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(b) ELEMENTS OF PILOT PROGRAM.—In carrying 
out the pilot program under subsection (a), the Secretary 
shall ensure the following: 
(1) Patients who participate in the pilot pro-
gram are patients who— 
(A) have more than one chronic condition; 
and 
(B) are prescribed more than one medica-
tion. 
(2) Medication therapy management services 
provided under the pilot program are focused on im-
proving patient use and outcomes of prescription 
medications. 
(3) The design of the pilot considers best com-
mercial practices in providing medication therapy 
management services, including practices under the 
prescription drug program under part D of title 
XVIII of the Social Security Act (42 U.S.C. 1395w– 
101 et seq.). 
(4) The pilot program includes methods to 
measure the effect of medication therapy manage-
ment services on— 
(A) patient use and outcomes of prescrip-
tion medications; and 
(B) the costs of health care. 
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(c) LOCATIONS.— 
(1) SELECTION.—The Secretary shall carry out 
the pilot program under subsection (a) in not less 
than three locations. 
(2) FIRST LOCATION CRITERIA.—Not less than 
one location selected under paragraph (1) shall meet 
the following criteria: 
(A) The location is a pharmacy at a mili-
tary medical treatment facility. 
(B) The patients participating in the pilot 
program at such location generally receive pri-
mary care services from health care providers at 
such facility. 
(3) SECOND
LOCATION
CRITERIA.—Not less 
than one location selected under paragraph (1) shall 
meet the following criteria: 
(A) The location is a pharmacy at a mili-
tary medical treatment facility. 
(B) The patients participating in the pilot 
program at such location generally do not re-
ceive primary care services from health care 
providers at such facility. 
(4) THIRD
LOCATION
CRITERION.—Not less 
than one location selected under paragraph (1) shall 
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be a pharmacy located at a location other than a 
military medical treatment facility. 
(d) DURATION.—The Secretary shall carry out the 
pilot program under subsection (a) for a period deter-
mined appropriate by the Secretary that is not less than 
two years. 
(e) REPORT.—Not later than 30 months after the 
date on which the Secretary commences the pilot program 
under subsection (a), the Secretary shall submit to the 
congressional defense committees a report on the pilot 
program that includes— 
(1) information on the effect of medication 
therapy management services on— 
(A) patient use and outcomes of prescrip-
tion medications; and 
(B) the costs of health care; 
(2) the recommendations of the Secretary with 
respect to incorporating medication therapy manage-
ment into the TRICARE program; and 
(3) such other information as the Secretary de-
termines appropriate. 
(f) DEFINITIONS.—In this section: 
(1) The term ‘‘medication therapy manage-
ment’’ means professional services provided by quali-
fied pharmacists to patients to improve the effective 
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use and outcomes of prescription medications pro-
vided to the patients. 
(2) The term ‘‘TRICARE program’’ has the 
meaning given that term in section 1072 of title 10, 
United States Code. 
SEC. 726. REPORT ON REDUCTION OF PRIME SERVICE 
AREAS. 
(a) IN GENERAL.—Section 732 of the National De-
fense Authorization Act for Fiscal Year 2013 (Public Law 
112–239; 126 Stat. 1816), as amended by section 701 of 
the National Defense Authorization Act for Fiscal Year 
2014 (Public Law 113–66), is further amended— 
(1) by redesignating subsections (b) and (c) as 
subsections (c) and (d), respectively; and 
(2) by inserting after subsection (a) the fol-
lowing new subsection (b): 
‘‘(b) ADDITIONAL REPORT.— 
‘‘(1) IMPLEMENTATION.—Not later than 180 
days after the date of the enactment of the National 
Defense Authorization Act for Fiscal Year 2015, the 
Secretary shall submit to the congressional defense 
committees a report on the status of reducing the 
availability of TRICARE Prime in regions described 
in subsection (d)(1)(B). 
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‘‘(2) MATTERS INCLUDED.—The report under 
paragraph (1) shall include the following: 
‘‘(A) Details regarding the impact to af-
fected eligible beneficiaries with respect to the 
reduction of the availability of TRICARE 
Prime in regions described in subsection 
(d)(1)(B), including, with respect to each 
State— 
‘‘(i) the number of affected eligible 
beneficiaries who, as of the date of the re-
port, are enrolled in TRICARE Standard; 
‘‘(ii) the number of affected eligible 
beneficiaries who, as of the date of the re-
port; changed residences to remain eligible 
for TRICARE Prime in a new region; and 
‘‘(iii) the number of affected eligible 
beneficiaries who, as of the date of the re-
port, have made an election described in 
subsection (c)(1). 
‘‘(B) The estimated increase in annual 
costs per each affected eligible beneficiary 
counted under subparagraph (A) as compared 
to the estimated annual costs if a contract de-
scribed in subsection (a)(2)(A) did not affect 
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the eligibility of the beneficiary for TRICARE 
Prime. 
‘‘(C) A description of the efforts of the 
Secretary to assess— 
‘‘(i) the impact on access to health 
care for affected eligible beneficiaries; and 
‘‘(ii) the satisfaction of such bene-
ficiaries with respect to access to health 
care under TRICARE Standard. 
‘‘(D) A description of the estimated cost 
savings realized by reducing the availability of 
TRICARE Prime in regions described in sub-
section (d)(1)(B).’’. 
(b) 
CONFORMING
AMENDMENT.—Subsection 
(b)(3)(A) of such section is amended by striking ‘‘sub-
section (c)(1)(B)’’ and inserting ‘‘subsection (d)(1)(B)’’. 
SEC. 727. COMPTROLLER GENERAL REPORT ON TRANSI-
TION OF CARE FOR POST-TRAUMATIC STRESS 
DISORDER OR TRAUMATIC BRAIN INJURY. 
(a) REPORT.—Not later than April 1, 2015, the 
Comptroller General of the United States shall submit to 
the congressional defense committees and Committees on 
Veterans’ Affairs of the House of Representatives and the 
Senate a report that assesses the transition of care for 
post-traumatic stress disorder or traumatic brain injury. 
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(b) MATTERS INCLUDED.—The report under sub-
section (a) shall include the following: 
(1) The programs, policies, and regulations that 
affect the transition of care, particularly with re-
spect to individuals who are taking or have been pre-
scribed antidepressants, stimulants, antipsychotics, 
mood 
stabilizers, 
anxiolytic, 
depressants, 
or 
hallucinogens. 
(2) Upon transitioning to care furnished by the 
Secretary of Veterans Affairs, the extent to which 
the pharmaceutical treatment plan of an individual 
changes, and the factors determining such changes. 
(3) The extent to which the Secretary of De-
fense and the Secretary of Veterans Affairs have 
worked together to identify and apply best pharma-
ceutical treatment practices. 
(4) A description of the off-formulary waiver 
process of the Secretary of Veterans Affairs, and the 
extent to which the process is applied efficiently at 
the treatment level. 
(5) The benefits and challenges of combining 
the formularies across the Department of Defense 
and the Department of Veterans Affairs. 
(6) Any other issues that the Comptroller Gen-
eral determines appropriate. 
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(c) TRANSITION OF CARE DEFINED.—In this section, 
the term ‘‘transition of care’’ means the transition of an 
individual from receiving treatment furnished by the Sec-
retary of Defense to treatment furnished by the Secretary 
of Veterans Affairs. 
SEC. 728. BRIEFING ON HOSPITALS IN ARREARS IN PAY-
MENTS TO DEPARTMENT OF DEFENSE. 
Not later than 60 days after the date of the enact-
ment of this Act, the Secretary of Defense shall provide 
to the Committees on Armed Services of the House of 
Representatives and the Senate a briefing on the process 
used by the Defense Health Agency to collect payments 
from non-Department of Defense hospitals. Such briefing 
shall include a list of each hospital that is more than 90 
days in arrears in payments to the Secretary, including 
the amount of arrears (by 30-day increments) for each 
such hospital. 
SEC. 729. RESEARCH REGARDING BREAST CANCER. 
In carrying out research, development, test, and eval-
uation activities with respect to breast cancer, the Sec-
retary of Defense shall implement the recommendations 
of the Interagency Breast Cancer and Environmental Re-
search Coordinating Committee to prioritize prevention 
and increase the study of chemical and physical factors 
in breast cancer. 
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SEC. 730. SENSE OF CONGRESS REGARDING ACCESS TO 
MENTAL HEALTH SERVICES BY MEMBERS OF 
THE ARMED FORCES. 
It is the sense of Congress that— 
(1) mental health and substance use disorders, 
traumatic brain injury, and suicide are being experi-
enced at alarming levels among members of the 
Armed Forces; 
(2) members of the Armed Forces should have 
adequate access to the support and care they need; 
(3) public-private mental health partnerships 
can provide the Department of Defense with an en-
hanced and unique capability to treat members of 
the Armed Forces; 
(4) the Department of Defense should fully im-
plement the pilot program authorized under section 
706 of the National Defense Authorization Act for 
Fiscal Year 2013 (10 U.S.C. 10101 note; Public 
Law 112–239) for purposes of enhancing the efforts 
of the Department of Defense in research, treat-
ment, education, and outreach on mental health and 
substance use disorders and traumatic brain injury 
in members of the National Guard and Reserves. 
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SEC. 731. EVALUATION OF WOUNDED WARRIOR CARE AND 
TRANSITION PROGRAM. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that gaining new ideas and an objective perspective 
are critical to addressing issues regarding the treatment 
of wounded warriors. 
(b) EVALUATION.—The Secretary of Defense shall 
seek to enter into a contract with a private organization 
to evaluate the wounded warrior care and transition pro-
gram of the Department of Defense. Such evaluation shall 
identify deficiencies in the treatment of wounded warriors 
and offer recommendations to the Secretary of Defense 
and Congress to improve such treatment. The Secretary 
may not award a contract to a private organization to 
carry out such evaluation unless the private organization 
received less than 20 percent of the annual revenue of the 
organization during the previous five years from contracts 
with the Department of Defense or the Department of 
Veterans Affairs. 
(c) FUNDING.— 
(1) INCREASE.—Notwithstanding the amounts 
set forth in the funding tables in division D, the 
amount authorized to be appropriated in section 
1405 for the Defense Health Program, as specified 
in the corresponding funding table in section 4501, 
is hereby increased by $20,000,000. 
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(2) OFFSET.—Notwithstanding the amounts set 
forth in the funding tables in division D— 
(A) the amounts authorized to be appro-
priated in section 101 for shipbuilding and con-
version, Navy, as specified in the corresponding 
funding table in section 4101, is hereby reduced 
by $10,000,000; and 
(B) the amounts authorized to be appro-
priated in division C for weapons activities, as 
specified in the corresponding funding table in 
section 4701, for the B61 life extension pro-
gram and the W76 life extension program are 
each hereby reduced by $5,000,000. 
SEC. 732. IMPROVEMENT OF MENTAL HEALTH CARE. 
(a) EVALUATIONS OF MENTAL HEALTH CARE AND 
SUICIDE PREVENTION PROGRAMS.— 
(1) IN
GENERAL.—Not less than once each 
year, the Secretary concerned (as defined in section 
101(a)(9) of title 10, United States Code) shall con-
tract with a third party unaffiliated with the Depart-
ment of Veterans Affairs or the Department of De-
fense to conduct an evaluation of the mental health 
care and suicide prevention programs carried out 
under the laws administered by such Secretary. 
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(2) ELEMENTS.—Each evaluation conducted 
under paragraph (1) shall— 
(A) use metrics that are common among 
and useful for practitioners in the field of men-
tal health care and suicide prevention; 
(B) identify the most effective mental 
health care and suicide prevention programs 
conducted by the Secretary concerned; 
(C) propose best practices for caring for 
individuals who suffer from mental health dis-
orders or are at risk of suicide; and 
(D) make recommendations to improve the 
coordination and integration of mental health 
and suicide prevention services between the De-
partment of Veterans Affairs and the Depart-
ment of Defense to improve the delivery and ef-
fectiveness of such services. 
SEC. 733. PRIMARY BLAST INJURY RESEARCH. 
The peer-reviewed Psychological Health and Trau-
matic Brain Injury Research Program shall conduct a 
study on blast injury mechanics covering a wide range of 
primary blast injury conditions, including traumatic brain 
injury, in order to accelerate solution development in this 
critical area. 
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SEC. 734. REPORT ON EFFORTS TO TREAT INFERTILITY OF 
MILITARY FAMILIES. 
(a) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a re-
port on what steps the Secretary is taking to ensure that 
members of the Armed Forces and the dependents of such 
members have access to reproductive counseling and a full 
spectrum of treatments for infertility, including in vitro 
fertilization. 
(b) MATTERS INCLUDED.—The report under sub-
section (a) shall include the following: 
(1) An assessment of treatment options avail-
able at military medical treatment facilities through-
out the military health system. 
(2) An identification of factors that might dis-
rupt treatment, including availability of options, lack 
of timely access to treatment, change in duty sta-
tion, or overseas deployments. 
(3) The number of members of the Armed 
Forces who have used specific treatment options, in-
cluding in vitro fertilization. 
(4) The number of dependents of members who 
have used specific treatment options, including in 
vitro fertilization. 
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(5) An identification of non-Department of De-
fense treatment options for infertility that could ben-
efit members and the dependents of members. 
(6) Any other matters the Secretary determines 
appropriate. 
SEC. 735. SENSE OF CONGRESS ON USE OF HYPERBARIC 
OXYGEN THERAPY TO TREAT TRAUMATIC 
BRAIN 
INJURY 
AND 
POST-TRAUMATIC 
STRESS DISORDER. 
(a) FINDINGS.—Congress finds the following: 
(1) Traumatic brain injury and post-traumatic 
stress disorder are the signature injuries of the wars 
in Iraq and Afghanistan. 
(2) Post-traumatic stress disorder is prevalent 
throughout the regular component of the Armed 
Forces. 
(3) For example, with respect to Camp 
Lejeune, North Carolina, which has a base popu-
lation of 41,753 active duty personnel, including 
38,020 marines and 3,533 sailors— 
(A) 6,616 patients with a principal diag-
nosis of post-traumatic stress disorder had at 
least one visit for post-traumatic stress disorder 
between February 2013 and April 2014; and 
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(B) the Naval Hospital Camp Lejeune, 
which had a total of approximately 600,000 
outpatient visits during 2013, recorded 15,043 
outpatient visits for which post-traumatic stress 
disorder was the primary reason for the visit 
between February 2013 and April 2014. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) hyperbaric oxygen therapy is a medical 
treatment that can be used to treat active duty 
members of the Armed Forces for traumatic brain 
injury and post-traumatic stress disorder if— 
(A) such treatment is prescribed by a mili-
tary medical doctor; and 
(B) a hyperbaric chamber that is owned by 
the Department of Defense and cleared for clin-
ical use is locally available; and 
(2) the Secretary of Defense should increase 
awareness among members of the Armed Forces, in-
cluding military medical doctors, of hyperbaric oxy-
gen therapy to treat traumatic brain injury and 
post-traumatic stress disorder. 
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TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS 
Subtitle A—Amendments to Gen-
eral 
Contracting 
Authorities, 
Procedures, and Limitations 
SEC. 801. EXTENSION TO UNITED STATES TRANSPOR-
TATION COMMAND OF AUTHORITIES RELAT-
ING 
TO 
PROHIBITION 
ON 
CONTRACTING 
WITH THE ENEMY. 
Section 831(i)(1) of the National Defense Authoriza-
tion Act for Fiscal Year 2014 (Public Law 113–66; 127 
Stat. 813) is amended by inserting ‘‘United States Trans-
portation Command,’’ after ‘‘United States Southern 
Command,’’. 
SEC. 802. EXTENSION OF CONTRACT AUTHORITY FOR AD-
VANCED 
COMPONENT 
DEVELOPMENT 
OR 
PROTOTYPE UNITS. 
(a) 
EXTENSION
OF
TERMINATION.—Subsection 
(b)(4) of section 819 of the National Defense Authoriza-
tion Act for Fiscal Year 2010 (Public Law 111–84; 10 
U.S.C. 2302 note) is amended by striking ‘‘September 30, 
2014’’ and inserting ‘‘September 30, 2019’’. 
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(b) EXTENSION OF REPORT REQUIREMENT.—Sub-
section (c) of such section is amended by striking ‘‘March 
1, 2013’’ and inserting ‘‘ March 1, 2018’’. 
SEC. 803. AMENDMENT RELATING TO AUTHORITY OF THE 
DEFENSE ADVANCED RESEARCH PROJECTS 
AGENCY TO CARRY OUT CERTAIN PROTO-
TYPE PROJECTS. 
Section 845(a)(1) of Public Law 103–160 (10 U.S.C. 
2371 note) is amended by striking ‘‘weapons or weapon 
systems proposed to be acquired or developed by the De-
partment of Defense, or to improvement of weapons or 
weapon systems in use by the Armed Forces’’ and insert-
ing the following: ‘‘enhancing the mission effectiveness of 
military personnel and the supporting platforms, systems, 
components, or materials proposed to be acquired or devel-
oped by the Department of Defense, or to improvement 
of platforms, systems, components, or materials in use by 
the Armed Forces’’. 
SEC. 804. EXTENSION OF LIMITATION ON AGGREGATE AN-
NUAL AMOUNT AVAILABLE FOR CONTRACT 
SERVICES. 
Section 808 of the National Defense Authorization 
Act for Fiscal Year 2012 (Public Law 112–81; 125 Stat. 
1489), as amended by section 802 of the National Defense 
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Authorization Act for Fiscal Year 2014 (Public Law 113– 
66; 127 Stat. 804) is further amended— 
(1) in subsections (a) and (b), by striking ‘‘or 
2014’’ and inserting ‘‘2014, or 2015’’; 
(2) in subsection (c)(3), by striking ‘‘and 2014’’ 
and inserting ‘‘2014, and 2015’’; 
(3) in subsection (d)(4), by striking ‘‘or 2014’’ 
and inserting ‘‘2014, or 2015’’; and 
(4) in subsection (e), by striking ‘‘2014’’ and 
inserting ‘‘2015’’. 
SEC. 805. MAXIMIZING COMPETITION IN DESIGN-BUILD 
CONTRACTS. 
(a) PUBLIC DESIGN-BUILD CONSTRUCTION PROCESS 
IMPROVEMENT.—Section 3309 of title 41, United States 
Code, is amended— 
(1) in subsection (a), by inserting ‘‘and the con-
tract is in an amount of $1,000,000 or greater’’ 
after ‘‘appropriate for use’’; 
(2) by striking the second sentence of sub-
section (d) and inserting the following: ‘‘The max-
imum number specified in the solicitation shall not 
exceed 5 unless the head of the agency approves the 
contracting officer’s justification with respect to the 
solicitation that a number greater than 5 is in the 
Federal Government’s interest. The contracting offi-
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cer shall provide written documentation of how a 
maximum number exceeding 5 is consistent with the 
purposes and objectives of the two-phase selection 
procedures.’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(f) REPORT.— 
‘‘(1) IN GENERAL.—The Director of the Office 
of Management and Budget shall require the head 
of each agency to appoint an individual who shall 
provide to the Director an annual compilation of 
each instance the agency awarded a contract pursu-
ant to this section in which— 
‘‘(A) more than 5 offerors were selected to 
submit competitive proposals pursuant to sub-
section (c)(4); or 
‘‘(B) the contract was awarded without 
using the two-phase selection procedures de-
scribed in subsection (c). 
‘‘(2) PUBLICATION.—The Director shall pre-
pare an annual report containing the information 
provided by each executive agency under subpara-
graph (A). The report shall be accessible to the pub-
lic through electronic means, and the Director shall 
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publish a notice of availability in the Federal Reg-
ister. 
‘‘(3) FISCAL YEARS COVERED; DEADLINE.—The 
Director shall submit to Congress the report pre-
pared under subparagraph (B) for the fiscal year 
during which this subsection is enacted, and each of 
the next 4 fiscal years, not later than 60 days after 
the end of each such fiscal year.’’. 
(b) DEFENSE DESIGN-BUILD CONSTRUCTION PROC-
ESS IMPROVEMENT.—Section 2305a of title 10, United 
States Code, is amended— 
(1) in subsection (a), by inserting ‘‘and the con-
tract is in an amount of $1,000,000 or greater’’ 
after ‘‘appropriate for use’’; 
(2) by striking the second sentence of sub-
section (d) and inserting the following: ‘‘The max-
imum number specified in the solicitation shall not 
exceed 5 unless the head of the agency approves the 
contracting officer’s justification with respect to an 
individual solicitation that a number greater than 5 
is in the Federal Government’s interest. The con-
tracting officer shall provide written documentation 
of how a maximum number exceeding 5 is consistent 
with the purposes and objectives of the two-phase se-
lection procedures.’’; and 
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(3) by adding at the end the following new sub-
section: 
‘‘(g) REPORT.—(1) The Director of the Office of 
Management and Budget shall require the head of each 
agency to appoint an individual who shall provide to the 
Director an annual compilation of each instance the agen-
cy awarded a contract pursuant to this section in which— 
‘‘(A) more than 5 offerors were selected to sub-
mit competitive proposals pursuant to subsection 
(c)(4); or 
‘‘(B) the contract was awarded without using 
the two-phase selection procedures described in sub-
section (c). 
‘‘(2) The Director shall prepare an annual report con-
taining the information provided by each executive agency 
under subparagraph (A). The report shall be accessible to 
the public through electronic means, and the Director 
shall publish a notice of availability in the Federal Reg-
ister. 
‘‘(3) The Director shall submit to Congress the report 
prepared under subparagraph (B) for the fiscal year dur-
ing which this subsection is enacted, and each of the next 
4 fiscal years, not later than 60 days after the end of each 
such fiscal year’’. 
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(c) GAO REPORT.—Not later than the end of fiscal 
year 2021, the Comptroller General of the United States 
shall issue a report analyzing the extent to which Federal 
agencies are in compliance with the reporting require-
ments in section 2305a(f) of title 10, United States Code, 
and section 3309(g) of title 41, United States Code. 
SEC. 806. PERMANENT AUTHORITY FOR USE OF SIM-
PLIFIED 
ACQUISITION 
PROCEDURES 
FOR 
CERTAIN COMMERCIAL ITEMS. 
Section 4202 of the Clinger-Cohen Act of 1996 (divi-
sion D of Public Law 104–106; 10 U.S.C. 2304 note) is 
amended by striking subsection (e). 
Subtitle B—Industrial Base 
Matters 
SEC. 811. THREE-YEAR EXTENSION OF AND AMENDMENTS 
TO TEST PROGRAM FOR NEGOTIATION OF 
COMPREHENSIVE SMALL BUSINESS SUBCON-
TRACTING PLANS. 
(a) THREE-YEAR EXTENSION.—Subsection (e) of 
section 834 of the National Defense Authorization Act for 
Fiscal Years 1990 and 1991 (15 U.S.C. 637 note) is 
amended by striking ‘‘December 31, 2014’’ and inserting 
‘‘December 31, 2017’’. 
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(b) ADDITIONAL REQUIREMENTS FOR COMPREHEN-
SIVE SUBCONTRACTING PLANS.—Subsection (b) of section 
834 of such Act is amended— 
(1) in paragraph (1), by striking ‘‘paragraph 
(3)’’ and inserting ‘‘paragraph (4)’’; 
(2) by redesignating paragraph (3) as para-
graph (4), and in that paragraph by striking 
‘‘$5,000,000’’ and inserting ‘‘$100,000,000’’; and 
(3) by inserting after paragraph (2) the fol-
lowing new paragraph (3): 
‘‘(3) Each comprehensive subcontracting plan of a 
contractor shall require that the contractor report to the 
Secretary of Defense on a semi-annual basis the following 
information: 
‘‘(A) The amount of first-tier subcontract dol-
lars awarded during the six-month period covered by 
the report to covered small business concerns, with 
the information set forth separately— 
‘‘(i) by North American Industrial Classi-
fication System code; 
‘‘(ii) by major defense acquisition program, 
as defined in section 2430(a) of title 10, United 
States Code; 
‘‘(iii) by contract, if the contract is for the 
maintenance, overhaul, repair, servicing, reha-
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bilitation, salvage, modernization, or modifica-
tion of supplies, systems, or equipment and the 
total value of the contract, including options, 
exceeds $100,000,000; and 
‘‘(iv) by military department. 
‘‘(B) The total number of subcontracts active 
under the test program during the six-month period 
covered by the report that would have otherwise re-
quired a subcontracting plan under paragraph (4) or 
(5) of section 8(d) of the Small Business Act (15 
U.S.C. 637(d)). 
‘‘(C) Costs incurred in negotiating, complying 
with, and reporting on comprehensive subcontracting 
plans. 
‘‘(D) Costs avoided by adoption of a com-
prehensive subcontracting plan. 
‘‘(E) Any other information required by the De-
partment of Defense to complete the study required 
by subsection (f).’’. 
(c) ADDITIONAL CONSEQUENCE FOR FAILURE TO 
MAKE GOOD FAITH EFFORT TO COMPLY.— 
(1) AMENDMENTS.—Subsection (d) of section 
834 of such Act is amended— 
(A) by striking ‘‘COMPANY-WIDE’’ and in-
serting ‘‘COMPREHENSIVE’’ in the heading; 
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(B) by striking ‘‘company-wide’’ and in-
serting ‘‘comprehensive subcontracting’’; and 
(C) by adding at the end the following: ‘‘In 
addition, any such failure shall be a factor con-
sidered as part of the evaluation of past per-
formance of an offeror.’’. 
(2) REPEAL OF SUSPENSION OF SUBSECTION 
(D).—Section 402 of Public Law 101–574 (15 
U.S.C. 637 note) is repealed. 
(d) ADDITIONAL REPORT.— 
(1) IN
GENERAL.—Paragraph (1) of section 
834(f) of such Act is amended by striking ‘‘March 
1, 1994, and March 1, 2012’’ and inserting ‘‘Sep-
tember 30, 2015’’. 
(2) CORRECTION
OF
REFERENCE
TO
COM-
MITTEE.—Such paragraph is further amended by 
striking ‘‘Committees’’ and all that follows through 
the end of such paragraph and inserting the fol-
lowing: ‘‘Committees on Armed Services and on 
Small Business of the House of Representatives and 
the Committees on Armed Services and on Small 
Business and Entrepreneurship of the Senate’’. 
(e) ADDITIONAL DEFINITIONS.— 
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(1) COVERED
SMALL
BUSINESS
CONCERN.— 
Subsection (g) of section 834 of such Act is amend-
ed to read as follows: 
‘‘(g) DEFINITIONS.—In this section, the term ‘cov-
ered small business concern’ includes each of the following: 
‘‘(1) A small business concern, as that term is 
defined under section 3(a) of the Small Business Act 
(15 U.S.C. 632(a)); 
‘‘(2) A small business concern owned and con-
trolled by veterans, as that term is defined in section 
3(q)(3) of such Act (15 U.S.C. 632(q)(3)). 
‘‘(3) A small business concern owned and con-
trolled by service-disabled veterans, as that term is 
defined in section 3(q)(2) of such Act (15 U.S.C. 
632(q)(2)). 
‘‘(4) A qualified HUBZone small business con-
cern, as that term is defined under section 3(p)(5) 
of such Act (15 U.S.C. 632(p)(5)). 
‘‘(5) A small business concern owned and con-
trolled by socially and economically disadvantaged 
individuals, as that term is defined in section 
8(d)(3)(C) of such Act (15 U.S.C. 637(d)(3)(C)). 
‘‘(6) A small business concern owned and con-
trolled by women, as that term is defined under sec-
tion 3(n) of such Act (15 U.S.C. 632(n)).’’. 
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(2) 
CONFORMING
AMENDMENT.—Subsection 
(a)(1) of section 834 of such Act is amended by 
striking ‘‘small business concerns and small business 
concerns owned and controlled by socially and eco-
nomically disadvantaged individuals’’ and inserting 
‘‘covered small business concerns’’. 
SEC. 812. IMPROVING OPPORTUNITIES FOR SERVICE-DIS-
ABLED 
VETERAN-OWNED 
SMALL 
BUSI-
NESSES. 
(a) SMALL BUSINESS DEFINITION OF SMALL BUSI-
NESS CONCERN CONSOLIDATED.—Section 3(q) of the 
Small Business Act (15 U.S.C. 632(q)) is amended— 
(1) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) SMALL BUSINESS CONCERN OWNED AND 
CONTROLLED
BY
SERVICE-DISABLED
VETERANS.— 
The term ‘small business concern owned and con-
trolled by service-disabled veterans’ means a small 
business concern— 
‘‘(A)(i) not less than 51 percent of which 
is owned by one or more service-disabled vet-
erans or, in the case of any publicly owned busi-
ness, not less than 51 percent of the stock of 
which is owned by one or more service-disabled 
veterans; and 
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‘‘(ii) the management and daily business 
operations of which are controlled by one or 
more service-disabled veterans or, in the case of 
a veteran with permanent and severe disability, 
the spouse or permanent caregiver of such vet-
eran; or 
‘‘(B)(i) not less than 51 percent of which 
is owned by one or more veterans with service- 
connected disabilities that are permanent and 
total who are unable to manage the daily busi-
ness operations of such concern or, in the case 
of a publicly owned business, not less than 51 
percent of the stock of which is owned by one 
or more such veterans; and 
‘‘(ii) is included in the database described 
in section 8127(f) of title 38, United States 
Code.’’; and 
(2) by adding at the end the following: 
‘‘(6) TREATMENT
OF
BUSINESSES
AFTER 
DEATH OF VETERAN-OWNER.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (C), if the death of a service-disabled vet-
eran causes a small business concern to be less 
than 51 percent owned by one or more such 
veterans, the surviving spouse of such veteran 
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who acquires ownership rights in such small 
business concern shall, for the period described 
in subparagraph (B), be treated as if the sur-
viving spouse were that veteran for the purpose 
of maintaining the status of the small business 
concern as a small business concern owned and 
controlled by service-disabled veterans. 
‘‘(B) PERIOD DESCRIBED.—The period re-
ferred to in subparagraph (A) is the period be-
ginning on the date on which the service-dis-
abled veteran dies and ending on the earliest of 
the following dates: 
‘‘(i) The date on which the surviving 
spouse remarries. 
‘‘(ii) The date on which the surviving 
spouse relinquishes an ownership interest 
in the small business concern. 
‘‘(iii) The date that is ten years after 
the date of the veteran’s death. 
‘‘(C) 
APPLICATION
TO
SURVIVING 
SPOUSE.—Subparagraph (A) only applies to a 
surviving spouse of a veteran with a service-con-
nected disability if— 
‘‘(i) the veteran had a service-con-
nected disability rated as 100 percent dis-
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abling or died as a result of a service-con-
nected disability; and 
‘‘(ii) prior to the death of the veteran 
and during the period in which the sur-
viving spouse seeks to qualify under this 
paragraph, the small business concern is 
included in the database described in sec-
tion 8127(f) of title 38, United States 
Code.’’. 
(b) VETERANS AFFAIRS DEFINITION
OF SMALL 
BUSINESS CONCERN CONSOLIDATED.—Section 8127 of 
title 38, United States Code, is amended— 
(1) by striking subsection (h); and 
(2) in subsection (l)(2), by striking ‘‘means’’ 
and all that follows through the period at the end 
and inserting the following: ‘‘has the meaning given 
that term under section 3(q) of the Small Business 
Act (15 U.S.C. 632(q)).’’. 
(c) SBA TO ASSUME CONTROL OF VERIFICATION OF 
OWNERSHIP AND CONTROL STATUS OF APPLICANTS FOR 
INCLUSION IN THE DATABASE OF SMALL BUSINESSES 
OWNED AND CONTROLLED BY SERVICE DISABLED VET-
ERANS AND VETERANS.—The Small Business Act (15 
U.S.C. 631 et seq.), as amended by section 815, is further 
amended by adding at the end the following new section: 
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‘‘SEC. 49. VETS FIRST PROGRAM. 
‘‘In order to increase opportunities for small business 
concerns owned and controlled by service-disabled veterans 
and small business concerns owned and controlled by vet-
erans in the Federal marketplace, not later than 180 days 
after the effective date of this section, the Administrator 
shall enter into a memorandum of understanding with the 
Secretary of Veterans Affairs that transfers control and 
administration of the program under subsections (e) 
through (g) of section 8127 of title 38, United States 
Code, to the Administrator, consistent with the following: 
‘‘(1) Not later than 270 days after completing 
the memorandum of understanding, the Adminis-
trator shall make rules to carry out the memo-
randum. If the Administrator does not make such 
rules by such date, the Administrator may not exer-
cise the authority under section 7(a)(25)(A) until 
such time as those rules are made. 
‘‘(2) The Administrator shall assume authority 
and responsibility for maintenance and operation of 
the database and for verifications under the pro-
gram. Any verifications undertaken by the Adminis-
trator shall employ fraud prevention measures at the 
time of the initial application, through detection and 
monitoring processes after initial acceptance, by in-
vestigating allegations of potential fraud, removing 
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firms that do not quality from the database, and re-
ferring cases for prosecution when appropriate. 
‘‘(3) Any appeal by a small business concern, at 
the time that verification is denied or a contract is 
awarded, of any determination under the program 
shall be heard by the Office of Hearings and Ap-
peals of the Small Business Administration. 
‘‘(4)(A) The Secretary shall, for a period of 6 
years commencing on a date agreed to in the com-
pleted memorandum, reimburse to the Administrator 
of the Small Business Administration any costs in-
curred by the Administrator for actions undertaken 
pursuant to the memorandum from fees collected by 
the Secretary of Veteran Affairs under multiple- 
award schedule contracts. The Administrator and 
the Secretary shall endeavor to ensure maximum ef-
ficiency in such actions. Any disputes between the 
Secretary and the Administrator shall be resolved by 
the Director of the Office of Management and Budg-
et. 
‘‘(B) The Secretary and the Administrator may 
extend the term of the memorandum of under-
standing, except for the reimbursement requirement 
under subparagraph (A). The Secretary and the Ad-
ministrator may in a separate memorandum of un-
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derstanding provide for an extension of such reim-
bursement. 
‘‘(5) Not later than 180 days after the date of 
enactment of this section, and every 180 days there-
after, the Secretary and the Administrator shall— 
‘‘(A) meet to discuss ways to improve col-
laboration under the memorandum to increase 
opportunities for service-disabled veteran-owned 
small businesses and veteran-owned small busi-
nesses; and 
‘‘(B) consult with congressionally chartered 
Veterans Service Organizations to discuss ways 
to increase opportunities for service-disabled 
veteran-owned small businesses and veteran- 
owned small businesses. 
‘‘(6) Not later than 180 days after the date of 
enactment of this section, and every 180 days there-
after, the Secretary and the Administrator shall re-
port to the Committee on Small Business and the 
Committee on Veterans’ Affairs of the House of 
Representatives, and the Committee on Small Busi-
ness and Entrepreneurship and the Committee on 
Veterans’ Affairs of the Senate on the progress 
made by the Secretary and the Administrator imple-
menting this section. 
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‘‘(7) In any meeting required under paragraph 
(5), the Secretary and the Administrator shall in-
clude in the discussion of ways to improve collabora-
tion under the memorandum to increase opportuni-
ties for small businesses owned and controlled by 
service-disabled veterans who are women or minori-
ties and small business concerns owned and con-
trolled by veterans who are women or minorities.’’. 
(d) MEMORANDUM
OF UNDERSTANDING.—Section 
8127(f) of title 38, United States Code, is amended by 
adding at the end the following: 
‘‘(7) Not later than 180 days after the effective date 
of this paragraph, the Secretary shall enter into a memo-
randum of understanding with the Administrator of the 
Small Business Administration consistent with section 48 
of the Small Business Act, which shall specify the manner 
in which the Secretary shall notify the Administrator as 
to whether an individual is a veteran and if that veteran 
has a service-connected disability.’’. 
SEC. 813. PLAN FOR IMPROVING DATA ON BUNDLED AND 
CONSOLIDATED CONTRACTS. 
Section 15 of the Small Business Act (15 U.S.C. 644) 
is amended by adding at the end the following new sub-
section: 
‘‘(s) DATA QUALITY IMPROVEMENT PLAN.— 
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‘‘(1) IN GENERAL.—Not later than the first day 
of fiscal year 2016, the Administrator of the Small 
Business Administration, in consultation with the 
Small Business Procurement Advisory Council, the 
Administrator for Federal Procurement Policy, and 
the Administrator of the General Services Adminis-
tration shall develop a plan to improve the quality 
of data reported on bundled and consolidated con-
tracts in the Federal procurement data system. 
‘‘(2) PLAN REQUIREMENTS.—The plan shall— 
‘‘(A) describe the roles and responsibilities 
of the Administrator of the Small Business Ad-
ministration, the Directors of the Offices of 
Small and Disadvantaged Business Utilization, 
the Small Business Procurement Advisory 
Council, the Administrator for Federal Procure-
ment Policy, the Administrator of the General 
Services Administration, the senior procurement 
executives, and Chief Acquisition Officers in im-
plementing the plan described in paragraph (1) 
and contributing to the annual report required 
by subsection (p)(4); 
‘‘(B) make necessary changes to policies 
and procedures on proper identification and 
mitigation of contract bundling and consolida-
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the Senate certification of the accuracy and com-
pleteness of data reported on bundled and consoli-
dated contracts. 
‘‘(6) GAO STUDY AND REPORT.— 
‘‘(A) STUDY.—Not later than the first day 
of fiscal year 2018, the Comptroller General of 
the United States shall initiate a study on the 
effectiveness of the plan described in this sub-
section that shall assess whether contracts were 
accurately labeled as bundled or consolidated. 
‘‘(B) CONTRACTS
EVALUATED.—For the 
purposes of conducting the study described in 
subparagraph (A), the Comptroller General of 
the United States— 
‘‘(i) shall evaluate, for work in each of 
sectors 23, 33, 54, and 56 (as defined by 
the North American Industry Classification 
System), not fewer than 100 contracts in 
each sector; 
‘‘(ii) shall evaluate only those con-
tracts— 
‘‘(I) awarded by an agency listed 
in section 901(b) of title 31, United 
States Code; and 
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‘‘(II) that have a Base and Exer-
cised Options Value, an Action Obli-
gation, or a Base and All Options 
Value exceeding $10,000,000; and 
‘‘(iii) shall not evaluate contracts that 
have used any set aside authority. 
‘‘(C) REPORT.—Not later than 12 months 
after initiating the study required by subpara-
graph (A), the Comptroller General of the 
United States shall report to the Committee on 
Small Business of the House of Representatives 
and the Committee on Small Business and En-
trepreneurship of the Senate on the results 
from such study and, if warranted, any rec-
ommendations on how to improve the quality of 
data reported on bundled and consolidated con-
tracts. 
‘‘(7) DEFINITIONS.—In this subsection the fol-
lowing definitions shall apply: 
‘‘(A) CHIEF ACQUISITION OFFICER; SEN-
IOR
PROCUREMENT
EXECUTIVE.—The terms 
‘Chief Acquisition Officer’ and ‘senior procure-
ment executive’ have the meanings given such 
terms in section 44 of this Act. 
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‘‘(B) FEDERAL PROCUREMENT DATA SYS-
TEM DEFINITIONS.—The terms ‘Base and Ex-
ercised Options Value’, ‘Action Obligation’, 
‘Base and All Options Value’, and ‘set aside au-
thority’ have the meanings given such terms by 
the Administrator for Federal Procurement Pol-
icy in the Federal procurement data system on 
October 1, 2013, or subsequent equivalent 
terms. 
‘‘(C) DEFINITION.—For purposes of this 
section, the term ‘a contract awarded as part of 
the Federal Strategic Sourcing Initiative’ shall 
mean a contract award pursuant to the process 
established 
by 
the 
Interagency 
Strategic 
Sourcing Leadership Council that was created 
by the Office of Management and Budget pur-
suant to Memorandum M–13–02 issued on De-
cember 5, 2012. 
‘‘(8) STUDY OF STRATEGIC SOURCING.— 
‘‘(A) STUDY.—Not later than the last day 
of fiscal year 2015, the Comptroller General of 
the United States shall initiate a study on the 
affect of contracts awarded as part of the Fed-
eral Strategic Sourcing Initiative on the small 
business industrial base. 
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‘‘(B) SCOPE.—For each North American 
Classification System Code assigned to a con-
tract awarded as part of the Federal Strategic 
Sourcing Initiative, the Comptroller General of 
the United States shall examine the following: 
‘‘(i) The number of small business 
concerns participating as prime contractors 
in that North American Industrial Classi-
fication System code in the federal pro-
curement marketplace prior to the award 
of a contract awarded as part of the Fed-
eral Strategic Sourcing Initiative. 
‘‘(ii) The number of small business 
concerns participating as prime contractors 
in that North American Industrial Classi-
fication System code in the federal pro-
curement marketplace after the award of a 
contract awarded as part of the Federal 
Strategic Sourcing Initiative. 
‘‘(iii) The number of small business 
concerns anticipated to be participating as 
prime contractors in that North American 
Industrial Classification System code in 
the federal procurement marketplace at the 
time that the a contract awarded as part 
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of the Federal Strategic Sourcing Initiative 
expires. 
‘‘(iv) The affect of any changes be-
tween subsection (a)(1), (a)(2), and (a)(3) 
on the health of the small business indus-
trial base, and the sustainability of any 
savings achieved by contract awarded as 
part of the Federal Strategic Sourcing Ini-
tiative. 
‘‘(C) REPORT.—Not later than 12 months 
after initiating the study required by subpara-
graph (A), the Comptroller General of the 
United States shall report to the Committee on 
Small Business of the House of Representatives 
and the Committee on Small Business and En-
trepreneurship of the Senate on the results 
from such study and, if warranted, any rec-
ommendations on how to mitigate any negative 
affects on the small business industrial base or 
the sustainability of savings.’’. 
SEC. 814. AUTHORITY TO PROVIDE EDUCATION TO SMALL 
BUSINESSES ON CERTAIN REQUIREMENTS OF 
ARMS EXPORT CONTROL ACT. 
(a) ASSISTANCE
AT SMALL BUSINESS DEVELOP-
MENT CENTERS.—Section 21(c)(1) of the Small Business 
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Act (15 U.S.C. 648(c)(1)) is amended by inserting at the 
end the following: ‘‘Applicants receiving grants under this 
section shall also assist small businesses by providing, 
where appropriate, education on the requirements applica-
ble to small businesses under the regulations issued under 
section 38 of the Arms Export Control Act (22 U.S.C. 
2778) and on compliance with those requirements.’’. 
(b) PROCUREMENT TECHNICAL ASSISTANCE.—Sec-
tion 2418 of title 10, United States Code, is amended by 
adding at the end the following new subsection: 
‘‘(c) An eligible entity assisted by the Department of 
Defense under this chapter also may furnish education on 
the requirements applicable to small businesses under the 
regulations issued under section 38 of the Arms Export 
Control Act (22 U.S.C. 2778) and on compliance with 
those requirements.’’. 
SEC. 815. PROHIBITION ON REVERSE AUCTIONS FOR COV-
ERED CONTRACTS. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that, when used appropriately, reverse auctions may 
improve the Federal Government’s procurement of com-
mercially available commodities by increasing competition, 
reducing prices, and improving opportunities for small 
businesses. 
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(b) USE OF REVERSE AUCTIONS.—The Small Busi-
ness Act (15 U.S.C. 631 et seq.) is amended— 
(1) by redesignating section 47 as section 48; 
and 
(2) by inserting after section 46 the following: 
‘‘SEC. 47. REVERSE AUCTIONS PROHIBITED FOR COVERED 
CONTRACTS. 
‘‘(a) IN GENERAL.—In the case of a covered contract 
described in subsection (c), reverse auction methods may 
not be used— 
‘‘(1) if the covered contract is suitable for 
award to a small business concern; or 
‘‘(2) if the award is to be made under— 
‘‘(A) section 8(a); 
‘‘(B) section 8(m); 
‘‘(C) section 15(a); 
‘‘(D) section 15(j); 
‘‘(E) section 31; 
‘‘(F) section 36; or 
‘‘(G) section 8127 of title 38, United 
States Code. 
‘‘(b) LIMITATIONS ON USING REVERSE AUCTIONS.— 
‘‘(1) NUMBER
OF
OFFERS; 
REVISIONS
TO 
BIDS.—A Federal agency may not award a covered 
contract using a reverse auction method if only one 
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offer is received or if offerors do not have the ability 
to submit revised bids throughout the course of the 
auction. 
‘‘(2) OTHER
PROCUREMENT
AUTHORITY.—A 
Federal agency may not award a covered contract 
under a procurement provision other than those pro-
visions described in subsection (a)(2) if the justifica-
tion for using such procurement provision is to use 
reverse auction methods. 
‘‘(c) DEFINITIONS.—In this section the following 
definitions apply: 
‘‘(1) COVERED CONTRACT.—The term ‘covered 
contract’ means a contract— 
‘‘(A) for services, including design and 
construction services; and 
‘‘(B) for goods in which the technical 
qualifications of the offeror constitute part of 
the basis of award. 
‘‘(2) DESIGN AND CONSTRUCTION SERVICES.— 
The term ‘design and construction services’ means— 
‘‘(A) site planning and landscape design; 
‘‘(B) architectural and interior design; 
‘‘(C) engineering system design; 
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‘‘(D) performance of construction work for 
facility, infrastructure, and environmental res-
toration projects; 
‘‘(E) delivery and supply of construction 
materials to construction sites; 
‘‘(F) construction, alteration, or repair, in-
cluding painting and decorating, of public build-
ings and public works; and 
‘‘(G) architectural and engineering services 
as defined in section 1102 of title 40, United 
States Code. 
‘‘(3) REVERSE
AUCTION.—The term ‘reverse 
auction’ means, with respect to procurement by an 
agency, a real-time auction conducted through an 
electronic medium between a group of offerors who 
compete against each other by submitting offers for 
a contract or task order with the ability to submit 
revised offers throughout the course of the auction.’’. 
(c) CONTRACTS AWARDED BY SECRETARY OF VET-
ERANS AFFAIRS.—Section 8127(j) of title 38, United 
States Code, is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(3) The provisions of section 47(a) of the Small 
Business Act (15 U.S.C. 631 et seq.) (relating to the pro-
hibition on using reverse auction methods to award a con-
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tract) shall apply to a contract awarded under this sec-
tion.’’. 
SEC. 816. IMPROVING FEDERAL SURETY BONDS. 
(a) SURETY BOND REQUIREMENTS.—Chapter 93 of 
subtitle VI of title 31, United States Code, is amended— 
(1) by adding at the end the following: 
‘‘SEC. 9310. INDIVIDUAL SURETIES. 
‘‘If another applicable law or regulation permits the 
acceptance of a bond from a surety that is not subject 
to sections 9305 and 9306 and is based on a pledge of 
assets by the surety, the assets pledged by such surety 
shall— 
‘‘(1) consist of eligible obligations described 
under section 9303(a); and 
‘‘(2) be submitted to the official of the Govern-
ment required to approve or accept the bond, who 
shall deposit the assets with a depository described 
under section 9303(b).’’; and 
(2) in the table of contents for such chapter, by 
adding at the end the following: 
‘‘9310. Individual sureties’’. 
(b) SBA SURETY
BOND
GUARANTEE.—Section 
411(c)(1) of the Small Business Investment Act of 1958 
(15 U.S.C. 694b(c)(1)) is amended by striking ‘‘70’’ and 
inserting ‘‘90’’. 
(c) GAO STUDY.— 
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(1) STUDY.—The Comptroller General of the 
United States shall carry out a study on the fol-
lowing: 
(A) All instances during the 10-year period 
prior to the date of enactment of the Act in 
which a surety bond proposed or issued by a 
surety in connection with a Federal project 
was— 
(i) rejected by a Federal contracting 
officer; or 
(ii) accepted by a Federal contracting 
officer, but was later found to have been 
backed by insufficient collateral or to be 
otherwise deficient or with respect to which 
the surety did not perform. 
(B) The consequences to the Federal Gov-
ernment, subcontractors, and suppliers of the 
instances described under paragraph (1). 
(C) The percentages of all Federal con-
tracts that were awarded to new startup busi-
nesses (including new startup businesses that 
are small disadvantaged businesses or disadvan-
taged business enterprises), small disadvan-
taged businesses, and disadvantaged business 
enterprises as prime contractors in the 2-year 
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period prior to and the 2-year period following 
the date of enactment of this Act, and an as-
sessment of the impact of this Act and the 
amendments made by this Act upon such per-
centages. 
(2) REPORT.—Not later than the end of the 3- 
year period beginning on the date of the enactment 
of this Act, the Comptroller General shall issue a re-
port to the Committee on the Judiciary of the House 
of Representatives and the Committee on Homeland 
Security and Government Affairs of the Senate con-
taining all findings and determinations made in car-
rying out the study required under subsection (a). 
(3) DEFINITIONS.—For purposes of this sec-
tion: 
(A) DISADVANTAGED
BUSINESS
ENTER-
PRISE.—The term ‘‘disadvantaged business en-
terprise’’ has the meaning given that term 
under section 26.5 of title 49, Code of Federal 
Regulations. 
(B) NEW STARTUP BUSINESS.—The term 
‘‘new startup business’’ means a business that 
was formed in the 2-year period ending on the 
date on which the business bids on a Federal 
contract that requires giving a surety bond. 
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(C) SMALL DISADVANTAGED BUSINESS.— 
The term ‘‘small disadvantaged business’’ has 
the meaning given that term under section 
124.1002(b) of title 13, Code of Federal Regu-
lations. 
SEC. 817. PUBLICATION OF REQUIRED JUSTIFICATION 
THAT CONSOLIDATION OF CONTRACT RE-
QUIREMENTS. 
Section 44(c)(2)(A) of the Small Business Act (15 
U.S.C. 657q(c)(2)(A)) is amended by adding at the end 
the following: ‘‘This justification shall be published prior 
to the issuance of a solicitation.’’. 
SEC. 818. SMALL BUSINESS PRIME AND SUBCONTRACT 
PARTICIPATION GOALS RAISED; ACCOUNT-
ING OF SUBCONTRACTORS. 
(a) 
PRIME
CONTRACTING
GOALS.—Section 
15(g)(1)(A) of the Small Business Act (15 U.S.C. 
644(g)(1)(A)) is amended— 
(1) in clause (i), by striking ‘‘23 percent’’ and 
inserting ‘‘25 percent’’; and 
(2) by adding at the end the following new 
clause: 
‘‘(vi) The Governmentwide goal for 
participation by small business concerns in 
subcontract awards shall be established at 
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not less than 40 percent of the total value 
of all subcontract dollars awarded pursu-
ant to section 8(d) of this Act for each fis-
cal year.’’. 
(b) DELAYED EFFECTIVE DATE.—The amendment 
made by subsection (a)(2) of this section shall take effect 
only beginning on the date on which the Administrator 
of the Small Business Administration has promulgated 
any regulations necessary, and the Federal Acquisition 
Regulation has been revised, to implement section 1614 
of the National Defense Authorization Act for Fiscal Year 
2014 and the amendments made by such section. 
(c) REPEAL OF CERTAIN PROVISION PERTAINING TO 
ACCOUNTING
OF SUBCONTRACTORS.—Section 15(g) of 
the Small Business Act (15 U.S.C. 644(g)) is amended 
by striking paragraph (3). 
SEC. 819. SMALL BUSINESS CYBER EDUCATION. 
The Secretary of Defense, in consultation with the 
Administrator of the Small Business Administration, may 
make every reasonable effort to promote an outreach and 
education program to assist small businesses (as defined 
in section 3 of the Small Business Act (15 U.S.C. 632)) 
contracted by the Department of Defense to assist such 
businesses to— 
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(1) understand the gravity and scope of cyber 
threats; 
(2) develop a plan to protect intellectual prop-
erty; and 
(3) develop a plan to protect the networks of 
such businesses. 
Subtitle C—Other Matters 
SEC. 821. CERTIFICATION OF EFFECTIVENESS FOR AIR 
FORCE INFORMATION TECHNOLOGY CON-
TRACTING. 
(a) REVIEW REQUIRED.—The Chairman of the Joint 
Chiefs of Staff shall conduct a review of the Air Force 
Network-Centric Solutions II (NETCENTS II) contract 
to ensure that it can effectively meet the requirements of 
the joint force when providing time- and task-critical in-
formation technology resources for hardware, applications, 
and services related to the warfighting mission area. The 
review shall examine— 
(1) 
the 
effectiveness 
of 
contracting 
for 
warfighting mission areas, such as nuclear command 
and control, space situational awareness, or inte-
grated threat warning, with effectiveness determined 
by the ability to consistently access domain experts 
and respond to emerging requirements in a timely 
manner; and 
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(2) the efficiency of contracting for the 
warfighting mission area, with efficiency measured 
by the amount of time to get new task orders on 
contract. 
(b) CERTIFICATION.—Based on the findings of the 
review required by subsection (a), the Chairman of the 
Joint Chiefs of Staff shall provide a certification to the 
Committees on Armed Services of the Senate and the 
House 
of 
Representatives 
that 
the 
Air 
Force’s 
NETCENTS II contract is effective in delivering informa-
tion technology capabilities for the joint force. In pro-
viding this certification, the Chairman of the Joint Chiefs 
of Staff shall also provide the complete findings of the re-
view required by subsection (a). 
SEC. 822. AIRLIFT SERVICE. 
(a) IN GENERAL.—Chapter 157 of title 10, United 
States Code, is amended by inserting after section 2631a 
the following new section: 
‘‘§ 2631b. Airlift service 
‘‘(a) REQUIREMENT.—Except as provided in sub-
sections (b) and (c), the transportation of passengers or 
property by CRAF-eligible aircraft obtained by the Sec-
retary of Defense or the Secretary of a military depart-
ment through a contract for airlift service may only be 
provided by a covered air carrier. 
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‘‘(b) APPLICABILITY.—The requirement under sub-
section (a) applies with respect to transportation that is— 
‘‘(1) interstate in the United States; 
‘‘(2) between a place in the United States and 
a place outside the United States; or 
‘‘(3) between two places outside the United 
States. 
‘‘(c) WAIVER AUTHORITY.—The Secretary of De-
fense may waive the requirement under subsection (a) if 
the Secretary determines that— 
‘‘(1) no covered air carrier is capable of pro-
viding, and willing to provide, the relevant transpor-
tation; or 
‘‘(2) use of a covered air carrier is otherwise 
unreasonable. 
‘‘(d) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) COVERED AIR CARRIER.—The term ‘cov-
ered air carrier’ means an air carrier that— 
‘‘(A) has aircraft in the Civil Reserve Air 
Fleet or offers to place CRAF-eligible aircraft 
in that fleet; and 
‘‘(B) holds a certificate issued under sec-
tion 41102 of title 49. 
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‘‘(2) CRAF-ELIGIBLE
AIRCRAFT.—The term 
‘CRAF-eligible aircraft’ means an aircraft of a type 
that the Secretary of Defense has determined to be 
eligible to participate in the Civil Reserve Air 
Fleet.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 2631a the following new 
item: 
‘‘2631b. Airlift service.’’. 
SEC. 823. COMPLIANCE WITH REQUIREMENTS FOR SENIOR 
DEPARTMENT OF DEFENSE OFFICIALS SEEK-
ING EMPLOYMENT WITH DEFENSE CONTRAC-
TORS. 
Section 847 of the National Defense Authorization 
Act for Fiscal Year 2008 (Public Law 110–181; 10 U.S.C. 
1701 note) is amended— 
(1) by redesignating subsection (d) as sub-
section (e); and 
(2) by inserting after subsection (c) the fol-
lowing new subsection (d): 
‘‘(d) COMPLIANCE.— 
‘‘(1) OFFICIAL.—The Secretary of Defense 
shall designate an official of the Department of De-
fense to ensure the compliance of this section. 
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‘‘(2) REPORT.—Not later than 180 days after 
the date of the enactment of this subsection, such 
designated official shall submit to the congressional 
defense committees a report on the compliance of 
this section.’’. 
SEC. 824. PROCUREMENT OF PERSONAL PROTECTIVE 
EQUIPMENT. 
(a) REQUIREMENT.—The Secretary of Defense shall 
use best value tradeoff source selection methods to the 
maximum extent practicable when procuring an item of 
personal protective equipment or critical safety items. 
(b) 
PERSONAL
PROTECTIVE
EQUIPMENT
DE-
FINED.—In this section, the term ‘‘personal protective 
equipment’’ includes the following: 
(1) Body armor components. 
(2) Combat helmets. 
(3) Combat protective eyewear. 
(4) Environmental and fire resistant clothing. 
(5) Footwear. 
(6) Organizational clothing and individual 
equipment. 
(7) Other items as determined appropriate by 
the Secretary. 
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SEC. 825. PROHIBITION ON FUNDS FOR CONTRACTS VIO-
LATING EXECUTIVE ORDER NO. 11246. 
None of the funds authorized to be appropriated by 
this Act or otherwise made available to the Department 
of Defense may be used to enter into any contract with 
any entity if such contract would violate Executive Order 
No. 11246 (relating to nonretaliation for disclosure of 
compensation information), as amended by the announce-
ment of the President on April 8, 2014. 
SEC. 826. REQUIREMENT FOR POLICIES AND STANDARD 
CHECKLIST IN PROCUREMENT OF SERVICES. 
(a) REQUIREMENT.—Section 2330a of title 10, 
United States Code, is amended— 
(1) by redesignating subsections (g), (h), (i), 
and (j) as subsections (h), (i), (j), and (k), respec-
tively; and 
(2) by inserting after subsection (f) the fol-
lowing new subsection (g): 
‘‘(g) REQUEST
FOR
SERVICE
CONTRACT
AP-
PROVAL.—The Under Secretary of Defense for Personnel 
and Readiness shall— 
‘‘(1) issue policies implementing a standard 
checklist to be completed before the issuance of a so-
licitation for any new contract for services or exer-
cising an option under an existing contract for serv-
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ices, including services provided under a contract for 
goods; and 
‘‘(2) ensure such policies and checklist are in-
corporated into the Department of Defense Supple-
ment to the Federal Acquisition Regulation.’’. 
(b) 
ARMY
MODEL.—In 
implementing 
section 
2330a(g) of title 10, United States Code, as added by sub-
section (a), the Under Secretary of Defense for Personnel 
and Readiness shall model, to the maximum extent prac-
ticable, its policies and checklist on the policies and check-
list relating to services contract approval established and 
in use by the Department of the Army (as set forth in 
the request for services contract approval form updated 
as of August 2012, or any successor form). 
(c) DEADLINE.—The policies required under such 
section 2230a(g) shall be issued within 120 days after the 
date of the enactment of this Act. 
(d) REPORT.—The Comptroller General of the 
United States shall submit to the congressional defense 
committees a report on the implementation of the stand-
ard checklist required under such section 2330a(g) for 
each of fiscal years 2015, 2016, and 2017 within 120 days 
after the end of each such fiscal year. 
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SEC. 827. SOLE SOURCE CONTRACTS FOR SMALL BUSINESS 
CONCERNS OWNED AND CONTROLLED BY 
WOMEN. 
(a) IN GENERAL.—Subsection (m) of section 8 of the 
Small Business Act (15 U.S.C. 637(m)) is amended by 
adding at the end the following new paragraphs: 
‘‘(7) AUTHORITY
FOR
SOLE
SOURCE
CON-
TRACTS
FOR
ECONOMICALLY
DISADVANTAGED 
SMALL
BUSINESS
CONCERNS
OWNED
AND
CON-
TROLLED
BY
WOMEN.—A contracting officer may 
award a sole source contract under this subsection 
to any small business concern owned and controlled 
by women meeting the requirements of paragraph 
(2)(A) if— 
‘‘(A) such concern is determined to be a 
responsible contractor with respect to perform-
ance of the contract opportunity; 
‘‘(B) the anticipated award price of the 
contract (including options) will not exceed— 
‘‘(i) $6,500,000, in the case of a con-
tract opportunity assigned a standard in-
dustrial code for manufacturing; or 
‘‘(ii) $4,000,000, in the case of any 
other contract opportunity; and 
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‘‘(C) in the estimation of the contracting 
officer, the contract award can be made at a 
fair and reasonable price. 
‘‘(8) AUTHORITY
FOR
SOLE
SOURCE
CON-
TRACTS
FOR
SMALL
BUSINESS
CONCERNS
OWNED 
AND CONTROLLED BY WOMEN IN SUBSTANTIALLY 
UNDERREPRESENTED
INDUSTRIES.—A contracting 
officer may award a sole source contract under this 
subsection to any small business concern owned and 
controlled by women that meets the requirements of 
paragraph (2)(E) and is in an industry in which 
small business concerns owned and controlled by 
women are substantially underrepresented (as deter-
mined by the Administrator) if— 
‘‘(A) such concern is determined to be a 
responsible contractor with respect to perform-
ance of the contract opportunity; 
‘‘(B) the anticipated award price of the 
contract (including options) will not exceed— 
‘‘(i) $6,500,000, in the case of a con-
tract opportunity assigned a standard in-
dustrial code for manufacturing; or 
‘‘(ii) $4,000,000, in the case of any 
other contract opportunity; and 
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‘‘(C) in the estimation of the contracting 
officer, the contract award can be made at a 
fair and reasonable price.’’. 
(b) REPORTING ON GOALS FOR SOLE SOURCE CON-
TRACTS FOR SMALL BUSINESS CONCERNS OWNED AND 
CONTROLLED BY WOMEN.—Clause (viii) of subsection 
15(h)(2)(E) of such Act is amended— 
(1) in subclause (IV), by striking ‘‘and’’ after 
the semicolon; 
(2) by redesignating subclause (V) as subclause 
(VIII); and 
(3) by inserting after subclause (IV) the fol-
lowing new subclauses: 
‘‘(V) through sole source con-
tracts awarded using the authority 
under subsection 8(m)(7); 
‘‘(VI) through sole source con-
tracts awarded using the authority 
under section 8(m)(8); 
‘‘(VII) by industry for contracts 
described in subclause (III), (IV), (V), 
or (VI); and’’. 
(c) DEADLINE
FOR REPORT
ON SUBSTANTIALLY 
UNDERREPRESENTED
INDUSTRIES
ACCELERATED.— 
Paragraph (2) of section 29(o) of such Act is amended 
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by striking ‘‘5 years after the date of enactment’’ and in-
serting ‘‘2 years after the date of enactment’’. 
SEC. 828. DEBARMENT REQUIRED OF PERSONS CONVICTED 
OF FRAUDULENT USE OF ‘‘MADE IN AMER-
ICA’’ LABELS. 
(a) DEBARMENT REQUIRED.—Subsection (a) of sec-
tion 2410f of title 10, United States Code, is amended 
by striking ‘‘the Secretary shall’’ and all that follows 
through the period and inserting ‘‘the person shall be 
debarred from contracting with the Department of De-
fense unless the Secretary waives the debarment under 
subsection (b).’’. 
(b) WAIVER AUTHORITY
AND NOTIFICATION RE-
QUIREMENT.—Section 2410f of such title is further 
amended— 
(1) by redesignating subsection (b) as sub-
section (d); and 
(2) by inserting after subsection (a) the fol-
lowing new subsections: 
‘‘(b) WAIVER FOR NATIONAL SECURITY.—The Sec-
retary may waive a debarment required by subsection (a) 
if the Secretary determines that the exercise of such a 
waiver would be in the national security interests of the 
United States. 
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‘‘(c) NOTIFICATION.—The Secretary shall notify the 
congressional defense committees annually, not later than 
March 1 of each year, of any exercise of the waiver author-
ity under subsection (b).’’. 
(c) TECHNICAL AMENDMENTS.—Section 2410f of 
such title is further amended— 
(1) in subsection (a), by inserting ‘‘ ‘DEBAR-
MENT REQUIRED.—’’ after ‘‘(a)’’; and 
(2) in subsection (d), as redesignated by sub-
section (b), by inserting ‘‘DEFINITION.—’’ before 
‘‘In this section’’. 
SEC. 829. INNOVATIVE APPROACHES TO TECHNOLOGY 
TRANSFER. 
Section 9(jj) of the Small Business Act (15 U.S.C. 
638(jj)) is amended to read as follows: 
‘‘(jj) INNOVATIVE APPROACHES
TO TECHNOLOGY 
TRANSFER.— 
‘‘(1) GRANT PROGRAM.— 
‘‘(A) IN GENERAL.—Each Federal agency 
required by subsection (n) to establish an 
STTR program shall carry out a grant program 
to support innovative approaches to technology 
transfer at institutions of higher education (as 
defined in section 101(a) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1001(a)), non-
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profit research institutions and Federal labora-
tories in order to improve or accelerate the 
commercialization of federally funded research 
and technology by small business concerns, in-
cluding new businesses. 
‘‘(B) 
AWARDING
OF
GRANTS
AND 
AWARDS.— 
‘‘(i) IN
GENERAL.—Each Federal 
agency required by subparagraph (A) to 
participate in this program, shall award, 
through a competitive, merit-based process, 
grants, in the amounts listed in subpara-
graph (C) to institutions of higher edu-
cation, technology transfer organizations 
that facilitate the commercialization of 
technologies developed by one or more such 
institutions of higher education, Federal 
laboratories, other public and private non-
profit entities, and consortia thereof, for 
initiatives that help identify high-quality, 
commercially viable federally funded re-
search and technologies and to facilitate 
and accelerate their transfer into the mar-
ketplace. 
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nology transfer licenses to maximize 
commercialization potential; and 
‘‘(VI) conducting outreach to 
small business concerns as potential 
licensees of federally funded research 
and technology, and providing tech-
nology transfer services to such small 
business concerns. 
‘‘(iii) SELECTION
PROCESS
AND
AP-
PLICATIONS.—Qualifying institutions seek-
ing a grant under this subsection shall 
submit an application to a Federal agency 
required by subparagraph (A) to partici-
pate in this program at such time, in such 
manner, and containing such information 
as the agency may require. The application 
shall include, at a minimum— 
‘‘(I) a description of innovative 
approaches to technology transfer, 
technology development, and commer-
cial readiness that have the potential 
to increase or accelerate technology 
transfer outcomes and can be adopted 
by other qualifying institutions, or a 
demonstration of proven technology 
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transfer and commercialization strate-
gies, or a plan to implement proven 
technology 
transfer 
and 
commer-
cialization strategies, that can achieve 
greater commercialization of federally 
funded research and technologies with 
program funding; 
‘‘(II) a description of how the 
qualifying institution will contribute 
to local and regional economic devel-
opment efforts; and 
‘‘(III) a plan for sustainability 
beyond the duration of the funding 
award. 
‘‘(iv) 
PROGRAM
OVERSIGHT 
BOARDS.— 
‘‘(I) IN
GENERAL.—Successful 
proposals shall include a plan to as-
semble a Program Oversight Board, 
the members of which shall have tech-
nical, scientific, or business expertise 
three-fifths of whom shall be drawn 
from industry, start-up companies, 
venture capital or other equity invest-
ment mechanism, technical enter-
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prises, financial institutions, and busi-
ness development organizations with a 
track record of success in commer-
cializing innovations. Proposals may 
use oversight boards in existence on 
the date of the enactment of the How-
ard P. ‘Buck’ McKeon National De-
fense Authorization Act for Fiscal 
Year 2015 that meet the requirements 
of this subclause. 
‘‘(II) 
PROGRAM
OVERSIGHT 
BOARDS
RESPONSIBILITIES.—Pro-
gram Oversight Boards shall— 
‘‘(aa) establish award pro-
grams for individual projects; 
‘‘(bb) provide rigorous eval-
uation of project applications; 
‘‘(cc) 
determine 
which 
projects should receive awards, in 
accordance with guidelines estab-
lished 
under 
subparagraph 
(C)(ii); 
‘‘(dd) establish milestones 
and associated award amounts 
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for projects that reach mile-
stones; 
‘‘(ee) 
determine 
whether 
awarded projects are reaching 
milestones; and 
‘‘(ff) develop a process to re-
allocate 
outstanding 
award 
amounts from projects that are 
not reaching milestones to other 
projects with more potential. 
‘‘(III) 
CONFLICT
OF
INTER-
EST.—Program 
Oversight 
Boards 
shall be composed of members who do 
not have a conflict of interest. Boards 
shall adopt conflict of interest policies 
to ensure relevant relationships are 
disclosed and proper recusal proce-
dures are in place. 
‘‘(C) GRANT AND AWARD AMOUNTS.— 
‘‘(i) GRANT AMOUNTS.—Each Federal 
agency required by subparagraph (A) to 
carry out a grant program may make 
grants up to $3,000,000 to a qualifying in-
stitution. 
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‘‘(ii) AWARD AMOUNTS.—Each quali-
fying institution that receives a grant 
under subparagraph (B) shall provide 
awards for individual projects of not more 
than $100,000, to be provided in phased 
amounts, based on reaching the milestones 
established by the qualifying institution’s 
Program Oversight Board. 
‘‘(D) AUTHORIZED
EXPENDITURES
FOR 
INNOVATIVE
APPROACHES
TO
TECHNOLOGY 
TRANSFER GRANT PROGRAM.— 
‘‘(i) PERCENTAGE.—The percentage 
of the extramural budget for research, or 
research and development, each Federal 
agency required by subsection (n) to estab-
lish an STTR program shall expend on the 
Innovative 
Approaches 
to 
Technology 
Transfer Grant Program shall be— 
‘‘(I) 0.05 percent for each of fis-
cal years 2014 and 2015; and 
‘‘(II) 0.1 percent for each of fis-
cal years 2016 and 2017. 
‘‘(ii) 
TREATMENT
OF
EXPENDI-
TURES.—Any portion of the extramural 
budget expended by a Federal agency on 
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the Innovative Approaches to Technology 
Transfer Grant Program shall apply to-
wards the agency’s expenditure require-
ments under subsection (n). 
‘‘(2) PROGRAM
EVALUATION
AND
DATA
COL-
LECTION AND DISSEMINATION.— 
‘‘(A) EVALUATION PLAN AND DATA COL-
LECTION.—Each Federal agency required by 
paragraph (1)(A) to establish an Innovative Ap-
proaches to Technology Transfer Grant Pro-
gram shall develop a program evaluation plan 
and collect annually such information from 
grantees as is necessary to assess the Program. 
Program evaluation plans shall require the col-
lection of data aimed at identifying outcomes 
resulting from the transfer of technology with 
assistance from the Innovative Approaches to 
Technology Transfer Grant Program. Such 
data may include— 
‘‘(i) specific follow-on funding identi-
fied or obtained, including follow-on fund-
ing sources, such as Federal sources or 
private sources, within 3 years of the com-
pletion of the award; 
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‘‘(ii) number of projects which, within 
5 years of receiving an award under para-
graph (1), result in a license to a start-up 
company or an established company with 
sufficient resources for effective commer-
cialization; 
‘‘(iii) the number of invention disclo-
sures received, United States patent appli-
cations filed, and United States patents 
issued within 5 years of the award; 
‘‘(iv) number of projects receiving a 
grant under paragraph (1) that secure 
Phase I or Phase II SBIR or STTR 
awards; 
‘‘(v) available information on revenue, 
sales or other measures of products that 
have been commercialized as a result of 
projects awarded under paragraph (1), 
within 5 years of the award; 
‘‘(vi) number and location of jobs cre-
ated resulting from projects awarded under 
paragraph (1); and 
‘‘(vii) other data as deemed appro-
priate by a Federal agency required by this 
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subparagraph to develop a program evalua-
tion plan. 
‘‘(B) 
EVALUATIVE
REPORT
TO
CON-
GRESS.—The head of each Federal agency that 
participates in the Innovative Approaches to 
Technology Transfer Grant Program shall sub-
mit to the Committee on Science, Space, and 
Technology and the Committee on Small Busi-
ness of the House of Representatives and the 
Committee on Small Business and Entrepre-
neurship of the Senate an evaluative report re-
garding the activities of the program. The re-
port shall include— 
‘‘(i) a detailed description of the im-
plementation of the program; 
‘‘(ii) a detailed description of the 
grantee selection process; 
‘‘(iii) an accounting of the funds used 
in the program; and 
‘‘(iv) a summary of the data collected 
under subparagraph (A). 
‘‘(C) DATA DISSEMINATION.—For the pur-
poses of program transparency and dissemina-
tion of best practices, the Administrator shall 
include on the public database under subsection 
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TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—Department of Defense 
Management 
SEC. 901. REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY 
AND MARINE CORPS. 
(a) REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY AND MARINE 
CORPS.— 
(1) REDESIGNATION
OF
MILITARY
DEPART-
MENT.—The military department designated as the 
Department of the Navy is redesignated as the De-
partment of the Navy and Marine Corps. 
(2) 
REDESIGNATION
OF
SECRETARY
AND 
OTHER STATUTORY OFFICES.— 
(A) SECRETARY.—The position of the Sec-
retary of the Navy is redesignated as the Sec-
retary of the Navy and Marine Corps. 
(B) OTHER
STATUTORY
OFFICES.—The 
positions of the Under Secretary of the Navy, 
the four Assistant Secretaries of the Navy, and 
the General Counsel of the Department of the 
Navy are redesignated as the Under Secretary 
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of the Navy and Marine Corps, the Assistant 
Secretaries of the Navy and Marine Corps, and 
the General Counsel of the Department of the 
Navy and Marine Corps, respectively. 
(b) CONFORMING
AMENDMENTS
TO
TITLE
10, 
UNITED STATES CODE.— 
(1) 
DEFINITION
OF
‘‘MILITARY
DEPART-
MENT’’.—Paragraph (8) of section 101(a) of title 
10, United States Code, is amended to read as fol-
lows: 
‘‘(8) The term ‘military department’ means the 
Department of the Army, the Department of the 
Navy and Marine Corps, and the Department of the 
Air Force.’’. 
(2) ORGANIZATION OF DEPARTMENT.—The text 
of section 5011 of such title is amended to read as 
follows: ‘‘The Department of the Navy and Marine 
Corps is separately organized under the Secretary of 
the Navy and Marine Corps.’’. 
(3) 
POSITION
OF
SECRETARY.—Section 
5013(a)(1) of such title is amended by striking 
‘‘There is a Secretary of the Navy’’ and inserting 
‘‘There is a Secretary of the Navy and Marine 
Corps’’. 
(4) CHAPTER HEADINGS.— 
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(A) The heading of chapter 503 of such 
title is amended to read as follows: 
‘‘CHAPTER 503—DEPARTMENT OF THE 
NAVY AND MARINE CORPS’’. 
(B) The heading of chapter 507 of such 
title is amended to read as follows: 
‘‘CHAPTER 507—COMPOSITION OF THE DE-
PARTMENT OF THE NAVY AND MARINE 
CORPS’’. 
(5) OTHER AMENDMENTS.— 
(A) Title 10, United States Code, is 
amended by striking ‘‘Department of the Navy’’ 
and ‘‘Secretary of the Navy’’ each place they 
appear other than as specified in paragraphs 
(1), (2), (3), and (4) (including in section head-
ings, subsection captions, tables of chapters, 
and tables of sections) and inserting ‘‘Depart-
ment of the Navy and Marine Corps’’ and ‘‘Sec-
retary of the Navy and Marine Corps’’, respec-
tively, in each case with the matter inserted to 
be in the same typeface and typestyle as the 
matter stricken. 
(B)(i) 
Sections 
5013(f), 
5014(b)(2), 
5016(a), 5017(2), 5032(a), and 5042(a) of 
such title are amended by striking ‘‘Assistant 
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Secretaries of the Navy’’ and inserting ‘‘Assist-
ant Secretaries of the Navy and Marine Corps’’. 
(ii) The heading of section 5016 of such 
title, and the item relating to such section in 
the table of sections at the beginning of chapter 
503 of such title, are each amended by insert-
ing ‘‘and Marine Corps’’ after ‘‘of the Navy’’, 
with the matter inserted in each case to be in 
the same typeface and typestyle as the matter 
amended. 
(c) OTHER PROVISIONS OF LAW AND OTHER REF-
ERENCES.— 
(1) TITLE 37, UNITED STATES CODE.—Title 37, 
United States Code, is amended by striking ‘‘De-
partment of the Navy’’ and ‘‘Secretary of the Navy’’ 
each place they appear and inserting ‘‘Department 
of the Navy and Marine Corps’’ and ‘‘Secretary of 
the Navy and Marine Corps’’, respectively. 
(2) OTHER
REFERENCES.—Any reference in 
any law other than in title 10 or title 37, United 
States Code, or in any regulation, document, record, 
or other paper of the United States, to the Depart-
ment of the Navy shall be considered to be a ref-
erence to the Department of the Navy and Marine 
Corps. Any such reference to an office specified in 
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subsection (a)(2) shall be considered to be a ref-
erence to that office as redesignated by that section. 
(d) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the first 
day of the first month beginning more than 60 days after 
the date of the enactment of this Act. 
SEC. 902. ADDITIONAL RESPONSIBILITY FOR DIRECTOR OF 
OPERATIONAL TEST AND EVALUATION. 
(a) ADDITIONAL RESPONSIBILITY.—Section 139 of 
title 10, United States Code, is amended— 
(1) by redesignating subsections (c), (d), (e), 
(f), (g), (h), (i), (j), and (k) as subsections (d), (e), 
(f), (g), (h), (i), (j), (k), and (l), respectively; and 
(2) by inserting after subsection (b) the fol-
lowing new subsection (c): 
‘‘(c) The Director shall consider the potential for in-
creases in program cost estimates or delays in schedule 
estimates in the implementation of policies, procedures, 
and activities related to operational test and evaluation 
and shall take appropriate action to ensure that oper-
ational test and evaluation activities do not unnecessarily 
increase program costs or impede program schedules.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
196(c)(1)(A)(ii) of such title is amended by striking ‘‘sec-
tion 139(i)’’ and inserting ‘‘section 139(k)’’. 
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SEC. 903. ASSISTANT SECRETARY OF DEFENSE FOR INSTAL-
LATIONS AND ENVIRONMENT. 
(a) ESTABLISHMENT OF POSITION.—Section 138(b) 
of title 10, United States Code, is amended by adding at 
the end the following new paragraph: 
‘‘(11) One of the Assistant Secretaries is the Assist-
ant Secretary of Defense for Installations and Environ-
ment. In addition to any duties and powers prescribed 
under paragraph (1), the Assistant Secretary of Defense 
for Installations and Environment shall have the duties 
specified in section 138e of this title.’’. 
(b) DUTIES.— 
(1) IN GENERAL.—Chapter 4 of such title is 
amended by inserting after section 138d the fol-
lowing new section: 
‘‘§ 138e. Assistant Secretary of Defense for Installa-
tions and Environment 
‘‘(a) The Assistant Secretary of Defense for Installa-
tions and Environment shall— 
‘‘(1) provide leadership and facilitate commu-
nication regarding, and conduct oversight to manage 
and be accountable for, military construction and en-
vironmental programs within the Department of De-
fense and the Army, Navy, Air Force, and Marine 
Corps; 
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‘‘(2) coordinate and oversee planning and pro-
gramming activities of the Department of Defense 
and the Army, Navy, Air Force, and Marine Corps; 
‘‘(3) establish policies and guidance, in coordi-
nation with the Army, Navy, Air Force and Marine 
Corps, regarding installation assets and services that 
are required to support defense missions. 
‘‘(b) The Assistant Secretary may communicate views 
on issues within the responsibility of the Assistant Sec-
retary directly to the Secretary of Defense and the Deputy 
Secretary of Defense without obtaining the approval or 
concurrence of any other official within the Department 
of Defense.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 4 of such title is amended by in-
serting after the item relating to section 138c the 
following new item: 
‘‘138e. Assistant Secretary of Defense for Installations and Environment.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) IN GENERAL.— 
(A) Section 2701(k)(3) of title 10, United 
States Code, is amended by striking ‘‘Deputy 
Under Secretary of Defense for Installations 
and Environment’’ and inserting ‘‘Assistant 
Secretary of Defense for Installations and Envi-
ronment’’. 
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(B) Section 2885(a)(3) of such title is 
amended by striking ‘‘Deputy Under Secretary 
of Defense (Installations and Environment)’’ 
and inserting ‘‘Assistant Secretary of Defense 
for Installations and Environment’’. 
(2) REFERENCES IN OTHER LAWS.—Any ref-
erence in any law, regulation, document, or other 
record of the United States to the Deputy Under 
Secretary of Defense for Installations and Environ-
ment shall be treated as referring to the Assistant 
Secretary of Defense for Installations and Environ-
ment. 
(d) NO ADDITIONAL FUNDS AUTHORIZED.—No ad-
ditional funds are authorized by this Act to accomplish 
the mission of the Assistant Secretary of Defense for In-
stallations and Environment. Such mission shall be carried 
out using amounts otherwise authorized or appropriated. 
(e) RESTRICTION ON PERSONNEL.—The number of 
positions for military and civilian personnel and the num-
ber of full-time equivalent positions for contractor per-
sonnel associated with the office of the Assistant Secretary 
of Defense for Installations and Environment shall not ex-
ceed the number of such positions that were associated 
with the Deputy Under Secretary of Defense for Installa-
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tions and Environment as of the date of the enactment 
of this Act. 
(f) CONSTRUCTION.—Nothing in this section or the 
amendments made by this section shall be construed as 
exempting the office of the Assistant Secretary of Defense 
for Installations and Environment from further reductions 
as part of headquarters efficiencies initiatives of the De-
partment of Defense. 
SEC. 904. REQUIREMENT FOR CONGRESSIONAL BRIEFING 
BEFORE DIVESTING OF DEFENSE FINANCE 
AND ACCOUNTING SERVICE FUNCTIONS. 
No plan may be implemented by the Secretary of De-
fense, the Secretary of a military department, the Director 
of the Defense Finance and Accounting Service, or any 
other person to transfer financial management, bill pay-
ing, or accounting services functions from the Defense Fi-
nance and Accounting Service to another entity until the 
Secretary of Defense provides the congressional defense 
committees a briefing on the plan and the Secretary cer-
tifies to such committees that the plan would reduce costs, 
increase efficiencies, maintain the timeline for auditability 
of financial statements, and maintain the roles and mis-
sions of the Defense Finance and Accounting Service. 
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SEC. 905. COMBATANT COMMAND EFFICIENCY PLAN. 
(a) PLAN REQUIRED.—The Secretary of Defense 
shall develop a plan to combine the back office functions 
of the headquarters of two or more combatant commands, 
including the subordinate component commands. 
(b) MATTERS TO BE CONSIDERED.—The plan re-
quired by subsection (a) shall include the following: 
(1) A detailed discussion of combining or other-
wise sharing in whole or in part similar back office 
functions between two or more combatant command 
headquarters located in the same country. 
(2) A detailed discussion of combining or other-
wise sharing in whole or in part similar back office 
functions of the Joint Staff and some or all combat-
ant command headquarters. 
(3) A detailed discussion of establishing a new 
organization to manage similar back office functions 
of two or more combatant command headquarters 
located in the same country. 
(4) A detailed discussion of the risks and capa-
bilities lost by implementing such consolidations and 
efficiencies. 
(5) A detailed discussion of how the efficiencies 
and consolidations in assigned personnel and re-
sources are in support of the quadrennial defense re-
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view and the strategic choices and management re-
view of the Department of Defense. 
(6) Any other arrangements that the Secretary 
considers appropriate. 
(c) REPORT REQUIRED.—Not later than 120 days 
after the date of the enactment of this Act, the Secretary 
shall submit to the congressional defense committees a re-
port containing— 
(1) a summary of the plan required by sub-
section (a); and 
(2) the potential cost savings of any arrange-
ments the Secretary considers in conducting the 
study. 
(d) DEFINITIONS.—In this section: 
(1) BACK
OFFICE
FUNCTIONS.—The term 
‘‘back office functions’’ means the administration 
and support functions of a headquarters of a com-
batant command, including human resources or 
other personnel functions, budgeting, and informa-
tion technology support. 
(2) COMBATANT COMMAND.—The term ‘‘com-
batant command’’ means a combatant command es-
tablished pursuant to section 161 or 167 of title 10, 
United States Code. 
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(e) LIMITATION.—Of the amounts authorized to be 
appropriated for fiscal year 2015 for the Department of 
Defense for operations and maintenance, defense-wide, 
Joint Chiefs of Staff, as specified in the funding table for 
section 4301, not more than 85 percent may be obligated 
or expended until the Secretary of Defense, in coordina-
tion with the Chairman of the Joint Chiefs of Staff, pro-
vides the Committee on Armed Services of the House of 
Representatives the briefing on combatant command head-
quarters personnel and resources requirements as directed 
in the Report of the Committee on Armed Services on 
H.R. 1960 of the 113th Congress (House Report 113– 
102) under title X. 
SEC. 906. REQUIREMENT FOR PLAN TO REDUCE GEO-
GRAPHIC COMBATANT COMMANDS TO FOUR 
BY FISCAL YEAR 2020. 
(a) PLAN REQUIRED.—The Secretary of Defense 
shall develop a plan for reducing the number of geographic 
combatant commands to no more than four by the end 
of fiscal year 2020. 
(b) MATTERS COVERED.—The plan required by sub-
section (a) shall include the following: 
(1) A detailed discussion of the required reduc-
tions and consolidations in assigned personnel, re-
sources, and infrastructure of the various geographic 
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combatant commands, set forth separately by fiscal 
year, to achieve the goal of no more than four such 
commands by the end of fiscal year 2020. 
(2) A detailed discussion of the changes to the 
Unified Command Plan if such reductions and con-
solidations are implemented. 
(3) A detailed discussion and recommendations 
on the feasibility, risks, and capabilities lost by im-
plementing such reductions and consolidations. 
(c) FUNCTIONAL
COMMANDS
NOT
INCLUDED.— 
Nothing in this section shall be construed as requiring the 
Department of Defense to include changes to the func-
tional combatant commands or reductions in the func-
tional combatant commands in the plan required by sub-
section (a). 
(d) USE OF PREVIOUS STUDIES AND OUTSIDE EX-
PERTS.—In developing the plan required by subsection 
(a), the Secretary may— 
(1) use and incorporate previous plans or stud-
ies of the Department of Defense; and 
(2) consult with and incorporate views of de-
fense experts from outside the Department. 
(e) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary shall submit 
to Congress a report containing the plan required by sub-
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section (a), including the feasibility and risks of such plan, 
and any recommendations to implement the plan as the 
Secretary considers appropriate. 
(f) CONSTRUCTION.—Nothing in this section shall be 
construed as requiring the Secretary to develop a binding 
plan. 
SEC. 907. OFFICE OF NET ASSESSMENT. 
(a) POLICY.—It is the policy of the United States to 
maintain an independent organization within the Depart-
ment of Defense to develop and coordinate net assess-
ments of the standing, trends, and future prospects of the 
military capabilities and potential of the United States in 
comparison with the military capabilities and potential of 
other countries or groups of countries so as to identify 
emerging or future threats or opportunities for the United 
States. 
(b) ESTABLISHMENT.— 
(1) IN GENERAL.—Chapter 4 of title 10, United 
States Code, is amended by adding at the end the 
following new section: 
‘‘SEC. 145. OFFICE OF NET ASSESSMENT. 
‘‘(a) IN GENERAL.—There is in the Office of the Sec-
retary of Defense an office known as the Office of Net 
Assessment. 
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‘‘(b) HEAD.—(1) The head of the Office of Net As-
sessment shall be appointed by the Secretary of Defense. 
The head shall be a member of the Senior Executive Serv-
ice. 
‘‘(2) The head of the Office of Net Assessment may 
communicate views on matters within the responsibility of 
the head directly to the Secretary without obtaining the 
approval or concurrence of any other official within the 
Department of Defense. 
‘‘(3) The head of the Office of Net Assessment shall 
report directly to the Secretary. 
‘‘(4) The Office is subject to the authority, direction, 
and control of the Secretary. The Secretary may not dele-
gate the responsibility to exercise such authority, direc-
tion, and control over the Office. 
‘‘(c) RESPONSIBILITIES.—The Office of Net Assess-
ment shall develop and coordinate net assessments with 
respect to the standing, trends, and future prospects of 
the military capabilities and potential of the United States 
in comparison with the military capabilities and potential 
of other countries or groups of countries to identify emerg-
ing or future threats or opportunities for the United 
States. 
‘‘(d) BUDGET.—In the budget materials submitted to 
the President by the Secretary of Defense in connection 
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with the submittal to Congress, pursuant to section 1105 
of title 31, of the budget for any fiscal year after fiscal 
year 2014, the Secretary shall ensure that a separate, 
dedicated program element is assigned for the Office of 
Net Assessment. 
‘‘(e) NET ASSESSMENT DEFINED.—In this section, 
the term ‘net assessment’ means the comparative analysis 
of military, technological, political, economic, and other 
factors governing the relative military capability of na-
tions.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 4 of such title is 
amended by adding at the end the following new 
item: 
‘‘145. Office of Net Assessment.’’. 
SEC. 908. AMENDMENTS RELATING TO ORGANIZATION AND 
MANAGEMENT OF THE OFFICE OF THE SEC-
RETARY OF DEFENSE. 
(a) DEPUTY CHIEF MANAGEMENT OFFICER.—Sub-
section (b) of section 132a of title 10, United States Code, 
is amended to read as follows: 
‘‘(b) RESPONSIBILITIES.—Subject to the authority, 
direction, and control of the Secretary of Defense, the 
Deputy Chief Management Officer shall perform such du-
ties and exercise such powers as the Secretary may pre-
scribe. The Deputy Chief Management Officer shall— 
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‘‘(1) assist the Deputy Secretary of Defense in 
the Deputy Secretary’s capacity as Chief Manage-
ment Officer of the Department of Defense under 
section 132(c) of this title and perform those duties 
assigned by the Secretary of Defense or delegated by 
the Deputy Secretary pursuant to section 904(a)(2) 
of the National Defense Authorization Act for Fiscal 
Year 2008 (Public Law 110–181; 10 U.S.C. 132 
note); 
‘‘(2) assist the Deputy Secretary of Defense in 
the Deputy Secretary’s capacity as the Chief Oper-
ating Officer of the Department of Defense under 
section 1123 of title 31; 
‘‘(3) establish policies for the strategic manage-
ment and integration of the Department of Defense 
business operations and activities; 
‘‘(4) have the responsibilities specified for the 
Deputy Chief Management Officer for the purposes 
of section 2222 of this title; and 
‘‘(5) be the Performance Improvement Officer 
of the Department of Defense for the purposes of 
section 1124(a)(1) of title 31.’’. 
(b) CHIEF INFORMATION OFFICER OF THE DEPART-
MENT OF DEFENSE.— 
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(1) STATUTORY
ESTABLISHMENT
OF
POSI-
TION.—Chapter 4 of title 10, United States Code, is 
amended by inserting after section 141 the following 
new section: 
‘‘§ 142. Chief information officer 
‘‘(a) There is a Chief Information Officer of the De-
partment of Defense. 
‘‘(b)(1) The Chief Information Officer of the Depart-
ment of Defense— 
‘‘(A) is the Chief Information Officer of the De-
partment of Defense for the purposes of sections 
3506(a)(2) and 3544(a)(3) of title 44; 
‘‘(B) has the responsibilities and duties speci-
fied in section 11315 of title 40; and 
‘‘(C) has the responsibilities specified for the 
Chief Information Officer in sections 2222, 2223(a), 
and 2224 of this title. 
‘‘(2) The Chief Information Officer shall perform 
such additional duties and exercise such powers as the 
Secretary of Defense may prescribe. 
‘‘(c) The Chief Information Officer takes precedence 
in the Department of Defense with the officials serving 
in positions specified in section 131(b)(4) of this title. The 
officials serving in positions specified in section 131(b)(4) 
and the Chief Information Officer of the Department of 
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Defense take precedence among themselves in the order 
prescribed by the Secretary of Defense.’’. 
(2) PLACEMENT IN THE OFFICE OF THE SEC-
RETARY OF DEFENSE.—Section 131(b) of such title 
is amended— 
(A) 
by 
redesignating 
paragraphs 
(5) 
through (8) as paragraphs (6) through (9), re-
spectively; and 
(B) by inserting after paragraph (4) the 
following new paragraph (5): 
‘‘(5) The Chief Information Officer of the De-
partment of Defense.’’. 
(c) REPEAL OF REQUIREMENT FOR DEFENSE BUSI-
NESS SYSTEM MANAGEMENT COMMITTEE.—Section 186 
of title 10, United States Code, is repealed. 
(d) ASSIGNMENT OF RESPONSIBILITY FOR DEFENSE 
BUSINESS SYSTEMS.—Section 2222 of title 10, United 
States Code, is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘and’’ at the end of para-
graph (1); 
(B) by striking ‘‘; and’’ at the end of para-
graph (2) and inserting a period; and 
(C) by striking paragraph (3); 
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(2) in subsection (c)(1), by striking ‘‘Defense 
Business Systems Management Committee’’ and in-
serting ‘‘investment review board established under 
subsection (g)’’; and 
(3) in subsection (g)— 
(A) in paragraph (1), by striking ‘‘, not 
later than March 15, 2012,’’; 
(B) in paragraph (2)(C), by striking 
‘‘each’’ the first place it appears and inserting 
‘‘the’’; and 
(C) in paragraph (2)(F), by striking ‘‘and 
the Defense Business Systems Management 
Committee, as required by section 186(c) of 
this title,’’. 
(e) DEADLINE
FOR ESTABLISHMENT
OF INVEST-
MENT REVIEW BOARD AND INVESTMENT MANAGEMENT 
PROCESS.—The investment review board and investment 
management process required by section 2222(g) of title 
10, United States Code, as amended by subsection (d)(3), 
shall be established not later than March 15, 2015. 
(f) AMENDMENTS RELATING
TO CERTAIN PRE-
SCRIBED ASSISTANT SECRETARY
OF DEFENSE POSI-
TIONS.—Chapter 4 of title 10, United States Code, is fur-
ther amended as follows: 
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(1) ASSISTANT SECRETARY OF DEFENSE FOR 
LOGISTICS AND MATERIEL READINESS.—Paragraph 
(7) of section 138(b) is amended— 
(A) by inserting after ‘‘Readiness’’ in the 
first sentence the following: ‘‘, who shall be ap-
pointed from among persons with an extensive 
background in the sustainment of major weap-
ons systems and combat support equipment’’; 
(B) by striking the second sentence; 
(C) by transferring to the end of that 
paragraph (as amended by subparagraph (B)) 
the text of subsection (b) of section 138a of 
such title; 
(D) by transferring to the end of that 
paragraph (as amended by subparagraph (C)) 
the text of subsection (c) of section 138a of 
such title; and 
(E) 
by 
redesignating 
paragraphs 
(1) 
through (3) in the text transferred by subpara-
graph (D) of this paragraph as subparagraphs 
(A) through (C), respectively. 
(2) ASSISTANT SECRETARY OF DEFENSE FOR 
RESEARCH
AND
ENGINEERING.—Paragraph (8) of 
such section is amended— 
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(A) by striking the second sentence and in-
serting the text of subsection (a) of section 
138b; 
(B) by inserting after the text added by 
subparagraph (A) of this paragraph the fol-
lowing: ‘‘The Assistant Secretary, in consulta-
tion with the Deputy Assistant Secretary of De-
fense for Developmental Test and Evaluation, 
shall—’’; 
(C) by transferring paragraphs (1) and (2) 
of subsection (b) of section 138b to the end of 
that paragraph (as amended by subparagraphs 
(A) and (B) of this paragraph), indenting those 
paragraphs 2 ems from the left margin, and re-
designating those paragraphs as subparagraphs 
(A) and (B), respectively; 
(D) in subparagraph (A) (as so transferred 
and redesignated)— 
(i) by striking ‘‘The Assistant Sec-
retary’’ and all that follows through ‘‘Test 
and Evaluation, shall’’; and 
(ii) by striking the period at the end 
and inserting ‘‘; and’’; and 
(E) in subparagraph (B) (as so transferred 
and redesignated), by striking ‘‘The Assistant 
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Secretary’’ and all that follows through ‘‘Test 
and Evaluation, shall’’. 
(3) ASSISTANT SECRETARY OF DEFENSE FOR 
NUCLEAR, CHEMICAL, AND
BIOLOGICAL
DEFENSE 
PROGRAMS.—Paragraph (10) of such section is 
amended— 
(A) by striking the second sentence and in-
serting the text of subsection (b) of section 
138d; and 
(B) by inserting after the text added by 
subparagraph (A) of this paragraph the text of 
subsection (a) of such section and in that text 
as so inserted— 
(i) by striking ‘‘of Defense for Nu-
clear, Chemical, and Biological Defense 
Programs’’ and 
(ii) by redesignating paragraphs (1) 
through (3) as subparagraphs (A) through 
(C), respectively. 
(4) REPEAL OF SEPARATE SECTIONS.—Sections 
138a, 138b, and 138d are repealed. 
(g) CODIFICATION OF RESTRICTIONS ON USE OF 
THE DEPUTY UNDER SECRETARY OF DEFENSE TITLE.— 
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(1) CODIFICATION.—Section 137a(a) of title 
10, United States Code, is amended by adding at 
the end the following new paragraph: 
‘‘(3) The officials authorized under this section shall 
be the only Deputy Under Secretaries of Defense.’’. 
(2) CONFORMING REPEAL.—Section 906(a)(2) 
of the National Defense Authorization Act for Fiscal 
Year 2010 (Public Law 111–84; 123 Stat. 2426; 10 
U.S.C. 137a note) is repealed. 
(3) CONFORMING
AMENDMENT
FOR
THE
VA-
CANCY REFORM ACT OF 1998.—Section 137a(b) of 
such title is amended by striking ‘‘is absent or dis-
abled’’ and inserting ‘‘dies, resigns, or is otherwise 
unable to perform the functions and duties of the of-
fice’’. 
(h) CLARIFICATION OF ORDER OF PRECEDENCE FOR 
THE PRINCIPAL DEPUTY UNDER SECRETARIES OF DE-
FENSE
AND
THE
ASSISTANT
SECRETARIES
OF
DE-
FENSE.— 
(1) Subsection (d) of section 137a of title 10, 
United States Code, is amended by striking ‘‘and 
the Deputy Chief Management Officer of the De-
partment of Defense’’ and inserting ‘‘the Deputy 
Chief Management Officer of the Department of De-
fense, and the officials serving in the positions speci-
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fied in section 131(b)(4) of this title and the Chief 
Information Officer of the Department of Defense’’. 
(2) Subsection (d) of section 138 of such title 
is amended by inserting ‘‘and the Chief Information 
Officer of the Department of Defense’’ after ‘‘section 
131(b)(4) of this title’’. 
(i) CONFORMING AMENDMENT TO PRIOR REDUCTION 
IN THE NUMBER OF ASSISTANT SECRETARIES OF DE-
FENSE.—Section 5315 of title 5, United States Code, is 
amended by striking ‘‘Assistant Secretaries of Defense 
(16)’’ and inserting ‘‘Assistant Secretaries of Defense 
(14)’’. 
(j) CLERICAL AND CONFORMING AMENDMENTS.— 
Title 10, United States Code, is amended as follows: 
(1) The table of sections at the beginning of 
chapter 4 is amended— 
(A) by striking the items relating to sec-
tions 138a, 138b, and 138d; and 
(B) by inserting after the item relating to 
section 141 the following new item: 
‘‘142. Chief Information Officer.’’. 
(2) Section 131(b)(8), as redesignated by sub-
section (b)(2)(A), is amended— 
(A) by redesignating subparagraphs (A) 
through (H) as subparagraphs (B) through (I), 
respectively; and 
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(B) by inserting before subparagraph (B), 
as redesignated by subparagraph (A) of this 
paragraph, the following new subparagraph (A): 
‘‘(A) The two Deputy Directors within the 
Office of the Director of Cost Assessment and 
Program Evaluation under section 139a(c) of 
this title.’’. 
(3) Section 132(b) is amended by striking ‘‘is 
disabled or there is no Secretary of Defense’’ and in-
serting ‘‘dies, resigns, or is otherwise unable to per-
form the functions and duties of the office’’. 
(4) The table of sections at the beginning of 
chapter 7 is amended by striking the item relating 
to section 186. 
SEC. 909. PERIODIC REVIEW OF DEPARTMENT OF DEFENSE 
MANAGEMENT HEADQUARTERS. 
(a) PLAN REQUIRED.—Not later than 120 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall develop a plan for implementing a periodic 
review and analysis of the Department of Defense per-
sonnel requirements for management headquarters. 
(b) ELEMENTS OF PLAN.—The plan required by sub-
section (a) shall include the following for each covered or-
ganization: 
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(1) A list of the key Department of Defense 
strategic guidance, policy, and mission requirements, 
including the quadrennial defense review, the Uni-
fied Command Plan, and the strategic choices and 
management review. 
(2) A description of how current management 
headquarters are structured to execute the Depart-
ment of Defense strategic guidance, policy, and mis-
sion requirements listed under paragraph (1). 
(3) A description of the critical capabilities and 
skillsets required by management headquarters to 
execute Department of Defense strategic guidance in 
order to fulfill mission objectives. 
(4) An identification and analysis of the factors 
that directly or indirectly influence or contribute to 
the expense of Department of Defense management 
headquarters. 
(5) A description of the proposed timeline and 
required resources necessary to implement a perma-
nent periodic review and analysis of Department of 
Defense personnel requirements for management 
headquarters. 
(c) COVERED ORGANIZATION.—In this section, the 
term ‘‘covered organization’’ includes each of the fol-
lowing: 
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(1) The Office of the Secretary of Defense. 
(2) The Joint Staff. 
(3) The Defense Agencies. 
(4) The Department of Defense field activities. 
(5) The headquarters of the combatant com-
mands. 
(6) Headquarters, Department of the Army, in-
cluding the Office of the Secretary of the Army, the 
Office of the Chief of Staff of the Army, and the 
Army Staff. 
(7) The major command headquarters of the 
Army. 
(8) The Office of the Secretary of the Navy, the 
Office of the Chief of Naval Operations, and Head-
quarters, United States Marine Corps. 
(9) The major command headquarters of the 
Navy and the Marine Corps. 
(10) Headquarters, Department of the Air 
Force, including the Office of the Secretary of the 
Air Force, the Office of the Air Force Chief of Staff, 
and the Air Staff. 
(11) The major command headquarters of the 
Air Force. 
(12) The National Guard Bureau. 
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(d) REPORT.—Not later than 120 days after the date 
of the enactment of this Act, the Secretary shall submit 
to the congressional defense committees the plan required 
by subsection (a). 
(e) AMENDMENTS.—Section 904(d)(2) of the Na-
tional Defense Authorization Act for Fiscal Year 2014 
(Public Law 113–66; 127 Stat. 816; 10 U.S.C. 111 note) 
is amended— 
(1) by striking ‘‘2016’’ and inserting ‘‘2017’’; 
(2) in subparagraph (B), by inserting ‘‘, con-
solidations,’’ after ‘‘through changes’’; 
(3) in subparagraph (C)— 
(A) by inserting ‘‘, consolidations,’’ after 
‘‘through changes’’; and 
(B) by inserting ‘‘, or other associated cost 
drivers, including a discussion of how the 
changes, consolidations, or reductions were 
prioritized,’’ after ‘‘programs and offices’’; 
(4) in subparagraph (E), by inserting ‘‘, includ-
ing the risks of, and capabilities gained or lost by 
implementing, such modifications’’ before the period; 
and 
(5) by adding at the end the following new sub-
paragraphs: 
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‘‘(F) A description of how the plan sup-
ports or affects current Department of Defense 
strategic guidance, policy, and mission require-
ments, including the quadrennial defense re-
view, the Unified Command Plan, and the stra-
tegic choices and management review. 
‘‘(G) A description of the associated costs 
specifically addressed by the savings.’’. 
SEC. 910. REPORT RELATED TO NUCLEAR FORCES, DETER-
RENCE, 
NONPROLIFERATION, 
AND 
TER-
RORISM. 
Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report dis-
cussing how the Department of Defense will manage its 
mission with respect to issues related to nuclear forces, 
deterrence, nonproliferation, and terrorism. 
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Subtitle B—Total Force 
Management 
SEC. 911. MODIFICATIONS TO BIENNIAL STRATEGIC WORK-
FORCE PLAN RELATING TO SENIOR MANAGE-
MENT, FUNCTIONAL, AND TECHNICAL WORK-
FORCE OF THE DEPARTMENT OF DEFENSE. 
(a) 
SENIOR
MANAGEMENT
WORKFORCE.—Sub-
section (c) of section 115b of title 10, United States Code, 
is amended— 
(1) by striking paragraph (1) and inserting the 
following: 
‘‘(1) Each strategic workforce plan under subsection 
(a) shall— 
‘‘(A) include a separate chapter to specifically 
address the shaping and improvement of the senior 
management workforce of the Department of De-
fense; and 
‘‘(B) include an assessment of the senior func-
tional and technical workforce of the Department of 
Defense within the appropriate functional commu-
nity.’’; and 
(2) in paragraph (2), by striking ‘‘such senior 
management, functional, and technical workforce’’ 
and inserting ‘‘such senior management workforce 
and such senior functional and technical workforce’’. 
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(b) HIGHLY QUALIFIED EXPERTS.—Such section is 
further amended— 
(1) in subsection (b)(2), by striking ‘‘subsection 
(f)(1)’’ in subparagraphs (D) and (E) and inserting 
‘‘subsection (h)(1) or (h)(2)’’; 
(2) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively; and 
(3) by inserting after subsection (e) the fol-
lowing new subsection (f): 
‘‘(f) HIGHLY QUALIFIED EXPERTS.— 
‘‘(1) Each strategic workforce plan under sub-
section (a) shall include an assessment of the work-
force of the Department of Defense comprised of 
highly qualified experts appointed pursuant to sec-
tion 9903 of title 5 (in this subsection referred to as 
the ‘HQE workforce’). 
‘‘(2) For purposes of paragraph (1), each plan 
shall include, with respect to the HQE workforce— 
‘‘(A) an assessment of the critical skills 
and competencies of the existing HQE work-
force and projected trends in that workforce 
based on expected losses due to retirement and 
other attrition; 
‘‘(B) specific strategies for attracting, com-
pensating, and motivating the HQE workforce 
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of the Department, including the program ob-
jectives of the Department to be achieved 
through such strategies and the funding needed 
to implement such strategies; 
‘‘(C) any incentives necessary to attract or 
retain HQE personnel; 
‘‘(D) any changes that may be necessary in 
resources or in the rates or methods of pay 
needed to ensure the Department has full ac-
cess to appropriately qualified personnel; and 
‘‘(E) any legislative changes that may be 
necessary to achieve HQE workforce goals.’’. 
(c) DEFINITIONS.—Subsection (h) of such section (as 
redesignated by subsection (b)(2)) is amended to read as 
follows: 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) The term ‘senior management workforce of 
the Department of Defense’ includes the following 
categories of Department of Defense civilian per-
sonnel: 
‘‘(A) Appointees in the Senior Executive 
Service under section 3131 of title 5. 
‘‘(B) Persons serving in the Defense Intel-
ligence Senior Executive Service under section 
1606 of this title. 
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‘‘(2) The term ‘senior functional and technical 
workforce of the Department of Defense’ includes 
the following categories of Department of Defense 
civilian personnel: 
‘‘(A) Persons serving in positions described 
in section 5376(a) of title 5. 
‘‘(B) Scientists and engineers appointed 
pursuant to section 342(b) of the National De-
fense Authorization Act for Fiscal Year 1995 
(Public Law 103–337; 108 Stat. 2721), as 
amended by section 1114 of the Floyd D. 
Spence National Defense Authorization Act for 
Fiscal Year 2001 (as enacted into law by Public 
Law 106–398 (114 Stat. 1654A–315)). 
‘‘(C) Scientists and engineers appointed 
pursuant to section 1101 of the Strom Thur-
mond National Defense Authorization Act for 
Fiscal Year 1999 (5 U.S.C. 3104 note). 
‘‘(D) Persons serving in Intelligence Senior 
Level positions under section 1607 of this title. 
‘‘(3) The term ‘acquisition workforce’ includes 
individuals designated under section 1721 of this 
title as filling acquisition positions.’’. 
(d) CONFORMING AMENDMENT.—The heading of 
subsection (c) of such section is amended to read as fol-
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lows: ‘‘SENIOR
MANAGEMENT
WORKFORCE; SENIOR 
FUNCTIONAL AND TECHNICAL WORKFORCE.—’’. 
SEC. 912. REPEAL OF EXTENSION OF COMPTROLLER GEN-
ERAL REPORT ON INVENTORY. 
Section 803(c) of the National Defense Authorization 
Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 
2402), as amended by section 951(b) of the National De-
fense Authorization Act for Fiscal Year 2014 (Public Law 
113–66; 127 Stat. 839), is amended by striking ‘‘2013, 
2014, and 2015’’ and inserting ‘‘and 2013’’. 
SEC. 913. ASSIGNMENT OF CERTAIN NEW REQUIREMENTS 
BASED ON DETERMINATIONS OF COST-EFFI-
CIENCY. 
(a) AMENDMENT.—Chapter 146 of title 10, United 
States Code, is amended by inserting after section 2463 
the following new section: 
‘‘§ 2463a. Assignment of certain new requirements 
based on determinations of cost-effi-
ciency 
‘‘(a) ASSIGNMENTS BASED ON DETERMINATIONS OF 
COST-EFFICIENCY.—(1) Except as provided in paragraph 
(2) and subject to subsection (b), the assignment of per-
formance of a new requirement by the Department of De-
fense to military personnel, civilian personnel, or con-
tractor personnel shall be based on a determination of 
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which sector of the Department’s workforce can perform 
the services in the most cost-efficient manner, based on 
an analysis of the costs to the Federal Government in ac-
cordance with Department of Defense Instruction 7041.04 
(‘Estimating and Comparing the Full Costs of Civilian 
and Active Duty Military Manpower and Contract Sup-
port’) or successor guidance. 
‘‘(2) Paragraph (1) shall not apply in the case of a 
new requirement that is inherently governmental, closely 
associated with inherently governmental functions, crit-
ical, or required by law to be performed by military per-
sonnel or civilian personnel. 
‘‘(3) Nothing in this section may be construed as af-
fecting the requirements of the Department of Defense 
under policies and procedures established by the Secretary 
of Defense under section 129a of this title for determining 
the most appropriate and cost-efficient mix of military, ci-
vilian, and contractor personnel to perform the mission of 
the Department of Defense. 
‘‘(b) WAIVER
AUTHORITY.—(1) Notwithstanding 
subsection (a), the Secretary of a military department, the 
commander of a combatant command, or the head of a 
Defense Agency or activity may waive such subsection and 
assign performance of a new requirement without a deter-
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mination of cost-efficiency as required by such subsection 
if— 
‘‘(A) the Secretary, commander, or head cer-
tifies in writing to the congressional defense commit-
tees that the time required to conduct the deter-
mination of cost-efficiency would result in a gap in 
service that would significantly undermine perform-
ance of the mission of the Department of Defense or 
pose an unacceptable risk; and 
‘‘(B) a period of 30 days has expired after such 
certification is so submitted to the committees. 
‘‘(2) A waiver of subsection (a) may be in effect for 
a period of not greater than 180 days. 
‘‘(3) The waiver authority under this subsection may 
not be exercised after September 30, 2015. 
‘‘(c) PROVISIONS RELATING TO ASSIGNMENT OF CI-
VILIAN PERSONNEL.—If a new requirement is assigned to 
civilian personnel consistent with the requirements of this 
section— 
‘‘(1) the Secretary of Defense may not— 
‘‘(A) impose any constraint or limitation 
on the size of the civilian workforce in terms of 
man years, end strength, full-time equivalent 
positions, or maximum number of employees; or 
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‘‘(B) require offsetting funding for civilian 
pay or benefits or require a reduction in civilian 
full-time equivalents or civilian end-strengths; 
and 
‘‘(2) the Secretary may assign performance of 
such requirement without regard to whether the em-
ployee is a temporary, term, or permanent employee. 
‘‘(d) NEW REQUIREMENT DESCRIBED.—For pur-
poses of this section, a new requirement is an activity or 
function that is not being performed, as of the date of 
consideration for assignment of performance under this 
section, by military personnel, civilian personnel, or con-
tractor personnel at a Department of Defense component, 
organization, installation, or other entity. For purposes of 
the preceding sentence, an activity or function that is per-
formed at such an entity and that is re-engineered, reorga-
nized, modernized, upgraded, expanded, or changed to be-
come more efficient but is still essentially providing the 
same service shall not be considered a new requirement.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 2463 the following new 
item: 
‘‘2463a. Assignment of certain new requirements based on determinations of 
cost-efficiency.’’. 
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SEC. 914. PROHIBITION ON CONVERSION OF FUNCTIONS 
PERFORMED BY CIVILIAN OR CONTRACTOR 
PERSONNEL TO PERFORMANCE BY MILITARY 
PERSONNEL. 
Section 129a of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(g) PROHIBITION ON PERFORMANCE OF CERTAIN 
FUNCTIONS BY MILITARY PERSONNEL.—(1) Except as 
provided in paragraph (2), no functions performed by ci-
vilian personnel or contractors may be converted to per-
formance by military personnel unless— 
‘‘(A) there is a direct link between the functions 
to be performed and a military occupational spe-
cialty; and 
‘‘(B) the conversion to performance by military 
personnel is cost effective, based on Department of 
Defense instruction 7041.04 (or any successor ad-
ministrative regulation, directive, or policy). 
‘‘(2) Paragraph (1) shall not apply to the following 
functions: 
‘‘(A) Functions required by law or regulation to 
be performed by military personnel. 
‘‘(B) Functions related to— 
‘‘(i) missions involving operation risks and 
combatant status under the Law of War; 
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‘‘(ii) specialized collective and individual 
training requiring military-unique knowledge 
and skills based on recent operational experi-
ence; 
‘‘(iii) independent advice to senior civilian 
leadership in the Department of Defense requir-
ing military-unique knowledge and skills based 
on recent operational experience; and 
‘‘(iv) command and control arrangements 
under chapter 47 of this title (the Uniform 
Code of Military Justice).’’. 
SEC. 915. NOTIFICATION OF COMPLIANCE WITH SECTION 
RELATING TO PROCUREMENT OF SERVICES. 
(a) NOTIFICATION.—The Secretary of Defense shall 
ensure compliance with section 2330a of title 10, United 
States Code, and shall provide, in writing, notification of 
such compliance to the congressional defense committees 
not later than March 1, 2015. 
(b) REVIEW
BY
COMPTROLLER
GENERAL.—The 
Comptroller General of the United States shall review the 
notification of compliance required by subsection (a) and 
report any findings or recommendations to the congres-
sional defense committees not later than 120 days after 
the date on which the notification is provided. 
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Subtitle C—Other Matters 
SEC. 921. EXTENSION OF AUTHORITY TO WAIVE REIM-
BURSEMENT OF COSTS OF ACTIVITIES FOR 
NONGOVERNMENTAL 
PERSONNEL 
AT 
DE-
PARTMENT OF DEFENSE REGIONAL CENTERS 
FOR SECURITY STUDIES. 
Section 941(b)(1) of the Duncan Hunter National 
Defense Authorization Act for Fiscal Year 2009 (10 
U.S.C. 184 note) is amended by striking ‘‘through 2014’’ 
and inserting ‘‘through 2019’’. 
SEC. 922. AUTHORITY TO REQUIRE EMPLOYEES OF THE DE-
PARTMENT OF DEFENSE AND MEMBERS OF 
THE ARMY, NAVY, AIR FORCE, AND MARINE 
CORPS TO OCCUPY QUARTERS ON A RENTAL 
BASIS WHILE PERFORMING OFFICIAL TRAV-
EL. 
(a) DEFINITION.—Section 5911(a)(5) of title 5, 
United States Code, is amended by striking ‘‘Government; 
and’’ and inserting ‘‘Government or commercial lodging 
arranged through a Government lodging program; and’’. 
(b) AUTHORITY.—Section 5911(e) of title 5, United 
States Code, is amended— 
(1) by striking ‘‘(e) The’’ and inserting ‘‘(e)(1) 
Except as provided in paragraph (2), the’’; and 
(2) by adding at the end the following: 
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‘‘(2)(A) The Secretary of Defense may require an em-
ployee of the Department of Defense or a member of the 
uniformed services under the Secretary’s jurisdiction per-
forming duty on official travel to occupy adequate quarters 
on a rental basis when available. 
‘‘(B) A requirement under subparagraph (A) with re-
spect to an employee of the Department of Defense may 
not be construed to be subject to negotiation under chap-
ter 71 or any other provision of this title.’’. 
SEC. 923. SINGLE STANDARD MILEAGE REIMBURSEMENT 
RATE FOR PRIVATELY OWNED AUTOMOBILES 
OF GOVERNMENT EMPLOYEES AND MEM-
BERS OF THE UNIFORMED SERVICES. 
(a) IN GENERAL.—Section 5704(a)(1) of title 5, 
United States Code, is amended in the last sentence by 
striking all that follows: ‘‘the rate per mile’’ and inserting 
‘‘shall be the single standard mileage rate established by 
the Internal Revenue Service.’’. 
(b) REGULATIONS AND REPORTS.— 
(1) PROVISIONS
RELATING
TO
PRIVATELY 
OWNED AIRPLANES AND MOTORCYCLES.—Paragraph 
(1)(A) of section 5707(b) of title 5, United States 
Code, is amended to read as follows: 
‘‘(1)(A) The Administrator of General Services 
shall conduct periodic investigations of the cost of 
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travel and the operation of privately owned airplanes 
and privately owned motorcycles by employees while 
engaged on official business, and shall report the re-
sults of such investigations to Congress at least once 
a year.’’. 
(2) PROVISIONS
RELATING
TO
PRIVATELY 
OWNED
AUTOMOBILES.—Clause 
(i) 
of 
section 
5707(b)(2)(A) of title 5, United States Code, is 
amended to read as follows: 
‘‘(i) shall provide that the mileage reim-
bursement rate for privately owned automobiles, 
as provided in section 5704(a)(1), is the single 
standard mileage rate established by the Inter-
nal Revenue Service referred to in that section, 
and’’. 
SEC. 924. PUBLIC RELEASE BY INSPECTORS GENERAL OF 
REPORTS OF MISCONDUCT. 
(a) RELEASE OF INSPECTOR GENERAL OF THE DE-
PARTMENT OF DEFENSE ADMINISTRATIVE MISCONDUCT 
REPORTS.—Section 141 of title 10, United States Code, 
is amended by adding at the end the following new sub-
section: 
‘‘(c)(1) Within 60 days after issuing a final report, 
the Inspector General of the Department of Defense shall 
publicly release any reports of administrative investiga-
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tions that confirm misconduct, including violations of Fed-
eral law and violations of policies of the Department of 
Defense, of any member of the Senior Executive Service, 
political appointee, or commissioned officer in the Armed 
Forces in pay grades O–6 or above. In releasing the re-
ports, the Inspector General shall ensure that information 
that would be protected under section 552 of title 5 (com-
monly known as the ‘Freedom of Information Act’), sec-
tion 552a of title 5 (commonly known as the ‘Privacy Act 
of 1974’), or section 6103 of the Internal Revenue Code 
of 1986 is not disclosed. 
‘‘(2) In this subsection, the term ‘political appointee’ 
means any individual who is— 
‘‘(A) employed in a position described under 
sections 5312 through 5316 of title 5, United States 
Code, (relating to the Executive Schedule); 
‘‘(B) a limited term appointee, limited emer-
gency appointee, or noncareer appointee in the Sen-
ior Executive Service, as defined under paragraphs 
(5), (6), and (7), respectively, of section 3132(a) of 
title 5, United States Code; or 
‘‘(C) employed in a position of a confidential or 
policy-determining character under schedule C of 
subpart C of part 213 of title 5 of the Code of Fed-
eral Regulations.’’. 
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(b) RELEASE OF INSPECTOR GENERAL OF THE ARMY 
ADMINISTRATIVE MISCONDUCT REPORTS.—Section 3020 
of such title is amended by adding at the end the following 
new subsection: 
‘‘(f)(1) Within 60 days after issuing a final report, 
the Inspector General of the Army shall publicly release 
any reports of administrative investigations that confirm 
misconduct, including violations of Federal law and viola-
tions of policies of the Department of Defense, of any 
member of the Senior Executive Service, political ap-
pointee, or commissioned officer in the Armed Forces in 
pay grades O–6 or above. In releasing the reports, the In-
spector General shall ensure that information that would 
be protected under section 552 of title 5 (commonly known 
as the ‘Freedom of Information Act’), section 552a of title 
5 (commonly known as the ‘Privacy Act of 1974’), or sec-
tion 6103 of the Internal Revenue Code of 1986 is not 
disclosed. 
‘‘(2) In this subsection, the term ‘political appointee’ 
means any individual who is— 
‘‘(A) employed in a position described under 
sections 5312 through 5316 of title 5, United States 
Code, (relating to the Executive Schedule); 
‘‘(B) a limited term appointee, limited emer-
gency appointee, or noncareer appointee in the Sen-
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ior Executive Service, as defined under paragraphs 
(5), (6), and (7), respectively, of section 3132(a) of 
title 5, United States Code; or 
‘‘(C) employed in a position of a confidential or 
policy-determining character under schedule C of 
subpart C of part 213 of title 5 of the Code of Fed-
eral Regulations.’’. 
(c) RELEASE OF NAVAL INSPECTOR GENERAL AD-
MINISTRATIVE MISCONDUCT REPORTS.—Section 5020 of 
such title is amended by adding at the end the following 
new subsection: 
‘‘(e)(1) Within 60 days after issuing a final report, 
the Naval Inspector General shall publicly release any re-
ports of administrative investigations that confirm mis-
conduct, including violations of Federal law and violations 
of policies of the Department of Defense, of any member 
of the Senior Executive Service, political appointee, or 
commissioned officer in the Armed Forces in pay grades 
O–6 or above. In releasing the reports, the Naval Inspec-
tor General shall ensure that information that would be 
protected under section 552 of title 5 (commonly known 
as the ‘Freedom of Information Act’), section 552a of title 
5 (commonly known as the ‘Privacy Act of 1974’), or sec-
tion 6103 of the Internal Revenue Code of 1986 is not 
disclosed. 
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‘‘(2) In this subsection, the term ‘political appointee’ 
means any individual who is— 
‘‘(A) employed in a position described under 
sections 5312 through 5316 of title 5, United States 
Code, (relating to the Executive Schedule); 
‘‘(B) a limited term appointee, limited emer-
gency appointee, or noncareer appointee in the Sen-
ior Executive Service, as defined under paragraphs 
(5), (6), and (7), respectively, of section 3132(a) of 
title 5, United States Code; or 
‘‘(C) employed in a position of a confidential or 
policy-determining character under schedule C of 
subpart C of part 213 of title 5 of the Code of Fed-
eral Regulations.’’. 
(d) RELEASE OF INSPECTOR GENERAL OF THE AIR 
FORCE ADMINISTRATIVE MISCONDUCT REPORTS.—Sec-
tion 8020 of such title is amended by adding at the end 
the following new subsection: 
‘‘(f)(1) Within 60 days after issuing a final report, 
the Inspector General of the Air Force shall publicly re-
lease any reports of administrative investigations that con-
firm misconduct, including violations of Federal law and 
violations of policies of the Department of Defense, of any 
member of the Senior Executive Service, political ap-
pointee, or commissioned officer in the Armed Forces in 
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pay grades O–6 or above. In releasing the reports, the In-
spector General shall ensure that information that would 
be protected under section 552 of title 5 (commonly known 
as the ‘Freedom of Information Act’), section 552a of title 
5 (commonly known as the ‘Privacy Act of 1974’), or sec-
tion 6103 of the Internal Revenue Code of 1986 is not 
disclosed. 
‘‘(2) In this subsection, the term ‘political appointee’ 
means any individual who is— 
‘‘(A) employed in a position described under 
sections 5312 through 5316 of title 5, United States 
Code, (relating to the Executive Schedule); 
‘‘(B) a limited term appointee, limited emer-
gency appointee, or noncareer appointee in the Sen-
ior Executive Service, as defined under paragraphs 
(5), (6), and (7), respectively, of section 3132(a) of 
title 5, United States Code; or 
‘‘(C) employed in a position of a confidential or 
policy-determining character under schedule C of 
subpart C of part 213 of title 5 of the Code of Fed-
eral Regulations.’’. 
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SEC. 925. MODIFICATIONS TO REQUIREMENTS FOR AC-
COUNTING FOR MEMBERS OF THE ARMED 
FORCES AND DEPARTMENT OF DEFENSE CI-
VILIAN EMPLOYEES LISTED AS MISSING. 
(a) DESIGNATION OF OFFICER.—Section 1501(a) of 
title 10, United States Code, is amended— 
(1) in the subsection heading, by striking 
‘‘PERSONNEL’’ and inserting ‘‘PERSONS’’; 
(2) by striking paragraph (2); 
(3) by designating the second sentence of para-
graph (1) as paragraph (2); and 
(4) by striking the first sentence of paragraph 
(1) and inserting the following: 
‘‘(A) The Secretary of Defense shall designate 
a single organization within the Department of De-
fense to have responsibility for Department of De-
fense matters relating to missing persons, including 
accounting for missing persons and persons whose 
remains have not been recovered from the conflict in 
which they were lost. 
‘‘(B) The organization designated under this 
paragraph shall be a Defense Agency or other entity 
of the Department of Defense outside the military 
departments and is referred to in this chapter as the 
‘designated Defense Agency’. 
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‘‘(C) The head of the organization designated 
under this paragraph is referred to in this chapter 
as the ‘designated Agency Director’.’’. 
(b) RESPONSIBILITIES.—Paragraph (2) of such sec-
tion, as designated by subsection (a)(3), is amended— 
(1) in the matter preceding subparagraph (A), 
by striking ‘‘the official designated under this para-
graph shall include—’’ and inserting ‘‘the designated 
Agency Director shall include the following:’’; 
(2) by capitalizing the first letter of the first 
word of each of subparagraphs (A), (B), (C), and 
(D); 
(3) by striking the semicolon at the end of sub-
paragraph (A) and inserting a period; 
(4) in subparagraph (B)— 
(A) by inserting ‘‘responsibility for’’ after 
‘‘as well as the’’; and 
(B) by striking ‘‘; and’’ at the end and in-
serting a period; and 
(5) by adding at the end the following new sub-
paragraph: 
‘‘(E) The establishment of a means for commu-
nication between officials of the designated Defense 
Agency and family members of missing persons, vet-
erans service organizations, concerned citizens, and 
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the public on the Department’s efforts to account 
for missing persons, including a readily available 
means for communication of their views and rec-
ommendations to the designated Agency Director.’’. 
(c) CONFORMING AMENDMENTS.—Such section is 
further amended— 
(1) in paragraph (3), by striking ‘‘the official 
designated under paragraphs (1) and (2)’’ and in-
serting ‘‘the designated Agency Director’’; and 
(2) in paragraphs (4) and (5), by striking ‘‘The 
designated official’’ and inserting ‘‘The designated 
Agency Director’’. 
(d) RESOURCES.—Such section is further amended 
by striking paragraph (6). 
(e) PUBLIC-PRIVATE PARTNERSHIPS
AND OTHER 
FORMS OF SUPPORT.—Chapter 76 of such title is amend-
ed by inserting after section 1501 the following new sec-
tion: 
‘‘§ 1501a. Public-private partnerships; other forms of 
support 
‘‘(a) PUBLIC-PRIVATE PARTNERSHIPS.—The Sec-
retary of Defense may enter into arrangements known as 
public-private partnerships with appropriate entities out-
side the Government for the purposes of facilitating the 
activities of the designated Defense Agency. The Secretary 
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may only partner with foreign governments or foreign en-
tities with the concurrence of the Secretary of State. Any 
such arrangement shall be entered into in accordance with 
authorities provided under this section or any other au-
thority otherwise available to the Secretary. Regulations 
prescribed under subsection (e)(1) shall include provisions 
for the establishment and implementation of such partner-
ships. 
‘‘(b) ACCEPTANCE OF VOLUNTARY PERSONAL SERV-
ICES.—The Secretary of Defense may accept voluntary 
services to facilitate accounting for missing persons in the 
same manner as the Secretary of a military department 
may accept such services under section 1588(a)(9) of this 
title. 
‘‘(c) SOLICITATION
OF GIFTS.—Under regulations 
prescribed under this chapter, the Secretary may solicit 
from any person or public or private entity, for the use 
and benefit of the activities of the designated Defense 
Agency, a gift of information and data, books, manu-
scripts, other documents, and artifacts. 
‘‘(d) USE OF DEPARTMENT OF DEFENSE PERSONAL 
PROPERTY.—The Secretary may allow a private entity to 
use, at no cost, personal property of the Department of 
Defense to assist the entity in supporting the activities 
of the designated Defense Agency. 
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‘‘(e) REGULATIONS.— 
‘‘(1) IN GENERAL.—The Secretary of Defense 
shall prescribe regulations to implement this section. 
‘‘(2) LIMITATION.—Such regulations shall pro-
vide that solicitation of a gift, acceptance of a gift 
(including a gift of services), or use of a gift under 
this section may not occur if the nature or cir-
cumstances of the solicitation, acceptance, or use 
would compromise the integrity, or the appearance 
of integrity, of any program of the Department of 
Defense or any individual involved in such pro-
gram.’’. 
(f) SECTION 1505 CONFORMING AMENDMENTS.— 
Section 1505(c) of such title is amended— 
(1) in paragraph (1), by striking ‘‘the office es-
tablished under section 1501 of this title’’ and in-
serting ‘‘the designated Agency Director’’; and 
(2) in paragraphs (2) and (3), by striking 
‘‘head of the office established under section 1501 of 
this title’’ and inserting ‘‘designated Agency Direc-
tor’’. 
(g) SECTION 1509 AMENDMENTS.—Section 1509 of 
such title is amended— 
(1) by striking ‘‘PREENACTMENT’’ in the sec-
tion heading; 
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‘‘(ii) establish identification and laboratory pol-
icy consistent with the Armed Forces Medical Exam-
iner System; and 
‘‘(iii) advise the designated Agency Director on 
forensic science disciplines. 
‘‘(D) Nothing in this chapter shall be interpreted as 
affecting the authority of the Armed Forces Medical Ex-
aminer under section 1471 of this title.’’. 
(3) in subsection (d)— 
(A) by inserting ‘‘; CENTRALIZED DATA-
BASE’’ in the subsection heading after ‘‘FILES’’; 
and 
(B) by adding at the end the following new 
paragraph: 
‘‘(4) The Secretary of Defense shall establish and 
maintain a single centralized database and case manage-
ment system containing information on all missing per-
sons for whom a file has been established under this sub-
section. The database and case management system shall 
be accessible to all elements of the Department of Defense 
involved in the search, recovery, identification, and com-
munications phases of the program established by this sec-
tion.’’; and 
(4) in subsection (f)— 
(A) in paragraph (1)— 
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(i) by striking ‘‘establishing and’’; and 
(ii) by striking ‘‘Secretary of Defense 
shall coordinate’’ and inserting ‘‘designated 
Agency Director shall ensure coordina-
tion’’; 
(B) in paragraph (2)— 
(i) by inserting ‘‘staff’’ after ‘‘Na-
tional Security Council’’; and 
(ii) by striking ‘‘POW/MIA accounting 
community’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(3) In carrying out the program, the des-
ignated Agency Director shall coordinate all external 
communications and events associated with the pro-
gram.’’. 
(h) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) CROSS-REFERENCE
CORRECTION.—Section 
1513(1) of such title is amended by striking ‘‘sub-
section (b)’’ in the last sentence and inserting ‘‘sub-
section (c)’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 76 of such title is 
amended— 
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(A) by inserting after the item relating to 
section 1501 the following new item: 
‘‘1501a. Public-private partnerships; other forms of support.’’; and 
(B) in the item relating to section 1509, by 
striking ‘‘preenactment’’. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
SEC. 1001. GENERAL TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.— 
(1) AUTHORITY.—Upon determination by the 
Secretary of Defense that such action is necessary in 
the national interest, the Secretary may transfer 
amounts of authorizations made available to the De-
partment of Defense in this division for fiscal year 
2015 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and 
be available for the same purposes as the authoriza-
tion to which transferred. 
(2) LIMITATION.—Except as provided in para-
graph (3), the total amount of authorizations that 
the Secretary may transfer under the authority of 
this section may not exceed $4,000,000,000. 
(3) EXCEPTION
FOR
TRANSFERS
BETWEEN 
MILITARY PERSONNEL AUTHORIZATIONS.—A trans-
fer of funds between military personnel authoriza-
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tions under title IV shall not be counted toward the 
dollar limitation in paragraph (2). 
(b) LIMITATIONS.—The authority provided by sub-
section (a) to transfer authorizations— 
(1) may only be used to provide authority for 
items that have a higher priority than the items 
from which authority is transferred; and 
(2) may not be used to provide authority for an 
item that has been denied authorization by Con-
gress. 
(c) EFFECT
ON
AUTHORIZATION
AMOUNTS.—A 
transfer made from one account to another under the au-
thority of this section shall be deemed to increase the 
amount authorized for the account to which the amount 
is transferred by an amount equal to the amount trans-
ferred. 
(d) NOTICE
TO CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under 
subsection (a). 
SEC. 1002. REPEAL OF LIMITATION ON INSPECTOR GEN-
ERAL AUDITS OF CERTAIN FINANCIAL STATE-
MENTS. 
Section 1008 of the National Defense Authorization 
Act for Fiscal Year 2002 (Public Law 107–107; 115 Stat. 
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1204; 10 U.S.C. 113 note) is amended by striking sub-
section (d). 
SEC. 1003. AUTHORITY TO TRANSFER FUNDS TO THE NA-
TIONAL NUCLEAR SECURITY ADMINISTRA-
TION TO SUSTAIN NUCLEAR WEAPONS MOD-
ERNIZATION AND NAVAL REACTORS. 
(a) TRANSFER AUTHORIZED.—If the amount author-
ized to be appropriated for the weapons activities of the 
National Nuclear Security Administration under section 
3101 or otherwise made available for fiscal year 2015 is 
less than $8,700,000,000 (the amount projected to be re-
quired for such activities in fiscal year 2015 as specified 
in the report under section 1251 of the National Defense 
Authorization Act for Fiscal Year 2010 (Public Law 111– 
84; 123 Stat. 2549)), the Secretary of Defense may trans-
fer, from amounts authorized to be appropriated for the 
Department of Defense for fiscal year 2015 pursuant to 
this Act, to the Secretary of Energy an amount, not to 
exceed $150,000,000, to be available only for naval reac-
tors or weapons activities of the National Nuclear Security 
Administration. 
(b) NOTICE TO CONGRESS.—In the event of a trans-
fer under subsection (a), the Secretary of Defense shall 
promptly notify Congress of the transfer, and shall include 
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