560 
‘‘(B) with respect to a contract or group of 
contracts not described in subparagraph (A), on 
a date that is at least 17 fiscal years before the 
current fiscal year;’’; 
(2) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively; and 
(3) by inserting after subsection (e) the following 
new subsection: 
‘‘(f) OVERSIGHT.—The Secretary of Defense, acting 
through the Director of the Defense Contract Management 
Agency, shall establish and maintain a centralized capa-
bility with necessary expertise and resources to provide 
oversight of the closeout of a contract or group of contracts 
covered by this section.’’. 
SEC. 819. PLAN TO IMPROVE DEPARTMENT-WIDE MANAGE-
MENT OF INVESTMENTS IN WEAPON SYS-
TEMS. 
(a) PORTFOLIO MANAGEMENT PLAN.—The Secretary 
of Defense shall direct the Under Secretary of Defense for 
Acquisition and Sustainment, in coordination with the 
Chairman of the Joint Chiefs of Staff, and the Director of 
Cost Assessment and Program Evaluation, to develop a 
plan to identify, develop, and acquire databases, analytical 
and financial tools, and workforce skills to improve the De-
partment of Defense-wide assessment, management, and op-
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timization of the investments in weapon systems of the De-
partment, including through consolidation of duplicate or 
similar weapon system programs. 
(b) PLAN CONTENTS.—The plan developed under sub-
section (a) shall— 
(1) describe the databases and analytical and fi-
nancial tools in use by the Department of Defense 
that may be used to support the Department-wide as-
sessment, management, and optimization of the in-
vestments in weapon systems of the Department; 
(2) determine the database and analytical and 
financial tool requirements that must be met, and the 
workforce skills necessary, for more effective Depart-
ment-wide reviews, analyses, and management by the 
Secretary of the investments in weapon systems of the 
Department; 
(3) identify the skills described in paragraph (2) 
that are possessed by the workforce of the Department; 
(4) identify the databases and analytical and fi-
nancial tools to be modified, developed, or acquired to 
improve the Department-wide reviews, analyses, and 
management of the investments in weapon systems of 
the Department; and 
(5) set forth a timeline for implementing the 
plan, including a timeline for the modification, devel-
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opment, and acquisition of each database and analyt-
ical and financial tool identified under paragraph 
(4). 
(c) SUBMISSION TO CONGRESS.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall submit to Congress the plan developed 
under subsection (a). 
(2) FORM.—The plan submitted under para-
graph (1) shall be in an unclassified form but may 
contain a classified annex. 
Subtitle C—Industrial Base Matters 
SEC. 821. QUARTERLY NATIONAL TECHNOLOGY AND INDUS-
TRIAL BASE BRIEFINGS. 
(a) IN GENERAL.—Section 2504 of title 10, United 
States Code, is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(a) ANNUAL REPORT.—The Secretary’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) QUARTERLY BRIEFINGS.—(1) The Secretary of 
Defense shall ensure that the congressional defense commit-
tees receive quarterly briefings on the progress of the De-
partment of Defense to address the prioritized list of gaps 
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or vulnerabilities in the national technology and industrial 
base described in subsection (a)(3)(B) as follows: 
‘‘(A) One quarterly briefing per year shall be 
provided by the Secretary of the Army. 
‘‘(B) One quarterly briefing per year shall be 
provided by the Secretary of the Navy. 
‘‘(C) One quarterly briefing per year shall be 
provided by the Secretary of the Air Force. 
‘‘(D) One quarterly briefing per year shall be 
provided by all appropriate heads of the Defense 
Agencies identified under subsection (a)(3)(B)(ii). 
‘‘(2) Each briefing under paragraph (1) shall include 
an update of the progress of addressing such gaps or 
vulnerabilities by the Secretary concerned or the appro-
priate head of a Defense Agency, including an update on— 
‘‘(A) actions taken to address such gaps or 
vulnerabilities; 
‘‘(B) the mitigation strategies necessary to ad-
dress such gaps or vulnerabilities; and 
‘‘(C) the proposed timeline for action to address 
such gaps or vulnerabilities.’’. 
(b) CONFORMING AND CLERICAL AMENDMENTS.— 
(1) HEADING AMENDMENT.—The heading of sec-
tion 2504 of such title is amended to read as follows: 
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‘‘§ 2504. National technology and industrial base: an-
nual report and quarterly briefings’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter II of chapter 148 of such title is 
amended by striking the item relating to section 2504 
and inserting the following new item: 
‘‘2504. National technology and industrial base: annual report and quarterly 
briefing.’’. 
SEC. 822. EXPANSION ON THE PROHIBITION ON ACQUIRING 
CERTAIN METAL PRODUCTS. 
(a) IN GENERAL.—Section 2533c of title 10, United 
States Code, is amended— 
(1) in subsection (a)(1), by striking ‘‘material 
melted’’ and inserting ‘‘material mined, refined, sepa-
rated, melted,’’; and 
(2) in subsection (c)(3)(A)(i), by striking ‘‘tung-
sten’’ and inserting ‘‘covered material’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on the date that is three years 
after the date of the enactment of this Act. 
SEC. 823. REQUIREMENT THAT CERTAIN SHIP COMPO-
NENTS 
BE 
MANUFACTURED 
IN 
THE 
NA-
TIONAL 
TECHNOLOGY 
AND 
INDUSTRIAL 
BASE. 
(a) TECHNICAL AMENDMENT.—The second subsection 
(k) of section 2534 of title 10, United States Code (relating 
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to Implementation of Auxiliary Ship Component Limita-
tion), is redesignated as subsection (l). 
(b) COMPONENTS
FOR AUXILIARY SHIPS.—Section 
2534(a) of title 10, United States Code, is amended by add-
ing at the end the following new paragraph: 
‘‘(6) COMPONENTS FOR AUXILIARY SHIPS.—Sub-
ject to subsection (l), the following components: 
‘‘(A) Large medium-speed diesel engines. 
‘‘(B) 
Auxiliary 
equipment, 
including 
pumps, for all shipboard services. 
‘‘(C) Propulsion system components, includ-
ing engines, reduction gears, and propellers. 
‘‘(D) Shipboard cranes. 
‘‘(E) Spreaders for shipboard cranes.’’. 
(c) IMPLEMENTATION.—Subsection (l) of section 2534 
of title 10, United States Code, as redesignated by sub-
section (a), is amended— 
(1) by redesignating the second sentence to ap-
pear as flush text at the end; 
(2) by striking ‘‘auxiliary ship after the date’’ 
and inserting the following: ‘‘auxiliary ship— 
‘‘(1) with respect to large medium-speed diesel 
engines described under subparagraph (A) of such 
subsection, after the date’’; 
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(3) in paragraph (1) (as so designated), by strik-
ing ‘‘Navy.’’ and inserting ‘‘Navy; and’’; and 
(4) by inserting after paragraph (1) (as so des-
ignated) the following new paragraph: 
‘‘(2) with respect to components listed in sub-
paragraphs (B) through (E) of such subsection, after 
the date of the enactment of the National Defense Au-
thorization Act for Fiscal Year 2021 using funds 
available for National Defense Sealift Fund programs 
or Shipbuilding and Conversion, Navy.’’. 
SEC. 824. PREFERENCE FOR SOURCING RARE EARTH MATE-
RIALS FROM THE NATIONAL TECHNOLOGY 
AND INDUSTRIAL BASE. 
The Secretary of Defense shall, to the maximum extent 
practicable, acquire materials that are determined to be 
strategic and critical materials required to meet the defense, 
industrial, and essential civilian needs of the United States 
in the following order of preference: 
(1) From sources located within the United 
States. 
(2) From sources located within the national 
technology and industrial base (as defined in section 
2500 of title 10, United States Code). 
(3) From other sources as appropriate. 
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SEC. 825. ENHANCED DOMESTIC CONTENT REQUIREMENT 
FOR MAJOR DEFENSE ACQUISITION PRO-
GRAMS. 
(a) ASSESSMENT REQUIRED.— 
(1) IN GENERAL.—Not later than one year after 
the date of the enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense com-
mittees a report assessing the domestic source content 
of any procurement carried out in connection with 
major defense acquisition programs. 
(2) INFORMATION REPOSITORY.—The Secretary 
of Defense shall establish an information repository 
for the collection and analysis of information related 
to domestic source content that can be used for contin-
uous data analysis and program management activi-
ties. 
(b) ENHANCED DOMESTIC CONTENT REQUIREMENT.— 
(1) IN GENERAL.—For purposes of chapter 83 of 
title 41, United States Code, manufactured articles, 
materials, or supplies procured in connection with a 
major defense acquisition program shall be deemed to 
be manufactured substantially all from articles, mate-
rials, or supplies mined, produced, or manufactured 
in the United States, if such component articles, ma-
terials, or supplies— 
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(A) not later than October 1, 2021, com-
prise 75 percent of the manufactured articles, 
materials, or supplies; 
(B) not later than October 1, 2022, com-
prise 80 percent of the manufactured articles, 
materials, or supplies; 
(C) not later than October 1, 2023, comprise 
85 percent of the manufactured articles, mate-
rials, or supplies; 
(D) not later than October 1, 2024, com-
prise 90 percent of the manufactured articles, 
materials, or supplies; 
(E) not later than October 1, 2025, com-
prise 95 percent of the manufactured articles, 
materials, or supplies; and 
(F) not later than October 1, 2026, com-
prise 100 percent of the manufactured articles, 
materials, or supplies. 
(2) WAIVER.—Before Milestone A approval (as 
defined in section 2366a(d) of title 10, United States 
Code) is granted for a major defense acquisition pro-
gram, the Secretary of Defense shall determine wheth-
er or not to grant a waiver of the requirements of 
paragraph (1). 
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(3) EFFECTIVE DATE.—The domestic content re-
quirement under paragraph (1) applies to contracts 
entered into on or after October 1, 2021. 
(c) MAJOR DEFENSE ACQUISITION PROGRAM DE-
FINED.—In this section, the term ‘‘major defense acquisi-
tion program’’ has the meaning given in section 2430 of 
title 10, United States Code. 
SEC. 826. ADDITIONAL REQUIREMENTS PERTAINING TO 
PRINTED CIRCUIT BOARDS. 
(a) PURCHASES.—Beginning in fiscal year 2023, the 
Secretary of Defense shall require that any contractor or 
subcontractor that provides covered printed circuit boards 
for use by the Department of Defense to certify that, of the 
total value of the covered printed circuit boards provided 
by such contractor or subcontractor pursuant to a contract 
with the Department of Defense, not less than the percent-
ages set forth in subsection (b) were manufactured and as-
sembled within a covered country. 
(b) IMPLEMENTATION.—In making a certification 
under subsection (a), a contractor or subcontractor shall use 
the following percentages: 
(1) During fiscal years 2023 through 2027, the 
greater of— 
(A) 50 percent; or 
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(B) 75 percent, if the Secretary of Defense 
has determined that suppliers in covered coun-
tries are capable of supplying 75 percent of De-
partment of Defense requirements for printed 
circuit boards. 
(2) During fiscal years 2028 through 2032, the 
greater of— 
(A) 75 percent; or 
(B) 100 percent, if the Secretary of Defense 
has determined that suppliers in covered coun-
tries are capable of supplying 100 percent of De-
partment of Defense requirements for printed 
circuit boards. 
(3) Beginning in fiscal year 2033, 100 percent. 
(c) REMEDIATION.— 
(1) IN GENERAL.—In the event that a contractor 
or subcontractor is unable to make the certification 
required under subsection (a), the Secretary may ac-
cept covered printed circuit boards from such con-
tractor or subcontractor for up to one year while re-
quiring the contractor to complete a remediation 
plan. Such a plan shall be submitted to the congres-
sional defense committees and shall require the con-
tractor or subcontractor that failed to make the cer-
tification required under subsection (a) to— 
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(A) audit its supply chain to identify any 
areas of security vulnerability and noncompli-
ance with section 224 of the National Defense 
Authorization Act for Fiscal Year 2020 (Public 
Law 116–92); and 
(B) meet the requirements of subsection (a) 
within one year after the initial missed certifi-
cation deadline. 
(2) RESTRICTION.—No contractor or subcon-
tractor that has supplied covered printed circuit 
boards while under a remediation plan shall be eligi-
ble to enter into another remediation plan under sub-
section (c) for a period of five years. 
(d) WAIVER.—The Secretary of Defense may waive the 
requirement under subsection (a) with respect to a con-
tractor or subcontractor if the Secretary determines that— 
(1) there are no significant national security 
concerns regarding counterfeiting, quality, or unau-
thorized access created by accepting covered printed 
circuit boards under such waiver; and 
(2) the contractor is otherwise in compliance 
with all relevant cybersecurity provisions relating to 
members of the defense industrial base, including sec-
tion 224 of the National Defense Authorization Act 
for Fiscal Year 2020 (Public Law 116–92). 
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(e) AVAILABILITY EXCEPTION.—Subsection (a) shall 
not apply to the extent that the Secretary of Defense or the 
Secretary of the military department concerned determines 
that covered printed circuit boards of satisfactory quality 
and sufficient quantity, in the required form, cannot be pro-
cured as and when needed from covered countries. 
(f) DEFINITIONS.—In this section: 
(1) COVERED
COUNTRY.—The term ‘‘covered 
country’’ means— 
(A) the United States; or 
(B) a foreign country whose government has 
a memorandum of understanding or agreement 
with the United States that— 
(i) where applicable, complies with the 
requirements of section 36 of the Arms Ex-
port Control Act (22 U.S.C. 2776) and with 
section 2457 of title 10, United States Code; 
and 
(ii) either— 
(I) requires the United States to 
purchase supplies from foreign sources 
for the purposes of offsetting sales made 
the by United States Government or 
United States firms under approved 
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programs serving defense requirements; 
or 
(II) under which the United 
States and such government agree to 
remove barriers to purchase supplies 
produced in such foreign country or 
services performed by sources of such 
foreign country. 
(2) COVERED PRINTED CIRCUIT BOARD.— 
(A) IN GENERAL.—The term ‘‘covered print-
ed circuit board’’ means any printed circuit 
board that is— 
(i) a product that is not a commercial 
product (as defined in section 103 of title 
41, United States Code); or 
(ii) a commercial product (as defined 
in section 103 of title 41, United States 
Code), other than a commercially available 
off-the-shelf item (as defined in section 104 
of title 41, United States Code) not de-
scribed in subparagraph (B). 
(B) COMMERCIALLY
AVAILABLE
OFF-THE- 
SHELF
ITEMS
DESCRIBED.—The commercially 
available off-the-shelf items (as defined in section 
104 of title 41, United States Code) described in 
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this subparagraph are such items that are ac-
quired under a contract with an award value 
that is greater than the micro-purchase threshold 
under section 2338 of title 10, United States 
Code, for use as an integral component in a sys-
tem designed for— 
(i) telecommunications, including data 
communications and fifth-generation cel-
lular communications; 
(ii) data storage; 
(iii) medical applications; 
(iv) networking; 
(v) computing; 
(vi) radar; 
(vii) munitions; or 
(viii) any other system that the Sec-
retary of Defense determines should be cov-
ered under this section. 
(3) SUBCONTRACTOR.—The term ‘‘subcontractor’’ 
includes subcontractors at any tier. 
SEC. 827. REPORT ON USE OF DOMESTIC NONAVAILABILITY 
DETERMINATIONS. 
Not later than September 30, 2021, and annually 
thereafter, the Secretary of Defense shall submit a report 
to congressional defense committees— 
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(1) describing in detail the use of any waiver or 
exception by the Department of Defense to the require-
ments of chapter 83 of title 41, United States Code, 
or section 2533a of title 10, United States Code, relat-
ing to domestic nonavailability determinations; 
(2) specifying the type of waiver or exception 
used; and 
(3) providing an assessment of the impact on the 
use of such waivers or exceptions due to the COVID– 
19 pandemic and associated challenges with invest-
ments in domestic sources. 
SEC. 828. SENSE OF CONGRESS ON THE PROHIBITION ON 
CERTAIN TELECOMMUNICATIONS AND VIDEO 
SURVEILLANCE SERVICES OR EQUIPMENT. 
(a) FINDINGS.—Congress finds the following: 
(1) Prohibiting the use of telecommunications 
and video surveillance products or services from cer-
tain Chinese entities within the Federal Government’s 
supply chain is essential to our national security. 
(2) Section 889 of the John S. McCain National 
Defense Authorization Act for Fiscal Year 2019 (Pub-
lic Law 115–232; 132 Stat. 1917; 41 U.S.C. note 
prec. 3901) restricts Federal agencies from procuring, 
contracting with entities that use, or funding the pur-
chase of certain telecommunications products of Chi-
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nese companies determined by Congress to pose a sub-
stantial threat to the security of our communication 
infrastructure. 
(3) Specifically, section 889(a)(1)(B) of such Act, 
effective August 13, 2020, will prohibit Federal agen-
cies from entering into, extending, or renewing a con-
tract with an entity that uses covered telecommuni-
cations and video surveillance equipment or services 
from 
designated 
Chinese 
companies, 
including 
Huawei and ZTE, in their supply chains. 
(4) As of July 1, 2020, the Federal Acquisition 
Regulatory Council has yet to release a draft rule for 
public comment on the implementation of the prohibi-
tions described in section 889(a)(1)(B) of such Act, 
leaving Federal agencies and contractors that provide 
equipment and services to the Federal Government 
without implementation guidance necessary to ade-
quately plan for or comply with the prohibitions. 
(5) Belated, and then hurried, implementation of 
this critical prohibition puts at risk the Federal Gov-
ernment’s ability to acquire essential goods and serv-
ices and increases vulnerability in the supply chain 
through inconsistent implementation. 
(6) A senior Department of Defense leader testi-
fied on June 10, 2020, that, ‘‘I am very concerned 
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about being able to implement [the prohibition] in 
August, as well as totally comply within two years 
. . . I believe we need more time’’. 
(7) Subsequent to the enactment of the John S. 
McCain National Defense Authorization Act for Fis-
cal Year 2019 (Public Law 115–232), Congress estab-
lished the Federal Acquisition Security Council 
(FASC)—comprised of senior officials from the Office 
of Management and Budget, General Services Admin-
istration, Department of Defense, Department of 
Homeland Security and the intelligence community— 
to streamline the Federal Government’s supply chain 
risk management efforts and develop criteria and 
processes for supply chain information sharing 
among executive agencies. 
(b) SENSE OF CONGRESS.—It is the sense of Congress 
that— 
(1) successful implementation of the prohibition 
on using or procuring certain telecommunications 
and video surveillance equipment under section 889 of 
the John S. McCain National Defense Authorization 
Act for Fiscal Year 2019 (Public Law 115–232; 132 
Stat. 1917; 41 U.S.C. note prec. 3901) is critical to 
protecting the supply chain of the Federal Govern-
ment, and Federal agencies should draw upon the ex-
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pert resources available (such as the Federal Acquisi-
tion Security Council established under subchapter 
III of chapter 13 of title 41, United States Code) to 
ensure implementation of such prohibition is done in 
a comprehensive and deliberative manner; and 
(2) the Federal Acquisition Regulatory Council 
shall ensure successful implementation of such prohi-
bition by providing sufficient time for public com-
ment and review of any related rulemaking. 
Subtitle D—Small Business Matters 
SEC. 831. TRANSFER OF VERIFICATION OF SMALL BUSINESS 
CONCERNS OWNED AND CONTROLLED BY 
VETERANS OR SERVICE-DISABLED VETERANS 
TO THE SMALL BUSINESS ADMINISTRATION. 
(a) TRANSFER DATE.—For purposes of this section, 
the term ‘‘transfer date’’ means the date that is 2 years after 
the date of enactment of this section, except that such date 
may be extended an unlimited number of times by a period 
of not more than 6 months if the Administrator of the Small 
Business Administration and the Secretary of Veterans Af-
fairs jointly issue a notice to Congress and the Law Revi-
sion Counsel of the House of Representatives containing— 
(1) a certification that such extension is nec-
essary; 
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(2) the rationale for and the length of such exten-
sion; and 
(3) a plan to comply with the requirements of 
this section within the timeframe of the extension. 
(b) AMENDMENT TO AND TRANSFER OF VETERAN- 
OWNED AND SERVICE-DISABLED VETERAN-OWNED BUSI-
NESS DATABASE.— 
(1) AMENDMENT OF VETERAN-OWNED AND SERV-
ICE-DISABLED
VETERAN-OWNED
BUSINESS
DATA-
BASE.—Effective on the transfer date, section 8127 of 
title 38, United States Code, is amended— 
(A) in subsection (e)— 
(i) by striking ‘‘the Secretary’’ and in-
serting ‘‘the Administrator’’; and 
(ii) by striking ‘‘subsection (f)’’ and 
inserting ‘‘section 36 of the Small Business 
Act’’; 
(B) in subsection (f)— 
(i) by striking ‘‘the Secretary’’ each 
place such term appears, other than in the 
last place such term appears under para-
graph (2)(A), and inserting ‘‘the Adminis-
trator’’; 
(ii) in paragraph (1), by striking 
‘‘small business concerns owned and con-
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trolled by veterans with service-connected 
disabilities’’ each place such term appears 
and inserting ‘‘small business concerns 
owned and controlled by service-disabled 
veterans’’; 
(iii) in paragraph (2)— 
(I) in subparagraph (A), by strik-
ing ‘‘to access’’ and inserting ‘‘to ob-
tain from the Secretary of Veterans Af-
fairs’’; and 
(II) by striking subparagraph (B) 
and inserting the following: 
‘‘(B) For purposes of this subsection— 
‘‘(i) the Secretary of Veterans Affairs shall— 
‘‘(I) verify an individual’s status as a vet-
eran or a service-disabled veteran; and 
‘‘(II) establish a system to permit the Ad-
ministrator to access, but not alter, such 
verification; and 
‘‘(ii) the Administrator shall verify— 
‘‘(I) the status of a business concern as a 
small business concern; and 
‘‘(II) the ownership and control of such 
business concern. 
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‘‘(C) The Administrator may not certify a concern 
under subsection (b) or section 36A if the Secretary of Vet-
erans Affairs cannot provide the verification described 
under subparagraph (B)(i)(I).’’; 
(iv) by striking paragraphs (4) and 
(7); 
(v) by redesignating paragraphs (5) 
and (6) as paragraphs (4) and (5), respec-
tively, and redesignating paragraph (8) as 
paragraph (6); 
(vi) in paragraph (4), as so redesig-
nated, by striking ‘‘The Secretary’’ and in-
serting ‘‘The Administrator’’; and 
(vii) in paragraph (6), as so redesig-
nated— 
(I) in subparagraph (A)— 
(aa) by striking ‘‘verify the 
status of the concern as a small 
business concern or the ownership 
or control of the concern’’ and in-
serting ‘‘certify the status of the 
concern as a small business con-
cern owned and controlled by vet-
erans (under section 36A) or a 
small business concern owned and 
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controlled by service-disabled vet-
erans (under section 36(g))’’; and 
(bb) 
by 
striking 
‘‘verification’’ and inserting ‘‘cer-
tification’’; 
(II) in subparagraph (B)— 
(aa) in clause (i), by striking 
‘‘small business concern owned 
and controlled by veterans with 
service-connected disabilities’’ and 
inserting ‘‘small business concern 
owned and controlled by service- 
disabled veterans’’; and 
(bb) in clause (ii)— 
(AA) by amending sub-
clause (I) to read as follows: 
‘‘(I) the Secretary of Veterans Affairs or the 
Administrator; or’’; and 
(BB) in subclause (II), 
by striking ‘‘the contracting 
officer of the Department’’ 
and inserting ‘‘the applicable 
contracting officer’’; and 
(III) by striking subparagraph 
(C); 
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(C) by redesignating subsection (k) (relating 
to definitions) as subsection (l); 
(D) by inserting after subsection (j) (relat-
ing to annual reports) the following: 
‘‘(k) 
ANNUAL
TRANSFER
FOR
CERTIFICATION 
COSTS.—For each fiscal year, the Secretary of Veterans Af-
fairs shall reimburse the Administrator in an amount nec-
essary to cover any cost incurred by the Administrator for 
certifying small business concerns owned and controlled by 
veterans that do not qualify as small business concerns 
owned and controlled by service-disabled veterans for the 
Secretary for purposes of this section and section 8128 of 
this title. The Administrator is authorized to accept such 
reimbursement. The amount of any such reimbursement 
shall be determined jointly by the Secretary and the Admin-
istrator and shall be provided from fees collected by the Sec-
retary under multiple-award schedule contracts. Any dis-
agreement about the amount shall be resolved by the Direc-
tor of the Office of Management and Budget.’’; and 
(E) subsection (l) (relating to definitions), 
as so redesignated, by adding at the end the fol-
lowing: 
‘‘(4) The term Administrator means the Admin-
istrator of the Small Business Administration.’’. 
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(2) TRANSFER OF REQUIREMENTS RELATING TO 
DATABASE TO THE SMALL BUSINESS ACT.—Effective 
on the transfer date, subsection (f) of section 8127 of 
title 38, United States Code (as amended by para-
graph (1)), is transferred to section 36 of the Small 
Business Act (15 U.S.C. 657f), inserted so as to ap-
pear after subsection (e). 
(3) CONFORMING AMENDMENTS.—The following 
amendments shall take effect on the transfer date: 
(A) 
SMALL
BUSINESS
ACT.—Section 
3(q)(2)(C)(i)(III) of the Small Business Act (15 
U.S.C. 632(q)(2)(C)(i)(III)) is amended by strik-
ing ‘‘section 8127(f) of title 38, United States 
Code’’ and inserting ‘‘section 36’’. 
(B) TITLE
38.—Section 8128 of title 38, 
United States Code, is amended by striking ‘‘sec-
tion 8127(f) of this title’’ and inserting ‘‘section 
36 of the Small Business Act’’. 
(c) ADDITIONAL REQUIREMENTS FOR DATABASE.— 
(1) ADMINISTRATION ACCESS TO DATABASE BE-
FORE THE TRANSFER DATE.—During the period be-
tween the date of the enactment of this section and the 
transfer date, the Secretary of Veterans Affairs shall 
provide the Administrator of the Small Business Ad-
ministration with access to the contents of the data-
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585 
base described under section 8127(f) of title 38, 
United States Code. 
(2) RULE OF CONSTRUCTION.—Nothing in this 
section or the amendments made by this section may 
be construed— 
(A) as prohibiting the Administrator of the 
Small Business Administration from combining 
the contents of the database described under sec-
tion 8127(f) of title 38, United States Code, with 
other databases maintained by the Administra-
tion; or 
(B) as requiring the Administrator to use 
any system or technology related to the database 
described under section 8127(f) of title 38, 
United States Code, on or after the transfer date 
to comply with the requirement to maintain a 
database under subsection (f) of section 36 of the 
Small Business Act (as transferred pursuant to 
subsection (b)(2) of this section). 
(3) RECOGNITION OF THE ISSUANCE OF JOINT 
REGULATIONS.—The date specified under section 
1832(e) of the National Defense Authorization Act for 
Fiscal Year 2017 (15 U.S.C. 632 note) shall be 
deemed to be October 1, 2018. 
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586 
(d) PROCUREMENT PROGRAM FOR SMALL BUSINESS 
CONCERNS OWNED
AND CONTROLLED
BY SERVICE-DIS-
ABLED VETERANS.— 
(1) PROCUREMENT PROGRAM FOR SMALL BUSI-
NESS CONCERNS OWNED AND CONTROLLED BY SERV-
ICE-DISABLED VETERANS.—Section 36 of the Small 
Business Act (15 U.S.C. 657f) is amended— 
(A) by striking subsections (d) and (e); 
(B) by redesignating subsections (a), (b), 
and (c) as subsections (c), (d), and (e) respec-
tively; 
(C) by inserting before subsection (c), as so 
redesignated, the following: 
‘‘(a) CONTRACTING OFFICER DEFINED.—For purposes 
of this section, the term ‘contracting officer’ has the mean-
ing given such term in section 2101 of title 41, United 
States Code. 
‘‘(b) CERTIFICATION OF SMALL BUSINESS CONCERNS 
OWNED
AND CONTROLLED
BY SERVICE-DISABLED VET-
ERANS.—With respect to a procurement program or pref-
erence established under this Act that applies to prime con-
tractors, the Administrator shall— 
‘‘(1) certify the status of the concern as a ‘small 
business concern owned and controlled by service-dis-
abled veterans’; and 
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587 
‘‘(2) require the periodic recertification of such 
status.’’; 
(D) in subsection (d), as so redesignated, by 
striking ‘‘and that the award can be made at a 
fair market price’’ and inserting ‘‘, that the 
award can be made at a fair market price, and 
if each concern is certified by the Administrator 
as a small business concern owned and controlled 
by service-disabled veterans’’; and 
(E) by adding at the end the following: 
‘‘(g) 
CERTIFICATION
REQUIREMENT.—Notwith-
standing subsection (c), a contracting officer may only 
award a sole source contract to a small business concern 
owned and controlled by service-disabled veterans or a con-
tract on the basis of competition restricted to small business 
concerns owned and controlled by service-disabled veterans 
if such a concern is certified by the Administrator as a 
small business concern owned and controlled by service-dis-
abled veterans. 
‘‘(h) ENFORCEMENT; PENALTIES.— 
‘‘(1) VERIFICATION
OF
ELIGIBILITY.—In car-
rying out this section, the Administrator shall estab-
lish procedures relating to— 
‘‘(A) the filing, investigation, and disposi-
tion by the Administration of any challenge to 
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588 
the eligibility of a small business concern to re-
ceive assistance under this section (including a 
challenge, filed by an interested party, relating 
to the veracity of a certification made or infor-
mation provided to the Administration by a 
small business concern under subsection (b)); and 
‘‘(B) verification by the Administrator of 
the accuracy of any certification made or infor-
mation provided to the Administration by a 
small business concern under subsection (b). 
‘‘(2) EXAMINATIONS.— 
‘‘(A) EXAMINATION
OF
APPLICANTS.—The 
procedures established under paragraph (1) shall 
provide for a program of examinations by the 
Administrator of any small business concern 
making a certification or providing information 
to the Administrator under subsection (b), to de-
termine the veracity of any statements or infor-
mation provided as part of such certification or 
otherwise provided under subsection (b). 
‘‘(B) EXAMINATION
OF
CERTIFIED
CON-
CERNS.—The procedures established under para-
graph (1) shall provide for the examination of 
risk-based samples of small business concerns 
certified under subsection (b), or of any small 
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589 
business concern that the Administrator believes 
poses a particular risk or with respect to which 
the Administrator receives specific and credible 
information alleging that the small business con-
cern no longer meets eligibility requirements to 
be certified as a small business concern owned 
and controlled by service-disabled veterans. 
‘‘(3) PENALTIES.—In addition to the penalties 
described in section 16(d), any small business concern 
that is determined by the Administrator to have mis-
represented the status of that concern as a small busi-
ness concern owned and controlled by service-disabled 
veterans for purposes of subsection (b), shall be subject 
to— 
‘‘(A) section 1001 of title 18, United States 
Code; 
‘‘(B) sections 3729 through 3733 of title 31, 
United States Code; and 
‘‘(C) section 8127(g) of title 38, United 
States Code. 
‘‘(i) PROVISION OF DATA.—Upon the request of the Ad-
ministrator, the head of any Federal department or agency 
shall promptly provide to the Administrator such informa-
tion as the Administrator determines to be necessary to 
carry out subsection (b) or to be able to certify the status 
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590 
of the concern as a small business concern owned and con-
trolled by veterans under section 36A.’’. 
(2) PENALTIES FOR MISREPRESENTATION.—Sec-
tion 16 of the Small Business Act (15 U.S.C. 645) is 
amended— 
(A) in subsection (d)(1)— 
(i) by striking ‘‘, a’’ and inserting ‘‘, 
a ‘small business concern owned and con-
trolled by service-disabled veterans’, a ‘small 
business concern owned and controlled by 
veterans’, a’’; and 
(ii) in paragraph (A), by striking ‘‘9, 
15, or 31’’ and inserting ‘‘8, 9, 15, 31, 36, 
or 36A’’; and 
(B) in subsection (e), by striking ‘‘, a’’ and 
inserting ‘‘, a ‘small business concern owned and 
controlled by service-disabled veterans’, a ‘small 
business concern owned and controlled by vet-
erans’, a’’. 
(e) CERTIFICATION FOR SMALL BUSINESS CONCERNS 
OWNED
AND CONTROLLED
BY VETERANS.—The Small 
Business Act (15 U.S.C. 631 et seq.) is amended by insert-
ing after section 36 the following new section: 
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591 
‘‘SEC. 36A. CERTIFICATION OF SMALL BUSINESS CONCERNS 
OWNED AND CONTROLLED BY VETERANS. 
‘‘(a) IN GENERAL.—With respect to the program estab-
lished under section 8127 of title 38, United States Code, 
the Administrator shall— 
‘‘(1) certify the status of the concern as a ‘small 
business concern owned and controlled by veterans’; 
and 
‘‘(2) require the periodic recertification of such 
status. 
‘‘(b) ENFORCEMENT; PENALTIES.— 
‘‘(1) VERIFICATION
OF
ELIGIBILITY.—In car-
rying out this section, the Administrator shall estab-
lish procedures relating to— 
‘‘(A) the filing, investigation, and disposi-
tion by the Administration of any challenge to 
the eligibility of a small business concern to re-
ceive assistance under this section (including a 
challenge, filed by an interested party, relating 
to the veracity of a certification made or infor-
mation provided to the Administration by a 
small business concern under subsection (a)); 
and 
‘‘(B) verification by the Administrator of 
the accuracy of any certification made or infor-
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592 
mation provided to the Administration by a 
small business concern under subsection (a). 
‘‘(2) EXAMINATION OF APPLICANTS.—The proce-
dures established under paragraph (1) shall provide 
for a program of examinations by the Administrator 
of any small business concern making a certification 
or providing information to the Administrator under 
subsection (a), to determine the veracity of any state-
ments or information provided as part of such certifi-
cation or otherwise provided under subsection (a). 
‘‘(3) PENALTIES.—In addition to the penalties 
described in section 16(d), any small business concern 
that is determined by the Administrator to have mis-
represented the status of that concern as a small busi-
ness concern owned and controlled by veterans for 
purposes of subsection (a), shall be subject to— 
‘‘(A) section 1001 of title 18, United States 
Code; 
‘‘(B) sections 3729 through 3733 of title 31, 
United States Code; and 
‘‘(C) section 8127(g) of title 38, United 
States Code.’’. 
(f) STATUS
OF SELF-CERTIFIED SMALL BUSINESS 
CONCERNS OWNED
AND CONTROLLED
BY SERVICE-DIS-
ABLED VETERANS.— 
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593 
(1) IN
GENERAL.—Notwithstanding any other 
provision of law, any small business concern that self- 
certified as a small business concern owned and con-
trolled by service-disabled veterans shall— 
(A) if the concern files a certification appli-
cation with the Administrator of the Small Busi-
ness Administration before the end of the 1-year 
period beginning on the transfer date, maintain 
such self-certification until the Administrator 
makes a determination with respect to such cer-
tification; and 
(B) if the concern does not file such a cer-
tification application before the end of the 1-year 
period beginning on the transfer date, lose, at the 
end of such 1-year period, any self-certification 
of the concern as a small business concern owned 
and controlled by service-disabled veterans. 
(2) NON-APPLICABILITY
TO
DEPARTMENT
OF 
VETERANS AFFAIRS.—Paragraph (1) shall not apply 
to participation in contracts (including subcontracts) 
with the Department of Veterans Affairs. 
(3) NOTICE.—The Administrator shall notify 
any small business concern that self-certified as a 
small business concern owned and controlled by serv-
ice-disabled veterans about the requirements of this 
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594 
section, including the transfer date and any extension 
of such transfer date made pursuant to subsection (a), 
and make such notice publicly available, on— 
(A) the date of the enactment of this section; 
and 
(B) the date on which an extension de-
scribed under subsection (a) is approved. 
(g) TRANSFER OF THE CENTER FOR VERIFICATION 
AND EVALUATION OF THE DEPARTMENT OF VETERANS AF-
FAIRS TO THE SMALL BUSINESS ADMINISTRATION.— 
(1) ABOLISHMENT.—The Center for Verification 
and Evaluation of the Department of Veterans Affairs 
defined under section 74.1 of title 38, Code of Federal 
Regulations, is abolished effective on the transfer date. 
(2) TRANSFER
OF
FUNCTIONS.—All functions 
that, immediately before the effective date of this sub-
section, were functions of the Center for Verification 
and Evaluation shall— 
(A) on the date of enactment of this section, 
be functions of both the Center for Verification 
and Evaluation and the Small Business Admin-
istration, except that the Small Business Admin-
istration shall not have any authority to carry 
out any verification functions of the Center for 
Verification and Evaluation; and 
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595 
(B) on the transfer date, be functions of the 
Small Business Administration. 
(3) TRANSFER OF ASSETS.—So much of the per-
sonnel, property, and records employed, used, held, 
available, or to be made available in connection with 
a function transferred under this subsection shall be 
available to the Small Business Administration at 
such time or times as the President directs for use in 
connection with the functions transferred. 
(4) REFERENCES.—Any reference in any other 
Federal law, Executive order, rule, regulation, or dele-
gation of authority, or any document of or pertaining 
to a function of the Center for Verification and Eval-
uation that is transferred under this section is 
deemed, after the transfer date, to refer to the Small 
Business Administration. 
(h) REPORT.—Not later than the end of the 1-year pe-
riod beginning on the date of the enactment of this section 
and every 6 months thereafter until the transfer date, the 
Administrator of the Small Business Administration and 
Secretary of Veterans Affairs shall jointly issue a report to 
the Committees on Appropriations, Small Business, and 
Veterans’ Affairs of the House of Representatives and the 
Committees on Appropriations, Small Business and Entre-
preneurship, and Veterans’ Affairs of the Senate on the 
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596 
planning for the transfer of functions and property required 
under this section and the amendments made by this section 
on the transfer date. Such report shall include— 
(1) whether and how the verification database 
and operations of the Center for Verification and 
Evaluation of the Department of Veterans Affairs will 
be incorporated into the existing certification data-
base of the Small Business Administration; 
(2) projections for the numbers and timing, in 
terms of fiscal year, of— 
(A) already verified concerns that will come 
up for recertification; and 
(B) self-certified concerns that are expected 
to apply for certification; 
(3) an explanation of how outreach to veteran 
service organizations, the service-disabled veteran- 
owned and veteran-owned small business community, 
and other stakeholders will be conducted; and 
(4) other pertinent information determined by 
the Administrator and the Secretary. 
SEC. 832. EQUITABLE ADJUSTMENTS TO CERTAIN CON-
STRUCTION CONTRACTS. 
(a) IN GENERAL.—The Small Business Act (15 U.S.C. 
631 et seq.) is amended by inserting after section 15 the 
following new section: 
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597 
‘‘SEC. 15A. EQUITABLE ADJUSTMENTS TO CONSTRUCTION 
CONTRACTS. 
‘‘(a) REQUEST FOR AN EQUITABLE ADJUSTMENT.—A 
small business concern performing a construction contract 
that was awarded by an agency may submit a request for 
an equitable adjustment to the contracting officer of such 
agency if the contracting officer directs a change in the 
work within the general scope of the contract without the 
agreement of the small business concern. Such request 
shall— 
‘‘(1) be timely made pursuant to the terms of the 
contract; and 
‘‘(2) comply with Federal regulations regarding 
equitable adjustments, including specifying additional 
costs resulting from such change in the work within 
the general scope of the contract. 
‘‘(b) AMOUNT.—Upon receipt of a request for equitable 
adjustment under subsection (a), the agency shall provide 
to the small business concern an interim partial payment 
in an amount that is at least 50 percent of the costs identi-
fied in the request for equitable adjustment under subsection 
(a)(2). 
‘‘(c) LIMITATION.—Any interim partial payment 
made under this section shall not be deemed to be an action 
to definitize the request for an equitable adjustment. 
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598 
‘‘(d) FLOW-DOWN
OF INTERIM PARTIAL PAYMENT 
AMOUNTS.—A small business concern that requests an equi-
table adjustment under this section shall pay to a first tier 
subcontractor or supplier the portion of the interim partial 
payment received that is attributable to the increased costs 
of performance incurred by the first tier subcontractor or 
supplier due to the change in the work within the general 
scope of the contract. A subcontractor or supplier at any 
tier that receives a portion of an interim partial payment 
under this section shall pay its subcontractor or supplier 
the appropriate portion of such payment.’’. 
(b) IMPLEMENTATION.—The Administrator of the 
Small Business Administration shall implement the re-
quirements of this section not later than the first day of 
the first full fiscal year beginning after the date of the enact-
ment of this Act. 
SEC. 833. EXEMPTION OF CERTAIN CONTRACTS AWARDED 
TO SMALL BUSINESS CONCERNS FROM CAT-
EGORY MANAGEMENT REQUIREMENTS. 
(a) IN GENERAL.—The Small Business Act is amend-
ed— 
(1) by redesignating section 49 as section 50; 
and 
(2) by inserting after section 48 the following 
new section: 
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599 
‘‘SEC. 49. EXEMPTION OF CERTAIN CONTRACTS FROM CAT-
EGORY MANAGEMENT REQUIREMENTS. 
‘‘(a) IN GENERAL.—A contract awarded under section 
8(a), 8(m), 31, or 32 that is classified as tier 0— 
‘‘(1) shall be exempt from the procedural require-
ments of any Federal rule or guidance on category 
management or successor strategies for contract con-
solidation; and 
‘‘(2) may not be included when measuring the 
attainment of any goal or benchmark established 
under any Federal rule or guidance on category man-
agement or successor strategies for contract consolida-
tion, unless the inclusion of such contract aids in the 
achievement of such a goal or benchmark. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) CATEGORY MANAGEMENT.—The term ‘cat-
egory management’ has the meaning given such term 
by the Director of the Office of Management and 
Budget. 
‘‘(2) TIER 0.—The term ‘tier 0’ has the meaning 
given such term by the Director of the Office of Man-
agement and Budget with respect to the Spend Under 
Management tiered maturity model, or any successor 
model.’’. 
(b) APPLICATION.—Section 49 of the Small Business 
Act, as added by subsection (a), shall apply with respect 
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600 
to contracts entered into on or after the date of the enact-
ment of this Act. 
(c) PLAN AND REPORT.— 
(1) IN GENERAL.—Not later than 120 days after 
the date of the enactment of this Act, the Director of 
the Office of Management and Budget shall submit to 
Congress a report including a plan to increase the 
participation of small business concerns in agency- 
wide or Government-wide contracts (including best in 
class designations as defined in section 15(h)(4)(B)). 
Such plan shall include— 
(A) strategies to increase the amount and 
frequency of opportunities for small business con-
cerns to participate in agency-wide or Govern-
ment-wide contracts; 
(B) strategies to ease or eliminate require-
ments that impede such participation of small 
business concerns; and 
(C) a specific goal for the number of small 
business concerns participating in agency-wide 
or Government-wide contracts and a timeline to 
achieve such goal. 
(2) IMPLEMENTATION.—Not later than 60 days 
after the submission of the report required under 
paragraph (1), the Director of the Office of Manage-
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601 
ment and Budget shall implement the plan contained 
in such report. 
(d) RULEMAKING.—Not later than 90 days after the 
date of the enactment of this Act, the Federal Acquisition 
Regulation shall be revised to carry out this Act and the 
amendment made by this Act. 
SEC. 834. REPORT ON ACCELERATED PAYMENTS TO CER-
TAIN SMALL BUSINESS CONCERNS. 
(a) REPORT.—Not later than 3 months after the date 
of the enactment of this section, the head of each Federal 
agency shall submit to Congress a report on the timeliness 
of payments made to a covered prime contractor. Such re-
port shall include— 
(1) the date on which the Federal agency began 
providing accelerated payments in accordance with 
section 2307(a)(2) of title 10, United States Code, or 
paragraphs (10) and (11) of section 3903(a) of title 
31, United States Code, as applicable, to a covered 
prime contractor; 
(2) of contracts to which such sections apply, the 
amount and percentage of covered contracts with ac-
celerated payment terms in accordance with such sec-
tions; and 
(3) whether and on what date the agency discon-
tinued implementation of the Office of Management 
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and Budget Circular M–11–32 titled ‘‘Accelerating 
Payments to Small Businesses for Goods and Serv-
ices’’ (issued September 14, 2011). 
(b) DEFINITIONS.—In this section: 
(1) COVERED
PRIME
CONTRACTOR.—The term 
‘‘covered prime contractor’’ means— 
(A) a prime contractor (as defined in sec-
tion 8701 of title 41) that is a small business 
concern (as defined in section 3 of the Small 
Business Act (15 U.S.C. 632)); and 
(B) a prime contractor that subcontracts 
with a small business concern. 
(2) COVERED
CONTRACT.—The term ‘‘covered 
contract’’ means a contract entered into by a covered 
prime contractor— 
(A) on or after August 13, 2018, with re-
spect to a contract entered into the head of an 
agency (as defined in section 2302 of title 10, 
United States Code); or 
(B) on or after December 20, 2019, with re-
spect to a contract entered into with the head of 
an agency (as defined in section 3901 of title 31, 
United States Code). 
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(3) FEDERAL AGENCY.—The term ‘‘Federal agen-
cy’’ has the meaning given ‘‘agency’’ in section 551(a) 
of title 5, United States Code. 
Subtitle E—Other Matters 
SEC. 841. MODIFICATIONS TO SUPERVISION AND AWARD OF 
CERTAIN CONTRACTS. 
(a) 
SUPERVISION
OF
MILITARY
CONSTRUCTION 
PROJECTS.—Section 2851 of title 10, United States Code, 
is amended— 
(1) in subsection (c)(1)— 
(A) by inserting ‘‘or appropriated’’ after 
‘‘funds authorized’’ each place such term ap-
pears; and 
(B) in subparagraph (E), by inserting ‘‘, 
Facilities Sustainment, Restoration, and Mod-
ernization (FSRM) project,’’ after ‘‘military con-
struction project’’; and 
(2) in subsection (c)(2)— 
(A) by inserting ‘‘, deadline for bid submis-
sions,’’ after ‘‘solicitation date’’; 
(B) by inserting ‘‘(including the address of 
such recipient)’’ after ‘‘contract recipient’’; and 
(C) by adding at the end the following new 
subparagraphs: 
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‘‘(H) Any subcontracting plan required under 
paragraph (4) or (5) of section 8(d) of the Small 
Business Act (15 U.S.C. 637(d)) for the project sub-
mitted by the contract recipient to the Secretary of 
Defense. 
‘‘(I) A detailed written statement describing and 
justifying any exception applied or waiver granted 
under— 
‘‘(i) chapter 83 of title 41; 
‘‘(ii) section 2533a of this title; or 
‘‘(iii) section 2533b of this title.’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(4) The information required to be published on the 
Internet website under subsection (c) shall constitute a 
record for the purposes of Chapter 21, 29, 31, and 33 of 
title 44.’’. 
(b) REQUIREMENTS RELATING TO THE AWARD OF 
COVERED MILITARY CONSTRUCTION CONTRACTS.— 
(1) REQUIREMENTS.—Subchapter III of chapter 
169 of title 10, United States Code, is amended by in-
serting after section 2851 the following new section: 
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‘‘§ 2851a. Requirements relating to the award of cov-
ered military construction contracts 
‘‘(a) PUBLICATION OF CERTAIN INFORMATION RELAT-
ING TO COVERED MILITARY CONSTRUCTION CONTRACTS.— 
‘‘(1) 
CONTRACTOR
REQUIREMENTS.—A 
con-
tractor that has been awarded a covered military con-
struction contract shall— 
‘‘(A) make publicly available on a website 
of the General Services Administration or the 
Small Business Administration, as applicable, 
any solicitation under that covered military con-
struction contract for a subcontract of an esti-
mated value of $250,000 or more; and 
‘‘(B) submit written notification of the 
award of the covered military construction con-
tract, and of any subcontract awarded under the 
covered military construction contract, to the rel-
evant agency of a covered State that enforces 
workers’ compensation or minimum wage laws 
in such covered State. 
‘‘(2) NOTICE.—Upon award of a covered mili-
tary construction contract with an estimated value 
greater than or equal to $2,000,000, the Secretary 
concerned shall notify any applicable Member of Con-
gress representing the covered State in which that cov-
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ered military construction contract is to be performed 
of such award in a timely manner. 
‘‘(3) FEDERAL PROCUREMENT DATA SYSTEM.— 
The Secretary of Defense shall ensure that there is a 
clear and unique indication of any covered military 
construction contract with subcontracting work of an 
estimated value of $250,000 or more in the Federal 
Procurement Data System established pursuant to 
section 1122(a)(4) of title 41 (or any successor sys-
tem). 
‘‘(b) USE OF LOCAL FIRMS AND INDIVIDUALS.— 
‘‘(1) IN GENERAL.—To the extent practicable, in 
awarding a covered military construction contract, 
the Secretary concerned shall give preference to those 
firms and individuals residing or doing business pri-
marily in the same State as, or within a 60-mile ra-
dius of, the location of the work to be performed pur-
suant to the contract. 
‘‘(2) JUSTIFICATION REQUIRED.—The Secretary 
concerned shall prepare a written justification, and 
make such justification available on the Internet site 
required under section 2851 of this title, for the 
award of any covered military construction contract 
to a firm or individual that is not described under 
paragraph (1). 
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‘‘(c) LICENSING.—A contractor and any subcontrac-
tors performing a covered military construction contract 
shall be licensed to perform the work under such contract 
in the State in which the work will be performed. 
‘‘(d) MONTHLY REPORT.—Not later than 10 days after 
the end of each month, the Secretary of Defense shall submit 
to the congressional defense committees a report identifying 
for that month the following: 
‘‘(1) Each covered military construction contract 
and each subcontract of a covered military construc-
tion contract described in subsection (a)(1)(A) award-
ed during that month. 
‘‘(2) The location of the work to be performed 
pursuant to each covered military construction con-
tract and subcontract identified pursuant to para-
graph (1). 
‘‘(3) The prime contractor and any subcon-
tractor performing each covered military construction 
contract and subcontract identified pursuant to para-
graph (1). 
‘‘(4) The estimated value of each covered mili-
tary construction contract and subcontract identified 
pursuant to paragraph (1). 
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‘‘(e) EXCLUSION OF CLASSIFIED PROJECTS.—This sec-
tion does not apply to a classified covered military con-
struction project. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) COVERED
MILITARY
CONSTRUCTION
CON-
TRACT.—The term ‘covered military construction con-
tract’ means a contract for work on a military con-
struction project, military family housing project, or 
Facilities Sustainment, Restoration, and Moderniza-
tion (FSRM) project carried out in a covered State. 
‘‘(2) COVERED STATE.—The term ‘covered State’ 
means any of the several States, the District of Co-
lumbia, the Commonwealth of Puerto Rico, Guam, 
American Samoa, the United States Virgin Islands, 
or the Commonwealth of the Northern Mariana Is-
lands. 
‘‘(3) MEMBER OF CONGRESS.—The term ‘Member 
of Congress’ has the meaning given the term in sec-
tion 2106 of title 5.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of subchapter III of chapter 
169 of title 10, United States Code, is amended by in-
serting after the item relating to section 2851 the fol-
lowing new item: 
‘‘2851a. Requirements relating to the award of covered military construction con-
tracts.’’. 
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(3) APPLICABILITY.—Section 2851a of title 10, 
United States Code, as added by paragraph (1), shall 
apply with respect to a covered military construction 
contract, as defined in such section, entered into on 
or after the date of the enactment of this Act. 
(c) SMALL BUSINESS CREDIT
FOR LOCAL BUSI-
NESSES.—Section 15 of the Small Business Act (15 U.S.C. 
644) is amended by adding at the end the following new 
subsection— 
‘‘(y) SMALL BUSINESS CREDIT
FOR LOCAL BUSI-
NESSES.— 
‘‘(1) CREDIT
FOR
MEETING
SUBCONTRACTING 
GOALS.—If a prime contractor awards a subcontract 
(at any tier) to a small business concern that has its 
principal office located in the same State as, or with-
in a 60-mile radius of, the location of the work to be 
performed pursuant to the contract of the prime con-
tractor, the value of the subcontract shall be doubled 
for purposes of determining compliance with the goals 
for procurement contracts under subsection (g)(1)(A) 
during such period. 
‘‘(2) REPORT.—Along with the report required 
under subsection (h)(1), the head of each Federal 
agency shall submit to the Administrator, and make 
publicly available on the scorecard described in sec-
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610 
tion 868(b) of the National Defense Authorization Act 
for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 
933; 15 U.S.C. 644 note), an analysis of the number 
and dollar amount of subcontracts awarded pursuant 
to paragraph (1) for each fiscal year of the period de-
scribed in such paragraph.’’. 
SEC. 842. AMENDMENTS TO SUBMISSIONS TO CONGRESS 
RELATING TO CERTAIN FOREIGN MILITARY 
SALES. 
Section 887(b) of the National Defense Authorization 
Act for Fiscal Year 2018 (Public Law 115–91; 22 U.S.C. 
2761 note) is amended— 
(1) by striking ‘‘the Secretary shall’’ each place 
it appears and inserting ‘‘the Secretary, in consulta-
tion with the Secretary of State, shall’’; 
(2) in paragraph (1)— 
(A) by striking ‘‘December 31, 2021’’ and 
inserting ‘‘December 31, 2024’’; and 
(B) by striking ‘‘with a value’’ and all that 
follows through the ‘‘subsection (a)’’; and 
(3) in paragraph (2), by striking ‘‘December 31, 
2021’’ and inserting ‘‘December 31, 2024’’. 
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SEC. 843. REVISIONS TO REQUIREMENT TO USE FIRM 
FIXED-PRICE CONTRACTS FOR FOREIGN MILI-
TARY SALES. 
(a) IN GENERAL.—Section 830 of the National Defense 
Authorization Act for Fiscal Year 2017 (22 U.S.C. 2762 
note) is amended— 
(1) in subsection (a), by inserting ‘‘and subject 
to subsection (e)’’ after ‘‘enactment of this Act’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(e) APPLICABILITY.—The regulations prescribed pur-
suant to subsection (a) shall not apply to a foreign military 
sale for which the foreign country that is the counterparty 
to such foreign military sale has requested a modification 
to the defense service or defense article that is the subject 
of such foreign military sale that would require significant 
development work.’’; and 
(3) in subsection (c), by adding at the end the 
following new sentence: ‘‘The Secretary may not dele-
gate the authority to exercise such a waiver below the 
level of the service acquisition executive (as defined in 
section 101(a)(10) of title 10, United States Code).’’. 
(b) IMPLEMENTATION.—The Secretary of Defense 
shall— 
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(1) not later than 120 days after the date of the 
enactment of this Act, issue guidance to carry out the 
amendments made by this section; and 
(2) not later than February 1, 2021, revise the 
Department of Defense Supplement to the Federal Ac-
quisition Regulation to carry out the amendments 
made by this section. 
SEC. 844. SMALL BUSINESS INDUSTRIAL BASE RESILIENCY 
PROGRAM. 
(a) ESTABLISHMENT.—The Assistant Secretary of De-
fense for Industrial Base Policy (established under section 
902 of this Act) shall establish a program to be known as 
the ‘‘Small Business Industrial Base Resiliency Program’’ 
under which the Assistant Secretary shall enter into trans-
actions to purchase or to make a commitment to purchase 
goods or services from small business concerns as described 
in subsection (b) to respond to the COVID–19 pandemic. 
(b) USES OF TRANSACTIONS.—A transaction entered 
into pursuant to the authority under this section shall— 
(1) support the monitoring and assessment of 
small business concerns that enter into such a trans-
action; 
(2) address critical issues in the industrial base 
relating to urgent operational needs in response to the 
COVID–19 pandemic; 
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(3) support efforts to create, maintain, protect, 
expand, or restore the industrial base in response to 
the COVID–19 pandemic; and 
(4) 
as 
applicable, 
address 
supply 
chain 
vulnerabilities related to the COVID–19 pandemic for 
small business concerns that enter into such a trans-
action. 
(c) DURATION.—The term of a transaction entered into 
pursuant to the authority under this section shall be two 
years. 
(d) LIABILITIES.—With respect to any transaction en-
tered into pursuant to the authority under this section on 
or after the date of enactment of this Act, if such transaction 
imposes any contingent liability upon the United States, 
such liability shall be recorded as an obligation against 
amounts made available from the Research and Develop-
ment, Defense-Wide, Pandemic Preparedness and Resilience 
National Security Fund under section 1003 in an amount 
equal to the maximum amount of the contingency at the 
time such transaction is entered into. 
(e) REPORT.—Not later than March 1, 2021, the As-
sistant Secretary of Defense for Industrial Base Policy shall 
submit to the appropriate committees a report that includes 
the following: 
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(1) A description of any guidance or policy 
issued to carry out this section. 
(2) A description of any relevant assessments 
prepared to address critical issues in the industrial 
base relating to urgent operational needs related to 
the COVID–19 pandemic. 
(3) A description of any transaction entered into 
pursuant to the authority under this section, and the 
impact such transaction has had on the response of 
the Department of Defense to the COVID–19 pan-
demic. 
(4) A prioritized list of gaps or vulnerabilities in 
the transactions of the industrial base in which small 
business concerns participate that are related the 
COVID–19 pandemic, including— 
(A) a description of mitigation strategies 
necessary to address such gaps or vulnerabilities; 
(B) the identification of the Secretary con-
cerned or the head of the Defense Agency respon-
sible for addressing such gaps or vulnerabilities; 
and 
(C) a proposed timeline for action to ad-
dress such gaps or vulnerabilities. 
(5) Identification of each transaction designed to 
sustain specific essential technological and industrial 
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capabilities and processes of the industrial base in 
which small business concerns participate that are re-
lated to the COVID–19 pandemic. 
(6) Any other steps necessary to foster and safe-
guard the industrial base in which small business 
concerns participate due to the impact of the COVID– 
19 pandemic. 
(f) FUNDING.—The Assistant Secretary of Defense for 
Industrial Base Policy shall use amounts authorized to be 
appropriated for Research and Development, Defense-Wide, 
Pandemic Preparedness and Resilience National Security 
Fund under section 1003 to carry out the requirements of 
this section. 
(g) DEFINITIONS.—In this Act: 
(1) APPROPRIATE COMMITTEES.—The term ‘‘cov-
ered committees’’ means— 
(A) the Committees on Armed Services of 
the Senate and the House of Representatives; and 
(B) the Committee on Small Business and 
Entrepreneurship of the Senate and the Com-
mittee on Small Business of the House of Rep-
resentatives. 
(2) COVID–19 PANDEMIC.—The term ‘‘COVID– 
19 pandemic’’ means the national emergency declared 
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by the President under the National Emergencies Act 
(50 U.S.C. 1601 et seq.). 
(3) DEFENSE
AGENCY.—The term ‘‘Defense 
Agency’’ has the meaning given in section 101 of title 
10, United States Code. 
(4) SECRETARY
CONCERNED.—The term ‘‘Sec-
retary concerned’’ has the meaning given in section 
101 of title 10, United States Code. 
(5) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning given 
under section 3 of the Small Business Act (15 U.S.C. 
632)). 
SEC. 845. REQUIREMENTS RELATING TO REPORTS AND LIM-
ITATIONS ON THE AVAILABILITY OF FUNDS. 
(a) LIMITATION ON THE AVAILABILITY OF FUNDS RE-
LATING TO THE DEFENSE CIVILIAN TRAINING CORPS PRO-
GRAM.— 
(1) INITIAL PLAN AND SCHEDULE.—Beginning 
on October 1, 2020, if the Secretary of Defense has 
not submitted the plan and schedule to implement the 
Defense Civilian Training Corps program required 
under section 860(b)(1) of the National Defense Au-
thorization Act for Fiscal Year 2020 (Public Law 
116–92; 133 Stat. 1514; 10 U.S.C. 2200g note), not 
more than 25 percent of the funds specified in para-
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graph (3) may be obligated or expended until the date 
on which such plan and schedule has been submitted. 
(2) EXPANSION PLAN AND SCHEDULE.—Begin-
ning on January 1, 2021, if the Secretary of Defense 
has not submitted the expansion plan and schedule 
relating to the Defense Civilian Training Corps pro-
gram required under section 860(b)(2) of the National 
Defense Authorization Act for Fiscal Year 2020 (Pub-
lic Law 116–92; 133 Stat. 1514; 10 U.S.C. 2200g 
note), not more than 50 percent of the funds specified 
in paragraph (3) may be obligated or expended until 
the date on which such expansion plan and schedule 
has been submitted. 
(3) FUNDS SPECIFIED.—The funds specified in 
this paragraph are the funds authorized to be appro-
priated by this Act or otherwise made available for 
fiscal year 2021 for the Department of Defense for the 
following: 
(A) The immediate office of the Secretary of 
Defense. 
(B) The Office of the Under Secretary of 
Defense for Personnel and Readiness. 
(C) The Office of the Under Secretary of De-
fense for Research and Engineering. 
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(D) The Office of the Under Secretary of 
Defense for Acquisition and Sustainment. 
(b) REPORT AND LIMITATION ON THE AVAILABILITY 
OF FUNDS RELATING TO THE EXTRAMURAL ACQUISITION 
INNOVATION AND RESEARCH ACTIVITIES.— 
(1) REPORT.—Not later than October 1, 2020, 
the Under Secretary of Defense for Acquisition and 
Sustainment shall submit to the congressional defense 
committees a report— 
(A) on the establishment of the extramural 
acquisition innovation and research activities re-
quired under section 2361a of title 10, United 
States Code (as added by section 835(a)(1) of the 
National Defense Authorization Act for Fiscal 
Year 2020 (Public Law 116–92; 133 Stat. 
1494)); and 
(B) that includes the name of the Director 
appointed under section 2361a(c) of such title 
(as added by section 835(a)(1) of the National 
Defense Authorization Act for Fiscal Year 2020 
(Public Law 116–92; 133 Stat. 1494)). 
(2) LIMITATION.— 
(A) IN GENERAL.—Beginning on October 1, 
2020, if the Under Secretary of Defense for Ac-
quisition and Sustainment has not submitted the 
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report required under paragraph (1), not more 
than 25 percent of the funds specified in sub-
paragraph (B) may be obligated or expended 
until the date on which such report has been sub-
mitted. 
(B) FUNDS SPECIFIED.—The funds specified 
in this subparagraph are the funds authorized to 
be appropriated by this Act or otherwise made 
available for fiscal year 2021 for the Department 
of Defense for the following: 
(i) The immediate office of the Sec-
retary of Defense. 
(ii) The Office of the Under Secretary 
of Defense for Research and Engineering. 
(iii) The Office of the Under Secretary 
of Defense for Acquisition and Sustainment. 
(c) REPORT AND LIMITATION ON THE AVAILABILITY OF 
FUNDS RELATING TO THE ELIMINATING THE GAPS AND 
VULNERABILITIES IN THE NATIONAL TECHNOLOGY AND IN-
DUSTRIAL BASE.— 
(1) REPORT.—Not later than October 1, 2020, 
the Secretary of Defense shall submit to the congres-
sional defense committees the national security strat-
egy for national technology and industrial base re-
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quired by section 2501(a) of title 10, United States 
Code. 
(2) LIMITATION.— 
(A) IN GENERAL.—Beginning on October 1, 
2020, if the Secretary of Defense has not sub-
mitted the report required under paragraph (1), 
not more than 25 percent of the funds specified 
in subparagraph (B) may be obligated or ex-
pended until the date on which such report has 
been submitted. 
(B) FUNDS SPECIFIED.—The funds specified 
in this subparagraph are the funds authorized to 
be appropriated by this Act or otherwise made 
available for fiscal year 2021 for the Department 
of Defense for the following: 
(i) The immediate office of the Sec-
retary of Defense. 
(ii) The Office of the Under Secretary 
of Defense for Acquisition and Sustainment. 
SEC. 846. ASSESSMENT OF THE REQUIREMENTS PROC-
ESSES OF THE MILITARY DEPARTMENTS. 
(a) ASSESSMENT.—The Secretary of the military de-
partment concerned shall assess the requirements process of 
the military department and make recommendations to im-
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prove the agility and timeliness of such requirements proc-
ess for acquisition programs of the military department. 
(b) REPORT.— 
(1) IN
GENERAL.—Not later than March 31, 
2021, each Secretary of a military department shall 
submit to the congressional defense committees a re-
port on the assessment conducted pursuant to sub-
section (a) and specific plans to update the require-
ments processes of the military department concerned 
based on such assessment. 
(2) ELEMENTS.—Each report shall include an 
analysis of and recommended improvements for the 
following elements: 
(A) If appropriate, information from the re-
port required in section 800(f) of the National 
Defense Authorization Act for Fiscal Year 2020 
(Public Law 116–92). 
(B) The alignment of the requirements proc-
esses, acquisition system, and budget process of 
the military department concerned. 
(C) The requirements process for each ac-
quisition pathway of the adaptive acquisition 
framework (as described in Department of De-
fense Instruction 5000.02, ‘‘Operation of the 
Adaptive Acquisition Framework’’), including 
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the time it takes to complete requirements devel-
opment and approval process for each pathway. 
(D) For each acquisition pathway described 
in subparagraph (C), the processes for and the 
extent to which detailed systems engineering and 
requirements trade-off analyses are done before 
the development of requirements begins for a spe-
cific acquisition program to ensure that risks are 
understood and accounted for and that both top- 
level and derived requirements (development as 
well as reliability and maintainability) are 
achievable within cost, schedule, and technology 
constraints. 
(E) Organizational roles and responsibil-
ities of individuals with responsibilities relating 
to the requirements process for the military de-
partment concerned, including the role, composi-
tion, and metrics used to assess the effectiveness 
of any requirements oversight council of the mili-
tary department concerned. 
(F) The composition and sufficiency of in-
dividuals who develop requirements for the mili-
tary department concerned, including any acqui-
sition workforce planning and personnel short-
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falls and resources needed to address any such 
shortfalls. 
(G) The ability of the requirements process 
to address the urgent needs of the military de-
partment concerned. 
(H) The capacity to review changes in re-
quirements for programs of record. 
(I) The validation of decisions made from 
the requirements process and the alignment of 
each such decision to the national defense strat-
egy required under section 113(g) of title 10, 
United States Code. 
(J) The use of portfolio management in the 
requirements process to coordinate decisions and 
avoid any duplication of requirements across ac-
quisition programs. 
(K) The implementation of recommenda-
tions on the process from the Comptroller Gen-
eral of the United States by each military de-
partment. 
(L) Identification and comparison of best 
practices in the private sector and the public sec-
tor for the requirements development and ap-
proval process. 
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(M) Other recommendations to improve the 
process of establishing requirements, including 
lessons learned from responding to the COVID– 
19 pandemic. 
(N) Any additional matters that the Secre-
taries determine appropriate. 
SEC. 847. REPORT ON TRANSFER AND CONSOLIDATION OF 
CERTAIN DEFENSE ACQUISITION STATUTES. 
Not later than February 21, 2021, the Secretary of De-
fense shall submit to the congressional defense committees 
a report containing a comprehensive legislative proposal for 
the transfer and consolidation of statutes within the frame-
work for part V of subtitle A of title 10, United States Code 
(as enacted by section 801 of the National Defense Author-
ization Act for Fiscal Year 2019 (Public Law 115-232)), 
along with conforming amendments to law required by such 
transfer and consolidation. Such report shall include an as-
sessment of the effect of such transfer and consolidation on 
related Department of Defense activities, guidance, and 
interagency coordination. 
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TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND 
MANAGEMENT 
Subtitle A—Office of the Secretary 
of Defense and Related Matters 
SEC. 901. REPEAL OF POSITION OF CHIEF MANAGEMENT 
OFFICER. 
(a) REPEAL OF POSITION OF CHIEF MANAGEMENT OF-
FICER.— 
(1) IN
GENERAL.—Section 132a of title 10, 
United States Code is repealed. 
(2) CONFORMING AMENDMENTS AND REPEALS.— 
(A) Paragraph (2) of section 131(b) of title 
10, United States Code, is repealed. 
(B) The table of sections at the beginning of 
chapter 4 of title 10, United States Code, is 
amended by striking the item relating to section 
132a. 
(C) Section 910 of the National Defense Au-
thorization Act for Fiscal Year 2018 (Public 
Law 115–91; 131 Stat. 1516) is repealed. 
(3) EFFECTIVE DATE.—The amendments and re-
peals made by paragraphs (1) and (2) shall take effect 
30 days after the date of the enactment of this Act. 
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(b) IMPLEMENTATION.—On the effective date of the 
amendments and repeals under subsection (a)— 
(1) any duties and responsibilities that remain 
assigned to the Chief Management Officer of the De-
partment of Defense shall be transferred to a single of-
ficial selected by the Secretary of Defense, except that 
such official may not be an individual who served as 
the Chief Management Officer before such effective 
date; 
(2) the personnel, functions, and assets of the Of-
fice of the Chief Management Officer shall be trans-
ferred to such other organizations and elements of the 
Department as the Secretary determines appropriate; 
and 
(3) any reference in Federal law, regulations, 
guidance, instructions, or other documents of the Fed-
eral Government to the Chief Management Officer of 
the Department of Defense shall be deemed to be a ref-
erence to the official selected by the Secretary under 
paragraph (1)). 
(c) LEGISLATIVE PROPOSAL.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall submit to the congressional defense commit-
tees a report that includes a comprehensive legislative pro-
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posal for additional conforming amendments to law re-
quired by the amendments and repeals made by this section. 
SEC. 902. ASSISTANT SECRETARY OF DEFENSE FOR INDUS-
TRIAL BASE POLICY. 
(a) IN GENERAL.— 
(1) ASSISTANT SECRETARIES OF DEFENSE.—Sec-
tion 138 of title 10, United States Code, is amend-
ed— 
(A) in subsection (a)(1), by striking ‘‘13’’ 
and inserting ‘‘14’’; and 
(B) in subsection (b), by adding at the end 
the following new paragraph: 
‘‘(6) One of the Assistant Secretaries is the As-
sistant Secretary of Defense for Industrial Base Pol-
icy. In addition to any duties and powers prescribed 
under paragraph (1), the Assistant Secretary of De-
fense for Industrial Base Policy shall have the duties 
described in section 139c of this title.’’. 
(2) ASSISTANT SECRETARY OF DEFENSE FOR IN-
DUSTRIAL BASE POLICY.—Chapter 4 of subtitle A of 
title 10, United States Code, is amended by inserting 
after section 139b the following new section: 
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‘‘§ 139c. Assistant Secretary of Defense for Industrial 
Base Policy 
‘‘(a) IN GENERAL.—The Assistant Secretary of Defense 
for Industrial Base Policy shall report to the Under Sec-
retary of Defense for Acquisition and Sustainment. 
‘‘(b) RESPONSIBILITIES.—The Assistant Secretary of 
Defense for Industrial Base Policy shall be the head of the 
Office of Defense Industrial Base Policy and shall serve as 
the principal advisor to the Under Secretary of Defense for 
Acquisition and Sustainment in the performance of the 
Under Secretary’s duties relating to the following: 
‘‘(1) Providing input to strategy reviews on mat-
ters related to— 
‘‘(A) the defense industrial base; and 
‘‘(B) materials critical to national security 
(as defined in section 187(e)(1) of this title). 
‘‘(2) Establishing policies of the Department of 
Defense for developing and maintaining the defense 
industrial base of the United States and ensuring a 
secure supply of materials critical to national secu-
rity. 
‘‘(3) Providing recommendations on budget mat-
ters pertaining to the defense industrial base, the sup-
ply chain, and the development and retention of skills 
necessary to support the defense industrial base. 
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‘‘(4) Providing recommendations and acquisition 
policy guidance on defense supply chain management 
and supply chain vulnerability throughout the entire 
defense supply chain, from suppliers of raw materials 
to producers of major end items. 
‘‘(5) Establishing the national security objectives 
concerning the national technology and industrial 
base required under section 2501 of this title. 
‘‘(6) Executing the national defense program for 
analysis of the national technology and industrial 
base required under section 2503 of this title. 
‘‘(7) Performing the national technology and in-
dustrial base periodic defense capability assessments 
required under section 2505 of this title. 
‘‘(8) Establishing the technology and industrial 
base policy guidance required under section 2506 of 
this title. 
‘‘(9) Providing policy and oversight of matters 
related to materials critical to national security to 
ensure a secure supply of such materials to the De-
partment of Defense. 
‘‘(10) Carrying out the activities of the Depart-
ment of Defense relating to the Defense Production 
Act Committee established under section 722 of the 
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Defense Production Act of 1950 (50 U.S.C. App. 
2171). 
‘‘(11) Consistent with section 2(b) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2062(b)), 
executing other applicable authorities provided under 
the Defense Production Act of 1950 (50 U.S.C. App. 
2061 et seq.), including authorities under titles I and 
III of such Act. 
‘‘(12) Establishing Department of Defense poli-
cies related to international defense technology secu-
rity and export control issues. 
‘‘(13) Establishing policies related to industrial 
independent research and development programs 
under section 2372 of this title. 
‘‘(14) Coordinating with the Director of Small 
Business Programs on all matters related to indus-
trial base policy of the Department of Defense. 
‘‘(15) Ensuring reliable sources of materials crit-
ical to national security, such as specialty metals, 
armor plate, and rare earth elements. 
‘‘(16) Establishing policies of the Department of 
Defense for continued reliable resource availability 
from secure sources for the defense industrial base of 
the United States. 
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‘‘(17) Establishing policies related to a procure-
ment technical assistance program funded under this 
chapter 142 of this title. 
‘‘(18) Such other duties as are assigned by the 
Under Secretary. 
‘‘(c) RULES
OF CONSTRUCTION RELATING
TO DE-
FENSE PRODUCTION ACT.—Nothing in this section shall be 
construed to modify the authorities or responsibilities of 
any officer or employee of the United States under the De-
fense Production Act of 1950 (50 U.S.C. 4501 et seq.), in-
cluding those authorities and responsibilities specified in 
Department of Defense Directive 4400.01E (or any suc-
cessor directive). In addition, nothing in subsection (b)(9) 
shall be construed to limit the authority or modify the poli-
cies of the Committee on Foreign Investment in the United 
States established under section 721(k) of such Act (50 
U.S.C. 4565(k)).’’. 
(3) CLERICAL AMENDMENT.—The table of con-
tents for chapter 4 of subtitle A of title 10, United 
States Code, is amended by inserting after the item 
relating to section 139b the following new item: 
‘‘139c. Assistant Secretary of Defense for Industrial Base Policy.’’. 
(b) CONTINUATION OF SERVICE.—The Deputy Assist-
ant Secretary of Defense for Industrial Policy shall be the 
individual serving as the Assistant Secretary of Defense for 
Industrial Base Policy (as established under section 139c(a) 
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632 
of title 10, United States Code, as added by subsection (a)) 
until the President has appointed an individual to serve 
as Assistant Secretary of Defense for Industrial Base Policy 
pursuant to section 138 of title 10, United States Code. 
(c) TRANSFER OF OFFICE OF INDUSTRIAL POLICY TO 
OFFICE OF DEFENSE INDUSTRIAL BASE POLICY.— 
(1) TRANSFER OF FUNCTIONS.—Not later than 
180 days after the date of the enactment of this Act, 
all functions that, immediately before such date of en-
actment, were functions of the Office of Industrial 
Policy of the Department of Defense shall be trans-
ferred to the Office of Defense Industrial Base Policy. 
(2) TRANSFER OF ASSETS.—So much of the per-
sonnel, property, records, and unexpended balances of 
appropriations, allocations, and other funds em-
ployed, used, held, available, or to be made available 
in connection with a function transferred under para-
graph (1) shall be available to the Office of Defense 
Industrial Base Policy at such time or times as the 
President directs for use in connection with the func-
tions transferred. 
(3) TERMINATION.—The Office of Industrial Pol-
icy of the Department of Defense shall terminate on 
the earlier of— 
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(A) the effective date of the transfers under 
paragraph (1); or 
(B) 180 days after the date of the enactment 
of this Act. 
Subtitle B—Other Department of 
Defense Organization and Man-
agement Matters 
SEC. 911. LIMITATION ON REDUCTION OF CIVILIAN WORK-
FORCE. 
Section 129a(b) of title 10, United States Code, is 
amended by adding at the end the following: ‘‘The Secretary 
may not reduce the civilian workforce programmed full- 
time equivalent levels unless the Secretary conducts an ap-
propriate analysis of the impacts of such reductions on 
workload, military force structure, lethality, readiness, 
operational effectiveness, stress on the military force, and 
fully burdened costs.’’ 
SEC. 912. CHIEF DIVERSITY OFFICERS. 
(a) DEPARTMENT OF DEFENSE.— 
(1) IN GENERAL.—Chapter 4 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 146. Chief Diversity Officer 
‘‘(a) CHIEF DIVERSITY OFFICER.—(1) There is a Chief 
Diversity Officer of the Department of Defense, appointed 
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from civilian life by the President, by and with the advice 
and consent of the Senate. 
‘‘(2) The Chief Diversity Officer shall be appointed 
from among persons who have an extensive management or 
business background and experience with diversity and in-
clusion. A person may not be appointed as Chief Diversity 
Officer within seven years after relief from active duty as 
a commissioned officer of a regular component of an armed 
force. 
‘‘(b) POWERS AND DUTIES.—The Chief Diversity Offi-
cer— 
‘‘(1) is responsible for policy, oversight, guid-
ance, and coordination for all matters of the Depart-
ment of Defenserelated to diversity and inclusion; 
‘‘(2) exercises authority to direct the Secretaries 
of the military departments and the heads of all other 
elements of the Department with regard to matters for 
which the Chief Diversity Officer has responsibility 
under this section; 
‘‘(3) exercises authority, direction, and control 
over the Office of People Analytics, or any successor 
organization; 
‘‘(4) shall establish and maintain a Department 
of Defense strategic plan that publicly states a diver-
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sity definition, vision, and goals for the Department 
of Defense; 
‘‘(5) shall define a set of strategic metrics that 
are directly linked to key organizational priorities 
and goals, actionable, and actively used to implement 
the strategic plan; 
‘‘(6) shall establish training in diversity dynam-
ics and training in practices for leading diverse 
groups effectively; 
‘‘(7) shall establish and maintain a strategic 
plan for outreach to, and recruiting from, untapped 
locations and underrepresented demographic groups; 
‘‘(8) shall conduct regular, rigorous evaluations 
and assessments of diversity within the Department of 
Defense; and 
‘‘(9) shall perform such additional duties and ex-
ercise such powers as the Secretary of Defense may 
prescribe. 
‘‘(c) PRECEDENCE
IN
THE DEPARTMENT
OF DE-
FENSE.—(1) The Chief Diversity Officer shall report di-
rectly to the Secretary of Defense in the performance of du-
ties under this section. 
‘‘(2) The Chief Diversity Officer takes precedence in 
the Department of Defense after the Chief Management Offi-
cer.’’. 
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(2) 
TECHNICAL
AND
CONFORMING
AMEND-
MENTS.— 
(A) The table of sections at the beginning of 
such chapter is amended by adding at the end 
the following new item: 
‘‘146. Chief Diversity Officer.’’. 
(B) Section 136(b) of such title is amended 
by inserting ‘‘the Chief Diversity Officer and’’ 
after ‘‘control of the Secretary of Defense,’’. 
(b) DEPARTMENT OF THE ARMY.— 
(1) IN
GENERAL.—Chapter 703 of title 10, 
United States Code, is amended by adding at the end 
the following new section: 
‘‘§ 7025. Chief Diversity Officer 
‘‘(a) CHIEF DIVERSITY OFFICER.—(1) There is a Chief 
Diversity Officer of the Department of the Army, appointed 
from civilian life by the President, by and with the advice 
and consent of the Senate. 
‘‘(2) The Chief Diversity Officer shall be appointed 
from among persons who have an extensive management or 
business background and experience with diversity and in-
clusion. 
‘‘(b) POWERS AND DUTIES.—The Chief Diversity Offi-
cer— 
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‘‘(1) is responsible for policy, oversight, guid-
ance, and coordination for all matters of the Depart-
ment of the Army related to diversity and inclusion; 
‘‘(2) exercises authority to direct the heads of all 
other elements of the Department with regard to mat-
ters for which the Chief Diversity Officer has respon-
sibility under this section; 
‘‘(3) shall establish training in diversity dynam-
ics and training in practices for leading diverse 
groups effectively; 
‘‘(4) shall conduct regular, rigorous evaluations 
and assessments of diversity within the Department of 
the Army; and 
‘‘(5) shall perform such additional duties and ex-
ercise such powers as the Secretary of the Army may 
prescribe.’’. 
(2) 
TECHNICAL
AND
CONFORMING
AMEND-
MENTS.— 
(A) The table of sections at the beginning of 
such chapter is amended by adding at the end 
the following new item: 
‘‘7025. Chief Diversity Officer.’’. 
(B) Section 7014(b) of such title is amended 
by— 
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(i) by redesignating paragraphs (2) 
through (8) as paragraphs (3) through (9), 
respectively; and 
(ii) by inserting after paragraph (1), 
the following new paragraph (2): 
‘‘(2) The Chief Diversity Officer.’’. 
(C) Section 7014(c)(1) of such title is 
amended by adding at the end the following new 
subparagraph (H): 
‘‘(H) Diversity and inclusion.’’. 
(c) DEPARTMENT OF THE NAVY.— 
(1) IN
GENERAL.—Chapter 803 of title 10, 
United States Code, is amended by adding at the end 
the following new section: 
‘‘§ 8029. Chief Diversity Officer 
‘‘(a) CHIEF DIVERSITY OFFICER.—(1) There is a Chief 
Diversity Officer of the Department of the Navy, appointed 
from civilian life by the President, by and with the advice 
and consent of the Senate. 
‘‘(2) The Chief Diversity Officer shall be appointed 
from among persons who have an extensive management or 
business background and experience with diversity and in-
clusion. 
‘‘(b) POWERS AND DUTIES.—The Chief Diversity Offi-
cer— 
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‘‘(1) is responsible for policy, oversight, guid-
ance, and coordination for all matters of the Depart-
ment of the Navy related to diversity and inclusion; 
‘‘(2) exercises authority to direct the heads of all 
other elements of the Department with regard to mat-
ters for which the Chief Diversity Officer has respon-
sibility under this section; 
‘‘(3) shall establish training in diversity dynam-
ics and training in practices for leading diverse 
groups effectively; 
‘‘(4) shall conduct regular, rigorous evaluations 
and assessments of diversity within the Department of 
the Navy; and 
‘‘(5) shall perform such additional duties and ex-
ercise such powers as the Secretary of the Navy may 
prescribe.’’. 
(2) 
TECHNICAL
AND
CONFORMING
AMEND-
MENTS.— 
(A) The table of sections at the beginning of 
chapter 803 of title 10, United States Code, is 
amended by adding at the end the following new 
item: 
‘‘8029. Chief Diversity Officer.’’. 
(B) Section 8014(b) of such title is amended 
by— 
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(i) by redesignating paragraphs (2) 
through (8) as paragraphs (3) through (9), 
respectively; and 
(ii) by inserting after paragraph (1), 
the following new paragraph (2): 
‘‘(2) The Chief Diversity Officer.’’. 
(C) Section 8014(c)(1) of such title is 
amended by adding at the end the following new 
subparagraph (H): 
‘‘(H) Diversity and inclusion.’’. 
(d) DEPARTMENT OF THE AIR FORCE.— 
(1) IN
GENERAL.—Chapter 903 of title 10, 
United States Code, is amended by adding at the end 
the following new section: 
‘‘§ 9025. Chief Diversity Officer 
‘‘(a) CHIEF DIVERSITY OFFICER.—(1) There is a Chief 
Diversity Officer of the Department of the Air Force, ap-
pointed from civilian life by the President, by and with 
the advice and consent of the Senate. 
‘‘(2) The Chief Diversity Officer shall be appointed 
from among persons who have an extensive management or 
business background and experience with diversity and in-
clusion. 
‘‘(b) POWERS AND DUTIES.—The Chief Diversity Offi-
cer— 
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‘‘(1) is responsible for policy, oversight, guid-
ance, and coordination for all matters of the Depart-
ment of the Air Forcerelated to diversity and inclu-
sion; 
‘‘(2) exercises authority to direct the heads of all 
other elements of the Department with regard to mat-
ters for which the Chief Diversity Officer has respon-
sibility under this section; 
‘‘(3) shall establish training in diversity dynam-
ics and training in practices for leading diverse 
groups effectively; 
‘‘(4) shall conduct regular, rigorous evaluations 
and assessments of diversity within the Department of 
the Air Force; and 
‘‘(5) shall perform such additional duties and ex-
ercise such powers as the Secretary of the Air Force 
may prescribe.’’. 
(2) 
TECHNICAL
AND
CONFORMING
AMEND-
MENTS.— 
(A) The table of sections at the beginning of 
such chapter is amended by adding at the end 
the following new item: 
‘‘9025. Chief Diversity Officer.’’. 
(B) Section 9014(b) of such title is amended 
by— 
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(i) by redesignating paragraphs (2) 
through (8) as paragraphs (3) through (9), 
respectively; and 
(ii) by inserting after paragraph (1), 
the following new paragraph (2): 
‘‘(2) The Chief Diversity Officer.’’. 
(C) Section 9014(c)(1) of such title is 
amended by adding at the end the following new 
subparagraph (H): 
‘‘(H) Diversity and inclusion.’’. 
(e) COAST GUARD.— 
(1) IN GENERAL.—Chapter 3 of title 14, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 321. Chief Diversity Officer 
‘‘(a) ESTABLISHMENT.—(1) There is a Chief Diversity 
Officer of the Coast Guard, appointed from civilian life by 
the President, by and with the advice and consent of the 
Senate. 
‘‘(2) The Chief Diversity Officer shall be appointed 
from among persons who have an extensive management or 
business background and experience with diversity and in-
clusion. 
‘‘(b) POWERS AND DUTIES.—The Chief Diversity Offi-
cer— 
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643 
‘‘(1) is responsible for policy, oversight, guid-
ance, and coordination for all matters of the Coast 
Guard related to diversity and inclusion; 
‘‘(2) exercises authority to direct the heads of all 
other elements of the Coast Guard with regard to mat-
ters for which the Chief Diversity Officer has respon-
sibility under this section; 
‘‘(3) shall establish training in diversity dynam-
ics and training in practices for leading diverse 
groups effectively; 
‘‘(4) shall conduct regular, rigorous evaluations 
and assessments of diversity within the Coast Guard; 
and 
‘‘(5) shall perform such additional duties and ex-
ercise such powers as the Commandant may prescribe. 
‘‘(c) PRECEDENCE.—The Chief Diversity Officer shall 
report directly to the Commandant in the performance of 
duties under this section.’’. 
(2) 
TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—The table of sections at the beginning of 
such chapter is amended by adding at the end the fol-
lowing new item: 
‘‘321. Chief Diversity Officer.’’. 
(f) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on February 1, 2021. 
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SEC. 913. ESTABLISHMENT OF DEPUTY ASSISTANT SECRE-
TARIES FOR SUSTAINMENT. 
(a) DEPARTMENT OF THE ARMY.— 
(1) IN
GENERAL.—Chapter 703 of title 10, 
United States Code, as amended by section 912(b) of 
this Act, is further amended by adding at the end the 
following new section: 
‘‘§ 7026. Deputy Assistant Secretary of the Army for 
Sustainment 
‘‘(a) APPOINTMENT.—There is a Deputy Assistant Sec-
retary of the Army for Sustainment, who shall be appointed 
by the Secretary of the Army. 
‘‘(b) RESPONSIBILITIES.—The Deputy Assistant Sec-
retary of the Army for Sustainment shall have the following 
responsibilities with respect to major weapon systems ac-
quired for the Department of the Army: 
‘‘(1) Reviewing and providing oversight of the 
sustainment baseline cost estimates required by sec-
tion 2366d of this title. 
‘‘(2) Participating in any review of a life-cycle 
sustainment plan conducted pursuant to section 
2366d of this title. 
‘‘(3) Ensuring that cost modeling, performance 
metrics, and data analytics are used— 
‘‘(A) to inform and update life-cycle 
sustainment plans; 
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‘‘(B) to develop, with respect to the major 
weapon system to which such plan relates, the 
budget of the President for the fiscal year as sub-
mitted to Congress pursuant to section 1105 of 
title 31; and 
‘‘(C) to inform the Secretary of the Army 
when assumptions made in the development of a 
sustainment baseline cost estimate are no longer 
valid or when new opportunities arise to reduce 
costs or improve efficiency. 
‘‘(4) Making recommendations to the senior ac-
quisition executive of the Army regarding the most 
cost-effective sustainment strategy to incorporate into 
each life-cycle sustainment plan. 
‘‘(5) Balancing the range of sustainment activi-
ties for each major weapon system to achieve the opti-
mal balance of affordability, viable military depots 
and shipyards, and contracted product support ar-
rangements. 
‘‘(6) Advise the Secretary of the Army regarding 
the overall alignment of the sustainment activities, 
the operations of the sustainment supply chain, and 
strategic readiness. 
‘‘(c) DEFINITIONS.—The terms ‘life-cycle sustainment 
plan’, ‘major weapon system’ , and ‘sustainment baseline 
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cost estimate’ have the meanings given in section 2366d of 
this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 703 of title 10, 
United States Code, is amended by adding at the end 
the following new item: 
‘‘7026. Deputy Assistant Secretary of the Army for Sustainment.’’. 
(b) DEPARTMENT OF THE NAVY.— 
(1) IN
GENERAL.—Chapter 803 of title 10, 
United States Code, as amended by section 912(c) of 
this Act, is further amended by adding at the end the 
following new section: 
‘‘§ 8029a. Deputy Assistant Secretary of the Navy for 
Sustainment 
‘‘(a) APPOINTMENT.—There is a Deputy Assistant Sec-
retary of the Navy for Sustainment, who shall be appointed 
by the Secretary of the Navy. 
‘‘(b) RESPONSIBILITIES.—The Deputy Assistant Sec-
retary of the Navy for Sustainment shall have the following 
responsibilities with respect to major weapon systems ac-
quired for the Department of the Navy: 
‘‘(1) Reviewing and providing oversight of the 
sustainment baseline cost estimates required by sec-
tion 2366d of this title. 
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‘‘(2) Participating in any review of a life-cycle 
sustainment plan conducted pursuant to section 
2366d of this title. 
‘‘(3) Ensuring that cost modeling, performance 
metrics, and data analytics are used— 
‘‘(A) to inform and update life-cycle 
sustainment plans; 
‘‘(B) to develop, with respect to the major 
weapon system to which such plan relates, the 
budget of the President for the fiscal year as sub-
mitted to Congress pursuant to section 1105 of 
title 31; and 
‘‘(C) to inform the Secretary of the Navy 
when assumptions made in the development of a 
sustainment baseline cost estimate are no longer 
valid or when new opportunities arise to reduce 
costs or improve efficiency. 
‘‘(4) Making recommendations to the senior ac-
quisition executive of the Navy regarding the most 
cost-effective sustainment strategy to incorporate into 
each life-cycle sustainment plan. 
‘‘(5) Balancing the range of sustainment activi-
ties for each major weapon system to achieve the opti-
mal balance of affordability, viable military depots 
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and shipyards, and contracted product support ar-
rangements. 
‘‘(6) Advise the Secretary of the Navy regarding 
the overall alignment of the sustainment activities, 
the operations of the sustainment supply chain, and 
strategic readiness. 
‘‘(c) DEFINITIONS.—The terms ‘life-cycle sustainment 
plan’, ‘major weapon system’ , and ‘sustainment baseline 
cost estimate’ have the meanings given in section 2366d of 
this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 803 of title 10, 
United States Code, is amended by adding at the end 
the following new item: 
‘‘8029a. Deputy Assistant Secretary of the Navy for Sustainment.’’. 
(c) DEPARTMENT OF THE AIR FORCE.— 
(1) IN
GENERAL.—Chapter 903 of title 10, 
United States Code, as amended by section 912(d) of 
this Act, is further amended by adding at the end the 
following new section: 
‘‘§ 9026. Deputy Assistant Secretary of the Air Force 
for Sustainment 
‘‘(a) APPOINTMENT.—There is a Deputy Assistant Sec-
retary of the Air Force for Sustainment, who shall be ap-
pointed by the Secretary of the Air Force. 
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‘‘(b) RESPONSIBILITIES.—The Deputy Assistant Sec-
retary of the Air Force for Sustainment shall have the fol-
lowing responsibilities with respect to major weapon sys-
tems acquired for the Department of the Air Force: 
‘‘(1) Reviewing and providing oversight of the 
sustainment baseline cost estimates required by sec-
tion 2366d of this title. 
‘‘(2) Participating in any review of a life-cycle 
sustainment plan conducted pursuant to section 
2366d of this title. 
‘‘(3) Ensuring that cost modeling, performance 
metrics, and data analytics are used— 
‘‘(A) to inform and update life-cycle 
sustainment plans; 
‘‘(B) to develop, with respect to the major 
weapon system to which such plan relates, the 
budget of the President for the fiscal year as sub-
mitted to Congress pursuant to section 1105 of 
title 31; and 
‘‘(C) to inform the Secretary of the Air 
Force when assumptions made in the develop-
ment of a sustainment baseline cost estimate are 
no longer valid or when new opportunities arise 
to reduce costs or improve efficiency. 
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‘‘(4) Making recommendations to the senior ac-
quisition executive of the Air Force regarding the 
most cost-effective sustainment strategy to incorporate 
into each life-cycle sustainment plan. 
‘‘(5) Balancing the range of sustainment activi-
ties for each major weapon system to achieve the opti-
mal balance of affordability, viable military depots 
and shipyards, and contracted product support ar-
rangements. 
‘‘(6) Advise the Secretary of the Air Force re-
garding the overall alignment of the sustainment ac-
tivities, the operations of the sustainment supply 
chain, and strategic readiness. 
‘‘(c) DEFINITIONS.—The terms ‘life-cycle sustainment 
plan’, ‘major weapon system’, and ‘sustainment baseline 
cost estimate’ have the meanings given in section 2366d of 
this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 903 of title 10, 
United States Code, is amended by adding at the end 
the following new item: 
‘‘9026. Deputy Assistant Secretary of the Air Force for Sustainment.’’. 
SEC. 914. OFFICE OF DEFENSE COMMUNITY COOPERATION 
AND ECONOMIC ADJUSTMENT. 
(a) ESTABLISHMENT.— 
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(1) IN
GENERAL.—Chapter 141 of title 10, 
United States Code, is amended by inserting after sec-
tion 2391 the following new section: 
‘‘§ 2391a. Office of Defense Community Cooperation 
and Economic Adjustment 
‘‘(a) ESTABLISHMENT.—There is in the Office of the 
Secretary of Defense an Office of Defense Community Co-
operation and Economic Adjustment (in this section re-
ferred to as the ‘Office’). 
‘‘(b) HEAD OF OFFICE.—There is a Director of the Of-
fice who shall be the head of the Office. The Director shall 
be appointed by the Secretary of Defense. 
‘‘(c) DUTIES.—The Office shall— 
‘‘(1) serve as the office in the Department of De-
fense with primary responsibility for— 
‘‘(A) providing assistance to States, coun-
ties, municipalities, regions, and other commu-
nities to foster cooperation with military instal-
lations to enhance the military mission, achieve 
facility and infrastructure savings and reduced 
operating costs, address encroachment and com-
patible land use issues, support military fami-
lies, and increase military, civilian, and indus-
trial readiness and resiliency; and 
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‘‘(B) providing adjustment and diversifica-
tion assistance to State and local governments 
under section 2391(b) to achieve the objectives 
described in subparagraph (A); 
‘‘(2) coordinate the provision of such assistance 
with other organizations and elements of the Depart-
ment; 
‘‘(3) provide support to the Economic Adjust-
ment Committee established under Executive Order 
12788 (57 Fed. Reg. 2213; 10 U.S.C. 2391 note) or 
any successor to such Committee; and 
‘‘(4) carry out such other activities as the Sec-
retary of Defense determines appropriate.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended by 
inserting after the item relating to section 2391 the 
following new item: 
‘‘2391a. Office of Defense Community Cooperation and Economic Adjustment.’’. 
(b) TRANSFERS.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall transfer the functions, personnel, and assets of the Of-
fice of Economic Adjustment of the Department of Defense 
to the Office of Defense Community Cooperation and Eco-
nomic Adjustment established under section 2391a of title 
10, United States Code (as added by subsection (a)). 
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(c) ADMINISTRATION OF CERTAIN PROGRAMS.—Begin-
ning on the effective date of the transfers under subsection 
(b), any program, project, or other activity administered 
by the Office of Economic Adjustment of the Department 
of Defense as of the date of the enactment of this Act shall 
be administered by the Office of Defense Community Co-
operation and Economic Adjustment established under sec-
tion 2391a of title 10, United States Code (as added by 
subsection (a)). 
SEC. 915. INPUT FROM CHIEF OF NATIONAL GUARD BU-
REAU TO THE JOINT REQUIREMENTS OVER-
SIGHT COUNCIL. 
Section 181(d) of title 10, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(4) INPUT FROM CHIEF OF NATIONAL GUARD 
BUREAU.—The Council shall seek, and strongly con-
sider, the views of the Chief of National Guard Bu-
reau regarding non-Federalized National Guard ca-
pabilities in support of homeland defense and civil 
support missions.’’. 
SEC. 916. REDESIGNATION OF THE JOINT FORCES STAFF 
COLLEGE. 
(a) IN GENERAL.—Title 10, United States Code, is 
amended by striking ‘‘Joint Forces Staff College’’ each place 
it appears and inserting ‘‘Joint Forces War College’’. 
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(b) REFERENCES.—Any reference in Federal law, reg-
ulations, guidance, instructions, or other documents of the 
Federal Government to the Joint Forces Staff College shall 
be deemed to be a reference to the Joint Forces War College. 
Subtitle C—Space Matters 
SEC. 921. ASSISTANT SECRETARY OF DEFENSE FOR SPACE 
AND STRATEGIC DETERRENCE POLICY. 
(a) ASSISTANT SECRETARIES OF DEFENSE.—Para-
graph (5) of section 138(b) of title 10, United States Code, 
is amended to read as follows: 
‘‘(5) One of the Assistant Secretaries is the Assistant 
Secretary of Defense for Space and Strategic Deterrence 
Policy. The principal duty of the Assistant Secretary shall 
be the overall supervision of policy of the Department of 
Defense for space, nuclear deterrence, and missile defense.’’. 
(b) SPACE FORCE ACQUISITION COUNCIL.—Section 
9021(b)(3) of title 10, United States Code, is amended by 
striking ‘‘Assistant Secretary of Defense for Space Policy’’ 
and inserting ‘‘Assistant Secretary of Defense for Space and 
Strategic Deterrence Policy’’. 
(c) ELEMENTS OF OFFICE.—Section 955(b) of the Na-
tional Defense Authorization Act for Fiscal Year 2020 (Pub-
lic Law 116–92; 133 Stat. 1565) is amended by striking 
‘‘Assistant Secretary of Defense for Space Policy’’ and in-
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serting ‘‘Assistant Secretary of Defense for Space and Stra-
tegic Deterrence Policy’’. 
SEC. 922. OFFICE OF THE CHIEF OF SPACE OPERATIONS. 
(a) IN GENERAL.—Chapter 908 of title 10, United 
States Code, is amended by striking section 9083 and in-
serting the following new sections: 
‘‘§ 9083. Office of the Chief of Space Operations: func-
tion; composition 
‘‘(a) FUNCTION.—There is in the executive part of the 
Department of the Air Force an Office of the Chief of Space 
Operations to assist the Secretary of the Air Force in car-
rying out the responsibilities of the Secretary. 
‘‘(b) COMPOSITION.—The Office of the Chief of Space 
Operations is composed of the following: 
‘‘(1) The Chief of Space Operations. 
‘‘(2) Other members of the Space Force and Air 
Force assigned or detailed to the Office of the Chief 
of Space Operations. 
‘‘(3) Civilian employees in the Department of the 
Air Force assigned or detailed to the Office of the 
Chief of Space Operations. 
‘‘(c) ORGANIZATION.—Except as otherwise specifically 
prescribed by law, the Office of the Chief of Space Oper-
ations shall be organized in such manner, and the members 
of the Office of the Chief of Space Operations shall perform 
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such duties and have such titles, as the Secretary of the Air 
Force may prescribe. 
‘‘§ 9084. Office of the Chief of Space Operations: gen-
eral duties 
‘‘(a) PROFESSIONAL ASSISTANCE.—The Office of the 
Chief of Space Operations shall furnish professional assist-
ance to the Secretary, the Under Secretary, and the Assist-
ant Secretaries of the Air Force and to the Chief of Space 
Operations. 
‘‘(b) AUTHORITIES.—Under the authority, direction, 
and control of the Secretary of the Air Force, the Office 
of the Chief of Space Operations shall— 
‘‘(1) subject to subsections (c) and (d) of section 
9014 of this title, prepare for such employment of the 
Space Force, and for such recruiting, organizing, sup-
plying, equipping (including research and develop-
ment), training, servicing, mobilizing, demobilizing, 
administering, and maintaining of the Space Force, 
as will assist in the execution of any power, duty, or 
function of the Secretary of the Air Force or the Chief 
of Space Operations; 
‘‘(2) investigate and report upon the efficiency of 
the Space Force and its preparation to support mili-
tary operations by commanders of the combatant 
commands; 
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‘‘(3) prepare detailed instructions for the execu-
tion of approved plans and supervise the execution of 
those plans and instructions; 
‘‘(4) as directed by the Secretary of the Air Force 
or the Chief of Space Operations, coordinate the ac-
tion of organizations of the Space Force; and 
‘‘(5) perform such other duties, not otherwise as-
signed by law, as may be prescribed by the Secretary 
of the Air Force.’’. 
(b) TABLE OF SECTIONS AMENDMENT.—The table of 
sections at the beginning of chapter 908 of such title is 
amended by striking the item related to section 9083 and 
adding at the end the following new items: 
‘‘9083. Office of the Chief of Space Operations: function; composition 
‘‘9084. Office of the Chief of Space Operations: general duties’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the date on which the Secretary 
of the Air Force and the Chief of Space Operations jointly 
submit to the congressional defense committees a report de-
tailing the functions that the headquarters staff of the De-
partment of the Air Force will continue to perform in sup-
port of the Space Force. 
(d) NO AUTHORIZATION OF ADDITIONAL MILITARY 
BILLETS.—The Secretary shall establish the Office of the 
Chief of Space Operations under section 9083 of title 10, 
United States Code, as added by subsection (a), using mili-
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tary personnel otherwise authorized. Nothing in this section 
or the amendments made by this section shall be construed 
to authorize additional military billets for the purposes of, 
or in connection with, the establishment of the Office of the 
Chief of Space Operations. 
SEC. 923. SPACE FORCE MEDAL. 
(a) SPACE FORCE MEDAL.—Chapter 937 of title 10, 
United States Code, is amended by inserting after section 
9280 the following new section: 
‘‘§ 9280a. Space Force Medal: award; limitations 
‘‘(a) The President may award a decoration called the 
‘Space Force Medal’, of appropriate design with accom-
panying ribbon, to any person who, while serving in any 
capacity with the Space Force, distinguishes himself or her-
self by heroism not involving actual conflict with an enemy. 
‘‘(b) Not more than one Space Force Medal may be 
awarded to a person. However, for each succeeding act that 
would otherwise justify award of such a medal, the Presi-
dent may award a suitable bar or other device to be worn 
as the President directs.’’. 
(b) TABLE OF SECTIONS AMENDMENT.—The table of 
sections at the beginning of such chapter is amended by in-
serting after the item relating to section 9280 the following 
new item: 
‘‘9280a. Space Force Medal: award; limitations.’’. 
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SEC. 924. CLARIFICATION OF PROCUREMENT OF COMMER-
CIAL SATELLITE COMMUNICATIONS SERV-
ICES. 
(a) IN GENERAL.—Chapter 963 of title 10, United 
States Code, is amended by inserting before section 9532 
the following new section: 
‘‘§ 9531. Procurement of commercial satellite commu-
nications services 
‘‘The Chief of Space Operations shall be responsible for 
the procurement of commercial satellite communications 
services for the Department of Defense.’’. 
(b) TABLE OF SECTIONS AMENDMENT.—The table of 
sections at the beginning of chapter 963 of such title is 
amended by inserting before the item relating to section 
9532 the following new item: 
‘‘9531. Procurement of commercial satellite communications services.’’. 
SEC. 925. TEMPORARY EXEMPTION FROM AUTHORIZED 
DAILY AVERAGE OF MEMBERS IN PAY GRADES 
E–8 AND E–9. 
Section 517 of title 10, United States Code, shall not 
apply to the Space Force until October 1, 2023. 
SEC. 926. ONE-TIME UNIFORM ALLOWANCE FOR MEMBERS 
TRANSFERRED TO THE SPACE FORCE. 
(a) IN GENERAL.—The Secretary of the Air Force may 
provide an officer or enlisted member who transfers from 
the Army, Navy, Air Force, or Marine Corps to the Space 
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Force an allowance of not more than $400 as reimburse-
ment for the purchase of required uniforms and equipment. 
(b) RELATIONSHIP TO OTHER ALLOWANCES.—The al-
lowance under this section is in addition to any allowance 
available under any other provision of law. 
(c) SOURCE OF FUNDS.—Funds for allowances pro-
vided under subsection (a) in a fiscal year may be derived 
only from amounts authorized to be appropriated for mili-
tary personnel for such fiscal year. 
(d) APPLICABILITY.—The authority for an allowance 
under this section shall apply with respect to any member 
of the Army, Navy, Air Force, or Marine Corps who trans-
fers to the Space Force on or after December 20, 2019, and 
on or before September 30, 2023. 
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 
2021 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of au-
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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 MILI-
TARY
PERSONNEL
AUTHORIZATIONS.—A transfer of 
funds between military personnel authorizations 
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 Congress. 
(c) EFFECT ON AUTHORIZATION AMOUNTS.—A trans-
fer made from one account to another under the authority 
of this section shall be deemed to increase the amount au-
thorized for the account to which the amount is transferred 
by an amount equal to the amount transferred. 
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(d) NOTICE
TO
CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under sub-
section (a). 
(e) CERTIFICATION REQUIREMENT.—The authority to 
transfer any authorization under this section may not be 
used until the Secretary of Defense and the head of each 
entity affected by such transfer submits to the congressional 
defense committees certification in writing that— 
(1) the amount transferred will be used for high-
er priority items, based on unforeseen military re-
quirements, than the items from which authority is 
transferred; and 
(2) the amount transferred will not be used for 
any item for which funds have been denied authoriza-
tion by Congress. 
SEC. 1002. DETERMINATION OF BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement titled 
‘‘Budgetary Effects of PAYGO Legislation’’ for this Act, 
submitted for printing in the Congressional Record by the 
Chairman of the House Budget Committee, provided that 
such statement has been submitted prior to the vote on pas-
sage. 
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SEC. 1003. PANDEMIC PREPAREDNESS AND RESILIENCE NA-
TIONAL SECURITY FUND. 
(a) FUND PURPOSES.—Amounts authorized to be ap-
propriated for Research and Development, Defense-Wide, 
Pandemic Preparedness and Resilience National Security 
Fund shall be available for obligation and expenditure only 
for the purposes of pandemic preparedness. Such amounts 
may not be used for a purpose or program unless the pur-
pose or program is authorized by law. 
(b) TRANSFERS.— 
(1) IN GENERAL.—Amounts referred to in sub-
section (a) may be transferred as follows: 
(A) To Procurement, Defense-wide and Re-
search, Development, Test, and Evaluation, De-
fense-wide, not more than an aggregate of 
$200,000,000 to carry out the Small Business 
Industrial Base Resilience Program established 
by section 844 of this Act. 
(B) To Research, Development, Test, and 
Evaluation, Defense-wide, line 9, Biomedical 
Technology, not more than $50,000,000 for re-
search that aims to rapidly produce medical 
countermeasures against novel threats, at popu-
lation scale and approved for use in people. 
(C) To the following, not more than an ag-
gregate of $750,000,000 to support research and 
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development efforts directly related to bio-
preparedness and pandemic preparedness and 
resilience: 
(i) Research, Development, Test, and 
Evaluation, Army. 
(ii) Research, Development, Test, and 
Evaluation, Navy. 
(iii) Research, Development, Test, and 
Evaluation, Air Force. 
(iv) Research, Development, Test, and 
Evaluation, Defense-wide. 
(v) Defense Health Program. 
(D) To Research, development, test, and 
evaluation, Defense-wide, Line 16, Chemical and 
Biological Defense Program, not more than 
$27,000,000 for research and development to de-
tect and model treatments for nuclear, chemical, 
and biological exposure. 
(E) To research, development, test, and 
evaluation, Defense-wide, line 44, Chemical and 
Biological Defense Program – Advanced Develop-
ment, not more than $30,000,000 for the develop-
ment of decontamination technologies for civilian 
pandemic preparedness. 
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(F) To research, development, test, and eval-
uation, Defense-wide, line 49, Manufacturing 
Science and Technology Program, not more than 
$35,000,000 for support for the development of 
advanced manufacturing techniques and tech-
nologies that enable the United States defense in-
dustrial base to rapidly produce needed mate-
rials for novel biological threats. 
(2) LIMITATION.—Amounts referred to in sub-
section (a) may not be transferred for— 
(A) Drug Interdiction and Counter-Drug 
Activities; or 
(B) military construction (as defined in sec-
tion 2801(a) of title 10, United States Code), in-
cluding the purposes described in section 2802(b) 
of such title, or military family housing, includ-
ing the purposes described in section 2821(a) of 
such title. 
(3) NOTICE REQUIREMENT.—Not later than 30 
days before transferring any amount described in sub-
section (a), the Secretary of Defense shall submit to 
the congressional defense committees notice of the 
transfer. 
(4) EXCEPTION FROM GENERAL TRANSFER AU-
THORITY.—A transfer under this subsection shall not 
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be counted toward the dollar amount limitation under 
section 1001. 
SEC. 1004. BUDGET MATERIALS FOR SPECIAL OPERATIONS 
FORCES. 
Section 226 of title 10, United States Code, is amend-
ed— 
(1) in subsection (a)— 
(A) by inserting ‘‘of Defense and the Sec-
retary of each of the military departments’’ after 
‘‘Secretary’’; 
(B) by striking ‘‘2021’’ and inserting 
‘‘2022’’; 
(C) by striking ‘‘a consolidated budget jus-
tification display’’ and inserting ‘‘a budget jus-
tification display for each applicable appropria-
tion’’; 
(D) in the second sentence, by striking ‘‘dis-
play’’ and all that follows and inserting ‘‘dis-
plays shall include each of the following:’’ and 
(E) by adding at the end the following new 
paragraphs: 
‘‘(1) Details at the appropriation and line item 
level, including any amount for service-common sup-
port, acquisition support, training, operations, pay 
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and allowances, base operations sustainment, and 
any other common services and support. 
‘‘(2) An identification of any change in the level 
or type of service-common support and enabling capa-
bilities provided by each of the military services or 
Defense Agencies to special operations forces for the 
fiscal year covered by the budget justification display 
when compared to the preceding fiscal year, including 
the rationale for any such change and any mitigating 
actions. 
‘‘(3) An assessment of the specific effects that the 
budget justification display for the fiscal year covered 
by the display and any anticipated future manpower 
and force structure changes are likely to have on the 
ability of each of the military services to provide serv-
ice-common support and enabling capabilities to spe-
cial operations forces. 
‘‘(4) Any other matters the Secretary of Defense 
or the Secretary of a military department determines 
are relevant.’’; 
(2) by redesignating subsection (b) as subsection 
(c); and 
(3) by inserting after subsection (a) the following 
new subsection (b): 
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‘‘(b) CONSOLIDATED BUDGET JUSTIFICATION DIS-
PLAY.—The Secretary of Defense shall include, in the budget 
materials submitted to Congress under section 1105 of title 
31, for fiscal year 2022 and any subsequent fiscal year, a 
consolidated budget justification display containing the 
same information as is required in the budget justification 
displays required under subsection (a). Such consolidated 
budget justification display may be provided as a summary 
by appropriation for each military department and a sum-
mary by appropriation for all Defense Agencies.’’. 
Subtitle B—Counterdrug Activities 
SEC. 1011. SUPPORT FOR COUNTERDRUG ACTIVITIES AND 
ACTIVITIES TO COUNTER TRANSNATIONAL 
ORGANIZED 
CRIME 
AFFECTING 
FLOW 
OF 
DRUGS INTO THE UNITED STATES. 
Section 284(c) of title 10, United States Code, is 
amended— 
(1) by striking paragraph (2), and inserting the 
following new paragraph (2): 
‘‘(2) SECRETARY OF STATE CONCURRENCE.—The 
Secretary may only provide support for a purpose de-
scribed in this subsection with the concurrence of the 
Secretary of State.’’; and 
(2) by adding at the end the following new para-
graph: 
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‘‘(3) PRIORITY.—In providing support for a pur-
pose described in this subsection, the Secretary shall 
give priority to support requested for the purpose of 
affecting the flow of drugs into the United States.’’. 
SEC. 1012. CONGRESSIONAL NOTIFICATION WITH RESPECT 
TO DEPARTMENT OF DEFENSE SUPPORT PRO-
VIDED TO OTHER UNITED STATES AGENCIES 
FOR COUNTERDRUG ACTIVITIES AND ACTIVI-
TIES TO COUNTER TRANSNATIONAL ORGA-
NIZED CRIME. 
Section 284(h) of title 10, United States Code, is 
amended— 
(1) in paragraph (1)— 
(A) by redesignating subparagraphs (A) 
and (B) as subparagraphs (B) and (C), respec-
tively; and 
(B) by inserting before subparagraph (B), 
as so redesignated, the following new subpara-
graph (A): 
‘‘(A) In case of support for a purpose de-
scribed in subsection (b)— 
‘‘(i) an identification of the recipient 
of the support; 
‘‘(ii) a description of the support pro-
vided; 
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‘‘(iii) a description of the sources and 
amounts of funds used to provide such sup-
port; and 
‘‘(iv) a description of the amount of 
funds obligated to provide such support.’’; 
and 
(2) by adding at the end the following new para-
graph: 
‘‘(3) 
APPROPRIATE
COMMITTEES
OF
CON-
GRESS.—For purposes of any notice submitted under 
this subsection with respect to support described in 
paragraph (1)(A), the appropriate committees of Con-
gress are— 
‘‘(A) the Committees on Armed Services of 
the Senate and House of Representatives; and 
‘‘(B) any committee with jurisdiction over 
the department or agency that receives the sup-
port covered by the notice.’’. 
Subtitle C—Naval Vessels 
SEC. 1021. LIMITATION ON AVAILABILITY OF CERTAIN 
FUNDS WITHOUT NAVAL VESSELS PLAN AND 
CERTIFICATION. 
Section 231(e) of title 10, United States Code, is 
amended— 
(1) in paragraph (1)— 
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payments’’ and inserting ‘‘, properly phased installment 
payments, and full funding for the first two Columbia class 
submarines’’. 
SEC. 1024. PREFERENCE FOR UNITED STATES VESSELS IN 
TRANSPORTING SUPPLIES BY SEA. 
(a) PREFERENCE FOR UNITED STATES VESSELS IN 
TRANSPORTING SUPPLIES BY SEA.— 
(1) IN
GENERAL.—Section 2631 of title 10, 
United States Code, is amended to read as follows: 
‘‘§ 2631. Preference for United States vessels in trans-
porting supplies by sea 
‘‘(a) IN GENERAL.—Supplies bought for the Army, 
Navy, Air Force, or Marine Corps, or for a Defense Agency, 
or otherwise transported by the Department of Defense, may 
only be transported by sea in— 
‘‘(1) a vessel belonging to the United States; or 
‘‘(2) a vessel of the United States (as such term 
is defined in section 116 of title 46). 
‘‘(b) WAIVER AND NOTIFICATION.—(1) The Secretary 
of Defense may waive the requirement under subsection (a) 
if such a vessel is— 
‘‘(A) not available at a fair and reasonable rate 
for commercial vessels of the United States; or 
‘‘(B) otherwise not available. 
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‘‘(2) At least once each fiscal year, the Secretary of 
Defense shall submit, in writing, to the appropriate con-
gressional committees a notice of any waiver granted under 
this subsection and the reasons for such waiver. 
‘‘(c) REQUIREMENTS FOR REFLAGGING OR REPAIR 
WORK.—(1) In each request for proposals to enter into a 
time-charter contract for the use of a vessel for the transpor-
tation of supplies under this section, the Secretary of De-
fense shall require that— 
‘‘(A) any reflagging or repair work on a vessel 
for which a proposal is submitted in response to the 
request for proposals be performed in the United 
States (including any territory of the United States); 
and 
‘‘(B) any corrective and preventive maintenance 
or repair work on a vessel under contract pursuant 
to this section relevant to the purpose of such contract 
be performed in the United States (including any ter-
ritory of the United States) for the duration of the 
contract, to the greatest extent practicable. 
‘‘(2) The Secretary of Defense may waive a require-
ment under paragraph (1) if the Secretary determines that 
such waiver is critical to the national security of the United 
States. The Secretary shall immediately submit, in writing, 
to the appropriate congressional committees a notice of any 
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waiver granted under this paragraph and the reasons for 
such waiver. 
‘‘(3) In this subsection: 
‘‘(A) The term ‘reflagging or repair work’ means 
work performed on a vessel— 
‘‘(i) to enable the vessel to meet applicable 
standards to become a vessel of the United 
States; or 
‘‘(ii) to convert the vessel to a more useful 
military configuration. 
‘‘(B) The term ‘corrective and preventive mainte-
nance or repair’ means— 
‘‘(i) maintenance or repair actions per-
formed as a result of a failure in order to return 
or restore equipment to acceptable performance 
levels; and 
‘‘(ii) scheduled maintenance or repair ac-
tions to prevent or discover functional failures. 
‘‘(d) COMPLIANCE.—The Secretary of Defense shall en-
sure that contracting officers of the Department of Defense 
award contracts under this section to responsible offerors 
and monitor and ensure compliance with the requirements 
of this section. The Secretary shall— 
‘‘(1) ensure that timely, accurate, and complete 
information on contractor performance under this sec-
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tion is included in any contractor past performance 
database used by an executive agency; and 
‘‘(2) exercise appropriate contractual rights and 
remedies against contractors who fail to comply with 
this section, or subchapter I of chapter 553 of title 46 
as determined by the Secretary of Transportation 
under such subchapter, including by— 
‘‘(A) determining that a contractor is ineli-
gible for an award of such a contract; or 
‘‘(B) terminating such a contract or suspen-
sion or debarment of the contractor for such con-
tract. 
‘‘(e) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘appropriate congres-
sional committees’ means— 
‘‘(1) the Committees on Armed Services of the 
Senate and the House of Representatives; 
‘‘(2) the Committee on Transportation and In-
frastructure of the House of Representatives; and 
‘‘(3) the Committee on Commerce, Science, and 
Transportation of the Senate.’’. 
(2) CLERICAL AMENDMENT.—The table of con-
tents for chapter 157 of title 10, United States Code, 
is amended by amending the item relating to section 
2361 to read as follows: 
‘‘2361. Preference for United States vessels in transporting supplies by sea.’’. 
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(b) AMENDMENTS
TO TITLE 46, UNITED STATES 
CODE.— 
(1) TRANSFER OF PROVISION RELATING TO PRI-
ORITY LOADING FOR COAL.— 
(A) IN
GENERAL.—Section 55301 of title 
46, United States Code, is redesignated as sec-
tion 55123 of such title, transferred to appear 
after section 55122 of such title, and amended so 
that the enumerator, section heading, typeface, 
and typestyle conform to those appearing in 
other sections in such title. 
(B) CONFORMING AMENDMENTS.— 
(i) The analysis for subchapter I of 
chapter 553 of title 46, United States Code, 
is amended by striking the item relating to 
section 55301. 
(ii) The analysis for chapter 551 of 
title 46, United States Code, is amended by 
inserting after the item relating to section 
55122 the following new item: 
‘‘55123. Priority loading for coal.’’. 
(2) AMENDMENT TO SUBCHAPTER HEADING.— 
The heading of subchapter I of chapter 553 of title 46, 
United States Code, is amended to read as follows: 
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‘‘SUBCHAPTER I—GOVERNMENT IMPELLED TRANSPORTATION’’. 
SEC. 1025. RESTRICTIONS ON OVERHAUL, REPAIR, ETC. OF 
NAVAL VESSELS IN FOREIGN SHIPYARDS. 
(a) EXCEPTION FOR DAMAGE REPAIR DUE TO HOS-
TILE ACTIONS
OR INTERVENTIONS.—Section 8680(a) of 
title 10, United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘, other than 
in the case of voyage repairs’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(3) Notwithstanding paragraph (1), a naval vessel de-
scribed in paragraph (1) may be repaired in a shipyard 
outside the United States or Guam if the repairs are— 
‘‘(A) voyage repairs; or 
‘‘(B) necessary to correct damage sustained due 
to hostile actions or interventions.’’. 
(b) LIMITED AUTHORITY TO USE FOREIGN WORK-
ERS.—Section 8680(a)(2)(B)(i) of title 10, United States 
Code, is amended— 
(1) by inserting ‘‘(I)’’ after ‘‘(i)’’; and 
(2) by adding at the end the following new sub-
clauses: 
‘‘(II) Notwithstanding subclause (I), foreign workers 
may be used to perform corrective and preventive mainte-
nance or repair on a vessel as described in subparagraph 
(A) only if the Secretary of the Navy determines that travel 
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by United States Government personnel or United States 
contractor personnel to perform the corrective or preventive 
maintenance or repair is not advisable for health or safety 
reasons. The Secretary of the Navy may not delegate the 
authority to make a determination under this subclause. 
‘‘(III) Not later than 30 days after making a deter-
mination under subclause (II), the Secretary of the Navy 
shall submit to the congressional defense committees written 
notification of the determination. The notification shall in-
clude the reasons why travel by United States personnel is 
not advisable for health or safety reasons, the location where 
the corrective and preventive maintenance or repair will 
be performed, and the approximate duration of the correc-
tive and preventive maintenance or repair.’’. 
(c) 
TECHNICAL
CORRECTION.—Section 
8680(a)(2)(C)(ii) of title 10, United States Code, is amend-
ed by striking the period after ‘‘means—’’. 
SEC. 1026. BIANNUAL REPORT ON SHIPBUILDER TRAINING 
AND THE DEFENSE INDUSTRIAL BASE. 
(a) IN GENERAL.—Chapter 863 of title 10, United 
States Code, is amended by adding at the end the following 
new section: 
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‘‘§ 8692. Biannual report on shipbuilder training and 
the defense industrial base 
‘‘ Not later than February 1 of each even-numbered 
year until 2026, the Secretary of Defense, in coordination 
with the Secretary of Labor, shall submit to the Committee 
on Armed Services and the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate and the Com-
mittee on Armed Services and the Committee on Education 
and Labor of the House of Representatives a report on ship-
builder training and hiring requirements necessary to 
achieve the Navy’s 30-year shipbuilding plan and to main-
tain the shipbuilding readiness of the defense industrial 
base. Each such report shall include each of the following: 
‘‘(1) An analysis and estimate of the time and 
investment required for new shipbuilders to gain pro-
ficiency in particular shipbuilding occupational spe-
cialties, including detailed information about the oc-
cupational specialty requirements necessary for con-
struction of naval surface ship and submarine classes 
to be included in the Navy’s 30-year shipbuilding 
plan. 
‘‘(2) An analysis of the age demographics and 
occupational experience level (measured in years of 
experience) of the shipbuilding defense industrial 
workforce. 
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‘‘(3) An analysis of the potential time and in-
vestment challenges associated with developing and 
retaining shipbuilding skills in organizations that 
lack intermediate levels of shipbuilding experience. 
‘‘(4) Recommendations concerning how to ad-
dress shipbuilder training during periods of demo-
graphic transition and evolving naval fleet architec-
ture consistent with the Navy’s 2020 Integrated Force 
Structure Assessment. 
‘‘(5) An analysis of whether emerging tech-
nologies, such as augmented reality, may aid in new 
shipbuilder training. 
‘‘(6) Recommendations concerning how to en-
courage young adults to enter the defense shipbuilding 
industry and to develop the skills necessary to support 
the shipbuilding defense industrial base.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item: 
‘‘8692. Biannual report on shipbuilder training and the defense industrial base.’’. 
SEC. 1027. PROHIBITION ON USE OF FUNDS FOR RETIRE-
MENT OF CERTAIN LITTORAL COMBAT SHIPS. 
(a) PROHIBITION.—None of the funds authorized to be 
appropriated by this Act or otherwise made available for 
fiscal year 2021 for the Navy may be obligated or expended 
to retire or prepare for the retirement, transfer, or place-
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ment in storage any ships designated as LCS-3 or LCS- 
4 until the date on which the Secretary of the Navy submits 
the certification required under subsection (b). 
(b) CERTIFICATION.—Upon the completion of all oper-
ational tests on each of the mission modules designed for 
the Littoral Combat Ship, the Secretary of the Navy shall 
submit to the congressional defense committees certification 
of such completion. 
SEC. 
1028. 
REPORT 
ON 
IMPLEMENTATION 
OF 
COM-
MANDANT’S PLANNING GUIDANCE. 
(a) IN GENERAL.—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 the implementation of the Commandant’s Planning 
Guidance. Such report shall include a detailed description 
of each of the following: 
(1) The specific number and type of manned lit-
toral ships required to execute such Guidance. 
(2) The role of long-range unmanned surface ves-
sels in the execution of such Guidance. 
(3) How platforms referred to in paragraphs (1) 
and (2) account for and interact with ground-based 
missiles fielded by teams of Marines deployed 
throughout the Indo-Pacific region. 
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(4) The integrated naval command and control 
architecture required to support the platforms referred 
to in paragraphs (1) and (2); 
(5) The projected cost and any additional re-
sources required to deliver the platforms referred to in 
paragraph (1) and (2) by not later than five years 
after the date of the enactment of this Act. 
(b) FORM OF REPORT.—The report required under this 
section shall be submitted in unclassified form, but may 
contain a classified annex. The unclassified report shall be 
made publicly available. 
SEC. 1029. LIMITATION ON NAVAL FORCE STRUCTURE 
CHANGES. 
None of the funds authorized to be appropriated by this 
Act or otherwise made available for fiscal year 2021 for the 
Navy may be obligated or expended to retire, or to prepare 
for the retirement, transfer, or placement in storage of, any 
Department of the Navy ship until the date that is 30 days 
after the date on which Secretary of Defense submits to the 
congressional defense committees the 2020 Naval Integrated 
Force Structure Assessment. 
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