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the center under paragraph (1), together with 
such comments as the Secretary considers nec-
essary on the report. 
(b) IMPLEMENTATION.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of the enactment of this Act, the Secretary 
of Defense— 
(A) shall develop and begin implementing a 
plan to address the problems with the Joint Ca-
pabilities Integration and Development System, 
taking into account the recommendations devel-
oped in the analyses required under subsection 
(a) and as part of a program to manage per-
formance in establishing joint military require-
ments; and 
(B) shall submit to the Committees on 
Armed Services of the Senate and the House of 
Representatives a report on the plan, including, 
at a minimum, a timeline, objectives, mile-
stones, and projected resource requirements. 
(2) REPORT
FORMAT.—The report required 
under paragraph (1)(B) may be included as part of 
any report relating to a program to manage per-
formance in establishing joint military requirements. 
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Subtitle D—Other Matters 
SEC. 831. EXTENSION OF AUTHORITY FOR DEFENSE ACQUI-
SITION CHALLENGE PROGRAM. 
Section 2359b(k) of title 10, United States Code, is 
amended by striking ‘‘2012’’ and inserting ‘‘2017’’. 
SEC. 832. ENERGY SAVINGS PERFORMANCE CONTRACTS. 
(a) COMPETITION REQUIREMENTS FOR TASK OR DE-
LIVERY ORDERS UNDER ENERGY SAVINGS PERFORM-
ANCE CONTRACTS.—Section 801 of the National Energy 
Conservation Policy Act (42 U.S.C. 8287) is amended by 
adding at the end the following: 
‘‘(c) TASK OR DELIVERY ORDERS.—(1) The head of 
a Federal agency may issue a task or delivery order under 
an energy savings performance contract by— 
‘‘(A) notifying all contractors that have received 
an award under such contract that the agency pro-
poses to discuss energy savings performance services 
for some or all of its facilities and, following a rea-
sonable period of time to provide a proposal in re-
sponse to the notice, soliciting from such contractors 
the submission of expressions of interest in, and con-
tractor qualifications for, performing site surveys or 
investigations and feasibility designs and studies, 
and including in the notice summary information 
concerning energy use for any facilities that the 
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agency has specific interest in including in such task 
or delivery order; 
‘‘(B) reviewing all expressions of interest and 
qualifications submitted pursuant to the notice 
under subparagraph (A); 
‘‘(C) selecting two or more contractors (from 
among those reviewed under subparagraph (B)) to 
conduct discussions concerning the contractors’ re-
spective qualifications to implement potential energy 
conservation measures, including— 
‘‘(i) requesting references and specific de-
tailed examples with respect to similar efforts 
and the resulting energy savings of such similar 
efforts; and 
‘‘(ii) requesting an explanation of how such 
similar efforts relate to the scope and content 
of the task or delivery order concerned; 
‘‘(D) selecting and authorizing— 
‘‘(i) more than one contractor (from 
among those selected under subparagraph (C)) 
to conduct site surveys, investigations, feasi-
bility designs and studies or similar assess-
ments for the energy savings performance con-
tract services (or for discrete portions of such 
services), for the purpose of allowing each such 
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contractor to submit a firm, fixed-price proposal 
to implement specific energy conservation meas-
ures; or 
‘‘(ii) one contractor (from among those se-
lected under subparagraph (C)) to conduct a 
site survey, investigation, a feasibility design 
and study or similar assessment for the purpose 
of allowing the contractor to submit a firm, 
fixed-price proposal to implement specific en-
ergy conservation measures; 
‘‘(E) providing a debriefing to any contractor 
not selected under subparagraph (D); 
‘‘(F) negotiating a task or delivery order for en-
ergy savings performance contracting services with 
the contractor or contractors selected under sub-
paragraph (D) based on the energy conservation 
measures identified; and 
‘‘(G) issuing a task or delivery order for energy 
savings performance contracting services to such 
contractor or contractors. 
‘‘(2) The issuance of a task or delivery order for en-
ergy savings performance contracting services pursuant to 
paragraph (1) is deemed to satisfy the task and delivery 
order competition requirements in section 2304c(d) of title 
10, United States Code, and section 303J(d) of the Fed-
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eral Property and Administrative Services Act of 1949 (41 
U.S.C. 253j(d)). 
‘‘(3) The Secretary may issue guidance as necessary 
to agencies issuing task or delivery orders pursuant to 
paragraph (1).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) is inapplicable to task or delivery orders 
issued before the date of enactment of this Act. 
SEC. 833. CONSIDERATION OF SUSTAINABLE PRACTICES IN 
PROCUREMENT OF PRODUCTS AND SERV-
ICES. 
(a) CONSIDERATION OF SUSTAINABLE PRACTICES.— 
(1) IN
GENERAL.—The Secretary of Defense 
shall develop and issue guidance directing the Sec-
retary of each military department and the head of 
each defense agency to consider sustainable practices 
in the procurement of products and services. Such 
guidance shall ensure that strategies for acquiring 
products or services to meet departmental or agency 
performance requirements favor products or services 
described in paragraph (2) if such products or serv-
ices can be acquired on a life cycle cost-neutral 
basis. 
(2) PRODUCTS
OR
SERVICES.—A product or 
service described in this paragraph is a product or 
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service that is energy-efficient, water-efficient, 
biobased, environmentally preferable, non-ozone-de-
pleting, contains recycled content, is non-toxic, or is 
less toxic than alternative products or services. 
(b) EXCEPTION.—Subsection (a) does not apply to 
the acquisition of weapon systems or components of weap-
on systems. 
SEC. 834. DEFINITION OF MATERIALS CRITICAL TO NA-
TIONAL SECURITY. 
Section 187 of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘materials critical to national se-
curity’ means materials— 
‘‘(A) upon which the production or 
sustainment of military equipment is depend-
ent; and 
‘‘(B) the supply of which could be re-
stricted by actions or events outside the control 
of the Government of the United States. 
‘‘(2) The term ‘military equipment’ means 
equipment used directly by the armed forces to carry 
out military operations.’’. 
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SEC. 835. DETERMINATION OF STRATEGIC OR CRITICAL 
RARE EARTH MATERIALS FOR DEFENSE AP-
PLICATIONS. 
(a) ASSESSMENT REQUIRED.—The Secretary of De-
fense shall undertake an assessment of the supply chain 
for rare earth materials and determine which, if any, rare 
earth materials are strategic materials and which rare 
earth materials are materials critical to national security. 
For the purposes of the assessment— 
(1) the Secretary may consider the views of 
other Federal agencies, as appropriate; 
(2) any study conducted by the Director, Indus-
trial Policy during fiscal year 2010 may be consid-
ered as partial fulfillment of the requirements of this 
section; 
(3) any study conducted by the Comptroller 
General of the United States during fiscal year 2010 
may be considered as partial fulfillment of the re-
quirements of this section; and 
(4) the Secretary shall consider the sources of 
rare earth materials (both in terms of source nations 
and number of vendors) including rare earth ele-
ments, rare earth metals, rare earth magnets, and 
other components containing rare earths. 
(b) PLAN.—In the event that the Secretary deter-
mines that a rare earth material is a strategic material 
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or a material critical to national security, the Secretary 
shall develop a plan to ensure the long-term availability 
of such rare earth material, with a goal of establishing 
domestic sources of such material by December 31, 2015. 
In developing the plan, the Secretary shall consider all rel-
evant components of the value-chain, including mining, 
processing, refining, and manufacturing. The plan shall 
include consideration of numerous options with respect to 
the material, including— 
(1) an assessment of including the material in 
the National Defense Stockpile; 
(2) in consultation with the United States 
Trade Representative, the identification of any trade 
practices known to the Secretary that limit the Sec-
retary’s ability to ensure the long-term availability of 
such material or the ability to meet the goal of es-
tablishing domestic sources of such material by De-
cember 31, 2015; 
(3) an assessment of the availability of financ-
ing to industry, academic institutions, or not-for- 
profit entities to provide the capacity required to en-
sure the availability of the material and potential 
mechanisms to increase the availability of such fi-
nancing; 
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(4) the benefits, if any, of Defense Production 
Act funding to support the establishment of a do-
mestic rare earth manufacturing capability for mili-
tary components; 
(5) funding for research and development of 
any aspect of the rare earth supply-chain; 
(6) any other risk mitigation method deter-
mined appropriate by the Secretary that is con-
sistent with the goal of establishing domestic sources 
by December 31, 2015; and 
(7) for components of the rare earth material 
supply-chain for which no other risk mitigation 
method, in accordance with paragraphs (1) through 
(6), will ensure the establishment of a domestic 
source by December 31, 2015, a specific plan to 
eliminate supply-chain vulnerability by the earliest 
date practicable. 
(c) REPORT.— 
(1) REQUIREMENT.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to the congressional 
committees described in paragraph (2) a report con-
taining the findings of the assessment under sub-
section (a) and the plan (if any) developed under 
subsection (b). 
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(2) CONGRESSIONAL
COMMITTEES.—The con-
gressional committees described in this paragraph 
are as follows: 
(A) The congressional defense committees. 
(B) The Committee on Financial Services 
and the Committee on Ways and Means of the 
House of Representatives. 
(C) The Committee on Finance and the 
Committee on Banking, Housing, and Urban 
Affairs of the Senate. 
(d) DEFINITIONS.—In this section: 
(1) STRATEGIC
MATERIAL.—The term ‘‘stra-
tegic material’’ means a material— 
(A) which is essential for military equip-
ment; 
(B) which is unique in the function it per-
forms; and 
(C) for which there are no viable alter-
natives. 
(2) MATERIALS CRITICAL TO NATIONAL SECU-
RITY.—The term ‘‘materials critical to national secu-
rity’’ has the meaning provided by section 187(e) of 
title 10, United States Code, as amended by section 
827 of this Act. 
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SEC. 836. REVIEW OF NATIONAL SECURITY EXCEPTION TO 
COMPETITION. 
(a) REVIEW REQUIRED.—The Secretary of Defense 
shall review the implementation by the Department of De-
fense of the national security exception to full and open 
competition provided in section 2304(c)(6) of title 10, 
United States Code. 
(b) MATTERS REVIEWED.—The review of the imple-
mentation of the national security exception required by 
subsection (a) shall include— 
(1) the pattern of usage of such exception by 
acquisition organizations within the Department to 
determine which organizations are commonly using 
the exception and the frequency of such usage; 
(2) the range of items or services being ac-
quired through the use of such exception; 
(3) the process for reviewing and approving jus-
tifications involving such exception; 
(4) whether the justifications for use of such 
exception typically meet the relevant requirements of 
the Federal Acquisition Regulation applicable to the 
use of such exception; 
(5) issues associated with follow-on procure-
ments for items or services acquired using such ex-
ception; and 
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(6) potential additional instances where such 
exception could be applied and any authorities avail-
able to the Department of Defense other than such 
exception that could be applied in such instances. 
(c) REPORT.—Not later than 270 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the 
Senate and of the House of Representatives a report on 
the review required by subsection (a), including a discus-
sion of each of the matters specified in subsection (b). The 
report shall include any recommendations relating to the 
matters reviewed that the Secretary considers appropriate. 
The report shall be submitted in unclassified form but 
may include a classified annex. 
(d) REGULATIONS.— 
(1) REQUIREMENT.—Not later than 270 days 
after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to the congressional 
committees described in paragraph (2) draft regula-
tions on the implementation of the national security 
exception to full and open competition provided in 
section 2304(c)(6) of title 10, United States Code, 
taking into account the results of the review re-
quired by subsection (a). 
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