H. R. 2401—165
of the vessel to a homeport in the United States (or a territory
of the United States) begin any work for the overhaul, repair,
or maintenance of the vessel that is scheduled to be for a period
of more than six months.’’.
SEC. 825. ADDITIONAL AUTHORITY TO CONTRACT FOR FUEL STOR-
AGE AND MANAGEMENT.
(a) REVISION OF AUTHORITY.—Section 2388 of title 10, United
States Code, is amended—
(1) by striking out subsections (a) and (b) and inserting
in lieu thereof the following:
‘‘(a) AUTHORITY TO CONTRACT.—The Secretary of Defense and
the Secretary of a military department may each contract for storage
facilities for, or the storage, handling, or distribution of, liquid
fuels and natural gas.
‘‘(b) PERIOD OF CONTRACT.—The period of a contract entered
into under subsection (a) may not exceed 5 years. However, the
contract may provide options for the Secretary to renew the contract
for additional periods of not more than 5 years each, but not
for more than a total of 20 years.’’; and
(2) in subsection (c), by inserting ‘‘OPTION TO PURCHASE
FACILITY.—’’ after ‘‘(c)’’.
(b) SECTION HEADING AMENDMENT.—The heading of section
2388 of such title is amended to read as follows:
‘‘§ 2388. Liquid fuels and natural gas: contracts for storage,
handling, or distribution’’.
SEC. 826. ADDITIONAL AUTHORITY RELATING TO THE ACQUISITION
OF PETROLEUM AND NATURAL GAS.
(a) ACQUISITION, SALE, AND EXCHANGE
OF NATURAL GAS.—
Section 2404 of title 10, United States Code, is amended—
(1) in subsection (a)—
(A) in the matter above paragraph (1), by inserting
‘‘or natural gas’’ after ‘‘petroleum’’;
(B) in paragraph (1)—
(i) by inserting ‘‘or natural gas market conditions,
as the case may be,’’ after ‘‘petroleum market condi-
tions’’; and
(ii) by inserting ‘‘or acquisition of natural gas,
respectively,’’ after ‘‘acquisition of petroleum’’; and
(C) in paragraph (2), by inserting ‘‘or natural gas,
as the case may be,’’ after ‘‘petroleum’’; and
(2) in subsection (b), by inserting ‘‘or natural gas’’ in the
second sentence after ‘‘petroleum’’.
(b) EXPANSION
OF EXCHANGE AUTHORITY.—Subsection (c) of
such section is amended to read as follows:
‘‘(c) EXCHANGE AUTHORITY.—The Secretary of Defense may
acquire petroleum, petroleum-related services, natural gas, or natu-
ral gas-related services by exchange of petroleum, petroleum-related
services, natural gas, or natural gas-related services.’’.
(c) SALE OF PETROLEUM AND NATURAL GAS.—Such section is
further amended—
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following new sub-
section (d):
‘‘(d) AUTHORITY TO SELL.—The Secretary of Defense may sell
petroleum or natural gas of the Department of Defense if the
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H. R. 2401—166
Secretary determines that the sale would be in the public interest.
The proceeds of such a sale shall be credited to appropriations
of the Department of Defense for the acquisition of petroleum,
petroleum-related services, natural gas, or natural gas-related serv-
ices. Amounts so credited shall be available for obligation for the
same period as the appropriations to which the amounts are
credited.’’.
(d) TECHNICAL AND CLERICAL AMENDMENTS.—
(1) SUBSECTION CAPTIONS.—Section 2404 of title 10, United
States Code, is amended—
(A) in subsection (a), by inserting ‘‘WAIVER AUTHOR-
ITY.—’’ after ‘‘(a)’’;
(B) in subsection (b), by inserting ‘‘SCOPE
OF
WAIVER.—’’ after ‘‘(b)’’; and
(C) in subsection (e), as redesignated by subsection
(c)(1), by inserting ‘‘PETROLEUM DEFINED.—’’ after ‘‘(e)’’.
(2) SECTION
HEADING.—The heading of such section is
amended to read as follows:
‘‘§ 2404. Acquisition of petroleum and natural gas: authority
to waive contract procedures; acquisition by
exchange; sales authority’’.
SEC. 827. AMENDMENT OF RESEARCH AUTHORITIES.
(a) AUTHORITY TO CONDUCT BASIC, ADVANCED, AND APPLIED
RESEARCH.—Section 2358 of title 10, United States Code, is
amended to read as follows:
‘‘§ 2358. Research projects
‘‘(a) AUTHORITY.—The Secretary of Defense or the Secretary
of a military department may engage in basic, advanced, and
applied research and development projects that—
‘‘(1) are necessary to the responsibilities of such Secretary’s
department in the field of basic, advanced, and applied research
and development; and
‘‘(2) either—
‘‘(A) relate to weapons systems and other military
needs; or
‘‘(B) are of potential interest to such department.
‘‘(b) AUTHORIZED MEANS.—The Secretary of Defense or the Sec-
retary of a military department may perform research and develop-
ment projects—
‘‘(1) by contract, cooperative agreement, or other trans-
action with, or by grant to, educational or research institutions,
private businesses, or other agencies of the United States;
‘‘(2) by using employees and consultants of the Department
of Defense; or
‘‘(3) through one or more of the military departments.
‘‘(c) REQUIREMENT OF POTENTIAL MILITARY INTEREST.—Funds
appropriated to the Department of Defense or to a military depart-
ment may not be used to finance any research project or study
unless the project or study is, in the opinion of the Secretary
of Defense or the Secretary of that military department, respec-
tively, of potential interest to the Department of Defense or to
such military department, respectively.’’.
(b) AUTHORITY RELATED TO ADVANCED RESEARCH PROJECTS.—
(1) REPEAL OF REDUNDANT AUTHORITY.—Section 2371 of
such title is amended—
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H. R. 2401—167
(A) by striking out subsection (a);
(B) by redesignating subsections (b), (c), (d), (e), (f),
and (g) as subsections (a), (b), (c), (d), (e), and (f), respec-
tively;
(C) in subsection (a), as redesignated by subparagraph
(B)—
(i) in paragraph (1), by striking out ‘‘subsection
(a)’’ and inserting in lieu thereof ‘‘section 2358 of this
title’’; and
(ii) in paragraph (2), by striking out ‘‘subsection
(e)’’ and inserting in lieu thereof ‘‘subsection (d)’’;
(D) in subsection (d), as redesignated by subparagraph
(B), by striking out ‘‘subsection (a)’’ and inserting in lieu
thereof ‘‘section 2358 of this title’’; and
(E) in subsection (e), as redesignated by subparagraph
(B)—
(i) in paragraph (4), by striking out ‘‘subsection
(b)’’ and inserting in lieu thereof ‘‘subsection (a)’’; and
(ii) in paragraph (5), by striking out ‘‘subsection
(e)’’ and inserting in lieu thereof ‘‘subsection (d)’’.
(2) CONSISTENCY
OF
TERMINOLOGY.—Such section, as
amended by paragraph (1), is further amended—
(A) in subsection (c)(1), by inserting ‘‘and development’’
after ‘‘research’’ both places it appears;
(B) in subsections (d) and (e)(3), by striking out
‘‘advanced research’’ and inserting in lieu thereof ‘‘research
and development’’; and
(C) in subsection (e)(1), by striking out ‘‘advanced
research is’’ and inserting in lieu thereof ‘‘research and
development are’’.
(c) REDUNDANT AND OBSOLETE AUTHORITY FOR THE ARMY AND
THE AIR FORCE.—Sections 4503 and 9503 of title 10, United States
Code, are repealed.
SEC. 828. TECHNICAL AND CLERICAL AMENDMENTS RELATING TO
ACQUISITION LAWS.
(a) AMENDMENTS TO TABLES OF SECTIONS.—The table of sec-
tions at the beginning of each chapter of title 10, United States
Code, listed in the following paragraphs is amended by striking
out the items relating to the sections listed in such paragraphs:
(1) Chapter 137: section 2317.
(2) Chapter 139: section 2362.
(3) Chapter 141: section 2389.
(4) Chapter 144: sections 2436 and 2437.
(5) Chapter 433: sections 4531, 4533, 4534, 4535, 4537,
4538, and 4541.
(6) Chapter 631: sections 7201, 7210, 7213, and 7230.
(7) Chapter 633: sections 7296, 7298, and 7301.
(8) Chapter 637: section 7366.
(9) Chapter 933: sections 9531, 9534, 9535, 9537, 9538,
and 9541.
(b) AMENDMENTS TO TABLES OF CHAPTERS.—
(1) The tables of chapters at the beginning of subtitle
A, and part IV of subtitle A, of title 10, United States Code,
are amended by striking out the item relating to chapter 135.
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H. R. 2401—168
(2) The tables of chapters at the beginning of subtitle
B, and part IV of subtitle B, of such title are amended by
striking out the item relating to chapter 431.
(3) The tables of chapters at the beginning of subtitle
C, and part IV of subtitle C, of such title are amended by
striking out the item relating to chapter 635.
(c) ADDITIONAL AMENDMENTS.—
(1) The table of sections at the beginning of chapter 11
of title 10, United States Code, is amended by inserting after
the item relating to section 278 the following new item:
‘‘279. Authority to accept certain gratuitous services of officers.’’.
(2) The table of sections at the beginning of chapter 139
of such title is amended by adding at the end the following
new item:
‘‘2373. Procurement for experimental purposes.’’.
(3) The table of sections at the beginning of chapter 141
of such title is amended by striking out the item relating
to section 2388 and inserting in lieu thereof the following:
‘‘2388. Liquid fuels and natural gas: contracts for storage, handling, or distribu-
tion.’’.
(4) The table of sections at the beginning of chapter 141
of title 10, United States Code, is amended by striking out
the item relating to section 2404 and inserting in lieu thereof
the following:
‘‘2404. Acquisition of petroleum and natural gas: authority to waive contract proce-
dures; acquisition by exchange; sales authority.’’.
(5) The table of sections at the beginning of subchapter
V of chapter 148 of such title is amended by adding at the
end the following new items:
‘‘2538. Industrial mobilization: orders; priorities; possession of manufacturing
plants; violations.
‘‘2539. Industrial mobilization: plants; lists.
‘‘2540. Industrial mobilization: Board on Mobilization of Industries Essential for
Military Preparedness.
‘‘2541. Availability of samples, drawings, information, equipment, materials, and
certain services.’’.
(6) Chapter 431 of such title is amended by striking out
the chapter heading and the table of sections.
(7) The table of sections at the beginning of chapter 633
of such title is amended by striking out the items relating
to sections 7304, 7305, 7306, 7307, 7308, 7309, and 7310 and
inserting in lieu thereof the following:
‘‘7304. Examination of vessels; striking of vessels from Naval Vessel Register.
‘‘7305. Vessels stricken from Naval Vessel Register: sale.
‘‘7306. Vessels stricken from Naval Vessel Register; captured vessels: transfer by
gift or otherwise.
‘‘7306a. Vessels stricken from Naval Vessel Register: use for experimental purposes.
‘‘7307. Disposals to foreign nations.
‘‘7308. Chief of Naval Operations: certification required for disposal of combatant
vessels.
‘‘7309. Construction of vessels in foreign shipyards: prohibition.
‘‘7310. Overhaul, repair, etc. of vessels in foreign shipyards: restrictions.’’.
(8)(A) Chapter 931 of such title is amended—
(i) by striking out the table of sections for subchapter
I;
(ii) by striking out the headings for subchapters I and
II;
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H. R. 2401—169
(iii) by striking out the table of subchapters; and
(iv) by amending the chapter heading to read as
follows:
‘‘CHAPTER 931—CIVIL RESERVE AIR FLEET’’.
(B) The tables of chapters at the beginning of subtitle
D, and part IV of subtitle D, of such title are amended by
striking out the item relating to chapter 931 and inserting
in lieu thereof the following:
‘‘931. Civil Reserve Air Fleet ............................................................................ 9511’’.
(d) CROSS-REFERENCE AMENDMENTS.—(1) Section 505(a)(2)(B)(i)
of the National Security Act of 1947 (50 U.S.C. 415(a)(2)(B)(i))
is amended by striking out ‘‘section 7307(b)(1)’’ and inserting in
lieu thereof ‘‘section 7307(a)’’.
(2) Section 2366(d) of title 10, United States Code, is amended
by striking out ‘‘to the defense committees of Congress (as defined
in section 2362(e)(3) of this title).’’ and inserting in lieu thereof
‘‘to the Committees on Armed Services and on Appropriations of
the Senate and House of Representatives.’’.
Subtitle D—Defense Acquisition Pilot
Programs
SEC. 831. REFERENCE TO DEFENSE ACQUISITION PILOT PROGRAM.
A reference in this subtitle to the Defense Acquisition Pilot
Program is a reference to the defense acquisition pilot program
authorized by section 809 of the National Defense Authorization
Act for Fiscal Year 1991 (10 U.S.C. 2430 note).
SEC. 832. DEFENSE ACQUISITION PILOT PROGRAM AMENDMENTS.
(a) REPEAL
OF LIMITATION
ON NUMBER
OF PARTICIPATING
DEFENSE ACQUISITION PROGRAMS.—Section 809(b)(1) of the National
Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2430
note) is amended by striking out ‘‘not more than six’’.
(b) REPEAL
OF REQUIREMENT TO DESIGNATE PARTICIPATING
PROGRAMS
AS DEFENSE ENTERPRISE PROGRAMS.—Section 809 of
such Act is amended by striking out subsection (d).
(c) PUBLICATION OF POLICIES AND GUIDELINES FOR PUBLIC COM-
MENT.—Section 809 of such Act is amended by striking out sub-
section (e) and inserting in lieu thereof the following:
‘‘(d) PUBLICATION OF POLICIES AND GUIDELINES.—The Secretary
shall publish in the Federal Register a proposed memorandum
setting forth policies and guidelines for implementation of the pilot
program under this section and provide an opportunity for public
comment on the proposed memorandum for a period of 60 days
after the date of publication. The Secretary shall publish in the
Federal Register any subsequent proposed change to the memoran-
dum and provide an opportunity for public comment on each
such proposed change for a period of 60 days after the date of
publication.’’.
(d) CONGRESSIONAL NOTIFICATION REQUIREMENTS.—Section 809
of such Act is amended—
(1) by redesignating subsections (f), (g), and (h) as sub-
sections (e), (f), and (g), respectively; and
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H. R. 2401—170
(2) in paragraph (2)(D) of subsection (e), as so redesignated,
by striking out ‘‘specific budgetary and personnel savings’’ and
inserting in lieu thereof ‘‘a discussion of the efficiencies or
savings’’.
SEC. 833. MISSION ORIENTED PROGRAM MANAGEMENT.
It is the sense of Congress that—
(1) in the exercise of the authority provided in section
809 of the National Defense Authorization Act for Fiscal Year
1991 (10 U.S.C. 2430 note), the Secretary of Defense should
propose for one or more of the defense acquisition programs
covered by the Defense Acquisition Pilot Program to utilize
the concept of mission oriented program management that
includes—
(A) establishing a mission oriented program executive
office; and
(B) designating a lead agency for the mission oriented
program executive office;
(2) the duties of the program executive officer for each
of one or more of such programs should include—
(A) planning, programming, and carrying out research,
development, and acquisition activities;
(B) providing advice regarding the preparation and
integration of budgets for research, development, and
acquisition activities;
(C) informing the operational commands of alternative
technology solutions to fulfill emerging requirements;
(D) ensuring that the acquisition plan for the program
realistically reflects the budget and related decisions made
for that program;
(E) managing related technical support resources;
(F) conducting integrated decision team meetings; and
(G) providing technological advice to users of program
products and to the officials within the military depart-
ments who prepare plans, programs, and budgets;
(3) the Chairman of the Joint Chiefs of Staff, in consultation
with the Under Secretary of Defense for Acquisition and Tech-
nology, should prescribe policies and procedures for the inter-
action of the commanders of the unified and specified combatant
commands with the mission oriented program executive officers,
and such policies and procedures should include provisions
for enabling the user commands to perform acceptance testing;
and
(4) the management functions of a program manager should
not duplicate the management functions of the mission oriented
program executive officer.
SEC. 834. SAVINGS OBJECTIVES.
It is the sense of Congress that the Secretary of Defense,
on the basis of the experience under the Defense Acquisition Pilot
Program, should seek personnel reductions and other management
and administrative savings that, by September 30, 1998, will
achieve at least a 25-percent reduction in defense acquisition
management costs below the costs of defense acquisition manage-
ment during fiscal year 1993.
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H. R. 2401—171
SEC. 835. PROGRAM PHASES AND PHASE FUNDING.
(a) ACQUISITION PROGRAM PHASES.—It is the sense of Congress
that—
(1) the Secretary of Defense should propose that one or
more defense acquisition programs proposed for participation
in the Defense Acquisition Pilot Program be exempted from
acquisition regulations regarding program phases that are
applicable to other Department of Defense acquisition pro-
grams; and
(2) a program so exempted should follow a simplified
acquisition program cycle that is results oriented and consists
of—
(A) an integrated decision team meeting phase which—
(i) could be requested by a potential user of the
system or component to be acquired, the head of a
laboratory, or a program office on such bases as the
emergence of a new military requirement, cost savings
opportunity, or new technology opportunity;
(ii) should be conducted by a program executive
officer; and
(iii) should usually be completed within 1 to 3
months;
(B) a prototype development and testing phase which
should include operational tests and concerns relating to
manufacturing operations and life cycle support, should
usually be completed within 6 to 36 months, and should
produce sufficient numbers of prototypes to assess oper-
ational utility;
(C) a product integration, development, and testing
phase which—
(i) should include full-scale development, integra-
tion of components, and operational testing; and
(ii) should usually be completed within 1 to 5
years; and
(D) a phase for production, integration into existing
systems, or production and integration into existing sys-
tems.
(b) PHASE FUNDING.—To the extent specific authorization is
provided for any defense acquisition program designated for partici-
pation in the Defense Acquisition Pilot Program, as required by
section 809(b)(1) of the National Defense Authorization Act for
Fiscal Year 1991 (10 U.S.C. 2430 note), in a law authorizing appro-
priations for such program enacted after the date of the enactment
of this Act, and to the extent provided in appropriations Acts,
the Secretary of Defense is authorized to expend for such defense
acquisition program such sums as are necessary to carry out the
next phase of the acquisition program cycle after the Secretary
determines that objective quantifiable performance expectations
relating to the execution of that phase have been identified.
(c) MAJOR PROGRAM DECISION.—It is the sense of Congress
that the Secretary of Defense should establish for one or more
defense acquisition programs participating in the Defense Acquisi-
tion Pilot Program an approval process having one major decision
point.
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H. R. 2401—172
SEC. 836. PROGRAM WORK FORCE POLICIES.
(a) ENCOURAGEMENT
OF
EXCELLENCE.—The Secretary of
Defense shall review the incentives and personnel actions available
to the Secretary for encouraging excellence in the acquisition work
force of the Department of Defense and should provide an enhanced
system of incentives, in accordance with the Defense Acquisition
Workforce Improvement Act (title XII of Public Law 101–510) and
other applicable law, for the encouragement of excellence in the
work force of a program participating in the Defense Acquisition
Pilot Program.
(b) INCENTIVES.—The Secretary of Defense may consider provid-
ing for program executive officers, program managers, and other
acquisition personnel of defense acquisition programs participating
in the Defense Acquisition Pilot Program an enhanced system of
incentives which—
(1) in accordance with applicable law, relates pay to
performance; and
(2) provides for consideration of the extent to which the
performance of such personnel contributes to the achievement
of cost goals, schedule goals, and performance goals established
for such programs.
SEC. 837. EFFICIENT CONTRACTING PROCESSES.
It is the sense of Congress that the Secretary of Defense,
in exercising the authority provided in section 809 of the National
Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2430
note), should seek to simplify the procurement process, streamline
the period for entering into contracts, and simplify specifications
and requirements.
SEC. 838. CONTRACT ADMINISTRATION: PERFORMANCE BASED CON-
TRACT MANAGEMENT.
It is the sense of Congress that the Secretary of Defense should
propose under section 809 of the National Defense Authorization
Act for Fiscal Year 1991 (10 U.S.C. 2430 note) that, for one or
more defense acquisition programs participating in the Defense
Acquisition Pilot Program, payments under section 2307(a) of title
10, United States Code, be made on any of the following bases:
(1) Performance measured by statistical process controls.
(2) Event accomplishment.
(3) Other quantifiable measures of results.
SEC. 839. CONTRACTOR PERFORMANCE ASSESSMENT.
(a) COLLECTION
AND ANALYSIS
OF PERFORMANCE INFORMA-
TION.—The Secretary of Defense shall collect and analyze informa-
tion on contractor performance under the Defense Acquisition Pilot
Program.
(b) INFORMATION
TO
BE
INCLUDED.—Information collected
under subsection (a) shall include the history of the performance
of each contractor under the Defense Acquisition Pilot Program
contracts and, for each such contract performed by the contractor,
a technical evaluation of the contractor’s performance prepared
by the program manager responsible for the contract.
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H. R. 2401—173
Subtitle E—Other Matters
SEC. 841. REIMBURSEMENT OF INDIRECT COSTS OF INSTITUTIONS OF
HIGHER EDUCATION UNDER DEPARTMENT OF DEFENSE
CONTRACTS.
(a) PROHIBITION.—The Secretary of Defense may not by regula-
tion place a limitation on the amount that the Department of
Defense may reimburse an institution of higher education for allow-
able indirect costs incurred by the institution for work performed
for the Department of Defense under a Department of Defense
contract unless that same limitation is applied uniformly to all
other organizations performing similar work for the Department
of Defense under Department of Defense contracts.
(b) WAIVER.—The Secretary of Defense may waive the applica-
tion of the prohibition in subsection (a) in the case of a particular
institution of higher education if the governing body of the institu-
tion requests the waiver in order to simplify the overall manage-
ment by that institution of cost reimbursements by the Depart-
ment of Defense for contracts awarded by the Department to the
institution.
(c) DEFINITIONS.—In this section:
(1) The term ‘‘allowable indirect costs’’ means costs that
are generally considered allowable as indirect costs under regu-
lations that establish the cost reimbursement principles
applicable to an institution of higher education for purposes
of Department of Defense contracts.
(2) The term ‘‘institution of higher education’’ has the mean-
ing given such term in section 1201(a) of the Higher Education
Act of 1965 (20 U.S.C. 1141(a)).
SEC. 842. PROHIBITION ON AWARD OF CERTAIN DEPARTMENT OF
DEFENSE AND DEPARTMENT OF ENERGY CONTRACTS TO
ENTITIES CONTROLLED BY A FOREIGN GOVERNMENT.
(a) TERMINOLOGY AMENDMENT.—Subsection (a) of section 2536
of title 10, United States Code, is amended—
(1) by striking out ‘‘a company owned by’’; and
(2) by striking out ‘‘that company’’ and inserting in lieu
thereof ‘‘that entity’’.
(b) EXCLUSION FROM DEFINITION OF ENTITY CONTROLLED BY
FOREIGN GOVERNMENT.—Subsection (c)(1) of such section is amend-
ed by adding at the end the following: ‘‘Such term does not include
an organization or corporation that is owned, but is not controlled,
either directly or indirectly, by a foreign government if the owner-
ship of that organization or corporation by that foreign government
was effective before October 23, 1992.’’.
(c) CLERICAL AMENDMENTS.—(1) The heading of such section
is amended to read as follows:
‘‘§ 2536. Award of certain contracts to entities controlled by
a foreign government: prohibition’’.
(2) The item relating to such section in the table of sections
at the beginning of subchapter V of chapter 148 of such title
is amended to read as follows:
‘‘2536. Award of certain contracts to entities controlled by a foreign government:
prohibition.’’.
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