle B—Space Activities 
SEC. 911. OPERATIONALLY RESPONSIVE SPACE PROGRAM 
OFFICE. 
(a) IN GENERAL.—Subsection (a) of section 2273a of 
title 10, United States Code, is amended to read as follows: 
‘‘(a) IN GENERAL.—There is within the Air Force 
Space and Missile Systems Center of the Department of De-
fense an office known as the Operationally Responsive 
Space Program Office (in this section referred to as the ‘Of-
fice’). The facilities of the Office may not be co-located with 
the headquarters facilities of the Air Force Space and Mis-
sile Systems Center.’’. 
(b) HEAD OF OFFICE.—Subsection (b) of such section 
is amended by striking ‘‘shall be—’’ and all that follows 
and inserting ‘‘the designee of the Department of Defense 
Executive Agent for Space. The head of the Office shall re-
port to the Commander of the Air Force Space and Missile 
Systems Center.’’. 
(c) MISSION.—Subsection (c)(1) of such section is 
amended by striking ‘‘spacelift’’ and inserting ‘‘launch’’. 
(d) SENIOR ACQUISITION EXECUTIVE.—Paragraph (1) 
of subsection (e) of such section is amended to read as fol-
lows:
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‘‘(1) The Program Executive Officer (PEO) for 
Space shall be the Acquisition Executive of the Office 
and shall provide streamlined acquisition authorities 
for projects of the Office.’’. 
(e) EXECUTIVE COMMITTEE.—Such section is further 
amended by adding at the end the following new subsection: 
‘‘(g) EXECUTIVE COMMITTEE.—(1) The Secretary of 
Defense shall establish for the Office an Executive Com-
mittee (to be known as the ‘Operationally Responsive Space 
Executive Committee’) to provide coordination, oversight, 
and approval of projects of the Office. 
‘‘(2) The Executive Committee shall consist of the offi-
cials (and their duties) as follows: 
‘‘(A) The Department of Defense Executive Agent 
for Space, who shall serve as Chair of the Executive 
Committee and provide oversight, prioritization, co-
ordination, and resources for the Office. 
‘‘(B) The Under Secretary of Defense for Acqui-
sition, Technology, and Logistics, who shall provide 
coordination and oversight of the Office and rec-
ommend funding sources for programs of the Office 
that exceed the approved program baseline. 
‘‘(C) The Commander of the United States Stra-
tegic Command, who shall validate requirements for 
systems to be acquired by the Office and participate
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† HR 4310 EAS1S 
in approval of any acquisition program initiated by 
the Office. 
‘‘(D) The Commander of the Air Force Space 
Command, who shall organize, train, and equip forces 
to support the acquisition programs of the Office. 
‘‘(E) Such other officials (and their duties) as 
the Secretary of Defense considers appropriate.’’. 
(f) TRANSFER OF FISCAL YEAR 2012 FUNDS.— 
(1) IN GENERAL.—To the extent provided in ap-
propriations Acts, the Secretary of the Air Force may 
transfer from the funds described in paragraph (2), 
$60,000,000 to other, higher priority programs of the 
Air Force. 
(2) COVERED FUNDS.—The funds described in 
this paragraph are amounts authorized to be appro-
priated for fiscal year 2012 by section 201 of the Na-
tional Defense Authorization Act for Fiscal Year 2012 
(Public Law 112–81; 125 Stat. 1329) and available 
for Research, Development, Test, and Evaluation, Air 
Force, for the Weather Satellite Follow On Program 
as specified in the funding table in section 4201 of 
that Act. 
(3) EFFECT ON AUTHORIZATION AMOUNTS.—A 
transfer made from one account to another under the 
authority of this subsection shall be deemed to in-
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† HR 4310 EAS1S 
crease the amount authorized for the account to which 
the amount is transferred by an amount equal to the 
amount transferred. 
(4) CONSTRUCTION OF AUTHORITY.—The trans-
fer authority in this subsection is in addition to any 
other transfer authority provided in this Act. 
(5) PROGRAM PLAN.—Not later than December 
31, 2012, the Secretary shall submit to the congres-
sional defense committees a report setting forth a pro-
gram plan for higher priority programs described in 
paragraph (1). 
SEC. 912. COMMERCIAL SPACE LAUNCH COOPERATION. 
(a) IN GENERAL.—Chapter 135 of title 10, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 2275. Commercial space launch cooperation 
‘‘(a) AUTHORITY.—The Secretary of Defense may, to 
assist the Secretary of Transportation in carrying out re-
sponsibilities set forth in title 51 with respect to private 
sector involvement in commercial space activities and pub-
lic-private partnerships pertaining to space transportation 
infrastructure, take the following actions: 
‘‘(1) Maximize the use by the private sector in 
the United States of the capacity of the space trans-
portation infrastructure of the Department of Defense.
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† HR 4310 EAS1S 
‘‘(2) Maximize the effectiveness and efficiency of 
the space transportation infrastructure of the Depart-
ment. 
‘‘(3) Reduce the cost of services provided by the 
Department related to space transportation infra-
structure at launch support facilities and space recov-
ery support facilities. 
‘‘(4) Encourage commercial space activities by 
enabling investment by covered entities in the space 
transportation infrastructure of the Department. 
‘‘(5) Foster cooperation between the Department 
and covered entities. 
‘‘(b) AUTHORITY FOR CONTRACTS AND OTHER AGREE-
MENTS RELATING
TO SPACE TRANSPORTATION INFRA-
STRUCTURE.—The Secretary of Defense— 
‘‘(1) may enter into a contract or other agree-
ment with a covered entity to provide to the covered 
entity support and services related to the space trans-
portation infrastructure of the Department of Defense; 
and 
‘‘(2) upon the request of that covered entity, may 
include such support and services in the space launch 
and reentry range support requirements of the De-
partment if—
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† HR 4310 EAS1S 
‘‘(A) the Secretary determines that the in-
clusion of such support and services in such re-
quirements— 
‘‘(i) is in the best interest of the Fed-
eral Government; 
‘‘(ii) does not interfere with the re-
quirements of the Department; and 
‘‘(iii) does not compete with the com-
mercial space activities of other covered en-
tities, unless that competition is in the na-
tional security interests of the United 
States; and 
‘‘(B) any commercial requirement included 
in that contract or other agreement has full non- 
Federal funding before the execution of the con-
tract or other agreement. 
‘‘(c) CONTRIBUTIONS.—(1) The Secretary of Defense 
may enter into contracts or other agreements with covered 
entities on a cooperative and voluntary basis to accept con-
tributions of funds, services, and equipment to carry out 
this section. 
‘‘(2) Any funds, services, or equipment accepted by the 
Secretary under this subsection— 
‘‘(A) may be used only for the objectives specified 
in this section in accordance with terms of use set
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† HR 4310 EAS1S 
forth in the contract or other agreement entered into 
under this subsection; and 
‘‘(B) shall be managed by the Secretary in ac-
cordance with regulations of the Department of De-
fense. 
‘‘(3) A contract or other agreement entered into under 
this subsection with a covered entity— 
‘‘(A) shall address the terms of use, ownership, 
and disposition of the funds, services, or equipment 
contributed pursuant to the contract or other agree-
ment; and 
‘‘(B) shall include a provision that the covered 
entity will not recover the costs of its contribution 
through any other contract or agreement with the 
United States. 
‘‘(d) DEFENSE COOPERATION SPACE LAUNCH AC-
COUNT.—(1) There is established on the books of the Treas-
ury a special account to be known as the ‘Defense Coopera-
tion Space Launch Account’. 
‘‘(2) Funds received by the Secretary of Defense under 
subsection (c) shall be credited to the Defense Cooperation 
Space Launch Account. 
‘‘(3) Amounts in the Department Defense Cooperation 
Space Launch Account shall be available, to the extent pro-
vided in appropriation Acts, for costs incurred by the De-
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† HR 4310 EAS1S 
partment of Defense under subsection (c). Funds in the Ac-
count shall remain available until expended. 
‘‘(e) ANNUAL REPORT.—Not later than January 31 
each year, the Secretary of Defense shall submit to the con-
gressional defense committees a report on the funds, services, 
and equipment accepted and used by the Secretary under 
this section during the previous fiscal year. 
‘‘(f) REGULATIONS.—The Secretary of Defense shall 
prescribe regulations to carry out this section. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) COVERED ENTITY.—The term ‘covered enti-
ty’ means a non-Federal entity that— 
‘‘(A) is organized under the laws of the 
United States or of any jurisdiction within the 
United States; and 
‘‘(B) is engaged in commercial space activi-
ties. 
‘‘(2) LAUNCH SUPPORT FACILITIES.—The term 
‘launch support facilities’ has the meaning given that 
term in section 50501(7) of title 51. 
‘‘(3) SPACE RECOVERY SUPPORT FACILITIES.— 
The term ‘space recovery support facilities’ has the 
meaning given that term in section 50501(11) of title 
51.
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† HR 4310 EAS1S 
‘‘(4) 
SPACE
TRANSPORTATION
INFRASTRUC-
TURE.—The term ‘space transportation infrastruc-
ture’ has the meaning given that term in section 
50501(12) of title 51.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 135 of such title is amended by 
adding at the end the following new item: 
‘‘2275. Commercial space launch cooperation.’’. 
SEC. 913. REPORTS ON INTEGRATION OF ACQUISITION AND 
CAPABILITY DELIVERY SCHEDULES FOR COM-
PONENTS FOR MAJOR SATELLITE ACQUISI-
TION PROGRAMS AND FUNDING FOR SUCH 
PROGRAMS. 
(a) IN GENERAL.—Chapter 135 of title 10, United 
States Code, as amended by section 912 of this Act, is fur-
ther amended by adding at the end the following new sec-
tion: 
‘‘§ 2276. Reports on integration of acquisition and ca-
pability delivery schedules for components 
for major satellite acquisition programs 
and funding for such programs 
‘‘(a) REPORTS REQUIRED.—The Under Secretary of 
Defense for Acquisition, Technology, and Logistics shall 
submit to the congressional defense committees a report on 
each major satellite acquisition program in accordance with 
subsection (d) that assesses—
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† HR 4310 EAS1S 
‘‘(1) the integration of the schedules for the ac-
quisition and the delivery of the capabilities of the 
components for the program; and 
‘‘(2) funding for the program. 
‘‘(b) ELEMENTS.—Each report required by subsection 
(a) with respect to a major satellite acquisition program 
shall include the following: 
‘‘(1) The amount of funding approved for the 
program and for each related program that is nec-
essary for the operational capability of the program. 
‘‘(2) The dates by which the program is antici-
pated to reach initial and full operational capability. 
‘‘(3) An assessment of the extent to which the 
schedules for the acquisition and the delivery of the 
capabilities of the components for the program or any 
related program referred to in paragraph (1) are in-
tegrated. 
‘‘(4) If the Under Secretary determines pursuant 
to the assessment under paragraph (3) that the sched-
ules for the acquisition and the delivery of the capa-
bilities of the components for the program, or a re-
lated program referred to in paragraph (1), provide 
for the acquisition or the delivery of the capabilities 
of at least two of the three components for the pro-
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† HR 4310 EAS1S 
gram or related program more than one year apart, 
an identification of— 
‘‘(A) the measures the Under Secretary is 
taking or is planning to take to improve the in-
tegration of those schedules; and 
‘‘(B) the risks and challenges that impede 
the ability of the Department of Defense to fully 
integrate those schedules. 
‘‘(c) CONSIDERATION BY MILESTONE DECISION AU-
THORITY.—The Milestone Decision Authority shall include 
the report required by subsection (a) with respect to a major 
satellite acquisition program as part of the documentation 
used to approve the acquisition of the program. 
‘‘(d) SUBMITTAL OF REPORTS.—(1) In the case of a 
major satellite acquisition program initiated before the date 
of the enactment of the National Defense Authorization Act 
for Fiscal Year 2013, the Under Secretary shall submit the 
report required by subsection (a) with respect to the pro-
gram not later than one year after such date of enactment. 
‘‘(2) In the case of a major satellite acquisition pro-
gram initiated on or after the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 2013, 
the Under Secretary shall submit the report required by 
subsection (a) with respect to the program at the time of 
the Milestone B approval of the program.
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† HR 4310 EAS1S 
‘‘(e) NOTIFICATION
TO
CONGRESS
OF
NON-INTE-
GRATED ACQUISITION AND CAPABILITY DELIVERY SCHED-
ULES.—If, after submitting the report required by sub-
section (a) with respect to a major satellite acquisition pro-
gram, the Under Secretary determines that the schedules for 
the acquisition and the delivery of the capabilities of the 
components for the program, or a related program referred 
to in subsection (b)(1), provide for the acquisition or the 
delivery of the capabilities of at least two of the three com-
ponents for the program or related program more than one 
year apart, the Under Secretary shall, not later than 30 
days after making that determination, submit to the con-
gressional defense committees a report— 
‘‘(1) notifying the committees of that determina-
tion; and 
‘‘(2) identifying the measures the Under Sec-
retary is taking or is planning to take to improve the 
integration of those schedules. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) COMPONENTS.—The term ‘components’, 
with respect to a major satellite acquisition program, 
refers to any satellites acquired under the program 
and the ground equipment and user terminals nec-
essary for the operation of those satellites.
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‘‘(2) 
MAJOR
SATELLITE
ACQUISITION
PRO-
GRAM.—The term ‘major satellite acquisition pro-
gram’ means a major defense acquisition program (as 
defined in section 2430 of this title) for the acquisi-
tion of a satellite. 
‘‘(3) MILESTONE B APPROVAL.—The term ‘Mile-
stone B approval’ has the meaning given that term in 
section 2366(e)(7) of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 135 of such title, as so amended, 
is further amended by adding at the end the following new 
item: 
‘‘2276. Reports on integration of acquisition and capability delivery schedules for 
components for major satellite acquisition programs and funding 
for such programs.’’. 
SEC. 914. DEPARTMENT OF DEFENSE REPRESENTATION IN 
DISPUTE 
RESOLUTION 
REGARDING 
SUR-
RENDER 
OF 
DEPARTMENT 
OF 
DEFENSE 
BANDS 
OF 
ELECTROMAGNETIC 
FRE-
QUENCIES. 
Section 1062(b)(1) of the National Defense Authoriza-
tion Act for Fiscal Year 2000 (Public Law 106–65; 113 
Stat. 768; 47 U.S.C. 921 note) is amended— 
(1) in subparagraph (A), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (B), by striking the period 
at the end and inserting ‘‘; and’’; and
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(3) by adding at the end the following new sub-
paragraph: 
‘‘(C) in the event of any dispute resolution 
process involving the surrender of use of such 
band, the Department of Defense has adequate 
representation to convey its views.’’. 
Subtitle C—Intelligence-Related 
and Cyber Matters 
SEC. 921. AUTHORITY TO PROVIDE GEOSPATIAL INTEL-
LIGENCE SUPPORT TO SECURITY ALLIANCES 
AND INTERNATIONAL AND REGIONAL ORGA-
NIZATIONS. 
(a) EXTENSION OF AUTHORITY TO SECURITY ALLI-
ANCES
AND INTERNATIONAL
AND REGIONAL ORGANIZA-
TIONS.—Section 443(a) of title 10, United States Code, is 
amended by inserting ‘‘, regional organizations with defense 
or security components, and international organizations 
and security alliances of which the United States is a mem-
ber’’ after ‘‘foreign countries’’. 
(b) CONFORMING AND CLERICAL AMENDMENTS.— 
(1) HEADING AMENDMENT.—The heading of sec-
tion 443 of such title is amended to read as follows:
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‘‘§ 443. Imagery intelligence and geospatial informa-
tion: support for foreign countries, secu-
rity alliances, and international and re-
gional organizations’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of subchapter I of chapter 22 of such 
title is amended by striking the item relating to sec-
tion 443 and inserting the following new item: 
‘‘443. Imagery intelligence and geospatial information: support for foreign coun-
tries, security alliances, and international and regional organi-
zations.’’. 
SEC. 922. ARMY DISTRIBUTED COMMON GROUND SYSTEM. 
(a) ASSIGNMENT
OF RESPONSIBILITY
FOR OVER-
SIGHT.—The Secretary of the Army shall assign responsi-
bility for oversight of the development, acquisition, testing, 
and fielding of the Distributed Common Ground System 
(DCGS) cloud computing program of the Army to the Chief 
Information Officer of the Army ((CIO)/G–6). 
(b) REVIEW OF PROGRAM.— 
(1) IN GENERAL.—Not later than December 1, 
2012, the Chief Information Officer shall submit to 
the Secretary a report on a review of the Distributed 
Common Ground System cloud computing program of 
the Army conducted by the Chief Information Officer 
for purposes of this section. 
(2) ELEMENTS.—The report shall include the fol-
lowing:
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(A) An assessment of the program in com-
parison with commercial products, if applicable, 
with respect to each of the following: 
(i) The effectiveness of analyst tools, 
user interfaces, and data visualization in 
supporting analyst missions and require-
ments. 
(ii) Training requirements for ana-
lysts. 
(iii) Ease of use for analysts. 
(iv) Rates of progress in developing 
analyst tools and linking tools for standard 
workflows. 
(B) An assessment of the soundness of the 
past decisions of the Army, and the future plans 
of the Army, for acquiring and integrating ana-
lyst tools, user interfaces, and data visualization 
capabilities through government-sponsored cus-
tom development, leasing of commercial solu-
tions, and government open source development. 
(C) Such recommendations regarding the 
program as the Chief Information Officer con-
siders appropriate in light of the review under 
this subsection.
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SEC. 923. RATIONALIZATION OF CYBER NETWORKS AND 
CYBER PERSONNEL OF THE DEPARTMENT OF 
DEFENSE. 
(a) IN GENERAL.—The Secretary of Defense shall take 
appropriate actions to substantially reduce the number of 
sub-networks and network enclaves across the Department 
of Defense, and the associated security and access manage-
ment controls, in order to achieve the following objectives 
for the Department: 
(1) Visibility for the United States Cyber Com-
mand in the operational and security status of all 
networks, network equipment, and computers. 
(2) Elimination of redundant network security 
infrastructure and personnel. 
(3) Rationalization and consolidation of cyber 
attack detection, diagnosis, and response resources, 
and elimination of gaps in security coverage. 
(4) Reduction of barriers to information sharing 
and enhancement of the capacity to rapidly create 
collaborative communities of interest. 
(5) Enhancement of access to information 
through authentication-based and identity-based ac-
cess controls. 
(6) Enhancement of the capacity to deploy, and 
achieve access to, enterprise-level services.
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(7) Separation of server and end-user device 
computing to facilitate server and data center consoli-
dation and a more secure tiered and zoned network 
architecture. 
(b) PERSONNEL PLAN.— 
(1) IN GENERAL.—As part of the actions taken 
under subsection (a), the Secretary shall establish and 
carry out a plan to reassign personnel billets cur-
rently allocated to network operations and security 
that will become available pursuant to the reduction 
in network enclaves required by that subsection to 
tasks related to potential offensive cyber operations in 
order to achieve an appropriate balance between the 
offensive and defensive missions of the United States 
Cyber Command and its components. The plan shall 
include targets for the number of personnel to be reas-
signed to tasks related to offensive operations, and the 
rate at which such personnel shall be added to the 
workforce for such tasks. 
(2) DISPOSITION OF PERSONNEL.—In developing 
the plan required by paragraph (1), the Secretary 
shall— 
(A) determine whether the number of per-
sonnel required to be reassigned to tasks related 
to offensive operations in order to achieve the
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balance described in paragraph (1) will be met, 
in pace and numbers, through the reassignment 
of personnel billets pursuant to the plan; and 
(B) if the Secretary determines that the 
number of personnel so required will not be so 
met (whether because of insufficient numbers of 
personnel in billets to be reassigned or because 
personnel available for reassignment cannot be 
trained or directed to tasks related to offensive 
operations), take appropriate actions to ensure 
the availability to the United States Cyber Com-
mand of appropriate numbers of personnel 
qualified to undertake tasks related to offensive 
operations. 
(3) ADDITIONAL ELEMENTS.—In developing the 
plan required by paragraph (1), the Secretary shall 
also— 
(A) identify targets for the number of per-
sonnel to be reassigned to tasks related to offen-
sive cyber operations, and the rate at which such 
personnel shall be added to the workforce for such 
tasks; and 
(B) identify targets for use of National 
Guard personnel to support cyber workforce ra-
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tionalization and the actions taken under sub-
section (a). 
(4) SUBMITTAL TO CONGRESS.—The Secretary 
shall submit the plan required by paragraph (1) to 
the congressional defense committees at the time of the 
submittal to Congress of the budget of the President 
for fiscal year 2014 pursuant to section 1105(a) of 
title 31, United States Code. 
SEC. 924. NEXT-GENERATION HOST-BASED CYBER SECU-
RITY SYSTEM FOR THE DEPARTMENT OF DE-
FENSE. 
(a) STRATEGY
FOR ACQUISITION
OF SYSTEM RE-
QUIRED.—The Chief Information Officer of the Department 
of Defense shall, in coordination with the Under Secretary 
of Defense for Acquisition, Technology, and Logistics, de-
velop a strategy to acquire next-generation host-based cyber-
security tools and capabilities (in this section referred to 
as a ‘‘next-generation system’’) for the Department of De-
fense. 
(b) ELEMENTS OF SYSTEM.—It is the sense of Congress 
that any next-generation system acquired under the strat-
egy required by subsection (a) should meet the following re-
quirements: 
(1) To overcome problems and limitations in 
current capabilities, the system should not rely on
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anti-virus or signature-based threat detection tech-
niques that— 
(A) 
cannot 
address 
new 
or 
rapidly 
morphing threats: 
(B) consume substantial amounts of com-
munications capacity to remain current with 
known threats and to report current status; or 
(C) consume substantial amounts of re-
sources to store rapidly growing threat libraries. 
(2) The system should provide an open architec-
ture-based framework for so-called ‘‘plug-and-play’’ 
integration of a variety of types of deployable tools in 
addition to cyber intrusion detection tools, including 
tools for— 
(A) insider threat detection; 
(B) continuous monitoring and configura-
tion management; 
(C) remediation following infections; and 
(D) protection techniques that do not rely 
on detection of the attack, such as virtualization, 
and diversification of attack surfaces. 
(3) The system should be designed for ease of de-
ployment to potentially millions of host devices of tai-
lored security solutions depending on need and risk, 
and to be compatible with cloud-based, thin-client,
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and virtualized environments as well as battlefield de-
vices and weapons systems. 
(c) SUBMITTAL TO CONGRESS.—The Chief Informa-
tion Office shall submit to Congress a report setting forth 
the strategy required by subsection (a) together with the 
budget justification materials of the Department of Defense 
submitted to Congress with the budget of the President for 
fiscal year 2015 pursuant to section 1105(a) of title 31, 
United States Code. 
SEC. 925. IMPROVEMENTS OF SECURITY, QUALITY, AND 
COMPETITION IN COMPUTER SOFTWARE PRO-
CURED BY THE DEPARTMENT OF DEFENSE. 
(a) COMPREHENSIVE PROGRAM ON IMPROVEMENT OF 
PROCUREMENT
OF COMPUTER SOFTWARE.—The Under 
Secretary of Defense for Acquisition, Technology, and Lo-
gistics shall, in coordination with the Chief Information Of-
ficer of the Department of Defense, develop a comprehensive 
program for improvements of the security, quality, and 
competition in the computer software procured by the De-
partment of Defense for covered systems 
(b) UPDATE
OF DEVELOPMENT
AND ACQUISITION 
MODELS.— 
(1) IN GENERAL.—The Under Secretary of De-
fense for Acquisition, Technology, and Logistics shall, 
in coordination with the Chief Information Officer,
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provide for the development of updates and improve-
ments to one or more existing best-practice develop-
ment and acquisition models (such as the Capability 
Maturity Model Integration) in order to provide ex-
plicit guidance under such model or models for im-
proved assurance, security, quality, and resiliency in 
the computer software developed and procured by the 
Department. 
(2) ELEMENTS.—Any update or improvement to 
a development and acquisition model under this sub-
section shall— 
(A) include diagnostic methods that enable 
evaluations of conformance to the processes and 
best practices of the model for achieving quality, 
assurance, and security throughout the life cycle 
of software products concerned; and 
(B) be compatible with the variety of cur-
rent agile and incremental software development 
methodologies. 
(c) REQUIREMENTS
FOR SECURE CODE DEVELOP-
MENT PRACTICES.—The Under Secretary shall, in coordi-
nation with the Chief Information Officer— 
(1) direct the Director of the Defense Information 
Systems Agency to modify the Application Security 
and Development Security Technical Implementation
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Guide (STIG) to require (rather than highly rec-
ommend) the use of automated static vulnerability 
analysis tools in the computer software code develop-
ment phase, and in development and operational test-
ing, to identify and remediate security vulnerabilities 
for covered systems; 
(2) develop a list of qualified government and 
private-sector static analysis tools and third-party 
testing organizations to support the requirement 
under paragraph (1); 
(3) direct the Director— 
(A) to designate secure software coding 
standards; and 
(B) to modify the Security Technical Imple-
mentation Guide to reference the approved 
standards; and 
(4) develop guidance and direction for Depart-
ment program managers to require government soft-
ware development and maintenance organizations 
and contractors to identify and implement, through 
contract statements of work, a secure software coding 
plan that includes verifiable processes and practices. 
(d) VERIFICATION OF EFFECTIVE IMPLEMENTATION.— 
The Under Secretary shall, in coordination with the Chief 
Information Officer, develop guidance and direction for De-
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partment program managers for covered systems to do as 
follows: 
(1) To require evidence that government software 
development and maintenance organizations and con-
tractors are conforming in computer software coding 
to— 
(A) approved secure coding standards of the 
Department during software development, up-
grade and maintenance activities, including 
through the use of inspection and appraisals; 
(B) an applicable best practice development 
and acquisition model; and 
(C) the requirement established pursuant to 
subsection (b)(1). 
(2) To make appropriate use of authorized soft-
ware code assessment centers (whether a government 
center, Federally funded research and development 
center, or government contractor) to evaluate applica-
tions and software products for conformance to secure 
coding requirements. 
(e) STUDY
ON ADDITIONAL MEANS
OF IMPROVING 
SOFTWARE SECURITY.— 
(1) IN GENERAL.—The Under Secretary shall, in 
coordination with the Chief Information Officer, pro-
vide for a study of potential mechanisms for obtain-
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ing higher quality and secure development of com-
puter software for the Department. 
(2) MECHANISMS TO BE STUDIED.—The mecha-
nisms studied under paragraph (1) may include the 
following: 
(A) Liability for defects or vulnerabilities 
in software code. 
(B) So-called ‘‘clawback’’ provisions on 
earned fees that enable the Department to recoup 
funds for security vulnerabilities discovered after 
software is delivered. 
(C) Exemption from liability for rigorous 
conformance with secure development processes. 
(D) Warranties against software defects and 
vulnerabilities. 
(f) SOFTWARE REPOSITORIES
AND COLLABORATIVE 
DEVELOPMENT
ENVIRONMENTS.—The Under Secretary 
shall, in consultation with the Chief Information Officer— 
(1) establish or require the use of one or more ex-
isting computer software repositories and collabo-
rative computer software development environments 
(such as Forge.mil managed by the Defense Informa-
tion Systems Agency) for covered systems for purposes 
of—
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(A) storing software code owned by the gov-
ernment, or to which it has use rights, together 
with all associated documentation and quality 
and security test results; 
(B) minimizing duplicative investment in 
software code development infrastructure while 
promoting common, high-quality development 
practices and facilitating sharing of best prac-
tices; and 
(C) promoting software re-use and competi-
tion for software capability insertion, upgrades, 
and maintenance; 
(2) establish rules and procedures for depositors 
in the repositories and environments provided for 
under paragraph (1) to keep the software code base 
current, if the depositors are not already using such 
a repository or environment for software development 
and life-cycle management; and 
(3) ensure that the repositories and environments 
provided for under paragraph (1) provide automated 
tools for software reverse engineering, functionality 
analysis, and static and dynamic vulnerability anal-
ysis of source code and binary code in order to enable 
users to search for software relevant to their require-
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ments, understand what the code does and how it 
functions, and assess its quality and security. 
(g) COVERED SYSTEMS DEFINED.—In this section, the 
term ‘‘covered systems’’ means any Department of Defense 
critical information systems and weapons systems, includ-
ing— 
(1) major systems, as that term is defined in sec-
tion 2302(5) of title 10, United States Code; 
(2) national security systems, as that term is de-
fined in section 3542(b)(2) of title 44, United States 
Code; and 
(3) Department of Defense information systems 
categorized as Mission Assurance Category I in De-
partment of Defense Directive 8500.01E that are 
funded by the Department of Defense. 
SEC. 926. COMPETITION IN CONNECTION WITH DEPART-
MENT OF DEFENSE DATA LINK SYSTEMS. 
(a) COMPETITION IN CONNECTION WITH DATA LINK 
SYSTEMS.— 
(1) IN GENERAL.—Not later than December 1, 
2013, the Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall— 
(A) develop an inventory of all data link 
systems in use and in development in the De-
partment of Defense;
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(B) conduct a business case analysis of each 
data link system contained in the inventory 
under subparagraph (A) to determine whether— 
(i) the maintenance, upgrade, new de-
ployment, or replacement of such system 
should be open to competition; or 
(ii) the data link should be converted 
to an open architecture, or a different data 
link standard should be adopted to enable 
such competition; 
(C) for each data link system for which 
competition is determined advisable under clause 
(i) or (ii) of subparagraph (B), develop a plan 
(with specific objectives, actions, and schedules) 
to achieve such competition, including a plan to 
address any policy, legal, programmatic, or tech-
nical barriers to such competition; and 
(D) for each data link system for which 
competition is determined not advisable under 
subparagraph (B), prepare a justification for the 
determination that it is not practical to conduct 
such competition or to convert the data link 
standard to open architecture or adopt a dif-
ferent data link standard for which competition 
is feasible.
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(2) ELEMENT OF BUSINESS CASE ANALYSES.—In 
conducting a business case analysis for purposes of 
paragraph (1)(B), the Under Secretary shall solicit 
the views of industry on the merits and feasibility of 
introducing competition for the maintenance, up-
grade, new deployment, or replacement for the data 
link system in question. 
(b) EARLIER ACTIONS.—If the Under Secretary com-
pletes any portion of the plan described in subsection 
(a)(1)(C) before December 1, 2013, the Secretary may com-
mence action on such portion of the plan upon completion 
of such portion, including publication of such portion of 
the plan. 
(c) REPORTS.— 
(1) SUBMITTAL
OF
PLAN
TO
CONGRESS.—The 
Under Secretary shall submit to Congress the plan de-
scribed in subsection (a)(1)(C) at the same time the 
budget of the President for fiscal year 2015 is sub-
mitted to Congress pursuant to section 1105(a) of title 
31, United States Code. The Under Secretary shall 
include with the plan— 
(A) a list of the data link systems covered 
by subsection (a)(1)(C); 
(B) a list of the data link systems covered 
by subsection (a)(1)(D); and
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(C) for each data link system covered by 
subsection (a)(1)(D), the justification prepared 
under that subsection with respect to the data 
link system. 
(2) COMPTROLLER OF THE UNITED STATES AS-
SESSMENT.—Not later than 90 days after the sub-
mittal to Congress under paragraph (1) of the plan 
described in subsection (a)(1)(C), the Comptroller 
General of the United States shall submit to Congress 
a report setting forth the assessment of the Comp-
troller General of the plan, including an assessment 
of the adequacy and objectives of the plan. 
SEC. 927. INTEGRATION OF CRITICAL SIGNALS INTEL-
LIGENCE CAPABILITIES. 
(a) PLAN FOR INTEGRATION REQUIRED.— 
(1) IN GENERAL.—Not later than January 1, 
2013, the Director of the Intelligence, Surveillance, 
and Reconnaissance (ISR) Task Force shall develop a 
plan to rapidly achieve an operationally integrated 
signals intelligence collection and dissemination capa-
bility to meet requirements for detecting, tracking, 
and precisely geolocating high-band communications 
devices in order to trigger the immediate observation 
and tracking of high-value targets by imagery sensor 
by combining or integrating capabilities that exist or
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are in development in ongoing programs, including 
the following: 
(A) The Guardrail program and the 
ARGUS A160 program of the Army. 
(B) The Blue Moon quick reaction capa-
bility program of the Air Force. 
(C) The Wide Area Network Detection pro-
gram of the Defense Advanced Research Projects 
Agency (DARPA). 
(2) CONSULTATION.—The Director shall consult 
with the National Security Agency, the combatant 
commands (including the United States Special Oper-
ations Command), and the formal wireless working 
groups of the intelligence community in developing 
the plan. 
(3) SUPPORT.—The Secretary of the Army, the 
Secretary of the Air Force, and the Director of the 
Defense Advanced Research Projects Agency shall each 
provide the Director such information and support as 
the Director shall require for the development of the 
plan. 
(b) DEVELOPMENT AND DEPLOYMENT.—In addition to 
the responsibility under subsection (a), the Director of the 
Intelligence, Surveillance, and Reconnaissance Task Force 
shall also coordinate funding, provide acquisition oversight,
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coordinate system deployment, and synchronize operational 
integration in support of combat operations for purposes 
of the development and deployment of the capability de-
scribed in that subsection. 
SEC. 928. COLLECTION AND ANALYSIS OF NETWORK FLOW 
DATA. 
(a) DEVELOPMENT OF TECHNOLOGIES.—The Chief In-
formation Officer of the Department of Defense may, in co-
ordination with the Under Secretary of Defense for Policy 
and the Under Secretary of Defense for Intelligence and act-
ing through the Director of the Defense Information Sys-
tems Agency (DISA), use the available funding and re-
search activities and capabilities of the Community Data 
Center of the Defense Information Systems Agency to de-
velop and demonstrate collection, processing, and storage 
technologies for network flow data that— 
(1) are potentially scalable to the volume used by 
Tier 1 Internet Service Providers (ISPs) to collect 
and analyze the flow data across their networks; 
(2) will substantially reduce the cost and com-
plexity of capturing and analyzing high volumes of 
flow data; and 
(3) support the capability— 
(A) to detect and identify cybersecurity 
threats, networks of compromised computers, and
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command and control sites used for managing il-
licit cyber operations and receiving information 
from compromised computers; 
(B) track illicit cyber operations for attri-
bution of the source; and 
(C) provide early warning and attack as-
sessment of offensive cyber operations. 
(b) COORDINATION.—Any research and development 
required in the development of the technologies described in 
subsection (a) shall be conducted in cooperation with the 
heads of other appropriate departments and agencies of the 
Federal Government and, whenever feasible, Tier 1 Internet 
Service Providers. 
SEC. 929. DEPARTMENT OF DEFENSE USE OF NATIONAL SE-
CURITY AGENCY CLOUD COMPUTING DATA-
BASE 
AND 
INTELLIGENCE 
COMMUNITY 
CLOUD COMPUTING INFRASTRUCTURE AND 
SERVICES. 
(a) LIMITATION ON USE OF NSA DATABASE.— 
(1) LIMITATION.—No component of the Depart-
ment of Defense may utilize the cloud computing 
database developed by the National Security Agency 
(NSA) called Accumulo after September 30, 2013, un-
less the Chief Information Officer of the Department 
of Defense certifies one of the following:
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(A) That there are no viable commercial 
open source databases with extensive industry 
support (such as the Apache Foundation HBase 
and Cassandra databases) that have security fea-
tures comparable to the Accumulo database that 
are considered essential by the Chief Information 
Officer for purposes of the certification under 
this paragraph. 
(B) That the Accumulo database has become 
a successful Apache Foundation open source 
database with adequate industry support and di-
versification, based on criteria to be established 
by the Chief Information Officer for purposes of 
the certification under this paragraph and sub-
mitted to the appropriate committees of Congress 
not later than January 1, 2013. 
(2) CONSTRUCTION.—The limitation in para-
graph (1) shall not apply to the National Security 
Agency. 
(b) ADAPTATION OF ACCUMULO SECURITY FEATURES 
TO HBASE DATABASE.—The Director of the National Secu-
rity Agency shall take appropriate actions to ensure that 
companies and organizations developing and supporting 
open source and commercial open source versions of the 
Apache Foundation HBase and Cassandra databases, or